[House Report 104-725]
[From the U.S. Government Publishing Office]
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-725
_______________________________________________________________________
PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996
----------
CONFERENCE REPORT
to accompany
H.R. 3734
July 30, 1996.--Ordered to be printed
PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-725
_______________________________________________________________________
PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996
----------
CONFERENCE REPORT
to accompany
H.R. 3734
July 30, 1996.--Ordered to be printed
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-725
_______________________________________________________________________
PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996
_______
July 30, 1996.--Ordered to be printed
_______________________________________________________________________
Mr. Kasich, from the committee of conference, submitted the following
CONFERENCE REPORT
[To accompany H.R. 3734]
The committee of conference on the disagreeing votes of
the two Houses on the amendment of the Senate to 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, having met, after full and free conference, have
agreed to recommend and do recommend to their respective Houses
as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the
Senate amendment, insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Personal Responsibility and
Work Opportunity Reconciliation Act of 1996''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
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. Modifications to the job opportunities for certain low-income
individuals program.
Sec. 113. Secretarial submission of legislative proposal for technical
and conforming amendments.
Sec. 114. Assuring medicaid coverage for low-income families.
Sec. 115. Denial of assistance and benefits for certain drug-related
convictions.
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. Treatment of prisoners.
Sec. 204. Effective date of application for 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. Regulations.
Subtitle C--Additional Enforcement Provision
Sec. 221. Installment payment of large past-due supplemental security
income benefits.
Sec. 222. Regulations.
Subtitle D--Studies Regarding Supplemental Security Income Program
Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study by General Accounting Office.
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 of 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 part A
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 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.
Sec. 375. Child support enforcement for Indian tribes.
Subtitle H--Medical Support
Sec. 381. Correction to ERISA definition of medical child support order.
Sec. 382. Enforcement of orders for health care coverage.
Subtitle I--Enhancing Responsibility and Opportunity for Non-Residential
Parents
Sec. 391. Grants to States for access and visitation programs.
Subtitle J--Effective Dates and Conforming Amendments
Sec. 395. Effective dates and conforming amendments.
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 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.
Sec. 422. Authority for States to provide for attribution of sponsors
income and resources to the alien with respect to State
programs.
Sec. 423. Requirements for sponsor's affidavit of support.
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.
Subtitle E--Conforming Amendments Relating to Assisted Housing
Sec. 441. Conforming amendments relating to assisted housing.
Subtitle F--Earning Income Credit Denied to Unauthorized Employees
Sec. 451. Earned income credit denied to individuals not authorized to
be employed in the United States.
TITLE V--CHILD PROTECTION
Sec. 501. Authority of States to make foster care maintenance payments
on behalf of children in any private child care institution.
Sec. 502. Extension of enhanced match for implementation of statewide
automated child welfare information systems.
Sec. 503. National random sample study of child welfare.
Sec. 504. Redesignation of section 1123.
Sec. 505. Kinship care.
TITLE VI--CHILD CARE
Sec. 601. Short title and references.
Sec. 602. Goals.
Sec. 603. Authorization of appropriations and entitlement authority.
Sec. 604. Lead agency.
Sec. 605. Application and plan.
Sec. 606. Limitation on State allotments.
Sec. 607. Activities to improve the quality of child care.
Sec. 608. Repeal of early childhood development and before- and after-
school care requirement.
Sec. 609. Administration and enforcement.
Sec. 610. Payments.
Sec. 611. Annual report and audits.
Sec. 612. Report by the Secretary.
Sec. 613. Allotments.
Sec. 614. Definitions.
Sec. 615. Effective date.
TITLE VII--CHILD NUTRITION PROGRAMS
Subtitle A--National School Lunch Act
Sec. 701. State disbursement to schools.
Sec. 702. Nutritional and other program requirements.
Sec. 703. Free and reduced price policy statement.
Sec. 704. Special assistance.
Sec. 705. Miscellaneous provisions and definitions.
Sec. 706. Summer food service program for children.
Sec. 707. Commodity distribution.
Sec. 708. Child and adult care food program.
Sec. 709. Pilot projects.
Sec. 710. Reduction of paperwork.
Sec. 711. Information on income eligibility.
Sec. 712. Nutrition guidance for child nutrition programs.
Subtitle B--Child Nutrition Act of 1966
Sec. 721. Special milk program.
Sec. 722. Free and reduced price policy statement.
Sec. 723. School breakfast program authorization.
Sec. 724. State administrative expenses.
Sec. 725. Regulations.
Sec. 726. Prohibitions.
Sec. 727. Miscellaneous provisions and definitions.
Sec. 728. Accounts and records.
Sec. 729. Special supplemental nutrition program for women, infants, and
children.
Sec. 730. Cash grants for nutrition education.
Sec. 731. Nutrition education and training.
Subtitle C--Miscellaneous Provisions
Sec. 741. Coordination of school lunch, school breakfast, and summer
food service programs.
Sec. 742. Requirements relating to provision of benefits based on
citizenship, alienage, or immigration status under the
National School Lunch Act, the Child Nutrition Act of 1966,
and certain other acts.
TITLE VIII--FOOD STAMPS AND COMMODITY DISTRIBUTION
Subtitle A--Food Stamp Program
Sec. 801. Definition of certification period.
Sec. 802. Definition of coupon.
Sec. 803. Treatment of children living at home.
Sec. 804. Adjustment of thrifty food plan.
Sec. 805. Definition of homeless individual.
Sec. 806. State option for eligibility standards.
Sec. 807. Earnings of students.
Sec. 808. Energy assistance.
Sec. 809. Deductions from income.
Sec. 810. Vehicle allowance.
Sec. 811. Vendor payments for transitional housing counted as income.
Sec. 812. Simplified calculation of income for the self-employed.
Sec. 813. Doubled penalties for violating food stamp program
requirements.
Sec. 814. Disqualification of convicted individuals.
Sec. 815. Disqualification.
Sec. 816. Caretaker exemption.
Sec. 817. Employment and training.
Sec. 818. Food stamp eligibility.
Sec. 819. Comparable treatment for disqualification.
Sec. 820. Disqualification for receipt of multiple food stamp benefits.
Sec. 821. Disqualification of fleeing felons.
Sec. 822. Cooperation with child support agencies.
Sec. 823. Disqualification relating to child support arrears.
Sec. 824. Work requirement.
Sec. 825. Encouragement of electronic benefit transfer systems.
Sec. 826. Value of minimum allotment.
Sec. 827. Benefits on recertification.
Sec. 828. Optional combined allotment for expedited households.
Sec. 829. Failure to comply with other means-tested public assistance
programs.
Sec. 830. Allotments for households residing in centers.
Sec. 831. Condition precedent for approval of retail food stores and
wholesale food concerns.
Sec. 832. Authority to establish authorization periods.
Sec. 833. Information for verifying eligibility for authorization.
Sec. 834. Waiting period for stores that fail to meet authorization
criteria.
Sec. 835. Operation of food stamp offices.
Sec. 836. State employee and training standards.
Sec. 837. Exchange of law enforcement information.
Sec. 838. Expedited coupon service.
Sec. 839. Withdrawing fair hearing requests.
Sec. 840. Income, eligibility, and immigration status verification
systems.
Sec. 841. Investigations.
Sec. 842. Disqualification of retailers who intentionally submit
falsified applications.
Sec. 843. Disqualification of retailers who are disqualified under the
WIC program.
Sec. 844. Collection of overissuances.
Sec. 845. Authority to suspend stores violating program requirements
pending administrative and judicial review.
Sec. 846. Expanded criminal forfeiture for violations.
Sec. 847. Limitation on Federal match.
Sec. 848. Standards for administration.
Sec. 849. Work supplementation or support program.
Sec. 850. Waiver authority.
Sec. 851. Response to waivers.
Sec. 852. Employment initiatives program.
Sec. 853. Reauthorization.
Sec. 854. Simplified food stamp program.
Sec. 855. Study of the use of food stamps to purchase vitamins and
minerals.
Sec. 856. Deficit reduction.
Subtitle B--Commodity Distribution Programs
Sec. 871. Emergency food assistance program.
Sec. 872. Food bank demonstration project.
Sec. 873. Hunger prevention programs.
Sec. 874. Report on entitlement commodity processing.
Subtitle C--Electronic Benefit Transfer Systems
Sec. 891. Provisions to encourage electronic benefit transfer systems.
TITLE IX--MISCELLANEOUS
Sec. 901. Appropriation by State legislatures.
Sec. 902. Sanctioning for testing positive for controlled substances.
Sec. 903. Elimination of housing assistance with respect to fugitive
felons and probation and parole violators.
Sec. 904. Sense of the Senate regarding the inability of the
noncustodial parent to pay child support.
Sec. 905. Establishing national goals to prevent teenage pregnancies.
Sec. 906. Sense of the Senate regarding enforcement of statutory rape
laws.
Sec. 907. Provisions to encourage electronic benefit transfer systems.
Sec. 908. Reduction of block grants to States for social services; use
of vouchers.
Sec. 909. Rules relating to denial of earned income credit on basis of
disqualified income.
Sec. 910. Modification of adjusted gross income definition for earned
income credit.
Sec. 911. Fraud under means-tested welfare and public assistance
programs.
Sec. 912. Abstinence education.
Sec. 913. Change in reference.
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) An effective strategy to combat teenage
pregnancy must address the issue of male
responsibility, including statutory rape culpability
and prevention. The increase of teenage pregnancies
among the youngest girls is particularly severe and is
linked to predatory sexual practices by men who are
significantly older.
(A) It is estimated that in the late
1980's, the rate for girls age 14 and under
giving birth increased 26 percent.
(B) Data indicates that at least half of
the children born to teenage mothers are
fathered by adult men. Available data suggests
that almost 70 percent of births to teenage
girls are fathered by men over age 20.
(C) Surveys of teen mothers have revealed
that a majority of such mothers have histories
of sexual and physical abuse, primarily with
older adult men.
(8) The negative consequences of an out-of-wedlock
birth on the mother, the child, the family, and society
are well documented as follows:
(A) Young women 17 and under who give birth
outside of marriage are more likely to go on
public assistance and to spend more years on
welfare once enrolled. These combined effects
of ``younger and longer'' increase total AFDC
costs per household by 25 percent to 30 percent
for 17-year-olds.
(B) Children born out-of-wedlock have a
substantially higher risk of being born at a
very low or moderately low birth weight.
(C) Children born out-of-wedlock are more
likely to experience low verbal cognitive
attainment, as well as more child abuse, and
neglect.
(D) Children born out-of-wedlock were more
likely to have lower cognitive scores, lower
educational aspirations, and a greater
likelihood of becoming teenage parents
themselves.
(E) Being born out-of-wedlock significantly
reduces the chances of the child growing up to
have an intact marriage.
(F) Children born out-of-wedlock are 3
times more likely to be on welfare when they
grow up.
(9) 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.
(10) 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(a) 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.
(a) In General.--Part A of title IV (42 U.S.C. 601 et seq.)
is amended--
(1) by striking all that precedes section 418 (as
added by section 603(b)(2) of this Act) and inserting
the following:
``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
``SEC. 401. PURPOSE.
``(a) In General.--The purpose of this part is to increase
the flexibility of States in operating a program designed to--
``(1) provide assistance to needy families so that
children may be cared for in their own homes or in the
homes of relatives;
``(2) end the dependence of needy parents on
government benefits by promoting job preparation, work,
and marriage;
``(3) prevent and reduce the incidence of out-of-
wedlock pregnancies and establish annual numerical
goals for preventing and reducing the incidence of
these pregnancies; and
``(4) encourage the formation and maintenance of
two-parent families.
``(b) No Individual Entitlement.--This part shall not be
interpreted to entitle any individual or family to assistance
under any State program funded under this part.
``SEC. 402. ELIGIBLE STATES; STATE PLAN.
``(a) In General.--As used in this part, the term `eligible
State' means, with respect to a fiscal year, a State that,
during the 2-year period immediately preceding the fiscal year,
has submitted to the Secretary a plan that the Secretary has
found includes the following:
``(1) Outline of family assistance program.--
``(A) General provisions.--A written
document that outlines how the State intends to
do the following:
``(i) Conduct a program, designed
to serve all political subdivisions in
the State (not necessarily in a uniform
manner), that provides assistance to
needy families with (or expecting)
children and provides parents with job
preparation, work, and support services
to enable them to leave the program and
become self-sufficient.
``(ii) Require a parent or
caretaker receiving assistance under
the program to engage in work (as
defined by the State) once the State
determines the parent or caretaker is
ready to engage in work, or once the
parent or caretaker has received
assistance under the program for 24
months (whether or not consecutive),
whichever is earlier.
``(iii) Ensure that parents and
caretakers receiving assistance under
the program engage in work activities
in accordance with section 407.
``(iv) Take such reasonable steps
as the State deems necessary to
restrict the use and disclosure of
information about individuals and
families receiving assistance under the
program attributable to funds provided
by the Federal Government.
``(v) 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.
``(vi) Conduct a program, designed
to reach State and local law
enforcement officials, the education
system, and relevant counseling
services, that provides education and
training on the problem of statutory
rape so that teenage pregnancy
prevention programs may be expanded in
scope to include men.
``(B) Special provisions.--
``(i) The document shall indicate
whether the State intends to treat
families moving into the State from
another State differently than other
families under the program, and if so,
how the State intends to treat such
families under the program.
``(ii) The document shall indicate
whether the State intends to provide
assistance under the program to
individuals who are not citizens of the
United States, and if so, shall include
an overview of such assistance.
``(iii) The document shall set
forth objective criteria for the
delivery of benefits and the
determination of eligibility and for
fair and equitable treatment, including
an explanation of how the State will
provide opportunities for recipients
who have been adversely affected to be
heard in a State administrative or
appeal process.
``(iv) Not later than 1 year after
the date of enactment of this Act,
unless the chief executive officer of
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 2 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.
``(2) Certification that the state will operate a
child support enforcement program.--A certification by
the chief executive officer of the State that, during
the fiscal year, the State will operate a child support
enforcement program under the State plan approved under
part D.
``(3) Certification that the state will operate a
foster care and adoption assistance program.--A
certification by the chief executive officer of the
State that, during the fiscal year, the State will
operate a foster care and adoption assistance program
under the State plan approved under part E, and that
the State will take such actions as are necessary to
ensure that children receiving assistance under such
part are eligible for medical assistance under the
State plan under title XIX.
``(4) Certification of the administration of the
program.--A certification by the chief executive
officer of the State specifying which State agency or
agencies will administer and supervise the program
referred to in paragraph (1) for the fiscal year, which
shall include assurances that local governments and
private sector organizations--
``(A) have been consulted regarding the
plan and design of welfare services in the
State so that services are provided in a manner
appropriate to local populations; and
``(B) have had at least 45 days to submit
comments on the plan and the design of such
services.
``(5) Certification that the state will provide
indians with equitable access to assistance.--A
certification by the chief executive officer of the
State that, during the fiscal year, the State will
provide each member of an Indian tribe, who is
domiciled in the State and is not eligible for
assistance under 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.
``(6) Certification of standards and procedures to
ensure against program fraud and abuse.--A
certification by the chief executive officer of the
State that the State has established and is enforcing
standards and procedures to ensure against program
fraud and abuse, including standards and procedures
concerning nepotism, conflicts of interest among
individuals responsible for the administration and
supervision of the State program, kickbacks, and the
use of political patronage.
``(7) Optional certification of standards and
procedures to ensure that the state will screen for and
identify domestic violence.--
``(A) In general.--At the option of the
State, a certification by the chief executive
officer of the State that the State has
established and is enforcing standards and
procedures to--
``(i) screen and identify
individuals receiving assistance under
this part with a history of domestic
violence while maintaining the
confidentiality of such individuals;
``(ii) refer such individuals to
counseling and supportive services; and
``(iii) waive, pursuant to a
determination of good cause, other
program requirements such as time
limits (for so long as necessary) for
individuals receiving assistance,
residency requirements, child support
cooperation requirements, and family
cap provisions, in cases where
compliance with such requirements would
make it more difficult for individuals
receiving assistance under this part to
escape domestic violence or unfairly
penalize such individuals who are or
have been victimized by such violence,
or individuals who are at risk of
further domestic violence.
``(B) Domestic violence defined.--For
purposes of this paragraph, the term `domestic
violence' has the same meaning as the term
`battered or subjected to extreme cruelty', as
defined in section 408(a)(7)(C)(iii).
``(b) Public Availability of State Plan Summary.--The State
shall make available to the public a summary of any plan
submitted by the State under this section.
``SEC. 403. GRANTS TO STATES.
``(a) Grants.--
``(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, 2001, and 2002, a grant in an
amount equal to the State family assistance
grant.
``(B) State family assistance grant
defined.--As used in this part, the term `State
family assistance grant' means the greatest
of--
``(i) \1/3\ of the total amount
required to be paid to the State under
former section 403 (as in effect on
September 30, 1995) for fiscal years
1992, 1993, and 1994 (other than with
respect to amounts expended by the
State for child care under subsection
(g) or (i) of former section 402 (as so
in effect));
``(ii)(I) the total amount required
to be paid to the State under former
section 403 for fiscal year 1994 (other
than with respect to amounts expended
by the State for child care under
subsection (g) or (i) of former section
402 (as so in effect)); plus
``(II) an amount equal to 85
percent of the amount (if any) by which
the total amount required to be paid to
the State under former section
403(a)(5) for emergency assistance for
fiscal year 1995 exceeds the total
amount required to be paid to the State
under former section 403(a)(5) for
fiscal year 1994, if, during fiscal
year 1994 or 1995, the Secretary
approved under former section 402 an
amendment to the former State plan with
respect to the provision of emergency
assistance; or
``(iii) \3/4\ of the total amount
required to be paid to the State under
former section 403 (as in effect on
September 30, 1995) for the 1st 3
quarters of fiscal year 1995 (other
than with respect to amounts expended
by the State under the State plan
approved under part F (as so in effect)
or for child care under subsection (g)
or (i) of former section 402 (as so in
effect)), plus the total amount
required to be paid to the State for
fiscal year 1995 under former section
403(l) (as so in effect).
``(C) Total amount required to be paid to
the state under former section 403 defined.--As
used in this part, the term `total amount
required to be paid to the State under former
section 403' means, with respect to a fiscal
year--
``(i) in the case of a State to
which section 1108 does not apply, the
sum of--
``(I) the Federal share of
maintenance assistance
expenditures for the fiscal
year, before reduction pursuant
to subparagraph (B) or (C) of
section 403(b)(2) (as in effect
on September 30, 1995), as
reported by the State on ACF
Form 231;
``(II) the Federal share of
administrative expenditures
(including administrative
expenditures for the
development of management
information systems) for the
fiscal year, as reported by the
State on ACF Form 231;
``(III) the Federal share
of emergency assistance
expenditures for the fiscal
year, as reported by the State
on ACF Form 231;
``(IV) the Federal share of
expenditures for the fiscal
year with respect to child care
pursuant to subsections (g) and
(i) of former section 402 (as
in effect on September 30,
1995), as reported by the State
on ACF Form 231; and
``(V) the Federal
obligations made to the State
under section 403 for the
fiscal year with respect to the
State program operated under
part F (as in effect on
September 30, 1995), as
determined by the Secretary,
including additional
obligations or reductions in
obligations made after the
close of the fiscal year; and
``(ii) in the case of a State to
which section 1108 applies, the lesser
of--
``(I) the sum described in
clause (i); or
``(II) the total amount
certified by the Secretary
under former section 403 (as in
effect during the fiscal year)
with respect to the territory.
``(D) Information to be used in determining
amounts.--
``(i) For fiscal years 1992 and
1993.--
``(I) In determining the
amounts described in subclauses
(I) through (IV) of
subparagraph (C)(i) for any
State for each of fiscal years
1992 and 1993, the Secretary
shall use information available
as of April 28, 1995.
``(II) In determining the
amount described in
subparagraph (C)(i)(V) for any
State for each of fiscal years
1992 and 1993, the Secretary
shall use information available
as of January 6, 1995.
``(ii) For fiscal year 1994.--In
determining the amounts described in
subparagraph (C)(i) for any State for
fiscal year 1994, the Secretary shall
use information available as of April
28, 1995.
``(iii) For fiscal year 1995.--
``(I) In determining the
amount described in
subparagraph (B)(ii)(II) for
any State for fiscal year 1995,
the Secretary shall use the
information which was reported
by the States and estimates
made by the States with respect
to emergency assistance
expenditures and was available
as of August 11, 1995.
``(II) In determining the
amounts described in subclauses
(I) through (III) of
subparagraph (C)(i) for any
State for fiscal year 1995, the
Secretary shall use information
available as of October 2,
1995.
``(III) In determining the
amount described in
subparagraph (C)(i)(IV) for any
State for fiscal year 1995, the
Secretary shall use information
available as of February 28,
1996.
``(IV) In determining the
amount described in
subparagraph (C)(i)(V) for any
State for fiscal year 1995, the
Secretary shall use information
available as of October 5,
1995.
``(E) Appropriation.--Out of any money in
the Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1996, 1997, 1998, 1999, 2000, 2001, and
2002 such sums as are necessary for grants
under this paragraph.
``(2) Bonus to reward decrease in illegitimacy.--
``(A) In general.--Each eligible State
shall be entitled to receive from the Secretary
a grant for each bonus year for which the State
demonstrates a net decrease in out-of-wedlock
births.
``(B) Amount of grant.--
``(i) If 5 eligible states.--If
there are 5 eligible States for a bonus
year, the amount of the grant shall be
$20,000,000.
``(ii) If fewer than 5 eligible
states.--If there are fewer than 5
eligible States for a bonus year, the
amount of the grant shall be
$25,000,000.
``(C) Definitions.--As used in this
paragraph:
``(i) Eligible state.--
``(I) In general.--The term
`eligible State' means a State
that the Secretary determines
meets the following
requirements:
``(aa) The State
demonstrates that the
number of out-of-
wedlock births that
occurred in the State
during the most recent
2-year period for which
such information is
available decreased as
compared to the number
of such births that
occurred during the
previous 2-year period,
and the magnitude of
the decrease for the
State for the period is
not exceeded by the
magnitude of the
corresponding decrease
for 5 or more other
States for the period.
``(bb) 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.
``(II) Disregard of changes
in data due to changed
reporting methods.--In making
the determination required by
subclause (I), the Secretary
shall disregard--
``(aa) any
difference between the
number of out-of-
wedlock births that
occurred in a State for
a fiscal year and the
number of out-of-
wedlock births that
occurred in a State for
fiscal year 1995 which
is attributable to a
change in State methods
of reporting data used
to calculate the number
of out-of-wedlock
births; and
``(bb) 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.
``(ii) Bonus year.--The term `bonus
year' means fiscal years 1999, 2000,
2001, and 2002.
``(D) Appropriation.--Out of any money in
the Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1999 through 2002, 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 1998 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
1999, 2000, and 2001, a grant in an
amount equal to the sum of--
``(I) the amount (if any)
required to be paid to the
State under this paragraph for
the immediately preceding
fiscal year; and
``(II) 2.5 percent of the
sum of--
``(aa) the total
amount required to be
paid to the State under
former section 403 (as
in effect during fiscal
year 1994) for fiscal
year 1994; and
``(bb) the amount
(if any) required to be
paid to the State under
this paragraph for the
fiscal year preceding
the fiscal year for
which the grant is to
be made.
``(B) Preservation of grant without
increases for states failing to remain
qualifying states.--Each State that is not a
qualifying State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State
for a prior fiscal year shall, subject to
subparagraph (F), be entitled to receive from
the Secretary for the specified fiscal year, a
grant in an amount equal to the amount required
to be paid to the State under this paragraph
for the most recent fiscal year for which the
State was a qualifying State.
``(C) Qualifying state.--
``(i) In general.--For purposes of
this paragraph, a State is a qualifying
State for a fiscal year if--
``(I) the level of welfare
spending per poor person by the
State for the immediately
preceding fiscal year is less
than the national average level
of State welfare spending per
poor person for such preceding
fiscal year; and
``(II) the population
growth rate of the State (as
determined by the Bureau of the
Census) for the most recent
fiscal year for which
information is available
exceeds the average population
growth rate for all States (as
so determined) for such most
recent fiscal year.
``(ii) State must qualify in fiscal
year 1997.--Notwithstanding clause (i),
a State shall not be a qualifying State
for any fiscal year after 1998 by
reason of clause (i) if the State is
not a qualifying State for fiscal year
1998 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
1998, 1999, 2000, and 2001 if--
``(I) the level of welfare
spending per poor person by the
State for fiscal year 1994 is
less than 35 percent of the
national average level of State
welfare spending per poor
person for fiscal year 1994; or
``(II) the population of
the State increased by more
than 10 percent from April 1,
1990 to July 1, 1994, according
to the population estimates in
publication CB94-204 of the
Bureau of the Census.
``(D) Definitions.--As used in this
paragraph:
``(i) Level of welfare spending per
poor person.--The term `level of State
welfare spending per poor person'
means, with respect to a State and a
fiscal year--
``(I) the sum of--
``(aa) the total
amount required to be
paid to the State under
former section 403 (as
in effect during fiscal
year 1994) for fiscal
year 1994; and
``(bb) the amount
(if any) paid to the
State under this
paragraph for the
immediately preceding
fiscal year; divided by
``(II) the number of
individuals, according to the
1990 decennial census, who were
residents of the State and
whose income was below the
poverty line.
``(ii) National average level of
state welfare spending per poor
person.--The term `national average
level of State welfare spending per
poor person' means, with respect to a
fiscal year, an amount equal to--
``(I) the total amount
required to be paid to the
States under former section 403
(as in effect during fiscal
year 1994) for fiscal year
1994; divided by
``(II) the number of
individuals, according to the
1990 decennial census, who were
residents of any State and
whose income was below the
poverty line.
``(iii) State.--The term `State'
means each of the 50 States of the
United States and the District of
Columbia.
``(E) Appropriation.--Out of any money in
the Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1998, 1999, 2000, and 2001 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
2001.
``(4) Bonus to reward high performance states.--
``(A) In general.--The Secretary shall make
a grant pursuant to this paragraph to each
State for each bonus year for which the State
is a high performing State.
``(B) Amount of grant.--
``(i) In general.--Subject to
clause (ii) of this subparagraph, the
Secretary shall determine the amount of
the grant payable under this paragraph
to a high performing State for a bonus
year, which shall be based on the score
assigned to the State under
subparagraph (D)(i) for the fiscal year
that immediately precedes the bonus
year.
``(ii) Limitation.--The amount
payable to a State under this paragraph
for a bonus year shall not exceed 5
percent of the State family assistance
grant.
``(C) Formula for measuring state
performance.--Not later than 1 year after the
date of the enactment of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, the Secretary, in
consultation with the National Governors'
Association and the American Public Welfare
Association, shall develop a formula for
measuring State performance in operating the
State program funded under this part so as to
achieve the goals set forth in section 401(a).
``(D) Scoring of state performance; setting
of performance thresholds.--For each bonus
year, the Secretary shall--
``(i) use the formula developed
under subparagraph (C) to assign a
score to each eligible State for the
fiscal year that immediately precedes
the bonus year; and
``(ii) prescribe a performance
threshold in such a manner so as to
ensure that--
``(I) the average annual
total amount of grants to be
made under this paragraph for
each bonus year equals
$200,000,000; and
``(II) the total amount of
grants to be made under this
paragraph for all bonus years
equals $1,000,000,000.
``(E) Definitions.--As used in this
paragraph:
``(i) Bonus year.--The term `bonus
year' means fiscal years 1999, 2000,
2001, 2002, and 2003.
``(ii) High performing state.--The
term `high performing State' means,
with respect a bonus year, an eligible
State whose score assigned pursuant to
subparagraph (D)(i) for the fiscal year
immediately preceding the bonus year
equals or exceeds the performance
threshold prescribed under subparagraph
(D)(ii) for such preceding fiscal year.
``(F) Appropriation.--Out of any money in
the Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1999 through 2003 $1,000,000,000 for
grants under this paragraph.
``(b) Contingency Fund.--
``(1) Establishment.--There is hereby established
in the Treasury of the United States a fund which shall
be known as the `Contingency Fund for State Welfare
Programs' (in this section referred to as the `Fund').
``(2) Deposits into fund.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal years
1997, 1998, 1999, 2000, and 2001 such sums as are
necessary for payment to the Fund in a total amount not
to exceed $2,000,000,000.
``(3) Grants.--
``(A) Provisional payments.--If an eligible
State submits to the Secretary a request for
funds under this paragraph during an eligible
month, the Secretary shall, subject to this
paragraph, pay to the State, from amounts
appropriated pursuant to paragraph (2), an
amount equal to the amount of funds so
requested.
``(B) Payment priority.--The Secretary
shall make payments under subparagraph (A) in
the order in which the Secretary receives
requests for such payments.
``(C) Limitations.--
``(i) Monthly payment to a state.--
The total amount paid to a single State
under subparagraph (A) during a month
shall not exceed \1/12\ of 20 percent
of the State family assistance grant.
``(ii) Payments to all states.--The
total amount paid to all States under
subparagraph (A) during fiscal years
1997 through 2001 shall not exceed the
total amount appropriated pursuant to
paragraph (2).
``(4) Annual reconciliation.--Notwithstanding
paragraph (3), at the end of each fiscal year, each
State shall remit to the Secretary an amount equal to
the amount (if any) by which the total amount paid to
the State under paragraph (3) during the fiscal year
exceeds--
``(A) the Federal medical assistance
percentage for the State for the fiscal year
(as defined in section 1905(b), as in effect on
September 30, 1995) of the amount (if any) by
which--
``(i) if the Secretary makes a
payment to the State under section
418(a)(2) in the fiscal year--
``(I) the expenditures
under the State program funded
under this part for the fiscal
year, excluding any amounts
made available by the Federal
Government (except amounts paid
to the State under paragraph
(3) during the fiscal year that
have been expended by the
State) and any amounts expended
by the State during the fiscal
year for child care; exceeds
``(II) historic State
expenditures (as defined in
section 409(a)(7)(B)(iii)),
excluding the expenditures by
the State for child care under
subsection (g) or (i) of
section 402 (as in effect
during fiscal year 1994) for
fiscal year 1994 minus any
Federal payment with respect to
such child care expenditures;
or
``(ii) if the Secretary does not
make a payment to the State under
section 418(a)(2) in the fiscal year--
``(I) the expenditures
under the State program funded
under this part for the fiscal
year (excluding any amounts
made available by the Federal
Government, except amounts paid
to the State under paragraph
(3) during the fiscal year that
have been expended by the
State); exceeds
``(II) historic State
expenditures (as defined in
section 409(a)(7)(B)(iii));
multiplied by
``(B) \1/12\ times the number of months
during the fiscal year for which the Secretary
makes a payment to the State under this
subsection.
``(5) Eligible month.--As used in paragraph (3)(A),
the term `eligible month' means, with respect to a
State, a month in the 2-month period that begins with
any month for which the State is a needy State.
``(6) Needy state.--For purposes of paragraph (5),
a State is a needy State for a month if--
``(A) the average rate of--
``(i) total unemployment in such
State (seasonally adjusted) for the
period consisting of the most recent 3
months for which data for all States
are published equals or exceeds 6.5
percent; and
``(ii) total unemployment in such
State (seasonally adjusted) for the 3-
month period equals or exceeds 110
percent of such average rate for either
(or both) of the corresponding 3-month
periods ending in the 2 preceding
calendar years; or
``(B) as determined by the Secretary of
Agriculture (in the discretion of the Secretary
of Agriculture), the monthly average number of
individuals (as of the last day of each month)
participating in the food stamp program in the
State in the then most recently concluded 3-
month period for which data are available
exceeds by not less than 10 percent the lesser
of--
``(i) the monthly average number of
individuals (as of the last day of each
month) in the State that would have
participated in the food stamp program
in the corresponding 3-month period in
fiscal year 1994 if the amendments made
by titles IV and VIII of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 had been in
effect throughout fiscal year 1994; or
``(ii) the monthly average number
of individuals (as of the last day of
each month) in the State that would
have participated in the food stamp
program in the corresponding 3-month
period in fiscal year 1995 if the
amendments made by titles IV and VIII
of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996
had been in effect throughout fiscal
year 1995.
``(7) Other terms defined.--As used in this
subsection:
``(A) State.--The term `State' means each
of the 50 States of the United States and the
District of Columbia.
``(B) Secretary.--The term `Secretary'
means the Secretary of the Treasury.
``(8) Annual reports.--The Secretary shall annually
report to the Congress on the status of the Fund.
``SEC. 404. USE OF GRANTS.
``(a) General Rules.--Subject to this part, a State to
which a grant is made under section 403 may use the grant--
``(1) in any manner that is reasonably calculated
to accomplish the purpose of this part, including to
provide low income households with assistance in
meeting home heating and cooling costs; or
``(2) in any manner that the State was authorized
to use amounts received under part A or F, as such
parts were in effect on September 30, 1995.
``(b) Limitation on Use of Grant for Administrative
Purposes.--
``(1) Limitation.--A State to which a grant is made
under section 403 shall not expend more than 15 percent
of the grant for administrative purposes.
``(2) Exception.--Paragraph (1) shall not apply to
the use of a grant for information technology and
computerization needed for tracking or monitoring
required by or under this part.
``(c) Authority To Treat Interstate Immigrants Under Rules
of Former State.--A State operating a program funded under this
part may apply to a family the rules (including benefit
amounts) of the program funded under this part of another State
if the family has moved to the State from the other State and
has resided in the State for less than 12 months.
``(d) Authority To Use Portion of Grant for Other
Purposes.--
``(1) In general.--A State may use not more than 30
percent of the amount of any grant made to the State
under section 403(a) for a fiscal year to carry out a
State program pursuant to any or all of the following
provisions of law:
``(A) Title XX of this Act.
``(B) The Child Care and Development Block
Grant Act of 1990.
``(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, and the expenditure of
any amount so used shall not be considered to
be an expenditure under this part.
``(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 whose income is less than 200
percent of the income official poverty line (as
defined by the Office of Management and Budget,
and revised annually in accordance with section
673(2) of the Omnibus Budget Reconciliation Act
of 1981) applicable to a family of the size
involved.
``(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.
``(h) Use of Funds for Individual Development Accounts.--
``(1) In general.--A State to which a grant is made
under section 403 may use the grant to carry out a
program to fund individual development accounts (as
defined in paragraph (2)) established by individuals
eligible for assistance under the State program funded
under this part.
``(2) Individual development accounts.--
``(A) Establishment.--Under a State program
carried out under paragraph (1), an individual
development account may be established by or on
behalf of an individual eligible for assistance
under the State program operated under this
part for the purpose of enabling the individual
to accumulate funds for a qualified purpose
described in subparagraph (B).
``(B) Qualified purpose.--A qualified
purpose described in this subparagraph is 1 or
more of the following, as provided by the
qualified entity providing assistance to the
individual under this subsection:
``(i) Postsecondary educational
expenses.--Postsecondary educational
expenses paid from an individual
development account directly to an
eligible educational institution.
``(ii) First home purchase.--
Qualified acquisition costs with
respect to a qualified principal
residence for a qualified first-time
homebuyer, if paid from an individual
development account directly to the
persons to whom the amounts are due.
``(iii) Business capitalization.--
Amounts paid from an individual
development account directly to a
business capitalization account which
is established in a federally insured
financial institution and is restricted
to use solely for qualified business
capitalization expenses.
``(C) Contributions to be from earned
income.--An individual may only contribute to
an individual development account such amounts
as are derived from earned income, as defined
in section 911(d)(2) of the Internal Revenue
Code of 1986.
``(D) Withdrawal of funds.--The Secretary
shall establish such regulations as may be
necessary to ensure that funds held in an
individual development account are not
withdrawn except for 1 or more of the qualified
purposes described in subparagraph (B).
``(3) Requirements.--
``(A) In general.--An individual
development account established under this
subsection shall be a trust created or
organized in the United States and funded
through periodic contributions by the
establishing individual and matched by or
through a qualified entity for a qualified
purpose (as described in paragraph (2)(B)).
``(B) Qualified entity.--As used in this
subsection, the term `qualified entity' means--
``(i) a not-for-profit organization
described in section 501(c)(3) of the
Internal Revenue Code of 1986 and
exempt from taxation under section
501(a) of such Code; or
``(ii) a State or local government
agency acting in cooperation with an
organization described in clause (i).
``(4) No reduction in benefits.--Notwithstanding
any other provision of Federal law (other than the
Internal Revenue Code of 1986) that requires
consideration of 1 or more financial circumstances of
an individual, for the purpose of determining
eligibility to receive, or the amount of, any
assistance or benefit authorized by such law to be
provided to or for the benefit of such individual,
funds (including interest accruing) in an individual
development account under this subsection shall be
disregarded for such purpose with respect to any period
during which such individual maintains or makes
contributions into such an account.
``(5) Definitions.--As used in this subsection--
``(A) Eligible educational institution.--
The term `eligible educational institution'
means the following:
``(i) An institution described in
section 481(a)(1) or 1201(a) of the
Higher Education Act of 1965 (20 U.S.C.
1088(a)(1) or 1141(a)), as such
sections are in effect on the date of
the enactment of this subsection.
``(ii) An area vocational education
school (as defined in subparagraph (C)
or (D) of section 521(4) of the Carl D.
Perkins Vocational and Applied
Technology Education Act (20 U.S.C.
2471(4))) which is in any State (as
defined in section 521(33) of such
Act), as such sections are in effect on
the date of the enactment of this
subsection.
``(B) Post-secondary educational
expenses.--The term `post-secondary educational
expenses' means--
``(i) tuition and fees required for
the enrollment or attendance of a
student at an eligible educational
institution, and
``(ii) fees, books, supplies, and
equipment required for courses of
instruction at an eligible educational
institution.
``(C) Qualified acquisition costs.--The
term `qualified acquisition costs' means the
costs of acquiring, constructing, or
reconstructing a residence. The term includes
any usual or reasonable settlement, financing,
or other closing costs.
``(D) Qualified business.--The term
`qualified business' means any business that
does not contravene any law or public policy
(as determined by the Secretary).
``(E) Qualified business capitalization
expenses.--The term `qualified business
capitalization expenses' means qualified
expenditures for the capitalization of a
qualified business pursuant to a qualified
plan.
``(F) Qualified expenditures.--The term
`qualified expenditures' means expenditures
included in a qualified plan, including
capital, plant, equipment, working capital, and
inventory expenses.
``(G) Qualified first-time homebuyer.--
``(i) In general.--The term
`qualified first-time homebuyer' means
a taxpayer (and, if married, the
taxpayer's spouse) who has no present
ownership interest in a principal
residence during the 3-year period
ending on the date of acquisition of
the principal residence to which this
subsection applies.
``(ii) Date of acquisition.--The
term `date of acquisition' means the
date on which a binding contract to
acquire, construct, or reconstruct the
principal residence to which this
subparagraph applies is entered into.
``(H) Qualified plan.--The term `qualified
plan' means a business plan which--
``(i) is approved by a financial
institution, or by a nonprofit loan
fund having demonstrated fiduciary
integrity,
``(ii) includes a description of
services or goods to be sold, a
marketing plan, and projected financial
statements, and
``(iii) may require the eligible
individual to obtain the assistance of
an experienced entrepreneurial advisor.
``(I) Qualified principal residence.--The
term `qualified principal residence' means a
principal residence (within the meaning of
section 1034 of the Internal Revenue Code of
1986), the qualified acquisition costs of which
do not exceed 100 percent of the average area
purchase price applicable to such residence
(determined in accordance with paragraphs (2)
and (3) of section 143(e) of such Code).
``(i) Sanction Welfare Recipients for Failing To Ensure
That Minor Dependent Children Attend School.--A State to which
a grant is made under section 403 shall not be prohibited from
sanctioning 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 or
under the food stamp program, as defined in section 3(h) of the
Food Stamp Act of 1977, if such adult fails to ensure that the
minor dependent children of such adult attend school as
required by the law of the State in which the minor children
reside.
``(j) Requirement for High School Diploma or Equivalent.--A
State to which a grant is made under section 403 shall not be
prohibited from sanctioning a family that includes an adult who
is older than age 20 and younger than age 51 and who has
received assistance under any State program funded under this
part attributable to funds provided by the Federal Government
or under the food stamp program, as defined in section 3(h) of
the Food Stamp Act of 1977, if such adult does not have, or is
not working toward attaining, a secondary school diploma or its
recognized equivalent unless such adult has been determined in
the judgment of medical, psychiatric, or other appropriate
professionals to lack the requisite capacity to complete
successfully a course of study that would lead to a secondary
school diploma or its recognized equivalent.
``SEC. 405. ADMINISTRATIVE PROVISIONS.
``(a) Quarterly.--The Secretary shall pay each grant
payable to a State under section 403 in quarterly installments,
subject to this section.
``(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.
``SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.
``(a) Loan Authority.--
``(1) In general.--The Secretary shall make loans
to any loan-eligible State, for a period to maturity of
not more than 3 years.
``(2) Loan-eligible state.--As used in paragraph
(1), the term `loan-eligible State' means a State
against which a penalty has not been imposed under
section 409(a)(1).
``(b) Rate of Interest.--The Secretary shall charge and
collect interest on any loan made under this section at a rate
equal to the current average market yield on outstanding
marketable obligations of the United States with remaining
periods to maturity comparable to the period to maturity of the
loan.
``(c) Use of Loan.--A State shall use a loan made to the
State under this section only for any purpose for which grant
amounts received by the State under section 403(a) may be used,
including--
``(1) welfare anti-fraud activities; and
``(2) the provision of assistance under the State
program to Indian families that have moved from the
service area of an Indian tribe with a tribal family
assistance plan approved under section 412.
``(d) Limitation on Total Amount of Loans to a State.--The
cumulative dollar amount of all loans made to a State under
this section during fiscal years 1997 through 2002 shall not
exceed 10 percent of the State family assistance grant.
``(e) Limitation on Total Amount of Outstanding Loans.--The
total dollar amount of loans outstanding under this section may
not exceed $1,700,000,000.
``(f) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated such sums as may be necessary for the cost of
loans under this section.
``SEC. 407. MANDATORY WORK REQUIREMENTS.
``(a) Participation Rate Requirements.--
``(1) All families.--A State to which a grant is
made under section 403 for a fiscal year shall achieve
the minimum participation rate specified in the
following table for the fiscal year with respect to all
families receiving assistance under the State program
funded under this part:
The minimum
participation
``If the fiscal year is: rate is:
1997........................................ 25
1998........................................ 30
1999........................................ 35
2000........................................ 40
2001........................................ 45
2002 or thereafter.......................... 50.
``(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 or a minor child head
of household 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 or a
minor child head of household
receiving such assistance;
exceeds
``(II) the number of
families receiving such
assistance that are subject in
such month to a penalty
described in subsection (e)(1)
but have not been subject to
such penalty for more than 3
months within the preceding 12-
month period (whether or not
consecutive).
``(2) 2-parent families.--
``(A) Average monthly rate.--For purposes
of subsection (a)(2), the participation rate
for 2-parent families of a State for a fiscal
year is the average of the participation rates
for 2-parent families of the State for each
month in the fiscal year.
``(B) Monthly participation rates.--The
participation rate of a State for 2-parent
families of the State for a month shall be
calculated by use of the formula set forth in
paragraph (1)(B), except that in the formula
the term `number of 2-parent families' shall be
substituted for the term `number of families'
each place such latter term appears.
``(3) Pro rata reduction of participation rate due
to caseload reductions not required by federal law.--
``(A) In general.--The Secretary shall
prescribe regulations for reducing the minimum
participation rate otherwise required by this
section for a fiscal year by the number of
percentage points equal to the number of
percentage points (if any) by which--
``(i) the average monthly number of
families receiving assistance during
the immediately preceding fiscal year
under the State program funded under
this part is less than
``(ii) the average monthly number
of families that received aid under the
State plan approved under part A (as in
effect on September 30, 1995) during
fiscal year 1995.
The minimum participation rate shall not be
reduced to the extent that the Secretary
determines that the reduction in the number of
families receiving such assistance is required
by Federal law.
``(B) Eligibility changes not counted.--The
regulations required by 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 in the State that are
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) for not more
than 12 months.
``(c) Engaged in Work.--
``(1) General rules.--
``(A) All families.--For purposes of
subsection (b)(1)(B)(i), a recipient is engaged
in work for a month in a fiscal year if the
recipient is participating in work activities
for at least the minimum average number of
hours per week specified in the following table
during the month, not fewer than 20 hours per
week of which are attributable to an activity
described in paragraph (1), (2), (3), (4), (5),
(6), (7), (8), or (12) of subsection (d),
subject to this subsection:
The minimum
``If the month is average number of
in fiscal year: hours per week is:
1997...................................... 20
1998...................................... 20
1999...................................... 25
2000 or thereafter........................ 30.
``(B) 2-parent families.--For purposes of
subsection (b)(2)(B), an individual is engaged
in work for a month in a fiscal year if--
``(i) the individual is making
progress in work activities for at
least 35 hours per week during the
month, not fewer than 30 hours per week
of which are attributable to an
activity described in paragraph (1),
(2), (3), (4), (5), (6), (7), (8), or
(12) of subsection (d), subject to this
subsection; and
``(ii) if the family of the
individual receives federally-funded
child care assistance and an adult in
the family is not disabled or caring
for a severely disabled child, the
individual's spouse is making progress
in work activities 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), or (7) of subsection (d).
``(2) Limitations and special rules.--
``(A) Number of weeks for which job search
counts as work.--
``(i) Limitation.--Notwithstanding
paragraph (1) of this subsection, an
individual shall not be considered to
be engaged in work by virtue of
participation in an activity described
in subsection (d)(6) of a State program
funded under this part, after the
individual has participated in such an
activity for 6 weeks (or, if the
unemployment rate of the State is at
least 50 percent greater than the
unemployment rate of the United States,
12 weeks), or if the participation is
for a week that immediately follows 4
consecutive weeks of such
participation.
``(ii) Limited authority to count
less than full week of participation.--
For purposes of clause (i) of this
subparagraph, on not more than 1
occasion per individual, the State
shall consider participation of the
individual in an activity described in
subsection (d)(6) for 3 or 4 days
during a week as a week of
participation in the activity by the
individual.
``(B) 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.
``(C) 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,
subject to subparagraph (D) of this paragraph,
to be engaged in work for a month in a fiscal
year if the recipient--
``(i) maintains satisfactory
attendance at secondary school or the
equivalent during the month; or
``(ii) 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)(A) of this
subsection.
``(D) Number of persons that may be treated
as engaged in work by virtue of participation
in vocational education activities or being a
teen head of household who maintains
satisfactory school attendance.--For purposes
of determining monthly participation rates
under paragraphs (1)(B)(i) and (2)(B) of
subsection (b), not more than 20 percent of
individuals in all families and in 2-parent
families may be determined to be engaged in
work in the State for a month by reason of
participation in vocational educational
training or deemed to be engaged in work by
reason of subparagraph (C) of this paragraph.
``(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;
``(11) satisfactory attendance at secondary school
or in a course of study leading to a certificate of
general equivalence, in the case of a recipient who has
not completed secondary school or received such a
certificate; and
``(12) the provision of child care services to an
individual who is participating in a community service
program.
``(e) Penalties Against Individuals.--
``(1) In general.--Except as provided in paragraph
(2), if an individual in a family receiving assistance
under the State program funded under this part refuses
to engage in work required in accordance with this
section, the State shall--
``(A) reduce the amount of assistance
otherwise payable to the family pro rata (or
more, at the option of the State) with respect
to any period during a month in which the
individual 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 individual to work if the individual is a single
custodial parent caring for a child who has not
attained 6 years of age, and the individual proves that
the individual 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) Grievance procedure.--A State with a program
funded under this part shall establish and maintain a
grievance procedure for resolving complaints of alleged
violations of paragraph (2).
``(4) No preemption.--Nothing in this subsection
shall preempt or supersede any provision of State or
local law that provides greater protection for
employees from displacement.
``(g) Sense of the Congress.--It is the sense of the
Congress that in complying with this section, each State that
operates a program funded under this part is encouraged to
assign the highest priority to requiring adults in 2-parent
families and adults in single-parent families that include
older preschool or school-age children to be engaged in work
activities.
``(h) Sense of the Congress That States Should Impose
Certain Requirements on Noncustodial, Nonsupporting Minor
Parents.--It is the sense of the Congress that the States
should require noncustodial, nonsupporting parents who have not
attained 18 years of age to fulfill community work obligations
and attend appropriate parenting or money management classes
after school.
``(i) Review of Implementation of State Work Programs.--
During fiscal year 1999, the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate shall hold hearings and engage in other appropriate
activities to review the implementation of this section by the
States, and shall invite the Governors of the States to testify
before them regarding such implementation. Based on such
hearings, such Committees may introduce such legislation as may
be appropriate to remedy any problems with the State programs
operated pursuant to this section.
``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--
``(A) unless the family includes--
``(i) a minor child who resides
with a custodial parent or other adult
caretaker relative of the child; or
``(ii) a pregnant individual; and
``(B) if the family 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 (unless an exception described in
subparagraph (B), (C), or (D) of paragraph (7)
applies).
``(2) Reduction or elimination of assistance for
noncooperation in establishing paternity or obtaining
child support.--If the agency responsible for
administering the State plan approved under part D
determines that an individual is not cooperating with
the State in establishing paternity or in establishing,
modifying, or enforcing a support order with respect to
a child of the individual, and the individual does not
qualify for any good cause or other exception
established by the State pursuant to section 454(29),
then the State--
``(A) shall deduct from the assistance that
would otherwise be provided to the family of
the individual under the State program funded
under this part an amount equal to not less
than 25 percent of the amount of such
assistance; and
``(B) may deny the family any assistance
under the State program.
``(3) No assistance for families not assigning
certain support rights to the state.--
``(A) In general.--A State to which a grant
is made under section 403 shall require, as a
condition of providing assistance to a family
under the State program funded under this part,
that a member of the family assign to the State
any rights the family member may have (on
behalf of the family member or of any other
person for whom the family member has applied
for or is receiving such assistance) to support
from any other person, not exceeding the total
amount of assistance so provided to the family,
which accrue (or have accrued) before the date
the family leaves the program, which
assignment, on and after the date the family
leaves the program, shall not apply with
respect to any support (other than support
collected pursuant to section 464) which
accrued before the family received such
assistance and which the State has not
collected by--
``(i) September 30, 2000, if the
assignment is executed on or after
October 1, 1997, and before October 1,
2000; or
``(ii) the date the family leaves
the program, if the assignment is
executed on or after October 1, 2000.
``(B) Limitation.--A State to which a grant
is made under section 403 shall not require, as
a condition of providing assistance to any
family under the State program funded under
this part, that a member of the family assign
to the State any rights to support described in
subparagraph (A) which accrue after the date
the family leaves the program.
``(4) 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.
``(5) 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.
``(6) No medical services.--
``(A) In general.--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 prepregnancy family
planning services.--As used in subparagraph
(A), the term `medical services' does not
include prepregnancy family planning services.
``(7) No assistance for more than 5 years.--
``(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 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,
subject to this paragraph.
``(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) Disregard of months of assistance
received by adult while living on an indian
reservation or in an alaskan native village
with 50 percent unemployment.--In determining
the number of months for which an adult has
received assistance under the State program
funded under this part, the State shall
disregard any month during which the adult
lived on an Indian reservation or in an Alaskan
Native village if, during the month--
``(i) at least 1,000 individuals
were living on the reservation or in
the village; and
``(ii) at least 50 percent of the
adults living on the reservation or in
the village were unemployed.
``(E) 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.
``(F) 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).
``(8) Denial of assistance for 10 years to a person
found to have fraudulently misrepresented residence in
order to obtain assistance in 2 or more states.--A
State to which a grant is made under section 403 shall
not use any part of the grant to provide cash
assistance to an individual during the 10-year period
that begins on the date the individual is convicted in
Federal or State court of having made a fraudulent
statement or representation with respect to the place
of residence of the individual in order to receive
assistance simultaneously from 2 or more States under
programs that are funded under this title, title XIX,
or the Food Stamp Act of 1977, or benefits in 2 or more
States under the supplemental security income program
under title XVI. The preceding sentence shall not apply
with respect to a conviction of an individual, for any
month beginning after the President of the United
States grants a pardon with respect to the conduct
which was the subject of the conviction.
``(9) Denial of assistance for fugitive felons and
probation and parole violators.--
``(A) In general.--A State to which a grant
is made under section 403 shall not use any
part of the grant to provide assistance to any
individual who is--
``(i) fleeing to avoid prosecution,
or custody or confinement after
conviction, under the laws of the place
from which the individual flees, for a
crime, or an attempt to commit a crime,
which is a felony under the laws of the
place from which the individual flees,
or which, in the case of the State of
New Jersey, is a high misdemeanor under
the laws of such State; or
``(ii) violating a condition of
probation or parole imposed under
Federal or State law.
The preceding sentence shall not apply with respect to conduct
of an individual, for any month beginning after the President
of the United States grants a pardon with respect to the
conduct.
``(B) Exchange of information with law
enforcement agencies.--If a State to which a
grant is made under section 403 establishes
safeguards against the use or disclosure of
information about applicants or recipients of
assistance under the State program funded under
this part, the safeguards shall not prevent the
State agency administering the program from
furnishing a Federal, State, or local law
enforcement officer, upon the request of the
officer, with the current address of any
recipient if the officer furnishes the agency
with the name of the recipient and notifies the
agency that--
``(i) the recipient--
``(I) is described in
subparagraph (A); or
``(II) has information that
is necessary for the officer to
conduct the official duties of
the officer; and
``(ii) the location or apprehension
of the recipient is within such
official duties.
``(10) Denial of assistance for minor children who
are absent from the home for a significant period.--
``(A) In general.--A State to which a grant
is made under section 403 shall not use any
part of the grant to provide assistance for a
minor child who has been, or is expected by a
parent (or other caretaker relative) of the
child to be, absent from the home for a period
of 45 consecutive days or, at the option of the
State, such period of not less than 30 and not
more than 180 consecutive days as the State may
provide for in the State plan submitted
pursuant to section 402.
``(B) State authority to establish good
cause exceptions.--The State may establish such
good cause exceptions to subparagraph (A) as
the State considers appropriate if such
exceptions are provided for in the State plan
submitted pursuant to section 402.
``(C) Denial of assistance for relative who
fails to notify state agency of absence of
child.--A State to which a grant is made under
section 403 shall not use any part of the grant
to provide assistance for an individual who is
a parent (or other caretaker relative) of a
minor child and who fails to notify the agency
administering the State program funded under
this part of the absence of the minor child
from the home for 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.
``(11) Medical assistance required to be provided
for certain families having earnings from employment or
child support.--
``(A) Earnings from employment.--A State to
which a grant is made under section 403 and
which has a State plan approved under title XIX
shall provide that in the case of a family that
is treated (under section 1931(b)(1)(A) for
purposes of title XIX) as receiving aid under a
State plan approved under this part (as in
effect on July 16, 1996), that would become
ineligible for such aid because of hours of or
income from employment of the caretaker
relative (as defined under this part as in
effect on such date) or because of section
402(a)(8)(B)(ii)(II) (as so in effect), and
that was so treated as receiving such aid in at
least 3 of the 6 months immediately preceding
the month in which such ineligibility begins,
the family shall remain eligible for medical
assistance under the State's plan approved
under title XIX for an extended period or
periods as provided in section 1925 or
1902(e)(1) (as applicable), and that the family
will be appropriately notified of such
extension as required by section 1925(a)(2).
``(B) Child support.--A State to which a
grant is made under section 403 and which has a
State plan approved under title XIX shall
provide that in the case of a family that is
treated (under section 1931(b)(1)(A) for
purposes of title XIX) as receiving aid under a
State plan approved under this part (as in
effect on July 16, 1996), that would become
ineligible for such aid as a result (wholly or
partly) of the collection of child or spousal
support under part D and that was so treated as
receiving such aid in at least 3 of the 6
months immediately preceding the month in which
such ineligibility begins, the family shall
remain eligible for medical assistance under
the State's plan approved under title XIX for
an extended period or periods as provided in
section 1931(c)(1).
``(b) Individual Responsibility Plans.--
``(1) Assessment.--The State agency responsible for
administering the State program funded under this part
shall make an initial assessment of the skills, prior
work experience, and employability of each recipient of
assistance under the program who--
``(A) has attained 18 years of age; or
``(B) has not completed high school or
obtained a certificate of high school
equivalency, and is not attending secondary
school.
``(2) Contents of plans.--
``(A) In general.--On the basis of the
assessment made under subsection (a) with
respect to an individual, the State agency, in
consultation with the individual, may develop
an individual responsibility plan for the
individual, which--
``(i) sets forth an employment goal
for the individual and a plan for
moving the individual immediately into
private sector employment;
``(ii) sets forth the obligations
of the individual, which may include a
requirement that the individual attend
school, maintain certain grades and
attendance, keep school age children of
the individual in school, immunize
children, attend parenting and money
management classes, or do other things
that will help the individual become
and remain employed in the private
sector;
``(iii) to the greatest extent
possible is designed to move the
individual into whatever private sector
employment the individual is capable of
handling as quickly as possible, and to
increase the responsibility and amount
of work the individual is to handle
over time;
``(iv) describes the services the
State will provide the individual so
that the individual will be able to
obtain and keep employment in the
private sector, and describe the job
counseling and other services that will
be provided by the State; and
``(v) may require the individual to
undergo appropriate substance abuse
treatment.
``(B) Timing.--The State agency may comply
with paragraph (1) with respect to an
individual--
``(i) within 90 days (or, at the
option of the State, 180 days) after
the effective date of this part, in the
case of an individual who, as of such
effective date, is a recipient of aid
under the State plan approved under
part A (as in effect immediately before
such effective date); or
``(ii) within 30 days (or, at the
option of the State, 90 days) after the
individual is determined to be eligible
for such assistance, in the case of any
other individual.
``(3) Penalty for noncompliance by individual.--In
addition to any other penalties required under the
State program funded under this part, the State may
reduce, by such amount as the State considers
appropriate, the amount of assistance otherwise payable
under the State program to a family that includes an
individual who fails without good cause to comply with
an individual responsibility plan signed by the
individual.
``(4) State discretion.--The exercise of the
authority of this subsection shall be within the sole
discretion of the State.
``(c) Nondiscrimination Provisions.--The following
provisions of law shall apply to any program or activity which
receives funds provided under this part:
``(1) The Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.).
``(2) Section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794).
``(3) The Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.).
``(4) Title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.).
``(d) Aliens.--For special rules relating to the treatment
of aliens, see section 402 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996.
``SEC. 409. PENALTIES.
``(a) In General.--Subject to this section:
``(1) Use of grant in violation of this part.--
``(A) General penalty.--If an audit
conducted under chapter 75 of title 31, United
States Code, finds that an amount paid to a
State under section 403 for a fiscal year has
been used in violation of this part, the
Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the
immediately succeeding fiscal year quarter by
the amount so used.
``(B) Enhanced penalty for intentional
violations.--If the State does not prove to the
satisfaction of the Secretary that the State
did not intend to use the amount in violation
of this part, the Secretary shall further
reduce the grant payable to the State under
section 403(a)(1) for the immediately
succeeding fiscal year quarter by an amount
equal to 5 percent of the State family
assistance grant.
``(2) Failure to submit required report.--
``(A) In general.--If the Secretary
determines that a State has not, within 1 month
after the end of a fiscal quarter, submitted
the report required by section 411(a) for the
quarter, the Secretary shall reduce the grant
payable to the State under section 403(a)(1)
for the immediately succeeding fiscal year by
an amount equal to 4 percent of the State
family assistance grant.
``(B) Rescission of penalty.--The Secretary
shall rescind a penalty imposed on a State
under subparagraph (A) with respect to a report
if the State submits the report before the end
of the fiscal quarter that immediately succeeds
the fiscal quarter for which the report was
required.
``(3) Failure to satisfy minimum participation
rates.--
``(A) In general.--If the Secretary
determines that a State to which a grant is
made under section 403 for a fiscal year has
failed to comply with section 407(a) for the
fiscal year, the Secretary shall reduce the
grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal
year by an amount equal to not more than the
applicable percentage of the State family
assistance grant.
``(B) Applicable percentage defined.--As
used in subparagraph (A), the term `applicable
percentage' means, with respect to a State--
``(i) if a penalty was not imposed
on the State under subparagraph (A) for
the immediately preceding fiscal year,
5 percent; or
``(ii) if a penalty was imposed on
the State under subparagraph (A) for
the immediately preceding fiscal year,
the lesser of--
``(I) the percentage by
which the grant payable to the
State under section 403(a)(1)
was reduced for such preceding
fiscal year, increased by 2
percentage points; or
``(II) 21 percent.
``(C) Penalty based on severity of
failure.--The Secretary shall impose reductions
under subparagraph (A) with respect to a fiscal
year based on the degree of noncompliance, and
may reduce the penalty if the noncompliance is
due to circumstances that caused the State to
become a needy State (as defined in section
403(b)(6)) during the fiscal year.
``(4) Failure to participate in the income and
eligibility verification system.--If the Secretary
determines that a State program funded under this part
is not participating during a fiscal year in the income
and eligibility verification system required by section
1137, the Secretary shall reduce the grant payable to
the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to not more
than 2 percent of the State family assistance grant.
``(5) Failure to comply with paternity
establishment and child support enforcement
requirements under part d.--Notwithstanding any other
provision of this Act, if the Secretary determines that
the State agency that administers a program funded
under this part does not enforce the penalties
requested by the agency administering part D against
recipients of assistance under the State program who
fail to cooperate in establishing paternity or in
establishing, modifying, or enforcing a child support
order in accordance with such part and who do not
qualify for any good cause or other exception
established by the State under section 454(29), the
Secretary shall reduce the grant payable to the State
under section 403(a)(1) for the immediately succeeding
fiscal year (without regard to this section) by not
more than 5 percent.
``(6) Failure to timely repay a federal loan fund
for state welfare programs.--If the Secretary
determines that a State has failed to repay any amount
borrowed from the Federal Loan Fund for State Welfare
Programs established under section 406 within the
period of maturity applicable to the loan, plus any
interest owed on the loan, the Secretary shall reduce
the grant payable to the State under section 403(a)(1)
for the immediately succeeding fiscal year quarter
(without regard to this section) by the outstanding
loan amount, plus the interest owed on the outstanding
amount. The Secretary shall not forgive any outstanding
loan amount or interest owed on the outstanding amount.
``(7) Failure of any state to maintain certain
level of historic effort.--
``(A) In general.--The Secretary shall
reduce the grant payable to the State under
section 403(a)(1) for fiscal year 1998, 1999,
2000, 2001, 2002, or 2003 by the amount (if
any) by which qualified State expenditures for
the then immediately preceding fiscal year are
less than the applicable percentage of historic
State expenditures with respect to such
preceding fiscal year.
``(B) Definitions.--As used in this
paragraph:
``(i) Qualified state
expenditures.--
``(I) In general.--The term
`qualified State expenditures'
means, with respect to a State
and a fiscal year, the total
expenditures by the State
during the fiscal year, under
all State programs, for any of
the following with respect to
eligible families:
``(aa) Cash
assistance.
``(bb) Child care
assistance.
``(cc) Educational
activities designed to
increase self-
sufficiency, job
training, and work,
excluding any
expenditure for public
education in the State
except expenditures
which involve the
provision of services
or assistance to a
member of an eligible
family which is not
generally available to
persons who are not
members of an eligible
family.
``(dd)
Administrative costs in
connection with the
matters described in
items (aa), (bb), (cc),
and (ee), but only to
the extent that such
costs do not exceed 15
percent of the total
amount of qualified
State expenditures for
the fiscal year.
``(ee) Any other
use of funds allowable
under section
404(a)(1).
``(II) Exclusion of
transfers from other state and
local programs.--Such term does
not include expenditures under
any State or local program
during a fiscal year, except to
the extent that--
``(aa) the
expenditures exceed the
amount expended under
the State or local
program in the fiscal
year most recently
ending before the date
of the enactment of
this part; or
``(bb) the State is
entitled to a payment
under former section
403 (as in effect
immediately before such
date of enactment) with
respect to the
expenditures.
``(III) Eligible
families.--As used in subclause
(I), the term `eligible
families' means families
eligible for assistance under
the State program funded under
this part, and families that
would be eligible for such
assistance but for the
application of section
408(a)(7) of this Act or
section 402 of the Personal
Responsibility and Work
Opportunity Reconciliation Act
of 1996.
``(ii) Applicable percentage.--The
term `applicable percentage' means for
fiscal years 1997 through 2002, 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).
``(iii) Historic state
expenditures.--The term `historic State
expenditures' means, with respect to a
State, the lesser of--
``(I) the expenditures by
the State under parts A and F
(as in effect during fiscal
year 1994) for fiscal year
1994; or
``(II) the amount which
bears the same ratio to the
amount described in subclause
(I) as--
``(aa) the State
family assistance
grant, plus the total
amount required to be
paid to the State under
former section 403 for
fiscal year 1994 with
respect to amounts
expended by the State
for child care under
subsection (g) or (i)
of section 402 (as in
effect during fiscal
year 1994); bears to
``(bb) the total
amount required to be
paid to the State under
former section 403 (as
in effect during fiscal
year 1994) for fiscal
year 1994.
Such term does not include any
expenditures under the State plan
approved under part A (as so in effect)
on behalf of individuals covered by a
tribal family assistance plan approved
under section 412, as determined by the
Secretary.
``(iv) Expenditures by the state.--
The term `expenditures by the State'
does not include--
``(I) any expenditures from
amounts made available by the
Federal Government;
``(II) any State funds
expended for the medicaid
program under title XIX;
``(III) any State funds
which are used to match Federal
funds; or
``(IV) any State funds
which are expended as a
condition of receiving Federal
funds under Federal programs
other than under this part.
Notwithstanding subclause (IV) of the
preceding sentence, such term includes
expenditures by a State for child care
in a fiscal year to the extent that the
total amount of such expenditures does
not exceed an amount equal to the
amount of State expenditures in fiscal
year 1994 or 1995 (whichever is
greater) that equal the non-Federal
share for the programs described in
section 418(a)(1)(A).
``(8) Substantial noncompliance of state child
support enforcement program with requirements of part
d.--
``(A) In general.--If a State program
operated under part D is found as a result of a
review conducted under section 452(a)(4) not to
have complied substantially with the
requirements of such part for any quarter, and
the Secretary determines that the program is
not complying substantially with such
requirements at the time the finding is made,
the Secretary shall reduce the grant payable to
the State under section 403(a)(1) for the
quarter and each subsequent quarter that ends
before the 1st quarter throughout which the
program is found to be in substantial
compliance with such requirements by--
``(i) not less than 1 nor more than
2 percent;
``(ii) not less than 2 nor more
than 3 percent, if the finding is the
2nd consecutive such finding made as a
result of such a review; or
``(iii) not less than 3 nor more
than 5 percent, if the finding is the
3rd or a subsequent consecutive such
finding made as a result of such a
review.
``(B) Disregard of noncompliance which is
of a technical nature.--For purposes of
subparagraph (A) and section 452(a)(4), a State
which is not in full compliance with the
requirements of this part shall be determined
to be in substantial compliance with such
requirements only if the Secretary determines
that any noncompliance with such requirements
is of a technical nature which does not
adversely affect the performance of the State's
program operated under part D.
``(9) Failure to comply with 5-year limit on
assistance.--If the Secretary determines that a State
has not complied with section 408(a)(1)(B) 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 5 percent of the State family assistance grant.
``(10) Failure of state receiving amounts from
contingency fund to maintain 100 percent of historic
effort.--If, at the end of any fiscal year during which
amounts from the Contingency Fund for State Welfare
Programs have been paid to a State, the Secretary finds
that the expenditures under the State program funded
under this part for the fiscal year (excluding any
amounts made available by the Federal Government) are
less than 100 percent of historic State expenditures
(as defined in paragraph (7)(B)(iii) of this
subsection), the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by the total of the
amounts so paid to the State.
``(11) Failure to maintain assistance to adult
single custodial parent who cannot obtain child care
for child under age 6.--
``(A) In general.--If the Secretary
determines that a State to which a grant is
made under section 403 for a fiscal year has
violated section 407(e)(2) during the fiscal
year, the Secretary shall reduce the grant
payable to the State under section 403(a)(1)
for the immediately succeeding fiscal year by
an amount equal to not more than 5 percent of
the State family assistance grant.
``(B) Penalty based on severity of
failure.--The Secretary shall impose reductions
under subparagraph (A) with respect to a fiscal
year based on the degree of noncompliance.
``(12) 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.
``(b) Reasonable Cause Exception.--
``(1) In general.--The Secretary may not impose a
penalty on a State under subsection (a) with respect to
a requirement if the Secretary determines that the
State has reasonable cause for failing to comply with
the requirement.
``(2) Exception.--Paragraph (1) of this subsection
shall not apply to any penalty under paragraph (7) or
(8) of subsection (a).
``(c) Corrective Compliance Plan.--
``(1) In general.--
``(A) Notification of violation.--Before
imposing a penalty against a State under
subsection (a) with respect to a violation of
this part, the Secretary shall notify the State
of the violation and allow the State the
opportunity to enter into a corrective
compliance plan in accordance with this
subsection which outlines how the State will
correct the violation and how the State will
insure continuing compliance with this part.
``(B) 60-day period to propose a corrective
compliance plan.--During the 60-day period that
begins on the date the State receives a notice
provided under subparagraph (A) with respect to
a violation, the State may submit to the
Federal Government a corrective compliance plan
to correct the violation.
``(C) Consultation about modifications.--
During the 60-day period that begins with the
date the Secretary receives a corrective
compliance plan submitted by a State in
accordance with subparagraph (B), the Secretary
may consult with the State on modifications to
the plan.
``(D) Acceptance of plan.-- A corrective
compliance plan submitted by a State in
accordance with subparagraph (B) is deemed to
be accepted by the Secretary if the Secretary
does not accept or reject the plan during 60-
day period that begins on the date the plan is
submitted.
``(2) Effect of correcting violation.--The
Secretary may not impose any penalty under subsection
(a) with respect to any violation covered by a State
corrective compliance plan accepted by the Secretary if
the State corrects the violation pursuant to the plan.
``(3) Effect of failing to correct violation.--The
Secretary shall assess some or all of a penalty imposed
on a State under subsection (a) with respect to a
violation if the State does not, in a timely manner,
correct the violation pursuant to a State corrective
compliance plan accepted by the Secretary.
``(4) Inapplicability to failure to timely repay a
federal loan fund for a state welfare program.--This
subsection shall not apply to the imposition of a
penalty against a State under subsection (a)(6).
``(d) Limitation on Amount of Penalties.--
``(1) In general.--In imposing the penalties
described in subsection (a), the Secretary shall not
reduce any quarterly payment to a State by more than 25
percent.
``(2) Carryforward of unrecovered penalties.--To
the extent that paragraph (1) of this subsection
prevents the Secretary from recovering during a fiscal
year the full amount of penalties imposed on a State
under subsection (a) of this section for a prior fiscal
year, the Secretary shall apply any remaining amount of
such penalties to the grant payable to the State under
section 403(a)(1) for the immediately succeeding fiscal
year.
``SEC. 410. APPEAL OF ADVERSE DECISION.
``(a) In General.--Within 5 days after the date the
Secretary takes any adverse action under this part with respect
to a State, the Secretary shall notify the chief executive
officer of the State of the adverse action, including any
action with respect to the State plan submitted under section
402 or the imposition of a penalty under section 409.
``(b) Administrative Review.--
``(1) In general.--Within 60 days after the date a
State receives notice under subsection (a) of an
adverse action, the State may appeal the action, in
whole or in part, to the Departmental Appeals Board
established in the Department of Health and Human
Services (in this section referred to as the `Board')
by filing an appeal with the Board.
``(2) Procedural rules.--The Board shall consider
an appeal filed by a State under paragraph (1) on the
basis of such documentation as the State may submit and
as the Board may require to support the final decision
of the Board. In deciding whether to uphold an adverse
action or any portion of such an action, the Board
shall conduct a thorough review of the issues and take
into account all relevant evidence. The Board shall
make a final determination with respect to an appeal
filed under paragraph (1) not less than 60 days after
the date the appeal is filed.
``(c) Judicial Review of Adverse Decision.--
``(1) In general.--Within 90 days after the date of
a final decision by the Board under this section with
respect to an adverse action taken against a State, the
State may obtain judicial review of the final decision
(and the findings incorporated into the final decision)
by filing an action in--
``(A) the district court of the United
States for the judicial district in which the
principal or headquarters office of the State
agency is located; or
``(B) the United States District Court for
the District of Columbia.
``(2) Procedural rules.--The district court in
which an action is filed under paragraph (1) shall
review the final decision of the Board on the record
established in the administrative proceeding, in
accordance with the standards of review prescribed by
subparagraphs (A) through (E) of section 706(2) of
title 5, United States Code. The review shall be on the
basis of the documents and supporting data submitted to
the Board.
``SEC. 411. DATA COLLECTION AND REPORTING.
``(a) Quarterly Reports by States.--
``(1) General reporting requirement.--
``(A) Contents of report.--Each eligible
State shall collect on a monthly basis, and
report to the Secretary on a quarterly basis,
the following disaggregated case record
information on the families receiving
assistance under the State program funded under
this part:
``(i) The county of residence of
the family.
``(ii) Whether a child receiving
such assistance or an adult in the
family is disabled.
``(iii) The ages of the members of
such families.
``(iv) The number of individuals in
the family, and the relation of each
family member to the youngest child in
the family.
``(v) The employment status and
earnings of the employed adult in the
family.
``(vi) The marital status of the
adults in the family, including whether
such adults have never married, are
widowed, or are divorced.
``(vii) The race and educational
status of each adult in the family.
``(viii) The race and educational
status of each child in the family.
``(ix) Whether the family received
subsidized housing, medical assistance
under the State plan approved under
title XIX, food stamps, or subsidized
child care, and if the latter 2, the
amount received.
``(x) The number of months that the
family has received each type of
assistance under the program.
``(xi) If the adults participated
in, and the number of hours per week of
participation in, the following
activities:
``(I) Education.
``(II) Subsidized private
sector employment.
``(III) Unsubsidized
employment.
``(IV) Public sector
employment, work experience, or
community service.
``(V) Job search.
``(VI) Job skills training
or on-the-job training.
``(VII) Vocational
education.
``(xii) Information necessary to
calculate participation rates under
section 407.
``(xiii) The type and amount of
assistance received under the program,
including the amount of and reason for
any reduction of assistance (including
sanctions).
``(xiv) Any amount of unearned
income received by any member of the
family.
``(xv) The citizenship of the
members of the family.
``(xvi) From a sample of closed
cases, whether the family left the
program, and if so, whether the family
left due to--
``(I) employment;
``(II) marriage;
``(III) the prohibition set
forth in section 408(a)(7);
``(IV) sanction; or
``(V) State policy.
``(B) Use of estimates.--
``(i) Authority.--A State may
comply with subparagraph (A) by
submitting an estimate which is
obtained through the use of
scientifically acceptable sampling
methods approved by the Secretary.
``(ii) Sampling and other
methods.--The Secretary shall provide
the States with such case sampling
plans and data collection procedures as
the Secretary deems necessary to
produce statistically valid estimates
of the performance of State programs
funded under this part. The Secretary
may develop and implement procedures
for verifying the quality of data
submitted by the States.
``(2) Report on use of federal funds to cover
administrative costs and overhead.--The report required
by paragraph (1) for a fiscal quarter shall include a
statement of the percentage of the funds paid to the
State under this part for the quarter that are used to
cover administrative costs or overhead.
``(3) Report on state expenditures on programs for
needy families.--The report required by paragraph (1)
for a fiscal quarter shall include a statement of the
total amount expended by the State during the quarter
on programs for needy families.
``(4) Report on noncustodial parents participating
in work activities.--The report required by paragraph
(1) for a fiscal quarter shall include the number of
noncustodial parents in the State who participated in
work activities (as defined in section 407(d)) during
the quarter.
``(5) Report on transitional services.--The report
required by paragraph (1) for a fiscal quarter shall
include the total amount expended by the State during
the quarter to provide transitional services to a
family that has ceased to receive assistance under this
part because of employment, along with a description of
such services.
``(6) Regulations.--The Secretary shall prescribe
such regulations as may be necessary to define the data
elements with respect to which reports are required by
this subsection.
``(b) Annual Reports to the Congress by the Secretary.--Not
later than 6 months after the end of fiscal year 1997, and each
fiscal year thereafter, the Secretary shall transmit to the
Congress a report describing--
``(1) whether the States are meeting--
``(A) the participation rates described in
section 407(a); and
``(B) the objectives of--
``(i) increasing employment and
earnings of needy families, and child
support collections; and
``(ii) decreasing out-of-wedlock
pregnancies and child poverty;
``(2) the demographic and financial characteristics
of families applying for assistance, families receiving
assistance, and families that become ineligible to
receive assistance;
``(3) the characteristics of each State program
funded under this part; and
``(4) the trends in employment and earnings of
needy families with minor children living at home.
``SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.
``(a) Grants for Indian Tribes.--
``(1) Tribal family assistance grant.--
``(A) In general.--For each of fiscal years
1997, 1998, 1999, 2000, 2001, and 2002, 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 1997, 1998, 1999, 2000, 2001, and
2002 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(e).
``(d) Emergency Assistance.--Nothing in this section shall
preclude an Indian tribe from seeking emergency assistance from
any Federal loan program or emergency fund.
``(e) Accountability.--Nothing in this section shall be
construed to limit the ability of the Secretary to maintain
program funding accountability consistent with--
``(1) generally accepted accounting principles; and
``(2) the requirements of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450 et seq.).
``(f) Penalties.--
``(1) Subsections (a)(1), (a)(6), and (b) of
section 409, shall apply to an Indian tribe with an
approved tribal assistance plan in the same manner as
such subsections apply to a State.
``(2) Section 409(a)(3) shall apply to an Indian
tribe with an approved tribal assistance plan by
substituting `meet minimum work participation
requirements established under section 412(c)' for
`comply with section 407(a)'.
``(g) Data Collection and Reporting.--Section 411 shall
apply to an Indian tribe with an approved tribal family
assistance plan.
``(h) Special Rule for Indian Tribes in Alaska.--
``(1) In general.--Notwithstanding any other
provision of this section, and except as provided in
paragraph (2), an Indian tribe in the State of Alaska
that receives a tribal family assistance grant under
this section shall use the grant to operate a program
in accordance with requirements comparable to the
requirements applicable to the program of the State of
Alaska funded under this part. Comparability of
programs shall be established on the basis of program
criteria developed by the Secretary in consultation
with the State of Alaska and such Indian tribes.
``(2) Waiver.--An Indian tribe described in
paragraph (1) may apply to the appropriate State
authority to receive a waiver of the requirement of
paragraph (1).
``SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.
``(a) Research.--The Secretary shall conduct research on
the benefits, effects, and costs of operating different State
programs funded under this part, including time limits relating
to eligibility for assistance. The research shall include
studies on the effects of different programs and the operation
of such programs on welfare dependency, illegitimacy, teen
pregnancy, employment rates, child well-being, and any other
area the Secretary deems appropriate. The Secretary shall also
conduct research on the costs and benefits of State activities
under section 409.
``(b) Development and Evaluation of Innovative Approaches
To Reducing Welfare Dependency and Increasing Child Well-
Being.--
``(1) In general.--The Secretary may assist States
in developing, and shall evaluate, innovative
approaches for reducing welfare dependency and
increasing the well-being of minor children living at
home with respect to recipients of assistance under
programs funded under this part. The Secretary may
provide funds for training and technical assistance to
carry out the approaches developed pursuant to this
paragraph.
``(2) Evaluations.--In performing the evaluations
under paragraph (1), the Secretary shall, to the
maximum extent feasible, use random assignment as an
evaluation methodology.
``(c) Dissemination of Information.--The Secretary shall
develop innovative methods of disseminating information on any
research, evaluations, and studies conducted under this
section, including the facilitation of the sharing of
information and best practices among States and localities
through the use of computers and other technologies.
``(d) Annual Ranking of States and Review of Most and Least
Successful Work Programs.--
``(1) Annual ranking of states.--The Secretary
shall rank annually the States to which grants are paid
under section 403 in the order of their success in
placing recipients of assistance under the State
program funded under this part into long-term private
sector jobs, reducing the overall welfare caseload,
and, when a practicable method for calculating this
information becomes available, diverting individuals
from formally applying to the State program and
receiving assistance. In ranking States under this
subsection, the Secretary shall take into account the
average number of minor children living at home in
families in the State that have incomes below the
poverty line and the amount of funding provided each
State for such families.
``(2) Annual review of most and least successful
work programs.--The Secretary shall review the programs
of the 3 States most recently ranked highest under
paragraph (1) and the 3 States most recently ranked
lowest under paragraph (1) that provide parents with
work experience, assistance in finding employment, and
other work preparation activities and support services
to enable the families of such parents to leave the
program and become self-sufficient.
``(e) Annual Ranking of States and Review of Issues
Relating to Out-of-Wedlock Births.--
``(1) Annual ranking of states.--
``(A) In general.--The Secretary shall
annually rank States to which grants are made
under section 403 based on the following
ranking factors:
``(i) Absolute out-of-wedlock
ratios.--The ratio represented by--
``(I) the total number of
out-of-wedlock births in
families receiving assistance
under the State program under
this part in the State for the
most recent fiscal year for
which information is available;
over
``(II) the total number of
births in families receiving
assistance under the State
program under this part in the
State for such year.
``(ii) Net changes in the out-of-
wedlock ratio.--The difference between
the ratio described in subparagraph
(A)(i) with respect to a State for the
most recent fiscal year for which such
information is available and the ratio
with respect to the State for the
immediately preceding year.
``(2) Annual review.--The Secretary shall review
the programs of the 5 States most recently ranked
highest under paragraph (1) and the 5 States most
recently ranked the lowest under paragraph (1).
``(f) State-Initiated Evaluations.--A State shall be
eligible to receive funding to evaluate the State program
funded under this part if--
``(1) the State submits a proposal to the Secretary
for the evaluation;
``(2) the Secretary determines that the design and
approach of the evaluation is rigorous and is likely to
yield information that is credible and will be useful
to other States, and
``(3) unless otherwise waived by the Secretary, the
State contributes to the cost of the evaluation, from
non-Federal sources, an amount equal to at least 10
percent of the cost of the evaluation.
``(g) Report on Circumstances of Certain Children and
Families.--
``(1) In general.--Beginning 3 years after the date
of the enactment of this Act, the Secretary of Health
and Human Services shall prepare and submit to the
Committees on Ways and Means and on Economic and
Educational Opportunities of the House of
Representatives and to the Committees on Finance and on
Labor and Resources of the Senate annual reports that
examine in detail the matters described in paragraph
(2) with respect to each of the following groups for
the period after such enactment:
``(A) Individuals who were children in
families that have become ineligible for
assistance under a State program funded under
this part by reason of having reached a time
limit on the provision of such assistance.
``(B) Children born after such date of
enactment to parents who, at the time of such
birth, had not attained 20 years of age.
``(C) Individuals who, after such date of
enactment, became parents before attaining 20
years of age.
``(2) Matters described.--The matters described in
this paragraph are the following:
``(A) The percentage of each group that has
dropped out of secondary school (or the
equivalent), and the percentage of each group
at each level of educational attainment.
``(B) The percentage of each group that is
employed.
``(C) The percentage of each group that has
been convicted of a crime or has been
adjudicated as a delinquent.
``(D) The rate at which the members of each
group are born, or have children, out-of-
wedlock, and the percentage of each group that
is married.
``(E) The percentage of each group that
continues to participate in State programs
funded under this part.
``(F) The percentage of each group that has
health insurance provided by a private entity
(broken down by whether the insurance is
provided through an employer or otherwise), the
percentage that has health insurance provided
by an agency of government, and the percentage
that does not have health insurance.
``(G) The average income of the families of
the members of each group.
``(H) Such other matters as the Secretary
deems appropriate.
``(h) Funding of Studies and Demonstrations.--
``(1) In general.--Out of any money in the Treasury
of the United States not otherwise appropriated, there
are appropriated $15,000,000 for each of fiscal years
1997 through 2002 for the purpose of paying--
``(A) the cost of conducting the research
described in subsection (a);
``(B) the cost of developing and evaluating
innovative approaches for reducing welfare
dependency and increasing the well-being of
minor children under subsection (b);
``(C) the Federal share of any State-
initiated study approved under subsection (f);
and
``(D) an amount determined by the Secretary
to be necessary to operate and evaluate
demonstration projects, relating to this part,
that are in effect or approved under section
1115 as of September 30, 1995, and are
continued after such date.
``(2) Allocation.--Of the amount appropriated under
paragraph (1) for a fiscal year--
``(A) 50 percent shall be allocated for the
purposes described in subparagraphs (A) and (B)
of paragraph (1), and
``(B) 50 percent shall be allocated for the
purposes described in subparagraphs (C) and (D)
of paragraph (1).
``(3) Demonstrations of innovative strategies.--The
Secretary may implement and evaluate demonstrations of
innovative and promising strategies which--
``(A) provide one-time capital funds to
establish, expand, or replicate programs;
``(B) test performance-based grant-to-loan
financing in which programs meeting performance
targets receive grants while programs not
meeting such targets repay funding on a
prorated basis; and
``(C) test strategies in multiple States
and types of communities.
``(i) Child Poverty Rates.--
``(1) In general.--Not later than 90 days after the
date of the enactment of this part, and annually
thereafter, the chief executive officer of each State
shall submit to the Secretary a statement of the child
poverty rate in the State as of such date of enactment
or the date of the most recent prior statement under
this paragraph.
``(2) Submission of corrective action plan.--Not
later than 90 days after the date a State submits a
statement under paragraph (1) which indicates that, as
a result of the amendments made by section 103 of the
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, the child poverty rate of
the State has increased by 5 percent or more since the
most recent prior statement under paragraph (1), the
State shall prepare and submit to the Secretary a
corrective action plan in accordance with paragraph
(3).
``(3) Contents of plan.--A corrective action plan
submitted under paragraph (2) shall outline that manner
in which the State will reduce the child poverty rate
in the State. The plan shall include a description of
the actions to be taken by the State under such plan.
``(4) Compliance with plan.--A State that submits a
corrective action plan that the Secretary has found
contains the information required by this subsection
shall implement the corrective action plan until the
State determines that the child poverty rate in the
State is less than the lowest child poverty rate on the
basis of which the State was required to submit the
corrective action plan.
``(5) Methodology.--The Secretary shall prescribe
regulations establishing the methodology by which a
State shall determine the child poverty rate in the
State. The methodology shall take into account factors
including the number of children who receive free or
reduced-price lunches, the number of food stamp
households, and the county-by-county estimates of
children in poverty as determined by the Census Bureau.
``SEC. 414. STUDY BY THE CENSUS BUREAU.
``(a) In General.--The Bureau of the Census shall continue
to collect data on the 1992 and 1993 panels of 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 Personal
Responsibility and Work Opportunity Reconciliation 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, and shall obtain
information about the status of children participating in such
panels.
``(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.--
``(A) In general.--Except as provided in
subparagraph (B), if any waiver granted to a
State under section 1115 of this Act or
otherwise which relates to the provision of
assistance under a State plan under this part
(as in effect on September 30, 1996) is in
effect as of the date of the enactment of the
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, the amendments made
by the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (other
than by section 103(c) of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996) 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.
``(B) Financing limitation.--
Notwithstanding any other provision of law,
beginning with fiscal year 1996, a State
operating under a waiver described in
subparagraph (A) shall be entitled to payment
under section 403 for the fiscal year, in lieu
of any other payment provided for in the
waiver.
``(2) Waivers granted subsequently.--
``(A) In general.--Except as provided in
subparagraph (B), if any waiver granted to a
State under section 1115 of this Act or
otherwise which relates to the provision of
assistance under a State plan under this part
(as in effect on September 30, 1996) is
submitted to the Secretary before the date of
the enactment of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996
and approved by the Secretary on or before July
1, 1997, and the State demonstrates to the
satisfaction of the Secretary that the waiver
will not result in Federal expenditures under
title IV of this Act (as in effect without
regard to the amendments made by the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996) that are greater
than would occur in the absence of the waiver,
the amendments made by the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 (other than by
section 103(c) of the Personal Responsibility
and Work Opportunity Reconciliation Act of
1996) shall not apply with respect to the State
before the expiration (determined without
regard to any extensions) of the waiver to the
extent the amendments made by the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 are inconsistent
with the waiver.
``(B) No effect on new work requirements.--
Notwithstanding subparagraph (A), a waiver
granted under section 1115 or otherwise which
relates to the provision of assistance under a
State program funded under this part (as in
effect on September 30, 1996) shall not affect
the applicability of section 407 to the State.
``(b) State Option To Terminate Waiver.--
``(1) In general.--A State may terminate a waiver
described in subsection (a) before the expiration of
the waiver.
``(2) Report.--A State which terminates a waiver
under paragraph (1) shall submit a report to the
Secretary summarizing the waiver and any available
information concerning the result or effect of the
waiver.
``(3) Hold harmless provision.--
``(A) In general.--Notwithstanding any
other provision of law, a State that, not later
than the date described in subparagraph (B) of
this paragraph, submits a written request to
terminate a waiver described in subsection (a)
shall be held harmless for accrued cost
neutrality liabilities incurred under the
waiver.
``(B) Date described.--The date described
in this subparagraph is 90 days following the
adjournment of the first regular session of the
State legislature that begins after the date of
the enactment of the Personal Responsibility
and Work Opportunity Reconciliation 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. ADMINISTRATION.
``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, and the Secretary shall reduce the Federal
workforce within the Department of Health and Human Services by
an amount equal to the sum of 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 the Personal Responsibility and Work
Opportunity Act of 1996 and the amendments made by such Act,
and by 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 any direct spending program, or any program
funded through discretionary spending, that has been converted
into a block grant program under the Personal Responsibility
and Work Opportunity Act of 1996 and the amendments made by
such Act, as such amount relates to the total amount
appropriated for use by such Department, and, notwithstanding
any other provision of law, the Secretary 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 by
245 full-time equivalent positions related to the program
converted into a block grant under the amendment made by
section 2103 of the Personal Responsibility and Work
Opportunity Act of 1996, and by 60 full-time equivalent
managerial positions in the Department.
``SEC. 417. LIMITATION ON FEDERAL AUTHORITY.
``No officer or employee of the Federal Government may
regulate the conduct of States under this part or enforce any
provision of this part, except to the extent expressly provided
in this part.''; and
(2) by inserting after such section 418 the
following:
``SEC. 419. DEFINITIONS.
``As used in this part:
``(1) Adult.--The term `adult' means an individual
who is not a minor child.
``(2) Minor child.--The term `minor child' means an
individual who--
``(A) has not attained 18 years of age; or
``(B) has not attained 19 years of age and
is a full-time student in a secondary school
(or in the equivalent level of vocational or
technical training).
``(3) Fiscal year.--The term `fiscal year' means
any 12-month period ending on September 30 of a
calendar year.
``(4) Indian, indian tribe, and tribal
organization.--
``(A) In general.--Except as provided in
subparagraph (B), the terms `Indian', `Indian
tribe', and `tribal organization' have the
meaning given such terms by section 4 of the
Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b).
``(B) Special rule for indian tribes in
alaska.--The term `Indian tribe' means, with
respect to the State of Alaska, only the
Metlakatla Indian Community of the Annette
Islands Reserve and the following Alaska Native
regional nonprofit corporations:
``(i) Arctic Slope Native
Association.
``(ii) Kawerak, Inc.
``(iii) Maniilaq Association.
``(iv) Association of Village
Council Presidents.
``(v) Tanana Chiefs Conference.
``(vi) Cook Inlet Tribal Council.
``(vii) Bristol Bay Native
Association.
``(viii) Aleutian and Pribilof
Island Association.
``(ix) Chugachmuit.
``(x) Tlingit Haida Central
Council.
``(xi) Kodiak Area Native
Association.
``(xii) Copper River Native
Association.
``(5) State.--Except as otherwise specifically
provided, the term `State' means the 50 States of the
United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa.''.
(b) Grants to Outlying Areas.--Section 1108 (42 U.S.C.
1308) is amended--
(1) by striking subsections (d) and (e);
(2) by redesignating subsection (c) as subsection
(f); and
(3) 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 E of title
IV, and under subsection (b) of this section, for payment to
any territory for a fiscal year shall not exceed the ceiling
amount for the territory for the fiscal year.
``(b) Entitlement to Matching Grant.--
``(1) In general.--Each territory shall be entitled
to receive from the Secretary for each fiscal year a
grant in an amount equal to 75 percent of the amount
(if any) by which--
``(A) the total expenditures of the
territory during the fiscal year under the
territory programs funded under parts A and E
of title IV; exceeds
``(B) the sum of--
``(i) the amount of the family
assistance grant payable to the
territory without regard to section
409; and
``(ii) the total amount expended by
the territory during fiscal year 1995
pursuant to parts A and F of title IV
(as so in effect), other than for child
care.
``(2) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal years
1997 through 2002, such sums as are necessary for
grants under this paragraph.
``(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, reduced for the fiscal year in accordance
with subsection (e), and reduced by the amount of any
penalty imposed on the territory under any provision of
law specified in subsection (a) during the fiscal year.
``(3) Family assistance grant.--The term `family
assistance grant' has the meaning given such term by
section 403(a)(1)(B).
``(4) Mandatory ceiling amount.--The term
`mandatory ceiling amount' means--
``(A) $107,255,000 with respect to Puerto
Rico;
``(B) $4,686,000 with respect to Guam;
``(C) $3,554,000 with respect to the Virgin
Islands; and
``(D) $1,000,000 with respect to American
Samoa.
``(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) Authority To Transfer Funds to Certain Programs.--A
territory to which an amount is paid under subsection (b) of
this section may use the amount in accordance with section
404(d).
``(e) 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).''.
(c) Elimination of Child Care Programs Under the Social
Security Act.--
(1) AFDC and transitional child care programs.--
Section 402 (42 U.S.C. 602) is amended by striking
subsection (g).
(2) At-risk child care program.--
(A) Authorization.--Section 402 (42 U.S.C.
602) is amended by striking subsection (i).
(B) Funding provisions.--Section 403 (42
U.S.C. 603) is amended by striking subsection
(n).
SEC. 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(a) of this Act).
(B) Any other program established or
modified under title I or II 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.
(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)(7)(C) of such Act.
(b) Report.--Not later than September 30, 1998, the
Secretary shall submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives a report containing the findings of the study
required by subsection (a).
SEC. 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) Amendments to Part B of Title IV.--Section 422(b)(2)
(42 U.S.C. 622(b)(2)) is amended--
(1) by striking ``plan approved under part A of
this title'' and inserting ``program funded under part
A''; and
(2) by striking ``part E of this title'' and
inserting ``under the State plan approved under part
E''.
(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)(3) or under section''.
(3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F))
is amended--
(A) by striking ``aid under a State plan
approved'' and inserting ``assistance under a
State program funded''; and
(B) by striking ``in accordance with the
standards referred to in section
402(a)(26)(B)(ii)'' and inserting ``by the
State''.
(4) Section 452(b) (42 U.S.C. 652(b)) is amended in
the first sentence by striking ``aid under the State
plan approved under part A'' and inserting ``assistance
under the State program funded under part A''.
(5) Section 452(d)(3)(B)(i) (42 U.S.C.
652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and
inserting ``1115(b)''.
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.
652(g)(2)(A)(ii)(I)) is amended by striking ``aid is
being paid under the State's plan approved under part A
or E'' and inserting ``assistance is being provided
under the State program funded under part A''.
(7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A))
is amended in the matter following clause (iii) by
striking ``aid was being paid under the State's plan
approved under part A or E'' and inserting ``assistance
was being provided under the State program funded under
part A''.
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended in the matter following subparagraph (B)--
(A) by striking ``who is a dependent
child'' and inserting ``with respect to whom
assistance is being provided under the State
program funded under part A'';
(B) by inserting ``by the State'' after
``found''; and
(C) by striking ``to have good cause for
refusing to cooperate under section
402(a)(26)'' and inserting ``to qualify for a
good cause or other exception to cooperation
pursuant to section 454(29)''.
(9) Section 452(h) (42 U.S.C. 652(h)) is amended by
striking ``under section 402(a)(26)'' and inserting
``pursuant to section 408(a)(3)''.
(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)(3)''; and
(B) by striking ``; except that this
paragraph shall not apply to such payments for
any month following the first month in which
the amount collected is sufficient to make such
family ineligible for assistance under the
State plan approved under part A;'' and
inserting a comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is
amended by striking ``aid under a State plan approved''
and inserting ``assistance under a State program
funded''.
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is
amended by striking ``under section 402(a)(26)''.
(14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B))
is amended by striking ``402(a)(26)'' and inserting
``408(a)(3)''.
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is
amended by striking ``aid'' and inserting ``assistance
under a State program funded''.
(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 June 1, 1995)'' after ``part A''.
(2) Section 471(a)(17) (42 U.S.C. 671(a)(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 is deemed to be a dependent child as defined in section
406 (as in effect as of June 1, 1995) and 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 is deemed to be a minor child in a
needy family under a State program funded under part A of this
title and is 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) is deemed to be a dependent child as
defined in section 406 (as in effect as of June 1, 1995) and
deemed to be a recipient of aid to families with dependent
children under part 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) is deemed to be a minor child in a needy
family under a State program funded under part A of this title
and 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 1109 (42 U.S.C. 1309) is amended by
striking ``or part A of title IV,''.
(2) Section 1115 (42 U.S.C. 1315) is amended--
(A) in subsection (a)(2)--
(i) by inserting ``(A)'' after
``(2)'';
(ii) by striking ``403,'';
(iii) by striking the period at the
end and inserting ``, and''; and
(iv) by adding at the end the
following new subparagraph:
``(B) costs of such project which would not
otherwise be a permissible use of funds under part A of
title IV and which are not included as part of the
costs of projects under section 1110, shall to the
extent and for the period prescribed by the Secretary,
be regarded as a permissible use of funds under such
part.'';
(B) in subsection (c)(3), by striking ``the
program of aid to families with dependent
children'' and inserting ``part A of such
title''; and
(C) by striking subsection (b) and
redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.
(3) Section 1116 (42 U.S.C. 1316) is amended--
(A) in each of subsections (a)(1), (b), and
(d), by striking ``or part A of title IV,'';
and
(B) in subsection (a)(3), by striking
``404,''.
(4) Section 1118 (42 U.S.C. 1318) is amended--
(A) by striking ``403(a),'';
(B) by striking ``and part A of title
IV,''; and
(C) by striking ``, and shall, in the case
of American Samoa, mean 75 per centum with
respect to part A of title IV''.
(5) Section 1119 (42 U.S.C. 1319) is amended--
(A) by striking ``or part A of title IV'';
and
(B) by striking ``403(a),''.
(6) Section 1133(a) (42 U.S.C. 1320b-3(a)) is
amended by striking ``or part A of title IV,''.
(7) Section 1136 (42 U.S.C. 1320b-6) is repealed.
(8) Section 1137 (42 U.S.C. 1320b-7) is amended--
(A) in subsection (b), by striking
paragraph (1) and inserting the following:
``(1) any State program funded under part A of
title IV of this Act;''; and
(B) in subsection (d)(1)(B)--
(i) by striking ``In this
subsection--'' and all that follows
through ``(ii) in'' and inserting ``In
this subsection, in'';
(ii) by redesignating subclauses
(I), (II), and (III) as clauses (i),
(ii), and (iii); and
(iii) by moving such redesignated
material 2 ems to the left.
