U.S.
GOVERNMENT > The Three Branches > Legislative Branch > Welfare Reform Act of 1996
Welfare Reform Act of 1996
(Personal Responsibility
and Work Opportunity Reconciliation Act of
1996)
Public Law 104-193
104th Congress
An Act
To provide for reconciliation pursuant to section 201(a)(1) of the
concurrent resolution on the budget for fiscal year 1997. <<NOTE: Aug.
22, 1996 - [H.R. 3734]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Personal Responsibility and
Work Opportunity Reconciliation Act of 1996.>> assembled,
SECTION 1. <<NOTE: 42 USC 1305 note.>> 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.
[[Page 110 STAT. 2106]]
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.
[[Page 110 STAT. 2107]]
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.
[[Page 110 STAT. 2108]]
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.
[[Page 110 STAT. 2109]]
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.
[[Page 110 STAT. 2110]]
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
SEC. 101. <<NOTE: 42 USC 601 note.>> 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
[[Page 110 STAT. 2111]]
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.
[[Page 110 STAT. 2112]]
(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 <<NOTE: 42 USC prec. 601,
601-610, 612, 613, 615-617.>> section 418 (as added by section
603(b)(2) of this Act) and inserting the following:
[[Page 110 STAT. 2113]]
``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
``SEC. 401. <<NOTE: 42 USC 601.>> 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. <<NOTE: 42 USC 602.>> 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
[[Page 110 STAT. 2114]]
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--
[[Page 110 STAT. 2115]]
``(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. <<NOTE: 42 USC 603.>> GRANTS TO STATES.
``(a) Grants.--
[[Page 110 STAT. 2116]]
``(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) \4/3\ 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;
[[Page 110 STAT. 2117]]
``(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
[[Page 110 STAT. 2118]]
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.
[[Page 110 STAT. 2119]]
``(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
[[Page 110 STAT. 2120]]
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
[[Page 110 STAT. 2121]]
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 to 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
[[Page 110 STAT. 2122]]
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
[[Page 110 STAT. 2123]]
(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:
[[Page 110 STAT. 2124]]
``(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. <<NOTE: 42 USC 604.>> 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
[[Page 110 STAT. 2125]]
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.
[[Page 110 STAT. 2126]]
``(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 <<NOTE: Regulations.>> 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.
[[Page 110 STAT. 2127]]
``(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
[[Page 110 STAT. 2128]]
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. <<NOTE: 42 USC 605.>> 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. <<NOTE: 42 USC 606.>> FEDERAL LOANS FOR STATE WELFARE
PROGRAMS.
``(a) Loan Authority.--
[[Page 110 STAT. 2129]]
``(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. <<NOTE: 42 USC 607.>> 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.
[[Page 110 STAT. 2130]]
``(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 <<NOTE: Regulations.>> 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.
[[Page 110 STAT. 2131]]
``(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
[[Page 110 STAT. 2132]]
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 sub- section
(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
[[Page 110 STAT. 2133]]
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
[[Page 110 STAT. 2134]]
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. <<NOTE: 42 USC 608.>> 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
[[Page 110 STAT. 2135]]
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
[[Page 110 STAT. 2136]]
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
[[Page 110 STAT. 2137]]
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
[[Page 110 STAT. 2138]]
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 pro
[[Page 110 STAT. 2139]]
grams 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
[[Page 110 STAT. 2140]]
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--
[[Page 110 STAT. 2141]]
``(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.
[[Page 110 STAT. 2142]]
``(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. <<NOTE: 42 USC 609.>> 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.
[[Page 110 STAT. 2143]]
``(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.--
[[Page 110 STAT. 2144]]
``(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
[[Page 110 STAT. 2145]]
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
[[Page 110 STAT. 2146]]
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.
[[Page 110 STAT. 2147]]
``(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
sub- paragraph (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
[[Page 110 STAT. 2148]]
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. <<NOTE: 42 USC 610.>> 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. <<NOTE: 42 USC 611.>> 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.
