FILE h3734.enr
--H.R.3734--
H.R.3734
One Hundred Fourth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
An Act
To provide for reconciliation pursuant to section 201(a)(1) of the
concurrent resolution on the budget for fiscal year 1997.
[Italic->] Be it enacted by the Senate and House of
Representatives of the United States of America in Congress
assembled, [<-Italic]
SECTION 1. SHORT TITLE.
This Act may be cited as the `Personal Responsibility and Work
Opportunity Reconciliation Act of 1996'.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private
organizations.
Sec. 105. Census data on grandparents as primary caregivers for
their grandchildren.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and
related provisions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant Social
Security card required.
Sec. 112. Modifications to the job opportunities for certain
low-income individuals program.
Sec. 113. Secretarial submission of legislative proposal for
technical and conforming amendments.
Sec. 114. Assuring medicaid coverage for low-income families.
Sec. 115. Denial of assistance and benefits for certain
drug-related convictions.
Sec. 116. Effective date; transition rule.
TITLE II--SUPPLEMENTAL SECURITY INCOME
Sec. 200. Reference to Social Security Act.
SUBTITLE A--ELIGIBILITY RESTRICTIONS
Sec. 201. Denial of SSI benefits for 10 years to individuals found
to have fraudulently misrepresented residence in order to
obtain benefits simultaneously in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation
and parole violators.
Sec. 203. Treatment of prisoners.
Sec. 204. Effective date of application for benefits.
SUBTITLE B--BENEFITS FOR DISABLED CHILDREN
Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability
reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized
individuals whose medical costs are covered by private insurance.
Sec. 215. Regulations.
SUBTITLE C--ADDITIONAL ENFORCEMENT PROVISION
Sec. 221. Installment payment of large past-due supplemental
security income benefits.
Sec. 222. Regulations.
SUBTITLE D--STUDIES REGARDING SUPPLEMENTAL SECURITY INCOME PROGRAM
Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study by General Accounting Office.
TITLE III--CHILD SUPPORT
Sec. 300. Reference to Social Security Act.
SUBTITLE A--ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS
Sec. 301. State obligation to provide child support enforcement
services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification of hearings.
SUBTITLE B--LOCATE AND CASE TRACKING
Sec. 311. State case registry.
Sec. 312. Collection and disbursement of support payments.
Sec. 313. State directory of new hires.
Sec. 314. Amendments concerning income withholding.
Sec. 315. Locator information from interstate networks.
Sec. 316. Expansion of the Federal Parent Locator Service.
Sec. 317. Collection and use of Social Security numbers for use in
child support enforcement.
SUBTITLE C--STREAMLINING AND UNIFORMITY OF PROCEDURES
Sec. 321. Adoption of uniform State laws.
Sec. 322. Improvements to full faith and credit for child support
orders.
Sec. 323. Administrative enforcement in interstate cases.
Sec. 324. Use of forms in interstate enforcement.
Sec. 325. State laws providing expedited procedures.
SUBTITLE D--PATERNITY ESTABLISHMENT
Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of part A
assistance.
SUBTITLE E--PROGRAM ADMINISTRATION AND FUNDING
Sec. 341. Performance-based incentives and penalties.
Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.
SUBTITLE F--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS
Sec. 351. Simplified process for review and adjustment of child
support orders.
Sec. 352. Furnishing consumer reports for certain purposes relating
to child support.
Sec. 353. Nonliability for financial institutions providing
financial records to State child support enforcement agencies
in child support cases.
SUBTITLE G--ENFORCEMENT OF SUPPORT ORDERS
Sec. 361. Internal Revenue Service collection of arrearages.
Sec. 362. Authority to collect support from Federal employees.
Sec. 363. Enforcement of child support obligations of members of
the Armed Forces.
Sec. 364. Voiding of fraudulent transfers.
Sec. 365. Work requirement for persons owing past-due child support.
Sec. 366. Definition of support order.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Liens.
Sec. 369. State law authorizing suspension of licenses.
Sec. 370. Denial of passports for nonpayment of child support.
Sec. 371. International support enforcement.
Sec. 372. Financial institution data matches.
Sec. 373. Enforcement of orders against paternal or maternal
grandparents in cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for
the support of a child.
Sec. 375. Child support enforcement for Indian tribes.
SUBTITLE H--MEDICAL SUPPORT
Sec. 381. Correction to ERISA definition of medical child support
order.
Sec. 382. Enforcement of orders for health care coverage.
SUBTITLE I--ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR
NON-RESIDENTIAL PARENTS
Sec. 391. Grants to States for access and visitation programs.
SUBTITLE J--EFFECTIVE DATES AND CONFORMING AMENDMENTS
Sec. 395. Effective dates and conforming amendments.
TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
Sec. 400. Statements of national policy concerning welfare and
immigration.
SUBTITLE A--ELIGIBILITY FOR FEDERAL BENEFITS
Sec. 401. Aliens who are not qualified aliens ineligible for
Federal public benefits.
Sec. 402. Limited eligibility of qualified aliens for certain
Federal programs.
Sec. 403. Five-year limited eligibility of qualified aliens for
Federal means-tested public benefit.
Sec. 404. Notification and information reporting.
SUBTITLE B--ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS PROGRAMS
Sec. 411. Aliens who are not qualified aliens or nonimmigrants
ineligible for State and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens
for State public benefits.
SUBTITLE C--ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT
Sec. 421. Federal attribution of sponsor's income and resources to
alien.
Sec. 422. Authority for States to provide for attribution of
sponsors income and resources to the alien with respect to
State programs.
Sec. 423. Requirements for sponsor's affidavit of support.
SUBTITLE D--GENERAL PROVISIONS
Sec. 431. Definitions.
Sec. 432. Verification of eligibility for Federal public benefits.
Sec. 433. Statutory construction.
Sec. 434. Communication between State and local government agencies
and the Immigration and Naturalization Service.
Sec. 435. Qualifying quarters.
SUBTITLE E--CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING
Sec. 441. Conforming amendments relating to assisted housing.
SUBTITLE F--EARNING INCOME CREDIT DENIED TO UNAUTHORIZED EMPLOYEES
Sec. 451. Earned income credit denied to individuals not authorized
to be employed in the United States.
TITLE V--CHILD PROTECTION
Sec. 501. Authority of States to make foster care maintenance
payments on behalf of children in any private child care
institution.
Sec. 502. Extension of enhanced match for implementation of
statewide automated child welfare information systems.
Sec. 503. National random sample study of child welfare.
Sec. 504. Redesignation of section 1123.
Sec. 505. Kinship care.
TITLE VI--CHILD CARE
Sec. 601. Short title and references.
Sec. 602. Goals.
Sec. 603. Authorization of appropriations and entitlement authority.
Sec. 604. Lead agency.
Sec. 605. Application and plan.
Sec. 606. Limitation on State allotments.
Sec. 607. Activities to improve the quality of child care.
Sec. 608. Repeal of early childhood development and before- and
after-school care requirement.
Sec. 609. Administration and enforcement.
Sec. 610. Payments.
Sec. 611. Annual report and audits.
Sec. 612. Report by the Secretary.
Sec. 613. Allotments.
Sec. 614. Definitions.
Sec. 615. Effective date.
TITLE VII--CHILD NUTRITION PROGRAMS
SUBTITLE A--NATIONAL SCHOOL LUNCH ACT
Sec. 701. State disbursement to schools.
Sec. 702. Nutritional and other program requirements.
Sec. 703. Free and reduced price policy statement.
Sec. 704. Special assistance.
Sec. 705. Miscellaneous provisions and definitions.
Sec. 706. Summer food service program for children.
Sec. 707. Commodity distribution.
Sec. 708. Child and adult care food program.
Sec. 709. Pilot projects.
Sec. 710. Reduction of paperwork.
Sec. 711. Information on income eligibility.
Sec. 712. Nutrition guidance for child nutrition programs.
SUBTITLE B--CHILD NUTRITION ACT OF 1966
Sec. 721. Special milk program.
Sec. 722. Free and reduced price policy statement.
Sec. 723. School breakfast program authorization.
Sec. 724. State administrative expenses.
Sec. 725. Regulations.
Sec. 726. Prohibitions.
Sec. 727. Miscellaneous provisions and definitions.
Sec. 728. Accounts and records.
Sec. 729. Special supplemental nutrition program for women,
infants, and children.
Sec. 730. Cash grants for nutrition education.
Sec. 731. Nutrition education and training.
SUBTITLE C--MISCELLANEOUS PROVISIONS
Sec. 741. Coordination of school lunch, school breakfast, and
summer food service programs.
Sec. 742. Requirements relating to provision of benefits based on
citizenship, alienage, or immigration status under the National
School Lunch Act, the Child Nutrition Act of 1966, and certain
other acts.
TITLE VIII--FOOD STAMPS AND COMMODITY DISTRIBUTION
SUBTITLE A--FOOD STAMP PROGRAM
Sec. 801. Definition of certification period.
Sec. 802. Definition of coupon.
Sec. 803. Treatment of children living at home.
Sec. 804. Adjustment of thrifty food plan.
Sec. 805. Definition of homeless individual.
Sec. 806. State option for eligibility standards.
Sec. 807. Earnings of students.
Sec. 808. Energy assistance.
Sec. 809. Deductions from income.
Sec. 810. Vehicle allowance.
Sec. 811. Vendor payments for transitional housing counted as income.
Sec. 812. Simplified calculation of income for the self-employed.
Sec. 813. Doubled penalties for violating food stamp program
requirements.
Sec. 814. Disqualification of convicted individuals.
Sec. 815. Disqualification.
Sec. 816. Caretaker exemption.
Sec. 817. Employment and training.
Sec. 818. Food stamp eligibility.
Sec. 819. Comparable treatment for disqualification.
Sec. 820. Disqualification for receipt of multiple food stamp
benefits.
Sec. 821. Disqualification of fleeing felons.
Sec. 822. Cooperation with child support agencies.
Sec. 823. Disqualification relating to child support arrears.
Sec. 824. Work requirement.
Sec. 825. Encouragement of electronic benefit transfer systems.
Sec. 826. Value of minimum allotment.
Sec. 827. Benefits on recertification.
Sec. 828. Optional combined allotment for expedited households.
Sec. 829. Failure to comply with other means-tested public
assistance programs.
Sec. 830. Allotments for households residing in centers.
Sec. 831. Condition precedent for approval of retail food stores
and wholesale food concerns.
Sec. 832. Authority to establish authorization periods.
Sec. 833. Information for verifying eligibility for authorization.
Sec. 834. Waiting period for stores that fail to meet authorization
criteria.
Sec. 835. Operation of food stamp offices.
Sec. 836. State employee and training standards.
Sec. 837. Exchange of law enforcement information.
Sec. 838. Expedited coupon service.
Sec. 839. Withdrawing fair hearing requests.
Sec. 840. Income, eligibility, and immigration status verification
systems.
Sec. 841. Investigations.
Sec. 842. Disqualification of retailers who intentionally submit
falsified applications.
Sec. 843. Disqualification of retailers who are disqualified under
the WIC program.
Sec. 844. Collection of overissuances.
Sec. 845. Authority to suspend stores violating program
requirements pending administrative and judicial review.
Sec. 846. Expanded criminal forfeiture for violations.
Sec. 847. Limitation on Federal match.
Sec. 848. Standards for administration.
Sec. 849. Work supplementation or support program.
Sec. 850. Waiver authority.
Sec. 851. Response to waivers.
Sec. 852. Employment initiatives program.
Sec. 853. Reauthorization.
Sec. 854. Simplified food stamp program.
Sec. 855. Study of the use of food stamps to purchase vitamins and
minerals.
Sec. 856. Deficit reduction.
SUBTITLE B--COMMODITY DISTRIBUTION PROGRAMS
Sec. 871. Emergency food assistance program.
Sec. 872. Food bank demonstration project.
Sec. 873. Hunger prevention programs.
Sec. 874. Report on entitlement commodity processing.
SUBTITLE C--ELECTRONIC BENEFIT TRANSFER SYSTEMS
Sec. 891. Provisions to encourage electronic benefit transfer
systems.
TITLE IX--MISCELLANEOUS
Sec. 901. Appropriation by State legislatures.
Sec. 902. Sanctioning for testing positive for controlled substances.
Sec. 903. Elimination of housing assistance with respect to
fugitive felons and probation and parole violators.
Sec. 904. Sense of the Senate regarding the inability of the
noncustodial parent to pay child support.
Sec. 905. Establishing national goals to prevent teenage pregnancies.
Sec. 906. Sense of the Senate regarding enforcement of statutory
rape laws.
Sec. 907. Provisions to encourage electronic benefit transfer
systems.
Sec. 908. Reduction of block grants to States for social services;
use of vouchers.
Sec. 909. Rules relating to denial of earned income credit on basis
of disqualified income.
Sec. 910. Modification of adjusted gross income definition for
earned income credit.
Sec. 911. Fraud under means-tested welfare and public assistance
programs.
Sec. 912. Abstinence education.
Sec. 913. Change in reference.
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
SEC. 101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful society.
(2) Marriage is an essential institution of a successful
society which promotes the interests of children.
(3) Promotion of responsible fatherhood and motherhood is
integral to successful child rearing and the well-being of
children.
(4) In 1992, only 54 percent of single-parent families with
children had a child support order established and, of that 54
percent, only about one-half received the full amount due. Of
the cases enforced through the public child support enforcement
system, only 18 percent of the caseload has a collection.
(5) The number of individuals receiving aid to families with
dependent children (in this section referred to as `AFDC') has
more than tripled since 1965. More than two-thirds of these
recipients are children. Eighty-nine percent of children
receiving AFDC benefits now live in homes in which no father is
present.
(A)(i) The average monthly number of children receiving
AFDC benefits--
(I) was 3,300,000 in 1965;
(II) was 6,200,000 in 1970;
(III) was 7,400,000 in 1980; and
(IV) was 9,300,000 in 1992.
(ii) While the number of children receiving AFDC benefits
increased nearly threefold between 1965 and 1992, the total
number of children in the United States aged 0 to 18 has
declined by 5.5 percent.
(B) The Department of Health and Human Services has
estimated that 12,000,000 children will receive AFDC
benefits within 10 years.
(C) The increase in the number of children receiving
public assistance is closely related to the increase in
births to unmarried women. Between 1970 and 1991, the
percentage of live births to unmarried women increased
nearly threefold, from 10.7 percent to 29.5 percent.
(6) The increase of out-of-wedlock pregnancies and births is
well documented as follows:
(A) It is estimated that the rate of nonmarital teen
pregnancy rose 23 percent from 54 pregnancies per 1,000
unmarried teenagers in 1976 to 66.7 pregnancies in 1991.
The overall rate of nonmarital pregnancy rose 14 percent
from 90.8 pregnancies per 1,000 unmarried women in 1980 to
103 in both 1991 and 1992. In contrast, the overall
pregnancy rate for married couples decreased 7.3 percent
between 1980 and 1991, from 126.9 pregnancies per 1,000
married women in 1980 to 117.6 pregnancies in 1991.
(B) The total of all out-of-wedlock births between 1970
and 1991 has risen from 10.7 percent to 29.5 percent and if
the current trend continues, 50 percent of all births by
the year 2015 will be out-of-wedlock.
(7) An effective strategy to combat teenage pregnancy must
address the issue of male responsibility, including statutory
rape culpability and prevention. The increase of teenage
pregnancies among the youngest girls is particularly severe and
is linked to predatory sexual practices by men who are
significantly older.
(A) It is estimated that in the late 1980's, the rate for
girls age 14 and under giving birth increased 26 percent.
(B) Data indicates that at least half of the children
born to teenage mothers are fathered by adult men.
Available data suggests that almost 70 percent of births to
teenage girls are fathered by men over age 20.
(C) Surveys of teen mothers have revealed that a majority
of such mothers have histories of sexual and physical
abuse, primarily with older adult men.
(8) The negative consequences of an out-of-wedlock birth on
the mother, the child, the family, and society are well
documented as follows:
(A) Young women 17 and under who give birth outside of
marriage are more likely to go on public assistance and to
spend more years on welfare once enrolled. These combined
effects of `younger and longer' increase total AFDC costs
per household by 25 percent to 30 percent for 17-year-olds.
(B) Children born out-of-wedlock have a substantially
higher risk of being born at a very low or moderately low
birth weight.
(C) Children born out-of-wedlock are more likely to
experience low verbal cognitive attainment, as well as more
child abuse, and neglect.
(D) Children born out-of-wedlock were more likely to have
lower cognitive scores, lower educational aspirations, and
a greater likelihood of becoming teenage parents themselves.
(E) Being born out-of-wedlock significantly reduces the
chances of the child growing up to have an intact marriage.
(F) Children born out-of-wedlock are 3 times more likely
to be on welfare when they grow up.
(9) Currently 35 percent of children in single-parent homes
were born out-of-wedlock, nearly the same percentage as that of
children in single-parent homes whose parents are divorced (37
percent). While many parents find themselves, through divorce
or tragic circumstances beyond their control, facing the
difficult task of raising children alone, nevertheless, the
negative consequences of raising children in single-parent
homes are well documented as follows:
(A) Only 9 percent of married-couple families with
children under 18 years of age have income below the
national poverty level. In contrast, 46 percent of
female-headed households with children under 18 years of
age are below the national poverty level.
(B) Among single-parent families, nearly 1/2 of the
mothers who never married received AFDC while only 1/5 of
divorced mothers received AFDC.
(C) Children born into families receiving welfare
assistance are 3 times more likely to be on welfare when
they reach adulthood than children not born into families
receiving welfare.
(D) Mothers under 20 years of age are at the greatest
risk of bearing low birth weight babies.
(E) The younger the single-parent mother, the less likely
she is to finish high school.
(F) Young women who have children before finishing high
school are more likely to receive welfare assistance for a
longer period of time.
(G) Between 1985 and 1990, the public cost of births to
teenage mothers under the aid to families with dependent
children program, the food stamp program, and the medicaid
program has been estimated at $120,000,000,000.
(H) The absence of a father in the life of a child has a
negative effect on school performance and peer adjustment.
(I) Children of teenage single parents have lower
cognitive scores, lower educational aspirations, and a
greater likelihood of becoming teenage parents themselves.
(J) Children of single-parent homes are 3 times more
likely to fail and repeat a year in grade school than are
children from intact 2-parent families.
(K) Children from single-parent homes are almost 4 times
more likely to be expelled or suspended from school.
(L) Neighborhoods with larger percentages of youth aged
12 through 20 and areas with higher percentages of
single-parent households have higher rates of violent crime.
(M) Of those youth held for criminal offenses within the
State juvenile justice system, only 29.8 percent lived
primarily in a home with both parents. In contrast to these
incarcerated youth, 73.9 percent of the 62,800,000 children
in the Nation's resident population were living with both
parents.
(10) Therefore, in light of this demonstration of the crisis
in our Nation, it is the sense of the Congress that prevention
of out-of-wedlock pregnancy and reduction in out-of-wedlock
birth are very important Government interests and the policy
contained in part A of title IV of the Social Security Act (as
amended by section 103(a) of this Act) is intended to address
the crisis.
SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title
an amendment is expressed in terms of an amendment to or repeal of
a section or other provision, the reference shall be considered to
be made to that section or other provision of the Social Security
Act.
SEC. 103. BLOCK GRANTS TO STATES.
(a) IN GENERAL- Part A of title IV (42 U.S.C. 601 et seq.) is
amended--
(1) by striking all that precedes section 418 (as added by
section 603(b)(2) of this Act) and inserting the following:
`PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
`SEC. 401. PURPOSE.
`(a) IN GENERAL- The purpose of this part is to increase the
flexibility of States in operating a program designed to--
`(1) provide assistance to needy families so that children
may be cared for in their own homes or in the homes of relatives;
`(2) end the dependence of needy parents on government
benefits by promoting job preparation, work, and marriage;
`(3) prevent and reduce the incidence of out-of-wedlock
pregnancies and establish annual numerical goals for preventing
and reducing the incidence of these pregnancies; and
`(4) encourage the formation and maintenance of two-parent
families.
`(b) NO INDIVIDUAL ENTITLEMENT- This part shall not be
interpreted to entitle any individual or family to assistance under
any State program funded under this part.
`SEC. 402. ELIGIBLE STATES; STATE PLAN.
`(a) IN GENERAL- As used in this part, the term `eligible State'
means, with respect to a fiscal year, a State that, during the
2-year period immediately preceding the fiscal year, has submitted
to the Secretary a plan that the Secretary has found includes the
following:
`(1) OUTLINE OF FAMILY ASSISTANCE PROGRAM-
`(A) GENERAL PROVISIONS- A written document that outlines
how the State intends to do the following:
`(i) Conduct a program, designed to serve all
political subdivisions in the State (not necessarily in
a uniform manner), that provides assistance to needy
families with (or expecting) children and provides
parents with job preparation, work, and support
services to enable them to leave the program and become
self-sufficient.
`(ii) Require a parent or caretaker receiving
assistance under the program to engage in work (as
defined by the State) once the State determines the
parent or caretaker is ready to engage in work, or once
the parent or caretaker has received assistance under
the program for 24 months (whether or not consecutive),
whichever is earlier.
`(iii) Ensure that parents and caretakers receiving
assistance under the program engage in work activities
in accordance with section 407.
`(iv) Take such reasonable steps as the State deems
necessary to restrict the use and disclosure of
information about individuals and families receiving
assistance under the program attributable to funds
provided by the Federal Government.
`(v) Establish goals and take action to prevent and
reduce the incidence of out-of-wedlock pregnancies,
with special emphasis on teenage pregnancies, and
establish numerical goals for reducing the illegitimacy
ratio of the State (as defined in section 403(a)(2)(B))
for calendar years 1996 through 2005.
`(vi) Conduct a program, designed to reach State and
local law enforcement officials, the education system,
and relevant counseling services, that provides
education and training on the problem of statutory rape
so that teenage pregnancy prevention programs may be
expanded in scope to include men.
`(B) SPECIAL PROVISIONS-
`(i) The document shall indicate whether the State
intends to treat families moving into the State from
another State differently than other families under the
program, and if so, how the State intends to treat such
families under the program.
`(ii) The document shall indicate whether the State
intends to provide assistance under the program to
individuals who are not citizens of the United States,
and if so, shall include an overview of such assistance.
`(iii) The document shall set forth objective
criteria for the delivery of benefits and the
determination of eligibility and for fair and equitable
treatment, including an explanation of how the State
will provide opportunities for recipients who have been
adversely affected to be heard in a State
administrative or appeal process.
`(iv) Not later than 1 year after the date of
enactment of this Act, unless the chief executive
officer of the State opts out of this provision by
notifying the Secretary, a State shall, consistent with
the exception provided in section 407(e)(2), require a
parent or caretaker receiving assistance under the
program who, after receiving such assistance for 2
months is not exempt from work requirements and is not
engaged in work, as determined under section 407(c), to
participate in community service employment, with
minimum hours per week and tasks to be determined by
the State.
`(2) CERTIFICATION THAT THE STATE WILL OPERATE A CHILD
SUPPORT ENFORCEMENT PROGRAM- A certification by the chief
executive officer of the State that, during the fiscal year,
the State will operate a child support enforcement program
under the State plan approved under part D.
`(3) CERTIFICATION THAT THE STATE WILL OPERATE A FOSTER CARE
AND ADOPTION ASSISTANCE PROGRAM- A certification by the chief
executive officer of the State that, during the fiscal year,
the State will operate a foster care and adoption assistance
program under the State plan approved under part E, and that
the State will take such actions as are necessary to ensure
that children receiving assistance under such part are eligible
for medical assistance under the State plan under title XIX.
`(4) CERTIFICATION OF THE ADMINISTRATION OF THE PROGRAM- A
certification by the chief executive officer of the State
specifying which State agency or agencies will administer and
supervise the program referred to in paragraph (1) for the
fiscal year, which shall include assurances that local
governments and private sector organizations--
`(A) have been consulted regarding the plan and design of
welfare services in the State so that services are provided
in a manner appropriate to local populations; and
`(B) have had at least 45 days to submit comments on the
plan and the design of such services.
`(5) CERTIFICATION THAT THE STATE WILL PROVIDE INDIANS WITH
EQUITABLE ACCESS TO ASSISTANCE- A certification by the chief
executive officer of the State that, during the fiscal year,
the State will provide each member of an Indian tribe, who is
domiciled in the State and is not eligible for assistance under
a tribal family assistance plan approved under section 412,
with equitable access to assistance under the State program
funded under this part attributable to funds provided by the
Federal Government.
`(6) CERTIFICATION OF STANDARDS AND PROCEDURES TO ENSURE
AGAINST PROGRAM FRAUD AND ABUSE- A certification by the chief
executive officer of the State that the State has established
and is enforcing standards and procedures to ensure against
program fraud and abuse, including standards and procedures
concerning nepotism, conflicts of interest among individuals
responsible for the administration and supervision of the State
program, kickbacks, and the use of political patronage.
`(7) OPTIONAL CERTIFICATION OF STANDARDS AND PROCEDURES TO
ENSURE THAT THE STATE WILL SCREEN FOR AND IDENTIFY DOMESTIC
VIOLENCE-
`(A) IN GENERAL- At the option of the State, a
certification by the chief executive officer of the State
that the State has established and is enforcing standards
and procedures to--
`(i) screen and identify individuals receiving
assistance under this part with a history of domestic
violence while maintaining the confidentiality of such
individuals;
`(ii) refer such individuals to counseling and
supportive services; and
`(iii) waive, pursuant to a determination of good
cause, other program requirements such as time limits
(for so long as necessary) for individuals receiving
assistance, residency requirements, child support
cooperation requirements, and family cap provisions, in
cases where compliance with such requirements would
make it more difficult for individuals receiving
assistance under this part to escape domestic violence
or unfairly penalize such individuals who are or have
been victimized by such violence, or individuals who
are at risk of further domestic violence.
`(B) DOMESTIC VIOLENCE DEFINED- For purposes of this
paragraph, the term `domestic violence' has the same
meaning as the term `battered or subjected to extreme
cruelty', as defined in section 408(a)(7)(C)(iii).
`(b) PUBLIC AVAILABILITY OF STATE PLAN SUMMARY- The State shall
make available to the public a summary of any plan submitted by the
State under this section.
`SEC. 403. GRANTS TO STATES.
`(a) GRANTS-
`(1) FAMILY ASSISTANCE GRANT-
`(A) IN GENERAL- Each eligible State shall be entitled to
receive from the Secretary, for each of fiscal years 1996,
1997, 1998, 1999, 2000, 2001, and 2002, a grant in an
amount equal to the State family assistance grant.
`(B) STATE FAMILY ASSISTANCE GRANT DEFINED- As used in
this part, the term `State family assistance grant' means
the greatest of--
`(i) 1/3 of the total amount required to be paid to
the State under former section 403 (as in effect on
September 30, 1995) for fiscal years 1992, 1993, and
1994 (other than with respect to amounts expended by
the State for child care under subsection (g) or (i) of
former section 402 (as so in effect));
`(ii)(I) the total amount required to be paid to the
State under former section 403 for fiscal year 1994
(other than with respect to amounts expended by the
State for child care under subsection (g) or (i) of
former section 402 (as so in effect)); plus
`(II) an amount equal to 85 percent of the amount (if
any) by which the total amount required to be paid to
the State under former section 403(a)(5) for emergency
assistance for fiscal year 1995 exceeds the total
amount required to be paid to the State under former
section 403(a)(5) for fiscal year 1994, if, during
fiscal year 1994 or 1995, the Secretary approved under
former section 402 an amendment to the former State
plan with respect to the provision of emergency
assistance; or
`(iii) 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;
`(III) the Federal share of emergency assistance expenditures for
the fiscal year, as reported by the State on ACF Form 231;
`(IV) the Federal share of expenditures for the fiscal year with
respect to child care pursuant to subsections (g) and (i) of former
section 402 (as in effect on September 30, 1995), as reported by
the State on ACF Form 231; and
`(V) the Federal obligations made to the State under section 403
for the fiscal year with respect to the State program operated
under part F (as in effect on September 30, 1995), as determined by
the Secretary, including additional obligations or reductions in
obligations made after the close of the fiscal year; and
`(ii) in the case of a State to which section 1108
applies, the lesser of--
`(I) the sum described in clause (i); or
`(II) the total amount certified by the Secretary under former
section 403 (as in effect during the fiscal year) with respect to
the territory.
`(D) INFORMATION TO BE USED IN DETERMINING AMOUNTS-
`(i) FOR FISCAL YEARS 1992 AND 1993-
`(I) In determining the amounts described in subclauses (I)
through (IV) of subparagraph (C)(i) for any State for each of
fiscal years 1992 and 1993, the Secretary shall use information
available as of April 28, 1995.
`(II) In determining the amount described in subparagraph
(C)(i)(V) for any State for each of fiscal years 1992 and 1993, the
Secretary shall use information available as of January 6, 1995.
`(ii) FOR FISCAL YEAR 1994- In determining the
amounts described in subparagraph (C)(i) for any State
for fiscal year 1994, the Secretary shall use
information available as of April 28, 1995.
`(iii) FOR FISCAL YEAR 1995-
`(I) In determining the amount described in subparagraph
(B)(ii)(II) for any State for fiscal year 1995, the Secretary shall
use the information which was reported by the States and estimates
made by the States with respect to emergency assistance
expenditures and was available as of August 11, 1995.
`(II) In determining the amounts described in subclauses (I)
through (III) of subparagraph (C)(i) for any State for fiscal year
1995, the Secretary shall use information available as of October
2, 1995.
`(III) In determining the amount described in subparagraph
(C)(i)(IV) for any State for fiscal year 1995, the Secretary shall
use information available as of February 28, 1996.
`(IV) In determining the amount described in subparagraph
(C)(i)(V) for any State for fiscal year 1995, the Secretary shall
use information available as of October 5, 1995.
`(E) APPROPRIATION- Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1996, 1997, 1998, 1999, 2000,
2001, and 2002 such sums as are necessary for grants under
this paragraph.
`(2) BONUS TO REWARD DECREASE IN ILLEGITIMACY-
`(A) IN GENERAL- Each eligible State shall be entitled to
receive from the Secretary a grant for each bonus year for
which the State demonstrates a net decrease in
out-of-wedlock births.
`(B) AMOUNT OF GRANT-
`(i) IF 5 ELIGIBLE STATES- If there are 5 eligible
States for a bonus year, the amount of the grant shall
be $20,000,000.
`(ii) IF FEWER THAN 5 ELIGIBLE STATES- If there are
fewer than 5 eligible States for a bonus year, the
amount of the grant shall be $25,000,000.
`(C) DEFINITIONS- As used in this paragraph:
`(i) ELIGIBLE STATE-
`(I) IN GENERAL- The term `eligible State' means a State that the
Secretary determines meets the following requirements:
`(aa) The State demonstrates that the number of out-of-wedlock
births that occurred in the State during the most recent 2-year
period for which such information is available decreased as
compared to the number of such births that occurred during the
previous 2-year period, and the magnitude of the decrease for the
State for the period is not exceeded by the magnitude of the
corresponding decrease for 5 or more other States for the period.
`(bb) The rate of induced pregnancy terminations in the State for
the fiscal year is less than the rate of induced pregnancy
terminations in the State for fiscal year 1995.
`(II) DISREGARD OF CHANGES IN DATA DUE TO CHANGED REPORTING
METHODS- In making the determination required by subclause (I), the
Secretary shall disregard--
`(aa) any difference between the number of out-of-wedlock births
that occurred in a State for a fiscal year and the number of
out-of-wedlock births that occurred in a State for fiscal year 1995
which is attributable to a change in State methods of reporting
data used to calculate the number of out-of-wedlock births; and
`(bb) any difference between the rate of induced pregnancy
terminations in a State for a fiscal year and such rate for fiscal
year 1995 which is attributable to a change in State methods of
reporting data used to calculate such rate.
`(ii) BONUS YEAR- The term `bonus year' means fiscal
years 1999, 2000, 2001, and 2002.
`(D) APPROPRIATION- Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1999 through 2002, such sums
as are necessary for grants under this paragraph.
`(3) SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN CERTAIN
STATES-
`(A) IN GENERAL- Each qualifying State shall, subject to
subparagraph (F), be entitled to receive from the Secretary--
`(i) for fiscal year 1998 a grant in an amount equal
to 2.5 percent of the total amount required to be paid
to the State under former section 403 (as in effect
during fiscal year 1994) for fiscal year 1994; and
`(ii) for each of fiscal years 1999, 2000, and 2001,
a grant in an amount equal to the sum of--
`(I) the amount (if any) required to be paid to the State under
this paragraph for the immediately preceding fiscal year; and
`(II) 2.5 percent of the sum of--
`(aa) the total amount required to be paid to the State under
former section 403 (as in effect during fiscal year 1994) for
fiscal year 1994; and
`(bb) the amount (if any) required to be paid to the State under
this paragraph for the fiscal year preceding the fiscal year for
which the grant is to be made.
`(B) PRESERVATION OF GRANT WITHOUT INCREASES FOR STATES
FAILING TO REMAIN QUALIFYING STATES- Each State that is not
a qualifying State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State for a prior
fiscal year shall, subject to subparagraph (F), be entitled
to receive from the Secretary for the specified fiscal
year, a grant in an amount equal to the amount required to
be paid to the State under this paragraph for the most
recent fiscal year for which the State was a qualifying
State.
`(C) QUALIFYING STATE-
`(i) IN GENERAL- For purposes of this paragraph, a
State is a qualifying State for a fiscal year if--
`(I) the level of welfare spending per poor person by the State
for the immediately preceding fiscal year is less than the national
average level of State welfare spending per poor person for such
preceding fiscal year; and
`(II) the population growth rate of the State (as determined by
the Bureau of the Census) for the most recent fiscal year for which
information is available exceeds the average population growth rate
for all States (as so determined) for such most recent fiscal year.
`(ii) STATE MUST QUALIFY IN FISCAL YEAR 1997-
Notwithstanding clause (i), a State shall not be a
qualifying State for any fiscal year after 1998 by
reason of clause (i) if the State is not a qualifying
State for fiscal year 1998 by reason of clause (i).
`(iii) CERTAIN STATES DEEMED QUALIFYING STATES- For
purposes of this paragraph, a State is deemed to be a
qualifying State for fiscal years 1998, 1999, 2000, and
2001 if--
`(I) the level of welfare spending per poor person by the State
for fiscal year 1994 is less than 35 percent of the national
average level of State welfare spending per poor person for fiscal
year 1994; or
`(II) the population of the State increased by more than 10
percent from April 1, 1990 to July 1, 1994, according to the
population estimates in publication CB94-204 of the Bureau of the
Census.
`(D) DEFINITIONS- As used in this paragraph:
`(i) LEVEL OF WELFARE SPENDING PER POOR PERSON- The
term `level of State welfare spending per poor person'
means, with respect to a State and a fiscal year--
`(I) the sum of--
`(aa) the total amount required to be paid to the State under
former section 403 (as in effect during fiscal year 1994) for
fiscal year 1994; and
`(bb) the amount (if any) paid to the State under this paragraph
for the immediately preceding fiscal year; divided by
`(II) the number of individuals, according to the 1990 decennial
census, who were residents of the State and whose income was below
the poverty line.
`(ii) NATIONAL AVERAGE LEVEL OF STATE WELFARE
SPENDING PER POOR PERSON- The term `national average
level of State welfare spending per poor person' means,
with respect to a fiscal year, an amount equal to--
`(I) the total amount required to be paid to the States under
former section 403 (as in effect during fiscal year 1994) for
fiscal year 1994; divided by
`(II) the number of individuals, according to the 1990 decennial
census, who were residents of any State and whose income was below
the poverty line.
`(iii) STATE- The term `State' means each of the 50
States of the United States and the District of Columbia.
`(E) APPROPRIATION- Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1998, 1999, 2000, and 2001
such sums as are necessary for grants under this paragraph,
in a total amount not to exceed $800,000,000.
`(F) GRANTS REDUCED PRO RATA IF INSUFFICIENT
APPROPRIATIONS- If the amount appropriated pursuant to this
paragraph for a fiscal year is less than the total amount
of payments otherwise required to be made under this
paragraph for the fiscal year, then the amount otherwise
payable to any State for the fiscal year under this
paragraph shall be reduced by a percentage equal to the
amount so appropriated divided by such total amount.
`(G) BUDGET SCORING- Notwithstanding section 257(b)(2) of
the Balanced Budget and Emergency Deficit Control Act of
1985, the baseline shall assume that no grant shall be made
under this paragraph after fiscal year 2001.
`(4) BONUS TO REWARD HIGH PERFORMANCE STATES-
`(A) IN GENERAL- The Secretary shall make a grant
pursuant to this paragraph to each State for each bonus
year for which the State is a high performing State.
`(B) AMOUNT OF GRANT-
`(i) IN GENERAL- Subject to clause (ii) of this
subparagraph, the Secretary shall determine the amount
of the grant payable under this paragraph to a high
performing State for a bonus year, which shall be based
on the score assigned to the State under subparagraph
(D)(i) for the fiscal year that immediately precedes
the bonus year.
`(ii) LIMITATION- The amount payable to a State under
this paragraph for a bonus year shall not exceed 5
percent of the State family assistance grant.
`(C) FORMULA FOR MEASURING STATE PERFORMANCE- Not later
than 1 year after the date of the enactment of the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996, the Secretary, in consultation with the National
Governors' Association and the American Public Welfare
Association, shall develop a formula for measuring State
performance in operating the State program funded under
this part so as to achieve the goals set forth in section
401(a).
`(D) SCORING OF STATE PERFORMANCE; SETTING OF PERFORMANCE
THRESHOLDS- For each bonus year, the Secretary shall--
`(i) use the formula developed under subparagraph (C)
to assign a score to each eligible State for the fiscal
year that immediately precedes the bonus year; and
`(ii) prescribe a performance threshold in such a
manner so as to ensure that--
`(I) the average annual total amount of grants to be made under
this paragraph for each bonus year equals $200,000,000; and
`(II) the total amount of grants to be made under this paragraph
for all bonus years equals $1,000,000,000.
`(E) DEFINITIONS- As used in this paragraph:
`(i) BONUS YEAR- The term `bonus year' means fiscal
years 1999, 2000, 2001, 2002, and 2003.
`(ii) HIGH PERFORMING STATE- The term `high
performing State' means, with respect 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
performance threshold prescribed under subparagraph
(D)(ii) for such preceding fiscal year.
`(F) APPROPRIATION- Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1999 through 2003
$1,000,000,000 for grants under this paragraph.
`(b) CONTINGENCY FUND-
`(1) ESTABLISHMENT- There is hereby established in the
Treasury of the United States a fund which shall be known as
the `Contingency Fund for State Welfare Programs' (in this
section referred to as the `Fund').
`(2) DEPOSITS INTO FUND- Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1997, 1998, 1999, 2000, and 2001
such sums as are necessary for payment to the Fund in a total
amount not to exceed $2,000,000,000.
`(3) GRANTS-
`(A) PROVISIONAL PAYMENTS- If an eligible State submits
to the Secretary a request for funds under this paragraph
during an eligible month, the Secretary shall, subject to
this paragraph, pay to the State, from amounts appropriated
pursuant to paragraph (2), an amount equal to the amount of
funds so requested.
`(B) PAYMENT PRIORITY- The Secretary shall make payments
under subparagraph (A) in the order in which the Secretary
receives requests for such payments.
`(C) LIMITATIONS-
`(i) MONTHLY PAYMENT TO A STATE- The total amount
paid to a single State under subparagraph (A) during a
month shall not exceed 1/12 of 20 percent of the
State family assistance grant.
`(ii) PAYMENTS TO ALL STATES- The total amount paid
to all States under subparagraph (A) during fiscal
years 1997 through 2001 shall not exceed the total
amount appropriated pursuant to paragraph (2).
`(4) ANNUAL RECONCILIATION- Notwithstanding paragraph (3), at
the end of each fiscal year, each State shall remit to the
Secretary an amount equal to the amount (if any) by which the
total amount paid to the State under paragraph (3) during the
fiscal year exceeds--
`(A) the Federal medical assistance percentage for the
State for the fiscal year (as defined in section 1905(b),
as in effect on September 30, 1995) of the amount (if any)
by which--
`(i) if the Secretary makes a payment to the State
under section 418(a)(2) in the fiscal year--
`(I) the expenditures under the State program funded under this
part for the fiscal year, excluding any amounts made available by
the Federal Government (except amounts paid to the State under
paragraph (3) during the fiscal year that have been expended by the
State) and any amounts expended by the State during the fiscal year
for child care; exceeds
`(II) historic State expenditures (as defined in section
409(a)(7)(B)(iii)), excluding the expenditures by the State for
child care under subsection (g) or (i) of section 402 (as in effect
during fiscal year 1994) for fiscal year 1994 minus any Federal
payment with respect to such child care expenditures; or
`(ii) if the Secretary does not make a payment to the
State under section 418(a)(2) in the fiscal year--
`(I) the expenditures under the State program funded under this
part for the fiscal year (excluding any amounts made available by
the Federal Government, except amounts paid to the State under
paragraph (3) during the fiscal year that have been expended by the
State); exceeds
`(II) historic State expenditures (as defined in section
409(a)(7)(B)(iii)); multiplied by
`(B) 1/12 times the number of months during the fiscal
year for which the Secretary makes a payment to the State
under this subsection.
`(5) ELIGIBLE MONTH- As used in paragraph (3)(A), the term
`eligible month' means, with respect to a State, a month in the
2-month period that begins with any month for which the State
is a needy State.
`(6) NEEDY STATE- For purposes of paragraph (5), a State is a
needy State for a month if--
`(A) the average rate of--
`(i) total unemployment in such State (seasonally
adjusted) for the period consisting of the most recent
3 months for which data for all States are published
equals or exceeds 6.5 percent; and
`(ii) total unemployment in such State (seasonally
adjusted) for the 3-month period equals or exceeds 110
percent of such average rate for either (or both) of
the corresponding 3-month periods ending in the 2
preceding calendar years; or
`(B) as determined by the Secretary of Agriculture (in
the discretion of the Secretary of Agriculture), the
monthly average number of individuals (as of the last day
of each month) participating in the food stamp program in
the State in the then most recently concluded 3-month
period for which data are available exceeds by not less
than 10 percent the lesser of--
`(i) the monthly average number of individuals (as of
the last day of each month) in the State that would
have participated in the food stamp program in the
corresponding 3-month period in fiscal year 1994 if the
amendments made by titles IV and VIII of the Personal
Responsibility and Work Opportunity Reconciliation Act
of 1996 had been in effect throughout fiscal year 1994;
or
`(ii) the monthly average number of individuals (as
of the last day of each month) in the State that would
have participated in the food stamp program in the
corresponding 3-month period in fiscal year 1995 if the
amendments made by titles IV and VIII of the Personal
Responsibility and Work Opportunity Reconciliation Act
of 1996 had been in effect throughout fiscal year 1995.
`(7) OTHER TERMS DEFINED- As used in this subsection:
`(A) STATE- The term `State' means each of the 50 States
of the United States and the District of Columbia.
`(B) SECRETARY- The term `Secretary' means the Secretary
of the Treasury.
`(8) ANNUAL REPORTS- The Secretary shall annually report to
the Congress on the status of the Fund.
`SEC. 404. USE OF GRANTS.
`(a) GENERAL RULES- Subject to this part, a State to which a
grant is made under section 403 may use the grant--
`(1) in any manner that is reasonably calculated to
accomplish the purpose of this part, including to provide low
income households with assistance in meeting home heating and
cooling costs; or
`(2) in any manner that the State was authorized to use
amounts received under part A or F, as such parts were in
effect on September 30, 1995.
`(b) LIMITATION ON USE OF GRANT FOR ADMINISTRATIVE PURPOSES-
`(1) LIMITATION- A State to which a grant is made under
section 403 shall not expend more than 15 percent of the grant
for administrative purposes.
`(2) EXCEPTION- Paragraph (1) shall not apply to the use of a
grant for information technology and computerization needed for
tracking or monitoring required by or under this part.
`(c) AUTHORITY TO TREAT INTERSTATE IMMIGRANTS UNDER RULES OF
FORMER STATE- A State operating a program funded under this part
may apply to a family the rules (including benefit amounts) of the
program funded under this part of another State if the family has
moved to the State from the other State and has resided in the
State for less than 12 months.
`(d) AUTHORITY TO USE PORTION OF GRANT FOR OTHER PURPOSES-
`(1) IN GENERAL- A State may use not more than 30 percent of
the amount of any grant made to the State under section 403(a)
for a fiscal year to carry out a State program pursuant to any
or all of the following provisions of law:
`(A) Title XX of this Act.
`(B) The Child Care and Development Block Grant Act of
1990.
`(2) LIMITATION ON AMOUNT TRANSFERABLE TO TITLE XX PROGRAMS-
Notwithstanding paragraph (1), not more than 1/3 of the total
amount paid to a State under this part for a fiscal year that
is used to carry out State programs pursuant to provisions of
law specified in paragraph (1) may be used to carry out State
programs pursuant to title XX.
`(3) APPLICABLE RULES-
`(A) IN GENERAL- Except as provided in subparagraph (B)
of this paragraph, any amount paid to a State under this
part that is used to carry out a State program pursuant to
a provision of law specified in paragraph (1) shall not be
subject to the requirements of this part, but shall be
subject to the requirements that apply to Federal funds
provided directly under the provision of law to carry out
the program, and the expenditure of any amount so used
shall not be considered to be an expenditure under this part.
`(B) EXCEPTION RELATING TO TITLE XX PROGRAMS- All amounts
paid to a State under this part that are used to carry out
State programs pursuant to title XX shall be used only for
programs and services to children or their families whose
income is less than 200 percent of the income official
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section
673(2) of the Omnibus Budget Reconciliation Act of 1981)
applicable to a family of the size involved.
`(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS FOR ASSISTANCE- A State
may reserve amounts paid to the State under this part for any
fiscal year for the purpose of providing, without fiscal year
limitation, assistance under the State program funded under this
part.
`(f) AUTHORITY TO OPERATE EMPLOYMENT PLACEMENT PROGRAM- A State
to which a grant is made under section 403 may use the grant to
make payments (or provide job placement vouchers) to State-approved
public and private job placement agencies that provide employment
placement services to individuals who receive assistance under the
State program funded under this part.
`(g) IMPLEMENTATION OF ELECTRONIC BENEFIT TRANSFER SYSTEM- A
State to which a grant is made under section 403 is encouraged to
implement an electronic benefit transfer system for providing
assistance under the State program funded under this part, and may
use the grant for such purpose.
`(h) USE OF FUNDS FOR INDIVIDUAL DEVELOPMENT ACCOUNTS-
`(1) IN GENERAL- A State to which a grant is made under
section 403 may use the grant to carry out a program to fund
individual development accounts (as defined in paragraph (2))
established by individuals eligible for assistance under the
State program funded under this part.
`(2) INDIVIDUAL DEVELOPMENT ACCOUNTS-
`(A) ESTABLISHMENT- Under a State program carried out
under paragraph (1), an individual development account may
be established by or on behalf of an individual eligible
for assistance under the State program operated under this
part for the purpose of enabling the individual to
accumulate funds for a qualified purpose described in
subparagraph (B).
`(B) QUALIFIED PURPOSE- A qualified purpose described in
this subparagraph is 1 or more of the following, as
provided by the qualified entity providing assistance to
the individual under this subsection:
`(i) POSTSECONDARY EDUCATIONAL EXPENSES-
Postsecondary educational expenses paid from an
individual development account directly to an eligible
educational institution.
`(ii) FIRST HOME PURCHASE- Qualified acquisition
costs with respect to a qualified principal residence
for a qualified first-time homebuyer, if paid from an
individual development account directly to the persons
to whom the amounts are due.
`(iii) BUSINESS CAPITALIZATION- Amounts paid from an
individual development account directly to a business
capitalization account which is established in a
federally insured financial institution and is
restricted to use solely for qualified business
capitalization expenses.
`(C) CONTRIBUTIONS TO BE FROM EARNED INCOME- An
individual may only contribute to an individual development
account such amounts as are derived from earned income, as
defined in section 911(d)(2) of the Internal Revenue Code
of 1986.
`(D) WITHDRAWAL OF FUNDS- The Secretary shall establish
such regulations as may be necessary to ensure that funds
held in an individual development account are not withdrawn
except for 1 or more of the qualified purposes described in
subparagraph (B).
`(3) REQUIREMENTS-
`(A) IN GENERAL- An individual development account
established under this subsection shall be a trust created
or organized in the United States and funded through
periodic contributions by the establishing individual and
matched by or through a qualified entity for a qualified
purpose (as described in paragraph (2)(B)).
`(B) QUALIFIED ENTITY- As used in this subsection, the
term `qualified entity' means--
`(i) a not-for-profit organization described in
section 501(c)(3) of the Internal Revenue Code of 1986
and exempt from taxation under section 501(a) of such
Code; or
`(ii) a State or local government agency acting in
cooperation with an organization described in clause (i).
`(4) NO REDUCTION IN BENEFITS- Notwithstanding any other
provision of Federal law (other than the Internal Revenue Code
of 1986) that requires consideration of 1 or more financial
circumstances of an individual, for the purpose of determining
eligibility to receive, or the amount of, any assistance or
benefit authorized by such law to be provided to or for the
benefit of such individual, funds (including interest accruing)
in an individual development account under this subsection
shall be disregarded for such purpose with respect to any
period during which such individual maintains or makes
contributions into such an account.
`(5) DEFINITIONS- As used in this subsection--
`(A) ELIGIBLE EDUCATIONAL INSTITUTION- The term `eligible
educational institution' means the following:
`(i) An institution described in section 481(a)(1) or
1201(a) of the Higher Education Act of 1965 (20 U.S.C.
1088(a)(1) or 1141(a)), as such sections are in effect
on the date of the enactment of this subsection.
`(ii) An area vocational education school (as defined
in subparagraph (C) or (D) of section 521(4) of the
Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2471(4))) which is in any
State (as defined in section 521(33) of such Act), as
such sections are in effect on the date of the
enactment of this subsection.
`(B) POST-SECONDARY EDUCATIONAL EXPENSES- The term
`post-secondary educational expenses' means--
`(i) tuition and fees required for the enrollment or
attendance of a student at an eligible educational
institution, and
`(ii) fees, books, supplies, and equipment required
for courses of instruction at an eligible educational
institution.
`(C) QUALIFIED ACQUISITION COSTS- The term `qualified
acquisition costs' means the costs of acquiring,
constructing, or reconstructing a residence. The term
includes any usual or reasonable settlement, financing, or
other closing costs.
`(D) QUALIFIED BUSINESS- The term `qualified business'
means any business that does not contravene any law or
public policy (as determined by the Secretary).
`(E) QUALIFIED BUSINESS CAPITALIZATION EXPENSES- The term
`qualified business capitalization expenses' means
qualified expenditures for the capitalization of a
qualified business pursuant to a qualified plan.
`(F) QUALIFIED EXPENDITURES- The term `qualified
expenditures' means expenditures included in a qualified
plan, including capital, plant, equipment, working capital,
and inventory expenses.
`(G) QUALIFIED FIRST-TIME HOMEBUYER-
`(i) IN GENERAL- The term `qualified first-time
homebuyer' means a taxpayer (and, if married, the
taxpayer's spouse) who has no present ownership
interest in a principal residence during the 3-year
period ending on the date of acquisition of the
principal residence to which this subsection applies.
`(ii) DATE OF ACQUISITION- The term `date of
acquisition' means the date on which a binding contract
to acquire, construct, or reconstruct the principal
residence to which this subparagraph applies is entered
into.
`(H) QUALIFIED PLAN- The term `qualified plan' means a
business plan which--
`(i) is approved by a financial institution, or by a
nonprofit loan fund having demonstrated fiduciary
integrity,
`(ii) includes a description of services or goods to
be sold, a marketing plan, and projected financial
statements, and
`(iii) may require the eligible individual to obtain
the assistance of an experienced entrepreneurial advisor.
`(I) QUALIFIED PRINCIPAL RESIDENCE- The term `qualified
principal residence' means a principal residence (within
the meaning of section 1034 of the Internal Revenue Code of
1986), the qualified acquisition costs of which do not
exceed 100 percent of the average area purchase price
applicable to such residence (determined in accordance with
paragraphs (2) and (3) of section 143(e) of such Code).
`(i) SANCTION WELFARE RECIPIENTS FOR FAILING TO ENSURE THAT MINOR
DEPENDENT CHILDREN ATTEND SCHOOL- A State to which a grant is made
under section 403 shall not be prohibited from sanctioning a family
that includes an adult who has received assistance under any State
program funded under this part attributable to funds provided by
the Federal Government or under the food stamp program, as defined
in section 3(h) of the Food Stamp Act of 1977, if such adult fails
to ensure that the minor dependent children of such adult attend
school as required by the law of the State in which the minor
children reside.
`(j) REQUIREMENT FOR HIGH SCHOOL DIPLOMA OR EQUIVALENT- A State
to which a grant is made under section 403 shall not be prohibited
from sanctioning a family that includes an adult who is older than
age 20 and younger than age 51 and who has received assistance
under any State program funded under this part attributable to
funds provided by the Federal Government or under the food stamp
program, as defined in section 3(h) of the Food Stamp Act of 1977,
if such adult does not have, or is not working toward attaining, a
secondary school diploma or its recognized equivalent unless such
adult has been determined in the judgment of medical, psychiatric,
or other appropriate professionals to lack the requisite capacity
to complete successfully a course of study that would lead to a
secondary school diploma or its recognized equivalent.
`SEC. 405. ADMINISTRATIVE PROVISIONS.
`(a) QUARTERLY- The Secretary shall pay each grant payable to a
State under section 403 in quarterly installments, subject to this
section.
`(b) NOTIFICATION- Not later than 3 months before the payment of
any such quarterly installment to a State, the Secretary shall
notify the State of the amount of any reduction determined under
section 412(a)(1)(B) with respect to the State.
`(c) COMPUTATION AND CERTIFICATION OF PAYMENTS TO STATES-
`(1) COMPUTATION- The Secretary shall estimate the amount to
be paid to each eligible State for each quarter under this
part, such estimate to be based on a report filed by the State
containing an estimate by the State of the total sum to be
expended by the State in the quarter under the State program
funded under this part and such other information as the
Secretary may find necessary.