(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(f)''.
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 the date of enactment of this
subparagraph. 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 the day before such
date.'';
(e) Section 20 of such Act (7 U.S.C. 2029) is amended--
(1) in subsection (a)(2)(B) by striking
``operating--'' and all that follows through ``(ii) any
other'' and inserting ``operating any''; and
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``(b)(1) A
household'' and inserting ``(b) A
household''; and
(ii) in subparagraph (B), by
striking ``training program'' and
inserting ``activity'';
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A)
through (F) as paragraphs (1) through (6),
respectively.
(f) Section 5(h)(1) of the Agriculture and Consumer
Protection Act of 1973 (Public Law 93-186; 7 U.S.C. 612c note)
is amended by striking ``the program for aid to families with
dependent children'' and inserting ``the State program
funded''.
(g) Section 9 of the National School Lunch Act (42 U.S.C.
1758) is amended--
(1) in subsection (b)--
(A) in paragraph (2)(C)(ii)(II)--
(i) by striking ``program for aid
to families with dependent children''
and inserting ``State program funded'';
and
(ii) by inserting before the period
at the end the following: ``that the
Secretary determines complies with
standards established by the Secretary
that ensure that the standards under
the State program are comparable to or
more restrictive than those in effect
on June 1, 1995''; and
(B) in paragraph (6)--
(i) in subparagraph (A)(ii)--
(I) by striking ``an AFDC
assistance unit (under the aid
to families with dependent
children program authorized''
and inserting ``a family (under
the State program funded''; and
(II) by striking ``, in a
State'' and all that follows
through ``9902(2)))'' and
inserting ``that the Secretary
determines complies with
standards established by the
Secretary that ensure that the
standards under the State
program are comparable to or
more restrictive than those in
effect on June 1, 1995''; and
(ii) in subparagraph (B), by
striking ``aid to families with
dependent children'' and inserting
``assistance under the State program
funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et
seq.) that the Secretary determines
complies with standards established by
the Secretary that ensure that the
standards under the State program are
comparable to or more restrictive than
those in effect on June 1, 1995''; and
(2) in subsection (d)(2)(C)--
(A) by striking ``program for aid to
families with dependent children'' and
inserting ``State program funded''; and
(B) by inserting before the period at the
end the following: ``that the Secretary
determines complies with standards established
by the Secretary that ensure that the standards
under the State program are comparable to or
more restrictive than those in effect on June
1, 1995''.
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
(1) by striking ``program for aid to families with
dependent children established'' and inserting ``State
program funded''; and
(2) by inserting before the semicolon the
following: ``that the Secretary determines complies
with standards established by the Secretary that ensure
that the standards under the State program are
comparable to or more restrictive than those in effect
on June 1, 1995''.
SEC. 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) The 4th proviso of chapter VII of title I of Public Law
99-88 (25 U.S.C. 13d-1) is amended to read as follows:
``Provided further, That general assistance payments made by
the Bureau of Indian Affairs shall be made--
``(1) after April 29, 1985, and before October 1,
1995, on the basis of Aid to Families with Dependent
Children (AFDC) standards of need; and
``(2) on and after October 1, 1995, on the basis of
standards of need established under the State program
funded under part A of title IV of the Social Security
Act,
except that where a State ratably reduces its AFDC or State
program payments, the Bureau shall reduce general assistance
payments in such State by the same percentage as the State has
reduced the AFDC or State program payment.''.
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.)
is amended--
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by
striking all that follows ``agency as'' and inserting
``being eligible for financial assistance under part A
of title IV of the Social Security Act and as having
continually received such financial assistance during
the 90-day period which immediately precedes the date
on which such individual is hired by the employer.'';
(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)),
by striking ``eligibility for aid or services,'' and
all that follows through ``children approved'' and
inserting ``eligibility for assistance, or the amount
of such assistance, under a State program funded'';
(3) in section 6103(l)(7)(D)(i) (26 U.S.C.
6103(l)(7)(D)(i)), by striking ``aid to families with
dependent children provided under a State plan
approved'' and inserting ``a State program funded'';
(4) in section 6103(l)(10) (26 U.S.C.
6103(l)(10))--
(A) by striking ``(c) or (d)'' each place
it appears and inserting ``(c), (d), or (e)'';
and
(B) by adding at the end of subparagraph
(B) the following new sentence: ``Any return
information disclosed with respect to section
6402(e) shall only be disclosed to officers and
employees of the State agency requesting such
information.'';
(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)),
in the matter preceding subparagraph (A)--
(A) by striking ``(5), (10)'' and inserting
``(5)''; and
(B) by striking ``(9), or (12)'' and
inserting ``(9), (10), or (12)'';
(6) in section 6334(a)(11)(A) (26 U.S.C.
6334(a)(11)(A)), by striking ``(relating to aid to
families with dependent children)'';
(7) in section 6402 (26 U.S.C. 6402)--
(A) in subsection (a), by striking ``(c)
and (d)'' and inserting ``(c), (d), and (e)'';
(B) by redesignating subsections (e)
through (i) as subsections (f) through (j),
respectively; and
(C) by inserting after subsection (d) the
following:
``(e) Collection of Overpayments Under Title IV-A of the
Social Security Act.--The amount of any overpayment to be
refunded to the person making the overpayment shall be reduced
(after reductions pursuant to subsections (c) and (d), but
before a credit against future liability for an internal
revenue tax) in accordance with section 405(e) of the Social
Security Act (concerning recovery of overpayments to
individuals under State plans approved under part A of title IV
of such Act).''; and
(8) in section 7523(b)(3)(C) (26 U.S.C.
7523(b)(3)(C)), by striking ``aid to families with
dependent children'' and inserting ``assistance under a
State program funded under part A of title IV of the
Social Security Act''.
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C.
49b(b)) is amended by striking ``State plan approved under part
A of title IV'' and inserting ``State program funded under part
A of title IV''.
(n) The Job Training Partnership Act (29 U.S.C. 1501 et
seq.) is amended--
(1) in section 4(29)(A)(i) (29 U.S.C.
1503(29)(A)(i)), by striking ``(42 U.S.C. 601 et
seq.)'';
(2) in section 106(b)(6)(C) (29 U.S.C.
1516(b)(6)(C)), by striking ``State aid to families
with dependent children records,'' and inserting
``records collected under the State program funded
under part A of title IV of the Social Security Act,'';
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--
(A) by striking ``the JOBS program'' and
inserting ``the work activities required under
title IV of the Social Security Act''; and
(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))--
(A) in paragraph (1)(E), by repealing
clause (vi); and
(B) in paragraph (2)(D), by repealing
clause (v);
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by
striking ``, including recipients under the JOBS
program'';
(6) in subparagraphs (A) and (B) of section
204(a)(1) (29 U.S.C. 1604(a)(1) (A) and (B)), by
striking ``(such as the JOBS program)'' each place it
appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by
striking paragraph (4) and inserting the following:
``(4) the portions of title IV of the Social
Security Act relating to work activities;'';
(8) in section 253 (29 U.S.C. 1632)--
(A) in subsection (b)(2), by repealing
subparagraph (C); and
(B) in paragraphs (1)(B) and (2)(B) of
subsection (c), by striking ``the JOBS program
or'' each place it appears;
(9) in section 264 (29 U.S.C. 1644)--
(A) in subparagraphs (A) and (B) of
subsection (b)(1), by striking ``(such as the
JOBS program)'' each place it appears; and
(B) in subparagraphs (A) and (B) of
subsection (d)(3), by striking ``and the JOBS
program'' each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by
striking paragraph (6) and inserting the following:
``(6) the portion of title IV of the Social
Security Act relating to work activities;'';
(11) in the second sentence of section 429(e) (29
U.S.C. 1699(e)), by striking ``and shall be in an
amount that does not exceed the maximum amount that may
be provided by the State pursuant to section
402(g)(1)(C) of the Social Security Act (42 U.S.C.
602(g)(1)(C))'';
(12) in section 454(c) (29 U.S.C. 1734(c)), by
striking ``JOBS and'';
(13) in section 455(b) (29 U.S.C. 1735(b)), by
striking ``the JOBS program,'';
(14) in section 501(1) (29 U.S.C. 1791(1)), by
striking ``aid to families with dependent children
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.)'' and inserting ``assistance under
the State program funded under part A of title IV of
the Social Security Act'';
(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)),
by striking ``aid to families with dependent children''
and inserting ``assistance under the State program
funded'';
(16) in section 508(a)(2)(A) (29 U.S.C.
1791g(a)(2)(A)), by striking ``aid to families with
dependent children'' and inserting ``assistance under
the State program funded''; and
(17) in section 701(b)(2)(A) (29 U.S.C.
1792(b)(2)(A))--
(A) in clause (v), by striking the
semicolon and inserting ``; and''; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United States
Code, is amended to read as follows:
``(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 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. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN LOW-INCOME
INDIVIDUALS PROGRAM.
Section 505 of the Family Support Act of 1988 (42 U.S.C.
1315 note) is amended--
(1) in the heading, by striking ``demonstration'';
(2) by striking ``demonstration'' each place such
term appears;
(3) in subsection (a), by striking ``in each of
fiscal years'' and all that follows through ``10'' and
inserting ``shall enter into agreements with'';
(4) in subsection (b)(3), by striking ``aid to
families with dependent children under part A of title
IV of the Social Security Act'' and inserting
``assistance under the program funded part A of title
IV of the Social Security Act of the State in which the
individual resides'';
(5) in subsection (c)--
(A) in paragraph (1)(C), by striking ``aid
to families with dependent children under title
IV of the Social Security Act'' and inserting
``assistance under a State program funded part
A of title IV of the Social Security Act'';
(B) in paragraph (2), by striking ``aid to
families with dependent children under title IV
of such Act'' and inserting ``assistance under
a State program funded part A of title IV of
the Social Security Act'';
(6) in subsection (d), by striking ``job
opportunities and basic skills training program (as
provided for under title IV of the Social Security
Act)'' and inserting ``the State program funded under
part A of title IV of the Social Security Act''; and
(7) by striking subsections (e) through (g) and
inserting the following:
``(e) Authorization of Appropriations.--For the purpose of
conducting projects under this section, there is authorized to
be appropriated an amount not to exceed $25,000,000 for any
fiscal year.''.
SEC. 113. 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. 114. ASSURING MEDICAID COVERAGE FOR LOW-INCOME FAMILIES.
(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:
``assuring coverage for certain low-income families
``Sec. 1931. (a) References to Title IV-A are References to
Pre-Welfare-Reform Provisions.--Subject to the succeeding
provisions of this section, with respect to a State any
reference in this title (or any 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 income and resource standards and
income and resource methodologies under such part or plan,
shall be considered a reference to such a provision or plan as
in effect as of July 16, 1996, with respect to the State.
``(b) Application of Pre-Welfare-Reform Eligibility
Criteria.--
``(1) In general.--For purposes of this title,
subject to paragraphs (2) and (3), in determining
eligibility for medical assistance--
``(A) an individual shall be treated as
receiving aid or assistance under a State plan
approved under part A of title IV 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 section 406 and section
407(a),
as in effect as of July 16, 1996; and
``(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) State option.--For purposes of applying this
section, a State--
``(A) may 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;
``(B) may increase income or resource
standards under the State plan referred to in
paragraph (1) over a period (beginning after
July 16, 1996) by a percentage that does not
exceed the percentage increase in the consumer
price index for all urban consumers (all items;
U.S. city average) over such period; and
``(C) may use income and resource
methodologies that are less restrictive than
the methodologies used under the State plan
under such part as of July 16, 1996.
``(3) Option to terminate medical assistance for
failure to meet work requirement.--
``(A) Individuals receiving cash assistance
under tanf.--In the case of an individual who--
``(i) is receiving cash assistance
under a State program funded under part
A of title IV,
``(ii) is eligible for medical
assistance under this title on a basis
not related to section 1902(l), and
``(iii) has the cash assistance
under such program terminated pursuant
to section 407(e)(1)(B) (as in effect
on or after the welfare reform
effective date) because of refusing to
work,
the State may terminate such individual's
eligibility for medical assistance under this
title until such time as there no longer is a
basis for the termination of such cash
assistance because of such refusal.
``(B) Exception for children.--Subparagraph
(A) shall not be construed as permitting a
State to terminate medical assistance for a
minor child who is not the head of a household
receiving assistance under a State program
funded under part A of title IV.
``(c) Treatment for Purposes of Transitional Coverage
Provisions.--
``(1) Transition in the case of child support
collections.--The provisions of section 406(h) (as in
effect on July 16, 1996) shall apply, in relation to
this title, with respect to individuals (and families
composed of individuals) who are described in
subsection (b)(1)(A), in the same manner as they
applied before such date with respect to individuals
who became ineligible for aid to families with
dependent children as a result (wholly or partly) of
the collection of child or spousal support under part D
of title IV.
``(2) Transition in the case of earnings from
employment.--For continued medical assistance in the
case of individuals (and families composed of
individuals) described in subsection (b)(1)(A) who
would otherwise become ineligible because of hours or
income from employment, see sections 1925 and
1902(e)(1).
``(d) Waivers.--In the case of a waiver of a provision of
part A of title IV in effect with respect to a State as of July
16, 1996, or which is submitted to the Secretary before the
date of the enactment of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 and approved by the
Secretary on or before July 1, 1997, 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.
``(e) State Option to Use 1 Application Form.--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 the welfare reform effective date) and
for medical assistance under this title.
``(f) Additional Rules of Construction.--
``(1) 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 the welfare reform
effective date) or to the State plan under this title.
``(2) Any reference in section 1902(a)(55) to a
State plan approved under part A of title IV shall be
deemed a reference to a State program funded under such
part.
``(3) In applying section 1903(f), the applicable
income limitation otherwise determined shall be subject
to increase in the same manner as income or resource
standards of a State may be increased under subsection
(b)(2)(B).
``(g) Relation to Other Provisions.--The provisions of this
section shall apply notwithstanding any other provision of this
Act.
``(h) Transitional Increased Federal Matching Rate for
Increased Administrative Costs.--
``(1) In general.--Subject to the succeeding
provisions of this subsection, the Secretary shall
provide that with respect to administrative
expenditures described in paragraph (2) the per centum
specified in section 1903(a)(7) shall be increased to
such percentage as the Secretary specifies.
``(2) Administrative expenditures described.--The
administrative expenditures described in this paragraph
are expenditures described in section 1903(a)(7) that a
State demonstrates to the satisfaction of the Secretary
are attributable to administrative costs of eligibility
determinations that (but for the enactment of this
section) would not be incurred.
``(3) Limitation.--The total amount of additional
Federal funds that are expended as a result of the
application of this subsection for the period beginning
with fiscal year 1997 and ending with fiscal year 2000
shall not exceed $500,000,000. In applying this
paragraph, the Secretary shall ensure the equitable
distribution of additional funds among the States.
``(4) Time limitation.--This subsection shall only
apply with respect to a State for expenditures incurred
during the first 12 calendar quarters in which the
State program funded under part A of title IV (as in
effect on and after the welfare reform effective date)
is in effect.
``(i) Welfare Reform Effective Date.--In this section, the
term `welfare reform effective date' means the effective date,
with respect to a State, of title I of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(as specified in section 116 of such Act).''.
(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) Extension of Work Transition Provisions.--Sections
1902(e)(1)(B) and 1925(f) (42 U.S.C. 1396a(e)(1)(B), 1396r-
6(f)) are each amended by striking ``1998'' and inserting
``2001''.
(d) 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).
SEC. 115. DENIAL OF ASSISTANCE AND BENEFITS FOR CERTAIN DRUG-RELATED
CONVICTIONS.
(a) In General.--An individual convicted (under Federal or
State law) of any offense which is classified as a felony by
the law of the jurisdiction involved and which has as an
element the possession, use, or distribution of a controlled
substance (as defined in section 102(6) of the Controlled
Substances Act (21 U.S.C. 802(6))) shall not be eligible for--
(1) assistance under any State program funded under
part A of title IV of the Social Security Act, or
(2) benefits under the food stamp program (as
defined in section 3(h) of the Food Stamp Act of 1977)
or any State program carried out under the Food Stamp
Act of 1977.
(b) Effects on Assistance and Benefits for Others.--
(1) Program of temporary assistance for needy
families.--The amount of assistance otherwise required
to be provided under a State program funded under part
A of title IV of the Social Security Act to the family
members of an individual to whom subsection (a) applies
shall be reduced by the amount which would have
otherwise been made available to the individual under
such part.
(2) Benefits under the food stamp act of 1977.--The
amount of benefits otherwise required to be provided to
a household under the food stamp program (as defined in
section 3(h) of the Food Stamp Act of 1977), or any
State program carried out under the Food Stamp Act of
1977, shall be determined by considering the individual
to whom subsection (a) applies not to be a member of
such household, except that the income and resources of
the individual shall be considered to be income and
resources of the household.
(c) Enforcement.--A State that has not exercised its
authority under subsection (d)(1)(A) shall require each
individual applying for assistance or benefits referred to in
subsection (a), during the application process, to state, in
writing, whether the individual, or any member of the household
of the individual, has been convicted of a crime described in
subsection (a).
(d) Limitations.--
(1) State elections.--
(A) Opt out.--A State may, by specific
reference in a law enacted after the date of
the enactment of this Act, exempt any or all
individuals domiciled in the State from the
application of subsection (a).
(B) Limit period of prohibition.--A State
may, by law enacted after the date of the
enactment of this Act, limit the period for
which subsection (a) shall apply to any or all
individuals domiciled in the State.
(2) Inapplicability to convictions occurring on or
before enactment.--Subsection (a) shall not apply to
convictions occurring on or before the date of the
enactment of this Act.
(e) Definitions of State.--For purposes of this section,
the term ``State'' has the meaning given it--
(1) in section 419(5) of the Social Security Act,
when referring to assistance provided under a State
program funded under part A of title IV of the Social
Security Act, and
(2) in section 3(m) of the Food Stamp Act of 1977,
when referring to the food stamp program (as defined in
section 3(h) of the Food Stamp Act of 1977) or any
State program carried out under the Food Stamp Act of
1977.
(f) Rule of Interpretation.--Nothing in this section shall
be construed to deny the following Federal benefits:
(1) Emergency medical services under title XIX 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 communicable diseases if the Secretary of
Health and Human Services determines that it is
necessary to prevent the spread of such disease.
(4) Prenatal care.
(5) Job training programs.
(6) Drug treatment programs.
SEC. 116. EFFECTIVE DATE; TRANSITION RULE.
(a) Effective Dates.--
(1) In general.--Except as otherwise provided in
this title, this title and the amendments made by this
title shall take effect on July 1, 1997.
(2) Delayed effective date for certain
provisions.--Notwithstanding any other provision of
this section, paragraphs (2), (3), (4), (5), (8), and
(10) of section 409(a) and section 411(a) of the Social
Security Act (as added by the amendments made by
section 103(a) of this Act) shall not take effect with
respect to a State until, and shall apply only with
respect to conduct that occurs on or after, the later
of--
(A) July 1, 1997; or
(B) the date that is 6 months after the
date the Secretary of Health and Human Services
receives from the State a plan described in
section 402(a) of the Social Security Act (as
added by such amendment).
(3) Grants to outlying areas.--The amendments made
by section 103(b) shall take effect on October 1, 1996.
(4) Elimination of child care programs.--The
amendments made by section 103(c) shall take effect on
October 1, 1996.
(5) Definitions applicable to new child care
entitlement.--Sections 403(a)(1)(C), 403(a)(1)(D), and
419(4) of the Social Security Act, as added by the
amendments made by section 103(a) of this Act, shall
take effect on October 1, 1996.
(b) Transition Rules.--Effective on the date of the
enactment of this Act:
(1) State option to accelerate effective date.--
(A) In general.--If the Secretary of Health
and Human Services receives from a State a plan
described in section 402(a) of the Social
Security Act (as added by the amendment made by
section 103(a)(1) of this Act), then--
(i) on and after the date of such
receipt--
(I) except as provided in
clause (ii), this title and the
amendments made by this title
(other than by section 103(c)
of this Act) shall apply with
respect to the State; and
(II) the State shall be
considered an eligible State
for purposes of part A of title
IV of the Social Security Act
(as in effect pursuant to the
amendments made by such section
103(a)); and
(ii) during the period that begins
on the date of such receipt and ends on
June 30, 1997, there shall remain in
effect with respect to the State--
(I) section 403(h) of the
Social Security Act (as in
effect on September 30, 1995);
and
(II) all State reporting
requirements under parts A and
F of title IV of the Social
Security Act (as in effect on
September 30, 1995), modified
by the Secretary as
appropriate, taking into
account the State program under
part A of title IV of the
Social Security Act (as in
effect pursuant to the
amendments made by such section
103(a)).
(B) Limitations on federal obligations.--
(i) Under afdc program.--The total
obligations of the Federal Government
to a State under part A of title IV of
the Social Security Act (as in effect
on September 30, 1995) with respect to
expenditures in fiscal year 1997 shall
not exceed an amount equal to the State
family assistance grant.
(ii) Under temporary family
assistance program.--Notwithstanding
section 403(a)(1) of the Social
Security Act (as in effect pursuant to
the amendments made by section 103(a)
of this Act), the total obligations of
the Federal Government to a State under
such section 403(a)(1)--
(I) for fiscal year 1996,
shall be an amount equal to--
(aa) the State
family assistance
grant; multiplied by
(bb) \1/366\ of the
number of days during
the period that begins
on the date the
Secretary of Health and
Human Services first
receives from the State
a plan described in
section 402(a) of the
Social Security Act (as
added by the amendment
made by section
103(a)(1) of this Act)
and ends on September
30, 1996; and
(II) for fiscal year 1997,
shall be an amount equal to the
lesser of--
(aa) the amount (if
any) by which the State
family assistance grant
exceeds the total
obligations of the
Federal Government to
the State under part A
of title IV of the
Social Security Act (as
in effect on September
30, 1995) with respect
to expenditures in
fiscal year 1997; or
(bb) the State
family assistance
grant, multiplied by
\1/365\ of the number
of days during the
period that begins on
October 1, 1996, or the
date the Secretary of
Health and Human
Services first receives
from the State a plan
described in section
402(a) of the Social
Security Act (as added
by the amendment made
by section 103(a)(1) of
this Act), whichever is
later, and ends on
September 30, 1997.
(iii) Child care obligations
excluded in determining federal afdc
obligations.--As used in this
subparagraph, the term ``obligations of
the Federal Government to the State
under part A of title IV of the Social
Security Act'' does not include any
obligation of the Federal Government
with respect to child care expenditures
by the State.
(C) Submission of state plan for fiscal
year 1996 or 1997 deemed acceptance of grant
limitations and formula and termination of afdc
entitlement.--The submission of a plan by a
State pursuant to subparagraph (A) is deemed to
constitute--
(i) the State's acceptance of the
grant reductions under subparagraph (B)
(including the formula for computing
the amount of the reduction); and
(ii) the termination of any
entitlement of any individual or family
to benefits or services under the State
AFDC program.
(D) Definitions.--As used in this
paragraph:
(i) State afdc program.--The term
``State AFDC program'' means the State
program under parts A and F of title IV
of the Social Security Act (as in
effect on September 30, 1995).
(ii) State.--The term ``State''
means the 50 States and the District of
Columbia.
(iii) State family assistance
grant.--The term ``State family
assistance grant'' means the State
family assistance grant (as defined in
section 403(a)(1)(B) of the Social
Security Act, as added by the amendment
made by section 103(a)(1) of this Act).
(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 on
September 30, 1995) with respect to assistance or
services provided on or before September 30, 1995,
shall be treated as claims with respect to expenditures
during fiscal year 1995 for purposes of reimbursement
even if payment was made by a State on or after October
1, 1995. Each State shall complete the filing of all
claims under the State plan (as so in effect) within 2
years after the date of the enactment of this Act. The
head of each Federal department shall--
(A) use the single audit procedure to
review and resolve any claims in connection
with the close out of programs under such State
plans; and
(B) reimburse States for any payments made
for assistance or services provided during a
prior fiscal year from funds for fiscal year
1995, rather than from funds authorized by this
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(a)(1)
of this Act).
(c) Termination of Entitlement Under AFDC Program.--
Effective October 1, 1996, no individual or family shall be
entitled to any benefits or services under any State plan
approved under part A or F of title IV of the Social Security
Act (as in effect on September 30, 1995).
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 1611(e) (42 U.S.C. 1382(e)), as
amended by section 105(b)(4)(A) of the Contract with America
Advancement Act of 1996, is amended by redesignating paragraph
(5) as paragraph (3) and by adding at the end the following new
paragraph:
``(4)(A) No person shall be considered an eligible
individual or eligible spouse for purposes of this title during
the 10-year period that begins on the date the person is
convicted in Federal or State court of having made a fraudulent
statement or representation with respect to the place of
residence of the person in order to receive assistance
simultaneously from 2 or more States under programs that are
funded under title IV, title XIX, or the Food Stamp Act of
1977, or benefits in 2 or more States under the supplemental
security income program under this title.
``(B) As soon as practicable after the conviction of a
person in a Federal or State court as described in subparagraph
(A), an official of such court shall notify the Commissioner of
such conviction.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 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)), as
amended by section 201(a) of this Act, is amended by adding at
the end the following new paragraph:
``(5) No person shall be considered an eligible individual
or eligible spouse for purposes of this title with respect to
any month if during such month the person is--
``(A) fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the person flees, for a crime, or an
attempt to commit a crime, which is a felony under the
laws of the place from which the person flees, or
which, in the case of the State of New Jersey, is a
high misdemeanor under the laws of such State; or
``(B) violating a condition of probation or parole
imposed under Federal or State law.''.
(b) Exchange of Information.--Section 1611(e) (42 U.S.C.
1382(e)), as amended by section 201(a) of this Act and
subsection (a) of this section, is amended by adding at the end
the following new paragraph:
``(6) Notwithstanding any other provision of law (other
than section 6103 of the Internal Revenue Code of 1986), the
Commissioner shall furnish any Federal, State, or local law
enforcement officer, upon the written request of the officer,
with the current address, Social Security number, and
photograph (if applicable) of any recipient of benefits under
this title, if the officer furnishes the Commissioner with the
name of the recipient, and other identifying information as
reasonably required by the Commissioner to establish the unique
identity of the recipient, and notifies the Commissioner that--
``(A) the recipient--
``(i) is described in subparagraph (A) or
(B) of paragraph (5); and
``(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. TREATMENT OF PRISONERS.
(a) Implementation of Prohibition Against Payment of
Benefits to Prisoners.--
(1) In general.--Section 1611(e)(1) (42 U.S.C.
1382(e)(1)) is amended by adding at the end the
following new subparagraph:
``(I)(i) The Commissioner shall enter into an agreement,
with any interested State or local institution described in
clause (i) or (ii) of section 202(x)(1)(A) the primary purpose
of which is to confine individuals as described in section
202(x)(1)(A), under which--
``(I) the institution shall provide to the
Commissioner, on a monthly basis and in a manner
specified by the Commissioner, the names, social
security account numbers, dates of birth, confinement
commencement dates, and, to the extent available to the
institution, such other identifying information
concerning the inmates of the institution as the
Commissioner may require for the purpose of carrying
out paragraph (1); and
``(II) the Commissioner shall pay to any such
institution, with respect to each inmate of the
institution who is eligible for a benefit under this
title for the month preceding the first month
throughout which such inmate is in such institution and
becomes ineligible for such benefit as a result of the
application of this subparagraph, $400 if the
institution furnishes the information described in
subclause (I) to the Commissioner within 30 days after
the date such individual becomes an inmate of such
institution, or $200 if the institution furnishes such
information after 30 days after such date but within 90
days after such date.
``(ii)(I) The provisions of section 552a of title 5, United
States Code, shall not apply to any agreement entered into
under clause (i) or to information exchanged pursuant to such
agreement.
``(II) The Commissioner is authorized to provide, on a
reimbursable basis, information obtained pursuant to agreements
entered into under clause (i) to any Federal or federally-
assisted cash, food, or medical assistance program for
eligibility purposes.
``(iii) Payments to institutions required by clause (i)(II)
shall be made from funds otherwise available for the payment of
benefits under this title and shall be treated as direct
spending for purposes of the Balanced Budget and Emergency
Deficit Control Act of 1985.''.
(2) Effective date.--The amendment made by this
subsection shall apply to individuals whose period of
confinement in an institution commences on or after the
first day of the seventh month beginning after the
month in which this Act is enacted.
(b) 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 section 1611(e)(1) of the Social
Security Act; and
(B) requiring that State and local jails,
prisons, and other institutions that enter into
agreements with the Commissioner under section
1611(e)(1)(I) of the Social Security Act
furnish the information required by such
agreements to the Commissioner by means of an
electronic or other sophisticated data exchange
system.
(2) Report.--Not later than 1 year after the date
of the enactment of this Act, the Commissioner of
Social Security shall submit a report on the results of
the study conducted pursuant to this subsection to the
Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives.
(c) Additional Report to Congress.--Not later than October
1, 1998, the Commissioner of Social Security shall provide to
the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives a list of the
institutions that are and are not providing information to the
Commissioner under section 1611(e)(1)(I) of the Social Security
Act (as added by this section).
SEC. 204. EFFECTIVE DATE OF APPLICATION FOR BENEFITS.
(a) In General.--Subparagraphs (A) and (B) of section
1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended to read as
follows:
``(A) the first day of the month following the date
such application is filed, or
``(B) the first day of the month following the date
such individual becomes eligible for such benefits with
respect to such application.''.
(b) Special Rule Relating to Emergency Advance Payments.--
Section 1631(a)(4)(A) (42 U.S.C. 1383(a)(4)(A)) is amended--
(1) by inserting ``for the month following the date
the application is filed'' after ``is presumptively
eligible for such benefits''; and
(2) by inserting ``, which shall be repaid through
proportionate reductions in such benefits over a period
of not more than 6 months'' before the semicolon.
(c) Conforming Amendments.--
(1) Section 1614(b) (42 U.S.C. 1382c(b)) is
amended--
(A) by striking ``or requests'' and
inserting ``, on the first day of the month
following the date the application is filed,
or, in any case in which either spouse
requests''; and
(B) by striking ``application or''.
(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.
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)), as amended by section 105(b)(1) of the
Contract with America Advancement Act of 1996, is amended--
(1) in subparagraph (A), by striking ``An
individual'' and inserting ``Except as provided in
subparagraph (C), an individual'';
(2) in subparagraph (A), by striking ``(or, in the
case of an individual under the age of 18, if he
suffers from any medically determinable physical or
mental impairment of comparable severity)'';
(3) by redesignating subparagraphs (C) through (I)
as subparagraphs (D) through (J), respectively;
(4) by inserting after subparagraph (B) the
following new subparagraph:
``(C)(i) An individual under the age of 18 shall be
considered disabled for the purposes of this title if that
individual has a medically determinable physical or mental
impairment, which results in marked and severe functional
limitations, and which can be expected to result in death or
which has lasted or can be expected to last for a continuous
period of not less than 12 months.
``(ii) Notwithstanding clause (i), no individual under the
age of 18 who engages in substantial gainful activity
(determined in accordance with regulations prescribed pursuant
to subparagraph (E)) may be considered to be disabled.''; and
(5) in subparagraph (F), as redesignated by
paragraph (3), by striking ``(D)'' and inserting
``(E)''.
(b) Changes to Childhood SSI Regulations.--
(1) Modification to medical criteria for evaluation
of mental and emotional disorders.--The Commissioner of
Social Security shall modify sections 112.00C.2. and
112.02B.2.c.(2) of appendix 1 to subpart P of part 404
of title 20, Code of Federal Regulations, to eliminate
references to maladaptive behavior in the domain of
personal/behavorial function.
(2) Discontinuance of individualized functional
assessment.--The Commissioner of Social Security shall
discontinue the individualized functional assessment
for children set forth in sections 416.924d and
416.924e of title 20, Code of Federal Regulations.
(c) Medical Improvement Review Standard as It Applies to
Individuals Under the Age of 18.--Section 1614(a)(4) (42 U.S.C.
1382(a)(4)) is amended--
(1) by redesignating subclauses (I) and (II) of
clauses (i) and (ii) of subparagraph (B) as items (aa)
and (bb), respectively;
(2) by redesignating clauses (i) and (ii) of
subparagraphs (A) and (B) as subclauses (I) and (II),
respectively;
(3) by redesignating subparagraphs (A) through (C)
as clauses (i) through (iii), respectively;
(4) by inserting before clause (i) (as redesignated
by paragraph (3)) the following new subparagraph:
``(A) in the case of an individual who is age 18 or
older--'';
(5) by inserting after and below subparagraph
(A)(iii) (as so redesignated) the following new
subparagraph:
``(B) in the case of an individual who is under the
age of 18--
``(i) substantial evidence which
demonstrates that there has been medical
improvement in the individual's impairment or
combination of impairments, and that such
impairment or combination of impairments no
longer results in marked and severe functional
limitations; or
``(ii) substantial evidence which
demonstrates that, as determined on the basis
of new or improved diagnostic techniques or
evaluations, the individual's impairment or
combination of impairments, is not as disabling
as it was considered to be at the time of the
most recent prior decision that the individual
was under a disability or continued to be under
a disability, and such impairment or
combination of impairments does not result in
marked and severe functional limitations; or'';
(6) by redesignating subparagraph (D) as
subparagraph (C) and by inserting in such subparagraph
``in the case of any individual,'' before ``substantial
evidence''; and
(7) in the first sentence following subparagraph
(C) (as redesignated by paragraph (6)), by--
(A) inserting ``(i)'' before ``to
restore''; and
(B) inserting ``, or (ii) in the case of an
individual under the age of 18, to eliminate or
improve the individual's impairment or
combination of impairments so that it no longer
results in marked and severe functional
limitations'' immediately before the period.
(d) Effective Dates, Etc.--
(1) Effective dates.--
(A) Subsections (a) and (b).--
(i) In general.--The provisions of,
and amendments made by, subsections (a)
and (b) of this section shall apply to
any individual who applies for, or
whose claim is finally adjudicated with
respect to, benefits under title XVI of
the Social Security Act on or after the
date of the enactment of this Act,
without regard to whether regulations
have been issued to implement such
provisions and amendments.
(ii) Determination of final
adjudication.--For purposes of clause
(i), no individual's claim with respect
to such benefits may be considered to
be finally adjudicated before such date
of enactment if, on or after such date,
there is pending a request for either
administrative or judicial review with
respect to such claim that has been
denied in whole, or there is pending,
with respect to such claim,
readjudication by the Commissioner of
Social Security pursuant to relief in a
class action or implementation by the
Commissioner of a court remand order.
(B) Subsection (c).--The amendments made by
subsection (c) of this section shall apply with
respect to benefits under title XVI of the
Social Security Act for months beginning on or
after the date of the enactment of this Act,
without regard to whether regulations have been
issued to implement such amendments.
(2) Application to current recipients.--
(A) Eligibility redeterminations.--During
the period beginning on the date of the
enactment of this Act and ending on the date
which is 1 year after such date of enactment,
the Commissioner of Social Security shall
redetermine the eligibility of any individual
under age 18 who is eligible for supplemental
security income benefits by reason of
disability under title XVI of the Social
Security Act as of the date of the enactment of
this Act and whose eligibility for such
benefits may terminate by reason of the
provisions of, or amendments made by,
subsections (a) and (b) of this section. With
respect to any redetermination under this
subparagraph--
(i) section 1614(a)(4) of the
Social Security Act (42 U.S.C.
1382c(a)(4)) shall not apply;
(ii) the Commissioner of Social
Security shall apply the eligibility
criteria for new applicants for
benefits under title XVI of such Act;
(iii) the Commissioner shall give
such redetermination priority over all
continuing eligibility reviews and
other reviews under such title; and
(iv) such redetermination shall be
counted as a review or redetermination
otherwise required to be made under
section 208 of the Social Security
Independence and Program Improvements
Act of 1994 or any other provision of
title XVI of the Social Security Act.
(B) Grandfather provision.--The provisions
of, and amendments made by, subsections (a) and
(b) of this section, 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 later of July 1,
1997, or the date of the redetermination with
respect to such individual.
(C) Notice.--Not later than January 1,
1997, the Commissioner of Social Security shall
notify an individual described in subparagraph
(A) of the provisions of this paragraph.
(3) Report.--The Commissioner of Social Security
shall report to the Congress regarding the progress
made in implementing the provisions of, and amendments
made by, this section on child disability evaluations
not later than 180 days after the date of the enactment
of this Act.
(4) Regulations.--Notwithstanding any other
provision of law, the Commissioner of Social Security
shall submit for review to the committees of
jurisdiction in the Congress any final regulation
pertaining to the eligibility of individuals under age
18 for benefits under title XVI of the Social Security
Act at least 45 days before the effective date of such
regulation. The submission under this paragraph shall
include supporting documentation providing a cost
analysis, workload impact, and projections as to how
the regulation will effect the future number of
recipients under such title.
(5) Cap adjustment for ssi administrative work
required by welfare reform.--
(A) Authorization.--For the additional
costs of continuing disability reviews and
redeterminations under title XVI of the Social
Security Act, there is hereby authorized to be
appropriated to the Social Security
Administration, in addition to amounts
authorized under section 201(g)(1)(A) of the
Social Security Act, $150,000,000 in fiscal
year 1997 and $100,000,000 in fiscal year 1998.
(B) Cap adjustment.--Section 251(b)(2)(H)
of the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended by section
103(b) of the Contract with America Advancement
Act of 1996, is amended--
(i) in clause (i)--
(I) in subclause (II) by--
(aa) striking
``$25,000,000'' and
inserting
``$175,000,000''; and
(bb) striking
``$160,000,000'' and
inserting
``$310,000,000''; and
(II) in subclause (III)
by--
(aa) striking
``$145,000,000'' and
inserting
``$245,000,000''; and
(bb) striking
``$370,000,000'' and
inserting
``$470,000,000''; and
(ii) by amending clause (ii)(I) to
read as follows:
``(I) the term `continuing
disability reviews' means reviews or
redeterminations as defined under
section 201(g)(1)(A) of the Social
Security Act and reviews and
redeterminations authorized under
section 211 of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996;''.
(C) Adjustments.--Section 606(e)(1)(B) of
the Congressional Budget Act of 1974 is amended
by adding at the end the following new
sentences: ``If the adjustments referred to in
the preceding sentence are made for an
appropriations measure that is not enacted into
law, then the Chairman of the Committee on the
Budget of the House of Representatives shall,
as soon as practicable, reverse those
adjustments. The Chairman of the Committee on
the Budget of the House of Representatives
shall submit any adjustments made under this
subparagraph to the House of Representatives
and have such adjustments published in the
Congressional Record.''.
(D) Conforming amendment.--Section
103(d)(1) of the Contract with America
Advancement Act of 1996 (42 U.S.C. 401 note) is
amended by striking ``medicaid programs.'' and
inserting ``medicaid programs, except that the
amounts appropriated pursuant to the
authorization and discretionary spending
allowance provisions in section 211(d)(2)(5) of
the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 shall be
used only for continuing disability reviews and
redeterminations under title XVI of the Social
Security Act.''.
(6) 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. 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
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 is likely to improve (or, at the option of
the Commissioner, which is unlikely to improve).
``(II) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of
review, evidence demonstrating that the recipient is, and has
been, receiving treatment, to the extent considered medically
necessary and available, of the condition which was the basis
for providing benefits under this title.
``(III) If the representative payee refuses to comply
without good cause with the requirements of subclause (II), the
Commissioner of Social Security shall, if the Commissioner
determines it is in the best interest of the individual,
promptly suspend payment of benefits to the representative
payee, and provide for payment of benefits to an alternative
representative payee of the individual or, if the interest of
the individual under this title would be served thereby, to the
individual.
``(IV) Subclause (II) shall not apply to the representative
payee of any individual with respect to whom the Commissioner
determines such application would be inappropriate or
unnecessary. In making such determination, the Commissioner
shall take into consideration the nature of the individual's
impairment (or combination of impairments). Section 1631(c)
shall not apply to a finding by the Commissioner that the
requirements of subclause (II) should not apply to an
individual's representative payee.''.
(b) Disability Eligibility Redeterminations Required for
SSI Recipients Who Attain 18 Years of Age.--
(1) In general.--Section 1614(a)(3)(H) (42 U.S.C.
1382c(a)(3)(H)), as amended by subsection (a) of this
section, is amended by adding at the end the following
new clause:
``(iii) If an individual is eligible for benefits under
this title by reason of disability for the month preceding the
month in which the individual attains the age of 18 years, the
Commissioner shall redetermine such eligibility--
``(I) during the 1-year period beginning on the
individual's 18th birthday; and
``(II) by applying the criteria used in determining
the initial eligibility for applicants who are age 18
or older.
With respect to a redetermination under this clause, paragraph
(4) shall not apply and such redetermination shall be
considered a substitute for a review or redetermination
otherwise required under any other provision of this
subparagraph during that 1-year period.''.
(2) Conforming repeal.--Section 207 of the Social
Security Independence and Program Improvements Act of
1994 (42 U.S.C. 1382 note; 108 Stat. 1516) is hereby
repealed.
(c) Continuing Disability Review Required for Low Birth
Weight Babies.--Section 1614(a)(3)(H) (42 U.S.C.
1382c(a)(3)(H)), as amended by subsections (a) and (b) of this
section, is amended by adding at the end the following new
clause:
``(iv)(I) Not later than 12 months after the birth of an
individual, the Commissioner shall review in accordance with
paragraph (4) the continuing eligibility for benefits under
this title by reason of disability of such individual whose low
birth weight is a contributing factor material to the
Commissioner's determination that the individual is disabled.
``(II) A review under subclause (I) shall be considered a
substitute for a review otherwise required under any other
provision of this subparagraph during that 12-month period.
``(III) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of
review, evidence demonstrating that the recipient is, and has
been, receiving treatment, to the extent considered medically
necessary and available, of the condition which was the basis
for providing benefits under this title.
``(IV) If the representative payee refuses to comply
without good cause with the requirements of subclause (III),
the Commissioner of Social Security shall, if the Commissioner
determines it is in the best interest of the individual,
promptly suspend payment of benefits to the representative
payee, and provide for payment of benefits to an alternative
representative payee of the individual or, if the interest of
the individual under this title would be served thereby, to the
individual.
``(V) Subclause (III) shall not apply to the representative
payee of any individual with respect to whom the Commissioner
determines such application would be inappropriate or
unnecessary. In making such determination, the Commissioner
shall take into consideration the nature of the individual's
impairment (or combination of impairments). Section 1631(c)
shall not apply to a finding by the Commissioner that the
requirements of subclause (III) should not apply to an
individual's representative payee.''.
(d) Effective Date.--The amendments made by this section
shall apply to benefits for months beginning on or after the
date of the enactment of this Act, without regard to whether
regulations have been issued to implement such amendments.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) Requirement To Establish Account.--Section 1631(a)(2)
(42 U.S.C. 1383(a)(2)) is amended--
(1) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively; and
(2) by inserting after subparagraph (E) the
following new subparagraph:
``(F)(i)(I) Each representative payee of an eligible
individual under the age of 18 who is eligible for the payment
of benefits described in subclause (II) shall establish on
behalf of such individual an account in a financial institution
into which such benefits shall be paid, and shall thereafter
maintain such account for use in accordance with clause (ii).
``(II) Benefits described in this subclause are past-due
monthly benefits under this title (which, for purposes of this
subclause, include State supplementary payments made by the
Commissioner pursuant to an agreement under section 1616 or
section 212(b) of Public Law 93-66) in an amount (after any
withholding by the Commissioner for reimbursement to a State
for interim assistance under subsection (g)) that exceeds the
product of--
``(aa) 6, and
``(bb) the maximum monthly benefit payable under
this title to an eligible individual.
``(ii)(I) A representative payee shall use funds in the
account established under clause (i) to pay for allowable
expenses described in subclause (II).
``(II) An allowable expense described in this subclause is
an expense for--
``(aa) education or job skills training;
``(bb) personal needs assistance;
``(cc) special equipment;
``(dd) housing modification;
``(ee) medical treatment;
``(ff) therapy or rehabilitation; or
``(gg) any other item or service that the
Commissioner determines to be appropriate;
provided that such expense benefits such individual and, in the
case of an expense described in item (bb), (cc), (dd), (ff), or
(gg), is related to the impairment (or combination of
impairments) of such individual.
``(III) The use of funds from an account established under
clause (i) in any manner not authorized by this clause--
``(aa) by a representative payee shall be
considered a misapplication of benefits for all
purposes of this paragraph, and any representative
payee who knowingly misapplies benefits from such an
account shall be liable to the Commissioner in an
amount equal to the total amount of such benefits; and
``(bb) by an eligible individual who is his or her
own payee shall be considered a misapplication of
benefits for all purposes of this paragraph and the
total amount of such benefits so used shall be
considered to be the uncompensated value of a disposed
resource and shall be subject to the provisions of
section 1613(c).
``(IV) This clause shall continue to apply to funds in the
account after the child has reached age 18, regardless of
whether benefits are paid directly to the beneficiary or
through a representative payee.
``(iii) The representative payee may deposit into the
account established pursuant to clause (i)--
``(I) past-due benefits payable to the eligible
individual in an amount less than that specified in
clause (i)(II), and
``(II) any other funds representing an underpayment
under this title to such individual, provided that the
amount of such underpayment is equal to or exceeds the
maximum monthly benefit payable under this title to an
eligible individual.
``(iv) The Commissioner of Social Security shall establish
a system for accountability monitoring whereby such
representative payee shall report, at such time and in such
manner as the Commissioner shall require, on activity
respecting funds in the account established pursuant to clause
(i).''.
(b) Exclusion From Resources.--Section 1613(a) (42 U.S.C.
1382b(a)) is amended--
(1) by striking ``and'' at the end of paragraph
(10);
(2) by striking the period at the end of paragraph
(11) and inserting ``; and''; and
(3) by inserting after paragraph (11) the following
new paragraph:
``(12) any account, including accrued interest or
other earnings thereon, established and maintained in
accordance with section 1631(a)(2)(F).''.
(c) Exclusion From Income.--Section 1612(b) (42 U.S.C.
1382a(b)) is amended--
(1) by striking ``and'' at the end of paragraph
(19);
(2) by striking the period at the end of paragraph
(20) and inserting ``; and''; and
(3) by adding at the end the following new
paragraph:
``(21) the interest or other earnings on any
account established and maintained in accordance with
section 1631(a)(2)(F).''.
(d) Effective Date.--The amendments made by this section
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 by inserting ``or, in the case of an
eligible individual who is a child 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. REGULATIONS.
Within 3 months after the date of the enactment of this
Act, the Commissioner of Social Security shall prescribe such
regulations as may be necessary to implement the amendments
made by this subtitle.
Subtitle C--Additional Enforcement Provision
SEC. 221. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLEMENTAL SECURITY
INCOME BENEFITS.
(a) In General.--Section 1631(a) (42 U.S.C. 1383) is
amended by adding at the end the following new paragraph:
``(10)(A) If an individual is eligible for past-due monthly
benefits under this title in an amount that (after any
withholding for reimbursement to a State for interim assistance
under subsection (g)) equals or exceeds the product of--
``(i) 12, and
``(ii) the maximum monthly benefit payable under
this title to an eligible individual (or, if
appropriate, to an eligible individual and eligible
spouse),
then the payment of such past-due benefits (after any such
reimbursement to a State) shall be made in installments as
provided in subparagraph (B).
``(B)(i) The payment of past-due benefits subject to this
subparagraph shall be made in not to exceed 3 installments that
are made at 6-month intervals.
``(ii) Except as provided in clause (iii), the amount of
each of the first and second installments may not exceed an
amount equal to the product of clauses (i) and (ii) of
subparagraph (A).
``(iii) In the case of an individual who has--
``(I) outstanding debt attributable to--
``(aa) food,
``(bb) clothing,
``(cc) shelter, or
``(dd) medically necessary services,
supplies or equipment, or medicine; or
``(II) current expenses or expenses anticipated in
the near term attributable to--
``(aa) medically necessary services,
supplies or equipment, or medicine, or
``(bb) the purchase of a home, and
such debt or expenses are not subject to reimbursement by a
public assistance program, the Secretary under title XVIII, a
State plan approved under title XIX, or any private entity
legally liable to provide payment pursuant to an insurance
policy, pre-paid plan, or other arrangement, the limitation
specified in clause (ii) may be exceeded by an amount equal to
the total of such debt and expenses.
``(C) This paragraph shall not apply to any individual who,
at the time of the Commissioner's determination that such
individual is eligible for the payment of past-due monthly
benefits under this title--
``(i) is afflicted with a medically determinable
impairment that is expected to result in death within
12 months; or
``(ii) is ineligible for benefits under this title
and the Commissioner determines that such individual is
likely to remain ineligible for the next 12 months.
``(D) For purposes of this paragraph, the term `benefits
under this title' includes supplementary payments pursuant to
an agreement for Federal administration under section 1616(a),
and payments pursuant to an agreement entered into under
section 212(b) of Public Law 93-66.''.
(b) Conforming Amendment.--Section 1631(a)(1) (42 U.S.C.
1383(a)(1)) is amended by inserting ``(subject to paragraph
(10))'' immediately before ``in such installments''.
(c) Effective Date.--
(1) In general.--The amendments made by this
section are effective with respect to past-due benefits
payable under title XVI of the Social Security Act
after the third month following the month in which this
Act is enacted.
(2) Benefits payable under title xvi.--For purposes
of this subsection, the term ``benefits payable under
title XVI of the Social Security Act'' includes
supplementary payments pursuant to an agreement for
Federal administration under section 1616(a) of the
Social Security Act, and payments pursuant to an
agreement entered into under section 212(b) of Public
Law 93-66.
SEC. 222. REGULATIONS.
Within 3 months after the date of the enactment of this
Act, the Commissioner of Social Security shall prescribe such
regulations as may be necessary to implement the amendments
made by this subtitle.
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
105(b)(3) of the Contract with America Advancement Act of 1996,
is amended by adding at the end the following new section:
``annual report on program
``Sec. 1637. (a) Not later than May 30 of each year, the
Commissioner of Social Security shall prepare and deliver a
report annually to the President and the Congress regarding the
program under this title, including--
``(1) a comprehensive description of the program;
``(2) historical and current data on allowances and
denials, including number of applications and allowance
rates for initial determinations, reconsideration
determinations, administrative law judge hearings,
appeals council reviews, and Federal court decisions;
``(3) historical and current data on
characteristics of recipients and program costs, by
recipient group (aged, blind, disabled adults, and
disabled children);
``(4) historical and current data on prior
enrollment by recipients in public benefit programs,
including State programs funded under part A of title
IV of the Social Security Act and State general
assistance programs;
``(5) projections of future number of recipients
and program costs, through at least 25 years;
``(6) number of redeterminations and continuing
disability reviews, and the outcomes of such
redeterminations and reviews;
``(7) data on the utilization of work incentives;
``(8) detailed information on administrative and
other program operation costs;
``(9) summaries of relevant research undertaken by
the Social Security Administration, or by other
researchers;
``(10) State supplementation program operations;
``(11) a historical summary of statutory changes to
this title; and
``(12) such other information as the Commissioner
deems useful.
``(b) Each member of the Social Security Advisory Board
shall be permitted to provide an individual report, or a joint
report if agreed, of views of the program under this title, to
be included in the annual report required under this
section.''.
SEC. 232. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1999, the Comptroller General of
the United States shall study and report on--
(1) the impact of the amendments made by, and the
provisions of, this 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.
TITLE III--CHILD SUPPORT
SEC. 300. 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 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 are provided
under the State program funded under
part E of this title, or (III) medical
assistance is provided under the State
plan approved under title XIX, unless,
in accordance with paragraph (29), good
cause or other exceptions exist;
``(ii) any other child, if an
individual applies for such services
with respect to the child; and
``(B) enforce any support obligation
established with respect to--
``(i) a child with respect to whom
the State provides services under the
plan; or
``(ii) the custodial parent of such
a child;''; and
(2) in paragraph (6)--
(A) by striking ``provide that'' and
inserting ``provide that--'';
(B) by striking subparagraph (A) and
inserting the following new subparagraph:
``(A) services under the plan shall be made
available to residents of other States on the
same terms as to residents of the State
submitting the plan;'';
(C) in subparagraph (B), by inserting ``on
individuals not receiving assistance under any
State program funded under part A'' after
``such services shall be imposed'';
(D) in each of subparagraphs (B), (C), (D),
and (E)--
(i) by indenting the subparagraph
in the same manner as, and aligning the
left margin of the subparagraph with
the left margin of, the matter inserted
by subparagraph (B) of this paragraph;
and
(ii) by striking the final comma
and inserting a semicolon; and
(E) in subparagraph (E), by indenting each
of clauses (i) and (ii) 2 additional ems.
(b) Continuation of Services for Families Ceasing To
Receive Assistance Under the State Program Funded Under Part
A.--Section 454 (42 U.S.C. 654) is amended--
(1) by striking ``and'' at the end of paragraph
(23);
(2) by striking the period at the end of paragraph
(24) and inserting ``; and''; and
(3) by adding after paragraph (24) the following
new paragraph:
``(25) provide that if a family with respect to
which services are provided under the plan ceases to
receive assistance under the State program funded under
part A, the State shall provide appropriate notice to
the family and continue to provide such services,
subject to the same conditions and on the same basis as
in the case of other individuals to whom services are
furnished under the plan, except that an application or
other request to continue services shall not be
required of such a family and paragraph (6)(B) shall
not apply to the family.''.
(c) Conforming Amendments.--
(1) Section 452(b) (42 U.S.C. 652(b)) is amended by
striking ``454(6)'' and inserting ``454(4)''.
(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A))
is amended by striking ``454(6)'' each place it appears
and inserting ``454(4)(A)(ii)''.
(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B))
is amended by striking ``in the case of overdue support
which a State has agreed to collect under section
454(6)'' and inserting ``in any other case''.
(4) Section 466(e) (42 U.S.C. 666(e)) is amended by
striking ``paragraph (4) or (6) of section 454'' and
inserting ``section 454(4)''.
SEC. 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.--Subject to subsection (e), an amount
collected on behalf of a family as support by a State pursuant
to a plan approved under this part shall be distributed as
follows:
``(1) Families receiving assistance.--In the case
of a family receiving assistance from the State, the
State shall--
``(A) pay to the Federal Government the
Federal share of the amount so collected; and
``(B) retain, or distribute to the family,
the State share of the amount so collected.
``(2) Families that formerly received assistance.--
In the case of a family that formerly received
assistance from the State:
``(A) Current support payments.--To the
extent that the amount so collected does not
exceed the amount required to be paid to the
family for the month in which collected, the
State shall distribute the amount so collected
to the family.
``(B) Payments of arrearages.--To the
extent that the amount so collected exceeds the
amount required to be paid to the family for
the month in which collected, the State shall
distribute the amount so collected as follows:
``(i) Distribution of arrearages
that accrued after the family ceased to
receive assistance.--
``(I) Pre-october 1997.--
Except as provided in subclause
(II), the provisions of this
section (other than subsection
(b)(1)) as in effect and
applied on the day before the
date of the enactment of
section 302 of the Personal
Responsibility and Work
Opportunity Act Reconciliation
of 1996 shall apply with
respect to the distribution of
support arrearages that--
``(aa) accrued
after the family ceased
to receive assistance,
and
``(bb) are
collected before
October 1, 1997.
``(II) Post-september
1997.--With respect to the
amount so collected on or after
October 1, 1997 (or before such
date, at the option of the
State)--
``(aa) In
general.--The State
shall first distribute
the amount so collected
(other than any amount
described in clause
(iv)) to the family to
the extent necessary to
satisfy any support
arrearages with respect
to the family that
accrued after the
family ceased to
receive assistance from
the State.
``(bb)
Reimbursement of
governments for
assistance provided to
the family.--After the
application of division
(aa) and clause
(ii)(II)(aa) with
respect to the amount
so collected, the State
shall retain the State
share of the amount so
collected, and pay to
the Federal Government
the Federal share (as
defined in subsection
(c)(2)) of the amount
so collected, but only
to the extent necessary
to reimburse amounts
paid to the family as
assistance by the
State.
``(cc) Distribution
of the remainder to the
family.--To the extent
that neither division
(aa) nor division (bb)
applies to the amount
so collected, the State
shall distribute the
amount to the family.
``(ii) Distribution of arrearages
that accrued before the family received
assistance.--
``(I) Pre-october 2000.--
Except as provided in subclause
(II), the provisions of this
section (other than subsection
(b)(1)) as in effect and
applied on the day before the
date of the enactment of
section 302 of the Personal
Responsibility and Work
Opportunity Reconciliation 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 amounts
paid to the family as
assistance by the
State.
``(cc) Distribution
of the remainder to the
family.--To the extent
that neither division
(aa) nor division (bb)
applies to the amount
so collected, the State
shall distribute the
amount to the family.
``(iii) Distribution of arrearages
that accrued while the family received
assistance.--In the case of a family
described in this subparagraph, the
provisions of paragraph (1) shall apply
with respect to the distribution of
support arrearages that accrued while
the family received assistance.
``(iv) Amounts collected pursuant
to section 464.--Notwithstanding any
other provision of this section, any
amount of support collected pursuant to
section 464 shall be retained by the
State to the extent past-due support
has been assigned to the State as a
condition of receiving assistance from
the State, up to the amount necessary
to reimburse the State for amounts paid
to the family as assistance by the
State. The State shall pay to the
Federal Government the Federal share of
the amounts so retained. To the extent
the amount collected pursuant to
section 464 exceeds the amount so
retained, the State shall distribute
the excess to the family.
``(v) Ordering rules for
distributions.--For purposes of this
subparagraph, unless an earlier
effective date is required by this
section, effective October 1, 2000, the
State shall treat any support
arrearages collected, except for
amounts collected pursuant to section
464, as accruing in the following
order:
``(I) To the period after
the family ceased to receive
assistance.
``(II) To the period before
the family received assistance.
``(III) To the period while
the family was receiving
assistance.
``(3) Families that never received assistance.--In
the case of any other family, the State shall
distribute the amount so collected to the family.
``(4) Families under certain agreements.--In the
case of a family receiving assistance from an Indian
tribe, distribute the amount so collected pursuant to
an agreement entered into pursuant to a State plan
under section 454(33).
``(5) Study and report.--Not later than October 1,
1998, the Secretary shall report to the Congress the
Secretary's findings with respect to--
``(A) whether the distribution of post-
assistance arrearages to families has been
effective in moving people off of welfare and
keeping them off of welfare;
``(B) whether early implementation of a
pre-assistance arrearage program by some States
has been effective in moving people off of
welfare and keeping them off of welfare;
``(C) what the overall impact has been of
the amendments made by the Personal
Responsibility and Work Opportunity Act of 1996
with respect to child support enforcement in
moving people off of welfare and keeping them
off of welfare; and
``(D) based on the information and data the
Secretary has obtained, what changes, if any,
should be made in the policies related to the
distribution of child support arrearages.
``(b) Continuation of Assignments.--Any rights to support
obligations, which were assigned to a State as a condition of
receiving assistance from the State under part A and which were
in effect on the day before the date of the enactment of the
Personal Responsibility and Work Opportunity Act of 1996, shall
remain assigned after such date.
``(c) Definitions.--As used in subsection (a):
``(1) Assistance.--The term `assistance from the
State' means--
``(A) assistance under the State program
funded under part A or under the State plan
approved under part A of this title (as in
effect on the day before the date of the
enactment of the Personal Responsibility and
Work Opportunity Act of 1996); and
``(B) foster care maintenance payments
under the State plan approved under part E of
this title.
``(2) Federal share.--The term `Federal share'
means that portion of the amount collected resulting
from the application of the Federal medical assistance
percentage in effect for the fiscal year in which the
amount is collected.
``(3) Federal medical assistance percentage.--The
term `Federal medical assistance percentage' means--
``(A) the Federal medical assistance
percentage (as defined in section 1118), in the
case of Puerto Rico, the Virgin Islands, Guam,
and American Samoa; or
``(B) the Federal medical assistance
percentage (as defined in section 1905(b), as
in effect on September 30, 1996) in the case of
any other State.
``(4) State share.--The term `State share' means
100 percent minus the Federal share.
``(d) Hold Harmless Provision.--If the amounts collected
which could be retained by the State in the fiscal year (to the
extent necessary to reimburse the State for amounts paid to
families as assistance by the State) are less than the State
share of the amounts collected in fiscal year 1995 (determined
in accordance with section 457 as in effect on the day before
the date of the enactment of the Personal Responsibility and
Work Opportunity Act of 1996), the State share for the fiscal
year shall be an amount equal to the State share in fiscal year
1995.
``(e) Gap Payments not Subject to Distribution Under This
Section.--At State option, this section shall not apply to any
amount collected on behalf of a family as support by the State
(and paid to the family in addition to the amount of assistance
otherwise payable to the family) pursuant to a plan approved
under this part if such amount would have been paid to the
family by the State under section 402(a)(28), as in effect and
applied on the day before the date of the enactment of section
302 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. For purposes of subsection (d), the
State share of such amount paid to the family shall be
considered amounts which could be retained by the State if such
payments were reported by the State as part of the State share
of amounts collected in fiscal year 1995.''.
(b) Conforming Amendments.--
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is
amended by striking ``section 457(b)(4) or (d)(3)'' and
inserting ``section 457''.
(2) Section 454 (42 U.S.C. 654) is amended--
(A) in paragraph (11)--
(i) by striking ``(11)'' and
inserting ``(11)(A)''; and
(ii) by inserting after the
semicolon ``and''; and
(B) by redesignating paragraph (12) as
subparagraph (B) of paragraph (11).
(c) Effective Dates.--
(1) In General.--Except as provided in paragraph
(2), the amendments made by this section shall be
effective on October 1, 1996, or earlier at the State's
option.
(2) Conforming amendments.--The amendments made by
subsection (b)(2) shall become effective on the date of
the enactment of this Act.
SEC. 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 OF 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 update, maintain, and
regularly monitor, case records in the State case
registry with respect to which services are being
provided under the State plan approved under this part,
on the basis of--
``(A) information on administrative actions
and administrative and judicial proceedings and
orders relating to paternity and support;
``(B) information obtained from comparison
with Federal, State, or local sources of
information;
``(C) information on support collections
and distributions; and
``(D) any other relevant information.
``(f) Information Comparisons and Other Disclosures of
Information.--The State shall use the automated system required
by this section to extract information from (at such times, and
in such standardized format or formats, as may be required by
the Secretary), to share and compare information with, and to
receive information from, other data bases and information
comparison services, in order to obtain (or provide)
information necessary to enable the State agency (or the
Secretary or other State or Federal agencies) to carry out this
part, subject to section 6103 of the Internal Revenue Code of
1986. Such information comparison activities shall include the
following:
``(1) Federal case registry of child support
orders.--Furnishing to the Federal Case Registry of
Child Support Orders established under section 453(h)
(and update as necessary, with information including
notice of expiration of orders) the minimum amount of
information on child support cases recorded in the
State case registry that is necessary to operate the
registry (as specified by the Secretary in
regulations).
``(2) Federal parent locator service.--Exchanging
information with the Federal Parent Locator Service for
the purposes specified in section 453.
``(3) Temporary family assistance and medicaid
agencies.--Exchanging information with State agencies
(of the State and of other States) administering
programs funded under part A, programs operated under a
State plan approved under title XIX, and other programs
designated by the Secretary, as necessary to perform
State agency responsibilities under this part and under
such programs.
``(4) Intrastate and interstate information
comparisons.--Exchanging information with other
agencies of the State, agencies of other States, and
interstate information networks, as necessary and
appropriate to carry out (or assist other States to
carry out) the purposes of this part.''.
SEC. 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 income
of the noncustodial parent are subject to
withholding pursuant to section 466(a)(8)(B).
``(2) Operation.--The State disbursement unit shall
be operated--
``(A) directly by the State agency (or 2 or
more State agencies under a regional
cooperative agreement), or (to the extent
appropriate) by a contractor responsible
directly to the State agency; and
``(B) except in cases described in
paragraph (1)(B), in coordination with the
automated system established by the State
pursuant to section 454A.
``(3) Linking of local disbursement units.--The
State disbursement unit may be established by linking
local disbursement units through an automated
information network, subject to this section, if the
Secretary agrees that the system will not cost more nor
take more time to establish or operate than a
centralized system. In addition, employers shall be
given 1 location to which income withholding is sent.
``(b) Required Procedures.--The State disbursement unit
shall use automated procedures, electronic processes, and
computer-driven technology to the maximum extent feasible,
efficient, and economical, for the collection and disbursement
of support payments, including procedures--
``(1) for receipt of payments from parents,
employers, and other States, and for disbursements to
custodial parents and other obligees, the State agency,
and the agencies of other States;
``(2) for accurate identification of payments;
``(3) to ensure prompt disbursement of the
custodial parent's share of any payment; and
``(4) to furnish to any parent, upon request,
timely information on the current status of support
payments under an order requiring payments to be made
by or to the parent, except that in cases described in
subsection (a)(1)(B), the State disbursement unit shall
not be required to convert and maintain in automated
form records of payments kept pursuant to section
466(a)(8)(B)(iii) before the effective date of this
section.
``(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 income--
``(i) within 2 business days after
receipt of notice of, and the income
source subject to, such withholding
from a court, another State, an
employer, the Federal Parent Locator
Service, or another source recognized
by the State; and
``(ii) using uniform formats
prescribed by the Secretary;
``(B) ongoing monitoring to promptly
identify failures to make timely payment of
support; and
``(C) automatic use of enforcement
procedures (including procedures authorized
pursuant to section 466(c)) if payments are not
timely made.
``(2) Business day defined.--As used in paragraph
(1), the term `business day' means a day on which State
offices are open for regular business.''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph
(2), the amendments made by this section shall become
effective on October 1, 1998.
(2) Limited exception to unit handling payments.--
Notwithstanding section 454B(b)(1) of the Social
Security Act, as added by this section, any State
which, as of the date of the enactment of this Act,
processes the receipt of child support payments through
local courts may, at the option of the State, continue
to process through September 30, 1999, such payments
through such courts as processed such payments on or
before such date of enactment.
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 subsection (g)(2) not
later than October 1, 1997, and the
requirements of this section (other than
subsection (g)(2)) not later than October 1,
1998.
``(2) Definitions.--As used in this section:
``(A) Employee.--The term `employee'--
``(i) means an individual who is an
employee within the meaning of chapter
24 of the Internal Revenue Code of
1986; and
``(ii) does not include an employee
of a Federal or State agency performing
intelligence or counterintelligence
functions, if the head of such agency
has determined that reporting pursuant
to paragraph (1) with respect to the
employee could endanger the safety of
the employee or compromise an ongoing
investigation or intelligence mission.
``(B) Employer.--
``(i) In general.--The term
`employer' has the meaning given such
term in section 3401(d) of the Internal
Revenue Code of 1986 and includes any
governmental entity and any labor
organization.
``(ii) Labor organization.--The
term `labor organization' shall have
the meaning given such term in section
2(5) of the National Labor Relations
Act, and includes any entity (also
known as a `hiring hall') which is used
by the organization and an employer to
carry out requirements described in
section 8(f)(3) of such Act of an
agreement between the organization and
the employer.
``(b) Employer Information.--
``(1) Reporting requirement.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), each employer shall
furnish to the Directory of New Hires of the
State in which a newly hired employee works, a
report that contains the name, address, and
social security number of the employee, and the
name and address of, and identifying number
assigned under section 6109 of the Internal
Revenue Code of 1986 to, the employer.
``(B) Multistate employers.--An employer
that has employees who are employed in 2 or
more States and that transmits reports
magnetically or electronically may comply with
subparagraph (A) by designating 1 State in
which such employer has employees to which the
employer will transmit the report described in
subparagraph (A), and transmitting such report
to such State. Any employer that transmits
reports pursuant to this subparagraph shall
notify the Secretary in writing as to which
State such employer designates for the purpose
of sending reports.
``(C) Federal government employers.--Any
department, agency, or instrumentality of the
United States shall comply with subparagraph
(A) by transmitting the report described in
subparagraph (A) to the National Directory of
New Hires established pursuant to section 453.
``(2) Timing of report.--Each State may provide the
time within which the report required by paragraph (1)
shall be made with respect to an employee, but such
report shall be made--
``(A) not later than 20 days after the date
the employer hires the employee; or
``(B) in the case of an employer
transmitting reports magnetically or
electronically, by 2 monthly transmissions (if
necessary) not less than 12 days nor more than
16 days apart.
``(c) Reporting Format and Method.--Each report required by
subsection (b) shall be made on a W-4 form or, at the option of
the employer, an equivalent form, and may be transmitted by 1st
class mail, magnetically, or electronically.
``(d) Civil Money Penalties on Noncomplying Employers.--The
State shall have the option to set a State civil money penalty
which shall be less than--
``(1) $25; or
``(2) $500 if, under State law, the failure is the
result of a conspiracy between the employer and the
employee to not supply the required report or to supply
a false or incomplete report.
``(e) Entry of Employer Information.--Information shall be
entered into the data base maintained by the State Directory of
New Hires within 5 business days of receipt from an employer
pursuant to subsection (b).
``(f) Information Comparisons.--
``(1) In general.--Not later than May 1, 1998, an
agency designated by the State shall, directly or by
contract, conduct automated comparisons of the social
security numbers reported by employers pursuant to
subsection (b) and the social security numbers
appearing in the records of the State case registry for
cases being enforced under the State plan.
``(2) Notice of match.--When an information
comparison conducted under paragraph (1) reveals a
match with respect to the social security number of an
individual required to provide support under a support
order, the State Directory of New Hires shall provide
the agency administering the State plan approved under
this part of the appropriate State with the name,
address, and social security number of the employee to
whom the social security number is assigned, and the
name and address of, and identifying number assigned
under section 6109 of the Internal Revenue Code of 1986
to, the employer.
``(g) Transmission of Information.--
``(1) Transmission of wage withholding notices to
employers.--Within 2 business days after the date
information regarding a newly hired employee is entered
into the State Directory of New Hires, the State agency
enforcing the employee's child support obligation shall
transmit a notice to the employer of the employee
directing the employer to withhold from the income of
the employee an amount equal to the monthly (or other
periodic) child support obligation (including any past
due support obligation) of the employee, unless the
employee's income is not subject to withholding
pursuant to section 466(b)(3).
``(2) Transmissions to the national directory of
new hires.--
``(A) New hire information.--Within 3
business days after the date information
regarding a newly hired employee is entered
into the State Directory of New Hires, the
State Directory of New Hires shall furnish the
information to the National Directory of New
Hires.
``(B) Wage and unemployment compensation
information.--The State Directory of New Hires
shall, on a quarterly basis, furnish to the
National Directory of New Hires extracts of the
reports required under section 303(a)(6) to be
made to the Secretary of Labor concerning the
wages and unemployment compensation paid to
individuals, by such dates, in such format, and
containing such information as the Secretary of
Health and Human Services shall specify in
regulations.
``(3) Business day defined.--As used in this
subsection, the term `business day' means a day on
which State offices are open for regular business.
``(h) Other Uses of New Hire Information.--
``(1) Location of child support obligors.--The
agency administering the State plan approved under this
part shall use information received pursuant to
subsection (f)(2) to locate individuals for purposes of
establishing paternity and establishing, modifying, and
enforcing child support obligations, and may disclose
such information to any agent of the agency that is
under contract with the agency to carry out such
purposes.
``(2) Verification of eligibility for certain
programs.--A State agency responsible for administering
a program specified in section 1137(b) shall have
access to information reported by employers pursuant to
subsection (b) of this section for purposes of
verifying eligibility for the program.
``(3) Administration of employment security and
workers' compensation.--State agencies operating
employment security and workers' compensation programs
shall have access to information reported by employers
pursuant to subsection (b) for the purposes of
administering such programs.''.
(c) Quarterly Wage Reporting.--Section 1137(a)(3) (42
U.S.C. 1320b-7(a)(3)) is amended--
(1) by inserting ``(including State and local
governmental entities and labor organizations (as
defined in section 453A(a)(2)(B)(iii))'' after
``employers''; and
(2) by inserting ``, and except that no report
shall be filed with respect to an employee of a State
or local agency performing intelligence or
counterintelligence functions, if the head of such
agency has determined that filing such a report could
endanger the safety of the employee or compromise an
ongoing investigation or intelligence mission'' after
``paragraph (2)''.
(d) Disclosure to Certain Agents.--Section 303(e) (42
U.S.C. 503(e)) is amended by adding at the end the following:
``(5) A State or local child support enforcement agency may
disclose to any agent of the agency that is under contract with
the agency to carry out the purposes described in paragraph
(1)(B) wage information that is disclosed to an officer or
employee of the agency under paragraph (1)(A). Any agent of a
State or local child support agency that receives wage
information under this paragraph shall comply with the
safeguards established pursuant to paragraph (1)(B).''.
SEC. 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 income 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 7 business
days after the date the amount would
(but for this subsection) have been
paid or credited to the employee, for
distribution in accordance with this
part. The employer shall withhold funds
as directed in the notice, except that
when an employer receives an income
withholding order issued by another
State, the employer shall apply the
income withholding law of the state of
the obligor's principal place of
employment in determining--
``(I) the employer's fee for processing an
income withholding order;
``(II) the maximum amount permitted to be
withheld from the obligor's income;
``(III) the time periods within which the
employer must implement the income withholding
order and forward the child support payment;
``(IV) the priorities for withholding and
allocating income withheld for multiple child
support obligees; and
``(V) any withholding terms or conditions
not specified in the order.
An employer who complies with an income withholding
notice that is regular on its face shall not be subject
to civil liability to any individual or agency for
conduct in compliance with the notice.'';
(ii) in clause (ii), by inserting
``be in a standard format prescribed by
the Secretary, and'' after ``shall'';
and
(iii) by adding at the end the
following new clause:
``(iii) As used in this subparagraph, the term
`business day' means a day on which State offices are
open for regular business.''.
(E) Section 466(b)(6)(D) (42 U.S.C.
666(b)(6)(D)) is amended by striking ``any
employer'' and all that follows and inserting
``any employer who--
``(i) discharges from employment, refuses
to employ, or takes disciplinary action against
any noncustodial parent subject to income
withholding required by this subsection because
of the existence of such withholding and the
obligations or additional obligations which it
imposes upon the employer; or
``(ii) fails to withhold support from
income or to pay such amounts to the State
disbursement unit in accordance with this
subsection.''.
(F) Section 466(b) (42 U.S.C. 666(b)) is
amended by adding at the end the following new
paragraph:
``(11) Procedures under which the agency
administering the State plan approved under this part
may execute a withholding order without advance notice
to the obligor, including issuing the withholding order
through electronic means.''.
(b) Definition of Income.--
(1) In general.--Section 466(b)(8) (42 U.S.C.
666(b)(8)) is amended to read as follows:
``(8) For purposes of subsection (a) and this
subsection, the term `income' means any periodic form
of payment due to an individual, regardless of source,
including wages, salaries, commissions, bonuses,
worker's compensation, disability, payments pursuant to
a pension or retirement program, and interest.''.
(2) Conforming amendments.--
(A) Subsections (a)(8)(A), (a)(8)(B)(i),
(b)(3)(A), (b)(3)(B), (b)(6)(A)(i), and
(b)(6)(C), and (b)(7) of section 466 (42 U.S.C.
666(a)(8)(A), (a)(8)(B)(i), (b)(3)(A),
(b)(3)(B), (b)(6)(A)(i), and (b)(6)(C), and
(b)(7)) are each amended by striking ``wages''
each place such term appears and inserting
``income''.
(B) Section 466(b)(1) (42 U.S.C. 666(b)(1))
is amended by striking ``wages (as defined by
the State for purposes of this section)'' and
inserting ``income''.
(c) Conforming Amendment.--Section 466(c) (42 U.S.C.
666(c)) is repealed.
SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by inserting
after paragraph (11) the following new paragraph:
``(12) Locator information from interstate
networks.--Procedures to ensure that all Federal and
State agencies conducting activities under this part
have access to any system used by the State to locate
an individual for purposes relating to motor vehicles
or law enforcement.''.
SEC. 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 amended by
inserting ``Federal'' before ``Parent'' each place such
term appears.
(2) Section 453 (42 U.S.C. 653) is amended in the
heading by adding ``federal'' before ``parent''.
(f) New Components.--Section 453 (42 U.S.C. 653), as
amended by subsection (d) of this section, is amended by adding
at the end the following new subsections:
``(h) Federal Case Registry of Child Support Orders.--
``(1) In general.--Not later than October 1, 1998,
in order to assist States in administering programs
under State plans approved under this part and programs
funded under part A, and for the other purposes
specified in this section, the Secretary shall
establish and maintain in the Federal Parent Locator
Service an automated registry (which shall be known as
the `Federal Case Registry of Child Support Orders'),
which shall contain abstracts of support orders and
other information described in paragraph (2) with
respect to each case in each State case registry
maintained pursuant to section 454A(e), as furnished
(and regularly updated), pursuant to section 454A(f),
by State agencies administering programs under this
part.
``(2) Case information.--The information referred
to in paragraph (1) with respect to a case shall be
such information as the Secretary may specify in
regulations (including the names, social security
numbers or other uniform identification numbers, and
State case identification numbers) to identify the
individuals who owe or are owed support (or with
respect to or on behalf of whom support obligations are
sought to be established), and the State or States
which have the case.
``(i) National Directory of New Hires.--
``(1) In general.--In order to assist States in
administering programs under State plans approved under
this part and programs funded under part A, and for the
other purposes specified in this section, the Secretary
shall, not later than October 1, 1997, establish and
maintain in the Federal Parent Locator Service an
automated directory to be known as the National
Directory of New Hires, which shall contain the
information supplied pursuant to section 453A(g)(2).
``(2) Entry of data.--Information shall be entered
into the data base maintained by the National Directory
of New Hires within 2 business days of receipt pursuant
to section 453A(g)(2).
``(3) Administration of federal tax laws.--The
Secretary of the Treasury shall have access to the
information in the National Directory of New Hires for
purposes of administering section 32 of the Internal
Revenue Code of 1986, or the advance payment of the
earned income tax credit under section 3507 of such
Code, and verifying a claim with respect to employment
in a tax return.
``(4) List of multistate employers.--The Secretary
shall maintain within the National Directory of New
Hires a list of multistate employers that report
information regarding newly hired employees pursuant to
section 453A(b)(1)(B), and the State which each such
employer has designated to receive such information.
``(j) Information Comparisons and Other Disclosures.--
``(1) Verification by social security
administration.--
``(A) In general.--The Secretary shall
transmit information on individuals and
employers maintained under this section to the
Social Security Administration to the extent
necessary for verification in accordance with
subparagraph (B).
``(B) Verification by ssa.--The Social
Security Administration shall verify the
accuracy of, correct, or supply to the extent
possible, and report to the Secretary, the
following information supplied by the Secretary
pursuant to subparagraph (A):
``(i) The name, social security
number, and birth date of each such
individual.
``(ii) The employer identification
number of each such employer.
``(2) Information comparisons.--For the purpose of
locating individuals in a paternity establishment case
or a case involving the establishment, modification, or
enforcement of a support order, the Secretary shall--
``(A) compare information in the National
Directory of New Hires against information in
the support case abstracts in the Federal Case
Registry of Child Support Orders not less often
than every 2 business days; and
``(B) within 2 business days after such a
comparison reveals a match with respect to an
individual, report the information to the State
agency responsible for the case.
``(3) Information comparisons and disclosures of
information in all registries for title iv program
purposes.--To the extent and with the frequency that
the Secretary determines to be effective in assisting
States to carry out their responsibilities under
programs operated under this part and programs funded
under part A, the Secretary shall--
``(A) compare the information in each
component of the Federal Parent Locator Service
maintained under this section against the
information in each other such component (other
than the comparison required by paragraph (2)),
and report instances in which such a comparison
reveals a match with respect to an individual
to State agencies operating such programs; and
``(B) disclose information in such
registries to such State agencies.
``(4) Provision of new hire information to the
social security administration.--The National Directory
of New Hires shall provide the Commissioner of Social
Security with all information in the National
Directory.
``(5) Research.--The Secretary may provide access
to information reported by employers pursuant to
section 453A(b) for research purposes found by the
Secretary to be likely to contribute to achieving the
purposes of part A or this part, but without personal
identifiers.
``(k) Fees.--
``(1) For ssa verification.--The Secretary shall
reimburse the Commissioner of Social Security, at a
rate negotiated between the Secretary and the
Commissioner, for the costs incurred by the
Commissioner in performing the verification services
described in subsection (j).
``(2) For information from state directories of new
hires.--The Secretary shall reimburse costs incurred by
State directories of new hires in furnishing
information as required by subsection (j)(3), at rates
which the Secretary determines to be reasonable (which
rates shall not include payment for the costs of
obtaining, compiling, or maintaining such information).
``(3) For information furnished to state and
federal agencies.--A State or Federal agency that
receives information from the Secretary pursuant to
this section shall reimburse the Secretary for costs
incurred by the Secretary in furnishing the
information, at rates which the Secretary determines to
be reasonable (which rates shall include payment for
the costs of obtaining, verifying, maintaining, and
comparing the information).
``(l) Restriction on Disclosure and Use.--Information in
the Federal Parent Locator Service, and information resulting
from comparisons using such information, shall not be used or
disclosed except as expressly provided in this section, subject
to section 6103 of the Internal Revenue Code of 1986.
``(m) Information Integrity and Security.--The Secretary
shall establish and implement safeguards with respect to the
entities established under this section designed to--
``(1) ensure the accuracy and completeness of
information in the Federal Parent Locator Service; and
``(2) restrict access to confidential information
in the Federal Parent Locator Service to authorized
persons, and restrict use of such information to
authorized purposes.
``(n) Federal Government Reporting.--Each department,
agency, and instrumentality of the United States shall on a
quarterly basis report to the Federal Parent Locator Service
the name and social security number of each employee and the
wages paid to the employee during the previous quarter, except
that such a report shall not be filed with respect to an
employee of a department, agency, or instrumentality performing
intelligence or counterintelligence functions, if the head of
such department, agency, or instrumentality has determined that
filing such a report could endanger the safety of the employee
or compromise an ongoing investigation or intelligence
mission.''.
(g) Conforming Amendments.--
(1) To part d of title iv of the social security
act.--
(A) Section 454(8)(B) (42 U.S.C. 654(8)(B))
is amended to read as follows:
``(B) the Federal Parent Locator Service
established under section 453;''.
(B) Section 454(13) (42 U.S.C. 654(13)) is
amended by inserting ``and provide that
information requests by parents who are
residents of other States be treated with the
same priority as requests by parents who are
residents of the State submitting the plan''
before the semicolon.
(2) To federal unemployment tax act.--Section
3304(a)(16) of the Internal Revenue Code of 1986 is
amended--
(A) by striking ``Secretary of Health,
Education, and Welfare'' each place such term
appears and inserting ``Secretary of Health and
Human Services'';
(B) in subparagraph (B), by striking ``such
information'' and all that follows and
inserting ``information furnished under
subparagraph (A) or (B) is used only for the
purposes authorized under such subparagraph;'';
(C) by striking ``and'' at the end of
subparagraph (A);
(D) by redesignating subparagraph (B) as
subparagraph (C); and
(E) by inserting after subparagraph (A) the
following new subparagraph:
``(B) wage and unemployment compensation
information contained in the records of such agency
shall be furnished to the Secretary of Health and Human
Services (in accordance with regulations promulgated by
such Secretary) as necessary for the purposes of the
National Directory of New Hires established under
section 453(i) of the Social Security Act, and''.
(3) To state grant program under title iii of the
social security act.--Subsection (h) of section 303 (42
U.S.C. 503) is amended to read as follows:
``(h)(1) The State agency charged with the administration
of the State law shall, on a reimbursable basis--
``(A) disclose quarterly, to the Secretary of
Health and Human Services, wage and claim information,
as required pursuant to section 453(i)(1), contained in
the records of such agency;
``(B) ensure that information provided pursuant to
subparagraph (A) meets such standards relating to
correctness and verification as the Secretary of Health
and Human Services, with the concurrence of the
Secretary of Labor, may find necessary; and
``(C) establish such safeguards as the Secretary of
Labor determines are necessary to insure that
information disclosed under subparagraph (A) is used
only for purposes of section 453(i)(1) in carrying out
the child support enforcement program under title IV.
``(2) Whenever the Secretary of Labor, after reasonable
notice and opportunity for hearing to the State agency charged
with the administration of the State law, finds that there is a
failure to comply substantially with the requirements of
paragraph (1), the Secretary of Labor shall notify such State
agency that further payments will not be made to the State
until the Secretary of Labor is satisfied that there is no
longer any such failure. Until the Secretary of Labor is so
satisfied, the Secretary shall make no future certification to
the Secretary of the Treasury with respect to the State.
``(3) For purposes of this subsection--
``(A) the term `wage information' means information
regarding wages paid to an individual, the social
security account number of such individual, and the
name, address, State, and the Federal employer
identification number of the employer paying such wages
to such individual; and
``(B) the term `claim information' means
information regarding whether an individual is
receiving, has received, or has made application for,
unemployment compensation, the amount of any such
compensation being received (or to be received by such
individual), and the individual's current (or most
recent) home address.''.
(4) Disclosure of certain information to agents of
child support enforcement agencies.--
(A) In general.--Paragraph (6) of section
6103(l) of the Internal Revenue Code of 1986
(relating to disclosure of return information
to Federal, State, and local child support
enforcement agencies) is amended by
redesignating subparagraph (B) as subparagraph
(C) and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Disclosure to certain agents.--The
following information disclosed to any child
support enforcement agency under subparagraph
(A) with respect to any individual with respect
to whom child support obligations are sought to
be established or enforced may be disclosed by
such agency to any agent of such agency which
is under contract with such agency to carry out
the purposes described in subparagraph (C):
``(i) The address and social
security account number (or numbers) of
such individual.
``(ii) The amount of any reduction
under section 6402(c) (relating to
offset of past-due support against
overpayments) in any overpayment
otherwise payable to such individual.''
(B) Conforming amendments.--
(i) Paragraph (3) of section
6103(a) of such Code is amended by
striking ``(l)(12)'' and inserting
``paragraph (6) or (12) of subsection
(l)''.
(ii) Subparagraph (C) of section
6103(l)(6) of such Code, as
redesignated by subsection (a), is
amended to read as follows:
``(C) Restriction on disclosure.--
Information may be disclosed under this
paragraph only for purposes of, and to the
extent necessary in, establishing and
collecting child support obligations from, and
locating, individuals owing such obligations.''
(iii) The material following
subparagraph (F) of section 6103(p)(4)
of such Code is amended by striking
``subsection (l)(12)(B)'' and inserting
``paragraph (6)(A) or (12)(B) of
subsection (l)''.
(h) Requirement for Cooperation.--The Secretary of Labor
and the Secretary of Health and Human Services shall work
jointly to develop cost-effective and efficient methods of
accessing the information in the various State directories of
new hires and the National Directory of New Hires as
established pursuant to the amendments made by this subtitle.
In developing these methods the Secretaries shall take into
account the impact, including costs, on the States, and shall
also consider the need to insure the proper and authorized use
of wage record information.
SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR USE IN
CHILD SUPPORT ENFORCEMENT.
Section 466(a) (42 U.S.C. 666(a)), as amended by section
315 of this Act, is amended by inserting after paragraph (12)
the following new paragraph:
``(13) Recording of social security numbers in
certain family matters.--Procedures requiring that the
social security number of--
``(A) any applicant for a professional
license, commercial driver's license,
occupational license, or marriage license be
recorded on the application;
``(B) any individual who is subject to a
divorce decree, support order, or paternity
determination or acknowledgment be placed in
the records relating to the matter; and
``(C) any individual who has died be placed
in the records relating to the death and be
recorded on the death certificate.
For purposes of subparagraph (A), if a State allows the
use of a number other than the social security number,
the State shall so advise any applicants.''.
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.--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.''.
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 2nd
undesignated paragraph the following:
`` `child's home State' means the State in which a child
lived with a parent or a person acting as parent for at least 6
consecutive months immediately preceding the time of filing of
a petition or comparable pleading for support and, if a child
is less than 6 months old, the State in which the child lived
from birth with any of them. A period of temporary absence of
any of them is counted as part of the 6-month period.'';
(3) in subsection (c), by inserting ``by a court of
a State'' before ``is made'';
(4) in subsection (c)(1), by inserting ``and
subsections (e), (f), and (g)'' after ``located'';
(5) in subsection (d)--
(A) by inserting ``individual'' before
``contestant''; and
(B) by striking ``subsection (e)'' and
inserting ``subsections (e) and (f)'';
(6) in subsection (e), by striking ``make a
modification of a child support order with respect to a
child that is made'' and inserting ``modify a child
support order issued'';
(7) in subsection (e)(1), by inserting ``pursuant
to subsection (i)'' before the semicolon;
(8) in subsection (e)(2)--
(A) by inserting ``individual'' before
``contestant'' each place such term appears;
and
(B) by striking ``to that court's making
the modification and assuming'' and inserting
``with the State of continuing, exclusive
jurisdiction for a court of another State to
modify the order and assume'';
(9) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively;
(10) by inserting after subsection (e) the
following new subsection:
``(f) Recognition of Child Support Orders.--If 1 or more
child support orders have been issued with regard to an obligor
and a child, a court shall apply the following rules in
determining which order to recognize for purposes of
continuing, exclusive jurisdiction and enforcement:
``(1) If only 1 court has issued a child support
order, the order of that court must be recognized.
``(2) If 2 or more courts have issued child support
orders for the same obligor and child, and only 1 of
the courts would have continuing, exclusive
jurisdiction under this section, the order of that
court must be recognized.
``(3) If 2 or more courts have issued child support
orders for the same obligor and child, and more than 1
of the courts would have continuing, exclusive
jurisdiction under this section, an order issued by a
court in the current home State of the child must be
recognized, but if an order has not been issued in the
current home State of the child, the order most
recently issued must be recognized.
``(4) If 2 or more courts have issued child support
orders for the same obligor and child, and none of the
courts would have continuing, exclusive jurisdiction
under this section, a court may issue a child support
order, which must be recognized.
``(5) The court that has issued an order recognized
under this subsection is the court having continuing,
exclusive jurisdiction.'';
(11) in subsection (g) (as so redesignated)--
(A) by striking ``Prior'' and inserting
``Modified''; and
(B) by striking ``subsection (e)'' and
inserting ``subsections (e) and (f)'';
(12) in subsection (h) (as so redesignated)--
(A) in paragraph (2), by inserting
``including the duration of current payments
and other obligations of support'' before the
comma; and
(B) in paragraph (3), by inserting
``arrears under'' after ``enforce''; and
(13) by adding at the end the following new
subsection:
``(i) Registration for Modification.--If there is no
individual contestant or child residing in the issuing State,
the party or support enforcement agency seeking to modify, or
to modify and enforce, a child support order issued in another
State shall register that order in a State with jurisdiction
over the nonmovant for the purpose of modification.''.
SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
315 and 317 of this Act, is amended by inserting after
paragraph (13) 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) (as amended by section 346(a) of this Act) and
inserting ``; and''; and
(3) by adding at the end the following new
paragraph:
``(11) not later than October 1, 1996, after
consulting with the State directors of programs under
this part, promulgate forms to be used by States in
interstate cases for--
``(A) collection of child support through
income withholding;
``(B) imposition of liens; and
``(C) administrative subpoenas.''.
(b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is
amended--
(1) by striking ``and'' at the end of subparagraph
(C);
(2) by inserting ``and'' at the end of subparagraph
(D); and
(3) by adding at the end the following new
subparagraph:
``(E) not later than March 1, 1997, in
using the forms promulgated pursuant to section
452(a)(11) for income withholding, imposition
of liens, and issuance of administrative
subpoenas in interstate child support cases;''.
SEC. 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 of
paternity or to establishment, modification, or
enforcement of support orders, without the necessity of
obtaining an order from any other judicial or
administrative tribunal, and to recognize and enforce
the authority of State agencies of other States to take
the following actions:
``(A) Genetic testing.--To order genetic
testing for the purpose of paternity
establishment as provided in section 466(a)(5).
``(B) Financial or other information.--To
subpoena any financial or other information
needed to establish, modify, or enforce a
support order, and to impose penalties for
failure to respond to such a subpoena.
``(C) Response to state agency request.--To
require all entities in the State (including
for-profit, nonprofit, and governmental
employers) to provide promptly, in response to
a request by the State agency of that or any
other State administering a program under this
part, information on the employment,
compensation, and benefits of any individual
employed by such entity as an employee or
contractor, and to sanction failure to respond
to any such request.
``(D) Access to information contained in
certain records.--To obtain access, subject to
safeguards on privacy and information security,
and subject to the nonliability of entities
that afford such access under this
subparagraph, to information contained in the
following records (including automated access,
in the case of records maintained in automated
data bases):
``(i) Records of other State and
local government agencies, including--
``(I) vital statistics
(including records of marriage,
birth, and divorce);
``(II) State and local tax
and revenue records (including
information on residence
address, employer, income and
assets);
``(III) records concerning
real and titled personal
property;
``(IV) records of
occupational and professional
licenses, and records
concerning the ownership and
control of corporations,
partnerships, and other
business entities;
``(V) employment security
records;
``(VI) records of agencies
administering public assistance
programs;
``(VII) records of the
motor vehicle department; and
``(VIII) corrections
records.
``(ii) Certain records held by
private entities with respect to
individuals who owe or are owed support
(or against or with respect to whom a
support obligation is sought),
consisting of--
``(I) the names and
addresses of such individuals
and the names and addresses of
the employers of such
individuals, as appearing in
customer records of public
utilities and cable television
companies, pursuant to an
administrative subpoena
authorized by subparagraph (B);
and
``(II) information
(including information on
assets and liabilities) on such
individuals held by financial
institutions.
``(E) Change in payee.--In cases in which
support is subject to an assignment in order to
comply with a requirement imposed pursuant to
part A or section 1912, or to a requirement to
pay through the State disbursement unit
established pursuant to section 454B, upon
providing notice to obligor and obligee, to
direct the obligor or other payor to change the
payee to the appropriate government entity.
``(F) Income withholding.--To order income
withholding in accordance with subsections
(a)(1)(A) and (b) of section 466.
``(G) Securing assets.--In cases in which
there is a support arrearage, to secure assets
to satisfy the arrearage by--
``(i) intercepting or seizing
periodic or lump-sum payments from--
``(I) a State or local
agency, including unemployment
compensation, workers'
compensation, and other
benefits; and
``(II) judgments,
settlements, and lotteries;
``(ii) attaching and seizing assets
of the obligor held in financial
institutions;
``(iii) attaching public and
private retirement funds; and
``(iv) imposing liens in accordance
with subsection (a)(4) and, in
appropriate cases, to force sale of
property and distribution of proceeds.
``(H) Increase monthly payments.--For the
purpose of securing overdue support, to
increase the amount of monthly support payments
to include amounts for arrearages, subject to
such conditions or limitations as the State may
provide.
Such procedures shall be subject to due process
safeguards, including (as appropriate) requirements for
notice, opportunity to contest the action, and
opportunity for an appeal on the record to an
independent administrative or judicial tribunal.
``(2) Substantive and procedural rules.--The
expedited procedures required under subsection (a)(2)
shall include the following rules and authority,
applicable with respect to all proceedings to establish
paternity or to establish, modify, or enforce support
orders:
``(A) Locator information; presumptions
concerning notice.--Procedures under which--
``(i) each party to any paternity
or child support proceeding is required
(subject to privacy safeguards) to file
with the tribunal and the State case
registry upon entry of an order, and to
update as appropriate, information on
location and identity of the party,
including social security number,
residential and mailing addresses,
telephone number, driver's license
number, and name, address, and
telephone number of employer; and
``(ii) in any subsequent child
support enforcement action between the
parties, upon sufficient showing that
diligent effort has been made to
ascertain the location of such a party,
the tribunal may deem State due process
requirements for notice and service of
process to be met with respect to the
party, upon delivery of written notice
to the most recent residential or
employer address filed with the
tribunal pursuant to clause (i).
``(B) Statewide jurisdiction.--Procedures
under which--
``(i) the State agency and any
administrative or judicial tribunal
with authority to hear child support
and paternity cases exerts statewide
jurisdiction over the parties; and
``(ii) in a State in which orders
are issued by courts or administrative
tribunals, a case may be transferred
between local jurisdictions in the
State without need for any additional
filing by the petitioner, or service of
process upon the respondent, to retain
jurisdiction over the parties.
``(3) Coordination with erisa.--Notwithstanding
subsection (d) of section 514 of the Employee
Retirement Income Security Act of 1974 (relating to
effect on other laws), nothing in this subsection shall
be construed to alter, amend, modify, invalidate,
impair, or supersede subsections (a), (b), and (c) of
such section 514 as it applies with respect to any
procedure referred to in paragraph (1) and any
expedited procedure referred to in paragraph (2),
except to the extent that such procedure would be
consistent with the requirements of section 206(d)(3)
of such Act (relating to qualified domestic relations
orders) or the requirements of section 609(a) of 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 and
other exceptions for refusing to
cooperate) to submit to genetic tests
upon the request of any such party, if
the request is supported by a sworn
statement by the party--
``(I) alleging paternity,
and setting forth facts
establishing a reasonable
possibility of the requisite
sexual contact between the
parties; or
``(II) denying paternity,
and setting forth facts
establishing a reasonable
possibility of the nonexistence
of sexual contact between the
parties.
``(ii) Other requirements.--
Procedures which require the State
agency, in any case in which the agency
orders genetic testing--
``(I) to pay costs of such
tests, subject to recoupment
(if the State so elects) from
the alleged father if paternity
is established; and
``(II) to obtain additional
testing in any case if an
original test result is
contested, upon request and
advance payment by the
contestant.
``(C) Voluntary paternity acknowledgment.--
``(i) Simple civil process.--
Procedures for a simple civil process
for voluntarily acknowledging paternity
under which the State must provide
that, before a mother and a putative
father can sign an acknowledgment of
paternity, the mother and the putative
father must be given notice, orally and
in writing, of the alternatives to, the
legal consequences of, and the rights
(including, if 1 parent is a minor, any
rights afforded due to minority status)
and responsibilities that arise from,
signing the acknowledgment.
``(ii) Hospital-based program.--
Such procedures must include a
hospital-based program for the
voluntary acknowledgment of paternity
focusing on the period immediately
before or after the birth of a child.
``(iii) Paternity establishment
services.--
``(I) State-offered
services.--Such procedures must
require the State agency
responsible for maintaining
birth records to offer
voluntary paternity
establishment services.
``(II) Regulations.--
``(aa) Services
offered by hospitals
and birth record
agencies.--The
Secretary shall
prescribe regulations
governing voluntary
paternity establishment
services offered by
hospitals and birth
record agencies.
``(bb) Services
offered by other
entities.--The
Secretary shall
prescribe regulations
specifying the types of
other entities that may
offer voluntary
paternity establishment
services, and governing
the provision of such
services, which shall
include a requirement
that such an entity
must use the same
notice provisions used
by, use the same
materials used by,
provide the personnel
providing such services
with the same training
provided by, and
evaluate the provision
of such services in the
same manner as the
provision of such
services is evaluated
by, voluntary paternity
establishment programs
of hospitals and birth
record agencies.