[[Page 110 STAT. 2149]]
``(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
[[Page 110 STAT. 2150]]
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. <<NOTE: 42 USC 612.>> 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
[[Page 110 STAT. 2151]]
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--
[[Page 110 STAT. 2152]]
``(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)'.
[[Page 110 STAT. 2153]]
``(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. <<NOTE: 42 USC 613.>> 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.
[[Page 110 STAT. 2154]]
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
[[Page 110 STAT. 2155]]
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--
[[Page 110 STAT. 2156]]
``(A) 50 percent shall be allocated for the pur-
poses 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 the 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 <<NOTE: Regulations.>>
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. <<NOTE: 42 USC 614.>> 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
[[Page 110 STAT. 2157]]
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. <<NOTE: 42 USC 615.>> 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
[[Page 110 STAT. 2158]]
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 sub- section (a).
``SEC. 416. <<NOTE: 42 USC 616.>> 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
[[Page 110 STAT. 2159]]
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. <<NOTE: 42 USC 617.>> LIMITATION ON FEDERAL AUTHORITY.
``No officer or employee of the Federal Government may regulate the
conduct of States under this part or enforce any pro- vision of this
part, except to the extent expressly provided in this part.''; and
(2) by inserting after such section 418 the following:
``SEC. 419. <<NOTE: 42 USC 619.>> 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.
[[Page 110 STAT. 2160]]
``(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;
[[Page 110 STAT. 2161]]
``(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 sub- section (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. <<NOTE: 42 USC 604a.>> 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.
[[Page 110 STAT. 2162]]
(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 <<NOTE: Contracts.>> .--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
[[Page 110 STAT. 2163]]
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. <<NOTE: 13 USC 141 note.>> 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:
[[Page 110 STAT. 2164]]
(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 admin-
istration 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 cap- able
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. <<NOTE: 42 USC 613 note.>> 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 Represen- tatives 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''.
[[Page 110 STAT. 2165]]
(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)''.
[[Page 110 STAT. 2166]]
(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
[[Page 110 STAT. 2167]]
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 not 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.
[[Page 110 STAT. 2168]]
(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.
[[Page 110 STAT. 2169]]
(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
[[Page 110 STAT. 2170]]
(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
[[Page 110 STAT. 2171]]
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--
[[Page 110 STAT. 2172]]
(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 pay
[[Page 110 STAT. 2173]]
ments 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''.
[[Page 110 STAT. 2174]]
(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'';
[[Page 110 STAT. 2175]]
(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
[[Page 110 STAT. 2176]]
Act'' and inserting ``section 404(e), 464, or 1137 of the Social
Security Act''.
SEC. 111. <<NOTE: 42 USC 405 note.>> 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)--
[[Page 110 STAT. 2177]]
(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 <<NOTE: 42 USC 1396v.>>
as section 1932; and
(2) by inserting after section 1930 the following new
section:
``Sec. 1931. <<NOTE: 42 USC 1396u-1.>> (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--
[[Page 110 STAT. 2178]]
``(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;
United States 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.
[[Page 110 STAT. 2179]]
``(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.
[[Page 110 STAT. 2180]]
``(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. <<NOTE: 42 USC 862a.>> 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
[[Page 110 STAT. 2181]]
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. <<NOTE: 42 USC 601 note.>> 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
[[Page 110 STAT. 2182]]
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
[[Page 110 STAT. 2183]]
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).
[[Page 110 STAT. 2184]]
(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
[[Page 110 STAT. 2185]]
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 <<NOTE: 42 USC 1382 note.>> .--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
[[Page 110 STAT. 2186]]
``(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 <<NOTE: 42 USC 1382 note.>> .--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 <<NOTE: Contracts.>> 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.
[[Page 110 STAT. 2187]]
``(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 <<NOTE: 42 USC 1382 note.>> .--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 <<NOTE: 42 USC 1382 note.>> 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 <<NOTE: 42 USC 1382 note.>> 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.''.
[[Page 110 STAT. 2188]]
(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) <<NOTE: 42 USC 1383.>> (42 U.S.C.
1382j(g)(3)) is amended by inserting ``following the month''
after ``beginning with the month''.