`(2) CERTIFICATION- The Secretary of Health and Human
Services shall certify to the Secretary of the Treasury the
amount estimated under paragraph (1) with respect to a State,
reduced or increased to the extent of any overpayment or
underpayment which the Secretary of Health and Human Services
determines was made under this part to the State for any prior
quarter and with respect to which adjustment has not been made
under this paragraph.
`(d) PAYMENT METHOD- Upon receipt of a certification under
subsection (c)(2) with respect to a State, the Secretary of the
Treasury shall, through the Fiscal Service of the Department of the
Treasury and before audit or settlement by the General Accounting
Office, pay to the State, at the time or times fixed by the
Secretary of Health and Human Services, the amount so certified.
`SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.
`(a) LOAN AUTHORITY-
`(1) IN GENERAL- The Secretary shall make loans to any
loan-eligible State, for a period to maturity of not more than
3 years.
`(2) LOAN-ELIGIBLE STATE- As used in paragraph (1), the term
`loan-eligible State' means a State against which a penalty has
not been imposed under section 409(a)(1).
`(b) RATE OF INTEREST- The Secretary shall charge and collect
interest on any loan made under this section at a rate equal to the
current average market yield on outstanding marketable obligations
of the United States with remaining periods to maturity comparable
to the period to maturity of the loan.
`(c) USE OF LOAN- A State shall use a loan made to the State
under this section only for any purpose for which grant amounts
received by the State under section 403(a) may be used, including--
`(1) welfare anti-fraud activities; and
`(2) the provision of assistance under the State program to
Indian families that have moved from the service area of an
Indian tribe with a tribal family assistance plan approved
under section 412.
`(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO A STATE- The
cumulative dollar amount of all loans made to a State under this
section during fiscal years 1997 through 2002 shall not exceed 10
percent of the State family assistance grant.
`(e) LIMITATION ON TOTAL AMOUNT OF OUTSTANDING LOANS- The total
dollar amount of loans outstanding under this section may not
exceed $1,700,000,000.
`(f) APPROPRIATION- Out of any money in the Treasury of the
United States not otherwise appropriated, there are appropriated
such sums as may be necessary for the cost of loans under this
section.
`SEC. 407. MANDATORY WORK REQUIREMENTS.
`(a) PARTICIPATION RATE REQUIREMENTS-
`(1) ALL FAMILIES- A State to which a grant is made under
section 403 for a fiscal year shall achieve the minimum
participation rate specified in the following table for the
fiscal year with respect to all families receiving assistance
under the State program funded under this part:
-- [Bold->] The minimum [<-Bold]
-- [Bold->] participation [<-Bold]
[Bold->] `If the fiscal year is: [<-Bold]
-- [Bold->] rate is: [<-Bold]
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:
-- [Bold->] The minimum [<-Bold]
-- [Bold->] participation [<-Bold]
[Bold->] `If the fiscal year is: [<-Bold]
-- [Bold->] rate is: [<-Bold]
1997
--75
1998
--75
1999 or thereafter
--90.
`(b) CALCULATION OF PARTICIPATION RATES-
`(1) ALL FAMILIES-
`(A) AVERAGE MONTHLY RATE- For purposes of subsection
(a)(1), the participation rate for all families of a State
for a fiscal year is the average of the participation rates
for all families of the State for each month in the fiscal
year.
`(B) MONTHLY PARTICIPATION RATES- The participation rate
of a State for all families of the State for a month,
expressed as a percentage, is--
`(i) the number of families receiving assistance
under the State program funded under this part that
include an adult or a minor child head of household who
is engaged in work for the month; divided by
`(ii) the amount by which--
`(I) the number of families receiving such assistance during the
month that include an adult or a minor child head of household
receiving such assistance; exceeds
`(II) the number of families receiving such assistance that are
subject in such month to a penalty described in subsection (e)(1)
but have not been subject to such penalty for more than 3 months
within the preceding 12-month period (whether or not consecutive).
`(2) 2-PARENT FAMILIES-
`(A) AVERAGE MONTHLY RATE- For purposes of subsection
(a)(2), the participation rate for 2-parent families of a
State for a fiscal year is the average of the participation
rates for 2-parent families of the State for each month in
the fiscal year.
`(B) MONTHLY PARTICIPATION RATES- The participation rate
of a State for 2-parent families of the State for a month
shall be calculated by use of the formula set forth in
paragraph (1)(B), except that in the formula the term
`number of 2-parent families' shall be substituted for the
term `number of families' each place such latter term
appears.
`(3) PRO RATA REDUCTION OF PARTICIPATION RATE DUE TO CASELOAD
REDUCTIONS NOT REQUIRED BY FEDERAL LAW-
`(A) IN GENERAL- The Secretary shall prescribe
regulations for reducing the minimum participation rate
otherwise required by this section for a fiscal year by the
number of percentage points equal to the number of
percentage points (if any) by which--
`(i) the average monthly number of families receiving
assistance during the immediately preceding fiscal year
under the State program funded under this part is less
than
`(ii) the average monthly number of families that
received aid under the State plan approved under part A
(as in effect on September 30, 1995) during fiscal year
1995.
The minimum participation rate shall not be reduced to the
extent that the Secretary determines that the reduction in
the number of families receiving such assistance is
required by Federal law.
`(B) ELIGIBILITY CHANGES NOT COUNTED- The regulations
required by subparagraph (A) shall not take into account
families that are diverted from a State program funded
under this part as a result of differences in eligibility
criteria under a State program funded under this part and
eligibility criteria under the State program operated under
the State plan approved under part A (as such plan and such
part were in effect on September 30, 1995). Such
regulations shall place the burden on the Secretary to
prove that such families were diverted as a direct result
of differences in such eligibility criteria.
`(4) STATE OPTION TO INCLUDE INDIVIDUALS RECEIVING ASSISTANCE
UNDER A TRIBAL FAMILY ASSISTANCE PLAN- For purposes of
paragraphs (1)(B) and (2)(B), a State may, at its option,
include families in the State that are receiving assistance
under a tribal family assistance plan approved under section 412.
`(5) STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMPTIONS-
For any fiscal year, a State may, at its option, not require an
individual who is a single custodial parent caring for a child
who has not attained 12 months of age to engage in work, and
may disregard such an individual in determining the
participation rates under subsection (a) for not more than 12
months.
`(c) ENGAGED IN WORK-
`(1) GENERAL RULES-
`(A) ALL FAMILIES- For purposes of subsection
(b)(1)(B)(i), a recipient is engaged in work for a month in
a fiscal year if the recipient is participating in work
activities for at least the minimum average number of hours
per week specified in the following table during the month,
not fewer than 20 hours per week of which are attributable
to an activity described in paragraph (1), (2), (3), (4),
(5), (6), (7), (8), or (12) of subsection (d), subject to
this subsection:
[Bold->] [<-Bold]
-- [Bold->] The minimum [<-Bold]
[Bold->] `If the month is [<-Bold]
-- [Bold->] average number of [<-Bold]
[Bold->] in fiscal year: [<-Bold]
-- [Bold->] hours per week is: [<-Bold]
1997
--20
1998
--20
1999
--25
2000 or thereafter
--30.
`(B) 2-PARENT FAMILIES- For purposes of subsection
(b)(2)(B), an individual is engaged in work for a month in
a fiscal year if--
`(i) the individual is making progress in work
activities for at least 35 hours per week during the
month, not fewer than 30 hours per week of which are
attributable to an activity described in paragraph (1),
(2), (3), (4), (5), (6), (7), (8), or (12) of
subsection (d), subject to this subsection; and
`(ii) if the family of the individual receives
federally-funded child care assistance and an adult in
the family is not disabled or caring for a severely
disabled child, the individual's spouse is making
progress in work activities during the month, not fewer
than 20 hours per week of which are attributable to an
activity described in paragraph (1), (2), (3), (4),
(5), or (7) of subsection (d).
`(2) LIMITATIONS AND SPECIAL RULES-
`(A) NUMBER OF WEEKS FOR WHICH JOB SEARCH COUNTS AS WORK-
`(i) LIMITATION- Notwithstanding paragraph (1) of
this subsection, an individual shall not be considered
to be engaged in work by virtue of participation in an
activity described in subsection (d)(6) of a State
program funded under this part, after the individual
has participated in such an activity for 6 weeks (or,
if the unemployment rate of the State is at least 50
percent greater than the unemployment rate of the
United States, 12 weeks), or if the participation is
for a week that immediately follows 4 consecutive weeks
of such participation.
`(ii) LIMITED AUTHORITY TO COUNT LESS THAN FULL WEEK
OF PARTICIPATION- For purposes of clause (i) of this
subparagraph, on not more than 1 occasion per
individual, the State shall consider participation of
the individual in an activity described in subsection
(d)(6) for 3 or 4 days during a week as a week of
participation in the activity by the individual.
`(B) SINGLE PARENT WITH CHILD UNDER AGE 6 DEEMED TO BE
MEETING WORK PARTICIPATION REQUIREMENTS IF PARENT IS
ENGAGED IN WORK FOR 20 HOURS PER WEEK- For purposes of
determining monthly participation rates under subsection
(b)(1)(B)(i), a recipient in a 1-parent family who is the
parent of a child who has not attained 6 years of age is
deemed to be engaged in work for a month if the recipient
is engaged in work for an average of at least 20 hours per
week during the month.
`(C) TEEN HEAD OF HOUSEHOLD WHO MAINTAINS SATISFACTORY
SCHOOL ATTENDANCE DEEMED TO BE MEETING WORK PARTICIPATION
REQUIREMENTS- For purposes of determining monthly
participation rates under 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 in vocational educational
training or deemed to be engaged in work by reason of
subparagraph (C) of this paragraph.
`(d) WORK ACTIVITIES DEFINED- As used in this section, the term
`work activities' means--
`(1) unsubsidized employment;
`(2) subsidized private sector employment;
`(3) subsidized public sector employment;
`(4) work experience (including work associated with the
refurbishing of publicly assisted housing) if sufficient
private sector employment is not available;
`(5) on-the-job training;
`(6) job search and job readiness assistance;
`(7) community service programs;
`(8) vocational educational training (not to exceed 12 months
with respect to any individual);
`(9) job skills training directly related to employment;
`(10) education directly related to employment, in the case
of a recipient who has not received a high school diploma or a
certificate of high school equivalency;
`(11) satisfactory attendance at secondary school or in a
course of study leading to a certificate of general
equivalence, in the case of a recipient who has not completed
secondary school or received such a certificate; and
`(12) the provision of child care services to an individual
who is participating in a community service program.
`(e) PENALTIES AGAINST INDIVIDUALS-
`(1) IN GENERAL- Except as provided in paragraph (2), if an
individual in a family receiving assistance under the State
program funded under this part refuses to engage in work
required in accordance with this section, the State shall--
`(A) reduce the amount of assistance otherwise payable to
the family pro rata (or more, at the option of the State)
with respect to any period during a month in which the
individual so refuses; or
`(B) terminate such assistance,
subject to such good cause and other exceptions as the State
may establish.
`(2) EXCEPTION- Notwithstanding paragraph (1), a State may
not reduce or terminate assistance under the State program
funded under this part based on a refusal of an individual to
work if the individual is a single custodial parent caring for
a child who has not attained 6 years of age, and the individual
proves that the individual has a demonstrated inability (as
determined by the State) to obtain needed child care, for 1 or
more of the following reasons:
`(A) Unavailability of appropriate child care within a
reasonable distance from the individual's home or work site.
`(B) Unavailability or unsuitability of informal child
care by a relative or under other arrangements.
`(C) Unavailability of appropriate and affordable formal
child care arrangements.
`(f) NONDISPLACEMENT IN WORK ACTIVITIES-
`(1) IN GENERAL- Subject to paragraph (2), an adult in a
family receiving assistance under a State program funded under
this part attributable to funds provided by the Federal
Government may fill a vacant employment position in order to
engage in a work activity described in subsection (d).
`(2) NO FILLING OF CERTAIN VACANCIES- No adult in a work
activity described in subsection (d) which is funded, in whole
or in part, by funds provided by the Federal Government shall
be employed or assigned--
`(A) when any other individual is on layoff from the same
or any substantially equivalent job; or
`(B) if the employer has terminated the employment of any
regular employee or otherwise caused an involuntary
reduction of its workforce in order to fill the vacancy so
created with an adult described in paragraph (1).
`(3) GRIEVANCE PROCEDURE- A State with a program funded under
this part shall establish and maintain a grievance procedure
for resolving complaints of alleged violations of paragraph (2).
`(4) NO PREEMPTION- Nothing in this subsection shall preempt
or supersede any provision of State or local law that provides
greater protection for employees from displacement.
`(g) SENSE OF THE CONGRESS- It is the sense of the Congress that
in complying with this section, each State that operates a program
funded under this part is encouraged to assign the highest priority
to requiring adults in 2-parent families and adults in
single-parent families that include older preschool or school-age
children to be engaged in work activities.
`(h) SENSE OF THE CONGRESS THAT STATES SHOULD IMPOSE CERTAIN
REQUIREMENTS ON NONCUSTODIAL, NONSUPPORTING MINOR PARENTS- It is
the sense of the Congress that the States should require
noncustodial, nonsupporting parents who have not attained 18 years
of age to fulfill community work obligations and attend appropriate
parenting or money management classes after school.
`(i) REVIEW OF IMPLEMENTATION OF STATE WORK PROGRAMS- During
fiscal year 1999, the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate shall
hold hearings and engage in other appropriate activities to review
the implementation of this section by the States, and shall invite
the Governors of the States to testify before them regarding such
implementation. Based on such hearings, such Committees may
introduce such legislation as may be appropriate to remedy any
problems with the State programs operated pursuant to this section.
`SEC. 408. PROHIBITIONS; REQUIREMENTS.
`(a) IN GENERAL-
`(1) NO ASSISTANCE FOR FAMILIES WITHOUT A MINOR CHILD- A
State to which a grant is made under section 403 shall not use
any part of the grant to provide assistance to a family--
`(A) unless the family includes--
`(i) a minor child who resides with a custodial
parent or other adult caretaker relative of the child; or
`(ii) a pregnant individual; and
`(B) if the family includes an adult who has received
assistance under any State program funded under this part
attributable to funds provided by the Federal Government,
for 60 months (whether or not consecutive) after the date
the State program funded under this part commences (unless
an exception described in subparagraph (B), (C), or (D) of
paragraph (7) applies).
`(2) REDUCTION OR ELIMINATION OF ASSISTANCE FOR
NONCOOPERATION IN ESTABLISHING PATERNITY OR OBTAINING CHILD
SUPPORT- If the agency responsible for administering the State
plan approved under part D determines that an individual is not
cooperating with the State in establishing paternity or in
establishing, modifying, or enforcing a support order with
respect to a child of the individual, and the individual does
not qualify for any good cause or other exception established
by the State pursuant to section 454(29), then the State--
`(A) shall deduct from the assistance that would
otherwise be provided to the family of the individual under
the State program funded under this part an amount equal to
not less than 25 percent of the amount of such assistance;
and
`(B) may deny the family any assistance under the State
program.
`(3) NO ASSISTANCE FOR FAMILIES NOT ASSIGNING CERTAIN SUPPORT
RIGHTS TO THE STATE-
`(A) IN GENERAL- A State to which a grant is made under
section 403 shall require, as a condition of providing
assistance to a family under the State program funded under
this part, that a member of the family assign to the State
any rights the family member may have (on behalf of the
family member or of any other person for whom the family
member has applied for or is receiving such assistance) to
support from any other person, not exceeding the total
amount of assistance so provided to the family, which
accrue (or have accrued) before the date the family leaves
the program, which assignment, on and after the date the
family leaves the program, shall not apply with respect to
any support (other than support collected pursuant to
section 464) which accrued before the family received such
assistance and which the State has not collected by--
`(i) September 30, 2000, if the assignment is
executed on or after October 1, 1997, and before
October 1, 2000; or
`(ii) the date the family leaves the program, if the
assignment is executed on or after October 1, 2000.
`(B) LIMITATION- A State to which a grant is made under
section 403 shall not require, as a condition of providing
assistance to any family under the State program funded
under this part, that a member of the family assign to the
State any rights to support described in subparagraph (A)
which accrue after the date the family leaves the program.
`(4) NO ASSISTANCE FOR TEENAGE PARENTS WHO DO NOT ATTEND HIGH
SCHOOL OR OTHER EQUIVALENT TRAINING PROGRAM- A State to which a
grant is made under section 403 shall not use any part of the
grant to provide assistance to an individual who has not
attained 18 years of age, is not married, has a minor child at
least 12 weeks of age in his or her care, and has not
successfully completed a high-school education (or its
equivalent), if the individual does not participate in--
`(A) educational activities directed toward the
attainment of a high school diploma or its equivalent; or
`(B) an alternative educational or training program that
has been approved by the State.
`(5) NO ASSISTANCE FOR TEENAGE PARENTS NOT LIVING IN
ADULT-SUPERVISED SETTINGS-
`(A) IN GENERAL-
`(i) REQUIREMENT- Except as provided in subparagraph
(B), a State to which a grant is made under section 403
shall not use any part of the grant to provide
assistance to an individual described in clause (ii) of
this subparagraph if the individual and the minor child
referred to in clause (ii)(II) do not reside in a place
of residence maintained by a parent, legal guardian, or
other adult relative of the individual as such
parent's, guardian's, or adult relative's own home.
`(ii) INDIVIDUAL DESCRIBED- For purposes of clause
(i), an individual described in this clause is an
individual who--
`(I) has not attained 18 years of age; and
`(II) is not married, and has a minor child in his or her care.
`(B) EXCEPTION-
`(i) PROVISION OF, OR ASSISTANCE IN LOCATING,
ADULT-SUPERVISED LIVING ARRANGEMENT- In the case of an
individual who is described in clause (ii), the State
agency referred to in section 402(a)(4) shall provide,
or assist the individual in locating, a second chance
home, maternity home, or other appropriate
adult-supervised supportive living arrangement, taking
into consideration the needs and concerns of the
individual, unless the State agency determines that the
individual's current living arrangement is appropriate,
and thereafter shall require that the individual and
the minor child referred to in subparagraph (A)(ii)(II)
reside in such living arrangement as a condition of the
continued receipt of assistance under the State program
funded under this part attributable to funds provided
by the Federal Government (or in an alternative
appropriate arrangement, should circumstances change
and the current arrangement cease to be appropriate).
`(ii) INDIVIDUAL DESCRIBED- For purposes of clause
(i), an individual is described in this clause if the
individual is described in subparagraph (A)(ii), and--
`(I) the individual has no parent, legal guardian, or other
appropriate adult relative described in subclause (II) of his or
her own who is living or whose whereabouts are known;
`(II) no living parent, legal guardian, or other appropriate
adult relative, who would otherwise meet applicable State criteria
to act as the individual's legal guardian, of such individual
allows the individual to live in the home of such parent, guardian,
or relative;
`(III) the State agency determines that--
`(aa) the individual or the minor child referred to in
subparagraph (A)(ii)(II) is being or has been subjected to serious
physical or emotional harm, sexual abuse, or exploitation in the
residence of the individual's own parent or legal guardian; or
`(bb) substantial evidence exists of an act or failure to act
that presents an imminent or serious harm if the individual and the
minor child lived in the same residence with the individual's own
parent or legal guardian; or
`(IV) the State agency otherwise determines that it is in the
best interest of the minor child to waive the requirement of
subparagraph (A) with respect to the individual or the minor child.
`(iii) SECOND-CHANCE HOME- For purposes of this
subparagraph, the term `second-chance home' means an
entity that provides individuals described in clause
(ii) with a supportive and supervised living
arrangement in which such individuals are required to
learn parenting skills, including child development,
family budgeting, health and nutrition, and other
skills to promote their long-term economic independence
and the well-being of their children.
`(6) NO MEDICAL SERVICES-
`(A) IN GENERAL- A State to which a grant is made under
section 403 shall not use any part of the grant to provide
medical services.
`(B) EXCEPTION FOR PREPREGNANCY FAMILY PLANNING SERVICES-
As used in subparagraph (A), the term `medical services'
does not include prepregnancy family planning services.
`(7) NO ASSISTANCE FOR MORE THAN 5 YEARS-
`(A) IN GENERAL- A State to which a grant is made under
section 403 shall not use any part of the grant to provide
assistance to a family that includes an adult who has
received assistance under any State program funded under
this part attributable to funds provided by the Federal
Government, for 60 months (whether or not consecutive)
after the date the State program funded under this part
commences, subject to this paragraph.
`(B) MINOR CHILD EXCEPTION- In determining the number of
months for which an individual who is a parent or pregnant
has received assistance under the State program funded
under this part, the State shall disregard any month for
which such assistance was provided with respect to the
individual and during which the individual was--
`(i) a minor child; and
`(ii) not the head of a household or married to the
head of a household.
`(C) HARDSHIP EXCEPTION-
`(i) IN GENERAL- The State may exempt a family from
the application of subparagraph (A) by reason of
hardship or if the family includes an individual who
has been battered or subjected to extreme cruelty.
`(ii) LIMITATION- The number of families with respect
to which an exemption made by a State under clause (i)
is in effect for a fiscal year shall not exceed 20
percent of the average monthly number of families to
which assistance is provided under the State program
funded under this part.
`(iii) BATTERED OR SUBJECT TO EXTREME CRUELTY
DEFINED- For purposes of clause (i), an individual has
been battered or subjected to extreme cruelty if the
individual has been subjected to--
`(I) physical acts that resulted in, or threatened to result in,
physical injury to the individual;
`(II) sexual abuse;
`(III) sexual activity involving a dependent child;
`(IV) being forced as the caretaker relative of a dependent child
to engage in nonconsensual sexual acts or activities;
`(V) threats of, or attempts at, physical or sexual abuse;
`(VI) mental abuse; or
`(VII) neglect or deprivation of medical care.
`(D) DISREGARD OF MONTHS OF ASSISTANCE RECEIVED BY ADULT
WHILE LIVING ON AN INDIAN RESERVATION OR IN AN ALASKAN
NATIVE VILLAGE WITH 50 PERCENT UNEMPLOYMENT- In determining
the number of months for which an adult has received
assistance under the State program funded under this part,
the State shall disregard any month during which the adult
lived on an Indian reservation or in an Alaskan Native
village if, during the month--
`(i) at least 1,000 individuals were living on the
reservation or in the village ; and
`(ii) at least 50 percent of the adults living on the
reservation or in the village were unemployed.
`(E) RULE OF INTERPRETATION- Subparagraph (A) shall not
be interpreted to require any State to provide assistance
to any individual for any period of time under the State
program funded under this part.
`(F) RULE OF INTERPRETATION- This part shall not be
interpreted to prohibit any State from expending State
funds not originating with the Federal Government on
benefits for children or families that have become
ineligible for assistance under the State program funded
under this part by reason of subparagraph (A).
`(8) DENIAL OF ASSISTANCE FOR 10 YEARS TO A PERSON FOUND TO
HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE IN ORDER TO OBTAIN
ASSISTANCE IN 2 OR MORE STATES- A State to which a grant is
made under section 403 shall not use any part of the grant to
provide cash assistance to an individual during the 10-year
period that begins on the date the individual is convicted in
Federal or State court of having made a fraudulent statement or
representation with respect to the place of residence of the
individual in order to receive assistance simultaneously from 2
or more States under programs that are funded under this title,
title XIX, or the Food Stamp Act of 1977, or benefits in 2 or
more States under the supplemental security income program
under title XVI. The preceding sentence shall not apply with
respect to a conviction of an individual, for any month
beginning after the President of the United States grants a
pardon with respect to the conduct which was the subject of the
conviction.
`(9) DENIAL OF ASSISTANCE FOR FUGITIVE FELONS AND PROBATION
AND PAROLE VIOLATORS-
`(A) IN GENERAL- A State to which a grant is made under
section 403 shall not use any part of the grant to provide
assistance to any individual who is--
`(i) fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the individual flees, for a crime, or
an attempt to commit a crime, which is a felony under
the laws of the place from which the individual flees,
or which, in the case of the State of New Jersey, is a
high misdemeanor under the laws of such State; or
`(ii) violating a condition of probation or parole
imposed under Federal or State law.
The preceding sentence shall not apply with respect to
conduct of an individual, for any month beginning after the
President of the United States grants a pardon with respect
to the conduct.
`(B) EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT
AGENCIES- If a State to which a grant is made under section
403 establishes safeguards against the use or disclosure of
information about applicants or recipients of assistance
under the State program funded under this part, the
safeguards shall not prevent the State agency administering
the program from furnishing a Federal, State, or local law
enforcement officer, upon the request of the officer, with
the current address of any recipient if the officer
furnishes the agency with the name of the recipient and
notifies the agency that--
`(i) the recipient--
`(I) is described in subparagraph (A); or
`(II) has information that is necessary for the officer to
conduct the official duties of the officer; and
`(ii) the location or apprehension of the recipient
is within such official duties.
`(10) DENIAL OF ASSISTANCE FOR MINOR CHILDREN WHO ARE ABSENT
FROM THE HOME FOR A SIGNIFICANT PERIOD-
`(A) IN GENERAL- A State to which a grant is made under
section 403 shall not use any part of the grant to provide
assistance for a minor child who has been, or is expected
by a parent (or other caretaker relative) of the child to
be, absent from the home for a period of 45 consecutive
days or, at the option of the State, such period of not
less than 30 and not more than 180 consecutive days as the
State may provide for in the State plan submitted pursuant
to section 402.
`(B) STATE AUTHORITY TO ESTABLISH GOOD CAUSE EXCEPTIONS-
The State may establish such good cause exceptions to
subparagraph (A) as the State considers appropriate if such
exceptions are provided for in the State plan submitted
pursuant to section 402.
`(C) DENIAL OF ASSISTANCE FOR RELATIVE WHO FAILS TO
NOTIFY STATE AGENCY OF ABSENCE OF CHILD- A State to which a
grant is made under section 403 shall not use any part of
the grant to provide assistance for an individual who is a
parent (or other caretaker relative) of a minor child and
who fails to notify the agency administering the State
program funded under this part of the absence of the minor
child from the home for the period specified in or provided
for pursuant to subparagraph (A), by the end of the 5-day
period that begins with the date that it becomes clear to
the parent (or relative) that the minor child will be
absent for such period so specified or provided for.
`(11) MEDICAL ASSISTANCE REQUIRED TO BE PROVIDED FOR CERTAIN
FAMILIES HAVING EARNINGS FROM EMPLOYMENT OR CHILD SUPPORT-
`(A) EARNINGS FROM EMPLOYMENT- A State to which a grant
is made under section 403 and which has a State plan
approved under title XIX shall provide that in the case of
a family that is treated (under section 1931(b)(1)(A) for
purposes of title XIX) as receiving aid under a State plan
approved under this part (as in effect on July 16, 1996),
that would become ineligible for such aid because of hours
of or income from employment of the caretaker relative (as
defined under this part as in effect on such date) or
because of section 402(a)(8)(B)(ii)(II) (as so in effect),
and that was so treated as receiving such aid in at least 3
of the 6 months immediately preceding the month in which
such ineligibility begins, the family shall remain eligible
for medical assistance under the State's plan approved
under title XIX for an extended period or periods as
provided in section 1925 or 1902(e)(1) (as applicable), and
that the family will be appropriately notified of such
extension as required by section 1925(a)(2).
`(B) CHILD SUPPORT- A State to which a grant is made
under section 403 and which has a State plan approved under
title XIX shall provide that in the case of a family that
is treated (under section 1931(b)(1)(A) for purposes of
title XIX) as receiving aid under a State plan approved
under this part (as in effect on July 16, 1996), that would
become ineligible for such aid as a result (wholly or
partly) of the collection of child or spousal support under
part D and that was so treated as receiving such aid in at
least 3 of the 6 months immediately preceding the month in
which such ineligibility begins, the family shall remain
eligible for medical assistance under the State's plan
approved under title XIX for an extended period or periods
as provided in section 1931(c)(1).
`(b) INDIVIDUAL RESPONSIBILITY PLANS-
`(1) ASSESSMENT- The State agency responsible for
administering the State program funded under this part shall
make an initial assessment of the skills, prior work
experience, and employability of each recipient of assistance
under the program who--
`(A) has attained 18 years of age; or
`(B) has not completed high school or obtained a
certificate of high school equivalency, and is not
attending secondary school.
`(2) CONTENTS OF PLANS-
`(A) IN GENERAL- On the basis of the assessment made
under subsection (a) with respect to an individual, the
State agency, in consultation with the individual, may
develop an individual responsibility plan for the
individual, which--
`(i) sets forth an employment goal for the individual
and a plan for moving the individual immediately into
private sector employment;
`(ii) sets forth the obligations of the individual,
which may include a requirement that the individual
attend school, maintain certain grades and attendance,
keep school age children of the individual in school,
immunize children, attend parenting and money
management classes, or do other things that will help
the individual become and remain employed in the
private sector;
`(iii) to the greatest extent possible is designed to
move the individual into whatever private sector
employment the individual is capable of handling as
quickly as possible, and to increase the responsibility
and amount of work the individual is to handle over time;
`(iv) describes the services the State will provide
the individual so that the individual will be able to
obtain and keep employment in the private sector, and
describe the job counseling and other services that
will be provided by the State; and
`(v) may require the individual to undergo
appropriate substance abuse treatment.
`(B) TIMING- The State agency may comply with paragraph
(1) with respect to an individual--
`(i) within 90 days (or, at the option of the State,
180 days) after the effective date of this part, in the
case of an individual who, as of such effective date,
is a recipient of aid under the State plan approved
under part A (as in effect immediately before such
effective date); or
`(ii) within 30 days (or, at the option of the State,
90 days) after the individual is determined to be
eligible for such assistance, in the case of any other
individual.
`(3) PENALTY FOR NONCOMPLIANCE BY INDIVIDUAL- In addition to
any other penalties required under the State program funded
under this part, the State may reduce, by such amount as the
State considers appropriate, the amount of assistance otherwise
payable under the State program to a family that includes an
individual who fails without good cause to comply with an
individual responsibility plan signed by the individual.
`(4) STATE DISCRETION- The exercise of the authority of this
subsection shall be within the sole discretion of the State.
`(c) NONDISCRIMINATION PROVISIONS- The following provisions of
law shall apply to any program or activity which receives funds
provided under this part:
`(1) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et
seq.).
`(2) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
794).
`(3) The Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.).
`(4) Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.).
`(d) ALIENS- For special rules relating to the treatment of
aliens, see section 402 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
`SEC. 409. PENALTIES.
`(a) IN GENERAL- Subject to this section:
`(1) USE OF GRANT IN VIOLATION OF THIS PART-
`(A) GENERAL PENALTY- If an audit conducted under chapter
75 of title 31, United States Code, finds that an amount
paid to a State under section 403 for a fiscal year has
been used in violation of this part, the Secretary shall
reduce the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year
quarter by the amount so used.
`(B) ENHANCED PENALTY FOR INTENTIONAL VIOLATIONS- If the
State does not prove to the satisfaction of the Secretary
that the State did not intend to use the amount in
violation of this part, the Secretary shall further reduce
the grant payable to the State under section 403(a)(1) for
the immediately succeeding fiscal year quarter by an amount
equal to 5 percent of the State family assistance grant.
`(2) FAILURE TO SUBMIT REQUIRED REPORT-
`(A) IN GENERAL- If the Secretary determines that a State
has not, within 1 month after the end of a fiscal quarter,
submitted the report required by section 411(a) for the
quarter, the Secretary shall reduce the grant payable to
the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to 4 percent of
the State family assistance grant.
`(B) RESCISSION OF PENALTY- The Secretary shall rescind a
penalty imposed on a State under subparagraph (A) with
respect to a report if the State submits the report before
the end of the fiscal quarter that immediately succeeds the
fiscal quarter for which the report was required.
`(3) FAILURE TO SATISFY MINIMUM PARTICIPATION RATES-
`(A) IN GENERAL- If the Secretary determines that a State
to which a grant is made under section 403 for a fiscal
year has failed to comply with section 407(a) for the
fiscal year, the Secretary shall reduce the grant payable
to the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to not more than
the applicable percentage of the State family assistance
grant.
`(B) APPLICABLE PERCENTAGE DEFINED- As used in
subparagraph (A), the term `applicable percentage' means,
with respect to a State--
`(i) if a penalty was not imposed on the State under
subparagraph (A) for the immediately preceding fiscal
year, 5 percent; or
`(ii) if a penalty was imposed on the State under
subparagraph (A) for the immediately preceding fiscal
year, the lesser of--
`(I) the percentage by which the grant payable to the State under
section 403(a)(1) was reduced for such preceding fiscal year,
increased by 2 percentage points; or
`(II) 21 percent.
`(C) PENALTY BASED ON SEVERITY OF FAILURE- The Secretary
shall impose reductions under subparagraph (A) with respect
to a fiscal year based on the degree of noncompliance, and
may reduce the penalty if the noncompliance is due to
circumstances that caused the State to become a needy State
(as defined in section 403(b)(6)) during the fiscal year.
`(4) FAILURE TO PARTICIPATE IN THE INCOME AND ELIGIBILITY
VERIFICATION SYSTEM- If the Secretary determines that a State
program funded under this part is not participating during a
fiscal year in the income and eligibility verification system
required by section 1137, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount equal to not
more than 2 percent of the State family assistance grant.
`(5) FAILURE TO COMPLY WITH PATERNITY ESTABLISHMENT AND CHILD
SUPPORT ENFORCEMENT REQUIREMENTS UNDER PART D- Notwithstanding
any other provision of this Act, if the Secretary determines
that the State agency that administers a program funded under
this part does not enforce the penalties requested by the
agency administering part D against recipients of assistance
under the State program who fail to cooperate in establishing
paternity or in establishing, modifying, or enforcing a child
support order in accordance with such part and who do not
qualify for any good cause or other exception established by
the State under section 454(29), the Secretary shall reduce the
grant payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year (without regard to this
section) by not more than 5 percent.
`(6) FAILURE TO TIMELY REPAY A FEDERAL LOAN FUND FOR STATE
WELFARE PROGRAMS- If the Secretary determines that a State has
failed to repay any amount borrowed from the Federal Loan Fund
for State Welfare Programs established under section 406 within
the period of maturity applicable to the loan, plus any
interest owed on the loan, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year quarter (without regard to
this section) by the outstanding loan amount, plus the interest
owed on the outstanding amount. The Secretary shall not forgive
any outstanding loan amount or interest owed on the outstanding
amount.
`(7) FAILURE OF ANY STATE TO MAINTAIN CERTAIN LEVEL OF
HISTORIC EFFORT-
`(A) IN GENERAL- The Secretary shall reduce the grant
payable to the State under section 403(a)(1) for fiscal
year 1998, 1999, 2000, 2001, 2002, or 2003 by the amount
(if any) by which qualified State expenditures for the then
immediately preceding fiscal year are less than the
applicable percentage of historic State expenditures with
respect to such preceding fiscal year.
`(B) DEFINITIONS- As used in this paragraph:
`(i) QUALIFIED STATE EXPENDITURES-
`(I) IN GENERAL- The term `qualified State expenditures' means,
with respect to a State and a fiscal year, the total expenditures
by the State during the fiscal year, under all State programs, for
any of the following with respect to eligible families:
`(aa) Cash assistance.
`(bb) Child care assistance.
`(cc) Educational activities designed to increase
self-sufficiency, job training, and work, excluding any expenditure
for public education in the State except expenditures which involve
the provision of services or assistance to a member of an eligible
family which is not generally available to persons who are not
members of an eligible family.
`(dd) Administrative costs in connection with the matters
described in items (aa), (bb), (cc), and (ee), but only to the
extent that such costs do not exceed 15 percent of the total amount
of qualified State expenditures for the fiscal year.
`(ee) Any other use of funds allowable under section 404(a)(1).
`(II) EXCLUSION OF TRANSFERS FROM OTHER STATE AND LOCAL PROGRAMS-
Such term does not include expenditures under any State or local
program during a fiscal year, except to the extent that--
`(aa) the expenditures exceed the amount expended under the State
or local program in the fiscal year most recently ending before the
date of the enactment of this part; or
`(bb) the State is entitled to a payment under former section 403
(as in effect immediately before such date of enactment) with
respect to the expenditures.
`(III) ELIGIBLE FAMILIES- As used in subclause (I), the term
`eligible families' means families eligible for assistance under
the State program funded under this part, and families that would
be eligible for such assistance but for the application of section
408(a)(7) of this Act or section 402 of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996.
`(ii) APPLICABLE PERCENTAGE- The term `applicable
percentage' means for fiscal years 1997 through 2002,
80 percent (or, if the State meets the requirements of
section 407(a) for the fiscal year, 75 percent) reduced
(if appropriate) in accordance with subparagraph (C)(ii).
`(iii) HISTORIC STATE EXPENDITURES- The term
`historic State expenditures' means, with respect to a
State, the lesser of--
`(I) the expenditures by the State under parts A and F (as in
effect during fiscal year 1994) for fiscal year 1994; or
`(II) the amount which bears the same ratio to the amount
described in subclause (I) as--
`(aa) the State family assistance grant, plus the total amount
required to be paid to the State under former section 403 for
fiscal year 1994 with respect to amounts expended by the State for
child care under subsection (g) or (i) of section 402 (as in effect
during fiscal year 1994); bears to
`(bb) the total amount required to be paid to the State under
former section 403 (as in effect during fiscal year 1994) for
fiscal year 1994.
Such term does not include any expenditures under the
State plan approved under part A (as so in effect) on
behalf of individuals covered by a tribal family
assistance plan approved under section 412, as
determined by the Secretary.
`(iv) EXPENDITURES BY THE STATE- The term
`expenditures by the State' does not include--
`(I) any expenditures from amounts made available by the Federal
Government;
`(II) any State funds expended for the medicaid program under
title XIX;
`(III) any State funds which are used to match Federal funds; or
`(IV) any State funds which are expended as a condition of
receiving Federal funds under Federal programs other than under
this part.
Notwithstanding subclause (IV) of the preceding
sentence, such term includes expenditures by a State
for child care in a fiscal year to the extent that the
total amount of such expenditures does not exceed an
amount equal to the amount of State expenditures in
fiscal year 1994 or 1995 (whichever is greater) that
equal the non-Federal share for the programs described
in section 418(a)(1)(A).
`(8) SUBSTANTIAL NONCOMPLIANCE OF STATE CHILD SUPPORT
ENFORCEMENT PROGRAM WITH REQUIREMENTS OF PART D-
`(A) IN GENERAL- If a State program operated under part D
is found as a result of a review conducted under section
452(a)(4) not to have complied substantially with the
requirements of such part for any quarter, and the
Secretary determines that the program is not complying
substantially with such requirements at the time the
finding is made, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
quarter and each subsequent quarter that ends before the
1st quarter throughout which the program is found to be in
substantial compliance with such requirements by--
`(i) not less than 1 nor more than 2 percent;
`(ii) not less than 2 nor more than 3 percent, if the
finding is the 2nd consecutive such finding made as a
result of such a review; or
`(iii) not less than 3 nor more than 5 percent, if
the finding is the 3rd or a subsequent consecutive such
finding made as a result of such a review.
`(B) DISREGARD OF NONCOMPLIANCE WHICH IS OF A TECHNICAL
NATURE- For purposes of subparagraph (A) and section
452(a)(4), a State which is not in full compliance with the
requirements of this part shall be determined to be in
substantial compliance with such requirements only if the
Secretary determines that any noncompliance with such
requirements is of a technical nature which does not
adversely affect the performance of the State's program
operated under part D.
`(9) FAILURE TO COMPLY WITH 5-YEAR LIMIT ON ASSISTANCE- If
the Secretary determines that a State has not complied with
section 408(a)(1)(B) during a fiscal year, the Secretary shall
reduce the grant payable to the State under section 403(a)(1)
for the immediately succeeding fiscal year by an amount equal
to 5 percent of the State family assistance grant.
`(10) FAILURE OF STATE RECEIVING AMOUNTS FROM CONTINGENCY
FUND TO MAINTAIN 100 PERCENT OF HISTORIC EFFORT- If, at the end
of any fiscal year during which amounts from the Contingency
Fund for State Welfare Programs have been paid to a State, the
Secretary finds that the expenditures under the State program
funded under this part for the fiscal year (excluding any
amounts made available by the Federal Government) are less than
100 percent of historic State expenditures (as defined in
paragraph (7)(B)(iii) of this subsection), the Secretary shall
reduce the grant payable to the State under section 403(a)(1)
for the immediately succeeding fiscal year by the total of the
amounts so paid to the State.
`(11) FAILURE TO MAINTAIN ASSISTANCE TO ADULT SINGLE
CUSTODIAL PARENT WHO CANNOT OBTAIN CHILD CARE FOR CHILD UNDER
AGE 6-
`(A) IN GENERAL- If the Secretary determines that a State
to which a grant is made under section 403 for a fiscal
year has violated section 407(e)(2) during the fiscal year,
the Secretary shall reduce the grant payable to the State
under section 403(a)(1) for the immediately succeeding
fiscal year by an amount equal to not more than 5 percent
of the State family assistance grant.
`(B) PENALTY BASED ON SEVERITY OF FAILURE- The Secretary
shall impose reductions under subparagraph (A) with respect
to a fiscal year based on the degree of noncompliance.
`(12) FAILURE TO EXPEND ADDITIONAL STATE FUNDS TO REPLACE
GRANT REDUCTIONS- If the grant payable to a State under section
403(a)(1) for a fiscal year is reduced by reason of this
subsection, the State shall, during the immediately succeeding
fiscal year, expend under the State program funded under this
part an amount equal to the total amount of such reductions.
`(b) REASONABLE CAUSE EXCEPTION-
`(1) IN GENERAL- The Secretary may not impose a penalty on a
State under subsection (a) with respect to a requirement if the
Secretary determines that the State has reasonable cause for
failing to comply with the requirement.
`(2) EXCEPTION- Paragraph (1) of this subsection shall not
apply to any penalty under paragraph (7) or (8) of subsection
(a).
`(c) CORRECTIVE COMPLIANCE PLAN-
`(1) IN GENERAL-
`(A) NOTIFICATION OF VIOLATION- Before imposing a penalty
against a State under subsection (a) with respect to a
violation of this part, the Secretary shall notify the
State of the violation and allow the State the opportunity
to enter into a corrective compliance plan in accordance
with this subsection which outlines how the State will
correct the violation and how the State will insure
continuing compliance with this part.
`(B) 60-DAY PERIOD TO PROPOSE A CORRECTIVE COMPLIANCE
PLAN- During the 60-day period that begins on the date the
State receives a notice provided under 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
section for a prior fiscal year, the Secretary shall apply any
remaining amount of such penalties to the grant payable to the
State under section 403(a)(1) for the immediately succeeding
fiscal year.
`SEC. 410. APPEAL OF ADVERSE DECISION.
`(a) IN GENERAL- Within 5 days after the date the Secretary takes
any adverse action under this part with respect to a State, the
Secretary shall notify the chief executive officer of the State of
the adverse action, including any action with respect to the State
plan submitted under section 402 or the imposition of a penalty
under section 409.
`(b) ADMINISTRATIVE REVIEW-
`(1) IN GENERAL- Within 60 days after the date a State
receives notice under subsection (a) of an adverse action, the
State may appeal the action, in whole or in part, to the
Departmental Appeals Board established in the Department of
Health and Human Services (in this section referred to as the
`Board') by filing an appeal with the Board.
`(2) PROCEDURAL RULES- The Board shall consider an appeal
filed by a State under paragraph (1) on the basis of such
documentation as the State may submit and as the Board may
require to support the final decision of the Board. In deciding
whether to uphold an adverse action or any portion of such an
action, the Board shall conduct a thorough review of the issues
and take into account all relevant evidence. The Board shall
make a final determination with respect to an appeal filed
under paragraph (1) not less than 60 days after the date the
appeal is filed.
`(c) JUDICIAL REVIEW OF ADVERSE DECISION-
`(1) IN GENERAL- Within 90 days after the date of a final
decision by the Board under this section with respect to an
adverse action taken against a State, the State may obtain
judicial review of the final decision (and the findings
incorporated into the final decision) by filing an action in--
`(A) the district court of the United States for the
judicial district in which the principal or headquarters
office of the State agency is located; or
`(B) the United States District Court for the District of
Columbia.
`(2) PROCEDURAL RULES- The district court in which an action
is filed under paragraph (1) shall review the final decision of
the Board on the record established in the administrative
proceeding, in accordance with the standards of review
prescribed by subparagraphs (A) through (E) of section 706(2)
of title 5, United States Code. The review shall be on the
basis of the documents and supporting data submitted to the
Board.
`SEC. 411. DATA COLLECTION AND REPORTING.
`(a) QUARTERLY REPORTS BY STATES-
`(1) GENERAL REPORTING REQUIREMENT-
`(A) CONTENTS OF REPORT- Each eligible State shall
collect on a monthly basis, and report to the Secretary on
a quarterly basis, the following disaggregated case record
information on the families receiving assistance under the
State program funded under this part:
`(i) The county of residence of the family.
`(ii) Whether a child receiving such assistance or an
adult in the family is disabled.
`(iii) The ages of the members of such families.
`(iv) The number of individuals in the family, and
the relation of each family member to the youngest
child in the family.
`(v) The employment status and earnings of the
employed adult in the family.
`(vi) The marital status of the adults in the family,
including whether such adults have never married, are
widowed, or are divorced.
`(vii) The race and educational status of each adult
in the family.
`(viii) The race and educational status of each child
in the family.
`(ix) Whether the family received subsidized housing,
medical assistance under the State plan approved under
title XIX, food stamps, or subsidized child care, and
if the latter 2, the amount received.
`(x) The number of months that the family has
received each type of assistance under the program.
`(xi) If the adults participated in, and the number
of hours per week of participation in, the following
activities:
`(I) Education.
`(II) Subsidized private sector employment.
`(III) Unsubsidized employment.
`(IV) Public sector employment, work experience, or community
service.
`(V) Job search.
`(VI) Job skills training or on-the-job training.
`(VII) Vocational education.
`(xii) Information necessary to calculate
participation rates under section 407.
`(xiii) The type and amount of assistance received
under the program, including the amount of and reason
for any reduction of assistance (including sanctions).
`(xiv) Any amount of unearned income received by any
member of the family.
`(xv) The citizenship of the members of the family.
`(xvi) From a sample of closed cases, whether the
family left the program, and if so, whether the family
left due to--
`(I) employment;
`(II) marriage;
`(III) the prohibition set forth in section 408(a)(7);
`(IV) sanction; or
`(V) State policy.
`(B) USE OF ESTIMATES-
`(i) AUTHORITY- A State may comply with subparagraph
(A) by submitting an estimate which is obtained through
the use of scientifically acceptable sampling methods
approved by the Secretary.
`(ii) SAMPLING AND OTHER METHODS- The Secretary shall
provide the States with such case sampling plans and
data collection procedures as the Secretary deems
necessary to produce statistically valid estimates of
the performance of State programs funded under this
part. The Secretary may develop and implement
procedures for verifying the quality of data submitted
by the States.
`(2) REPORT ON USE OF FEDERAL FUNDS TO COVER ADMINISTRATIVE
COSTS AND OVERHEAD- The report required by paragraph (1) for a
fiscal quarter shall include a statement of the percentage of
the funds paid to the State under this part for the quarter
that are used to cover administrative costs or overhead.
`(3) REPORT ON STATE EXPENDITURES ON PROGRAMS FOR NEEDY
FAMILIES- The report required by paragraph (1) for a fiscal
quarter shall include a statement of the total amount expended
by the State during the quarter on programs for needy families.
`(4) REPORT ON NONCUSTODIAL PARENTS PARTICIPATING IN WORK
ACTIVITIES- The report required by paragraph (1) for a fiscal
quarter shall include the number of noncustodial parents in the
State who participated in work activities (as defined in
section 407(d)) during the quarter.
`(5) REPORT ON TRANSITIONAL SERVICES- The report required by
paragraph (1) for a fiscal quarter shall include the total
amount expended by the State during the quarter to provide
transitional services to a family that has ceased to receive
assistance under this part because of employment, along with a
description of such services.
`(6) REGULATIONS- The Secretary shall prescribe such
regulations as may be necessary to define the data elements
with respect to which reports are required by this subsection.
`(b) ANNUAL REPORTS TO THE CONGRESS BY THE SECRETARY- Not later
than 6 months after the end of fiscal year 1997, and each fiscal
year thereafter, the Secretary shall transmit to the Congress a
report describing--
`(1) whether the States are meeting--
`(A) the participation rates described in section 407(a);
and
`(B) the objectives of--
`(i) increasing employment and earnings of needy
families, and child support collections; and
`(ii) decreasing out-of-wedlock pregnancies and child
poverty;
`(2) the demographic and financial characteristics of
families applying for assistance, families receiving
assistance, and families that become ineligible to receive
assistance;
`(3) the characteristics of each State program funded under
this part; and
`(4) the trends in employment and earnings of needy families
with minor children living at home.
`SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.
`(a) GRANTS FOR INDIAN TRIBES-
`(1) TRIBAL FAMILY ASSISTANCE GRANT-
`(A) IN GENERAL- For each of fiscal years 1997, 1998,
1999, 2000, 2001, and 2002, the Secretary shall pay to each
Indian tribe that has an approved tribal family assistance
plan a tribal family assistance grant for the fiscal year
in an amount equal to the amount determined under
subparagraph (B), and shall reduce the grant payable under
section 403(a)(1) to any State in which lies the service
area or areas of the Indian tribe by that portion of the
amount so determined that is attributable to expenditures
by the State.
`(B) AMOUNT DETERMINED-
`(i) IN GENERAL- The amount determined under this
subparagraph is an amount equal to the total amount of
the Federal payments to a State or States under section
403 (as in effect during such fiscal year) for fiscal
year 1994 attributable to expenditures (other than
child care expenditures) by the State or States under
parts A and F (as so in effect) for fiscal year 1994
for Indian families residing in the service area or
areas identified by the Indian tribe pursuant to
subsection (b)(1)(C) of this section.
`(ii) USE OF STATE SUBMITTED DATA-
`(I) IN GENERAL- The Secretary shall use State submitted data to
make each determination under clause (i).
`(II) DISAGREEMENT WITH DETERMINATION- If an Indian tribe or
tribal organization disagrees with State submitted data described
under subclause (I), the Indian tribe or tribal organization may
submit to the Secretary such additional information as may be
relevant to making the determination under clause (i) and the
Secretary may consider such information before making such
determination.
`(2) GRANTS FOR INDIAN TRIBES THAT RECEIVED JOBS FUNDS-
`(A) IN GENERAL- The Secretary shall pay to each eligible
Indian tribe for each of fiscal years 1997, 1998, 1999,
2000, 2001, and 2002 a grant in an amount equal to the
amount received by the Indian tribe in fiscal year 1994
under section 482(i) (as in effect during fiscal year 1994).
`(B) ELIGIBLE INDIAN TRIBE- For purposes of subparagraph
(A), the term `eligible Indian tribe' means an Indian tribe
or Alaska Native organization that conducted a job
opportunities and basic skills training program in fiscal
year 1995 under section 482(i) (as in effect during fiscal
year 1995).
`(C) USE OF GRANT- Each Indian tribe to which a grant is
made under this paragraph shall use the grant for the
purpose of operating a program to make work activities
available to members of the Indian tribe.
`(D) APPROPRIATION- Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated $7,638,474 for each fiscal year specified in
subparagraph (A) for grants under subparagraph (A).
`(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN-
`(1) IN GENERAL- Any Indian tribe that desires to receive a
tribal family assistance grant shall submit to the Secretary a
3-year tribal family assistance plan that--
`(A) outlines the Indian tribe's approach to providing
welfare-related services for the 3-year period, consistent
with this section;
`(B) specifies whether the welfare-related services
provided under the plan will be provided by the Indian
tribe or through agreements, contracts, or compacts with
intertribal consortia, States, or other entities;
`(C) identifies the population and service area or areas
to be served by such plan;
`(D) provides that a family receiving assistance under
the plan may not receive duplicative assistance from other
State or tribal programs funded under this part;
`(E) identifies the employment opportunities in or near
the service area or areas of the Indian tribe and the
manner in which the Indian tribe will cooperate and
participate in enhancing such opportunities for recipients
of assistance under the plan consistent with any applicable
State standards; and
`(F) applies the fiscal accountability provisions of
section 5(f)(1) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450c(f)(1)), relating
to the submission of a single-agency audit report required
by chapter 75 of title 31, United States Code.
`(2) APPROVAL- The Secretary shall approve each tribal family
assistance plan submitted in accordance with paragraph (1).
`(3) CONSORTIUM OF TRIBES- Nothing in this section shall
preclude the development and submission of a single tribal
family assistance plan by the participating Indian tribes of an
intertribal consortium.
`(c) MINIMUM WORK PARTICIPATION REQUIREMENTS AND TIME LIMITS- The
Secretary, with the participation of Indian tribes, shall establish
for each Indian tribe receiving a grant under this section minimum
work participation requirements, appropriate time limits for
receipt of welfare-related services under the grant, and penalties
against individuals--
`(1) consistent with the purposes of this section;
`(2) consistent with the economic conditions and resources
available to each tribe; and
`(3) similar to comparable provisions in section 407(e).
`(d) EMERGENCY ASSISTANCE- Nothing in this section shall preclude
an Indian tribe from seeking emergency assistance from any Federal
loan program or emergency fund.
`(e) ACCOUNTABILITY- Nothing in this section shall be construed
to limit the ability of the Secretary to maintain program funding
accountability consistent with--
`(1) generally accepted accounting principles; and
`(2) the requirements of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450 et seq.).
`(f) PENALTIES-
`(1) Subsections (a)(1), (a)(6), and (b) of section 409,
shall apply to an Indian tribe with an approved tribal
assistance plan in the same manner as such subsections apply to
a State.
`(2) Section 409(a)(3) shall apply to an Indian tribe with an
approved tribal assistance plan by substituting `meet minimum
work participation requirements established under section
412(c)' for `comply with section 407(a)'.