``(iv) Use of paternity
acknowledgment affidavit.--Such
procedures must require the State to
develop and use an affidavit for the
voluntary acknowledgment of paternity
which includes the minimum requirements
of the affidavit specified by the
Secretary under section 452(a)(7) for
the voluntary acknowledgment of
paternity, and to give full faith and
credit to such an affidavit signed in
any other State according to its
procedures.
``(D) Status of signed paternity
acknowledgment.--
``(i) Inclusion in birth records.--
Procedures under which the name of the
father shall be included on the record
of birth of the child of unmarried
parents only if--
``(I) the father and mother
have signed a voluntary
acknowledgment of paternity; or
``(II) a court or an
administrative agency of
competent jurisdiction has
issued an adjudication of
paternity.
Nothing in this clause shall preclude a
State agency from obtaining an
admission of paternity from the father
for submission in a judicial or
administrative proceeding, or prohibit
the issuance of an order in a judicial
or administrative proceeding which
bases a legal finding of paternity on
an admission of paternity by the father
and any other additional showing
required by State law.
``(ii) Legal finding of
paternity.--Procedures under which a
signed voluntary acknowledgment of
paternity is considered a legal finding
of paternity, subject to the right of
any signatory to rescind the
acknowledgment within the earlier of--
``(I) 60 days; or
``(II) the date of an
administrative or judicial
proceeding relating to the
child (including a proceeding
to establish a support order)
in which the signatory is a
party.
``(iii) Contest.--Procedures under
which, after the 60-day period referred
to in clause (ii), a signed voluntary
acknowledgment of paternity may be
challenged in court only on the basis
of fraud, duress, or material mistake
of fact, with the burden of proof upon
the challenger, and under which the
legal responsibilities (including child
support obligations) of any signatory
arising from the acknowledgment may not
be suspended during the challenge,
except for good cause shown.
``(E) Bar on acknowledgment ratification
proceedings.--Procedures under which judicial
or administrative proceedings are not required
or permitted to ratify an unchallenged
acknowledgment of paternity.
``(F) Admissibility of genetic testing
results.--Procedures--
``(i) requiring the admission into
evidence, for purposes of establishing
paternity, of the results of any
genetic test that is--
``(I) of a type generally
acknowledged as reliable by
accreditation bodies designated
by the Secretary; and
``(II) performed by a
laboratory approved by such an
accreditation body;
``(ii) requiring an objection to
genetic testing results to be made in
writing not later than a specified
number of days before any hearing at
which the results may be introduced
into evidence (or, at State option, not
later than a specified number of days
after receipt of the results); and
``(iii) making the test results
admissible as evidence of paternity
without the need for foundation
testimony or other proof of
authenticity or accuracy, unless
objection is made.
``(G) Presumption of paternity in certain
cases.--Procedures which create a rebuttable
or, at the option of the State, conclusive
presumption of paternity upon genetic testing
results indicating a threshold probability that
the alleged father is the father of the child.
``(H) Default orders.--Procedures requiring
a default order to be entered in a paternity
case upon a showing of service of process on
the defendant and any additional showing
required by State law.
``(I) No right to jury trial.--Procedures
providing that the parties to an action to
establish paternity are not entitled to a trial
by jury.
``(J) Temporary support order based on
probable paternity in contested cases.--
Procedures which require that a temporary order
be issued, upon motion by a party, requiring
the provision of child support pending an
administrative or judicial determination of
parentage, if there is clear and convincing
evidence of paternity (on the basis of genetic
tests or other evidence).
``(K) Proof of certain support and
paternity establishment costs.--Procedures
under which bills for pregnancy, childbirth,
and genetic testing are admissible as evidence
without requiring third-party foundation
testimony, and shall constitute prima facie
evidence of amounts incurred for such services
or for testing on behalf of the child.
``(L) Standing of putative fathers.--
Procedures ensuring that the putative father
has a reasonable opportunity to initiate a
paternity action.
``(M) Filing of acknowledgments and
adjudications in state registry of birth
records.--Procedures under which voluntary
acknowledgments and adjudications of paternity
by judicial or administrative processes are
filed with the State registry of birth records
for comparison with information in the State
case registry.''.
(b) National Paternity Acknowledgment Affidavit.--Section
452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ``, and
specify the minimum requirements of an affidavit to be used for
the voluntary acknowledgment of paternity which shall include
the social security number of each parent and, after
consultation with the States, other common elements as
determined by such designee'' before the semicolon.
(c) Conforming Amendment.--Section 468 (42 U.S.C. 668) is
amended by striking ``a simple civil process for voluntarily
acknowledging paternity and''.
SEC. 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 PART A
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 of this title or the State
program under title XIX is cooperating in good
faith with the State in establishing the
paternity of, or in establishing, modifying, or
enforcing a support order for, any child of the
individual by providing the State agency with
the name of, and such other information as the
State agency may require with respect to, the
noncustodial parent of the child, subject to
good cause and other exceptions which--
``(i) shall be defined, taking into
account the best interests of the
child, and
``(ii) shall be applied in each
case,
by, at the option of the State, the State
agency administering the State program under
part A, this part, or title XIX;
``(B) shall require the individual to
supply additional necessary information and
appear at interviews, hearings, and legal
proceedings;
``(C) shall require the individual and the
child to submit to genetic tests pursuant to
judicial or administrative order;
``(D) may request that the individual sign
a voluntary acknowledgment of paternity, after
notice of the rights and consequences of such
an acknowledgment, but may not require the
individual to sign an acknowledgment or
otherwise relinquish the right to genetic tests
as a condition of cooperation and eligibility
for assistance under the State program funded
under part A, or the State program under title
XIX; and
``(E) shall promptly notify the individual,
the State agency administering the State
program funded under part A, and the State
agency administering the State program under
title XIX, of each such determination, and if
noncooperation is determined, the basis
therefor.''.
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 March 1, 1997, the Secretary shall report on the new
system to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate.
(b) Conforming Amendments to Present System.--Section 458
(42 U.S.C. 658) is amended--
(1) in subsection (a), by striking ``aid to
families with dependent children under a State plan
approved under part A of this title'' and inserting
``assistance under a program funded under part A'';
(2) in subsection (b)(1)(A), by striking ``section
402(a)(26)'' and inserting ``section 408(a)(4)'';
(3) in subsections (b) and (c)--
(A) by striking ``AFDC collections'' each
place it appears and inserting ``title IV-A
collections'', and
(B) by striking ``non-AFDC collections''
each place it appears and inserting ``non-title
IV-A collections''; and
(4) in subsection (c), by striking ``combined AFDC/
non-AFDC administrative costs'' both places it appears
and inserting ``combined title IV-A/non-title IV-A
administrative costs''.
(c) Calculation of Paternity Establishment Percentage.--
(1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A))
is amended by striking ``75'' and inserting ``90''.
(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is
amended--
(A) by redesignating subparagraphs (B)
through (E) as subparagraphs (C) through (F),
respectively, and by inserting after
subparagraph (A) the following new
subparagraph:
``(B) for a State with a paternity establishment
percentage of not less than 75 percent but less than 90
percent for such fiscal year, the paternity
establishment percentage of the State for the
immediately preceding fiscal year plus 2 percentage
points;''; and
(B) by adding at the end the following new
flush sentence:
``In determining compliance under this section, a State may use
as its paternity establishment percentage either the State's
IV-D paternity establishment percentage (as defined in
paragraph (2)(A)) or the State's statewide paternity
establishment percentage (as defined in paragraph (2)(B)).''.
(3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended--
(A) in subparagraph (A)--
(i) in the matter preceding clause
(i)--
(I) by striking ``paternity
establishment percentage'' and
inserting ``IV-D paternity
establishment percentage''; and
(II) by striking ``(or all
States, as the case may be)'';
and
(ii) by striking ``and'' at the
end; and
(B) by redesignating subparagraph (B) as
subparagraph (C) and by inserting after
subparagraph (A) the following new
subparagraph:
``(B) the term `statewide paternity establishment
percentage' means, with respect to a State for a fiscal
year, the ratio (expressed as a percentage) that the
total number of minor children--
``(i) who have been born out of wedlock,
and
``(ii) the paternity of whom has been
established or acknowledged during the fiscal
year,
bears to the total number of children born out of
wedlock during the preceding fiscal year; and''.
(4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is
amended--
(A) by striking subparagraph (A) and
redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively; and
(B) in subparagraph (A) (as so
redesignated), by striking ``the percentage of
children born out-of-wedlock in a State'' and
inserting ``the percentage of children in a
State who are born out of wedlock or for whom
support has not been established''.
(d) Effective Dates.--
(1) Incentive adjustments.--
(A) In general.--The system developed under
subsection (a) and the amendments made by
subsection (b) shall become effective on
October 1, 1999, 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 2000.
(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 paternity
establishment percentages) to the extent
necessary for purposes of sections 452(g) and
458;''.
(b) Federal Activities.--Section 452(a)(4) (42 U.S.C.
652(a)(4)) is amended to read as follows:
``(4)(A) review data and calculations transmitted
by State agencies pursuant to section 454(15)(B) on
State program accomplishments with respect to
performance indicators for purposes of subsection (g)
of this section and section 458;
``(B) review annual reports submitted pursuant to
section 454(15)(A) and, as appropriate, provide to the
State comments, recommendations for additional or
alternative corrective actions, and technical
assistance; and
``(C) conduct audits, in accordance with the
Government auditing standards of the Comptroller
General of the United States--
``(i) at least once every 3 years (or more
frequently, in the case of a State which fails
to meet the requirements of this part
concerning performance standards and
reliability of program data) to assess the
completeness, reliability, and security of the
data and the accuracy of the reporting systems
used in calculating performance indicators
under subsection (g) of this section and
section 458;
``(ii) of the adequacy of financial
management of the State program operated under
the State plan approved under this part,
including assessments of--
``(I) whether Federal and other
funds made available to carry out the
State program are being appropriately
expended, and are properly and fully
accounted for; and
``(II) whether collections and
disbursements of support payments are
carried out correctly and are fully
accounted for; and
``(iii) for such other purposes as the
Secretary may find necessary;''.
(c) Effective Date.--The amendments made by this section
shall be effective with respect to calendar quarters beginning
12 months or more after the date of the enactment of this Act.
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 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, 2000, which meets all
requirements of this part enacted on or before
the date of the enactment of the Personal
Responsibility and Work Opportunity Act of
1996, except that such deadline shall be
extended by 1 day for each day (if any) by
which the Secretary fails to meet the deadline
imposed by section 344(a)(3) of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996;''.
(b) Special Federal Matching Rate for Development Costs of
Automated Systems.--
(1) In general.--Section 455(a) (42 U.S.C. 655(a))
is amended--
(A) in paragraph (1)(B)--
(i) by striking ``90 percent'' and
inserting ``the percent specified in
paragraph (3)'';
(ii) by striking ``so much of'';
and
(iii) by striking ``which the
Secretary'' and all that follows and
inserting ``, and''; and
(B) by adding at the end the following new
paragraph:
``(3)(A) The Secretary shall pay to each State, for each
quarter in fiscal years 1996 and 1997, 90 percent of so much of
the State expenditures described in paragraph (1)(B) as the
Secretary finds are for a system meeting the requirements
specified in section 454(16) (as in effect on September 30,
1995) but limited to the amount approved for States in the
advance planning documents of such States submitted on or
before September 30, 1995.
``(B)(i) The Secretary shall pay to each State, for each
quarter in fiscal years 1996 through 2001, the percentage
specified in clause (ii) of so much of the State expenditures
described in paragraph (1)(B) as the Secretary finds are for a
system meeting the requirements of sections 454(16) and 454A.
``(ii) The percentage specified in this clause is 80
percent.''.
(2) Temporary limitation on payments under special
federal matching rate.--
(A) In general.--The Secretary of Health
and Human Services may not pay more than
$400,000,000 in the aggregate under section
455(a)(3)(B) of the Social Security Act for
fiscal years 1996 through 2001.
(B) Allocation of limitation among
states.--The total amount payable to a State
under section 455(a)(3)(B) of such Act for
fiscal years 1996 through 2001 shall not exceed
the limitation determined for the State by the
Secretary of Health and Human Services in
regulations.
(C) Allocation formula.--The regulations
referred to in subparagraph (B) shall prescribe
a formula for allocating the amount specified
in subparagraph (A) among States with plans
approved under part D of title IV of the Social
Security Act, which shall take into account--
(i) the relative size of State
caseloads under such part; and
(ii) the level of automation needed
to meet the automated data processing
requirements of such part.
(c) Conforming Amendment.--Section 123(c) of the Family
Support Act of 1988 (102 Stat. 2352; Public Law 100-485) is
repealed.
SEC. 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.
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
cases'';
(ii) by striking ``cases where the
child was formerly receiving'' and
inserting ``or formerly received'';
(iii) by inserting ``or 1912''
after ``471(a)(17)''; and
(iv) by inserting ``for'' before
``all other'';
(B) in each of clauses (i) and (ii), by
striking ``, and the total amount of such
obligations'';
(C) in clause (iii), by striking
``described in'' and all that follows and
inserting ``in which support was collected
during the fiscal year;'';
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause
(vii), and inserting after clause (iii) the
following new clauses:
``(iv) the total amount of support
collected during such fiscal year and
distributed as current support;
``(v) the total amount of support
collected during such fiscal year and
distributed as arrearages;
``(vi) the total amount of support
due and unpaid for all fiscal years;
and''.
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G))
is amended by striking ``on the use of Federal courts
and''.
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is
amended--
(A) in subparagraph (H), by striking
``and'';
(B) in subparagraph (I), by striking the
period and inserting ``; and''; and
(C) by inserting after subparagraph (I) the
following new subparagraph:
``(J) compliance, by State, with the
standards established pursuant to subsections
(h) and (i).''.
(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is
amended by striking 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 1997 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.--
``(A) 3-year cycle.--
``(i) In general.--Procedures under
which every 3 years (or such shorter
cycle as the State may determine), upon
the request of either parent, or, if
there is an assignment under part A,
upon the request of the State agency
under the State plan or of either
parent, the State shall with respect to
a support order being enforced under
this part, taking into account the best
interests of the child involved--
``(I) review and, if
appropriate, adjust the order
in accordance with the
guidelines established pursuant
to section 467(a) if the amount
of the child support award
under the order differs from
the amount that would be
awarded in accordance with the
guidelines;
``(II) apply a cost-of-
living adjustment to the order
in accordance with a formula
developed by the State; or
``(III) 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
any threshold that may be
established by the State.
``(ii) Opportunity to request
review of adjustment.--If the State
elects to conduct the review under
subclause (II) or (III) of clause (i),
procedures which 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 in 3-year cycle
review.--Procedures which provide that
any adjustment under clause (i) shall
be made without a requirement for proof
or showing of a change in
circumstances.
``(B) Proof of substantial change in
circumstances necessary in request for review
outside 3-year cycle.--Procedures under which,
in the case of a request for a review, and if
appropriate, an adjustment outside the 3-year
cycle (or such shorter cycle as the State may
determine) under clause (i), the State shall
review and, if the requesting party
demonstrates a substantial change in
circumstances, adjust the order in accordance
with the guidelines established pursuant to
section 467(a).
``(C) Notice of right to review.--
Procedures which require the State to provide
notice not less than once every 3 years to the
parents subject to the order informing the
parents 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.
Part D of title IV (42 U.S.C. 651-669) is amended by adding
at the end the following:
``SEC. 469A. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING
FINANCIAL RECORDS TO STATE CHILD SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.
``(a) In General.--Notwithstanding any other provision of
Federal or State law, a financial institution shall not be
liable under any Federal or State law to any person for
disclosing any financial record of an individual to a State
child support enforcement agency attempting to establish,
modify, or enforce a child support obligation of such
individual.
``(b) Prohibition of Disclosure of Financial Record
Obtained by State Child Support Enforcement Agency.--A State
child support enforcement agency which obtains a financial
record of an individual from a financial institution pursuant
to subsection (a) may disclose such financial record only for
the purpose of, and to the extent necessary in, establishing,
modifying, or enforcing a child support obligation of such
individual.
``(c) Civil Damages for Unauthorized Disclosure.--
``(1) Disclosure by state officer or employee.--If
any person knowingly, or by reason of negligence,
discloses a financial record of an individual in
violation of subsection (b), such individual may bring
a civil action for damages against such person in a
district court of the United States.
``(2) No liability for good faith but erroneous
interpretation.--No liability shall arise under this
subsection with respect to any disclosure which results
from a good faith, but erroneous, interpretation of
subsection (b).
``(3) Damages.--In any action brought under
paragraph (1), upon a finding of liability on the part
of the defendant, the defendant shall be liable to the
plaintiff in an amount equal to the sum of--
``(A) the greater of--
``(i) $1,000 for each act of
unauthorized disclosure of a financial
record with respect to which such
defendant is found liable; or
``(ii) the sum of--
``(I) the actual damages
sustained by the plaintiff as a
result of such unauthorized
disclosure; plus
``(II) in the case of a
willful disclosure or a
disclosure which is the result
of gross negligence, punitive
damages; plus
``(B) the costs (including attorney's fees)
of the action.
``(d) Definitions.--For purposes of this section--
``(1) Financial institution.--The term `financial
institution' means--
``(A) a depository institution, as defined
in section 3(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(c));
``(B) an institution-affiliated party, as
defined in section 3(u) of such Act (12 U.S.C.
1813(u));
``(C) any Federal credit union or State
credit union, as defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752),
including an institution-affiliated party of
such a credit union, as defined in section
206(r) of such Act (12 U.S.C. 1786(r)); and
``(D) any benefit association, insurance
company, safe deposit company, money-market
mutual fund, or similar entity authorized to do
business in the State.
``(2) Financial record.--The term `financial
record' has the meaning given such term in section 1101
of the Right to Financial Privacy Act of 1978 (12
U.S.C. 3401).''.
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, or payable by, the
United States to any individual, there shall be
excluded amounts which--
``(A) are owed by the individual to the
United States;
``(B) are required by law to be, and are,
deducted from the remuneration or other payment
involved, including Federal employment taxes,
and fines and forfeitures ordered by court-
martial;
``(C) are properly withheld for Federal,
State, or local income tax purposes, if the
withholding of the amounts is authorized or
required by law and if amounts withheld are not
greater than would be the case if the
individual claimed all dependents to which he
was entitled (the withholding of additional
amounts pursuant to section 3402(i) of the
Internal Revenue Code of 1986 may be permitted
only when the individual presents evidence of a
tax obligation which supports the additional
withholding);
``(D) are deducted as health insurance
premiums;
``(E) are deducted as normal retirement
contributions (not including amounts deducted
for supplementary coverage); or
``(F) are deducted as normal life insurance
premiums from salary or other remuneration for
employment (not including amounts deducted for
supplementary coverage).
``(i) Definitions.--For purposes of this section--
``(1) United states.--The term `United States'
includes any department, agency, or instrumentality of
the legislative, judicial, or executive branch of the
Federal Government, the United States Postal Service,
the Postal Rate Commission, any Federal corporation
created by an Act of Congress that is wholly owned by
the Federal Government, and the governments of the
territories and possessions of the United States.
``(2) Child support.--The term `child support',
when used in reference to the legal obligations of an
individual to provide such support, means amounts
required to be paid under a judgment, decree, or order,
whether temporary, final, or subject to modification,
issued by a court or an administrative agency of
competent jurisdiction, for the support and maintenance
of a child, including a child who has attained the age
of majority under the law of the issuing State, or a
child and the parent with whom the child is living,
which provides for monetary support, health care,
arrearages or reimbursement, and which may include
other related costs and fees, interest and penalties,
income withholding, attorney's fees, and other relief.
``(3) Alimony.--
``(A) In general.--The term `alimony', when
used in reference to the legal obligations of
an individual to provide the same, means
periodic payments of funds for the support and
maintenance of the spouse (or former spouse) of
the individual, and (subject to and in
accordance with State law) includes separate
maintenance, alimony pendente lite,
maintenance, and spousal support, and includes
attorney's fees, interest, and court costs when
and to the extent that the same are expressly
made recoverable as such pursuant to a decree,
order, or judgment issued in accordance with
applicable State law by a court of competent
jurisdiction.
``(B) Exceptions.--Such term does not
include--
``(i) any child support; or
``(ii) any payment or transfer of
property or its value by an individual
to the spouse or a former spouse of the
individual in compliance with any
community property settlement,
equitable distribution of property, or
other division of property between
spouses or former spouses.
``(4) Private person.--The term `private person'
means a person who does not have sovereign or other
special immunity or privilege which causes the person
not to be subject to legal process.
``(5) Legal process.--The term `legal process'
means any writ, order, summons, or other similar
process in the nature of garnishment--
``(A) which is issued by--
``(i) a court or an administrative
agency of competent jurisdiction in any
State, territory, or possession of the
United States;
``(ii) a court or an administrative
agency of competent jurisdiction in any
foreign country with which the United
States has entered into an agreement
which requires the United States to
honor the process; or
``(iii) an authorized official
pursuant to an order of such a court or
an administrative agency of competent
jurisdiction or pursuant to State or
local law; and
``(B) which is directed to, and the purpose
of which is to compel, a governmental entity
which holds moneys which are otherwise payable
to an individual to make a payment from the
moneys to another party in order to satisfy a
legal obligation of the individual to provide
child support or make alimony payments.''.
(b) Conforming Amendments.--
(1) To part d of title iv.--Sections 461 and 462
(42 U.S.C. 661 and 662) are repealed.
(2) To title 5, united states code.--Section 5520a
of title 5, United States Code, is amended, in
subsections (h)(2) and (i), by striking ``sections 459,
461, and 462 of the Social Security Act (42 U.S.C. 659,
661, and 662)'' and inserting ``section 459 of the
Social Security Act (42 U.S.C. 659)''.
(c) Military Retired and Retainer Pay.--
(1) Definition of court.--Section 1408(a)(1) of
title 10, United States Code, is amended--
(A) by striking ``and'' at the end of
subparagraph (B);
(B) by striking the period at the end of
subparagraph (C) and inserting ``; and''; and
(C) by adding after subparagraph (C) the
following new subparagraph:
``(D) any administrative or judicial
tribunal of a State competent to enter orders
for support or maintenance (including a State
agency administering a program under a State
plan approved under part D of title IV of the
Social Security Act), and, for purposes of this
subparagraph, the term `State' includes the
District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, Guam, and
American Samoa.''.
(2) Definition of court order.--Section 1408(a)(2)
of such title is amended--
(A) by inserting ``or a support order, as
defined in section 453(p) of the Social
Security Act (42 U.S.C. 653(p)),'' before
``which--'';
(B) in subparagraph (B)(i), by striking
``(as defined in section 462(b) of the Social
Security Act (42 U.S.C. 662(b)))'' and
inserting ``(as defined in section 459(i)(2) of
the Social Security Act (42 U.S.C.
659(i)(2)))''; and
(C) in subparagraph (B)(ii), by striking
``(as defined in section 462(c) of the Social
Security Act (42 U.S.C. 662(c)))'' and
inserting ``(as defined in section 459(i)(3) of
the Social Security Act (42 U.S.C.
659(i)(3)))''.
(3) Public payee.--Section 1408(d) of such title is
amended--
(A) in the heading, by inserting ``(or for
Benefit of)'' before ``Spouse or''; and
(B) in paragraph (1), in the 1st sentence,
by inserting ``(or for the benefit of such
spouse or former spouse to a State disbursement
unit established pursuant to section 454B of
the Social Security Act or other public payee
designated by a State, in accordance with part
D of title IV of the Social Security Act, as
directed by court order, or as otherwise
directed in accordance with such part D)''
before ``in an amount sufficient''.
(4) Relationship to part d of title iv.--Section
1408 of such title is amended by adding at the end the
following new subsection:
``(j) Relationship to Other Laws.--In any case involving an
order providing for payment of child support (as defined in
section 459(i)(2) of the Social Security Act) by a member who
has never been married to the other parent of the child, the
provisions of this section shall not apply, and the case shall
be subject to the provisions of section 459 of such Act.''.
(d) Effective Date.--The amendments made by this section
shall become effective 6 months after the date of the enactment
of this Act.
SEC. 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--
(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 (42 U.S.C. 608(a)(4)), assigns to a State
the rights of the spouse or former spouse to receive
support, the Secretary concerned may make the child
support payments referred to in the preceding sentence
to that State in amounts consistent with that
assignment of rights.''.
(3) Arrearages owed by members of the uniformed
services.--Section 1408(d) of such title is amended by
adding at the end the following new paragraph:
``(6) In the case of a court order for which effective
service is made on the Secretary concerned on or after the date
of the enactment of this paragraph and which provides for
payments from the disposable retired pay of a member to satisfy
the amount of child support set forth in the order, the
authority provided in paragraph (1) to make payments from the
disposable retired pay of a member to satisfy the amount of
child support set forth in a court order shall apply to payment
of any amount of child support arrearages set forth in that
order as well as to amounts of child support that currently
become due.''.
(4) Payroll deductions.--The Secretary of Defense
shall begin payroll deductions within 30 days after
receiving notice of withholding, or for the 1st pay
period that begins after such 30-day period.
SEC. 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) (42 U.S.C. 666(a)), as
amended by sections 315, 317, and 323 of this Act, is amended
by inserting after paragraph (14) the following new paragraph:
``(15) Procedures to ensure that persons owing
past-due support work or have a plan for payment of
such support.--
``(A) In general.--Procedures under which
the State has the authority, in any case in
which an individual owes past-due support with
respect to a child receiving assistance under a
State program funded under part A, to issue an
order or to request that a court or an
administrative process established pursuant to
State law issue an order that requires the
individual to--
``(i) pay such support in
accordance with a plan approved by the
court, or, at the option of the State,
a plan approved by the State agency
administering the State program under
this part; or
``(ii) if the individual is subject
to such a plan and is not
incapacitated, participate in such work
activities (as defined in section
407(d)) as the court, or, at the option
of the State, the State agency
administering the State program under
this part, deems appropriate.
``(B) Past-due support defined.--For
purposes of subparagraph (A), the term `past-
due support' means the amount of a delinquency,
determined under a court order, or an order of
an administrative process established under
State law, for support and maintenance of a
child, or of a child and the parent with whom
the child is living.''.
(b) Conforming Amendment.--The flush paragraph at the end
of section 466(a) (42 U.S.C. 666(a)) is amended by striking
``and (7)'' and inserting ``(7), and (15)''.
SEC. 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, when the State
agency, party, or other entity seeking to
enforce such a lien complies with the
procedural rules relating to recording or
serving liens that arise within the State,
except that such rules may not require judicial
notice or hearing prior to the enforcement of
such a lien.''.
SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
315, 317, 323, and 365 of this Act, is amended by inserting
after paragraph (15) the following:
``(16) Authority to withhold or suspend licenses.--
Procedures under which the State has (and uses in
appropriate cases) authority to withhold or suspend, or
to restrict the use of driver's licenses, professional
and occupational licenses, and recreational licenses of
individuals owing overdue support or failing, after
receiving appropriate notice, to comply with subpoenas
or warrants relating to paternity or child support
proceedings.''.
SEC. 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 paragraph (2).
``(2) The Secretary of State shall, upon certification by
the Secretary transmitted under paragraph (1), refuse to issue
a passport to such individual, and may revoke, restrict, or
limit a passport issued previously to such individual.
``(3) The Secretary and the Secretary of State shall not be
liable to an individual for any action with respect to a
certification by a State agency under this section.''.
(2) State agency responsibility.--Section 454 (42
U.S.C. 654), as amended by sections 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) Effective Date.--This section and the amendments made
by this section shall become effective October 1, 1997.
SEC. 371. INTERNATIONAL 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 SUPPORT ENFORCEMENT.
``(a) Authority for Declarations.--
``(1) Declaration.--The Secretary of State, with
the concurrence of the Secretary of Health and Human
Services, is authorized to declare any foreign country
(or a political subdivision thereof) to be a foreign
reciprocating country if the foreign country has
established, or undertakes to establish, procedures for
the establishment and enforcement of duties of support
owed to obligees who are residents of the United
States, and such procedures are substantially in
conformity with the standards prescribed under
subsection (b).
``(2) Revocation.--A declaration with respect to a
foreign country made pursuant to paragraph (1) may be
revoked if the Secretaries of State and Health and
Human Services determine that--
``(A) the procedures established by the
foreign country regarding the establishment and
enforcement of duties of support have been so
changed, or the foreign country's
implementation of such procedures is so
unsatisfactory, that such procedures do not
meet the criteria for such a declaration; or
``(B) continued operation of the
declaration is not consistent with the purposes
of this part.
``(3) Form of declaration.--A declaration under
paragraph (1) may be made in the form of an
international agreement, in connection with an
international agreement or corresponding foreign
declaration, or on a unilateral basis.
``(b) Standards for Foreign Support Enforcement
Procedures.--
``(1) Mandatory elements.--Support enforcement
procedures of a foreign country which may be the
subject of a declaration pursuant to subsection (a)(1)
shall include the following elements:
``(A) The foreign country (or political
subdivision thereof) has in effect procedures,
available to residents of the United States--
``(i) for establishment of
paternity, and for establishment of
orders of support for children and
custodial parents; and
``(ii) for enforcement of orders to
provide support to children and
custodial parents, including procedures
for collection and appropriate
distribution of support payments under
such orders.
``(B) The procedures described in
subparagraph (A), including legal and
administrative assistance, are provided to
residents of the United States at no cost.
``(C) An agency of the foreign country is
designated as a Central Authority responsible
for--
``(i) facilitating support
enforcement in cases involving
residents of the foreign country and
residents of the United States; and
``(ii) ensuring compliance with the
standards established pursuant to this
subsection.
``(2) Additional elements.--The Secretary of Health
and Human Services and the Secretary of State, in
consultation with the States, may establish such
additional standards as may be considered necessary to
further the purposes of this section.
``(c) Designation of United States Central Authority.--It
shall be the responsibility of the Secretary of Health and
Human Services to facilitate support enforcement in cases
involving residents of the United States and residents of
foreign countries that are the subject of a declaration under
this section, by activities including--
``(1) development of uniform forms and procedures
for use in such cases;
``(2) notification of foreign reciprocating
countries of the State of residence of individuals
sought for support enforcement purposes, on the basis
of information provided by the Federal Parent Locator
Service; and
``(3) such other oversight, assistance, and
coordination activities as the Secretary may find
necessary and appropriate.
``(d) Effect on Other Laws.--States may enter into
reciprocal arrangements for the establishment and enforcement
of support obligations with foreign countries that are not the
subject of a declaration pursuant to subsection (a), to the
extent consistent with Federal law.''.
(b) State Plan Requirement.--Section 454 (42 U.S.C. 654),
as amended by sections 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, 323, 365, and 369 of this Act, is amended by
inserting after paragraph (16) the following new paragraph:
``(17) Financial institution data matches.--
``(A) In general.--Procedures under which
the State agency shall enter into agreements
with financial institutions doing business in
the State--
``(i) to develop and operate, in
coordination with such financial
institutions, a data match system,
using automated data exchanges to the
maximum extent feasible, in which each
such financial institution is required
to provide for each calendar quarter
the name, record address, social
security number or other taxpayer
identification number, and other
identifying information for each
noncustodial parent who maintains an
account at such institution and who
owes past-due support, as identified by
the State by name and social security
number or other taxpayer identification
number; and
``(ii) in response to a notice of
lien or levy, encumber or surrender, as
the case may be, assets held by such
institution on behalf of any
noncustodial parent who is subject to a
child support lien pursuant to
paragraph (4).
``(B) Reasonable fees.--The State agency
may pay a reasonable fee to a financial
institution for conducting the data match
provided for in subparagraph (A)(i), not to
exceed the actual costs incurred by such
financial institution.
``(C) Liability.--A financial institution
shall not be liable under any Federal or State
law to any person--
``(i) for any disclosure of
information to the State agency under
subparagraph (A)(i);
``(ii) for encumbering or
surrendering any assets held by such
financial institution in response to a
notice of lien or levy issued by the
State agency as provided for in
subparagraph (A)(ii); or
``(iii) for any other action taken
in good faith to comply with the
requirements of subparagraph (A).
``(D) Definitions.--For purposes of this
paragraph--
``(i) Financial institution.--The
term `financial institution' has the
meaning given to such term by section
469A(d)(1).
``(ii) Account.--The term `account'
means a demand deposit account,
checking or negotiable withdrawal order
account, savings account, time deposit
account, or money-market mutual fund
account.''.
SEC. 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, 323, 365, 369, and 372 of this Act, is amended by
inserting after paragraph (17) the following new paragraph:
``(18) Enforcement of orders against paternal or
maternal grandparents.--Procedures under which, at the
State's option, any child support order enforced under
this part with respect to a child of minor parents, if
the custodial parent of such child is receiving
assistance under the State program under part A, shall
be enforceable, jointly and severally, against the
parents of the noncustodial parent of such child.''.
SEC. 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) by striking ``or'' at the end of paragraph
(16);
(2) by striking the period at the end of paragraph
(17) and inserting ``; or'';
(3) by adding at the end the following:
``(18) owed under State law to a State or
municipality that is--
``(A) in the nature of support, and
``(B) enforceable under part D of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.).''; and
(4) in paragraph (5), by striking ``section
402(a)(26)'' and inserting ``section 408(a)(4)''.
(b) Amendment to the Social Security Act.--Section 456(b)
(42 U.S.C. 656(b)) is amended to read as follows:
``(b) Nondischargeability.--A debt (as defined in section
101 of title 11 of the United States Code) owed under State law
to a State (as defined in such section) or municipality (as
defined in such section) that is in the nature of support and
that is enforceable under this part is not released by a
discharge in bankruptcy under title 11 of the United States
Code.''.
(c) Application of Amendments.--The amendments made by this
section shall apply only with respect to cases commenced under
title 11 of the United States Code after the date of the
enactment of this Act.
SEC. 375. CHILD SUPPORT ENFORCEMENT FOR INDIAN TRIBES.
(a) Child Support Enforcement Agreements.--Section 454 (42
U.S.C. 654), as amended by sections 301(b), 303(a), 312(b),
313(a), 333, 343(b), 370(a)(2), and 371(b) of this Act is
amended--
(1) by striking ``and'' at the end of paragraph
(31);
(2) by striking the period at the end of paragraph
(32) and inserting ``; and'';
(3) by adding after paragraph (32) the following
new paragraph:
``(33) provide that a State that receives funding
pursuant to section 428 and that has within its borders
Indian country (as defined in section 1151 of title 18,
United States Code) may enter into cooperative
agreements with an Indian tribe or tribal organization
(as defined in subsections (e) and (l) of section 4 of
the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b)), if the Indian tribe or tribal
organization demonstrates that such tribe or
organization has an established tribal court system or
a Court of Indian Offenses with the authority to
establish paternity, establish, modify, and enforce
support orders, and to enter support orders in
accordance with child support guidelines established by
such tribe or organization, under which the State and
tribe or organization shall provide for the cooperative
delivery of child support enforcement services in
Indian country and for the forwarding of all funding
collected pursuant to the functions performed by the
tribe or organization to the State agency, or
conversely, by the State agency to the tribe or
organization, which shall distribute such funding in
accordance with such agreement; and
(4) by adding at the end the following new
sentence: ``Nothing in paragraph (33) shall void any
provision of any cooperative agreement entered into
before the date of the enactment of such paragraph, nor
shall such paragraph deprive any State of jurisdiction
over Indian country (as so defined) that is lawfully
exercised under section 402 of the Act entitled `An Act
to prescribe penalties for certain acts of violence or
intimidation, and for other purposes', approved April
11, 1968 (25 U.S.C. 1322).''.
(b) Direct Federal Funding to Indian Tribes and Tribal
Organizations.--Section 455 (42 U.S.C. 655) is amended by
adding at the end the following new subsection:
``(b) The Secretary may, in appropriate cases, make direct
payments under this part to an Indian tribe or tribal
organization which has an approved child support enforcement
plan under this title. In determining whether such payments are
appropriate, the Secretary shall, at a minimum, consider
whether services are being provided to eligible Indian
recipients by the State agency through an agreement entered
into pursuant to section 454(34).''.
(c) Cooperative Enforcement Agreements.--Paragraph (7) of
section 454 (42 U.S.C. 654) is amended by inserting ``and
Indian tribes or tribal organizations (as defined in
subsections (e) and (l) of section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b))''
after ``law enforcement officials''.
(d) Conforming Amendment.--Subsection (c) of section 428
(42 U.S.C. 628) is amended to read as follows:
``(c) For purposes of this section, the terms `Indian
tribe' and `tribal organization' shall have the meanings given
such terms by subsections (e) and (l) of section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b)), respectively.''.
Subtitle H--Medical Support
SEC. 381. 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. 382. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
315, 317, 323, 365, 369, 372, and 373 of this Act, is amended
by inserting after paragraph (18) the following new paragraph:
``(19) Health care coverage.--Procedures under
which all child support orders enforced pursuant to
this part shall include a provision for the health care
coverage of the child, and in the case in which a
noncustodial parent provides such coverage and changes
employment, and the new employer provides health care
coverage, the State agency shall transfer notice of the
provision to the employer, which notice shall operate
to enroll the child in the noncustodial parent's health
plan, unless the noncustodial parent contests the
notice.''.
Subtitle I--Enhancing Responsibility and Opportunity for Non-
Residential Parents
SEC. 391. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.
Part D of title IV (42 U.S.C. 651-669), as amended by
section 353 of this Act, is amended by adding at the end the
following new section:
``SEC. 469B. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.
``(a) In General.--The Administration for Children and
Families shall make grants under this section to enable States
to establish and administer programs to support and facilitate
noncustodial parents' access to and visitation of their
children, by means of activities including mediation (both
voluntary and mandatory), counseling, education, development of
parenting plans, visitation enforcement (including monitoring,
supervision and neutral drop-off and pickup), and development
of guidelines for visitation and alternative custody
arrangements.
``(b) Amount of Grant.--The amount of the grant to be made
to a State under this section for a fiscal year shall be an
amount equal to the lesser of--
``(1) 90 percent of State expenditures during the
fiscal year for activities described in subsection (a);
or
``(2) the allotment of the State under subsection
(c) for the fiscal year.
``(c) Allotments to States.--
``(1) In general.--The allotment of a State for a
fiscal year is the amount that bears the same ratio to
$10,000,000 for grants under this section for the
fiscal year as the number of children in the State
living with only 1 biological parent bears to the total
number of such children in all States.
``(2) Minimum allotment.--The Administration for
Children and Families shall adjust allotments to States
under paragraph (1) as necessary to ensure that no
State is allotted less than--
``(A) $50,000 for fiscal year 1997 or 1998;
or
``(B) $100,000 for any succeeding fiscal
year.
``(d) No Supplantation of State Expenditures for Similar
Activities.--A State to which a grant is made under this
section may not use the grant to supplant expenditures by the
State for activities specified in subsection (a), but shall use
the grant to supplement such expenditures at a level at least
equal to the level of such expenditures for fiscal year 1995.
``(e) State Administration.--Each State to which a grant is
made under this section--
``(1) may administer State programs funded with the
grant, directly or through grants to or contracts with
courts, local public agencies, or nonprofit private
entities;
``(2) shall not be required to operate such
programs on a statewide basis; and
``(3) shall monitor, evaluate, and report on such
programs in accordance with regulations prescribed by
the Secretary.''.
Subtitle J--Effective Dates and Conforming Amendments
SEC. 395. EFFECTIVE DATES AND CONFORMING AMENDMENTS.
(a) In General.--Except as otherwise specifically provided
(but subject to subsections (b) and (c))--
(1) the provisions of this 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.
(d) Conforming Amendments.--
(1) The following provisions are amended by
striking ``absent'' each place it appears and inserting
``noncustodial'':
(A) Section 451 (42 U.S.C. 651).
(B) Subsections (a)(1), (a)(8), (a)(10)(E),
(a)(10)(F), (f), and (h) of section 452 (42
U.S.C. 652).
(C) Section 453(f) (42 U.S.C. 653(f)).
(D) Paragraphs (8), (13), and (21)(A) of
section 454 (42 U.S.C. 654).
(E) Section 455(e)(1) (42 U.S.C.
655(e)(1)).
(F) Section 458(a) (42 U.S.C. 658(a)).
(G) Subsections (a), (b), and (c) of
section 463 (42 U.S.C. 663).
(H) Subsections (a)(3)(A), (a)(3)(C),
(a)(6), and (a)(8)(B)(ii), the last sentence of
subsection (a), and subsections (b)(1),
(b)(3)(B), (b)(3)(B)(i), (b)(6)(A)(i), (b)(9),
and (e) of section 466 (42 U.S.C. 666).
(2) The following provisions are amended by
striking ``an absent'' each place it appears and
inserting ``a noncustodial'':
(A) Paragraphs (2) and (3) of section
453(c) (42 U.S.C. 653(c)).
(B) Subparagraphs (B) and (C) of section
454(9) (42 U.S.C. 654(9)).
(C) Section 456(a)(3) (42 U.S.C.
656(a)(3)).
(D) Subsections (a)(3)(A), (a)(6),
(a)(8)(B)(i), (b)(3)(A), and (b)(3)(B) of
section 466 (42 U.S.C. 666).
(E) Paragraphs (2) and (4) of section
469(b) (42 U.S.C. 669(b)).
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) Medical assistance under title XIX of
the Social Security Act (or any successor
program to such title) for care and services
that are necessary for the treatment of an
emergency medical condition (as defined in
section 1903(v)(3) of such Act) of the alien
involved and are not related to an organ
transplant procedure, if the alien involved
otherwise meets the eligibility requirements
for medical assistance under the State plan
approved under such title (other than the
requirement of the receipt of aid or assistance
under title IV of such Act, supplemental
security income benefits under title XVI of
such Act, or a State supplementary payment).
(B) Short-term, non-cash, in-kind emergency
disaster relief.
(C) Public health assistance (not including
any assistance under title XIX of the Social
Security Act) for immunizations with respect to
immunizable diseases and for testing and
treatment of symptoms of communicable diseases
whether or not such symptoms are caused by a
communicable disease.
(D) Programs, services, or assistance (such
as soup kitchens, crisis counseling and
intervention, and short-term shelter) specified
by the Attorney General, in the Attorney
General's sole and unreviewable discretion
after consultation with appropriate Federal
agencies and departments, which (i) deliver in-
kind services at the community level, including
through public or private nonprofit agencies;
(ii) do not condition the provision of
assistance, the amount of assistance provided,
or the cost of assistance provided on the
individual recipient's income or resources; and
(iii) are necessary for the protection of life
or safety.
(E) Programs for housing or community
development assistance or financial assistance
administered by the Secretary of Housing and
Urban Development, any program under title V of
the Housing Act of 1949, or any assistance
under section 306C of the Consolidated Farm and
Rural Development Act, to the extent that the
alien is receiving such a benefit on the date
of the enactment of this Act.
(2) Subsection (a) shall not apply to any benefit
payable under title II of the Social Security Act to an
alien who is lawfully present in the United States as
determined by the Attorney General, to any benefit if
nonpayment of such benefit would contravene an
international agreement described in section 233 of the
Social Security Act, to any benefit if nonpayment would
be contrary to section 202(t) of the Social Security
Act, or to any benefit payable under title II of the
Social Security Act to which entitlement is based on an
application filed in or before the month in which this
Act becomes law.
(c) Federal Public Benefit Defined.--
(1) Except as provided in paragraph (2), for
purposes of this 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,
postsecondary education, food assistance,
unemployment benefit, or any other similar
benefit for which payments or assistance are
provided to an individual, household, or family
eligibility unit by an agency of the United
States or by appropriated funds of the United
States.
(2) Such term shall not apply--
(A) to any contract, professional license,
or commercial license for a nonimmigrant whose
visa for entry is related to such employment in
the United States; or
(B) with respect to benefits for an alien
who as a work authorized nonimmigrant or as an
alien lawfully admitted for permanent residence
under the Immigration and Nationality Act
qualified for such benefits and for whom the
United States under reciprocal treaty
agreements is required to pay benefits, as
determined by the Attorney General, after
consultation with the Secretary of State.
SEC. 402. LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR CERTAIN FEDERAL
PROGRAMS.
(a) Limited Eligibility for Specified Federal Programs.--
(1) In general.--Notwithstanding any other
provision of law and except as provided in paragraph
(2), an alien who is a qualified alien (as defined in
section 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 40 qualifying
quarters of coverage as defined under
title II of the Social Security Act or
can be credited with such qualifying
quarters as provided under section 435,
and (II) in the case of any such
qualifying quarter creditable for any
period beginning after December 31,
1996, did not receive any Federal
means-tested public benefit (as
provided under section 403) during any
such period.
(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 March 31, 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.
(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, 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 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 40 qualifying
quarters of coverage as defined under
title II of the Social Security Act or
can be credited with such qualifying
quarters as provided under section 435,
and (II) in the case of any such
qualifying quarter creditable for any
period beginning after December 31,
1996, did not receive any Federal
means-tested public benefit (as
provided under section 403) during any
such period.
(C) Veteran and active duty exception.--An
alien who is lawfully residing in any State and
is--
(i) a veteran (as defined in
section 101 of title 38, United States
Code) with a discharge characterized as
an honorable discharge and not on
account of alienage,
(ii) on active duty (other than
active duty for training) in the Armed
Forces of the United States, or
(iii) the spouse or unmarried
dependent child of an individual
described in clause (i) or (ii).
(D) Transition for those currently
receiving benefits.--An alien who on the date
of the enactment of this Act is lawfully
residing in any State and is receiving benefits
under such program on the date of the enactment
of this Act shall continue to be eligible to
receive such benefits until January 1, 1997.
(3) Designated federal program defined.--For
purposes of this 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.
(C) Medicaid.--A State plan approved under
title XIX of the Social Security Act, other
than medical assistance described in section
401(b)(1)(A).
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 subsections (b), (c), and (d), 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 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) Application of Term Federal Means-tested Public
Benefit.--
(1) The limitation under subsection (a) shall not
apply to assistance or benefits under paragraph (2).
(2) Assistance and benefits under this paragraph
are as follows:
(A) Medical assistance described in section
401(b)(1)(A).
(B) Short-term, non-cash, in-kind emergency
disaster relief.
(C) Assistance or benefits under the
National School Lunch Act.
(D) Assistance or benefits under the Child
Nutrition Act of 1966.
(E) Public health assistance (not including
any assistance under title XIX of the Social
Security Act) for immunizations with respect to
immunizable diseases and for testing and
treatment of symptoms of communicable diseases
whether or not such symptoms are caused by a
communicable disease.
(F) Payments for foster care and adoption
assistance under parts B and E of title IV of
the Social Security Act for a parent or 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 is a qualified alien (as defined in
section 431).
(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, and titles III, VII, and VIII of
the Public Health Service Act.
(I) Means-tested programs under the
Elementary and Secondary Education Act of 1965.
(J) Benefits under the Head Start Act.
(K) Benefits under the Job Training
Partnership Act.
(d) Special Rule for Refugee and Entrant Assistance for
Cuban and Haitian Entrants.--The limitation under subsection
(a) shall not apply to refugee and entrant assistance
activities, authorized by title IV of the Immigration and
Nationality Act and section 501 of the Refugee Education
Assistance Act of 1980, for Cuban and Haitian entrants as
defined in section 501(e)(2) of the Refugee Education
Assistance Act of 1980.
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 subtitle.
(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
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.''.
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--
(1) a qualified alien (as defined in section 431),
(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) Assistance for health care items and services
that are necessary for the treatment of an emergency
medical condition (as defined in section 1903(v)(3) of
the Social Security Act) of the alien involved and are
not related to an organ transplant procedure.
(2) Short-term, non-cash, in-kind emergency
disaster relief.
(3) Public health assistance for immunizations with
respect to immunizable diseases and for testing and
treatment of symptoms of communicable diseases whether
or not such symptoms are caused by a communicable
disease.
(4) Programs, services, or assistance (such as soup
kitchens, crisis counseling and intervention, and
short-term shelter) specified by the Attorney General,
in the Attorney General's sole and unreviewable
discretion after consultation with appropriate Federal
agencies and departments, which (A) deliver in-kind
services at the community level, including through
public or private nonprofit agencies; (B) do not
condition the provision of assistance, the amount of
assistance provided, or the cost of assistance provided
on the individual recipient's income or resources; and
(C) are necessary for the protection of life or safety.
(c) State or Local Public Benefit Defined.--
(1) Except as provided in paragraphs (2) and (3),
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,
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.
(3) Such term does not include any Federal public
benefit under section 4001(c).
(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 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 40 qualifying quarters of
coverage as defined under title II of the
Social Security Act or can be credited with
such qualifying quarters as provided under
section 435, and (ii) in the case of any such
qualifying quarter creditable for any period
beginning after December 31, 1996, did not
receive any Federal means-tested public benefit
(as provided under section 403) during any such
period.
(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.
Subtitle C--Attribution of Income and Affidavits of Support
SEC. 421. 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 provided under section 403), 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) Duration of Attribution Period.--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 435, and (B) in the
case of any such qualifying quarter creditable for any
period beginning after December 31, 1996, did not
receive any Federal means-tested public benefit (as
provided under section 403) during any such period.
(c) Review of Income and Resources of Alien Upon
Reapplication.--Whenever an alien is required to reapply for
benefits under any Federal means-tested public benefits
program, the applicable agency shall review the income and
resources attributed to the alien under subsection (a).
(d) Application.--
(1) If on the date of the enactment of this Act, a
Federal means-tested public benefits program attributes
a sponsor's income and resources to an alien in
determining the alien's eligibility and the amount of
benefits for an alien, this section shall apply to any
such determination beginning on the day after the date
of the enactment of this Act.
(2) If on the date of the enactment of this Act, a
Federal means-tested public benefits program does not
attribute a sponsor's income and resources to an alien
in determining the alien's eligibility and the amount
of benefits for an alien, this section shall apply to
any such determination beginning 180 days after the
date of the enactment of this Act.
SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF SPONSORS
INCOME AND RESOURCES TO THE ALIEN WITH RESPECT TO
STATE PROGRAMS.
(a) Optional Application to State Programs.--Except as
provided in subsection (b), in determining the eligibility and
the amount of benefits of an alien for any State public
benefits (as defined in section 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) Assistance described in section 411(b)(1).
(2) Short-term, non-cash, in-kind emergency
disaster relief.
(3) Programs comparable to assistance or benefits
under the National School Lunch Act.
(4) Programs comparable to assistance or benefits
under the Child Nutrition Act of 1966.
(5) Public health assistance for immunizations with
respect to immunizable diseases and for testing and
treatment of symptoms of communicable diseases whether
or not such symptoms are caused by a communicable
disease.
(6) Payments for foster care and adoption
assistance.
(7) Programs, services, or assistance (such as soup
kitchens, crisis counseling and intervention, and
short-term shelter) specified by the Attorney General
of a State, after consultation with appropriate
agencies and departments, which (A) deliver in-kind
services at the community level, including through
public or private nonprofit agencies; (B) do not
condition the provision of assistance, the amount of
assistance provided, or the cost of assistance provided
on the individual recipient's income or resources; and
(C) are necessary for the protection of life or safety.
SEC. 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 section 3201, 3203, 3204, or 3205 of
title 28, United States Code, as well as an order for specific
performance and payment of legal fees and other costs of
collection, and include corresponding remedies available under
State law. A Federal agency may seek to collect amounts owed
under this section in accordance with the provisions of
subchapter II of chapter 37 of title 31, United States Code.
``(d) Notification of Change of Address.--
``(1) In general.--The sponsor shall notify the
Attorney General and the State in which the sponsored
alien is currently resident within 30 days of any
change of address of the sponsor during the period
specified in subsection (a)(2).
``(2) Penalty.--Any person subject to the
requirement of paragraph (1) who fails to satisfy such
requirement shall be subject to a civil penalty of--
``(A) not less than $250 or more than
$2,000, or
``(B) if such failure occurs with knowledge
that the alien has received any means-tested
public benefit, not less than $2,000 or more
than $5,000.
``(e) Reimbursement of Government Expenses.--(1)(A) Upon
notification that a sponsored alien has received any benefit
under any means-tested public benefits program, the appropriate
Federal, State, or local official shall request reimbursement
by the sponsor in the amount of such assistance.
``(B) The Attorney General, in consultation with the
Secretary of Health and Human Services, shall prescribe such
regulations as may be necessary to carry out subparagraph (A).
``(2) If within 45 days after requesting reimbursement, the
appropriate Federal, State, or local agency has not received a
response from the sponsor indicating a willingness to commence
payments, an action may be brought against the sponsor pursuant
to the affidavit of support.
``(3) If the sponsor fails to abide by the repayment terms
established by such agency, the agency may, within 60 days of
such failure, bring an action against the sponsor pursuant to
the affidavit of support.
``(4) No cause of action may be brought under this
subsection later than 10 years after the alien last received
any benefit under any means-tested public benefits program.
``(5) If, pursuant to the terms of this subsection, a
Federal, State, or local agency requests reimbursement from the
sponsor in the amount of assistance provided, or brings an
action against the sponsor pursuant to the affidavit of
support, the appropriate agency may appoint or hire an
individual or other person to act on behalf of such agency
acting under the authority of law for purposes of collecting
any moneys owed. Nothing in this subsection shall preclude any
appropriate Federal, State, or local agency from directly
requesting reimbursement from a sponsor for the amount of
assistance provided, or from bringing an action against a
sponsor pursuant to an affidavit of support.
``(f) Definitions.--For the purposes of this section--
``(1) Sponsor.--The term `sponsor' means an
individual who--
``(A) is a citizen or national of the
United States or an alien who is lawfully
admitted to the United States for permanent
residence;
``(B) is 18 years of age or over;
``(C) is domiciled in any of the 50 States
or the District of Columbia; and
``(D) is the person petitioning for the
admission of the alien under section 204.''.
(b) Clerical Amendment.--The table of contents of such Act
is amended by inserting after the item relating to section 213
the following:
``Sec. 213A. Requirements for sponsor's affidavit of support.''.
(c) Effective Date.--Subsection (a) of section 213A of the
Immigration and Nationality Act, as inserted by subsection (a)
of this section, shall apply to affidavits of support executed
on or after a date specified by the Attorney General, which
date shall be not earlier than 60 days (and not later than 90
days) after the date the Attorney General formulates the form
for such affidavits under subsection (b) of such section.
(d) Benefits Not Subject to Reimbursement.--Requirements
for reimbursement by a sponsor for benefits provided to a
sponsored alien pursuant to an affidavit of support under
section 213A of the Immigration and Nationality Act shall not
apply with respect to the following:
(1) Medical assistance described in section
401(b)(1)(A) or assistance described in section
411(b)(1).
(2) Short-term, non-cash, in-kind emergency
disaster relief.
(3) Assistance or benefits under the National
School Lunch Act.
(4) Assistance or benefits under the Child
Nutrition Act of 1966.
(5) Public health assistance for immunizations (not
including any assistance under title XIX of the Social
Security Act) with respect to immunizable diseases and
for testing and treatment of symptoms of communicable
diseases whether or not such symptoms are caused by a
communicable disease.
(6) Payments for foster care and adoption
assistance under parts B and E of title IV of the
Social Security Act for a parent or a child, but only
if the foster or adoptive parent (or parents) of such
child is a qualified alien (as defined in section 431).
(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, and
titles III, VII, and VIII of the Public Health Service
Act.
(9) Benefits under the Head Start Act.
(10) Means-tested programs under the Elementary and
Secondary Education Act of 1965.
(11) Benefits under the Job Training Partnership
Act.
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, and
(2) all of the qualifying quarters worked by a
spouse of such alien during their marriage and the
alien remains married to such spouse or such spouse is
deceased.
No such qualifying quarter of coverage that is creditable under
title II of the Social Security Act for any period beginning
after December 31, 1996, may be credited to an alien under
paragraph (1) or (2) if the parent or spouse (as the case may
be) of such alien received any Federal means-tested public
benefit (as provided under section 403) during the period for
which such qualifying quarter of coverage is so credited.
Subtitle E--Conforming Amendments Relating to Assisted Housing
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'';
(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).
Subtitle F--Earned Income Credit Denied to Unauthorized Employees
SEC. 451. EARNED INCOME CREDIT DENIED TO INDIVIDUALS NOT AUTHORIZED TO
BE EMPLOYED IN THE UNITED STATES.
(a) In General.--Section 32(c)(1) of the Internal Revenue
Code of 1986 (relating to individuals eligible to claim the
earned income credit) is amended by adding at the end the
following new subparagraph:
``(F) Identification number requirement.--
The term `eligible individual' does not include
any individual who does not include on the
return of tax for the taxable year--
``(i) such individual's taxpayer
identification number, and
``(ii) if the individual is married
(within the meaning of section 7703),
the taxpayer identification number of
such individual's spouse.''.
(b) Special Identification Number.--Section 32 of such Code
is amended by adding at the end the following new subsection:
``(l) Identification Numbers.--Solely for purposes of
subsections (c)(1)(F) and (c)(3)(D), a taxpayer identification
number means a social security number issued to an individual
by the Social Security Administration (other than a social
security number issued pursuant to clause (II) (or that portion
of clause (III) that relates to clause (II)) of section
205(c)(2)(B)(i) of the Social Security Act).''.
(c) Extension of Procedures Applicable to Mathematical or
Clerical Errors.--Section 6213(g)(2) of such Code (relating to
the definition of mathematical or clerical errors) is amended
by striking ``and' at the end of subparagraph (D), by striking
the period at the end of subparagraph (E) and inserting a
comma, and by inserting after subparagraph (E) the following
new subparagraphs:
``(F) an omission of a correct taxpayer
identification number required under section 32
(relating to the earned income credit) to be
included on a return, and
``(G) an entry on a return claiming the
credit under section 32 with respect to net
earnings from self-employment described in
section 32(c)(2)(A) to the extent the tax
imposed by section 1401 (relating to self-
employment tax) on such net earnings has not
been paid.''.
(d) Effective Date.--The amendments made by this section
shall apply 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.
TITLE V--CHILD PROTECTION
SEC. 501. AUTHORITY OF STATES TO MAKE FOSTER CARE MAINTENANCE PAYMENTS
ON BEHALF OF CHILDREN IN ANY PRIVATE CHILD CARE
INSTITUTION.
Section 472(c)(2) of the Social Security Act (42 U.S.C.
672(c)(2)) is amended by striking ``nonprofit''.
SEC. 502. EXTENSION OF ENHANCED MATCH FOR IMPLEMENTATION OF STATEWIDE
AUTOMATED CHILD WELFARE INFORMATION SYSTEMS.
Section 13713(b)(2) of the Omnibus Budget Reconciliation
Act of 1993 (42 U.S.C. 674 note; 107 Stat. 657) is amended by
striking ``1996'' and inserting ``1997''.
SEC. 503. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.
Part B of title IV of the Social Security Act (42 U.S.C.
620-628a) is amended by adding at the end the following:
``SEC. 429A. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.
``(a) In General.--The Secretary shall conduct a national
study based on random samples of children who are at risk of
child abuse or neglect, or are determined by States to have
been abused or neglected.
``(b) Requirements.--The study required by subsection (a)
shall--
``(1) have a longitudinal component; and
``(2) yield data reliable at the State level for as
many States as the Secretary determines is feasible.
``(c) Preferred Contents.--In conducting the study required
by subsection (a), the Secretary should--
``(1) carefully consider selecting the sample from
cases of confirmed abuse or neglect; and
``(2) follow each case for several years while
obtaining information on, among other things--
``(A) the type of abuse or neglect
involved;
``(B) the frequency of contact with State
or local agencies;
``(C) whether the child involved has been
separated from the family, and, if so, under
what circumstances;
``(D) the number, type, and characteristics
of out-of-home placements of the child; and
``(E) the average duration of each
placement.
``(d) Reports.--
``(1) In general.--From time to time, the Secretary
shall prepare reports summarizing the results of the
study required by subsection (a).
``(2) Availability.--The Secretary shall make
available to the public any report prepared under
paragraph (1), in writing or in the form of an
electronic data tape.
``(3) Authority to charge fee.--The Secretary may
charge and collect a fee for the furnishing of reports
under paragraph (2).
``(e) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated to the Secretary for each of fiscal years 1996
through 2002 $6,000,000 to carry out this section.''.
SEC. 504. REDESIGNATION OF SECTION 1123.
The Social Security Act is amended by redesignating section
1123, the second place it appears (42 U.S.C. 1320a-1a), as
section 1123A.
SEC. 505. KINSHIP CARE.
Section 471(a) of the Social Security Act (42 U.S.C.
671(a)) is amended--
(1) by striking ``and'' at the end of paragraph
(16);
(2) by striking the period at the end of paragraph
(17) and inserting ``; and''; and
(3) by adding at the end the following:
``(18) provides that the State shall consider
giving preference to an adult relative over a non-
related caregiver when determining a placement for a
child, provided that the relative caregiver meets all
relevant State child protection standards.''.
TITLE VI--CHILD CARE
SEC. 601. SHORT TITLE AND REFERENCES.
(a) Short Title.--This title may be cited as the ``Child
Care and Development Block Grant Amendments of 1996''.
(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. 602. 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. 603. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT AUTHORITY.
(a) In General.--Section 658B (42 U.S.C. 9858) is amended
to read as follows:
``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this
subchapter $1,000,000,000 for each of the fiscal years 1996
through 2002.''.
(b) Social Security Act.--Part A of title IV of the Social
Security Act (42 U.S.C. 601-617) is amended by adding at the
end the following new section:
``SEC. 418. FUNDING FOR CHILD CARE.
``(a) General Child Care Entitlement.--
``(1) General entitlement.--Subject to the amount
appropriated under paragraph (3), each State shall, for
the purpose of providing child care assistance, be
entitled to payments under a grant under this
subsection for a fiscal year in an amount equal to--
``(A) the sum of the total amount required
to be paid to the State under section 403 for
fiscal year 1994 or 1995 (whichever is greater)
with respect to amounts expended for child care
under section--
``(i) 402(g) of this Act (as such
section was in effect before October 1,
1995); and
``(ii) 402(i) of this Act (as so in
effect); or
``(B) the average of the total amounts
required to be paid to the State for fiscal
years 1992 through 1994 under the sections
referred to in subparagraph (A);
whichever is greater.
``(2) Remainder.--
``(A) Grants.--The Secretary shall use any
amounts appropriated for a fiscal year under
paragraph (3), and remaining after the
reservation described in paragraph (4) and
after grants are awarded under paragraph (1),
to make grants to States under this paragraph.
``(B) Amount.--Subject to subparagraph (C),
the amount of a grant awarded to a State for a
fiscal year under this paragraph shall be based
on the formula used for determining the amount
of Federal payments to the State under section
403(n) (as such section was in effect before
October 1, 1995).
``(C) Matching requirement.--The Secretary
shall pay to each eligible State in a fiscal
year an amount, under a grant under
subparagraph (A), equal to the Federal medical
assistance percentage for such State for fiscal
year 1995 (as defined in section 1905(b)) of so
much of the expenditures by the State for child
care in such year as exceed the State set-aside
for such State under paragraph (1)(A) for such
year and the amount of State expenditures in
fiscal year 1994 or 1995 (whichever is greater)
that equal the non-Federal share for the
programs described in subparagraph (A) of
paragraph (1).
``(D) Redistribution.--
``(i) In general.--With respect to
any fiscal year, if the Secretary
determines (in accordance with clause
(ii)) that amounts under any grant
awarded to a State under this paragraph
for such fiscal year will not be used
by such State during such fiscal year
for carrying out the purpose for which
the grant is made, the Secretary shall
make such amounts available in the
subsequent fiscal year for carrying out
such purpose to 1 or more States which
apply for such funds to the extent the
Secretary determines that such States
will be able to use such additional
amounts for carrying out such purpose.
Such available amounts shall be
redistributed to a State pursuant to
section 403(n) (as such section was in
effect before October 1, 1995) by
substituting `the number of children
residing in all States applying for
such funds' for `the number of children
residing in the United States in the
second preceding fiscal year'.
``(ii) Time of determination and
distribution.--The determination of the
Secretary under clause (i) for a fiscal
year shall be made not later than the
end of the first quarter of the
subsequent fiscal year. The
redistribution of amounts under clause
(i) shall be made as close as
practicable to the date on which such
determination is made. Any amount made
available to a State from an
appropriation for a fiscal year in
accordance with this subparagraph
shall, for purposes of this part, be
regarded as part of such State's
payment (as determined under this
subsection) for the fiscal year in
which the redistribution is made.
``(3) Appropriation.--For grants under this
section, there are appropriated--
``(A) $1,967,000,000 for fiscal year 1997;
``(B) $2,067,000,000 for fiscal year 1998;
``(C) $2,167,000,000 for fiscal year 1999;
``(D) $2,367,000,000 for fiscal year 2000;
``(E) $2,567,000,000 for fiscal year 2001;
and
``(F) $2,717,000,000 for fiscal year 2002.
``(4) Indian tribes.--The Secretary shall reserve
not less than 1 percent, and not more than 2 percent,
of the aggregate amount appropriated to carry out this
section in each fiscal year for payments to Indian
tribes and tribal organizations.
``(b) Use of Funds.--
``(1) In general.--Amounts received by a State
under this section shall only be used to provide child
care assistance. Amounts received by a State under a
grant under subsection (a)(1) shall be available for
use by the State without fiscal year limitation.
``(2) Use for certain populations.--A State shall
ensure that not less than 70 percent of the total
amount of funds received by the State in a fiscal year
under this section are used to provide child care
assistance to families who are receiving assistance
under a State program under this part, families who are
attempting through work activities to transition off of
such assistance program, and families who are at risk
of becoming dependent on such assistance program.
``(c) Application of Child Care and Development Block Grant
Act of 1990.--Notwithstanding any other provision of law,
amounts provided to a State under this section shall be
transferred to the lead agency under the Child Care and
Development Block Grant Act of 1990, integrated by the State
into the programs established by the State under such Act, and
be subject to requirements and limitations of such Act.
``(d) Definition.--As used in this section, the term
`State' means each of the 50 States or the District of
Columbia.''.
SEC. 604. 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. 605. APPLICATION AND PLAN.
Section 658E (42 U.S.C. 9858c) is amended--
(1) in subsection (b)--
(A) by striking ``implemented--'' and all
that follows through ``(2)'' and inserting
``implemented''; and
(B) by striking ``for subsequent State
plans'';
(2) in subsection (c)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (i) by
striking ``, other than through
assistance provided under
paragraph (3)(C),''; and
(II) by striking ``except''
and all that follows through
``1992'', and inserting ``and
provide a detailed description
of the procedures the State
will implement to carry out the
requirements of this
subparagraph'';
(ii) in subparagraph (B)--
(I) by striking ``Provide
assurances'' and inserting
``Certify''; and
(II) by inserting before
the period at the end ``and
provide a detailed description
of such procedures'';
(iii) in subparagraph (C)--
(I) by striking ``Provide
assurances'' and inserting
``Certify''; and
(II) by inserting before
the period at the end ``and
provide a detailed description
of how such record is
maintained and is made
available'';
(iv) by amending subparagraph (D)
to read as follows:
``(D) Consumer education information.--
Certify that the State will collect and
disseminate to parents of eligible children and
the general public, consumer education
information that will promote informed child
care choices.'';
(v) in subparagraph (E), to read as
follows:
``(E) Compliance with state licensing
requirements.--
``(i) In general.--Certify that the
State has in effect licensing
requirements applicable to child care
services provided within the State, and
provide a detailed description of such
requirements and of how such
requirements are effectively enforced.
Nothing in the preceding sentence shall
be construed to require that licensing
requirements be applied to specific
types of providers of child care
services.
``(ii) Indian tribes and tribal
organizations.--In lieu of any
licensing and regulatory requirements
applicable under State and local law,
the Secretary, in consultation with
Indian tribes and tribal organizations,
shall develop minimum child care
standards (that appropriately reflect
tribal needs and available resources)
that shall be applicable to Indian
tribes and tribal organization
receiving assistance under this
subchapter.'';
(vi) in subparagraph (F) by
striking ``Provide assurances'' and
inserting ``Certify'';
(vii) in subparagraph (G) by
striking ``Provide assurances'' and
inserting ``Certify''; and
(viii) by striking subparagraphs
(H), (I), and (J) and inserting the
following:
``(H) Meeting the needs of certain
populations.--Demonstrate the manner in which
the State will meet the specific child care
needs of families who are receiving assistance
under a State program under part A of title IV
of the Social Security Act, families who are
attempting through work activities to
transition off of such assistance program, and
families that are at risk of becoming dependent
on such assistance program.'';
(B) in paragraph (3)--
(i) in subparagraph (A), by
striking ``(B) and (C)'' and inserting
``(B) through (D)'';
(ii) in subparagraph (B)--
(I) by striking ``.--
Subject to the reservation
contained in subparagraph (C),
the'' and inserting ``and
related activities.--The'';
(II) in clause (i) by
striking ``; and'' at the end
and inserting a period;
(III) by striking ``for--''
and all that follows through
``section 658E(c)(2)(A)'' and
inserting ``for child care
services on a sliding fee scale
basis, activities that improve
the quality or availability of
such services, and any other
activity that the State deems
appropriate to realize any of
the goals specified in
paragraphs (2) through (5) of
section 658A(b)''; and
(IV) by striking clause
(ii);
(iii) by amending subparagraph (C)
to read as follows:
``(C) Limitation on administrative costs.--
Not more than 5 percent of the aggregate amount
of funds available to the State to carry out
this subchapter by a State in each fiscal year
may be expended for administrative costs
incurred by such State to carry out all of its
functions and duties under this subchapter. As
used in the preceding sentence, the term
`administrative costs' shall not include the
costs of providing direct services.''; and
(iv) by adding at the end thereof
the following:
``(D) Assistance for certain families.--A
State shall ensure that a substantial portion
of the amounts available (after the State has
complied with the requirement of section
418(b)(2) of the Social Security Act with
respect to each of the fiscal years 1997
through 2002) to the State to carry out
activities under this subchapter in each fiscal
year is used to provide assistance to low-
income working families other than families
described in paragraph (2)(H).''; and
(C) in paragraph (4)(A)--
(i) by striking ``provide
assurances'' and inserting ``certify'';
(ii) in the first sentence by
inserting ``and shall provide a summary
of the facts relied on by the State to
determine that such rates are
sufficient to ensure such access''
before the period; and
(iii) by striking the last
sentence.
SEC. 606. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b)(1) (42 U.S.C. 9858d(b)(1)) is amended by
striking ``No'' and inserting ``Except as provided for in
section 658O(c)(6), no''.
SEC. 607. 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. 608. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE- AND AFTER-
SCHOOL CARE REQUIREMENT.
Section 658H (42 U.S.C. 9858f) is repealed.
SEC. 609. 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. 610. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended--
(1) by striking ``expended'' and inserting
``obligated''; and
(2) by striking ``3 fiscal years'' and inserting
``fiscal year''.
SEC. 611. 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;
``(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. 612. 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. 613. 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 ``more
than 3 percent'' and inserting ``less than 1
percent, and not more than 2 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. 614. 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. 615. 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 603(a) shall
take effect on the date of enactment of this Act.
TITLE VII--CHILD NUTRITION PROGRAMS
Subtitle A--National School Lunch Act
SEC. 701. STATE DISBURSEMENT TO SCHOOLS.
(a) In General.--Section 8 of the National School Lunch Act
(42 U.S.C. 1757) is amended--
(1) in the third sentence, by striking ``Nothing''
and all that follows through ``educational agency to''
and inserting ``The State educational agency may'';
(2) by striking the fourth and fifth sentences;
(3) by redesignating the first through seventh
sentences, as amended by paragraph (2), as subsections
(a) through (g), 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 National
School Lunch Act (42 U.S.C. 1760(d)) is amended by adding at
the end the following:
``(9) Child.--
``(A) In general.--The term `child'
includes an individual, regardless of age,
who--
``(i) 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
``(ii) 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.
``(B) Relationship to child and adult care
food program.--No institution that is not
otherwise eligible to participate in the
program under section 17 shall be considered
eligible because of this paragraph.''.
SEC. 702. 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) Utilization of Agricultural Commodities.--Section 9(c)
of the National School Lunch Act (42 U.S.C. 1758(c)) is
amended--
(1) in the fifth sentence, by striking ``of the
provisions of law referred to in the preceding
sentence'' and inserting ``provision of law''; and
(2) by striking the second, fourth, and sixth
sentences.
(c) Nutritional Information.--Section 9(f) of the National
School Lunch Act (42 U.S.C. 1758(f)) is amended--
(1) by striking paragraph (1);
(2) by striking ``(2)'';
(3) by redesignating subparagraphs (A) through (D)
as paragraphs (1) through (4), respectively;
(4) by striking paragraph (1), as redesignated by
paragraph (3), and inserting the following:
``(1) Nutritional requirements.--Except as provided
in paragraph (2), not later than the first day of the
1996-1997 school year, schools that are participating
in the school lunch or school breakfast program shall
serve lunches and breakfasts under the program that--
``(A) are consistent with the goals of the
most recent Dietary Guidelines for Americans
published under section 301 of the National
Nutrition Monitoring and Related Research Act
of 1990 (7 U.S.C. 5341); and
``(B) provide, on the average over each
week, at least--
``(i) with respect to school
lunches, \1/3\ of the daily recommended
dietary allowance established by the
Food and Nutrition Board of the
National Research Council of the
National Academy of Sciences; and
``(ii) with respect to school
breakfasts, \1/4\ of the daily
recommended dietary allowance
established by the Food and Nutrition
Board of the National Research Council
of the National Academy of Sciences.'';
(5) in paragraph (3), as redesignated by paragraph
(3)--
(A) by redesignating clauses (i) and (ii)
as subparagraphs (A) and (B), respectively; and
(B) in subparagraph (A), as so
redesignated, by redesignating subclauses (I)
and (II) as clauses (i) and (ii), respectively;
and
(6) in paragraph (4), as redesignated by paragraph
(3)--
(A) by redesignating clauses (i) and (ii)
as subparagraphs (A) and (B), respectively;
(B) in subparagraph (A), as redesignated by
subparagraph (A), by redesignating subclauses
(I) and (II) as clauses (i) and (ii),
respectively; and
(C) in subparagraph (A)(ii), as
redesignated by subparagraph (B), by striking
``subparagraph (C)'' and inserting ``paragraph
(3)''.
(d) Use of Resources.--Section 9 of the National School
Lunch Act (42 U.S.C. 1758) is amended by striking subsection
(h).
SEC. 703. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 9(b)(2) of the National School Lunch Act (42 U.S.C.
1758(b)(2)) is amended by adding at the end the following:
``(D) Free and reduced price policy
statement.--After the initial submission, a
school food authority 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 food authority. A routine change in the
policy of a school food authority, 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 food authority to submit a policy
statement.''.
SEC. 704. SPECIAL ASSISTANCE.
(a) Extension of Payment Period.--Section 11(a)(1)(D)(i) of
the National School Lunch Act (42 U.S.C. 1759a(a)(1)(D)(i)) is
amended by striking ``, on the date of enactment of this
subparagraph,''.
(b) Rounding Rule for Lunch, Breakfast, and Supplement
Rates.--
(1) In general.--The third sentence of section
11(a)(3)(B) of the National School Lunch Act (42 U.S.C.
1759a(a)(3)(B)) is amended by adding before the period
at the end the following: ``, except that adjustments
to payment rates for meals and supplements served to
individuals not determined to be eligible for free or
reduced price meals and supplements shall be computed
to the nearest lower cent increment and based on the
unrounded amount for the preceding 12-month period''.
(2) Effective date.--The amendment made by
paragraph (1) shall become effective on July 1, 1997.
(c) Applicability of Other Provisions.--Section 11 of the
National School Lunch Act (42 U.S.C. 1759a) 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. 705. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
(a) Accounts and Records.--The second sentence of 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
National School Lunch Act (42 U.S.C. 1760(c)) is amended by
striking ``neither the Secretary nor the State shall'' and
inserting ``the Secretary shall not''.
(c) Definitions.--Section 12(d) of the National School
Lunch Act (42 U.S.C. 1760(d)), as amended by section 701(b), is
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 National School Lunch Act (42 U.S.C. 1760(f)) is
amended by striking ``the Trust Territory of the Pacific
Islands,''.
(e) Expedited Rulemaking.--Section 12(k) of the National
School Lunch Act (42 U.S.C. 1760(k)) is amended--
(1) by striking paragraphs (1), (2), and (5);
(2) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively; and
(3) in paragraph (1), as redesignated by paragraph
(2), by striking ``Guidelines'' and inserting
``guidelines contained in the most recent `Dietary
Guidelines for Americans' that is published under
section 301 of the National Nutrition Monitoring and
Related Research Act of 1990 (7 U.S.C. 5341)''.
(f) Waiver.--Section 12(l) of the National School Lunch Act
(42 U.S.C. 1760(l)) is amended--
(1) in paragraph (2)(A)--
(A) in clause (iii), by adding ``and'' at
the end;
(B) in clause (iv), by striking the
semicolon at the end and inserting a period;
and
(C) by striking clauses (v) through (vii);
(2) in paragraph (3)--
(A) in subparagraph (A), by striking
``(A)''; and
(B) by striking subparagraphs (B) through
(D);
(3) in paragraph (4)--
(A) in the matter preceding subparagraph
(A), by striking ``of any requirement
relating'' and inserting ``that increases
Federal costs or that relates'';
(B) by striking subparagraph (D);
(C) by redesignating subparagraphs (E)
through (N) as subparagraphs (D) through (M),
respectively; and
(D) in subparagraph (L), as redesignated by
subparagraph (C), by striking ``and'' at the
end and inserting ``or''; and
(4) in paragraph (6)--
(A) by striking ``(A)(i)'' and all that
follows through ``(B)''; and
(B) by redesignating clauses (i) through
(iv) as subparagraphs (A) through (D),
respectively.
SEC. 706. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) Establishment of Program.--Section 13(a) of the
National School Lunch Act (42 U.S.C. 1761(a)) is amended--
(1) in paragraph (1)--
(A) in the first sentence, by striking
``initiate, maintain, and expand'' and
inserting ``initiate and maintain''; and
(B) in subparagraph (E) of the second
sentence, by striking ``the Trust Territory of
the Pacific Islands,''; and
(2) in paragraph (7)(A), by striking ``Except as
provided in subparagraph (C), private'' and inserting
``Private''.
(b) Service Institutions.--Section 13(b) of the National
School Lunch Act (42 U.S.C. 1761(b)) is amended by striking
``(b)(1)'' and all that follows through the end of paragraph
(1) and inserting the following:
``(b) Service Institutions.--
``(1) Payments.--
``(A) In general.--Except as otherwise
provided in this paragraph, payments to service
institutions shall equal the full cost of food
service operations (which cost shall include
the costs of obtaining, preparing, and serving
food, but shall not include administrative
costs).
``(B) Maximum amounts.--Subject to
subparagraph (C), payments to any institution
under subparagraph (A) shall not exceed--
``(i) $1.97 for each lunch and
supper served;
``(ii) $1.13 for each breakfast
served; and
``(iii) 46 cents for each meal
supplement served.
``(C) Adjustments.--Amounts specified in
subparagraph (B) shall be adjusted on January
1, 1997, and each January 1 thereafter, to the
nearest lower cent increment to reflect 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 National School Lunch Act (42 U.S.C.
1761(b)(2)) 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 National
School Lunch Act (42 U.S.C. 1761(c)(2)) is amended--
(1) by striking subparagraphs (A), (C), (D), and
(E);
(2) by striking ``(B)'';
(3) by striking ``, and such higher education
institutions,''; and
(4) by striking ``without application'' and
inserting ``on showing residence in areas in which poor
economic conditions exist or on the basis of income
eligibility statements for children enrolled in the
program''.
(e) Advance Program Payments.--Section 13(e)(1) of the
National School Lunch Act (42 U.S.C. 1761(e)(1)) 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 National
School Lunch Act (42 U.S.C. 1761(f)) 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 subparagraph (B) of 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
National School Lunch Act (42 U.S.C. 1761(f)), as amended by
subsection (f), is 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 1 or more items of
a meal that the child does not intend to consume, under
rules that the school uses for school meals programs. 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) Records.--The second sentence of section 13(m) of the
National School Lunch Act (42 U.S.C. 1761(m)) is amended by
striking ``at all times be available'' and inserting ``be
available at any reasonable time''.
(i) Removing Mandatory Notice to Institutions.--Section
13(n)(2) of the National School Lunch Act (42 U.S.C.
1761(n)(2)) is amended by striking ``, and its plans and
schedule for informing service institutions of the availability
of the program''.
(j) Plan.--Section 13(n) of the National School Lunch Act
(42 U.S.C. 1761(n)), as amended by subsection (i), 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
paragraphs (3) through (6), respectively.
(k) Monitoring and Training.--Section 13(q) of the National
School Lunch Act (42 U.S.C. 1761(q)) 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 paragraph
(2).
(l) Expired Program.--Section 13 of the National School
Lunch Act (42 U.S.C. 1761) is amended--
(1) by striking subsection (p); and
(2) by redesignating subsections (q) and (r) as
subsections (p) and (q), respectively.
(m) Effective Date.--The amendments made by subsection (b)
shall become effective on January 1, 1997.
SEC. 707. 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) State Advisory Council.--Section 14(e) of the National
School Lunch Act (42 U.S.C. 1762a(e)) is amended to read as
follows:
``(e) Each State agency that receives food assistance
payments under this section for any school year shall consult
with representatives of schools in the State that participate
in the school lunch program with respect to the needs of such
schools relating to the manner of selection and distribution of
commodity assistance for such program.''.
(c) Cash Compensation for Pilot Project Schools.--Section
14(g) of the National School Lunch Act (42 U.S.C. 1762a(g)) is
amended by striking paragraph (3).
SEC. 708. CHILD AND ADULT CARE FOOD PROGRAM.
(a) Establishment of Program.--Section 17 of the National
School Lunch Act (42 U.S.C. 1766) is amended in the first
sentence of subsection (a), by striking ``initiate, maintain,
and expand'' and inserting ``initiate and maintain''.
(b) Payments to Sponsor Employees.--Paragraph (2) of the
last sentence of section 17(a) of the National School Lunch Act
(42 U.S.C. 1766(a)) is amended--
(1) in subparagraph (B), by striking ``and'' at the
end;
(2) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following:
``(D) in the case of a family or group day
care home sponsoring organization that employs
more than 1 employee, the organization does not
base payments to an employee of the
organization on the number of family or group
day care homes recruited.''.
(c) Technical Assistance.--The last sentence of section
17(d)(1) of the National School Lunch Act (42 U.S.C.
1766(d)(1)) is amended by striking ``, and shall provide
technical assistance'' and all that follows through ``its
application''.
(d) Reimbursement of Child Care Institutions.--Section
17(f)(2)(B) of the National School Lunch Act (42 U.S.C.
1766(f)(2)(B)) is amended by striking ``two meals and two
supplements or three meals and one supplement'' and inserting
``2 meals and 1 supplement''.
(e) Improved Targeting of Day Care Home Reimbursements.--
(1) Restructured day care home reimbursements.--
Section 17(f)(3) of the National School Lunch Act (42
U.S.C. 1766(f)(3)) is amended by striking ``(3)(A)
Institutions'' and all that follows through the end of
subparagraph (A) and inserting the following:
``(3) Reimbursement of family or group day care
home sponsoring organizations.--
``(A) Reimbursement factor.--
``(i) In general.--An institution
that participates in the program under
this section as a family or group day
care home sponsoring organization shall
be provided, for payment to a home
sponsored by the organization,
reimbursement factors in accordance
with this subparagraph for the cost of
obtaining and preparing food and
prescribed labor costs involved in
providing meals under this section.
``(ii) Tier i family or group day
care homes.--
``(I) Definition of tier i
family or group day care
home.--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 July 1,
1996.
``(IV) Adjustments.--The
reimbursement factors under
this subparagraph shall be
adjusted on July 1, 1997, and
each July 1 thereafter, to
reflect changes in the Consumer
Price Index for food at home
for the most recent 12-month
period for which the data are
available. The reimbursement
factors under this subparagraph
shall be rounded to the nearest
lower cent increment and based
on the unrounded adjustment in
effect on June 30 of the
preceding school year.
``(iii) Tier ii family or group day
care homes.--
``(I) In general.--
``(aa) Factors.--
Except as provided in
subclause (II), with
respect to meals or
supplements served
under this clause by a
family or group day
care home that does not
meet the criteria set
forth in clause
(ii)(I), the
reimbursement factors
shall be 95 cents for
lunches and suppers, 27
cents for breakfasts,
and 13 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 minimum
verification requirements that
are necessary to carry out this
clause.''.
(2) Grants to states to provide assistance to
family or group day care homes.--Section 17(f)(3) of
the National School Lunch Act (42 U.S.C. 1766(f)(3)) is
amended by adding at the end the following:
``(D) Grants to states to provide
assistance to family or group day care homes.--
``(i) In general.--
``(I) Reservation.--From
amounts made available to carry
out this section, the Secretary
shall reserve $5,000,000 of the
amount made available for
fiscal year 1997.
``(II) Purpose.--The
Secretary shall use the funds
made available under subclause
(I) to provide grants to States
for the purpose of providing--
``(aa) assistance,
including grants, to
family and day care
home sponsoring
organizations and other
appropriate
organizations, in
securing and providing
training, materials,
automated data
processing assistance,
and other assistance
for the staff of the
sponsoring
organizations; and
``(bb) training and
other assistance to
family and group day
care homes in the
implementation of the
amendment to
subparagraph (A) made
by section 708(e)(1) of
the Personal
Responsibility and Work
Opportunity
Reconciliation Act of
1996.
``(ii) Allocation.--The Secretary
shall allocate from the funds reserved
under clause (i)(I)--
``(I) $30,000 in base
funding to each State; and
``(II) any remaining amount
among the States, based on the
number of family day care homes
participating in the program in
a State during fiscal year 1995
as a percentage of the number
of all family day care homes
participating in the program
during fiscal year 1995.
``(iii) Retention of funds.--Of the
amount of funds made available to a
State for fiscal year 1997 under clause
(i), the State may retain not to exceed
30 percent of the amount to carry out
this subparagraph.
``(iv) Additional payments.--Any
payments received under this
subparagraph shall be in addition to
payments that a State receives under
subparagraph (A).''.
(3) Provision of data.--Section 17(f)(3) of the
National School Lunch Act (42 U.S.C. 1766(f)(3)), as
amended by paragraph (2), is 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 and adult care
food program under this section data
from the most recent decennial census
survey or other appropriate census
survey for which the data are available
showing which areas in the State meet
the requirements of subparagraph
(A)(ii)(I)(aa). The State agency shall
provide the data to family or group day
care home sponsoring organizations
located in the State.
``(ii) School data.--
``(I) In general.--A State
agency administering the school
lunch program under this Act or
the school breakfast program
under the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et
seq.) shall provide to approved
family or group day care home
sponsoring organizations a list
of schools serving elementary
school children in the State in
which not less than \1/2\ of
the children enrolled are
certified to receive free or
reduced price meals. The State
agency shall collect the data
necessary to create the list
annually and provide the list
on a timely basis to any
approved family or group day
care home sponsoring
organization that requests the
list.
``(II) Use of data from
preceding school year.--In
determining for a fiscal year
or other annual period whether
a home qualifies as a tier I
family or group day care home
under subparagraph (A)(ii)(I),
the State agency administering
the program under this section,
and a family or group day care
home sponsoring organization,
shall use the most current
available data at the time of
the determination.
``(iii) Duration of
determination.--For purposes of this
section, a determination that a family
or group day care home is located in an
area that qualifies the home as a tier
I family or group day care home (as the
term is defined in subparagraph
(A)(ii)(I)), shall be in effect for 3
years (unless the determination is made
on the basis of census data, in which
case the determination shall remain in
effect until more recent census data
are available) unless the State agency
determines that the area in which the
home is located no longer qualifies the
home as a tier I family or group day
care home.''.
(4) Conforming amendments.--Section 17(c) of the
National School Lunch Act (42 U.S.C. 1766(c)) 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 National School
Lunch Act (42 U.S.C. 1766(f)) is amended--
(1) in paragraph (3)--
(A) in subparagraph (B), by striking the
third and fourth sentences; and
(B) in subparagraph (C)(ii), by striking
``conduct outreach'' and all that follows
through ``may become'' and inserting ``assist
unlicensed family or group day care homes in
becoming''; and
(2) in the first sentence of paragraph (4), by
striking ``shall'' and inserting ``may''.
(g) Nutritional Requirements.--Section 17(g)(1) of the
National School Lunch Act (42 U.S.C. 1766(g)(1)) 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 National School Lunch Act (42 U.S.C. 1766) 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
National School Lunch Act (42 U.S.C. 1766(m)) is amended by
striking ``at all times'' and inserting ``at any reasonable
time''.
(j) Unneeded Provision.--Section 17 of the National School
Lunch Act is amended by striking subsection (q).
(k) Effective Date.--
(1) In general.--Except as provided in paragraph
(2), the amendments made by this section shall become
effective on the date of enactment of this Act.
(2) Improved targeting of day care home
reimbursements.--The amendments made by paragraphs (1)
and (4) of subsection (e) shall become effective on
July 1, 1997.
(3) Regulations.--
(A) Interim regulations.--Not later than
January 1, 1997, the Secretary of Agriculture
shall issue interim regulations to implement--
(i) the amendments made by
paragraphs (1), (3), and (4) of
subsection (e); and
(ii) section 17(f)(3)(C) of the
National School Lunch Act (42 U.S.C.
1766(f)(3)(C)).
(B) Final regulations.--Not later than July
1, 1997, the Secretary of Agriculture shall
issue final regulations to implement the
provisions of law referred to in subparagraph
(A).
(l) 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 and adult 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 and adult care food program under section
17 of the National School Lunch Act (42 U.S.C. 1766)
shall submit to the Secretary of Agriculture data on--
(A) the number of family day care homes
participating in the program on June 30, 1997,
and June 30, 1998;
(B) the number of family day care homes
licensed, certified, registered, or approved
for service on June 30, 1997, and June 30,
1998; and
(C) such other data as the Secretary may
require to carry out this subsection.
(3) Submission of report.--Not later than 2 years
after the date of enactment of this section, the
Secretary of Agriculture 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. 709. 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) Demonstration Project Outside School Hours.--Section
18(e) of the National School Lunch Act (42 U.S.C. 1769(e)) 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.''.
SEC. 710. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42 U.S.C.
1769a) is repealed.
SEC. 711. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42 U.S.C.
1769d) is repealed.
SEC. 712. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.
Section 24 of the National School Lunch Act (42 U.S.C.
1769e) is repealed.
Subtitle B--Child Nutrition Act of 1966
SEC. 721. SPECIAL MILK PROGRAM.
Section 3(a)(3) of the Child Nutrition Act of 1966 (42
U.S.C. 1772(a)(3)) is amended by striking ``the Trust Territory
of the Pacific Islands'' and inserting ``the Commonwealth of
the Northern Mariana Islands''.
SEC. 722. 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 food authority 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 food authority. A routine change in the
policy of a school food authority, 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 food authority to submit a policy
statement.''.
SEC. 723. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
(a) Training and Technical Assistance in Food
Preparation.--Section 4(e)(1)(B) of the Child Nutrition Act of
1966 (42 U.S.C. 1773(e)(1)(B)) is amended by striking the
second sentence.
(b) Expansion of Program; Startup and Expansion Costs.--
(1) In general.--Section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773) 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. 724. 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 Child
Nutrition Act of 1966 (42 U.S.C. 1776(e)), 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 be required
to submit to the Secretary for approval only a
substantive change in the plan.''.
SEC. 725. REGULATIONS.
Section 10(b) of the Child Nutrition Act of 1966 (42 U.S.C.
1779(b)) is amended--
(1) in paragraph (1), by striking ``(1)''; and
(2) by striking paragraphs (2) through (4).
SEC. 726. 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. 727. 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. 728. 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. 729. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS,
AND CHILDREN.
(a) Definitions.--Section 17(b) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(b)) is amended--
(1) in paragraph (15)(B)(iii), by inserting ``of
not more than 365 days'' after ``accommodation''; and
(2) in paragraph (16)--
(A) in subparagraph (A), by adding ``and''
at the end; and
(B) in subparagraph (B), by striking ``;
and'' and inserting a period; and
(C) by striking subparagraph (C).
(b) Secretary's Promotion of WIC.--Section 17(c) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(c)) is amended by
striking paragraph (5).
(c) Eligible Participants.--Section 17(d) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(d)) is amended by
striking paragraph (4).
(d) Nutrition Education.--Section 17(e) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(e)) is amended--
(1) in paragraph (2), by striking the third
sentence;
(2) in paragraph (4)--
(A) in the matter preceding subparagraph
(A), by striking ``shall'';
(B) by striking subparagraph (A);
(C) by redesignating subparagraphs (B) and
(C) as subparagraphs (A) and (B), respectively;
(D) in subparagraph (A), as so
redesignated--
(i) by inserting ``shall'' before
``provide''; and
(ii) by striking ``and'' at the
end;
(E) in subparagraph (B), as so
redesignated--
(i) by inserting ``shall'' before
``provide''; and
(ii) by striking the period at the
end and inserting ``; and''; and
(F) by adding at the end the following:
``(C) may provide a local agency with materials
describing other programs for which a participant in
the program may be eligible.'';
(3) in paragraph (5), by striking ``The State
agency shall ensure that each'' and inserting ``Each'';
and
(4) by striking paragraph (6).
(e) State Plan.--Section 17(f) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(f)) 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 be required
to submit to the Secretary for approval
only a substantive change in the
plan.'';
(B) in subparagraph (C)--
(i) by striking clause (iii) and
inserting the following:
``(iii) a plan to coordinate operations under the
program with other services or programs that may
benefit participants in, and applicants for, the
program;'';
(ii) in clause (vi), by inserting
after ``in the State'' the following:
``(including a plan to improve access
to the program for participants and
prospective applicants who are
employed, or who reside in rural
areas)'';
(iii) in clause (vii), by striking
``to provide program benefits'' and all
that follows through ``emphasis on''
and inserting ``for'';
(iv) by striking clauses (ix), (x),
and (xii);
(v) in clause (xiii), by striking
``may require'' and inserting ``may
reasonably require'';
(vi) by redesignating clauses (xi)
and (xiii), as so amended, as clauses
(ix) and (x), respectively; and
(vii) in clause (ix), as so
redesignated, by adding ``and'' at the
end;
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as
subparagraph (D);
(2) by striking paragraphs (6) and (22);
(3) in the second sentence of paragraph (5), by
striking ``at all times be available'' and inserting
``be available at any reasonable time'';
(4) in paragraph (9)(B), by striking the second
sentence;
(5) in the first sentence of paragraph (11), by
striking ``, including standards that will ensure
sufficient State agency staff'';
(6) in paragraph (12), by striking the third
sentence;
(7) in paragraph (14), by striking ``shall'' and
inserting ``may'';
(8) in paragraph (17), by striking ``and to
accommodate'' and all that follows through
``facilities'';
(9) in paragraph (19), by striking ``shall'' and
inserting ``may''; and
(10) by redesignating paragraphs (7) through (21)
as paragraphs (6) through (20), and paragraphs (23) and
(24) as paragraphs (21) and (22), respectively.
(f) Information.--Section 17(g) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(g)) 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 Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended--
(A) in paragraph (4)(E), by striking ``and,
on'' and all that follows through ``(d)(4)'';
and
(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)''.
(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 Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)) that is in
effect on the date of enactment of this subsection.
(h) National Advisory Council on Maternal, Infant, and
Fetal Nutrition.--Section 17(k)(3) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(k)(3)) 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
Child Nutrition Act of 1966 (42 U.S.C. 1786) 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 Child Nutrition Act
of 1966 (42 U.S.C. 1786), as amended by subsection (i), is
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. 730. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42 U.S.C.
1787) is repealed.
SEC. 731. 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 Child Nutrition Act
of 1966 (42 U.S.C. 1788(f)) is amended--
(1) in paragraph (1)--
(A) by striking subparagraph (B); and
(B) in subparagraph (A)--
(i) by striking ``(A)'';
(ii) by striking clauses (ix)
through (xix);
(iii) by redesignating clauses (i)
through (viii) and (xx) as
subparagraphs (A) through (H) and (I),
respectively;
(iv) in subparagraph (I), as so
redesignated, by striking the period at
the end and inserting ``; and''; and
(v) by adding at the end the
following:
``(J) other appropriate related activities, as
determined by the State.'';
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as paragraph
(2).
(c) Accounts, Records, and Reports.--The second sentence of
section 19(g)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1788(g)(1)) 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 Child Nutrition Act of 1966 (42 U.S.C. 1788(h)) 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
Child Nutrition Act of 1966 (42 U.S.C. 1788(i)) 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 Child Nutrition Act of
1966 (42 U.S.C. 1788) is amended by striking subsection (j).
(g) Effective Date.--The amendments made by subsection (e)
shall become effective on October 1, 1996.
Subtitle C--Miscellaneous Provisions
SEC. 741. COORDINATION OF SCHOOL LUNCH, SCHOOL BREAKFAST, AND SUMMER
FOOD SERVICE PROGRAMS.
(a) Coordination.--
(1) In general.--The Secretary of Agriculture shall
develop proposed changes to the regulations under the
school lunch program under the National School Lunch
Act (42 U.S.C. 1751 et seq.), the summer food service
program under section 13 of that Act (42 U.S.C. 1761),
and the school breakfast program under section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773), for the
purpose of simplifying and coordinating those programs
into a comprehensive meal program.
(2) Consultation.--In developing proposed changes
to the regulations under paragraph (1), the Secretary
of Agriculture shall consult with local, State, and
regional administrators of the programs described in
such paragraph.
(b) Report.--Not later than November 1, 1997, the Secretary
of Agriculture shall submit to the Committee on Agriculture,
Nutrition, and Forestry of the Senate and the Committee on
Economic and Educational Opportunities of the House of
Representatives a report containing the proposed changes
developed under subsection (a).
SEC. 742. REQUIREMENTS RELATING TO PROVISION OF BENEFITS BASED ON
CITIZENSHIP, ALIENAGE, OR IMMIGRATION STATUS UNDER
THE NATIONAL SCHOOL LUNCH ACT, THE CHILD NUTRITION
ACT OF 1966, AND CERTAIN OTHER ACTS.
(a) School Lunch and Breakfast Programs.--Notwithstanding
any other provision of this Act, an individual who is eligible
to receive free public education benefits under State or local
law shall not be ineligible to receive benefits provided under
the school lunch program under the National School Lunch Act
(42 U.S.C. 1751 et seq.) or the school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
on the basis of citizenship, alienage, or immigration status.
(b) Other Programs.--
(1) In general.--Nothing in this Act shall prohibit
or require a State to provide to an individual who is
not a citizen or a qualified alien, as defined in
section 431(b), benefits under programs established
under the provisions of law described in paragraph (2).
(2) Provisions of law described.--The provisions of
law described in this paragraph are the following:
(A) Programs (other than the school lunch
program and the school breakfast program) under
the National School Lunch Act (42 U.S.C. 1751
et seq.) and the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.).
(B) Section 4 of the Agriculture and
Consumer Protection Act of 1973 (7 U.S.C. 612c
note).
(C) The Emergency Food Assistance Act of
1983 (7 U.S.C 612c note).
(D) The food distribution program on Indian
reservations established under section 4(b) of
the Food Stamp Act of 1977 (7 U.S.C 2013(b)).
TITLE VIII--FOOD STAMPS AND COMMODITY DISTRIBUTION
Subtitle A--Food Stamp Program
SEC. 801. 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. 802. DEFINITION OF COUPON.
Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C.