(d) Effective Date <<NOTE: 42 USC 1382 note.>> .--
(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 indi-
vidual'';
(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.
[[Page 110 STAT. 2189]]
``(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)) <<NOTE: 42 USC 1382c.>> 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
[[Page 110 STAT. 2190]]
(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 <<NOTE: 42 USC 1382c note.>> .--
(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
[[Page 110 STAT. 2191]]
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, <<NOTE: 2 USC 901.>>
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
[[Page 110 STAT. 2192]]
and redeterminations authorized under section 211
of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996;''.
(C) Adjustments.--Section <<NOTE: 2 USC 665e.>>
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) <<NOTE: Ante, p. 850.>> 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 pay
[[Page 110 STAT. 2193]]
ment 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
[[Page 110 STAT. 2194]]
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 <<NOTE: 42 USC 1382c note.>> .--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--
[[Page 110 STAT. 2195]]
``(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 <<NOTE: 42 USC 1382a note.>> .--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
[[Page 110 STAT. 2196]]
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 <<NOTE: 42 USC 1382 note.>> .--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. <<NOTE: 42 USC 1382 note.>> 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
indi- vidual 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
[[Page 110 STAT. 2197]]
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 <<NOTE: 42 USC 1383 note.>> .--
(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. <<NOTE: 42 USC 1383 note.>> 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:
``Sec. 1637. <<NOTE: 42 USC 1383f.>> (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
[[Page 110 STAT. 2198]]
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 dis- ability
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. <<NOTE: 42 USC 1382 note.>> 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.
[[Page 110 STAT. 2199]]
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
[[Page 110 STAT. 2200]]
(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
[[Page 110 STAT. 2201]]
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
[[Page 110 STAT. 2202]]
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).
[[Page 110 STAT. 2203]]
``(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
[[Page 110 STAT. 2204]]
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 <<NOTE: 42 USC 657 note.>> .--
(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.''.
[[Page 110 STAT. 2205]]
(b) Effective Date <<NOTE: 42 USC 654 note.>> .--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 <<NOTE: 42 USC 654 note.>> .--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;
[[Page 110 STAT. 2206]]
``(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.''.
[[Page 110 STAT. 2207]]
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. <<NOTE: 42 USC 654b.>> 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 is 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
[[Page 110 STAT. 2208]]
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
[[Page 110 STAT. 2209]]
``(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 <<NOTE: 42 USC 654b note.>> .--
(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. <<NOTE: 42 USC 653a.>> 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 law 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
[[Page 110 STAT. 2210]]
``(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 <<NOTE: Notification.>> 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
[[Page 110 STAT. 2211]]
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 <<NOTE: Regulations.>> 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
[[Page 110 STAT. 2212]]
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
[[Page 110 STAT. 2213]]
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) <<NOTE: Notice.>> 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:
[[Page 110 STAT. 2214]]
``(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
[[Page 110 STAT. 2215]]
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 indi-
vidual.''; 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.--
[[Page 110 STAT. 2216]]
(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) <<NOTE: Establishment.>> 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) <<NOTE: Establishment.>> 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.
[[Page 110 STAT. 2217]]
``(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) <<NOTE: Reports.>> 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) <<NOTE: Reports.>> 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).
[[Page 110 STAT. 2218]]
``(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
[[Page 110 STAT. 2219]]
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) <<NOTE: Regulations.>> 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) <<NOTE: Notification.>> 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.--
[[Page 110 STAT. 2220]]
(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) <<NOTE: 42 USC 653 note.>> 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;
[[Page 110 STAT. 2221]]
``(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,
[[Page 110 STAT. 2222]]
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) <<NOTE: Courts.>> 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--
[[Page 110 STAT. 2223]]
``(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
re- questing 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) <<NOTE: Records.>> 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;''.
[[Page 110 STAT. 2224]]
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;
[[Page 110 STAT. 2225]]
``(VI) records of agencies
administering public assistance
programs;
``(VII) records of the motor vehicle
depart- ment; 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 indi- viduals 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
[[Page 110 STAT. 2226]]
proceedings to establish paternity or to establish, modify, or
enforce support orders:
``(A) Locator information; presumptions con- cerning
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
[[Page 110 STAT. 2227]]
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 estab- lishment.--
``(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.