`(g) DATA COLLECTION AND REPORTING- Section 411 shall apply to an
Indian tribe with an approved tribal family assistance plan.
`(h) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA-
`(1) IN GENERAL- Notwithstanding any other provision of this
section, and except as provided in paragraph (2), an Indian
tribe in the State of Alaska that receives a tribal family
assistance grant under this section shall use the grant to
operate a program in accordance with requirements comparable to
the requirements applicable to the program of the State of
Alaska funded under this part. Comparability of programs shall
be established on the basis of program criteria developed by
the Secretary in consultation with the State of Alaska and such
Indian tribes.
`(2) WAIVER- An Indian tribe described in paragraph (1) may
apply to the appropriate State authority to receive a waiver of
the requirement of paragraph (1).
`SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.
`(a) RESEARCH- The Secretary shall conduct research on the
benefits, effects, and costs of operating different State programs
funded under this part, including time limits relating to
eligibility for assistance. The research shall include studies on
the effects of different programs and the operation of such
programs on welfare dependency, illegitimacy, teen pregnancy,
employment rates, child well-being, and any other area the
Secretary deems appropriate. The Secretary shall also conduct
research on the costs and benefits of State activities under
section 409.
`(b) DEVELOPMENT AND EVALUATION OF INNOVATIVE APPROACHES TO
REDUCING WELFARE DEPENDENCY AND INCREASING CHILD WELL-BEING-
`(1) IN GENERAL- The Secretary may assist States in
developing, and shall evaluate, innovative approaches for
reducing welfare dependency and increasing the well-being of
minor children living at home with respect to recipients of
assistance under programs funded under this part. The Secretary
may provide funds for training and technical assistance to
carry out the approaches developed pursuant to this paragraph.
`(2) EVALUATIONS- In performing the evaluations under
paragraph (1), the Secretary shall, to the maximum extent
feasible, use random assignment as an evaluation methodology.
`(c) DISSEMINATION OF INFORMATION- The Secretary shall develop
innovative methods of disseminating information on any research,
evaluations, and studies conducted under this section, including
the facilitation of the sharing of information and best practices
among States and localities through the use of computers and other
technologies.
`(d) ANNUAL RANKING OF STATES AND REVIEW OF MOST AND LEAST
SUCCESSFUL WORK PROGRAMS-
`(1) ANNUAL RANKING OF STATES- The Secretary shall rank
annually the States to which grants are paid under section 403
in the order of their success in placing recipients of
assistance under the State program funded under this part into
long-term private sector jobs, reducing the overall welfare
caseload, and, when a practicable method for calculating this
information becomes available, diverting individuals from
formally applying to the State program and receiving
assistance. In ranking States under this subsection, the
Secretary shall take into account the average number of minor
children living at home in families in the State that have
incomes below the poverty line and the amount of funding
provided each State for such families.
`(2) ANNUAL REVIEW OF MOST AND LEAST SUCCESSFUL WORK
PROGRAMS- The Secretary shall review the programs of the 3
States most recently ranked highest under paragraph (1) and the
3 States most recently ranked lowest under paragraph (1) that
provide parents with work experience, assistance in finding
employment, and other work preparation activities and support
services to enable the families of such parents to leave the
program and become self-sufficient.
`(e) ANNUAL RANKING OF STATES AND REVIEW OF ISSUES RELATING TO
OUT-OF-WEDLOCK BIRTHS-
`(1) ANNUAL RANKING OF STATES-
`(A) IN GENERAL- The Secretary shall annually rank States
to which grants are made under section 403 based on the
following ranking factors:
`(i) ABSOLUTE OUT-OF-WEDLOCK RATIOS- The ratio
represented by--
`(I) the total number of out-of-wedlock births in families
receiving assistance under the State program under this part in the
State for the most recent fiscal year for which information is
available; over
`(II) the total number of births in families receiving assistance
under the State program under this part in the State for such year.
`(ii) NET CHANGES IN THE OUT-OF-WEDLOCK RATIO- The
difference between the ratio described in subparagraph
(A)(i) with respect to a State for the most recent
fiscal year for which such information is available and
the ratio with respect to the State for the immediately
preceding year.
`(2) ANNUAL REVIEW- The Secretary shall review the programs
of the 5 States most recently ranked highest under paragraph
(1) and the 5 States most recently ranked the lowest under
paragraph (1).
`(f) STATE-INITIATED EVALUATIONS- A State shall be eligible to
receive funding to evaluate the State program funded under this
part if--
`(1) the State submits a proposal to the Secretary for the
evaluation;
`(2) the Secretary determines that the design and approach of
the evaluation is rigorous and is likely to yield information
that is credible and will be useful to other States; and
`(3) unless otherwise waived by the Secretary, the State
contributes to the cost of the evaluation, from non-Federal
sources, an amount equal to at least 10 percent of the cost of
the evaluation.
`(g) REPORT ON CIRCUMSTANCES OF CERTAIN CHILDREN AND FAMILIES-
`(1) IN GENERAL- Beginning 3 years after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall prepare and submit to the Committees on Ways and
Means and on Economic and Educational Opportunities of the
House of Representatives and to the Committees on Finance and
on Labor and Resources of the Senate annual reports that
examine in detail the matters described in paragraph (2) with
respect to each of the following groups for the period after
such enactment:
`(A) Individuals who were children in families that have
become ineligible for assistance under a State program
funded under this part by reason of having reached a time
limit on the provision of such assistance.
`(B) Children born after such date of enactment to
parents who, at the time of such birth, had not attained 20
years of age.
`(C) Individuals who, after such date of enactment,
became parents before attaining 20 years of age.
`(2) MATTERS DESCRIBED- The matters described in this
paragraph are the following:
`(A) The percentage of each group that has dropped out of
secondary school (or the equivalent), and the percentage of
each group at each level of educational attainment.
`(B) The percentage of each group that is employed.
`(C) The percentage of each group that has been convicted
of a crime or has been adjudicated as a delinquent.
`(D) The rate at which the members of each group are
born, or have children, out-of-wedlock, and the percentage
of each group that is married.
`(E) The percentage of each group that continues to
participate in State programs funded under this part.
`(F) The percentage of each group that has health
insurance provided by a private entity (broken down by
whether the insurance is provided through an employer or
otherwise), the percentage that has health insurance
provided by an agency of government, and the percentage
that does not have health insurance.
`(G) The average income of the families of the members of
each group.
`(H) Such other matters as the Secretary deems appropriate.
`(h) FUNDING OF STUDIES AND DEMONSTRATIONS-
`(1) IN GENERAL- Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated $15,000,000 for each of fiscal years 1997 through
2002 for the purpose of paying--
`(A) the cost of conducting the research described in
subsection (a);
`(B) the cost of developing and evaluating innovative
approaches for reducing welfare dependency and increasing
the well-being of minor children under subsection (b);
`(C) the Federal share of any State-initiated study
approved under subsection (f); and
`(D) an amount determined by the Secretary to be
necessary to operate and evaluate demonstration projects,
relating to this part, that are in effect or approved under
section 1115 as of September 30, 1995, and are continued
after such date.
`(2) ALLOCATION- Of the amount appropriated under paragraph
(1) for a fiscal year--
`(A) 50 percent shall be allocated for the 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 shall prescribe regulations
establishing the methodology by which a State shall determine
the child poverty rate in the State. The methodology shall take
into account factors including the number of children who
receive free or reduced-price lunches, the number of food stamp
households, and the county-by-county estimates of children in
poverty as determined by the Census Bureau.
`SEC. 414. STUDY BY THE CENSUS BUREAU.
`(a) IN GENERAL- The Bureau of the Census shall continue to
collect data on the 1992 and 1993 panels of the Survey of Income
and Program Participation as necessary to obtain such information
as will enable interested persons to evaluate the impact of the
amendments made by title I of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 on a random national sample
of recipients of assistance under State programs funded under this
part and (as appropriate) other low-income families, and in doing
so, shall pay particular attention to the issues of out-of-wedlock
birth, welfare dependency, the beginning and end of welfare spells,
and the causes of repeat welfare spells, and shall obtain
information about the status of children participating in such
panels.
`(b) APPROPRIATION- Out of any money in the Treasury of the
United States not otherwise appropriated, there are appropriated
$10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, 2000,
2001, and 2002 for payment to the Bureau of the Census to carry out
subsection (a).
`SEC. 415. WAIVERS.
`(a) CONTINUATION OF WAIVERS-
`(1) WAIVERS IN EFFECT ON DATE OF ENACTMENT OF WELFARE REFORM-
`(A) IN GENERAL- Except as provided in subparagraph (B),
if any waiver granted to a State under section 1115 of this
Act or otherwise which relates to the provision of
assistance under a State plan under this part (as in effect
on September 30, 1996) is in effect as of the date of the
enactment of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, the amendments made
by the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (other than by section 103(c) of
the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996) shall not apply with respect to
the State before the expiration (determined without regard
to any extensions) of the waiver to the extent such
amendments are inconsistent with the waiver.
`(B) FINANCING LIMITATION- Notwithstanding any other
provision of law, beginning with fiscal year 1996, a State
operating under a waiver described in subparagraph (A)
shall be entitled to payment under section 403 for the
fiscal year, in lieu of any other payment provided for in
the waiver.
`(2) WAIVERS GRANTED SUBSEQUENTLY-
`(A) IN GENERAL- Except as provided in subparagraph (B),
if any waiver granted to a State under section 1115 of this
Act or otherwise which relates to the provision of
assistance under a State plan under this part (as in effect
on September 30, 1996) is submitted to the Secretary before
the date of the enactment of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 and
approved by the Secretary on or before July 1, 1997, and
the State demonstrates to the satisfaction of the Secretary
that the waiver will not result in Federal expenditures
under title IV of this Act (as in effect without regard to
the amendments made by the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996) that are greater
than would occur in the absence of the waiver, the
amendments made by the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (other than by
section 103(c) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996) shall not apply
with respect to the State before the expiration (determined
without regard to any extensions) of the waiver to the
extent the amendments made by the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 are
inconsistent with the waiver.
`(B) NO EFFECT ON NEW WORK REQUIREMENTS- Notwithstanding
subparagraph (A), a waiver granted under section 1115 or
otherwise which relates to the provision of assistance
under a State program funded under this part (as in effect
on September 30, 1996) shall not affect the applicability
of section 407 to the State.
`(b) STATE OPTION TO TERMINATE WAIVER-
`(1) IN GENERAL- A State may terminate a waiver described in
subsection (a) before the expiration of the waiver.
`(2) REPORT- A State which terminates a waiver under
paragraph (1) shall submit a report to the Secretary
summarizing the waiver and any available information concerning
the result or effect of the waiver.
`(3) HOLD HARMLESS PROVISION-
`(A) IN GENERAL- Notwithstanding any other provision of
law, a State that, not later than the date described in
subparagraph (B) of this paragraph, submits a written
request to terminate a waiver described in subsection (a)
shall be held harmless for accrued cost neutrality
liabilities incurred under the waiver.
`(B) DATE DESCRIBED- The date described in this
subparagraph is 90 days following the adjournment of the
first regular session of the State legislature that begins
after the date of the enactment of the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996.
`(c) SECRETARIAL ENCOURAGEMENT OF CURRENT WAIVERS- The Secretary
shall encourage any State operating a waiver described in
subsection (a) to continue the waiver and to evaluate, using random
sampling and other characteristics of accepted scientific
evaluations, the result or effect of the waiver.
`(d) CONTINUATION OF INDIVIDUAL WAIVERS- A State may elect to
continue 1 or more individual waivers described in sub-section (a).
`SEC. 416. ADMINISTRATION.
`The programs under this part and part D shall be administered by
an Assistant Secretary for Family Support within the Department of
Health and Human Services, who shall be appointed by the President,
by and with the advice and consent of the Senate, and who shall be
in addition to any other Assistant Secretary of Health and Human
Services provided for by law, and the Secretary shall reduce the
Federal workforce within the Department of Health and Human
Services by an amount equal to the sum of 75 percent of the
full-time equivalent positions at such Department that relate to
any direct spending program, or any program funded through
discretionary spending, that has been converted into a block grant
program under the Personal Responsibility and Work Opportunity Act
of 1996 and the amendments made by such Act, and by an amount equal
to 75 percent of that portion of the total full-time equivalent
departmental management positions at such Department that bears the
same relationship to the amount appropriated for any direct
spending program, or any program funded through discretionary
spending, that has been converted into a block grant program under
the Personal Responsibility and Work Opportunity Act of 1996 and
the amendments made by such Act, as such amount relates to the
total amount appropriated for use by such Department, and,
notwithstanding any other provision of law, the Secretary shall
take such actions as may be necessary, including reductions in
force actions, consistent with sections 3502 and 3595 of title 5,
United States Code, to reduce the full-time equivalent positions
within the Department of Health and Human Services by 245 full-time
equivalent positions related to the program converted into a block
grant under the amendment made by section 2103 of the Personal
Responsibility and Work Opportunity Act of 1996, and by 60
full-time equivalent managerial positions in the Department.
`SEC. 417. LIMITATION ON FEDERAL AUTHORITY.
`No officer or employee of the Federal Government may regulate
the conduct of States under this part or enforce any 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. DEFINITIONS.
`As used in this part:
`(1) ADULT- The term `adult' means an individual who is not a
minor child.
`(2) MINOR CHILD- The term `minor child' means an individual
who--
`(A) has not attained 18 years of age; or
`(B) has not attained 19 years of age and is a full-time
student in a secondary school (or in the equivalent level
of vocational or technical training).
`(3) FISCAL YEAR- The term `fiscal year' means any 12-month
period ending on September 30 of a calendar year.
`(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANIZATION-
`(A) IN GENERAL- Except as provided in subparagraph (B),
the terms `Indian', `Indian tribe', and `tribal
organization' have the meaning given such terms by section
4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(B) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA- The term
`Indian tribe' means, with respect to the State of Alaska,
only the Metlakatla Indian Community of the Annette Islands
Reserve and the following Alaska Native regional nonprofit
corporations:
`(i) Arctic Slope Native Association.
`(ii) Kawerak, Inc.
`(iii) Maniilaq Association.
`(iv) Association of Village Council Presidents.
`(v) Tanana Chiefs Conference.
`(vi) Cook Inlet Tribal Council.
`(vii) Bristol Bay Native Association.
`(viii) Aleutian and Pribilof Island Association.
`(ix) Chugachmuit.
`(x) Tlingit Haida Central Council.
`(xi) Kodiak Area Native Association.
`(xii) Copper River Native Association.
`(5) STATE- Except as otherwise specifically provided, the
term `State' means the 50 States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, and American Samoa.'.
(b) GRANTS TO OUTLYING AREAS- Section 1108 (42 U.S.C. 1308) is
amended--
(1) by striking subsections (d) and (e);
(2) by redesignating subsection (c) as subsection (f); and
(3) by striking all that precedes subsection (c) and
inserting the following:
`SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS,
GUAM, AND AMERICAN SAMOA; LIMITATION ON TOTAL
PAYMENTS.
`(a) LIMITATION ON TOTAL PAYMENTS TO EACH TERRITORY-
Notwithstanding any other provision of this Act, the total amount
certified by the Secretary of Health and Human Services under
titles I, X, XIV, and XVI, under parts A and E of title IV, and
under subsection (b) of this section, for payment to any territory
for a fiscal year shall not exceed the ceiling amount for the
territory for the fiscal year.
`(b) ENTITLEMENT TO MATCHING GRANT-
`(1) IN GENERAL- Each territory shall be entitled to receive
from the Secretary for each fiscal year a grant in an amount
equal to 75 percent of the amount (if any) by which--
`(A) the total expenditures of the territory during the
fiscal year under the territory programs funded under parts
A and E of title IV; exceeds
`(B) the sum of--
`(i) the amount of the family assistance grant
payable to the territory without regard to section 409;
and
`(ii) the total amount expended by the territory
during fiscal year 1995 pursuant to parts A and F of
title IV (as so in effect), other than for child care.
`(2) APPROPRIATION- Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated for fiscal years 1997 through 2002, such sums as
are necessary for grants under this paragraph.
`(c) DEFINITIONS- As used in this section:
`(1) TERRITORY- The term `territory' means Puerto Rico, the
Virgin Islands, Guam, and American Samoa.
`(2) CEILING AMOUNT- The term `ceiling amount' means, with
respect to a territory and a fiscal year, the mandatory ceiling
amount with respect to the territory, reduced for the fiscal
year in accordance with subsection (e), and reduced by the
amount of any penalty imposed on the territory under any
provision of law specified in subsection (a) during the fiscal
year.
`(3) FAMILY ASSISTANCE GRANT- The term `family assistance
grant' has the meaning given such term by section 403(a)(1)(B).
`(4) MANDATORY CEILING AMOUNT- The term `mandatory ceiling
amount' means--
`(A) $107,255,000 with respect to Puerto Rico;
`(B) $4,686,000 with respect to Guam;
`(C) $3,554,000 with respect to the Virgin Islands; and
`(D) $1,000,000 with respect to American Samoa.
`(5) TOTAL AMOUNT EXPENDED BY THE TERRITORY- The term `total
amount expended by the territory'--
`(A) does not include expenditures during the fiscal year
from amounts made available by the Federal Government; and
`(B) when used with respect to fiscal year 1995, also
does not include--
`(i) expenditures during fiscal year 1995 under
subsection (g) or (i) of section 402 (as in effect on
September 30, 1995); or
`(ii) any expenditures during fiscal year 1995 for
which the territory (but for section 1108, as in effect
on September 30, 1995) would have received
reimbursement from the Federal Government.
`(d) AUTHORITY TO TRANSFER FUNDS TO CERTAIN PROGRAMS- A territory
to which an amount is paid under subsection (b) of this section may
use the amount in accordance with section 404(d).
`(e) MAINTENANCE OF EFFORT- The ceiling amount with respect to a
territory shall be reduced for a fiscal year by an amount equal to
the amount (if any) by which--
`(1) the total amount expended by the territory under all
programs of the territory operated pursuant to the provisions
of law specified in subsection (a) (as such provisions were in
effect for fiscal year 1995) for fiscal year 1995; exceeds
`(2) the total amount expended by the territory under all
programs of the territory that are funded under the provisions
of law specified in subsection (a) for the fiscal year that
immediately precedes the fiscal year referred to in the matter
preceding paragraph (1).'.
(c) ELIMINATION OF CHILD CARE PROGRAMS UNDER THE SOCIAL SECURITY
ACT-
(1) AFDC AND TRANSITIONAL CHILD CARE PROGRAMS- Section 402
(42 U.S.C. 602) is amended by striking 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. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRIVATE
ORGANIZATIONS.
(a) IN GENERAL-
(1) STATE OPTIONS- A State may--
(A) administer and provide services under the programs
described in subparagraphs (A) and (B)(i) of paragraph (2)
through contracts with charitable, religious, or private
organizations; and
(B) provide beneficiaries of assistance under the
programs described in subparagraphs (A) and (B)(ii) of
paragraph (2) with certificates, vouchers, or other forms
of disbursement which are redeemable with such organizations.
(2) PROGRAMS DESCRIBED- The programs described in this
paragraph are the following programs:
(A) A State program funded under part A of title IV of
the Social Security Act (as amended by section 103(a) of
this Act).
(B) Any other program established or modified under title
I or II of this Act, that--
(i) permits contracts with organizations; or
(ii) permits certificates, vouchers, or other forms
of disbursement to be provided to beneficiaries, as a
means of providing assistance.
(b) RELIGIOUS ORGANIZATIONS- The purpose of this section is to
allow States to contract with religious organizations, or to allow
religious organizations to accept certificates, vouchers, or other
forms of disbursement under any program described in subsection
(a)(2), on the same basis as any other nongovernmental provider
without impairing the religious character of such organizations,
and without diminishing the religious freedom of beneficiaries of
assistance funded under such program.
(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANIZATIONS- In the
event a State exercises its authority under subsection (a),
religious organizations are eligible, on the same basis as any
other private organization, as contractors to provide assistance,
or to accept certificates, vouchers, or other forms of
disbursement, under any program described in subsection (a)(2) so
long as the programs are implemented consistent with the
Establishment Clause of the United States Constitution. Except as
provided in subsection (k), neither the Federal Government nor a
State receiving funds under such programs shall discriminate
against an organization which is or applies to be a contractor to
provide assistance, or which accepts certificates, vouchers, or
other forms of disbursement, on the basis that the organization has
a religious character.
(d) RELIGIOUS CHARACTER AND FREEDOM-
(1) RELIGIOUS ORGANIZATIONS- A religious organization with a
contract described in subsection (a)(1)(A), or which accepts
certificates, vouchers, or other forms of disbursement under
subsection (a)(1)(B), shall retain its independence from
Federal, State, and local governments, including such
organization's control over the definition, development,
practice, and expression of its religious beliefs.
(2) ADDITIONAL SAFEGUARDS- Neither the Federal Government nor
a State shall require a religious organization to--
(A) alter its form of internal governance; or
(B) remove religious art, icons, scripture, or other
symbols;
in order to be eligible to contract to provide assistance, or
to accept certificates, vouchers, or other forms of
disbursement, funded under a program described in subsection
(a)(2).
(e) RIGHTS OF BENEFICIARIES OF ASSISTANCE-
(1) IN GENERAL- If an individual described in paragraph (2)
has an objection to the religious character of the organization
or institution from which the individual receives, or would
receive, assistance funded under any program described in
subsection (a)(2), the State in which the individual resides
shall provide such individual (if otherwise eligible for such
assistance) within a reasonable period of time after the date
of such objection with assistance from an alternative provider
that is accessible to the individual and the value of which is
not less than the value of the assistance which the individual
would have received from such organization.
(2) INDIVIDUAL DESCRIBED- An individual described in this
paragraph is an individual who receives, applies for, or
requests to apply for, assistance under a program described in
subsection (a)(2).
(f) EMPLOYMENT PRACTICES- A religious organization's exemption
provided under section 702 of the Civil Rights Act of 1964 (42
U.S.C. 2000e-1a) regarding employment practices shall not be
affected by its participation in, or receipt of funds from,
programs described in subsection (a)(2).
(g) NONDISCRIMINATION AGAINST BENEFICIARIES- Except as otherwise
provided in law, a religious organization shall not discriminate
against an individual in regard to rendering assistance funded
under any program described in subsection (a)(2) on the basis of
religion, a religious belief, or refusal to actively participate in
a religious practice.
(h) FISCAL ACCOUNTABILITY-
(1) IN GENERAL- Except as provided in paragraph (2), any
religious organization contracting to provide assistance funded
under any program described in subsection (a)(2) shall be
subject to the same regulations as other contractors to account
in accord with generally accepted auditing principles for the
use of such funds provided under such programs.
(2) LIMITED AUDIT- If such organization segregates Federal
funds provided under such programs into separate accounts, then
only the financial assistance provided with such funds shall be
subject to audit.
(i) COMPLIANCE- Any party which seeks to enforce its rights under
this section may assert a civil action for injunctive relief
exclusively in an appropriate State court against the entity or
agency that allegedly commits such violation.
(j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES- No funds
provided directly to institutions or organizations to provide
services and administer programs under subsection (a)(1)(A) shall
be expended for sectarian worship, instruction, or proselytization.
(k) PREEMPTION- Nothing in this section shall be construed to
preempt any provision of a State constitution or State statute that
prohibits or restricts the expenditure of State funds in or by
religious organizations.
SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS FOR
THEIR GRANDCHILDREN.
(a) IN GENERAL- Not later than 90 days after the date of the
enactment of this Act, the Secretary of Commerce, in carrying out
section 141 of title 13, United States Code, shall expand the data
collection efforts of the Bureau of the Census (in this section
referred to as the `Bureau') to enable the Bureau to collect
statistically significant data, in connection with its decennial
census and its mid-decade census, concerning the growing trend of
grandparents who are the primary caregivers for their grandchildren.
(b) EXPANDED CENSUS QUESTION- In carrying out subsection (a), the
Secretary of Commerce shall expand the Bureau's census question
that details households which include both grandparents and their
grandchildren. The expanded question shall be formulated to
distinguish between the following households:
(1) A household in which a grandparent temporarily provides a
home for a grandchild for a period of weeks or months during
periods of parental distress.
(2) A household in which a grandparent provides a home for a
grandchild and serves as the primary caregiver for the
grandchild.
SEC. 106. REPORT ON DATA PROCESSING.
(a) IN GENERAL- Within 6 months after the date of the enactment
of this Act, the Secretary of Health and Human Services shall
prepare and submit to the Congress a report on--
(1) the status of the automated data processing systems
operated by the States to assist management in the
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. 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'.
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by
inserting `under a State program funded under' before `part A
of title IV'.
(b) AMENDMENTS TO PART B OF TITLE IV- Section 422(b)(2) (42
U.S.C. 622(b)(2)) is amended--
(1) by striking `plan approved under part A of this title'
and inserting `program funded under part A'; and
(2) by striking `part E of this title' and inserting `under
the State plan approved under part E'.
(c) AMENDMENTS TO PART D OF TITLE IV-
(1) Section 451 (42 U.S.C. 651) is amended by striking `aid'
and inserting `assistance under a State program funded'.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is
amended--
(A) by striking `aid to families with dependent children'
and inserting `assistance under a State program funded
under part A';
(B) by striking `such aid' and inserting `such
assistance'; and
(C) by striking `under section 402(a)(26) or' and
inserting `pursuant to section 408(a)(3) or under section'.
(3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is
amended--
(A) by striking `aid under a State plan approved' and
inserting `assistance under a State program funded'; and
(B) by striking `in accordance with the standards
referred to in section 402(a)(26)(B)(ii)' and inserting `by
the State'.
(4) Section 452(b) (42 U.S.C. 652(b)) is amended in the first
sentence by striking `aid under the State plan approved under
part A' and inserting `assistance under the State program
funded under part A'.
(5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is
amended by striking `1115(c)' and inserting `1115(b)'.
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.
652(g)(2)(A)(ii)(I)) is amended by striking `aid is being paid
under the State's plan approved under part A or E' and
inserting `assistance is being provided under the State program
funded under part A'.
(7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended
in the matter following clause (iii) by striking `aid was being
paid under the State's plan approved under part A or E' and
inserting `assistance was being provided under the State
program funded under part A'.
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in the
matter following subparagraph (B)--
(A) by striking `who is a dependent child' and inserting
`with respect to whom assistance is being provided under
the State program funded under part A';
(B) by inserting `by the State' after `found'; and
(C) by striking `to have good cause for refusing to
cooperate under section 402(a)(26)' and inserting `to
qualify for a good cause or other exception to cooperation
pursuant to section 454(29)'.
(9) Section 452(h) (42 U.S.C. 652(h)) is amended by striking
`under section 402(a)(26)' and inserting `pursuant to section
408(a)(3)'.
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by
striking `aid under part A of this title' and inserting
`assistance under a State program funded under part A'.
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A)) is amended--
(A) by striking `under section 402(a)(26)' and inserting
`pursuant to section 408(a)(3)'; and
(B) by striking `; except that this paragraph shall not
apply to such payments for any month following the first
month in which the amount collected is sufficient to make
such family ineligible for assistance under the State plan
approved under part A;' and inserting a comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended by
striking `aid under a State plan approved' and inserting
`assistance under a State program funded'.
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by
striking `under section 402(a)(26)'.
(14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended
by striking `402(a)(26)' and inserting `408(a)(3)'.
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by
striking `aid' and inserting `assistance under a State program
funded'.
(16) Section 469(a) (42 U.S.C. 669(a)) is amended--
(A) by striking `aid under plans approved' and inserting
`assistance under State programs funded'; and
(B) by striking `such aid' and inserting `such assistance'.
(d) AMENDMENTS TO PART E OF TITLE IV-
(1) Section 470 (42 U.S.C. 670) is amended--
(A) by striking `would be' and inserting `would have
been'; and
(B) by inserting `(as such plan was in effect on June 1,
1995)' after `part A'.
(2) Section 471(a)(17) (42 U.S.C. 671(a)(17)) is amended by
striking `plans approved under parts A and D' and inserting
`program funded under part A and plan approved under part D'.
(3) Section 472(a) (42 U.S.C. 672(a)) is amended--
(A) in the matter preceding paragraph (1)--
(i) by striking `would meet' and inserting `would
have met';
(ii) by inserting `(as such sections were in effect
on June 1, 1995)' after `407'; and
(iii) by inserting `(as so in effect)' after
`406(a)'; and
(B) in paragraph (4)--
(i) in subparagraph (A)--
(I) by inserting `would have' after `(A)'; and
(II) by inserting `(as in effect on June 1, 1995)' after `section
402'; and
(ii) in subparagraph (B)(ii), by inserting `(as in
effect on June 1, 1995)' after `406(a)'.
(4) Section 472(h) (42 U.S.C. 672(h)) is amended to read as
follows:
`(h)(1) For purposes of title XIX, any child with respect to whom
foster care maintenance payments are made under this section is
deemed to be a dependent child as defined in section 406 (as in
effect as of June 1, 1995) and deemed to be a recipient of aid to
families with dependent children under part A of this title (as so
in effect). For purposes of title XX, any child with respect to
whom foster care maintenance payments are made under this section
is deemed to be a minor child in a needy family under a State
program funded under part A of this title and is deemed to be a
recipient of assistance under such part.
`(2) For purposes of paragraph (1), a child whose costs in a
foster family home or child care institution are covered by the
foster care maintenance payments being made with respect to the
child's minor parent, as provided in section 475(4)(B), shall be
considered a child with respect to whom foster care maintenance
payments are made under this section.'.
(5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is amended--
(A) in subparagraph (A)(i)--
(i) by inserting `(as such sections were in effect on
June 1, 1995)' after `407';
(ii) by inserting `(as so in effect)' after
`specified in section 406(a)'; and
(iii) by inserting `(as such section was in effect on
June 1, 1995)' after `403';
(B) in subparagraph (B)(i)--
(i) by inserting `would have' after `(B)(i)'; and
(ii) by inserting `(as in effect on June 1, 1995)'
after `section 402'; and
(C) in subparagraph (B)(ii)(II), by inserting `(as in
effect on June 1, 1995)' after `406(a)'.
(6) Section 473(b) (42 U.S.C. 673(b)) is amended to read as
follows:
`(b)(1) For purposes of title XIX, any child who is described in
paragraph (3) is deemed to be a dependent child as defined in
section 406 (as in effect as of June 1, 1995) and deemed to be a
recipient of aid to families with dependent children under part A
of this title (as so in effect) in the State where such child
resides.
`(2) For purposes of title XX, any child who is described in
paragraph (3) is deemed to be a minor child in a needy family under
a State program funded under part A of this title and deemed to be
a recipient of assistance under such part.
`(3) A child described in this paragraph is any child--
`(A)(i) who is a child described in subsection (a)(2), and
`(ii) with respect to whom an adoption assistance agreement
is in effect under this section (whether or 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.
(f) AMENDMENT TO TITLE X- Section 1002(a)(7) (42 U.S.C.
1202(a)(7)) is amended by striking `aid to families with dependent
children under the State plan approved under section 402 of this
Act' and inserting `assistance under a State program funded under
part A of title IV'.
(g) AMENDMENTS TO TITLE XI-
(1) Section 1109 (42 U.S.C. 1309) is amended by striking `or
part A of title IV,'.
(2) Section 1115 (42 U.S.C. 1315) is amended--
(A) in subsection (a)(2)--
(i) by inserting `(A)' after `(2)';
(ii) by striking `403,';
(iii) by striking the period at the end and inserting
`, and'; and
(iv) by adding at the end the following new
subparagraph:
`(B) costs of such project which would not otherwise be a
permissible use of funds under part A of title IV and which are
not included as part of the costs of projects under section
1110, shall to the extent and for the period prescribed by the
Secretary, be regarded as a permissible use of funds under such
part.';
(B) in subsection (c)(3), by striking `the program of aid
to families with dependent children' and inserting `part A
of such title'; and
(C) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c),
respectively.
(3) Section 1116 (42 U.S.C. 1316) is amended--
(A) in each of subsections (a)(1), (b), and (d), by
striking `or part A of title IV,'; and
(B) in subsection (a)(3), by striking `404,'.
(4) Section 1118 (42 U.S.C. 1318) is amended--
(A) by striking `403(a),';
(B) by striking `and part A of title IV,'; and
(C) by striking `, and shall, in the case of American
Samoa, mean 75 per centum with respect to part A of title
IV'.
(5) Section 1119 (42 U.S.C. 1319) is amended--
(A) by striking `or part A of title IV'; and
(B) by striking `403(a),'.
(6) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by
striking `or part A of title IV,'.
(7) Section 1136 (42 U.S.C. 1320b-6) is repealed.
(8) Section 1137 (42 U.S.C. 1320b-7) is amended--
(A) in subsection (b), by striking paragraph (1) and
inserting the following:
`(1) any State program funded under part A of title IV of
this Act;'; and
(B) in subsection (d)(1)(B)--
(i) by striking `In this subsection--' and all that
follows through `(ii) in' and inserting `In this
subsection, in';
(ii) by redesignating subclauses (I), (II), and (III)
as clauses (i), (ii), and (iii); and
(iii) by moving such redesignated material 2 ems to
the left.
(h) AMENDMENT TO TITLE XIV- Section 1402(a)(7) (42 U.S.C.
1352(a)(7)) is amended by striking `aid to families with dependent
children under the State plan approved under section 402 of this
Act' and inserting `assistance under a State program funded under
part A of title IV'.
(i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH RESPECT TO THE
TERRITORIES- Section 1602(a)(11), as in effect without regard to
the amendment made by section 301 of the Social Security Amendments
of 1972 (42 U.S.C. 1382 note), is amended by striking `aid under
the State plan approved' and inserting `assistance under a State
program funded'.
(j) AMENDMENT TO TITLE XVI AS IN EFFECT WITH RESPECT TO THE
STATES- Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is amended
to read as follows: `(A) a State program funded under part A of
title IV,'.
(k) AMENDMENT TO TITLE XIX- Section 1902(j) (42 U.S.C. 1396a(j))
is amended by striking `1108(c)' and inserting `1108(f)'.
SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 AND
RELATED PROVISIONS.
(a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is
amended--
(1) in the second sentence of subsection (a), by striking
`plan approved' and all that follows through `title IV of the
Social Security Act' and inserting `program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et seq.)';
(2) in subsection (d)--
(A) in paragraph (5), by striking `assistance to families
with dependent children' and inserting `assistance under a
State program funded'; and
(B) by striking paragraph (13) and redesignating
paragraphs (14), (15), and (16) as paragraphs (13), (14),
and (15), respectively;
(3) in subsection (j), by striking `plan approved under part
A of title IV of such Act (42 U.S.C. 601 et seq.)' and
inserting `program funded under part A of title IV of the Act
(42 U.S.C. 601 et seq.)'; and
(4) by striking subsection (m).
(b) Section 6 of such Act (7 U.S.C. 2015) is amended--
(1) in subsection (c)(5), by striking `the State plan
approved' and inserting `the State program funded'; and
(2) in subsection (e)(6), by striking `aid to families with
dependent children' and inserting `benefits under a State
program funded'.
(c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended
by striking `State plans under the Aid to Families with Dependent
Children Program under' and inserting `State programs funded under
part A of'.
(d) Section 17 of such Act (7 U.S.C. 2026) is amended--
(1) in the first sentence of subsection (b)(1)(A), by
striking `to aid to families with dependent children under part
A of title IV of the Social Security Act' and inserting `or are
receiving assistance under a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et
seq.)'; and
(2) in subsection (b)(3), by adding at the end the following
new subparagraph:
`(I) The Secretary may not grant a waiver under this paragraph on
or after the date of enactment of this subparagraph. Any reference
in this paragraph to a provision of title IV of the Social Security
Act shall be deemed to be a reference to such provision as in
effect on the day before such date.';
(e) Section 20 of such Act (7 U.S.C. 2029) is amended--
(1) in subsection (a)(2)(B) by striking `operating--' and all
that follows through `(ii) any other' and inserting `operating
any'; and
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking `(b)(1) A household' and inserting
`(b) A household'; and
(ii) in subparagraph (B), by striking `training
program' and inserting `activity';
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A) through (F) as
paragraphs (1) through (6), respectively.
(f) Section 5(h)(1) of the Agriculture and Consumer Protection
Act of 1973 (Public Law 93-186; 7 U.S.C. 612c note) is amended by
striking `the program for aid to families with dependent children'
and inserting `the State program funded'.
(g) Section 9 of the National School Lunch Act (42 U.S.C. 1758)
is amended--
(1) in subsection (b)--
(A) in paragraph (2)(C)(ii)(II)--
(i) by striking `program for aid to families with
dependent children' and inserting `State program
funded'; and
(ii) by inserting before the period at the end the
following: `that the Secretary determines complies with
standards established by the Secretary that ensure that
the standards under the State program are comparable to
or more restrictive than those in effect on June 1,
1995'; and
(B) in paragraph (6)--
(i) in subparagraph (A)(ii)--
(I) by striking `an AFDC assistance unit (under the aid to
families with dependent children program authorized' and inserting
`a family (under the State program funded'; and
(II) by striking `, in a State' and all that follows through
`9902(2)))' and inserting `that the Secretary determines complies
with standards established by the Secretary that ensure that the
standards under the State program are comparable to or more
restrictive than those in effect on June 1, 1995'; and
(ii) in subparagraph (B), by striking `aid to
families with dependent children' and inserting
`assistance under the State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601
et seq.) that the Secretary determines complies with
standards established by the Secretary that ensure that
the standards under the State program are comparable to
or more restrictive than those in effect on June 1,
1995'; and
(2) in subsection (d)(2)(C)--
(A) by striking `program for aid to families with
dependent children' and inserting `State program funded'; and
(B) by inserting before the period at the end the
following: `that the Secretary determines complies with
standards established by the Secretary that ensure that the
standards under the State program are comparable to or more
restrictive than those in effect on June 1, 1995'.
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
(1) by striking `program for aid to families with dependent
children established' and inserting `State program funded'; and
(2) by inserting before the semicolon the following: `that
the Secretary determines complies with standards established by
the Secretary that ensure that the standards under the State
program are comparable to or more restrictive than those in
effect on June 1, 1995'.
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemployment
Compensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94-566;
90 Stat. 2689) is amended to read as follows:
`(b) PROVISION FOR REIMBURSEMENT OF EXPENSES- For purposes of
section 455 of the Social Security Act, expenses incurred to
reimburse State employment offices for furnishing information
requested of such offices--
`(1) pursuant to the third sentence of section 3(a) of the
Act entitled `An Act to provide for the establishment of a
national employment system and for cooperation with the States
in the promotion of such system, and for other purposes',
approved June 6, 1933 (29 U.S.C. 49b(a)), or
`(2) by a State or local agency charged with the duty of
carrying a State plan for child support approved under part D
of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the
administration of such State plan.'.
(b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987
(42 U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987
(42 U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Recovery Act of
1983 (42 U.S.C. 602 note), relating to treatment under AFDC of
certain rental payments for federally assisted housing, is repealed.
(e) Section 159 of the Tax Equity and Fiscal Responsibility Act
of 1982 (42 U.S.C. 602 note) is repealed.
(f) Section 202(d) of the Social Security Amendments of 1967 (81
Stat. 882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 (42 U.S.C. 11381 note), relating to
demonstration projects to reduce number of AFDC families in welfare
hotels, is amended--
(1) in subsection (a), by striking `aid to families with
dependent children under a State plan approved' and inserting
`assistance under a State program funded'; and
(2) in subsection (c), by striking `aid to families with
dependent children in the State under a State plan approved'
and inserting `assistance in the State under a State program
funded'.
(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is
amended--
(1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by
striking `(Aid to Families with Dependent Children)'; and
(2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by
striking `aid to families with dependent children under a State
plan approved' and inserting `assistance under a State program
funded'.
(i) The Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2301 et seq.) is amended--
(1) in section 231(d)(3)(A)(ii) (20 U.S.C.
2341(d)(3)(A)(ii)), by striking `The program for aid to
dependent children' and inserting `The State program funded';
(2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by
striking `the program for aid to families with dependent
children' and inserting `the State program funded'; and
(3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)),
by striking `the program for aid to families with dependent
children' and inserting `the State program funded'.
(j) The Elementary and Secondary Education Act of 1965 (20 U.S.C.
2701 et seq.) is amended--
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking
`Aid to Families with Dependent Children program' and inserting
`State program funded under part A of title IV of the Social
Security Act';
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking
`the program of aid to families with dependent children under a
State plan approved under' and inserting `a State program
funded under part A of'; and
(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--
(A) in subparagraph (A)(xi), by striking `Aid to Families
with Dependent Children benefits' and inserting `assistance
under a State program funded under part A of title IV of
the Social Security Act'; and
(B) in subparagraph (B)(viii), by striking `Aid to
Families with Dependent Children' and inserting `assistance
under the State program funded under part A of title IV of
the Social Security Act'.
(k) The 4th proviso of chapter VII of title I of Public Law 99-88
(25 U.S.C. 13d-1) is amended to read as follows: ` [Italic->]
Provided further, [<-Italic] That general assistance payments made
by the Bureau of Indian Affairs shall be made--
`(1) after April 29, 1985, and before October 1, 1995, on the
basis of Aid to Families with Dependent Children (AFDC)
standards of need; and
`(2) on and after October 1, 1995, on the basis of standards
of need established under the State program funded under part A
of title IV of the Social Security Act,
except that where a State ratably reduces its AFDC or State program
payments, the Bureau shall reduce general assistance payments in
such State by the same percentage as the State has reduced the AFDC
or State program payment.'.
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is
amended--
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all
that follows `agency as' and inserting `being eligible for
financial assistance under part A of title IV of the Social
Security Act and as having continually received such financial
assistance during the 90-day period which immediately precedes
the date on which such individual is hired by the employer.';
(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by
striking `eligibility for aid or services,' and all that
follows through `children approved' and inserting `eligibility
for assistance, or the amount of such assistance, under a State
program funded';
(3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)),
by striking `aid to families with dependent children provided
under a State plan approved' and inserting `a State program
funded';
(4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))--
(A) by striking `(c) or (d)' each place it appears and
inserting `(c), (d), or (e)'; and
(B) by adding at the end of subparagraph (B) the
following new sentence: `Any return information disclosed
with respect to section 6402(e) shall only be disclosed to
officers and employees of the State agency requesting such
information.';
(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the
matter preceding subparagraph (A)--
(A) by striking `(5), (10)' and inserting `(5)'; and
(B) by striking `(9), or (12)' and inserting `(9), (10),
or (12)';
(6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by
striking `(relating to aid to families with dependent children)';
(7) in section 6402 (26 U.S.C. 6402)--
(A) in subsection (a), by striking `(c) and (d)' and
inserting `(c), (d), and (e)';
(B) by redesignating subsections (e) through (i) as
subsections (f) through (j), respectively; and
(C) by inserting after subsection (d) the following:
`(e) COLLECTION OF OVERPAYMENTS UNDER TITLE IV-A OF THE SOCIAL
SECURITY ACT- The amount of any overpayment to be refunded to the
person making the overpayment shall be reduced (after reductions
pursuant to subsections (c) and (d), but before a credit against
future liability for an internal revenue tax) in accordance with
section 405(e) of the Social Security Act (concerning recovery of
overpayments to individuals under State plans approved under part A
of title IV of such Act).'; and
(8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by
striking `aid to families with dependent children' and
inserting `assistance under a State program funded under part A
of title IV of the Social Security Act'.
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is
amended by striking `State plan approved under part A of title IV'
and inserting `State program funded under part A of title IV'.
(n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is
amended--
(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by
striking `(42 U.S.C. 601 et seq.)';
(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by
striking `State aid to families with dependent children
records,' and inserting `records collected under the State
program funded under part A of title IV of the Social Security
Act,';
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--
(A) by striking `the JOBS program' and inserting `the
work activities required under title IV of the Social
Security Act'; and
(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))--
(A) in paragraph (1)(E), by repealing clause (vi); and
(B) in paragraph (2)(D), by repealing clause (v);
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking
`, including recipients under the JOBS program';
(6) in subparagraphs (A) and (B) of section 204(a)(1) (29
U.S.C. 1604(a)(1) (A) and (B)), by striking `(such as the JOBS
program)' each place it appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by striking
paragraph (4) and inserting the following:
`(4) the portions of title IV of the Social Security Act
relating to work activities;';
(8) in section 253 (29 U.S.C. 1632)--
(A) in subsection (b)(2), by repealing subparagraph (C);
and
(B) in paragraphs (1)(B) and (2)(B) of subsection (c), by
striking `the JOBS program or' each place it appears;
(9) in section 264 (29 U.S.C. 1644)--
(A) in subparagraphs (A) and (B) of subsection (b)(1), by
striking `(such as the JOBS program)' each place it
appears; and
(B) in subparagraphs (A) and (B) of subsection (d)(3), by
striking `and the JOBS program' each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by striking
paragraph (6) and inserting the following:
`(6) the portion of title IV of the Social Security Act
relating to work activities;';
(11) in the second sentence of section 429(e) (29 U.S.C.
1699(e)), by striking `and shall be in an amount that does not
exceed the maximum amount that may be provided by the State
pursuant to section 402(g)(1)(C) of the Social Security Act (42
U.S.C. 602(g)(1)(C))';
(12) in section 454(c) (29 U.S.C. 1734(c)), by striking `JOBS
and';
(13) in section 455(b) (29 U.S.C. 1735(b)), by striking `the
JOBS program,';
(14) in section 501(1) (29 U.S.C. 1791(1)), by striking `aid
to families with dependent children under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.)' and inserting
`assistance under the State program funded under part A of
title IV of the Social Security Act';
(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by
striking `aid to families with dependent children' and
inserting `assistance under the State program funded';
(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by
striking `aid to families with dependent children' and
inserting `assistance under the State program funded'; and
(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))--
(A) in clause (v), by striking the semicolon and
inserting `; and'; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is
amended to read as follows:
`(iv) assistance under a State program funded under part A of
title IV of the Social Security Act;'.
(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to
read as follows:
`(i) assistance under the State program funded under
part A of title IV of the Social Security Act;'.
(q) Section 303(f)(2) of the Family Support Act of 1988 (42
U.S.C. 602 note) is amended--
(1) by striking `(A)'; and
(2) by striking subparagraphs (B) and (C).
(r) The Balanced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 900 et seq.) is amended--
(1) in the first section 255(h) (2 U.S.C. 905(h)), by
striking `Aid to families with dependent children
(75-0412-0-1-609);' and inserting `Block grants to States for
temporary assistance for needy families;'; and
(2) in section 256 (2 U.S.C. 906)--
(A) by striking subsection (k); and
(B) by redesignating subsection (l) as subsection (k).
(s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.)
is amended--
(1) in section 210(f) (8 U.S.C. 1160(f)), by striking `aid
under a State plan approved under' each place it appears and
inserting `assistance under a State program funded under';
(2) in section 245A(h) (8 U.S.C. 1255a(h))--
(A) in paragraph (1)(A)(i), by striking `program of aid
to families with dependent children' and inserting `State
program of assistance'; and
(B) in paragraph (2)(B), by striking `aid to families
with dependent children' and inserting `assistance under a
State program funded under part A of title IV of the Social
Security Act'; and
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking
`State plan approved' and inserting `State program funded'.
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C.
9835(a)(4)(B)(i)) is amended by striking `program of aid to
families with dependent children under a State plan approved' and
inserting `State program of assistance funded'.
(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter
92; 25 U.S.C. 639) is repealed.
(v) Subparagraph (E) of section 213(d)(6) of the School-To-Work
Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read
as follows:
`(E) part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) relating to work activities;'.
(w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States
Code, is amended by striking `section 464 or 1137 of the Social
Security Act' and inserting `section 404(e), 464, or 1137 of the
Social Security Act'.
SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT SOCIAL
SECURITY CARD REQUIRED.
(a) DEVELOPMENT-
(1) IN GENERAL- The Commissioner of Social Security (in this
section referred to as the `Commissioner') shall, in accordance
with this section, develop a prototype of a
counterfeit-resistant social security card. Such prototype card
shall--
(A) be made of a durable, tamper-resistant material such
as plastic or polyester,
(B) employ technologies that provide security features,
such as magnetic stripes, holograms, and integrated
circuits, and
(C) be developed so as to provide individuals with
reliable proof of citizenship or legal resident alien status.
(2) ASSISTANCE BY ATTORNEY GENERAL- The Attorney General of
the United States shall provide such information and assistance
as the Commissioner deems necessary to enable the Commissioner
to comply with this section.
(b) STUDY AND REPORT-
(1) IN GENERAL- The Commissioner shall conduct a study and
issue a report to Congress which examines different methods of
improving the social security card application process.
(2) ELEMENTS OF STUDY- The study shall include an evaluation
of the cost and work load implications of issuing a
counterfeit-resistant social security card for all individuals
over a 3-, 5-, and 10-year period. The study shall also
evaluate the feasibility and cost implications of imposing a
user fee for replacement cards and cards issued to individuals
who apply for such a card prior to the scheduled 3-, 5-, and
10-year phase-in options.
(3) DISTRIBUTION OF REPORT- The Commissioner shall submit
copies of the report described in this subsection along with a
facsimile of the prototype card as described in subsection (a)
to the Committees on Ways and Means and Judiciary of the House
of Representatives and the Committees on Finance and Judiciary
of the Senate within 1 year after the date of the enactment of
this Act.
SEC. 112. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN
LOW-INCOME INDIVIDUALS PROGRAM.
Section 505 of the Family Support Act of 1988 (42 U.S.C. 1315
note) is amended--
(1) in the heading, by striking `demonstration';
(2) by striking `demonstration' each place such term appears;
(3) in subsection (a), by striking `in each of fiscal years'
and all that follows through `10' and inserting `shall enter
into agreements with';
(4) in subsection (b)(3), by striking `aid to families with
dependent children under part A of title IV of the Social
Security Act' and inserting `assistance under the program
funded part A of title IV of the Social Security Act of the
State in which the individual resides';
(5) in subsection (c)--
(A) in paragraph (1)(C), by striking `aid to families
with dependent children under title IV of the Social
Security Act' and inserting `assistance under a State
program funded part A of title IV of the Social Security
Act';
(B) in paragraph (2), by striking `aid to families with
dependent children under title IV of such Act' and
inserting `assistance under a State program funded part A
of title IV of the Social Security Act';
(6) in subsection (d), by striking `job opportunities and
basic skills training program (as provided for under title IV
of the Social Security Act)' and inserting `the State program
funded under part A of title IV of the Social Security Act'; and
(7) by striking subsections (e) through (g) and inserting the
following:
`(e) AUTHORIZATION OF APPROPRIATIONS- For the purpose of
conducting projects under this section, there is authorized to be
appropriated an amount not to exceed $25,000,000 for any fiscal
year.'.
SEC. 113. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR
TECHNICAL AND CONFORMING AMENDMENTS.
Not later than 90 days after the date of the enactment of this
Act, the Secretary of Health and Human Services and the
Commissioner of Social Security, in consultation, as appropriate,
with the heads of other Federal agencies, shall submit to the
appropriate committees of Congress a legislative proposal proposing
such technical and conforming amendments as are necessary to bring
the law into conformity with the policy embodied in this title.
SEC. 114. ASSURING MEDICAID COVERAGE FOR LOW-INCOME FAMILIES.
(a) IN GENERAL- Title XIX is amended--
(1) by redesignating section 1931 as section 1932; and
(2) by inserting after section 1930 the following new section:
`ASSURING COVERAGE FOR CERTAIN LOW-INCOME FAMILIES
`SEC. 1931. (a) REFERENCES TO TITLE IV-A ARE REFERENCES TO
PRE-WELFARE-REFORM PROVISIONS- Subject to the succeeding provisions
of this section, with respect to a State any reference in this
title (or any other provision of law in relation to the operation
of this title) to a provision of part A of title IV, or a State
plan under such part (or a provision of such a plan), including
income and resource standards and income and resource methodologies
under such part or plan, shall be considered a reference to such a
provision or plan as in effect as of July 16, 1996, with respect to
the State.
`(b) APPLICATION OF PRE-WELFARE-REFORM ELIGIBILITY CRITERIA-
`(1) IN GENERAL- For purposes of this title, subject to
paragraphs (2) and (3), in determining eligibility for medical
assistance--
`(A) an individual shall be treated as receiving aid or
assistance under a State plan approved under part A of
title IV only if the individual meets--
`(i) the income and resource standards for
determining eligibility under such plan, and
`(ii) the eligibility requirements of such plan under
subsections (a) through (c) of section 406 and section
407(a),
as in effect as of July 16, 1996; and
`(B) the income and resource methodologies under such
plan as of such date shall be used in the determination of
whether any individual meets income and resource standards
under such plan.
`(2) STATE OPTION- For purposes of applying this section, a
State--
`(A) may lower its income standards applicable with
respect to part A of title IV, but not below the income
standards applicable under its State plan under such part
on May 1, 1988;
`(B) may increase income or resource standards under the
State plan referred to in paragraph (1) over a period
(beginning after July 16, 1996) by a percentage that does
not exceed the percentage increase in the Consumer Price
Index for all urban consumers (all items; 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.
`(2) TRANSITION IN THE CASE OF EARNINGS FROM EMPLOYMENT- For
continued medical assistance in the case of individuals (and
families composed of individuals) described in subsection
(b)(1)(A) who would otherwise become ineligible because of
hours or income from employment, see sections 1925 and
1902(e)(1).
`(d) WAIVERS- In the case of a waiver of a provision of part A of
title IV in effect with respect to a State as of July 16, 1996, or
which is submitted to the Secretary before the date of the
enactment of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 and approved by the Secretary on or
before July 1, 1997, if the waiver affects eligibility of
individuals for medical assistance under this title, such waiver
may (but need not) continue to be applied, at the option of the
State, in relation to this title after the date the waiver would
otherwise expire.
`(e) STATE OPTION TO USE 1 APPLICATION FORM- Nothing in this
section, or part A of title IV, shall be construed as preventing a
State from providing for the same application form for assistance
under a State program funded under part A of title IV (on or after
the welfare reform effective date) and for medical assistance under
this title.