2012(d)) is amended by striking ``or type of certificate'' and
inserting ``type of certificate, authorization card, cash or
check issued in lieu of a coupon, or access device, including
an electronic benefit transfer card or personal identification
number,''.
SEC. 803. 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. 804. 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. 805. 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. 806. STATE OPTION FOR ELIGIBILITY STANDARDS.
Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)) is amended by striking ``(b) The Secretary'' and
inserting the following:
``(b) Eligibility Standards.--Except as otherwise provided
in this Act, the Secretary''.
SEC. 807. EARNINGS OF STUDENTS.
Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)(7)) is amended by striking ``21'' and inserting ``17''.
SEC. 808. ENERGY ASSISTANCE.
(a) In General.--Section 5(d) of the Food Stamp Act of 1977
(7 U.S.C. 2014(d)) is amended by striking paragraph (11) and
inserting the following: ``(11)(A) any payments or allowances
made for the purpose of providing energy assistance under any
Federal law (other than part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.)), or (B) a 1-time payment
or allowance made under a Federal or State law for the costs of
weatherization or emergency repair or replacement of an unsafe
or inoperative furnace or other heating or cooling device,''.
(b) Conforming Amendments.--Section 5(k) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(k)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``plan
for aid to families with dependent children
approved'' and inserting ``program funded'';
and
(B) in subparagraph (B), by striking ``,
not including energy or utility-cost
assistance,'';
(2) in paragraph (2), by striking subparagraph (C)
and inserting the following:
``(C) a payment or allowance described in
subsection (d)(11);''; and
(3) by adding at the end the following:
``(4) Third party energy assistance payments.--
``(A) Energy assistance payments.--For
purposes of subsection (d)(1), a payment made
under a State law (other than a law referred to
in paragraph (2)(H)) to provide energy
assistance to a household shall be considered
money payable directly to the household.
``(B) Energy assistance expenses.--For
purposes of subsection (e)(7), an expense paid
on behalf of a household under a State law to
provide energy assistance shall be considered
an out-of-pocket expense incurred and paid by
the household.''.
SEC. 809. DEDUCTIONS FROM INCOME.
(a) In General.--Section 5 of the Food Stamp Act of 1977 (7
U.S.C. 2014) is amended by striking subsection (e) and
inserting the following:
``(e) Deductions From Income.--
``(1) Standard deduction.--The Secretary shall
allow a standard deduction for each household in the 48
contiguous States and the District of Columbia, Alaska,
Hawaii, Guam, and the Virgin Islands of the United
States of $134, $229, $189, $269, and $118,
respectively.
``(2) Earned income deduction.--
``(A) Definition of earned income.--In this
paragraph, the term `earned income' does not
include--
``(i) income excluded by subsection
(d); or
``(ii) any portion of income earned
under a work supplementation or support
program, as defined under section
16(b), that is attributable to public
assistance.
``(B) Deduction.--Except as provided in
subparagraph (C), a household with earned
income shall be allowed a deduction of 20
percent of all earned income to compensate for
taxes, other mandatory deductions from salary,
and work expenses.
``(C) Exception.--The deduction described
in subparagraph (B) shall not be allowed with
respect to determining an overissuance due to
the failure of a household to report earned
income in a timely manner.
``(3) Dependent care deduction.--
``(A) In general.--A household shall be
entitled, with respect to expenses (other than
excluded expenses described in subparagraph
(B)) for dependent care, to a dependent care
deduction, the maximum allowable level of which
shall be $200 per month for each dependent
child under 2 years of age and $175 per month
for each other dependent, for the actual cost
of payments necessary for the care of a
dependent if the care enables a household
member to accept or continue employment, or
training or education that is preparatory for
employment.
``(B) Excluded expenses.--The excluded
expenses referred to in subparagraph (A) are--
``(i) expenses paid on behalf of
the household by a third party;
``(ii) amounts made available and
excluded, for the expenses referred to
in subparagraph (A), under subsection
(d)(3); and
``(iii) expenses that are paid
under section 6(d)(4).
``(4) Deduction for child support payments.--
``(A) In general.--A household shall be
entitled to a deduction for child support
payments made by a household member to or for
an individual who is not a member of the
household if the household member is legally
obligated to make the payments.
``(B) Methods for determining amount.--The
Secretary may prescribe by regulation the
methods, including calculation on a
retrospective basis, that a State agency shall
use to determine the amount of the deduction
for child support payments.
``(5) Homeless shelter allowance.--Under rules
prescribed by the Secretary, a State agency may develop
a standard homeless shelter allowance, which shall not
exceed $143 per month, for such expenses as may
reasonably be expected to be incurred by households in
which all members are homeless individuals but are not
receiving free shelter throughout the month. A State
agency that develops the allowance may use the
allowance in determining eligibility and allotments for
the households. The State agency may make a household
with extremely low shelter costs ineligible for the
allowance.
``(6) Excess medical expense deduction.--
``(A) In general.--A household containing
an elderly or disabled member shall be
entitled, with respect to expenses other than
expenses paid on behalf of the household by a
third party, to an excess medical expense
deduction for the portion of the actual costs
of allowable medical expenses, incurred by the
elderly or disabled member, exclusive of
special diets, that exceeds $35 per month.
``(B) Method of claiming deduction.--
``(i) In general.--A State agency
shall offer an eligible household under
subparagraph (A) a method of claiming a
deduction for recurring medical
expenses that are initially verified
under the excess medical expense
deduction in lieu of submitting
information on, or verification of,
actual expenses on a monthly basis.
``(ii) Method.--The method
described in clause (i) shall--
``(I) be designed to
minimize the burden for the
eligible elderly or disabled
household member choosing to
deduct the recurrent medical
expenses of the member pursuant
to the method;
``(II) rely on reasonable
estimates of the expected
medical expenses of the member
for the certification period
(including changes that can be
reasonably anticipated based on
available information about the
medical condition of the
member, public or private
medical insurance coverage, and
the current verified medical
expenses incurred by the
member); and
``(III) not require further
reporting or verification of a
change in medical expenses if
such a change has been
anticipated for the
certification period.
``(7) Excess shelter expense deduction.--
``(A) In general.--A household shall be
entitled, with respect to expenses other than
expenses paid on behalf of the household by a
third party, to an excess shelter expense
deduction to the extent that the monthly amount
expended by a household for shelter exceeds an
amount equal to 50 percent of monthly household
income after all other applicable deductions
have been allowed.
``(B) Maximum amount of deduction.--In the
case of a household that does not contain an
elderly or disabled individual, in the 48
contiguous States and the District of Columbia,
Alaska, Hawaii, Guam, and the Virgin Islands of
the United States, the excess shelter expense
deduction shall not exceed--
``(i) for the period beginning on
the date of enactment of this
subparagraph and ending on December 31,
1996, $247, $429, $353, $300, and $182
per month, respectively;
``(ii) for the period beginning on
January 1, 1997, and ending on
September 30, 1998, $250, $434, $357,
$304, and $184 per month, respectively;
``(iii) for fiscal years 1999 and
2000, $275, $478, $393, $334, and $203
per month, respectively; and
``(iv) for fiscal year 2001 and
each subsequent fiscal year, $300,
$521, $429, $364, and $221 per month,
respectively.
``(C) Standard utility allowance.--
``(i) In general.--In computing the
excess shelter expense deduction, a
State agency may use a standard utility
allowance in accordance with
regulations promulgated by the
Secretary, except that a State agency
may use an allowance that does not
fluctuate within a year to reflect
seasonal variations.
``(ii) Restrictions on heating and
cooling expenses.--An allowance for a
heating or cooling expense may not be
used in the case of a household that--
``(I) does not incur a
heating or cooling expense, as
the case may be;
``(II) does incur a heating
or cooling expense but is
located in a public housing
unit that has central utility
meters and charges households,
with regard to the expense,
only for excess utility costs;
or
``(III) shares the expense
with, and lives with, another
individual not participating in
the food stamp program, another
household participating in the
food stamp program, or both,
unless the allowance is
prorated between the household
and the other individual,
household, or both.
``(iii) Mandatory allowance.--
``(I) In general.--A State
agency may make the use of a
standard utility allowance
mandatory for all households
with qualifying utility costs
if--
``(aa) the State
agency has developed 1
or more standards that
include the cost of
heating and cooling and
1 or more standards
that do not include the
cost of heating and
cooling; and
``(bb) the
Secretary finds that
the standards will not
result in an increased
cost to the Secretary.
``(II) Household
election.--A State agency that
has not made the use of a
standard utility allowance
mandatory under subclause (I)
shall allow a household to
switch, at the end of a
certification period, between
the standard utility allowance
and a deduction based on the
actual utility costs of the
household.
``(iv) Availability of allowance to
recipients of energy assistance.--
``(I) In general.--Subject
to subclause (II), if a State
agency elects to use a standard
utility allowance that reflects
heating or cooling costs, the
standard utility allowance
shall be made available to
households receiving a payment,
or on behalf of which a payment
is made, under the Low-Income
Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.)
or other similar energy
assistance program, if the
household still incurs out-of-
pocket heating or cooling
expenses in excess of any
assistance paid on behalf of
the household to an energy
provider.
``(II) Separate
allowance.--A State agency may
use a separate standard utility
allowance for households on
behalf of which a payment
described in subclause (I) is
made, but may not be required
to do so.
``(III) States not electing
to use separate allowance.--A
State agency that does not
elect to use a separate
allowance but makes a single
standard utility allowance
available to households
incurring heating or cooling
expenses (other than a
household described in
subclause (I) or (II) of clause
(ii)) may not be required to
reduce the allowance due to the
provision (directly or
indirectly) of assistance under
the Low-Income Home Energy
Assistance Act of 1981 (42
U.S.C. 8621 et seq.).
``(IV) Proration of
assistance.--For the purpose of
the food stamp program,
assistance provided under the
Low-Income Home Energy
Assistance Act of 1981 (42
U.S.C. 8621 et seq.) shall be
considered to be prorated over
the entire heating or cooling
season for which the assistance
was provided.''.
(b) Conforming Amendment.--Section 11(e)(3) of the Food
Stamp Act of 1977 (7 U.S.C. 2020(e)(3)) is amended by striking
``. Under rules prescribed'' and all that follows through
``verifies higher expenses''.
SEC. 810. VEHICLE ALLOWANCE.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)) is amended by striking paragraph (2) and inserting the
following:
``(2) Included assets.--
``(A) In general.--Subject to the other
provisions of this paragraph, the Secretary
shall, in prescribing inclusions in, and
exclusions from, financial resources, follow
the regulations in force as of June 1, 1982
(other than those relating to licensed vehicles
and inaccessible resources).
``(B) Additional included assets.--The
Secretary shall include in financial
resources--
``(i) any boat, snowmobile, or
airplane used for recreational
purposes;
``(ii) any vacation home;
``(iii) any mobile home used
primarily for vacation purposes;
``(iv) subject to subparagraph (C),
any licensed vehicle that is used for
household transportation or to obtain
or continue employment to the extent
that the fair market value of the
vehicle exceeds $4,600 through
September 30, 1996, and $4,650
beginning October 1, 1996; 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. 811. 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. 812. SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-EMPLOYED.
Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014), as
amended by title I, is amended by adding at the end the
following:
``(m) Simplified Calculation of Income for the Self-
Employed.--
``(1) In general.--Not later than 1 year after the
date of enactment of this subsection, the Secretary
shall establish a procedure by which a State may submit
a method, designed to not increase Federal costs, for
the approval of the Secretary, that the Secretary
determines will produce a reasonable estimate of income
excluded under subsection (d)(9) in lieu of calculating
the actual cost of producing self-employment income.
``(2) Inclusive of all types of income or limited
types of income.--The method submitted by a State under
paragraph (1) may allow a State to estimate income for
all types of self-employment income or may be limited
to 1 or more types of self-employment income.
``(3) Differences for different types of income.--
The method submitted by a State under paragraph (1) may
differ for different types of self-employment
income.''.
SEC. 813. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM
REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)) is amended--
(1) in clause (i), by striking ``six months'' and
inserting ``1 year''; and
(2) in clause (ii), by striking ``1 year'' and
inserting ``2 years''.
SEC. 814. DISQUALIFICATION OF CONVICTED INDIVIDUALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)(iii)) is amended--
(1) in subclause (II), by striking ``or'' at the
end;
(2) in subclause (III), by striking the period at
the end and inserting ``; or''; and
(3) by inserting after subclause (III) the
following:
``(IV) a conviction of an offense under
subsection (b) or (c) of section 15 involving
an item covered by subsection (b) or (c) of
section 15 having a value of $500 or more.''.
SEC. 815. DISQUALIFICATION.
(a) In General.--Section 6(d) of the Food Stamp Act of 1977
(7 U.S.C. 2015(d)) is amended by striking ``(d)(1) Unless
otherwise exempted by the provisions'' and all that follows
through the end of paragraph (1) and inserting the following:
``(d) Conditions of Participation.--
``(1) Work requirements.--
``(A) In general.--No physically and
mentally fit individual over the age of 15 and
under the age of 60 shall be eligible to
participate in the food stamp program if the
individual--
``(i) refuses, at the time of
application and every 12 months
thereafter, to register for employment
in a manner prescribed by the
Secretary;
``(ii) refuses without good cause
to participate in an employment and
training program established under
paragraph (4), to the extent required
by the State agency;
``(iii) refuses without good cause
to accept an offer of employment, at a
site or plant not subject to a strike
or lockout at the time of the refusal,
at a wage not less than the higher of--
``(I) the applicable
Federal or State minimum wage;
or
``(II) 80 percent of the
wage that would have governed
had the minimum hourly rate
under section 6(a)(1) of the
Fair Labor Standards Act of
1938 (29 U.S.C. 206(a)(1)) been
applicable to the offer of
employment;
``(iv) refuses without good cause
to provide a State agency with
sufficient information to allow the
State agency to determine the
employment status or the job
availability of the individual;
``(v) voluntarily and without good
cause--
``(I) quits a job; or
``(II) reduces work effort
and, after the reduction, the
individual is working less than
30 hours per week; or
``(vi) fails to comply with section
20.
``(B) Household ineligibility.--If an
individual who is the head of a household
becomes ineligible to participate in the food
stamp program under subparagraph (A), the
household shall, at the option of the State
agency, become ineligible to participate in the
food stamp program for a period, determined by
the State agency, that does not exceed the
lesser of--
``(i) the duration of the
ineligibility of the individual
determined under subparagraph (C); or
``(ii) 180 days.
``(C) Duration of ineligibility.--
``(i) First violation.--The first
time that an individual becomes
ineligible to participate in the food
stamp program under subparagraph (A),
the individual shall remain ineligible
until the later of--
``(I) the date the
individual becomes eligible
under subparagraph (A);
``(II) the date that is 1
month after the date the
individual became ineligible;
or
``(III) a date determined
by the State agency that is not
later than 3 months after the
date the individual became
ineligible.
``(ii) Second violation.--The
second time that an individual becomes
ineligible to participate in the food
stamp program under subparagraph (A),
the individual shall remain ineligible
until the later of--
``(I) the date the
individual becomes eligible
under subparagraph (A);
``(II) the date that is 3
months after the date the
individual became ineligible;
or
``(III) a date determined
by the State agency that is not
later than 6 months after the
date the individual became
ineligible.
``(iii) Third or subsequent
violation.--The third or subsequent
time that an individual becomes
ineligible to participate in the food
stamp program under subparagraph (A),
the individual shall remain ineligible
until the later of--
``(I) the date the
individual becomes eligible
under subparagraph (A);
``(II) the date that is 6
months after the date the
individual became ineligible;
``(III) a date determined
by the State agency; or
``(IV) at the option of the
State agency, permanently.
``(D) Administration.--
``(i) Good cause.--The Secretary
shall determine the meaning of good
cause for the purpose of this
paragraph.
``(ii) Voluntary quit.--The
Secretary shall determine the meaning
of voluntarily quitting and reducing
work effort for the purpose of this
paragraph.
``(iii) Determination by state
agency.--
``(I) In general.--Subject
to subclause (II) and clauses
(i) and (ii), a State agency
shall determine--
``(aa) the meaning
of any term used 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 use a meaning,
procedure, or determination
under subclause (I) that is
less restrictive on individuals
receiving benefits under this
Act 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
purposes 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 of the Food Stamp Act of 1977 (7
U.S.C. 2029) is amended by striking subsection (f) and
inserting the following:
``(f) Disqualification.--An individual or a household may
become ineligible under section 6(d)(1) to participate in the
food stamp program for failing to comply with this section.''.
SEC. 816. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(2)) is amended by adding at the end the following: ``A
State that requested a waiver to lower the age specified in
subparagraph (B) and had the waiver denied by the Secretary as
of August 1, 1996, may, for a period of not more than 3 years,
lower the age of a dependent child that qualifies a parent or
other member of a household for an exemption under subparagraph
(B) to between 1 and 6 years of age.''.
SEC. 817. 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) by striking ``(4)(A) Not later than April 1,
1987, each'' and inserting the following:
``(4) Employment and training.--
``(A) In general.--
``(i) Implementation.--Each'';
(2) in subparagraph (A)--
(A) by inserting ``work,'' after ``skills,
training,''; and
(B) by adding at the end the following:
``(ii) Statewide workforce
development system.--Each component of
an employment and training program
carried out under this paragraph shall
be delivered through a statewide
workforce development system, unless
the component is not available locally
through such a system.'';
(3) in subparagraph (B)--
(A) in the matter preceding clause (i), by
striking the colon at the end and inserting the
following: ``, except that the State agency
shall retain the option to apply employment
requirements prescribed under this subparagraph
to a program applicant at the time of
application:'';
(B) in clause (i), by striking ``with terms
and conditions'' and all that follows through
``time of application''; and
(C) in clause (iv)--
(i) by striking subclauses (I) and
(II); and
(ii) by redesignating subclauses
(III) and (IV) as subclauses (I) and
(II), respectively;
(4) 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'';
(5) in subparagraph (E), by striking the third
sentence;
(6) in subparagraph (G)--
(A) by striking ``(G)(i) The State'' and
inserting ``(G) The State''; and
(B) by striking clause (ii);
(7) in subparagraph (H), by striking ``(H)(i) The
Secretary'' and all that follows through ``(ii) Federal
funds'' and inserting ``(H) Federal funds'';
(8) in subparagraph (I)(i)(II), by striking ``, or
was in operation,'' and all that follows through
``Social Security Act'' and inserting the following:
``), except that no such payment or reimbursement shall
exceed the applicable local market rate'';
(9)(A) by striking subparagraphs (K) and (L) and
inserting the following:
``(K) Limitation on funding.--
Notwithstanding any other provision of this
paragraph, the amount of funds a State agency
uses to carry out this paragraph (including
funds used to carry out subparagraph (I)) for
participants who are receiving benefits under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.) shall not exceed the amount of funds the
State agency used in fiscal year 1995 to carry
out this paragraph for participants who were
receiving benefits in fiscal year 1995 under a
State program funded under part A of title IV
of the Act (42 U.S.C. 601 et seq.).''; and
(B) by redesignating subparagraphs (M) and (N) as
subparagraphs (L) and (M), respectively; and
(10) in subparagraph (L), as so redesignated--
(A) by striking ``(L)(i) The Secretary''
and inserting ``(L) The Secretary''; and
(B) by striking clause (ii).
(b) Funding.--Section 16(h) of the 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--
``(i) for fiscal year 1996,
$75,000,000;
``(ii) for fiscal year 1997,
$79,000,000;
``(iii) for fiscal year 1998,
$81,000,000;
``(iv) for fiscal year 1999,
$84,000,000;
``(v) for fiscal year 2000,
$86,000,000;
``(vi) for fiscal year 2001,
$88,000,000; and
``(vii) for fiscal year 2002,
$90,000,000.
``(B) Allocation.--The Secretary shall
allocate the amounts reserved under
subparagraph (A) among the State agencies using
a reasonable formula (as determined by the
Secretary) that gives consideration to the
population in each State affected by section
6(o).
``(C) Reallocation.--
``(i) Notification.--A State agency
shall promptly notify the Secretary if
the State agency determines that the
State agency will not expend all of the
funds allocated to the State agency
under subparagraph (B).
``(ii) Reallocation.--On
notification under clause (i), the
Secretary shall reallocate the funds
that the State agency will not expend
as the Secretary considers appropriate
and equitable.
``(D) Minimum allocation.--Notwithstanding
subparagraphs (A) through (C), the Secretary
shall ensure that each State agency operating
an employment and training program shall
receive not less than $50,000 for each fiscal
year.''.
(c) Additional Matching Funds.--Section 16(h)(2) of the
Food Stamp Act of 1977 (7 U.S.C. 2025(h)(2)) is amended by
inserting before the period at the end the following: ``,
including the costs for case management and casework to
facilitate the transition from economic dependency to self-
sufficiency through work''.
(d) Reports.--Section 16(h) of the 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. 818. FOOD STAMP ELIGIBILITY.
The third sentence of section 6(f) of the Food Stamp Act of
1977 (7 U.S.C. 2015(f)) is amended by inserting ``, at State
option,'' after ``less''.
SEC. 819. COMPARABLE TREATMENT FOR DISQUALIFICATION.
(a) In General.--Section 6 of the Food Stamp Act of 1977 (7
U.S.C. 2015) is amended by adding at the end the following:
``(i) Comparable Treatment for Disqualification.--
``(1) In general.--If a disqualification is imposed
on a member of a household for a failure of the member
to perform an action required under a Federal, State,
or local law relating to a means-tested public
assistance program, the State agency may impose the
same disqualification on the member of the household
under the food stamp program.
``(2) Rules and procedures.--If a disqualification
is imposed under paragraph (1) for a failure of an
individual to perform an action required under part A
of title IV of the Social Security Act (42 U.S.C. 601
et seq.), the State agency may use the rules and
procedures that apply under part A of title IV of the
Act to impose the same disqualification under the food
stamp program.
``(3) Application after disqualification period.--A
member of a household disqualified under paragraph (1)
may, after the disqualification period has expired,
apply for benefits under this Act and shall be treated
as a new applicant, except that a prior
disqualification under subsection (d) shall be
considered in determining eligibility.''.
(b) State Plan Provisions.--Section 11(e) of the 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. 820. 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 819, 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. 821. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by section 820, 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. 822. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by section 821, is amended by adding at the end the
following:
``(l) Custodial Parent's Cooperation With Child Support
Agencies.--
``(1) In general.--At the option of a State agency,
subject to paragraphs (2) and (3), no natural or
adoptive parent or other individual (collectively
referred to in this subsection as `the individual') who
is living with and exercising parental control over a
child under the age of 18 who has an absent parent
shall be eligible to participate in the food stamp
program unless the individual cooperates with the State
agency administering the program established under part
D of title IV of the Social Security Act (42 U.S.C. 651
et seq.)--
``(A) in establishing the paternity of the
child (if the child is born out of wedlock);
and
``(B) in obtaining support for--
``(i) the child; or
``(ii) the individual and the
child.
``(2) Good cause for noncooperation.--Paragraph (1)
shall not apply to the individual if good cause is
found for refusing to cooperate, as determined by the
State agency in accordance with standards prescribed by
the Secretary in consultation with the Secretary of
Health and Human Services. The standards shall take
into consideration circumstances under which
cooperation may be against the best interests of the
child.
``(3) Fees.--Paragraph (1) shall not require the
payment of a fee or other cost for services provided
under part D of title IV of the Social Security Act (42
U.S.C. 651 et seq.).
``(m) Noncustodial Parent's Cooperation With Child Support
Agencies.--
``(1) In general.--At the option of a State agency,
subject to paragraphs (2) and (3), a putative or
identified noncustodial parent of a child under the age
of 18 (referred to in this subsection as `the
individual') shall not be eligible to participate in
the food stamp program if the individual refuses to
cooperate with the State agency administering the
program established under part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.)--
``(A) in establishing the paternity of the
child (if the child is born out of wedlock);
and
``(B) in providing support for the child.
``(2) Refusal to cooperate.--
``(A) Guidelines.--The Secretary, in
consultation with the Secretary of Health and
Human Services, shall develop guidelines on
what constitutes a refusal to cooperate under
paragraph (1).
``(B) Procedures.--The State agency shall
develop procedures, using guidelines developed
under subparagraph (A), for determining whether
an individual is refusing to cooperate under
paragraph (1).
``(3) Fees.--Paragraph (1) shall not require the
payment of a fee or other cost for services provided
under part D of title IV of the Social Security Act (42
U.S.C. 651 et seq.).
``(4) Privacy.--The State agency shall provide
safeguards to restrict the use of information collected
by a State agency administering the program established
under part D of title IV of the Social Security Act (42
U.S.C. 651 et seq.) to purposes for which the
information is collected.''.
SEC. 823. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by section 822, is amended by adding at the end the
following:
``(n) Disqualification for Child Support Arrears.--
``(1) In general.--At the option of a State agency,
no individual shall be eligible to participate in the
food stamp program as a member of any household during
any month that the individual is delinquent in any
payment due under a court order for the support of a
child of the individual.
``(2) Exceptions.--Paragraph (1) shall not apply
if--
``(A) a court is allowing the individual to
delay payment; or
``(B) the individual is complying with a
payment plan approved by a court or the State
agency designated under part D of title IV of
the Social Security Act (42 U.S.C. 651 et seq.)
to provide support for the child of the
individual.''.
SEC. 824. WORK REQUIREMENT.
(a) In General.--Section 6 of the Food Stamp Act of 1977 (7
U.S.C. 2015), as amended by section 823, 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); and
``(C) a program of employment and training
operated or supervised by a State or political
subdivision of a State that meets standards
approved by the Governor of the State,
including a program under subsection (d)(4),
other than a job search program or a job search
training program.
``(2) Work requirement.--Subject to the other
provisions of this subsection, no individual shall be
eligible to participate in the food stamp program as a
member of any household if, during the preceding 36-
month period, the individual received food stamp
benefits for not less than 3 months (consecutive or
otherwise) during which 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 20 hours or
more per week, as determined by the State
agency;
``(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; or
``(D) receive benefits pursuant to
paragraph (3), (4), or (5).
``(3) Exception.--Paragraph (2) shall not apply to
an individual if the individual is--
``(A) under 18 or over 50 years of age;
``(B) medically certified as physically or
mentally unfit for employment;
``(C) a parent or other member of a
household with responsibility for a dependent
child;
``(D) otherwise exempt under subsection
(d)(2); or
``(E) a pregnant woman.
``(4) Waiver.--
``(A) In general.--On the request of a
State agency, the Secretary may waive the
applicability of paragraph (2) to any group of
individuals in the State if the Secretary makes
a determination that the area in which the
individuals reside--
``(i) has an unemployment rate of
over 10 percent; or
``(ii) does not have a sufficient
number of jobs to provide employment
for the individuals.
``(B) Report.--The Secretary shall report
the basis for a waiver under subparagraph (A)
to the Committee on Agriculture of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate.
``(5) Subsequent eligibility.--
``(A) Regaining eligibility.--An individual
denied eligibility under paragraph (2) shall
regain eligibility to participate in the food
stamp program if, during a 30-day period, the
individual--
``(i) works 80 or more hours;
``(ii) participates in and complies
with the requirements of a work program
for 80 or more hours, as determined by
a State agency; or
``(iii) participates in and
complies with the requirements of a
program under section 20 or a
comparable program established by a
State or political subdivision of a
State.
``(B) Maintaining eligibility.--An
individual who regains eligibility under
subparagraph (A) shall remain eligible as long
as the individual meets the requirements of
subparagraph (A), (B), or (C) of paragraph (2).
``(C) Loss of employment.--
``(i) In general.--An individual
who regained eligibility under
subparagraph (A) and who no longer
meets the requirements of subparagraph
(A), (B), or (C) of paragraph (2) shall
remain eligible for a consecutive 3-
month period, beginning on the date the
individual first notifies the State
agency that the individual no longer
meets the requirements of subparagraph
(A), (B), or (C) of paragraph (2).
``(ii) Limitation.--An individual
shall not receive any benefits pursuant
to clause (i) for more than a single 3-
month period in any 36-month period.
``(6) Other program rules.--Nothing in this
subsection shall make an individual eligible for
benefits under this Act if the individual is not
otherwise eligible for benefits under the other
provisions of this Act.''.
(b) Transition Provision.--The term ``preceding 36-month
period'' in section 6(o) of the Food Stamp Act of 1977, as
added by subsection (a), does not include, with respect to a
State, any period before the earlier of--
(1) the date the State notifies recipients of food
stamp benefits of the application of section 6(o); or
(2) the date that is 3 months after the date of
enactment of this Act.
SEC. 825. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER SYSTEMS.
(a) In General.--Section 7(i) of the Food Stamp Act of 1977
(7 U.S.C. 2016(i)) is amended--
(1) by striking ``(i)(1)(A) Any State'' and all
that follows through the end of paragraph (1) and
inserting the following:
``(i) Electronic Benefit Transfers.--
``(1) In general.--
``(A) Implementation.--Not later than
October 1, 2002, each State agency shall
implement an electronic benefit transfer system
under which household benefits determined under
section 8(a) or 26 are issued from and stored
in a central databank, unless the Secretary
provides a waiver for a State agency that faces
unusual barriers to implementing an electronic
benefit transfer system.
``(B) Timely implementation.--Each State
agency is encouraged to implement an electronic
benefit transfer system under subparagraph (A)
as soon as practicable.
``(C) State flexibility.--Subject to
paragraph (2), a State agency may procure and
implement an electronic benefit transfer system
under the terms, conditions, and design that
the State agency considers appropriate.
``(D) Operation.--An electronic benefit
transfer system should take into account
generally accepted standard operating rules
based on--
``(i) commercial electronic funds
transfer technology;
``(ii) the need to permit
interstate operation and law
enforcement monitoring; and
``(iii) the need to permit
monitoring and investigations by
authorized law enforcement agencies.'';
(2) in paragraph (2)--
(A) by striking ``effective no later than
April 1, 1992,'';
(B) in subparagraph (A)--
(i) by striking ``, in any 1
year,''; and
(ii) by striking ``on-line'';
(C) by striking subparagraph (D) and
inserting the following:
``(D)(i) measures to maximize the security
of a system using the most recent technology
available that the State agency considers
appropriate and cost effective and which may
include personal identification numbers,
photographic identification on electronic
benefit transfer cards, and other measures to
protect against fraud and abuse; and
``(ii) effective not later than 2 years
after the date of enactment of this clause, to
the extent practicable, measures that permit a
system to differentiate items of food that may
be acquired with an allotment from items of
food that may not be acquired with an
allotment;'';
(D) in subparagraph (G), by striking
``and'' at the end;
(E) in subparagraph (H), by striking the
period at the end and inserting ``; and''; and
(F) by adding at the end the following:
``(I) procurement standards.''; and
(3) by adding at the end the following:
``(7) Replacement of benefits.--Regulations issued
by the Secretary regarding the replacement of benefits
and liability for replacement of benefits under an
electronic benefit transfer system shall be similar to
the regulations in effect for a paper-based food stamp
issuance system.
``(8) Replacement card fee.--A State agency may
collect a charge for replacement of an electronic
benefit transfer card by reducing the monthly allotment
of the household receiving the replacement card.
``(9) Optional photographic identification.--
``(A) In general.--A State agency may
require that an electronic benefit card contain
a photograph of 1 or more members of a
household.
``(B) Other authorized users.--If a State
agency requires a photograph on an electronic
benefit card under subparagraph (A), the State
agency shall establish procedures to ensure
that any other appropriate member of the
household or any authorized representative of
the household may utilize the card.
``(10) Applicable law.--Disclosures, protections,
responsibilities, and remedies established by the
Federal Reserve Board under section 904 of the
Electronic Fund Transfer Act (15 U.S.C. 1693b) shall
not apply to benefits under this Act delivered through
any electronic benefit transfer system.
``(11) Application of anti-tying restrictions to
electronic benefit transfer systems.--
``(A) Definitions.--In this paragraph:
``(i) Affiliate.--The term
`affiliate' has the meaning provided
the term in section 2(k) of the Bank
Holding Company Act of 1956 (12 U.S.C.
1841(k)).
``(ii) Company.--The term `company'
has the meaning provided the term in
section 106(a) of the Bank Holding
Company Act Amendments of 1970 (12
U.S.C. 1971), but shall not include a
bank, a bank holding company, or any
subsidiary of a bank holding company.
``(iii) Electronic benefit transfer
service.--The term `electronic benefit
transfer service' means the processing
of electronic transfers of household
benefits, determined under section 8(a)
or 26, if the benefits are--
``(I) issued from and
stored in a central databank;
``(II) electronically
accessed by household members
at the point of sale; and
``(III) provided by a
Federal or State government.
``(iv) Point-of-sale service.--The
term `point-of-sale service' means any
product or service related to the
electronic authorization and processing
of payments for merchandise at a retail
food store, including credit or debit
card services, automated teller
machines, point-of-sale terminals, or
access to on-line systems.
``(B) Restrictions.--A company may not sell
or provide electronic benefit transfer
services, or fix or vary the consideration for
electronic benefit transfer services, on the
condition or requirement that the customer--
``(i) obtain some additional point-
of-sale service from the company or an
affiliate of the company; or
``(ii) not obtain some additional
point-of-sale service from a competitor
of the company or competitor of any
affiliate of the company.
``(C) Consultation with the federal reserve
board.--Before promulgating regulations or
interpretations of regulations to carry out
this paragraph, the Secretary shall consult
with the Board of Governors of the Federal
Reserve System.''.
(b) Sense of Congress.--It is the sense of Congress that a
State that operates an electronic benefit transfer system under
the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should
operate the system in a manner that is compatible with
electronic benefit transfer systems operated by other States.
SEC. 826. 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. 827. 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. 828. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C.
2017(c)) is amended by striking paragraph (3) and inserting the
following:
``(3) Optional combined allotment for expedited
households.--A State agency may provide to an eligible
household applying after the 15th day of a month, in
lieu of the initial allotment of the household and the
regular allotment of the household for the following
month, an allotment that is equal to the total amount
of the initial allotment and the first regular
allotment. The allotment shall be provided in
accordance with section 11(e)(3) in the case of a
household that is not entitled to expedited service and
in accordance with paragraphs (3) and (9) of section
11(e) in the case of a household that is entitled to
expedited service.''.
SEC. 829. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC ASSISTANCE
PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is
amended by striking subsection (d) and inserting the following:
``(d) Reduction of Public Assistance Benefits.--
``(1) In general.--If the benefits of a household
are reduced under a Federal, State, or local law
relating to a means-tested public assistance program
for the failure of a member of the household to perform
an action required under the law or program, for the
duration of the reduction--
``(A) the household may not receive an
increased allotment as the result of a decrease
in the income of the household to the extent
that the decrease is the result of the
reduction; and
``(B) the State agency may reduce the
allotment of the household by not more than 25
percent.
``(2) Rules and procedures.--If the allotment of a
household is reduced under this subsection for a
failure to perform an action required under part A of
title IV of the Social Security Act (42 U.S.C. 601 et
seq.), the State agency may use the rules and
procedures that apply under part A of title IV of the
Act to reduce the allotment under the food stamp
program.''.
SEC. 830. 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. 831. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD STORES AND
WHOLESALE FOOD CONCERNS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)(1)) is amended by adding at the end the following: ``No
retail food store or wholesale food concern of a type
determined by the Secretary, based on factors that include
size, location, and type of items sold, shall be approved to be
authorized or reauthorized for participation in the food stamp
program unless an authorized employee of the Department of
Agriculture, a designee of the Secretary, or, if practicable,
an official of the State or local government designated by the
Secretary has visited the store or concern for the purpose of
determining whether the store or concern should be approved or
reauthorized, as appropriate.''.
SEC. 832. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.
Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)) is amended by adding at the end the following:
``(3) Authorization periods.--The Secretary shall
establish specific time periods during which
authorization to accept and redeem coupons, or to
redeem benefits through an electronic benefit transfer
system, shall be valid under the food stamp program.''.
SEC. 833. INFORMATION FOR VERIFYING ELIGIBILITY FOR AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C.
2018(c)) is amended--
(1) in the first sentence, by inserting ``, which
may include relevant income and sales tax filing
documents,'' after ``submit information''; and
(2) by inserting after the first sentence the
following: ``The regulations may require retail food
stores and wholesale food concerns to provide written
authorization for the Secretary to verify all relevant
tax filings with appropriate agencies and to obtain
corroborating documentation from other sources so that
the accuracy of information provided by the stores and
concerns may be verified.''.
SEC. 834. WAITING PERIOD FOR STORES THAT FAIL TO MEET AUTHORIZATION
CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C.
2018(d)) is amended by adding at the end the following: ``A
retail food store or wholesale food concern that is denied
approval to accept and redeem coupons because the store or
concern does not meet criteria for approval established by the
Secretary may not, for at least 6 months, submit a new
application to participate in the program. The Secretary may
establish a longer time period under the preceding sentence,
including permanent disqualification, that reflects the
severity of the basis of the denial.''.
SEC. 835. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020),
as amended by sections 809(b) and 819(b), is amended--
(1) in subsection (e)--
(A) by striking paragraph (2) and inserting
the following:
``(2)(A) that the State agency shall establish
procedures governing the operation of food stamp
offices that the State agency determines best serve
households in the State, including households with
special needs, such as households with elderly or
disabled members, households in rural areas with low-
income members, homeless individuals, households
residing on reservations, and households in areas in
which a substantial number of members of low-income
households speak a language other than English.
``(B) 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;'';
(B) in paragraph (3)--
(i) by striking ``shall--'' and all
that follows through ``provide each''
and inserting ``shall provide each'';
and
(ii) by striking ``(B) assist'' and
all that follows through
``representative of the State
agency;'';
(C) by striking paragraphs (14) and (25);
(D)(i) by redesignating paragraphs (15)
through (24) as paragraphs (14) through (23),
respectively; and
(ii) by redesignating paragraph (26), as
paragraph (24); and
(2) in subsection (i)--
(A) by striking ``(i) Notwithstanding'' and
all that follows through ``(2)'' and inserting
the following:
``(i) Application and Denial Procedures.--
``(1) Application procedures.--Notwithstanding any
other provision of law,''; and
(B) by striking ``; (3) households'' and
all that follows through ``title IV of the
Social Security Act. No'' and inserting a
period and the following:
``(2) Denial and termination.--Except in a case of
disqualification as a penalty for failure to comply
with a public assistance program rule or regulation,
no''.
SEC. 836. STATE EMPLOYEE AND TRAINING STANDARDS.
Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(6)) is amended--
(1) by striking ``that (A) the'' and inserting
``that--
``(A) the'';
(2) by striking ``Act; (B) the'' and inserting
``Act; and
``(B) the'';
(3) in subparagraph (B), by striking ``United
States Civil Service Commission'' and inserting
``Office of Personnel Management''; and
(4) by striking subparagraphs (C) through (E).
SEC. 837. EXCHANGE OF LAW ENFORCEMENT INFORMATION.
Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(8)) is amended--
(1) by striking ``that (A) such'' and inserting the
following: ``that--
``(A) the'';
(2) by striking ``law, (B) notwithstanding'' and
inserting the following: ``law;
``(B) notwithstanding'';
(3) by striking ``Act, and (C) such'' and inserting
the following: ``Act;
``(C) the''; and
(4) by adding at the end the following:
``(D) notwithstanding any other provision
of law, the address, social security number,
and, if available, photograph of any member of
a household shall be made available, on
request, to any Federal, State, or local law
enforcement officer if the officer furnishes
the State agency with the name of the member
and notifies the agency that--
``(i) the member--
``(I) is fleeing to avoid
prosecution, or custody or
confinement after conviction,
for a crime (or attempt to
commit a crime) that, under the
law of the place the member is
fleeing, is a felony (or, in
the case of New Jersey, a high
misdemeanor), or is violating a
condition of probation or
parole imposed under Federal or
State law; or
``(II) has information that
is necessary for the officer to
conduct an official duty
related to subclause (I);
``(ii) locating or apprehending the
member is an official duty; and
``(iii) the request is being made
in the proper exercise of an official
duty; and
``(E) the safeguards shall not prevent
compliance with paragraph (16);''.
SEC. 838. 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), by striking ``five days''
and inserting ``7 days'';
(2) by striking subparagraph (B);
(3) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C);
(4) in subparagraph (B), as redesignated by
paragraph (3), by striking ``five days'' and inserting
``7 days''; and
(5) in subparagraph (C), as redesignated by
paragraph (3), by striking ``, (B), or (C)'' and
inserting ``or (B)''.
SEC. 839. 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. 840. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICATION
SYSTEMS.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is
amended--
(1) in subsection (e)(18), as redesignated by
section 835(1)(D)--
(A) by striking ``that information is'' and
inserting ``at the option of the State agency,
that information may be''; and
(B) by striking ``shall be requested'' and
inserting ``may be requested''; and
(2) by adding at the end the following:
``(p) State Verification Option.--Notwithstanding any other
provision of law, in carrying out the food stamp program, a
State agency shall not be required to use an income and
eligibility or an immigration status verification system
established under section 1137 of the Social Security Act (42
U.S.C. 1320b-7).''.
SEC. 841. INVESTIGATIONS.
Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C.
2021(a)) is amended by adding at the end the following:
``Regulations issued pursuant to this Act shall provide
criteria for the finding of a violation and the suspension or
disqualification of a retail food store or wholesale food
concern on the basis of evidence that may include facts
established through on-site investigations, inconsistent
redemption data, or evidence obtained through a transaction
report under an electronic benefit transfer system.''.
SEC. 842. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY SUBMIT
FALSIFIED APPLICATIONS.
Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C.
2021(b)) is amended--
(1) in paragraph (2), by striking ``and'' at the
end;
(2) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(4) for a reasonable period of time to be
determined by the Secretary, including permanent
disqualification, on the knowing submission of an
application for the approval or reauthorization to
accept and redeem coupons that contains false
information about a substantive matter that was a part
of the application.''.
SEC. 843. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE
WIC PROGRAM.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is
amended by adding at the end the following:
``(g) Disqualification of Retailers Who Are Disqualified
Under the WIC Program.--
``(1) In general.--The Secretary shall issue
regulations providing criteria for the disqualification
under this Act of an approved retail food store or a
wholesale food concern that is disqualified from
accepting benefits under the special supplemental
nutrition program for women, infants, and children
established under section 17 of the Child Nutrition Act
of 1966 (7 U.S.C. 1786).
``(2) Terms.--A disqualification under paragraph
(1)--
``(A) shall be for the same length of time
as the disqualification from the program
referred to in paragraph (1);
``(B) may begin at a later date than the
disqualification from the program referred to
in paragraph (1); and
``(C) notwithstanding section 14, shall not
be subject to judicial or administrative
review.''.
SEC. 844. COLLECTION OF OVERISSUANCES.
(a) Collection of Overissuances.--Section 13 of the Food
Stamp Act of 1977 (7 U.S.C. 2022) is amended--
(1) by striking subsection (b) and inserting the
following:
``(b) Collection of Overissuances.--
``(1) In general.--Except as otherwise provided in
this subsection, a State agency shall collect any
overissuance of coupons issued to a household by--
``(A) reducing the allotment of the
household;
``(B) withholding amounts from unemployment
compensation from a member of the household
under subsection (c);
``(C) recovering from Federal pay or a
Federal income tax refund under subsection (d);
or
``(D) any other means.
``(2) Cost effectiveness.--Paragraph (1) shall not
apply if the State agency demonstrates to the
satisfaction of the Secretary that all of the means
referred to in paragraph (1) are not cost effective.
``(3) Maximum reduction absent fraud.--If a
household received an overissuance of coupons without
any member of the household being found ineligible to
participate in the program under section 6(b)(1) and a
State agency elects to reduce the allotment of the
household under paragraph (1)(A), the State agency
shall not reduce the monthly allotment of the household
under paragraph (1)(A) by an amount in excess of the
greater of--
``(A) 10 percent of the monthly allotment
of the household; or
``(B) $10.
``(4) Procedures.--A State agency shall collect an
overissuance of coupons issued to a household under
paragraph (1) in accordance with the requirements
established by the State agency for providing notice,
electing a means of payment, and establishing a time
schedule for payment.''; and
(2) in subsection (d)--
(A) by striking ``as determined under
subsection (b) and except for claims arising
from an error of the State agency,'' and
inserting ``, as determined under subsection
(b)(1),''; and
(B) by inserting before the period at the
end the following: ``or a Federal income tax
refund as authorized by section 3720A of title
31, United States Code''.
(b) Conforming Amendments.--Section 11(e)(8)(C) of the Food
Stamp Act of 1977 (7 U.S.C. 2020(e)(8)(C)) is amended--
(1) by striking ``and excluding claims'' and all
that follows through ``such section''; and
(2) by inserting before the semicolon at the end
the following: ``or a Federal income tax refund as
authorized by section 3720A of title 31, United States
Code''.
(c) Retention Rate.--The proviso 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) which arise'' and inserting ``35 percent of the value
of all funds or allotments recovered or collected pursuant to
sections 6(b) and 13(c) and 20 percent of the value of any
other funds or allotments recovered or collected, except the
value of funds or allotments recovered or collected that
arise''.
SEC. 845. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM REQUIREMENTS
PENDING ADMINISTRATIVE AND JUDICIAL REVIEW.
Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C.
2023(a)) is amended--
(1) by redesignating the first through seventeenth
sentences as paragraphs (1) through (17), respectively;
and
(2) by adding at the end the following:
``(18) Suspension of stores pending review.--
Notwithstanding any other provision of this subsection,
any permanent disqualification of a retail food store
or wholesale food concern under paragraph (3) or (4) of
section 12(b) shall be effective from the date of
receipt of the notice of disqualification. If the
disqualification is reversed through administrative or
judicial review, the Secretary shall not be liable for
the value of any sales lost during the disqualification
period.''.
SEC. 846. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.
(a) Forfeiture of Items Exchanged in Food Stamp
Trafficking.--The first sentence of section 15(g) of the Food
Stamp Act of 1977 (7 U.S.C. 2024(g)) is amended by striking
``or intended to be furnished''.
(b) Criminal Forfeiture.--Section 15 of the Food Stamp Act
of 1977 (7 U.S.C. 2024) is amended by adding at the end the
following:
``(h) Criminal Forfeiture.--
``(1) In general.--In imposing a sentence on a
person convicted of an offense in violation of
subsection (b) or (c), a court shall order, in addition
to any other sentence imposed under this section, that
the person forfeit to the United States all property
described in paragraph (2).
``(2) Property subject to forfeiture.--All
property, real and personal, used in a transaction or
attempted transaction, to commit, or to facilitate the
commission of, a violation (other than a misdemeanor)
of subsection (b) or (c), or proceeds traceable to a
violation of subsection (b) or (c), shall be subject to
forfeiture to the United States under paragraph (1).
``(3) Interest of owner.--No interest in property
shall be forfeited under this subsection as the result
of any act or omission established by the owner of the
interest to have been committed or omitted without the
knowledge or consent of the owner.
``(4) Proceeds.--The proceeds from any sale of
forfeited property and any monies forfeited under this
subsection shall be used--
``(A) first, to reimburse the Department of
Justice for the costs incurred by the
Department to initiate and complete the
forfeiture proceeding;
``(B) second, to reimburse the Department
of Agriculture Office of Inspector General for
any costs the Office incurred in the law
enforcement effort resulting in the forfeiture;
``(C) third, to reimburse any Federal or
State law enforcement agency for any costs
incurred in the law enforcement effort
resulting in the forfeiture; and
``(D) fourth, by the Secretary to carry out
the approval, reauthorization, and compliance
investigations of retail stores and wholesale
food concerns under section 9.''.
SEC. 847. LIMITATION ON 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. 848. STANDARDS FOR ADMINISTRATION.
(a) In General.--Section 16 of the Food Stamp Act of 1977
(7 U.S.C. 2025) is amended by striking subsection (b).
(b) Conforming Amendments.--
(1) The first sentence of section 11(g) of the 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. 849. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025),
as amended by section 848(a), is amended by inserting after
subsection (a) the following:
``(b) Work Supplementation or Support Program.--
``(1) Definition of work supplementation or support
program.--In this subsection, the term `work
supplementation or support program' means a program
under which, as determined by the Secretary, public
assistance (including any benefits provided under a
program established by the State and the food stamp
program) is provided to an employer to be used for
hiring and employing a public assistance recipient who
was not employed by the employer at the time the public
assistance recipient entered the program.
``(2) Program.--A State agency may elect to use an
amount equal to the allotment that would otherwise be
issued to a household under the food stamp program, but
for the operation of this subsection, for the purpose
of subsidizing or supporting a job under a work
supplementation or support program established by the
State.
``(3) Procedure.--If a State agency makes an
election under paragraph (2) and identifies each
household that participates in the food stamp program
that contains an individual who is participating in the
work supplementation or support program--
``(A) the Secretary shall pay to the State
agency an amount equal to the value of the
allotment that the household would be eligible
to receive but for the operation of this
subsection;
``(B) the State agency shall expend the
amount received under subparagraph (A) in
accordance with the work supplementation or
support program in lieu of providing the
allotment that the household would receive but
for the operation of this subsection;
``(C) for purposes of--
``(i) sections 5 and 8(a), the
amount received under this subsection
shall be excluded from household income
and resources; and
``(ii) section 8(b), the amount
received under this subsection shall be
considered to be the value of an
allotment provided to the household;
and
``(D) the household shall not receive an
allotment from the State agency for the period
during which the member continues to
participate in the work supplementation or
support program.
``(4) Other work requirements.--No individual shall
be excused, by reason of the fact that a State has a
work supplementation or support program, from any work
requirement under section 6(d), except during the
periods in which the individual is employed under the
work supplementation or support program.
``(5) Length of participation.--A State agency
shall provide a description of how the public
assistance recipients in the program shall, within a
specific period of time, be moved from supplemented or
supported employment to employment that is not
supplemented or supported.
``(6) Displacement.--A work supplementation or
support program shall not displace the employment of
individuals who are not supplemented or supported.''.
SEC. 850. WAIVER AUTHORITY.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)) is amended--
(1) by redesignating subparagraph (B) as
subparagraph (C); and
(2) in subparagraph (A)--
(A) in the first sentence, by striking
``benefits to eligible households, including''
and inserting the following: ``benefits to
eligible households, and may waive any
requirement of this Act to the extent necessary
for the project to be conducted.
``(B) Project requirements.--
``(i) Program goal.--The Secretary
may not conduct a project under
subparagraph (A) unless--
``(I) the project is
consistent with the goal of the
food stamp program of providing
food assistance to raise levels
of nutrition among low-income
individuals; andn
``(II) the project includes
an evaluation to determine the
effects of the project.
``(ii) Permissible projects.--The
Secretary may conduct a project under
subparagraph (A) to--
``(I) improve program
administration;
``(II) increase the self-
sufficiency of food stamp
recipients;
``(III) test innovative
welfare reform strategies; or
``(IV) allow greater
conformity with the rules of
other programs than would be
allowed but for this paragraph.
``(iii) Restrictions on permissible
projects.--If the Secretary finds that
a project under subparagraph (A) would
reduce benefits by more than 20 percent
for more than 5 percent of households
in the area subject to the project (not
including any household whose benefits
are reduced due to a failure to comply
with work or other conduct
requirements), the project--
``(I) may not include more
than 15 percent of the State's
food stamp households; and
``(II) shall continue for
not more than 5 years after the
date of implementation, unless
the Secretary approves an
extension requested by the
State agency at any time.
``(iv) Impermissible projects.--The
Secretary may not conduct a project
under subparagraph (A) that--
``(I) involves the payment
of the value of an allotment in
the form of cash, unless the
project was approved prior to
the date of enactment of this
subparagraph;
``(II) has the effect of
substantially transferring
funds made available under this
Act to services or benefits
provided primarily through
another public assistance
program, or using the funds for
any purpose other than the
purchase of food, program
administration, or an
employment or training program;
``(III) is inconsistent
with--
``(aa) the last 2
sentences of section
3(i);
``(bb) the last
sentence of section
5(a), insofar as a
waiver denies
assistance to an
otherwise eligible
household or individual
if the household or
individual has not
failed to comply with
any work, behavioral,
or other conduct
requirement under this
or another program;
``(cc) section
5(c)(2);
``(dd) paragraph
(2)(B), (4)(F)(i), or
(4)(K) of section 6(d);
``(ee) section
8(b);
``(ff) section
11(e)(2)(B);
``(gg) the time
standard under section
11(e)(3);
``(hh) subsection
(a), (c), (g), (h)(2),
or (h)(3) of section
16;
``(ii) this
paragraph; or
``(jj) subsection
(a)(1) or (g)(1) of
section 20;
``(IV) modifies the
operation of section 5 so as to
have the effect of--
``(aa) increasing
the shelter deduction
to households with no
out-of-pocket housing
costs or housing costs
that consume a low
percentage of the
household's income; or
``(bb) absolving a
State from acting with
reasonable promptness
on substantial reported
changes in income or
household size (except
that this subclause
shall not apply with
regard to changes
related to food stamp
deductions);
``(V) is not limited to a
specific time period; or
``(VI) waives a provision
of section 26.
``(v) Additional included
projects.--A pilot or experimental
project may include'';
(B) by striking ``to aid to families with
dependent children under part A of title IV of
the Social Security Act'' and inserting ``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
(C) by striking ``coupons. The Secretary''
and all that follows through ``Any pilot'' and
inserting the following: ``coupons.
``(vi) Cash payment pilot
projects.--Any pilot''.
SEC. 851. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)), as amended by section 850, is amended by adding at
the end the following:
``(D) Response to waivers.--
``(i) Response.--Not later than 60
days after the date of receiving a
request for a waiver under subparagraph
(A), the Secretary shall provide a
response that--
``(I) approves the waiver
request;
``(II) denies the waiver
request and describes any
modification needed for
approval of the waiver request;
``(III) denies the waiver
request and describes 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. 852. EMPLOYMENT INITIATIVES PROGRAM.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is
amended by striking subsection (d) and inserting the following:
``(d) Employment Initiatives Program.--
``(1) Election to participate.--
``(A) In general.--Subject to the other
provisions of this subsection, a State may
elect to carry out an employment initiatives
program under this subsection.
``(B) Requirement.--A State shall be
eligible to carry out an employment initiatives
program under this subsection only if not less
than 50 percent of the households in the State
that received food stamp benefits during the
summer of 1993 also received benefits under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.) during the summer of 1993.
``(2) Procedure.--
``(A) In general.--A State that has elected
to carry out an employment initiatives program
under paragraph (1) may use amounts equal to
the food stamp allotments that would otherwise
be issued to a household under the food stamp
program, but for the operation of this
subsection, to provide cash benefits in lieu of
the food stamp allotments to the household if
the household is eligible under paragraph (3).
``(B) Payment.--The Secretary shall pay to
each State that has elected to carry out an
employment initiatives program under paragraph
(1) an amount equal to the value of the
allotment that each household participating in
the program in the State would be eligible to
receive under this Act but for the operation of
this subsection.
``(C) Other provisions.--For purposes of
the food stamp program (other than this
subsection)--
``(i) cash assistance under this
subsection shall be considered to be an
allotment; and
``(ii) each household receiving
cash benefits under this subsection
shall not receive any other food stamp
benefit during the period for which the
cash assistance is provided.
``(D) Additional payments.--Each State that
has elected to carry out an employment
initiatives program under paragraph (1) shall--
``(i) increase the cash benefits
provided to each household
participating in the program in the
State under this subsection to
compensate for any State or local sales
tax that may be collected on purchases
of food by the household, unless the
Secretary determines on the basis of
information provided by the State that
the increase is unnecessary on the
basis of the limited nature of the
items subject to the State or local
sales tax; and
``(ii) pay the cost of any increase
in cash benefits required by clause
(i).
``(3) Eligibility.--A household shall be eligible
to receive cash benefits under paragraph (2) if an
adult member of the household--
``(A) has worked in unsubsidized employment
for not less than the preceding 90 days;
``(B) has earned not less than $350 per
month from the employment referred to in
subparagraph (A) for not less than the
preceding 90 days;
``(C)(i) is receiving benefits under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.); or
``(ii) was receiving benefits under a State
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) at
the time the member first received cash
benefits under this subsection and is no longer
eligible for the State program because of
earned income;
``(D) is continuing to earn not less than
$350 per month from the employment referred to
in subparagraph (A); and
``(E) elects to receive cash benefits in
lieu of food stamp benefits under this
subsection.
``(4) Evaluation.--A State that operates a program
under this subsection for 2 years shall provide to the
Secretary a written evaluation of the impact of cash
assistance under this subsection. The State agency,
with the concurrence of the Secretary, shall determine
the content of the evaluation.''.
SEC. 853. REAUTHORIZATION.
The first sentence of section 18(a)(1) of the Food Stamp
Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking ``1991
through 1997'' and inserting ``1996 through 2002''.
SEC. 854. SIMPLIFIED FOOD STAMP PROGRAM.
(a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.) is amended by adding at the end the following:
``SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM.
``(a) Definition of Federal Costs.--In this section, the
term `Federal costs' does not include any Federal costs
incurred under section 17.
``(b) Election.--Subject to subsection (d), a State may
elect to carry out a Simplified Food Stamp Program (referred to
in this section as a `Program'), statewide or in a political
subdivision of the State, in accordance with this section.
``(c) Operation of Program.--If a State elects to carry out
a Program, within the State or a political subdivision of the
State--
``(1) a household in which no 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.) may not participate in the Program;
``(2) a household in which all members receive
assistance under a State program funded under part A of
title IV of the Social Security Act (42 U.S.C. 601 et
seq.) shall automatically be eligible to participate in
the Program;
``(3) if approved by the Secretary, a household in
which 1 or more members but not 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.) may be eligible to participate in the Program;
and
``(4) subject to subsection (f), benefits under the
Program shall be determined under rules and procedures
established by the State under--
``(A) a State program funded under part A
of title IV of the Social Security Act (42
U.S.C. 601 et seq.);
``(B) the food stamp program; or
``(C) a combination of a State program
funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) and the
food stamp program.
``(d) Approval of Program.--
``(1) State plan.--A State agency may not operate a
Program unless the Secretary approves a State plan for
the operation of the Program under paragraph (2).
``(2) Approval of plan.--The Secretary shall
approve any State plan to carry out a Program if the
Secretary determines that the plan--
``(A) complies with this section; and
``(B) contains sufficient documentation
that the plan will not increase Federal costs
for any fiscal year.
``(e) Increased Federal Costs.--
``(1) Determination.--
``(A) In general.--The Secretary shall
determine whether a Program being carried out
by a State agency is increasing Federal costs
under this Act.
``(B) No excluded households.--In making a
determination under subparagraph (A), the
Secretary shall not require the State agency to
collect or report any information on households
not included in the Program.
``(C) Alternative accounting periods.--The
Secretary may approve the request of a State
agency to apply alternative accounting periods
to determine if Federal costs do not exceed the
Federal costs had the State agency not elected
to carry out the Program.
``(2) Notification.--If the Secretary determines
that the Program has increased Federal costs under this
Act for any fiscal year or any portion of any fiscal
year, the Secretary shall notify the State not later
than 30 days after the Secretary makes the
determination under paragraph (1).
``(3) Enforcement.--
``(A) Corrective action.--Not later than 90
days after the date of a notification under
paragraph (2), the State shall submit a plan
for approval by the Secretary for prompt
corrective action that is designed to prevent
the Program from increasing Federal costs under
this Act.
``(B) Termination.--If the State does not
submit a plan under subparagraph (A) or carry
out a plan approved by the Secretary, the
Secretary shall terminate the approval of the
State agency operating the Program and the
State agency shall be ineligible to operate a
future Program.
``(f) Rules and Procedures.--
``(1) In general.--In operating a Program, a State
or political subdivision of a State may follow the
rules and procedures established by the State or
political subdivision under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) or under the food stamp program.
``(2) Standardized deductions.--In operating a
Program, a State or political subdivision of a State
may standardize the deductions provided under section
5(e). In developing the standardized deduction, the
State shall consider the work expenses, dependent care
costs, and shelter costs of participating households.
``(3) Requirements.--In operating a Program, a
State or political subdivision shall comply with the
requirements of--
``(A) subsections (a) through (g) of
section 7;
``(B) section 8(a) (except that the income
of a household may be determined under a State
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.));
``(C) subsection (b) and (d) of section 8;
``(D) subsections (a), (c), (d), and (n) of
section 11;
``(E) paragraphs (8), (12), (16), (18),
(20), (24), and (25) of section 11(e);
``(F) section 11(e)(10) (or a comparable
requirement established by the State under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.)); and
``(G) section 16.
``(4) Limitation on eligibility.--Notwithstanding
any other provision of this section, a household may
not receive benefits under this section as a result of
the eligibility of the household under a State program
funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.), unless the Secretary
determines that any household with income above 130
percent of the poverty guidelines is not eligible for
the program.''.
(b) State Plan Provisions.--Section 11(e) of the Food Stamp
Act of 1977 (7 U.S.C. 2020(e)), as amended by sections 819(b)
and 835, is amended by adding at the end the following:
``(25) if a State elects to carry out a Simplified
Food Stamp Program under section 26, the plans of the
State agency for operating the program, including--
``(A) the rules and procedures to be
followed by the State agency to determine food
stamp benefits;
``(B) how the State agency will address the
needs of households that experience high
shelter costs in relation to the incomes of the
households; and
``(C) a description of the method by which
the State agency will carry out a quality
control system under section 16(c).''.
(c) Conforming Amendments.--
(1) Section 8 of the Food Stamp Act of 1977 (7
U.S.C. 2017), as amended by section 830, is amended--
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as
subsection (e).
(2) Section 17 of the Food Stamp Act of 1977 (7
U.S.C. 2026) is amended--
(A) by striking subsection (i); and
(B) by redesignating subsections (j)
through (l) as subsections (i) through (k),
respectively.
SEC. 855. STUDY OF THE USE OF FOOD STAMPS TO PURCHASE VITAMINS AND
MINERALS.
(a) In General.--The Secretary of Agriculture, in
consultation with the National Academy of Sciences and the
Center for Disease Control and Prevention, shall conduct a
study on the use of food stamps provided under the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.) to purchase vitamins and
minerals.
(b) Analysis.--The study shall include--
(1) an analysis of scientific findings on the
efficacy of and need for vitamins and minerals,
including--
(A) the adequacy of vitamin and mineral
intakes in low-income populations, as shown by
research and surveys conducted prior to the
study; and
(B) the potential value of nutritional
supplements in filling nutrient gaps that may
exist in the United States population as a
whole or in vulnerable subgroups in the
population;
(2) the impact of nutritional improvements
(including vitamin or mineral supplementation) on the
health status and health care costs of women of
childbearing age, pregnant or lactating women, and the
elderly;
(3) the cost of commercially available vitamin and
mineral supplements;
(4) the purchasing habits of low-income populations
with regard to vitamins and minerals;
(5) the impact of using food stamps to purchase
vitamins and minerals on the food purchases of low-
income households; and
(6) the economic impact on the production of
agricultural commodities of using food stamps to
purchase vitamins and minerals.
(c) Report.--Not later than December 15, 1998, the
Secretary shall report the results of the study to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate.
SEC. 856. DEFICIT REDUCTION.
It is the sense of the Committee on Agriculture of the
House of Representatives that reductions in outlays resulting
from this title shall not be taken into account for purposes of
section 252 of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 902).
Subtitle B--Commodity Distribution Programs
SEC. 871. 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 during 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 that--
``(A) administers--
``(i) an emergency feeding
organization;
``(ii) a charitable institution
(including a hospital and a retirement
home, but excluding a penal
institution) to the extent that the
institution serves needy persons;
``(iii) a summer camp for children,
or a child nutrition program providing
food service;
``(iv) a nutrition project
operating under the Older Americans Act
of 1965 (42 U.S.C. 3001 et seq.),
including a project that operates a
congregate nutrition site and a project
that provides home-delivered meals; or
``(v) a disaster relief program;
``(B) has been designated by the
appropriate State agency, or by the Secretary;
and
``(C) 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 meaning provided 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 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 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) 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
entities in the State, both public and private, interested in
the distribution of commodities received under this Act.''.
(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) is amended--
(1) in the first sentence, by striking ``for State
and local'' and all that follows through ``under this
title'' and inserting ``to pay for the direct and
indirect administrative costs of the States related to
the processing, transporting, and distributing to
eligible recipient agencies of commodities provided by
the Secretary under this Act and commodities secured
from other sources''; and
(2) by striking the fourth sentence.
(d) Delivery of Commodities.--Section 214 of the Emergency
Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c
note) is amended--
(1) by striking subsections (a) through (e) and
(j);
(2) by redesignating subsections (f) through (i) as
subsections (a) through (d), respectively;
(3) in subsection (b), as redesignated by paragraph
(2)--
(A) in the first sentence, by striking
``subsection (f) or subsection (j) if
applicable,'' and inserting ``subsection
(a),''; and
(B) in the second sentence, by striking
``subsection (f)'' and inserting ``subsection
(a)'';
(4) by striking subsection (c), as redesignated by
paragraph (2), and inserting the following:
``(c) Administration.--
``(1) In general.--Commodities made available for
each fiscal year under this section shall be delivered
at reasonable intervals to States based on the grants
calculated under subsection (a), or reallocated under
subsection (b), before December 31 of the following
fiscal year.
``(2) Entitlement.--Each State shall be entitled to
receive the value of additional commodities determined
under subsection (a).''; and
(5) in subsection (d), as redesignated by paragraph
(2), by striking ``or reduce'' and all that follows
through ``each fiscal year''.
(e) Technical Amendments.--The Emergency Food Assistance
Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended--
(1) in the first sentence of section 203B(a), by
striking ``203 and 203A of this Act'' and inserting
``203A'';
(2) in section 204(a), by striking ``title'' each
place it appears and inserting ``Act'';
(3) in the first sentence of section 210(e), by
striking ``(except as otherwise provided for in section
214(j))''; and
(4) by striking section 212.
(f) Report on EFAP.--Section 1571 of the Food Security Act
of 1985 (Public Law 99-198; 7 U.S.C. 612c note) is repealed.
(g) Availability of Commodities Under the Food Stamp
Program.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.),
as amended by section 854(a), is amended by adding at the end
the following:
``SEC. 27. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD
ASSISTANCE PROGRAM.
``(a) Purchase of Commodities.--From amounts made available
to carry out this Act, for each of fiscal years 1997 through
2002, the Secretary shall purchase $100,000,000 of a variety of
nutritious and useful commodities of the types that the
Secretary has the authority to acquire through the Commodity
Credit Corporation or under section 32 of the Act entitled `An
Act to amend the Agricultural Adjustment Act, and for other
purposes', approved August 24, 1935 (7 U.S.C. 612c), and
distribute the commodities to States for distribution in
accordance with section 214 of the Emergency Food Assistance
Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note).
``(b) Basis for Commodity Purchases.--In purchasing
commodities under subsection (a), the Secretary shall, to the
extent practicable and appropriate, make purchases based on--
``(1) agricultural market conditions;
``(2) preferences and needs of States and
distributing agencies; and
``(3) preferences of recipients.''.
(h) Effective Date.--The amendments made by subsection (d)
shall become effective on October 1, 1996.
SEC. 872. 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. 873. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law 100-435; 7
U.S.C. 612c note) is amended--
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
SEC. 874. REPORT ON ENTITLEMENT COMMODITY PROCESSING.
Section 1773 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 612c note) is
amended by striking subsection (f).
Subtitle C--Electronic Benefit Transfer Systems
SEC. 891. 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 that'' and
inserting ``(d) Applicability to Service Providers
Other Than Certain Financial Institutions.--
``(1) In general.--If''; and
(2) by adding at the end the following:
``(2) State and local government electronic benefit
transfer systems.--
``(A) Definition of electronic benefit
transfer system.--In this paragraph, the term
`electronic benefit transfer system'--
``(i) means a system under which a
government agency distributes needs-
tested benefits by establishing
accounts that may 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 a
Federal, State, or local government
agency.
``(B) 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 system
established under State or local law or
administered by a State or local government.
``(C) Exception for direct deposit into
recipient's account.--Subparagraph (B) shall
not apply with respect to any electronic funds
transfer under an electronic benefit transfer
system for a deposit directly into a consumer
account held by the recipient of the benefit.
``(D) Rule of construction.--No provision
of this paragraph--
``(i) affects or alters the
protections otherwise applicable with
respect to benefits established by any
other provision Federal, State, or
local law; or
``(ii) otherwise supersedes the
application of any State or local
law.''.
TITLE IX--MISCELLANEOUS
SEC. 901. APPROPRIATION BY STATE LEGISLATURES.
(a) In General.--Any funds received by a State under the
provisions of law specified in subsection (b) shall be subject
to appropriation by the State legislature, consistent with the
terms and conditions required under such provisions of law.
(b) Provisions of Law.--The provisions of law specified in
this subsection are the following:
(1) Part A of title IV of the Social Security Act
(relating to block grants for temporary assistance for
needy families).
(2) The Child Care and Development Block Grant Act
of 1990 (relating to block grants for child care).
SEC. 902. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED SUBSTANCES.
Notwithstanding any other provision of law, States shall
not be prohibited by the Federal Government from testing
welfare recipients for use of controlled substances nor from
sanctioning welfare recipients who test positive for use of
controlled substances.
SEC. 903. 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
``(B) 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.) is amended by adding at the end the following:
``SEC. 27. 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;
``(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. 904. 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 non-custodial
parent to the custodial parent, regardless of the
employment status or location of the non-custodial
parent; and
(b) States are encouraged to pursue pilot programs
in which the parents of a non-adult, non-custodial
parent who refuses to or is unable to pay child support
must--
(1) pay or contribute to the child support
owed by the non-custodial parent; or
(2) otherwise fulfill all financial
obligations and meet all conditions imposed on
the non-custodial parent, such as participation
in a work program or other related activity.
SEC. 905. 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. 906. SENSE OF THE SENATE REGARDING ENFORCEMENT OF STATUTORY RAPE
LAWS.
(a) Sense of the Senate.--It is the sense of the Senate
that States and local jurisdictions should aggressively enforce
statutory rape laws.
(b) Justice Department Program on Statutory Rape.--Not
later than January 1, 1997, the Attorney General shall
establish and implement a program that--
(1) studies the linkage between statutory rape and
teenage pregnancy, particularly by predatory older men
committing repeat offenses; and
(2) educates State and local criminal law
enforcement officials on the prevention and prosecution
of statutory rape, focusing in particular on the
commission of statutory rape by predatory older men
committing repeat offenses, and any links to teenage
pregnancy.
(c) Violence Against Women Initiative.--The Attorney
General shall ensure that the Department of Justice's Violence
Against Women initiative addresses the issue of statutory rape,
particularly the commission of statutory rape by predatory
older men committing repeat offenses.
SEC. 907. 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. 908. REDUCTION OF BLOCK GRANTS TO STATES FOR SOCIAL SERVICES; USE
OF VOUCHERS.
(a) Reduction of Grants.--Section 2003(c) of the Social
Security Act (42 U.S.C. 1397b(c)) is amended--
(1) by striking ``and'' at the end of paragraph
(4); and
(2) by striking paragraph (5) and inserting the
following:
``(5) $2,800,000,000 for each of the fiscal years
1990 through 1995;
``(6) $2,381,000,000 for the fiscal year 1996;
``(7) $2,380,000,000 for each of the fiscal years
1997 through 2002; and
``(8) $2,800,000,000 for the fiscal year 2003 and
each succeeding fiscal year.''.
(b) Authority To Use Vouchers.--Section 2002 of such Act
(42 U.S.C. 1937a) is amended by adding at the end the
following:
``(f) A State may use funds provided under this title to
provide vouchers, for services directed at the goals set forth
in section 2001, to families, including--
``(1) families who have become ineligible for
assistance under a State program funded under part A of
title IV by reason of a durational limit on the
provision of such assistance; and
``(2) families denied cash assistance under the
State program funded under part A of title IV for a
child who is born to a member of the family who is--
``(A) a recipient of assistance under the
program; or
``(B) a person who received such assistance
at any time during the 10-month period ending
with the birth of the child.''.
SEC. 909. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT ON BASIS OF
DISQUALIFIED INCOME.
(a) Reduction in Disqualified Income Threshold.--
(1) In general.--Paragraph (1) of section 32(i) 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.--Subsection (j) of
section 32 of such Code is amended to read as follows:
``(j) Inflation Adjustments.--
``(1) In general.--In the case of any taxable year
beginning after 1996, each of the dollar amounts in
subsections (b)(2) and (i)(1) 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,
determined by substituting `calendar year 1995'
for `calendar year 1992' in subparagraph (B)
thereof.
``(2) Rounding.--
``(A) In general.--If any dollar amount in
subsection (b)(2), after being increased under
paragraph (1), is not a multiple of $10, such
dollar amount shall be rounded to the nearest
multiple of $10.
``(B) Disqualified income threshold
amount.--If the dollar amount in subsection
(i)(1), after being increased under paragraph
(1), is not a multiple of $50, such amount
shall be rounded to the next lowest multiple of
$50.''.
(3) Conforming amendment.--Paragraph (2) of section
32(b) of such Code is amended to read as follows:
``(2) Amounts.--The earned income amount and the
phaseout amount shall be determined as follows:
In the case of an eligible
individual with: The earned income amount is: The phaseout amount is:
1 qualifying child................ $6,330 $11,610
2 or more qualifying children..... $8,890 $11,610
No qualifying children............ $4,220 $ 5,280''.
(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 Dates.--
(1) In general.--Except as provided in paragraph
(2), the amendments made by this section shall apply to
taxable years beginning after December 31, 1995.
(2) Advance payment individuals.--In the case of
any individual who on or before June 26, 1996, has in
effect an earned income eligibility certificate for the
individual's taxable year beginning in 1996, the
amendments made by this section shall apply to taxable
years beginning after December 31, 1996.
SEC. 910. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION FOR EARNED
INCOME CREDIT.
(a) In General.--Subsections (a)(2)(B), (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'' each
place it appears 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 determined without regard to the amounts
described in subparagraph (B).
``(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)
(relating to nonbusiness rents and
royalties), and
``(iv) 50 percent of 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 Dates.--
(1) In general.--Except as provided in paragraph
(2), the amendments made by this section shall apply to
taxable years beginning after December 31, 1995.
(2) Advance payment individuals.--In the case of
any individual who on or before June 26, 1996, has in
effect an earned income eligibility certificate for the
individual's taxable year beginning in 1996, the
amendments made by this section shall apply to taxable
years beginning after December 31, 1996.
SEC. 911. 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 any State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.).
SEC. 912. ABSTINENCE EDUCATION.
Title V of the Social Security Act (42 U.S.C. 701 et seq.)
is amended by adding at the end the following section:
``separate program for abstinence education
``Sec. 510. (a) For the purpose described in subsection
(b), the Secretary shall, for fiscal year 1998 and each
subsequent fiscal year, allot to each State which has
transmitted an application for the fiscal year under section
505(a) an amount equal to the product of--
``(1) the amount appropriated in subsection (d) for
the fiscal year; and
``(2) the percentage determined for the State under
section 502(c)(1)(B)(ii).
``(b)(1) The purpose of an allotment under subsection (a)
to a State is to enable the State to provide abstinence
education, and at the option of the State, where appropriate,
mentoring, counseling, and adult supervision to promote
abstinence from sexual activity, with a focus on those groups
which are most likely to bear children out-of-wedlock.
``(2) For purposes of this section, the term `abstinence
education' means an educational or motivational program which--
``(A) has as its exclusive purpose,
teaching the social, psychological, and health
gains to be realized by abstaining from sexual
activity;
``(B) teaches abstinence from sexual
activity outside marriage as the expected
standard for all school age children;
``(C) teaches that abstinence from sexual
activity is the only certain way to avoid out-
of-wedlock pregnancy, sexually transmitted
diseases, and other associated health problems;
``(D) teaches that a mutually faithful
monogamous relationship in context of marriage
is the expected standard of human sexual
activity;
``(E) teaches that sexual activity outside
of the context of marriage is likely to have
harmful psychological and physical effects;
``(F) teaches that bearing children out-of-
wedlock is likely to have harmful consequences
for the child, the child's parents, and
society;
``(G) teaches young people how to reject
sexual advances and how alcohol and drug use
increases vulnerability to sexual advances; and
``(H) teaches the importance of attaining
self-sufficiency before engaging in sexual
activity.
``(c)(1) Sections 503, 507, and 508 apply to allotments
under subsection (a) to the same extent and in the same manner
as such sections apply to allotments under section 502(c).
``(2) Sections 505 and 506 apply to allotments under
subsection (a) to the extent determined by the Secretary to be
appropriate.
``(d) For the purpose of allotments under subsection (a),
there is appropriated, out of any money in the Treasury not
otherwise appropriated, an additional $50,000,000 for each of
the fiscal years 1998 through 2002. The appropriation under the
preceding sentence for a fiscal year is made on October 1 of
the fiscal year.''.
SEC. 913. CHANGE IN REFERENCE.
Effective January 1, 1997, the third sentence of section
1902(a) and section 1908(e)(1) of the Social Security Act (42
U.S.C. 1396a(a), 1396g-1(e)(1)) are each amended by striking
``The First Church of Christ, Scientist, Boston,
Massachusetts'' and inserting ``The Commission for
Accreditation of Christian Science Nursing Organizations/
Facilities, Inc.'' each place it appears.
And the Senate agree to the same.
John R. Kasich,
Bill Archer,
William F. Goodling,
Pat Roberts,
Tom Bliley,
E. Clay Shaw, Jr.,
James Talent,
Jim Nussle,
Tim Hutchinson,
Jim McCrery,
Michael Bilirakis,
Lamar Smith,
Nancy L. Johnson,
Dave Camp,
Gary A. Franks,
``Duke'' Cunningham,
Mike Castle,
Bob Goodlatte,
Managers on the Part of the House.
From the Committee on the Budget:
Pete V. Domenici,
D. Nickles,
Phil Gramm,
Jim Exon,
From the Committee on Agriculture, Nutrition,
and Forestry:
Richard G. Lugar,
Jesse Helms,
Thad Cochran,
Rick Santorum,
From the Committee on Finance:
William V. Roth, Jr.,
John H. Chafee,
Chuck Grassley,
Orrin Hatch,
Al Simpson,
From the Committee on Labor and Human
Resources:
Nancy Landon Kassebaum,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the Senate to 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,
submit the following joint statement to the House and the
Senate in explanation of the effect of the action agreed upon
by the managers and recommended in the accompanying conference
report:
The Senate amendment struck all of the House bill after
the enacting clause and inserted a substitute text.
The House recedes from its disagreement to the amendment
of the Senate with an amendment that is a substitute for the
House bill and the Senate amendment. The differences between
the House bill, the Senate amendment, and the substitute agreed
to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clerical
changes.
EXPLANATION OF THE CONFERENCE AGREEMENT
Principal Components of the Conference Agreement
The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 puts in place the most fundamental
reform of welfare since the program's inception. It promotes
work over welfare and self-reliance over dependency, thereby
showing true compassion for those in America who need a helping
hand, not a handout. It takes the historic step of eliminating
a Federal entitlement program--Aid to Families with Dependent
Children--and replacing it with a block grant that restores the
States' fundamental role in assisting needy families. It makes
substantial reforms in the Food Stamp Program, cracking down on
fraud and abuse and applying tough work standards. It reforms
the Supplemental Security Income [SSI] disability program to
strengthen eligibility requirements and eliminating incentives
for coaching children to misbehave so they can qualify for
benefits. It makes sweeping reforms relating to benefits for
noncitizens, strengthening the principle that immigrants come
to America to work, not to collect welfare benefits.
The legislation does not abandon those Americans who
truly need a helping hand. It retains protections for those who
experience genuine and intractable hardship. Above all, it
recognizes the vulnerability of America's children. It
guarantees that they will continue to receive the support they
need. Indeed, by discouraging illegitimacy and promoting stable
families, this bill vastly improves the prospects of children
in welfare families. But for most, welfare should mean
temporary assistance for those striving to return to self-
sufficiency.
The legislation is the first of three reconciliation
bills called for in the reconciliation directives contained in
the fiscal year 1997 budget resolution (H. Con. Res. 178). The
measure will slow the growth of Federal welfare spending, but
still maintain sufficient increases to protect vulnerable
populations. According to preliminary estimates, welfare
spending would grow from approximately $83 billion this year to
about $107 billion in 2002, excluding the effects of Earned
Income Credit [EIC] outlays. When EIC outlays are included, the
preliminary estimates show welfare spending growing from about
$99 billion this year to roughly $128 billion in 2002. The
Federal Government still will spend nearly $600 billion on
welfare programs not counting the EIC, and nearly $700 billion
when the EIC is included. Either way, when compared with
Federal spending projections for the current welfare program,
this legislation will reduce the Federal budget deficit by
about $55 billion to $56 billion over 6 years.
The importance of these budgetary effects is matched by
the historic transformation of the welfare program embraced in
this legislation. This measure rests on five principles that
are the pillars of the welfare reform strategy in the 104th
Congress:
Welfare Should Not Be a Way of Life. The legislation
assures that welfare will be a helping hand, not a lifetime
handout, by imposing a 5-year lifetime limit on benefits
(although as many as 20 percent of families may be allowed
exceptions for conditions of hardship).
Work, Not Welfare. For the first time ever, able-bodied
welfare recipients will be required to work for their benefits.
At least one person in every family must be working within 2
years after receiving welfare or lose benefits, and States are
required to have at least half of their single-parent welfare
recipients working by 2002.
No More Welfare for Noncitizens and Felons. Most welfare
(except emergency benefits) ends for most non-citizens during
their first 5 years in the United States. Exceptions are made
for refugees, persons who have worked and paid taxes in the
United States for 10 years, and those who have served in the
U.S. military. States will have the option of denying Medicaid
eligibility to non-citizens who enter the United States after
enactment. The legislation also terminates benefits for
fugitive felons fleeing from prosecution or imprisonment or
violating parole, and offers financial incentives to local
corrections authorities to report persons incarcerated in their
jails who are improperly receiving welfare checks.
Power and Flexibility to the States. The best welfare
solutions come from those closest to the problems--not from
bureaucrats in Washington. The legislation creates broad cash
welfare and child care block grants providing maximum
flexibility so that States can reform welfare in ways that are
appropriate for them, and can move families into jobs.
Encouraging Personal Responsibility To Halt Rising
Illegitimacy Rates. As a result of the current welfare system,
which discourages two-parent families, today's illegitimacy
rate among welfare families is almost 50 percent and is rising.
This legislation seeks to reverse the trend by boosting efforts
to establish paternity and make fathers pay child support. As
an added incentive, States that reduce out-of-wedlock births
will receive added cash grants.
This legislation reforms welfare to make it more
consistent with fundamental American values--by rewarding work
and self-reliance, encouraging personal responsibility, and
restoring a sense of hope in the future.
Title I: Block Grant for Temporary Assistance for Needy Families
1. Findings
Present law
No provision.
House bill
Congress finds that marriage is the foundation of a
successful society and an essential institution that promotes
the interests of children. Promotion of responsible fatherhood
and motherhood is integral to successful child-rearing and the
well-being of children. It is the sense of Congress that
prevention of out-of-wedlock pregnancy and reduction on out-of-
wedlock birth are very important government interests and that
the policy outlined in the provisions of this title is intended
to address the crisis.
Senate amendment
Adds that an effective strategy to combat teenage
pregnancy must deal with the issue of male responsibility,
including statutory rape culpability and prevention. Finds
protection of teenage girls from pregnancy as well as predatory
sexual behavior to be very important Government interests.
Conference agreement
The conference agreement follows the Senate amendment.
2. Reference to the Social Security Act
Present law
No provision.
House bill
Unless otherwise specified, any reference in this title
to an amendment to or repeal of a section or other provision is
to the Social Security Act.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
3. block grant to states; purpose
Present law
Title IV-A of the Social Security Act, which provides
grants to States for aid and services to needy families with
children (AFDC), is designed to encourage care of dependent
children in their own homes by enabling States to provide cash
aid and services, maintain and strengthen family life, and help
parents attain maximum self-support consistent with maintaining
parental care and protection.
House bill
Block grants for temporary assistance for needy families
(TANF), which replace Title IV-A of the Social Security Act,
are established to increase the flexibility of States in
operating a program designed to provide assistance to needy
families; end dependence on government benefits by promoting
job preparation, work and marriage; prevent and reduce the
incidence of out-of-wedlock pregnancies; and encourage the
formation and maintenance of two-parent families.
This part shall not be interpreted to entitle any
individual or family to assistance under any State program
funded under this part.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
4. eligible states--state plan requirements
Present law
A State must have an approved State plan for aid and
services to needy families containing 43 provisions, ranging
from single-agency administration to overpayment recovery
rules. State plans explain the aid and services that are
offered by the State. Aid is defined as money payments. For
most parents without a child under age 3, States must provide
education, work, or training under the JOBS program to help
needy families with children avoid long-term welfare
dependence. Note: work and education requirements of JOBS are
subject to two conditions--State resources must permit them and
the program must be available in the recipient's political
subdivision. To receive Federal funds, States must share in
program costs. The Federal share of costs (matching rate)
varies among States and is inversely related to the square of
State per capita income. For AFDC benefits and child care, the
Medicaid matching rate is used. This rate now ranges from 50
percent to 78 percent among States and averages about 55
percent. For JOBS activities, the rate averages 60 percent; for
administrative costs, 50 percent. The general JOBS
participation rate, which expired September 30, 1995, required
20 percent of employable (nonexempt) adult recipients to
participate in education, work, or training under JOBS, in
fiscal year 1995. In fiscal year 1996, at least one parent in
60 percent of unemployed-parent families must participate at
least 16 hours weekly in an unpaid work experience or other
work program. States must restrict disclosure of information to
purposes directly connected to administration of the program
and to any connected investigation, prosecution, legal
proceeding or audit. Each State must offer family planning
services to all ``appropriate'' cases, including minors
considered sexually active. State may not require acceptance of
these services. Regulations require that States determine need
and amount of eligibility on an objective and equitable basis.
House bill
An ``eligible State'' is a State that, during the 2-year
period immediately preceding the fiscal year, has submitted a
plan to the Secretary of HHS that the Secretary has found
includes a written document describing how the State will:
1. conduct a program, designed to serve all
political subdivisions in the State, that provides cash
assistance to needy families with (or expecting)
children, and that provides parents with work and
support services to enable them to become self-
sufficient;
2. require a parent or a caretaker receiving
assistance to engage in work as defined by the State
once the parent or caretaker has received assistance
for 24 months (whether or not consecutive) or earlier;
3. ensure that parents and caretakers engage in
work activities as described below;
4. take such reasonable steps as the State deems
necessary to restrict the use and disclosure of
information about recipients of assistance attributable
to funds provided by the Federal government.
5. no provision. (See purpose above.)
Further, the document must:
6. indicate whether the State intends to treat
families moving into the State differently; and, if so,
how.
7. indicate whether it intends to aid noncitizens.
8. set forth objective criteria for delivery of
benefits and determinations of eligibility, and for
fair and equitable treatment, including an explanation
of how it will provide opportunities for adversely
affected recipients to be heard in a State
administrative or appeal process;
9. no provision;
10. no provision;
11. no provision.
Senate amendment
1. Same.
2. Similar provision.
3. Same.
4. Same.
5. Establish goals and take action to prevent and reduce
the incidence of pregnancies outside marriage, and establish
numerical goals for reducing the proportion of births out of
wedlock for calendar years 1996 through 2005.
Further, the document must:
6. Same.
7. Same.
8. outline how the State intends to determine, on an
objective and equitable basis, the needs of and amount of aid
to be provided to needy families; and, except as allowed for
incoming families and noncitizens (items 6 and 7) to treat
families of similar needs and circumstances similarly.
9. outline how it will grant opportunity for a fair
hearing to anyone adversely affected or whose application is
not acted on promptly.
10. require, not later than 1 year after enactment, a
parent or caretaker is not engaged in work or exempt from work
requirements and who has received assistance for more than 2
months to participate in community service. States may opt out
of this requirement by notifying the Secretary.
11. outline how the State will conduct a program,
designed to reach States and local law enforcement officials,
the education system, and relevant counseling services, that
provides education and training on the problem of statutory
rape so that teenage pregnancy prevention programs may be
expanded to include men.
Conference agreement
In general, the conference agreement follows the Senate
amendment, except that the Senate recedes on requirements 2, 8,
and 9. Requirement 10 is modified to provide that a State may
opt out of this requirement by submitting a letter from the
Governor to the Secretary.
5. Eligible States--Certifications
Present law
States must have in effect an approved child support
program. States must also have an approved plan for foster care
and adoption assistance. States must have an income and
verification system covering AFDC, Medicaid, unemployment
compensation, food stamps, and--in outlying areas--adult cash
aid.
House bill
State plans must include the following certifications:
1. that the State will operate a child support
enforcement program;
2. that the State will operate a child protection
program under Title IV-B (child welfare services and
family preservation);
3. specifying which State agency or agencies will
administer and supervise the State plan, and assurances
that local governments and private sector organizations
have been consulted and have had an opportunity to
submit comments on the plan; and
4. that the State will provide Indians with
equitable access to assistance.
5. no provision.
6. no provision.
Senate amendment
1. Same.
2. that the State will operate a foster care and adoption
assistance program under Title IV-E and ensure medical
assistance for the children;
3. Same.
4. Same.
5. that the State has established standards to ensure
against fraud and abuse.
6. that the State has established and is enforcing
standards and procedures to screen for and identify recipients
with a history of domestic violence, will refer them to
counseling and supportive services, and will waive program
requirements that would make it more difficult for these
persons to escape violence.
Conference agreement
The conference agreement generally follows the Senate
amendment, except that the certification that the State
establish and enforce standards and special procedures
regarding recipients with a history of domestic violence is
made a State option.
6. Eligible States--Public Availability of State Plan Summary
Present law
Federal regulations require that State program manuals
and other policy issuances, which reflect the State plan, be
maintained in the State office and in each local and district
office for examination on regular workdays.
House bill
The State shall make available to the public a summary of
the State plan.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
7. Grants to States--Family Assistance Grant
Present law
AFDC entitles States to Federal matching funds. Current
law provides permanent authority for appropriations without
limit for grants to States for AFDC benefits, administration,
and AFDC-related child care. Over the years, because of court
rulings, AFDC has evolved into an entitlement for qualified
individuals to receive cash benefits. In general, States must
give AFDC to all persons whose income and resources are below
State-set limits if they are in a class or category eligible
under Federal rules.
House bill
Each eligible State and Territory is entitled to receive
a grant from the Secretary for each of 6 fiscal years (1996
through 2001) in an amount equal to the State family assistance
grant for the fiscal year.
A State's family assistance grant is equal to the highest
of former Federal payments to the State for AFDC benefits, AFDC
Administration, Emergency Assistance, and JOBS during (1)
fiscal years 1992 through 1994, on average; (2) fiscal year
1994 plus, under certain circumstances, 85 percent of increased
fiscal year 1995 spending for emergency assistance, or (3)
fiscal year 1995.
If a State fails to make qualified State expenditures for
eligible families under all State programs equal to at least 75
percent of its fiscal year 1994 spending level (or at least 80
percent, if the State fails to meet its mandatory work
requirements) for AFDC benefits, AFDC Administration, Emergency
Assistance, JOBS, AFDC-related child care, and at-risk child
care, its family assistance grant is reduced by the shortfall
(see the discussion of penalties below).
Senate amendment
Same, except raises required State expenditures to 80
percent of fiscal year 1994 level.
Conference agreement
The conference agreement follows the House bill.
8. Grants to States--Grant to Reward States that Reduce Out-of-wedlock
Births
Present law
No provision.
House bill
For each fiscal year beginning with 1998, a State's grant
amount is increased by 5 or 10 percent if the State
``illegitimacy ratio'' is 1 or 2 percentage points,
respectively, lower in that year than its 1995 illegitimacy
ratio. Only States in which the rate of abortion falls below
the 1995 level are eligible for these additional grants.
The term ``illegitimacy ratio'' means, during a fiscal
year, the number of out-of-wedlock births that occurred in the
State divided by the number of births. In calculating grants,
the Secretary must disregard any difference in illegitimacy
ratios or abortion rates attributable to a change in State
methods of reporting data.
Senate amendment
Follows the House bill, except that for each of 5 fiscal
years (1999 through 2003) the Secretary shall make a grant of
up to $20 million for each of the 5 States that demonstrate the
greatest decrease in out-of-wedlock births during the most
recent 2-year period for which the information is available. If
fewer than 5 States are eligible, the amount of such grants
shall be $25 million.
Conference agreement
The conference agreement follows the Senate amendment,
with the modification that funds are available between 1999 and
2002.
9. Grants to States--Supplemental Grant for Population Increases and
Low Federal Spending Per Poor Person in Certain States
Present law
There is no adjustment for population growth. Instead,
current law provides unlimited matching funds. When AFDC
enrollment climbs, Federal funding automatically rises.
House bill
Subject to the eligibility criteria below, each
qualifying State (for purposes of this section, the term
``State'' is limited to the 50 States and the District of
Columbia) is entitled to receive from the Secretary
supplemental grants to assist in making cash welfare payments
for 4 years, fiscal years 1997-2000. For fiscal year 1997 the
supplemental grant equals 2.5 percent of Federal payments to
the qualifying State during fiscal year 1994 for AFDC benefits,
AFDC Administration, Emergency Assistance, JOBS and AFDC-
related child care. For fiscal years 1998 through 2000, each
qualifying State is entitled to receive an amount equal to the
supplemental grant for the immediately preceding year plus, if
it continues to meet the eligibility criteria below, an annual
increase. States that no longer meet the qualification criteria
are entitled to receive the prior year's grant without
increase. A State is a qualifying State for a fiscal year if
average Federal welfare spending per poor person is less than
the national average and State population growth exceeds the
average for all States. States must qualify during fiscal year
1997 in order to qualify during later years. Certain States
(i.e. those in which Federal welfare spending per poor person
for fiscal year 1994 was less than 35 percent of the fiscal
year 1994 national average or in which population has increased
by more than 10 percent from April 1, 1990 to July 1, 1994) are
deemed to qualify for supplemental grants in each year between
fiscal year 1997 and 2000. A total of $800 million is
appropriated for this purpose. If this sum is insufficient for
full supplemental grants for all qualifying States, pro rata
reductions will be made. (p. 244)
Senate amendment
Same except for change in years of possible supplemental
grants: fiscal years 1998 through 2001 (instead of 1997 through
2000). States must qualify during fiscal year 1998 in order to
do so in later years.
Conference agreement
The conference agreement follows the Senate amendment.
10. grants to states--bonus to reward high performance states
Present law
No provision.
House bill
Certain ``high performing'' States (i.e. those most
successful in achieving the purposes of the block grant
program) are entitled to receive additional payments of up to
five percent of their State family assistance grant. The
formula for measuring State performance shall be developed by
the Secretary in consultation with the National Governors'
Association and the American Public Welfare Association. A
total of $0.5 billion is appropriated for high performance
bonuses to States during 5 fiscal years, 1999 through 2003, and
average annual performance bonuses are to equal $100 million.
Note.--In addition, required maintenance-of-effort
spending is to be reduced for States that achieve performance
scores above a threshold set by the Secretary.
Senate amendment
Appropriates twice as much money for high performance
bonuses--$1 billion--and provides that average annual bonuses
are to equal $175 million for fiscal years 1999 through 2002
and $300 million for fiscal year 2003.
Conference agreement
The conference agreement follows the Senate amendment
regarding funding (total of $1 billion) and follows the House
bill regarding the criteria for awarding bonuses to ``high
performance'' States. The provision allowing certain high
performance States to meet a lower maintenance of effort
requirement is dropped (see below).
11. grants to states--contingency fund for state welfare programs
Present law
No provision. Current law provides unlimited matching
funds.
House bill
To assist States (for purposes of this section, the term
``State'' is limited to the 50 States and the District of
Columbia) with increased welfare needs, the House proposal
establishes a contingency fund for matching grants and
appropriates up to $2 billion over a total of 5 fiscal years
(1997 through 2001) for the fund. Eligible States may receive
contingency fund payments totaling up to 20 percent of their
annual family assistance grant in any single year (in any
single month, States cannot receive more than \1/12\ of 20
percent of the annual family assistance grant). States are to
submit requests for payment of contingency funds, and the
Secretary of the Treasury must make payments to eligible States
in the order in which requests are received.
States are eligible to receive payments if State
unemployment is high (at or above 6.5 percent in the most
recent three-month period) and rising relative to previous
years (at least 10 percent above the comparable level in either
or both of two preceding years). States also are eligible to
receive payments if food stamp participation in the State in
the most recent three-month period has risen at least 10
percent from the average monthly number of recipients who would
have participated in the comparable quarter of fiscal year 1994
or fiscal year 1995, as determined by the Secretary of
Agriculture, if amendments made by this proposal to the food
stamp program (including optional food stamp block grant
provisions) and to eligibility of noncitizens had been in
effect throughout fiscal year 1994 and 1995. States must
maintain 100 percent of historic State welfare spending
(generally, the amount of State funds spent in fiscal year 1994
for AFDC benefits and administration, AFDC-related child care,
at-risk child care, Emergency Assistance, and JOBS) during
years in which contingency fund payments are made, or repay an
amount reflecting the shortfall. States must share in the cost
of contingency funds at their fiscal year 1995 Medicaid
matching rate. To smooth their transition to recovery, States
that have been receiving contingency fund payments will
continue to receive payments for one month after they no longer
meet the criteria described above.
Senate amendment
Contingency fund of $2 billion covers 4 fiscal years
(1998 through 2001) rather than 5. (Because of the Byrd rule,
the provision specifying that the CBO baseline is to assume
that no grant will be made after 2001 is deleted.)
Conference agreement
The conference agreement follows the House bill, with the
modification that, notwithstanding section 257(b)(2) of the
Balanced Budget and Emergency Deficit Control Act of 1985, the
baseline shall assume that no grant shall be made under this
subsection after fiscal year 2001.
12. grants to states--work program grant
Present law
House bill
To assist States in meeting the work requirements,
eligible States may receive funds from a supplemental grant for
the operation of work programs. To be eligible, a State's total
expenditures for the fiscal year to meet work participation
requirements must exceed its total jobs spending for fiscal
year 1994, its TANF work programs must be coordinated with job
training programs of Title II of the Job Training Partnership
Act (JTPA), or its successor, and the State must need the extra
funds to meet TANF work requirements or certify that it intends
to exceed participation requirements. The Secretary is to issue
regulations for equitable distribution of the grants. For these
supplemental grants, $3 billion is authorized for fiscal year
1999 (amounts appropriated are authorized to remain available
until spent).
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment.
13. use of grants--in general
Present law
AFDC and JOBS funds are to be used in conformity with
State plans. A State may replace a caretaker relative with a
protective payee or a guardian or legal representative.
House bill
Grants may be used in any manner reasonably calculated to
accomplish the purposes of this title, including activities now
authorized under Titles IV-A and IV-F of the Social Security
Act, or to provide low-income households with assistance in
meeting home heating and cooling costs.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
14. use of grants--limitation on administrative spending
Present law
No provision.
House bill
States may not use more than 15 percent of the family
assistance grant for administrative purposes. However, this cap
does not apply to spending for information technology and
computerization needed to implement the tracking and monitoring
required by this title.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
15. use of grants--recipients moving into the state from another state
Present law
The Social Security Act forbids the Secretary to approve
a plan that denies AFDC eligibility to a child unless he has
resided in the State for 1 year. The U.S. Supreme Court has
invalidated some State laws that withheld aid from persons who
had not resided there for at least 1 year. It has not ruled on
the question of paying lower amounts of aid for incoming
residents.