[[Page 110 STAT. 2228]]
``(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 acknow- ledgment.--
``(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
[[Page 110 STAT. 2229]]
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 pro-
ceedings.--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.
[[Page 110 STAT. 2230]]
``(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
[[Page 110 STAT. 2231]]
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) <<NOTE: Notification.>> 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) <<NOTE: 42 USC 658 note.>> 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. <<NOTE: Reports.>> 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)--
[[Page 110 STAT. 2232]]
(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''.
[[Page 110 STAT. 2233]]
(d) Effective Dates.--
(1) <<NOTE: 42 USC 658 note.>> 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) <<NOTE: 42 USC 652 note.>> 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--
[[Page 110 STAT. 2234]]
``(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 <<NOTE: 42 USC 652 note.>> .--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.
[[Page 110 STAT. 2235]]
(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. <<NOTE: 42 USC 654a.>> 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 com-
pleteness 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
[[Page 110 STAT. 2236]]
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) <<NOTE: 42 USC 654a note.>> 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 require-
ments 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 require-
ments 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) <<NOTE: 42 USC 655 note.>> 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 aggre
[[Page 110 STAT. 2237]]
gate 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) <<NOTE: 42 USC 655, 655
note.>> 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 third 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 third calendar quarter following the end of such
preceding fiscal year), to cover costs incurred by the Secretary for
operation of the Federal Parent
[[Page 110 STAT. 2238]]
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).''.
[[Page 110 STAT. 2239]]
(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.
[[Page 110 STAT. 2240]]
``(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. <<NOTE: 44 USC 649s.>> 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 enforce
[[Page 110 STAT. 2241]]
ment 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).''.
[[Page 110 STAT. 2242]]
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 <<NOTE: 26 USC 6305 note.>> .--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.
[[Page 110 STAT. 2243]]
``(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) <<NOTE: Federal Register, publication.>>
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
[[Page 110 STAT. 2244]]
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
[[Page 110 STAT. 2245]]
``(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.
[[Page 110 STAT. 2246]]
``(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--
[[Page 110 STAT. 2247]]
(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 first 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 <<NOTE: 42 USC 659 note.>> .--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) <<NOTE: 10 USC 113 note.>> 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
[[Page 110 STAT. 2248]]
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) <<NOTE: 10 USC 704 note.>> 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.
[[Page 110 STAT. 2249]]
(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 first sentence the following new sentence:
``In the case of a spouse or former spouse who, pursuant to
section 408(a)(3) 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) <<NOTE: 10 USC 1408 note.>> Payroll deductions.--The
Secretary of Defense shall begin payroll deductions within 30
days after receiving notice of withholding, or for the first 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
[[Page 110 STAT. 2250]]
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,
[[Page 110 STAT. 2251]]
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.--
[[Page 110 STAT. 2252]]
(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 <<NOTE: 42 USC 652 note.>> .--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. <<NOTE: 42 USC 659a.>> 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--
[[Page 110 STAT. 2253]]
``(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.
[[Page 110 STAT. 2254]]
``(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.
[[Page 110 STAT. 2255]]
``(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)(3)''.
(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.''.
[[Page 110 STAT. 2256]]
(c) Application of Amendments <<NOTE: 11 USC 523 note.>> .--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
[[Page 110 STAT. 2257]]
(l) of section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b))'' after ``law enforcement
officials''. <<NOTE: Native Americans.>>
(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 <<NOTE: 29 USC 1169 note.>> .--
(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
[[Page 110 STAT. 2258]]
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. <<NOTE: 42 USC 669B.>> 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
[[Page 110 STAT. 2259]]
``(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 <<NOTE: 42 USC 654 note.>> .--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) <<NOTE: 42 USC 654 note.>> 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) <<NOTE: 42 USC 654 note.>> 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'':
[[Page 110 STAT. 2260]]
(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. <<NOTE: 8 USC 1601.>> 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.