`(f) ADDITIONAL RULES OF CONSTRUCTION-
`(1) With respect to the reference in section 1902(a)(5) to a
State plan approved under part A of title IV, a State may treat
such reference as a reference either to a State program funded
under such part (as in effect on and after the welfare reform
effective date) or to the State plan under this title.
`(2) Any reference in section 1902(a)(55) to a State plan
approved under part A of title IV shall be deemed a reference
to a State program funded under such part.
`(3) In applying section 1903(f), the applicable income
limitation otherwise determined shall be subject to increase in
the same manner as income or resource standards of a State may
be increased under subsection (b)(2)(B).
`(g) RELATION TO OTHER PROVISIONS- The provisions of this section
shall apply notwithstanding any other provision of this Act.
`(h) TRANSITIONAL INCREASED FEDERAL MATCHING RATE FOR INCREASED
ADMINISTRATIVE COSTS-
`(1) IN GENERAL- Subject to the succeeding provisions of this
subsection, the Secretary shall provide that with respect to
administrative expenditures described in paragraph (2) the per
centum specified in section 1903(a)(7) shall be increased to
such percentage as the Secretary specifies.
`(2) ADMINISTRATIVE EXPENDITURES DESCRIBED- The
administrative expenditures described in this paragraph are
expenditures described in section 1903(a)(7) that a State
demonstrates to the satisfaction of the Secretary are
attributable to administrative costs of eligibility
determinations that (but for the enactment of this section)
would not be incurred.
`(3) LIMITATION- The total amount of additional Federal funds
that are expended as a result of the application of this
subsection for the period beginning with fiscal year 1997 and
ending with fiscal year 2000 shall not exceed $500,000,000. In
applying this paragraph, the Secretary shall ensure the
equitable distribution of additional funds among the States.
`(4) TIME LIMITATION- This subsection shall only apply with
respect to a State for expenditures incurred during the first
12 calendar quarters in which the State program funded under
part A of title IV (as in effect on and after the welfare
reform effective date) is in effect.
`(i) WELFARE REFORM EFFECTIVE DATE- In this section, the term
`welfare reform effective date' means the effective date, with
respect to a State, of title I of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (as specified in
section 116 of such Act).'.
(b) PLAN AMENDMENT- Section 1902(a) (42 U.S.C. 1396a(a)) is
amended--
(1) by striking `and' at the end of paragraph (61),
(2) by striking the period at the end of paragraph (62) and
inserting `; and', and
(3) by inserting after paragraph (62) the following new
paragraph:
`(63) provide for administration and determinations of
eligibility with respect to individuals who are (or seek to be)
eligible for medical assistance based on the application of
section 1931.'.
(c) EXTENSION OF WORK TRANSITION PROVISIONS- Sections
1902(e)(1)(B) and 1925(f) (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f))
are each amended by striking `1998' and inserting `2001'.
(d) ELIMINATION OF REQUIREMENT OF MINIMUM AFDC PAYMENT LEVELS-
(1) Section 1902(c) (42 U.S.C. 1396a(c)) is amended by striking
`if--' and all that follows and inserting the following: `if the
State requires individuals described in subsection (l)(1) to apply
for assistance under the State program funded under part A of title
IV as a condition of applying for or receiving medical assistance
under this title.'.
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by striking
paragraph (9).
SEC. 115. DENIAL OF ASSISTANCE AND BENEFITS FOR CERTAIN
DRUG-RELATED CONVICTIONS.
(a) IN GENERAL- An individual convicted (under Federal or State
law) of any offense which is classified as a felony by the law of
the jurisdiction involved and which has as an element the
possession, use, or distribution of a controlled substance (as
defined in section 102(6) of the Controlled Substances Act (21
U.S.C. 802(6))) shall not be eligible for--
(1) assistance under any State program funded under part A of
title IV of the Social Security Act, or
(2) benefits under the food stamp program (as defined in
section 3(h) of the Food Stamp Act of 1977) or any State
program carried out under the Food Stamp Act of 1977.
(b) EFFECTS ON ASSISTANCE AND BENEFITS FOR OTHERS-
(1) PROGRAM OF TEMPORARY ASSISTANCE FOR NEEDY FAMILIES- The
amount of assistance otherwise required to be provided under a
State program funded under part A of title IV of the Social
Security Act to the family members of an individual to whom
subsection (a) applies shall be reduced by the amount which
would have otherwise been made available to the individual
under such part.
(2) BENEFITS UNDER THE FOOD STAMP ACT OF 1977- The amount of
benefits otherwise required to be provided to a household under
the food stamp program (as defined in section 3(h) of the Food
Stamp Act of 1977), or any State program carried out under the
Food Stamp Act of 1977, shall be determined by considering the
individual to whom subsection (a) applies not to be a member of
such household, except that the income and resources of the
individual shall be considered to be income and resources of
the household.
(c) ENFORCEMENT- A State that has not exercised its authority
under subsection (d)(1)(A) shall require each individual applying
for assistance or benefits referred to in subsection (a), during
the application process, to state, in writing, whether the
individual, or any member of the household of the individual, has
been convicted of a crime described in subsection (a).
(d) LIMITATIONS-
(1) STATE ELECTIONS-
(A) OPT OUT- A State may, by specific reference in a law
enacted after the date of the enactment of this Act, exempt
any or all individuals domiciled in the State from the
application of subsection (a).
(B) LIMIT PERIOD OF PROHIBITION- A State may, by law
enacted after the date of the enactment of this Act, limit
the period for which subsection (a) shall apply to any or
all individuals domiciled in the State.
(2) INAPPLICABILITY TO CONVICTIONS OCCURRING ON OR BEFORE
ENACTMENT- Subsection (a) shall not apply to convictions
occurring on or before the date of the enactment of this Act.
(e) DEFINITIONS OF STATE- For purposes of this section, the term
`State' has the meaning given it--
(1) in section 419(5) of the Social Security Act, when
referring to assistance provided under a State program funded
under part A of title IV of the Social Security Act, and
(2) in section 3(m) of the Food Stamp Act of 1977, when
referring to the food stamp program (as defined in section 3(h)
of the Food Stamp Act of 1977) or any State program carried out
under the Food Stamp Act of 1977.
(f) RULE OF INTERPRETATION- Nothing in this section shall be
construed to deny the following Federal benefits:
(1) Emergency medical services under title XIX of the Social
Security Act.
(2) Short-term, noncash, in-kind emergency disaster relief.
(3)(A) Public health assistance for immunizations.
(B) Public health assistance for testing and treatment of
communicable diseases if the Secretary of Health and Human
Services determines that it is necessary to prevent the spread
of such disease.
(4) Prenatal care.
(5) Job training programs.
(6) Drug treatment programs.
SEC. 116. EFFECTIVE DATE; TRANSITION RULE.
(a) EFFECTIVE DATES-
(1) IN GENERAL- Except as otherwise provided in this title,
this title and the amendments made by this title shall take
effect on July 1, 1997.
(2) DELAYED EFFECTIVE DATE FOR CERTAIN PROVISIONS-
Notwithstanding any other provision of this section, paragraphs
(2), (3), (4), (5), (8), and (10) of section 409(a) and section
411(a) of the Social Security Act (as added by the amendments
made by section 103(a) of this Act) shall not take effect with
respect to a State until, and shall apply only with respect to
conduct that occurs on or after, the later of--
(A) July 1, 1997; or
(B) the date that is 6 months after the date the
Secretary of Health and Human Services receives from the
State a plan described in section 402(a) of the Social
Security Act (as added by such amendment).
(3) GRANTS TO OUTLYING AREAS- The amendments made by section
103(b) shall take effect on October 1, 1996.
(4) ELIMINATION OF CHILD CARE PROGRAMS- The amendments made
by section 103(c) shall take effect on October 1, 1996.
(5) DEFINITIONS APPLICABLE TO NEW CHILD CARE ENTITLEMENT-
Sections 403(a)(1)(C), 403(a)(1)(D), and 419(4) of the Social
Security Act, as added by the amendments made by section 103(a)
of this Act, shall take effect on October 1, 1996.
(b) TRANSITION RULES- Effective on the date of the enactment of
this Act:
(1) STATE OPTION TO ACCELERATE EFFECTIVE DATE-
(A) IN GENERAL- If the Secretary of Health and Human
Services receives from a State a plan described in section
402(a) of the Social Security Act (as added by the
amendment made by section 103(a)(1) of this Act), then--
(i) on and after the date of such receipt--
(I) except as provided in clause (ii), this title and the
amendments made by this title (other than by section 103(c) of this
Act) shall apply with respect to the State; and
(II) the State shall be considered an eligible State for purposes
of part A of title IV of the Social Security Act (as in effect
pursuant to the amendments made by such section 103(a)); and
(ii) during the period that begins on the date of
such receipt and ends on June 30, 1997, there shall
remain in effect with respect to the State--
(I) section 403(h) of the Social Security Act (as in effect on
September 30, 1995); and
(II) all State reporting requirements under parts A and F of
title IV of the Social Security Act (as in effect on September 30,
1995), modified by the Secretary as appropriate, taking into
account the State program under part A of title IV of the Social
Security Act (as in effect pursuant to the amendments made by such
section 103(a)).
(B) LIMITATIONS ON FEDERAL OBLIGATIONS-
(i) UNDER AFDC PROGRAM- The total obligations of the
Federal Government to a State under part A of title IV
of the Social Security Act (as in effect on September
30, 1995) with respect to expenditures in fiscal year
1997 shall not exceed an amount equal to the State
family assistance grant.
(ii) UNDER TEMPORARY FAMILY ASSISTANCE PROGRAM-
Notwithstanding section 403(a)(1) of the Social
Security Act (as in effect pursuant to the amendments
made by section 103(a) of this Act), the total
obligations of the Federal Government to a State under
such section 403(a)(1)--
(I) for fiscal year 1996, shall be an amount equal to--
(aa) the State family assistance grant; multiplied by
(bb) 1/366 of the number of days during the period that begins
on the date the Secretary of Health and Human Services first
receives from the State a plan described in section 402(a) of the
Social Security Act (as added by the amendment made by section
103(a)(1) of this Act) and ends on September 30, 1996; and
(II) for fiscal year 1997, shall be an amount equal to the lesser
of--
(aa) the amount (if any) by which the State family assistance
grant exceeds the total obligations of the Federal Government to
the State under part A of title IV of the Social Security Act (as
in effect on September 30, 1995) with respect to expenditures in
fiscal year 1997; or
(bb) the State family assistance grant, multiplied by 1/365 of
the number of days during the period that begins on October 1,
1996, or the date the Secretary of Health and Human Services first
receives from the State a plan described in section 402(a) of the
Social Security Act (as added by the amendment made by section
103(a)(1) of this Act), whichever is later, and ends on September
30, 1997.
(iii) CHILD CARE OBLIGATIONS EXCLUDED IN DETERMINING
FEDERAL AFDC OBLIGATIONS- As used in this subparagraph,
the term `obligations of the Federal Government to the
State under part A of title IV of the Social Security
Act' does not include any obligation of the Federal
Government with respect to child care expenditures by
the State.
(C) SUBMISSION OF STATE PLAN FOR FISCAL YEAR 1996 OR 1997
DEEMED ACCEPTANCE OF GRANT LIMITATIONS AND FORMULA AND
TERMINATION OF AFDC ENTITLEMENT- The submission of a plan
by a State pursuant to subparagraph (A) is deemed to
constitute--
(i) the State's acceptance of the grant reductions
under subparagraph (B) (including the formula for
computing the amount of the reduction); and
(ii) the termination of any entitlement of any
individual or family to benefits or services under the
State AFDC program.
(D) DEFINITIONS- As used in this paragraph:
(i) STATE AFDC PROGRAM- The term `State AFDC program'
means the State program under parts A and F of title IV
of the Social Security Act (as in effect on September
30, 1995).
(ii) STATE- The term `State' means the 50 States and
the District of Columbia.
(iii) STATE FAMILY ASSISTANCE GRANT- The term `State
family assistance grant' means the State family
assistance grant (as defined in section 403(a)(1)(B) of
the Social Security Act, as added by the amendment made
by section 103(a)(1) of this Act).
(2) CLAIMS, ACTIONS, AND PROCEEDINGS- The amendments made by
this title shall not apply with respect to--
(A) powers, duties, functions, rights, claims, penalties,
or obligations applicable to aid, assistance, or services
provided before the effective date of this title under the
provisions amended; and
(B) administrative actions and proceedings commenced
before such date, or authorized before such date to be
commenced, under such provisions.
(3) CLOSING OUT ACCOUNT FOR THOSE PROGRAMS TERMINATED OR
SUBSTANTIALLY MODIFIED BY THIS TITLE- In closing out accounts,
Federal and State officials may use scientifically acceptable
statistical sampling techniques. Claims made with respect to
State expenditures under a State plan approved under part A of
title IV of the Social Security Act (as in effect on September
30, 1995) with respect to assistance or services provided on or
before September 30, 1995, shall be treated as claims with
respect to expenditures during fiscal year 1995 for purposes of
reimbursement even if payment was made by a State on or after
October 1, 1995. Each State shall complete the filing of all
claims under the State plan (as so in effect) within 2 years
after the date of the enactment of this Act. The head of each
Federal department shall--
(A) use the single audit procedure to review and resolve
any claims in connection with the close out of programs
under such State plans; and
(B) reimburse States for any payments made for assistance
or services provided during a prior fiscal year from funds
for fiscal year 1995, rather than from funds authorized by
this title.
(4) CONTINUANCE IN OFFICE OF ASSISTANT SECRETARY FOR FAMILY
SUPPORT- The individual who, on the day before the effective
date of this title, is serving as Assistant Secretary for
Family Support within the Department of Health and Human
Services shall, until a successor is appointed to such position--
(A) continue to serve in such position; and
(B) except as otherwise provided by law--
(i) continue to perform the functions of the
Assistant Secretary for Family Support under section
417 of the Social Security Act (as in effect before
such effective date); and
(ii) have the powers and duties of the Assistant
Secretary for Family Support under section 416 of the
Social Security Act (as in effect pursuant to the
amendment made by section 103(a)(1) of this Act).
(c) TERMINATION OF ENTITLEMENT UNDER AFDC PROGRAM- Effective
October 1, 1996, no individual or family shall be entitled to any
benefits or services under any State plan approved under part A or
F of title IV of the Social Security Act (as in effect on September
30, 1995).
TITLE II--SUPPLEMENTAL SECURITY INCOME
SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title
an amendment is expressed in terms of an amendment to or repeal of
a section or other provision, the reference shall be considered to
be made to that section or other provision of the Social Security
Act.
SUBTITLE A--ELIGIBILITY RESTRICTIONS
SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS FOUND
TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE IN
ORDER TO OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR
MORE STATES.
(a) IN GENERAL- Section 1611(e) (42 U.S.C. 1382(e)), as amended
by section 105(b)(4)(A) of the Contract with America Advancement
Act of 1996, is amended by redesignating paragraph (5) as paragraph
(3) and by adding at the end the following new paragraph:
`(4)(A) No person shall be considered an eligible individual or
eligible spouse for purposes of this title during the 10-year
period that begins on the date the person is convicted in Federal
or State court of having made a fraudulent statement or
representation with respect to the place of residence of the person
in order to receive assistance simultaneously from 2 or more States
under programs that are funded under title IV, title XIX, or the
Food Stamp Act of 1977, or benefits in 2 or more States under the
supplemental security income program under this title.
`(B) As soon as practicable after the conviction of a person in a
Federal or State court as described in subparagraph (A), an
official of such court shall notify the Commissioner of such
conviction.'.
(b) EFFECTIVE DATE- The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBATION
AND PAROLE VIOLATORS.
(a) IN GENERAL- Section 1611(e) (42 U.S.C. 1382(e)), as amended
by section 201(a) of this Act, is amended by adding at the end the
following new paragraph:
`(5) No person shall be considered an eligible individual or
eligible spouse for purposes of this title with respect to any
month if during such month the person is--
`(A) fleeing to avoid prosecution, or custody or confinement
after conviction, under the laws of the place from which the
person flees, for a crime, or an attempt to commit a crime,
which is a felony under the laws of the place from which the
person flees, or which, in the case of the State of New Jersey,
is a high misdemeanor under the laws of such State; or
`(B) violating a condition of probation or parole imposed
under Federal or State law.'.
(b) EXCHANGE OF INFORMATION- Section 1611(e) (42 U.S.C. 1382(e)),
as amended by section 201(a) of this Act and subsection (a) of this
section, is amended by adding at the end the following new paragraph:
`(6) Notwithstanding any other provision of law (other than
section 6103 of the Internal Revenue Code of 1986), the
Commissioner shall furnish any Federal, State, or local law
enforcement officer, upon the written request of the officer, with
the current address, Social Security number, and photograph (if
applicable) of any recipient of benefits under this title, if the
officer furnishes the Commissioner with the name of the recipient,
and other identifying information as reasonably required by the
Commissioner to establish the unique identity of the recipient, and
notifies the Commissioner that--
`(A) the recipient--
`(i) is described in subparagraph (A) or (B) of paragraph
(5); and
`(ii) has information that is necessary for the officer
to conduct the officer's official duties; and
`(B) the location or apprehension of the recipient is within
the officer's official duties.'.
(c) EFFECTIVE DATE- The amendments made by this section shall
take effect on the date of the enactment of this Act.
SEC. 203. TREATMENT OF PRISONERS.
(a) IMPLEMENTATION OF PROHIBITION AGAINST PAYMENT OF BENEFITS TO
PRISONERS-
(1) IN GENERAL- Section 1611(e)(1) (42 U.S.C. 1382(e)(1)) is
amended by adding at the end the following new subparagraph:
`(I)(i) The Commissioner shall enter into an agreement, with any
interested State or local institution described in clause (i) or
(ii) of section 202(x)(1)(A) the primary purpose of which is to
confine individuals as described in section 202(x)(1)(A), under
which--
`(I) the institution shall provide to the Commissioner, on a
monthly basis and in a manner specified by the Commissioner,
the names, social security account numbers, dates of birth,
confinement commencement dates, and, to the extent available to
the institution, such other identifying information concerning
the inmates of the institution as the Commissioner may require
for the purpose of carrying out paragraph (1); and
`(II) the Commissioner shall pay to any such institution,
with respect to each inmate of the institution who is eligible
for a benefit under this title for the month preceding the
first month throughout which such inmate is in such institution
and becomes ineligible for such benefit as a result of the
application of this subparagraph, $400 if the institution
furnishes the information described in subclause (I) to the
Commissioner within 30 days after the date such individual
becomes an inmate of such institution, or $200 if the
institution furnishes such information after 30 days after such
date but within 90 days after such date.
`(ii)(I) The provisions of section 552a of title 5, United States
Code, shall not apply to any agreement entered into under clause
(i) or to information exchanged pursuant to such agreement.
`(II) The Commissioner is authorized to provide, on a
reimbursable basis, information obtained pursuant to agreements
entered into under clause (i) to any Federal or federally-assisted
cash, food, or medical assistance program for eligibility purposes.
`(iii) Payments to institutions required by clause (i)(II) shall
be made from funds otherwise available for the payment of benefits
under this title and shall be treated as direct spending for
purposes of the Balanced Budget and Emergency Deficit Control Act
of 1985.'.
(2) EFFECTIVE DATE- The amendment made by this subsection
shall apply to individuals whose period of confinement in an
institution commences on or after the first day of the seventh
month beginning after the month in which this Act is enacted.
(b) STUDY OF OTHER POTENTIAL IMPROVEMENTS IN THE COLLECTION OF
INFORMATION RESPECTING PUBLIC INMATES-
(1) STUDY- The Commissioner of Social Security shall conduct
a study of the desirability, feasibility, and cost of--
(A) establishing a system under which Federal, State, and
local courts would furnish to the Commissioner such
information respecting court orders by which individuals
are confined in jails, prisons, or other public penal,
correctional, or medical facilities as the Commissioner may
require for the purpose of carrying out section 1611(e)(1)
of the Social Security Act; and
(B) requiring that State and local jails, prisons, and
other institutions that enter into agreements with the
Commissioner under section 1611(e)(1)(I) of the Social
Security Act furnish the information required by such
agreements to the Commissioner by means of an electronic or
other sophisticated data exchange system.
(2) REPORT- Not later than 1 year after the date of the
enactment of this Act, the Commissioner of Social Security
shall submit a report on the results of the study conducted
pursuant to this subsection to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives.
(c) ADDITIONAL REPORT TO CONGRESS- Not later than October 1,
1998, the Commissioner of Social Security shall provide to the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives a list of the institutions
that are and are not providing information to the Commissioner
under section 1611(e)(1)(I) of the Social Security Act (as added by
this section).
SEC. 204. EFFECTIVE DATE OF APPLICATION FOR BENEFITS.
(a) IN GENERAL- Subparagraphs (A) and (B) of section 1611(c)(7)
(42 U.S.C. 1382(c)(7)) are amended to read as follows:
`(A) the first day of the month following the date such
application is filed, or
`(B) the first day of the month following the date such
individual becomes eligible for such benefits with respect to
such application.'.
(b) SPECIAL RULE RELATING TO EMERGENCY ADVANCE PAYMENTS- Section
1631(a)(4)(A) (42 U.S.C. 1383(a)(4)(A)) is amended--
(1) by inserting `for the month following the date the
application is filed' after `is presumptively eligible for such
benefits'; and
(2) by inserting `, which shall be repaid through
proportionate reductions in such benefits over a period of not
more than 6 months' before the semicolon.
(c) CONFORMING AMENDMENTS-
(1) Section 1614(b) (42 U.S.C. 1382c(b)) is amended--
(A) by striking `or requests' and inserting `, on the
first day of the month following the date the application
is filed, or, in any case in which either spouse requests';
and
(B) by striking `application or'.
(2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is amended by
inserting `following the month' after `beginning with the month'.
(d) EFFECTIVE DATE-
(1) IN GENERAL- The amendments made by this section shall
apply to applications for benefits under title XVI of the
Social Security Act filed on or after the date of the enactment
of this Act, without regard to whether regulations have been
issued to implement such amendments.
(2) BENEFITS UNDER TITLE XVI- For purposes of this
subsection, the term `benefits under title XVI of the Social
Security Act' includes supplementary payments pursuant to an
agreement for Federal administration under section 1616(a) of
the Social Security Act, and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93-66.
SUBTITLE B--BENEFITS FOR DISABLED CHILDREN
SEC. 211. DEFINITION AND ELIGIBILITY RULES.
(a) DEFINITION OF CHILDHOOD DISABILITY- Section 1614(a)(3) (42
U.S.C. 1382c(a)(3)), as amended by section 105(b)(1) of the
Contract with America Advancement Act of 1996, is amended--
(1) in subparagraph (A), by striking `An individual' and
inserting `Except as provided in subparagraph (C), an
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.
`(ii) Notwithstanding clause (i), no individual under the age of
18 who engages in substantial gainful activity (determined in
accordance with regulations prescribed pursuant to subparagraph
(E)) may be considered to be disabled.'; and
(5) in subparagraph (F), as redesignated by paragraph (3), by
striking `(D)' and inserting `(E)'.
(b) Changes to Childhood SSI Regulations-
(1) MODIFICATION TO MEDICAL CRITERIA FOR EVALUATION OF MENTAL
AND EMOTIONAL DISORDERS- The Commissioner of Social Security
shall modify sections 112.00C.2. and 112.02B.2.c.(2) of
appendix 1 to subpart P of part 404 of title 20, Code of
Federal Regulations, to eliminate references to maladaptive
behavior in the domain of personal/behavorial function.
(2) DISCONTINUANCE OF INDIVIDUALIZED FUNCTIONAL ASSESSMENT-
The Commissioner of Social Security shall discontinue the
individualized functional assessment for children set forth in
sections 416.924d and 416.924e of title 20, Code of Federal
Regulations.
(c) MEDICAL IMPROVEMENT REVIEW STANDARD AS IT APPLIES TO
INDIVIDUALS UNDER THE AGE OF 18- Section 1614(a)(4) (42 U.S.C.
1382(a)(4)) is amended--
(1) by redesignating subclauses (I) and (II) of clauses (i)
and (ii) of subparagraph (B) as items (aa) and (bb),
respectively;
(2) by redesignating clauses (i) and (ii) of subparagraphs
(A) and (B) as subclauses (I) and (II), respectively;
(3) by redesignating subparagraphs (A) through (C) as clauses
(i) through (iii), respectively;
(4) by inserting before clause (i) (as redesignated by
paragraph (3)) the following new subparagraph:
`(A) in the case of an individual who is age 18 or older--';
(5) by inserting after and below subparagraph (A)(iii) (as so
redesignated) the following new subparagraph:
`(B) in the case of an individual who is under the age of 18--
`(i) substantial evidence which demonstrates that there
has been medical improvement in the individual's impairment
or combination of impairments, and that such impairment or
combination of impairments no longer results in marked and
severe functional limitations; or
`(ii) substantial evidence which demonstrates that, as
determined on the basis of new or improved diagnostic
techniques or evaluations, the individual's impairment or
combination of impairments, is not as disabling as it was
considered to be at the time of the most recent prior
decision that the individual was under a disability or
continued to be under a disability, and such impairment or
combination of impairments does not result in marked and
severe functional limitations; or';
(6) by redesignating subparagraph (D) as subparagraph (C) and
by inserting in such subparagraph `in the case of any
individual,' before `substantial evidence'; and
(7) in the first sentence following subparagraph (C) (as
redesignated by paragraph (6)), by--
(A) inserting `(i)' before `to restore'; and
(B) inserting `, or (ii) in the case of an individual
under the age of 18, to eliminate or improve the
individual's impairment or combination of impairments so
that it no longer results in marked and severe functional
limitations' immediately before the period.
(d) EFFECTIVE DATES, ETC-
(1) EFFECTIVE DATES-
(A) SUBSECTIONS (a) AND (b)-
(i) IN GENERAL- The provisions of, and amendments
made by, subsections (a) and (b) of this section shall
apply to any individual who applies for, or whose claim
is finally adjudicated with respect to, benefits under
title XVI of the Social Security Act on or after the
date of the enactment of this Act, without regard to
whether regulations have been issued to implement such
provisions and amendments.
(ii) DETERMINATION OF FINAL ADJUDICATION- For
purposes of clause (i), no individual's claim with
respect to such benefits may be considered to be
finally adjudicated before such date of enactment if,
on or after such date, there is pending a request for
either administrative or judicial review with respect
to such claim that has been denied in whole, or there
is pending, with respect to such claim, readjudication
by the Commissioner of Social Security pursuant to
relief in a class action or implementation by the
Commissioner of a court remand order.
(B) SUBSECTION (c)- The amendments made by subsection (c)
of this section shall apply with respect to benefits under
title XVI of the Social Security Act for months beginning
on or after the date of the enactment of this Act, without
regard to whether regulations have been issued to implement
such amendments.
(2) APPLICATION TO CURRENT RECIPIENTS-
(A) ELIGIBILITY REDETERMINATIONS- During the period
beginning on the date of the enactment of this Act and
ending on the date which is 1 year after such date of
enactment, the Commissioner of Social Security shall
redetermine the eligibility of any individual under age 18
who is eligible for supplemental security income benefits
by reason of disability under title XVI of the Social
Security Act as of the date of the enactment of this Act
and whose eligibility for such benefits may terminate by
reason of the provisions of, or amendments made by,
subsections (a) and (b) of this section. With respect to
any redetermination under this subparagraph--
(i) section 1614(a)(4) of the Social Security Act (42
U.S.C. 1382c(a)(4)) shall not apply;
(ii) the Commissioner of Social Security shall apply
the eligibility criteria for new applicants for
benefits under title XVI of such Act;
(iii) the Commissioner shall give such
redetermination priority over all continuing
eligibility reviews and other reviews under such title;
and
(iv) such redetermination shall be counted as a
review or redetermination otherwise required to be made
under section 208 of the Social Security Independence
and Program Improvements Act of 1994 or any other
provision of title XVI of the Social Security Act.
(B) GRANDFATHER PROVISION- The provisions of, and
amendments made by, subsections (a) and (b) of this
section, and the redetermination under subparagraph (A),
shall only apply with respect to the benefits of an
individual described in subparagraph (A) for months
beginning on or after the later of July 1, 1997, or the
date of the redetermination with respect to such individual.
(C) NOTICE- Not later than January 1, 1997, the
Commissioner of Social Security shall notify an individual
described in subparagraph (A) of the provisions of this
paragraph.
(3) REPORT- The Commissioner of Social Security shall report
to the Congress regarding the progress made in implementing the
provisions of, and amendments made by, this section on child
disability evaluations not later than 180 days after the date
of the enactment of this Act.
(4) REGULATIONS- Notwithstanding any other provision of law,
the Commissioner of Social Security shall submit for review to
the committees of jurisdiction in the Congress any final
regulation pertaining to the eligibility of individuals under
age 18 for benefits under title XVI of the Social Security Act
at least 45 days before the effective date of such regulation.
The submission under this paragraph shall include supporting
documentation providing a cost analysis, workload impact, and
projections as to how the regulation will effect the future
number of recipients under such title.
(5) CAP ADJUSTMENT FOR SSI ADMINISTRATIVE WORK REQUIRED BY
WELFARE REFORM-
(A) AUTHORIZATION- For the additional costs of continuing
disability reviews and redeterminations under title XVI of
the Social Security Act, there is hereby authorized to be
appropriated to the Social Security Administration, in
addition to amounts authorized under section 201(g)(1)(A)
of the Social Security Act, $150,000,000 in fiscal year
1997 and $100,000,000 in fiscal year 1998.
(B) CAP ADJUSTMENT- Section 251(b)(2)(H) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended by section 103(b) of the Contract with America
Advancement Act of 1996, is amended--
(i) in clause (i)--
(I) in subclause (II) by--
(aa) striking `$25,000,000' and inserting `$175,000,000'; and
(bb) striking `$160,000,000' and inserting `$310,000,000'; and
(II) in subclause (III) by--
(aa) striking `$145,000,000' and inserting `$245,000,000'; and
(bb) striking `$370,000,000' and inserting `$470,000,000'; and
(ii) by amending clause (ii)(I) to read as follows:
`(I) the term `continuing disability reviews' means
reviews or redeterminations as defined under section
201(g)(1)(A) of the Social Security Act and reviews and
redeterminations authorized under section 211 of the
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996;'.
(C) ADJUSTMENTS- Section 606(e)(1)(B) of the
Congressional Budget Act of 1974 is amended by adding at
the end the following new sentences: `If the adjustments
referred to in the preceding sentence are made for an
appropriations measure that is not enacted into law, then
the Chairman of the Committee on the Budget of the House of
Representatives shall, as soon as practicable, reverse
those adjustments. The Chairman of the Committee on the
Budget of the House of Representatives shall submit any
adjustments made under this subparagraph to the House of
Representatives and have such adjustments published in the
Congressional Record.'.
(D) CONFORMING AMENDMENT- Section 103(d)(1) of the
Contract with America Advancement Act of 1996 (42 U.S.C.
401 note) is amended by striking `medicaid programs.' and
inserting `medicaid programs, except that the amounts
appropriated pursuant to the authorization and
discretionary spending allowance provisions in section
211(d)(2)(5) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 shall be used only
for continuing disability reviews and redeterminations
under title XVI of the Social Security Act.'.
(6) BENEFITS UNDER TITLE XVI- For purposes of this
subsection, the term `benefits under title XVI of the Social
Security Act' includes supplementary payments pursuant to an
agreement for Federal administration under section 1616(a) of
the Social Security Act, and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93-66.
SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINUING DISABILITY
REVIEWS.
(a) CONTINUING DISABILITY REVIEWS RELATING TO CERTAIN CHILDREN-
Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as redesignated
by section 211(a)(3) of this Act, is amended--
(1) by inserting `(i)' after `(H)'; and
(2) by adding at the end the following new clause:
`(ii)(I) Not less frequently than once every 3 years, the
Commissioner shall review in accordance with paragraph (4) the
continued eligibility for benefits under this title of each
individual who has not attained 18 years of age and is eligible for
such benefits by reason of an impairment (or combination of
impairments) which is likely to improve (or, at the option of the
Commissioner, which is unlikely to improve).
`(II) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of review,
evidence demonstrating that the recipient is, and has been,
receiving treatment, to the extent considered medically necessary
and available, of the condition which was the basis for providing
benefits under this title.
`(III) If the representative payee refuses to comply without good
cause with the requirements of subclause (II), the Commissioner of
Social Security shall, if the Commissioner determines it is in the
best interest of the individual, promptly suspend payment of
benefits to the representative payee, and provide for payment of
benefits to an alternative representative payee of the individual
or, if the interest of the individual under this title would be
served thereby, to the individual.
`(IV) Subclause (II) shall not apply to the representative payee
of any individual with respect to whom the Commissioner determines
such application would be inappropriate or unnecessary. In making
such determination, the Commissioner shall take into consideration
the nature of the individual's impairment (or combination of
impairments). Section 1631(c) shall not apply to a finding by the
Commissioner that the requirements of subclause (II) should not
apply to an individual's representative payee.'.
(b) DISABILITY ELIGIBILITY REDETERMINATIONS REQUIRED FOR SSI
RECIPIENTS WHO ATTAIN 18 YEARS OF AGE-
(1) IN GENERAL- Section 1614(a)(3)(H) (42 U.S.C.
1382c(a)(3)(H)), as amended by subsection (a) of this section,
is amended by adding at the end the following new clause:
`(iii) If an individual is eligible for benefits under this title
by reason of disability for the month preceding the month in which
the individual attains the age of 18 years, the Commissioner shall
redetermine such eligibility--
`(I) during the 1-year period beginning on the individual's
18th birthday; and
`(II) by applying the criteria used in determining the
initial eligibility for applicants who are age 18 or older.
With respect to a redetermination under this clause, paragraph (4)
shall not apply and such redetermination shall be considered a
substitute for a review or redetermination otherwise required under
any other provision of this subparagraph during that 1-year period.'.
(2) CONFORMING REPEAL- Section 207 of the Social Security
Independence and Program Improvements Act of 1994 (42 U.S.C.
1382 note; 108 Stat. 1516) is hereby repealed.
(c) CONTINUING DISABILITY REVIEW REQUIRED FOR LOW BIRTH WEIGHT
BABIES- Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as
amended by subsections (a) and (b) of this section, is amended by
adding at the end the following new clause:
`(iv)(I) Not later than 12 months after the birth of an
individual, the Commissioner shall review in accordance with
paragraph (4) the continuing eligibility for benefits under this
title by reason of disability of such individual whose low birth
weight is a contributing factor material to the Commissioner's
determination that the individual is disabled.
`(II) A review under subclause (I) shall be considered a
substitute for a review otherwise required under any other
provision of this subparagraph during that 12-month period.
`(III) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of review,
evidence demonstrating that the recipient is, and has been,
receiving treatment, to the extent considered medically necessary
and available, of the condition which was the basis for providing
benefits under this title.
`(IV) If the representative payee refuses to comply without good
cause with the requirements of subclause (III), the Commissioner of
Social Security shall, if the Commissioner determines it is in the
best interest of the individual, promptly suspend payment of
benefits to the representative payee, and provide for payment of
benefits to an alternative representative payee of the individual
or, if the interest of the individual under this title would be
served thereby, to the individual.
`(V) Subclause (III) shall not apply to the representative payee
of any individual with respect to whom the Commissioner determines
such application would be inappropriate or unnecessary. In making
such determination, the Commissioner shall take into consideration
the nature of the individual's impairment (or combination of
impairments). Section 1631(c) shall not apply to a finding by the
Commissioner that the requirements of subclause (III) should not
apply to an individual's representative payee.'.
(d) EFFECTIVE DATE- The amendments made by this section shall
apply to benefits for months beginning on or after the date of the
enactment of this Act, without regard to whether regulations have
been issued to implement such amendments.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) REQUIREMENT TO ESTABLISH ACCOUNT- Section 1631(a)(2) (42
U.S.C. 1383(a)(2)) is amended--
(1) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively; and
(2) by inserting after subparagraph (E) the following new
subparagraph:
`(F)(i)(I) Each representative payee of an eligible individual
under the age of 18 who is eligible for the payment of benefits
described in subclause (II) shall establish on behalf of such
individual an account in a financial institution into which such
benefits shall be paid, and shall thereafter maintain such account
for use in accordance with clause (ii).
`(II) Benefits described in this subclause are past-due monthly
benefits under this title (which, for purposes of this subclause,
include State supplementary payments made by the Commissioner
pursuant to an agreement under section 1616 or section 212(b) of
Public Law 93-66) in an amount (after any withholding by the
Commissioner for reimbursement to a State for interim assistance
under subsection (g)) that exceeds the product of--
`(aa) 6, and
`(bb) the maximum monthly benefit payable under this title to
an eligible individual.
`(ii)(I) A representative payee shall use funds in the account
established under clause (i) to pay for allowable expenses
described in subclause (II).
`(II) An allowable expense described in this subclause is an
expense for--
`(aa) education or job skills training;
`(bb) personal needs assistance;
`(cc) special equipment;
`(dd) housing modification;
`(ee) medical treatment;
`(ff) therapy or rehabilitation; or
`(gg) any other item or service that the Commissioner
determines to be appropriate;
provided that such expense benefits such individual and, in the
case of an expense described in item (bb), (cc), (dd), (ff), or
(gg), is related to the impairment (or combination of impairments)
of such individual.
`(III) The use of funds from an account established under clause
(i) in any manner not authorized by this clause--
`(aa) by a representative payee shall be considered a
misapplication of benefits for all purposes of this paragraph,
and any representative payee who knowingly misapplies benefits
from such an account shall be liable to the Commissioner in an
amount equal to the total amount of such benefits; and
`(bb) by an eligible individual who is his or her own payee
shall be considered a misapplication of benefits for all
purposes of this paragraph and the total amount of such
benefits so used shall be considered to be the uncompensated
value of a disposed resource and shall be subject to the
provisions of section 1613(c).
`(IV) This clause shall continue to apply to funds in the account
after the child has reached age 18, regardless of whether benefits
are paid directly to the beneficiary or through a representative
payee.
`(iii) The representative payee may deposit into the account
established pursuant to clause (i)--
`(I) past-due benefits payable to the eligible individual in
an amount less than that specified in clause (i)(II), and
`(II) any other funds representing an underpayment under this
title to such individual, provided that the amount of such
underpayment is equal to or exceeds the maximum monthly benefit
payable under this title to an eligible individual.
`(iv) The Commissioner of Social Security shall establish a
system for accountability monitoring whereby such representative
payee shall report, at such time and in such manner as the
Commissioner shall require, on activity respecting funds in the
account established pursuant to clause (i).'.
(b) EXCLUSION FROM RESOURCES- Section 1613(a) (42 U.S.C.
1382b(a)) is amended--
(1) by striking `and' at the end of paragraph (10);
(2) by striking the period at the end of paragraph (11) and
inserting `; and'; and
(3) by inserting after paragraph (11) the following new
paragraph:
`(12) any account, including accrued interest or other
earnings thereon, established and maintained in accordance with
section 1631(a)(2)(F).'.
(c) EXCLUSION FROM INCOME- Section 1612(b) (42 U.S.C. 1382a(b))
is amended--
(1) by striking `and' at the end of paragraph (19);
(2) by striking the period at the end of paragraph (20) and
inserting `; and'; and
(3) by adding at the end the following new paragraph:
`(21) the interest or other earnings on any account
established and maintained in accordance with section
1631(a)(2)(F).'.
(d) EFFECTIVE DATE- The amendments made by this section shall
apply to payments made after the date of the enactment of this Act.
SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITUTIONALIZED
INDIVIDUALS WHOSE MEDICAL COSTS ARE COVERED BY
PRIVATE INSURANCE.
(a) IN GENERAL- Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B))
is amended by inserting `or, in the case of an eligible individual
who is a child under the age of 18, receiving payments (with
respect to such individual) under any health insurance policy
issued by a private provider of such insurance' after `section
1614(f)(2)(B),'.
(b) EFFECTIVE DATE- The amendment made by this section shall
apply to benefits for months beginning 90 or more days after the
date of the enactment of this Act, without regard to whether
regulations have been issued to implement such amendments.
SEC. 215. REGULATIONS.
Within 3 months after the date of the enactment of this Act, the
Commissioner of Social Security shall prescribe such regulations as
may be necessary to implement the amendments made by this subtitle.
SUBTITLE C--ADDITIONAL ENFORCEMENT PROVISION
SEC. 221. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLEMENTAL
SECURITY INCOME BENEFITS.
(a) IN GENERAL- Section 1631(a) (42 U.S.C. 1383) is amended by
adding at the end the following new paragraph:
`(10)(A) If an individual is eligible for past-due monthly
benefits under this title in an amount that (after any withholding
for reimbursement to a State for interim assistance under
subsection (g)) equals or exceeds the product of--
`(i) 12, and
`(ii) the maximum monthly benefit payable under this title to
an eligible individual (or, if appropriate, to an eligible
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 be
exceeded by an amount equal to the total of such debt and expenses.
`(C) This paragraph shall not apply to any individual who, at the
time of the Commissioner's determination that such individual is
eligible for the payment of past-due monthly benefits under this
title--
`(i) is afflicted with a medically determinable impairment
that is expected to result in death within 12 months; or
`(ii) is ineligible for benefits under this title and the
Commissioner determines that such individual is likely to
remain ineligible for the next 12 months.
`(D) For purposes of this paragraph, the term `benefits under
this title' includes supplementary payments pursuant to an
agreement for Federal administration under section 1616(a), and
payments pursuant to an agreement entered into under section 212(b)
of Public Law 93-66.'.
(b) CONFORMING AMENDMENT- Section 1631(a)(1) (42 U.S.C.
1383(a)(1)) is amended by inserting `(subject to paragraph (10))'
immediately before `in such installments'.
(c) EFFECTIVE DATE-
(1) IN GENERAL- The amendments made by this section are
effective with respect to past-due benefits payable under title
XVI of the Social Security Act after the third month following
the month in which this Act is enacted.
(2) BENEFITS PAYABLE UNDER TITLE XVI- For purposes of this
subsection, the term `benefits payable under title XVI of the
Social Security Act' includes supplementary payments pursuant
to an agreement for Federal administration under section
1616(a) of the Social Security Act, and payments pursuant to an
agreement entered into under section 212(b) of Public Law 93-66.
SEC. 222. REGULATIONS.
Within 3 months after the date of the enactment of this Act, the
Commissioner of Social Security shall prescribe such regulations as
may be necessary to implement the amendments made by this subtitle.
SUBTITLE D--STUDIES REGARDING SUPPLEMENTAL SECURITY INCOME PROGRAM
SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by section
105(b)(3) of the Contract with America Advancement Act of 1996, is
amended by adding at the end the following new section:
`ANNUAL REPORT ON PROGRAM
`SEC. 1637. (a) Not later than May 30 of each year, the
Commissioner of Social Security shall prepare and deliver a report
annually to the President and the Congress regarding the program
under this title, including--
`(1) a comprehensive description of the program;
`(2) historical and current data on allowances and denials,
including number of applications and allowance rates for
initial determinations, reconsideration determinations,
administrative law judge hearings, appeals council reviews, and
Federal court decisions;
`(3) historical and current data on characteristics of
recipients and program costs, by recipient group (aged, blind,
disabled adults, and disabled children);
`(4) historical and current data on prior enrollment by
recipients in public benefit programs, including State programs
funded under part A of title IV of the Social Security Act and
State general assistance programs;
`(5) projections of future number of recipients and program
costs, through at least 25 years;
`(6) number of redeterminations and continuing 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. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1999, the Comptroller General of the
United States shall study and report on--
(1) the impact of the amendments made by, and the provisions
of, this title on the supplemental security income program
under title XVI of the Social Security Act; and
(2) extra expenses incurred by families of children receiving
benefits under such title that are not covered by other
Federal, State, or local programs.
TITLE III--CHILD SUPPORT
SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title
an amendment is expressed in terms of an amendment to or repeal of
a section or other provision, the reference shall be considered to
be made to that section or other provision of the Social Security
Act.
SUBTITLE A--ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS
SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT
SERVICES.
(a) STATE PLAN REQUIREMENTS- Section 454 (42 U.S.C. 654) is
amended--
(1) by striking paragraph (4) and inserting the following new
paragraph:
`(4) provide that the State will--
`(A) provide services relating to the establishment of
paternity or the establishment, modification, or
enforcement of child support obligations, as appropriate,
under the plan with respect to--
`(i) each child for whom (I) assistance is provided
under the State program funded under part A of this
title, (II) benefits or services for foster care
maintenance are provided under the State program funded
under part E of this title, or (III) medical assistance
is provided under the State plan approved under title
XIX, unless, in accordance with paragraph (29), good
cause or other exceptions exist;
`(ii) any other child, if an individual applies for
such services with respect to the child; and
`(B) enforce any support obligation established with
respect to--
`(i) a child with respect to whom the State provides
services under the plan; or
`(ii) the custodial parent of such a child;'; and
(2) in paragraph (6)--
(A) by striking `provide that' and inserting `provide
that--';
(B) by striking subparagraph (A) and inserting the
following new subparagraph:
`(A) services under the plan shall be made available to
residents of other States on the same terms as to residents
of the State submitting the plan;';
(C) in subparagraph (B), by inserting `on individuals not
receiving assistance under any State program funded under
part A' after `such services shall be imposed';
(D) in each of subparagraphs (B), (C), (D), and (E)--
(i) by indenting the subparagraph in the same manner
as, and aligning the left margin of the subparagraph
with the left margin of, the matter inserted by
subparagraph (B) of this paragraph; and
(ii) by striking the final comma and inserting a
semicolon; and
(E) in subparagraph (E), by indenting each of clauses (i)
and (ii) 2 additional ems.
(b) CONTINUATION OF SERVICES FOR FAMILIES CEASING TO RECEIVE
ASSISTANCE UNDER THE STATE PROGRAM FUNDED UNDER PART A- Section 454
(42 U.S.C. 654) is amended--
(1) by striking `and' at the end of paragraph (23);
(2) by striking the period at the end of paragraph (24) and
inserting `; and'; and
(3) by adding after paragraph (24) the following new paragraph:
`(25) provide that if a family with respect to which services
are provided under the plan ceases to receive assistance under
the State program funded under part A, the State shall provide
appropriate notice to the family and continue to provide such
services, subject to the same conditions and on the same basis
as in the case of other individuals to whom services are
furnished under the plan, except that an application or other
request to continue services shall not be required of such a
family and paragraph (6)(B) shall not apply to the family.'.
(c) CONFORMING AMENDMENTS-
(1) Section 452(b) (42 U.S.C. 652(b)) is amended by striking
`454(6)' and inserting `454(4)'.
(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended
by striking `454(6)' each place it appears and inserting
`454(4)(A)(ii)'.
(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended
by striking `in the case of overdue support which a State has
agreed to collect under section 454(6)' and inserting `in any
other case'.
(4) Section 466(e) (42 U.S.C. 666(e)) is amended by striking
`paragraph (4) or (6) of section 454' and inserting `section
454(4)'.
SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.
(a) IN GENERAL- Section 457 (42 U.S.C. 657) is amended to read as
follows:
`SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
`(a) IN GENERAL- Subject to subsection (e), an amount collected
on behalf of a family as support by a State pursuant to a plan
approved under this part shall be distributed as follows:
`(1) FAMILIES RECEIVING ASSISTANCE- In the case of a family
receiving assistance from the State, the State shall--
`(A) pay to the Federal Government the Federal share of
the amount so collected; and
`(B) retain, or distribute to the family, the State share
of the amount so collected.
`(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE- In the case
of a family that formerly received assistance from the State:
`(A) CURRENT SUPPORT PAYMENTS- To the extent that the
amount so collected does not exceed the amount required to
be paid to the family for the month in which collected, the
State shall distribute the amount so collected to the family.
`(B) PAYMENTS OF ARREARAGES- To the extent that the
amount so collected exceeds the amount required to be paid
to the family for the month in which collected, the State
shall distribute the amount so collected as follows:
`(i) DISTRIBUTION OF ARREARAGES THAT ACCRUED AFTER
THE FAMILY CEASED TO RECEIVE ASSISTANCE-
`(I) PRE-OCTOBER 1997- Except as provided in subclause (II), the
provisions of this section (other than subsection (b)(1)) as in
effect and applied on the day before the date of the enactment of
section 302 of the Personal Responsibility and Work Opportunity Act
Reconciliation of 1996 shall apply with respect to the distribution
of support arrearages that--
`(aa) accrued after the family ceased to receive assistance, and
`(bb) are collected before October 1, 1997.
`(II) POST-SEPTEMBER 1997- With respect to the amount so
collected on or after October 1, 1997 (or before such date, at the
option of the State)--
`(aa) IN GENERAL- The State shall first distribute the amount so
collected (other than any amount described in clause (iv)) to the
family to the extent necessary to satisfy any support arrearages
with respect to the family that accrued after the family ceased to
receive assistance from the State.
`(bb) REIMBURSEMENT OF GOVERNMENTS FOR ASSISTANCE PROVIDED TO THE
FAMILY- After the application of division (aa) and clause
(ii)(II)(aa) with respect to the amount so collected, the State
shall retain the State share of the amount so collected, and pay to
the Federal Government the Federal share (as defined in subsection
(c)(2)) of the amount so collected, but only to the extent
necessary to reimburse amounts paid to the family as assistance by
the State.
`(cc) DISTRIBUTION OF THE REMAINDER TO THE FAMILY- To the extent
that neither division (aa) nor division (bb) applies to the amount
so collected, the State shall distribute the amount to the family.
`(ii) DISTRIBUTION OF ARREARAGES THAT ACCRUED BEFORE
THE FAMILY RECEIVED ASSISTANCE-
`(I) PRE-OCTOBER 2000- Except as provided in subclause (II), the
provisions of this section (other than subsection (b)(1)) as in
effect and applied on the day before the date of the enactment of
section 302 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 shall apply with respect to the
distribution of support arrearages that--
`(aa) accrued before the family received assistance, and
`(bb) are collected before October 1, 2000.
`(II) POST-SEPTEMBER 2000- Unless, based on the report required
by paragraph (4), the Congress determines otherwise, with respect
to the amount so collected on or after October 1, 2000 (or before
such date, at the option of the State)--
`(aa) IN GENERAL- The State shall first distribute the amount so
collected (other than any amount described in clause (iv)) to the
family to the extent necessary to satisfy any support arrearages
with respect to the family that accrued before the family received
assistance from the State.
`(bb) REIMBURSEMENT OF GOVERNMENTS FOR ASSISTANCE PROVIDED TO THE
FAMILY- After the application of clause (i)(II)(aa) and division
(aa) with respect to the amount so collected, the State shall
retain the State share of the amount so collected, and pay to the
Federal Government the Federal share (as defined in subsection
(c)(2)) of the amount so collected, but only to the extent
necessary to reimburse amounts paid to the family as assistance by
the State.
`(cc) DISTRIBUTION OF THE REMAINDER TO THE FAMILY- To the extent
that neither division (aa) nor division (bb) applies to the amount
so collected, the State shall distribute the amount to the family.
`(iii) DISTRIBUTION OF ARREARAGES THAT ACCRUED WHILE
THE FAMILY RECEIVED ASSISTANCE- In the case of a family
described in this subparagraph, the provisions of
paragraph (1) shall apply with respect to the
distribution of support arrearages that accrued while
the family received assistance.
`(iv) AMOUNTS COLLECTED PURSUANT TO SECTION 464-
Notwithstanding any other provision of this section,
any amount of support collected pursuant to section 464
shall be retained by the State to the extent past-due
support has been assigned to the State as a condition
of receiving assistance from the State, up to the
amount necessary to reimburse the State for amounts
paid to the family as assistance by the State. The
State shall pay to the Federal Government the Federal
share of the amounts so retained. To the extent the
amount collected pursuant to section 464 exceeds the
amount so retained, the State shall distribute the
excess to the family.
`(v) ORDERING RULES FOR DISTRIBUTIONS- For purposes
of this subparagraph, unless an earlier effective date
is required by this section, effective October 1, 2000,
the State shall treat any support arrearages collected,
except for amounts collected pursuant to section 464,
as accruing in the following order:
`(I) To the period after the family ceased to receive assistance.
`(II) To the period before the family received assistance.
`(III) To the period while the family was receiving assistance.
`(3) FAMILIES THAT NEVER RECEIVED ASSISTANCE- In the case of
any other family, the State shall distribute the amount so
collected to the family.
`(4) FAMILIES UNDER CERTAIN AGREEMENTS- In the case of a
family receiving assistance from an Indian tribe, distribute
the amount so collected pursuant to an agreement entered into
pursuant to a State plan under section 454(33).
`(5) STUDY AND REPORT- Not later than October 1, 1998, the
Secretary shall report to the Congress the Secretary's findings
with respect to--
`(A) whether the distribution of post-assistance
arrearages to families has been effective in moving people
off of welfare and keeping them off of welfare;
`(B) whether early implementation of a pre-assistance
arrearage program by some States has been effective in
moving people off of welfare and keeping them off of welfare;
`(C) what the overall impact has been of the amendments
made by the Personal Responsibility and Work Opportunity
Act of 1996 with respect to child support enforcement in
moving people off of welfare and keeping them off of
welfare; and
`(D) based on the information and data the Secretary has
obtained, what changes, if any, should be made in the
policies related to the distribution of child support
arrearages.
`(b) CONTINUATION OF ASSIGNMENTS- Any rights to support
obligations, which were assigned to a State as a condition of
receiving assistance from the State under part A and which were in
effect on the day before the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996, shall remain
assigned after such date.
`(c) DEFINITIONS- As used in subsection (a):
`(1) ASSISTANCE- The term `assistance from the State' means--
`(A) assistance under the State program funded under part
A or under the State plan approved under part A of this
title (as in effect on the day before the date of the
enactment of the Personal Responsibility and Work
Opportunity Act of 1996); and
`(B) foster care maintenance payments under the State
plan approved under part E of this title.
`(2) FEDERAL SHARE- The term `Federal share' means that
portion of the amount collected resulting from the application
of the Federal medical assistance percentage in effect for the
fiscal year in which the amount is collected.