House bill
States may impose program rules and benefit levels of the
State from which a family moved if the family has lived in the
State for fewer than 12 months.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
16. use of grants--transfer of funds
Present law
No provision.
House bill
States may transfer up to 30 percent of funds paid under
this section to carry out a State program under Part B (child
welfare and family preservation) or Part E (foster care and
adoption assistance), the social services block grant, and the
child care and development block grant. Of the 30 percent that
may be transferred, not more than one-third (that is, not more
than 10 percent of the total block grant) may be transferred
into the Social Services Block Grant. Amounts transferred to
the Social Services Block Grant must be spent on programs and
services for children or their families.
Senate amendment
States may transfer up to 30 percent of funds only to the
child care and development block grant.
Conference agreement
The conference agreement follows the House bill, except
that the provision allowing transfers into the child protection
block grant, which was deleted, is dropped. The conference
agreement adds the modification that funds transferred into the
Title XX Social Services Block Grant must be spent on families
with incomes that do not exceed 200 percent of the poverty
level (as determined annually by the Federal Office of
Management and Budget).
17. Use of Grants--Reservation of Funds
Present law
No provision.
House bill
A State may reserve amounts paid to the State for any
fiscal year for the purpose of providing assistance under this
part. Reserve funds can be used in any fiscal year.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
18. Use of Grants--Authority to Operate an Employment Placement Program
Present law
Required JOBS services include job development and job
placement. The State agency may provide services directly or
through arrangements or under contracts with public agencies or
private organizations.
House bill
States may use a portion of the family assistance grant
to make payments (or provide job placement vouchers) to State-
approved agencies that provide employment services to
recipients of cash aid.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
19. Use of Grants--Implementation of Electronic Benefit Transfer System
Present law
Regulations permit States to receive Federal
reimbursement funds (50 percent administrative cost-sharing
rate) for operation of electronic benefit systems. To do so,
States must receive advance approval from HHS and must comply
with automatic data processing rules.
House bill
States are encouraged to implement an electronic benefit
transfer (EBT) system for providing assistance under the State
program funded under this part, and may use the grant for such
purpose. (The food stamp title of the bill exempts any EBT
system distributing need-tested benefits established or
administered by a State from Federal Reserve Board rules known
collectively as ``Regulation E.'' The most important Regulation
E provision requires that lost/stolen benefits be restored;
individuals with accounts are responsible only for the first
$50 of any loss, when reported in a timely fashion.)
Senate amendment
Same (in Miscellaneous chapter).
Conference agreement
The conference agreement follows the House bill.
Conferees also agreed to put comprehensive language on EBT and
Regulation E in the food stamps section of this legislation.
20. Use of Grants--Individual Development Accounts
Present law
No provision.
House bill
No provision.
Senate amendment
Authorizes a State to use TANF funds to fund individual
development accounts established by recipients for specified
purposes: postsecondary educational expenses, first-home
purchase, business capitalization. Terms include: contributions
must be from earned income, withdrawals would be allowed only
for the above purposes, and Federal benefit programs must
disregard funds in the account in determining eligibility and
amount of aid.
Conference agreement
The conference agreement follows the Senate amendment.
21. Administrative Provisions
Present law
The Secretary pays AFDC funds to the State on a quarterly
basis.
House bill
The Secretary shall make each grant payable to a State in
quarterly installments. The Secretary is to estimate each
State's payment on the basis of a report about expected
expenditures from the State and to certify to the Secretary of
the Treasury the amount estimated, adjusted if needed for
overpayments or underpayments for any past quarter. The
Secretary must notify States not later than three months in
advance of any quarterly payment that will be reduced to
reflect payments made to Indian tribes in the State. Under
certain circumstances, overpayments to individuals no longer
receiving temporary family assistance will be collected from
Federal income tax refunds and repaid to affected States.
Senate amendment
Same, except the provision regarding ``Collection of
State Overpayments to Families from Federal Tax Refunds'' was
deleted because of the Byrd rule.
Conference agreement
The conference agreement follows the Senate amendment.
22. Federal Loans for State Welfare Programs
Present law
No provision. Instead, current law provides unlimited
matching funds.
House bill
The proposal establishes a $1.7 billion revolving loan
fund from which eligible States may borrow funds to meet the
purposes of this title. States that have been penalized for
misspending block grant funds as determined by an audit are
ineligible for loans. Loans are to mature in 3 years, at the
latest, and the cumulative amount of all loans to a State
during fiscal years 1997 through 2001 cannot exceed 10 percent
of its basic block grant. The interest rate shall equal the
current average market yield on outstanding U.S. securities
with a comparable remaining maturity length. States face
penalties for failing to make timely payments on their loan.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
23. Mandatory Work Requirements--Participation Rate Requirements
Present law
The following minimum percentage of nonexempt AFDC
families must participate in JOBS:
Minimum percentage
Fiscal year:
1995.......................................................... 20
1996 and thereafter (no requirement)..........................
0
The following minimum percentages of two-parent families
receiving cash assistance must participate in specified work
activities:
Minimum percentage
Fiscal year:
1995.......................................................... 50
1996.......................................................... 60
1997.......................................................... 75
1998 (last year).............................................. 75
1999 and thereafter (no requirement).......................... 0
House bill
The following minimum percentages of all families
receiving assistance funded by the family assistance grant
(except those with a child under 1, if exempted by the State)
must participate in work activities:
Minimum percentage
Fiscal year:
1997.......................................................... 25
1998.......................................................... 30
1999.......................................................... 35
2000.......................................................... 40
2001.......................................................... 45
2002 or thereafter50..........................................
The following minimum percentages of two-parent families
receiving cash assistance must participate in specified work
activities:
Minimum percentage
Fiscal year:
1996.......................................................... 50
1997.......................................................... 75
1998.......................................................... 75
1999 and thereafter90.........................................
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
24. Mandatory Work Requirements--Calculation of Participation Rates
Present law
Participation rates for all families are calculated for
each month. A State's rate, expressed as a percentage, equals
the number of actual JOBS participants divided by the number of
AFDC recipients required to participate (nonexempt from JOBS).
In calculating a State's overall JOBS participation rate, a
standard of 20 hours per week is used. The welfare agency is to
count as participants the largest number of persons whose
combined and averaged hours in JOBS activities during the month
equal 20 per week.
Participation rates for two-parent families for a month
equal the number of parents who participate divided by the
number of principal earners in AFDC-UP families (but excluding
families who received aid for two months or less, if one parent
engaged in intensive job search).
House bill
1. The participation rate (for all families and for two-
parent families) for a State for the fiscal year is the average
of the participation rates for each month in the fiscal year.
The monthly participation rate for a State is a percentage
obtained by dividing the number of families receiving
assistance that include an adult who is engaged in work by the
number of families receiving assistance (not counting those
subject to a recent sanction for refusal to work).
2. The required participation rate for a year is to be
adjusted down one percentage point for each percentage point
that the average monthly caseload is below fiscal year 1995
levels, unless the Secretary finds that the decrease was
required by Federal law or results from changes in State
eligibility criteria (which must be proved by the Secretary).
The Secretary is to prescribe regulations for this adjustment.
3. States have the option of counting individuals
receiving assistance under a tribal family assistance plan
towards the State work participation requirement.
4. States have the option of not requiring single parents
of children under age one to engage in work and may disregard
these parents in determining work participation rates.
Senate amendment
1. Same.
2. Same.
3. Same.
4. Allows a parent to receive this exemption only for a
total of 12 months, whether or not consecutive.
Conference agreement
The conference agreement follows the Senate amendment,
with a modification. For item 1, the conference agreement
includes minor heads of households along with adults in the
calculation of State work participation rates (in both the
numerator and denominator of the calculation).
25. Mandatory Work Requirements--Optional Individual Responsibility
Plan
Present law
States must make an initial assessment of the
educational, child care, and other supportive service needs,
and of the skills and employability of each JOBS participant.
In consultation with the participant, the agency shall develop
an employability plan for the participant, which shall not be
considered a contract. After these steps, the State agency may
require the participant to negotiate and enter into an
agreement that specifies matters such as the participant's
obligations, duration of participation, and services to be
provided.
House bill
States are required to make an initial assessment of the
skills, work experience, and employability of each recipient of
assisting under the block grant who is over age 17 or has not
completed high school or the equivalent, and is not attending
secondary school. States may develop individual responsibility
plans setting forth employment goals, obligations of the
individual, and services the State will provide. In addition to
other penalties that may apply, States may reduce assistance to
families that include an individual who fails to comply with
the terms of such plans.
Senate amendment
Requires States to require TANF recipient families to
enter into a personal responsibility agreement, as developed by
the State. The agreement means a binding contract. It is to
include a negotiated individual time limit for benefit
eligibility, outline steps the family and State will take to
move the family to self-sufficiency, provide for sanctions if
the individual fails to sign the agreement or comply with its
terms and shall be invalid if the State fails to comply with
its terms.
Conference agreement
The conference agreement follows the House bill.
26. Mandatory Work Requirements--Engaged in Work
Present law
Not relevant. (As discussed below, required activities in
State JOBS programs are education, jobs skills training, job
readiness, job development and job placement and two of these
four: job search, on-the-job training, work supplementation,
and community work experience, or other approved work
experience. In general, to be counted as a JOBS participant, a
person must be engaged in a JOBS activity for an average of 20
hours weekly.)
House bill
To be counted as engaged in work for a month, a recipient
must be participating for at least the minimum average number
of hours per week shown in the table below in one or more of
these activities: unsubsidized employment, subsidized (private
or public) employment, work experience, on-the-job training,
job search and job readiness assistance, community service
programs, or vocational educational training (12 months
maximum).
Minimum average weekly hours
Fiscal year:
1996.......................................................... 20
1997.......................................................... 20
1998.......................................................... 20
1999.......................................................... 25
2000.......................................................... 30
Exceptions to the above table: (1) to be considered
engaged in work, an adult in a two-parent family must make
progress in work activities at least 35 hours per week, with
not fewer than 30 hours attributable to the work activities
cited above; (2) an individual in job search may be counted as
engaged in work for up to 8 weeks, no more than 4 of which may
be consecutive; (3) a State may count a single parent with a
child under age 11 as engaged in work for a month if the parent
works an average of 20 hours weekly in all years (the hourly
minimum does not rise for these parents); (4) not more than 20
percent of adults in all families and in two-parent families
determined to be engaged in work in the State for a month may
meet the work requirement through participation in vocational
educational training; (5) teen parents (under age 20) who head
their households are considered to be engaged in work if they
maintain satisfactory attendance at secondary school or
participate in work-related education for at least the minimum
average number of hours in the table; and (6) no provision.
Senate amendment
Changes list of work activities by substituting
``educational training (not to exceed 24 months with respect to
any individual)'' for ``vocational educational training (not to
exceed 12 months with respect to any individual).'' (Also, as
the table below shows, required weekly hours of work rise to 35
in fiscal year 2002 and thereafter.)
Minimum average weekly hours
Fiscal year:
1996.......................................................... 20
1997.......................................................... 20
1998.......................................................... 20
1999.......................................................... 25
2000.......................................................... 30
2001.......................................................... 30
2002 and thereafter........................................... 35
Exceptions to the above table: (1) an adult in a two-
parent family is considered engaged in work if he/she works at
least 35 hours weekly, with at least 30 hours attributable to
one of the activities cited above, and, if the family receives
federally-funded child care, the second parent makes
satisfactory progress for at least 20 hours weekly in
employment, work experience, on-the-job training, or community
service; (2) an individual in job search may be counted as
engaged in work for only 4 weeks (12 weeks if the State
unemployment rate exceeds the national average); (3) same as
House provision; (4) not more than 30 percent of adults in all
families and in 2-parent families may meet the work activity
requirement through participation in vocational educational
training (note: bill language refers to vocational educational
training, although references elsewhere are to educational
training--see above); (5) teen parents (under age 20) who head
their households are considered to be engaged in work if they
maintain satisfactory attendance at secondary school or the
equivalent during the month or participate in education
directly related to employment for at least the minimum average
number of hours per week in the table; and (6) a person
participating in a community service program may be treated as
being engaged in work if she provides child care services to
another participant in the community service program for the
period of time each week determined by the State.
Conference agreement
The conference agreement follows the house bill and the
Senate amendment as follows:
First, the conference agreement follows the House bill
regarding vocational educational training as a work activity
which is creditable for up to 12 months.
Second, the conference agreement follows the House bill
regarding the minimum average weekly hours of work required.
Finally, regarding exceptions to the work hour
requirements, the conference agreement: (1) follows the Senate
amendment on hours of work for adults in a 2-parent family,
with the modification exempting the second parent, if such
parent is disabled or caring for a severely disabled child; (2)
follows the Senate amendment regarding job search, with the
modification that a total of 6 weeks is allowed, of which not
more than 4 may be consecutive (and, in the case of States in
which the unemployment rate is at least 50 percent above the
national average, a total of 12 weeks is allowed); in addition
an individual may count a partial week of job search as a full
week of work limited to one occasion; (3) follows the House
bill in permitting States to count certain single parents as
engaged in work if the parent works for 20 hours per week, with
the modification that the parent's child must be under age 6
(however, the conference agreement follows the Senate amendment
regarding the requirement that States may not disregard such an
adult in calculating their work rates); (4) follows the House
bill regarding the limitation on the number of parents
countable if in vocational education; (5) follows the Senate
amendment on teen parents and education, with the modification
that teen parents meeting the work requirement in this way are
counted towards the 20 percent limitation on vocational
education (see above); and (6) follows the Senate amendment on
persons providing child care, with the clarification that such
hours spent providing child care count towards fulfillment of
the hours of work required.
27. Mandatory Work Requirements--Work Activities Defined
Present law
JOBS programs must include specified educational
activities (high school or equivalent education, basic and
remedial education, and education for those with limited
English proficiency); job skills training, job readiness
activities, and job development and placement. In addition,
States must offer at least two of these four items: group and
individual job search; on-the-job training; work
supplementation or community work experience program (or
another work experience program approved by the HHS Secretary).
The State also may offer postsecondary education in
``appropriate'' cases.
House bill
``Work activities'' are defined as unsubsidized
employment, subsidized private sector employment, subsidized
public sector employment, work experience if sufficient private
sector employment is not available, on-the-job training, job
search and job readiness assistance, community service
programs, vocational educational training (1 year maximum),
jobs skills training directly related to employment, education
directly related to employment in the case of a recipient who
lacks a high school diploma or equivalency, and satisfactory
attendance at secondary school for a recipient who has not
completed high school.
Senate amendment
Same as House provision except for last two items in list
of ``work activities.'' These activities (work-related
education and secondary school attendance) are creditable as
``work'' only for persons under age 20.
Conference agreement
The conference agreement follows the House bill, with the
modification to include the provision of child care services to
an individual who is participating in a community service
program.
28. Mandatory Work Requirements--Penalties Against Individuals
Present law
For failure to meet JOBS requirements without good cause,
AFDC benefits are denied to the offending parent and payments
for the children are made to a third party. In a two-parent
family, failure of one parent to meet JOBS requirements without
good cause results in denial of benefits for both parents
(unless the other parent participates) and third-party payment
on behalf of the children. Repeated failures to comply bring
potentially longer penalty periods.
House bill
If an adult recipient refuses to engage in required work,
the State shall reduce the amount of assistance to the family
pro rata (or more, at State option) with respect to the period
of work refusal, or shall discontinue aid, subject to good
cause and other exceptions that the State may establish. In
addition, if block grant recipients fail to meet any of the
work requirements, States may terminate their coverage under
the Medicaid program. A State may not penalize a single parent
caring for a child under age eleven for refusal to work if the
parent proves a demonstrated inability to obtain needed child
care for specified reasons.
Senate amendment
Same as House provision except that Senate does not
provide that States may end Medicaid for block grant recipients
who fail to meet any of the work requirements in the act.
Conference agreement
The conference agreement follows the House bill with the
modification that, if benefits are terminated under the work
requirements of section 407 of this part, States may end
Medicaid eligibility for adults made ineligible, but not
children in the family. In addition, modifies the House bill
and Senate amendment so that States may not penalize a single
parent caring for a child under age 6 for refusal to work if
the parent proves a demonstrated inability to obtain needed
child care for specified reasons.
29. Mandatory Work Requirements--Nondisplacement in Work Activities
Present law
Under JOBS law, no work assignment may displace any
currently employed worker or position (including partial
displacement such as a reduction in hours of non-overtime work,
wages, or employment benefits). Nor may a JOBS participant fill
a position vacant because of layoff or because the employer has
reduced the workforce with the effect of creating a position to
be subsidized.
House bill
In general, an adult in a family receiving IV-A
assistance may fill a work vacancy. However, no adult in a
Title IV-A work activity shall be employed or assigned when
another person is on layoff from the same or a substantially
equivalent job, or when the employer has terminated the
employment of a regular worker or otherwise caused an
involuntary reduction of its workforce in order to fill the
vacancy thus created with a subsidized worker. This provision
does not preempt or supersede any State or local law providing
greater protection from displacement.
Senate amendment
In general, an adult in a family receiving IV-A
assistance may fill a work vacancy. However, no IV-A work
assignment may displace a currently employed worker (including
any partial displacement such as a reduction in hours of
overtime work, wages, or employment benefits), impair an
existing contract or collective bargaining agreement, or result
in ending a regular worker's employment. States must establish
and maintain a grievance procedure, including hearing
opportunity, for resolving complaints and providing remedies
for violations. This section does not preempt or supersede any
State or local law providing greater protection from
displacement.
Conference agreement
The conference agreement follows the House bill, with the
modification to include a requirement that States establish a
grievance procedure for workers adversely affected pursuant to
this section.
30. Mandatory Work Requirements--Sense of the Congress that State
Should Place a Priority on Placing Certain Parents in Work
Present law
As a condition of receiving full matching funds, a State
must use 55 percent of its JOBS spending for these target
groups: persons who have received aid for any 36 of the 60
preceding months, parents under age 24 who failed to complete
high school, and parents whose youngest child is within 2 years
of becoming ineligible for aid (i.e., whose youngest child is,
usually, at least 16).
House bill
It is the sense of Congress that States should give
highest priority to requiring adults in two-parent families and
adults in single-parent families with children that are older
than preschool age to engage in work activities.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
31. Mandatory Work Requirements--Sense of the Congress that States
Should Impose Certain Requirements on Noncustodial, Nonsupporting Minor
Parents
Present law
No provision.
House bill
It is the sense of the Congress that 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.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
32. Mandatory Work Requirements--Review of Implementation of State Work
Programs
Present law
No provision.
House bill
During fiscal year 1999, the Committees on Ways and Means
and Finance must hold hearings to review the implementation by
States of the mandatory work requirements, and may introduce
legislation to remedy any problems found.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
33. Prohibitions; Requirements--Families with No Minor Children
Present law
Only families with dependent children (under age 18, or
19 at State option if the child is still in secondary school or
in the equivalent level of vocational or technical training)
can participate in the program.
House bill
Only families with a minor child (who resides with a
custodial parent or other adult caretaker relative of the
child) or a pregnant individual may receive assistance under
this part.
Senate amendment
Adds prohibition against assistance to a family in which
an adult already has received 60 months of assistance
attributable to Federal funds. See also item 41.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment. Conferees note that the 5-year time limit on
benefits applies only to benefits provided using Temporary
Assistance for Needy Families (TANF) Block Grant funds. Other
Federal funds, such as Title XX Social Services Block Grants
and support through the expanded Child Care and Development
Block Grant, are not restricted for families that have already
received 5 years of TANF support.
34. Prohibitions; Requirements--No Additional Cash Assistance for
Children Born to Families Receiving Assistance
Present law
No provision.
House bill
1. Block grant funds may not be used to provide cash
benefits for a child born to a recipient of cash welfare
benefits or an individual who received cash benefits at any
time during the 10-month period ending with the birth of the
child. This prohibition does not apply to children born as a
result of rape or incest. Block grant funds can be used to
provide noncash (voucher) assistance for particular goods and
services suitable for the care of the child.
2. States that pass a law specifically exempting their
own programs from this national rule may use Federal funds to
increase cash benefits for families that have additional
children while on welfare.
3. If a State has a family cap policy under a section
1115 waiver on the date of enactment, it may continue terms of
those family caps.
Senate amendment
1. Same family cap provision except that Senate amendment
does not explicitly provide for use of block grant funds to
give voucher assistance for care of the excluded child. (This
provision was deleted because of the Byrd rule.)
2. Same.
3. Same provision, but adds permission for States to
continue terms of family caps resulting from State law passed
within 2 years of enactment.
Conference agreement
This provision was deleted due to the Byrd rule.
35. Prohibitions; Requirements--Noncooperation in Child Support
Present law
As a condition of eligibility, applicants or recipients
must cooperate in establishing paternity of a child born out-
of-wedlock, in obtaining support payments, and in identifying
any third party who may be liable to pay for medical care and
services for the child.
House bill
The State must stop paying the parent's share of the
family welfare benefit if the parent fails to cooperate in
establishing paternity, or in establishing, modifying or
enforcing a child support order, and the individual does not
qualify for a good cause or other exception; the State may deny
benefits to the entire family for the parent's failure to
cooperate.
Senate amendment
If a parent fails to cooperate in establishing paternity
or in establishing, modifying, or enforcing a child support
order, and the individual does not qualify for a good cause or
other exception, the State shall reduce the family's benefit by
at least 25 percent. It may reduce the benefit to zero.
Conference agreement
The conference agreement follows the Senate amendment.
36. Prohibitions; Requirements--Failure to Assign Certain Support
Rights to the State
Present law
As a condition of AFDC eligibility, applicants must
assign child support and spousal support rights to the State.
House bill
Block grant funds may not be used to provide cash
benefits to a family with an adult who has not assigned to the
State rights to child support or spousal support.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
37. Prohibitions; Requirements--School Attendance Required for Adults
without a Diploma
Present law
No provision.
House bill
No provision.
Senate amendment
Prohibits any TANF-funded assistance to the family of an
adult older than 20 but younger than 51 who has received IV-A
aid or food stamps if the person does not have, or is not
working toward, a secondary school diploma or its equivalent.
An exception is made for a person determined to lack the
capacity to successfully complete the course of study.
Conference agreement
The conference agreement follows the Senate amendment.
38. Prohibitions; Requirements--School Attendance Required for Minor
Children
Present law
No provision.
House bill
No provision.
Senate amendment
Prohibits any TANF-funded aid to a family that includes
an adult who has received IV-A benefits or food stamps unless
the adult ensures that the family's minor dependent children
attend school as required by the law of their State.
Provides that a State shall not be prohibited from
sanctioning a family with an adult who fails to meet this
requirement.
Conference agreement
The conference agreement follows the Senate amendment.
39. Prohibitions; Requirements--Unwed Minor Parent Not Attending High
School or Not Living with an Adult
Present law
States may require unwed parents under age 18 to live
with an adult in order to receive AFDC. They must require a
custodial parent who is under 20 years old and who has not
completed high school to participate in an educational activity
under the JOBS program.
House bill
States have the option of using Federal funds to provide
cash welfare payments to unmarried minors only under specified
conditions. States may not use Federal family assistance grant
funds to provide assistance to unwed parents under age 18 who
have a child at least 12 weeks of age and did not complete high
school unless they attend high school or an alternative
educational or training program. States may not use Federal
funds to provide assistance to unmarried parents under age 18
unless they live with a parent or in another adult-supervised
setting; States may, under certain circumstances, use Federal
funds to assist teen parents in locating and providing payment
for a second chance home or other adult-supervised living
arrangement.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
40. Prohibitions; Requirements--Medical Services
Present law
States must assure that family planning services are
offered to all AFDC recipients who request them. (The Secretary
is to reduce AFDC payments by 1 percent for failure to offer
and provide family planning services to those requesting them.)
House bill
Federal family assistance grants may not be used to
provide medical services; Federal funds may, however, be used
to provide prepregnancy family planning services.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
41. Prohibitions; Requirements--Time-Limited Benefits
Present law
No provision.
House bill
Federal family assistance grants may not be used to
provide assistance for the family of a person who has received
block grant aid for 60 months (or fewer, at State option),
whether or not consecutive. States may give hardship exemptions
in a fiscal year to up to 20 percent of their average monthly
caseload, including individuals who have been battered or
subjected to sexual abuse (but States are not required to
exempt these persons). When considering an individual's length
of stay on welfare, States are to count only time during which
the individual received assistance as the head of household or
as the spouse of the household head. Any State funds spent to
aid persons no longer eligible for TANF after 5 years of
benefits may be counted toward the maintenance-of-effort
requirement.
This part shall not be interpreted to prohibit a State
from using State funds not originating with the Federal
government to aid families that lose eligibility for the block
grant program because of the 5-year time limit.
Senate amendment
Same, except adds an exemption from the time limit for
persons who live on a reservation of an Indian tribe with a
population of at least 1,000 persons and with at least 50
percent of the adult population not employed.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment on the time limit policy, and includes the
Senate provision on exceptions for certain Indian populations
and the House provision specifying States' authority to use
State and local funds to provide support, including cash
assistance, after 5 years. (For a description of other Federal
funds that may be provided such families, see the conference
agreement description of item 33 above.)
42. Prohibitions; Requirements--Fraudulent Misrepresentation of
Residence in Two States
Present law
No provision.
House bill
Any person convicted in Federal court or State court of
having fraudulently misrepresented residence in order to obtain
benefits or services in two or more States from the family
assistance grant, Medicaid, Food Stamps, or Supplemental
Security Income programs is ineligible for family assistance
grant aid for 10 years.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
43. Prohibitions; Requirements--Fugitive Felons and Probation and
Parole Violators
Present law
States may provide a recipient's address to a State or
local law enforcement officer who furnishes the recipient's
name and social security number and demonstrates that the
recipient is a fugitive felon and that the officer's official
duties include locating or apprehending the felon.
House bill
No assistance may be provided to an individual who is
fleeing to avoid prosecution, custody or confinement after
conviction for a crime (or an attempt to commit a crime) that
is a felony (or, in New Jersey, a high misdemeanor), or who
violates probation or parole imposed under Federal or State
law.
Any safeguards established by the State against use or
disclosure of information about individual recipients shall not
prevent the agency, under certain conditions, from providing
the address of a recipient to a law enforcement officer who is
pursuing a fugitive felon or parole or probation violator. This
provision applies also to a recipient sought by an officer not
because he is a fugitive but because he has information that
the officer says is necessary for his official duties. In both
cases the officer must notify the State that location or
apprehension of the recipient is within his official duties.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
44. Prohibitions; Requirements--Minor Children Absent From Home for a
Significant Period
Present law
Regulations allow benefits to continue for children who
are ``temporarily absent'' from home.
House bill
No assistance may be provided for a minor child who has
been absent from the home for 45 consecutive days or, at State
option, between 30 and 180 consecutive days. States may
establish a good cause exemption as long as it is detailed in
the State report to the Secretary. No assistance can be given
to a parent or caretaker who fails to report a missing minor
child within five days of the time when it is clear (to the
parent) that the child will be absent for the specified time.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
45. Prohibitions; Requirements--Medical Assistance Required to be
Provided for Families Becoming Ineligible for Assistance Due to
Increased Earnings or Collection of Child Support
Present law
States must continue Medicaid (or pay premiums for
employer-provided health insurance) for 6 months to a family
that loses AFDC eligibility because of hours of, or income
from, work of the caretaker relative, or because of loss of the
earned income disregard after 4 months of work. States must
offer an additional 6 months of medical assistance, for which
it may require a premium payment if the family's income after
child care expenses is above the poverty guideline. For
extended medical aid, families must submit specified reports.
States must continue Medicaid for 4 months to those who lose
AFDC because of increased child or spousal support.
House bill
States must provide medical assistance for 1 year to
families that become ineligible for block grant assistance
because of increased earnings, provided they received cash
block grant assistance in at least 3 of the 6 months before the
month in which they became ineligible and their income is below
the poverty line. For purposes of determining family income to
compare with the Federal poverty line, States have the
authority to set their own definition of income except that
income from the Earned Income Tax Credit must be disregarded.
States also must provide medical assistance for 4 months to
families that leave welfare (after being enrolled for at least
3 of the previous 6 months) because of increased income from
child support or spousal support.
Senate amendment
Same as current law.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment, with the modification that income
restrictions conform to current law. Transitional Medicaid
coverage is extended through the life of the block grant.
46. Prohibitions; Requirements--Medicaid
Present law
States must provide Medicaid to all AFDC recipients and
to some AFDC-related groups who do not receive cash aid.
Examples include persons who do not receive a monthly payment
because the amount would be below $10 (Federal law prohibits
payments this small) and persons whose payments are reduced to
zero in order to recover previous overpayments.
States must continue Medicaid for specified periods for
certain families who lose AFDC benefits. If the family loses
AFDC benefits because of increased earnings or hours of
employment, Medicaid coverage must be extended for 12 months.
(During the second 6 months a premium may be imposed, the scope
of benefits may be limited, or alternate delivery systems may
be used.) If the family loses AFDC because of increased child
or spousal support, coverage must be extended for 4 months.
States are also required to furnish Medicaid to certain two-
parent families whose principal earner is unemployed and who
are not receiving cash assistance because the State has set a
time limit on their AFDC coverage.
House bill
States must provide medical assistance to persons who
would be eligible for AFDC cash benefits (under terms of July
16, 1996) if that program still were in effect.
A State may increase the AFDC income standard above that
of July 16, 1996 by the percentage increase in the consumer
price index for all urban consumers over the same period.
Senate amendment
States must provide medical assistance to persons who
would be eligible for AFDC (under terms of July 1, 1996) as if
that program were still in effect. Simplifies standards to make
it easier for States to administer. States would have the
option to: (1) lower their income standard, but not below those
in effect on May 1, 1988; and (2) use income and resource
standards and methodologies that are less restrictive than
those in effect on July 1, 1996.
In order to provide States additional flexibility, States
may use 1 application form and may administer the program
through either its title IV agency or its title XIX agency.
Families would receive transitional Medicaid benefits as
under current law.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment, with the modification that States must retain
the income and resource standards they had for AFDC eligibility
on July 16, 1996. States may terminate Medicaid eligibility for
an adult who is terminated from TANF because of failure to
work. Conferees are concerned that the conference agreement may
require States to maintain a dual-eligibility determination
system. Conferees, however, lacked adequate information to
determine the true nature and extent of this problem. Thus,
conferees recommend that the Committees on Ways and Means,
Commerce, and Finance conduct hearings in the next Congress to
carefully examine this problem. If the committees determine
that the dual-eligibility system does in fact impose additional
administrative costs on the States, Congress should consider
Federal-State cost-sharing schemes and other legislative
solutions. In the meantime, conferees are establishing a fund
of $.5 billion in entitlement spending that will be distributed
among States that experience additional administrative expenses
directly attributable to conducting a dual-eligibility system.
47. Prohibitions; Requirements--State Disregard of Income Security
Payments
Present law
AFDC benefits may not be paid to a recipient of old-age
assistance (predecessor to Supplemental Security Income (SSI)
and now available only in Puerto Rico, Guam, and the U.S.
Virgin Islands), SSI, or AFDC foster care payments.
House bill
This provision allows States to disregard payments from
old age and survivors' insurance (social security), disability
insurance, old-age assistance, foster care, and Supplemental
Security Income in determining the amount of block grant cash
assistance to be provided to a family.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment.
48. Prohibitions; Requirements--Nondiscrimination
Present law
No explicit provision in current AFDC/JOBS law.
House bill
No provision.
Senate amendment
States that have any program or activity that receives
block grant funds for Temporary Assistance for Needy Families
shall be subject to enforcement authorized under the Age
Discrimination Act of 1975, the Rehabilitation Act of 1973
(sec. 504), and the Civil Rights Act of 1964 (Title VI).
Conference agreement
The conference agreement follows the Senate amendment.
49. Prohibitions; Requirements--Denial of Benefits for Certain Drug-
Related Convictions
Present law
No explicit provision.
House bill
No provision.
Senate amendment
An individual convicted under Federal or State law of any
crime related to illegal possession, use, or distribution of a
drug is ineligible for any Federal means-tested benefit (for 5
years for a misdemeanor and for life for a felony). Family
members or dependents of the individual are exempted, and
individuals made ineligible would continue to be eligible for
emergency benefits, including emergency medical services.
Conference agreement
The conference agreement follows the Senate amendment,
with the modification that only TANF block grant benefits and
food stamps are denied and that the denial is only for a felony
offense.
50. Penalties--Use of Grant in Violation of This Part
Present law
If the Secretary finds that a State has failed to comply
with the State plan, she is to withhold all payments from the
State (or limit payments to categories not affected by
noncompliance).
House bill
Note.--Before imposing any of the penalties below, the
Secretary shall notify the State of the violation and allow the
State to enter into a corrective action plan (item 60). Also,
except for items 51 and 52, the Secretary may not impose a
penalty if she finds that the State has reasonable cause for
its failure to comply.
If an audit finds that a State has used Federal funds in
violation of the purposes of this title, the Secretary shall
reduce the following quarter's payment by the amount misused.
If the State cannot prove that the misuse was unintentional,
the State's following quarter payment will be reduced by an
additional five percent.
Senate amendment
Same. See also item 57, Failure to Comply with Provisions
of IV-A or State Plan.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
51. Penalties--Failure to Submit Required Report
Present law
There is no specific penalty for failure to submit a
report, although the general noncompliance penalty could apply.
House bill
If a State fails to submit a required quarterly report
within one month after the end of a fiscal quarter, the
Secretary shall reduce by 4 percent the block grant amount
otherwise payable to the State for the next fiscal year.
However, the penalty shall be rescinded if the State submits
the report before the end of the fiscal quarter succeeding the
one for which the report was due.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
52. Penalties--Failure to Satisfy Minimum Participation Rates
Present law
If a State fails to achieve the JOBS participation rate
specified in law, the Secretary is to reduce to 50 percent the
Federal matching rate for JOBS activities and for full-time
personnel costs, which now ranges from 60 percent to 78 percent
among States. (However, see item 54, ``Corrective Compliance,''
for penalty waiver authority.)
House bill
If a State fails to achieve its required work
participation rate for the fiscal year, the Secretary shall
reduce the following year's block grant by up to 5 percent,
with the percentage cut based on the ``degree of
noncompliance.'' The Secretary has the authority to reduce the
penalty if the State economy is in recession. In addition,
failure to meet required work participation requirements
results in States' being required to maintain 80 percent of
historic spending levels, instead of 75 percent.
Senate amendment
Imposes a graduated penalty on each consecutive failure
by a State to meet the work participation standard. The Senate
amendment also does not authorize the Secretary to reduce the
penalty for States with high unemployment.
Conference agreement
On penalty amounts, the conference agreement follows the
Senate amendment with the modification that there is a
graduated penalty of 5 percent the first year and 2 percent in
addition to the prior year's penalty in subsequent years (so
annual penalties in consecutive years would be 5 percent in the
first year, 7 percent in the second, 9 percent in the third,
and so on), with a maximum cumulative penalty of 21 percent.
The conference agreement follows the House bill in authorizing
the Secretary to reduce the penalty for needy States as defined
under the contingency fund eligibility criteria.
53. Failure to Participate in the Income and Eligibility Verification
System
Present law
States must have in effect an Income and Eligibility
Verification System covering AFDC, Medicaid, unemployment
compensation, the Food Stamp program, and adult cash aid in the
outlying areas. There is no specific penalty for failure to
comply.
House bill
If the State fails to participate in the Income and
Eligibility Verification System (IEVS) designed to reduce
welfare fraud, the Secretary shall reduce by up to 2 percent
the annual family assistance grant of the State.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
54. Failure to Comply With Paternity Establishment and Child Support
Enforcement Requirements
Present law
The penalty against a State for noncompliance with child
support enforcement rules--loss of AFDC matching funds--shall
be suspended if a State submits and implements a corrective
action plan.
House bill
If the Secretary determines that a State does not enforce
penalties requested by the Title IV-D child support enforcement
agency against recipients of cash aid who fail to cooperate in
establishing paternity or in establishing, modifying, or
enforcing a child support order under Title IV-D (and who do
not qualify for any good cause or other exception), the
Secretary shall reduce the cash assistance block grant by up to
five percent.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
55. Failure to Timely Repay a Federal Loan Fund for State Welfare
Programs
Present law
No provision.
House bill
If a State fails to pay any amount borrowed from the
Federal Loan Fund for State Welfare Programs within the
maturity period, plus any interest owed, the Secretary shall
reduce the State's family assistance block grant for the
immediately succeeding fiscal year quarter by the outstanding
loan amount, plus the interest owed on it. The Secretary may
not forgive these overdue debts.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
56. Failure of Any State to Maintain Certain Level of Historic Effort
Present law
No provision.
House bill
If in fiscal years 1997 through 2001 a State fails to
spend a sum equal to at least 75 percent of its ``historic
level'' (generally fiscal year 1994 expenditures for AFDC,
JOBS, Emergency Assistance, AFDC-related child care and ``at-
risk'' child care) of State spending on specified programs, the
Secretary shall reduce the following year's family assistance
grant (that is, in fiscal years 1998 through 2002) by the
difference between the 75 percent requirement and what the
State actually spent. However, States that fail to meet
required work participation rates must maintain 80 percent of
historic spending levels.
Qualified State expenditures that count toward the 75
percent (or 80 percent) spending requirement are all State-
funded expenditures under all State programs that provide any
of the following assistance to families eligible for family
assistance benefits (and those no longer eligible because of
the 5-year time limit or ineligible because of the Act's
treatment of noncitizens): cash and child care assistance;
educational activities designed to increase self-sufficiency,
job training and work (excluding any expenditure for public
education in the State other than expenditures for services or
assistance to a member of an eligible family that is not
generally available to other persons); administrative costs not
to exceed 15 percent of the total amount of qualified State
expenditures; and any other use of funds reasonably calculated
to accomplish purposes of the temporary family assistance.
Qualified expenditures exclude spending from funds transferred
from State or local programs except those that exceed the
amount expended in 1996 or those for which the State is
entitled to a Federal payment under former AFDC/JOBS law (as in
effect just before enactment).
The Secretary is to reduce the 75 percent (or 80 percent)
maintenance of effort spending requirement by up to eight
percentage points (i.e., to no lower than 67 percent or 72
percent) for States that achieve ``high performance'' scores,
based on a threshold to be set by the Secretary, for achieving
the goals of the program of Temporary Assistance for Needy
Families (TANF).
Senate amendment
Raises required State spending to 80 percent of the
``historic'' level for all States. (Does not distinguish
between States that meet or fail work participation rates in
maintenance-of-effort rule.)
The Secretary is to reduce the 80 percent spending
requirement by up to 8 percentage points (to as low as 72
percent) for States with high performance scores. (This
provision was deleted because of the Byrd rule.)
Conference agreement
The conference agreement follows the House bill, except
that the provision allowing reduction of required State
spending for high performance States is dropped. Conferees note
that State spending on programs that promote self-sufficiency
and prevent welfare dependence including, but not limited to,
substance abuse treatment, teen parenting and pregnancy
prevention shall count towards a State's maintenance of effort.
The fact that such funds are spent through or by State or local
education agencies should not prevent their being counted
towards the State maintenance of effort.
57. Substantial Noncompliance of State Child Support Enforcement
Program Requirements
Present law
If a State child support program is found not to be in
substantial compliance with Federal requirements, the Secretary
is to reduce AFDC matching funds: by 1-2 percent for first
finding of noncompliance, by 2-3 percent for second consecutive
finding, and by 3-5 percent for third or subsequent finding.
(See ``corrective compliance'' item 54.) Note: State child
support plans must undertake to establish paternity of children
born out-of-wedlock for whom AFDC is sought, and AFDC law
requires the parent to cooperate in establishing paternity.
Failure to cooperate makes the parent ineligible for AFDC.
House bill
If a State child support enforcement program is found by
review not to have complied with Title IV-D requirements, and
the Secretary determines that the program is not in compliance
at the time the finding is made, then the Secretary will reduce
the State's quarterly block grant payment for each quarter
during which the State is not in compliance. For the first
finding of noncompliance, the reduction will be between one and
two percent; for the second consecutive finding, between two
and three percent; for the third or subsequent findings,
between three and five percent. Non-compliance of a technical
nature is to be disregarded.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
58. Failure of State Receiving Amounts from Contingency Fund to
Maintain 100 Percent of Historic Effort
Present law
Not relevant.
House bill
If the Secretary determines that a State failed to
maintain 100 percent of historic State spending, as required
during a year in which contingency funds are paid to the State,
the following year's block grant payment to the State is to be
reduced by the amount of contingency funds paid.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
59. Required Replacement of Grant Fund Reductions Caused by Penalties
Present law
Not applicable.
House bill
If a State's block grant is reduced as a result of one of
the above penalties, the State must, during the following
fiscal year, replace the penalized funds using State funds.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
60. Penalties--Failure to Provide Medical Assistance to Families
Becoming Ineligible for Assistance under this Part Due to Increased
Earnings from Employment or Collection of Child Support
Present law
If the Secretary finds that a State fails to comply
substantially with any required provision of its Medicaid plan
(including transitional benefits for former AFDC families), she
shall withhold all payments to the State (or limit payments to
categories not affected by the noncompliance).
House bill
If the Secretary determines that a State does not comply
with the requirement to provide extended medical assistance for
certain families that become ineligible for block grant
assistance due to increased earnings or the collection of child
support, the Secretary must reduce the State's block grant by
up to 5 percent (depending on the severity of the violation).
Senate amendment
No specific provision about failure to comply with
requirement for extended medical assistance, but see item
below.
Conference agreement
The conference agreement follows the Senate amendment.
61. Penalties--Failure to Comply with Provisions of IV-A or State Plan
Present law
If the Secretary finds that a State has failed to comply
with the State plan, she is to withhold all payments from the
State (or limit payments to categories not affected by
noncompliance). (Item 46 above.)
House bill
No general penalty for failure to comply with State plan.
Senate amendment
If the Secretary, after notice and hearing, finds that a
State has not substantially complied with any provision of IV-A
or the State plan during a fiscal year, she shall (if a
preceding penalty paragraph does not apply) reduce the grant
for the next year by up to 5 percent and shall continue an
annual reduction of up to 5 percent until she determines that
the State no longer is out of compliance.
Conference agreement
The conference agreement follows the House bill, with the
modification that a new penalty provision is added for States
that fail to meet the requirement to not sanction, for failure
to perform work, single parents who prove they cannot find
child care for a child under age 6.
62. Penalties--Failure to Comply with 5-Year Limit on Assistance
Present law
Not relevant.
House bill
No specific provision.
Senate amendment
If the Secretary determines that a State during a fiscal
year has not complied with the 5-year time limit (for TANF-
funded aid), she is to reduce the basic TANF grant for the next
year by 5 percent.
Conference agreement
The conference agreement follows the Senate amendment.
63. Penalties--Reasonable Cause Exception
Present law
Not applicable. (States are eligible for unlimited funds,
but must match every dollar at a prescribed rate.)
House bill
The Secretary may (except for failure to timely repay the
loan fund, failure to meet the maintenance-of-effort
requirement and requirement to replace grant reductions caused
by penalties) withhold penalties against a State if she
determines that the State had reasonable cause for failing to
comply with the requirement.
Senate amendment
The Secretary may (except for failure to timely repay the
loan fund or failure to meet the maintenance-of-effort
requirement) withhold penalties against a State if she
determines that the State had reasonable cause for the failure.
Conference agreement
The conference agreement follows the House bill.
64. Penalties--Corrective Compliance Plan
Present law
The penalty against a State for substantial noncompliance
with child support rules is loss of AFDC matching funds. That
penalty shall be suspended if a State submits and implements a
corrective action plan. Also, if a State fails to achieve the
JOBS participation rate specified in law, the Secretary may
waive, in whole or part, the reduction in matching funds,
provided the State has submitted a proposal likely to achieve
the applicable participation rate for the current year.
House bill
Before assessing a penalty against a State under any
program established or modified by this Act, the Secretary must
notify the State of the violation and allow the State an
opportunity to enter into a corrective compliance plan within
60 days of the notification. The Federal government will have
60 days within which to accept or reject the plan; if it
accepts the plan, and if the State corrects the violation, no
penalty will be assessed. A plan submitted by a State is deemed
to be accepted if the Secretary does not accept or reject the
plan during the 60-day period after the plan is submitted.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
65. Penalties--Limitation on Amount of Penalty
Present law
If the Secretary finds that a State has failed to comply
with the State AFDC plan, he is to withhold all AFDC payments
from the State (or limit payments to categories not affected by
the noncompliance.)
House bill
In imposing the penalties described above, a State's
quarterly family assistance grant cannot be reduced by more
than a total of 25 percent; if necessary, penalties in excess
of 25 percent will be carried forward to the immediately
following fiscal year.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
66. Appeal of Adverse Decision
Present law
Current law (sec. 1116 of the Social Security Act)
entitles a State to a reconsideration, which HHS must grant
upon request, of any disallowed reimbursement claim for an item
or class of items. The section also provides for administrative
and judicial review, upon petition of a State, of HHS decisions
about approval of State plans. At the option of a State, any
plan amendment may be treated as the submission of a new plan.
House bill
The Secretary is required to notify the Governor of a
State within five days of any adverse decision or action under
Title IV-A, including any decision about the State's plan or
imposition of a penalty. This section provides for
administrative review by a Departmental Appeals Board within
HHS, requires a Board decision within 60 days after an appeal
is filed, and provides for judicial review (by a United States
district court) within 90 days after a final decision by the
Board. The proposal also repeals the reference to Title IV-A in
section 1116.
Senate agreement
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
67. Data Collection and Reporting--General Reporting Requirement
Present law
States are required to report the average monthly number
of families in each JOBS activity, their types, amounts spent
per family, length of JOBS participation and the number of
families aided with AFDC/JOBS child care services, the kinds of
child care services provided, and sliding fee schedules. States
that disallow AFDC for minor mothers in their own living
quarters are required to report the number living in their
parent's home or in another supervised arrangement. States also
must report data (including numbers aided, types of families,
how long aided, payments made) for families who receive
transitional Medicaid benefits.
House bill
The National Integrated Quality Control System draws
monthly samples of AFDC cases and reports extensive background
information about each case in the sample. JOBS regulations
require States to submit a sample of monthly unaggregated case
record data.
Senate amendment
Each eligible State must collect on a monthly basis, and
report to the Secretary on a quarterly basis, the following
information on individual families receiving assistance:
1. the county of residence of the family;
2. whether a child receiving assistance or an adult
in the family is disabled;
3. the ages of family members;
4. the number of individuals in the family, and the
relationship of each member to the youngest child;
5. the employment status and earnings of the
employed adult;
6. the marital status of adults, including whether
they are never married, widowed, or divorced;
7. the race and educational status of each adult;
8. the race and educational status of each child;
9. whether the family received subsidized housing,
Medicaid, food stamps, or subsidized child care, and if
the latter two, the amount received;
10. the number of months the family has received
each type of assistance under the program;
11. if the adults participated in, and the number
of hours per week of participation in, the following
activities: education; subsidized private sector
employment; unsubsidized employment; public sector
employment, work experience, or community service; job
search; job skills training or on-the-job training; and
vocational education;
12. information necessary to calculate the State
work participation rates;
13. the type and amount of assistance received
under the program, including the amount of and reason
for any reduction of assistance (including sanctions);
14. any amount of unearned income received by any
family member; and
15. the citizenship of family members.
In addition to data on individual cases, States must
report, on a sample of cases closed during the quarter, whether
families left welfare because of employment, marriage, the
five-year time limit on benefits, sanction, or State policy.
States may use scientifically acceptable sampling methods
approved by the Secretary to estimate the required data
elements. The Secretary shall provide States with case sampling
plans and data collection procedures deemed necessary for
statistically valid estimates.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
68. Other State Reporting Requirements
Present law
Regulations require each State to submit quarterly
estimates of the total amount (and the Federal share) of
expenditures for AFDC benefits and administration. Required
quarterly reports include estimates of the Federal share of
child support collections made by the State.
House bill
The above quarterly report submitted by the State must
also include:
1. a statement of the percentage of the funds paid
to the State that is used to cover administrative costs
or overhead;
2. a statement of the total amount expended by the
State during the quarter on programs for needy
families;
3. the number of noncustodial parents in the State
who participated in work activities as defined in the
proposal during the quarter; and
4. the total amount spent by the State for
providing transitional services to a family that no
longer receives assistance because of employment, along
with a description of those services.
The Secretary shall prescribe regulations necessary to
define the data elements.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
69. Data Collection and Reporting--Annual Reports to the Congress by
the Secretary
Present law
The law requires the HHS Secretary to report promptly to
Congress the results of State reevaluations of AFDC need
standards and payment standards required at least every 3
years. The Secretary is to annually compile and submit to
Congress annual State reports on at-risk child care. The Family
Support Act requires the Secretary to submit recommendations
regarding JOBS performance standards by a deadline that was
extended.
House bill
Not later than 6 months after the end of fiscal year
1997, and each fiscal year thereafter, the Secretary shall send
Congress a report describing:
1. whether States are meeting minimum participation
rates and whether they are meeting objectives of
increasing employment and earnings of needy families,
increasing child support collections, and decreasing
out-of-wedlock pregnancies and child poverty;
2. demographic and financial characteristics of
applicant families, recipient families, and those no
longer eligible for temporary family assistance;
3. characteristics of each State program funded
under this part; and
4. trends in employment and earnings of needy
families with minor children.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
70. Direct Funding and Administration by Indian Tribes--Grants for
Indian Tribes
Present law
No provision for AFDC administration by Indian tribes.
Indian and Alaska families with children receive AFDC benefits
on the same terms as other families in their States, from State
or local AFDC agencies.
More than 80 tribes and native organizations in 24 States
are JOBS grantees, having applied to conduct JOBS within 6
months of enactment of the law establishing it. Their JOBS
allocation of funds is deducted from that of their State.
House bill
For each fiscal year 1997 through 2000, the Secretary
shall pay tribal family assistance grants to eligible Indian
tribes (and shall reduce the family assistance grant for the
State(s) in which the tribe's service area lies accordingly).
The tribal family assistance grant is equal to the total amount
of Federal payments to the State for fiscal year 1994 in AFDC
benefits, AFDC Administration, Emergency Assistance, and JOBS
funds for Indian families residing in the tribal service area.
The Secretary shall pay tribes that participated in the JOBS
program in fiscal year 1995 a grant equal to their fiscal year
1994 JOBS funding ($7.6 million). This sum is appropriated for
each of six fiscal years, 1996 through 2001.
Senate amendment
Same as the House bill, except for adding a fifth year,
2001, for tribal family assistance grants.
Conference agreement
The conference agreement follows the Senate amendment.
71. Direct Funding and Administration by Indian Tribes--Three-year
Tribal Family Assistance Plan
Present law
Not applicable.
House bill
Indian tribes must submit a tribal family assistance plan
to be eligible to receive a tribal family assistance grant. The
plan must outline the tribe's approach to providing welfare
services during the 3-year period, specify how services will be
provided, identify populations and areas served, provide that
families will not receive duplicate assistance from a State or
other tribal assistance plan, identify employment opportunities
in the service area, and apply fiscal accountability provisions
of the Indian Self-Determination and Education Assistance Act
relating to the submission of a single-agency audit report
required under current law.
The Secretary must approve tribal family assistance plans
that meet the above requirements. For each tribe receiving a
family assistance grant and with the participation of the
tribe, the Secretary shall establish minimum work requirements,
time limits, and penalties that are consistent with provisions
of this Act and the economic conditions and resources of the
tribe. Tribes will be subject to the same penalties as States
for misusing funds, failing to pay back Federal loan funds, and
failing to meet work participation rates. Tribes will also be
required to abide by the same data collection and reporting
requirements as States.
Unless excepted through a waiver, tribes in Alaska that
receive tribal family assistance grants must operate a program
comparable to the temporary family assistance program of the
State of Alaska.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
72. Research, Evaluations, and National Studies--Research
Present law
Section 1110 of the Social Security Act authorizes and
appropriates ``such sums as the Congress may determine'' for
making grants and contracts to (or jointly financed
arrangements with) States and public or private organizations
for cooperative research or demonstration projects, such as
those relating to the prevention and reduction of dependency.
House bill
The Secretary shall conduct research on the effects,
benefits, and costs of operating State programs of Temporary
Assistance for Needy Families, including time limits for
eligibility. The research shall include studies on the effects
of different programs and the impacts of the programs on
welfare dependency, illegitimacy, teen pregnancy, employment
rates, child well-being, and other appropriate issues.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
73. Research, Evaluations, and National Studies--Development and
Evaluation of Innovative Approaches to Reducing Welfare Dependency and
Increasing Child Well-Being
Present law
Section 1115 of the Social Security Act authorizes waiver
of specified provisions of AFDC law for State experimental,
pilot or demonstration projects to promote objectives of the
law, including self-support of parents and stronger family
life.
House bill
The Secretary may assist States in developing, and shall
evaluate, innovative approaches for reducing welfare dependency
and increasing the well-being of minor children, using random
assignments in these evaluations to the maximum extent
feasible.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
74. Research, Evaluations, and National Studies--Dissemination of
Information
Present law
No provision.
House bill
The Secretary shall develop innovative methods of
disseminating information on research, evaluations, and
studies, including ways to facilitate sharing of information
via computers and other technologies.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
75. Research, Evaluations, and National Studies--Annual Rankings of
States and Review of Most and Least Successful Work Programs
Present law
No provision.
House bill
The Secretary shall rank annually States receiving family
assistance grants in the order of their success in moving
families off welfare and into work, reducing the caseload, and,
when a practicable method of calculation becomes available,
diverting persons from applying to the program. The Secretary
shall review annually the three most and three least successful
programs under these criteria.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
76. Research, Evaluations, and National Studies--Annual Rankings of
States and Review of Issues Relating to Out-of-Wedlock Births
Present law
No provision.
House bill
The Secretary shall rank States annually on the
percentage of births to families on welfare that are out-of-
wedlock and on net changes in the percentage of out-of-wedlock
births to families on welfare. The Secretary must review the
programs of the five highest and five lowest ranking States
under these criteria.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
77. Research, Evaluations, and National Studies--State-Initiated
Evaluations
Present law
In a 1994 public notice, HHS stated that it is committed
to a broad range of evaluation strategies, including true
experimental, quasi-experimental, and qualitative designs, for
demonstrations operating under waivers. Section 1115(d) of the
Social Security Act required the Secretary to enter into
agreements with up to eight applicant States to conduct
demonstration projects testing more liberal treatment of
unemployed 2-parent families. The law stipulated that the
States must evaluate costs and work effort results by use of
experimental and control groups.
House bill
A State is eligible to receive funding to evaluate its
family assistance program if it submits an evaluation design
determined by the Secretary to be rigorous and likely to yield
credible and useful information. The State must pay 10 percent
of the study's cost, unless the Secretary waives this rule.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
78. research, evaluations, and national studies--report on
circumstances of certain children and families
Present law
No provision.
House bill
Beginning 3 years after enactment, the Secretary shall
submit an annual report to 4 congressional committees (Ways and
Means, Economic and Educational Opportunities, Finance, and
Labor and Human Resources) about children whose families
reached the cash assistance time limit of TANF, families that
include a child ineligible because of the family cap, children
born to teenaged parents, and persons who became parents as
teenagers after enactment. For each of these four groups,
detailed information is required, including percentages that
dropped out of school, are employed, have been convicted of a
crime or judged delinquent, continue to participate in TANF,
have health insurance (and whether from private entity or
government), and average family incomes.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
79. research, evaluations, and national studies--funding of studies and
demonstrations
Present law
See ``Research'' above. For Section 1115(a) ``waiver''
projects (``Innovative Approaches'' above) Federal cost
neutrality over the life of a demonstration project is
required.
Note: The annual budgets of HHS request funds for policy
research. The fiscal year 1997 budget seeks $9 million and
lists these priority issues: issues related to welfare reform,
health care, family support and independence, poverty, at-risk
children and youth, aging and disability, science policy, and
improved access to health care and support services.
House bill
For research, development and evaluation of innovative
approaches, State-initiated evaluation studies of the family
assistance program, and for costs of operating and evaluating
demonstration projects begun under the AFDC waiver process,
this section authorizes to be appropriated, and appropriates, a
total of $15 million annually for 6 fiscal years, 1996 through
2001. Half of this sum is allocated to the purposes described
above in ``Research'' and ``Innovative Approaches'' and half to
the other purposes.
The Secretary may implement and evaluate demonstrations
of innovative and promising strategies that provide one-time
capital funds to establish, expand, or replicate programs, test
performance-based funding, and test strategies in multiple
States and types of communities.
Senate amendment
Same, except provides funding only in 4 fiscal years,
1998 through 2001.
Conference agreement
The conference agreement follows the House bill, with the
modification to appropriate for the years 1996 through 2002.
80. child poverty rates
Present law
No provision.
House bill
No provision.
Senate amendment
Not later than 90 days after enactment, the governor of a
State shall submit to the Secretary a statement of the child
poverty rate in the State. Annually thereafter, the governor
shall report the child poverty rate to the Secretary. If the
rate increases by 5 percent or more as a result of changes made
by the Act, the State shall prepare a corrective action plan to
reduce the incidence of child poverty.
Conference agreement
The conference agreement follows the Senate amendment on
the submission of reports on child poverty rates and the
corrective action plans. The conference agreement follows the
House bill on provisions in the Senate amendment that provide
the Secretary of HHS with the authority to alter State plans.
81. study by the census bureau
Present law
No provision.
House bill
The Census Bureau must expand the Survey of Income and
Program Participation (SIPP) to evaluate the impact of welfare
reforms made by this title on a random national sample of
recipients and, as appropriate, other low-income families. The
study should focus on the impact of welfare reform on children
and families, and should 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.
$10 million per year for 7 years (1996-2002) is appropriated
for this study.
Senate amendment
Same provision, except that the $10 million annual
appropriation is for only 5 years (fiscal years 1998-2002).
Conference agreement
The conference agreement follows the House bill.
82. waivers
Present law
Section 1115 of the Social Security Act authorizes the
HHS Secretary to waive specified requirements of State AFDC
plans in order to enable a State to carry out any experimental,
pilot, or demonstration project that the Secretary judges
likely to assist in promoting the program's objectives. Some 38
States have received waivers from the Clinton Administration
for welfare reforms, as of late May 1996.
House bill
This section provides that terms of AFDC waivers in
effect, or approved, as of September 30, 1995, will continue
until their expiration, except that beginning with fiscal year
1996 a State operating under a waiver shall receive the block
grant described under Section 403 in lieu of any other payment
provided for in the waiver. The section also allows for
continuation, under certain conditions of waivers on or
approved before July 1, 1997, on the basis of applications made
before enactment of the new program.
States have the option to terminate waivers before their
expiration, but projects that are ended prematurely must be
summarized in written reports. A State that submits a request
to end a waiver within 90 days after the adjournment of the
first regular session of the State legislature that begins
after the date of enactment will be held harmless for accrued
cost neutrality liabilities incurred under the waiver.
The Secretary is directed to encourage any State now
operating a waiver to continue the project and to evaluate its
result or effect. A State may elect to continue one or more
individual waivers.
Senate amendment
Same.
Conference agreement
The conference agreement follows the Senate amendment,
with the modification that such waivers may only apply to the
geographical areas of the State and to the specific program
features for which the waiver was granted. All geographical
areas of the State and program features of the State program
not specifically covered by the waiver must conform to this
part. Conferees urge the Secretary to approve the Wisconsin
comprehensive welfare reform waiver request (published in the
Federal Register on June 10, 1996) by September 1, 1996.
83. Administration (and Reduction in Federal Workforce)
Present law
An Assistant Secretary for Family Support, appointed by
the President by and with consent of the Senate, is to
administer AFDC, child support enforcement, and the Jobs
Opportunities and Basic Skills (JOBS) program.
House bill
The provision for an Assistant Secretary for Family
Support now found in section 417 of Part A of the Social
Security Act is retained but modified to remove the reference
to the JOBS program, which is repealed.
No requirements to reduce workforce at HHS.
Senate amendment
The Temporary Assistance for Needy Families (TANF) block
grant program and the child support enforcement program shall
be administered by an Assistant Secretary for Family Support.
The HHS Secretary must reduce the number of positions within
the Department by 245 equivalent full-time equivalent (FTE)
positions related to the conversion of AFDC, Emergency
Assistance, and Jobs into TANF and by 60 FTE managerial
positions. In general, it requires the Secretary to reduce by
75 percent the number of FTE positions that relate to any
direct spending program, or any program funded through
discretionary spending that is converted into a block grant
program under the bill and to reduce FTE department management
positions similarly (on the basis of the portion of the
Department's total appropriation represented by programs
converted to block grants).
Conference agreement
The conference agreement follows the Senate amendment.
84. Limitation on Federal Authority
Present law
No provision.
House bill
No officer or employee of the Federal Government may
regulate the conduct of States under this part or enforce any
provision of this part, except to the extent expressly provided
in this part.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
85. Definitions--Adult
Present law
No provision.
House bill
An individual who is not a minor child.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
86. Definitions--Minor Child
Present law
No provision. A dependent child is defined as a needy
child who is under age 18 (19, at State option, if a full time
student in a secondary school or equivalent level of vocational
and technical training and expected to complete school before
age 19).
House bill
An individual who has not attained 18 years of age or 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).
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
87. Definitions--Fiscal Year
Present Law
No provision.
House Bill
Any 12-month period ending on September 30 of a calendar
year.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
88. Definitions--Indian, Indian Tribe, and Tribal Organization
Present law
For JOBS purposes, an Indian tribe is defined as any
tribe, band, Nation, or other organized group of Indians that
is recognized as eligible for special programs and services of
the U.S. because of their status as Indians. An Alaska native
organization is any organized group of Alaska natives eligible
to operate a Federal program under P.L. 93-638 or that group's
designee.
House bill
With the exception of specified Indian tribes in Alaska,
these terms have the meaning given in the Indian Self-
Determination and Education Assistance Act.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
89. Definitions--State
Present law
For purposes of AFDC, the term ``State'' means the 50
States, the District of Columbia, the Commonwealth of Puerto
Rico, the U.S. Virgin Islands, Guam, and American Samoa. The
last jurisdiction has not implemented AFDC.
House bill
Except as otherwise specifically provided (e.g.,
regarding the provision of population growth funds and
contingency funds), 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.
Senate amendment
Same, except adds to this definition an option for a
State to contract to provide services: The term ``State''
includes administration and provision of services under the
family assistance program and under the programs of child
welfare, foster care and adoption assistance, family
preservation, and independent living, through contracts with
charitable, religious or private organizations, and provision
of aid by means of certificates, vouchers, or other forms of
disbursement redeemable by these organizations. See item 92.
Conference agreement
The conference agreement follows the House bill.
90. Additional Grants to Puerto Rico, the Virgin Islands, Guam, and
American Samoa; Limitation on Total Payments
Present law
Under current law, the territories are eligible for 75
percent matching grants for their expenditures on cash welfare
for adult assistance (i.e., assistance for needy persons who
are aged, blind, or disabled), Aid to Families with Dependent
Children (AFDC), Emergency Assistance (EA), Foster Care and
Adoption Assistance, the Job Opportunities and Basic Skills
(JOBS) program, and the Family Preservation program (Title IV-
B, subpart 2). These matching grants are limited by caps on
Federal payments. The territories also receive grants under the
child welfare services (Title IV-B, subpart 1) program.
[Note.--Although eligible, territories do not claim
foster care and adoption assistance funds.]
The law places a ceiling on total payments for AFDC, aid
to needy aged, blind or disabled adults, and foster care and
adoption assistance to Puerto Rico--$82 million, the Virgin
Islands--$2.8 million, Guam--$3.8 million, and American Samoa
(AFDC, foster care, and adoption assistance)--$1 million.
House bill
The proposal retains but increases aggregate welfare
ceilings in each of the territories and combines the individual
programs into a single block grant. The new ceilings would
apply to aggregate spending for cash aid for needy families
(TANF), cash aid to needy aged, blind or disabled adults, and
child protection (child welfare and family preservation
services). The proposal authorizes territories to transfer
funds among these programs. Maximum potential fiscal year
payments (including both the capped mandatory payments listed
below and the authorization of discretionary grants) are as
follows: Puerto Rico--$113.5 million; Guam--$5.2 million; U.S.
Virgin Islands--$4.0 million; and American Samoa--$1.3 million.
To receive mandatory ceiling amounts (capped
entitlements), territories must spend from their own funds in a
fiscal year as much as they did in fiscal year 1995 for cash
aid to needy families, and cash aid to needy aged, blind, or
disabled adults. Federal matching funds, at a 75 percent rate,
would reimburse territories for expenditures above their fiscal
year 1995 base level, but below the Federal cap. Mandatory
ceiling amounts: Puerto Rico--$105.5 million; Guam, $4.9
million; Virgin Islands, $3.7 million; and American Samoa, $1.1
million.
Senate amendment
The proposal retains but increases aggregate welfare
ceilings in each of the territories and, in effect, combines
all but IV-B services (child welfare services and family
preservation) into a single block grant. The new ceilings would
apply to aggregate spending for cash aid for needy families
(TANF), cash aid to needy aged, blind, or disabled adults, and
foster care and adoption assistance. The proposal authorizes
territories to transfer funds among these programs.
To receive the new ceiling amounts (capped entitlements),
territories must spend from their own funds in a fiscal year
for cash aid to needy families and cash aid to needy aged,
blind, or disabled adults. Federal matching funds, at a 75
percent rate, would reimburse them for expenditures above their
fiscal year 1995 base level, but below the Federal cap.
Mandatory ceiling amounts--Puerto Rico--$102 million; Guam,
$4.7 million; Virgin Islands, $3.6 million; and American Samoa,
$1 million. (Current law and funding arrangements are retained
for IV-B programs.)
Conference agreement
The conference agreement generally follows the Senate
amendment. The conference agreement adds a provision specifying
that States may use Title XX funds to provide vouchers to
families losing TANF block grant assistance due to a State-
imposed family cap.
91. Repeal of Provisions Requiring Disapproval of Medicaid Plans or
Denial of Same Medicaid Payments to States that Reduce Welfare Payment
Levels
Present law
If a State reduces AFDC ``payment levels'' below those of
May 1, 1988, the Secretary shall not approve the State's
Medicaid plan.
If a State reduces AFDC payment levels below those of
July 1, 1987, Medicaid matching funds shall be disallowed for
required services to pregnant women and children not enrolled
in AFDC but eligible for Medicaid on grounds of low income.
House bill
The House proposal repeals provisions that impose
Medicaid sanctions upon States that reduce AFDC payment levels.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
92. Services Provided by Charitable, Religious, and Private
Organizations
Present law
The Child Care and Development Block Grant (CCDBG) Act
prohibits use of any financial assistance provided through any
grant or contract for any sectarian purpose or activity. In
general, the CCDBG requires religious nondiscrimination, but it
does allow a sectarian organization to require employees to
adhere to its religious tenets and teachings.
House bill
The proposal authorizes States to administer and provide
family assistance services (and services under SSI, the child
protection block grant program, foster care, adoption
assistance, and independent living programs) through contracts
with charitable, religious, or private organizations. Under
this provision, religious organizations would be eligible, on
the same basis as any other private organization, to provide
assistance as contractors or to accept certificates and
vouchers so long as their programs are implemented consistent
with the Establishment Clause of the Constitution. States may
pay recipients by means of certificates, vouchers, or other
forms of disbursement that are redeemable with such private
organizations.
The proposal provides that, except as otherwise allowed
by law, a religious organization administering the program may
not discriminate against beneficiaries on the basis of
religious belief or refusal to participate in a religious
practice. States must provide an alternative provider for a
beneficiary who objects to the religious character of the
designated organization.
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.
Senate amendment
Same provision, except that administration by charitable,
religious, and private organizations is authorized only for
TANF and SSI.
Conference agreement
The conference agreement follows the House bill.
93. Census Data on Grandparents as Primary Caregivers for Their
Grandchildren
Present law
No provision.
House bill
The Secretary of Commerce shall expand the Census
Bureau's question (for the decennial census and the mid-decade
census) concerning households with both grandparents and their
grandchildren so as to distinguish between households in which
a grandparent temporarily provides a home and those where the
grandparent serves as primary caregiver.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
94. Report on Data Processing
Present law
No provision. (State child support plans may provide for
establishment of a statewide automated data processing and
information retrieval system.)
House bill
The Secretary must report to Congress within six months
on the status of automatic data processing systems in the
States and on what would be required to produce a system
capable of tracking participants in public programs over time
and checking case records across States to determine whether
some individuals are participating in public programs in more
than one State. The report should include a plan for building
on the current automatic data processing system to produce a
system capable of performing these functions as well as an
estimate of the time required to put the system in place and
the cost of the system.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
95. Study on Alternative Outcomes Measures
Present law
The Family Support Act required the Secretary to submit
to Congress recommendations for JOBS performance standards
regarding ``specific measures of outcomes.'' It said the
standards should not be measured solely by levels of activity
or participation. (The report, due Oct. 1, 1993, was submitted
1 year late.)
House bill
The Secretary must, in cooperation with the States, study
and analyze measures of program outcomes (as an alternative to
minimum participation rates) for evaluating the success of
State block grant programs in helping recipients leave welfare.
The study must include a determination of whether outcomes
measures should be applied on a State or national basis and a
preliminary assessment of the job placement performance bonus
established in the Act. The Secretary must report findings to
the Committee on Finance and the Committee on Ways and Means
not later than September 30, 1998.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
96. Welfare Formula Fairness Commission
Present law
No provision. AFDC funds are not distributed by formula.
States are entitled to reimbursement, at matching rates
inversely related to their per capita income squared, for all
AFDC benefits and AFDC-related child care spending (but not
``at-risk'' child care). Federal funds received by a State are
a function of its AFDC benefit levels, caseloads, and matching
rate.
House bill
No provision.
Senate amendment
Establishes a welfare formula fairness commission to make
recommendations on funding formulas, bonus payments, and work
requirements of the new TANF program. Commission is to have 15
members, 3 each appointed by the President, Senate Majority
Leader, Senate Minority Leader, House Speaker, and House
Minority Leader. It is to report to Congress by Sept. 1, 1998,
either making recommendations for change or giving notice that
none is needed.
Conference agreement
The conference agreement follows the House bill.
97. Conforming Amendments to the Social Security Act
Present law
No provision.
House bill
This section makes a series of technical amendments,
including the repeal of the JOBS program, that conform
provisions of the proposal with various titles of the Social
Security Act.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
98. Conforming Amendments to the Food Stamp Act of 1977 and Related
Provisions
Present law
No provision.
House bill
This section makes a series of technical amendments that
conform provisions of the proposal with various titles of the
Food Stamp Act and other related provisions.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
99. Conforming Amendments to Other Laws
Present law
No provision.
House bill
This section makes a series of amendments that conform
provisions of the proposal to the Unemployment Compensation
Amendments of 1976, the Omnibus Budget Reconciliation Act of
1987, the Housing and Urban-Rural Recovery Act of 1983, the Tax
Equity and Fiscal Responsibility Act of 1982, the Social
Security Amendments of 1967, the Stewart B. McKinney Homeless
Assistance Amendments Act of 1988, the Higher Education Act of
1965, the Carl D. Perkins Vocational and Applied Technology
Education Act, the Elementary and Secondary Education Act of
1965, Public Law 99-88, the Internal Revenue Code of 1986, the
Wagner-Peyser Act, the Job Training Partnership Act, the Low-
Income Home Energy Assistance Act of 1981, the Family Support
Act of 1988, the Balanced Budget and Emergency Deficit Control
Act of 1985, the Immigration and Nationality Act, the Head
Start Act, and the School-to-Work Opportunities Act of 1994.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
100. Development of Prototype of Counterfeit-Resistant Social Security
Card Required
Present law
No provision.
House bill
The Commissioner of Social Security is required to
develop a prototype of a counterfeit-resistant Social Security
card. The Commissioner must report to Congress on the cost of
issuing a tamper-proof card for all persons over a three, five,
and 10-year period.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
101. Community Steering Committees Demonstration Projects
Present law
No provision.
House bill
No provision.
Senate amendment
Requires the Secretary to enter into agreements with up
to 5 applicant States to conduct demonstration projects
designed to help TANF parents move into the nonsubsidized
workforce. Duties of the committee: identify and create
unsubsidized jobs for TANF recipients; propose and implement
solutions to work barriers; assess needs of the children and
provide services to ensure that the children enter school ready
to learn and stay in school. A primary responsibility of the
committee shall be to help assure that parents who have
obtained work retain their jobs. Activities may include
counseling, emergency day care, sick day care, transportation,
provision of clothing, housing assistance, or any other needed
help. Not later than Oct. 1, 2002, the Secretary shall report
to Congress on the project results.
Conference agreement
The conference agreement follows the House bill.
102. Disclosure of Receipt of Federal Funds
Present law
No provision.
House bill
Under certain circumstances specified public funds
received by nonprofit, tax-exempt 501(c) organizations, must be
publicly disclosed. When a 501(c) organization that accepts
Federal funds under the Personal Responsibility and Work
Opportunity Act (other than those provided under Titles IV,
XVI, and XX of the Social Security Act) makes any communication
intended to promote public support or opposition to any
governmental policy (Federal, State or local) through any
broadcasting station, newspaper, magazine, outdoor advertising
facility, direct mailing, or any other type of general public
advertising, the communication must state: ``This was prepared
and paid for by an organization that accepts taxpayer
dollars.''
Senate amendment
Applies the fund disclosure rule to all Federal funds
under the Personal Responsibility and Work Opportunity Act.
(This provision was deleted because of the Byrd rule.)
Conference agreement
The conference agreement follows the Senate amendment (no
provision as a result of the Byrd rule).
103. Modifications to the Job Opportunities for Certain Low-Income
Individuals Programs
Present law
The Family Support Act of 1988 (Sec. 505) directed the
Secretary to enter into agreement with between 5 and 10
nonprofit organizations to conduct demonstrations to create job
opportunities for AFDC recipients and other low-income persons.
For these projects, $6.5 million was authorized to be
appropriated for each fiscal year, 1990-1992.
House bill
The word ``demonstration'' is struck from the description
of these projects; the projects are converted to grant status.
The provision requires the Secretary to enter into agreements
with nonprofit organizations to conduct projects that create
job opportunities for recipients of family assistance and other
persons with income below the poverty guideline. $25 million
annually is authorized for these projects.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
104. Conforming Amendments to Medicaid
Present law
House bill
Provides for continued application of AFDC standards and
methodologies for certain families, entitling them to Medicaid.
Allows cost-of-living adjustments in income standards above
level of July 16, 1996. See ``Prohibitions; Requirements--
Medicaid'' above.
Senate amendment
Same except that States may use less restrictive income
standards and methodologies than under current law.
Conference agreement
The conference agreement follows the House bill.
105. EFFECTIVE DATE; TRANSITION RULE
Present law
No provision.
House bill
Except as otherwise provided, this title and the
amendments made by it take effect on July 1, 1997. Penalties
(with the major exception of penalties for misuse of Federal
family assistance grant funds) will not take effect until July
1, 1997, or six months after the State plan is received by the
Secretary, whichever is later.
Within 90 days of enactment, the Secretary of HHS, the
Commissioner of Social Security and other heads of appropriate
agencies shall submit to appropriate congressional committees.
Necessary technical and conforming amendments.
States may opt to begin their block grant program before
July 1, 1997, in which case the State is entitled to receive no
more than the State family assistance grant for the entire
fiscal year; block grant payments will be made pro rata based
on the number of days remaining in the fiscal year after the
Secretary first received the State plan. The submission of a
State plan is deemed to constitute the State's acceptance of
the family assistance grant (including pro rata reductions for
a partial fiscal year) and the termination of the individual
entitlement to benefits under the AFDC program. Effective
October 1, 1996, no individual or family shall be entitled to
any benefits or services under any State plan under part A or F
of Title IV of the Social Security Act (as in effect on
September 30, 1995).
The amendments made do not apply with respect to powers,
duties, penalties and other considerations applicable to aid,
assistance or services provided before the effective date, or
with respect to administrative actions and proceedings that
commenced before the effective date. Federal and State
officials may use scientifically acceptable statistical
sampling techniques in closing out accounts. Each State shall
complete the filing of all claims within 2 years after the date
of enactment. The person serving as Assistant Secretary for
Family Support within HHS on the day before the effective date
of this title will continue to serve in that position until a
successor is named, performing functions provided under current
law and having powers and duties provided in Section 103 of
this bill.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Title II: Supplemental Security Income
1. REFERENCE TO THE SOCIAL SECURITY ACT
Present law
No provision.
House bill
Any reference in this title expressed in terms of an
amendment to or repeal of a section or other provision is made
to the Social Security Act.
Senate amendment
Identical to House bill.
Conference agreement
The conference agreement follows the House bill.
Subtitle A--Eligibility Restrictions
2. denial of ssi benefits to individuals found to have fraudulently
misrepresented residence in order to obtain benefits simultaneously in
2 or more states
Present law
Current law states that any person who knowingly and
willfully makes or causes to be made any false statements or
misrepresentations in applying for or continuing to receive
Supplemental Security Income (SSI) payments may be subject to a
civil monetary penalty or be fined or imprisoned pursuant to
title 18, U.S. Code.
House bill
Any person convicted in Federal court or State court of
having fraudulently misrepresented residence in order to obtain
benefits or services from two or more States under title IV,
title XV, title XIX, or the Food Stamp Act of 1977, or benefits
in 2 or more States from the SSI program, is ineligible for SSI
benefits for 10 years. In addition, an official of the court in
which the individual was convicted is required to notify the
Commissioner of such conviction.
Senate amendment
Identical to House Bill.
Conference agreement
The conference agreement follows the House bill.
3. denial of ssi benefits for fugitive felons and probation and parole
violators
Present law
Current law provides safeguards which restrict the use or
disclosure of information concerning SSI applicants or
recipients to purposes directly connected with the
administration of the SSI program or other federally-funded
programs.
House bill
No individual who is fleeing to avoid prosecution,
custody or confinement after conviction for a crime (or an
attempt to commit a crime) that is a felony (or, in New Jersey,
a high misdemeanor), or who violates probation or parole
imposed under Federal or State, law shall be eligible for SSI
benefits.
The Social Security Administration (SSA) shall furnish
the current address, Social Security number, and photograph (if
applicable) of a recipient to any Federal, State, or local law
enforcement officer who is pursuing a fugitive felon or parole
or probation violator. This provision applies also to a
recipient sought by an officer because the recipient has
information necessary to the officer's official duties.
Senate amendment
Identical to House Bill.
Conference agreement
The conference agreement follows the House bill with
technical modification.
4. treatment of prisoners
Implementation of Prohibition Against Payment of Benefits to Prisoners
Present law
Current law prohibits prisoners from receiving benefits
while incarcerated. Federal, State, or county or local prisons
are required to make available, upon written request, the name
and Social Security account number of any individual who is
confined in a penal institution or correctional facility and
convicted of any crime punishable by imprisonment of more than
1 year.
House bill
The Commissioner shall enter into an agreement with any
interested State or local institution (defined as a jail,
prison, other correctional facility, or institution where the
individual is confined due to court order) under which the
institution shall provide monthly the names, Social Security
account numbers, dates of birth, confinement dates, and other
identifying information. The Commissioner shall pay to the
institution for each eligible individual who becomes ineligible
$400 if the information is provided within 30 days of the
individual becoming an inmate. The payment is $200 if the
information is furnished after 30 days but within 90 days.
In addition, the Computer Matching and Privacy Protection
Act of 1988 shall not apply to the information exchanged
pursuant to this contract.
The Commissioner is authorized to provide, on a
reimbursable basis, information obtained pursuant to agreements
to any Federal or federally assisted cash, food, or medical
assistance program for eligibility purposes.
The dollar amounts paid to the institution shall be
reduced by 50 percent if the Commissioner is also required to
make a payment with respect to the same individual based on
eligibility for Social Security disability insurance benefits.
Payments to institutions shall be made from funds
otherwise available for the payment of benefits.
Senate amendment
The Senate amendment is similar to the House bill,
however, it deletes all references to OASDI programs (due to
Senate rule) and does not include the provision for the
Commissioner to provide information to other Federal or
federally assisted programs.
Conference agreement
The conference agreement follows the House bill, except
that all OASDI references are deleted.
Denial of SSI Benefits for 10 Years to a Person Found To Have
Fraudulently Obtained SSI Benefits While in Prison
Present law
No provision.
House bill
No provision.
Senate amendment
Denies benefits for 10 years (beginning the date of
release from prison) to a person found to have fraudulently
obtained SSI benefits while in prison. This provision is
effective on the date of enactment.
Conference agreement
The conference agreement follows the House bill (i.e., no
provision).
Elimination of OASDI Requirement that Confinement Stem From Crimes
Punishable by Imprisonment for More Than 1 Year
Present law
Bars Social Security benefits from prisoners convicted of
any crime punishable by imprisonment of more than a year, not
just felonies.
House bill
Replaces ``an offense punishable by imprisonment for more
than 1 year'' with ``a criminal offense'' and deletes other
language. Effective for benefits payable more than 180 days
after the date of enactment. It bars Social Security benefits
from persons confined, throughout a month, to (1) a penal
institution or (2) other institution if the person is found
guilty but insane.
Senate amendment
No provision, due to Senate rule.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
Study of Other Potential Improvements in the Collection of Information
Respecting Public Inmates
Present law
No provision.
House bill
The Commissioner shall conduct a study of the
desirability, feasibility, and cost of establishing a system
for courts to furnish the Commissioner information regarding
court orders and requiring that State and local jails, prisons,
and other institutions enter into agreements with the
Commissioner by means of an electronic or similar data exchange
system. The report of this study shall be submitted to the
responsible Committees not later than 1 year after enactment.
Not later than October 1, 1998, the Commissioner of
Social Security shall provide to the responsible Committees of
Congress a list of institutions that are and are not providing
information to the Commissioner in accordance with these
provisions.
Senate amendment
The Senate amendment is identical to the House bill
except uses the term ``contract'' instead of ``agreement.''
There is no provision for the Commissioner to provide a
list of institutions who are or are not in compliance with
these provisions.
Conference agreement
The conference agreement follows the House bill.
5. Effective Date of Application for Benefits
Present law
The application of an individual for SSI benefits is
effective on the later of the date the application is filed or
the date the individual first becomes eligible for such
benefits.
House bill
Changes the effective date of application to the later of
the first day of the month following the date the application
is filed or the date the individual first becomes eligible for
such benefits. The provision expands SSA's authority to issue
an immediate cash advance to individuals faced with financial
emergencies. Effective for applications filed on or after the
date of enactment.
Senate amendment
Identical to House bill.
Conference agreement
The conference agreement follows the House bill with
technical modifications.
Subtitle B--Benefits for Disabled Children
6. Definition and Eligibility Rules
Definition of Childhood Disability
Present law
There is no definition of childhood disability in the
statute. Instead, the statute prescribes that an individual
under age 18 shall be considered disabled for purposes of
eligibility for SSI if that individual has an impairment or
combination of impairments of ``comparable severity'' which
would result in a work disability in an adult. This impairment
or combination of impairments must be expected to result in
death or to last for a continuous period of not less than 12
months.
House bill
This section adds a new statutory definition of childhood
disability: an individual under the age of 18 is considered as
disabled if the 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 at least a continuous period of not less than 12 months.
The Commissioner shall ensure that the combined effects
of all physical or mental impairments of an individual are
taken into account in determining whether an individual is
disabled. In addition, the Commissioner shall ensure that the
regulations prescribed by these provisions provide for the
evaluation of children who cannot be tested because of their
young age.
Senate amendment
Identical to House bill regarding the new definition of
disability. The provision does not include language regarding
combined impairments or evaluation of children who cannot be
tested because of their young age.
Conference agreement
The conference agreement follows the Senate amendment.
The conferees intend that only needy children with severe
disabilities be eligible for SSI, and the Listing of
Impairments and other current disability determination
regulations as modified by these provisions properly reflect
the severity of disability contemplated by the new statutory
definition. In those areas of the Listing that involve domains
of functioning, the conferees expect no less than two marked
limitations as the standard for qualification. The conferees
are also aware that SSA uses the term ``severe'' to often mean
``other than minor'' in an initial screening procedure for
disability determination and in other places. The conferees,
however, use the term ``severe'' in its common sense meaning.
In addition, the conferees expect that SSA will properly
observe the requirements of section 1614(a)(3)(F) of the Social
Security Act and ensure that the combined effects of all the
physical or mental impairments of an individual under age 18
are taken into account in making a determination regarding
eligibility under the definition of disability. The conferees
note that the 1990 Supreme Court decision in Zebley established
that SSA had been previously remiss in this regard. The
conferees also expect SSA to continue to use criteria in its
Listing of Impairments and in the application of other
determination procedures, such as functional equivalence, to
ensure that young children, especially children too young to be
tested, are properly considered for eligibility of benefits.
The conferees recognize that there are rare disorders or
emerging disorders not included in the Listing of Impairments
that may be of sufficient severity to qualify for benefits.
Where appropriate, the conferees remind SSA of the importance
of the use of functional equivalence disability determination
procedures.
Nonetheless, the conferees do not intend to suggest by
this definition of childhood disability that every child need
be especially evaluated for functional limitations, or that
this definition creates a supposition for any such examination.
Under current procedures for writing individual listings, level
of functioning is an explicit consideration in deciding which
impairment, with certain medical or other findings, is of
sufficient severity to be included in the Listing. Nonetheless,
the conferees do not intend to limit the use of functional
information, if reflecting sufficient severity and is otherwise
appropriate.
The conferees contemplate that Congress may revisit the
definition of childhood disability and the scope of benefits,
if deemed appropriate, and have provided elsewhere for studies
on these issues.
Requests for Comments To Improve Disability Evaluation
Present law
No provision.
House bill
No provision.
Senate amendment
Requires the Commissioner to request comments in the
Federal Register regarding improvements to the disability
evaluation and determination procedures for individuals under
age 18 to ensure the comprehensive assessment of such
individuals.
Conference agreement
The conference agreement follows the House bill (i.e., no
provision).
Changes to SSI Childhood Regulations
Present law
Under the disability determination process for children,
SSA first determines if a child meets or equals the ``Listing
of Impairments'' in Federal regulations. Under the Listings
that relate to mental disorders, maladaptive behavior may be
scored twice, in domains of social functioning and of personal/
behavior functioning.
Under the disability determination process for children,
individuals who do not meet or equal the Listing of Impairments
are subject to an ``Individualized Functional Assessment''
(IFA). This assessment is intended to determine whether, or to
what extent, a child can engage in age-appropriate activities.
If the child cannot, the child may be determined disabled.
House bill
The Commissioner of Social Security shall eliminate
references in the Listing of Impairments to maladaptive
behavior among medical criteria for evaluation of mental and
emotional disorders in the domain of personal/behavioral
function.
The Commissioner of Social Security shall discontinue use
of the Individualized Functional Assessment for children set
forth in the Code of Federal Regulations.
Senate amendment
Identical to House bill.
Conference agreement
The conference agreement follows the House bill.
Medical Improvement Review Standard as it Applies to Individuals Under
the Age of 18
Present law
No provision.
House bill
This section contains technical modifications to the
medical improvement review standard based on the new definition
of childhood disability.
Senate amendment
Identical to the House bill.
Conference agreement
The conference agreement follows the House bill.
Effective dates
Present law
No provision.
House bill
Changes in eligibility rules apply to new applications
and pending requests for administrative or judicial review on
or after the date of enactment, without regard to whether
regulations have been issued.
No later than 1 year after the date of enactment, the
Commissioner shall redetermine the eligibility of any child
receiving benefits on the date of enactment who would lose
eligibility under these provisions.
Benefits of current recipients will continue until their
redetermination. Should a child be found ineligible, their
benefits will end following redetermination.
No later than January 1, 1997, the Commissioner must
notify individuals whose eligibility for SSI benefits will
terminate.
The Commissioner must report to Congress within 180 days
regarding progress made in implementing the SSI children's
provisions.
The Commissioner shall submit final regulations to the
Committees of jurisdiction of Congress for their review at
least 45 days before they become effective.
Senate amendment
Identical to the House bill, except that benefits of
current recipients will continue until the later of July 1,
1997, or the date of redetermination. The Senate amendment also
includes language which authorizes and appropriates $300
million to remain available for fiscal years 1997-1999 for the
Commissioner to conduct continuing disability reviews (CDRs)
and redeterminations.
Conference agreement
The conference agreement follows the Senate amendment
with modification to authorize additional administrative
funding for SSA: $150 million for fiscal year 1997 and $100
million for fiscal year 1998, to conduct SSI CDRs and
redeterminations. The funding of CDRs and redeterminations will
follow the usual appropriation process, except that the amounts
above a base funding level will not be subject to discretionary
caps.
7. Eligibility Redeterminations and Continuing Disability Reviews
Present law
Current law specifies that the Commissioner must
reevaluate under adult disability criteria the eligibility of
at least one-third of SSI children who turn age 18 in each of
the fiscal years 1996, 1997, and 1998 (the CDR must be
completed before these children reach age 19) and report to
Congress no later than October 1, 1998.
House bill
At least once every 3 years the Commissioner must conduct
CDRs of children receiving SSI benefits. For children who are
eligible for benefits and whose medical condition is not
expected to improve, the requirement to perform such reviews
does not apply (unless the Commissioner decides otherwise). At
the time of review the parent or guardian must present evidence
demonstrating that the recipient is and has been receiving
appropriate treatment for her disability.
The eligibility for all children qualifying for SSI
benefits must be redetermined using the adult criteria within 1
year after turning 18 years of age. The review will be
considered a substitute for any other review required under the
changes made in this section. The ``minimum number of reviews''
and the ``sunset'' provisions of section 207 of the Social
Security Independence and Program Improvements Act of 1994 are
eliminated.
A review must be conducted 12 months after the birth of a
child whose low birth weight is a contributing factor to the
child's disability. At the time of review, the parent or
guardian must present evidence demonstrating that the recipient
is and has been receiving appropriate treatment for his
disability.
Senate amendment
Identical to House bill.
Conference agreement
The conference agreement follows the House bill.
8. Additional Accountability Requirements
Disposal of Resources for Less Than Fair Market Value
Present law
No provision.
House bill
The bill delays eligibility for any child applicant whose
parents or guardians, in order to qualify a child for benefits,
dispose of assets for less than fair market value within 36
months of the date of application. The provision stipulates
that any assets in a trust in which the child (i.e., parent or
representative payee) has control shall be considered assets of
the child and subject to the 36-month ``look-back'' rule. The
delay (in months) is equal to the amount of assets divided by
the SSI standard benefit. This provision is effective 90 days
after the date of enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
Treatment of Assets Held in Trust
Present law
No provision. Under current operating policy, a trust is
not considered a resource if the SSI recipient does not have
the legal authority to access trust assets for his or her own
food, clothing, or shelter.
House bill
Stipulates that in determining the resources of an
individual under the age of 18, a revocable trust (i.e., the
person has legal access to the assets of the trust) must be
considered a resource available to the individual. In the case
of an irrevocable trust, if there are any circumstances under
which payment from the trust could be made to or for the
benefit of the individual, then such payments are to be
considered as resource available to the individual. The
Commissioner of Social Security may waive these provisions if
the Commissioner determines, on the basis of criteria
prescribed in regulations, that such application would be an
undue hardship on the individual.
Any earnings of, or additions to the principal of the
trust would be considered income if they are available to the
individual.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
Requirement To Establish Account
Present law
No provision.
House bill
Requires the representative payee (i.e., the parent) of
an individual under the age of 18 to establish an account in a
financial institution for the receipt of past-due SSI payments
if the lump-sum payment amounts to more than 6 times the
maximum monthly SSI payment (including any State supplement). A
representative payee shall use the funds in the account for the
following expenses: education or job skills training; personal
needs assistance; special equipment or housing modifications
related to the child's disability; medical treatment;
appropriate therapy or rehabilitation; or any other item or
service that the Commissioner determines is appropriate.
Once the account is established the representative payee
may deposit any past-due benefits owed to the recipient and any
other funds representing an SSI underpayment provided the
amount is more than the maximum monthly SSI benefit payment.
The funds in these accounts would not be counted as a
resource and the interest and other earnings on the account
would not be considered income in determining SSI eligibility.
Senate amendment
Identical to House provision, except allows rather than
mandates the representative payee to use the funds for
allowable expenses.
Conference agreement
The conference agreement follows the House bill.
9. Reduction in Cash Benefits Payable to Institutionalized Individuals
Whose Medical Costs Are Covered by Private Insurance
Present law
Federal law stipulates that when individuals enter a
hospital or other medical institution for which more than half
of the bill is paid by the Medicaid program, their monthly SSI
benefit is reduced to $30 per month. This personal needs
allowance is intended to pay for small personal expenses, with
the cost of maintenance and medical care provided by the
Medicaid program.
House bill
Children in medical institutions whose medical costs are
covered by private insurance would be treated the same as
children whose bills are currently paid by Medicaid (that is,
their monthly SSI cash benefit would be reduced to $30 per
month).
Senate amendment
Identical to House bill.
Conference agreement
The conference agreement follows the House bill.
10. Regulations
Present law
No provision.
House bill
The Commissioner of Social Security and the Secretary of
HHS will prescribe necessary regulations within three months
after enactment.
Senate amendment
Identical to House bill.
Conference agreement
The conference agreement follows the House bill.
Subtitle C--Additional Enforcement Provisions
11. Installment Payment of Large Past-Due SSI Benefits
Present law
No provision.
House bill
If an individual is eligible for past-due benefits (after
any withholding for reimbursement to a State for interim
assistance) in an amount which exceeds 12 times the maximum
monthly benefit payable to an eligible individual (currently
$470) or couple (currently $705) (plus any State supplementary
payments), benefits will be paid in 3 installments made at 6-
month intervals. The first and second installments may not
exceed 12 times the maximum monthly benefit payable.
Installment caps may be extended by certain debt (food,
clothing, shelter, or medically necessary services, supplies,
or equipment, or medicine) or the purchase of a home.
Installment payments shall not apply to individuals whose
medical impairment is expected to result in death in 12 months
or for an individual who is ineligible and is likely to remain
ineligible for the next 12 months.
Senate amendment
Identical to House bill.
Conference agreement
The conference agreement follows the House bill.
12. Recovery of SSI Overpayments from Social Security Benefits
Present law
Generally, when an overpayment of Social Security
benefits is made, recovery shall be made by adjusting future
payments or by recovering the overpayment from the individual.
House bill
If the Commissioner is unable to recover the overpayment
through future payment adjustments or direct recovery, the
Commissioner may decrease any OASI or SSDI payment to the
individual or their estate. As a result of this action, no
individual may become eligible for SSI or eligible for
increased SSI benefits.
Senate amendment
No provision (due to Senate rule).
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
13. Regulations
Present law
No provision.
House bill
The Commissioner of Social Security and the Secretary of
HHS will prescribe necessary regulations within 3 months after
enactment.
Senate amendment
Identical to House bill.
Conference agreement
The conference agreement follows the House bill.
14. Repeal of Maintenance of Effort Requirements Applicable to Optional
State Programs for Supplementation of SSI
Present law
Since the beginning of the SSI program, States have had
the option to supplement (with State funds) the Federal SSI
payment. Subsequently, Congress passed section 1618 of the
Social Security Act which in effect requires States to maintain
such optional payments or lose eligibility for Medicaid funds.
The purpose of section 1618 of the Social Security Act was to
encourage States to pass along to SSI recipients the amount of
any Federal SSI benefit increase. Section 1618 allows States to
comply with the ``pass along/ maintenance of effort'' provision
by either maintaining their State supplementary payment levels
at or above March 1983, levels or by maintaining their
supplementary payment spending so that total annual Federal and
State expenditures will be at least equal to what they were in
the prior 12-month period, plus any Federal cost-of-living
increase, provided the State was in compliance for that period.
House bill
Repeals the maintenance of effort requirements in Section
1618 applicable to optional State programs for supplementation
of SSI benefits, effective on the date of enactment.
Senate amendment
No provision, due to Senate rule.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
Subtitle D--Studies Regarding Supplemental Security Income Program
15. Annual Report on the Supplemental Security Income Program
Present law
The Social Security Administration collects and publishes
limited data on the SSI program.
House bill
The Commissioner of Social Security must prepare and
provide to the President and the Congress an annual report on
the SSI program, which includes specified information and data.
The report is due May 30 of each year.
Senate amendment
Identical to the House bill, except stipulates the
inclusion of historical and correct data on prior enrollment by
public assistance recipients.
Conference agreement
The conference agreement follows the House bill, modified
by the Senate amendment.
16. Study of Disability Determination Process
Present law
No provision.
House bill
Within 90 days of enactment, the Commissioner must
contract with the National Academy of Sciences or another
independent entity to conduct a comprehensive study of the
disability determination process for SSI and SSDI. The study
must examine the validity, reliability and consistency with
current scientific standards of the Listings of Impairments
cited above. The study must also examine the appropriateness of
the definitions of disability (and possible alternatives) used
in connection with SSI and SSDI, and the operation of the
disability determination process, including the appropriate
method of performing comprehensive assessments of individuals
under age 18 with physical or mental impairments. The
Commissioner must issue interim and final reports of the
findings and recommendations of the study within 18 months and
24 months, respectively, from the date of contract for the
study.
Senate amendment
No provision, due to Senate rule.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
17. Study by General Accounting Office
Present law
No provision.
House bill
No later than January 1, 1999, the Comptroller General of
the United States must study and report on the impact of the
amendments and provisions made by this bill, and extra expenses
incurred by families of children receiving benefits not covered
by other Federal, State, or local programs.
Senate amendment
Identical to House bill.
Conference agreement
The conference agreement follows the House bill.
18. National Commission on the Future of Disability
Present law
No provision.
House bill
This section establishes a new Commission on the future
of disability.
The Commission must study all matters related to the
nature, purpose and adequacy of all Federal programs for the
disabled (and especially SSI and SSDI), including: projected
growth in the number of individuals with disabilities; possible
performance standards for disability programs; the adequacy of
Federal rehabilitation research and training; and the adequacy
of policy research available to the Federal government and
possible improvements. The Commission must submit to the
President and the proper Congressional committees
recommendations and possible legislative proposals effecting
needed program changes.
The Commission is to be composed of 15 members who are
appointed by the President and Congressional leadership and who
serve for the life of the Commission. Members are to be chosen
based on their education, training or experience, with
consideration for representing the diversity of individuals
with disabilities in the U.S. The Commission membership will
also reflect the general interests of the business and
taxpaying community.
The Commission will have a director, appointed by the
Chair, and appropriate staff, resources, and facilities.
The Commission may conduct public hearings and obtain
information from Federal agencies necessary to perform its
duties.
The Commission must issue an interim report to Congress
and the President not later than 1 year prior to terminating. A
final public report must be submitted prior to termination.
The Commission will terminate 2 years after first having
met and named a chair and vice chair.
This section authorizes the appropriation of such funds
as are necessary to carry out the purposes of the Commission.
Senate amendment
No provision, due to Senate rule.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
Title III: Child Support Enforcement
1. Reference to the Social Security Act
Present law
No provision.