[[Page 110 STAT. 2261]]
Subtitle A--Eligibility for Federal Benefits
SEC. 401. <<NOTE: 8 USC 1611.>> 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 fol-
lowing 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,
[[Page 110 STAT. 2262]]
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. <<NOTE: 8 USC 1612.>> 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 para- graph (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
[[Page 110 STAT. 2263]]
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
[[Page 110 STAT. 2264]]
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
[[Page 110 STAT. 2265]]
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. <<NOTE: 8 USC 1613.>> 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 5 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--
[[Page 110 STAT. 2266]]
(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,
[[Page 110 STAT. 2267]]
for Cuban and Haitian entrants as defined in section 501(e)(2) of the
Refugee Education Assistance Act of 1980.
SEC. 404. <<NOTE: 8 USC 1614.>> 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. <<NOTE: 42 USC 611a.>> 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. <<NOTE: 42 USC 1437y.>> 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.''.
[[Page 110 STAT. 2268]]
Subtitle B--Eligibility for State and Local Public Benefits Programs
SEC. 411. <<NOTE: 8 USC 1621.>> 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--
[[Page 110 STAT. 2269]]
(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. <<NOTE: 8 USC 1622.>> 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 with- holding.
(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--
[[Page 110 STAT. 2270]]
(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. <<NOTE: 8 USC 1631.>> 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
[[Page 110 STAT. 2271]]
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. <<NOTE: 8 USC 1632.>> 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:
``Sec. 213A. <<NOTE: 8 USC 1183a.>> (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
[[Page 110 STAT. 2272]]
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.
[[Page 110 STAT. 2273]]
``(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 indi- vidual
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 <<NOTE: 8 USC 1138a note.>> .--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 <<NOTE: 8 USC 1138a
note.>> .--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
[[Page 110 STAT. 2274]]
(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. <<NOTE: 8 USC 1641.>> 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. <<NOTE: 8 USC 1642.>> 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.
[[Page 110 STAT. 2275]]
(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. <<NOTE: 8 USC 1643.>> 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. <<NOTE: 8 USC 1644.>> 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. <<NOTE: 8 USC 1645.>> 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
[[Page 110 STAT. 2276]]
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
[[Page 110 STAT. 2277]]
``(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 <<NOTE: 26 USC 32 note.>> .--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. <<NOTE: 42 USC 628b.>> 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.
[[Page 110 STAT. 2278]]
``(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 para- graph
(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 sec- tion 1123,
the second place it appears (42 U.S.C. 1320a-1a), <<NOTE: 42 USC 1320a-
2a.>> 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 <<NOTE: Child Care and Development Block Grant
Amendments of 1996.>>
SEC. 601. <<NOTE: 42 USC 9801 note.>> SHORT TITLE AND REFERENCES.
(a) Short Title.--This title may be cited as the ``Child Care and
Development Block Grant Amendments of 1996''.
[[Page 110 STAT. 2279]]
(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) <<NOTE: 42 USC 9801 note.>> by inserting ``(a) Short
Title.--'' before ``This''; and
(3) <<NOTE: 42 USC 9858 note.>> 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. <<NOTE: 42 USC 618.>> 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
[[Page 110 STAT. 2280]]
``(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 one 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
[[Page 110 STAT. 2281]]
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)--
[[Page 110 STAT. 2282]]
(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
[[Page 110 STAT. 2283]]
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:
[[Page 110 STAT. 2284]]
``SEC. 658G. <<NOTE: 42 USC 9858e.>> 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 one
parent;
``(v) the sources of family income, including
the amount obtained from (and separately
identified)--
``(I) employment, including self-
employment;
``(II) cash or other assistance
under part A of title IV of the Social
Security Act;
``(III) housing assistance;
[[Page 110 STAT. 2285]]
``(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 sub-
mitted.''; 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
[[Page 110 STAT. 2286]]
(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
[[Page 110 STAT. 2287]]
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. <<NOTE: 42 USC 9858 note.>> 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;
[[Page 110 STAT. 2288]]
(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
indi- vidual, regardless of age, who--
``(i) is determined by a State educational
agency, in accordance with regulations prescribed
by the Secretary, to have one 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 dis- abilities.