`(3) FEDERAL MEDICAL ASSISTANCE PERCENTAGE- The term `Federal
medical assistance percentage' means--
`(A) the Federal medical assistance percentage (as
defined in section 1118), in the case of Puerto Rico, the
Virgin Islands, Guam, and American Samoa; or
`(B) the Federal medical assistance percentage (as
defined in section 1905(b), as in effect on September 30,
1996) in the case of any other State.
`(4) STATE SHARE- The term `State share' means 100 percent
minus the Federal share.
`(d) HOLD HARMLESS PROVISION- If the amounts collected which
could be retained by the State in the fiscal year (to the extent
necessary to reimburse the State for amounts paid to families as
assistance by the State) are less than the State share of the
amounts collected in fiscal year 1995 (determined in accordance
with section 457 as in effect on the day before the date of the
enactment of the Personal Responsibility and Work Opportunity Act
of 1996), the State share for the fiscal year shall be an amount
equal to the State share in fiscal year 1995.
`(e) GAP PAYMENTS NOT SUBJECT TO DISTRIBUTION UNDER THIS SECTION-
At State option, this section shall not apply to any amount
collected on behalf of a family as support by the State (and paid
to the family in addition to the amount of assistance otherwise
payable to the family) pursuant to a plan approved under this part
if such amount would have been paid to the family by the State
under section 402(a)(28), as in effect and applied on the day
before the date of the enactment of section 302 of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996. For
purposes of subsection (d), the State share of such amount paid to
the family shall be considered amounts which could be retained by
the State if such payments were reported by the State as part of
the State share of amounts collected in fiscal year 1995.'.
(b) CONFORMING AMENDMENTS-
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by
striking `section 457(b)(4) or (d)(3)' and inserting `section
457'.
(2) Section 454 (42 U.S.C. 654) is amended--
(A) in paragraph (11)--
(i) by striking `(11)' and inserting `(11)(A)'; and
(ii) by inserting after the semicolon `and'; and
(B) by redesignating paragraph (12) as subparagraph (B)
of paragraph (11).
(c) EFFECTIVE DATES-
(1) IN GENERAL- Except as provided in paragraph (2), the
amendments made by this section shall be effective on October
1, 1996, or earlier at the State's option.
(2) CONFORMING AMENDMENTS- The amendments made by subsection
(b)(2) shall become effective on the date of the enactment of
this Act.
SEC. 303. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT- Section 454 (42 U.S.C. 654), as
amended by section 301(b) of this Act, is amended--
(1) by striking `and' at the end of paragraph (24);
(2) by striking the period at the end of paragraph (25) and
inserting `; and'; and
(3) by adding after paragraph (25) the following new paragraph:
`(26) will have in effect safeguards, applicable to all
confidential information handled by the State agency, that are
designed to protect the privacy rights of the parties,
including--
`(A) safeguards against unauthorized use or disclosure of
information relating to proceedings or actions to establish
paternity, or to establish or enforce support;
`(B) prohibitions against the release of information on
the whereabouts of 1 party to another party against whom a
protective order with respect to the former party has been
entered; and
`(C) prohibitions against the release of information on
the whereabouts of 1 party to another party if the State
has reason to believe that the release of the information
may result in physical or emotional harm to the former
party.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall
become effective on October 1, 1997.
SEC. 304. RIGHTS TO NOTIFICATION OF HEARINGS.
(a) IN GENERAL- Section 454 (42 U.S.C. 654), as amended by
section 302(b)(2) of this Act, is amended by inserting after
paragraph (11) the following new paragraph:
`(12) provide for the establishment of procedures to require
the State to provide individuals who are applying for or
receiving services under the State plan, or who are parties to
cases in which services are being provided under the State plan--
`(A) with notice of all proceedings in which support
obligations might be established or modified; and
`(B) with a copy of any order establishing or modifying a
child support obligation, or (in the case of a petition for
modification) a notice of determination that there should
be no change in the amount of the child support award,
within 14 days after issuance of such order or
determination;'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall
become effective on October 1, 1997.
SUBTITLE B--LOCATE AND CASE TRACKING
SEC. 311. STATE CASE REGISTRY.
Section 454A, as added by section 344(a)(2) of this Act, is
amended by adding at the end the following new subsections:
`(e) STATE CASE REGISTRY-
`(1) CONTENTS- The automated system required by this section
shall include a registry (which shall be known as the `State
case registry') that contains records with respect to--
`(A) each case in which services are being provided by
the State agency under the State plan approved under this
part; and
`(B) each support order established or modified in the
State on or after October 1, 1998.
`(2) LINKING OF LOCAL REGISTRIES- The State case registry may
be established by linking local case registries of support
orders through an automated information network, subject to
this section.
`(3) USE OF STANDARDIZED DATA ELEMENTS- Such records shall
use standardized data elements for both parents (such as names,
social security numbers and other uniform identification
numbers, dates of birth, and case identification numbers), and
contain such other information (such as on case status) as the
Secretary may require.
`(4) PAYMENT RECORDS- Each case record in the State case
registry with respect to which services are being provided
under the State plan approved under this part and with respect
to which a support order has been established shall include a
record of--
`(A) the amount of monthly (or other periodic) support
owed under the order, and other amounts (including
arrearages, interest or late payment penalties, and fees)
due or overdue under the order;
`(B) any amount described in subparagraph (A) that has
been collected;
`(C) the distribution of such collected amounts;
`(D) the birth date of any child for whom the order
requires the provision of support; and
`(E) the amount of any lien imposed with respect to the
order pursuant to section 466(a)(4).
`(5) UPDATING AND MONITORING- The State agency operating the
automated system required by this section shall promptly
establish and update, maintain, and regularly monitor, case
records in the State case registry with respect to which
services are being provided under the State plan approved under
this part, on the basis of--
`(A) information on administrative actions and
administrative and judicial proceedings and orders relating
to paternity and support;
`(B) information obtained from comparison with Federal,
State, or local sources of information;
`(C) information on support collections and
distributions; and
`(D) any other relevant information.
`(f) INFORMATION COMPARISONS AND OTHER DISCLOSURES OF
INFORMATION- The State shall use the automated system required by
this section to extract information from (at such times, and in
such standardized format or formats, as may be required by the
Secretary), to share and compare information with, and to receive
information from, other data bases and information comparison
services, in order to obtain (or provide) information necessary to
enable the State agency (or the Secretary or other State or Federal
agencies) to carry out this part, subject to section 6103 of the
Internal Revenue Code of 1986. Such information comparison
activities shall include the following:
`(1) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS-
Furnishing to the Federal Case Registry of Child Support Orders
established under section 453(h) (and update as necessary, with
information including notice of expiration of orders) the
minimum amount of information on child support cases recorded
in the State case registry that is necessary to operate the
registry (as specified by the Secretary in regulations).
`(2) FEDERAL PARENT LOCATOR SERVICE- Exchanging information
with the Federal Parent Locator Service for the purposes
specified in section 453.
`(3) TEMPORARY FAMILY ASSISTANCE AND MEDICAID AGENCIES-
Exchanging information with State agencies (of the State and of
other States) administering programs funded under part A,
programs operated under a State plan approved under title XIX,
and other programs designated by the Secretary, as necessary to
perform State agency responsibilities under this part and under
such programs.
`(4) INTRASTATE AND INTERSTATE INFORMATION COMPARISONS-
Exchanging information with other agencies of the State,
agencies of other States, and interstate information networks,
as necessary and appropriate to carry out (or assist other
States to carry out) the purposes of this part.'.
SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
(a) STATE PLAN REQUIREMENT- Section 454 (42 U.S.C. 654), as
amended by sections 301(b) and 303(a) of this Act, is amended--
(1) by striking `and' at the end of paragraph (25);
(2) by striking the period at the end of paragraph (26) and
inserting `; and'; and
(3) by adding after paragraph (26) the following new paragraph:
`(27) provide that, on and after October 1, 1998, the State
agency will--
`(A) operate a State disbursement unit in accordance with
section 454B; and
`(B) have sufficient State staff (consisting of State
employees) and (at State option) contractors reporting
directly to the State agency to--
`(i) monitor and enforce support collections through
the unit in cases being enforced by the State pursuant
to section 454(4) (including carrying out the automated
data processing responsibilities described in section
454A(g)); and
`(ii) take the actions described in section 466(c)(1)
in appropriate cases.'.
(b) ESTABLISHMENT OF STATE DISBURSEMENT UNIT- Part D of title IV
(42 U.S.C. 651-669), as amended by section 344(a)(2) of this Act,
is amended by inserting after section 454A the following new section:
`SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
`(a) STATE DISBURSEMENT UNIT-
`(1) IN GENERAL- In order for a State to meet the
requirements of this section, the State agency must establish
and operate a unit (which shall be known as the `State
disbursement unit') for the collection and disbursement of
payments under support orders--
`(A) in all cases being enforced by the State pursuant to
section 454(4); and
`(B) in all cases not being enforced by the State under
this part in which the support order is initially issued in
the State on or after January 1, 1994, and in which the
income of the noncustodial parent 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 a centralized system. In addition, employers shall
be given 1 location to which income withholding is sent.
`(b) REQUIRED PROCEDURES- The State disbursement unit shall use
automated procedures, electronic processes, and computer-driven
technology to the maximum extent feasible, efficient, and
economical, for the collection and disbursement of support
payments, including procedures--
`(1) for receipt of payments from parents, employers, and
other States, and for disbursements to custodial parents and
other obligees, the State agency, and the agencies of other
States;
`(2) for accurate identification of payments;
`(3) to ensure prompt disbursement of the custodial parent's
share of any payment; and
`(4) to furnish to any parent, upon request, timely
information on the current status of support payments under an
order requiring payments to be made by or to the parent, except
that in cases described in subsection (a)(1)(B), the State
disbursement unit shall not be required to convert and maintain
in automated form records of payments kept pursuant to section
466(a)(8)(B)(iii) before the effective date of this section.
`(c) TIMING OF DISBURSEMENTS-
`(1) IN GENERAL- Except as provided in paragraph (2), the
State disbursement unit shall distribute all amounts payable
under section 457(a) within 2 business days after receipt from
the employer or other source of periodic income, if sufficient
information identifying the payee is provided.
`(2) PERMISSIVE RETENTION OF ARREARAGES- The State
disbursement unit may delay the distribution of collections
toward arrearages until the resolution of any timely appeal
with respect to such arrearages.
`(d) BUSINESS DAY DEFINED- As used in this section, the term
`business day' means a day on which State offices are open for
regular business.'.
(c) USE OF AUTOMATED SYSTEM- Section 454A, as added by section
344(a)(2) and as amended by section 311 of this Act, is amended by
adding at the end the following new subsection:
`(g) COLLECTION AND DISTRIBUTION OF SUPPORT PAYMENTS-
`(1) IN GENERAL- The State shall use the automated system
required by this section, to the maximum extent feasible, to
assist and facilitate the collection and disbursement of
support payments through the State disbursement unit operated
under section 454B, through the performance of functions,
including, at a minimum--
`(A) transmission of orders and notices to employers (and
other debtors) for the withholding of income--
`(i) within 2 business days after receipt of notice
of, and the income source subject to, such withholding
from a court, another State, an employer, the Federal
Parent Locator Service, or another source recognized by
the State; and
`(ii) using uniform formats prescribed by the
Secretary;
`(B) ongoing monitoring to promptly identify failures to
make timely payment of support; and
`(C) automatic use of enforcement procedures (including
procedures authorized pursuant to section 466(c)) if
payments are not timely made.
`(2) BUSINESS DAY DEFINED- As used in paragraph (1), the term
`business day' means a day on which State offices are open for
regular business.'.
(d) EFFECTIVE DATES-
(1) IN GENERAL- Except as provided in paragraph (2), the
amendments made by this section shall become effective on
October 1, 1998.
(2) LIMITED EXCEPTION TO UNIT HANDLING PAYMENTS-
Notwithstanding section 454B(b)(1) of the Social Security Act,
as added by this section, any State which, as of the date of
the enactment of this Act, processes the receipt of child
support payments through local courts may, at the option of the
State, continue to process through September 30, 1999, such
payments through such courts as processed such payments on or
before such date of enactment.
SEC. 313. STATE DIRECTORY OF NEW HIRES.
(a) STATE PLAN REQUIREMENT- Section 454 (42 U.S.C. 654), as
amended by sections 301(b), 303(a), and 312(a) of this Act, is
amended--
(1) by striking `and' at the end of paragraph (26);
(2) by striking the period at the end of paragraph (27) and
inserting `; and'; and
(3) by adding after paragraph (27) the following new paragraph:
`(28) provide that, on and after October 1, 1997, the State
will operate a State Directory of New Hires in accordance with
section 453A.'.
(b) STATE DIRECTORY OF NEW HIRES- Part D of title IV (42 U.S.C.
651-669) is amended by inserting after section 453 the following
new section:
`SEC. 453A. STATE DIRECTORY OF NEW HIRES.
`(a) ESTABLISHMENT-
`(1) IN GENERAL-
`(A) REQUIREMENT FOR STATES THAT HAVE NO DIRECTORY-
Except as provided in subparagraph (B), not later than
October 1, 1997, each State shall establish an automated
directory (to be known as the `State Directory of New
Hires') which shall contain information supplied in
accordance with subsection (b) by employers on each newly
hired employee.
`(B) STATES WITH NEW HIRE REPORTING 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
`(ii) does not include an employee of a Federal or
State agency performing intelligence or
counterintelligence functions, if the head of such
agency has determined that reporting pursuant to
paragraph (1) with respect to the employee could
endanger the safety of the employee or compromise an
ongoing investigation or intelligence mission.
`(B) EMPLOYER-
`(i) IN GENERAL- The term `employer' has the meaning
given such term in section 3401(d) of the Internal
Revenue Code of 1986 and includes any governmental
entity and any labor organization.
`(ii) LABOR ORGANIZATION- The term `labor
organization' shall have the meaning given such term in
section 2(5) of the National Labor Relations Act, and
includes any entity (also known as a `hiring hall')
which is used by the organization and an employer to
carry out requirements described in section 8(f)(3) of
such Act of an agreement between the organization and
the employer.
`(b) EMPLOYER INFORMATION-
`(1) REPORTING REQUIREMENT-
`(A) IN GENERAL- Except as provided in subparagraphs (B)
and (C), each employer shall furnish to the Directory of
New Hires of the State in which a newly hired employee
works, a report that contains the name, address, and social
security number of the employee, and the name and address
of, and identifying number assigned under section 6109 of
the Internal Revenue Code of 1986 to, the employer.
`(B) MULTISTATE EMPLOYERS- An employer that has employees
who are employed in 2 or more States and that transmits
reports magnetically or electronically may comply with
subparagraph (A) by designating 1 State in which such
employer has employees to which the employer will transmit
the report described in subparagraph (A), and transmitting
such report to such State. Any employer that transmits
reports pursuant to this subparagraph shall notify the
Secretary in writing as to which State such employer
designates for the purpose of sending reports.
`(C) FEDERAL GOVERNMENT EMPLOYERS- Any department,
agency, or instrumentality of the United States shall
comply with subparagraph (A) by transmitting the report
described in subparagraph (A) to the National Directory of
New Hires established pursuant to section 453.
`(2) TIMING OF REPORT- Each State may provide the time within
which the report required by paragraph (1) shall be made with
respect to an employee, but such report shall be made--
`(A) not later than 20 days after the date the employer
hires the employee; or
`(B) in the case of an employer transmitting reports
magnetically or electronically, by 2 monthly transmissions
(if necessary) not less than 12 days nor more than 16 days
apart.
`(c) REPORTING FORMAT AND METHOD- Each report required by
subsection (b) shall be made on a W-4 form or, at the option of the
employer, an equivalent form, and may be transmitted by 1st class
mail, magnetically, or electronically.
`(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EMPLOYERS- The State
shall have the option to set a State civil money penalty which
shall be less than--
`(1) $25; or
`(2) $500 if, under State law, the failure is the result of a
conspiracy between the employer and the employee to not supply
the required report or to supply a false or incomplete report.
`(e) ENTRY OF EMPLOYER INFORMATION- Information shall be entered
into the data base maintained by the State Directory of New Hires
within 5 business days of receipt from an employer pursuant to
subsection (b).
`(f) INFORMATION COMPARISONS-
`(1) IN GENERAL- Not later than May 1, 1998, an agency
designated by the State shall, directly or by contract, conduct
automated comparisons of the social security numbers reported
by employers pursuant to subsection (b) and the social security
numbers appearing in the records of the State case registry for
cases being enforced under the State plan.
`(2) NOTICE OF MATCH- When an information comparison
conducted under paragraph (1) reveals a match with respect to
the social security number of an individual required to provide
support under a support order, the State Directory of New Hires
shall provide the agency administering the State plan approved
under this part of the appropriate State with the name,
address, and social security number of the employee to whom the
social security number is assigned, and the name and address
of, and identifying number assigned under section 6109 of the
Internal Revenue Code of 1986 to, the employer.
`(g) TRANSMISSION OF INFORMATION-
`(1) TRANSMISSION OF WAGE WITHHOLDING NOTICES TO EMPLOYERS-
Within 2 business days after the date information regarding a
newly hired employee is entered into the State Directory of New
Hires, the State agency enforcing the employee's child support
obligation shall transmit a notice to the employer of the
employee directing the employer to withhold from the income of
the employee an amount equal to the monthly (or other periodic)
child support obligation (including any past due support
obligation) of the employee, unless the employee's income is
not subject to withholding pursuant to section 466(b)(3).
`(2) TRANSMISSIONS TO THE NATIONAL DIRECTORY OF NEW HIRES-
`(A) NEW HIRE INFORMATION- Within 3 business days after
the date information regarding a newly hired employee is
entered into the State Directory of New Hires, the State
Directory of New Hires shall furnish the information to the
National Directory of New Hires.
`(B) WAGE AND UNEMPLOYMENT COMPENSATION INFORMATION- The
State Directory of New Hires shall, on a quarterly basis,
furnish to the National Directory of New Hires extracts of
the reports required under section 303(a)(6) to be made to
the Secretary of Labor concerning the wages and
unemployment compensation paid to individuals, by such
dates, in such format, and containing such information as
the Secretary of Health and Human Services shall specify in
regulations.
`(3) BUSINESS DAY DEFINED- As used in this subsection, the
term `business day' means a day on which State offices are open
for regular business.
`(h) OTHER USES OF NEW HIRE INFORMATION-
`(1) LOCATION OF CHILD SUPPORT OBLIGORS- The agency
administering the State plan approved under this part shall use
information received pursuant to subsection (f)(2) to locate
individuals for purposes of establishing paternity and
establishing, modifying, and enforcing child support
obligations, and may disclose such information to any agent of
the agency that is under contract with the agency to carry out
such purposes.
`(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN PROGRAMS- A
State agency responsible for administering a program specified
in section 1137(b) shall have access to information reported by
employers pursuant to subsection (b) of this section for
purposes of verifying eligibility for the program.
`(3) ADMINISTRATION OF EMPLOYMENT SECURITY AND WORKERS'
COMPENSATION- State agencies operating employment security and
workers' compensation programs shall have access to information
reported by employers pursuant to subsection (b) for the
purposes of administering such programs.'.
(c) QUARTERLY WAGE REPORTING- Section 1137(a)(3) (42 U.S.C.
1320b-7(a)(3)) is amended--
(1) by inserting `(including State and local governmental
entities and labor organizations (as defined in section
453A(a)(2)(B)(iii))' after `employers'; and
(2) by inserting `, and except that no report shall be filed
with respect to an employee of a State or local agency
performing intelligence or counterintelligence functions, if
the head of such agency has determined that filing such a
report could endanger the safety of the employee or compromise
an ongoing investigation or intelligence mission' after
`paragraph (2)'.
(d) DISCLOSURE TO CERTAIN AGENTS- Section 303(e) (42 U.S.C.
503(e)) is amended by adding at the end the following:
`(5) A State or local child support enforcement agency may
disclose to any agent of the agency that is under contract with the
agency to carry out the purposes described in paragraph (1)(B) wage
information that is disclosed to an officer or employee of the
agency under paragraph (1)(A). Any agent of a State or local child
support agency that receives wage information under this paragraph
shall comply with the safeguards established pursuant to paragraph
(1)(B).'.
SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.
(a) MANDATORY INCOME WITHHOLDING-
(1) IN GENERAL- Section 466(a)(1) (42 U.S.C. 666(a)(1)) is
amended to read as follows:
`(1)(A) Procedures described in subsection (b) for the
withholding from income of amounts payable as support in cases
subject to enforcement under the State plan.
`(B) Procedures under which the income of a person with a
support obligation imposed by a support order issued (or
modified) in the State before October 1, 1996, if not otherwise
subject to withholding under subsection (b), shall become
subject to withholding as provided in subsection (b) if
arrearages occur, without the need for a judicial or
administrative hearing.'.
(2) CONFORMING AMENDMENTS-
(A) Section 466(b) (42 U.S.C. 666(b)) is amended in the
matter preceding paragraph (1), by striking `subsection
(a)(1)' and inserting `subsection (a)(1)(A)'.
(B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended to
read as follows:
`(4)(A) Such withholding must be carried out in full
compliance with all procedural due process requirements of the
State, and the State must send notice to each noncustodial
parent to whom paragraph (1) applies--
`(i) that the withholding has commenced; and
`(ii) of the procedures to follow if the noncustodial
parent desires to contest such withholding on the grounds
that the withholding or the amount withheld is improper due
to a mistake of fact.
`(B) The notice under subparagraph (A) of this paragraph
shall include the information provided to the employer under
paragraph (6)(A).'.
(C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended by
striking all that follows `administered by' and inserting
`the State through the State disbursement unit established
pursuant to section 454B, in accordance with the
requirements of section 454B.'.
(D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is
amended--
(i) in clause (i), by striking `to the appropriate
agency' and all that follows and inserting `to the
State disbursement unit within 7 business days after
the date the amount would (but for this subsection)
have been paid or credited to the employee, for
distribution in accordance with this part. The employer
shall withhold funds as directed in the notice, except
that when an employer receives an income withholding
order issued by another State, the employer shall apply
the income withholding law of the state of the
obligor's principal place of employment in determining--
`(I) the employer's fee for processing an income
withholding order;
`(II) the maximum amount permitted to be withheld from
the obligor's income;
`(III) the time periods within which the employer must
implement the income withholding order and forward the
child support payment;
`(IV) the priorities for withholding and allocating
income withheld for multiple child support obligees; and
`(V) any withholding terms or conditions not specified in
the order.
An employer who complies with an income withholding notice that
is regular on its face shall not be subject to civil liability
to any individual or agency for conduct in compliance with the
notice.';
(ii) in clause (ii), by inserting `be in a standard
format prescribed by the Secretary, and' after `shall';
and
(iii) by adding at the end the following new clause:
`(iii) As used in this subparagraph, the term `business day'
means a day on which State offices are open for regular
business.'.
(E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is
amended by striking `any employer' and all that follows and
inserting `any employer who--
`(i) discharges from employment, refuses to employ, or
takes disciplinary action against any noncustodial parent
subject to income withholding required by this subsection
because of the existence of such withholding and the
obligations or additional obligations which it imposes upon
the employer; or
`(ii) fails to withhold support from income or to pay
such amounts to the State disbursement unit in accordance
with this subsection.'.
(F) Section 466(b) (42 U.S.C. 666(b)) is amended by
adding at the end the following new paragraph:
`(11) Procedures under which the agency administering the
State plan approved under this part may execute a withholding
order without advance notice to the obligor, including issuing
the withholding order through electronic means.'.
(b) DEFINITION OF INCOME-
(1) IN GENERAL- Section 466(b)(8) (42 U.S.C. 666(b)(8)) is
amended to read as follows:
`(8) For purposes of subsection (a) and this subsection, the
term `income' means any periodic form of payment due to an
individual, regardless of source, including wages, salaries,
commissions, bonuses, worker's compensation, disability,
payments pursuant to a pension or retirement program, and
interest.'.
(2) CONFORMING AMENDMENTS-
(A) Subsections (a)(8)(A), (a)(8)(B)(i), (b)(3)(A),
(b)(3)(B), (b)(6)(A)(i), and (b)(6)(C), and (b)(7) of
section 466 (42 U.S.C. 666(a)(8)(A), (a)(8)(B)(i),
(b)(3)(A), (b)(3)(B), (b)(6)(A)(i), and (b)(6)(C), and
(b)(7)) are each amended by striking `wages' each place
such term appears and inserting `income'.
(B) Section 466(b)(1) (42 U.S.C. 666(b)(1)) is amended by
striking `wages (as defined by the State for purposes of
this section)' and inserting `income'.
(c) CONFORMING AMENDMENT- Section 466(c) (42 U.S.C. 666(c)) is
repealed.
SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by inserting after
paragraph (11) the following new paragraph:
`(12) LOCATOR INFORMATION FROM INTERSTATE NETWORKS-
Procedures to ensure that all Federal and State agencies
conducting activities under this part have access to any system
used by the State to locate an individual for purposes relating
to motor vehicles or law enforcement.'.
SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.
(a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS AND ASSETS- Section
453 (42 U.S.C. 653) is amended--
(1) in subsection (a), by striking all that follows
`subsection (c))' and inserting `, for the purpose of
establishing parentage, establishing, setting the amount of,
modifying, or enforcing child support obligations, or enforcing
child custody or visitation orders--
`(1) information on, or facilitating the discovery of, the
location of any individual--
`(A) who is under an obligation to pay child support or
provide child custody or visitation rights;
`(B) against whom such an obligation is sought;
`(C) to whom such an obligation is owed,
including the individual's social security number (or numbers),
most recent address, and the name, address, and employer
identification number of the individual's employer;
`(2) information on the individual's wages (or other income)
from, and benefits of, employment (including rights to or
enrollment in group health care coverage); and
`(3) information on the type, status, location, and amount of
any assets of, or debts owed by or to, any such 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-
(1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and
463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e),
and 663(f)) are each amended by inserting `Federal' before
`Parent' each place such term appears.
(2) Section 453 (42 U.S.C. 653) is amended in the heading by
adding `FEDERAL' before `PARENT'.
(f) NEW COMPONENTS- Section 453 (42 U.S.C. 653), as amended by
subsection (d) of this section, is amended by adding at the end the
following new subsections:
`(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS-
`(1) IN GENERAL- Not later than October 1, 1998, in order to
assist States in administering programs under State plans
approved under this part and programs funded under part A, and
for the other purposes specified in this section, the Secretary
shall establish and maintain in the Federal Parent Locator
Service an automated registry (which shall be known as the
`Federal Case Registry of Child Support Orders'), which shall
contain abstracts of support orders and other information
described in paragraph (2) with respect to each case in each
State case registry maintained pursuant to section 454A(e), as
furnished (and regularly updated), pursuant to section 454A(f),
by State agencies administering programs under this part.
`(2) CASE INFORMATION- The information referred to in
paragraph (1) with respect to a case shall be such information
as the Secretary may specify in regulations (including the
names, social security numbers or other uniform identification
numbers, and State case identification numbers) to identify the
individuals who owe or are owed support (or with respect to or
on behalf of whom support obligations are sought to be
established), and the State or States which have the case.
`(i) NATIONAL DIRECTORY OF NEW HIRES-
`(1) IN GENERAL- In order to assist States in administering
programs under State plans approved under this part and
programs funded under part A, and for the other purposes
specified in this section, the Secretary shall, not later than
October 1, 1997, establish and maintain in the Federal Parent
Locator Service an automated directory to be known as the
National Directory of New Hires, which shall contain the
information supplied pursuant to section 453A(g)(2).
`(2) ENTRY OF DATA- Information shall be entered into the
data base maintained by the National Directory of New Hires
within 2 business days of receipt pursuant to section 453A(g)(2).
`(3) ADMINISTRATION OF FEDERAL TAX LAWS- The Secretary of the
Treasury shall have access to the information in the National
Directory of New Hires for purposes of administering section 32
of the Internal Revenue Code of 1986, or the advance payment of
the earned income tax credit under section 3507 of such Code,
and verifying a claim with respect to employment in a tax return.
`(4) LIST OF MULTISTATE EMPLOYERS- The Secretary shall
maintain within the National Directory of New Hires a list of
multistate employers that report information regarding newly
hired employees pursuant to section 453A(b)(1)(B), and the
State which each such employer has designated to receive such
information.
`(j) INFORMATION COMPARISONS AND OTHER DISCLOSURES-
`(1) VERIFICATION BY SOCIAL SECURITY ADMINISTRATION-
`(A) IN GENERAL- The Secretary shall transmit information
on individuals and employers maintained under this section
to the Social Security Administration to the extent
necessary for verification in accordance with subparagraph
(B).
`(B) VERIFICATION BY SSA- The Social Security
Administration shall verify the accuracy of, correct, or
supply to the extent possible, and report to the Secretary,
the following information supplied by the Secretary
pursuant to subparagraph (A):
`(i) The name, social security number, and birth date
of each such individual.
`(ii) The employer identification number of each such
employer.
`(2) INFORMATION COMPARISONS- For the purpose of locating
individuals in a paternity establishment case or a case
involving the establishment, modification, or enforcement of a
support order, the Secretary shall--
`(A) compare information in the National Directory of New
Hires against information in the support case abstracts in
the Federal Case Registry of Child Support Orders not less
often than every 2 business days; and
`(B) within 2 business days after such a comparison
reveals a match with respect to an individual, report the
information to the State agency responsible for the case.
`(3) INFORMATION COMPARISONS AND DISCLOSURES OF INFORMATION
IN ALL REGISTRIES FOR TITLE IV PROGRAM PURPOSES- To the extent
and with the frequency that the Secretary determines to be
effective in assisting States to carry out their
responsibilities under programs operated under this part and
programs funded under part A, the Secretary shall--
`(A) compare the information in each component of the
Federal Parent Locator Service maintained under this
section against the information in each other such
component (other than the comparison required by paragraph
(2)), and report instances in which such a comparison
reveals a match with respect to an individual to State
agencies operating such programs; and
`(B) disclose information in such registries to such
State agencies.
`(4) PROVISION OF NEW HIRE INFORMATION TO THE SOCIAL SECURITY
ADMINISTRATION- The National Directory of New Hires shall
provide the Commissioner of Social Security with all
information in the National Directory.
`(5) RESEARCH- The Secretary may provide access to
information reported by employers pursuant to section 453A(b)
for research purposes found by the Secretary to be likely to
contribute to achieving the purposes of part A or this part,
but without personal identifiers.
`(k) FEES-
`(1) FOR SSA VERIFICATION- The Secretary shall reimburse the
Commissioner of Social Security, at a rate negotiated between
the Secretary and the Commissioner, for the costs incurred by
the Commissioner in performing the verification services
described in subsection (j).
`(2) FOR INFORMATION FROM STATE DIRECTORIES OF NEW HIRES- The
Secretary shall reimburse costs incurred by State directories
of new hires in furnishing information as required by
subsection (j)(3), at rates which the Secretary determines to
be reasonable (which rates shall not include payment for the
costs of obtaining, compiling, or maintaining such information).
`(3) FOR INFORMATION FURNISHED TO STATE AND FEDERAL AGENCIES-
A State or Federal agency that receives information from the
Secretary pursuant to this section shall reimburse the
Secretary for costs incurred by the Secretary in furnishing the
information, at rates which the Secretary determines to be
reasonable (which rates shall include payment for the costs of
obtaining, verifying, maintaining, and comparing the
information).
`(l) RESTRICTION ON DISCLOSURE AND USE- Information in the
Federal Parent Locator Service, and information resulting from
comparisons using such information, shall not be used or disclosed
except as expressly provided in this section, subject to section
6103 of the Internal Revenue Code of 1986.
`(m) INFORMATION INTEGRITY AND SECURITY- The Secretary shall
establish and implement safeguards with respect to the entities
established under this section designed to--
`(1) ensure the accuracy and completeness of information in
the Federal Parent Locator Service; and
`(2) restrict access to confidential information in the
Federal Parent Locator Service to authorized persons, and
restrict use of such information to authorized purposes.
`(n) FEDERAL GOVERNMENT REPORTING- Each department, agency, and
instrumentality of the United States shall on a quarterly basis
report to the Federal Parent Locator Service the name and social
security number of each employee and the wages paid to the employee
during the previous quarter, except that such a report shall not
be filed with respect to an employee of a department, agency, or
instrumentality performing intelligence or counterintelligence
functions, if the head of such department, agency, or
instrumentality has determined that filing such a report could
endanger the safety of the employee or compromise an ongoing
investigation or intelligence mission.'.
(g) CONFORMING AMENDMENTS-
(1) TO PART D OF TITLE IV OF THE SOCIAL SECURITY ACT-
(A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to
read as follows:
`(B) the Federal Parent Locator Service established under
section 453;'.
(B) Section 454(13) (42 U.S.C.654(13)) is amended by
inserting `and provide that information requests by parents
who are residents of other States be treated with the same
priority as requests by parents who are residents of the
State submitting the plan' before the semicolon.
(2) TO FEDERAL UNEMPLOYMENT TAX ACT- Section 3304(a)(16) of
the Internal Revenue Code of 1986 is amended--
(A) by striking `Secretary of Health, Education, and
Welfare' each place such term appears and inserting
`Secretary of Health and Human Services';
(B) in subparagraph (B), by striking `such information'
and all that follows and inserting `information furnished
under subparagraph (A) or (B) is used only for the purposes
authorized under such subparagraph;';
(C) by striking `and' at the end of subparagraph (A);
(D) by redesignating subparagraph (B) as subparagraph
(C); and
(E) by inserting after subparagraph (A) the following new
subparagraph:
`(B) wage and unemployment compensation information contained
in the records of such agency shall be furnished to the
Secretary of Health and Human Services (in accordance with
regulations promulgated by such Secretary) as necessary for the
purposes of the National Directory of New Hires established
under section 453(i) of the Social Security Act, and'.
(3) TO STATE GRANT PROGRAM UNDER TITLE III OF THE SOCIAL
SECURITY ACT- Subsection (h) of section 303 (42 U.S.C. 503) is
amended to read as follows:
`(h)(1) The State agency charged with the administration of the
State law shall, on a reimbursable basis--
`(A) disclose quarterly, to the Secretary of Health and Human
Services, wage and claim information, as required pursuant to
section 453(i)(1), contained in the records of such agency;
`(B) ensure that information provided pursuant to
subparagraph (A) meets such standards relating to correctness
and verification as the Secretary of Health and Human Services,
with the concurrence of the Secretary of Labor, may find
necessary; and
`(C) establish such safeguards as the Secretary of Labor
determines are necessary to insure that information disclosed
under subparagraph (A) is used only for purposes of section
453(i)(1) in carrying out the child support enforcement program
under title IV.
`(2) Whenever the Secretary of Labor, after reasonable notice and
opportunity for hearing to the State agency charged with the
administration of the State law, finds that there is a failure to
comply substantially with the requirements of paragraph (1), the
Secretary of Labor shall notify such State agency that further
payments will not be made to the State until the Secretary of Labor
is satisfied that there is no longer any such failure. Until the
Secretary of Labor is so satisfied, the Secretary shall make no
future certification to the Secretary of the Treasury with respect
to the State.
`(3) For purposes of this subsection--
`(A) the term `wage information' means information regarding
wages paid to an individual, the social security account number
of such individual, and the name, address, State, and the
Federal employer identification number of the employer paying
such wages to such individual; and
`(B) the term `claim information' means information regarding
whether an individual is receiving, has received, or has made
application for, unemployment compensation, the amount of any
such compensation being received (or to be received by such
individual), and the individual's current (or most recent) home
address.'.
(4) DISCLOSURE OF CERTAIN INFORMATION TO AGENTS OF CHILD
SUPPORT ENFORCEMENT AGENCIES-
(A) IN GENERAL- Paragraph (6) of section 6103(l) of the
Internal Revenue Code of 1986 (relating to disclosure of
return information to Federal, State, and local child
support enforcement agencies) is amended by redesignating
subparagraph (B) as subparagraph (C) and by inserting after
subparagraph (A) the following new subparagraph:
`(B) DISCLOSURE TO CERTAIN AGENTS- The following
information disclosed to any child support enforcement
agency under subparagraph (A) with respect to any
individual with respect to whom child support obligations
are sought to be established or enforced may be disclosed
by such agency to any agent of such agency which is under
contract with such agency to carry out the purposes
described in subparagraph (C):
`(i) The address and social security account number
(or numbers) of such individual.
`(ii) The amount of any reduction under section
6402(c) (relating to offset of past-due support against
overpayments) in any overpayment otherwise payable to
such individual.'.
(B) CONFORMING AMENDMENTS-
(i) Paragraph (3) of section 6103(a) of such Code is
amended by striking `(l)(12)' and inserting `paragraph
(6) or (12) of subsection (l)'.
(ii) Subparagraph (C) of section 6103(l)(6) of such
Code, as redesignated by subsection (a), is amended to
read as follows:
`(C) RESTRICTION ON DISCLOSURE- Information may be
disclosed under this paragraph only for purposes of, and to
the extent necessary in, establishing and collecting child
support obligations from, and locating, individuals owing
such obligations.'.
(iii) The material following subparagraph (F) of
section 6103(p)(4) of such Code is amended by striking
`subsection (l)(12)(B)' and inserting `paragraph (6)(A)
or (12)(B) of subsection (l)'.
(h) REQUIREMENT FOR COOPERATION- The Secretary of Labor and the
Secretary of Health and Human Services shall work jointly to
develop cost-effective and efficient methods of accessing the
information in the various State directories of new hires and the
National Directory of New Hires as established pursuant to the
amendments made by this subtitle. In developing these methods the
Secretaries shall take into account the impact, including costs, on
the States, and shall also consider the need to insure the proper
and authorized use of wage record information.
SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR USE IN
CHILD SUPPORT ENFORCEMENT.
Section 466(a) (42 U.S.C. 666(a)), as amended by section 315 of
this Act, is amended by inserting after paragraph (12) the
following new paragraph:
`(13) RECORDING OF SOCIAL SECURITY NUMBERS IN CERTAIN FAMILY
MATTERS- Procedures requiring that the social security number
of--
`(A) any applicant for a professional license, commercial
driver's license, occupational license, or marriage license
be recorded on the application;
`(B) any individual who is subject to a divorce decree,
support order, or paternity determination or acknowledgment
be placed in the records relating to the matter; and
`(C) any individual who has died be placed in the records
relating to the death and be recorded on the death
certificate.
For purposes of subparagraph (A), if a State allows the use of
a number other than the social security number, the State shall
so advise any applicants.'.
SUBTITLE C--STREAMLINING AND UNIFORMITY OF PROCEDURES
SEC. 321. ADOPTION OF UNIFORM STATE LAWS.
Section 466 (42 U.S.C. 666) is amended by adding at the end the
following new subsection:
`(f) UNIFORM INTERSTATE FAMILY SUPPORT ACT- In order to satisfy
section 454(20)(A), on and after January 1, 1998, each State must
have in effect the Uniform Interstate Family Support Act, as
approved by the American Bar Association on February 9, 1993,
together with any amendments officially adopted before January 1,
1998 by the National Conference of Commissioners on Uniform State
Laws.'.
SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT
ORDERS.
Section 1738B of title 28, United States Code, is amended--
(1) in subsection (a)(2), by striking `subsection (e)' and
inserting `subsections (e), (f), and (i)';
(2) in subsection (b), by inserting after the 2nd
undesignated paragraph the following:
`child's home State' means the State in which a child lived with
a parent or a person acting as parent for at least 6 consecutive
months immediately preceding the time of filing of a petition or
comparable pleading for support and, if a child is less than 6
months old, the State in which the child lived from birth with any
of them. A period of temporary absence of any of them is counted as
part of the 6-month period.';
(3) in subsection (c), by inserting `by a court of a State'
before `is made';
(4) in subsection (c)(1), by inserting `and subsections (e),
(f), and (g)' after `located';
(5) in subsection (d)--
(A) by inserting `individual' before `contestant'; and
(B) by striking `subsection (e)' and inserting
`subsections (e) and (f)';
(6) in subsection (e), by striking `make a modification of a
child support order with respect to a child that is made' and
inserting `modify a child support order issued';
(7) in subsection (e)(1), by inserting `pursuant to
subsection (i)' before the semicolon;
(8) in subsection (e)(2)--
(A) by inserting `individual' before `contestant' each
place such term appears; and
(B) by striking `to that court's making the modification
and assuming' and inserting `with the State of continuing,
exclusive jurisdiction for a court of another State to
modify the order and assume';
(9) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively;
(10) by inserting after subsection (e) the following new
subsection:
`(f) RECOGNITION OF CHILD SUPPORT ORDERS- If 1 or more child
support orders have been issued with regard to an obligor and a
child, a court shall apply the following rules in determining which
order to recognize for purposes of continuing, exclusive
jurisdiction and enforcement:
`(1) If only 1 court has issued a child support order, the
order of that court must be recognized.
`(2) If 2 or more courts have issued child support orders for
the same obligor and child, and only 1 of the courts would have
continuing, exclusive jurisdiction under this section, the
order of that court must be recognized.
`(3) If 2 or more courts have issued child support orders for
the same obligor and child, and more than 1 of the courts would
have continuing, exclusive jurisdiction under this section, an
order issued by a court in the current home State of the child
must be recognized, but if an order has not been issued in the
current home State of the child, the order most recently issued
must be recognized.
`(4) If 2 or more courts have issued child support orders for
the same obligor and child, and none of the courts would have
continuing, exclusive jurisdiction under this section, a court
may issue a child support order, which must be recognized.
`(5) The court that has issued an order recognized under this
subsection is the court having continuing, exclusive
jurisdiction.';
(11) in subsection (g) (as so redesignated)--
(A) by striking `PRIOR' and inserting `MODIFIED'; and
(B) by striking `subsection (e)' and inserting
`subsections (e) and (f)';
(12) in subsection (h) (as so redesignated)--
(A) in paragraph (2), by inserting `including the
duration of current payments and other obligations of
support' before the comma; and
(B) in paragraph (3), by inserting `arrears under' after
`enforce'; and
(13) by adding at the end the following new subsection:
`(i) REGISTRATION FOR MODIFICATION- If there is no individual
contestant or child residing in the issuing State, the party or
support enforcement agency seeking to modify, or to modify and
enforce, a child support order issued in another State shall
register that order in a State with jurisdiction over the nonmovant
for the purpose of modification.'.
SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315 and
317 of this Act, is amended by inserting after paragraph (13) the
following new paragraph:
`(14) ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES-
Procedures under which--
`(A)(i) the State shall respond within 5 business days to
a request made by another State to enforce a support order;
and
`(ii) the term `business day' means a day on which State
offices are open for regular business;
`(B) the State may, by electronic or other means,
transmit to another State a request for assistance in a
case involving the enforcement of a support order, which
request--
`(i) shall include such information as will enable
the State to which the request is transmitted to
compare the information about the case to the
information in the data bases of the State; and
`(ii) shall constitute a certification by the
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) the State shall maintain records of--
`(i) the number of such requests for assistance
received by the State;
`(ii) the number of cases for which the State
collected support in response to such a request; and
`(iii) the amount of such collected support.'.
SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.
(a) PROMULGATION- Section 452(a) (42 U.S.C. 652(a)) is amended--
(1) by striking `and' at the end of paragraph (9);
(2) by striking the period at the end of paragraph (10) (as
amended by section 346(a) of this Act) and inserting `; and'; and
(3) by adding at the end the following new paragraph:
`(11) not later than October 1, 1996, after consulting with
the State directors of programs under this part, promulgate
forms to be used by States in interstate cases for--
`(A) collection of child support through income
withholding;
`(B) imposition of liens; and
`(C) administrative subpoenas.'.
(b) USE BY STATES- Section 454(9) (42 U.S.C. 654(9)) is amended--
(1) by striking `and' at the end of subparagraph (C);
(2) by inserting `and' at the end of subparagraph (D); and
(3) by adding at the end the following new subparagraph:
`(E) not later than March 1, 1997, in using the forms
promulgated pursuant to section 452(a)(11) for income
withholding, imposition of liens, and issuance of
administrative subpoenas in interstate child support cases;'.
SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.
(a) STATE LAW REQUIREMENTS- Section 466 (42 U.S.C. 666), as
amended by section 314 of this Act, is amended--
(1) in subsection (a)(2), by striking the first sentence and
inserting the following: `Expedited administrative and judicial
procedures (including the procedures specified in subsection
(c)) for establishing paternity and for establishing,
modifying, and enforcing support obligations.'; and
(2) by inserting after subsection (b) the following new
subsection:
`(c) EXPEDITED PROCEDURES- The procedures specified in this
subsection are the following:
`(1) ADMINISTRATIVE ACTION BY STATE AGENCY- Procedures which
give the State agency the authority to take the following
actions relating to establishment of paternity or to
establishment, modification, or enforcement of support orders,
without the necessity of obtaining an order from any other
judicial or administrative tribunal, and to recognize and
enforce the authority of State agencies of other States to take
the following actions:
`(A) GENETIC TESTING- To order genetic testing for the
purpose of paternity establishment as provided in section
466(a)(5).
`(B) FINANCIAL OR OTHER INFORMATION- To subpoena any
financial or other information needed to establish, modify,
or enforce a support order, and to impose penalties for
failure to respond to such a subpoena.
`(C) RESPONSE TO STATE AGENCY REQUEST- To require all
entities in the State (including for-profit, nonprofit, and
governmental employers) to provide promptly, in response to
a request by the State agency of that or any other State
administering a program under this part, information on the
employment, compensation, and benefits of any individual
employed by such entity as an employee or contractor, and
to sanction failure to respond to any such request.
`(D) ACCESS TO INFORMATION CONTAINED IN CERTAIN RECORDS-
To obtain access, subject to safeguards on privacy and
information security, and subject to the nonliability of
entities that afford such access under this subparagraph,
to information contained in the following records
(including automated access, in the case of records
maintained in automated data bases):
`(i) Records of other State and local government
agencies, including--
`(I) vital statistics (including records of marriage, birth, and
divorce);
`(II) State and local tax and revenue records (including
information on residence address, employer, income and assets);
`(III) records concerning real and titled personal property;
`(IV) records of occupational and professional licenses, and
records concerning the ownership and control of corporations,
partnerships, and other business entities;
`(V) employment security records;
`(VI) records of agencies administering public assistance programs;
`(VII) records of the motor vehicle 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
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 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.
`(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
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.
`(I) NO RIGHT TO JURY TRIAL- Procedures providing that
the parties to an action to establish paternity are not
entitled to a trial by jury.
`(J) TEMPORARY SUPPORT ORDER BASED ON PROBABLE PATERNITY
IN CONTESTED CASES- Procedures which require that a
temporary order be issued, upon motion by a party,
requiring the provision of child support pending an
administrative or judicial determination of parentage, if
there is clear and convincing evidence of paternity (on the
basis of genetic tests or other evidence).
`(K) PROOF OF CERTAIN SUPPORT AND PATERNITY ESTABLISHMENT
COSTS- Procedures under which bills for pregnancy,
childbirth, and genetic testing are admissible as evidence
without requiring third-party foundation testimony, and
shall constitute prima facie evidence of amounts incurred
for such services or for testing on behalf of the child.
`(L) STANDING OF PUTATIVE FATHERS- Procedures ensuring
that the putative father has a reasonable opportunity to
initiate a paternity action.
`(M) FILING OF ACKNOWLEDGMENTS AND ADJUDICATIONS IN STATE
REGISTRY OF BIRTH RECORDS- Procedures under which voluntary
acknowledgments and adjudications of paternity by judicial
or administrative processes are filed with the State
registry of birth records for comparison with information
in the State case registry.'.
(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDAVIT- Section
452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting `, and
specify the minimum requirements of an affidavit to be used for the
voluntary acknowledgment of paternity which shall include the
Social Security number of each parent and, after consultation with
the States, other common elements as determined by such designee'
before the semicolon.
(c) CONFORMING AMENDMENT- Section 468 (42 U.S.C. 668) is amended
by striking `a simple civil process for voluntarily acknowledging
paternity and'.
SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.
Section 454(23) (42 U.S.C. 654(23)) is amended by inserting `and
will publicize the availability and encourage the use of procedures
for voluntary establishment of paternity and child support by means
the State deems appropriate' before the semicolon.
SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF PART A
ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections 301(b),
303(a), 312(a), and 313(a) of this Act, is amended--
(1) by striking `and' at the end of paragraph (27);
(2) by striking the period at the end of paragraph (28) and
inserting `; and'; and
(3) by inserting after paragraph (28) the following new
paragraph:
`(29) provide that the State agency responsible for
administering the State plan--
`(A) shall make the determination (and redetermination at
appropriate intervals) as to whether an individual who has
applied for or is receiving assistance under the State
program funded under part A of this title or the State
program under title XIX is cooperating in good faith with
the State in establishing the paternity of, or in
establishing, modifying, or enforcing a support order for,
any child of the individual by providing the State agency
with the name of, and such other information as the State
agency may require with respect to, the noncustodial parent
of the child, subject to good cause and other exceptions
which--
`(i) shall be defined, taking into account the best
interests of the child, and
`(ii) shall be applied in each case,
by, at the option of the State, the State agency
administering the State program under part A, this part, or
title XIX;
`(B) shall require the individual to supply additional
necessary information and appear at interviews, hearings,
and legal proceedings;
`(C) shall require the individual and the child to submit
to genetic tests pursuant to judicial or administrative
order;
`(D) may request that the individual sign a voluntary
acknowledgment of paternity, after notice of the rights and
consequences of such an acknowledgment, but may not require
the individual to sign an acknowledgment or otherwise
relinquish the right to genetic tests as a condition of
cooperation and eligibility for assistance under the State
program funded under part A, or the State program under
title XIX; and
`(E) shall promptly notify the individual, the State
agency administering the State program funded under part A,
and the State agency administering the State program under
title XIX, of each such determination, and if
noncooperation is determined, the basis therefor.'.
SUBTITLE E--PROGRAM ADMINISTRATION AND FUNDING
SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.
(a) DEVELOPMENT OF NEW SYSTEM- The Secretary of Health and Human
Services, in consultation with State directors of programs under
part D of title IV of the Social Security Act, shall develop a new
incentive system to replace, in a revenue neutral manner, the
system under section 458 of such Act. The new system shall provide
additional payments to any State based on such State's performance
under such a program. Not later than March 1, 1997, the Secretary
shall report on the new system to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance of the
Senate.
(b) CONFORMING AMENDMENTS TO PRESENT SYSTEM- Section 458 (42
U.S.C. 658) is amended--
(1) in subsection (a), by striking `aid to families with
dependent children under a State plan approved under part A of
this title' and inserting `assistance under a program funded
under part A';
(2) in subsection (b)(1)(A), by striking `section 402(a)(26)'
and inserting `section 408(a)(4)';
(3) in subsections (b) and (c)--
(A) by striking `AFDC collections' each place it appears
and inserting `title IV-A collections', and
(B) by striking `non-AFDC collections' each place it
appears and inserting `non-title IV-A collections'; and
(4) in subsection (c), by striking `combined AFDC/non-AFDC
administrative costs' both places it appears and inserting
`combined title IV-A/non-title IV-A administrative costs'.
(c) CALCULATION OF PATERNITY ESTABLISHMENT PERCENTAGE-
(1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is amended
by striking `75' and inserting `90'.
(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended--
(A) by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F), respectively, and by
inserting after subparagraph (A) the following new
subparagraph:
`(B) for a State with a paternity establishment percentage of
not less than 75 percent but less than 90 percent for such
fiscal year, the paternity establishment percentage of the
State for the immediately preceding fiscal year plus 2
percentage points;'; and
(B) by adding at the end the following new flush sentence:
`In determining compliance under this section, a State may use as
its paternity establishment percentage either the State's IV-D
paternity establishment percentage (as defined in paragraph (2)(A))
or the State's statewide paternity establishment percentage (as
defined in paragraph (2)(B)).'.
(3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i)--
(I) by striking `paternity establishment percentage' and
inserting `IV-D paternity establishment percentage'; and
(II) by striking `(or all States, as the case may be)'; and
(ii) by striking `and' at the end; and
(B) by redesignating subparagraph (B) as subparagraph (C)
and by inserting after subparagraph (A) the following new
subparagraph:
`(B) the term `statewide paternity establishment percentage'
means, with respect to a State for a fiscal year, the ratio
(expressed as a percentage) that the total number of minor
children--
`(i) who have been born out of wedlock, and
`(ii) the paternity of whom has been established or
acknowledged during the fiscal year,
bears to the total number of children born out of wedlock
during the preceding fiscal year; and'.
(4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
(A) by striking subparagraph (A) and redesignating
subparagraphs (B) and (C) as subparagraphs (A) and (B),
respectively; and
(B) in subparagraph (A) (as so redesignated), by striking
`the percentage of children born out-of-wedlock in a State'
and inserting `the percentage of children in a State who
are born out of wedlock or for whom support has not been
established'.
(d) EFFECTIVE DATES-
(1) INCENTIVE ADJUSTMENTS-
(A) IN GENERAL- The system developed under subsection (a)
and the amendments made by subsection (b) shall become
effective on October 1, 1999, except to the extent provided
in subparagraph (B).
(B) APPLICATION OF SECTION 458- Section 458 of the Social
Security Act, as in effect on the day before the date of
the enactment of this section, shall be effective for
purposes of incentive payments to States for fiscal years
before fiscal year 2000.
(2) PENALTY REDUCTIONS- The amendments made by subsection (c)
shall become effective with respect to calendar quarters
beginning on or after the date of the enactment of this Act.
SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) STATE AGENCY ACTIVITIES- Section 454 (42 U.S.C. 654) is
amended--
(1) in paragraph (14), by striking `(14)' and inserting
`(14)(A)';
(2) by redesignating paragraph (15) as subparagraph (B) of
paragraph (14); and
(3) by inserting after paragraph (14) the following new
paragraph:
`(15) provide for--
`(A) a process for annual reviews of and reports to the
Secretary on the State program operated under the State
plan approved under this part, including such information
as may be necessary to measure State compliance with
Federal requirements for expedited procedures, using such
standards and procedures as are required by the Secretary,
under which the State agency will determine the extent to
which the program is operated in compliance with this part;
and
`(B) a process of extracting from the automated data
processing system required by paragraph (16) and
transmitting to the Secretary data and calculations
concerning the levels of accomplishment (and rates of
improvement) with respect to applicable performance
indicators (including paternity establishment percentages)
to the extent necessary for purposes of sections 452(g) and
458;'.