House bill
Unless otherwise specified, any reference in this title
to an amendment to or repeal of a section or other provision is
to the Social Security Act.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Subtitle A--Eligibility for Services; Distribution of Payments
2. State Obligation to Provide Child Support Enforcement Services
Present law
States are required to establish paternity for children
born out of wedlock if they are recipients of AFDC or Medicaid,
and to obtain child and spousal support payments from
noncustodial parents of children receiving AFDC, Medicaid
benefits, or foster care maintenance payments. States must
provide child support collection or paternity determination
services to persons not otherwise eligible if the person
applies for services. Federal law requires States to cooperate
with other States in establishing paternity (if necessary),
locating absent parents, collecting child support payments, and
carrying out other child support enforcement functions. In
cases in which a family ceases to receive AFDC, States are
required to provide appropriate notice to the family and
continue to provide child support enforcement services without
requiring the family to apply for services or charging an
application fee.
House bill
States must provide services, including paternity
establishment and establishment, modification, or enforcement
of support obligations, for children receiving benefits from
the Temporary Assistance for Needy Families block grant (TANF),
foster care maintenance payments, Medicaid, and any child of an
individual who applies for services. States must enforce
support obligations with respect to children in their caseload
and the custodial parents of such children. States must also
make child support enforcement services available to
individuals not residing within the State on the same terms as
to individuals residing within the State. States are not
required to provide services to families if the State
determines, taking into account the best interests of the
child, that good cause and other exceptions exist. The
provision also makes minor technical amendments to section 454
of the Social Security Act.
When a family ceases to receive benefits from the TANF
block grant, States are required to provide appropriate notice
to the family and continue to provide child support enforcement
services without requiring the family to apply for services or
charging an application fee.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
3. Distribution of Child Support Collections
Present law
Federal law requires that child support collections be
distributed as follows: First, up to the first $50 in current
support is paid to the AFDC family (a ``disregard'' that does
not affect the family's AFDC benefit or eligibility status).
Second, the Federal and State governments are reimbursed for
the AFDC benefit paid to the family in that month. Third, if
there is money left, the family receives it up to the amount of
the current month's child support obligation. Fourth, if there
is still money left, the State keeps it to reimburse itself for
any arrearages owed to it under the AFDC assignment (with
appropriate reimbursement of the Federal share of the
collection to the Federal government). If no arrearages are
owed the State, the money is used to pay arrearages to the
family; such moneys are considered income under the AFDC
program and would reduce the family's AFDC benefit.
To receive AFDC benefits, a custodial parent must assign
to the State any right to collect child support payments. This
assignment covers current support and any arrearages that
accumulated before the family began receiving public
assistance, and lasts as long as the family receives AFDC.
Some States are required to provide monthly supplemental
payments to AFDC recipients who have less disposable income now
than they would have had in July 1975 because child support is
paid to the child support agency instead of directly to the
family. States required to make these supplemental payments are
often referred to as ``fill-the-gap'' States. These States pay
less assistance than their full need standard, and allow
recipients to use child support income to make up all or part
of the difference between the payment made by the State and the
State's need standard.
House bill
Several changes in the distribution rules under current
law are made by this section. The $50 passthrough to families
on AFDC is ended. In addition, distribution law is changed so
that, beginning October 1, 1997, collections on arrearages that
accumulated during the period after the family leaves welfare
are paid to the State if the money was collected through the
tax intercept and to the family if collected by any other
method. Distribution law is also changed so that beginning on
October 1, 2000, arrearages that accumulated during the period
before the family went on welfare are paid to the State if the
money was collected through the tax intercept and to the family
if collected by any other method. (Note: These new distribution
rules require the assignment rules for pre-welfare arrearages
to be changed so that families can be paid before States if the
money was collected by a method other than the tax intercept;
this change in assignment rules was made in Title I and will
appear in Section 408(a)(3)(B) of the revised Social Security
Act.)
By October 1, 1998, the Secretary must present a report
to the Congress concerning whether post-assistance arrearages
have helped mothers avoid welfare and about the effectiveness
of the new distribution rules.
All assignments of support in effect when this proposal
is enacted must remain in effect.
Several terms, including ``assistance from the State'',
``Federal share'', and ``State share'' are defined.
If States retain less money from collections than they
retained in fiscal year 1995, States are allowed to retain the
amount retained in fiscal year 1995.
If a State follows a ``fill-the-gap'' policy as outlined
above, that State can continue to distribute funds to the
family up to the amount needed to fill the gap. The provision
also clarifies the relationship between gap payments and both
the $50 passthrough and the State hold harmless provision.
Senate amendment
Same, except Senate adds provision that stipulates that
in the case of a family receiving assistance from an Indian
tribe, the State distribute any support collected in accordance
with any cooperative agreement between the State and the tribe.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment with the modification that the House accepts
the Senate provision on Indian tribes.
4. Privacy Safeguards
Present law
Federal law limits the use or disclosure of information
concerning recipients of Child Support Enforcement Services to
purposes connected with administering specified Federal welfare
programs.
House bill
States must implement safeguards against unauthorized use
or disclosure of information related to proceedings or actions
to establish paternity or to establish or enforce child
support. These safeguards must include prohibitions on release
of information where there is a protective order or where the
State has reason to believe a party is at risk of physical or
emotional harm from the other party. This provision is
effective October 1, 1997.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
5. Right to Notification of Hearing
Present law
Most States have procedural due process requirements with
respect to wage withholding. Federal law requires States to
carry out withholding in full compliance with all procedural
due process requirements of the State.
House bill
Parties to child support cases under Title IV-D must
receive notice of proceedings in which child support might be
established or modified and must receive a copy of orders
establishing or modifying child support (or a notice that
modification was denied) within 14 days of issuance.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Subtitle B--Locate and Case Tracking
6. State Case Registry
Present law
Federal law requires that wage withholding be
administered by a public agency capable of documenting payments
of support and tracking and monitoring such payments.
Federal law requires that child support orders be
reviewed and adjusted, as appropriate, at least once every
three years.
House bill
States must establish an automated State Case Registry
that contains a record on each case in which services are being
provided by the State agency, as well as each support order
established or modified in the State on or after October 1,
1998.
The Registry may be established by linking local case
registries of support orders through an automated information
network.
The registry record will contain data elements on both
parents, such as names, Social Security numbers and other
uniform identification numbers, dates of birth, case
identification numbers, and any other data the Secretary may
require.
Each case record will contain the amount of support owed
under the order and other amounts due or overdue (including
interest or late payment penalties and fees), any amounts that
have been collected and distributed, the birth date of any
child for whom the order requires the provision of support, and
the amount of any lien imposed by the State.
The State agency operating the registry will promptly
establish, maintain, update and regularly monitor case records
in the registry with respect to which services are being
provided under the State plan. Establishing and updating
support orders will be based on administrative actions and
administrative and judicial proceedings and orders relating to
paternity and support, as well as on information obtained from
comparisons with Federal, State, and local sources of
information, information on support collections and
distributions, and any other relevant information.
The State automated system will be used to extract data
for purposes of sharing and matching with Federal and State
data bases and locator services, including the Federal Case
Registry of Child Support Orders, the Federal Parent Locator
Service, and Temporary Assistance for Needy Families and
Medicaid agencies, as well as for conducting intrastate and
interstate information comparisons.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
7. Collection and Disbursement of Support Payments
Present law
No provision, but States may provide that, at the request
of either parent, child support payments be made through the
child support enforcement agency or the agency that administers
the State's income withholding system regardless of whether
there is an arrearage. States must charge the parent who
requests child support services a fee equal to the cost
incurred by the State for these services, up to a maximum of
$25 per year.
House bill
By October 1, 1998, State child support agencies are
required to operate a centralized, automated unit for
collection and disbursement of payments on child support orders
enforced by the child support agency and payments on orders
issued after December 31, 1993 which are not enforced by the
State agency but for which income is subject to withholding.
The specifics of how States will establish and operate their
State Disbursement Unit must be outlined in the State plan.
The State Disbursement Unit must be operated directly by
the State agency, by two or more State agencies under a
regional cooperative agreement, or by a contractor responsible
directly to the State agency. The State Disbursement Unit may
be established by linking local disbursement units through an
automated information network if the Secretary agrees that the
system will not cost more, take more time to establish, nor
take more time to operate than a single State system. All
States, including those that operate a linked system, must give
employers one and only one location for submitting withheld
income.
The Disbursement Unit must be used to collect and
disburse support payments, to generate orders and notices of
withholding to employers, to keep an accurate identification of
payments, to promptly distribute money to custodial parents or
other States, and to furnish parents with a record of the
current status of support payments (but States are not
responsible for records that predate passage of this
legislation). The Unit shall use automated procedures,
electronic processes, and computer-driven technology to the
maximum extent feasible, efficient, and economical.
The Disbursement Unit must distribute all amounts payable
within 2 business days after receiving money and identifying
information from the employer or other source of periodic
income, if sufficient information identifying the payee is
provided. The Unit may retain arrearages in the case of appeals
until they are resolved.
States must use their automated system to facilitate
collection and disbursement including at least:
(1) transmission of orders and notices to employers
within 2 days after receipt of the withholding notice;
(2) monitoring to identify missed payments of
support; and
(3) automatic use of enforcement procedures when
payments are missed.
It is the sense of Congress that in establishing a
centralized unit for the collection of support payments, a
State should choose the method of compliance which best meets
the needs of parents, employers, and children.
This section of the proposal will go into effect on
October 1, 1998. States that process child support payments
through local courts can continue court payments until
September 30, 1999.
Senate amendment
Same, except Senate uses the term ``wages'' rather than
``income'' throughout this section. Senate amendment does not
include the provision that States are not responsible for
records that predate passage.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment with the modification that the term ``income''
rather than ``wages'' is used throughout this section. In
addition, the House ``sense of the Congress'' language was
deleted.
8. State Directory of New Hires
Present law
In general, no provision. Section 1128 of the Social
Security Act is an antifraud provision which excludes
individuals and entities that have committed fraud from
participation in medicare and State health care programs.
Section 1128A pertains to civil monetary penalties and
describes the appropriate procedures and proceedings for such
penalties.
House bill
State plans must include the provision that by October 1,
1997 States will operate a Directory of New Hires.
Establishment. States are required to establish a State
Directory of New Hires to which employers and labor
organizations in the State must furnish a report for each newly
hired employee, unless reporting could endanger the safety of
the employee or compromise an ongoing investigation or
intelligence mission as determined by the head of an agency.
States that already have new hire reporting laws may continue
to follow the provisions of their own law until October 1,
1998, at which time States must conform to Federal law.
Employer Information. Employers must furnish to the State
Directory of New Hires the name, address, and Social Security
number of every new employee and the name, address, and
identification number of the employer. Multistate employers
that report electronically or magnetically may report to the
single State they designate; such employers must notify the
Secretary of the name of the designated State. Agencies of the
U.S. Government must report directly to the National Directory
of New Hires (see below).
Timing of Report. Employers must report new hire
information within 20 days of the date of hire. Employers that
report new hires electronically or by magnetic tape must file
twice per month; reports must be separated by not less than 12
days and not more than 16 days.
Reporting Format and Method. The report required in this
section will be made on a W-4 form or the equivalent, and can
be transmitted magnetically, electronically, or by first class
mail. The decision of which reporting method to use is up to
employers.
Civil Money Penalties on Noncomplying Employers. States
have the option of setting a civil money penalty which shall be
not less than $25 or $500 if, under State law, the failure is
the result of a conspiracy between the employer and employee.
Entry of Employer Information. New hire information must
be entered in the State data base within 5 business days of
receipt from employer.
Information Comparisons. By May 1, 1998, each State
Directory of New Hires must conduct automated matches of the
Social Security numbers of reported employees against the
Social Security numbers of records in the State Case Registry
being enforced by the State agency and report the name,
address, Social Security number, and the employer name,
address, and identification number on matches to the State
child support agency.
Transmission of Information. Within 2 business days of
the entry of data in the registry, the State must transmit a
withholding order directing the employer to withhold wages in
accord with the child support order. Within 3 days, the State
Directory of New Hires must furnish employee information to the
National Directory of New Hires for matching with the records
of other State case registries. The State Directory of New
Hires must also report quarterly to the National Directory of
New Hires information on wages and unemployment compensation
taken from the quarterly report to the Secretary of Labor now
required by Title III of the Social Security Act.
Other Uses of New Hire Information. The State child
support agency must use the new hire information to locate
individuals for purposes of establishing paternity as well as
establishing, modifying, and enforcing child support
obligations. New hire information must also be disclosed to the
State agency administering the Temporary Assistance for Needy
Families, Medicaid, Unemployment Compensation, Food Stamp, SSI,
and territorial cash assistance programs for income eligibility
verification, and to State agencies administering unemployment
and workers' compensation programs to assist determinations of
the allowability of claims. State and local government agencies
must participate in quarterly wage reporting to the State
employment security agency unless the agency performs
intelligence or counterintelligence functions and it is
determined that wage reporting could endanger the safety of the
employee or compromise an ongoing investigation or intelligence
mission. States may disclose new hire information to agencies
working under contract with the child support agency.
Disclosure to Certain Agents. States using private
contractors are allowed to share information obtained from the
Directory of New Hires with private entities working under
contract with the State agency. Private contractors must comply
with privacy safeguards.
Senate amendment
Same, except under ``Other Uses of New Hire Information''
Senate Amendment has no provision allowing States to share
information with agencies working under contract with the
State.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment with the modification that the House provision
allowing private entities working under contract with child
support agencies access to child support information is
included.
9. Amendments Concerning Income Withholding
Present law
Since November 1, 1990, all new or modified child support
orders that were being enforced by the State's child support
enforcement agency have been subject to immediate income
withholding. If the noncustodial parent's wages are not subject
to income withholding (pursuant to the November 1, 1990
provision), such parent's wages would become subject to
withholding on the date when support payments are 30 days past
due. Since January 1, 1994, the law has required States to use
immediate income withholding for nearly all new or modified
support orders, regardless of whether a parent has applied for
child support enforcement services. There are two circumstances
in which income withholding does not apply: (1) one of the
parents argues, and the court or administrative agency agrees,
that there is good cause not to do so, or (2) a written
agreement is reached between both parents which provides for an
alternative arrangement. States must implement procedures under
which income withholding for child support can occur without
the need for any amendment to the support order or for any
further action by the court or administrative entity that
issued the order. States are also required to implement income
withholding in full compliance with all procedural due process
requirements of the State, and States must send advance notice
to each nonresident parent to whom income withholding applies
(with an exception for some States that had income withholding
before enactment of this provision that met State due process
requirements). States must extend their income withholding
systems to include out-of-State support orders.
House bill
States must have laws providing that all child support
orders issued or modified before October 1, 1996, which are not
otherwise subject to income withholding, will become subject to
income withholding immediately if arrearages occur, without the
need for judicial or administrative hearing. State law must
also allow the child support agency to execute a withholding
order through electronic means and without advance notice to
the obligor. Employers must remit to the State Disbursement
Unit, in a format prescribed by the Secretary, income withheld
within five working days after the date such amount would have
been paid to the employee. Employers cannot take disciplinary
action against employees subject to wage withholding. All child
support orders subject to income withholding, including those
which are not part of the State IV-D program, must be processed
through the State Disbursement Unit. In addition, States must
notify noncustodial parents that income withholding has
commenced and inform them of procedures for contesting income
withholding. Employers must follow the withholding terms and
conditions stated in the order; if the terms and conditions are
not specified employers should follow those of the State in
which the obligor lives. The section includes a definition of
income to be used in interstate withholding and several
conforming amendments to section 466 of the Social Security
Act.
Senate amendment
Same, except employers must remit income withheld to the
State disbursement unit within 7 rather than 5 days. There are
also minor wording differences in the rules relating to income
withholding. There is also a difference in the House and Senate
definitions of income.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment with the modifications that employers are
given 7 days rather than 5 days to remit withheld income and
that the House definition of income is followed. With respect
to this provision, ``timely-paid'' is demonstrated by postmark,
or in the case of electronic payment, the date the electronic
transmission is proven to have been initiated by the employer.
10. Locator Information from Interstate Networks
Present law
No provision.
House bill
All State and the Federal Child Support Enforcement
agencies must have access to the motor vehicle and law
enforcement locator systems of all States.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
11. Expansion of the Federal Parent Locator Service
Present law
The law requires that the Federal Parent Locator Service
(FPLS) be used to obtain and transmit information about the
location of any absent parent when that information is to be
used for the purpose of enforcing child support. Federal law
also requires departments or agencies of the United States to
be reimbursed for costs incurred in providing requested
information to the FPLS.
Information Comparisons and Other Disclosures. Upon
request, the Secretary must provide to an ``authorized person''
(i.e., an employee or attorney of a child support agency, a
court with jurisdiction over the parties involved, the
custodial parent, the legal guardian, or the child's attorney)
the most recent address and place of employment of any
nonresident parent if the information is contained in the
records of the Department of Health and Human Services or can
be obtained from any other department or agency of the United
States or of any State. The FPLS also can be used in connection
with the enforcement or determination of child custody,
visitation, and parental kidnapping. Federal law requires the
Secretary of Labor and the Secretary of Health and Human
Services to enter into an agreement to give the FPLS prompt
access to wage and unemployment compensation claims information
useful in locating a noncustodial parent or his employer.
Fees. ``Authorized persons'' who request information from
FPLS must be charged a fee.
Restriction on Disclosure and Use. Federal law stipulates
that no information shall be disclosed if the disclosure would
contravene the national policy or security interests of the
United States or the confidentiality of Census data.
Quarterly Wage Reporting. The Secretary of Labor must
provide prompt access by the Secretary of HHS to wage and
unemployment compensation claims information and data
maintained by the Labor Department or State employment security
agencies.
House bill
The purposes of the Federal Parent Locator Service are
expanded. For the purposes of establishing parentage,
establishing support orders or modifying them, or enforcing
support orders, the Federal Parent Locator Service will provide
information to locate individuals who owe child support or
against whom an obligation is sought or to whom such an
obligation is owed. Information in the FPLS includes Social
Security number, address, name and address of employer, wages
and employee benefits (including information about health care
coverage), and information about assets and debts. The
provision also clarifies the statute so that parents with
orders providing child custody or visitation rights are given
access to information from the FPLS unless the State has
notified the Secretary that there is reasonable evidence of
domestic violence or child abuse or that the information could
be harmful to the custodial parent or child.
The Secretary is authorized to set reasonable rates for
reimbursing Federal and State agencies for the costs of
providing information to the FPLS and to set reimbursement
rates that State and Federal agencies that use information from
the FPLS must pay to the Secretary.
Federal Case Registry of Child Support Orders.
Establishes within the FPLS an automated registry known as the
Federal Case Registry of Child Support Orders. The Federal Case
Registry contains abstracts of child support orders and other
information specified by the Secretary (such as names, Social
Security numbers or other uniform identification numbers, and
State case identification numbers) to identify individuals who
owe or are owed support, or for or against whom support is
sought to be established, and the State which has the case.
States must begin reporting this information in accord with
regulations issued by the Secretary by October 1, 1998.
National Directory of New Hires. This provision
establishes within the FPLS a National Directory of New Hires
containing information supplied by State Directories of New
Hires. When fully implemented, the Federal Directory of New
Hires will contain identifying information on virtually every
person who is hired in the United States. In addition, the FPLS
will contain quarterly data supplied by the State Directory of
New Hires on wages and Unemployment Compensation paid. The
Secretary of the Treasury must have access to information in
the Federal Directory of New Hires for the purpose of
administering section 32 of the Internal Revenue Code and the
Earned Income Credit. The information for the National
Directory of New Hires must be entered within 2 days of
receipt, and requires the Secretary to maintain within the
National Directory of New Hires a list of multistate employers
that choose to send their report to one State and the name of
the State so elected. The Secretary must establish a National
Directory of New Hires by October 1, 1997.
Information Comparisons and Other Disclosures. The
Secretary must verify the accuracy of the name, Social Security
number, birth date, and employer identification number of
individuals in the Federal Parent Locator Service with the
Social Security Administration. The Secretary is required to
match data in the National Directory of New Hires against the
child support order abstracts in the Federal Case Registry at
least every 2 working days and to report information obtained
from matches to the State child support agency responsible for
the case within 2 days. The information is to be used for
purposes of locating individuals to establish paternity, and to
establish, modify, or enforce child support orders. The
Secretary may also compare information across all components of
the FPLS to the extent and with the frequency that the
Secretary determines will be effective. The Secretary will
share information from the FPLS with several potential users
including State agencies administering the Temporary Assistance
for Needy Families program, the Commissioner of Social Security
(to determine the accuracy of Social Security and Supplemental
Security Income), and researchers under some circumstances.
Fees. The Secretary must reimburse the Commissioner of
Social Security for costs incurred in performing verification
of Social Security information and States for submitting
information on New Hires. States or Federal agencies that use
information from FPLS must pay fees established by the
Secretary.
Restriction on Disclosure and Use. Information from the
FPLS cannot be used for purposes other than those provided in
this section, subject to section 6103 of the Internal Revenue
Code (confidentiality and disclosure of returns and return
information).
Information Integrity and Security. The Secretary must
establish and use safeguards to ensure the accuracy and
completeness of information from the FPLS and restrict access
to confidential information in the FPLS to authorized persons
and purposes.
Federal Government Reporting. Each department of the U.S.
must submit the name, Social Security number, and wages paid
the employee on a quarterly basis to the FPLS. Quarterly wage
reporting must not be filed for a Federal or State employee
performing intelligence or counter-intelligence functions if it
is determined that filing such a report could endanger the
employee or compromise an ongoing investigation.
Conforming Amendments. This section makes several
conforming amendments to Titles III and IV of the Social
Security Act, to the Federal Unemployment Tax Act, and to the
Internal Revenue Code. Among the more important are that: State
employment security agencies are required to report quarterly
wage information to the Secretary of HHS or suffer financial
penalties and that private agencies working under contract to
State child support agencies can have access to certain
specified information from IRS records under some
circumstances.
Requirement for Cooperation. The Secretaries of HHS and
Labor must work together to develop cost-effective and
efficient methods of accessing information in the various
directories required by this title; they must also consider the
need to ensure the proper and authorized use of wage record
information.
Senate amendment
Same, except under ``Information Comparisons and Other
Disclosures'' the Senate amendment drops the requirement that
the Social Security Administration must determine the accuracy
of payments under the Social Security and SSI programs.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment with the modification that the agreement
follows the Senate provision dropping the requirement that the
Social Security Administration determine the accuracy of Social
Security and SSI payments.
12. Collection and Use of Social Security Numbers for Use in Child
Support Enforcement
Present law
Federal law requires that in the administration of any
law involving the issuance of a birth certificate, States must
require each parent to furnish their Social Security number for
the birth records. The State is required to make such numbers
available to child support agencies in accordance with Federal
or State law. States may not place Social Security numbers
directly on birth certificates.
House bill
States must have procedures for recording the Social
Security numbers of applicants on the application for
professional licenses, commercial driver's licenses,
occupational licenses, and marriage licenses. States must also
record Social Security numbers in the records of divorce
decrees, child support orders, and paternity determination or
acknowledgment orders. Individuals who die will have their
Social Security number placed in the records relating to the
death and recorded on the death certificate. There are several
conforming amendments to title II of the Social Security Act.
Senate amendment
Same, except difference in conforming amendment to Social
Security Act.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Subtitle C--Streamlining and Uniformity of Procedures
13. Adoption of Uniform State Laws
Present law
States have several options available for pursuing
interstate child support cases including direct income
withholding, interstate income withholding, and long-arm
statutes which require the use of the court system in the State
of the custodial parent. In addition, States use the Uniform
Reciprocal Enforcement of Support Act (URESA) and the Revised
Uniform Reciprocal Enforcement of Support Act (RURESA) to
conduct interstate cases. Federal law imposes a Federal
criminal penalty for the willful failure to pay past-due child
support to a child who resides in a State other than the State
of the obligor. In 1992, the National Conference of
Commissioners on State Uniform Laws approved a new model State
law for handling interstate child support cases. The new
Uniform Interstate Family Support Act (UIFSA) is designed to
deal with desertion and nonsupport by instituting uniform laws
in all 50 States that limit control of a child support case to
a single State. This approach ensures that only one child
support order from one court or child support agency will be in
effect at any given time. It also helps to eliminate
jurisdictional disputes between States that are impediments to
locating parents and enforcing child support orders across
State lines. As of February 1996, 26 States and the District of
Columbia had enacted UIFSA.
House bill
By January 1, 1998, all States must have enacted the
Uniform Interstate Family Support Act (UIFSA) and any
amendments officially adopted by the National Conference of
Commissioners of Uniform State Laws before January 1, 1998, and
have the procedures required for its implementation in effect.
States are allowed flexibility in deciding which specific
interstate cases are pursued by using UIFSA and which cases are
pursued using other methods of interstate enforcement. States
must provide that an employer that receives an income
withholding order follow the procedural rules that apply to the
order under the laws of the State in which the noncustodial
parent works.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment with additional clarifying provisions that
conferees agreed to include at the request of the National
Conference of Commissioners of Uniform State Laws. The
Commissioners asked conferees to make two changes in House and
Senate provisions. More specifically, conferees agreed to drop
language in the section on income withholding in interstate
cases and to insert replacement language approved by the
Commissioners. This provides specific instructions to employers
for rules to follow in processing interstate cases. Employers
following these instructions are also provided with legal
immunity.
14. Improvements to Full Faith and Credit for Child Support Orders
Present law
Federal law requires States to treat past-due support
obligations as final judgments that are entitled to full faith
and credit in every State. This means that a person who has a
support order in one State does not have to obtain a second
order in another State to obtain support due should the debtor
parent move from the issuing court's jurisdiction. P.L. 103-383
restricts a State court's ability to modify a support order
issued by another State unless the child and the custodial
parent have moved to the State where the modification is sought
or have agreed to the modification.
House bill
The provision clarifies the definition of a child's home
State, makes several revisions to ensure that full faith and
credit laws can be applied consistently with UIFSA, and
clarifies the rules regarding which child support orders States
must honor when there is more than one order.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
15. Administrative Enforcement in Interstate Cases
Present law
No provision.
House bill
States are required to have laws that permit them to send
orders to and receive orders from other States. The
transmission of the order itself serves as certification to the
responding State of the arrears amount and of the fact that the
initiating State met all procedural due process requirements.
In addition, each responding State must, without requiring the
case to be transferred to their State, match the case against
its data bases, take appropriate action if a match occurs, and
send the collections, if any, to the initiating State. States
must keep records of the number of requests they receive, the
number of cases that result in a collection, and the amount
collected. States must respond to interstate requests within
five days.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
16. Use of Forms in Interstate Enforcement
Present law
No provision.
House bill
The Secretary of HHS, in consultation with State child
support directors and not later than October 1, 1996, must
issue forms that States must use for income withholding, for
imposing liens, and for issuing administrative subpoenas in
interstate cases. States must be using the forms by March 1,
1997.
Senate amendment
Same, except minor differences in wording.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
17. State Laws Providing Expedited Procedures
Present law
States must have procedures under which expedited
processes are in effect under the State judicial system or
under State administrative processes for obtaining and
enforcing support orders and for establishing paternity.
Federal regulations provide a number of safeguards in
expedited cases, such as requiring that the due process rights
of the parties involved be protected.
The Employee Retirement Income Security Act (ERISA) of
1974 supersedes any and all State laws. Under ERISA a
noncustodial parent's pension benefits can only be garnished or
withheld if the custodial parent has a qualified domestic
relations order. Similarly, a pension plan administrator is
obligated to adhere to medical support requirements only if the
custodial parent has a qualified medical child support order.
House bill
States must adopt a series of procedures to expedite both
the establishment of paternity and the establishment,
enforcement, and modification of support. These procedures must
give the State agency the authority to take the following
actions, subject to due process safeguards, without the
necessity of obtaining an order from any other judicial or
administrative tribunal:
(1) ordering genetic testing in appropriate cases;
(2) issuing subpoenas to obtain information
necessary to establish, modify or enforce an order,
with appropriate sanctions for failure to respond to
the subpoena;
(3) requiring all entities in the State (including
for-profit, nonprofit, and governmental employers) to
provide information on employment, compensation and
benefits of any employee or contractor in response to a
request from the State IV-D agency or the IV-D agency
of any other State, and to sanction failure to respond
to such request;
(4) obtaining access to a variety of public and
private records including: vital statistics, State and
local tax records, real and personal property,
occupational and professional licenses and records
concerning ownership and control of corporations,
partnerships and other business entities, employment
security records, public assistance records, motor
vehicle records, corrections records, and, subject to
the nonliability of these private entities and the
issuance of an administrative subpoena, information in
the customer records of public utilities and cable TV
companies, and records of financial institutions;
(5) directing the obligor or other payor to change
the payee to the appropriate government entity in cases
in which support is subject to an assignment or to a
requirement to pay through the State Disbursement Unit;
(6) ordering income withholding in certain IV-D
cases;
(7) securing assets to satisfy arrearages: by
intercepting or seizing periodic or lump sum payments
from States or local agencies including Unemployment
Compensation, workers' compensation, judgements,
settlements, lottery winnings, assets held by financial
institutions, and public and private retirement funds;
by attaching and seizing assets held in financial
institutions; by attaching public and private
retirement funds; and by imposing liens to force the
sale of property; and
(8) increasing automatically the monthly support
due to include amounts to offset arrears.
Expedited procedures must include the following rules and
authority applicable with respect to proceedings to establish
paternity or to establish, modify, or enforce support orders:
(1) Locator Information and Notice. Parties in
paternity and child support actions must file and
update information about identity, address, and
employer with the tribunal and with the State Case
Registry upon entry of the order. The tribunal can deem
due process requirements for notice and service of
process to be met in any subsequent action upon
delivery of written notice to the most recent
residential or employer address filed with the
tribunal.
(2) Statewide Jurisdiction. The child support
agency and any administrative or judicial tribunal have
the authority to hear child support and paternity
cases, to exert Statewide jurisdiction over the
parties, and to grant orders that have Statewide
effect; cases can also be transferred between local
jurisdictions without additional filing or service of
process.
Except to the extent that the provisions related to
expedited procedures are consistent with requirements of the
ERISA qualified domestic relations orders and the qualified
medical child support orders, the expedited procedures do not
alter, amend, modify, invalidate, impair or supersede ERISA
requirements.
The automated systems being developed by States are to be
used, to the maximum extent possible, to implement expedited
procedures.
Senate amendment
Same, except for a modification that alters the
nonliability of entities that share information with child
support officials and eliminates the reference to
administrative subpoenas.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment except that the agreement included the House
provision strengthening the nonliability of entities that share
information with child support officials.
Subtitle D--Paternity Establishment
18. State Laws Concerning Paternity Establishment
Present law
Establishment Process Available from Birth Until Age 18.
Federal law requires States to have laws that permit the
establishment of paternity until the child reaches age 18. As
of August 16, 1984, these procedures would apply to a child for
whom paternity has not been established or for whom a paternity
action was brought but dismissed because of statute of
limitations of less than 18 years was then in effect in the
State.
Procedures Concerning Genetic Testing. Federal law
requires States to implement laws under which the child and all
other parties must undergo genetic testing upon the request of
a party in contested cases.
Voluntary Paternity Acknowledgement. Federal law requires
States to implement procedures for a simple civil process for
voluntary paternity acknowledgment, including hospital-based
programs.
Status of Signed Paternity Acknowledgement. Federal law
requires States to implement procedures under which the
voluntary acknowledgment of paternity creates a rebuttable
presumption, or at State option, a conclusive presumption of
paternity.
Bar on Acknowledgement Ratification Proceedings. Federal
law requires States to implement procedures under which
voluntary acknowledgment is admissible as evidence of paternity
and the voluntary acknowledgment of paternity must be
recognized as a basis for seeking a support order without
requiring any further proceedings to establish paternity.
Admissibility of Genetic Testing Results. Federal law
requires States to implement procedures which provide that any
objection to genetic testing results must be made in writing
within a specified number of days before any hearing at which
such results may be introduced into evidence. If no objection
is made, the test results must be admissible as evidence of
paternity without the need for foundation testimony or other
proof of authenticity or accuracy.
Presumption of Paternity in Certain Cases. Federal law
requires States to implement procedures which create a
rebuttable or, at State option, conclusive presumption of
paternity based on genetic testing results indicating a
threshold probability that the alleged father is the father of
the child.
Default Orders. Federal law requires States to implement
procedures that require 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.
House bill
Establishment Process Available from Birth Until Age 18.
States are required to have laws that permit paternity
establishment until at least age 18 (or a higher limit at State
option) even in cases that were previously dismissed because a
statute of limitations of less than 18 years was then in
effect.
Procedures Concerning Genetic Testing. The child and all
other parties, unless good cause provisions are met, must
undergo genetic testing upon the request of a party if the
request is supported by a sworn statement establishing a
reasonable possibility of parentage or nonparentage. When the
tests are ordered by the State agency, States must pay the
costs, subject to recoupment at State option from the father if
paternity is established. Upon the request and advance payment
by the contestant, States must seek additional testing if the
original test result is contested.
Voluntary Paternity Acknowledgement.
(1) Simple Civil Process. States must have procedures
that create a simple civil process for voluntary acknowledging
paternity under which benefits, rights, and responsibilities of
acknowledgement are explained to unwed parents before the
acknowledgement is signed.
(2) Hospital Program. States must have procedures that
establish a paternity acknowledgement program through
hospitals.
(3) Paternity Services. States must have procedures that
require the agency responsible for maintaining birth records to
offer voluntary paternity establishment services. The Secretary
must issue regulations governing voluntary paternity
establishment services, including regulations on State agencies
that may offer voluntary paternity acknowledgement services and
the conditions such agencies must meet.
(4) Affidavit. States must develop their own voluntary
acknowledgment form but the form must contain all the basic
elements of a form developed by the Secretary. States must give
full faith and credit to the forms of other States.
Status of Signed Paternity Acknowledgement.
(1) Inclusion in Birth Records. States must include the
name of the father in the record of births to unmarried parents
only if the father and mother have signed a voluntary
acknowledgement of paternity or a court or administrative
agency has issued an adjudication of paternity.
(2) Legal Finding. States must have procedures under
which a signed acknowledgement of paternity is considered a
legal finding of paternity unless rescinded within 60 days or
the date of a judicial or administrative proceeding to
establish a support order.
(3) Contest. States must have procedures under which a
paternity acknowledgment can be challenged in court only on the
basis of fraud, duress, or material mistake of fact, with the
burden of proof on the challenger.
Bar on Acknowledgement Ratification Proceedings. No
judicial or administrative proceedings are required or
permitted to ratify a paternity acknowledgement which is not
challenged by the parents.
Admissibility of Genetic Testing Results. States must
have procedures for admitting into evidence accredited genetic
tests, unless any objection is made in writing within a
specified number of days, and if no objection is made,
clarifying that test results are admissible without the need
for foundation or other testimony.
Presumption of Paternity in Certain Cases. States must
have laws that create a rebuttable or, at State option,
conclusive presumption of paternity when results from genetic
testing indicate a threshold probability that the alleged
father is the father of the child.
Default Orders. A default order must be entered in a
paternity case upon a showing of service of process on the
defendant and any additional showing required by the State law.
No Right to Jury Trial. State laws must state that
parties in a contested paternity action are not entitled to a
jury trial.
In addition to all the above provisions that strengthen
similar provisions of current law, the Committee report
contains a number of new provisions that have no direct
parallel in current law. These include:
Temporary Support Based on Probable Paternity. Upon
motion of a party, State law must require issuance of a
temporary support order pending an administrative or judicial
determination of parentage if paternity is indicated by genetic
testing or other clear and convincing evidence.
Proof of Certain Support and Paternity Establishment
Costs. Bills for pregnancy, childbirth, and genetic testing
must be admissible in judicial proceedings without foundation
testimony and must constitute prima facie evidence of the cost
incurred for such services.
Standing of Putative Fathers. Putative fathers must have
a reasonable opportunity to initiate a paternity action.
Filing of Acknowledgement and Adjudications in State
Registry of Birth Records. Both voluntary acknowledgements and
adjudications of paternity must be filed with the State
registry of birth records for data matches with the central
Case Registry of Child Support Orders.
National Paternity Acknowledgement Affidavit. The
Secretary is required to develop, in consultation with the
States, the minimum requirements of an affidavit which includes
the Social Security number of each parent to be used by States
for voluntary acknowledgement of paternity.
Senate amendment
Same, except under ``Voluntary Paternity
Acknowledgement,'' the Senate amendment includes good cause
exceptions.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment with modification that the good cause
exceptions are dropped.
19. Outreach for Voluntary Paternity Establishment
Present law
States are required to regularly and frequently
publicize, through public service announcements, the
availability of child support enforcement services.
House bill
States must publicize the availability and encourage the
use of procedures for voluntary establishment of paternity and
child support.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
20. Cooperation by Applicants for and Recipients of Temporary Family
Assistance
Present law
AFDC applicants and recipients are required to cooperate
with the State in establishing the paternity of a child and in
obtaining child support payments unless the applicant or
recipient is found to have good cause for refusing to
cooperate. Under the ``good cause'' regulations, the child
support agency may determine that it is against the best
interests of the child to seek to establish paternity in cases
involving incest, rape, or pending procedures for adoption.
Moreover, the agency may determine that it is against the best
interest of the child to require the mother to cooperate if it
is anticipated that such cooperation will result in the
physical or emotional harm of the child, parent, or caretaker
relative.
House bill
Individuals or their children who apply for or receive
public assistance under the Temporary Assistance for Needy
Families (TANF) program or the Medicaid program must cooperate,
as determined by the State child support agency, with State
efforts to establish paternity and establish, modify, or
enforce a support order. State procedures must require both
that applicants and recipients provide specific identifying
information about the other parent and that applicants appear
at interviews, hearings, and legal proceedings, unless the
applicant or recipient is found to have good cause for refusing
to cooperate. States must have ``good cause'' exceptions and
they must take into account the best interests of the child.
The definition of good cause, and the determination of good
cause in specific cases, can be accomplished by the State
agency administering TANF, child support enforcement, or
Medicaid. States also must require the custodial parent and
child to submit to genetic testing. States may not require the
noncustodial parent to sign an acknowledgement of paternity or
relinquish the right to genetic testing as a condition of
cooperation. The State child support agency must notify the
agencies administering the TANF Block Grant and Medicaid
programs if noncooperation is determined.
Senate amendment
Same, except imposes a penalty for noncooperation. If it
is determined that an individual is not cooperating, and the
individual does not qualify for any good cause or other
exception, then the State must deduct not less than 25 percent
of the Title IV-A assistance that otherwise would be provided
to the family of the individual; and the State may deny the
family any Title IV-A assistance. The Senate amendment also has
references to Title XV not found in the House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment except that the Senate penalty of 25 percent
is included. This provision is included in Title I (Block
Grants for Temporary Assistance for Needy Families) of the
bill.
Subtitle E--Program Administration and Funding
21. Performance-Based Incentives and Penalties
Present law
Incentive Adjustments to Federal Matching Rate. The
Federal government reimburses approved administrative
expenditures of States at a rate of 66 percent. In addition,
the Federal government pays States an incentive amount ranging
from six percent to 10 percent of both AFDC and non-AFDC
collections.
Conforming Amendments. No provision.
Calculation of IV-D Paternity Establishment Percentage.
States are required to meet Federal standards for the
establishment of paternity. The major standard relates to the
percentage obtained by dividing the number of children in the
State who are born out of wedlock, are receiving AFDC or child
support enforcement services, and for whom paternity has been
established by the number of children who are born out of
wedlock and are receiving AFDC or child support enforcement
services. To meet Federal requirements, this percentage in a
State must be at least 75 percent or meet the following
standards of improvement from the preceding year: (1) if the
State paternity establishment ratio is between 50 and 75
percent, the State ratio must increase by 3 or more percentage
points from the ratio of the preceding year; (2) if the State
ratio is between 45 and 50, the ratio must increase at least 4
percentage points; (3) if the State ratio is between 40 and 45
percent, it must increase at least 5 percentage points; and (4)
if the State ratio is below 40 percent, it must increase at
least 6 percentage points. If an audit finds that the State's
child support enforcement program has not substantially
complied with the requirements of its State plan, the State is
subject to a penalty. In accord with this penalty, the
Secretary must reduce a State's AFDC benefit payment by not
less than 1 percent nor more than 2 percent for the first
failure to comply; by not less than 2 percent nor more than 3
percent for the second consecutive failure to comply; and by
not less than 3 percent nor more than 5 percent for third or
subsequent consecutive failure to comply.
House bill
Incentive Adjustments to Federal Matching Rate. The
Secretary, in consultation with State child support directors,
must develop a proposal for a new incentive system that
provides additional payments to States (i.e., above the base
matching rate of 66 percent) based on performance and report
details of the new system to the Committees on Ways and Means
and Finance by March 1, 1997. The Secretary's new system must
be revenue neutral. The current incentive system remains
effective for fiscal years beginning before 2000.
Conforming Amendments. Conforming amendments are made in
Sections 458 of the Social Security Act.
Calculation of IV-D Paternity Establishment Percentage.
States have the option of calculating the paternity
establishment rate by either counting only unwed births in the
State IV-D caseload or by counting all unwed births in the
State. The IV-D paternity establishment percentage for a fiscal
year is equal to: (1) the total number of children in the State
who were born out-of-wedlock, and who receive services under
Part A or, at State option, Part D, and for whom paternity is
acknowledged or established during the fiscal year, divided by
(2) the total number of children born out-of-wedlock who
receive services under Part A or E or, at State option, Part D.
The Statewide paternity establishment percentage is similar
except that all out-of-wedlock births in the fiscal year in the
State are in the denominator and all paternities established
are in the numerator. The requirements for meeting the standard
are the same as current law except the 75 percent rule is
increased to 90 percent. States with a paternity establishment
percentage of between 75 percent and 90 percent must improve
their performance by at least two percentage points per year.
The noncompliance provisions of the child support program are
modified so that the Secretary must take overall program
performance into account.
Senate amendment
Same, except minor wording difference in amendment of
Section 452(g)(2).
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
22. Federal and State Review and Audits
Present law
States are required to maintain a full record of child
support collections and disbursements and to maintain an
adequate reporting system.
The Secretary must collect and maintain, on a fiscal year
basis, up-to-date State-by-State statistics on each of the
services provided under the child support enforcement program.
The Secretary is also required to evaluate the implementation
of State child support enforcement programs and conduct audits
of these programs as necessary, but not less often than once
every 3 years (or annually if a State has been found to be out
of compliance with program rules).
House bill
States are required to annually review and report to the
Secretary, using data from their automatic data processing
system, both information adequate to determine the State's
compliance with Federal requirements for expedited procedures
and timely case processing as well as the information necessary
to calculate their levels of accomplishment and rates of
improvement on the performance indicators in the proposal.
The Secretary is required to determine the amount (if
any) of incentives or penalties. The Secretary must also review
State reports on compliance with Federal requirements and
provide States with recommendations for corrective action.
Audits must be conducted at least once every 3 years, or more
often in the case of States that fail to meet Federal
requirements. The purpose of the audits is to assess the
completeness, reliability, and security of data reported for
use in calculating the performance indicators and to assess the
adequacy of financial management of the State program.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
23. Required Reporting Procedures
Present law
The Secretary is required to assist States in
establishing adequate reporting procedures and must maintain
records of child support enforcement operations and of amounts
collected and disbursed, including costs incurred in collecting
support payments.
House bill
The Secretary is required to establish procedures and
uniform definitions for State collection and reporting of
information necessary to measure State compliance with
expedited processes.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
24. Automated Data Processing Requirements
Present law
Federal law (P.L. 104-35) requires that by October 1,
1997, States have an operational automated data processing and
information retrieval system designed to control, account for,
and monitor all factors in the support enforcement and
paternity determination process, the collection and
distribution of support payments, and the costs of all services
rendered.
The automated data processing system must be capable of
providing management information on all IV-D cases from initial
referral or application through collection and enforcement. The
automated data processing system must also be capable of
providing security against unauthorized access to, or use of,
the data in such system. To establish these automated data
systems, the Federal government provided States with a 90
percent matching rate for the costs of development. This
enhanced matching money expired on October 1, 1995.
House bill
States are required to have a single Statewide automated
data processing and information retrieval system which has the
capacity to perform the necessary functions and with the
required frequency, as described in this section. The State
data system must be used to perform functions the Secretary
specifies, including controlling and accounting for the use of
Federal, State, and local funds and maintaining the data
necessary to meet Federal reporting requirements in carrying
out the program. The system must maintain the requisite data
for Federal reporting, calculate the State's performance for
purposes of the incentive and penalty provisions, and have in
place systems controls to ensure the completeness, reliability,
and accuracy of the data.
To promote security of information, the State agency must
have safeguards to protect the integrity, accuracy, and
completeness of, and access to and use of, data in the
automated systems including restricting access to passwords,
monitoring of access to and use of the system, conducting
automated systems training, and imposing penalties for
unauthorized use or disclosure of confidential data. The
Secretary must prescribe final regulations for implementation
of this section no later than 2 years after the date of the
enactment of this Act.
The statutory provisions for State implementation of
Federal automatic data processing requirements are revised to
provide that, first, all requirements enacted on or before the
date of enactment of the Family Support Act of 1988 are to be
met by October 1, 1997. The requirements enacted on or before
the date of enactment of this proposal must be met by October
1, 1999. The October 1, 1999 deadline will be extended by one
day for each day by which the Secretary fails to meet the 2-
year deadline for regulations. The Federal government will
continue the 90 percent matching rate for 1996 and 1997 in the
case of provisions outlined in advanced planning documents
submitted before September 30, 1995; the enhanced match is also
provided retroactively for funds expended since expiration of
the enhanced rate on October 1, 1995. For fiscal years 1996
through 2001, the matching rate for the provisions of this
section will be 80 percent.
The Secretary must create procedures to cap payments to
States to meet the new requirements at $400,000,000 over 6
years (fiscal years 1996-2001) to be distributed among States
by a formula set in regulations which takes into account the
relative size of State caseloads and the level of automation
needed to meet applicable automatic data processing
requirements.
Senate amendment
Same, except that requirements enacted after the Family
Support Act must be met by October 1, 2000 (rather than October
1, 1999). Also, a difference in wording about payments in
fiscal year 1998.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
25. Technical Assistance (and Funding of Parent Locator Service)
Present law
Annual appropriations are made to cover the expenses of
the Administration for Children and Families, which includes
the Federal Office of Child Support Enforcement (OCSE). Among
OCSE's administrative expenses are the costs of providing
technical assistance to the States.
House bill
The Secretary can use 1 percent of the Federal share of
child support collections on behalf of families in the
Temporary Assistance for Needy Families program the preceding
year to provide technical assistance to the States. Technical
assistance can include training of State and Federal staff,
research and demonstration programs, special projects of
regional or national significance, and similar activities. The
Secretary will receive 2 percent of the Federal share of
collections on behalf of TANF recipients the preceding year for
operation of the Federal Parent Locator Service to the extent
that costs of the Parent Locator Service are not recovered by
user fees.
Senate amendment
Same, except the effective date is October 1, 1997.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment except that the House effective date is
followed.
26. Reports and Data Collection by the Secretary
Present law
The Secretary is required to submit to Congress, not
later than 3 months after the end of the fiscal year, a
complete report on all child support enforcement activities.
House bill
In addition to current reporting requirements, the
Secretary is required to report the following data to Congress
in her annual report each fiscal year:
(1) the total amount of child support payments
collected;
(2) the cost to the State and Federal governments
of furnishing child support services;
(3) the number of cases involving families that
became ineligible for aid under part A with respect to
whom a child support payment was received;
(4) the total amount of current support collected
and distributed;
(5) the total amount of past due support collected
and distributed; and
(6) the total amount of support due and unpaid for
all fiscal years.
The Secretary also must report the compliance, by State,
with IV-D standards for responding to requests for child
support assistance from other States and standards for
distributing child support collections.
Senate amendment
Same, except minor difference in wording in amendment to
Section 452(a)(10).
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
27. Child Support Delinquency Penalty
Present law
No provision.
House bill
States must impose an annual penalty of 10 percent on
overdue support owed by noncustodial parents. The penalty is
paid after the family has been repaid all arrearages and after
the State has been repaid for welfare payments, if any, made to
families.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment by
dropping this penalty provision.
Subtitle F--Establishment and Modification of Support Orders
28. Simplified Process for Review and Adjustment of Child Support
Orders
Present law
A child support order legally obligates noncustodial
parents to provide financial support for their child and
stipulates the amount of the obligation and how it is to be
paid. In 1984, P.L. 98-378 required States to establish
guidelines for establishing child support orders. In 1988, P.L.
100-485 made the guidelines binding on judges and other
officials who had authority to establish support orders. P.L.
100-485 also required States to review and adjust individual
child support orders once every three years under some
circumstances. States are required to notify both resident and
nonresident parents of their right to a review.
House bill
States must review and, as appropriate, adjust child
support orders at the request of the parents. In the case of
orders being enforced against parents whose children are
receiving benefits under Title IV-A of the Social Security Act,
States may also review the order at their own option. No proof
of change of circumstances is needed to initiate the review.
States may adjust child support orders by either applying the
State guidelines and updating the award amount or by applying a
cost of living increase to the order. In the latter case, both
parties must be given 30 days after notice of adjustment to
contest the results. States may use automated methods to
identify orders eligible for review, conduct the review,
identify orders eligible for adjustment, and apply the
appropriate adjustment to the orders based on the threshold
established by the State. States are required to give parties
one notice of their right to request review and adjustment,
which may be included in the order establishing the support
amount.
Senate amendment
Major differences in the review and adjustment
provisions; the House makes reviews optional while the Senate
retains mandatory 3-year reviews of IV-A cases as under current
law; also other differences in wording.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment. The compromise provision preserves the
mandatory review every 3 years if parents request a review but
allows States some flexibility in reviewing child support cases
in their welfare caseload.
29. Furnishing Consumer Reports for Certain Purposes Relating to Child
Support
Present law
The Fair Credit Act requires consumer reporting agencies
to include in any consumer report information on child support
delinquencies provided by or verified by a child support
enforcement agency, which antedates the report by 7 years.
House bill
This section amends the Fair Credit Reporting Act. In
response to a request by the head of a State or local child
support agency (or a State or local government official
authorized by the head of such an agency), consumer credit
agencies must release information if the person making the
request makes all of the following certifications: that the
consumer report is needed to establish an individual's capacity
to make child support payments or determine the level of
payments; that paternity has been established or acknowledged;
that the consumer has been given at least 10 days notice by
certified or registered mail that the report is being
requested; and that the consumer report will be kept
confidential, will be used solely for child support purposes,
and will not be used in connection with any other civil,
administrative, or criminal proceeding or for any other
purpose. Consumer reporting agencies must also give reports to
a child support agency for use in setting an initial or
modified award.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
30. Nonliability for Financial Institutions Providing Financial Records
Present law
No provision.
House bill
Financial institutions are not liable to any person for
information provided to child support agencies. Child support
agencies can disclose information obtained from depository
institutions only for child support purposes. There is no
liability for disclosures that result from good faith but
erroneous interpretation of this statute. However, individuals
who knowingly disclose information from financial records can
have civil actions brought against them in Federal district
court; the maximum penalty is $1,000 for each disclosure or
actual damages plus, in the case of willful disclosure
resulting from gross negligence, punitive damages, plus the
costs of the action. Definitions of ``financial institution''
and ``financial record'' are included in this section.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Subtitle G--Enforcement of Support Orders
31. Internal Revenue Service Collection of Arrearages
Present law
If the amount of overdue child support is at least $750,
the Internal Revenue Service (IRS) can enforce the child
support obligation through its regular collection process,
which may include seizure of property, freezing accounts, or
use of other procedures if child support agencies request
assistance according to prescribed rules (e.g., certifying that
the delinquency is at least $750, etc.)
House bill
The Internal Revenue Code is amended so that no
additional fees can be assessed for adjustment to previously
certified amounts for the same obligor.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
32. Authority to Collect Support From Federal Employees
Present law
Federal law allows the wages of Federal employees to be
garnished to enforce legal obligations for child support or
alimony. Federal law provides that moneys payable by the United
States to any individual are subject to being garnished in
order to meet an individual's legal obligation to provide child
support or make alimony payments. An executive order issued on
February 27, 1995 establishes the Federal government as a model
employer in promoting and facilitating the establishment and
enforcement of child support. Under the terms of the Executive
Order, all Federal agencies, including the Uniformed Services,
are required to cooperate fully in efforts to establish
paternity and child support and to enforce the collection of
child and medical support. All Federal agencies are to review
their wage withholding procedures to ensure that they are in
full compliance. Beginning no later than July 1, 1995, the
Director of the Office of Personnel Management must publish
annually in the Federal Register the list of agents (and their
addresses) designated to receive service of withholding notices
for Federal employees. Federal law states that neither the
United States nor any disbursing officer or government entity
shall be liable with respect to any payment made from moneys
due or payable from the United States pursuant to the legal
process. Federal law provides that money that may be garnished
includes compensation for personal services, whether such
compensation is denominated as wages, salary, commission,
bonus, pay, or otherwise, and includes but is not limited to,
severance pay, sick pay, incentive payments, and periodic
payments. Includes definitions of ``United States'', ``child
support'', ``alimony'', ``private person'', and ``legal
process''.
House bill
Consolidation and Streamlining of Authorities:
(1) Federal employees are subject to wage withholding and
other actions taken against them by State child support
enforcement agencies.
(2) Federal agencies are responsible for the same wage
withholding and other child support actions taken by the State
as if they were a private employer.
(3) The head of each Federal agency must designate an
agent and place the agent's name, title, address, and telephone
number in the Federal Register annually. The agent must, upon
receipt of process, send written notice to the individual
involved as soon as possible, but no later than 15 days, and to
comply with any notice of wage withholding or respond to other
process within 30 days. The agent also must respond to any
order, process, or interrogatory about child support or alimony
within 30 days after effective service of such requests.
(4) Current law governing allocation of moneys owed by a
Federal employee is amended to give priority to child support,
to require allocation of available funds, up to the amount
owed, among child support claimants, and to allocate remaining
funds to other claimants on a first-come, first-served basis.
(5) A government entity served with notice of process for
enforcement of child support is not required to change its
normal pay and disbursement cycle to comply with the legal
process.
(6) Similar to current law, the U.S., the government of
the District of Columbia, and disbursing officers are not
liable for child support payments made in accord with this
section; nor is any Federal employee subject to disciplinary
action or civil or criminal liability for disclosing
information while carrying out the provisions of this section.
(7) The President has the authority to promulgate
regulations to implement this section as it applies to Federal
employees of the Administrative branch of government; the
President Pro Tempore of the Senate and Speaker of the House
can issue regulations governing their employees; and the Chief
Justice can issue regulations applicable to the Judicial
branch.
(8) This section broadens the definition of income to
include, in addition to wages, salary, commissions, bonus pay,
allowances, severance pay, sick pay, and incentive pay, funds
such as insurance benefits, retirement and pension pay
(including disability pay if the veteran has waived a portion
of retirement pay to receive disability pay), survivor's
benefits, compensation for death and black lung disease,
veteran's benefits, and workers' compensation; but to exclude
from income funds paid to defray expenses incurred in carrying
out job duties; amounts owed to the U.S. or used to pay Federal
employment taxes, fines, or forfeitures ordered by court
martial; and amounts withheld for tax purposes, for health
insurance or life insurance premiums, for retirement
contributions, or for life insurance premiums.
(9) This section includes definitions of ``United
States'', ``child support'', ``alimony'', ``private person'',
and ``legal process''.
Conforming Amendments. The House provision makes several
conforming amendments to Title IV-D of the Social Security Act
and Title 5 of the United States Code.
Military Retired and Retainer Pay. The definition of
``court'' in the Armed Forces title of the U.S. Code (title 10)
is amended to include an administrative or judicial tribunal of
a State which is competent to enter child support orders, and
clarifies the definition of ``court order.'' The Secretary of
Defense is required to send withheld amounts for child support
to the appropriate State Disbursement Unit. The provision also
clarifies that military personnel who have never been married
to the parent of their child are under jurisdiction of the
State child support program and the terms of section 459 of the
Social Security Act.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
33. Enforcement of Child Support Obligations of Members of the Armed
Forces
Present law
Availability of Locator Information. The Executive Order
issued February 27, 1995 requires a study which would include
recommendations on how to improve service of process for
civilian employees and members of the Uniformed Services
stationed outside the United States.
Facilitating Granting of Leave for Attendance at
Hearings. No provision.
Payment of Military Retired Pay in Compliance with Child
Support Orders. Federal law requires allotments from the pay
and allowances of any member of the uniformed service when the
member fails to pay child (or child and spousal) support
payments.
House bill
Availability of Locator Information. The Secretary of
Defense must establish a central personnel locator service that
contains residential or, in specified instances, duty addresses
of every member of the Armed Services (including members of the
Coast Guard, if requested). The locator service must be updated
within 30 days of the time an individual establishes a new
address. Information from the locator service must be made
available upon request to the Federal Parent Locator Service.
Facilitating Granting of Leave for Attendance at
Hearings. The Secretary of each military department must issue
regulations to facilitate granting of leave for members of the
Armed Services to attend hearings to establish paternity or to
establish child support orders. The terms ``court'' and ``child
support'' are defined.
Payment of Military Retired Pay in Compliance with Child
Support Orders. Child support orders received by the Secretary
do not have to have been recently issued. The Secretary of each
branch of the Armed Forces (including retirees, the Coast
Guard, the National Guard, and the Reserves) is required to
make child support payments from military retirement pay
directly to any State to which a custodial parent has assigned
support rights as a condition of receiving public assistance.
Payments to satisfy current support or child support arrears
must be made from disposable retirement pay. Payroll deductions
must begin within 30 days or the first pay period after 30 days
of receiving a wage withholding order.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
34. Voiding of Fraudulent Transfers
Present law
No provision.
House bill
States must have in effect the Uniform Fraudulent
Conveyance Act of 1981, the Uniform Fraudulent Transfer Act of
1984, or an equivalent law providing for voiding transfers of
income or property that were made to avoid payment of child
support. States also must have in effect procedures under which
the State must seek to void a fraudulent transfer or obtain a
settlement in the best interest of the child support creditor.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
35. Work Requirement for Persons Owing Past-Due Child Support
Present law
Public Law 100-485 required the Secretary to grant
waivers to up to five States allowing them to provide JOBS
services on a voluntary or mandatory basis to noncustodial
parents who are unemployed and unable to meet their child
support obligations. (In their report the conferees noted that
the demonstrations would not grant any new powers to the States
to require participation by noncustodial parents. The
demonstrations were to be evaluated.)
House bill
States must have procedures under which the State has the
authority to issue an order or request that a court or
administrative process issue an order that requires individuals
owing past-due child support for a child receiving assistance
under the Temporary Family Assistance program either to pay the
support due, to have and be in compliance with a plan to pay
child support, or to participate in work activities as deemed
appropriate by the court or the child support agency. ``Past-
due support'' is defined and a conforming amendment is made to
sec. 466 of the Social Security Act.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
36. Definition of Support Order
Present law
No provision.
House bill
A support order is defined as a judgement, decree, or
order (whether temporary, final, or subject to modification)
issued by a court or an administrative agency for the support
(monetary support, health care, arrearages, or reimbursement)
of a child (including a child who has reached the age of
majority under State law) or of a child and the parent with
whom the child lives, and which may include costs and fees,
interest and penalties, income withholding, attorney's fees,
and other relief.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
37. Reporting Arrearages to Credit Bureaus
Present law
Federal law requires States to implement procedures which
require them to periodically report to consumer reporting
agencies the name of debtor parents owing at least 2 months of
overdue child support and the amount of child support overdue.
However, if the amount overdue is less than $1,000, information
regarding it shall be made available only at the option of the
State. Moreover, information may only be made available after
the noncustodial parent has been notified of the proposed
action and has been given reasonable opportunity to contest the
accuracy of the claim against him. States are permitted to
charge consumer reporting agencies that request child support
arrearage information a fee that does not exceed actual costs.
House bill
States are required to periodically report to consumer
credit reporting agencies the name of any noncustodial parent
who is delinquent in the payment of support and the amount of
overdue support owed by the parent. Before such a report can be
sent, the obligor must have been afforded all due process
rights, including notice and reasonable opportunity to contest
the claim of child support delinquency.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
38. Liens
Present law
Federal law requires States to implement procedures under
which liens are imposed against real and personal property for
amounts of overdue support owed by a noncustodial parent who
resides or owns property in the State.
House bill
States must have procedures under which liens arise by
operation of law against property for the amount of overdue
support. States must grant full faith and credit to liens of
other States if the originating State agency or party has
complied with procedural rules relating to the recording or
serving of liens, except such rules cannot require judicial
notice or hearing prior to enforcement of the lien.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
39. State Law Authorizing Suspension of Licenses
Present law
No provision.
House bill
States must have the authority to withhold, suspend, or
restrict the use of drivers' licenses, professional and
occupational licenses, and recreational licenses of individuals
owing past-due support or failing, after receiving appropriate
notice, to comply with subpoenas or warrants relating to
paternity or child support proceedings.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
40. Denial of Passports for Nonpayment of Child Support
Present law
No provision.
House bill
If an individual owes arrearages in excess of $5,000 of
child support, the Secretary of HHS must request that the State
Department deny, revoke, restrict, or limit the individual's
passport. State child support agencies must have procedures for
certifying to the Secretary arrearages in excess of $5,000 and
for notifying individuals who are in arrears and providing them
with an opportunity to contest. These provisions become
effective on October 1, 1997.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
41. International Child Support Enforcement
Present law
No provision.
House bill
(1) The Secretary of State, with concurrence of the
Secretary of HHS, is authorized to declare reciprocity with
foreign countries having requisite procedures for establishing
and enforcing support orders. The Secretary may revoke
reciprocity if she determines that the enforcement procedures
do not continue to meet the requisite criteria.
(2) The requirements for reciprocity include procedures
in the foreign country for U.S. residents--available at no
cost--to establish parentage, to establish and enforce support
orders for children and custodial parents, and to distribute
payments.
(3) An agency of the foreign country must be designated a
central authority responsible for facilitating support
enforcement and ensuring compliance with standards by both U.S.
residents and residents of the foreign country.
(4) The Secretary in consultation with the States, may
establish additional standards that she judges necessary to
promote effective international support enforcement.
(5) The Secretary of HHS is required to facilitate
enforcement services in international cases involving residents
of the United States and of foreign reciprocating countries,
including developing uniform forms and procedures, providing
information from the FPLS on the State of residence of the
obligor, and providing such other oversight, assistance, or
coordination as she finds necessary and appropriate.
(6) Where there is no Federal reciprocity agreement,
States are permitted to enter into reciprocal agreements with
foreign countries.
(7) The State plan must provide that request for services
in international cases be treated the same as interstate cases,
except that no application will be required and no costs will
be assessed against the foreign country or the obligee (costs
may be assessed at State option against the obligor).
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
42. Financial Institution Data Matches
Present law
No provision.
House bill
States are required to implement procedures under which
the State child support agency must enter into agreements with
financial institutions doing business within the State to
develop and operate a data match system, using automated data
exchanges to the maximum extent feasible, in which such
financial institutions are required to provide for each
calendar quarter the name, address, Social Security number, and
other identifying information for each noncustodial parent
identified by the State who has an account at the institution
and owes past-due child support. In response to a notice of
lien or levy, the financial institution must encumber or
surrender assets held by the institution on behalf of the
noncustodial parent who is subject to the child support lien.
The State agency may pay a fee to the financial institution.
The financial institution is not liable for activities taken to
implement the provisions of this section. Definitions of the
terms ``financial institution'' and ``account'' are included.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
43. Enforcement of Orders Against Paternal or Maternal Grandparents in
Cases of Minor Parents
Present law
No provision. However, Wisconsin and Hawaii have State
laws that make grandparents financially responsible for their
minor children's dependents.
House bill
With respect to a child of minor parents receiving
support from the Temporary Assistance for Needy Families Block
Grant, States have the option to enforce a child support order
against the parents of the minor noncustodial parent.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
44. Nondischargeability in Bankruptcy of Certain Debts for the Support
of a Child
Present law
Although child support payments may not be discharged in
a filing of bankruptcy (i.e., the debtor parent cannot escape
her child support obligation by filing a bankruptcy petition),
a bankruptcy filing may cause long delays in securing child
support payments. Pursuant to P.L. 103-394, a filing of
bankruptcy will not stay a paternity, child support, or alimony
proceeding. In addition, child support and alimony payments
will be priority claims and custodial parents will be able to
appear in bankruptcy court to protect their interests without
paying a fee or meeting any local rules for attorney
appearances.
House bill
Title 11 of the U.S. Code and Title IV-D of the Social
Security Act are amended to ensure that a debt owed to the
State ``that is in the nature of support and that is
enforceable under this part'' cannot be discharged in
bankruptcy proceedings. This amendment applies only to cases
initiated under Title 11 after enactment of this Act.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
45. Child Support Enforcement for Indian Tribes
Present law
There are about 340 federally recognized Indian tribes in
the 48 contiguous States. Among these tribes there are
approximately 130 tribal courts and 17 Courts of Indian
Offenses. Most tribal codes authorize their courts to hear
parentage and child support matters that involve at least one
member of the tribe or person living on the reservation. This
jurisdiction may be exclusive or concurrent with State court
jurisdiction, depending on specified circumstances.
House bill
No provision.
Senate amendment
Any State that has Indian country may enter into a
cooperation agreement with an Indian tribe if the tribe
demonstrates that it has an established tribal court system
with several specific characteristics. The Secretary may make
direct payments to Indian tribes that have approved child
support enforcement plans. Conforming amendments are included.
Conference agreement
The conference agreement follows the Senate amendment.
Subtitle H--Medical Support
46. Correction to ERISA Definition of Medical Child Support Order
Present law
Public Law 103-66 requires States to adopt laws that
require health insurers and employers to enforce orders for
medical and child support and that forbid health insurers from
denying coverage to children who are not living with the
covered individual or who were born outside of marriage. Under
Public Law 103-66, group health plans are required to honor
``qualified medical child support orders.''
House bill
This provision expands the definition of medical child
support order in ERISA to clarify that any judgement, decree,
or order that is issued by a court of competent jurisdiction or
by an administrative process has the force and effect of law.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
47. Enforcement of Orders for Health Care Coverage
Present law
Federal law requires the Secretary to require IV-D
agencies to petition for the inclusion of medical support as
part of child support whenever health care coverage is
available to the noncustodial parent at reasonable cost.
House bill
All orders enforced under this part must include a
provision for health care coverage. If the noncustodial parent
changes jobs and the new employer provides health coverage, the
State must send notice of coverage, which shall operate to
enroll the child in the health plan, to the new employer.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Subtitle I--Enhancing Responsibility and Opportunity for Non-
Residential Parents
48. Grants to States for Access and Visitation Programs
Present law
In 1988, Congress authorized the Secretary to fund for
fiscal year 1990 and fiscal year 1991 demonstration projects by
States to help divorcing or never-married parents cooperate
with each other, especially in arranging for visits between the
child and the nonresident parent.
House bill
This proposal authorizes grants to States for access and
visitation programs including mediation, counseling, education,
development of parenting plans, and visitation enforcement.
Visitation enforcement can include monitoring, supervision,
neutral drop-off and pick-up, and development of guidelines for
visitation and alternative custody agreements. An annual
entitlement of $10 million is appropriated for these grants.
The amount of the grant to a State is equal to either 90
percent of the State expenditures during the year for access
and visitation programs or the allotment for the State for the
fiscal year. The allotment to the State bears the same ratio to
the amount appropriated for the fiscal year as the number of
children in the State living with one biological parent divided
by the national number of children living with one biological
parent. The Administration for Children and Families must
adjust allotments to ensure that no State is allotted less than
$50,000 for fiscal years 1997 or 1998 or less than $100,000 for
any year after 1998. Projects are required to supplement rather
than supplant State funds. States may use the money to create
their own programs or to fund grant programs with courts, local
public agencies, or nonprofit organizations. The programs do
not need to be Statewide. States must monitor, evaluate, and
report on their programs in accord with regulations issued by
the Secretary.
Senate amendment
Same, except delays the effective date for 1 year.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment except that the House effective date is
followed.
Subtitle J--Effective Dates and Conforming Amendments
49. Effective Dates and Conforming Amendments
Present law
No provision.
House bill
Except as noted in the text of the House proposal for
specific provisions, the general effective date for provisions
in the proposal is October 1, 1996. However, given that many of
the changes required by this proposal must be approved by State
Legislatures, the proposal contains a grace period tied to the
meeting schedule of State Legislatures. In any given State, the
proposal becomes effective either on October 1, 1996 or on the
first day of the first calendar quarter after the close of the
first regular session of the State Legislature that begins
after the date of enactment of the proposal. In the case of
States that require a constitutional amendment to comply with
the requirements of the proposal, the grace period is extended
either for one year after the effective date of the necessary
State constitutional amendment or five years after the date of
enactment of the proposal. This section contains several
conforming amendments to title IV-D of the Social Security Act.
This section also replaces the term ``absent parent'' with
``noncustodial parent'' each place it occurs in title IV-D.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Title IV: Restricting Welfare and Public Benefits for Aliens
1. Statements of National Policy Concerning Welfare and Immigration
Present law
No provision.
House bill
The Congress makes several statements concerning national
policy with respect to welfare and immigration. These include
the affirmation that it continues to be the immigration policy
of the United States that noncitizens within the Nation's
borders not depend on public resources, that noncitizens
nonetheless have been applying for and receiving public
benefits at increasing rates, and that it is a compelling
government interest to enact new eligibility and sponsorship
rules to assure that noncitizens become self-reliant and to
remove any incentive for illegal immigration.
Senate amendment
Similar to House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Subtitle A--Eligibility for Federal Benefits
2. Aliens Who Are Not Qualified Aliens Ineligible for Federal Public
Benefits
Present law
Current law limits alien eligibility for most major
Federal assistance programs, including restrictions on, among
other programs, Supplemental Security Income, Aid to Families
with Dependent Children, housing assistance, and Food Stamps
programs. Current law is silent on alienage under, among other
programs, school lunch and nutrition, the Special Supplemental
Food Program for Women, Infants, and Children (WIC), Head
Start, migrant health centers, and the earned income credit.
Under the programs with restrictions, benefits are generally
allowed for permanent resident aliens (also referred to as
immigrants and green card holders), refugees, asylees, and
parolees, but benefits (other than emergency Medicaid) are
denied to nonimmigrants (or aliens lawfully admitted
temporarily as, for example, tourists, students, or temporary
workers) and illegal aliens. Benefits are permitted under AFDC,
SSI, unemployment compensation, and nonemergency Medicaid to
other aliens permanently residing in the United States under
color of law (PRUCOL).
House bill
Noncitizens who are ``not qualified aliens'' (generally,
illegal immigrants and nonimmigrants such as students) are
ineligible for all Federal public benefits, with limited
exceptions for emergency medical services, emergency disaster
relief, immunizations and testing and treatment of symptoms of
communicable diseases, community programs necessary for the
protection of life or safety, certain housing benefits (only
for current recipients), licenses and benefits directly related
to work for which a nonimmigrant has been authorized to enter
the U.S, and certain Social Security retirement benefits
protected by treaty or statute.
Federal public benefits include: any grant, contract,
loan, professional license or commercial license, and any
retirement, welfare, health, disability, food assistance,
unemployment or similar benefit provided by an agency or
appropriated funds of the United States.
Senate amendment
Similar to House, except that the exception for
communicable diseases is limited to treatment of the disease
itself and must be triggered by a finding by HHS that testing
and treatment of a particular disease is necessary to prevent
its spread.
Conference agreement
The conference agreement follows the House bill.
The allowance for treatment of communicable diseases is
very narrow. The conferees intend that it only apply where
absolutely necessary to prevent the spread of such diseases.
This is only a stop-gap measure until the deportation of a
person or persons unlawfully here. It is not intended to
provide authority for continued treatment of such diseases for
a long term.
The allowance for emergency medical services under
Medicaid is very narrow. The conferees intend that it only
apply to medical care that is strictly of an emergency nature,
such as medical treatment administered in an emergency room,
critical care unit, or intensive care unit. The conferees do
not intend that emergency medical services include pre-natal or
delivery care assistance that is not strictly of an emergency
nature as specified herein.
The intent of the conferees is that title I, part A of
the Elementary and Secondary Education Act would not be
affected by section 401 because the benefit is not provided to
an individual, household, or family eligibility unit.
3. Limited Eligibility of Qualified Aliens for Certain Federal Programs
Present law
With the exception of certain buy-in rights under
Medicare, immigrants (or aliens) lawfully admitted for
permanent residence are eligible for major Federal benefits,
but the ability of some immigrants to meet the needs tests for
SSI, AFDC, and food stamps may be affected by the sponsor-to-
alien deeming provisions discussed below. Refugees, asylees,
and parolees also generally are eligible. Benefits are
permitted under AFDC, SSI, unemployment compensation, and
nonemergency Medicaid to other aliens permanently residing in
the United States under color of law (PRUCOL).
House bill
Legal noncitizens who are ``qualified aliens'' (i.e.,
permanent resident aliens, refugees, asylees, aliens paroled
into the United States for a period of at least 1 year, and
aliens whose deportation has been withheld) are ineligible for
SSI, Medicaid, and food stamp benefits until they attain
citizenship, with exceptions noted below. States are given the
option of similarly restricting Federal cash welfare and Title
XX benefits for qualified aliens, with the exception of those
who are receiving benefits on the date of enactment as
described below.
Refugees, asylees, and aliens whose deportation has been
withheld are excepted for 5 years after being granted their
respective statuses. Also excepted are legal permanent
residents who have worked (in combination with their spouse and
parents) for at least 10 years, and noncitizens who are
veterans or on active duty or their spouse or unmarried child.
To allow individuals time to adjust to the revised
policy, otherwise restricted aliens who are receiving SSI, food
stamps, cash welfare, Medicaid or Title XX benefits on the date
of enactment would remain eligible for at most 1 year after
enactment. However, if a review determines the noncitizen would
be ineligible if enrolling under the revised standards for SSI,
Medicaid, and food stamps (for example, because the noncitizen
failed to qualify under the refugee or work exemptions) such
benefits would cease immediately. States have the option of
ending cash welfare and social services benefits for current
recipients after January 1, 1997.
Senate amendment
Similar to House bill, except that Medicaid is included
among the programs subject to State option rather than a
blanket bar.
Conference agreement
The conference agreement follows the Senate amendment.
4. Five-Year Limited Eligibility of Qualified Aliens for Federal Means-
Tested Public Benefit
Present law
See above.
House bill
The proposal restricts most Federal means-tested benefits
(including SSI, food stamps, cash welfare, Medicaid, and title
XX social services benefits) for permanent resident aliens who
arrive after the date of enactment for their first 5 years in
the United States. Programs that are not restricted to legal
noncitizens arriving in the future include emergency medical
services, non-cash emergency disaster relief, school lunch and
child nutrition benefits, immunizations and testing and
treatment for symptoms of communicable diseases, foster care
and adoption payments under parts B and E of Title IV of the
Social Security Act, community programs for the protection of
life or safety, certain elementary and secondary education
programs, Head Start, the Job Training Partnership Act, and
higher education grants and loans.
Exceptions are made for refugees, asylees, aliens whose
deportation is being withheld, and noncitizens who are
veterans, on active duty, or the spouse or unmarried child of
such an individual.
Senate amendment
Excepted programs are similar to the House with the
following differences:
(1) benefits under Head Start Act and the Job
Training Partnership Act are not excepted;
(2) the exception for foster care and adoption
assistance is limited to Part E of Title IV of the
Social Security Act;
(3) the exception for testing and treatment of
communicable diseases is more limited and must be
triggered by a finding by HHS that detection and
treatment of a particular disease is necessary to
prevent its spread; and
(4) includes an exception for education assistance
under titles III, VII, and VIII of the Public Health
Service Act.
Excepted classes are similar to House bill.
Conference agreement
The conference agreement follows the House bill and
Senate amendment as follows. (1) The definition of Federal
Means Tested Public Benefit (defined as ``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'') was deleted due to the
Byrd rule. It is the intent of conferees that this definition
be presumed to be in place for purposes of this title. (2)
Regarding excepted programs, the conference agreement follows
the House bill on testing and treatment of communicable
diseases and by adding Head Start and the Job Training
Partnership Act as excepted programs; the conference agreement
adds refugee and entrant assistance as an excepted program; and
the conference agreement follows the Senate amendment by adding
education assistance under titles III, VII, and VIII of the
Public Health Services Act as an excepted program.
5. Notification and Information Reporting
Present law
Notification. Under regulation, individual advance
written notice must be given of an intent to suspend, reduce,
or terminate SSI benefits.
Information Reporting. AFDC and SSI restrict the use or
disclosure of information concerning applicants and recipients
to purposes connected to the administration of needs-based
Federal programs.
House bill
Each Federal agency that administers an affected program
shall post information and provide general notification to the
public and to program recipients of changes regarding
eligibility.
Agencies that administer SSI, housing assistance programs
under the United States Housing Act of 1937, or block grants
for temporary assistance for needy families (the successor
program to AFDC) are required to furnish information about
aliens they know to be unlawfully in the United States to the
Immigration and Naturalization Service (INS) at least four
times annually and upon INS request.
Senate amendment
Similar to House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Subtitle B--Eligibility for State and Local Public Benefits Programs
6. Aliens Who Are Not Qualified Aliens or Nonimmigrants Ineligible for
State and Local Public Benefits
Present law
Under Plyler vs. Doe (457 U.S. 202 (1982)), States may
not deny illegal alien children access to a public elementary
education without authorization from Congress. However, the
narrow 5-4 Supreme Court decision may imply that illegal aliens
may be denied at least some State benefits and that Congress
may influence the eligibility of illegal aliens for State
benefits. Many, but not all, State general assistance laws
currently deny illegal aliens means-tested general assistance.
House bill
Illegal aliens are ineligible for all State and local
public benefits, with limited exceptions for emergency medical
services, emergency disaster relief, immunizations and testing
and treatment for symptoms of communicable diseases, and
programs necessary for the protection of life or safety. States
may, however, pass laws after the date of enactment that
specify that illegal aliens may be eligible for certain State
or local benefits that otherwise would be denied under this
section.
Senate amendment
Similar to House bill, except that the exception for
communicable diseases is more limited and must be triggered by
a finding by HHS that testing and treatment of a particular
disease is necessary to prevent its spread.
Conference agreement
The conference agreement follows the House bill.
No current State law, State constitutional provision,
State executive order or decision of any State or Federal court
shall provide a sufficient basis for a State to be relieved of
the requirement to deny benefits to illegal aliens. Laws,
ordinances, or executive orders passed by county, city or other
local officials will not allow those entities to provide
benefits to illegal aliens. Only the affirmative enactment of a
law by a State legislature and signed by the Governor after the
date of enactment of this Act, that references this provision,
will meet the requirements of this section.
The phrase ``affirmatively provides for such
eligibility'' means that the State law enacted must specify
that illegal aliens are eligible for State or local benefits.
Persons residing under color of law shall be considered to be
aliens unlawfully present in the United States and are
prohibited from receiving State or local benefits, as defined,
regardless of the enactment of any State law.
The conference agreement provides that no State or local
government entity shall prohibit, or in any way restrict, any
entity or official from sending to or receiving from the INS
information regarding the immigration status of an alien or the
presence, whereabouts, or activities of illegal aliens. It does
not require, in and of itself, any government agency or law
enforcement official to communicate with the INS.
The conferees intend to give State and local officials
the authority to communicate with the INS regarding the
presence, whereabouts, or activities of illegal aliens. This
provision is designed to prevent any State or local law,
ordinance, executive order, policy, constitutional provision,
or decision of any Federal or State court that prohibits or in
any way restricts any communication between State and local
officials and the INS. The conferees believe that immigration
law enforcement is as high a priority as other aspects of
Federal law enforcement, and that illegal aliens do not have
the right to remain in the United States undetected and
unapprehended.
7. State Authority to Limit Eligibility of Qualified Aliens for State
Public Benefits
Present law
Under Graham v. Richardson (403 U.S. 365 (1971)), States
may not deny legal permanent residents State-funded assistance
that is provided to equally needy citizens without
authorization from Congress.
Currently, there is no Federal law barring legal
temporary residents (i.e., nonimmigrants) from State and local
needs-based programs. In general, States are restricted in
denying assistance to nonimmigrants where the denial is
inconsistent with the terms under which the nonimmigrants were
admitted. Where a denial of benefits is not inconsistent with
Federal immigration law, however, States have broader authority
to deny benefits and States often do deny certain benefits to
nonimmigrants. Also, aliens in most nonimmigrant categories
generally may have difficulty qualifying for many State and
local benefits because of requirements that they be State
``residents.''
House bill
States are authorized to determine the eligibility of
``qualified aliens,'' nonimmigrants, and aliens paroled into
the United States for less than 1 year for any State or local
means-tested public benefit program. Noncitizens receiving
State and local benefits on the date of enactment would remain
eligible for benefits until January 1, 1997.
Exceptions to State authority to deny benefits are made
for refugees, asylees and aliens whose deportation has been
withheld (for 5 years), permanent resident aliens who have
worked in the United States (in combination with their spouse
or parents) for at least 10 years, and noncitizens who are
veterans or on active duty or their spouse or unmarried child.
Senate amendment
Similar to House bill, except that under Byrd rule the
definition of ``State public benefits'' (sec. 2412(c)) is
deleted.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment. The conference agreement does not include a
definition of State public benefits in this section because the
definition was dropped due to the Byrd rule. However, it is the
intent of House and Senate conferees that the following
definition be used by States in carrying out the authority
granted by this section: ``State Public Benefits Defined.--The
term `State public benefits' means any means-tested public
benefits 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
8. Federal Attribution of Sponsor's Income and Resources to Alien
Present law
Federal Benefits. In determining whether an alien meets
the means test for AFDC, SSI (except in cases of blindness or
disability occurring after entry), and food stamps, the
resources and income of an individual who filed an affidavit of
support (``sponsor'') for the alien (and the income and
resources of the individual's spouse) are taken into account
during a designated period after entry. Sponsor-to-alien
deeming provisions were added to these three programs in part
because several courts have found that affidavits of support,
under current practice, do not obligate sponsors to reimburse
government agencies for benefits provided to sponsored aliens.
See below.
Amounts of Income and Resources Deemed. While the offset
formulas vary among the programs, the amount of income and
resources deemed under AFDC, SSI, and Food Stamps is reduced by
certain offsets to provide for some of the sponsor's own needs.
Length of Deeming Period. For AFDC and Food Stamps,
sponsor-to-alien deeming applies to a sponsored alien seeking
assistance within 3 years of entry. Through September 1996,
sponsor-to-alien deeming applies to a sponsored alien seeking
SSI within 5 years of entry, after which the deeming period
reverts to 3 years.
Review Upon Reapplication. Regulations implementing the
food stamp program expressly require providing information on a
sponsor's resources as part of recertification.
Application. No provision.
House bill
Federal Benefits. During the applicable deeming period
(see ``Length of Deeming Period'' below), the income and
resources of a sponsor and the sponsor's spouse are to be taken
into account under all Federally-funded means-tested programs
(with the exception of the programs below) in determining the
sponsored individual's neediness. Excepted programs are
emergency medical services, emergency disaster relief, school
lunch and child nutrition assistance, immunizations and testing
and treatment for symptoms of communicable diseases, certain
programs that protect life, safety, or public health, certain
foster care and adoption assistance, Head Start, Job Training
Partnership Act programs, certain elementary and secondary
education programs, and higher education grants and loans.
Amounts of Income and Resources Deemed. The full income
and resources of the sponsor and the sponsor's spouse are
deemed to be that of the sponsored alien.
Length of Deeming Period. Deeming extends until
citizenship, unless the noncitizen has worked for at least 10
years in the United States (either individually or in
combination with the noncitizen's spouse and parents).
Review Upon Reapplication. Whenever a sponsored
noncitizen is required to reapply for benefits under any
Federal means-tested public benefits program, the agency must
review the income and resources deemed to the sponsored
noncitizen.
Application. For programs that already deem income and
resources on the date of enactment, the changes in this section
apply immediately; other programs must implement changes
required within 180 days after the date of enactment.
Senate amendment
Federal Benefits. Under the Byrd rule, the definition of
``Federal means-tested program'' (sec. 2403(c)(1)) is deleted.
Otherwise similar to House bill, with differences in
exceptions to Federal means-tested programs noted above for the
5-year bar.
Amounts of Income and Resources Deemed. Similar to House
bill.
Length of Deeming Period. Similar to House bill.
Review Upon Reapplication. Similar to House bill.
Application. Similar to House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment, with the modification of certain additional
excepted programs as noted in item 4 above.
The allowance for treatment of communicable diseases is
very narrow. The conferees intend that it only apply where
absolutely necessary to prevent the spread of such diseases.
This is only a stop-gap measure until the deportation of a
person or persons unlawfully here. It is not intended to
provide authority for continued treatment of such diseases for
a long term.
The allowance for emergency medical services under
Medicaid is very narrow. The conferees intend that it only
apply to medical care that is strictly of an emergency nature,
such as medical treatment administered in an emergency room,
critical care unit, or intensive care unit. The conferees do
not intend that emergency medical services include pre-natal or
delivery care assistance that is not strictly of an emergency
nature as specified herein.
9. Authority for States to Provide for Attribution of Sponsor's Income
and Resources to the Alien with Respect to State Programs
Present law
The highest courts of at least two States have held that
the Supreme Court decision barring State discrimination against
legal aliens in providing State benefits without Federal
authorization (Graham v. Richardson, 403 U.S. 365 (1971))
prohibits State sponsor-to-alien deeming requirements for State
benefits.
House bill
State and local governments may, for the deeming period
that applies to Federal benefits, deem a sponsor's income and
resources (and those of the sponsor's spouse) to a sponsored
individual in determining eligibility for and the amount of
needs-based benefits. State and local governments may not
require deeming for the following State public benefits:
emergency medical services, emergency disaster relief, school
lunch and child nutrition assistance, immunizations and testing
and treatment for symptoms of communicable diseases, foster
care and adoption payments, and certain programs to protect
life and safety.
Senate amendment
Similar to House bill, except that the exception for
communicable diseases is limited to testing and treatment of
the disease itself and must be triggered by a finding by the
chief State health official that it is necessary to prevent
spread of the disease.
Conference agreement
The conference agreement follows the House bill.
10. Requirements for Sponsor's Affidavit of Support
Present law
In General. Administrative authorities may request an
affidavit of support on behalf of an alien seeking permanent
residency pursuant to regulation. Requirements for affidavits
of support are not specified by statute.
Under the Immigration and Nationality Act, an alien who
is likely to become a public charge may be excluded from entry
unless this restriction is waived, as is the case for refugees.
By regulation and administrative practice, the State Department
and the Immigration and Naturalization Service permit a
prospective permanent resident alien (also immigrant or green
card holder) who otherwise would be excluded as a public charge
(i.e., because of insufficient means or prospective income) to
overcome exclusion through an affidavit of support or similar
document executed by an individual in the United States
commonly called a ``sponsor.'' It has been reported that
roughly one-half of the aliens who obtain legal permanent
resident status have had affidavits of support filed on their
behalf.
Various State court decisions and decisions by
immigration courts have held that the affidavits of support, as
currently constituted, do not impose a binding obligation on
the sponsor to reimburse State agencies providing aid to the
sponsored alien.
Forms. No statutory provision. The Department of Justice
issues a form (Form I-134) that complies with current
sponsorship guidelines.
Notification of Change of Address. There is no express
requirement under current administrative practice that sponsors
inform welfare agencies of a change in address. However, a
sponsored alien who applies for benefits for which deeming is
required must provide various information regarding the alien's
sponsor.
Reimbursement of Government Expenses. Various State court
decisions and decisions by immigration courts have held that
these affidavits, as currently constituted, do not impose a
binding obligation on the sponsor to reimburse State agencies
providing aid to the sponsored alien.
Definitions. There are no firm administrative
restrictions on eligibility to execute an affidavit of support.
There is no definition of ``Means-tested Public Benefits
Program''.
Effective Date. No provision.
Benefits Not Subject to Reimbursement. No provision.
House bill
In General. The proposal provides that when affidavits of
support are required, they must comply with the following:
Affidavits of support must be executed as contracts that
are legally enforceable against sponsors by Federal, State, and
local agencies with respect to any means-tested benefits (with
exceptions noted below) paid to sponsored aliens before they
become citizens.
Affidavits of support must be enforceable against the
sponsor by the sponsored alien.
Reimbursement shall be requested for all Federal, State
or local need-based programs with the exceptions noted below.
To qualify to execute an affidavit of support, an
individual must meet the revised definition of sponsor below.
Governmental entities that provide benefits may seek
reimbursement up to 10 years after a sponsored alien last
receives benefits.
Sponsorship extends until the alien becomes a citizen.
Forms. The Attorney General, in consultation with the
Secretary of State and the Secretary of HHS, shall formulate an
affidavit of support within 90 days after enactment, consistent
with this section.
Notification of Change of Address. Until they no longer
are potentially liable for reimbursement of benefits paid to
sponsored individuals, sponsors must notify the Attorney
General and the State, district, territory or possession in
which the sponsored individual resides of any change of their
address within 30 days of moving. Failure to notify may result
in a civil penalty of up to $2,000 or, if the failure occurs
after knowledge that the sponsored individual has received a
reimbursable benefit, of up to $5,000.
Reimbursement of Government Expenses. If a sponsored
alien receives any benefit under any means-tested public
assistance program, the appropriate Federal, State, or local
official shall request reimbursement by the sponsor in the
amount of such assistance. Thereafter the official may seek
reimbursement in court if the sponsor fails to respond within
45 days of the request that the sponsor is willing to begin
repayments. The official also may seek reimbursement through
the courts within 60 days after a sponsor fails to comply with
the terms of repayment. The Attorney General in consultation
with the Secretary of HHS, shall prescribe regulations on
requesting reimbursement. No action may be brought later than
10 years after the alien last received benefits.
Definitions. A ``sponsor'' is a citizen or an alien
lawfully admitted to the United States for permanent residence
who petitioned for immigration preference for the sponsored
alien, is at least 18 years of age, and resides in any State.
A ``Means-Tested Public Benefits Program'' is a program
of public benefits of the Federal, State or local government in
which eligibility for or the amount of, benefits or both are
determined on the basis of income, resources, or financial
need.
Effective Date. The changes regarding affidavits of
support shall apply to affidavits of support executed no
earlier than 60 days or later than 90 days after the Attorney
General promulgates the form.
Benefits Not Subject to Reimbursement. Governmental
entities cannot seek reimbursement with respect to:
emergency medical services;
emergency disaster relief;
school lunch and child nutrition assistance;
payments for foster care and adoption assistance;
immunizations and testing for and treatment of
communicable diseases;
certain programs that protect life, safety, or
public health;
postsecondary education benefits;
means-tested elementary and secondary education
programs;
Head Start; and
Job Training Partnership Act programs.
Senate amendment
In General. Under the Byrd rule, the definition of
``means-tested public benefits program'' (sec. 2423(a)) is
deleted. Otherwise similar to House bill.
Forms. Similar to House bill.
Notification of Change of Address. Similar to House bill.
Reimbursement of Government Expenses. Similar to House
bill.
Definitions. Similar to House bill. Definition for
``Means-tested public benefits program'' deleted under the Byrd
rule.
Effective Date. Similar to House bill.
Benefits Not Subject to Reimbursement. Similar to House
bill except:
does not add Head Start and Job Training
Partnership Act programs to the list of excepted
programs;
the exception for foster care and adoption
assistance is limited to part E of Title IV of the
Social Security Act;
the exception for testing and treatment of a
communicable disease is more limited and must be
triggered by a finding by HHS that it is necessary to
prevent the disease's spread; and
adds exception for education assistance under
titles III, VII, and VIII of the Public Health Service
Act.
Conference agreement
The conference agreement generally follows the House bill
and Senate amendment. The definition of Means-Tested Public
Benefits Program (defined as ``a public benefit (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'') for purposes of this
section was deleted due to the Byrd rule. It is the intent of
conferees that this definition be presumed to be in place for
purposes of this title. With regard to excepted programs, the
conference agreement follows the House bill on testing and
treatment of communicable diseases and by adding Head Start and
Job Training Partnership Act as excepted programs; the
conference agreement follows the Senate amendment by adding
education assistance under titles III, VII, and VIII of the
Public Health Services Act as an excepted program.
Subtitle D--General Provisions
11. Definitions
Present law
In General. Federal assistance programs that have alien
eligibility restrictions generally reference specific classes
defined in the Immigration and Nationality Act.
Qualified Alien. Some programs allow benefits for
otherwise eligible aliens who are ``permanently residing under
color of law (PRUCOL).'' This term is not defined under the
Immigration and Nationality Act, and there has been some
inconsistency in determining which classes of aliens fit within
the PRUCOL standard.
House bill
In General. Unless otherwise provided, the terms used in
this title have the same meaning as defined in Section 101(a)
of the Immigration and Nationality Act.
Qualified Alien. An alien who is a lawful permanent
resident, refugee, asylee, or an alien who has been paroled
into the United States for at least 1 year.
Senate amendment
In General. Similar to House bill.
Qualified Alien. Similar to House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
12. Verification of Eligibility for Federal Public Benefits
Present law
State agencies that administer most major Federal
programs with alienage restrictions generally use the SAVE
(Systematic Alien Verification for Entitlements) system to
verify the immigration status of aliens applying for benefits.
House bill
The Attorney General must adopt regulations to verify the
lawful presence of applicants for Federal benefits no later
than 18 months after enactment. States must have a verification
system that complies with these regulations within 24 months of
their adoption, and must authorize necessary appropriations.
Senate amendment
Similar to House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
13. Statutory Construction
Present law
No provision.
House bill
This title addresses only program eligibility based on
alienage and does not address whether any individual meets
other eligibility criteria. This title does not address alien
eligibility for basic education or for any program of foreign
assistance.
Senate amendment
Similar to House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
14. Communication Between State and Local Government Agencies and the
Immigration and Naturalization Service
Present law
The confidentiality provisions of various State statutes
may prohibit disclosure of immigration status obtained under
them. Some Federal laws, including the Family Education Rights
and Protection Act, may deny funds to certain State and local
agencies that disclose a protected individual's immigration
status. Various localities have enacted laws preventing local
officials from disclosing the immigration status of individuals
to INS.
House bill
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.
Senate amendment
Similar to House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
15. Qualifying Quarters
Present law
No provision.
House bill
In determining whether an alien may qualify for benefits
under the exception for individuals who have worked at least 40
quarters while in the United States (see sections 402 and 421
above), work performed by parents and spouses may be credited
to aliens under certain circumstances. Each quarter of work
performed by the parent while an alien was under the age of 18
is credited to the alien, provided the parent did not receive
any Federal public benefits during the quarter. Similarly, each
quarter of work performed by a spouse of an alien during their
marriage is credited to the alien, if the spouse did not
receive any Federal public benefits during the quarter.
Senate amendment
Similar to House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Subtitle E--Conforming Amendments
16. Conforming Amendments Relating to Assisted Housing
Present law
No provision.
House bill
This section consists of a series of technical and
conforming amendments.
Senate amendment
Similar to House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Subtitle F--Earned Income Credit Denied to Unauthorized Employees
17. Earned Income Credit Denied to Individuals Not Authorized to be
Employed in the United States
[Note.--For further description of this and additional
earned income credit provisions, see Title IX: Miscellaneous
below.]
Present law
Certain eligible low-income workers are entitled to claim
a refundable credit of up to $3,556 in 1996 on their income tax
return. The amount of the credit an eligible individual may
claim depends upon whether the individual has one, more than
one, or no qualifying children and is determined by multiplying
the credit rate by the taxpayer's earned income up to an earned
income amount. The maximum amount of the credit is the product
of the credit rate and the earned income amount. For taxpayers
with earned income (or adjusted gross income (AGI), if greater)
in excess of the beginning of the phaseout range, the maximum
credit amount is reduced by the phaseout rate multiplied by the
amount of earned income (or AGI, if greater) in excess of the
beginning of the phaseout range. For taxpayers with earned
income (or AGI, if greater) in excess of the end of the
phaseout range, no credit is allowed.
In order to claim the credit, an individual must either
have a qualifying child or meet other requirements. A
qualifying child must meet a relationship test, an age test, an
identification test, and a residence test. In order to claim
the credit without a qualifying child, an individual must not
be a dependent and must be over age 24 and under age 65.
To satisfy the identification test, individuals must
include on their tax return the name and age of each qualifying
child. For returns filed with respect to tax year 1996,
individuals must provide a taxpayer identification number (TIN)
for all qualifying children born on or before November 30,
1996. For returns filed with respect to tax year 1997 and all
subsequent years, individuals must provide TINs for all
qualifying children, regardless of their age. An individual's
TIN is generally that individual's social security number.
The Internal Revenue Service may summarily assess
additional tax due as a result of a mathematical or clerical
error without sending the taxpayer a notice of deficiency and
giving the taxpayer an opportunity to petition the Tax Court.
Where the IRS uses the summary assessment procedure for
mathematical or clerical errors, the taxpayer must be given an
explanation of the asserted error and a period of 60 days to
request that the IRS abate its assessment. The IRS may not
proceed to collect the amount of the assessment until the
taxpayer has agreed to it or has allowed the 60-day period for
objecting to expire. If the taxpayer files a request for
abatement of the assessment specified in the notice, the IRS
must abate the assessment. Any reassessment of the abated
amount is subject to the ordinary deficiency procedures. The
request for abatement of the assessment is the only procedure a
taxpayer may use prior to paying the assessed amount in order
to contest an assessment arising out of a mathematical or
clerical error. Once the assessment is satisfied, however, the
taxpayer may file a claim for refund if he or she believes the
assessment was made in error.
House bill
Individuals are not eligible for the credit if they do
not include their taxpayer identification number (and, if
married, their spouse's taxpayer identification number) on
their tax return. Solely for these purposes and for purposes of
the present-law identification test for a qualifying child, a
taxpayer identification number is defined as a social security
number issued to an individual by the Social Security
Administration other than a number issued under section
205(c)(2)(B)(i)(II) (or that portion of sec.
205(c)(2)(B)(i)(III) relating to it) of the Social Security Act
(regarding the issuance of a number to an individual applying
for or receiving Federally funded benefits).
If an individual fails to provide a correct taxpayer
identification number, such omission will be treated as a
mathematical or clerical error. If an individual who claims the
credit with respect to net earnings from self-employment fails
to pay the proper amount of self-employment tax on such net
earnings, the failure will be treated as a mathematical or
clerical error for purposes of the amount of credit allowed.
Senate amendment
Similar to House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Title V: Child Protection Block Grant Programs and Foster Care,
Adoption Assistance, and Independent Living Programs
Subtitle A--Child Protection Block Grant Program and Foster Care,
Adoption Assistance, and Independent Living Programs
Present law
Under current law, there are at least 36 programs
designed to help children who are victims of abuse or neglect.
These programs address the child protection issue by supporting
abuse reporting and investigation; abuse prevention; child and
family assessment, preservation, and support; foster care;
adoption; and training of social workers, foster parents,
judges, and others. These programs can be divided into two
general categories. The first are entitlement programs under
jurisdiction of the Committee on Ways and Means and the Finance
Committee, nearly all of which provide unlimited funding for
foster and adoption maintenance payments, administrative costs,
and training. The two exceptions are the Family Preservation
and Support Program which provides capped entitlement funds to
help States provide services that keep families together and
prevent abuse, and the Independent Living program which
provides capped entitlement funds to help children in foster
care make the transition to living on their own. The second
group of programs are appropriated programs. These programs are
smaller and, except the Child Welfare Services Program, are
generally under the jurisdiction of the Economic and
Educational Opportunities Committee and the Labor and Human
Resources Committee.