``(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
[[Page 110 STAT. 2289]]
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:
[[Page 110 STAT. 2290]]
``, 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 <<NOTE: 42 USC 1759a note.>> .--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)--
[[Page 110 STAT. 2291]]
(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
Con- sumers 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.''.
[[Page 110 STAT. 2292]]
(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 institu-
tions,''; 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 para-
graph (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 re- designated
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 one 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))
[[Page 110 STAT. 2293]]
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 <<NOTE: 42 USC 1761 note.>> .--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 one
employee, the organization does not base payments to an
[[Page 110 STAT. 2294]]
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 organization of the
home under regulations
established by the Secretary.
[[Page 110 STAT. 2295]]
``(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.
[[Page 110 STAT. 2296]]
``(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
[[Page 110 STAT. 2297]]
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
[[Page 110 STAT. 2298]]
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
[[Page 110 STAT. 2299]]
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 <<NOTE: 42 USC 1766.>> is amended by striking subsection (q).
(k) Effective Date <<NOTE: 42 USC 1766 note.>> .--
(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.
[[Page 110 STAT. 2300]]
(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 <<NOTE: 42 USC 1766 note.>> .--
(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) <<NOTE: 42 USC 1766 note.>> 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
[[Page 110 STAT. 2301]]
(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
[[Page 110 STAT. 2302]]
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 <<NOTE: 42 USC 1773 note.>> .--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''.
[[Page 110 STAT. 2303]]
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:
[[Page 110 STAT. 2304]]
``(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);
[[Page 110 STAT. 2305]]
(iii) in subparagraph (I), by striking ``Sec-
retary--'' 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 <<NOTE: 42 USC 1786 note.>> .--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) <<NOTE: Regulations.>> 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
[[Page 110 STAT. 2306]]
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
[[Page 110 STAT. 2307]]
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 <<NOTE: 42 USC 1788 note.>> .--The amendments
made by subsection (e) shall become effective on October 1, 1996.
Subtitle C--Miscellaneous Provisions
SEC. 741. <<NOTE: 42 USC 1751 note.>> 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. <<NOTE: 8 USC 1615.>> 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.).
[[Page 110 STAT. 2308]]
(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.''.
[[Page 110 STAT. 2309]]
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
[[Page 110 STAT. 2310]]
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
[[Page 110 STAT. 2311]]
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;
[[Page 110 STAT. 2312]]
``(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
[[Page 110 STAT. 2313]]
(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
[[Page 110 STAT. 2314]]
``(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) <<NOTE: Regulations.>> 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''.
[[Page 110 STAT. 2315]]
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--
[[Page 110 STAT. 2316]]
``(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
[[Page 110 STAT. 2317]]
``(cc) whether an individual
is in compliance with a
requirement under subpara- graph
(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.''.
[[Page 110 STAT. 2318]]
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
[[Page 110 STAT. 2319]]
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 train
[[Page 110 STAT. 2320]]
ing 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)''.
[[Page 110 STAT. 2321]]
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) <<NOTE: Regulations.>> 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.
[[Page 110 STAT. 2322]]
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.''.
[[Page 110 STAT. 2323]]
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 indi- viduals reside--
``(i) has an unemployment rate of over 10 per-
cent; 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.
[[Page 110 STAT. 2324]]
``(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) <<NOTE: 7 USC 2015 note.>> 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.
[[Page 110 STAT. 2325]]
``(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) <<NOTE: Effective date.>> 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) <<NOTE: Regulations.>> 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
[[Page 110 STAT. 2326]]
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.
[[Page 110 STAT. 2327]]
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
[[Page 110 STAT. 2328]]
``(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.''.