(b) FEDERAL ACTIVITIES- Section 452(a)(4) (42 U.S.C. 652(a)(4))
is amended to read as follows:
`(4)(A) review data and calculations transmitted by State
agencies pursuant to section 454(15)(B) on State program
accomplishments with respect to performance indicators for
purposes of subsection (g) of this section and section 458;
`(B) review annual reports submitted pursuant to section
454(15)(A) and, as appropriate, provide to the State comments,
recommendations for additional or alternative corrective
actions, and technical assistance; and
`(C) conduct audits, in accordance with the Government
auditing standards of the Comptroller General of the United
States--
`(i) at least once every 3 years (or more frequently, in
the case of a State which fails to meet the requirements of
this part concerning performance standards and reliability
of program data) to assess the completeness, reliability,
and security of the data and the accuracy of the reporting
systems used in calculating performance indicators under
subsection (g) of this section and section 458;
`(ii) of the adequacy of financial management of the
State program operated under the State plan approved under
this part, including assessments of--
`(I) whether Federal and other funds made available
to carry out the State program are being appropriately
expended, and are properly and fully accounted for; and
`(II) whether collections and disbursements of
support payments are carried out correctly and are
fully accounted for; and
`(iii) for such other purposes as the Secretary may find
necessary;'.
(c) EFFECTIVE DATE- The amendments made by this section shall be
effective with respect to calendar quarters beginning 12 months or
more after the date of the enactment of this Act.
SEC. 343. REQUIRED REPORTING PROCEDURES.
(a) ESTABLISHMENT- Section 452(a)(5) (42 U.S.C. 652(a)(5)) is
amended by inserting `, and establish procedures to be followed by
States for collecting and reporting information required to be
provided under this part, and establish uniform definitions
(including those necessary to enable the measurement of State
compliance with the requirements of this part relating to expedited
processes) to be applied in following such procedures' before the
semicolon.
(b) STATE PLAN REQUIREMENT- Section 454 (42 U.S.C. 654), as
amended by sections 301(b), 303(a), 312(a), 313(a), and 333 of this
Act, is amended--
(1) by striking `and' at the end of paragraph (28);
(2) by striking the period at the end of paragraph (29) and
inserting `; and'; and
(3) by adding after paragraph (29) the following new paragraph:
`(30) provide that the State shall use the definitions
established under section 452(a)(5) in collecting and reporting
information as required under this part.'.
SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) REVISED REQUIREMENTS-
(1) IN GENERAL- Section 454(16) (42 U.S.C. 654(16)) is
amended--
(A) by striking `, at the option of the State,';
(B) by inserting `and operation by the State agency'
after `for the establishment';
(C) by inserting `meeting the requirements of section
454A' after `information retrieval system';
(D) by striking `in the State and localities thereof, so
as (A)' and inserting `so as';
(E) by striking `(i)'; and
(F) by striking `(including' and all that follows and
inserting a semicolon.
(2) AUTOMATED DATA PROCESSING- Part D of title IV (42 U.S.C.
651-669) is amended by inserting after section 454 the
following new section:
`SEC. 454A. AUTOMATED DATA PROCESSING.
`(a) IN GENERAL- In order for a State to meet the requirements of
this section, the State agency administering the State program
under this part shall have in operation a single statewide
automated data processing and information retrieval system which
has the capability to perform the tasks specified in this section
with the frequency and in the manner required by or under this part.
`(b) PROGRAM MANAGEMENT- The automated system required by this
section shall perform such functions as the Secretary may specify
relating to management of the State program under this part,
including--
`(1) controlling and accounting for use of Federal, State,
and local funds in carrying out the program; and
`(2) maintaining the data necessary to meet Federal reporting
requirements under this part on a timely basis.
`(c) CALCULATION OF PERFORMANCE INDICATORS- In order to enable
the Secretary to determine the incentive payments and penalty
adjustments required by sections 452(g) and 458, the State agency
shall--
`(1) use the automated system--
`(A) to maintain the requisite data on State performance
with respect to paternity establishment and child support
enforcement in the State; and
`(B) to calculate the paternity establishment percentage
for the State for each fiscal year; and
`(2) have in place systems controls to ensure the
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
contractors) who may have access to or be required to use
confidential program data are informed of applicable
requirements and penalties (including those in section 6103 of
the Internal Revenue Code of 1986), and are adequately trained
in security procedures.
`(5) PENALTIES- Administrative penalties (up to and including
dismissal from employment) for unauthorized access to, or
disclosure or use of, confidential data.'.
(3) REGULATIONS- The Secretary of Health and Human Services
shall prescribe final regulations for implementation of section
454A of the Social Security Act not later than 2 years after
the date of the enactment of this Act.
(4) IMPLEMENTATION TIMETABLE- Section 454(24) (42 U.S.C.
654(24)), as amended by section 303(a)(1) of this Act, is
amended to read as follows:
`(24) provide that the State will have in effect an automated
data processing and information retrieval system--
`(A) by October 1, 1997, which meets all 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) TEMPORARY LIMITATION ON PAYMENTS UNDER SPECIAL FEDERAL
MATCHING RATE-
(A) IN GENERAL- The Secretary of Health and Human
Services may not pay more than $400,000,000 in the
aggregate under section 455(a)(3)(B) of the Social Security
Act for fiscal years 1996 through 2001.
(B) ALLOCATION OF LIMITATION AMONG STATES- The total
amount payable to a State under section 455(a)(3)(B) of
such Act for fiscal years 1996 through 2001 shall not
exceed the limitation determined for the State by the
Secretary of Health and Human Services in regulations.
(C) ALLOCATION FORMULA- The regulations referred to in
subparagraph (B) shall prescribe a formula for allocating
the amount specified in subparagraph (A) among States with
plans approved under part D of title IV of the Social
Security Act, which shall take into account--
(i) the relative size of State caseloads under such
part; and
(ii) the level of automation needed to meet the
automated data processing requirements of such part.
(c) CONFORMING AMENDMENT- Section 123(c) of the Family Support
Act of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.
SEC. 345. TECHNICAL ASSISTANCE.
(a) FOR TRAINING OF FEDERAL AND STATE STAFF, RESEARCH AND
DEMONSTRATION PROGRAMS, AND SPECIAL PROJECTS OF REGIONAL OR
NATIONAL SIGNIFICANCE- Section 452 (42 U.S.C. 652) is amended by
adding at the end the following new subsection:
`(j) Out of any money in the Treasury of the United States not
otherwise appropriated, there is hereby appropriated to the
Secretary for each fiscal year an amount equal to 1 percent of the
total amount paid to the Federal Government pursuant to section
457(a) during the immediately preceding fiscal year (as determined
on the basis of the most recent reliable data available to the
Secretary as of the end of the 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
Locator Service under this section, to the extent such costs are
not recovered through user fees.'.
SEC. 346. REPORTS AND DATA COLLECTION BY THE SECRETARY.
(a) ANNUAL REPORT TO CONGRESS-
(1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is
amended--
(A) by striking `this part;' and inserting `this part,
including--'; and
(B) by adding at the end the following new clauses:
`(i) the total amount of child support payments
collected as a result of services furnished during the
fiscal year to individuals receiving services under
this part;
`(ii) the cost to the States and to the Federal
Government of so furnishing the services; and
`(iii) the number of cases involving families--
`(I) who became ineligible for assistance under State programs
funded under part A during a month in the fiscal year; and
`(II) with respect to whom a child support payment was received
in the month;'.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is
amended--
(A) in the matter preceding clause (i)--
(i) by striking `with the data required under each
clause being separately stated for cases' and inserting
`separately stated for cases';
(ii) by striking `cases where the child was formerly
receiving' and inserting `or formerly received';
(iii) by inserting `or 1912' after `471(a)(17)'; and
(iv) by inserting `for' before `all other';
(B) in each of clauses (i) and (ii), by striking `, and
the total amount of such obligations';
(C) in clause (iii), by striking `described in' and all
that follows and inserting `in which support was collected
during the fiscal year;';
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause (vii), and
inserting after clause (iii) the following new clauses:
`(iv) the total amount of support collected during
such fiscal year and distributed as current support;
`(v) the total amount of support collected during
such fiscal year and distributed as arrearages;
`(vi) the total amount of support due and unpaid for
all fiscal years; and'.
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is
amended by striking `on the use of Federal courts and'.
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended--
(A) in subparagraph (H), by striking `and';
(B) in subparagraph (I), by striking the period and
inserting `; and'; and
(C) by inserting after subparagraph (I) the following new
subparagraph:
`(J) compliance, by State, with the standards established
pursuant to subsections (h) and (i).'.
(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by
striking all that follows subparagraph (J), as added by
paragraph (4).
(b) EFFECTIVE DATE- The amendments made by subsection (a) shall
be effective with respect to fiscal year 1997 and succeeding fiscal
years.
SUBTITLE F--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS
SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD
SUPPORT ORDERS.
Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read as
follows:
`(10) REVIEW AND ADJUSTMENT OF SUPPORT ORDERS UPON REQUEST-
`(A) 3-YEAR CYCLE-
`(i) IN GENERAL- Procedures under which every 3 years
(or such shorter cycle as the State may determine),
upon the request of either parent, or, if there is an
assignment under part A, upon the request of the State
agency under the State plan or of either parent, the
State shall with respect to a support order being
enforced under this part, taking into account the best
interests of the child involved--
`(I) review and, if appropriate, adjust the order in accordance
with the guidelines established pursuant to section 467(a) if the
amount of the child support award under the order differs from the
amount that would be awarded in accordance with the guidelines;
`(II) apply a cost-of-living adjustment to the order in
accordance with a formula developed by the State; or
`(III) use automated methods (including automated comparisons
with wage or State income tax data) to identify orders eligible for
review, conduct the review, identify orders eligible for
adjustment, and apply the appropriate adjustment to the orders
eligible for adjustment under any threshold that may be established
by the State.
`(ii) OPPORTUNITY TO REQUEST REVIEW OF ADJUSTMENT- If
the State elects to conduct the review under subclause
(II) or (III) of clause (i), procedures which permit
either party to contest the adjustment, within 30 days
after the date of the notice of the adjustment, by
making a request for review and, if appropriate,
adjustment of the order in accordance with the child
support guidelines established pursuant to section
467(a).
`(iii) NO PROOF OF CHANGE IN CIRCUMSTANCES NECESSARY
IN 3-YEAR CYCLE REVIEW- Procedures which provide that
any adjustment under clause (i) shall be made without a
requirement for proof or showing of a change in
circumstances.
`(B) PROOF OF SUBSTANTIAL CHANGE IN CIRCUMSTANCES
NECESSARY IN REQUEST FOR REVIEW OUTSIDE 3-YEAR CYCLE-
Procedures under which, in the case of a request for a
review, and if appropriate, an adjustment outside the
3-year cycle (or such shorter cycle as the State may
determine) under clause (i), the State shall review and, if
the requesting party demonstrates a substantial change in
circumstances, adjust the order in accordance with the
guidelines established pursuant to section 467(a).
`(C) NOTICE OF RIGHT TO REVIEW- Procedures which require
the State to provide notice not less than once every 3
years to the parents subject to the order informing the
parents of their right to request the State to review and,
if appropriate, adjust the order pursuant to this
paragraph. The notice may be included in the order.'.
SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES RELATING
TO CHILD SUPPORT.
Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is
amended by adding at the end the following new paragraphs:
`(4) In response to a request by the head of a State or local
child support enforcement agency (or a State or local government
official authorized by the head of such an agency), if the person
making the request certifies to the consumer reporting agency that--
`(A) the consumer report is needed for the purpose of
establishing an individual's capacity to make child support
payments or determining the appropriate level of such payments;
`(B) the paternity of the consumer for the child to which the
obligation relates has been established or acknowledged by the
consumer in accordance with State laws under which the
obligation arises (if required by those laws);
`(C) the person has provided at least 10 days' prior notice
to the consumer whose report is requested, by certified or
registered mail to the last known address of the consumer, that
the report will be requested; and
`(D) the consumer report will be kept confidential, will be
used solely for a purpose described in subparagraph (A), and
will not be used in connection with any other civil,
administrative, or criminal proceeding, or for any other purpose.
`(5) To an agency administering a State plan under section 454 of
the Social Security Act (42 U.S.C. 654) for use to set an initial
or modified child support award.'.
SEC. 353. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING
FINANCIAL RECORDS TO STATE CHILD SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.
Part D of title IV (42 U.S.C. 651-669) is amended by adding at
the end the following:
`SEC. 469A. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING
FINANCIAL RECORDS TO STATE CHILD SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.
`(a) IN GENERAL- Notwithstanding any other provision of Federal
or State law, a financial institution shall not be liable under any
Federal or State law to any person for disclosing any financial
record of an individual to a State child support enforcement agency
attempting to establish, modify, or enforce a child support
obligation of such individual.
`(b) PROHIBITION OF DISCLOSURE OF FINANCIAL RECORD OBTAINED BY
STATE CHILD SUPPORT ENFORCEMENT AGENCY- A State child support
enforcement agency which obtains a financial record of an
individual from a financial institution pursuant to subsection (a)
may disclose such financial record only for the purpose of, and to
the extent necessary in, establishing, modifying, or enforcing a
child support obligation of such individual.
`(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLOSURE-
`(1) DISCLOSURE BY STATE OFFICER OR EMPLOYEE- If any person
knowingly, or by reason of negligence, discloses a financial
record of an individual in violation of subsection (b), such
individual may bring a civil action for damages against such
person in a district court of the United States.
`(2) NO LIABILITY FOR GOOD FAITH BUT ERRONEOUS
INTERPRETATION- No liability shall arise under this subsection
with respect to any disclosure which results from a good faith,
but erroneous, interpretation of subsection (b).
`(3) DAMAGES- In any action brought under paragraph (1), upon
a finding of liability on the part of the defendant, the
defendant shall be liable to the plaintiff in an amount equal
to the sum of--
`(A) the greater of--
`(i) $1,000 for each act of unauthorized disclosure
of a financial record with respect to which such
defendant is found liable; or
`(ii) the sum of--
`(I) the actual damages sustained by the plaintiff as a result of
such unauthorized disclosure; plus
`(II) in the case of a willful disclosure or a disclosure which
is the result of gross negligence, punitive damages; plus
`(B) the costs (including attorney's fees) of the action.
`(d) DEFINITIONS- For purposes of this section--
`(1) FINANCIAL INSTITUTION- The term `financial institution'
means--
`(A) a depository institution, as defined in section 3(c)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
`(B) an institution-affiliated party, as defined in
section 3(u) of such Act (12 U.S.C. 1813(u));
`(C) any Federal credit union or State credit union, as
defined in section 101 of the Federal Credit Union Act (12
U.S.C. 1752), including an institution-affiliated party of
such a credit union, as defined in section 206(r) of such
Act (12 U.S.C. 1786(r)); and
`(D) any benefit association, insurance company, safe
deposit company, money-market mutual fund, or similar
entity authorized to do business in the State.
`(2) FINANCIAL RECORD- The term `financial record' has the
meaning given such term in section 1101 of the Right to
Financial Privacy Act of 1978 (12 U.S.C. 3401).'.
SUBTITLE G--ENFORCEMENT OF SUPPORT ORDERS
SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.
(a) COLLECTION OF FEES- Section 6305(a) of the Internal Revenue
Code of 1986 (relating to collection of certain liability) is
amended--
(1) by striking `and' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and
inserting `, and';
(3) by adding at the end the following new paragraph:
`(5) no additional fee may be assessed for adjustments to an
amount previously certified pursuant to such section 452(b)
with respect to the same obligor.'; and
(4) by striking `Secretary of Health, Education, and Welfare'
each place it appears and inserting `Secretary of Health and
Human Services'.
(b) EFFECTIVE DATE- The amendments made by this section shall
become effective October 1, 1997.
SEC. 362. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.
(a) CONSOLIDATION AND STREAMLINING OF AUTHORITIES- Section 459
(42 U.S.C. 659) is amended to read as follows:
`SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING,
GARNISHMENT, AND SIMILAR PROCEEDINGS FOR
ENFORCEMENT OF CHILD SUPPORT AND ALIMONY
OBLIGATIONS.
`(a) CONSENT TO SUPPORT ENFORCEMENT- Notwithstanding any other
provision of law (including section 207 of this Act and section
5301 of title 38, United States Code), effective January 1, 1975,
moneys (the entitlement to which is based upon remuneration for
employment) due from, or payable by, the United States or the
District of Columbia (including any agency, subdivision, or
instrumentality thereof) to any individual, including members of
the Armed Forces of the United States, shall be subject, in like
manner and to the same extent as if the United States or the
District of Columbia were a private person, to withholding in
accordance with State law enacted pursuant to subsections (a)(1)
and (b) of section 466 and regulations of the Secretary under such
subsections, and to any other legal process brought, by a State
agency administering a program under a State plan approved under
this part or by an individual obligee, to enforce the legal
obligation of the individual to provide child support or alimony.
`(b) CONSENT TO REQUIREMENTS APPLICABLE TO PRIVATE PERSON- With
respect to notice to withhold income pursuant to subsection (a)(1)
or (b) of section 466, or any other order or process to enforce
support obligations against an individual (if the order or process
contains or is accompanied by sufficient data to permit prompt
identification of the individual and the moneys involved), each
governmental entity specified in subsection (a) shall be subject to
the same requirements as would apply if the entity were a private
person, except as otherwise provided in this section.
`(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE OR PROCESS--
`(1) DESIGNATION OF AGENT- The head of each agency subject to
this section shall--
`(A) designate an agent or agents to receive orders and
accept service of process in matters relating to child
support or alimony; and
`(B) annually publish in the Federal Register the
designation of the agent or agents, identified by title or
position, mailing address, and telephone number.
`(2) RESPONSE TO NOTICE OR PROCESS- If an agent designated
pursuant to paragraph (1) of this subsection receives notice
pursuant to State procedures in effect pursuant to subsection
(a)(1) or (b) of section 466, or is effectively served with any
order, process, or interrogatory, with respect to an
individual's child support or alimony payment obligations, the
agent shall--
`(A) as soon as possible (but not later than 15 days)
thereafter, send written notice of the notice or service
(together with a copy of the notice or service) to the
individual at the duty station or last-known home address
of the individual;
`(B) within 30 days (or such longer period as may be
prescribed by applicable State law) after receipt of a
notice pursuant to such State procedures, comply with all
applicable provisions of section 466; and
`(C) within 30 days (or such longer period as may be
prescribed by applicable State law) after effective service
of any other such order, process, or interrogatory, respond
to the order, process, or interrogatory.
`(d) PRIORITY OF CLAIMS- If a governmental entity specified in
subsection (a) receives notice or is served with process, as
provided in this section, concerning amounts owed by an individual
to more than 1 person--
`(1) support collection under section 466(b) must be given
priority over any other process, as provided in section
466(b)(7);
`(2) allocation of moneys due or payable to an individual
among claimants under section 466(b) shall be governed by
section 466(b) and the regulations prescribed under such
section; and
`(3) such moneys as remain after compliance with paragraphs
(1) and (2) shall be available to satisfy any other such
processes on a first-come, first-served basis, with any such
process being satisfied out of such moneys as remain after the
satisfaction of all such processes which have been previously
served.
`(e) NO REQUIREMENT TO VARY PAY CYCLES- A governmental entity
that is affected by legal process served for the enforcement of an
individual's child support or alimony payment obligations shall not
be required to vary its normal pay and disbursement cycle in order
to comply with the legal process.
`(f) RELIEF FROM LIABILITY-
`(1) Neither the United States, nor the government of the
District of Columbia, nor any disbursing officer shall be
liable with respect to any payment made from moneys due or
payable from the United States to any individual pursuant to
legal process regular on its face, if the payment is made in
accordance with this section and the regulations issued to
carry out this section.
`(2) No Federal employee whose duties include taking actions
necessary to comply with the requirements of subsection (a)
with regard to any individual shall be subject under any law to
any disciplinary action or civil or criminal liability or
penalty for, or on account of, any disclosure of information
made by the employee in connection with the carrying out of
such actions.
`(g) REGULATIONS- Authority to promulgate regulations for the
implementation of this section shall, insofar as this section
applies to moneys due from (or payable by)--
`(1) the United States (other than the legislative or
judicial branches of the Federal Government) or the government
of the District of Columbia, be vested in the President (or the
designee of the President);
`(2) the legislative branch of the Federal Government, be
vested jointly in the President pro tempore of the Senate and
the Speaker of the House of Representatives (or their
designees), and
`(3) the judicial branch of the Federal Government, be vested
in the Chief Justice of the United States (or the designee of
the Chief Justice).
`(h) MONEYS SUBJECT TO PROCESS-
`(1) IN GENERAL- Subject to paragraph (2), moneys paid or
payable to an individual which are considered to be based upon
remuneration for employment, for purposes of this section--
`(A) consist of--
`(i) compensation paid or payable for personal
services of the individual, whether the compensation is
denominated as wages, salary, commission, bonus, pay,
allowances, or otherwise (including severance pay, sick
pay, and incentive pay);
`(ii) periodic benefits (including a periodic benefit
as defined in section 228(h)(3)) or other payments--
`(I) under the insurance system established by title II;
`(II) under any other system or fund established by the United
States which provides for the payment of pensions, retirement or
retired pay, annuities, dependents' or survivors' benefits, or
similar amounts payable on account of personal services performed
by the individual or any other individual;
`(III) as compensation for death under any Federal program;
`(IV) under any Federal program established to provide `black
lung' benefits; or
`(V) by the Secretary of Veterans Affairs as compensation for a
service-connected disability paid by the Secretary to a former
member of the Armed Forces who is in receipt of retired or retainer
pay if the former member has waived a portion of the retired or
retainer pay in order to receive such compensation; and
`(iii) worker's compensation benefits paid under
Federal or State law but
`(B) do not include any payment--
`(i) by way of reimbursement or otherwise, to defray
expenses incurred by the individual in carrying out
duties associated with the employment of the
individual; or
`(ii) as allowances for members of the uniformed
services payable pursuant to chapter 7 of title 37,
United States Code, as prescribed by the Secretaries
concerned (defined by section 101(5) of such title) as
necessary for the efficient performance of duty.
`(2) CERTAIN AMOUNTS EXCLUDED- In determining the amount of
any moneys due from, or payable by, the United States to any
individual, there shall be excluded amounts which--
`(A) are owed by the individual to the United States;
`(B) are required by law to be, and are, deducted from
the remuneration or other payment involved, including
Federal employment taxes, and fines and forfeitures ordered
by court-martial;
`(C) are properly withheld for Federal, State, or local
income tax purposes, if the withholding of the amounts is
authorized or required by law and if amounts withheld are
not greater than would be the case if the individual
claimed all dependents to which he was entitled (the
withholding of additional amounts pursuant to section
3402(i) of the Internal Revenue Code of 1986 may be
permitted only when the individual presents evidence of a
tax obligation which supports the additional withholding);
`(D) are deducted as health insurance premiums;
`(E) are deducted as normal retirement contributions (not
including amounts deducted for supplementary coverage); or
`(F) are deducted as normal life insurance premiums from
salary or other remuneration for employment (not including
amounts deducted for supplementary coverage).
`(i) DEFINITIONS- For purposes of this section--
`(1) UNITED STATES- The term `United States' includes any
department, agency, or instrumentality of the legislative,
judicial, or executive branch of the Federal Government, the
United States Postal Service, the Postal Rate Commission, any
Federal corporation created by an Act of Congress that is
wholly owned by the Federal Government, and the governments of
the territories and possessions of the United States.
`(2) CHILD SUPPORT- The term `child support', when used in
reference to the legal obligations of an individual to provide
such support, means amounts required to be paid under a
judgment, decree, or order, whether temporary, final, or
subject to modification, issued by a court or an administrative
agency of competent jurisdiction, for the support and
maintenance of a child, including a child who has attained the
age of majority under the law of the issuing State, or a child
and the parent with whom the child is living, which provides
for monetary support, health care, arrearages or reimbursement,
and which may include other related costs and fees, interest
and penalties, income withholding, attorney's fees, and other
relief.
`(3) ALIMONY-
`(A) IN GENERAL- The term `alimony', when used in
reference to the legal obligations of an individual to
provide the same, means periodic payments of funds for the
support and maintenance of the spouse (or former spouse) of
the individual, and (subject to and in accordance with
State law) includes separate maintenance, alimony pendente
lite, maintenance, and spousal support, and includes
attorney's fees, interest, and court costs when and to the
extent that the same are expressly made recoverable as such
pursuant to a decree, order, or judgment issued in
accordance with applicable State law by a court of
competent jurisdiction.
`(B) EXCEPTIONS- Such term does not include--
`(i) any child support; or
`(ii) any payment or transfer of property or its
value by an individual to the spouse or a former spouse
of the individual in compliance with any community
property settlement, equitable distribution of
property, or other division of property between spouses
or former spouses.
`(4) PRIVATE PERSON- The term `private person' means a person
who does not have sovereign or other special immunity or
privilege which causes the person not to be subject to legal
process.
`(5) LEGAL PROCESS- The term `legal process' means any writ,
order, summons, or other similar process in the nature of
garnishment--
`(A) which is issued by--
`(i) a court or an administrative agency of competent
jurisdiction in any State, territory, or possession of
the United States;
`(ii) a court or an administrative agency of
competent jurisdiction in any foreign country with
which the United States has entered into an agreement
which requires the United States to honor the process; or
`(iii) an authorized official pursuant to an order of
such a court or an administrative agency of competent
jurisdiction or pursuant to State or local law; and
`(B) which is directed to, and the purpose of which is to
compel, a governmental entity which holds moneys which are
otherwise payable to an individual to make a payment from
the moneys to another party in order to satisfy a legal
obligation of the individual to provide child support or
make alimony payments.'.
(b) CONFORMING AMENDMENTS-
(1) TO PART D OF TITLE IV- Sections 461 and 462 (42 U.S.C.
661 and 662) are repealed.
(2) TO TITLE 5, UNITED STATES CODE- Section 5520a of title 5,
United States Code, is amended, in subsections (h)(2) and (i),
by striking `sections 459, 461, and 462 of the Social Security
Act (42 U.S.C. 659, 661, and 662)' and inserting `section 459
of the Social Security Act (42 U.S.C. 659)'.
(c) MILITARY RETIRED AND RETAINER PAY-
(1) DEFINITION OF COURT- Section 1408(a)(1) of title 10,
United States Code, is amended--
(A) by striking `and' at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph (C)
and inserting `; and'; and
(C) by adding after subparagraph (C) the following new
subparagraph:
`(D) any administrative or judicial tribunal of a State
competent to enter orders for support or maintenance
(including a State agency administering a program under a
State plan approved under part D of title IV of the Social
Security Act), and, for purposes of this subparagraph, the
term `State' includes the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, and
American Samoa.'.
(2) DEFINITION OF COURT ORDER- Section 1408(a)(2) of such
title is amended--
(A) by inserting `or a support order, as defined in
section 453(p) of the Social Security Act (42 U.S.C.
653(p)),' before `which--';
(B) in subparagraph (B)(i), by striking `(as defined in
section 462(b) of the Social Security Act (42 U.S.C.
662(b)))' and inserting `(as defined in section 459(i)(2)
of the Social Security Act (42 U.S.C. 659(i)(2)))'; and
(C) in subparagraph (B)(ii), by striking `(as defined in
section 462(c) of the Social Security Act (42 U.S.C.
662(c)))' and inserting `(as defined in section 459(i)(3)
of the Social Security Act (42 U.S.C. 659(i)(3)))'.
(3) PUBLIC PAYEE- Section 1408(d) of such title is amended--
(A) in the heading, by inserting `(OR FOR BENEFIT OF)'
before `SPOUSE OR'; and
(B) in paragraph (1), in the 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- The amendments made by this section shall
become effective 6 months after the date of the enactment of this
Act.
SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF
THE ARMED FORCES.
(a) AVAILABILITY OF LOCATOR INFORMATION-
(1) MAINTENANCE OF ADDRESS INFORMATION- The Secretary of
Defense shall establish a centralized personnel locator service
that includes the address of each member of the Armed Forces
under the jurisdiction of the Secretary. Upon request of the
Secretary of Transportation, addresses for members of the Coast
Guard shall be included in the centralized personnel locator
service.
(2) TYPE OF ADDRESS-
(A) RESIDENTIAL ADDRESS- Except as provided in
subparagraph (B), the address for a member of the Armed
Forces shown in the locator service shall be the
residential address of that member.
(B) DUTY ADDRESS- The address for a member of the Armed
Forces shown in the locator service shall be the duty
address of that member in the case of a member--
(i) who is permanently assigned overseas, to a
vessel, or to a routinely deployable unit; or
(ii) with respect to whom the Secretary concerned
makes a determination that the member's residential
address should not be disclosed due to national
security or safety concerns.
(3) UPDATING OF LOCATOR INFORMATION- Within 30 days after a
member listed in the locator service establishes a new
residential address (or a new duty address, in the case of a
member covered by paragraph (2)(B)), the Secretary concerned
shall update the locator service to indicate the new address of
the member.
(4) AVAILABILITY OF INFORMATION- The Secretary of Defense
shall make information regarding the address of a member of the
Armed Forces listed in the locator service available, on
request, to the Federal Parent Locator Service established
under section 453 of the Social Security Act.
(b) FACILITATING GRANTING OF LEAVE FOR ATTENDANCE AT HEARINGS-
(1) REGULATIONS- The Secretary of each military department,
and the Secretary of Transportation with respect to the Coast
Guard when it is not operating as a service in the Navy, shall
prescribe regulations to facilitate the granting of leave to a
member of the Armed Forces under the jurisdiction of that
Secretary in a case in which--
(A) the leave is needed for the member to attend a
hearing described in paragraph (2);
(B) the member is not serving in or with a unit deployed
in a contingency operation (as defined in section 101 of
title 10, United States Code); and
(C) the exigencies of military service (as determined by
the Secretary concerned) do not otherwise require that such
leave not be granted.
(2) COVERED HEARINGS- Paragraph (1) applies to a hearing that
is conducted by a court or pursuant to an administrative
process established under State law, in connection with a civil
action--
(A) to determine whether a member of the Armed Forces is
a natural parent of a child; or
(B) to determine an obligation of a member of the Armed
Forces to provide child support.
(3) DEFINITIONS- For purposes of this subsection--
(A) The term `court' has the meaning given that term in
section 1408(a) of title 10, United States Code.
(B) The term `child support' has the meaning given such
term in section 459(i) of the Social Security Act (42
U.S.C. 659(i)).
(c) PAYMENT OF MILITARY RETIRED PAY IN COMPLIANCE WITH CHILD
SUPPORT ORDERS-
(1) DATE OF CERTIFICATION OF COURT ORDER- Section 1408 of
title 10, United States Code, as amended by section 362(c)(4)
of this Act, is amended--
(A) by redesignating subsections (i) and (j) as
subsections (j) and (k), respectively; and
(B) by inserting after subsection (h) the following new
subsection:
`(i) CERTIFICATION DATE- It is not necessary that the date of a
certification of the authenticity or completeness of a copy of a
court order for child support received by the Secretary concerned
for the purposes of this section be recent in relation to the date
of receipt by the Secretary.'.
(2) PAYMENTS CONSISTENT WITH ASSIGNMENTS OF RIGHTS TO STATES-
Section 1408(d)(1) of such title is amended by inserting after
the 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) 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
Secretary finds affords comparable rights to child support
creditors; and
`(2) procedures under which, in any case in which the State
knows of a transfer by a child support debtor with respect to
which such a prima facie case is established, the State must--
`(A) seek to void such transfer; or
`(B) obtain a settlement in the best interests of the
child support creditor.'.
SEC. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD SUPPORT.
(a) IN GENERAL- Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 315, 317, and 323 of this Act, is amended by inserting
after paragraph (14) the following new paragraph:
`(15) PROCEDURES TO ENSURE THAT PERSONS OWING PAST-DUE
SUPPORT WORK OR HAVE A PLAN FOR PAYMENT OF SUCH SUPPORT-
`(A) IN GENERAL- Procedures under which the State has the
authority, in any case in which an individual owes past-due
support with respect to a child receiving assistance under
a State program funded under part A, to issue an order or
to request that a court or an administrative process
established pursuant to State law issue an order that
requires the individual to--
`(i) pay such support in accordance with a plan
approved by the court, or, at the option of the State,
a plan approved by the State agency administering the
State program under this part; or
`(ii) if the individual is subject to such a plan and
is not incapacitated, participate in such work
activities (as defined in section 407(d)) as the court,
or, at the option of the State, the State agency
administering the State program under this part, deems
appropriate.
`(B) PAST-DUE SUPPORT DEFINED- For purposes of
subparagraph (A), the term `past-due support' means the
amount of a delinquency, determined under a court order, or
an order of an administrative process established under
State law, for support and maintenance of a child, or of a
child and the parent with whom the child is living.'.
(b) CONFORMING AMENDMENT- The flush paragraph at the end of
section 466(a) (42 U.S.C. 666(a)) is amended by striking `and (7)'
and inserting `(7), and (15)'.
SEC. 366. DEFINITION OF SUPPORT ORDER.
Section 453 (42 U.S.C. 653) as amended by sections 316 and 345(b)
of this Act, is amended by adding at the end the following new
subsection:
`(p) SUPPORT ORDER DEFINED- As used in this part, the term
`support order' means a judgment, decree, or order, whether
temporary, final, or subject to modification, issued by a court or
an administrative agency of competent jurisdiction, for the support
and maintenance of a child, including a child who has attained the
age of majority under the law of the issuing State, or a child and
the parent with whom the child is living, which provides for
monetary support, health care, arrearages, or reimbursement, and
which may include related costs and fees, interest and penalties,
income withholding, attorneys' fees, and other relief.'.
SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.
Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as
follows:
`(7) REPORTING ARREARAGES TO CREDIT BUREAUS-
`(A) IN GENERAL- Procedures (subject to safeguards
pursuant to subparagraph (B)) requiring the State to report
periodically to consumer reporting agencies (as defined in
section 603(f) of the Fair Credit Reporting Act (15 U.S.C.
1681a(f)) the name of any noncustodial parent who is
delinquent in the payment of support, and the amount of
overdue support owed by such parent.
`(B) SAFEGUARDS- Procedures ensuring that, in carrying
out subparagraph (A), information with respect to a
noncustodial parent is reported--
`(i) only after such parent has been afforded all due
process required under State law, including notice and
a reasonable opportunity to contest the accuracy of
such information; and
`(ii) only to an entity that has furnished evidence
satisfactory to the State that the entity is a consumer
reporting agency (as so defined).'.
SEC. 368. LIENS.
Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read as
follows:
`(4) LIENS- Procedures under which--
`(A) liens arise by operation of law against real and
personal property for amounts of overdue support owed by a
noncustodial parent who resides or owns property in the
State; and
`(B) the State accords full faith and credit to liens
described in subparagraph (A) arising in another State,
when the State agency, party, or other entity seeking to
enforce such a lien complies with the procedural rules
relating to recording or serving liens that arise within
the State, except that such rules may not require judicial
notice or hearing prior to the enforcement of such a lien.'.
SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,
317, 323, and 365 of this Act, is amended by inserting after
paragraph (15) the following:
`(16) AUTHORITY TO WITHHOLD OR SUSPEND LICENSES- Procedures
under which the State has (and uses in appropriate cases)
authority to withhold or suspend, or to restrict the use of
driver's licenses, professional and occupational licenses, and
recreational licenses of individuals owing overdue support or
failing, after receiving appropriate notice, to comply with
subpoenas or warrants relating to paternity or child support
proceedings.'.
SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD SUPPORT.
(a) HHS CERTIFICATION PROCEDURE-
(1) SECRETARIAL RESPONSIBILITY- Section 452 (42 U.S.C. 652),
as amended by section 345 of this Act, is amended by adding at
the end the following new subsection:
`(k)(1) If the Secretary receives a certification by a State
agency in accordance with the requirements of section 454(31) that
an individual owes arrearages of child support in an amount
exceeding $5,000, the Secretary shall transmit such certification
to the Secretary of State for action (with respect to denial,
revocation, or limitation of passports) pursuant to paragraph (2).
`(2) The Secretary of State shall, upon certification by the
Secretary transmitted under paragraph (1), refuse to issue a
passport to such individual, and may revoke, restrict, or limit a
passport issued previously to such individual.
`(3) The Secretary and the Secretary of State shall not be liable
to an individual for any action with respect to a certification by
a State agency under this section.'.
(2) STATE AGENCY RESPONSIBILITY- Section 454 (42 U.S.C. 654),
as amended by sections 301(b), 303(a), 312(b), 313(a), 333, and
343(b) of this Act, is amended--
(A) by striking `and' at the end of paragraph (29);
(B) by striking the period at the end of paragraph (30)
and inserting `; and'; and
(C) by adding after paragraph (30) the following new
paragraph:
`(31) provide that the State agency will have in effect a
procedure for certifying to the Secretary, for purposes of the
procedure under section 452(k), determinations that individuals
owe arrearages of child support in an amount exceeding $5,000,
under which procedure--
`(A) each individual concerned is afforded notice of such
determination and the consequences thereof, and an
opportunity to contest the determination; and
`(B) the certification by the State agency is furnished
to the Secretary in such format, and accompanied by such
supporting documentation, as the Secretary may require.'.
(b) EFFECTIVE DATE- This section and the amendments made by this
section shall become effective October 1, 1997.
SEC. 371. INTERNATIONAL SUPPORT ENFORCEMENT.
(a) AUTHORITY FOR INTERNATIONAL AGREEMENTS- Part D of title IV,
as amended by section 362(a) of this Act, is amended by adding
after section 459 the following new section:
`SEC. 459A. INTERNATIONAL SUPPORT ENFORCEMENT.
`(a) AUTHORITY FOR DECLARATIONS-
`(1) DECLARATION- The Secretary of State, with the
concurrence of the Secretary of Health and Human Services, is
authorized to declare any foreign country (or a political
subdivision thereof) to be a foreign reciprocating country if
the foreign country has established, or undertakes to
establish, procedures for the establishment and enforcement of
duties of support owed to obligees who are residents of the
United States, and such procedures are substantially in
conformity with the standards prescribed under subsection (b).
`(2) REVOCATION- A declaration with respect to a foreign
country made pursuant to paragraph (1) may be revoked if the
Secretaries of State and Health and Human Services determine
that--
`(A) the procedures established by the foreign country
regarding the establishment and enforcement of duties of
support have been so changed, or the foreign country's
implementation of such procedures is so unsatisfactory,
that such procedures do not meet the criteria for such a
declaration; or
`(B) continued operation of the declaration is not
consistent with the purposes of this part.
`(3) FORM OF DECLARATION- A declaration under paragraph (1)
may be made in the form of an international agreement, in
connection with an international agreement or corresponding
foreign declaration, or on a unilateral basis.
`(b) STANDARDS FOR FOREIGN SUPPORT ENFORCEMENT PROCEDURES-
`(1) MANDATORY ELEMENTS- Support enforcement procedures of a
foreign country which may be the subject of a declaration
pursuant to subsection (a)(1) shall include the following
elements:
`(A) The foreign country (or political subdivision
thereof) has in effect procedures, available to residents
of the United States--
`(i) for establishment of paternity, and for
establishment of orders of support for children and
custodial parents; and
`(ii) for enforcement of orders to provide support to
children and custodial parents, including procedures
for collection and appropriate distribution of support
payments under such orders.
`(B) The procedures described in subparagraph (A),
including legal and administrative assistance, are provided
to residents of the United States at no cost.
`(C) An agency of the foreign country is designated as a
Central Authority responsible for--
`(i) facilitating support enforcement in cases
involving residents of the foreign country and
residents of the United States; and
`(ii) ensuring compliance with the standards
established pursuant to this subsection.
`(2) ADDITIONAL ELEMENTS- The Secretary of Health and Human
Services and the Secretary of State, in consultation with the
States, may establish such additional standards as may be
considered necessary to further the purposes of this section.
`(c) DESIGNATION OF UNITED STATES CENTRAL AUTHORITY- It shall be
the responsibility of the Secretary of Health and Human Services to
facilitate support enforcement in cases involving residents of the
United States and residents of foreign countries that are the
subject of a declaration under this section, by activities
including--
`(1) development of uniform forms and procedures for use in
such cases;
`(2) notification of foreign reciprocating countries of the
State of residence of individuals sought for support
enforcement purposes, on the basis of information provided by
the Federal Parent Locator Service; and
`(3) such other oversight, assistance, and coordination
activities as the Secretary may find necessary and appropriate.
`(d) EFFECT ON OTHER LAWS- States may enter into reciprocal
arrangements for the establishment and enforcement of support
obligations with foreign countries that are not the subject of a
declaration pursuant to subsection (a), to the extent consistent
with Federal law.'.
(b) STATE PLAN REQUIREMENT- Section 454 (42 U.S.C. 654), as
amended by sections 301(b), 303(a), 312(b), 313(a), 333, 343(b),
and 370(a)(2) of this Act, is amended--
(1) by striking `and' at the end of paragraph (30);
(2) by striking the period at the end of paragraph (31) and
inserting `; and'; and
(3) by adding after paragraph (31) the following new paragraph:
`(32)(A) provide that any request for services under this
part by a foreign reciprocating country or a foreign country
with which the State has an arrangement described in section
459A(d)(2) shall be treated as a request by a State;
`(B) provide, at State option, notwithstanding paragraph (4)
or any other provision of this part, for services under the
plan for enforcement of a spousal support order not described
in paragraph (4)(B) entered by such a country (or subdivision);
and
`(C) provide that no applications will be required from, and
no costs will be assessed for such services against, the
foreign reciprocating country or foreign obligee (but costs may
at State option be assessed against the obligor).'.
SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,
317, 323, 365, and 369 of this Act, is amended by inserting after
paragraph (16) the following new paragraph:
`(17) FINANCIAL INSTITUTION DATA MATCHES-
`(A) IN GENERAL- Procedures under which the State agency
shall enter into agreements with financial institutions
doing business in the State--
`(i) to develop and operate, in coordination with
such financial institutions, a data match system, using
automated data exchanges to the maximum extent
feasible, in which each such financial institution is
required to provide for each calendar quarter the name,
record address, social security number or other
taxpayer identification number, and other identifying
information for each noncustodial parent who maintains
an account at such institution and who owes past-due
support, as identified by the State by name and social
security number or other taxpayer identification
number; and
`(ii) in response to a notice of lien or levy,
encumber or surrender, as the case may be, assets held
by such institution on behalf of any noncustodial
parent who is subject to a child support lien pursuant
to paragraph (4).
`(B) REASONABLE FEES- The State agency may pay a
reasonable fee to a financial institution for conducting
the data match provided for in subparagraph (A)(i), not to
exceed the actual costs incurred by such financial
institution.
`(C) LIABILITY- A financial institution shall not be
liable under any Federal or State law to any person--
`(i) for any disclosure of information to the State
agency under subparagraph (A)(i);
`(ii) for encumbering or surrendering any assets held
by such financial institution in response to a notice
of lien or levy issued by the State agency as provided
for in subparagraph (A)(ii); or
`(iii) for any other action taken in good faith to
comply with the requirements of subparagraph (A).
`(D) DEFINITIONS- For purposes of this paragraph--
`(i) FINANCIAL INSTITUTION- The term `financial
institution' has the meaning given to such term by
section 469A(d)(1).
`(ii) ACCOUNT- The term `account' means a demand
deposit account, checking or negotiable withdrawal
order account, savings account, time deposit account,
or money-market mutual fund account.'.
SEC. 373. ENFORCEMENT OF ORDERS AGAINST PATERNAL OR MATERNAL
GRANDPARENTS IN CASES OF MINOR PARENTS.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,
317, 323, 365, 369, and 372 of this Act, is amended by inserting
after paragraph (17) the following new paragraph:
`(18) ENFORCEMENT OF ORDERS AGAINST PATERNAL OR MATERNAL
GRANDPARENTS- Procedures under which, at the State's option,
any child support order enforced under this part with respect
to a child of minor parents, if the custodial parent of such
child is receiving assistance under the State program under
part A, shall be enforceable, jointly and severally, against
the parents of the noncustodial parent of such child.'.
SEC. 374. NONDISCHARGEABILITY IN BANKRUPTCY OF CERTAIN DEBTS FOR
THE SUPPORT OF A CHILD.
(a) AMENDMENT TO TITLE 11 OF THE UNITED STATES CODE- Section
523(a) of title 11, United States Code, is amended--
(1) by striking `or' at the end of paragraph (16);
(2) by striking the period at the end of paragraph (17) and
inserting `; or';
(3) by adding at the end the following:
`(18) owed under State law to a State or municipality that is--
`(A) in the nature of support, and
`(B) enforceable under part D of title IV of the Social
Security Act (42 U.S.C. 601 et seq.).'; and
(4) in paragraph (5), by striking `section 402(a)(26)' and
inserting `section 408(a)(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.'.
(c) APPLICATION OF AMENDMENTS- The amendments made by this
section shall apply only with respect to cases commenced under
title 11 of the United States Code after the date of the enactment
of this Act.
SEC. 375. CHILD SUPPORT ENFORCEMENT FOR INDIAN TRIBES.
(a) CHILD SUPPORT ENFORCEMENT AGREEMENTS- Section 454 (42 U.S.C.
654), as amended by sections 301(b), 303(a), 312(b), 313(a), 333,
343(b), 370(a)(2), and 371(b) of this Act, is amended--
(1) by striking `and' at the end of paragraph (31);
(2) by striking the period at the end of paragraph (32) and
inserting `; and';
(3) by adding after paragraph (32) the following new paragraph:
`(33) provide that a State that receives funding pursuant to
section 428 and that has within its borders Indian country (as
defined in section 1151 of title 18, United States Code) may
enter into cooperative agreements with an Indian tribe or
tribal organization (as defined in subsections (e) and (l) of
section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)), if the Indian tribe or tribal
organization demonstrates that such tribe or organization has
an established tribal court system or a Court of Indian
Offenses with the authority to establish paternity, establish,
modify, and enforce support orders, and to enter support orders
in accordance with child support guidelines established by such
tribe or organization, under which the State and tribe or
organization shall provide for the cooperative delivery of
child support enforcement services in Indian country and for
the forwarding of all funding collected pursuant to the
functions performed by the tribe or organization to the State
agency, or conversely, by the State agency to the tribe or
organization, which shall distribute such funding in accordance
with such agreement.'; and
(4) by adding at the end the following new sentence: `Nothing
in paragraph (33) shall void any provision of any cooperative
agreement entered into before the date of the enactment of such
paragraph, nor shall such paragraph deprive any State of
jurisdiction over Indian country (as so defined) that is
lawfully exercised under section 402 of the Act entitled `An
Act to prescribe penalties for certain acts of violence or
intimidation, and for other purposes', approved April 11, 1968
(25 U.S.C. 1322).'.
(b) DIRECT FEDERAL FUNDING TO INDIAN TRIBES AND TRIBAL
ORGANIZATIONS- Section 455 (42 U.S.C. 655) is amended by adding at
the end the following new subsection:
`(b) The Secretary may, in appropriate cases, make direct
payments under this part to an Indian tribe or tribal organization
which has an approved child support enforcement plan under this
title. In determining whether such payments are appropriate, the
Secretary shall, at a minimum, consider whether services are being
provided to eligible Indian recipients by the State agency through
an agreement entered into pursuant to section 454(34).'.
(c) COOPERATIVE ENFORCEMENT AGREEMENTS- Paragraph (7) of section
454 (42 U.S.C. 654) is amended by inserting `and Indian tribes or
tribal organizations (as defined in subsections (e) and (l) of
section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b))' after `law enforcement officials'.
(d) CONFORMING AMENDMENT- Subsection (c) of section 428 (42
U.S.C. 628) is amended to read as follows:
`(c) For purposes of this section, the terms `Indian tribe' and
`tribal organization' shall have the meanings given such terms by
subsections (e) and (l) of section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450b),
respectively.'.
SUBTITLE H--MEDICAL SUPPORT
SEC. 381. CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD SUPPORT
ORDER.
(a) IN GENERAL- Section 609(a)(2)(B) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
(1) by striking `issued by a court of competent jurisdiction';
(2) by striking the period at the end of clause (ii) and
inserting a comma; and
(3) by adding, after and below clause (ii), the following:
`if such judgment, decree, or order (I) is issued by a
court of competent jurisdiction or (II) is issued through
an administrative process established under State law and
has the force and effect of law under applicable State law.'.
(b) EFFECTIVE DATE-
(1) IN GENERAL- The amendments made by this section shall
take effect on the date of the enactment of this Act.
(2) PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1997- Any
amendment to a plan required to be made by an amendment made by
this section shall not be required to be made before the 1st
plan year beginning on or after January 1, 1997, if--
(A) during the period after the date before the date of
the enactment of this Act and before such 1st plan year,
the plan is operated in accordance with the requirements of
the amendments made by this section; and
(B) such plan amendment applies retroactively to the
period after the date before the date of the enactment of
this Act and before such 1st plan year.
A plan shall not be treated as failing to be operated in
accordance with the provisions of the plan merely because it
operates in accordance with this paragraph.
SEC. 382. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,
317, 323, 365, 369, 372, and 373 of this Act, is amended by
inserting after paragraph (18) the following new paragraph:
`(19) HEALTH CARE COVERAGE- Procedures under which all child
support orders enforced pursuant to this part shall include a
provision for the health care coverage of the child, and in the
case in which a noncustodial parent provides such coverage and
changes employment, and the new employer provides health care
coverage, the State agency shall transfer notice of the
provision to the employer, which notice shall operate to enroll
the child in the noncustodial parent's health plan, unless the
noncustodial parent contests the notice.'.
SUBTITLE I--ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR
NON-RESIDENTIAL PARENTS
SEC. 391. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.
Part D of title IV (42 U.S.C. 651-669), as amended by section 353
of this Act, is amended by adding at the end the following new
section:
`SEC. 469B. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.
`(a) IN GENERAL- The Administration for Children and Families
shall make grants under this section to enable States to establish
and administer programs to support and facilitate noncustodial
parents' access to and visitation of their children, by means of
activities including mediation (both voluntary and mandatory),
counseling, education, development of parenting plans, visitation
enforcement (including monitoring, supervision and neutral drop-off
and pickup), and development of guidelines for visitation and
alternative custody arrangements.
`(b) AMOUNT OF GRANT- The amount of the grant to be made to a
State under this section for a fiscal year shall be an amount equal
to the lesser of--
`(1) 90 percent of State expenditures during the fiscal year
for activities described in subsection (a); or
`(2) the allotment of the State under subsection (c) for the
fiscal year.
`(c) ALLOTMENTS TO STATES-
`(1) IN GENERAL- The allotment of a State for a fiscal year
is the amount that bears the same ratio to $10,000,000 for
grants under this section for the fiscal year as the number of
children in the State living with only 1 biological parent
bears to the total number of such children in all States.
`(2) MINIMUM ALLOTMENT- The Administration for Children and
Families shall adjust allotments to States under paragraph (1)
as necessary to ensure that no State is allotted less than--
`(A) $50,000 for fiscal year 1997 or 1998; or
`(B) $100,000 for any succeeding fiscal year.
`(d) NO SUPPLANTATION OF STATE EXPENDITURES FOR SIMILAR
ACTIVITIES- A State to which a grant is made under this section may
not use the grant to supplant expenditures by the State for
activities specified in subsection (a), but shall use the grant to
supplement such expenditures at a level at least equal to the level
of such expenditures for fiscal year 1995.
`(e) STATE ADMINISTRATION- Each State to which a grant is made
under this section--
`(1) may administer State programs funded with the grant,
directly or through grants to or contracts with courts, local
public agencies, or nonprofit private entities;
`(2) shall not be required to operate such programs on a
statewide basis; and
`(3) shall monitor, evaluate, and report on such programs in
accordance with regulations prescribed by the Secretary.'.
SUBTITLE J--EFFECTIVE DATES AND CONFORMING AMENDMENTS
SEC. 395. EFFECTIVE DATES AND CONFORMING AMENDMENTS.
(a) IN GENERAL- Except as otherwise specifically provided (but
subject to subsections (b) and (c))--
(1) the provisions of this title requiring the enactment or
amendment of State laws under section 466 of the Social
Security Act, or revision of State plans under section 454 of
such Act, shall be effective with respect to periods beginning
on and after October 1, 1996; and
(2) all other provisions of this title shall become effective
upon the date of the enactment of this Act.
(b) GRACE PERIOD FOR STATE LAW CHANGES- The provisions of this
title shall become effective with respect to a State on the later
of--
(1) the date specified in this title, or
(2) the effective date of laws enacted by the legislature of
such State implementing such provisions,
but in no event later than the 1st day of the 1st calendar quarter
beginning after the close of the 1st regular session of the State
legislature that begins after the date of the enactment of this
Act. For purposes of the previous sentence, in the case of a State
that has a 2-year legislative session, each year of such session
shall be deemed to be a separate regular session of the State
legislature.
(c) GRACE PERIOD FOR STATE CONSTITUTIONAL AMENDMENT- A State
shall not be found out of compliance with any requirement enacted
by this title if the State is unable to so comply without amending
the State constitution until the earlier of--
(1) 1 year after the effective date of the necessary State
constitutional amendment; or
(2) 5 years after the date of the enactment of this Act.
(d) CONFORMING AMENDMENTS-
(1) The following provisions are amended by striking `absent'
each place it appears and inserting `noncustodial':
(A) Section 451 (42 U.S.C. 651).
(B) Subsections (a)(1), (a)(8), (a)(10)(E), (a)(10)(F),
(f), and (h) of section 452 (42 U.S.C. 652).
(C) Section 453(f) (42 U.S.C. 653(f)).
(D) Paragraphs (8), (13), and (21)(A) of section 454 (42
U.S.C. 654).