House bill
The House provision retains all the open-ended
entitlement programs to ensure that States have adequate
resources to help abused children that must be removed from
their homes. The provision also combines the two capped
entitlement programs and many of the smaller programs into two
block grants that will simplify administration, promote
flexibility, and increase efficiency. Working in conjunction
with the Committee on Economic and Educational Opportunity, the
Ways and Means Committee has created a block grant that is
identical to a block grant created by the Opportunities
Committee. Across the two Committees, a total of 11 programs
are combined into the new block grant structure. Programs under
jurisdiction of the Opportunities Committee are mentioned
briefly below to clarify the structure of the overall Federal
program for helping abused children and their families.
Senate amendment
The Senate amendment does not include the block grant;
the amendment makes no changes in current law.
Conference agreement
The conference agreement follows the Senate amendment.
Chapter 1--Block Grants to States for the Protection of Children
1. purpose
Present law
Child Welfare Services, now provided for in Title IV-B of
the Social Security Act, are designed to help States provide
child welfare services, family preservation, and community-
based family support services.
House bill
The proposed Child Protection Block Grant would replace
current law under Title IV-B. The purpose of the Child
Protection Block Grant is to:
(1) identify and assist families at risk of abusing
or neglecting their children;
(2) operate a system for receiving reports of abuse
or neglect of children;
(3) improve the intake, assessment, screening, and
investigation of reports of abuse and neglect;
(4) enhance the general child protective system by
improving risk and safety assessment tools and
protocols;
(5) improve legal preparation and representation,
including procedures for appealing and responding to
appeals of substantiated reports of abuse and neglect;
(6) provide support, treatment, and family
preservation services to families which are, or are at
risk of, abusing or neglecting their children;
(7) support children who must be removed from or
who cannot live with their families;
(8) make timely decisions about permanent living
arrangements for children who must be removed from or
who cannot live with their families;
(9) provide for continuing evaluation and
improvement of child protection laws, regulations, and
services;
(10) develop and facilitate training protocols for
individuals mandated to report child abuse or neglect;
and
(11) develop and enhance the capacity of community-
based programs to integrate shared leadership
strategies between parents and professionals to prevent
and treat child abuse and neglect at the neighborhood
level.
Senate amendment
The amendment does not change current law.
Conference agreement
The conference agreement follows the Senate amendment.
2. eligible states
Present law
To be eligible for funding under Title IV-B and IV-E,
States must have State plans, developed jointly with the
Secretary under Title IV-B, and approved by the Secretary under
Title IV-E. In addition, to receive funds under the Child Abuse
Prevention and Treatment Act (CAPTA), States must comply with
certain requirements including submission of a State plan.
States must have a child welfare services plan developed
jointly by the Secretary and the relevant State agency which
provides for single agency administration and which describes
services to be provided and geographic areas where services
will be available. The State plan also must meet many other
requirements, such as setting forth a 5-year statement of goals
for family preservation and family support and assuring the
review of progress toward those goals. For foster care and
adoption assistance, States must submit for approval a Title
IV-E plan providing for a foster care and adoption assistance
program and satisfying numerous requirements. The Child Abuse
Prevention and Treatment Act (CAPTA) requires States to have in
effect a law for reporting known and suspected child abuse and
neglect as well as providing for prompt investigation of child
abuse and neglect reports, among many other requirements.
To receive funding under Title IV-B and IV-E of the
Social Security Act, States must comply with certain procedures
for removal of children from their families when necessary,
must develop case plans for each child that are reviewed at
least every 6 months and contain specified information, and
must establish specific goals for the maximum number of
eligible children who will remain in foster care for more than
24 months.
Under Title IV-B, for fiscal years beginning on or after
April 1, 1996, State plans must provide assurances that:
(1) the State has completed an inventory of all
children who, before the inventory, had been in foster
care under the responsibility of the State for six
months or more, which determined: (i) the
appropriateness of, and necessity for, the foster care
placement; (ii) whether the child could or should be
returned to the parents of the child or should be freed
for adoption or other permanent placement; and (iii)
the services necessary to facilitate the return of the
child or the placement of the child for adoption or
legal guardianship;
(2) the State is operating to the satisfaction of
the Secretary: (i) a statewide information system on
children who are or have been in foster care in the
last year; (ii) a case review system for each child
receiving foster care under the supervision of the
State; (iii) a service program designed to help
children return to families from which they have been
removed; or be placed for adoption; (iv) a preplacement
preventive service program designed to help children at
risk remain with their families; and
(3) the State has reviewed State policies and
procedures in effect for children abandoned at birth;
and is implementing (or, will implement by October 31,
1996) such policies or procedures to enable permanent
decisions with respect to the placement of such
children to be made expeditiously. (For fiscal years
beginning before April 1, 1996, these standards were
incentive funding requirements that States had to meet
to receive their full Title IV-B allotment, and were
known as section 427 protections.)
Title IV-E State plans must provide that reasonable
efforts will be made prior to the placement of a child in
foster care to prevent or eliminate the need for removal of the
child from her home and to make it possible for the child to
return to her home.
Title IV-E State plans must provide that, where
appropriate, all steps will be taken, including cooperative
efforts with State AFDC and child support enforcement agencies,
to secure an assignment of any rights to support of a child
receiving foster care maintenance payments under Title IV-E.
House bill
An ``Eligible State'' is one that has submitted to the
Secretary, not later than October 1, 1996, and every 3 years
thereafter, a plan which has been signed by the Chief Executive
Officer of the State. The plan must outline the State's Child
Protection Program and provide several certifications regarding
the nature of its child protection program.
A State plan must thoroughly describe the State Child
Protection Program by describing State activities and
procedures to be used for:
(1) receiving and assessing reports of child abuse
or neglect;
(2) investigating such reports;
(3) with respect to families in which abuse or
neglect has been confirmed, providing services or
referral for services for families and children where
the State makes a determination that the child may
safely remain with the family;
(4) protecting children by removing them from
dangerous settings and ensuring their placement in a
safe environment;
(5) providing training for individuals mandated to
report suspected cases of child abuse or neglect;
(6) protecting children in foster care;
(7) promoting timely adoptions;
(8) protecting the rights of families, using adult
relatives as the preferred placement for children
separated from their parents if such relatives meet all
relevant standards; and
(9) providing services aimed at preventing child
abuse and neglect.
The State plan must also certify that the State:
(1) has in effect laws that require reporting of
child abuse and neglect;
(2) has in effect procedures for the immediate
screening, safety assessment, and prompt investigation
of child abuse or neglect reports;
(3) has in effect procedures for the removal and
placement of abused or neglected children;
(4) has in effect laws requiring immunity from
prosecution under State and local laws for individuals
making good faith reports of suspected or known cases
of child abuse or neglect;
(5) has in effect no later than 2 years after
enactment, laws and procedures affording individuals an
opportunity to appeal an official finding of abuse or
neglect;
(6) has in effect procedures for developing and
reviewing written plans for the permanent placement of
each child removed from the family that: specify the
goal for achieving a permanent placement for the child
in a timely fashion; ensure that the plan is reviewed
every 6 months; and ensure that information about the
child is gathered regularly and placed in the case
record.
(7) has in effect a program to provide independent
living services to 16-19 year old youths (and, at State
option, youths up to age 22) who are in the foster care
system but have no family to support them. (Under the
proposal, States also will continue to receive capped
entitlement grants for Independent Living services as
under current law.)
(8) has in effect procedures or programs (or both)
to respond to reports of medical neglect of disabled
infants;
(9) has quantitative goals of the State child
protection program;
(10) will comply with respect to fiscal years
beginning on or after April 1, 1996, with the same
child protection standards as under current law.
Standards related to abandoned children must be met by
October 1, 1997;
(11) will make reasonable efforts to prevent the
placement of children in foster care and to make it
possible for the child to return home. Each State must
also certify that it provides services for children and
families where maltreatment has been confirmed but the
child remained with the family;
(12) will take all appropriate steps, including
cooperative efforts, to secure an assignment to the
State of any rights to support on behalf of each child
receiving foster care maintenance payments; and
(13) has in effect requirements for disclosure of
records only to specified individuals and entities, and
provisions that allow for public disclosure of findings
or information about cases of child abuse or neglect
that have resulted in a child fatality or near fatality
(except that such disclosure shall not include
identifying information about the individual initiating
a report of suspected child abuse or neglect).
The Secretary of HHS must determine whether the State
plan includes the required materials and certifications (except
material related to the certification of State procedures to
respond to reporting of medical neglect of disabled infants).
The Secretary cannot add new elements beyond those listed
above.
Senate amendment
The amendment does not change current law, except to
require that the State plan for foster care and adoption
assistance provide for the protection of the rights of
families, using adult relatives as the preferred placement for
children separated from their parents where such relatives meet
the relevant State child protection standards (see item 8).
Conference agreement
The conference agreement follows the Senate amendment
with a modification to delete the proposed amendment dealing
with adult relative preferences.
3. Grants to States for Child Protection
Present law
Title IV-B of the Social Security Act contains both
discretionary and capped entitlement funding for helping States
provide assistance to troubled families and their children. Of
capped entitlement funding for family preservation and support,
1 percent is reserved for Indians. For child welfare services
under Title IV-B, $325 million is authorized annually. For
family preservation and support services, $225 million is
authorized in fiscal year 1996; $240 million in fiscal year
1997; and $255 million in fiscal year 1998. State allotments
for child welfare services are based on the State's child
population and per capita income. State allotments for family
preservation and support are based on the number of children in
the State receiving Food Stamps. Funds must be used for:
``protecting and promoting the welfare of children * * *
preventing unnecessary separation of children from their
families * * * restoring children to their families if they
have been removed * * * family preservation services * * *
community-based family support services to promote the well-
being of children and families and to increase parents'
confidence and competence.''
For-profit foster care providers are not eligible for
Federal funding under Title IV-E.
Section 1123 of the Social Security Act requires the
Secretary to establish by regulation a new Federal review
system for child welfare which would allow penalties for misuse
of funds. Regulations are expected to be published during the
summer of 1996. (This provision would not be affected by the
House proposal.)
House bill
The block grant contains both entitlement and
appropriated funds. From the entitlement funds, each eligible
State must receive from the Secretary an amount equal to the
State share of the Child Protection Block Grant amount for the
fiscal year (see below). A set-aside is provided for Indians
equal to 1 percent of the entitlement money flowing into the
block grant.
Each eligible State is also given funds equal to the
State share of the authorization component of the block grant
that is appropriated each year. Indians are given 0.36 percent
of the appropriated money flowing into the block grant. Funds
for the authorization component of the block grant under this
section are not to exceed $325 million each year. No funds from
the block grant can be used to pay for foster care or adoption
maintenance payments.
The term ``child protection amount'' means: $240 million
for fiscal year 1997; $255 million for fiscal year 1998; $262
million for fiscal year 1999; $270 million for fiscal year
2000; $278 million for fiscal year 2001; $286 million for
fiscal year 2002.
The term ``State share'' means the qualified child
protection expenses of a State divided by the sum of the
qualified child protection expenses of all of the States. The
term ``qualified State expenditure'' means Federal grants to
the State under the Child Welfare Services Grant and the Family
Preservation and Support Services Grant in fiscal year 1994 or
the average of 1992-94, whichever is greater. In determining
amounts for fiscal years 1992 through 1994, the Secretary shall
use information listed as actual amounts in the Justification
for Estimates for Appropriation Committees of the
Administration for Children and Families for fiscal years 1994
through 1996.
A State to which funds are paid under this section may
use the money in any manner the State deems appropriate to
accomplish the purposes of this part, but the funds must be
expended not later than the end of the immediately succeeding
fiscal year.
For-profit, foster care facilities are eligible to
receive funds from the block grant.
Under the terms and conditions of the block grant, States
are subject to several penalties:
(1) For misuse of funds. If an audit determines
that any amounts provided to a State have been spent in
violation of this part, the Secretary must reduce the
grant otherwise payable for the next fiscal year by the
amount of the misspent funds, plus 5 percent of the
grant;
(2) For failure to maintain effort. If States fail
to maintain State spending equal to State expenditures
under Part B of Title IV in fiscal year 1994, the
Secretary must reduce the grant payable under this
section by an amount equal to the previous year's
shortfall in maintenance of effort. A penalty of 5
percent of the State grant must also be imposed. States
must maintain 100 percent of prior effort in fiscal
years 1997 and 1998; and 75 percent in fiscal years
1999 through 2002;
(3) For failure to submit report. If the Secretary
determines that the State has not submitted mandatory
adoption and foster care data reports within 6 months
of the end of the fiscal year, the Secretary must
reduce by 3 percent the amount of the State's block
grant. If the report is submitted before the end of the
immediately succeeding fiscal year, the Secretary shall
rescind the penalty.
Except in the case of failure to maintain effort, the
Secretary may not impose a penalty if the determination is made
that the State has reasonable cause for failing to comply with
the requirement. Further, a State must be informed before any
penalty is imposed and be given an opportunity to enter into a
corrective compliance plan. The provision includes a series of
deadlines for submission of such corrective compliance plans
and review by the Federal government. No quarterly payment can
be reduced by more than 25 percent; penalty amounts above 25
percent must be carried forward to subsequent quarters.
Each territory is entitled to receive from the Secretary
for any fiscal year an amount equal to the total obligations
due to the territory under the Social Security Act for fiscal
year 1995.
Except as expressly provided in this Act, the Secretary
may not regulate the conduct of States under this part or
enforce any provision of this Act.
Senate amendment
The amendment does not change current law, except that it
would amend the definition of ``child care institution'' to
include for-profit providers (see item 6).
Conference agreement
The conference agreement follows the Senate amendment.
4. Data Collection and Reporting
Present law
In 1986, Congress established the National Advisory
Committee on Adoption and Foster Care Information to assist HHS
in designing a new comprehensive nationwide data collection
system with full system implementation expected to be completed
by October 1991. However, final regulations were not issued
until December 1993 with the first transmission of data due May
1995. All States are now participating in the Adoption and
Foster Care Analysis and Reporting System (AFCARS). HHS is
currently analyzing the first datasets transmitted from the
States. The final rules require semi-annual reporting on all
children in foster care. The data collection is child and case
specific and is intended to yield a semi-annual snapshot of
child welfare trends. It is also intended to yield information
that will enable policymakers to ``track'' children in care and
find out the reasons why children enter foster care, how long
children stay in foster care, and what happens to children
while in foster care as well as after they leave foster care.
In 1993, Congress authorized enhanced funding of 75
percent for both the AFCARS system and for several additional
functions not originally envisioned as part of AFCARS
capability. These new functions included electronic data
exchange within the State, automated data collection on all
children in foster care, collection and management of
information necessary to facilitate delivery of child welfare
services and to determine eligibility for such services, case
management, case plan development and monitoring, and
information security. Enhanced funding of 75 percent for this
second data system, which HHS calls the Statewide Automated
Child Welfare Information System (SACWIS), expires on October
1, 1996.
House bill
The House provision leaves unaltered the current State
data reporting system on child protection. The enhanced funding
rate of 75 percent for the Statewide Automated Child Welfare
Information System (SACWIS) is extended for 1 additional year,
through fiscal year 1997.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
5. Funding for Studies of Child Welfare
Present law
Sec. 426 authorizes discretionary funding for child
welfare research and demonstration projects. No funds were
appropriated in 1996.
House bill
The Secretary is entitled to receive, for each of fiscal
years 1996 through 2002, $6 million to conduct a national study
based on random samples of children who are at risk of child
abuse or neglect, and $10 million for other research.
Senate amendment
The amendment does not change current law.
Conference agreement
The conference agreement follows the House bill. The
conferees recommend that the Secretary, in conducting the
random sample study, require that the study have a longitudinal
component and yield data that is reliable at the State level
for as many States as she determines is feasible. The conferees
also recommend that the Secretary carefully consider selecting
the sample from cases of confirmed abuse or neglect and follow
each case for several years while obtaining information on,
among other things, the type of abuse or neglect involved, the
frequency of contact with State or local agencies, whether the
child involved has been separated from the family, and, if so,
under what circumstances, the number, type, and characteristics
of out-of-home placements of the child, and the average
duration of each placement.
6. Definitions
Present law
The term ``child care institution'' means a licensed
nonprofit private or public facility which accommodates no more
than 25 children. The term does not apply to detention
facilities, forestry camps, training schools, or centers for
delinquent children.
House bill
Same as present law, except the word ``nonprofit'' is
deleted.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
7. Conforming Amendments
Present law
House bill
This section makes a series of technical and conforming
amendments to the Social Security Act and the Omnibus Budget
Reconciliation Act of 1986.
Senate amendment
The amendment redesignates section 1123 (42 U.S.C. 1320a-
1a) the second place it appears as section 1123A.
Conference agreement
The conference agreement follows the Senate amendment.
Chapter 2--Foster Care, Adoption Assistance, and Independent Living
Programs
8. Changes in Title IV-E of the Social Security Act
Present law
Title IV-E Foster Care and Title IV-E Adoption Assistance
are intended to help States finance foster care and adoption
assistance maintenance payments, administration, child
placement services, and training related to foster care and
adoption assistance.
The purpose of the Title IV-E Independent Living Program
is to help older foster children make the transition to
independent living.
House bill
The most notable feature of House action on Title IV-E is
that all the entitlement programs remain intact. In addition,
the House retains the provision of current law that guarantees
Medicaid coverage for children who receive maintenance payments
from either the foster care or adoption programs. On the other
hand, the House provision does change current law in three
ways.
First, the current law guarantee of eligibility for
foster care and adoption maintenance payments for children
eligible for the Aid to Families with Dependent Children (AFDC)
program was disrupted because the AFDC statute was completely
rewritten to give States the authority to establish their own
welfare programs. To ensure that the eligibility of poor
children for maintenance payments continues, the House
provision guarantees eligibility for all children from families
that would have been eligible for the AFDC program as it
existed in each State on the day before enactment of this
legislation.
Second, the House provision allows States to use private
for-profit foster care facilities. The House believes that
States should be allowed to use private child care
organizations because they are fully capable of providing
quality services. States are responsible for ensuring that
children are in safe and reliable care whether it is provided
by public or private entities. The House can see no reason to
automatically refuse participation by an entire sector of the
child caring community.
Third, the House provided enhanced funding for the
Statewide Automated Child Welfare Information System (SACWIS)
because automation is a vital part of providing quality child
protection services. The House has investigated progress by the
States in creating SACWIS and has found that several States are
now ready to begin actual implementation and that as many as
half the States can be expected to have operational systems by
next year if funding remains available. Thus, the House is
extending the enhanced funding rate of 75 percent to encourage
States to invest money in these important systems.
Senate amendment
The amendment amends Title IV-E to include for-profit
providers in the definition of ``child care institutions'' (see
item 6). The provision also amends Title IV-E to require that
the State plan for foster care and adoption assistance provide
for the protection of the rights of families, using adult
relatives as the preferred placement for children separated
from their parents where such relatives meet the relevant State
child protection standards.
Conference agreement
The conference agreement follows the Senate amendment
with a modification to delete the proposed amendment dealing
with adult relative preference.
Chapter 3--Miscellaneous
9. secretarial submission of legislative proposal for technical and
conforming amendments
Present law
No provision.
House bill
Not later than 90 days after the date of enactment, the
Secretary of Health and Human Services must submit to Congress
a legislative proposal providing for technical and conforming
amendments required by the changes made in this subtitle of the
proposal.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment.
10. sense of the congress regarding timely adoption of children
Present law
No provision.
House bill
This section expresses the sense of Congress that too
many adoptable children are spending too much time in foster
care, that States must take steps to increase the number of
children who are adopted in a timely manner, and that States
could achieve savings if they offered incentives for the
adoption of special needs children, among other provisions.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment.
11. effective date; transition rules
Present law
No provision.
House bill
The changes made in this subtitle will be effective on or
after October 1, 1996. Provisions that authorize and
appropriate funds in fiscal year 1996 for research and court
improvements, and certain technical and conforming amendments
are effective upon enactment. The proposal establishes
transition rules for pending claims, actions and proceedings,
and closing out accounts for programs that are terminated or
substantially modified.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment.
Subtitle B--Child and Family Services Block Grant
Present law
No provision.
House bill
The block grant and associated activities under Subtitle
B are under the jurisdiction of the Economic and Educational
Opportunities Committee in the House and the Labor and Human
Resources Committee in the Senate. The Child and Family
Services Block Grant created by Subtitle B consolidates the
following programs into a single block grant: The Child Abuse
Prevention and Treatment Act, the Abandoned Infants Assistance
Act, adoption opportunities under the Child Abuse Prevention
and Treatment and Adoption Reform Act, the family support
centers under the McKinney Homeless Assistance Act, and the
Temporary Child Care and Crisis Nurseries Act. The Child and
Family Services Block Grant has the same State plan and
certification requirements as the Child Protection Block Grant
created by Subtitle A. The two Block Grants also have the same
data collection and reporting requirements for child abuse
incidence data and for the implementation of foster care and
adoption tracking systems. The Child and Family Services Block
Grant is authorized at $230 million for fiscal year 1996 and
``such sums as may be necessary'' are authorized for fiscal
year 1997 through fiscal year 2002. Title II of the Child and
Family Services Block Grant provides that funds be available
for research, demonstrations, training and technical assistance
to better protect children from maltreatment. Funds under this
block grant also will establish a National Clearinghouse for
Information Relating to Child Abuse, provide demonstration
grants for the development of innovative programs, provide
technical assistance to States to assist with child abuse
investigation and the termination of parental rights
proceedings, and provide training for professionals in related
fields. For these Title II activities, 12 percent of the $230
million provided for this Block Grant is authorized of which 40
percent must be available for demonstration projects. The
Missing Children's Assistance Act and the Victims of Child
Abuse Act of 1990 are both reauthorized.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment.
Title VI: Child Care
1. short title and references
Present law
No provision.
House bill
Short Title: Child Care and Development Block Grant
Amendments of 1996. Unless otherwise specified, references
should be considered as made to the Child Care and Development
Block Grant Act of 1990.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
2. goals
Present law
No provision.
House bill
This section establishes the following goals for the
Child Care and Development Block Grant:
(1) to allow each State maximum flexibility in
developing child care programs and policies that best
suit the needs of children and parents within the
State;
(2) to promote parental choice in making decisions
on the child care that best suits their family's needs;
(3) to encourage States to provide consumer
information to help parents make informed child care
choices;
(4) to assist States in providing child care to
parents trying to become independent of public
assistance; and
(5) to assist States in implementing the health,
safety, licensing and registration standards
established in State regulations.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
3. authorization of appropriations and entitlement authority
Present law
The authorization of appropriations for the Child Care
and Development Block Grant expires at the end of fiscal year
1995. Appropriations in fiscal year 1996 are $935 million.
(Sec. 658B of the CCDBG Act)
[Note.--In addition to appropriated funds, entitlement
funds are available for the Child Care Block Grant under the
AFDC Child Care, Transitional Child Care, and At-Risk Child
Care programs authorized by Title IV-A of the Social Security
Act.]
House bill
Authorization of Appropriations. There are authorized to
be appropriated $1,000,000,000 for each of fiscal years 1996
through 2002. (Additional mandatory funding will be provided
for child care under the Social Security Act so that a total of
$22 billion will be provided for child care over the 7-year
period fiscal years 1996-2002.)
Child Care Entitlement. The proposal establishes a single
child care block grant and State administrative system by
adding mandatory funds to the existing Child Care and
Development Block Grant (CCDBG). Specifically, one
discretionary and two mandatory streams of funding will be
consolidated in a reconstituted CCDBG.
a. State General Entitlement. From the stream of
entitlement funding, each State will receive the amount of
funds it received for child care under all of the entitlement
programs currently under Title IV-A of the Social Security Act
(AFDC Child Care, Transitional Child Care, and At-Risk Child
Care) in fiscal year 1994, in fiscal year 1995, or the average
amount in fiscal years 1992 through 1994, whichever is greater.
This source of funds will provide States with approximately
$1.2 billion for child care each year between 1997 and 2002.
b. Remainder. The mandatory funds remaining after the
allocation to Indians (see below) and the State General
Entitlement (see above) will be distributed among the States
based on the formula currently used in the Title IV-A At-Risk
Child Care Grant. Specifically, funds will be distributed based
on the proportion of the number of children under age 13
residing in the State to the number of all of the Nation's
children under age 13. States must provide matching funds at
the fiscal year 1995 State Medicaid rate to receive these funds
and must maintain spending at their fiscal year 1994 or 1995
level, whichever is greater, under the Title IV-A child care
programs. The money available to States through this source of
funds for fiscal years 1997 through 2002, respectively, will
be: $0.76 billion, $0.86 billion, $0.96 billion, $1.16 billion,
$1.36 billion, and $1.51 billion.
If a State does not use its full portion of funds, the
remaining portion will be redistributed to other States
according to section 402(i) of the At-Risk Child Care Grant (as
such section was in effect before October 1, 1995). Thus, each
State applying for these remaining funds will receive the
percentage of funds that equals the percentage of children
under age 13 residing in that State of all children under age
13 residing in all the States that apply for funds. The
Secretary must determine whether States will use their entire
portion of funds no later than the end of the first quarter of
the subsequent fiscal year.
c. Appropriation. Total child care funds under this
proposal will equal $22 billion for child care over the 7-year
period fiscal years 1996-2002, including both the $15 billion
in mandatory funds discussed above and $7 billion in
discretionary funds. Under current law for the three existing
AFDC-related child care programs, $1.1 billion in mandatory
funds will be spent in fiscal year 1996. In addition, a total
of $13.85 billion in mandatory funds would be authorized for
child care in fiscal years 1997-2002, starting at $2.0 billion
in fiscal year 1997 and rising to $2.7 billion in fiscal year
2002. Finally, as stated earlier, $1 billion will be authorized
annually in discretionary funds for the Child Care and
Development Block Grant.
d. Indian Tribes. One percent of all funds under the
section are provided to Indian tribes.
Use of Funds. Funds shall only be used to provide child
care assistance. Amounts received by a State, based on the
amounts received in previous years, shall be available for use
by the State without fiscal year limitation. All funds from
both mandatory and discretionary sources must be transferred to
the lead agency under the Child Care and Development Block
Grant and integrated into the State child care programs.
Not less than 70 percent of the total amount of mandatory
funds received by the State in a fiscal year must be used to
provide child care assistance to families that are receiving
assistance under a State program, families that are attempting
to transition off public assistance, and families at risk of
becoming dependent on public assistance.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and
Senate amendment, with a modification. The Secretary shall
reserve not less than 1 percent and not more than 2 percent of
the total amount appropriated (both mandatory and
discretionary) in each fiscal year for payments to Indian
tribes and tribal organizations.
4. lead agency
Present law
The Chief Executive Officer of a State is required to
designate an appropriate State agency to act as the lead agency
in administering financial assistance under the Act. (Sec. 658D
of the CCDBG Act)
House bill
The proposal requires States to identify a lead agency to
administer all the child care funds received under the Act,
including funds received through other ``governmental or
nongovernmental'' agencies (instead of other ``State''
agencies). States must ensure that ``sufficient time and
statewide distribution of the notice'' be given of the public
hearing on the development of the State plan. This section
strikes language in current law specifying issues that may be
considered during consultation with local governments on
development of the State plan.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
5. application and plan
Present law
States are required to prepare and submit to the
Secretary an application that includes a State plan. The
initial plan must cover a 3-year period, and subsequent plans
must cover 2-year periods. Required contents of the plan
include designation of a lead agency; outline of policies and
procedures regarding parental choice of providers, summary of
policies that guarantee unlimited parental access, parental
complaints, and consumer education; and overview of policies
that ensure compliance with State and local regulatory
requirements, establishment of and compliance with health and
safety requirements, and review of State licensing and
regulatory requirements.
In addition, the State plan must provide that all funds
will be used for child care services, and that 25 percent of
funds will be reserved for activities to improve the quality of
child care and to increase the availability of early childhood
development and before- and after-school child care. (Sec. 658E
of the CCDBG Act)
State plans must also assure that payment rates will be
adequate to provide eligible children with equal access to
child care as compared with children whose families are not
eligible for subsidies, and must assure that the State will
establish and periodically revise a sliding fee scale that
provides for cost sharing by families that receive child care
subsidies.
House bill
The proposal requires the State plan to cover a 2-year
period. States must provide a detailed description of
procedures to be used to assure parental choice of providers.
Instead of ``providing assurances,'' States must ``certify''
that procedures are in effect within the State to ensure
unlimited parental access to the families providing care to
children and to ensure parental choice of child care provider;
the proposal also requires that the State plan provide a
detailed description of such procedures. Instead of ``providing
assurances,'' a State must ``certify'' that it maintains a
record of parental complaints and requires the State to provide
a detailed description of how such a record is maintained and
made available. The proposal changes the consumer education
part of the State plan to require assurances that the State
will collect and disseminate consumer education information.
States must certify that they have in effect child care
licensing requirements and provide a detailed description of
the requirements and how they are enforced. This provision does
not require that licensing requirements be applied to specific
types of child care providers.
States must ``certify'' that procedures are in effect to
ensure that child care providers receiving funds under this Act
comply with applicable State or local health and safety
requirements. The Secretary is required to develop minimum
standards for Indian tribes and tribal organizations receiving
assistance.
The proposal eliminates review of State licensing and
regulatory requirements, notification to the Department of
Health and Human Services (HHS) when standards are reduced, and
supplementation. The proposal also eliminates the requirement
that unlicensed providers be registered. The House decided to
retain a current law requirement that all States establish
health and safety standards. The House provision does not
specify the particular standards that must be established, but
all States must have requirements on prevention and control of
infectious diseases (including immunizations), building and
physical premises safety, and minimum health and safety
training.
A summary of the facts relied upon by the State to
determine that payment rates are sufficient to ensure equal
access to child care must be included in the State plan. Funds
must be used for child care services, for activities to improve
the quality and availability of such services, and for any
other activity that the State deems appropriate to realize the
goals specified above. The proposal deletes the current law
requirement that States reserve 25 percent of funds for
activities to improve the quality of child care and to increase
availability of early childhood development and before- and
after-school care. States may spend no more than 5 percent on
administrative costs.
States must spend a substantial portion of the amounts
available to provide child care to low-income working families
who are not working their way off welfare or are at risk of
becoming welfare dependent. However, States first must comply
with requirement that at least 70 percent of mandatory funds
must be used for welfare or at-risk families. States must
demonstrate how they will meet the child care needs of welfare
and at-risk families.
Senate amendment
Same, except the Senate maintains current law (which
requires States to ``provide assurances'' that child care
providers receiving funds under this Act comply with applicable
State or local health and safety requirements).
Conference agreement
The conference agreement follows the House bill with a
modification. The provision requires States to ``certify'' that
health and safety requirements are in effect within a State
applicable to child care providers.
Nothing in the legislation either prohibits or requires
States to differentiate between federally subsidized child care
and nonsubsidized child care regarding the application of
specific standards and regulations. The cap of 5 percent on
administrative costs is included in both the House and Senate
passed bills. To help States implement this provision, the
Department of Health and Human Services should issue
regulations, in a timely manner and prior to the deadline for
submission of State plans, that define and determine true
administrative costs, as distinct from expenditures for
services. Eligibility determination and redetermination,
preparation and participation in judicial hearings, child care
placement, the recruitment, licensing, inspection, reviews and
supervision of child care placements, rate setting, resource
and referral services, training, and the establishment and
maintenance of computerized child care information are an
integral part of service delivery and should not be considered
administrative costs.
6. Activities to Improve the Quality of Child Care
Present law
As stated above, 25 percent of State allotments must be
reserved for activities to improve child care quality and to
increase the availability of early childhood development and
before- and after-school child care. Section 658G specifies how
these funds are to be used. Of reserved funds, States are
required to use no less than 20 percent for improving the
quality of care, including resource and referral programs,
making grants or loans to assist providers in meeting State and
local standards, monitoring of compliance with licensing and
regulatory requirements, training of child care personnel, and
improving compensation for child care personnel. (Sec. 658G of
the CCDBG Act).
House bill
A State that receives child care funds must use at least
4 percent of all funds received (both mandatory and
discretionary) for activities designed to provide comprehensive
consumer education to parents and the public, for activities
that increase parental choice, and for activities designed to
improve the quality and availability of child care.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
7. Repeal of Early Childhood Development and Before- and After-School
Care Requirement
Present law
States are required to use no less than 75 percent of
funds reserved for quality improvement for activities to expand
and conduct early childhood development programs and before-
and after-school child care. (Sec. 658H of the CCDBG Act)
House bill
The set-aside for early childhood development programs
and before- and after-school care is repealed.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
8. Administration and Enforcement
Present law
The Secretary of Health and Human Services (HHS) is
required to coordinate HHS and other Federal child care
agencies, to collect and publish a list of State child care
standards every 3 years, and to provide technical assistance to
States. The Secretary must also review, monitor, and enforce
compliance with the Act and the State plan by withholding
payments and imposing additional sanctions in certain cases.
(Sec. 658I of the CCDBG Act)
House bill
This section strikes the current law requirement that the
Secretary withhold further payments to a State in case of a
finding of noncompliance until the noncompliance is corrected.
Instead, the Secretary is authorized, in such cases, to require
that the State reimburse the Secretary for any improperly spent
funds, or the Secretary may deduct from the administrative
portion of the State's subsequent allotment an amount equal to
or less than the misspent funds, or a combination of such
options.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
9. Payments
Present law
Payments received by a State for a fiscal year may be
expended in that fiscal year or in the succeeding 3 fiscal
years. (Sec. 658J of the CCDBG Act)
House bill
The bill replaces the word ``expended'' with
``obligated''. However, the bill contains a drafting error. A
provision that would have struck ``3 fiscal years'' and
inserted ``fiscal year'' was inadvertently dropped.
Senate amendment
The Senate amendment contains the same drafting error.
Conference agreement
The conference agreement corrects a previous drafting
error by striking ``3 fiscal years'' and inserting ``fiscal
year''.
10. Annual Report and Audits
Present law
States must prepare and submit to the Secretary every
year a report specifying how funds are used; presenting data on
the manner in which the child care needs of families in the
State are being fulfilled, including information on the number
of children served, child care programs in the State,
compensation provided to child care staff, and activities to
encourage public-private partnerships in child care; describing
the extent to which affordability and availability of child
care has increased; summarizing findings from a review of State
licensing and regulatory requirements, if applicable;
explaining any action taken by the State to reduce standards,
if applicable; and describing standards and health and safety
requirements applied to child care providers in the State,
including a description of efforts to improve the quality of
child care. (Sec. 658K of the CCDBG Act)
House bill
The title of the section is changed from ``Annual Report
and Audits'' to ``Reports and Audits.'' States must collect on
a monthly basis, and report to HHS on a quarterly basis, the
following information on each family receiving assistance:
(1) family income;
(2) county of residence;
(3) the gender, race, age of children receiving
benefits;
(4) whether the family includes only one parent;
(5) the sources of family income, including:
(a) the amount obtained from employment,
including self-employment;
(b) cash assistance or other assistance
under Part A;
(c) housing assistance;
(d) food stamps; and
(e) other public assistance;
(6) the number of months the family has received
benefits;
(7) the type of care in which the child was
enrolled (family day care, center, own home);
(8) whether the provider was a relative;
(9) the cost of care; and
(10) the average hours per week of care.
Twice each year, the State must submit the following
aggregate data to HHS:
(1) the number of providers separately identified
in accord with each type of provider that received
funding under this subchapter;
(2) the monthly cost of child care services and the
portion of such cost paid with assistance from this Act
by type of care;
(3) the number of payments by the State in
vouchers, contracts, cash, and disregards from public
benefit programs by type of care;
(4) the manner in which consumer education
information was provided and the number of parents who
received it; and
(5) total number (unduplicated) of children and
families served.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
11. Report by the Secretary
Present law
The Secretary is required to prepare and submit an annual
report, summarizing and analyzing information provided by
States, to the House Education and Labor Committee and the
Senate Labor and Human Resources Committee. This report must
contain an assessment and, where appropriate, recommendations
to Congress regarding efforts that should be taken to improve
access of the public to quality and affordable child care.
(Sec. 658L of the CCDBG Act)
House bill
The Secretary must prepare and submit biennial reports,
rather than annual reports, with the first report due no later
than July 31, 1997; the reference to the House Education and
Labor Committee is replaced with the House Economic and
Educational Opportunities Committee.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
12. Allotments
Present law
The Secretary must reserve one-half of 1 percent of
appropriations for payment to Guam, American Samoa, the Virgin
Islands, the Northern Marianas, and the Trust Territory of the
Pacific Islands. The Secretary also must reserve no more than 3
percent for payment to Indian tribes and tribal organizations
with approved applications. Remaining funds are allocated to
the States based on the States' proportion of children under
age 5 and the number of children receiving free or reduced-
price school lunches, as well as the States' per capita income.
Any portion of a State's reallotment that the Secretary
determines is not needed by the State to carry out its plan for
the allotment period must be reallotted by the Secretary to the
other States in the same proportion as the original allotments.
(Sec. 658O of the CCDBG Act)
House bill
Set-asides for the Territories, Indian tribes, and tribal
organizations are maintained, except that the Trust Territory
of the Pacific Islands is deleted from the set-aside for
Territories. Indian tribes are provided with a 1 percent set-
aside of all funds, both entitlement and appropriated,
authorized by this section each year. Under some circumstances,
and with approval from the Secretary, Indian tribes are
authorized to use a portion of their funds for renovation and
construction of child care facilities. Within the overall block
grant for social programs provided to the territories, each
territory is authorized to spend whatever portion they choose
of their capped amount on child care (for additional details
see item 79 of Title I). Allotments to States were described in
item 3 above.
Senate amendment
Same as the House bill except the Indian tribes are
provided with a 3-percent set-aside for child care.
Conference agreement
The conference agreement follows the House bill with a
modification. The Secretary shall reserve not less that 1
percent and not more than 2 percent of the total amount
appropriated (both mandatory and discretionary) in each fiscal
year for payments to Indian tribes and tribal organizations.
13. Definitions
Present law
The following terms are defined: caregiver, child care
certificate, elementary school, eligible child, eligible child
care provider, family child care provider, Indian tribe, lead
agency, parent, secondary school, Secretary, sliding fee scale,
State, and tribal organization. (Sec. 658P of the CCDBG Act)
House bill
Child care deposits are added as an allowable use of a
child care certificate. The definition of ``eligible child'' is
revised to one whose family income does not exceed 85 percent
of the State median, instead of 75 percent. The definition of
``relative child care provider'' is revised by adding great
grandchild and sibling (if the provider lives in a separate
residence) to the list of eligible relative providers and the
requirement that relatives providing care be registered is
struck. Relative providers are required to comply with any
applicable requirements governing child care provided by a
relative, rather than State requirements. The definition for
elementary and secondary school is eliminated. The Trust
Territory of the Pacific Islands is dropped from the definition
of ``State.'' Native Hawaiian Organization is added to the
definition of ``tribal organization.''
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
14. Repeals
Present law
No provision.
House bill
The proposal repeals the following programs: (1) Child
Development Associate (CDA) Scholarship Assistance; (2) State
Dependent Care Development Grants; (3) Programs of National
Significance under Title X of the Elementary and Secondary
Education Assistance Act of 1965 (child care related to
Cultural Partnerships for At-Risk Children and Youth, and Urban
and Rural Education Assistance); and (4) Native-Hawaiian
Family-Based Education Centers.
[Note.--Title I of the proposal also repeals child care
assistance provided under current law by Title IV-A of the
Social Security Act. This assistance is provided under three
programs known as AFDC Child Care, Transitional Child Care, and
At-Risk Child Care. Thus, the total number of child care
programs merged into the Child Care and Development Block Grant
is seven.]
Senate amendment
The Senate amendment does not repeal the following
programs: (1) Child Development Associate (CDA) Scholarship
Assistance; (2) State Dependent Care Development Grants; (3)
Programs of National Significance under Title X of the
Elementary and Secondary Education Assistance Act of 1965; and
(4) Native Hawaiian Family-Based Education Centers.
Conference agreement
The conference agreement follows the Senate amendment.
15. Effective Date
Present law
No provision.
House bill
This title and the amendments made by this title take
effect on October 1, 1996; the authorization of appropriations
and entitlement authority under section 8103(a) take effect on
the date of enactment.
Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
Title VII: Child Nutrition Programs
Subtitle A--National School Lunch Act
1. STATE DISBURSEMENT TO SCHOOLS
Present law
State Agency Authority. The provision of law requiring
that agreements between State education agencies and schools be
permanent may not be ``construed'' as limiting the ability of
State agencies to suspend or terminate agreements in accordance
with the Secretary's regulations. [Sec. 8 of the NSLA]
Technical Amendments. ``Child'' for purposes of the NSLA
is defined to include individuals, regardless of age, who are
(a) determined to have 1 or more disabilities and (b) attending
an institution for the purpose of participating in a program
for individuals with mental or physical disabilities. [Sec. 8
of the NSLA]
House bill
State Agency Authority. Clarifies State education
agencies' authority to terminate or suspend agreements with
schools participating in school meal programs. [Sec. 3401]
Technical Amendments. Makes a technical amendment placing
this definition of child in the section of the NSLA containing
other general definitions. [Sec. 3401]
[Note.--Sec. 3401 also makes conforming amendments to
cross-references in sec. 8 of the NSLA.]
Senate amendment
State Agency Authority. Same provision. [Sec. 1201]
Technical Amendments. Same provision with technical
differences. [Sec. 1201]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills regarding State Agency Authority and
adopts the Senate provision on Technical Amendments. [Sec. 701]
2. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS
Present law
Lowfat Cheese Purchases. Each calendar year, the
Secretary is required to purchase specific amounts of lowfat
cheese on a bid basis. [Sec. 9(a)(2) of the NSLA]
Food Waste Procedures. The Secretary is required to
establish administrative procedures designed to diminish food
waste in schools. [Sec. 9(a)(3) of the NSLA]
Announcing Guidelines. Each school year, State education
agencies and schools are required to announce income
eligibility guidelines to be used for free and reduced price
lunches. [Sec. 9(b)(2) of the NSLA]
Commodities. Schools in the school lunch program are
required to use, as far as practicable, commodities designated
by the Secretary as being in ``abundance.''
The Secretary is authorized to prescribe terms and
conditions under which donated commodities will be used in
schools and other participating institutions. [Sec. 9(c) of the
NSLA]
Nutrition Information/Requirements. By the first day of
the 1996-1997 school year, the Secretary, State education
agencies, schools, and school food service authorities are
required, to the maximum extent practicable, to inform students
and parents of the nutrition content of school meals and their
consistency with the most recent Dietary Guidelines for
Americans. [Sec. 9(f)(1) of the NSLA]
Unless a waiver is granted by a State education agency,
schools must serve meals that are consistent with the Dietary
Guidelines for Americans (using the weekly average nutrient
content of the meals) by the beginning of the 1996-1997 school
year. [Sec. 9(f)(2) of the NSLA]
Use of Resources. State education agencies may use
resources provided under the nutrition education and training
program for training aimed at improving the quality and
acceptance of school meals. [Sec. 9(h) of the NSLA]
House bill
Lowfat Cheese Purchases. Deletes the lowfat cheese
purchase requirement. [Sec. 3402(a)]
Food Waste Procedures. Deletes the requirement for the
Secretary to establish procedures to diminish food waste. [Sec.
3402(a)]
Announcing Guidelines. Deletes the requirements to
annually announce income eligibility guidelines. [Sec. 3402(b)]
Commodities. Deletes the requirement to use foods
designated as abundant.
Deletes the authority for the Secretary to prescribe
terms and conditions for the use of commodities. [Sec. 3402(c)]
Technical/Conforming Changes. Makes a technical/
conforming amendment consistent with the elimination of the
requirement to announce guidelines. Makes a technical/
conforming amendment to delete a provision dealing with
discrimination against and identification of children receiving
free or reduced price lunches found elsewhere in the law. [Sec.
3402(b) & (d)]
Nutrition Information/Requirements. Deletes the
requirement to inform students and parents about the nutrition
content of meals and their consistency with the Dietary
Guidelines. [Sec. 3402(e)]
Replaces the existing requirement to serve meals
consistent with the Dietary Guidelines. Unless a waiver is
granted by a State education agency, schools must serve meals
that are consistent with the Dietary Guidelines by the
beginning of the 1996-1997 school year. The meals must provide,
on average over each week, at least one-third of the National
Academy of Sciences' daily recommended dietary allowances (in
the case of lunches) or one-quarter of the allowances (in the
case of breakfasts). [Sec. 3402(e)]
Use of Resources. Deletes the authority to use nutrition
education and training funding for improving school meals (this
authority is provided elsewhere in law). [Sec. 3402(f)]
Senate amendment
Lowfat Cheese Purchases. Same provision. [Sec. 1202(a) &
(c)]
Food Waste Procedures. Same provision. [Sec. 1202(a)]
Announcing Guidelines. No provision.
Commodities. Same provisions. [Sec. 1202(b)]
Technical/Conforming Changes. No provisions.
Nutrition Information/Requirements. Same provision. [Sec.
1202(d)]
Use of Resources. Same provision. [Sec. 1201(e)]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. With respect to Announcing Guidelines,
the conference agreement adopts the Senate provision. [Sec.702]
3. FREE AND REDUCED PRICE POLICY STATEMENT
Present law
No provision.
House bill
Provides that schools may not be required to submit free
and reduced price ``policy statements'' to State education
agencies unless there is a substantive change in the free and
reduced price policy of the school. Routine changes (e.g.,
adjusting income eligibility standards) are not sufficient
cause for requiring a school to submit a policy statement.
[Sec. 3403]
Senate amendment
Same provisions with a technical difference clarifying
that school food authorities, rather than schools, are the
entities that may not be required to submit a policy statement.
[Sec. 1203]
Conference agreement
The conference agreement adopts the Senate provisions.
[Sec.703]
4. SPECIAL ASSISTANCE
Present law
``Provision 2.'' Schools electing to serve all children
free meals for 3 successive years may be paid special
assistance payments for free and reduced price meals based on
the number of meals served free or at a reduced price in the
first year (``provision 2''). Schools electing this option as
of November 1994 may receive a 2-year extension from the State
if it determines that the income level of the school's
population has remained stable. Schools receiving a 2-year
extension may receive subsequent 5-year extensions (except that
the Secretary may require that applications be taken at the
beginning of any 5-year period). [Sec. 11(a)(1) of the NSLA]
Terms and Conditions. The terms and conditions governing
the operation of the school lunch program (set forth in other
sections of the NSLA, except for matching requirements) apply
to special assistance under the school lunch program, to the
extent they are not inconsistent with the express requirements
of the section governing special assistance. [Sec. 11(d) of the
NSLA]
Monthly Reports. State education agencies must report
each month the average number of children receiving free and
reduced price lunches during the immediately preceding month.
[Sec. 11(e)(2) of the NSLA]
House bill
``Provision 2.'' Allows all ``provision 2'' schools to
qualify for extensions. [Sec. 3404(a)]
Terms and Conditions. Deletes ``terms and conditions''
requirements. [Sec. 3404(b)]
Monthly Reports. Removes the requirement for monthly
reports and replaces it with a provision to report this
information at the Secretary's request. [Sec. 3404(b)]
Senate amendment
``Provision 2.'' Same provision. [Sec. 1204(a)]
Terms and Conditions. Same provision. [Sec. 1204(b)]
Monthly Reports. Same provision. [Sec. 1204(b)]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec.704]
5. MISCELLANEOUS PROVISIONS AND DEFINITIONS
Present law
Accounts and Records. States, State education agencies,
and schools must make accounts and records available for
inspection and audit by the Secretary ``at all times.'' [Sec.
12(a) of the NSLA]
Restrictions on Requirements. Neither the Secretary nor
States may impose any requirement with respect to teaching
personnel, curriculum, and instruction in any school when
carrying out the provisions of the NSLA. [Sec. 12(c) of the
NSLA]
Definitions. ``State'' is defined to include the Trust
Territory of the Pacific Islands. [Sec. 12(d)(1) of the NSLA]
``Participation rate'' is defined as the number of
lunches served in the second prior fiscal year. [Sec. 12(d)(3)
of the NSLA]
``Assistance need rate'' is defined as a rate relative to
States' annual per capita income. [Sec. 12(d)(4) of the NSLA]
The Secretary is permitted to adjust reimbursement rates
for Alaska, Hawaii, and outlying areas (including the Trust
Territory of the Pacific Islands). [Sec. 12(f) of the NSLA]
Expedited Rulemaking. The Secretary is required to issue
proposed regulations on food-based menu systems prior to the
publication of final regulations for compliance with the
Dietary Guidelines for Americans and must hold public meetings
on the proposed regulations. Final regulations must reflect
public comments. [Sec. 12(k) of the NSLA]
Waivers. The Secretary may waive any Federal requirements
if the requesting State or service provider demonstrates, to
the Secretary's satisfaction, that the waiver will not increase
the overall Federal cost of the program and, if it does
increase costs, they will be paid from non-Federal funds.
Waiver applications must describe ``management goals'' to
be achieved, a timetable for implementation, and the process to
be used for monitoring progress in implementing the waiver
(including cost implications).
The Secretary must state in writing the expected outcome
of any approved waivers.
The results of the Secretary's decision on any waiver
must be disseminated through ``normal means of communication.''
Waivers may not exceed 3 years (unless extended by the
Secretary).
Waivers may not be granted with respect to ``offer versus
serve'' rules.
Service providers must annually submit reports describing
the use of their waivers and evaluating how the waiver
contributed to improved services. States must annually submit a
summary of providers' reports to the Secretary. The Secretary
must annually submit reports to Congress summarizing the use of
waivers and describing whether waivers resulted in improved
services, the impact of waivers on the provision of nutritional
meals, and how waivers reduced paperwork. [Sec. 12(l) of the
NSLA]
Food and Nutrition Programs. The Secretary is required to
award grants to private nonprofit organizations or education
institutions for ``food and nutrition projects'' that are fully
integrated with elementary school curricula. Subject to
appropriations, the Secretary must make grants to each of 3
organizations or institutions in amounts between $100,000 and
$200,000 for each of fiscal years 1995 through 1998. [Sec.
12(m) of the NSLA]
Simplified Administration of School Meal and Other
Nutrition Programs. No provisions in current law; therefore, no
citizenship or immigration status tests apply to programs under
the NSLA or CNA, or to commodity assistance programs.
House bill
Accounts and Records. Revises the requirement to make
accounts and records available at all times to a requirement
that they be available at ``any reasonable time.'' [Sec.
3405(a)]
Restrictions on Requirements. Removes the prohibition on
States imposing personnel, curriculum, and instruction
requirements. [Sec. 3405(b)]
Definitions. Replaces ``Trust Territory of the Pacific
Islands'' with ``Commonwealth of the Northern Mariana
Islands.''
Deletes the out-of-date definition of participation rate.
Deletes the out-of-date definition of assistance need
rate.
Replaces the reference to the Trust Territory of the
Pacific Islands with a reference to the ``Commonwealth of the
Northern Mariana Islands.'' [Sec. 3405(c) & (d)]
Expedited Rulemaking. Deletes the noted out-of-date
requirements for regulations. [Sec. 3405(e)]
Waivers. Adds a bar against the Secretary granting any
waiver that increases Federal costs.
Deletes the noted waiver requirements in present law.
Deletes the noted outcome requirement in present law.
Deletes the noted dissemination requirement in present
law.
Deletes the noted time limit requirement in present law.
Deletes the noted offer versus serve prohibition in
present law.
Deletes requirements for waiver reports by service
providers and States, but not the Secretary's. [Sec. 3405(f)]
Food and Nutrition Programs. Deletes authority for food
and nutrition project grants. [Sec. 3405(g)]
Simplified Administration of School Meal and Other
Nutrition Programs. No provisions in the child nutrition
provisions of the bill. However, other provisions of the bill
would bar the eligibility of illegal aliens for programs under
the NSLA and the CNA.
Senate amendment
Accounts and Records. Same provision. [Sec. 1205(a)]
Restrictions on Requirements. Same provision. [Sec.
1205(b)]
Definitions. Same provisions. [Sec. 1205(c) & (d)]
Expedited Rulemaking. Same provision. [Sec. 1205(e)]
Waivers. Same provisions. [Sec. 1205(f)]
Food and Nutrition Programs. No provision.
Simplified Administration of School Meal and Other
Nutrition Programs. Notwithstanding any other provision of law,
no assistance or benefits provided under the NSLA or CNA or
commodity assistance programs may be contingent on citizenship
or immigration status. [Sec. 1205(g)]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 705] The conference agreement also
adopts the Senate provision on Food and Nutrition Projects, and
adopts the House provision on Simplified Administration of
School Meal and Other Nutrition Programs with an amendment
stating that individuals who are ineligible for free public
education benefits under State or local law are also ineligible
for school meal benefits under the National School Lunch Act
and the Child Nutrition Act of 1966. The amendment also states
that ``nothing in this Act shall prohibit or require a State to
provide to an individual who is not a citizen qualified alien,
as defined elsewhere in the law, benefits * * *'' under
programs other than school lunch and breakfast program under
the National School Lunch Act and the Child Nutrition Act of
1966, the Commodity Supplemental Food Program, TEFAP and the
food distribution program on Indian reservations. [Sec. 742]
6. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN
Present law
Establishment of Program. The Secretary is authorized to
carry out a summer food service program to assist States to
initiate, maintain, and expand nonprofit food service programs
for children. [Sec. 13(a) of the NSLA]
Service Institutions: Payments. Payments to summer food
service institutions may not exceed specific amounts set by law
and indexed for inflation. For the summer of 1996, these rates
are: $2.1675 for each lunch/supper, $1.2075 for each breakfast,
and 57 cents for each supplement (snack). Rates are adjusted
each January to reflect changes (for the 12 months ending the
preceding November) in the food away from home component of the
CPI-U. Each adjustment is rounded to the nearest quarter cent.
[Sec. 13(b)(1) of the NSLA]
Administration of Service Institutions. Payments to
summer camps and service institutions that primarily serve
migrant children may be made for up to 4 meals/supplements each
day. [Sec. 13(b)(2) of the NSLA]
Reimbursements: National Youth Sports Program. Higher
education institutions operating under the National Youth
Sports Program (NYSP) may receive reimbursements for meals/
supplements served in months other than May through September,
but for not more than 30 days for each child.
NYSP children and institutions are eligible to
participate ``without application.''
NYSP institutions receive reimbursements for breakfasts
and supplements equal to the ``severe need'' rate for school
breakfasts.
Advance Program Payments. In general, 3 advance payments
to summer food service program service institutions are
required during any summer program. The second advance payment
may not be released to any service institution that has not
certified it has held training sessions for its own personnel
and site personnel. [Sec. 13(e)(1) of the NSLA]
Food Requirements. The Secretary is required to provide
``additional technical assistance'' to those service
institutions and private nonprofit organizations that are
having difficulty in maintaining compliance with nutritional
requirements.
Service institutions' contracts with food service
management companies must require that bacteria levels conform
to the standards applied by the local health authority. [Sec.
13(f) of the NSLA]
Permitting ``Offer versus Serve''. The ``offer versus
serve'' option is not permitted in the summer food service
program.
Food Service Management Companies. In accordance with the
Secretary's regulations, service institutions must make
positive efforts to use small and minority-owned businesses as
sources of supplies and services.
States are required to establish a standard form of
contract for use by service institutions and food service
management companies. [Sec. 13(l) of the NSLA]
Records. States and service institutions must make
accounts and records available for inspection and audit by the
Secretary ``at all times.'' [Sec. 13(m) of the NSLA]
Removing Mandatory Notice to Institutions. States' plans
must include its plans and schedule for informing service
institutions of the availability of the summer food service
program. [Sec. 13(n) of the NSLA]
Plan. State plans must include: (1) the State's method of
assessing need, (2) the State's best estimate of the number/
character of service institutions/sites to be approved, and
children and meals to be served, as well as its estimating
methods, and (3) a schedule for providing technical assistance
and training to service institutions. [Sec. 13(n) of the NSLA]
Monitoring and Training. With the Secretary's assistance,
States must establish and implement an ongoing training and
technical assistance program for private nonprofit
organizations. [Sec. 13(q) of the NSLA]
Expired Program. During fiscal years 1990 and 1991, the
Secretary and States must carry out a program to disseminate
information to private nonprofit organizations about the
amendments made by the Child Nutrition and WIC Reauthorization
Act of 1989. [Sec. 13(p) of the NSLA]
House bill
Establishment of Program. Removes the reference to the
Secretary's authority to carry out a program to assist States
to ``expand'' summer food services. [Sec. 3406(a)]
[Note.--Sec. 3406(a) also makes technical amendments
deleting a reference to the Trust Territory of the Pacific
Islands and an unnecessary cross-reference in present law.]
Service Institutions: Payments. Establishes new maximum
rates for summer food service institutions. They are: $1.82 for
each lunch/supper, $1.13 for each breakfast, and 46 cents for
each supplement (snack). These new rates, adjusted for
inflation, first apply to the summer of 1997. They are adjusted
on January 1, 1997, and each January 1 thereafter, to reflect
changes (for the 12 months ending the preceding November) in
the food away from home component of the CPI-U. Each adjustment
is based on unrounded rates for the prior 12-month period, then
rounded down to the nearest lower cent increment. [Sec. 3406(b)
& (n)]
[Note.--Separate administrative cost reimbursement rates
are not changed.]
Administration of Service Institutions. Limits payments
to summer camps and institutions serving migrant children to 3
meals, or 2 meals and a supplement, each day. [Sec. 3406(c)]
Reimbursements: National Youth Sports Program. Deletes
authority for reimbursements to NYSP institutions for months
other than May through September.
Requires that NYSP children be eligible on showing
residence in an area of poor economic conditions or on the
basis of an income eligibility statement.
Requires that NYSP institutions receive reimbursements
for breakfasts and supplements equal to the regular free school
breakfast reimbursement rates.
Advance Program Payments. Limits to nonschool providers
the prohibition on releasing the second advance payment without
having certified training has been held. [Sec. 3406(e)]
Food Requirements. Deletes the requirement for additional
technical assistance in present law.
Replaces the requirement that contracts require bacteria
levels to conform to standards applied by the local health
authority with a requirement that contracts be in conformance
with standards set by local health authorities. [Sec. 3406(f)]
Permitting ``Offer versus Serve.'' Adds authority for
school food authorities participating as a summer food service
institution to permit children attending a site on school
premises operated directly by the school food authority to
refuse 1 item of a meal without affecting reimbursement for the
meal. [Sec. 3406(g)]
Food Service Management Companies. Deletes requirement
for positive efforts to use small and minority-owned businesses
in present law.
Deletes requirement for a standard form of contract in
present law. [Sec. 3406(h)]
Records. Revises the requirement to make accounts and
records available at all times to a requirement that they be
available at ``any reasonable time.'' [Sec. 3406(i)]
Removing Mandatory Notice to Institutions. Deletes the
requirement for a plan/schedule for informing service
institutions of the availability of the summer food service
program. [Sec. 3406(j)]
Plan. Deletes State plan requirements for a method of
assessing need, estimates of service institutions/sites to be
approved and children and meals to be served, and a schedule
for providing technical assistance/training. [Sec. 3406(k)]
Monitoring and Training. Deletes requirement for ongoing
training and technical assistance for private nonprofit
organizations. [Sec. 3406(l)]
Expired Program. Deletes out-of-date requirement to
disseminate information. [Sec. 3406(m)]
Senate amendment
Establishment of Program. No provision.
Service Institutions: Payments. No provisions.
Administration of Service Institutions. No provision.
Reimbursements: National Youth Sports Program. No
provision.
Advance Program Payments. No provision.
Food Requirements. No provision.
Permitting ``Offer versus Serve.'' No provision
Food Service Management Companies. No provision.
Records. No provision.
Removing Mandatory Notice to Institutions. No provision.
Plan. No provision.
Monitoring and Training. No provision.
Expired Program. No provision.
Conference agreement
Establishment of Program. The conference agreement adopts
the House provision.
Service Institutions: Payments. The conference agreement
adopts the House provisions with an amendment that sets the
reimbursement rate for lunches at $1.97.
Administration of Service Institutions. The conference
agreement adopts the House provisions.
Reimbursements: National Youth Sports Program. The
conference agreement adopts the House provisions with
amendments that: delete the provision of present law allowing
institutions to participate without application; require that
all reimbursements to NYSP institutions be at the regular
summer food service program rates; and delete special meal
standard and compatibility requirements for NYSP institutions.
Advance Program Payments. The conference agreement adopts
the House provisions.
Food Requirements. The conference agreement adopts the
House provisions.
Permitting ``Offer versus Serve.'' The conference
agreement adopts the House provisions with an amendment
allowing school food authorities to permit the refusal of 1 or
more items under rules that the school uses for school meal
programs.
Food Service Management Companies. The conference
agreement adopts the Senate provisions.
Records. The conference agreement adopts the House
provision.
Removing Mandatory Notice to Institutions. The conference
agreement adopts the House provision.
Plan. The conference agreement adopts the House
provisions.
Monitoring and Training. The conference agreement adopts
the House provision.
Expired Program. The conference agreement adopts the
House provision. [Sec. 706]
7. Commodity Distribution
Present law
Cereal and Shortening in Commodity Donations. Cereal and
shortening and oil products must be included among products
donated to the school lunch program. [Sec. 14(b) of the NSLA]
Impact Study and Purchasing Procedures. By May 1979, the
Secretary must report on the effect of changes in commodity
procurement established under 1977 amendments to the NSLA.
The Secretary must establish procedures to ensure that
purchase contracts are not entered into unless the previous
history and current patterns of the contracting party (with
respect to compliance with meat inspection and other food
wholesomeness standards) are taken into account. [Sec. 14(d) of
the NSLA]
Cash Compensation for Pilot Project Schools. The
Secretary must provide cash compensation to certain schools
participating in a ``cash/CLOC'' pilot project to make up for
losses sustained. Compensation is provided to schools applying
before the end of 1990. [Sec. 14(g) of the NSLA]
State Advisory Council. State education agencies
receiving food assistance must establish an advisory council
composed of school representatives. The council advises the
agency on schools' needs relating to the manner of selecting
and distributing commodities. [Sec. 14(e) of the NSLA]
House bill
Cereal and Shortening in Commodity Donations. Deletes the
requirement to include cereal and shortening and oil products
in school lunch program donations. [Sec. 3407(a)]
Impact Study and Purchasing Procedures. Deletes out-of-
date commodity procurement report requirement.
Deletes requirement for purchase procedures that take
into account contractors' compliance with meat inspection/food
wholesomeness standards. [Sec. 3407(b)]
Cash Compensation for Pilot Project Schools. Deletes an
out-of-date requirement for compensation to certain schools in
a pilot project. [Sec. 3407(c)]
State Advisory Council. Deletes the requirement for State
commodity assistance advisory councils. [Sec. 3407(d)]
Senate amendment
Cereal and Shortening in Commodity Donations. Same
provision. [Sec. 1206(a)]
Impact Study and Purchasing Procedures. No provisions.
Cash Compensation for Pilot Project Schools. Same
provision. [Sec. 1206(c)]
State Advisory Council. Provides that any State agency
receiving food assistance must establish an advisory council
(i.e., deletes the specific reference to State education
agencies in present law). [Sec. 1206(b)]
Conference agreement
Cereal and Shortening in Commodity Donations. The
conference agreement adopts the provision that is common to
both bills.
Impact Study and Purchasing Procedures. The conference
agreement adopts the Senate provision.
Cash Compensation for Pilot Project Schools. The
conference agreement adopts the provision that is common to
both bills.
State Advisory Council. The conference agreement adopts
the House provisions, with an amendment to replace the
requirement for a formal advisory council with a requirement
that State agencies to meet with local school food service
personnel when making decisions regarding commodities used in
meal programs. [Sec. 707]
8. child care food program
Present law
Establishment of Program. The Secretary is authorized to
carry out a program to assist States to initiate, maintain, and
expand nonprofit food service for children in child care
institutions. [Sec. 17(a) of the NSLA]
Payments to Sponsor Employees. No provision.
Technical Assistance. If necessary, States must provide
technical assistance to institutions submitting incomplete
applications to participate. [Sec. 17(d) of the NSLA]
Reimbursement of Child Care Institutions. Day care
centers may be provided reimbursement for up to 2 meals and 2
supplements (or 3 meals and 1 supplement) each day for children
in a child care setting for 8 or more hours a day. [Sec.
17(f)(2) of the NSLA]
Improved Targeting of Day Care Home Reimbursements:
Restructured Day Care Home Reimbursements. Reimbursements for
family or group day care homes are specific amounts set by law
and indexed for inflation. All homes receive the same
reimbursements, and reimbursements are not differentiated by
family income of the child receiving a subsidized meal/
supplement. For July 1996 through June 1997, these rates are:
$1.575 for each lunch/supper, 86.25 cents for each breakfast,
and 47 cents for each supplement.
Rates are adjusted each July to reflect changes in the
food away from home component of the CPI-U for the most recent
12-month period for which data are available. Each adjustment
is rounded to the nearest quarter cent. [Sec. 17(f)(3)(A) of
the NSLA]
Improved Targeting of Day Care Home Reimbursements:
Grants to States. No provision.
Improved Targeting of Day Care Home Reimbursements:
Provision of Data. No provision.
Reimbursement. The Secretary is required to reduce
administrative payments to day care home sponsors as of August
1981 so as to achieve a 10 percent reduction in the total level
of payments. [Sec. 17(f)(3)(B) of the NSLA]
Funds for administrative expenses may be used by day care
home sponsors to conduct outreach and recruitment to unlicensed
day care homes so that they may become licensed. [Sec.
17(f)(3)(C) of the NSLA]
States must provide monthly advance payments to approved
day care institutions in an amount that reflects the full level
of valid claims customarily received (or the State's best
estimate in the case of newly participating institutions).
[Sec. 17(f)(4)]
Nutritional Requirements. Meals served under the child
and adult care food program must be ``served free to needy
children.''
The Secretary is required to provide ``additional
technical assistance'' to institutions and day care home
sponsors that are having difficulty maintaining compliance with
nutrition requirements. [Sec. 17(g)(1) of the NSLA]
Elimination of State Paperwork/Outreach Burden. States
must take affirmative action to expand availability of the
child and adult care food program benefits, including annual
notification of all nonparticipating day care home providers.
The Secretary must conduct demonstration projects to test
approaches to removing or reducing barriers to participation by
homes that operate in low-income areas or primarily serve low-
income children. The Secretary and States must provide training
and technical assistance to assist day care home sponsors in
reaching low-income children. The Secretary must instruct
States to provide information and training about child health
and development through day care home sponsors. [Sec. 17(k) of
the NSLA]
Records. States and institutions must make accounts and
records available for inspection and audit by the Secretary and
others ``at all times.'' [Sec. 17(m) of the NSLA]
Modification of Adult Care Food Program. Nonresidential
adult day care centers (including group living arrangements)
serving chronically impaired disabled adults or persons 60
years of age or older are eligible institutions under the child
and adult care food program. Reimbursements are provided for
meals served to chronically disabled adults and those 60 or
older in these centers. [Sec. 17(o) of the NSLA]
Unneeded Provision. The Secretary is required to provide
State child and adult care food service agencies with basic
information about the WIC program. State agencies must provide
child care institutions with specific materials about the WIC
program, annually update the materials, and ensure that at
least once a year the institutions provide specific written
information to parents about the WIC program. [Sec. 17(q) of
the NSLA]
Effective Date. No provision.
Study. No provision.
House bill
Establishment of Program. Removes the reference to the
Secretary's authority to carry out a program to assist States
to ``expand'' child care food services. [Sec. 3408(a)]
Payments to Sponsor Employees. Prohibits payments to day
care home sponsors that base payments to employees on the
number of homes recruited. [Sec. 3408 (b)]
Technical Assistance. Deletes the requirement to provide
technical assistance in cases of incomplete applications. [Sec.
3408(c)]
Reimbursement of Child Care Institutions. Removes
authority for reimbursement for more than 2 meals and 1
supplement for children in care for 8 or more hours. [Sec.
3408(d)]
Improved Targeting of Day Care Home Reimbursements:
Restructured Day Care Home Reimbursements. Establishes new
reimbursement rates for day care homes as follows:
``Tier I'' homes receive the meal/supplement rates in
effect on July 1, 1996 (see present law), adjusted annually for
inflation.
``Tier I'' homes are (1) those located in areas, defined
by the Secretary based on Census data, in which at least 50
percent of children are in households with income below 185
percent of the Federal poverty guidelines, (2) those located in
an area served by a school enrolling elementary students in
which at least 50 percent of the children are certified
eligible to receive free or reduced price school meals, or (3)
those operated by a provider whose household income is verified
by a sponsor (under the Secretary's regulations) to be below
185 percent of the poverty guidelines.
``Tier II'' homes are homes that do not meet tier I
standards, but they may, at their option, receive the
substantially higher tier I reimbursement rates under certain
conditions (see below).
In general, tier II home rates are 90 cents for each
lunch/supper, 25 cents for each breakfast, and 10 cents for
each supplement, adjusted annually for inflation. Tier II homes
can elect to receive higher tier I rates for meals/supplements
served to children who are members of households with income
below 185 percent of the Federal poverty guidelines, if the
sponsor collects the necessary income information and makes the
appropriate eligibility determinations in accordance with the
Secretary's rules. Tier II homes also can elect to receive tier
I rates for meals/supplements served to children (or children
whose parents are) 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
185 percent of the poverty guidelines, and may restrict their
claim for tier I reimbursements to these children if they
choose not to collect income statements from all parents/
caretakers.
The Secretary is required to prescribe simplified meal
counting and reporting procedures for use by tier II homes (and
their sponsors) that elect to claim tier I reimbursements for
children meeting the income or program participation
requirements. These procedures can include (1) setting an
annual percentage of meals/supplements to be reimbursed at tier
I rates based on the family income of children enrolled in a
specific month or other period, (2) placing a home in a
reimbursement category based on the percentage of children with
household income below 185 percent of the poverty guidelines,
or (3) other procedures determined by the Secretary.
The Secretary is authorized to establish minimum
requirements for verifying income and program participation for
tier II homes electing to claim tier I reimbursement rates.
Inflation indexing of rates for day care homes also is
revised. The rates set for tier I homes (see present law) and
the new tier II rates are adjusted July 1, 1997, and each July
thereafter, based on the unrounded rates for the previous 12-
month period, then rounded down to nearest lower cent
increment. Inflation adjustments are based on changes in the
food at home component of the CPI-U for the most recent 12-
month period for which data are available. [Sec. 3408(e)(1)]
Improved Targeting of Day Care Home Reimbursements:
Grants to States. Provides grants to States to assist family or
group day care homes and their sponsors in implementing the new
reimbursement rate system. For fiscal year 1997, the Secretary
is required to reserve for this purpose $5 million of the
amounts made available for the child care food program and
allocate it to States based on the number of homes
participating in fiscal year 1995 (with a minimum of $30,000
for each State). [Sec. 3408(e)(2)]
Improved Targeting of Day Care Home Reimbursements:
Provision of Data. Requires that the Secretary provide Census
data necessary for determining homes' tier I/II status and that
States provide school enrollment data necessary to determine
tier I/II status. In determining homes' tier I/II status, the
most current available data (Census, enrollment, income) must
be used. In general, a determination that a home is located in
a tier I area is effective for 3 years. [Sec. 3408(e)(3)]
Reimbursement. Deletes the out-of-date requirement to
reduce administrative payments to sponsors.
Deletes the authority to use administrative expense
funding for outreach and recruitment.
Makes the provision of advance payments a State option.
[Sec. 3408(f)]
Nutritional Requirements. Deletes a redundant provision
requiring that free meals be served to needy children (this
requirement is found elsewhere in law).
Deletes the requirement to provide additional technical
assistance. [Sec. 3408(g)]
Elimination of State Paperwork/Outreach Burden. Removes
the noted requirements in present law and replaces them with a
requirement that States provide sufficient training, technical
assistance, and monitoring to facilitate effective operation of
the child care food program. Requires the Secretary to assist
States in developing plans to do so. [Sec. 3408(h)]
Records. Revises the requirement to make accounts and
records available at all times to a requirement that they be
available at ``any reasonable time.'' [Sec. 3408(i)]
Modification of Adult Care Food Program. Deletes
authority for reimbursements for meals to those in adult day
care centers who are not chronically impaired disabled persons.
Deletes authority for any reimbursements to adult day care
centers that do not serve chronically impaired disabled
persons. [Sec. 3408(j)]
[Note.--Section 3408(a) & (l) make conforming amendments.]
Unneeded Provision. Deletes requirements to provide WIC
information through the child care food program. [Sec. 3408(k)]
Effective Date. Establishes effective dates for changes
affecting the child care food program. In general, they are
effective on enactment, but amendments restructuring day care
home reimbursement rates are effective July 1, 1997.
Requires the Secretary to issue interim regulations
related to restructuring day care home reimbursement rates,
provision of data to implement the restructured rates, and
changes to sponsors' use of administrative funds by January 1,
1997. Final regulations on these changes must be issued by July
1, 1997. [Sec. 3408(m)]
Study. Requires the Secretaries of Agriculture and Health
and Human Services to undertake a study of the effects of
amendments restructuring day care home reimbursements, due 2
years after enactment. Requires State agencies to provide
certain data to support the study. [Sec. 3408(n)]
Senate amendment
Establishment of Program. Same provisions. [Sec. 1207(a)]
Payments to Sponsor Employees. Same provision. [Sec.
1207(b)]
Technical Assistance. Same provision. [Sec. 1207(c)]
Reimbursement of Child Care Institutions. Same provision.
[Sec. 1207(d)]
Improved Targeting of Day Care Home Reimbursements:
Restructured Day Care Home Reimbursements. Same provisions,
except that the new rates for tier II homes are $1 for lunches/
suppers, 30 cents for breakfasts, and 15 cents for supplements.
[Sec. 1207(e)(1)]
The conferees understand that the Secretary has
historically provided different family and group day care home
payments in Alaska and Hawaii. The conferees expect that the
tier I and tier II reimbursements provided for in this measure
also will be varied for Alaska and Hawaii.
Improved Targeting of Day Care Home Reimbursements:
Provision of Data. Same provisions. [Sec. 1207(e)(3)]
Reimbursement. Same provisions, except replaces the
existing permission to use funds for outreach/recruitment with
permission to use funds to assist unlicensed homes in becoming
licensed. [Sec. 1207(f)]
Nutritional Requirements. Same provisions. [Sec. 1207(g)]
Elimination of State Paperwork/Outreach Burden. Same
provisions. [Sec. 1207(h)]
Records. Same provision. [Sec. 1207(i)]
Modification of Adult Care Food Program. No provision.
Unneeded Provision. Replaces the existing requirement for
providing WIC information with a requirement that State
agencies ensure that, at least once a year, child care
institutions provide written information to parents that
includes basic WIC information. [Sec. 1207(j)]
Effective Date. Same provisions. [Sec. 1207(k)]
Study. Same provisions. [Sec. 1207(l)]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. With respect to the provisions in
disagreement:
Improved Targeting of Day Care Home Reimbursements:
Restructured Day Care Home Reimbursements. The conference
agreement adopts the House provisions with an amendment setting
the reimbursement rate at 95 cents for lunches/suppers, 27
cents for breakfasts, and 13 cents for supplements.
Reimbursement. The conference agreement adopts the Senate
provisions.
Modification of Adult Care Food Program. The conference
agreement adopts the Senate provision.
Unneeded Provision. The conference agreement adopts the
House provision. [Sec. 708]
9. PILOT PROJECTS
Present law
``Universal free lunch'' pilots, similar to ``provision
2'' authority found elsewhere in law, are required. [Sec. 18(d)
of the NSLA]
A demonstration project for grants to provide meals and
supplements to adolescents in programs outside school hours is
required; assistance is in accordance with that provided under
the child and adult care food program. For each of fiscal years
1996 and 1997, the Secretary must expend $475,000 ($525,000 in
1998), unless there is an insufficient number of suitable
applicants. [Sec. 18(e) of the NSLA]
Pilot projects are authorized to evaluate the effects of
contracting with private organizations to act as a State agency
in cases where the Secretary is administering a child nutrition
program in place of a State. [Sec. 18(a) of the NSLA]
A pilot project is authorized to assist schools in
offering students additional choices of fruits, vegetables,
legumes, cereals, and grain-based products (including
organically produced commodities). [Sec. 18(g) of the NSLA]
A pilot project is authorized to assist schools in
offering students additional choices of dairy products, lean
meat, and poultry products (including organically produced
commodities). [Sec. 18(h) of the NSLA]
Pilots are authorized to reduce paperwork, application,
and meal counting requirements, and make program changes that
will increase school meal program participation--while
receiving Federal payments equal to the prior year adjusted for
inflation/enrollment. [Sec. 18(i) of the NSLA]
House bill
Deletes separate authority for the ``universal free
lunch'' projects, which are similar to ``provision 2''
authority found elsewhere in the law. [Sec. 3409(a)]
Makes the pilot demonstration project for grants to
provide meals and supplements to adolescents in programs
outside school hours optional and authorizes ``such sums as are
necessary'' for fiscal years 1997 and 1998. [Sec. 3409(b)]
Deletes authority for the pilot projects to: evaluate
effects of contracting with private organizations; assist
schools in offering students additional choices of fruits,
vegetables, legumes, cereals and grain-based products, dairy
products, lean meat and poultry products (including organically
produced commodities); reduce paperwork, application and meal
counting requirements and make program changes to increase
school meal program participation. [Sec. 3409(c)]
Senate amendment
The Senate amendment contains the same provisions that
delete authority for the ``universal free lunch'' projects and
make the pilot demonstration project for grants to provide
meals and supplements to adolescents in programs outside school
hours optional (authorizing ``such sums as are necessary'' for
fiscal 1997 and 1998). [Sec. 1208(a), (b)] The Senate amendment
does not contain the House provisions that delete authority for
the pilot projects to: evaluate effects of contracting with
private organizations; assist schools in offering students
additional choices of fruits, vegetables, legumes, cereals and
grain-based products, dairy products, lean meat and poultry
products (including organically produced commodities); reduce
paperwork, application and meal counting requirements and make
program changes to increase school meal program participation.
Conference agreement
The conference agreement adopts the provisions. [Sec.
709]
10. REDUCTION OF PAPERWORK
Present law
In carrying out the NSLA and the CNA, the Secretary is
required to reduce paperwork required of State and local
agencies and others (e.g., parents) to the maximum extent
practicable. In carrying out this requirement, the Secretary is
required to consult with State/local administrators and convene
a meeting of these administrators (not later than September
1990), and obtain suggestions from members of the public on
reducing paperwork. By November 1990, the Secretary is required
to report to Congress concerning the extent to which reduction
in paperwork has occurred. [Sec. 19 of the NSLA]
House bill
Deletes out-of-date paperwork reduction requirements.
[Sec. 3410]
Senate amendment
Same provision. [Sec. 1209]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 710]
11. INFORMATION ON INCOME ELIGIBILITY
Present law
The Secretary is required to provide State agencies with
information needed to determine income eligibility for free or
reduced price meal. It must be provided by May 1990. Not later
than July 1990, the Secretary must review model application
forms under the NSLA and the CNA and simplify the format/
instructions for these forms. [Sec. 23 of the NSLA]
House bill
Deletes out-of-date income verification and application
form requirements. [Sec. 3411]
Senate amendment
Same provision. [Sec. 1210]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 711]
12. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS
Present law
By November 1991, the Secretary and the Secretary of
Health and Human Services are required to develop a ``nutrition
guidance'' publication. They must distribute it within 6
months. The Secretary must revise menu planning guides to
include recommendations for implementing the nutrition guidance
in the publication. In carrying out any school meal program,
summer program, or child care food program, school food
authorities must apply the published nutrition guidance, and
the Secretary must ensure that meals and supplements are
consistent with the nutrition guidance. The Secretary and the
Secretary of Health and Human Services may jointly update the
guidance publication. [Sec. 24 of the NSLA]
House bill
Deletes the noted provisions of present law dealing with
development and implementation of a nutrition guidance. [Sec.
3412]
Senate amendment
Same provision. [Sec. 1211]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 712]
13. INFORMATION CLEARINGHOUSE
Present law
The Secretary is required to enter into a contract with a
nongovernmental organization to establish and maintain a
clearinghouse for information for nongovernmental groups on
food assistance and self-help initiatives. The clearinghouse is
required to be funded at $200,000 in fiscal year 1996, $150,000
in 1997, and $100,000 in 1998. [Sec. 26 of the NSLA]
House bill
Deletes the requirement for funding of a nutrition
information clearinghouse. [Sec. 3413]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the Senate provision.
Subtitle B--Child Nutrition Act of 1966
14. SPECIAL MILK PROGRAM
Present law
``United States'' is defined to include the Trust
Territory of the Pacific Islands. [Sec. 3(a)(3) of the CNA]
House bill
Replaces Trust Territory of the Pacific Islands with
``Commonwealth of the Northern Mariana Islands.'' [Sec. 3421]
Senate amendment
Same provision. [Sec. 1251]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec 721]
15. FREE AND REDUCED PRICE POLICY STATEMENT
Present law
No provision.
House bill
Provides that schools may not be required to submit a
free and reduced price ``policy statement'' to State education
agencies unless there is a substantive change in the free and
reduced price policy of the school. Routine changes (e.g.,
adjusting income eligibility standards) are not sufficient
cause for requiring a school to submit a policy statement.
[Sec. 3422]
Senate amendment
Similar provisions with a technical amendment clarifying
that school food authorities, rather than schools, are the
entities that may be required to submit a policy statement.
[Sec. 1252]
Conference agreement
The conference agreement adopts the Senate provision.
[Sec. 722]
16. SCHOOL BREAKFAST PROGRAM AUTHORIZATION
Present law
Training and Technical Assistance. Through State
education agencies, the Secretary must provide technical
assistance and training to school breakfast program schools to
assist them in complying with nutrition requirements and
providing appropriate meals to children with medically
certified special dietary needs. The Secretary also must
provide additional technical assistance to schools that are
having difficulty maintaining compliance with nutrition
requirements. [Sec. 4(e)(1) of the CNA]
Startup and Expansion. The Secretary and State education
agencies are directed to carry out information, promotion, and
outreach programs to further the policy of expanding the school
breakfast program to all schools where it is needed, including
the use of ``language appropriate'' materials. The Secretary is
to report to Congress no later than October 1, 1993, concerning
efforts to increase school participation. [Sec. 4(f) of the
CNA]
The Secretary is required to use $5 million a year
(through fiscal year 1997), $6 million in 1998, and $7 million
in each subsequent year to fund a program of competitively bid
grants to State education agencies for the purpose of
initiating or expanding the school breakfast and summer food
service programs. [Sec. 4(g) of the CNA]
House bill
Training and Technical Assistance. Deletes technical
assistance and training requirements. [Sec. 3423(a)]
Startup and Expansion. Effective October 1, 1996, deletes
the requirement for information, promotion, and outreach grants
to expand the school breakfast program. [Sec. 3423(b)]
Senate amendment
Training and Technical Assistance. Deletes the
requirement to provide additional technical assistance. [Sec.
1253(a)]
Startup and Expansion. Same provision. [Sec. 1253(b)]
Conference agreement
The conference agreement adopts the startup and expansion
provisions that are common to both bills and adopts the Senate
provision regarding Training and Technical Assistance. [Sec.
723]
17. state administrative expenses
Present law
Commodity Distribution Administration. States are
permitted to use a portion of the funds available for State
administrative expenses to assist in administering the
commodity distribution program. [Sec. 7(e) of the CNA]
Studies. The Secretary may not provide State
administrative expense funding to a State unless the State
agrees to participate in any study or survey of NSLA or CNA
programs conducted by the Secretary. [Sec. 7(h) of the CNA]
Approval of Changes. States must annually submit a plan
for the use of State administrative expense funds. [Sec. 7(f)
of the CNA]
House bill
Commodity Distribution Administration. Deletes specific
authority to use State administrative expense money for
commodity distribution administration (this authority is found
elsewhere in law). [Sec. 3424(a)]
Studies. Deletes the provision barring State
administrative expense funding when a State fails to agree to
participate in a study or survey. [Sec. 3424(a)]
Approval of Changes. Removes the requirement for annual
plans for State administrative expense funds and replaces it
with a requirement to submit any substantive plan changes for
the Secretary's approval. [Sec. 3424(b)]
Senate amendment
Commodity Distribution Administration. Same provision.
[Sec. 1254(a)]
Studies. Same provision. [Sec. 1254(a)]
Approval of Changes. Same provisions. [Sec. 1254(b)]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 724]
The conference agreement repeals Section 7(e) of the
Child Nutrition Act so as to simplify the language in, and
eliminate redundant provisions of, the Act. The managers note
that no provisions of the Child Nutrition Act prohibit States
from using State administrative expense (SAE) funds to
administer the Commodity Distribution Program, which is
authorized through the National School Lunch Act, and stress
that the repeal of Section 7(e) should not be construed as
barring or discouraging States from using SAE funds for this
purpose.
18. regulations
Present law
The Secretary is required to develop, and provide to
State agencies for distribution to schools, model language that
bans the sale of competitive foods of minimal nutritional
value, along with a copy of the regulations concerning
competitive foods. [Sec. 10(b) of the CNA]
House bill
Deletes the out-of-date requirement for model language on
competitive foods. [Sec. 3425]
Senate amendment
Same provision. [Sec. 1255]
Conference agreement
The conference agreement adopts provisions common to both
bills. [Sec. 725]
19. prohibitions
Present law
Neither the Secretary nor the States may impose any
requirement with respect to teaching personnel, curriculum, or
instruction in any school when carrying out the provisions of
the special milk and school breakfast programs. [Sec. 11(a) of
the CNA]
House bill
Removes the prohibition on States imposing personnel,
curriculum, and instruction requirements. [Sec. 3426]
Senate amendment
Same provision. [Sec. 1256]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 726]
20. miscellaneous provisions and definitions
Present law
``State'' is defined to include the Trust Territory of
the Pacific Islands. [Sec. 15(1) of the CNA]
``School'' is defined to include nonprofit child care
centers in Puerto Rico. [Sec. 15(3) of the CNA]
House bill
Replaces the reference to the Trust Territory of the
Pacific Islands with a reference to the Commonwealth of the
Northern Mariana Islands. [Sec. 3427]
Makes a conforming amendment deleting the inclusion of
nonprofit child care centers as schools in Puerto Rico. [Sec.
3427]
Senate amendment
Same provisions. [Sec. 1257]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 727]
21. accounts and records
Present law
States, State education agencies, schools, and nonprofit
institutions must make accounts and records available for
inspection by the Secretary ``at all times.'' [Sec. 16(a) of
the CNA]
House bill
Revises the requirement to make accounts and records
available at all times to a requirement that they be available
at ``any reasonable time.'' [Sec. 3428]
Senate amendment
Same provision. [Sec. 1258]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 728]
22. special supplemental nutrition program for women, infants, and
children
Present law
Definitions. ``Homeless individual'' is defined to
include an individual whose primary nighttime residence is a
temporary accommodation in the residence of another. [Sec.
17(b)(15) of the CNA]
Secretary's Promotion of WIC. The Secretary must
``promote'' the WIC program by producing and distributing
materials, including public service announcements in English
and other appropriate languages. [Sec. 17(c)(5) of the CNA]
Eligible Participants. The Secretary must report
biennially to Congress and the National Advisory Council on
Maternal, Infant, and Fetal Nutrition on the income and
nutritional risk characteristics of WIC participants,
participation by migrants, and other appropriate matters. [Sec.
17(d)(4) of the CNA]
Nutrition and Drug Abuse Education. State agencies must
ensure that drug abuse education is provided to all pregnant,
postpartum, and breastfeeding WIC participants, and to parents/
caretakers of WIC children.
Nutrition education and breastfeeding promotion and
support must be evaluated annually by State agencies.
State agencies must ensure that written information about
food stamps, AFDC, and the child support enforcement program is
provided to WIC applicants and participants.
Each local WIC agency may use a master file to document
and monitor the provision of nutrition education to individuals
that are required to be included in group nutrition education
classes.
State agencies must ensure that local agencies maintain
and make available a list of local resources for substance
abuse counseling and treatment. [Sec. 17(e) of the CNA]
State Plan. State agencies must annually submit a State
plan for WIC operations and administration.
State agency WIC plans must include a plan to coordinate
operations with special counseling services such as the
expanded food and nutrition education program, immunization
programs, local breastfeeding promotion programs, prenatal
care, well-child care, family planning, drug abuse education,
substance abuse counseling and treatment, child abuse
counseling, AFDC, food stamps, maternal and child health care,
and Medicaid (including Medicaid programs that use
``coordinated care providers'').
State agency WIC plans must include a plan to provide
benefits to unserved and underserved areas in the State if
sufficient funds are available.
State agency WIC plans must include a plan to provide
benefits to those most in need and to provide eligible
individuals not participating with program information, with an
emphasis on reaching and enrolling eligible women in the early
months of pregnancy and including provisions to reach and
enroll eligible migrants.
State agency WIC plans must include a specific plan for
provision of WIC benefits to incarcerated persons if they opt
to provide benefits to these persons.
State agency WIC plans must include a plan to improve
access to participants and applicants who are employed or
reside in rural areas by addressing their needs through
procedures/practices that minimize the time they must spend
away from work and the distances they must travel.
State agency WIC plans must include an estimate of the
increased participation that will result from cost-saving
initiatives (including an explanation of how the estimate was
developed) if the State chooses to request ``funds conversion
authority'' (using food money for administration).
State agency WIC plans must include other information
``as the Secretary may require.''
State agencies must establish procedures under which
members of the general public are provided an opportunity to
comment on the development of the State plan.
State agencies must, on receiving a completed local
agency application, notify the applicant in writing within 30
days of the approval or disapproval of the application
(accompanied by a statement of reasons for any disapproval).
Within 15 days of receiving an incomplete application, the
State agency must notify the applicant of added information
need to complete the application.
State agencies must, in cooperation with local WIC
agencies, publicly announce and distribute information at least
annually on the availability of WIC benefits to offices and
organizations that deal with significant numbers of potentially
eligible individuals. The information must be distributed in a
manner designed to provide it to those most in need of
benefits, including pregnant women in the early months of
pregnancy. Local agencies with cooperative arrangements with
hospitals must advise potentially eligible persons of the
availability of benefits and provide them with the opportunity
to be certified as eligible in the hospital.
State agency plans for fiscal year 1994 must advise the
Secretary of procedures for reducing the purchase of low-iron
infant formula.
State and local WIC agencies must make accounts and
records available for inspection and audit by the Secretary
``at all times.''
Notices issued to WIC participants who are suspended or
terminated during their certification period because of a
shortage of funds must include the categories of participants
whose benefits are being suspended or terminated (in addition
to other information required by the Secretary).
The Secretary must establish standards for proper,
efficient, and effective administration, including standards
that will ensure sufficient State agency staff.
Products specifically designed for pregnant, postpartum,
and breastfeeding women, or infants, are to be made available
at the Secretary's discretion if they are commercially
available or are approved by the Secretary based on clinical
tests.
State agencies must (a) provide nutrition education,
breastfeeding promotion, and drug abuse education in languages
other than English and (b) use appropriate foreign language
materials in areas where a substantial number of low-income
households speak a language other than English.
State agencies may adopt methods of delivering benefits
to accommodate the special needs and problems of incarcerated
individuals.
Local agencies must provide information about other
potential sources of food assistance to WIC applicants who
apply but cannot be served. [Sec. 17(f) of the CNA]
Information. On completion of the 1990 Census, the
Secretary must make available an estimate (by State and county)
of the number of women, infants, and children who are members
of families with incomes below 185 percent of the Federal
poverty guidelines. [Sec. 17(g)(6) of the CNA]
Procurement of Infant Formula. The Secretary must require
State agencies to report breastfeeding data for the biennial
report by the Secretary on participant characteristics.
No State may receive a WIC allocation unless it meets
certain conditions related to cost containment prior to
September 1989.
States having cost-containment contracts in effect in
1989 need not meet new cost containment provisions until the
term of the contract runs out.
The Secretary is required to establish pilot projects to
determine the feasibility of using ``universal product codes''
to aid vendors in providing the correct infant formula to WIC
participants.
The Secretary must follow certain specific rules in
soliciting cost containment bids for infant formula on behalf
of States.
The Secretary must promote the joint purchase of infant
formula by States, encourage the purchase of supplemental foods
other than infant formula under cost containment procedures,
inform States of the benefits of cost containment, and provide
technical assistance related to cost containment.
The Secretary must use $10 million a year (from carryover
funds) for infrastructure development, special projects of
regional or national significance, and special breastfeeding
support and promotion projects. [Sec. 17(h) of the CNA]
National Advisory Council. The Secretary designates the
Chairman and Vice-Chairman of the National Advisory Council on
Maternal, Infant, and Fetal Nutrition. [Sec. 17(k) of the CNA]
Completed Study; Community College Demonstration; Grants
for Information and Data Systems. The Secretary must, by May
1989, conduct a study on appropriate methods of drug abuse
education instruction. The Secretary must prepare and
distribute drug abuse education materials. Specific
appropriations for the study and materials are authorized for
fiscal year 1989, and, for later years, ``such sums as may be
necessary'' are authorized for distributing drug abuse
education materials and making referrals under drug abuse
education programs. [Sec. 17(n) of the CNA]
The Secretary is authorized to conduct a pilot project
for WIC clinics in community colleges offering nursing
education programs. [Sec. 17(o) of the CNA]
The Secretary is authorized to make grants to State
agencies to improve WIC information and data systems.
Appropriations for this are authorized through fiscal year
1994. [Sec. 17(p) of the CNA]
House bill
Definitions. Makes clear that, after 365 days in a
temporary accommodation, individuals will not be considered
homeless. [Sec. 3429(a)]
[Note.--Sec. 3429(a) also makes a technical/conforming
amendment to the definition of ``drug abuse education.''
Secretary's Promotion of WIC. Deletes the requirement
that the Secretary promote the WIC program. [Sec. 3429(b)]
Eligible Participants. Deletes the requirement for the
Secretary's biennial report on participants. [Sec. 3429(c)]
Nutrition and Drug Abuse Education. Makes provision of
drug abuse education optional.
Deletes the requirement to annually evaluate nutrition
education and breastfeeding promotion/support.
Removes the requirement for providing information about
food stamps, AFDC, and child support enforcement. Replaces it
with authority for State agencies to provide local agencies
with materials describing other programs for which WIC
participants may be eligible.
Deletes the specific authority for using a nutrition
education master file.
Requires that local agencies maintain and make available
lists of local substance abuse counseling and treatment
resources. [Sec. 3429(d)]
State Plan. Revises the State plan submission requirement
to stipulate that State agencies only be required to submit
substantive changes in their plan for the Secretary's approval.
Removes the noted specific State plan requirements for
coordination. Replaces them with a requirement that State plans
include a plan to coordinate WIC operations with other services
or programs that may benefit WIC participants and applicants.
Adds a requirement that State WIC plans include a plan to
improve access for those who are employed, or who reside in
rural areas.
Removes the noted specific State plan requirements for
reaching those most in need and not participating. Retains a
requirement that State plans include a plan for reaching and
enrolling women in the early months of pregnancy and migrants.
Deletes the noted specific State plan requirements as to
how incarcerated persons will be provided benefits.
Deletes the noted specific State plan requirements as to
improving program access for the employed and rural residents.
[Note.--An earlier provision adds a general State plan
requirement for improved access for these persons.]
Deletes the noted State plan requirement for an estimate
of increased participation when funds conversion authority is
chosen by the State.
Revises authority for the Secretary to require other
information as the Secretary may require to a stipulation that
plans must include other information as the Secretary may
``reasonably'' require.
Makes a conforming amendment deleting a provision that
permits State agencies to submit only those parts of plans that
differ from previous years.
Deletes the public comment procedures requirement.
Deletes these processing requirements for local WIC
agency applications.
Deletes the noted requirements for announcing and
distributing information and certification in hospitals.
Deletes an out-of-date requirement that States advise the
Secretary on procedures to reduce purchases of low-iron infant
formula.
Revises the requirement to make accounts and records
available at all times to a requirement that they be available
at ``any reasonable time.''
Deletes noted requirements as to the content of
suspension/termination notices.
Deletes the requirement for staffing standards.
Deletes the noted provision stipulating that products
designed for women and infants may be made available in the WIC
program if commercially available or approved based on tests.
Makes optional the provision of services and use of
materials in languages other than English.
Deletes specific authority for delivery methods to
accommodate incarcerated individuals.
Makes optional the requirement to provide information
about other potential sources of food assistance. [Sec.
3429(e)]
Information. Deletes out-of-date requirement for a report
on those income-eligible for the WIC program based on the 1990
Census. [Sec. 3429(f)]
Procurement of Infant Formula. Deletes the requirement
for States to report data on breastfeeding for a biennial
report that is eliminated elsewhere in the bill.
Deletes an out-of-date requirement to meet cost
containment conditions.
Deletes an out-of-date provision relating to cost
containment contracts.
Deletes the requirement for universal product code
pilots.
Deletes conditions on the Secretary when soliciting
infant formula bids on behalf of States.
Deletes noted requirements of the Secretary related to
promoting cost containment.
Removes breastfeeding promotion and support projects as a
use for the Secretary's special fund of $10 million a year.
None of the amendments affecting procurement practices
are to apply to contracts for infant formula in effect on
enactment. [Sec. 3429(g)]
National Advisory Council. Provides that the Advisory
Council elect its Chairman and Vice-Chairman. [Sec. 3429(h)]
Completed Study; Community College Demonstration; Grants
for Information and Data Systems. Deletes requirements for a
1989 drug abuse education study and preparation of materials.
Deletes funding for distributing materials and referrals. [Sec.
3429(I)]
Deletes authority for a pilot for WIC clinics in
community colleges. [Sec. 3429(I)]
Deletes out-of-date authority for information and data
system improvement grants. [Sec. 3429(I)]
Disqualification of WIC Vendors. Adds provisions for
disqualifying WIC vendors that have been disqualified from
participation in the Food Stamp Program. Disqualification is
for the same period as the food stamp disqualification and is
not subject to separate administrative and judicial review.
[Sec. 3429(j)]
Senate amendment
Definitions. Same provisions. [Sec. 1259(a)]
Secretary's Promotion of WIC. Same provision. [Sec.
1259(b)]
Eligible Participants. Same provision. [Sec. 1259(c)]
Nutrition and Drug Abuse Education. No provision.
State Plan. Same provisions, except the Senate amendment
(1) requires plans for improving access to those who are
employed, or who reside, in rural areas; (2) includes no
provisions to delete the public comment procedures requirement,
delete requirements for announcing and distributing information
and certification in hospitals, or to make optional the
provision requiring services and use of materials in languages
other than English. [Sec. 1259(d)]
Information. Same provision. [Sec. 1259(e)]
Procurement of Infant Formula. Same provisions, except
that the Senate amendment has no provision to remove
breastfeeding promotion and support projects as a use for the
Secretary's special fund. [Sec. 1259(f)]
National Advisory Council. Same provision. [Sec. 1259(g)]
Completed Study; Community College Demonstration; Grants
for Information and Data Systems. Same provisions. [Sec.
1259(h)]
Disqualification of WIC Vendors. Same provisions. [Sec.