[[Page 110 STAT. 2329]]
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) <<NOTE: Regulations.>> 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;'';
[[Page 110 STAT. 2330]]
(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 follow-
ing: ``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
[[Page 110 STAT. 2331]]
``(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. <<NOTE: Notice.>> 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: <<NOTE: Regulations.>> ``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
[[Page 110 STAT. 2332]]
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) <<NOTE: Regulations.>> 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
[[Page 110 STAT. 2333]]
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) <<NOTE: Effective date.>> 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
[[Page 110 STAT. 2334]]
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''.
[[Page 110 STAT. 2335]]
(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
[[Page 110 STAT. 2336]]
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; and
``(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 strate- gies; 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;
[[Page 110 STAT. 2337]]
``(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 sec- tion 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''.
[[Page 110 STAT. 2338]]
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
[[Page 110 STAT. 2339]]
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''.
[[Page 110 STAT. 2340]]
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. <<NOTE: 7 USC 2035.>> 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
[[Page 110 STAT. 2341]]
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.''.
[[Page 110 STAT. 2342]]
(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. <<NOTE: 7 USC 2026 note.>> 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 house- holds; and
(6) the economic impact on the production of agricultural
commodities of using food stamps to purchase vitamins and
minerals.
[[Page 110 STAT. 2343]]
(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 organiza- tion
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
[[Page 110 STAT. 2344]]
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
[[Page 110 STAT. 2345]]
``(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.
[[Page 110 STAT. 2346]]
(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. <<NOTE: 7 USC 2036.>> 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 <<NOTE: 7 USC 612c note.>> .--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:
[[Page 110 STAT. 2347]]
``(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. <<NOTE: 42 USC 601 note.>> 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. <<NOTE: 21 USC 862b.>> 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.
[[Page 110 STAT. 2348]]
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) <<NOTE: 42 USC 1437d.>> in section 6(l)--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(C) by inserting immediately after paragraph (6) the
following new paragraph:
``(7) provide that it shall be cause for immediate
termination of the tenancy of a public housing tenant if such
tenant--
``(A) is fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the individual flees, for a crime, or
attempt to commit a crime, which is a felony under the
laws of the place from which the individual flees, or
which, in the case of the State of New Jersey, is a high
misdemeanor under the laws of such State; or
``(2) is violating a condition of probation or parole
imposed under Federal or State law.''; and
(2) <<NOTE: 42 USC 1437f.>> 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. <<NOTE: 42 USC 1437z.>> 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--
[[Page 110 STAT. 2349]]
``(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. <<NOTE: 42 USC 710 note.>> 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. <<NOTE: 42 USC 14016.>> 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) <<NOTE: Establishment.>> 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
[[Page 110 STAT. 2350]]
(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--
[[Page 110 STAT. 2351]]
(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) <<NOTE: 42 USC 1397a.>> 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:
[[Page 110 STAT. 2352]]
``(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 <<NOTE: 26 USC 32 note.>> 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
[[Page 110 STAT. 2353]]
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 <<NOTE: 26 USC 32 note.>> .--
(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. <<NOTE: 42 USC 608a.>> 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:
``Sec. 510. <<NOTE: 42 USC 710.>> (a) For the purpose described in
subsection (b), the Secretary shall, for fiscal year 1998 and each
subsequent fiscal
[[Page 110 STAT. 2354]]
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) <<NOTE: Appropriation authorization.>> 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. <<NOTE: Effective
date.>> The appropriation under the preceding sentence for a fiscal
year is made on October 1 of the fiscal year.''.
SEC. 913. <<NOTE: Effective date.>> 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
[[Page 110 STAT. 2355]]
Commission for Accreditation of Christian Science Nursing Organizations/
Facilities, Inc.'' each place it appears.
Approved August 22, 1996.
LEGISLATIVE HISTORY--H.R. 3734 (S. 1956):
---------------------------------------------------------------------------
HOUSE REPORTS: ?Nos. 104-651 (Comm. on the Budget) and 104-725 (Comm. of
Conference).
CONGRESSIONAL RECORD, Vol. 142 (1996):
July 17, 18, considered and passed House.
July 18, 19, 22, 23, considered and passed Senate, amended,
in lieu of S. 1956.
July 31, House agreed to conference report.
Aug. 1, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
Aug. 22, Presidential remarks and statement.
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