(E) Section 455(e)(1) (42 U.S.C. 655(e)(1)).
(F) Section 458(a) (42 U.S.C. 658(a)).
(G) Subsections (a), (b), and (c) of section 463 (42
U.S.C. 663).
(H) Subsections (a)(3)(A), (a)(3)(C), (a)(6), and
(a)(8)(B)(ii), the last sentence of subsection (a), and
subsections (b)(1), (b)(3)(B), (b)(3)(B)(i), (b)(6)(A)(i),
(b)(9), and (e) of section 466 (42 U.S.C. 666).
(2) The following provisions are amended by striking `an
absent' each place it appears and inserting `a noncustodial':
(A) Paragraphs (2) and (3) of section 453(c) (42 U.S.C.
653(c)).
(B) Subparagraphs (B) and (C) of section 454(9) (42
U.S.C. 654(9)).
(C) Section 456(a)(3) (42 U.S.C. 656(a)(3)).
(D) Subsections (a)(3)(A), (a)(6), (a)(8)(B)(i),
(b)(3)(A), and (b)(3)(B) of section 466 (42 U.S.C. 666).
(E) Paragraphs (2) and (4) of section 469(b) (42 U.S.C.
669(b)).
TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE AND
IMMIGRATION.
The Congress makes the following statements concerning national
policy with respect to welfare and immigration:
(1) Self-sufficiency has been a basic principle of United
States immigration law since this country's earliest
immigration statutes.
(2) It continues to be the immigration policy of the United
States that--
(A) aliens within the Nation's borders not depend on
public resources to meet their needs, but rather rely on
their own capabilities and the resources of their families,
their sponsors, and private organizations, and
(B) the availability of public benefits not constitute an
incentive for immigration to the United States.
(3) Despite the principle of self-sufficiency, aliens have
been applying for and receiving public benefits from Federal,
State, and local governments at increasing rates.
(4) Current eligibility rules for public assistance and
unenforceable financial support agreements have proved wholly
incapable of assuring that individual aliens not burden the
public benefits system.
(5) It is a compelling government interest to enact new rules
for eligibility and sponsorship agreements in order to assure
that aliens be self-reliant in accordance with national
immigration policy.
(6) It is a compelling government interest to remove the
incentive for illegal immigration provided by the availability
of public benefits.
(7) With respect to the State authority to make
determinations concerning the eligibility of qualified aliens
for public benefits in this title, a State that chooses to
follow the Federal classification in determining the
eligibility of such aliens for public assistance shall be
considered to have chosen the least restrictive means available
for achieving the compelling governmental interest of assuring
that aliens be self-reliant in accordance with national
immigration policy.
SUBTITLE A--ELIGIBILITY FOR FEDERAL BENEFITS
SEC. 401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR
FEDERAL PUBLIC BENEFITS.
(a) IN GENERAL- Notwithstanding any other provision of law and
except as provided in subsection (b), an alien who is not a
qualified alien (as defined in section 431) is not eligible for any
Federal public benefit (as defined in subsection (c)).
(b) EXCEPTIONS-
(1) Subsection (a) shall not apply with respect to the
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, or to any benefit payable under title II of the
Social Security Act to which entitlement is based on an
application filed in or before the month in which this Act
becomes law.
(c) FEDERAL PUBLIC BENEFIT DEFINED-
(1) Except as provided in paragraph (2), for purposes of this
title the term `Federal public benefit' means--
(A) any grant, contract, loan, professional license, or
commercial license provided by an agency of the United
States or by appropriated funds of the United States; and
(B) any retirement, welfare, health, disability, public
or assisted housing, postsecondary education, food
assistance, unemployment benefit, or any other similar
benefit for which payments or assistance are provided to an
individual, household, or family eligibility unit by an
agency of the United States or by appropriated funds of the
United States.
(2) Such term shall not apply--
(A) to any contract, professional license, or commercial
license for a nonimmigrant whose visa for entry is related
to such employment in the United States; or
(B) with respect to benefits for an alien who as a work
authorized nonimmigrant or as an alien lawfully admitted
for permanent residence under the Immigration and
Nationality Act qualified for such benefits and for whom
the United States under reciprocal treaty agreements is
required to pay benefits, as determined by the Attorney
General, after consultation with the Secretary of State.
SEC. 402. LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR CERTAIN
FEDERAL PROGRAMS.
(a) LIMITED ELIGIBILITY FOR SPECIFIED FEDERAL PROGRAMS-
(1) IN GENERAL- Notwithstanding any other provision of law
and except as provided in paragraph (2), an alien who is a
qualified alien (as defined in section 431) is not eligible for
any specified Federal program (as defined in 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 of any
such qualifying quarter creditable for any period
beginning after December 31, 1996, did not receive any
Federal means-tested public benefit (as provided under
section 403) during any such period.
(C) VETERAN AND ACTIVE DUTY EXCEPTION- Paragraph (1)
shall not apply to an alien who is lawfully residing in any
State and is--
(i) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as
an honorable discharge and not on account of alienage,
(ii) on active duty (other than active duty for
training) in the Armed Forces of the United States, or
(iii) the spouse or unmarried dependent child of an
individual described in clause (i) or (ii).
(D) TRANSITION FOR ALIENS CURRENTLY RECEIVING BENEFITS-
(i) SSI-
(I) IN GENERAL- With respect to the specified Federal program
described in paragraph (3)(A), during the period beginning on the
date of the enactment of this Act and ending on the date which is 1
year after such date of enactment, the Commissioner of Social
Security shall redetermine the eligibility of any individual who is
receiving benefits under such program as of the date of the
enactment of this Act and whose eligibility for such benefits may
terminate by reason of the provisions of this subsection.
(II) REDETERMINATION CRITERIA- With respect to any
redetermination under subclause (I), the Commissioner of Social
Security shall apply the eligibility criteria for new applicants
for benefits under such program.
(III) GRANDFATHER PROVISION- The provisions of this subsection
and the redetermination under subclause (I), shall only apply with
respect to the benefits of an individual described in subclause (I)
for months beginning on or after the date of the redetermination
with respect to such individual.
(IV) NOTICE- Not later than March 31, 1997, the Commissioner of
Social Security shall notify an individual described in subclause
(I) of the provisions of this clause.
(ii) FOOD STAMPS-
(I) IN GENERAL- With respect to the specified Federal program
described in paragraph (3)(B), during the period beginning on the
date of enactment of this Act and ending on the date which is 1
year after the date of enactment, the State agency shall, at the
time of the recertification, recertify the eligibility of any
individual who is receiving benefits under such program as of the
date of enactment of this Act and whose eligibility for such
benefits may terminate by reason of the provisions of this
subsection.
(II) RECERTIFICATION CRITERIA- With respect to any
recertification under subclause (I), the State agency shall apply
the eligibility criteria for applicants for benefits under such
program.
(III) GRANDFATHER PROVISION- The provisions of this subsection
and the recertification under subclause (I) shall only apply with
respect to the eligibility of an alien for a program for months
beginning on or after the date of recertification, if on the date
of enactment of this Act the alien is lawfully residing in any
State and is receiving benefits under such program on such date of
enactment.
(3) SPECIFIED FEDERAL PROGRAM DEFINED- For purposes of this
title, the term `specified Federal program' means any of the
following:
(A) SSI- The supplemental security income program under
title XVI of the Social Security Act, including
supplementary payments pursuant to an agreement for Federal
administration under section 1616(a) of the Social Security
Act and payments pursuant to an agreement entered into
under section 212(b) of Public Law 93-66.
(B) FOOD STAMPS- The food stamp program as defined in
section 3(h) of the Food Stamp Act of 1977.
(b) LIMITED ELIGIBILITY FOR DESIGNATED FEDERAL PROGRAMS-
(1) IN GENERAL- Notwithstanding any other provision of law
and except as provided in section 403 and paragraph (2), a
State is authorized to determine the eligibility of an alien
who is a qualified alien (as defined in section 431) for any
designated Federal program (as defined in paragraph (3)).
(2) EXCEPTIONS- Qualified aliens under this paragraph shall
be eligible for any designated Federal program.
(A) TIME-LIMITED EXCEPTION FOR REFUGEES AND ASYLEES-
(i) An alien who is admitted to the United States as
a refugee under section 207 of the Immigration and
Nationality Act until 5 years after the date of an
alien's entry into the United States.
(ii) An alien who is granted asylum under section
208 of such Act until 5 years after the date of such
grant of asylum.
(iii) An alien whose deportation is being withheld
under section 243(h) of such Act until 5 years after
such withholding.
(B) CERTAIN PERMANENT RESIDENT ALIENS- An alien who--
(i) is lawfully admitted to the United States for
permanent residence under the Immigration and
Nationality Act; and
(ii)(I) has worked 40 qualifying quarters of coverage
as defined under title II of the Social Security Act or
can be credited with such qualifying quarters as
provided under section 435, and (II) in the case of any
such qualifying quarter creditable for any period
beginning after December 31, 1996, did not receive any
Federal means-tested public benefit (as provided under
section 403) during any such period.
(C) VETERAN AND ACTIVE DUTY EXCEPTION- An alien who is
lawfully residing in any State and is--
(i) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as
an honorable discharge and not on account of alienage,
(ii) on active duty (other than active duty for
training) in the Armed Forces of the United States, or
(iii) the spouse or unmarried dependent child of an
individual described in clause (i) or (ii).
(D) TRANSITION FOR THOSE CURRENTLY RECEIVING BENEFITS- An
alien who on the date of the enactment of this Act is
lawfully residing in any State and is receiving benefits
under such program on the date of the enactment of this Act
shall continue to be eligible to receive such benefits
until January 1, 1997.
(3) DESIGNATED FEDERAL PROGRAM DEFINED- For purposes of this
title, the term `designated Federal program' means any of the
following:
(A) TEMPORARY ASSISTANCE FOR NEEDY FAMILIES- The program
of block grants to States for temporary assistance for
needy families under part A of title IV of the Social
Security Act.
(B) SOCIAL SERVICES BLOCK GRANT- The program of block
grants to States for social services under title XX of the
Social Security Act.
(C) MEDICAID- A State plan approved under title XIX of
the Social Security Act, other than medical assistance
described in section 401(b)(1)(A).
SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR
FEDERAL MEANS-TESTED PUBLIC BENEFIT.
(a) IN GENERAL- Notwithstanding any other provision of law and
except as provided in subsections (b), (c), and (d), an alien who
is a qualified alien (as defined in section 431) and who enters the
United States on or after the date of the enactment of this Act is
not eligible for any Federal means-tested public benefit for a
period of 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--
(A) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as an
honorable discharge and not on account of alienage,
(B) on active duty (other than active duty for training)
in the Armed Forces of the United States, or
(C) the spouse or unmarried dependent child of an
individual described in subparagraph (A) or (B).
(c) APPLICATION OF TERM FEDERAL MEANS-TESTED PUBLIC BENEFIT-
(1) The limitation under subsection (a) shall not apply to
assistance or benefits under paragraph (2).
(2) Assistance and benefits under this paragraph are as
follows:
(A) Medical assistance described in section 401(b)(1)(A).
(B) Short-term, non-cash, in-kind emergency disaster
relief.
(C) Assistance or benefits under the National School
Lunch Act.
(D) Assistance or benefits under the Child Nutrition Act
of 1966.
(E) Public health assistance (not including any
assistance under title XIX of the Social Security Act) for
immunizations with respect to immunizable diseases and for
testing and treatment of symptoms of communicable diseases
whether or not such symptoms are caused by a communicable
disease.
(F) Payments for foster care and adoption assistance
under parts B and E of title IV of the Social Security Act
for a parent or a child who would, in the absence of
subsection (a), be eligible to have such payments made on
the child's behalf under such part, but only if the foster
or adoptive parent (or parents) of such child is a
qualified alien (as defined in section 431).
(G) Programs, services, or assistance (such as soup
kitchens, crisis counseling and intervention, and
short-term shelter) specified by the Attorney General, in
the Attorney General's sole and unreviewable discretion
after consultation with appropriate Federal agencies and
departments, which (i) deliver in-kind services at the
community level, including through public or private
nonprofit agencies; (ii) do not condition the provision of
assistance, the amount of assistance provided, or the cost
of assistance provided on the individual recipient's income
or resources; and (iii) are necessary for the protection of
life or safety.
(H) Programs of student assistance under titles IV, V,
IX, and X of the Higher Education Act of 1965, and titles
III, VII, and VIII of the Public Health Service Act.
(I) Means-tested programs under the Elementary and
Secondary Education Act of 1965.
(J) Benefits under the Head Start Act.
(K) Benefits under the Job Training Partnership Act.
(d) SPECIAL RULE FOR REFUGEE AND ENTRANT ASSISTANCE FOR CUBAN AND
HAITIAN ENTRANTS- The limitation under subsection (a) shall not
apply to refugee and entrant assistance activities, authorized by
title IV of the Immigration and Nationality Act and section 501 of
the Refugee Education Assistance Act of 1980, for Cuban and Haitian
entrants as defined in section 501(e)(2) of the Refugee Education
Assistance Act of 1980.
SEC. 404. NOTIFICATION AND INFORMATION REPORTING.
(a) NOTIFICATION- Each Federal agency that administers a program
to which section 401, 402, or 403 applies shall, directly or
through the States, post information and provide general
notification to the public and to program recipients of the changes
regarding eligibility for any such program pursuant to this subtitle.
(b) INFORMATION REPORTING UNDER TITLE IV OF THE SOCIAL SECURITY
ACT- Part A of title IV of the Social Security Act is amended by
inserting the following new section after section 411:
`SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFORMATION.
`Each State to which a grant is made under section 403 shall, at
least 4 times annually and upon request of the Immigration and
Naturalization Service, furnish the Immigration and Naturalization
Service with the name and address of, and other identifying
information on, any individual who the State knows is unlawfully in
the United States.'.
(c) SSI- Section 1631(e) of such Act (42 U.S.C. 1383(e)) is
amended--
(1) by redesignating the paragraphs (6) and (7) inserted by
sections 206(d)(2) and 206(f)(1) of the Social Security
Independence and Programs Improvement Act of 1994 (Public Law
103-296; 108 Stat. 1514, 1515) as paragraphs (7) and (8),
respectively; and
(2) by adding at the end the following new paragraph:
`(9) Notwithstanding any other provision of law, the Commissioner
shall, at least 4 times annually and upon request of the
Immigration and Naturalization Service (hereafter in this paragraph
referred to as the `Service'), furnish the Service with the name
and address of, and other identifying information on, any
individual who the Commissioner knows is unlawfully in the United
States, and shall ensure that each agreement entered into under
section 1616(a) with a State provides that the State shall furnish
such information at such times with respect to any individual who
the State knows is unlawfully in the United States.'.
(d) INFORMATION REPORTING FOR HOUSING PROGRAMS- Title I of the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is
amended by adding at the end the following new section:
`SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND OTHER
AGENCIES.
`Notwithstanding any other provision of law, the Secretary shall,
at least 4 times annually and upon request of the Immigration and
Naturalization Service (hereafter in this section referred to as
the `Service'), furnish the Service with the name and address of,
and other identifying information on, any individual who the
Secretary knows is unlawfully in the United States, and shall
ensure that each contract for assistance entered into under section
6 or 8 of this Act with a public housing agency provides that the
public housing agency shall furnish such information at such times
with respect to any individual who the public housing agency knows
is unlawfully in the United States.'.
SUBTITLE B--ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS PROGRAMS
SEC. 411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR NONIMMIGRANTS
INELIGIBLE FOR STATE AND LOCAL PUBLIC BENEFITS.
(a) IN GENERAL- Notwithstanding any other provision of law and
except as provided in subsections (b) and (d), an alien who is not--
(1) a qualified alien (as defined in section 431),
(2) a nonimmigrant under the Immigration and Nationality Act,
or
(3) an alien who is paroled into the United States under
section 212(d)(5) of such Act for less than one year,
is not eligible for any State or local public benefit (as defined
in subsection (c)).
(b) EXCEPTIONS- Subsection (a) shall not apply with respect to
the following State or local public benefits:
(1) Assistance for health care items and services that are
necessary for the treatment of an emergency medical condition
(as defined in section 1903(v)(3) of the Social Security Act)
of the alien involved and are not related to an organ
transplant procedure.
(2) Short-term, non-cash, in-kind emergency disaster relief.
(3) Public health assistance for immunizations with respect
to immunizable diseases and for testing and treatment of
symptoms of communicable diseases whether or not such symptoms
are caused by a communicable disease.
(4) Programs, services, or assistance (such as soup kitchens,
crisis counseling and intervention, and short-term shelter)
specified by the Attorney General, in the Attorney General's
sole and unreviewable discretion after consultation with
appropriate Federal agencies and departments, which (A) deliver
in-kind services at the community level, including through
public or private nonprofit agencies; (B) do not condition the
provision of assistance, the amount of assistance provided, or
the cost of assistance provided on the individual recipient's
income or resources; and (C) are necessary for the protection
of life or safety.
(c) STATE OR LOCAL PUBLIC BENEFIT DEFINED-
(1) Except as provided in paragraphs (2) and (3), for
purposes of this subtitle the term `State or local public
benefit' means--
(A) any grant, contract, loan, professional license, or
commercial license provided by an agency of a State or
local government or by appropriated funds of a State or
local government; and
(B) any retirement, welfare, health, disability, public
or assisted housing, postsecondary education, food
assistance, unemployment benefit, or any other similar
benefit for which payments or assistance are provided to an
individual, household, or family eligibility unit by an
agency of a State or local government or by appropriated
funds of a State or local government.
(2) Such term shall not apply--
(A) to any contract, professional license, or commercial
license for a nonimmigrant whose visa for entry is related
to such employment in the United States; or
(B) with respect to benefits for an alien who as a work
authorized nonimmigrant or as an alien lawfully admitted
for permanent residence under the Immigration and
Nationality Act qualified for such benefits and for whom
the United States under reciprocal treaty agreements is
required to pay benefits, as determined by the Secretary of
State, after consultation with the Attorney General.
(3) Such term does not include any Federal public benefit
under section 4001(c).
(d) STATE AUTHORITY TO PROVIDE FOR ELIGIBILITY OF ILLEGAL ALIENS
FOR STATE AND LOCAL PUBLIC BENEFITS- A State may provide that an
alien who is not lawfully present in the United States is eligible
for any State or local public benefit for which such alien would
otherwise be ineligible under subsection (a) only through the
enactment of a State law after the date of the enactment of this
Act which affirmatively provides for such eligibility.
SEC. 412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF QUALIFIED ALIENS
FOR STATE PUBLIC BENEFITS.
(a) IN GENERAL- Notwithstanding any other provision of law and
except as provided in subsection (b), a State is authorized to
determine the eligibility for any State public benefits of an alien
who is a qualified alien (as defined in section 431), a
nonimmigrant under the Immigration and Nationality Act, or an alien
who is paroled into the United States under section 212(d)(5) of
such Act for less than one year.
(b) EXCEPTIONS- Qualified aliens under this subsection shall be
eligible for any State public benefits.
(1) TIME-LIMITED EXCEPTION FOR REFUGEES AND ASYLEES-
(A) An alien who is admitted to the United States as a
refugee under section 207 of the Immigration and
Nationality Act until 5 years after the date of an alien's
entry into the United States.
(B) An alien who is granted asylum under section 208 of
such Act until 5 years after the date of such grant of
asylum.
(C) An alien whose deportation is being withheld under
section 243(h) of such Act until 5 years after such
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--
(A) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as an
honorable discharge and not on account of alienage,
(B) on active duty (other than active duty for training)
in the Armed Forces of the United States, or
(C) the spouse or unmarried dependent child of an
individual described in subparagraph (A) or (B).
(4) TRANSITION FOR THOSE CURRENTLY RECEIVING BENEFITS- An
alien who on the date of the enactment of this Act is lawfully
residing in any State and is receiving benefits on the date of
the enactment of this Act shall continue to be eligible to
receive such benefits until January 1, 1997.
SUBTITLE C--ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT
SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES TO
ALIEN.
(a) IN GENERAL- Notwithstanding any other provision of law, in
determining the eligibility and the amount of benefits of an alien
for any Federal means-tested public benefits program (as provided
under section 403), the income and resources of the alien shall be
deemed to include the following:
(1) The income and resources of any person who executed an
affidavit of support pursuant to section 213A of the
Immigration and Nationality Act (as added by section 423) on
behalf of such alien.
(2) The income and resources of the spouse (if any) of the
person.
(b) DURATION OF ATTRIBUTION PERIOD- Subsection (a) shall apply
with respect to an alien until such time as the alien--
(1) achieves United States citizenship through naturalization
pursuant to chapter 2 of title III of the Immigration and
Nationality Act; or
(2)(A) has worked 40 qualifying quarters of coverage as
defined under title II of the Social Security Act or can be
credited with such qualifying quarters as provided under
section 435, and (B) in the case of any such qualifying quarter
creditable for any period beginning after December 31, 1996,
did not receive any Federal means-tested public benefit (as
provided under section 403) during any such period.
(c) REVIEW OF INCOME AND RESOURCES OF ALIEN UPON REAPPLICATION-
Whenever an alien is required to reapply for benefits under any
Federal means-tested public benefits program, the applicable agency
shall review the income and resources attributed to the alien under
subsection (a).
(d) APPLICATION-
(1) If on the date of the enactment of this Act, a Federal
means-tested public benefits program attributes a sponsor's
income and resources to an alien in determining the alien's
eligibility and the amount of benefits for an alien, this
section shall apply to any such determination beginning on the
day after the date of the enactment of this Act.
(2) If on the date of the enactment of this Act, a Federal
means-tested public benefits program does not attribute a
sponsor's income and resources to an alien in determining the
alien's eligibility and the amount of benefits for an alien,
this section shall apply to any such determination beginning
180 days after the date of the enactment of this Act.
SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF
SPONSORS INCOME AND RESOURCES TO THE ALIEN WITH
RESPECT TO STATE PROGRAMS.
(a) OPTIONAL APPLICATION TO STATE PROGRAMS- Except as provided in
subsection (b), in determining the eligibility and the amount of
benefits of an alien for any State public benefits (as defined in
section 412(c)), the State or political subdivision that offers the
benefits is authorized to provide that the income and resources of
the alien shall be deemed to include--
(1) the income and resources of any individual who executed
an affidavit of support pursuant to section 213A of the
Immigration and Nationality Act (as added by section 423) on
behalf of such alien, and
(2) the income and resources of the spouse (if any) of the
individual.
(b) EXCEPTIONS- Subsection (a) shall not apply with respect to
the following State public benefits:
(1) Assistance described in section 411(b)(1).
(2) Short-term, non-cash, in-kind emergency disaster relief.
(3) Programs comparable to assistance or benefits under the
National School Lunch Act.
(4) Programs comparable to assistance or benefits under the
Child Nutrition Act of 1966.
(5) Public health assistance for immunizations with respect
to immunizable diseases and for testing and treatment of
symptoms of communicable diseases whether or not such symptoms
are caused by a communicable disease.
(6) Payments for foster care and adoption assistance.
(7) Programs, services, or assistance (such as soup kitchens,
crisis counseling and intervention, and short-term shelter)
specified by the Attorney General of a State, after
consultation with appropriate agencies and departments, which
(A) deliver in-kind services at the community level, including
through public or private nonprofit agencies; (B) do not
condition the provision of assistance, the amount of assistance
provided, or the cost of assistance provided on the individual
recipient's income or resources; and (C) are necessary for the
protection of life or safety.
SEC. 423. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.
(a) IN GENERAL- Title II of the Immigration and Nationality Act
is amended by inserting after section 213 the following new section:
`REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT
`SEC. 213A. (a) ENFORCEABILITY- (1) No affidavit of support may
be accepted by the Attorney General or by any consular officer to
establish that an alien is not excludable as a public charge under
section 212(a)(4) unless such affidavit is executed as a contract--
`(A) which is legally enforceable against the sponsor by the
sponsored alien, the Federal Government, and by any State (or
any political subdivision of such State) which provides any
means-tested public benefits program, but not later than 10
years after the alien last receives any such benefit;
`(B) in which the sponsor agrees to financially support the
alien, so that the alien will not become a public charge; and
`(C) in which the sponsor agrees to submit to the
jurisdiction of any Federal or State court for the purpose of
actions brought under subsection (e)(2).
`(2) A contract under paragraph (1) shall be enforceable with
respect to benefits provided to the alien until such time as the
alien achieves United States citizenship through naturalization
pursuant to chapter 2 of title III.
`(b) FORMS- Not later than 90 days after the date of enactment of
this section, the Attorney General, in consultation with the
Secretary of State and the Secretary of Health and Human Services,
shall formulate an affidavit of support consistent with the
provisions of this section.
`(c) REMEDIES- Remedies available to enforce an affidavit of
support under this section include any or all of the remedies
described in section 3201, 3203, 3204, or 3205 of title 28, United
States Code, as well as an order for specific performance and
payment of legal fees and other costs of collection, and include
corresponding remedies available under State law. A Federal agency
may seek to collect amounts owed under this section in accordance
with the provisions of subchapter II of chapter 37 of title 31,
United States Code.
`(d) NOTIFICATION OF CHANGE OF ADDRESS-
`(1) IN GENERAL- The sponsor shall notify the Attorney
General and the State in which the sponsored alien is currently
resident within 30 days of any change of address of the sponsor
during the period specified in subsection (a)(2).
`(2) PENALTY- Any person subject to the requirement of
paragraph (1) who fails to satisfy such requirement shall be
subject to a civil penalty of--
`(A) not less than $250 or more than $2,000, or
`(B) if such failure occurs with knowledge that the alien
has received any means-tested public benefit, not less than
$2,000 or more than $5,000.
`(e) REIMBURSEMENT OF GOVERNMENT EXPENSES- (1)(A) Upon
notification that a sponsored alien has received any benefit under
any means-tested public benefits program, the appropriate Federal,
State, or local official shall request reimbursement by the sponsor
in the amount of such assistance.
`(B) The Attorney General, in consultation with the Secretary of
Health and Human Services, shall prescribe such regulations as may
be necessary to carry out subparagraph (A).
`(2) If within 45 days after requesting reimbursement, the
appropriate Federal, State, or local agency has not received a
response from the sponsor indicating a willingness to commence
payments, an action may be brought against the sponsor pursuant to
the affidavit of support.
`(3) If the sponsor fails to abide by the repayment terms
established by such agency, the agency may, within 60 days of such
failure, bring an action against the sponsor pursuant to the
affidavit of support.
`(4) No cause of action may be brought under this subsection
later than 10 years after the alien last received any benefit under
any means-tested public benefits program.
`(5) If, pursuant to the terms of this subsection, a Federal,
State, or local agency requests reimbursement from the sponsor in
the amount of assistance provided, or brings an action against the
sponsor pursuant to the affidavit of support, the appropriate
agency may appoint or hire an individual or other person to act on
behalf of such agency acting under the authority of law for
purposes of collecting any moneys owed. Nothing in this subsection
shall preclude any appropriate Federal, State, or local agency from
directly requesting reimbursement from a sponsor for the amount of
assistance provided, or from bringing an action against a sponsor
pursuant to an affidavit of support.
`(f) DEFINITIONS- For the purposes of this section--
`(1) SPONSOR- The term `sponsor' means an 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- Subsection (a) of section 213A of the
Immigration and Nationality Act, as inserted by subsection (a) of
this section, shall apply to affidavits of support executed on or
after a date specified by the Attorney General, which date shall be
not earlier than 60 days (and not later than 90 days) after the
date the Attorney General formulates the form for such affidavits
under subsection (b) of such section.
(d) BENEFITS NOT SUBJECT TO REIMBURSEMENT- Requirements for
reimbursement by a sponsor for benefits provided to a sponsored
alien pursuant to an affidavit of support under section 213A of the
Immigration and Nationality Act shall not apply with respect to the
following:
(1) Medical assistance described in section 401(b)(1)(A) or
assistance described in section 411(b)(1).
(2) Short-term, non-cash, in-kind emergency disaster relief.
(3) Assistance or benefits under the National School Lunch Act.
(4) Assistance or benefits under the Child Nutrition Act of
1966.
(5) Public health assistance for immunizations (not including
any assistance under title XIX of the Social Security Act) with
respect to immunizable diseases and for testing and treatment
of symptoms of communicable diseases whether or not such
symptoms are caused by a communicable disease.
(6) Payments for foster care and adoption assistance under
parts B and E of title IV of the Social Security Act for a
parent or a child, but only if the foster or adoptive parent
(or parents) of such child is a qualified alien (as defined in
section 431).
(7) Programs, services, or assistance (such as soup kitchens,
crisis counseling and intervention, and short-term shelter)
specified by the Attorney General, in the Attorney General's
sole and unreviewable discretion after consultation with
appropriate Federal agencies and departments, which (A) deliver
in-kind services at the community level, including through
public or private nonprofit agencies; (B) do not condition the
provision of assistance, the amount of assistance provided, or
the cost of assistance provided on the individual recipient's
income or resources; and (C) are necessary for the protection
of life or safety.
(8) Programs of student assistance under titles IV, V, IX,
and X of the Higher Education Act of 1965, and titles III, VII,
and VIII of the Public Health Service Act.
(9) Benefits under the Head Start Act.
(10) Means-tested programs under the Elementary and Secondary
Education Act of 1965.
(11) Benefits under the Job Training Partnership Act.
[BOLD->] SUBTITLE D--GENERAL PROVISIONS [<-BOLD]
SEC. 431. DEFINITIONS.
(a) IN GENERAL- Except as otherwise provided in this title, the
terms used in this title have the same meaning given such terms in
section 101(a) of the Immigration and Nationality Act.
(b) QUALIFIED ALIEN- For purposes of this title, the term
`qualified alien' means an alien who, at the time the alien applies
for, receives, or attempts to receive a Federal public benefit, is--
(1) an alien who is lawfully admitted for permanent residence
under the Immigration and Nationality Act,
(2) an alien who is granted asylum under section 208 of such
Act,
(3) a refugee who is admitted to the United States under
section 207 of such Act,
(4) an alien who is paroled into the United States under
section 212(d)(5) of such Act for a period of at least 1 year,
(5) an alien whose deportation is being withheld under
section 243(h) of such Act, or
(6) an alien who is granted conditional entry pursuant to
section 203(a)(7) of such Act as in effect prior to April 1,
1980.
SEC. 432. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC BENEFITS.
(a) IN GENERAL- Not later than 18 months after the date of the
enactment of this Act, the Attorney General of the United States,
after consultation with the Secretary of Health and Human Services,
shall promulgate regulations requiring verification that a person
applying for a Federal public benefit (as defined in section
401(c)), to which the limitation under section 401 applies, is a
qualified alien and is eligible to receive such benefit. Such
regulations shall, to the extent feasible, require that information
requested and exchanged be similar in form and manner to
information requested and exchanged under section 1137 of the
Social Security Act.
(b) STATE COMPLIANCE- Not later than 24 months after the date the
regulations described in subsection (a) are adopted, a State that
administers a program that provides a Federal public benefit shall
have in effect a verification system that complies with the
regulations.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as may be necessary to carry out the purpose
of this section.
SEC. 433. STATUTORY CONSTRUCTION.
(a) LIMITATION-
(1) Nothing in this title may be construed as an entitlement
or a determination of an individual's eligibility or
fulfillment of the requisite requirements for any Federal,
State, or local governmental program, assistance, or benefits.
For purposes of this title, eligibility relates only to the
general issue of eligibility or ineligibility on the basis of
alienage.
(2) Nothing in this title may be construed as addressing
alien eligibility for a basic public education as determined by
the Supreme Court of the United States under Plyler v. Doe (457
U.S. 202)(1982).
(b) NOT APPLICABLE TO FOREIGN ASSISTANCE- This title does not
apply to any Federal, State, or local governmental program,
assistance, or benefits provided to an alien under any program of
foreign assistance as determined by the Secretary of State in
consultation with the Attorney General.
(c) SEVERABILITY- If any provision of this title or the
application of such provision to any person or circumstance is held
to be unconstitutional, the remainder of this title and the
application of the provisions of such to any person or circumstance
shall not be affected thereby.
SEC. 434. COMMUNICATION BETWEEN STATE AND LOCAL GOVERNMENT AGENCIES
AND THE IMMIGRATION AND NATURALIZATION SERVICE.
Notwithstanding any other provision of Federal, State, or local
law, no State or local government entity may be prohibited, or in
any way restricted, from sending to or receiving from the
Immigration and Naturalization Service information regarding the
immigration status, lawful or unlawful, of an alien in the United
States.
SEC. 435. QUALIFYING QUARTERS.
For purposes of this title, in determining the number of
qualifying quarters of coverage under title II of the Social
Security Act an alien shall be credited with--
(1) all of the qualifying quarters of coverage as defined
under title II of the Social Security Act worked by a parent of
such alien while the alien was under age 18, and
(2) all of the qualifying quarters worked by a spouse of such
alien during their marriage and the alien remains married to
such spouse or such spouse is deceased.
No such qualifying quarter of coverage that is creditable under
title II of the Social Security Act for any period beginning after
December 31, 1996, may be credited to an alien under paragraph (1)
or (2) if the parent or spouse (as the case may be) of such alien
received any Federal means-tested public benefit (as provided under
section 403) during the period for which such qualifying quarter of
coverage is so credited.
SUBTITLE E--CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING
SEC. 441. CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING.
(a) LIMITATIONS ON ASSISTANCE- Section 214 of the Housing and
Community Development Act of 1980 (42 U.S.C. 1436a) is amended--
(1) by striking `Secretary of Housing and Urban Development'
each place it appears and inserting `applicable Secretary';
(2) in subsection (b), by inserting after `National Housing
Act,' the following: `the direct loan program under section 502
of the Housing Act of 1949 or section 502(c)(5)(D), 504,
521(a)(2)(A), or 542 of such Act, subtitle A of title III of
the Cranston-Gonzalez National Affordable Housing Act,';
(3) in paragraphs (2) through (6) of subsection (d), by
striking `Secretary' each place it appears and inserting
`applicable Secretary';
(4) in subsection (d), in the matter following paragraph (6),
by striking `the term `Secretary' and inserting `the term
`applicable Secretary'; and
(5) by adding at the end the following new subsection:
`(h) For purposes of this section, the term `applicable
Secretary' means--
`(1) the Secretary of Housing and Urban Development, with
respect to financial assistance administered by such Secretary
and financial assistance under subtitle A of title III of the
Cranston-Gonzalez National Affordable Housing Act; and
`(2) the Secretary of Agriculture, with respect to financial
assistance administered by such Secretary.'.
(b) CONFORMING AMENDMENTS- Section 501(h) of the Housing Act of
1949 (42 U.S.C. 1471(h)) is amended--
(1) by striking `(1)';
(2) by striking `by the Secretary of Housing and Urban
Development'; and
(3) by striking paragraph (2).
[BOLD->] SUBTITLE F--EARNED INCOME CREDIT DENIED TO UNAUTHORIZED
EMPLOYEES [<-BOLD]
SEC. 451. EARNED INCOME CREDIT DENIED TO INDIVIDUALS NOT AUTHORIZED
TO BE EMPLOYED IN THE UNITED STATES.
(a) IN GENERAL- Section 32(c)(1) of the Internal Revenue Code of
1986 (relating to individuals eligible to claim the earned income
credit) is amended by adding at the end the following new
subparagraph:
`(F) IDENTIFICATION NUMBER REQUIREMENT- The term
`eligible individual' does not include any individual who
does not include on the return of tax for the taxable year--
`(i) such individual's taxpayer identification
number, and
`(ii) if the individual is married (within the
meaning of section 7703), the taxpayer identification
number of such individual's spouse.'.
(b) SPECIAL IDENTIFICATION NUMBER- Section 32 of such Code is
amended by adding at the end the following new subsection:
`(l) IDENTIFICATION NUMBERS- Solely for purposes of subsections
(c)(1)(F) and (c)(3)(D), a taxpayer identification number means a
social security number issued to an individual by the Social
Security Administration (other than a social security number issued
pursuant to clause (II) (or that portion of clause (III) that
relates to clause (II)) of section 205(c)(2)(B)(i) of the Social
Security Act).'.
(c) EXTENSION OF PROCEDURES APPLICABLE TO MATHEMATICAL OR
CLERICAL ERRORS- Section 6213(g)(2) of such Code (relating to the
definition of mathematical or clerical errors) is amended by
striking `and' at the end of subparagraph (D), by striking the
period at the end of subparagraph (E) and inserting a comma, and by
inserting after subparagraph (E) the following new subparagraphs:
`(F) an omission of a correct taxpayer identification
number required under section 32 (relating to the earned
income credit) to be included on a return, and
`(G) an entry on a return claiming the credit under
section 32 with respect to net earnings from
self-employment described in section 32(c)(2)(A) to the
extent the tax imposed by section 1401 (relating to
self-employment tax) on such net earnings has not been
paid.'.
(d) EFFECTIVE DATE- The amendments made by this section shall
apply with respect to returns the due date for which (without
regard to extensions) is more than 30 days after the date of the
enactment of this Act.
TITLE V--CHILD PROTECTION
SEC. 501. AUTHORITY OF STATES TO MAKE FOSTER CARE MAINTENANCE
PAYMENTS ON BEHALF OF CHILDREN IN ANY PRIVATE
CHILD CARE INSTITUTION.
Section 472(c)(2) of the Social Security Act (42 U.S.C.
672(c)(2)) is amended by striking `nonprofit'.
SEC. 502. EXTENSION OF ENHANCED MATCH FOR IMPLEMENTATION OF
STATEWIDE AUTOMATED CHILD WELFARE INFORMATION
SYSTEMS.
Section 13713(b)(2) of the Omnibus Budget Reconciliation Act of
1993 (42 U.S.C. 674 note; 107 Stat. 657) is amended by striking
`1996' and inserting `1997'.
SEC. 503. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.
Part B of title IV of the Social Security Act (42 U.S.C.
620-628a) is amended by adding at the end the following:
`SEC. 429A. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.
`(a) IN GENERAL- The Secretary shall conduct a national study
based on random samples of children who are at risk of child abuse
or neglect, or are determined by States to have been abused or
neglected.
`(b) REQUIREMENTS- The study required by subsection (a) shall--
`(1) have a longitudinal component; and
`(2) yield data reliable at the State level for as many
States as the Secretary determines is feasible.
`(c) PREFERRED CONTENTS- In conducting the study required by
subsection (a), the Secretary should--
`(1) carefully consider selecting the sample from cases of
confirmed abuse or neglect; and
`(2) follow each case for several years while obtaining
information on, among other things--
`(A) the type of abuse or neglect involved;
`(B) the frequency of contact with State or local agencies;
`(C) whether the child involved has been separated from
the family, and, if so, under what circumstances;
`(D) the number, type, and characteristics of out-of-home
placements of the child; and
`(E) the average duration of each placement.
`(d) REPORTS-
`(1) IN GENERAL- From time to time, the Secretary shall
prepare reports summarizing the results of the study required
by subsection (a).
`(2) AVAILABILITY- The Secretary shall make available to the
public any report prepared under paragraph (1), in writing or
in the form of an electronic data tape.
`(3) AUTHORITY TO CHARGE FEE- The Secretary may charge and
collect a fee for the furnishing of reports under 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), as section
1123A.
SEC. 505. KINSHIP CARE.
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)) is
amended--
(1) by striking `and' at the end of paragraph (16);
(2) by striking the period at the end of paragraph (17) and
inserting `; and'; and
(3) by adding at the end the following:
`(18) provides that the State shall consider giving
preference to an adult relative over a non-related caregiver
when determining a placement for a child, provided that the
relative caregiver meets all relevant State child protection
standards.'.
TITLE VI--CHILD CARE
SEC. 601. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE- This title may be cited as the `Child Care and
Development Block Grant Amendments of 1996'.
(b) REFERENCES- Except as otherwise expressly provided, whenever
in this title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other
provision of the Child Care and Development Block Grant Act of 1990
(42 U.S.C. 9858 et seq.).
SEC. 602. GOALS.
Section 658A (42 U.S.C. 9801 note) is amended--
(1) in the section heading by inserting `AND GOALS' after
`TITLE';
(2) by inserting `(a) SHORT TITLE- ' before `This'; and
(3) by adding at the end the following:
`(b) GOALS- The goals of this subchapter are--
`(1) to allow each State maximum flexibility in developing
child care programs and policies that best suit the needs of
children and parents within such State;
`(2) to promote parental choice to empower working parents to
make their own decisions on the child care that best suits
their family's needs;
`(3) to encourage States to provide consumer education
information to help parents make informed choices about child
care;
`(4) to assist States to provide child care to parents t
rying to achieve independence from public assistance; and
`(5) to assist States in implementing the health, safety,
licensing, and registration standards established in State
regulations.'.
SEC. 603. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT AUTHORITY.
(a) IN GENERAL- Section 658B (42 U.S.C. 9858) is amended to read
as follows:
`SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
`There is authorized to be appropriated to carry out this
subchapter $1,000,000,000 for each of the fiscal years 1996 through
2002.'.
(b) SOCIAL SECURITY ACT- Part A of title IV of the Social
Security Act (42 U.S.C. 601-617) is amended by adding at the end
the following new section:
`SEC. 418. FUNDING FOR CHILD CARE.
`(a) GENERAL CHILD CARE ENTITLEMENT-
`(1) GENERAL ENTITLEMENT- Subject to the amount appropriated
under paragraph (3), each State shall, for the purpose of
providing child care assistance, be entitled to payments under
a grant under this subsection for a fiscal year in an amount
equal to--
`(A) the sum of the total amount required to be paid to
the State under section 403 for fiscal year 1994 or 1995
(whichever is greater) with respect to amounts expended for
child care under section--
`(i) 402(g) of this Act (as such section was in
effect before October 1, 1995); and
`(ii) 402(i) of this Act (as so in effect); or
`(B) the average of the total amounts required to be paid
to the State for fiscal years 1992 through 1994 under the
sections referred to in subparagraph (A);
whichever is greater.
`(2) REMAINDER-
`(A) GRANTS- The Secretary shall use any amounts
appropriated for a fiscal year under paragraph (3), and
remaining after the reservation described in paragraph (4)
and after grants are awarded under paragraph (1), to make
grants to States under this paragraph.
`(B) AMOUNT- Subject to subparagraph (C), the amount of a
grant awarded to a State for a fiscal year under this
paragraph shall be based on the formula used for
determining the amount of Federal payments to the State
under section 403(n) (as such section was in effect before
October 1, 1995).
`(C) MATCHING REQUIREMENT- The Secretary shall pay to
each eligible State in a fiscal year an amount, under a
grant under subparagraph (A), equal to the Federal medical
assistance percentage for such State for fiscal year 1995
(as defined in section 1905(b)) of so much of the
expenditures by the State for child care in such year as
exceed the State set-aside for such State under paragraph
(1)(A) for such year and the amount of State expenditures
in fiscal year 1994 or 1995 (whichever is greater) that
equal the non-Federal share for the programs described in
subparagraph (A) of paragraph (1).
`(D) REDISTRIBUTION-
`(i) IN GENERAL- With respect to any fiscal year, if
the Secretary determines (in accordance with clause
(ii)) that amounts under any grant awarded to a State
under this paragraph for such fiscal year will not be
used by such State during such fiscal year for carrying
out the purpose for which the grant is made, the
Secretary shall make such amounts available in the
subsequent fiscal year for carrying out such purpose to
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
payment (as determined under this subsection) for the
fiscal year in which the redistribution is made.
`(3) APPROPRIATION- For grants under this section, there are
appropriated--
`(A) $1,967,000,000 for fiscal year 1997;
`(B) $2,067,000,000 for fiscal year 1998;
`(C) $2,167,000,000 for fiscal year 1999;
`(D) $2,367,000,000 for fiscal year 2000;
`(E) $2,567,000,000 for fiscal year 2001; and
`(F) $2,717,000,000 for fiscal year 2002.
`(4) INDIAN TRIBES- The Secretary shall reserve not less than
1 percent, and not more than 2 percent, of the aggregate amount
appropriated to carry out this section in each fiscal year for
payments to Indian tribes and tribal organizations.
`(b) USE OF FUNDS-
`(1) IN GENERAL- Amounts received by a State under this
section shall only be used to provide child care assistance.
Amounts received by a State under a grant under subsection
(a)(1) shall be available for use by the State without fiscal
year limitation.
`(2) USE FOR CERTAIN POPULATIONS- A State shall ensure that
not less than 70 percent of the total amount of funds received
by the State in a fiscal year under this section are used to
provide child care assistance to families who are receiving
assistance under a State program under this part, families who
are attempting through work activities to transition off of
such assistance program, and families who are at risk of
becoming dependent on such assistance program.
`(c) APPLICATION OF CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT of
1990- Notwithstanding any other provision of law, amounts provided
to a State under this section shall be transferred to the lead
agency under the Child Care and Development Block Grant Act of
1990, integrated by the State into the programs established by the
State under such Act, and be subject to requirements and
limitations of such Act.
`(d) DEFINITION- As used in this section, the term `State' means
each of the 50 States or the District of Columbia.'.
SEC. 604. LEAD AGENCY.
Section 658D(b) (42 U.S.C. 9858b(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking `State' the first
place that such appears and inserting `governmental or
nongovernmental'; and
(B) in subparagraph (C), by inserting `with sufficient
time and Statewide distribution of the notice of such
hearing,' after `hearing in the State'; and
(2) in paragraph (2), by striking the second sentence.
SEC. 605. APPLICATION AND PLAN.
Section 658E (42 U.S.C. 9858c) is amended--
(1) in subsection (b)--
(A) by striking `implemented--' and all that follows
through `(2)' and inserting `implemented'; and
(B) by striking `for subsequent State plans';
(2) in subsection (c)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (i) by striking `, other than through assistance
provided under paragraph (3)(C),'; and
(II) by striking `except' and all that follows through `1992',
and inserting `and provide a detailed description of the procedures
the State will implement to carry out the requirements of this
subparagraph';
(ii) in subparagraph (B)--
(I) by striking `Provide assurances' and inserting `Certify'; and
(II) by inserting before the period at the end `and provide a
detailed description of such procedures';
(iii) in subparagraph (C)--
(I) by striking `Provide assurances' and inserting `Certify'; and
(II) by inserting before the period at the end `and provide a
detailed description of how such record is maintained and is made
available';
(iv) by amending subparagraph (D) to read as follows:
`(D) CONSUMER EDUCATION INFORMATION- Certify that the
State will collect and disseminate to parents of eligible
children and the general public, consumer education
information that will promote informed child care choices.';
(v) in subparagraph (E), to read as follows:
`(E) COMPLIANCE WITH STATE LICENSING REQUIREMENTS-
`(i) IN GENERAL- Certify that the State has in effect
licensing requirements applicable to child care
services provided within the State, and provide a
detailed description of such requirements and of how
such requirements are effectively enforced. Nothing in
the preceding sentence shall be construed to require
that licensing requirements be applied to specific
types of providers of child care services.
`(ii) INDIAN TRIBES AND TRIBAL ORGANIZATIONS- In lieu
of any licensing and regulatory requirements applicable
under State and local law, the Secretary, in
consultation with Indian tribes and tribal
organizations, shall develop minimum child care
standards (that appropriately reflect tribal needs and
available resources) that shall be applicable to Indian
tribes and tribal organization receiving assistance
under this subchapter.';
(vi) in subparagraph (F) by striking `Provide
assurances' and inserting `Certify';
(vii) in subparagraph (G) by striking `Provide
assurances' and inserting `Certify'; and
(viii) by striking subparagraphs (H), (I), and (J)
and inserting the following:
`(H) MEETING THE NEEDS OF CERTAIN POPULATIONS-
Demonstrate the manner in which the State will meet the
specific child care needs of families who are receiving
assistance under a State program under part A of title IV
of the Social Security Act, families who are attempting
through work activities to transition off of such
assistance program, and families that are at risk of
becoming dependent on such assistance program.';
(B) in paragraph (3)--
(i) in subparagraph (A), by striking `(B) and (C)'
and inserting `(B) through (D)';
(ii) in subparagraph (B)--
(I) by striking `- Subject to the reservation contained in
subparagraph (C), the' and inserting `AND RELATED ACTIVITIES- The';
(II) in clause (i) by striking `; and' at the end and inserting a
period;
(III) by striking `for--' and all that follows through `section
658E(c)(2)(A)' and inserting `for child care services on a sliding
fee scale basis, activities that improve the quality or
availability of such services, and any other activity that the
State deems appropriate to realize any of the goals specified in
paragraphs (2) through (5) of section 658A(b)'; and
(IV) by striking clause (ii);
(iii) by amending subparagraph (C) to read as follows:
`(C) LIMITATION ON ADMINISTRATIVE COSTS- Not more than 5
percent of the aggregate amount of funds available to the
State to carry out this subchapter by a State in each
fiscal year may be expended for administrative costs
incurred by such State to carry out all of its functions
and duties under this subchapter. As used in the preceding
sentence, the term `administrative costs' shall not include
the costs of providing direct services.'; and
(iv) by adding at the end thereof the following:
`(D) ASSISTANCE FOR CERTAIN FAMILIES- A State shall
ensure that a substantial portion of the amounts available
(after the State has complied with the requirement of
section 418(b)(2) of the Social Security Act with respect
to each of the fiscal years 1997 through 2002) to the State
to carry out activities under this subchapter in each
fiscal year is used to provide assistance to low-income
working families other than families described in paragraph
(2)(H).'; and
(C) in paragraph (4)(A)--
(i) by striking `provide assurances' and inserting
`certify';
(ii) in the first sentence by inserting `and shall
provide a summary of the facts relied on by the State
to determine that such rates are sufficient to ensure
such access' before the period; and
(iii) by striking the last sentence.
SEC. 606. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b)(1) (42 U.S.C. 9858d(b)(1)) is amended by striking
`No' and inserting `Except as provided for in section 658O(c)(6),
no'.
SEC. 607. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
Section 658G (42 U.S.C. 9858e) is amended to read as follows:
`SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
`A State that receives funds to carry out this subchapter for a
fiscal year, shall use not less than 4 percent of the amount of
such funds for activities that are designed to provide
comprehensive consumer education to parents and the public,
activities that increase parental choice, and activities designed
to improve the quality and availability of child care (such as
resource and referral services).'.
SEC. 608. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE- AND
AFTER-SCHOOL CARE REQUIREMENT.
Section 658H (42 U.S.C. 9858f) is repealed.
SEC. 609. ADMINISTRATION AND ENFORCEMENT.
Section 658I(b) (42 U.S.C. 9858g(b)) is amended--
(1) in paragraph (1), by striking `, and shall have' and all
that follows through `(2)'; and
(2) in the matter following clause (ii) of paragraph (2)(A),
by striking `finding and that' and all that follows through the
period and inserting `finding and shall require that the State
reimburse the Secretary for any funds that were improperly
expended for purposes prohibited or not authorized by this
subchapter, that the Secretary deduct from the administrative
portion of the State allotment for the following fiscal year an
amount that is less than or equal to any improperly expended
funds, or a combination of such options.'.
SEC. 610. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended--
(1) by striking `expended' and inserting `obligated'; and
(2) by striking `3 fiscal years' and inserting `fiscal year'.
SEC. 611. ANNUAL REPORT AND AUDITS.
Section 658K (42 U.S.C. 9858i) is amended--
(1) in the section heading by striking `ANNUAL REPORT' and
inserting `REPORTS';
(2) in subsection (a), to read as follows:
`(a) REPORTS-
`(1) COLLECTION OF INFORMATION BY STATES-
`(A) IN GENERAL- A State that receives funds to carry out
this subchapter shall collect the information described in
subparagraph (B) on a monthly basis.
`(B) REQUIRED INFORMATION- The information required under
this subparagraph shall include, with respect to a family
unit receiving assistance under this subchapter information
concerning--
`(i) family income;
`(ii) county of residence;
`(iii) the gender, race, and age of children
receiving such assistance;
`(iv) whether the family includes only 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;
`(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
(3) by striking `Education and Labor' and inserting `Economic
and Educational Opportunities'.
SEC. 613. ALLOTMENTS.
Section 658O (42 U.S.C. 9858m) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking `POSSESSIONS' and inserting
`POSSESSIONS';
(ii) by inserting `and' after `States,'; and
(iii) by striking `, and the Trust Territory of the
Pacific Islands'; and
(B) in paragraph (2), by striking `more than 3 percent'
and inserting `less than 1 percent, and not more than 2
percent,';
(2) in subsection (c)--
(A) in paragraph (5) by striking `our' and inserting
`out'; and
(B) by adding at the end thereof the following new
paragraph:
`(6) CONSTRUCTION OR RENOVATION OF FACILITIES-
`(A) REQUEST FOR USE OF FUNDS- An Indian tribe or tribal
organization may submit to the Secretary a request to use
amounts provided under this subsection for construction or
renovation purposes.
`(B) DETERMINATION- With respect to a request submitted
under subparagraph (A), and except as provided in
subparagraph (C), upon a determination by the Secretary
that adequate facilities are not otherwise available to an
Indian tribe or tribal organization to enable such tribe or
organization to carry out child care programs in accordance
with this subchapter, and that the lack of such facilities
will inhibit the operation of such programs in the future,
the Secretary may permit the tribe or organization to use
assistance provided under this subsection to make payments
for the construction or renovation of facilities that will
be used to carry out such programs.
`(C) LIMITATION- The Secretary may not permit an Indian
tribe or tribal organization to use amounts provided under
this subsection for construction or renovation if such use
will result in a decrease in the level of child care
services provided by the tribe or organization as compared
to the level of such services provided by the tribe or
organization in the fiscal year preceding the year for
which the determination under subparagraph (A) is being made.
`(D) UNIFORM PROCEDURES- The Secretary shall develop and
implement uniform procedures for the solicitation and
consideration of requests under this paragraph.'; and
(3) in subsection (e), by adding at the end thereof the
following new paragraph:
`(4) INDIAN TRIBES OR TRIBAL ORGANIZATIONS- Any portion of a
grant or contract made to an Indian tribe or tribal
organization under subsection (c) that the Secretary determines
is not being used in a manner consistent with the provision of
this subchapter in the period for which the grant or contract
is made available, shall be allotted by the Secretary to other
tribes or organizations that have submitted applications under
subsection (c) in accordance with their respective needs.'.