1259(i)]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. With respect to provisions in
disagreement:
Nutrition Education and Drug Abuse Education. The
conference agreement adopts the House provision with an
amendment retaining the requirement for drug abuse education.
State Plan. The conference agreement: adopts the House
provision regarding plans to improve access to the employed and
those in rural areas; adopts the Senate provision on
requirements for public comment procedures and for announcing
and distributing information and certification in hospitals,
and; adopts the House provision making optional the provision
requiring services and use of materials in languages other than
English.
Procurement of Infant Formula. The conference agreement
adopts the Senate provision retaining breastfeeding promotion
and support projects as a use for the Secretary's special fund.
[Sec. 729]
23. CASH GRANTS FOR NUTRITION EDUCATION
Present law
The Secretary is authorized to make cash grants to State
education agencies for demonstration projects in nutrition
education. [Sec. 18 of the CNA]
House bill
Deletes authority for cash grants for nutrition education
demonstration projects. [Sec. 3430]
Senate amendment
Same provision. [Sec. 1260]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 730]
24. nutrition education and training
Present law
Findings. Congress finds that:
the proper nutrition of children is a matter of
highest priority;
the lack of understanding of good nutrition
principles and their relation to health can contribute
to children's rejection of nutritious foods and plate
waste;
many school food service personnel and teachers do
not have adequate training;
the lack of parental knowledge of nutrition can be
detrimental on children's nutritional development; and
there is a need to create opportunities for
children to learn about good nutrition. [Sec. 19(a) of
the CNA]
It is the purpose of the provisions for a nutrition
education and training program to (a) encourage dissemination
of information to children and (b) establish a system of grants
to State education agencies for nutrition education and
training programs. [Sec. 19(b) of the CNA]
Use of Funds. State agencies may use nutrition education
and training funds for:
funding a nutrition component in consumer
homemaking and health education programs;
instructing teachers and school staff on how to
promote better nutritional health and motivate children
from a variety of linguistic and cultural backgrounds
to practice sound eating habits;
develop means of providing nutrition education in
``language appropriate'' materials through after-school
programs;
training related to healthy and nutritious meals;
creating instructional programming on the ``Food
Guide Pyramid'' (including language appropriate
materials) for teachers, food service staff, and
parents;
funding aspects of the Secretary's ``Strategic Plan
for Nutrition Education;''
encouraging public service advertisements to
promote healthy eating habits for children, including
language appropriate materials and advertisements;
coordinating and promoting nutrition education and
training activities in local school districts;
contracting with public and private nonprofit
education institutions to conduct nutrition education
and training;
increasing public awareness of the importance of
breakfasts; and
coordinating and promoting nutrition education and
training activities (including those under the summer
and child care food programs). [Sec. 19(f) of the CNA]
States may receive planning and assessment grants for
nutrition education and training. [Sec. 19(f) of the CNA]
Nothing in the provisions for a nutrition education and
training program prohibits agencies from making available or
distributing materials, resources, activities, or programs to
adults. [Sec. 19(f) of the CNA]
Accounts, Records, and Reports. State education agencies
must make accounts and records available for inspection and
audit by the Secretary ``at all times.'' [Sec. 19(g) of the
CNA]
State Coordinators for Nutrition; State Plan. A State
nutrition coordinator's assessment of the nutrition education
and training needs of the State must include identification of
all students in need of nutrition education and identification
of State and local resources for materials, facilities, staff,
and methods for nutrition education. [Sec. 19(h) of the CNA]
State nutrition coordinators' comprehensive plans for
nutrition education (prepared after receiving a planning and
assessment grant) must meet certain specific standards. [Sec.
19(h) of the CNA]
Authorization of Appropriations. Funding for the
nutrition education and training program is permanently
appropriated at $10 million a year. State grants are based on a
rate of 50 cents for each child enrolled, except that no State
may receive less than $62,500. [Sec. 19(I) of the CNA]
Assessment. By October 1, 1990, each State must assess
its nutrition education and training program. [Sec. 19(j) of
the CNA]
House bill
Findings. Deletes the noted findings in present law and
replaces them with a finding 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.'' [Sec. 3431(a)]
Removes provisions referring to dissemination of
information from the statement of purpose (they are included in
the findings as noted above). [Sec. 3431(a)]
Use of Funds. Deletes the noted provisions for use of
nutrition education and training funds. Adds a provision
allowing funds to be used for ``other appropriate activities,
as determined by the State.'' [Sec. 3431(b)]
Deletes authority for nutrition education and training
planning and assessment grants. [Sec. 3431(b)]
Deletes the noted provision relating to materials and
activities for adults. [Sec. 3431(b)]
Accounts, Records, and Reports. Revises the requirement
to make accounts and records available at all times to a
requirement that they be available at ``any reasonable time.''
[Sec. 3431(c)]
State Coordinators for Nutrition; State Plan. Deletes the
noted specific requirements for nutrition education and
training State assessments. [Sec. 3431(d)]
Deletes all specific requirements on comprehensive
nutrition education plans prepared after a planning and
assessment grant (these grants are eliminated elsewhere in the
bill). [Sec. 3431(d)]
Authorization of Appropriations. Beginning with fiscal
year 1997, appropriations are authorized at $10 million a year
(through 2002). State grants are based on a rate of 50 cents
for each child enrolled, except that no State will receive less
than $75,000. If funds are insufficient to provide grants based
on the 50 cent/$75,000 rule, the amount of each State's grant
is ratably reduced. [Sec. 3431(e) & (g)]
Assessment. Deletes the out-of-date requirement for State
assessments of their nutrition education and training programs.
[Sec. 3431(f)]
Senate amendment
Findings. Same provisions. [Sec. 1261(a)]
Use of Funds. Same provisions. [Sec. 1261(b)]
Accounts, Records, and Reports. Same provision. [Sec.
1261(c)]
State Coordinators for Nutrition; State Plan. Same
provisions. [Sec. 1261(d)]
Authorization of Appropriations. Same provisions. [Sec.
1261(e) & (g)]
Assessment. Same provision. [Sec. 1261(f)]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 731]
Subtitle C--Miscellaneous Provisions
25. coordination of school lunch, school breakfast, and summer food
service programs
Present law
No provisions.
House bill
Requires the Secretary to develop proposed changes to
regulations under the school lunch, school breakfast, and
summer food service programs for the purpose of simplifying and
coordinating them into a comprehensive meal program. Requires
that the Secretary consult with local, State, and regional
administrators in developing the proposed changes. Not later
than November 1, 1997, the Secretary must submit to Congress a
report on the proposed changes. [Sec. 3441]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the House provisions.
[Sec. 741]
26. rounding rules
Present law
When indexed, reimbursement rates for the school lunch,
school breakfast, special milk, and commodity assistance
programs are rounded to the nearest quarter cent. [Sec. 3 and 4
of the CNA; Sec. 6 and 11 of the NSLA]
House bill
No provision.
[Note.--Provisions amending the law governing the summer
food service program and the child and adult care food program
require that, when indexed, their reimbursement rates be
rounded down to the nearest lower cent increment.]
Senate amendment
Requires that, when indexed, reimbursement rates for the
school breakfast, school lunch, special milk, and commodity
assistance programs be rounded down to the nearest lower cent
increment. [Sec. 1262]
[Note.--As with the House bill, amendments affecting the
summer food service program and the child and adult care food
program include comparable rounding rules.]
Conference agreement
The conference agreement adopts the Senate provisions
with an amendment making the new rounding rules applicable only
to full price meals in the school breakfast and school lunch
programs and full price meals in child care centers. [Sec. 704]
Title VIII--Food Stamps and Commodities Distribution
Subtitle A--Food Stamp Program
1. DEFINITION OF CERTIFICATION PERIOD
Present law
For households subject to periodic (monthly) reporting,
eligibility certification periods must be 6-12 months, but the
Secretary may waive this rule. For households receiving
federally aided public assistance or general assistance,
certification periods must coincide with the certification
periods for the other public assistance programs. For other
households, certification periods generally must not be less
than 3 months--but they can be (1) up to 12 months for those
consisting entirely of unemployable, elderly, or primarily
self-employed persons or (2) as short as circumstances require
for those with a substantial likelihood of frequent changes in
income or other circumstances and for any household on initial
determination. The Secretary may waive the maximum 12-month
period to improve program administration. [Sec. 3(c)]
House bill
Replaces existing provisions as to certification periods
with a requirement that certification periods not exceed 12
months--but can be up to 24 months if all adult household
members are elderly or disabled. Requires that State agencies
have at least 1 contact with each certified household every 12
months. [Sec. 1011]
Senate amendment
Same provision. [Sec. 1111]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 801]
2. DEFINITION OF COUPON
Present law
``Coupon'' is defined to mean any coupon, stamp, or type
of certificate issued under provisions of the Food Stamp Act.
[Sec. 3(d)]
House bill
Expands the definition of coupon to include:
authorization cards, cash or checks issued in lieu of a coupon,
or access devices (including an electronic benefit transfer
card or personal identification number). [Sec. 1012]
Senate amendment
Same provision. [Sec. 1112]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 802]
3. TREATMENT OF CHILDREN LIVING AT HOME
Present law
Parents and their children 21 years of age or younger who
live together must apply for food stamps as a single household
(thereby reducing aggregate household benefits)--except for
children who are themselves parents living with their children
and children who are married and living with their spouses.
[Sec. 3(i)]
House bill
Removes the exception, from the requirement that related
persons apply together as a single household, for children who
are themselves parents living with their children and children
who are married and living with their spouses. [Sec. 1013]
Senate amendment
Same provision. [Sec. 1113]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 803]
4. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSEHOLD DETERMINATIONS
Present law
Certain persons who live together may apply for food
stamps as separate households (thereby increasing aggregate
household benefits) if they purchase food and prepare meals
separately and (1) are unrelated or (2) are related but are not
spouses or children living with their parents [see item 3 for
the proposed change in the household definition]. In addition,
elderly persons who live with others and cannot purchase food
and prepare meals separately because of a substantial
disability may apply as separate ``households'' as long as
their co-residents' income is below prescribed limits. [Sec.
3(i)]
House bill
Permits States to establish criteria that prescribe when
persons who live together (and might otherwise be allowed to
apply as separate households) must apply for food stamps as a
single household--without regard to common purchase of food and
preparation of meals. [Sec. 1014]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the Senate provision.
5. ADJUSTMENT OF THE THRIFTY FOOD PLAN
Present law
Maximum food stamp benefits are defined as 103 percent of
the cost of the Agriculture Department's ``Thrifty Food Plan,''
adjusted for food-price inflation each October to reflect the
plan's cost in the immediately preceding June--and rounded down
to the nearest dollar. [Sec. 3(o)]
House bill
Sets maximum monthly food stamp benefits at 100 percent
of the cost of the Thrifty Food Plan, effective October 1,
1996, adjusted annually as under present law. Requires that the
October 1996 adjustment not reduce maximum benefit levels.
[Sec. 1015]
Senate amendment
Same provision. [Sec. 1114]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 804]
6. DEFINITION OF HOMELESS INDIVIDUAL
Present law
For food stamp eligibility and benefit determination
purposes, a ``homeless individual'' is a person lacking a
fixed/regular nighttime residence or one whose primary
nighttime residence is a shelter, a residence intended for
those to be institutionalized, a temporary accommodation in the
residence of another, or a public or private place not designed
to be a regular sleeping accommodation for humans. [Sec. 3(s)]
House bill
Provides that persons whose primary nighttime residence
is a temporary accommodation in the home of another may only be
considered homeless if the accommodation is for no more than 90
days. [Sec. 1016]
Senate amendment
Same provision. [Sec. 1115]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 805]
7. STATE OPTION FOR ELIGIBILITY STANDARDS
Present law
The Secretary is directed to establish uniform national
standards of eligibility for food stamps, with certain
variations allowed for Alaska, Hawaii, Guam, and the Virgin
Islands, and in other cases (e.g., imposition of monthly
reporting requirements). States may not impose any other
standards of eligibility as a condition of participation in the
program. [Sec. 5(b)]
House bill
Explicitly permits nonuniform standards of eligibility
for food stamps. [Sec. 1017]
Senate amendment
Same provision. [Sec. 1116]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 806]
8. EARNINGS OF STUDENTS
Present law
The earnings of an elementary/secondary student are
disregarded as income until the student's 22nd birthday. [Sec.
5(d)(7)]
House bill
Provides an earnings disregard for elementary/secondary
students until the student's 20th birthday. [Sec. 1018]
Senate amendment
Same provision, except that during fiscal year 2002
earnings will be disregarded until the student's 18th birthday.
[Sec. 1117]
Conference agreement
The conference agreement adopts the House provision with
an amendment providing for the counting of earnings of
elementary/secondary students once they reach age 18. [Sec.
807]
9. ENERGY ASSISTANCE
Present law
Payments or allowances for energy assistance provided by
State or local law are, under rules set by the Secretary,
disregarded as income. [Sec. 5(d)(11) and 5(k)]
Payments or allowances for weatherization assistance are
disregarded as energy assistance (although weatherization
payments could otherwise be disregarded as lump-sum payments,
vendor payments, or reimbursements). [Sec. 5(d)(11) and 5(k)]
Federal Low-Income Home Energy Assistance Program
(LIHEAP) benefits are disregarded as income. [Sec. 5(d)(11) and
5(k) of the Food Stamp Act and sec. 2605(f) of the Low-Income
Home Energy Assistance Act]
Certain utility allowances/reimbursements under
Department of Housing and Urban Development (HUD) programs are
disregarded as income. [Sec. 5(d)(11) and 5(k)]
Shelter expense deductions may be claimed for utility
costs covered by LIHEAP benefits, but not in the case of other
disregarded energy assistance--unless the household has out-of-
pocket expenses. [Sec. 5(e) of the Food Stamp Act and sec.
2605(f) of the Low-Income Home Energy Assistance Act]
House bill
Requires that State/local energy assistance be counted as
income. [Sec. 1019]
Requires an income disregard for one-time payments/
allowances under a Federal or State law for the costs of
weatherization or emergency repair/replacement of unsafe/
inoperative furnaces or other heating/cooling devices. [Sec.
1019]
Requires that LIHEAP benefits be counted as income. [Sec.
1019]
Requires that HUD utility allowances/reimbursements be
counted as income. [Sec. 1019]
Allows claiming shelter expense deductions for utility
costs covered directly or indirectly by the LIHEAP or other
counted energy assistance. [Sec. 1019]
[Note.--Sec. 2131 amends sec. 2605(f) of the Low-Income
Home Energy Assistance Act to delete that Act's requirement
that LIHEAP recipients must be allowed to claim the amount of
their LIHEAP benefits as a shelter expense.]
Senate amendment
State/local assistance. Same provision (technical
differences). [Sec. 1118]
Weatherization assistance. Same provision (technical
differences). [Sec. 1118]
LIHEAP. Present law (technical differences). [Sec. 1118]
HUD assistance. Present law (technical differences).
[Sec. 1118]
Shelter expense deductions. Present law (technical
differences). [Sec. 1118]
Conference agreement
The conference agreement adopts the Senate provisions
with a technical amendment. [Sec. 808]
10. DEDUCTIONS FROM INCOME
Present law
Standard Deductions. All households are allowed standard
deductions from their otherwise countable income. Standard
deductions are indexed annually (each October) for inflation
based on the Consumer Price Index for urban wage earners (CPI-
U) for items other than food and rounded down to the nearest
dollar. For fiscal year 1995, standard deductions were: $134 a
month for the 48 contiguous States and the District of
Columbia, $229 for Alaska, $189 for Hawaii, $269 for Guam, and
$118 for the Virgin Islands. For fiscal year 1996, they were
``scheduled'' to rise to: $138, $236, $195, $277, and $122,
respectively. This was barred by the fiscal year 1996
appropriations measure, and fiscal year 1996 standard deduction
levels are at the fiscal year 1995 amounts. [Sec. 5(e)]
Earned Income Deduction. Households may claim a deduction
for 20 percent of any earnings. This deduction is not allowed
with respect to any income that a household willfully or
fraudulently fails to report in a timely manner, as proven in a
fraud hearing proceeding (i.e., it is not allowed when
determining the amount of a benefit overissuance). [Sec. 5(e)]
Homeless Shelter Allowance. For homeless households not
receiving free shelter throughout the month, States may develop
a homeless shelter expense estimate (a standard allowance) to
be used in calculating an excess shelter expense deduction.
States must use this amount unless the household verifies
higher expenses. The Secretary may prohibit the use of the
allowance for households with extremely low shelter costs. The
maximum allowance amount is inflation indexed annually and
currently stands at $143 a month (fiscal year 1996). [Sec.
11(e)(3)]
Excess Shelter Expense Deduction. Households may claim
excess shelter expense deductions from their otherwise
countable income--in the amount of any shelter expenses
(including utility costs) above 50 percent of their countable
income after all other deductions have been applied. For
households with elderly or disabled members, these deductions
are unlimited. For other households, they are limited to: $247
a month in the 48 contiguous States and the District of
Columbia, $429 in Alaska, $353 in Hawaii, $300 in Guam, and
$182 in the Virgin Islands. Effective January 1, 1997, these
limits on excess shelter expense deductions for households
without elderly or disabled members are lifted. [Sec. 5(e)]
States may develop and use ``standard utility
allowances'' (as approved by the Secretary) in calculating
households' shelter expenses. However, households may (1) claim
actual expenses instead of the allowance and (2) switch between
an actual expense claim and the standard allowance at the end
of any certification period and 1 additional time during any
12-month period. [Sec. 5(e)]
House bill
Standard Deductions. Indefinitely freezes standard
deduction amounts at their present levels (e.g., $134 for the
48 contiguous States and the District of Columbia). [Sec. 1020]
Earned Income Deduction. Disallows an earned income
deduction for any income not reported in a timely manner and
for the public assistance portion of income earned under a work
supplementation/support program. [Sec. 1020]
Homeless Shelter Allowance. Indefinitely freezes the
maximum homeless shelter allowance at its present level ($143).
States may use it in calculating an excess shelter expense
deduction (without regard to actual costs) and may prohibit its
use for households with extremely low shelter costs. [Sec.
1020]
Excess Shelter Expense Deduction. Indefinitely retains
current limits on excess shelter expense deductions for
households without elderly or disabled members (e.g., $247 for
the 48 contiguous States and the District of Columbia). [Sec.
1020]
Permits States to make use of standard utility allowances
mandatory for all households if (1) the State has developed
separate standards that do and do not include the cost of
heating and cooling and (2) the Secretary finds that the
standards will not result in increased Federal costs. [Sec.
1020]
Senate amendment
Standard Deductions. Extends the present standard
deduction levels (e.g., $134 for the 48 contiguous States)
through November 1996. For December 1996 through September
2001, sets standard deduction at $120, $206, $170, $242, and
$106. For October 2001 through August 2002, sets standard
deductions at $113, $193, $159, $227, and $100. For September
2002, sets standard deductions at $120, $206, $170, $242, and
$106. Beginning with fiscal year 2003, standard deductions are
indexed for inflation as under present law. [Sec. 1119]
Earned Income Deduction. Same provision. [Sec. 1119]
Homeless Shelter Allowance. Same provision. [Sec. 1119]
Excess Shelter Expense Deduction. Effective January 1,
1997, increases the current limits on excess shelter expense
deductions to $342 in the 48 contiguous States and the District
of Columbia, $594 in Alaska, $489 in Hawaii, $415 in Guam, and
$252 in the Virgin Islands. No further increases are provided.
[Sec. 1119]
Includes the same provision as in the House bill in
regard to mandatory standard utility allowances. [Sec. 1119]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. With regard to the provisions in
disagreement:
the conference agreement adopts the House provision
as to standard deductions; and
the conference agreement adopts the Senate
provision as to limits on the excess shelter expense
deduction with an amendment (1) requiring that they
continue at their present-law levels (e.g. $247 for the
48 contiguous States and the District of Columbia)
through December 31, 1996, (2) for January 1, 1997,
through fiscal year 1998, increasing the limits to $250
for the 48 States and the District of Columbia, $434
for Alaska, $357 for Hawaii, $304 for Guam, and $184
for the Virgin Islands, (3) for fiscal years 1999 and
2000, increasing the limits to $275, $478, $393, $334,
and $203, and (4) for fiscal years 2001, 2002, and each
subsequent fiscal year, increasing the limits to $300,
$521, $429, $364, and $221.
[Sec. 809]
11. VEHICLE ALLOWANCE
Present law
In determining a household's liquid assets for food stamp
eligibility purposes, a vehicle's fair market value in excess
of $4,600 is counted. This threshold is scheduled to rise to an
estimated $5,150 on October 1, 1996, and be adjusted each
October thereafter to reflect changes in the new car component
of the CPI-U for the 12-month period ending the immediately
preceding June (rounded to the nearest $50). Excluded from this
rule are vehicles used to produce income, necessary for
transportation of a disabled household member, or depended on
to carry fuel or water. [Sec. 5(g)]
House bill
Retains the threshold above which the fair market value
of a vehicle is counted as a liquid asset at the current
level--$4,600. [Sec. 1021]
Senate amendment
Effective October 1, 1996, sets the threshold above which
the fair market value of a vehicle is counted as a liquid asset
to $4,650. No further increases are provided. [Sec. 1120]
Conference agreement
The conference agreement adopts the Senate provision.
[Sec. 810]
12. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED AS INCOME
Present law
AFDC, or general assistance housing aid, provided to a
third party on behalf of a food stamp household is considered
paid directly to the household (and thus counted as household
income) unless, among other exceptions, it is housing
assistance paid on behalf of households residing in
``transitional housing for the homeless.'' [Sec. 5(k)]
House bill
Removes the exception for vendor payments for
transitional housing for the homeless. [Sec. 1022]
Senate amendment
Same provision. [Sec. 1121]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 811]
13. SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-EMPLOYED
Present law
The cost of producing self-employment income is
disregarded (subtracted out) in calculating household income.
[Sec. 5(d)]
House bill
No provision.
Senate amendment
Provides that the Secretary establish a procedure
(designed not to increase Federal costs) by which States may
use a reasonable estimate of the cost of producing self-
employment income in lieu of calculating actual costs, not
later than 1 year after enactment. The procedure must allow
States to estimate costs for all types of self-employment
income and may differ for different types of self-employment
income. [Sec. 1122]
Conference agreement
The conference agreement adopts the Senate provision with
an amendment providing that the Secretary establish a procedure
by which States may submit a method for determining reasonable
estimates of the cost of producing self-employment income
designed not to increase Federal costs. [Sec. 812]
14. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM REQUIREMENTS
Present law
The disqualification period for the first intentional
violation of program requirements is 6 months. The penalty for
a second intentional violation (and the first violation
involving trading of a controlled substance) is 1 year. [Sec.
6(b)(1)]
House bill
Increases the disqualification penalty for a first
intentional violation to 1 year. Increases the penalty for a
second intentional violation (and the first involving a
controlled substance) to 2 years. [Sec. 1023]
Senate amendment
Same provision. [Sec. 1123]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 813]
15. DISQUALIFICATION OF CONVICTED INDIVIDUALS
Present law
Permanent disqualification is required for the third
intentional violation of program requirements, the second
violation involving trading of a controlled substance, and the
first violation involving trading of firearms, ammunition, or
explosives. [Sec. 6(b)(1)]
House bill
Adds a requirement for permanent disqualification of
persons convicted of trafficking in food stamp benefits where
the benefits have a value of $500 or more. [Sec. 1024]
Senate amendment
Same provision. [Sec. 1124]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 814]
16. DISQUALIFICATION
Present law
Conditions of Participation. Non-exempt individuals
between 16 and 60 are ineligible if they: (1) refuse to
register for employment, (2) refuse without good cause
(including lack of adequate child care) to participate in an
employment or training program when required to do so by the
State, or (3) refuse, without good cause, a job offer meeting
minimum standards. In addition, if the individual is head of
household and fails to comply with one of the above-noted
conditions or voluntarily quits a job without good cause, the
entire household is ineligible. [Sec. 6(d)(1)]
Duration of Ineligibility/Household Ineligibility.
Disqualification periods for failure to meet work/training
conditions of participation are (1) 2 months or until
compliance (whichever is first) for most failures and (2) 90
days in the case of a voluntary quit. [Sec. 6(d)(1)]
House bill
Conditions of Participation. Adds conditions making
individuals ineligible if they (1) refuse without good cause to
provide sufficient information to allow the State agency to
determine their employment status or job availability or (2)
voluntarily and without good cause reduce work effort and
(after the reduction) are working less than 30 hours a week.
Makes ineligibility for failure to comply with workfare
requirements explicit and covered by new (see below) duration
of ineligibility rules. Adds a condition making all individuals
(in addition to heads of household) ineligible if they
voluntarily quit a job without good cause. Lack of adequate
child care, as an explicit good cause exemption for refusal to
participate in an employment or training program, is removed.
[Sec. 1025]
Duration of Ineligibility/Household Ineligibility.
Establishes new mandatory minimum disqualification periods for
individuals failing to comply with any work/training condition
of participation. For the first violation, individuals are
ineligible until they fulfill work/training conditions, for 1
month, or for a period (determined by the State) not to exceed
3 months--whichever is later. For the second violation,
individuals are ineligible until they fulfill work/training
conditions, for 3 months, or for a period (determined by the
State) not to exceed 6 months--whichever is later. For a third
or subsequent violation, individuals are ineligible until they
fulfill work/training conditions, for 6 months, until a date
set by the State agency, or (at State option) permanently.
[Sec. 1025]
Establishes a new household ineligibility rule: if any
individual who is head of household is disqualified under a
work/training condition of participation, the entire household
is, at State option, ineligible for a period not to exceed the
lesser of the duration of the individual's ineligibility or 180
days. [Sec. 1025]
Administration. In establishing cases of good cause,
voluntary quit, and reduction of work effort, the Secretary
determines the meaning of the terms. States determine the
meaning of other terms related to work/training conditions of
participation and the procedures for making compliance
decisions, but cannot make determinations that are less
restrictive than a comparable one under the State's family
assistance block grant (TANF) program. [Sec. 1025]
Senate amendment
Conditions of Participation. Same provision. [Sec. 1125]
Duration of Ineligibility/Household Ineligibility. Same
provision. [Sec. 1125]
Administration. Same provision. [Sec. 1125]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 815]
17. CARETAKER EXEMPTION
Present law
Parents or other household members with responsibility
for the care of a dependent child under age 6 are exempt from
food stamp work/training conditions of participation. [Sec.
6(d)(2)]
House bill
Permits States to lower the age at which a child
``exempts'' a parent or caretaker from age 6 to not under the
age of 1. [Sec. 1026]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the House provision with
an amendment to permit a State to lower the age at which a
child exempts a parent or caretaker from age 6 to not under age
1, if the State requested a waiver to lower the age of a
dependent child that exempts the parent or caretaker and had
the waiver denied by the Secretary as of August 1, 1996. The
State may lower the age of the child for not more than 3 years.
[Sec. 816 ]
18. EMPLOYMENT AND TRAINING
Present law
Programs. States must operate employment and training
programs for nonexempt food stamp recipients and place a
minimum proportion of those covered in a program component.
Program components can range from job search or education
activities to work experience/training and workfare
assignments.
Work experience/training program components must limit
assignments to projects serving a useful public purpose, use
the prior training/experience of assignees, not provide work
that has the effect of replacing others, and provide the same
benefits and working conditions provided others.
States and political subdivisions also may operate
workfare programs under which nonexempt recipients may be
required to perform work in return for the minimum wage
equivalent of their household's monthly food stamp allotment.
Workfare assignments may not replace or prevent the employment
of others and must provide the same benefits and working
conditions provided others.
The total hours of work required of a household under an
employment/training program (including workfare) cannot exceed
the minimum wage equivalent of the household's monthly
allotment. Monthly participation in an employment/training
program required of any household member cannot exceed 120
hours (when added to other work). And workfare hours (when
added to other work) cannot exceed 30 hours a week for a
household member.
Under employment and training programs for food stamp
recipients, States must provide or pay for transportation and
other costs directly related to participation (up to $25 a
month for each participant) and necessary dependent care
expenses (in general, up to local market rates). Under workfare
program, States must reimburse participants for transportation
and other costs directly related to participation (up to $25 a
month for each participant). [Sec. 6(d)(4) and sec. 20]
Funding. To support employment and training programs for
food stamp recipients, States receive a formula share of
required spending of $75 million a year. Each State's share is
based on its share of nonexempt recipients and its share of
those placed in employment/training program components. [Sec.
16(h)]
In addition, States receive a 50 percent match for any
additional administrative or participant support costs. [Sec.
16(h)]
House bill
Programs. Revises the existing requirements for State-
operated employment and training programs for food stamp
recipients:
makes clear that work experience is a purpose of
employment and training programs;
requires that each component of an employment/
training program be delivered through a ``statewide
workforce development system,'' unless the component is
not available locally through the system;
expands the existing State option to apply work/
training requirements to applicants to include all
work/training requirements, not only job search;
removes specific Federal rules governing job search
components (i.e., those tied to rules in the AFDC
program);
removes provisions for employment/training
components related to work experience requiring that
they be in public service work and use recipients'
prior training/experience;
removes specific Federal rules as to States'
authority to exempt categories and individuals from
employment/training requirements, giving States full
latitude to determine exemptions;
removes a requirement to serve volunteers;
removes the requirement for ``conciliation
procedures'' for resolving disputes involving
participation in employment/training programs;
limits employment and training funding provided by
the food stamp program for services to family
assistance block grant (TANF) recipients to the amount
used by the State for AFDC recipients in fiscal year
1995; and
removes provisions for Federal performance
standards on States. [Sec. 1027]
Funding. Provides for required Federal spending of
increasing amounts for employment and training programs: $79
million in fiscal year 1997, $81 million in 1998, $84 million
in 1999, $86 million in 2000, $88 million in 2001, and $90
million in 2002. State allocations are based on a ``reasonable
formula'' (determined by the Secretary) that gives
consideration to each State's population of persons subject to
the new work requirement (see item 25). [Sec. 1027]
Provides that the 50 percent match for additional
administrative costs can include costs for case management/
casework to facilitate the transition from economic dependency
to self-sufficiency through work. [Sec. 1027]
Deletes a requirement for a report from the Secretary on
modifying Federal employment and training program payments to
States to reflect their effectiveness in carrying out
employment and training programs. [Sec. 1027]
Senate amendment
Programs. Same provisions. [Sec. 1126]
Funding. Same provisions, except that required Federal
spending is $85 million a year for fiscal years 1997-2002.
[Sec. 1126]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills and adopts House provision with regard to
Funding. [Sec. 817]
19. FOOD STAMP ELIGIBILITY
Present law
The income and resources of aliens ineligible under Food
Stamp Act provisions are counted as available to the remainder
of the household, less a pro rata share for the ineligible
alien. [Sec. 6(f)]
House bill
Permits States the option to count all of the income and
resources of an alien ineligible under Food Stamp Act
provisions as available to the remainder of the household.
[Sec. 1066]
Senate amendment
Same provision, with technical differences. [Sec. 1127]
Conference agreement
The conference agreement adopts the Senate provision.
[Sec. 818]
20. comparable treatment for disqualification
Present law
Households penalized for an intentional failure to comply
with a Federal, State, or local welfare program may not, for
the duration of the penalty, receive an increased food stamp
allotment because the welfare payment has been reduced. [Sec.
8(d)]
Persons are exempt from food stamp work/training
conditions of participation if they are currently subject to
and complying with AFDC or unemployment insurance work
registration requirements. Failure to comply with an AFDC/
unemployment insurance work registration requirement that ``is
comparable to'' a food stamp work requirement results in
disqualification as if the food stamp requirement had been
violated. [Sec. 6(d)(2)]
House bill
If an individual is disqualified for failure to perform
an action required under a Federal, State, or local law
relating to means-tested public assistance, the State agency is
permitted to impose the same disqualification for food stamps.
If a disqualification is imposed under the family
assistance block grant (TANF) rules, States are permitted to
use the TANF rules and procedures to impose the same
disqualification for food stamps.
Permits individuals disqualified from food stamps because
of failure to perform a required action under another public
assistance program to apply for food stamps as new applicants
after the disqualification period has expired, except that a
prior disqualification under food stamp program work/training
rules must be considered in determining eligibility.
Requires States to include in their State plans the
guidelines they use in carrying out food stamp disqualification
for failure to perform another program's required action(s).
[Sec. 1028]
Removes the requirement that an AFDC/unemployment
insurance work requirement be ``comparable'' to a food stamp
requirement to bring on disqualification from food stamps.
[Sec. 1028]
Senate amendment
Same provisions. [Sec. 1128]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 819]
21. disqualification for receipt of multiple food stamp benefits
Present law
No comparable provision.
House bill
Adds a provision making individuals ineligible for 10
years if they are found by a State agency (or Federal or State
court) to have made a fraudulent statement with respect to
identity or residence in order to receive multiple food stamp
benefits simultaneously. [Sec. 1029]
Senate amendment
Same provision. [Sec. 1129]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 820]
The conferees note that State agency hearing processes
have sufficient recipient protections to warrant a decision to
impose a 10-year disqualification in these cases.
22. disqualification of fleeing felons
Present law
No provision.
House bill
Adds a provision making individuals ineligible while they
are fleeing to avoid prosecution, custody, or confinement for a
felony or attempted felony or violating a condition of
probation or parole. [Sec. 1030]
Senate amendment
Same provision. [Sec. 1130]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 821]
23. cooperation with child support agencies
Present law
Custodial Parents. No provisions.
Noncustodial Parents. No provisions.
House bill
Custodial Parents. Permits States to disqualify custodial
parents of children under the age of 18 who have an absent
parent, unless the parent cooperates with the State child
support agency in establishing the child's paternity and
obtaining support for the child and the parent. Cooperation is
not required if the State finds there is good cause (in
accordance with Federal standards taking into account the
child's best interest). Fees or other costs for services may
not be charged. [Sec. 1031]
Noncustodial Parents. Permits States to disqualify
putative or identified noncustodial parents of children under
18 if they refuse to cooperate with the State child support
agency in establishing the child's paternity and providing
support for the child. The Secretary and the Secretary of
Health and Human Services must develop guidelines as to what
constitutes a refusal to cooperate, and States must develop
procedures (using these guidelines) for determining whether
there has been a refusal to cooperate. Fees or other costs for
services may not be charged. States must provide privacy
safeguards. [Sec. 1031]
Senate amendment
Custodial Parents. Same provisions. [Sec. 1131]
Noncustodial Parents. Same provisions. [Sec. 1131]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 822]
24. disqualification relating to child support arrears
Present law
No provisions.
House bill
Allows States to disqualify individuals during any period
in which the individual is delinquent in any court-ordered
child support payment, unless the court is allowing a delay or
the individual is complying with a payment plan approved by the
court or a State child support agency. [Sec. 1032]
Senate amendment
Same provision. [Sec. 1132]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 823]
25. work requirement
Present law
No comparable provisions.
House bill
Requirement. After the date of enactment, no nonexempt
individual may be eligible for food stamps for more than 3
months during which the individual does not (1) work at least
20 hours a week (averaged monthly), (2) participate in and
comply with a ``work program'' for at least 20 hours a week (as
determined by the State agency), or (3) participate in a
workfare program. A work program is defined as a program under
the Job Training Partnership Act, a Trade Adjustment Assistance
Act program, or a program of employment and training operated
or supervised by a State or political subdivision that meets
standards approved by the Governor (including a Food Stamp Act
employment and training program), other than job search or job
search training. [Sec. 1033]
General Exemptions. The new work requirement does not
apply to (1) those under 18 or over 50, (2) those who are
medically certified as physically or mentally unfit for
employment, (3) parents or other household members with the
responsibility for a dependent child, (3) those otherwise
exempt from work registration requirements (e.g., those caring
for incapacitated persons), and (4) pregnant women. [Sec. 1033]
Other Provisions. On a State agency's request, the
Secretary may waive application of the new work requirement to
any group of individuals if the Secretary determines that the
area where they reside (1) has an unemployment rate over 10
percent or (2) does not have a sufficient number of jobs to
provide them employment. The Secretary must report the basis
for any waiver to Congress. [Sec. 1033]
Senate amendment
Requirement. No nonexempt individual may be eligible for
food stamps if, during the preceding 12-month period, the
individual received food stamp benefits for 4 months or more
while not (1) working at least 20 hours a week (averaged
monthly), (2) participating in and complying with a ``work
program'' for at least 20 hours a week (as determined by the
State agency), or (3) participating in and complying with a
workfare program. A work program is defined as in the House
bill, with a technical difference. [Sec. 1133]
General Exemptions. Same provisions. [Sec. 1133]
Other Provisions. Provisions for unemployment-rate and
job-availability waivers are the same as in the House bill,
except that the Secretary must respond to a State agency
request within 15 days. [Sec. 1133]
The disqualification imposed under the new work
requirement ceases to apply if, during a 30-day period, an
individual works 80 hours or more, participates in and complies
with a work program (defined above) for at least 80 hours, or
participates in and complies with a workfare program. After
regaining eligibility, the individual again is subject to the
new work requirement, except that a new 12-month period begins.
[Sec. 1133]
State agencies may exempt an individual from the new work
requirement: (1) by reason of ``hardship'' or (2) for up to 2
months (in any 12-month period), if the individual participates
in and complies with a job search or job search training
program under the Food Stamp Act's employment and training
program provisions that requires an average of at least 20
hours a week of participation. The fiscal year average monthly
number of individuals participating because of a hardship
exemption may not exceed 20 percent of the fiscal year average
number of individuals receiving food stamps who are not exempt
from the new work requirement because of the general exemptions
or waivers (noted above). [Sec. 1133]
Provides for a transition to the new work requirement.
Prior to 1 year after enactment, administrators would not
``look back'' a full 12 months; they would look back only to
the date of enactment. [Sec. 1133]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills: General Exemptions and provisions for
waivers in cases of high unemployment and lack of sufficient
jobs. With respect to the provisions in disagreement, the
conference agreement adopts the Senate provisions with an
amendment:
No nonexempt individual may be eligible for food stamps
if, during the preceding 36-month period, the individual
received food stamp benefits for 3 months or more while not (1)
working at least 20 hours a week (averaged monthly), (2)
participating in and complying with a work program for at least
20 hours a week (as determined by the State agency), or (3)
participating in and complying with a workfare program. A work
program is defined as in the House bill. Receipt of benefits
while exempt (including participation under the additional 3-
month eligibility provision described below) or covered by a
waiver would not count toward an individual's basic 3-month
eligibility period.
Individuals denied eligibility under the new work rule
would regain eligibility if, during a 30-day period, the
individual (1) works 80 or more hours, (2) participates in and
complies with the requirements of a work program for 80 or more
hours (as determined by the State agency), or (3) participates
in and complies with the requirements of a workfare program.
After having met this 30-day work/training requirement, the
individual could remain eligible for a consecutive period of 3
months without working at least 20 hours a week or
participating in an employment/training or workfare program.
For example, if an individual works 20 hours a week for at
least 30 days and then loses a job, the individual could retain
food stamp eligibility for 3 consecutive months without working
or being in a training/workfare program.
But individuals could not take advantage of this
provision for an additional 3 months of eligibility, while not
working or in an employment/training or workfare program, for
more than a single 3-month period in a 36-month period.
Individuals regaining eligibility also would remain eligible as
long as they continued to meet requirements to work at least 20
hours a week or participate in a training/workfare program.
Transition provisions are included that provide that the
36-month period established by the new work requirement will
not include any period before the earlier of the date the State
notifies recipients (through means such as individual notices
at certification, recertification, otherwise, mass mailings,
media announcements, or otherwise) about the new work
requirement or 3 months after enactment.
[Sec. 824]
26. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER SYSTEMS
Present law
Rules for EBT Systems. State agencies, with the
Secretary's approval, may implement on-line electronic benefit
transfer (EBT) systems for delivering food stamp benefits. No
State may implement or expand an EBT system without prior
approval from the Secretary. States are responsible for 50
percent of EBT system costs. The Secretary's regulations for
approval must include (1) standards that require that, in any 1
year, the operational cost of an EBT system does not exceed
costs of prior issuance systems and (2) system security
standards. [Sec. 7(i)]
Regulation E. The Federal Reserve Board has ruled that,
as of March 1997 (and with some minor modifications), its
``Regulation E'' will apply to EBT systems. Regulation E
provides certain protections for consumers using cards to
access their accounts. It limits the liability of cardholders
for unauthorized withdrawals (to $50 if timely notification is
made) and requires periodic account statements and certain
error resolution procedures. [Federal Register of March 7,
1994]
Anti-tying Restrictions. No provision.
House bill
Rules for EBT Systems. Provides that States must
implement EBT systems (on-line or off-line) before October 1,
2002, unless the Secretary waives the requirement because a
State agency faces unusual barriers to implementation. States
are encouraged to implement an EBT system as soon as
practicable. [Sec. 1034]
Subject to Federal standards, permits State agencies to
procure and implement an EBT system under the terms,
conditions, and design the agency considers appropriate. Adds a
new requirement for Federal procurement standards and deletes
the requirement for the Secretary's prior approval. [Sec. 1034]
Adds a requirement for EBT standards following generally
accepted operating rules based on commercial technology, the
need to permit interstate operation and law enforcement, and
the need to permit monitoring and investigations by law
enforcement officials. [Sec. 1034]
Adds requirements that the Secretary's standards include
(1) measures to maximize security and (2) effective not later
than 2 years after enactment, measures to permit EBT systems to
differentiate among food items. [Sec. 1034]
Deletes the requirement that EBT systems be cost neutral
in any one year. [Sec. 1034]
Adds a requirement that regulations regarding the
replacement of benefits and liability for replacement under an
EBT system be similar to those in effect for a paper food stamp
issuance system. [Sec. 1034]
Permits State agencies to collect a charge for replacing
EBT cards by reducing allotments. [Sec. 1034]
Permits State agencies to require that EBT cards contain
a photograph of one or more household members and requires
that, if a State requires a photograph, it must establish
procedures to ensure that other appropriate members of the
household and authorized representatives may use the card.
[Sec. 1034]
Declares it the sense of Congress that States operate EBT
systems that are compatible with other States' systems. [Sec.
1034]
Regulation E. Provides that Regulation E will not apply
to any EBT system, established under, or administered by, State
or local governments, distributing needs-tested benefits. [Sec.
1091]
Anti-tying Restrictions. Provides that a company may not
sell or provide EBT services, or fix or vary the consideration
for such services, on the condition or requirement that the
customer obtain, or not obtain, some additional point-of-sale
service from the company or any affiliate. Requires the
Secretary to consult with the Governors of the Federal Reserve
before issuing regulations to carry out this provision. [Sec.
1034]
Senate amendment
Rules for EBT Systems. Same provisions. [Sec. 1134]
Regulation E. Same provision. [Sec. 2809]
Also provides that Regulation E will not apply to food
stamp benefits delivered through an EBT system. [Sec. 1134]
Anti-tying Restrictions. No provision.
Conference agreement
The conference agreement adopts the provisions that are
common to both bills, with a technical amendment, and adopts
the Senate provision providing that Regulation E will not apply
to food stamp benefits. The conferees intend that regulations
issued by the Secretary regarding the replacement of benefits
and liability for replacement of benefits under an EBT system
will not require greater replacement of benefits or impose
greater liability than those regulations in effect for a paper-
based food stamp issuance system. [Sec. 825 and sec. 891]
The conference agreement also adopts the House provision
applying anti-tying restrictions of the Bank Holding Company
Act Amendments of 1970 to EBT services offered by nonbanks. The
conferees intend that, in applying the anti-tying restrictions
to nonbanks, the Secretary implement the anti-tying provision
consistent with the anti-tying restrictions that apply to
banks. [Sec. 825]
27. VALUE OF MINIMUM ALLOTMENT
Present law
The minimum monthly allotment for 1- and 2-person
households is set at $10. It is indexed for inflation and
rounded to the nearest $5. [Sec. 8(a)]
House bill
Deletes the requirement for inflation indexing of the
minimum allotment. [Sec. 1035]
Senate amendment
Same provision. [Sec. 1135]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 826]
28. BENEFITS ON RECERTIFICATION
Present law
Recipient households not fulfilling eligibility
recertification requirements in the last month of their
certification period are allowed a 1-month ``grace period'' in
which to fulfill the requirements before their benefits are
pro-rated (reduced) to reflect the delay. [Sec. 8(c)]
House bill
For those who do not complete all eligibility
recertification requirements in the last month of their
certification period, but are then determined to be eligible
after their certification period has expired, requires that
they receive reduced benefits in the first month of their new
certification period (i.e., their benefits would be pro-rated
to the date they met the requirements and were judged
eligible). [Sec. 1036]
Senate amendment
Same provision. [Sec. 1136]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 827]
29. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS
Present law
For households applying after the 15th of the month,
States may provide an allotment that is the aggregate of the
initial (pro-rated) allotment and the first regular allotment.
However, combined allotments must be provided to households
applying after the 15th who are entitled to expedited service.
[Sec. 8(c)]
House bill
Makes provision of combined allotments a State option
both for regular and expedited service applicants. [Sec. 1037]
Senate amendment
Same provision. [Sec. 1137]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 828]
30. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC ASSISTANCE
PROGRAMS
Present law
Households penalized for intentional failure to comply
with a Federal, State, or local welfare program may not, for
the duration of the penalty, receive an increased food stamp
allotment because their welfare income has been reduced. [Sec.
8(d)]
House bill
Bars increased food stamp allotments when the benefits of
a household are reduced under a Federal, State, or local means-
tested public assistance program for failure to perform a
required action. Permits States also to reduce a household's
food stamp allotment by up to 25 percent. If the allotment is
reduced for failure to perform an action under a family
assistance block grant (TANF) program, the State may use the
rules and procedures of that program to reduce the food stamp
allotment. [Sec. 1038]
Senate amendment
Same provision. [Sec. 1138]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 829]
31. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS
Present law
Residential substance abuse centers may be designated as
recipients' authorized representatives, and benefits generally
are provided to the center.
House bill
Permits State agencies to divide a month's food stamp
benefits between the center and an individual who leaves the
center and permits States to require center residents to
designate centers as authorized representatives. [Sec. 1039]
Senate amendment
Same provisions. [Sec. 1139]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 830]
32. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD STORES AND
WHOLESALE FOOD CONCERNS
Present law
No provisions.
House bill
Provides that no food concerns (of a type determined by
the Secretary based on factors including size, location, and
types of items sold) be approved for participation unless
visited by an Agriculture Department employee (or, whenever
possible, a State or local government official designated by
the Secretary). [Sec. 1040]
Senate amendment
Same provision. [Sec. 1140]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 831]
33. authority to establish authorization periods
Present law
No provisions.
House bill
Requires the Secretary to establish specific time periods
during which retail food stores' and wholesale food concerns'
authorization to accept and redeem food stamp benefits will be
valid. [Sec. 1041]
Senate amendment
Same provision. [Sec. 1141]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 832]
34. information for verifying eligibility for authorization
Present law
No provisions.
House bill
Permits the Secretary to require that retailers and
wholesalers seeking approval to accept and redeem food stamp
benefits submit relevant income and sales tax filing documents.
Permits regulations requiring retailers and wholesalers to
provide written authorization for the Secretary to verify all
relevant tax filings and to obtain corroborating documentation
from other sources in order to verify the accuracy of
information provided by the retailer/wholesaler. [Sec. 1042]
Senate amendment
Same provision. [Sec. 1142]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 833]
35. waiting period for stores that fail to meet authorization criteria
Present law
No provisions.
House bill
Provides that retailers and wholesalers that have failed
to be approved for participation may not submit a new
application to participate for at least 6 months. The Secretary
may establish a longer period (including permanent
disqualification) that reflects the severity of the basis of
the denial. [Sec. 1043]
Senate amendment
Same provision. [Sec. 1143]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 834]
36. operation of food stamp offices
Present law
State Plans. States must:
allow households contacting a food stamp office in
person during office hours to make an oral/written
request for aid and receive and file an application on
the same day;
use a simplified, uniform, federally designed
application, unless a waiver is approved;
include certain, specific information in
applications;
waive in-person interviews under certain
circumstances and use telephone interviews or home
visits instead;
provide for telephone contact and mail application
by households with transportation or similar
difficulties;
require an adult representative of the household to
certify as to household members' citizenship/alien
status;
assist households in obtaining verification and
completing applications;
not require additional verification of currently
verified information (unless there is reason to believe
that the information is inaccurate, incomplete, or
inconsistent);
not deny an application solely because a
nonhousehold member fails to cooperate;
process applications if the household meets
cooperation requirements;
provide households with a statement of reporting
responsibilities at certification and recertification;
provide a toll-free or local telephone number at
which households can reach State agency personnel;
display and make available nutrition information;
and
use mail issuance in rural areas where low-income
households face substantial difficulties in obtaining
transportation. [Sec. 11(e) (2), (14), & (25)]
Application and Denial Procedures. A single interview for
determining AFDC and food stamp benefits is required. Food
stamp applications generally are required to be contained in
public assistance applications, and applications and
information about how to apply for food stamps must be provided
local assistance applicants. Applicants (including those who
have recently lost or been denied public assistance) must be
certified eligible for food stamps based on their public
assistance casefile (to the extent it is reasonably verified).
No household may be terminated from or denied food stamps
solely on the basis of termination/denial of other public
assistance without a separate food stamp determination. [Sec.
11(i)]
House bill
State Plans. Replaces noted existing State plan
requirements with requirements that the State:
establish procedures governing the operation of
food stamp offices that it determines best serve
households in the State, including those with special
needs (such as households with elderly or disabled
members, those in rural areas, the homeless, households
residing on reservations, and households speaking a
language other than English);
provide timely, accurate, and fair service to
applicants and participants;
permit applicants to apply and participate on the
same day they first contact a food stamp office during
office hours;
consider an application filed on the date the
applicant submits an application with the applicant's
name, address, and signature;
require that an adult representative certify as to
the truth of the information on the application and
citizenship/alien status; and
have a method for certifying homeless households.
[Sec. 1044]
Permits States to establish operating procedures that
vary for local food stamp offices. [Sec. 1044]
Stipulates that the signature of a single adult will be
sufficient to comply with any provision of Federal law
requiring applicant signatures. [Sec. 1044]
Makes clear that nothing in the Food Stamp Act prohibits
electronic storage of application and other information. [Sec.
1044]
Application and Denial Procedures. Deletes noted existing
requirements for single interviews, applications, and food
stamp determinations based on public assistance information.
Permits disqualification for food stamps based on another
public assistance program's disqualification for failure to
comply with its rules or regulations. [Sec. 1044]
Senate amendment
State Plans. Same provisions. [Sec. 1144]
Application and Denial Procedures. Same provisions. [Sec.
1144]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 835]
37. STATE EMPLOYEE AND TRAINING STANDARDS
Present law
States must employ agency personnel responsible for food
stamp certifications in accordance with current Federal ``merit
system'' standards. States must provide continuing,
comprehensive training for all certification personnel. States
may undertake intensive training of personnel to ensure they
are qualified for certifying farm households. States may
provide or contract for the provision of training and
assistance to persons working with volunteer or nonprofit
organizations that provide outreach and eligibility screening.
[Sec. 11(e)(6)]
House bill
Deletes training provisions. [Sec. 1045]
Senate amendment
Same provision. [Sec. 1145]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 836]
38. EXCHANGE OF LAW ENFORCEMENT INFORMATION
Present law
No provisions.
House bill
Requires State food stamp agencies to make available to
law enforcement officers the address, social security number,
and a photograph (when available) of a food stamp recipient if
the officer furnishes the recipient's name and notifies the
agency that the individual is fleeing to avoid prosecution,
custody, or confinement for a felony, is violating a condition
of parole or probation, or has information necessary for the
officer to conduct an official duty related to a felony/parole
violation. [Sec. 1046]
Senate amendment
Same provision. [Sec. 1146]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 837]
39. EXPEDITED COUPON SERVICE
Present law
States must provide expedited benefits to applicant
households that (1) have gross income under $150 a month (or
are ``destitute'' migrant or seasonal farmworker households)
and have liquid resources of no more than $100, (2) are
homeless, or (3) have combined gross income and liquid
resources less than the household's monthly shelter expenses.
Expedited service means providing an allotment no later than 5
days after application. [Sec. 11(e)(9)]
House bill
Deletes noted requirements to provide expedited service
to the homeless and those with shelter expenses in excess of
their income/resources. Lengthens the period in which expedited
benefits must be provided to 7 days. [Sec. 1047]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the House provisions with
an amendment to retain the requirement for expedited service to
those with income and liquid resources less than their monthly
shelter expenses. [Sec. 838]
40. WITHDRAWING FAIR HEARING REQUESTS
Present law
No provisions.
House bill
At State option, permits households to withdraw fair
hearing requests orally or in writing. If it is an oral
request, the State must provide written notice confirming the
request and providing the household with another chance to
request a fair hearing. [Sec. 1048]
Senate amendment
Same provision. [Sec. 1147]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 839]
41. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICATION SYSTEMS
Present law
States must use the ``income and eligibility verification
systems'' established under section 1137 of the Social Security
Act to assist in verifying household circumstances; this
includes a system for verifying financial circumstances (IEVS)
and a system for verifying alien status (SAVE). [Sec.
11(e)(19)]
House bill
Makes use of IEVS and SAVE optional with the States.
[Sec. 1049]
Senate amendment
Same provision. [Sec. 1148]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 840]
42. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY SUBMIT FALSIFIED
APPLICATIONS
Present law
No provisions.
House bill
Retailers/wholesalers who knowingly submit an application
to accept and redeem food stamp benefits that contains false
information about a substantive matter must be disqualified for
a reasonable period of time to be determined by the Secretary
(including permanent disqualification). [Sec. 1050]
Senate amendment
Same provision. [Sec. 1149]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 842]
43. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE WIC
PROGRAM
Present law
No provisions.
House bill
Requires the Secretary to issue regulations providing
criteria for disqualifying from food stamp program
participation retailers/wholesalers disqualified from the WIC
program. Disqualification must be for the same length of time,
may begin at a later date, and is not subject to separate food
stamp administrative/judicial review provisions. [Sec. 1051]
Senate amendment
Same provisions. [Sec. 1150]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 843]
44. COLLECTION OF OVERISSUANCES
Present law
In the case of overissuances due to an intentional
program violation, households must agree to repayment by either
a reduction in future benefits or cash repayment; States also
are required to collect overissuances to these households
through other means such as tax refund or unemployment
compensation collections if other repayment is not forthcoming
(unless they demonstrate that the other means are not cost
effective). In cases of overissuance because of inadvertent
household error, States must collect the overissuance through a
reduction in future benefits, except that households must be
given 10 days notice to elect another means and collections are
limited to 10 percent of the monthly allotment or $10 a month
(whichever would result in faster collection). Otherwise
uncollected overissued benefits, except those arising from
State agency error, may be recovered from Federal pay or
pensions. [Sec. 13 (b) & (d) and sec. 11(e)(8)]
States may retain 25 percent of ``nonfraud'' collections
not arising from State agency error and 50 percent of ``fraud''
collections (increased from 10 percent and 25 percent on
October 1, 1995). [Sec. 16(a)]
House bill
Replaces existing overissuance collection rules with
provisions requiring States to collect any overissuance by
reducing future benefits, withholding unemployment
compensation, recovering from Federal pay or income tax
refunds, or any other means--unless the State demonstrates that
all of the means are not cost effective. Limits benefit
reductions (absent intentional program violation) to the
greater of 10 percent of the monthly allotment or $10 a month.
Provides that States must collect overissued benefits in
accordance with State-established requirements for notice,
electing a means of payment, and setting a schedule for
payment. [Sec. 1052]
Permits States to retain 25 percent of all collections
other than those arising from State agency error. [Sec. 1052]
Senate amendment
Same provision, except permits States to retain 20
percent of nonfraud collections other than those arising from
State agency error and 35 percent of fraud collections. [Sec.
1151]
Conference agreement
The conference agreement adopts the Senate provisions.
[Sec. 844]
45. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM REQUIREMENTS PENDING
ADMINISTRATIVE AND JUDICIAL REVIEW
Present law
No provisions.
House bill
Requires that any permanent disqualification of a
retailer/wholesaler be effective from the date of receipt of
the notice of disqualification. If the disqualification is
reversed through administrative or judicial review, the
Secretary is not liable for lost sales. [Sec. 1053]
Senate amendment
Same provision. [Sec. 1152]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 845]
46. EXPANDED CRIMINAL FORFEITURE FOR CRIMINAL VIOLATIONS
Present law
``Administrative forfeiture'' rules allow the Secretary
to subject property involved in a program violation to
forfeiture to the United States. [Sec. 15(g)]
House bill
Establishes ``criminal forfeiture'' rules. Requires
courts, in imposing sentence on those convicted of trafficking
in food stamps, to order that the person forfeit property to
the United States. Property subject to forfeiture would include
all property (real and personal) used in a transaction (or
attempted transaction) to commit (or facilitate the commission
of) a trafficking violation (other than a misdemeanor);
proceeds traceable to the violation also would be subject to
forfeiture. An owner's property interest would not be subject
to forfeiture if the owner establishes that the violation was
committed without the owner's knowledge or consent.
Requires that the proceeds from any sale of forfeited
property, and any money forfeited, be used to reimburse Federal
and State agencies for costs and, by the Secretary, to carry
out store monitoring activities. [Sec. 1054]
Senate amendment
Same provisions. [Sec. 1153]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 846]
47. LIMITATION OF FEDERAL MATCH
Present law
If a State opts to conduct informational (``outreach'')
activities for the food stamp program, the Federal Government
shares half the cost. [Sec. 11(e)(1) and sec. 16(a)]
House bill
Terminates the Federal share for any ``recruitment
activities.'' [Sec. 1055]
Senate amendment
Same provision. [Sec. 1154]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 847]
48. STANDARDS FOR ADMINISTRATION
Present law
The Secretary is required to (1) establish standards for
efficient and effective administration of the program,
including standards for review of food stamp office hours to
ensure that employed individuals are adequately served and (2)
instruct States to submit reports on administrative actions
taken to meet the standards. [Sec. 16(b)]
House bill
Deletes the noted requirements relating to Federal
standards for efficient and effective administration. [Sec.
1056]
Senate amendment
Same provision. [Sec. 1155]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 848]
49. WORK SUPPLEMENTATION OR SUPPORT PROGRAM
Present law
No provisions.
House bill
Establishes a new option for States to operate work
supplementation or support programs under which the value of
public assistance benefits are provided to employers who hire
recipients and, in turn, use the benefits to supplement the
wages paid the recipient. Work supplementation/support programs
would have to adhere to standards set by the Secretary, be
available for new employees only, and not displace employment
of those who are not supplemented/supported. The food stamp
benefit value of the supplement could not be considered income
for other purposes. Opting States would be required to provide
a description of how recipients in their program will, within a
specific period of time, be moved to unsubsidized employment.
[Sec. 1057]
Senate amendment
Same provision. [Sec. 1156]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 849]
50. WAIVER AUTHORITY
Present law
The Secretary may waive Food Stamp Act requirements to
the degree necessary to conduct pilot/demonstration projects,
but, in general, no project may be implemented that would lower
or further restrict food stamp income/resource eligibility
standards or benefit levels. [Sec. 17(b)(1)]
House bill
Permits the Secretary to conduct pilot and demonstration
projects and waive Food Stamp Act requirements as long as the
project is consistent with the food stamp program goal of
providing food to increase the level of nutrition among low-
income individuals. The Secretary is permitted to conduct
projects that will improve the administration of the program,
increase self-sufficiency of food stamp participants, test
innovative welfare reform strategies, or allow greater
conformity among public assistance programs than is otherwise
allowed under the Food Stamp Act. The Secretary is not
permitted to conduct projects that involve issuing benefits in
cash (beyond those approved at enactment), substantially
transfer program benefits to other public assistance programs,
or are not limited to specific time periods. [Sec. 1058]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the House provision with
an amendment. The Secretary is permitted to conduct pilot and
demonstration projects and waive Food Stamp Act requirements to
the extent necessary, with certain limitations and conditions.
Projects must be consistent with the food stamp program goal of
providing food assistance to raise levels of nutrition among
low-income individuals and must include an evaluation.
Permissible projects are those that will improve the
administration of the program, increase self-sufficiency of
food stamp participants, test innovative welfare reform
strategies, or allow greater conformity with the rules of other
programs than is otherwise allowed under the Food Stamp Act.
However, if the Secretary finds that a project would require
the reduction of benefits by more than 20 percent, for more
than 5 percent of households subject to the project (not
including those whose benefits are reduced because of a failure
to comply with work or other conduct requirements), the project
(1) cannot include more than 15 percent of the State's food
stamp population and (2) is limited to 5 years (unless an
extension is approved).
The Secretary may not conduct a project that (1) involves
the payment of food stamp allotments in cash (unless the
project was approved prior to enactment), (2) has the effect of
substantially transferring food stamp funds to services or
benefits provided through another public assistance program,
(3) has the effect of using food stamp funds for any purpose
other than the purchase of food, program administration, or an
employment or training program, (4) has the effect of granting
or increasing shelter expense deductions to households with
either no out-of-pocket shelter expenses or shelter expenses
that represent a low percentage of their income, (5) has the
effect of absolving the State from acting with reasonable
promptness on substantial reported changes in income or
household size (other than those related to deductions), (6) is
not limited to a specific time period, or (7) waives a
simplified food stamp program provision in carrying out a
simplified program.
The Secretary also may not conduct a project that is
inconsistent with certain Food Stamp Act requirements: (1) the
bar against providing benefits to those in institutions (with
certain exceptions), (2) the requirement to provide assistance
to all those eligible, so long as they have not failed to
comply with any food stamp or other program's work, behavioral,
or other conduct requirements, (3) the gross income eligibility
limit (130 percent of the Federal poverty guidelines) for
households without elderly or disabled members, (4) the rule
that no parent or caretaker of a dependent child under age 6
will be subject to work/training requirements [see item 17],
(5) the rule that total hours of work required in an
employment/training or workfare program be limited to the
household's allotment divided by the minimum wage, (6) the
limit on the amount of employment and training funding under
the Food Stamp Act that can be used for TANF recipients, (7)
the requirement that the value of food stamp benefits not be
considered income or resources for any other purpose, (8)
application and application processing requirements (including
the rule that benefits must be provided within 30 days, but not
including expedited service requirements), (9) Federal-State
cost-sharing rules (including those for computerization,
employment and training programs, and workfare), (10) ``quality
control'' requirements, and (11) the waiver limits set in law.
[Sec. 850]
51. RESPONSE TO WAIVERS
Present law
No provisions.
House bill
Requires that, not later than 60 days after receiving a
demonstration project waiver request, the Secretary must (1)
approve the request, (2) deny it and explain any modifications
needed for approval, (3) deny it and explain the grounds for
denial, or (4) ask for clarification of the request. If a
response is not forthcoming in 60 days, the waiver is
considered approved. If a waiver is denied, the Secretary must
provide a copy of the request and the grounds for denial to
Congress. [Sec. 1059]
Senate amendment
Same provision. [Sec. 1157]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 851]
52. employment initiatives program
Present law
No provisions.
House bill
Provides a new option for a limited number of States
(those with not less than half of their food stamp households
receiving AFDC benefits in 1993) to issue food stamps in cash
to households participating in both the State's family
assistance block grant (TANF) program and food stamps, if a
member of the household has been working for at least 3 months
and earns at least $350 a month in unsubsidized employment.
Households receiving cash payments may continue to receive them
after leaving a TANF program because of increased earnings, and
a household eligible to receive its allotment in cash may opt
for food stamps instead. States opting for these cash payments
must increase food stamp benefits (and pay for the increase) to
compensate for State/local sales taxes on food purchases and
must provide a written evaluation. [Sec. 1060]
Senate amendment
Same provisions. [Sec. 1158]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 852]
53. reauthorization
Present law
Food Stamp Act appropriations are authorized through
fiscal year 1997. [Sec. 18(a)]
House bill
Extends the Food Stamp Act authorization of
appropriations through fiscal year 2002. [Sec. 1061]
Senate amendment
Same provision. [Sec. 1159]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 853]
54. simplified food stamp program
Present law
No provision.
House bill
Permits States to determine food stamp benefits for
households receiving family assistance block grant (TANF) aid
using TANF rules and procedures, food stamp rules/procedures,
or a combination of both. States may operate a simplified
program statewide or in regions of the State and may
standardize deductions. However, States must comply with the
following food stamp rules:
requirements governing issuance procedures;
the requirement that benefits be calculated by
subtracting 30 percent of household income (as
determined by State-established, not Federal, rules
under the simplified program option) from the maximum
food stamp benefit;
the bar against counting food stamp benefits as
income or resources in other programs;
requirements that State agencies assume
responsibility for eligibility certification and
issuance of benefits and keep records for inspection
and audit;
the bar against discrimination by reason of race,
sex, religious creed, national origin, or politics;
requirements related to submission and approval of
plans of operation and administration of the food stamp
program on Indian reservations;
limits on the use and disclosure of information
about food stamp households;
requirements for notice to and fair hearings for
aggrieved households (or comparable requirements
established by the State);
requirements for submission of reports and other
information required by the Secretary;
the requirement to report illegal aliens to the
INS;
provisions for the use of certain Federal and State
data sources in verifying eligibility;
requirements to ensure that households are not
receiving duplicate benefits; and
requirements for the provision of social security
numbers as a condition of eligibility and for their use
by State agencies.
Households may not receive benefits under a simplified
program unless the Secretary determines that any household with
income above 130 percent of the Federal poverty guidelines is
ineligible for the program.
The Secretary must determine whether a simplified program
is increasing Federal costs above costs incurred in operations
for the fiscal year prior to implementation, adjusted for
changes in participation, the income of participants not
attributable to public assistance, and the cost of the thrifty
food plan. The determination is made for each fiscal year, not
later than 90 days after the end of the year.
If the Secretary determines that there has been a cost
increase, the State must be notified within 30 days. If a State
does not then submit or carry out a ``corrective action'' plan
approved by the Secretary to prevent increased Federal costs,
approval of the State's simplified program is terminated, and
the State is ineligible for further operation of a simplified
program.
States opting for a simplified program must include in
their State plans the rules and procedures to be followed, how
they will address the needs of households with high shelter
costs, and a description of the method by which they will carry
out their quality control obligations. [Sec. 1062]
Senate amendment
Same provisions, except that the Senate amendment (1)
stipulates that only households in which ``all members''
receive TANF benefits may receive benefits under a simplified
program and (2) requires that States opting for a simplified
program follow food stamp rules regarding providing benefits
within 30 days of application. Also provides that (1) the
Secretary will determine whether a simplified program is
increasing Federal costs, (2) States will not be required to
collect information on households not in the simplified program
in cost increase determinations, and (3) the Secretary may
approve ``alternative accounting periods'' in making cost
determinations. [Sec. 1160]
Conference agreement
The conference agreement adopts the House provision with
an amendment providing that: (1) only households in which all
members receive TANF benefits may receive benefits under a
simplified program, (2) the Secretary will determine whether a
simplified program is increasing Federal costs, (3) States will
not be required to collect information on households not in the
simplified program in cost increase determinations, and (4) the
Secretary may approve alternative accounting periods in making
cost determinations. In addition, the conference agreement
adopts an amendment that provides that a simplified program may
include households in which 1 or more members are not TANF
recipients, if approved by the Secretary. The conferees
encourage the Secretary to work with States to test methods for
applying a single set of rules and procedures to households in
which some, but not all, members receive cash welfare benefits
under State rules. [Sec. 854]
55. state food assistance block grant
Present law
No provision.
House bill
Establishes an optional food assistance block grant.
States that meet one of three conditions may elect to receive
the block grant in lieu of participating in the regular food
stamp program. The conditions are: (1) a statewide EBT system,
(2) a payment error rate of 6 percent or less, or (3) if there
is a payment error rate of higher than 6 percent, payment to
the Federal government of the benefit cost of the difference.
States electing a block grant would receive the greater of: (1)
the amount received for benefits in fiscal year 1994 (or the
1992-1994 average) plus (2) the amount received for
administration in fiscal year 1994 (or the 1992-1994 average).
States electing a block grant and then terminating their option
may not again elect a block grant.
Block grant funding may only be used for food assistance
to needy persons and administrative costs for providing the
assistance--so long as not more than 6 percent of total funds
expended (other than State funds not otherwise required to be
spent) are used for administrative costs and limits on
carryover funds are followed. While States have control over
most features of their block grant program, certain rules
specified in law must be followed: provisions for notice and
hearing for those aggrieved; bars against receipt of benefits
in more than 1 jurisdiction, benefits for fleeing felons, and
benefit for aliens otherwise barred under Federal law; privacy
and nondiscrimination safeguards; and quality control
requirements of the Food Stamp Act. In addition, States opting
for a block grant would continue to be covered under the Food
Stamp Act's employment and training program provisions (and
receive separate funding for this) and would be required to bar
benefits to those not meeting food stamp work requirements
(including the new requirement). [Sec. 1063]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the Senate provision.
56. a study of the use of food stamps to purchase vitamins and minerals
Present law
No provision.
House bill
Requires the Secretary, in consultation with the National
Academy of Sciences and the Centers for Disease Control and
Prevention, to conduct a study of the use of food stamps to
purchase vitamins and minerals and report to the House
Committee on Agriculture not later than December 15, 1996.
[Sec. 1064]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the House provision with
an amendment requiring a report to both the Senate Committee on
Agriculture, Nutrition, and Forestry and the House Committee on
Agriculture not later than December 15, 1998. [Sec. 855]
57. investigations
Present law
No provision.
House bill
Requires that regulations provide criteria for the
finding of violations (and suspension/disqualification) of
retailers and wholesalers on the basis of evidence which may
include facts established through on-site investigations,
inconsistent redemption data, or evidence obtained through EBT
transaction reports. [Sec. 1065]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the House provision.
[Sec. 841]
58. REPORT BY THE SECRETARY
Present law
No provision.
House bill
Permits the Secretary to report to the House Committee on
Agriculture (not later than January 1, 2000) on the effect of
the food stamp reforms in this act and the ability of State and
local governments to deal with people in poverty. [Sec. 1067]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the Senate provision.
59. DEFICIT REDUCTION
Present law
No provision.
House bill
Declares it the sense of the House Committee on
Agriculture that outlay reductions resulting from the food
stamp title not be taken into account under section 552 of the
Balanced Budget and Emergency Deficit Control Act. [Sec. 1068]
Senate amendment
No provision.
Conference agreement
The conference agreement adopts the House provision with
a technical amendment. [Sec. 856]
Subtitle B--Commodity Distribution Programs
1. SHORT TITLE
Present law
The Emergency Food Assistance Act (EFAA), The Hunger
Prevention Act of 1988, The Charitable Assistance and Food Bank
Act of 1987, the Food, Agriculture, Conservation, and Trade
(FACT) Act of 1990.
House bill
Amends the EFAA and Section 110 of the Hunger Prevention
Act of 1988 to combine the Emergency Food Assistance Program
(TEFAP) and the soup kitchen/food bank program and create a new
TEFAP; repeals the expired food bank demonstration project
under the Charitable Assistance and Food Bank Act of 1987; and
repeals a requirement for a previously completed report on
entitlement commodity processing under the FACT Act of 1990.
[Sec. 1071, 1072, 1073, & 1074]
Senate amendment
Same provisions. [Sec. 1171, 1172, 1173, & 1174]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 871-874]
2. ELIGIBLE RECIPIENT AGENCIES
Present law
Defines ``eligible recipient agencies'' and ``emergency
feeding organizations''. [Sec. 201A]
Defines ``Additional commodities'', ``average monthly
number of unemployed persons'', ``poverty line'', ``Total value
of additional commodities'', Value of additional commodities.''
[Sec. 214 of EFAA]
House bill
Incorporates into one section current law and regulatory
definitions of terms used in TEFAP and section 110 of the
Hunger Prevention Act. Definitions include ``eligible recipient
agencies'', as well as ``emergency feeding organization,''
``additional commodities'', ``average monthly number of
unemployed persons'', ``food bank'', ``food pantry'', ``poverty
line'', ``soup kitchen'', ``total value of additional
commodities'', and ``value of additional commodities allocated
to each State.'' [Sec. 1071]
Senate amendment
Same provisions. [Sec. 1171]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 871]
3. AVAILABILITY OF CCC COMMODITIES
Present law
Outlines conditions under which the Secretary is to
donate CCC commodities or other agricultural commodities, the
varieties of commodities to be made available; requires semi-
annual report on types of commodities made available; prohibits
declines in dairy product donations, and requires that
emergency feeding organizations have the same access to excess
CCC commodities as other domestic food programs.
House bill
Maintains current law provisions. [Sec. 1071]
Senate Amendment
Same provisions. [Sec. 1171]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 871]
4. AVAILABILITY OF CCC FLOUR, CORNMEAL, AND CHEESE
Present law
Provides for additional distribution in FY1988 of flour,
cheese, and cornmeal when excess amounts are available from CCC
holdings.
House bill
Strikes obsolete provision and moves definitions to a new
section of the Act (see item 2 above). Replaces Sec. 202A with
new provisions governing State plans (See item 5 below). [Sec.
1071]
Senate amendment
Same provisions. [Sec. 1171]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 871]
5. STATE PLAN
Present law
Requires Secretary to expedite distribution of
commodities to agencies designated by the Governor, or directly
distribute commodities to eligible recipient agencies engaged
in national commodity processing; allows States to give
priority for donations to existing food bank networks serving
low-income households. Requires States to expeditiously
distribute commodities to eligible recipient agencies, and to
encourage distribution to rural areas. Also requires Secretary
to distribute commodities only to agencies that serve needy
persons and set their own need criteria, with the approval of
the Secretary. [Sec. 203B (a) and (c) of EFAA]
House bill
Requires States seeking commodities under the new EFA
program to submit a plan of operation and administration every
4 years for approval by the Secretary and allows amendment of
the plan at any time.
Requires that at a minimum the State receiving
commodities include in its plan: designation of responsible
State agency; plan of operation and administration to
expeditiously distribute commodities; standards of eligibility
for recipient agencies; individual and household eligibility
standards that require that they be needy and residing in the
geographic area served by the recipient agency. [Sec. 1071]
Senate amendment
Same provisions. [Sec. 1171]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 871]
6. ADVISORY BOARD
Present law
No provision.
House bill
Requires Secretary to encourage States to establish
advisory boards consisting of representatives of all interested
entities, public and private, in the distribution of
commodities. [Sec. 1071]
Senate amendment
Same provision. [Sec. 1171]
Conference agreement
The conference agreement adopts the provision that is
common to both bills. [Sec. 871]
7. Authorization of Appropriations For Administrative Funds
Present law
Authorizes $50 million annually for fiscal year 1991-2002
for Secretary to make available to States for State and local
costs associated with the distribution of commodities. Requires
that funds be distributed on an advance basis in the same
proportion as commodities are distributed. Allows for
reallocation of unused funds among other States. Specifically
allows States to use funds to help with distribution of
commodities provided to soup kitchens and food banks under
section 110 of the Hunger Prevention Act.
House bill
Revises language regarding availability of funds to
States for State and local costs to require that such funds be
used ``to pay for the direct and indirect administrative costs
of the State related to processing, transporting, and
distributing [commodities] to eligible recipient agencies.''
Drops separate reference to soup kitchen and food banks because
this program is incorporated into the new TEFAP. [Sec. 1071]
Senate amendment
Same provisions. [Sec. 1171]
Conference agreement
The conference agreement adopts the provisions that are
common to both bills. [Sec. 871 ]
8. REQUIRED PURCHASES OF COMMODITIES
Present law
Authorizes $175 million for fiscal year 1991, $190
million for FY 1992, and $200 million for each of fiscal years
1993 through 2002 for the Secretary to purchase, process and
distribute additional commodities to the extent that
appropriations are provided. Establishes a formula for
distribution of commodities to States whereby 60 percent of
commodities are allocated based on a State's share of persons
in households with incomes below the poverty level and 40
percent upon a State's share of unemployed persons, and defines
related terms.
House bill
Strikes provisions authorizing funds for commodity
purchases. Instead, amends the Food Stamp Act to add a new
section 28 requiring the Secretary to spend $300 million
annually for each of fiscal years 1997 through 2002 from funds
appropriated under the Food Stamp Act to buy commodities for
the new TEFAP; requires the Secretary to take into account
agricultural market conditions, and State, agency, and
recipient preferences when buying commodities with these funds.
Specifies that these commodities be distributed under the
current-law allocation formula. [Sec. 1071]
Senate amendment
Similar to House bill, except that $100 million is
required to be used from food stamp funds annually to buy
commodities for the new TEFAP. [Sec. ]
Conference agreement
The conference agreement adopts the Senate provision with
a technical amendment. [Sec. 871]
Subtitle C--Electronic Benefit Transfer System
See Item 26 of Subtitle A--Food Stamp Program for a
description of the conference agreement on this subtitle.
Title IX: Miscellaneous
1. Appropriation by State Legislatures
Present law
According to the National Conference of State
Legislatures, there are six States in which under court rulings
of interpretations of State constitutions, certain Federal
funds are controlled by the Executive branch rather than the
State legislature. (An example would be action on funds when
the legislature is out of session.) These States are Arizona,
Colorado, Connecticut, Delaware, New Mexico, and Oklahoma.
House bill
The proposal stipulates that funds from certain Federal
block grants to the States are to be expended in accordance
with the laws and procedures applicable to the expenditure of
the State's own resources (i.e., appropriated through the State
legislature in all States). This provision applies to the
following block grants: temporary assistance to needy families
block grant, the optional State food assistance block grant,
and the child care block grant. Thus, in the States in which
the Governor previously had exclusive control over Federal
block grant funds, the State legislatures now would share
control through the appropriations process. However, States
would continue to spend Federal funds in accord with Federal
law.
Senate amendment
Identical provision.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
2. Sanctioning for Testing Positive for Controlled Substances
Present law
Eligibility and benefit status for most Federal welfare
programs are not affected by a recipient's use of illegal
drugs.
House bill
States are not prohibited by the Federal Government from
testing welfare recipients for use of controlled substances nor
for sanctioning welfare recipients who test positive for the
use of controlled substances.
Senate amendment
Identical provision.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
3. Elimination of Housing Assistance with Respect to Fugitive Felons
and Probation and Parole Violators
Present law
No provision.
House bill
No provision.
Senate amendment
Ends eligibility for public housing and Section 8 housing
assistance of a person who is fleeing to avoid prosecution
after conviction for a crime, or attempt to commit a crime,
that is a felony where committed (or, in the case of New
Jersey, is a high misdemeanor), or who is violating a condition
of probation or parole. The amendment states that the person's
flight shall be cause for immediate termination of their
housing aid.
Requires specified public housing agencies to 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 SSI
recipient, if the officer furnishes the public housing agency
with the person's name and notifies the agency that the
recipient is a fugitive felon (or in the case of New Jersey a
person fleeing because of a high misdemeanor) or a probation or
parole violator or that the person has information that is
necessary for the officer to conduct his official duties, and
the location or apprehension of the recipient is within the
officer's official duties.
Conference agreement
The conference agreement follows the Senate amendment.
4. Sense of the Senate Regarding Enterprise Zones
Present law
No specific provision. However, as stated, the provisions
outlined in the Sense of the Senate language already can be
done under present law.
House bill
No provision.
Senate amendment
Outlines some findings related to urban centers and
empowerment zones and includes sense of the Senate language
that urges the 104th Congress to pass an enterprise zone bill
that provides Federal tax incentives to increase the formation
and expansion of small businesses and to promote commercial
revitalization; allows localities to request waivers to
accomplish the objectives of the enterprise zones; encourages
resident management of public housing and home ownership of
public housing; and authorizes pilot projects in designated
enterprise zones to expand the educational opportunities for
elementary and secondary school children.
Conference agreement
The conference agreement follows the House bill.
5. Sense of the Senate Regarding the Inability of the Non-Custodial
Parent to Pay Child Support
Present law
No provision.
House bill
No provision.
Senate amendment
It is the Sense of the Senate that States should pursue
child support payments under all circumstances even if the
noncustodial parent is unemployed or his or her whereabouts are
unknown; and that States are encouraged to pursue pilot
programs in which the parents of a minor non-custodial parent
who refuses or is unable to pay child support contribute to the
child support owed.
Conference agreement
The conference agreement follows the Senate amendment.
6. Establishing National Goals to Prevent Teenage Pregnancies
Present law
No provision.
House bill
No provision.
Senate amendment
Requires the Secretary to establish and implement by
January 1, 1997, a strategy to: (1) prevent a 2 percent
increase in out-of-wedlock teenage pregnancies, and (2) assure
that at least 25 percent of U.S. communities have teenage
pregnancy programs in place. HHS is required to report to
Congress by June 30, 1998, on progress made toward meeting
these 2 goals.
Conference agreement
The conference agreement generally follows the Senate
amendment, except a specified level of reduction is not
established.
7. Sense of the Senate Regarding Enforcement of Statutory Rape Laws
Present law
No provision.
House bill
No provision.
Senate amendment
Includes language that states that it is the sense of the
Senate that States and local jurisdictions should aggressively
enforce statutory rape laws.
Not later than January 1, 1997, the Attorney General
shall establish and implement a program that studies the
linkage between statutory rape and teenage pregnancy and
educates States and local criminal law enforcement officials on
the prevention and prosecution of statutory rape. The Attorney
General shall ensure the DOJ Violence Against Women initiative
addresses the issue of statutory rape.
Conference agreement
The conference agreement follows the Senate amendment.
8. Provisions to Encourage Electronic Benefit Transfer Systems
Present law
In 1978, Congress passed the Electronic Fund Transfer Act
to provide a basic framework establishing the rights,
liabilities, and responsibilities of participants in electronic
fund transfer systems and required the Federal Reserve Board to
develop implementing regulations, which generally are referred
to as Regulation E.
House bill
See food stamp title, which exempts from Regulation E any
food stamp electronic benefit transfers.
Senate amendment
Exempts from Regulation E requirements any electronic
benefit transfer program (distributing needs-tested benefits)
established under State or local law or administered by a State
or local government.
Conference agreement
The conference agreement follows the Senate amendment.
9. Reduction of Block Grants to States for Social Services; Use of
Vouchers
Present law
The Social Services Block Grant (Title XX) provides funds
to States in order to provide a wide variety of social
services, including child care, family planning, protective
services for children and adults, services for children and
adults on foster care, and employment services. States have
wide discretion over how they use Social Services Block Grant
funds. States set their own eligibility requirements and are
allowed to transfer up to 10 percent of their allotment to
certain Federal health block grants, and for low-income home
energy assistance (LIHEAP). Funding for the Social Services
Block Grant is capped at $2.8 billion a year. Funds are
allocated among States according to the State's share of its
total population. No State matching funds are required to
receive Social Services Block Grant money.
House bill
For fiscal years 1997 through 2002, the Social Services
Block Grant is reduced by 10 percent.
Senate amendment
For fiscal years 1997 through 2002, the Social Services
Block Grant is reduced by 20 percent.
Requires that States receiving Title XX funds to dedicate
1 percent to programs and services for minors to avoid out-of-
wedlock pregnancies.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment regarding the reduction in funding for the
Social Services block grant, with the modification that the
reduction is 15 percent. The conference agreement follows the
House bill so that there is no special dedication of funds for
programs and services for minors. The agreement specifically
states that Title XX funds may be used to provide assistance to
families who have lost assistance because of time limits on
benefits.
10. Earned Income Credit Provisions
A. Deny earned income credit to individuals not authorized to be
employed in the United States
[Note.--For additional discussion of this provision, refer
to Title IV: Restricting Welfare and Public Benefits for
Aliens, above.]
Present law
In general. Certain eligible low-income workers are
entitled to claim a refundable credit on their income tax
return. The amount of the credit an eligible individual may
claim depends upon whether the individual has one, more than
one, or no qualifying children and is determined by multiplying
the credit rate by the individual's 1 earned income up to
an earned income amount. The maximum amount of the credit is
the product of the credit rate and the earned income amount.
For individuals with earned income (or adjusted gross income
(AGI), if greater) in excess of the beginning of the phaseout
range, the maximum credit amount is reduced by the phaseout
rate multiplied by the amount of earned income (or AGI, if
greater) in excess of the beginning of the phaseout range. For
individuals with earned income (or AGI, if greater) in excess
of the end of the phaseout range, no credit is allowed.
---------------------------------------------------------------------------
\1\ In the case of a married individual who files a joint return
with his or her spouse, the income for purposes of these tests is the
combined income of the couple.
---------------------------------------------------------------------------
The parameters for the credit depend upon the number of
qualifying children the individual claims. For 1996, the
parameters are given in the following table:
------------------------------------------------------------------------
Two or One No
more qualifying qualifying
children child children
------------------------------------------------------------------------
Credit rate (percent)................ 40.00 34.00 7.65
Earned income amount................. $8,890 $6,330 $4,220
Maximum credit....................... $3,556 $2,152 $323
Phaseout begins...................... $11,610 $11,610 $5,280
Phaseout rate (percent).............. 21.06 15.98 7.65
Phaseout ends........................ $28,495 $25,078 $9,500
------------------------------------------------------------------------
For years after 1996, the credit rates and the phaseout
rates will be the same as in the preceding table. The earned
income amount and the beginning of the phaseout range are
indexed for inflation; because the end of the phaseout range
depends on those amounts as well as the phaseout rate and the
credit rate, the end of the phaseout range will also increase
if there is inflation.
In order to claim the credit, an individual must either
have a qualifying child or meet other requirements. A
qualifying child must meet a relationship test, an age test, an
identification test, and a residence test. In order to claim
the credit without a qualifying child, an individual must not
be a dependent and must be over age 24 and under age 65.
To satisfy the identification test, individuals must
include on their tax return the name and age of each qualifying
child. For returns filed with respect to tax year 1996,
individuals must provide a taxpayer identification number (TIN)
for all qualifying children born on or before November 30,
1996. For returns filed with respect to tax year 1997 and all
subsequent years, individuals must provide TINs for all
qualifying children, regardless of their age. An individual's
TIN is generally that individual's social security number.
An individual with qualifying children may elect to
receive a portion of the credit on an advance basis by
furnishing an advance payment certificate to his or her
employer. For such an individual, the employer makes an advance
payment of the credit at the time wages are paid. The amount of
advance payment allowable in a taxable year is limited to 60
percent of the maximum credit available to an individual with
one qualifying child.
Mathematical or clerical errors. The Internal Revenue
Service may summarily assess additional tax due as a result of
a mathematical or clerical error without sending the taxpayer a
notice of deficiency and giving the taxpayer an opportunity to
petition the Tax Court. Where the IRS uses the summary
assessment procedure for mathematical or clerical errors, the
taxpayer must be given an explanation of the asserted error and
a period of 60 days to request that the IRS abate its
assessment. The IRS may not proceed to collect the amount of
the assessment until the taxpayer has agreed to it or has
allowed the 60-day period for objecting to expire. If the
taxpayer files a request for abatement of the assessment
specified in the notice, the IRS must abate the assessment. Any
reassessment of the abated amount is subject to the ordinary
deficiency procedures. The request for abatement of the
assessment is the only procedure a taxpayer may use prior to
paying the assessed amount in order to contest an assessment
arising out of a mathematical or clerical error. Once the
assessment is satisfied, however, the taxpayer may file a claim
for refund if he or she believes the assessment was made in
error.
House bill
Individuals are not eligible for the credit if they do
not include their taxpayer identification number (and, if
married, their spouse's taxpayer identification number) on
their tax return. Solely for these purposes and for purposes of
the present-law identification test for a qualifying child, a
taxpayer identification number is defined as a social security
number issued to an individual by the Social Security
Administration other than a number issued under section
205(c)(2)(B)(i)(II) (or that portion of sec.
205(c)(2)(B)(i)(III) relating to it) of the Social Security Act
(regarding the issuance of a number to an individual applying
for or receiving Federally funded benefits).
If an individual fails to provide a correct taxpayer
identification number, such omission will be treated as a
mathematical or clerical error. If an individual who claims the
credit with respect to net earnings from self-employment fails
to pay the proper amount of self-employment tax on such net
earnings, the failure will be treated as a mathematical or
clerical error for purposes of the amount of credit allowed.
Effective date. The provision is effective for taxable
years beginning after December 31, 1995.
Senate amendment
The provision in the Senate amendment is identical to
that in the House bill.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment with a modification to the effective date. The
conference agreement is effective with respect to returns the
due date for which (without regard to extensions) is more than
30 days after the date of enactment of this Act.
B. Change disqualified income test for earned income credit
Present law
For taxable years beginning after December 31, 1995, an
individual is not eligible for the earned income credit if the
aggregate amount of ``disqualified income'' of the taxpayer for
the taxable year exceeds $2,350. This threshold is not indexed.
Disqualified income is the sum of:
(1) interest (taxable and tax-exempt),
(2) dividends, and
(3) net rent and royalty income (if greater than
zero).
House bill
No provision.
Senate amendment
For purposes of the disqualified income test for the
earned income credit, the following items are added to the
definition of disqualified income: capital gain net income and
net passive income (if greater than zero) that is not self-
employment income.
The threshold above which an individual is not eligible
for the credit is reduced from $2,350 to $2,200, and the
threshold is indexed for inflation after 1996.
Effective date. The provision generally is effective for
taxable years beginning after December 31, 1995. For
individuals who, as of June 26, 1996, had made an election to
receive the current-year credit on an advance basis, the
provision is effective for taxable years beginning after
December 31, 1996.
Conference agreement
The conference agreement follows the Senate amendment.
C. Modify definition of adjusted gross income used for phasing out the
earned income credit
Present law
For taxpayers with earned income (or AGI, if greater) in
excess of the beginning of the phaseout range, the maximum
earned income credit amount is reduced by the phaseout rate
multiplied by the amount of earned income (or AGI, if greater)
in excess of the beginning of the phaseout range. For taxpayers
with earned income (or AGI, if greater) in excess of the end of
the phaseout range, no credit is allowed.
House bill
No provision.
Senate amendment
The provision modifies the definition of AGI used for
phasing out the earned income credit by including certain
nontaxable income and by disregarding certain losses. The
nontaxable items included are:
(1) tax-exempt interest, and
(2) nontaxable distributions from pensions,
annuities, and individual retirement arrangements (but
only if not rolled over into similar vehicles during
the applicable rollover period).
The losses disregarded are:
(1) net capital losses (if greater than zero),
(2) net losses from trusts and estates,
(3) net losses from nonbusiness rents and
royalties, and
(4) net losses from businesses, computed separately
with respect to sole proprietorships (other than in
farming), sole proprietorships in farming, and other
businesses.
For purposes of item (4), above, amounts attributable to
a business that consists of the performance of services by the
taxpayer as an employee are not taken into account.
Effective date. The provision generally is effective for
taxable years beginning after December 31, 1995. For
individuals who, as of June 26, 1996, had made an election to
receive the current-year credit on an advance basis, the
provision is effective for taxable years beginning after
December 31, 1996.
Conference agreement
The conference agreement modifies the definition of AGI
used for phasing out the earned income credit by disregarding
certain losses. The losses disregarded are:
(1) net capital losses (if greater than zero),
(2) net losses from trusts and estates,
(3) net losses from nonbusiness rents and
royalties, and
(4) 50 percent of the net losses from businesses,
computed separately with respect to sole
proprietorships (other than in farming), sole
proprietorships in farming, and other businesses.
For purposes of item (4), above, amounts attributable to
a business that consists of the performance of services by the
taxpayer as an employee are not taken into account.
Effective date. Same as the Senate amendment provision.
D. Suspend inflation adjustments for earned income credit for
individuals with no qualifying children
Present law
To claim the earned income credit, an individual must
either have a qualifying child or meet other requirements. In
order to claim a credit without a qualifying child, an
individual must not be a dependent and must be over age 24 and
under age 65.
The earned income amount and the beginning of the
phaseout range are indexed for inflation; because the end of
the phaseout range depends on these amounts as well as the
phaseout rate and the credit rate, the end of the phaseout
range will also increase if there is inflation.
House bill
No provision.
Senate amendment
In the case of individuals with no qualifying children
there will be no adjustment for inflation after 1996 to the
earned income amount or the beginning of the phaseout range.
Effective date. The provision is effective for taxable
years beginning after December 31, 1996.
Conference agreement
The conference agreement follows the House bill (no
provision).
11. Reductions in Federal Government Positions
A. Reductions
Present law
No provision
House bill
A covered activity is defined as one that the Department
must carry out under a provision of this Act or a provision of
Federal law that is amended or repealed by the Act. It also
requires the Secretaries of Agriculture, Education, Labor, HHS,
and Housing and Urban Development to report to Congress by
December 31, 1996 on the number of full-time equivalent (FTE)
positions required to carry out ``covered'' activities before
and after enactment of the amendment and to reduce the number
of employees by the difference in numbers. The Comptroller
General of the United States shall prepare and submit to
Congress by July 1, 1997, a report analyzing the determinations
made by each Secretary.
Senate amendment
Similar to House bill, except:
requires the Secretaries to report the number of
FTEs not later than December 31, 1996 (rather than
January 1, 1997);
requires the Secretaries to prepare and submit a
report of changes not later than December 31, 1997
(rather than December 31, 1996); and
adjusts discretionary spending limits downward for
fiscal years 1997 and 1998 to account for savings
achieved by this provision. (This provision was deleted
due to the Byrd Rule.)
Conference agreement
This provision was deleted due to the Byrd rule. For
additional discussion of related provisions, see Title I: Block
Grants for Temporary Assistance for Needy Families, above.
B. Reductions in Federal Bureaucracy
Present law
No provision
House bill
The Department of Health and Human Services (HHS) reports
that 118 employees in the Office of Family Assistance (OFA)
work on AFDC and 209 (full-time equivalent positions) in
regional offices of the Administration on Children and
Families. The OFA employees include 30 who spend some time
interpreting AFDC/JOBS policy and participating with States in
State plan development.
Senate amendment
Similar to House bill. (This provision was deleted due to
the Byrd Rule.)
Conference agreement
This provision was deleted due to the Byrd rule. For
additional discussion of related provisions, see Title I: Block
Grants for Temporary Assistance for Needy Families, above.
C. Reducing Personnel in Washington, DC Area
Present law
No provision.
House bill
The Secretary is encouraged to reduce personnel in the
Washington, D.C. office (agency headquarters) before reducing
field personnel.
Senate amendment
Similar to House bill. (This provision was deleted due to
the Byrd Rule.)
Conference agreement
This provision was deleted due to the Byrd rule. For
additional discussion of related provisions, see Title I: Block
Grants for Temporary Assistance for Needy Families, above.
12. Reform of Public Housing
A. Fraud under Means-Tested Welfare and Public Assistance Programs
Present law
No provision.
House bill
If a person's means-tested benefits from a Federal,
State, or local welfare program are reduced because of an act
of fraud, their benefits from public or assisted housing may
not be increased in response to the income loss caused by the
penalty.
Senate amendment
Similar to House bill.
Conference agreement
The conference agreement follows the House bill.
B. Failure to Comply with other Welfare and Public Assistance Programs
Present law
If a family's adjusted cash income declines--no matter
what the reason--its housing benefit is increased (that is, its
rental payment is decreased, by 30 cents per dollar). This
applies to cash income from any source, including means-tested
benefit programs. However, the housing programs take no account
of noncash income. Thus, if food stamp benefits decline,
housing benefits are unaffected.
House bill
No provision.
Senate amendment
Provides that there be no reduction in public or assisted
housing rents in response to a tenant's reduced income
resulting from non-compliance with welfare or public assistance
program requirements; permits reduction where State or local
law limits the period during which benefits may be provided.
Conference agreement
The conference agreement follows the House bill (no
provision).
13. Abstinence Education
Present law
The Maternal and Child Health (MCH) block grants (title V
of the SSA, 42 USC 701) provides grants to States and insular
areas to fund a broad range of preventive health and primary
care activities to improve the health status of mothers and
children, with a special emphasis on those with low income or
with limited availability of health services. Sec. 502 includes
a set-aside program for projects of national or regional
significance. (The FY1995 appropriation for MCH was $684
million.) See also: Title XX of the Public Health Service Act
establishes the Adolescent Family Life (AFL) program to
encourage adolescents to delay sexual activity and to provide
services to alleviate the problems surrounding adolescent
parenthood. One-third of all funding for AFL program services
go to projects that provide ``prevention services.'' The
purpose of the prevention component is to find effective means
within the context of the family of reaching adolescents, both
male and female, before they become sexually active to maximize
the guidance and support of parents and other family members in
promoting abstinence from adolescent premarital sexual
relations. (The FY1995 appropriation for AFL was $6.7 million.)
House bill
Increases the authorization level to $761 million for FY
96 and each subsequent fiscal year. Adds abstinence education
to the services to be provided. Defines abstinence education as
an educational or motivational program which:
(A) teaches the gains to be realized by abstaining
from sexual activity;
(B) teaches abstinence from sexual activity outside
of marriage as the expected standard for all school age
children;
(C) teaches that abstinence is the only certain way
to avoid out-of-wedlock pregnancy, sexually transmitted
diseases, and other health problems;
(D) teaches that a monogamous relationship in
context of marriage is expected standard of human
sexual activity;
(E) teaches that sexual activity outside of
marriage is likely to have harmful effects;
(F) teaches that bearing children out-of-wedlock is
likely to have harmful consequences;
(G) teaches young people how to avoid sexual
advances and how alcohol and drug use increases
vulnerability to sexual advances; and
(H) teaches the importance of attaining self-
sufficiency before engaging in sexual activity.
Senate amendment
Amends the Maternal and Child Health (MCH) block grants
(title V of the SSA) to set aside $75 million to provide
abstinence education--defined as an educational or motivational
program that has abstaining from sexual activity as its
exclusive purpose--and to provide at the option of the State
mentoring, counseling and adult supervision to promote
abstinence with a focus on those groups most likely to bear
children out-of-wedlock. Also increases the authorization level
of MCH to $761 million. (This provision was deleted due to the
Byrd Rule.)
Conference agreement
The conference agreement follows the House bill with
modification that $50 million for each of fiscal years 1998-
2002 is directly appropriated for this purpose.
14. Church of Christ, Scientist
Present law
Sections 1902(a) and 1908(e)(1) of the Social Security
Act (relating to Medicaid) reference the Church of Christ,
Scientist.
House bill
No provision.
Senate amendment
No provision.
Conference agreement
Changes Medicaid references in Social Security Act from
Church of Christ, Scientist, to the Commission for
Accreditation of Christian Science Nursing Organizations/
Facilities, Inc.
John R. Kasich,
Bill Archer,
William F. Goodling,
Pat Roberts,
Tom Bliley,
E. Clay Shaw, Jr.,
James Talent,
Jim Nussle,
Tim Hutchinson,
Jim McCrery,
Michael Bilirakis,
Lamar Smith,
Nancy L. Johnson,
Dave Camp,
Gary A. Franks,
``Duke'' Cunningham,
Mike Castle,
Bob Goodlatte,
Managers on the Part of the House.
From the Committee on the Budget:
Pete V. Domenici,
D. Nickles,
Phil Gramm,
Jim Exon,
From the Committee on Agriculture, Nutrition,
and Forestry:
Richard G. Lugar,
Jesse Helms,
Thad Cochran,
Rick Santorum,
From the Committee on Finance:
William V. Roth, Jr.,
John H. Chafee,
Chuck Grassley,
Orrin Hatch,
Al Simpson,
From the Committee on Labor and Human
Resources:
Nancy Landon Kassebaum,
Managers on the Part of the Senate.