SEC. 614. DEFINITIONS.
Section 658P (42 U.S.C. 9858n) is amended--
(1) in paragraph (2), in the first sentence by inserting `or
as a deposit for child care services if such a deposit is
required of other children being cared for by the provider'
after `child care services'; and
(2) by striking paragraph (3);
(3) in paragraph (4)(B), by striking `75 percent' and
inserting `85 percent';
(4) in paragraph (5)(B)--
(A) by inserting `great grandchild, sibling (if such
provider lives in a separate residence),' after
`grandchild,';
(B) by striking `is registered and'; and
(C) by striking `State' and inserting `applicable'.
(5) by striking paragraph (10);
(6) in paragraph (13)--
(A) by inserting `or' after `Samoa,'; and
(B) by striking `, and the Trust Territory of the Pacific
Islands';
(7) in paragraph (14)--
(A) by striking `The term' and inserting the following:
`(A) IN GENERAL- The term'; and
(B) by adding at the end thereof the following new
subparagraph:
`(B) OTHER ORGANIZATIONS- Such term includes a Native
Hawaiian Organization, as defined in section 4009(4) of the
Augustus F. Hawkins-Robert T. Stafford Elementary and
Secondary School Improvement Amendments of 1988 (20 U.S.C.
4909(4)) and a private nonprofit organization established
for the purpose of serving youth who are Indians or Native
Hawaiians.'.
SEC. 615. EFFECTIVE DATE.
(a) IN GENERAL- Except as provided in subsection (b), this title
and the amendments made by this title shall take effect on October
1, 1996.
(b) EXCEPTION- The amendment made by section 603(a) shall take
effect on the date of enactment of this Act.
TITLE VII--CHILD NUTRITION PROGRAMS
SUBTITLE A--NATIONAL SCHOOL LUNCH ACT
SEC. 701. STATE DISBURSEMENT TO SCHOOLS.
(a) IN GENERAL- Section 8 of the National School Lunch Act (42
U.S.C. 1757) is amended--
(1) in the third sentence, by striking `Nothing' and all that
follows through `educational agency to' and inserting `The
State educational agency may';
(2) by striking the fourth and fifth sentences;
(3) by redesignating the first through seventh sentences, as
amended by paragraph (2), as subsections (a) through (g),
respectively;
(4) in subsection (b), as redesignated by paragraph (3), by
striking `the preceding sentence' and inserting `subsection
(a)'; and
(5) in subsection (d), as redesignated by paragraph (3), by
striking `Such food costs' and inserting `Use of funds paid to
States'.
(b) DEFINITION OF CHILD- Section 12(d) of the National School
Lunch Act (42 U.S.C. 1760(d)) is amended by adding at the end the
following:
`(9) CHILD-
`(A) IN GENERAL- The term `child' includes an
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
school year, schools that are participating in the school lunch
or school breakfast program shall serve lunches and breakfasts
under the program that--
`(A) are consistent with the goals of the most recent
Dietary Guidelines for Americans published under section
301 of the National Nutrition Monitoring and Related
Research Act of 1990 (7 U.S.C. 5341); and
`(B) provide, on the average over each week, at least--
`(i) with respect to school lunches, 1/3 of the
daily recommended dietary allowance established by the
Food and Nutrition Board of the National Research
Council of the National Academy of Sciences; and
`(ii) with respect to school breakfasts, 1/4 of the
daily recommended dietary allowance established by the
Food and Nutrition Board of the National Research
Council of the National Academy of Sciences.';
(5) in paragraph (3), as redesignated by paragraph (3)--
(A) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively; and
(B) in subparagraph (A), as so redesignated, by
redesignating subclauses (I) and (II) as clauses (i) and
(ii), respectively; and
(6) in paragraph (4), as redesignated by paragraph (3)--
(A) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively;
(B) in subparagraph (A), as redesignated by subparagraph
(A), by redesignating subclauses (I) and (II) as clauses
(i) and (ii), respectively; and
(C) in subparagraph (A)(ii), as redesignated by
subparagraph (B), by striking `subparagraph (C)' and
inserting `paragraph (3)'.
(d) USE OF RESOURCES- Section 9 of the National School Lunch Act
(42 U.S.C. 1758) is amended by striking subsection (h).
SEC. 703. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 9(b)(2) of the National School Lunch Act (42 U.S.C.
1758(b)(2)) is amended by adding at the end the following:
`(D) FREE AND REDUCED PRICE POLICY STATEMENT- After the
initial submission, a school food authority shall not be
required to submit a free and reduced price policy
statement to a State educational agency under this Act
unless there is a substantive change in the free and
reduced price policy of the school food authority. A
routine change in the policy of a school food authority,
such as an annual adjustment of the income eligibility
guidelines for free and reduced price meals, shall not be
sufficient cause for requiring the school food authority to
submit a policy statement.'.
SEC. 704. SPECIAL ASSISTANCE.
(a) EXTENSION OF PAYMENT PERIOD- Section 11(a)(1)(D)(i) of the
National School Lunch Act (42 U.S.C. 1759a(a)(1)(D)(i)) is amended
by striking `, on the date of enactment of this subparagraph,'.
(b) ROUNDING RULE FOR LUNCH, BREAKFAST, AND SUPPLEMENT RATES-
(1) IN GENERAL- The third sentence of section 11(a)(3)(B) of
the National School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is
amended by adding before the period at the end the following:
`, except that adjustments to payment rates for meals and
supplements served to individuals not determined to be eligible
for free or reduced price meals and supplements shall be
computed to the nearest lower cent increment and based on the
unrounded amount for the preceding 12-month period'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall
become effective on July 1, 1997.
(c) APPLICABILITY OF OTHER PROVISIONS- Section 11 of the National
School Lunch Act (42 U.S.C. 1759a) is amended--
(1) by striking subsection (d);
(2) in subsection (e)(2)--
(A) by striking `The' and inserting `On request of the
Secretary, the'; and
(B) by striking `each month'; and
(3) by redesignating subsections (e) and (f), as so amended,
as subsections (d) and (e), respectively.
SEC. 705. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
(a) ACCOUNTS AND RECORDS- The second sentence of section 12(a) of
the National School Lunch Act (42 U.S.C. 1760(a)) is amended by
striking `at all times be available' and inserting `be available at
any reasonable time'.
(b) RESTRICTION ON REQUIREMENTS- Section 12(c) of the National
School Lunch Act (42 U.S.C. 1760(c)) is amended by striking
`neither the Secretary nor the State shall' and inserting `the
Secretary shall not'.
(c) DEFINITIONS- Section 12(d) of the National School Lunch Act
(42 U.S.C. 1760(d)), as amended by section 701(b), is amended--
(1) in paragraph (1), by striking `the Trust Territory of the
Pacific Islands' and inserting `the Commonwealth of the
Northern Mariana Islands';
(2) by striking paragraphs (3) and (4); and
(3) by redesignating paragraphs (1), (2), and (5) through (9)
as paragraphs (6), (7), (3), (4), (2), (5), and (1),
respectively, and rearranging the paragraphs so as to appear in
numerical order.
(d) ADJUSTMENTS TO NATIONAL AVERAGE PAYMENT RATES- Section 12(f)
of the National School Lunch Act (42 U.S.C. 1760(f)) is amended by
striking `the Trust Territory of the Pacific Islands,'.
(e) EXPEDITED RULEMAKING- Section 12(k) of the National School
Lunch Act (42 U.S.C. 1760(k)) is amended--
(1) by striking paragraphs (1), (2), and (5);
(2) by redesignating paragraphs (3) and (4) as paragraphs (1)
and (2), respectively; and
(3) in paragraph (1), as redesignated by paragraph (2), by
striking `Guidelines' and inserting `guidelines contained in
the most recent `Dietary Guidelines for Americans' that is
published under section 301 of the National Nutrition
Monitoring and Related Research Act of 1990 (7 U.S.C. 5341)'.
(f) WAIVER- Section 12(l) of the National School Lunch Act (42
U.S.C. 1760(l)) is amended--
(1) in paragraph (2)(A)--
(A) in clause (iii), by adding `and' at the end;
(B) in clause (iv), by striking the semicolon at the end
and inserting a period; and
(C) by striking clauses (v) through (vii);
(2) in paragraph (3)--
(A) in subparagraph (A), by striking `(A)'; and
(B) by striking subparagraphs (B) through (D);
(3) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by striking
`of any requirement relating' and inserting `that increases
Federal costs or that relates';
(B) by striking subparagraph (D);
(C) by redesignating subparagraphs (E) through (N) as
subparagraphs (D) through (M), respectively; and
(D) in subparagraph (L), as redesignated by subparagraph
(C), by striking `and' at the end and inserting `or'; and
(4) in paragraph (6)--
(A) by striking `(A)(i)' and all that follows through
`(B)'; and
(B) by redesignating clauses (i) through (iv) as
subparagraphs (A) through (D), respectively.
SEC. 706. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) ESTABLISHMENT OF PROGRAM- Section 13(a) of the National
School Lunch Act (42 U.S.C. 1761(a)) is amended--
(1) in paragraph (1)--
(A) in the first sentence, by striking `initiate,
maintain, and expand' and inserting `initiate and
maintain'; and
(B) in subparagraph (E) of the second sentence, by
striking `the Trust Territory of the Pacific Islands,'; and
(2) in paragraph (7)(A), by striking `Except as provided in
subparagraph (C), private' and inserting `Private'.
(b) SERVICE INSTITUTIONS- Section 13(b) of the National School
Lunch Act (42 U.S.C. 1761(b)) is amended by striking `(b)(1)' and
all that follows through the end of paragraph (1) and inserting the
following:
`(b) SERVICE INSTITUTIONS-
`(1) PAYMENTS-
`(A) IN GENERAL- Except as otherwise provided in this
paragraph, payments to service institutions shall equal the
full cost of food service operations (which cost shall
include the costs of obtaining, preparing, and serving
food, but shall not include administrative costs).
`(B) MAXIMUM AMOUNTS- Subject to subparagraph (C),
payments to any institution under subparagraph (A) shall
not exceed--
`(i) $1.97 for each lunch and supper served;
`(ii) $1.13 for each breakfast served; and
`(iii) 46 cents for each meal supplement served.
`(C) ADJUSTMENTS- Amounts specified in subparagraph (B)
shall be adjusted on January 1, 1997, and each January 1
thereafter, to the nearest lower cent increment to reflect
changes for the 12-month period ending the preceding
November 30 in the series for food away from home of the
Consumer Price Index for All Urban 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.'.
(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: [Italic->] Provided,
[<-Italic] 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)) is amended
by striking `, and its plans and schedule for informing service
institutions of the availability of the program'.
(j) PLAN- Section 13(n) of the National School Lunch Act (42
U.S.C. 1761(n)), as amended by subsection (i), is amended--
(1) in paragraph (2), by striking `, including the State's
methods of assessing need';
(2) by striking paragraph (3);
(3) in paragraph (4), by striking `and schedule'; and
(4) by redesignating paragraphs (4) through (7) as paragraphs
(3) through (6), respectively.
(k) MONITORING AND TRAINING- Section 13(q) of the National School
Lunch Act (42 U.S.C. 1761(q)) is amended--
(1) by striking paragraphs (2) and (4);
(2) in paragraph (3), by striking `paragraphs (1) and (2) of
this subsection' and inserting `paragraph (1)'; and
(3) by redesignating paragraph (3) as paragraph (2).
(l) EXPIRED PROGRAM- Section 13 of the National School Lunch Act
(42 U.S.C. 1761) is amended--
(1) by striking subsection (p); and
(2) by redesignating subsections (q) and (r) as subsections
(p) and (q), respectively.
(m) EFFECTIVE DATE- The amendments made by subsection (b) shall
become effective on January 1, 1997.
SEC. 707. COMMODITY DISTRIBUTION.
(a) CEREAL AND SHORTENING IN COMMODITY DONATIONS- Section 14(b)
of the National School Lunch Act (42 U.S.C. 1762a(b)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) and (3) as paragraphs (1)
and (2), respectively.
(b) STATE ADVISORY COUNCIL- Section 14(e) of the National School
Lunch Act (42 U.S.C. 1762a(e)) is amended to read as follows:
`(e) Each State agency that receives food assistance payments
under this section for any school year shall consult with
representatives of schools in the State that participate in the
school lunch program with respect to the needs of such schools
relating to the manner of selection and distribution of commodity
assistance for such program.'.
(c) CASH COMPENSATION FOR PILOT PROJECT SCHOOLS- Section 14(g) of
the National School Lunch Act (42 U.S.C. 1762a(g)) is amended by
striking paragraph (3).
SEC. 708. CHILD AND ADULT CARE FOOD PROGRAM.
(a) ESTABLISHMENT OF PROGRAM- Section 17 of the National School
Lunch Act (42 U.S.C. 1766) is amended in the first sentence of
subsection (a), by striking `initiate, maintain, and expand' and
inserting `initiate and maintain'.
(b) PAYMENTS TO SPONSOR EMPLOYEES- Paragraph (2) of the last
sentence of section 17(a) of the National School Lunch Act (42
U.S.C. 1766(a)) is amended--
(1) in subparagraph (B), by striking `and' at the end;
(2) in subparagraph (C), by striking the period at the end
and inserting `; and'; and
(3) by adding at the end the following:
`(D) in the case of a family or group day care home
sponsoring organization that employs more than one
employee, the organization does not base payments to an
employee of the organization on the number of family or
group day care homes recruited.'.
(c) TECHNICAL ASSISTANCE- The last sentence of section 17(d)(1)
of the National School Lunch Act (42 U.S.C. 1766(d)(1)) is amended
by striking `, and shall provide technical assistance' and all that
follows through `its application'.
(d) REIMBURSEMENT OF CHILD CARE INSTITUTIONS- Section 17(f)(2)(B)
of the National School Lunch Act (42 U.S.C. 1766(f)(2)(B)) is
amended by striking `two meals and two supplements or three meals
and one supplement' and inserting `2 meals and 1 supplement'.
(e) IMPROVED TARGETING OF DAY CARE HOME REIMBURSEMENTS-
(1) RESTRUCTURED DAY CARE HOME REIMBURSEMENTS- Section
17(f)(3) of the National School Lunch Act (42 U.S.C.
1766(f)(3)) is amended by striking `(3)(A) Institutions' and
all that follows through the end of subparagraph (A) and
inserting the following:
`(3) REIMBURSEMENT OF FAMILY OR GROUP DAY CARE HOME
SPONSORING ORGANIZATIONS-
`(A) REIMBURSEMENT FACTOR-
`(i) IN GENERAL- An institution that participates in
the program under this section as a family or group day
care home sponsoring organization shall be provided,
for payment to a home sponsored by the organization,
reimbursement factors in accordance with this
subparagraph for the cost of obtaining and preparing
food and prescribed labor costs involved in providing
meals under this section.
`(ii) TIER I FAMILY OR GROUP DAY CARE HOMES-
`(I) DEFINITION OF TIER I FAMILY OR GROUP DAY CARE HOME- In this
paragraph, the term `tier I family or group day care home' means--
`(aa) a family or group day care home that is located in a
geographic area, as defined by the Secretary based on census data,
in which at least 50 percent of the children residing in the area
are members of households whose incomes meet the income eligibility
guidelines for free or reduced price meals under section 9;
`(bb) a family or group day care home that is located in an area
served by a school enrolling elementary students in which at least
50 percent of the total number of children enrolled are certified
eligible to receive free or reduced price school meals under this
Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); or
`(cc) a family or group day care home that is operated by a
provider whose household meets the income eligibility guidelines
for free or reduced price meals under section 9 and whose income is
verified by the sponsoring organization of the home under
regulations established by the Secretary.
`(II) REIMBURSEMENT- Except as provided in subclause (III), a
tier I family or group day care home shall be provided
reimbursement factors under this clause without a requirement for
documentation of the costs described in clause (i), except that
reimbursement shall not be provided under this subclause for meals
or supplements served to the children of a person acting as a
family or group day care home provider unless the children meet the
income eligibility guidelines for free or reduced price meals under
section 9.
`(III) FACTORS- Except as provided in subclause (IV), the
reimbursement factors applied to a home referred to in subclause
(II) shall be the factors in effect on July 1, 1996.
`(IV) ADJUSTMENTS- The reimbursement factors under this
subparagraph shall be adjusted on July 1, 1997, and each July 1
thereafter, to reflect changes in the Consumer Price Index for food
at home for the most recent 12-month period for which the data are
available. The reimbursement factors under this subparagraph shall
be rounded to the nearest lower cent increment and based on the
unrounded adjustment in effect on June 30 of the preceding school
year.
`(iii) TIER II FAMILY OR GROUP DAY CARE HOMES-
`(I) IN GENERAL-
`(aa) FACTORS- Except as provided in subclause (II), with respect
to meals or supplements served under this clause by a family or
group day care home that does not meet the criteria set forth in
clause (ii)(I), the reimbursement factors shall be 95 cents for
lunches and suppers, 27 cents for breakfasts, and 13 cents for
supplements.
`(bb) ADJUSTMENTS- The factors shall be adjusted on July 1, 1997,
and each July 1 thereafter, to reflect changes in the Consumer
Price Index for food at home for the most recent 12-month period
for which the data are available. The reimbursement factors under
this item shall be rounded down to the nearest lower cent increment
and based on the unrounded adjustment for the preceding 12-month
period.
`(cc) REIMBURSEMENT- A family or group day care home shall be
provided reimbursement factors under this subclause without a
requirement for documentation of the costs described in clause (i),
except that reimbursement shall not be provided under this
subclause for meals or supplements served to the children of a
person acting as a family or group day care home provider unless
the children meet the income eligibility guidelines for free or
reduced price meals under section 9.
`(II) OTHER FACTORS- A family or group day care home that does
not meet the criteria set forth in clause (ii)(I) may elect to be
provided reimbursement factors determined in accordance with the
following requirements:
`(aa) CHILDREN ELIGIBLE FOR FREE OR REDUCED PRICE MEALS- In the
case of meals or supplements served under this subsection to
children who are members of households whose incomes meet the
income eligibility guidelines for free or reduced price meals under
section 9, the family or group day care home shall be provided
reimbursement factors set by the Secretary in accordance with
clause (ii)(III).
`(bb) INELIGIBLE CHILDREN- In the case of meals or supplements
served under this subsection to children who are members of
households whose incomes do not meet the income eligibility
guidelines, the family or group day care home shall be provided
reimbursement factors in accordance with subclause (I).
`(III) INFORMATION AND DETERMINATIONS-
`(aa) IN GENERAL- If a family or group day care home elects to
claim the factors described in subclause (II), the family or group
day care home sponsoring organization serving the home shall
collect the necessary income information, as determined by the
Secretary, from any parent or other caretaker to make the
determinations specified in subclause (II) and shall make the
determinations in accordance with rules prescribed by the Secretary.
`(bb) CATEGORICAL ELIGIBILITY- In making a determination under
item (aa), a family or group day care home sponsoring organization
may consider a child participating in or subsidized under, or a
child with a parent participating in or subsidized under, a
federally or State supported child care or other benefit program
with an income eligibility limit that does not exceed the
eligibility standard for free or reduced price meals under section
9 to be a child who is a member of a household whose income meets
the income eligibility guidelines under section 9.
`(cc) FACTORS FOR CHILDREN ONLY- A family or group day care home
may elect to receive the reimbursement factors prescribed under
clause (ii)(III) solely for the children participating in a program
referred to in item (bb) if the home elects not to have income
statements collected from parents or other caretakers.
`(IV) SIMPLIFIED MEAL COUNTING AND REPORTING PROCEDURES- The
Secretary shall prescribe simplified meal counting and reporting
procedures for use by a family or group day care home that elects
to claim the factors under subclause (II) and by a family or group
day care home sponsoring organization that sponsors the home. The
procedures the Secretary prescribes may include 1 or more of the
following:
`(aa) Setting an annual percentage for each home of the number of
meals served that are to be reimbursed in accordance with the
reimbursement factors prescribed under clause (ii)(III) and an
annual percentage of the number of meals served that are to be
reimbursed in accordance with the reimbursement factors prescribed
under subclause (I), based on the family income of children
enrolled in the home in a specified month or other period.
`(bb) Placing a home into 1 of 2 or more reimbursement categories
annually based on the percentage of children in the home whose
households have incomes that meet the income eligibility guidelines
under section 9, with each such reimbursement category carrying a
set of reimbursement factors such as the factors prescribed under
clause (ii)(III) or subclause (I) or factors established within the
range of factors prescribed under clause (ii)(III) and subclause (I).
`(cc) Such other simplified procedures as the Secretary may
prescribe.
`(V) MINIMUM VERIFICATION REQUIREMENTS- The Secretary may
establish any minimum verification requirements that are necessary
to carry out this clause.'.
(2) GRANTS TO STATES TO PROVIDE ASSISTANCE TO FAMILY OR GROUP
DAY CARE HOMES- Section 17(f)(3) of the National School Lunch
Act (42 U.S.C. 1766(f)(3)) is amended by adding at the end the
following:
`(D) GRANTS TO STATES TO PROVIDE ASSISTANCE TO FAMILY OR
GROUP DAY CARE HOMES-
`(i) IN GENERAL-
`(I) RESERVATION- From amounts made available to carry out this
section, the Secretary shall reserve $5,000,000 of the amount made
available for fiscal year 1997.
`(II) PURPOSE- The Secretary shall use the funds made available
under subclause (I) to provide grants to States for the purpose of
providing--
`(aa) assistance, including grants, to family and day care home
sponsoring organizations and other appropriate organizations, in
securing and providing training, materials, automated data
processing assistance, and other assistance for the staff of the
sponsoring organizations; and
`(bb) training and other assistance to family and group day care
homes in the implementation of the amendment to subparagraph (A)
made by section 708(e)(1) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
`(ii) ALLOCATION- The Secretary shall allocate from
the funds reserved under clause (i)(I)--
`(I) $30,000 in base funding to each State; and
`(II) any remaining amount among the States, based on the number
of family day care homes participating in the program in a State
during fiscal year 1995 as a percentage of the number of all family
day care homes participating in the program during fiscal year 1995.
`(iii) RETENTION OF FUNDS- Of the amount of funds
made available to a State for fiscal year 1997 under
clause (i), the State may retain not to exceed 30
percent of the amount to carry out this subparagraph.
`(iv) ADDITIONAL PAYMENTS- Any payments received
under this subparagraph shall be in addition to
payments that a State receives under subparagraph (A).'.
(3) PROVISION OF DATA- Section 17(f)(3) of the National
School Lunch Act (42 U.S.C. 1766(f)(3)), as amended by
paragraph (2), is amended by adding at the end the following:
`(E) PROVISION OF DATA TO FAMILY OR GROUP DAY CARE HOME
SPONSORING ORGANIZATIONS-
`(i) CENSUS DATA- The Secretary shall provide to each
State agency administering a child and adult care food
program under this section data from the most recent
decennial census survey or other appropriate census
survey for which the data are available showing which
areas in the State meet the requirements of
subparagraph (A)(ii)(I)(aa). The State agency shall
provide the data to family or group day care home
sponsoring organizations located in the State.
`(ii) SCHOOL DATA-
`(I) IN GENERAL- A State agency administering the school lunch
program under this Act or the school breakfast program under the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall provide
to approved family or group day care home sponsoring organizations
a list of schools serving elementary school children in the State
in which not less than 1/2 of the children enrolled are certified
to receive free or reduced price meals. The State agency shall
collect the data necessary to create the list annually and provide
the list on a timely basis to any approved family or group day care
home sponsoring organization that requests the list.
`(II) USE OF DATA FROM PRECEDING SCHOOL YEAR- In determining for
a fiscal year or other annual period whether a home qualifies as a
tier I family or group day care home under subparagraph (A)(ii)(I),
the State agency administering the program under this section, and
a family or group day care home sponsoring organization, shall use
the most current available data at the time of the determination.
`(iii) DURATION OF DETERMINATION- For purposes of
this section, a determination that a family or group
day care home is located in an area that qualifies the
home as a tier I family or group day care home (as the
term is defined in subparagraph (A)(ii)(I)), shall be
in effect for 3 years (unless the determination is made
on the basis of census data, in which case the
determination shall remain in effect until more recent
census data are available) unless the State agency
determines that the area in which the home is located
no longer qualifies the home as a tier I family or
group day care home.'.
(4) CONFORMING AMENDMENTS- Section 17(c) of the National
School Lunch Act (42 U.S.C. 1766(c)) is amended by inserting
`except as provided in subsection (f)(3),' after `For purposes
of this section,' each place it appears in paragraphs (1), (2),
and (3).
(f) REIMBURSEMENT- Section 17(f) of the National School Lunch Act
(42 U.S.C. 1766(f)) is amended--
(1) in paragraph (3)--
(A) in subparagraph (B), by striking the third and fourth
sentences; and
(B) in subparagraph (C)(ii), by striking `conduct
outreach' and all that follows through `may become' and
inserting `assist unlicensed family or group day care homes
in becoming'; and
(2) in the first sentence of paragraph (4), by striking
`shall' and inserting `may'.
(g) NUTRITIONAL REQUIREMENTS- Section 17(g)(1) of the National
School Lunch Act (42 U.S.C. 1766(g)(1)) is amended--
(1) in subparagraph (A), by striking the second sentence; and
(2) in subparagraph (B), by striking the second sentence.
(h) ELIMINATION OF STATE PAPERWORK AND OUTREACH BURDEN- Section
17 of the National School Lunch Act (42 U.S.C. 1766) is amended by
striking subsection (k) and inserting the following:
`(k) TRAINING AND TECHNICAL ASSISTANCE- A State participating in
the program established under this section shall provide sufficient
training, technical assistance, and monitoring to facilitate
effective operation of the program. The Secretary shall assist the
State in developing plans to fulfill the requirements of this
subsection.'.
(i) RECORDS- The second sentence of section 17(m) of the National
School Lunch Act (42 U.S.C. 1766(m)) is amended by striking `at all
times' and inserting `at any reasonable time'.
(j) UNNEEDED PROVISION- Section 17 of the National School Lunch
Act is amended by striking subsection (q).
(k) EFFECTIVE DATE-
(1) IN GENERAL- Except as provided in paragraph (2), the
amendments made by this section shall become effective on the
date of enactment of this Act.
(2) IMPROVED TARGETING OF DAY CARE HOME REIMBURSEMENTS- The
amendments made by paragraphs (1) and (4) of subsection (e)
shall become effective on July 1, 1997.
(3) REGULATIONS-
(A) INTERIM REGULATIONS- Not later than January 1, 1997,
the Secretary of Agriculture shall issue interim
regulations to implement--
(i) the amendments made by paragraphs (1), (3), and
(4) of subsection (e); and
(ii) section 17(f)(3)(C) of the National School Lunch
Act (42 U.S.C. 1766(f)(3)(C)).
(B) FINAL REGULATIONS- Not later than July 1, 1997, the
Secretary of Agriculture shall issue final regulations to
implement the provisions of law referred to in subparagraph
(A).
(l) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM PARTICIPATION AND
FAMILY DAY CARE LICENSING-
(1) IN GENERAL- The Secretary of Agriculture, in conjunction
with the Secretary of Health and Human Services, shall study
the impact of the amendments made by this section on--
(A) the number of family day care homes participating in
the child and adult care food program established under
section 17 of the National School Lunch Act (42 U.S.C. 1766);
(B) the number of day care home sponsoring organizations
participating in the program;
(C) the number of day care homes that are licensed,
certified, registered, or approved by each State in
accordance with regulations issued by the Secretary;
(D) the rate of growth of the numbers referred to in
subparagraphs (A) through (C);
(E) the nutritional adequacy and quality of meals served
in family day care homes that--
(i) received reimbursement under the program prior to
the amendments made by this section but do not receive
reimbursement after the amendments made by this
section; or
(ii) received full reimbursement under the program
prior to the amendments made by this section but do not
receive full reimbursement after the amendments made by
this section; and
(F) the proportion of low-income children participating
in the program prior to the amendments made by this section
and the proportion of low-income children participating in
the program after the amendments made by this section.
(2) REQUIRED DATA- Each State agency participating in the
child and adult care food program under section 17 of the
National School Lunch Act (42 U.S.C. 1766) shall submit to the
Secretary of Agriculture data on--
(A) the number of family day care homes participating in
the program on June 30, 1997, and June 30, 1998;
(B) the number of family day care homes licensed,
certified, registered, or approved for service on June 30,
1997, and June 30, 1998; and
(C) such other data as the Secretary may require to carry
out this subsection.
(3) SUBMISSION OF REPORT- Not later than 2 years after the
date of enactment of this section, the Secretary of Agriculture
shall submit the study required under this subsection to the
Committee on Economic and Educational Opportunities of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
SEC. 709. PILOT PROJECTS.
(a) UNIVERSAL FREE PILOT- Section 18(d) of the National School
Lunch Act (42 U.S.C. 1769(d)) is amended--
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as paragraphs (3)
and (4), respectively.
(b) DEMONSTRATION PROJECT OUTSIDE SCHOOL HOURS- Section 18(e) of
the National School Lunch Act (42 U.S.C. 1769(e)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking `(A)'; and
(ii) by striking `shall' and inserting `may'; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (5) and inserting the following:
`(5) AUTHORIZATION OF APPROPRIATIONS- There are authorized to
be appropriated to carry out this subsection such sums as are
necessary for each of fiscal years 1997 and 1998.'.
SEC. 710. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42 U.S.C. 1769a) is
repealed.
SEC. 711. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42 U.S.C. 1769d) is
repealed.
SEC. 712. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.
Section 24 of the National School Lunch Act (42 U.S.C. 1769e) is
repealed.
SUBTITLE B--CHILD NUTRITION ACT OF 1966
SEC. 721. SPECIAL MILK PROGRAM.
Section 3(a)(3) of the Child Nutrition Act of 1966 (42 U.S.C.
1772(a)(3)) is amended by striking `the Trust Territory of the
Pacific Islands' and inserting `the Commonwealth of the Northern
Mariana Islands'.
SEC. 722. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 4(b)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1773(b)(1)) is amended by adding at the end the following:
`(E) FREE AND REDUCED PRICE POLICY STATEMENT- After the
initial submission, a school food authority shall not be
required to submit a free and reduced price policy
statement to a State educational agency under this Act
unless there is a substantive change in the free and
reduced price policy of the school food authority. A
routine change in the policy of a school food authority,
such as an annual adjustment of the income eligibility
guidelines for free and reduced price meals, shall not be
sufficient cause for requiring the school food authority to
submit a policy statement.'.
SEC. 723. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
(a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD PREPARATION-
Section 4(e)(1)(B) of the Child Nutrition Act of 1966 (42 U.S.C.
1773(e)(1)(B)) is amended by striking the second sentence.
(b) EXPANSION OF PROGRAM; STARTUP AND EXPANSION COSTS-
(1) IN GENERAL- Section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773) is amended by striking subsections (f) and (g).
(2) EFFECTIVE DATE- The amendments made by paragraph (1)
shall become effective on October 1, 1996.
SEC. 724. STATE ADMINISTRATIVE EXPENSES.
(a) USE OF FUNDS FOR COMMODITY DISTRIBUTION ADMINISTRATION;
STUDIES- Section 7 of the Child Nutrition Act of 1966 (42 U.S.C.
1776) is amended--
(1) by striking subsections (e) and (h); and
(2) by redesignating subsections (f), (g), and (i) as
subsections (e), (f), and (g), respectively.
(b) APPROVAL OF CHANGES- Section 7(e) of the Child Nutrition Act
of 1966 (42 U.S.C. 1776(e)), as so redesignated, is amended--
(1) by striking `each year an annual plan' and inserting `the
initial fiscal year a plan'; and
(2) by adding at the end the following: `After submitting the
initial plan, a State shall be required to submit to the
Secretary for approval only a substantive change in the plan.'.
SEC. 725. REGULATIONS.
Section 10(b) of the Child Nutrition Act of 1966 (42 U.S.C.
1779(b)) is amended--
(1) in paragraph (1), by striking `(1)'; and
(2) by striking paragraphs (2) through (4).
SEC. 726. PROHIBITIONS.
Section 11(a) of the Child Nutrition Act of 1966 (42 U.S.C.
1780(a)) is amended by striking `neither the Secretary nor the
State shall' and inserting `the Secretary shall not'.
SEC. 727. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784) is
amended--
(1) in paragraph (1), by striking `the Trust Territory of the
Pacific Islands' and inserting `the Commonwealth of the
Northern Mariana Islands'; and
(2) in the first sentence of paragraph (3)--
(A) in subparagraph (A), by inserting `and' at the end; and
(B) by striking `, and (C)' and all that follows through
`Governor of Puerto Rico'.
SEC. 728. ACCOUNTS AND RECORDS.
The second sentence of section 16(a) of the Child Nutrition Act
of 1966 (42 U.S.C. 1785(a)) is amended by striking `at all times be
available' and inserting `be available at any reasonable time'.
SEC. 729. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN,
INFANTS, AND CHILDREN.
(a) DEFINITIONS- Section 17(b) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(b)) is amended--
(1) in paragraph (15)(B)(iii), by inserting `of not more than
365 days' after `accommodation'; and
(2) in paragraph (16)--
(A) in subparagraph (A), by adding `and' at the end; and
(B) in subparagraph (B), by striking `; and' and
inserting a period; and
(C) by striking subparagraph (C).
(b) SECRETARY'S PROMOTION OF WIC- Section 17(c) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(c)) is amended by striking
paragraph (5).
(c) ELIGIBLE PARTICIPANTS- Section 17(d) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(d)) is amended by striking paragraph (4).
(d) NUTRITION EDUCATION- Section 17(e) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(e)) is amended--
(1) in paragraph (2), by striking the third sentence;
(2) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by striking
`shall';
(B) by striking subparagraph (A);
(C) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively;
(D) in subparagraph (A), as so redesignated--
(i) by inserting `shall' before `provide'; and
(ii) by striking `and' at the end;
(E) in subparagraph (B), as so redesignated--
(i) by inserting `shall' before `provide'; and
(ii) by striking the period at the end and inserting
`; and'; and
(F) by adding at the end the following:
`(C) may provide a local agency with materials describing
other programs for which a participant in the program may be
eligible.';
(3) in paragraph (5), by striking `The State agency shall
ensure that each' and inserting `Each'; and
(4) by striking paragraph (6).
(e) STATE PLAN- Section 17(f) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(f)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking `annually to the Secretary, by a date
specified by the Secretary, a' and inserting `to the
Secretary, by a date specified by the Secretary, an
initial'; and
(ii) by adding at the end the following: `After
submitting the initial plan, a State shall be required
to submit to the Secretary for approval only a
substantive change in the plan.';
(B) in subparagraph (C)--
(i) by striking clause (iii) and inserting the
following:
`(iii) a plan to coordinate operations under the program with
other services or programs that may benefit participants in,
and applicants for, the program;';
(ii) in clause (vi), by inserting after `in the
State' the following: `(including a plan to improve
access to the program for participants and prospective
applicants who are employed, or who reside in rural
areas)';
(iii) in clause (vii), by striking `to provide
program benefits' and all that follows through
`emphasis on' and inserting `for';
(iv) by striking clauses (ix), (x), and (xii);
(v) in clause (xiii), by striking `may require' and
inserting `may reasonably require';
(vi) by redesignating clauses (xi) and (xiii), as so
amended, as clauses (ix) and (x), respectively; and
(vii) in clause (ix), as so redesignated, by adding
`and' at the end;
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as subparagraph (D);
(2) by striking paragraphs (6) and (22);
(3) in the second sentence of paragraph (5), by striking `at
all times be available' and inserting `be available at any
reasonable time';
(4) in paragraph (9)(B), by striking the second sentence;
(5) in the first sentence of paragraph (11), by striking `,
including standards that will ensure sufficient State agency
staff';
(6) in paragraph (12), by striking the third sentence;
(7) in paragraph (14), by striking `shall' and inserting `may';
(8) in paragraph (17), by striking `and to accommodate' and
all that follows through `facilities';
(9) in paragraph (19), by striking `shall' and inserting
`may'; and
(10) by redesignating paragraphs (7) through (21) as
paragraphs (6) through (20), and paragraphs (23) and (24) as
paragraphs (21) and (22), respectively.
(f) INFORMATION- Section 17(g) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(g)) is amended--
(1) in paragraph (5), by striking `the report required under
subsection (d)(4)' and inserting `reports on program
participant characteristics'; and
(2) by striking paragraph (6).
(g) PROCUREMENT OF INFANT FORMULA-
(1) IN GENERAL- Section 17(h) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(h)) is amended--
(A) in paragraph (4)(E), by striking `and, on' and all
that follows through `(d)(4)'; and
(B) in paragraph (8)--
(i) by striking subparagraphs (A), (C), and (M);
(ii) in subparagraph (G)--
(I) in clause (i), by striking `(i)'; and
(II) by striking clauses (ii) through (ix);
(iii) in subparagraph (I), by striking `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- The amendments made by paragraph (1) shall
not apply to a contract for the procurement of infant formula
under section 17(h)(8) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(h)(8)) that is in effect on the date of enactment
of this subsection.
(h) NATIONAL ADVISORY COUNCIL ON MATERNAL, INFANT, AND FETAL
NUTRITION- Section 17(k)(3) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(k)(3)) is amended by striking `Secretary shall
designate' and inserting `Council shall elect'.
(i) COMPLETED STUDY; COMMUNITY COLLEGE DEMONSTRATION; GRANTS FOR
INFORMATION AND DATA SYSTEM- Section 17 of the Child Nutrition Act
of 1966 (42 U.S.C. 1786) is amended by striking subsections (n),
(o), and (p).
(j) DISQUALIFICATION OF VENDORS WHO ARE DISQUALIFIED UNDER THE
FOOD STAMP PROGRAM- Section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786), as amended by subsection (i), is amended by
adding at the end the following:
`(n) DISQUALIFICATION OF VENDORS WHO ARE DISQUALIFIED UNDER THE
FOOD STAMP PROGRAM-
`(1) IN GENERAL- The Secretary shall issue regulations
providing criteria for the disqualification under this section
of an approved vendor that is disqualified from accepting
benefits under the food stamp program established under the
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
`(2) TERMS- A disqualification under paragraph (1)--
`(A) shall be for the same period as the disqualification
from the program referred to in paragraph (1);
`(B) may begin at a later date than the disqualification
from the program referred to in paragraph (1); and
`(C) shall not be subject to judicial or administrative
review.'.
SEC. 730. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42 U.S.C. 1787) is
repealed.
SEC. 731. NUTRITION EDUCATION AND TRAINING.
(a) FINDINGS- Section 19 of the Child Nutrition Act of 1966 (42
U.S.C. 1788) is amended--
(1) in subsection (a), by striking `that--' and all that
follows through the period at the end and inserting `that
effective dissemination of scientifically valid information to
children participating or eligible to participate in the school
lunch and related child nutrition programs should be
encouraged.'; and
(2) in subsection (b), by striking `encourage' and all that
follows through `establishing' and inserting `establish'.
(b) USE OF FUNDS- Section 19(f) of the Child Nutrition Act of
1966 (42 U.S.C. 1788(f)) is amended--
(1) in paragraph (1)--
(A) by striking subparagraph (B); and
(B) in subparagraph (A)--
(i) by striking `(A)';
(ii) by striking clauses (ix) through (xix);
(iii) by redesignating clauses (i) through (viii) and
(xx) as subparagraphs (A) through (H) and (I),
respectively;
(iv) in subparagraph (I), as so redesignated, by
striking the period at the end and inserting `; and'; and
(v) by adding at the end the following:
`(J) other appropriate related activities, as determined by
the State.';
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as paragraph (2).
(c) ACCOUNTS, RECORDS, AND REPORTS- The second sentence of
section 19(g)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1788(g)(1)) is amended by striking `at all times be available' and
inserting `be available at any reasonable time'.
(d) STATE COORDINATORS FOR NUTRITION; STATE PLAN- Section 19(h)
of the Child Nutrition Act of 1966 (42 U.S.C. 1788(h)) is amended--
(1) in the second sentence of paragraph (1)--
(A) by striking `as provided in paragraph (2) of this
subsection'; and
(B) by striking `as provided in paragraph (3) of this
subsection';
(2) in paragraph (2), by striking the second and third
sentences; and
(3) by striking paragraph (3).
(e) AUTHORIZATION OF APPROPRIATIONS- Section 19(i) of the Child
Nutrition Act of 1966 (42 U.S.C. 1788(i)) is amended--
(1) in the first sentence of paragraph (2)(A), by striking
`and each succeeding fiscal year';
(2) by redesignating paragraphs (3) and (4) as paragraphs (4)
and (5), respectively; and
(3) by inserting after paragraph (2) the following:
`(3) FISCAL YEARS 1997 THROUGH 2002-
`(A) IN GENERAL- There are authorized to be appropriated
to carry out this section $10,000,000 for each of fiscal
years 1997 through 2002.
`(B) GRANTS-
`(i) IN GENERAL- Grants to each State from the
amounts made available under subparagraph (A) shall be
based on a rate of 50 cents for each child enrolled in
schools or institutions within the State, except that
no State shall receive an amount less than $75,000 per
fiscal year.
`(ii) INSUFFICIENT FUNDS- If the amount made
available for any fiscal year is insufficient to pay
the amount to which each State is entitled under clause
(i), the amount of each grant shall be ratably reduced.'.
(f) ASSESSMENT- Section 19 of the Child Nutrition Act of 1966 (42
U.S.C. 1788) is amended by striking subsection (j).
(g) EFFECTIVE DATE- The amendments made by subsection (e) shall
become effective on October 1, 1996.
SUBTITLE C--MISCELLANEOUS PROVISIONS
SEC. 741. COORDINATION OF SCHOOL LUNCH, SCHOOL BREAKFAST, AND
SUMMER FOOD SERVICE PROGRAMS.
(a) COORDINATION-
(1) IN GENERAL- The Secretary of Agriculture shall develop
proposed changes to the regulations under the school lunch
program under the National School Lunch Act (42 U.S.C. 1751 et
seq.), the summer food service program under section 13 of that
Act (42 U.S.C. 1761), and the school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773),
for the purpose of simplifying and coordinating those programs
into a comprehensive meal program.
(2) CONSULTATION- In developing proposed changes to the
regulations under paragraph (1), the Secretary of Agriculture
shall consult with local, State, and regional administrators of
the programs described in such paragraph.
(b) REPORT- Not later than November 1, 1997, the Secretary of
Agriculture shall submit to the Committee on Agriculture,
Nutrition, and Forestry of the Senate and the Committee on Economic
and Educational Opportunities of the House of Representatives a
report containing the proposed changes developed under subsection
(a).
SEC. 742. REQUIREMENTS RELATING TO PROVISION OF BENEFITS BASED ON
CITIZENSHIP, ALIENAGE, OR IMMIGRATION STATUS
UNDER THE NATIONAL SCHOOL LUNCH ACT, THE CHILD
NUTRITION ACT OF 1966, AND CERTAIN OTHER ACTS.
(a) SCHOOL LUNCH AND BREAKFAST PROGRAMS- Notwithstanding any
other provision of this Act, an individual who is eligible to
receive free public education benefits under State or local law
shall not be ineligible to receive benefits provided under the
school lunch program under the National School Lunch Act (42 U.S.C.
1751 et seq.) or the school breakfast program under section 4 of
the Child Nutrition Act of 1966 (42 U.S.C. 1773) on the basis of
citizenship, alienage, or immigration status.
(b) OTHER PROGRAMS-
(1) IN GENERAL- Nothing in this Act shall prohibit or require
a State to provide to an individual who is not a citizen or a
qualified alien, as defined in section 431(b), benefits under
programs established under the provisions of law described in
paragraph (2).
(2) PROVISIONS OF LAW DESCRIBED- The provisions of law
described in this paragraph are the following:
(A) Programs (other than the school lunch program and the
school breakfast program) under the National School Lunch
Act (42 U.S.C. 1751 et seq.) and the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.).
(B) Section 4 of the Agriculture and Consumer Protection
Act of 1973 (7 U.S.C. 612c note).
(C) The Emergency Food Assistance Act of 1983 (7 U.S.C
612c note).
(D) The food distribution program on Indian reservations
established under section 4(b) of the Food Stamp Act of
1977 (7 U.S.C 2013(b)).
TITLE VIII--FOOD STAMPS AND COMMODITY DISTRIBUTION
SUBTITLE A--FOOD STAMP PROGRAM
SEC. 801. DEFINITION OF CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is
amended by striking `Except as provided' and all that follows and
inserting the following: `The certification period shall not exceed
12 months, except that the certification period may be up to 24
months if all adult household members are elderly or disabled. A
State agency shall have at least 1 contact with each certified
household every 12 months.'.
SEC. 802. DEFINITION OF COUPON.
Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C. 2012(d)) is
amended by striking `or type of certificate' and inserting `type of
certificate, authorization card, cash or check issued in lieu of a
coupon, or access device, including an electronic benefit transfer
card or personal identification number,'.
SEC. 803. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food Stamp Act of 1977
(7 U.S.C. 2012(i)) is amended by striking `(who are not themselves
parents living with their children or married and living with their
spouses)'.
SEC. 804. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food Stamp Act of 1977
(7 U.S.C. 2012(o)) is amended--
(1) by striking `shall (1) make' and inserting the following:
`shall--
`(1) make';
(2) by striking `scale, (2) make' and inserting the
following: `scale;
`(2) make';
(3) by striking `Alaska, (3) make' and inserting the
following: `Alaska;
`(3) make'; and
(4) by striking `Columbia, (4) through' and all that follows
through the end of the subsection and inserting the following:
`Columbia; and
`(4) on October 1, 1996, and each October 1 thereafter,
adjust the cost of the diet to reflect the cost of the diet in
the preceding June, and round the result to the nearest lower
dollar increment for each household size, except that on
October 1, 1996, the Secretary may not reduce the cost of the
diet in effect on September 30, 1996.'.
SEC. 805. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C.
2012(s)(2)(C)) is amended by inserting `for not more than 90 days'
after `temporary accommodation'.
SEC. 806. STATE OPTION FOR ELIGIBILITY STANDARDS.
Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is
amended by striking `(b) The Secretary' and inserting the following:
`(b) ELIGIBILITY STANDARDS- Except as otherwise provided in this
Act, the Secretary'.
SEC. 807. EARNINGS OF STUDENTS.
Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)(7)) is amended by striking `21' and inserting `17'.
SEC. 808. ENERGY ASSISTANCE.
(a) IN GENERAL- Section 5(d) of the Food Stamp Act of 1977 (7
U.S.C. 2014(d)) is amended by striking paragraph (11) and inserting
the following: `(11)(A) any payments or allowances made for the
purpose of providing energy assistance under any Federal law (other
than part A of title IV of the Social Security Act (42 U.S.C. 601
et seq.)), or (B) a 1-time payment or allowance made under a
Federal or State law for the costs of weatherization or emergency
repair or replacement of an unsafe or inoperative furnace or other
heating or cooling device,'.
(b) CONFORMING AMENDMENTS- Section 5(k) of the Food Stamp Act of
1977 (7 U.S.C. 2014(k)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking `plan for aid to
families with dependent children approved' and inserting
`program funded'; and
(B) in subparagraph (B), by striking `, not including
energy or utility-cost assistance,';
(2) in paragraph (2), by striking subparagraph (C) and
inserting the following:
`(C) a payment or allowance described in subsection
(d)(11);'; and
(3) by adding at the end the following:
`(4) THIRD PARTY ENERGY ASSISTANCE PAYMENTS-
`(A) ENERGY ASSISTANCE PAYMENTS- For purposes of
subsection (d)(1), a payment made under a State law (other
than a law referred to in paragraph (2)(H)) to provide
energy assistance to a household shall be considered money
payable directly to the household.
`(B) ENERGY ASSISTANCE EXPENSES- For purposes of
subsection (e)(7), an expense paid on behalf of a household
under a State law to provide energy assistance shall be
considered an out-of-pocket expense incurred and paid by
the household.'.
SEC. 809. DEDUCTIONS FROM INCOME.
(a) IN GENERAL- Section 5 of the Food Stamp Act of 1977 (7 U.S.C.
2014) is amended by striking subsection (e) and inserting the
following:
`(e) DEDUCTIONS FROM INCOME-
`(1) STANDARD DEDUCTION- The Secretary shall allow a standard
deduction for each household in the 48 contiguous States and
the District of Columbia, Alaska, Hawaii, Guam, and the Virgin
Islands of the United States of $134, $229, $189, $269, and
$118, respectively.
`(2) EARNED INCOME DEDUCTION-
`(A) DEFINITION OF EARNED INCOME- In this paragraph, the
term `earned income' does not include--
`(i) income excluded by subsection (d); or
`(ii) any portion of income earned under a work
supplementation or support program, as defined under
section 16(b), that is attributable to public assistance.
`(B) DEDUCTION- Except as provided in subparagraph (C), a
household with earned income shall be allowed a deduction
of 20 percent of all earned income to compensate for taxes,
other mandatory deductions from salary, and work expenses.
`(C) EXCEPTION- The deduction described in subparagraph
(B) shall not be allowed with respect to determining an
overissuance due to the failure of a household to report
earned income in a timely manner.
`(3) DEPENDENT CARE DEDUCTION-
`(A) IN GENERAL- A household shall be entitled, with
respect to expenses (other than excluded expenses described
in subparagraph (B)) for dependent care, to a dependent
care deduction, the maximum allowable level of which shall
be $200 per month for each dependent child under 2 years of
age and $175 per month for each other dependent, for the
actual cost of payments necessary for the care of a
dependent if the care enables a household member to accept
or continue employment, or training or education that is
preparatory for employment.
`(B) EXCLUDED EXPENSES- The excluded expenses referred to
in subparagraph (A) are--
`(i) expenses paid on behalf of the household by a
third party;
`(ii) amounts made available and excluded, for the
expenses referred to in subparagraph (A), under
subsection (d)(3); and
`(iii) expenses that are paid under section 6(d)(4).
`(4) DEDUCTION FOR CHILD SUPPORT PAYMENTS-
`(A) IN GENERAL- A household shall be entitled to a
deduction for child support payments made by a household
member to or for an individual who is not a member of the
household if the household member is legally obligated to
make the payments.
`(B) METHODS FOR DETERMINING AMOUNT- The Secretary may
prescribe by regulation the methods, including calculation
on a retrospective basis, that a State agency shall use to
determine the amount of the deduction for child support
payments.
`(5) HOMELESS SHELTER ALLOWANCE- Under rules prescribed by
the Secretary, a State agency may develop a standard homeless
shelter allowance, which shall not exceed $143 per month, for
such expenses as may reasonably be expected to be incurred by
households in which all members are homeless individuals but
are not receiving free shelter throughout the month. A State
agency that develops the allowance may use the allowance in
determining eligibility and allotments for the households. The
State agency may make a household with extremely low shelter
costs ineligible for the allowance.
`(6) EXCESS MEDICAL EXPENSE DEDUCTION-
`(A) IN GENERAL- A household containing an elderly or
disabled member shall be entitled, with respect to expenses
other than expenses paid on behalf of the household by a
third party, to an excess medical expense deduction for the
portion of the actual costs of allowable medical expenses,
incurred by the elderly or disabled member, exclusive of
special diets, that exceeds $35 per month.
`(B) METHOD OF CLAIMING DEDUCTION-
`(i) IN GENERAL- A State agency shall offer an
eligible household under subparagraph (A) a method of
claiming a deduction for recurring medical expenses
that are initially verified under the excess medical
expense deduction in lieu of submitting information on,
or verification of, actual expenses on a monthly basis.
`(ii) METHOD- The method described in clause (i)
shall--
`(I) be designed to minimize the burden for the eligible elderly
or disabled household member choosing to deduct the recurrent
medical expenses of the member pursuant to the method;
`(II) rely on reasonable estimates of the expected medical
expenses of the member for the certification period (including
changes that can be reasonably anticipated based on available
information about the medical condition of the member, public or
private medical insurance coverage, and the current verified
medical expenses incurred by the member); and
`(III) not require further reporting or verification of a change
in medical expenses if such a change has been anticipated for the
certification period.
`(7) EXCESS SHELTER EXPENSE DEDUCTION-
`(A) IN GENERAL- A household shall be entitled, with
respect to expenses other than expenses paid on behalf of
the household by a third party, to an excess shelter
expense deduction to the extent that the monthly amount
expended by a household for shelter exceeds an amount equal
to 50 percent of monthly household income after all other
applicable deductions have been allowed.
`(B) MAXIMUM AMOUNT OF DEDUCTION- In the case of a
household that does not contain an elderly or disabled
individual, in the 48 contiguous States and the District of
Columbia, Alaska, Hawaii, Guam, and the Virgin Islands of
the United States, the excess shelter expense deduction
shall not exceed--
`(i) for the period beginning on the date of
enactment of this subparagraph and ending on December
31, 1996, $247, $429, $353, $300, and $182 per month,
respectively;
`(ii) for the period beginning on January 1, 1997,
and ending on September 30, 1998, $250, $434, $357,
$304, and $184 per month, respectively;
`(iii) for fiscal years 1999 and 2000, $275, $478,
$393, $334, and $203 per month, respectively; and
`(iv) for fiscal year 2001 and each subsequent fiscal
year, $300, $521, $429, $364, and $221 per month,
respectively.
`(C) STANDARD UTILITY ALLOWANCE-
`(i) IN GENERAL- In computing the excess shelter
expense deduction, a State agency may use a standard
utility allowance in accordance with regulations
promulgated by the Secretary, except that a State
agency may use an allowance that does not fluctuate
within a year to reflect seasonal variations.
`(ii) RESTRICTIONS ON HEATING AND COOLING EXPENSES-
An allowance for a heating or cooling expense may not
be used in the case of a household that--
`(I) does not incur a heating or cooling expense, as the case may
be;
`(II) does incur a heating or cooling expense but is located in a
public housing unit that has central utility meters and charges
households, with regard to the expense, only for excess utility
costs; or
`(III) shares the expense with, and lives with, another
individual not participating in the food stamp program, another
household participating in the food stamp program, or both, unless
the allowance is prorated between the household and the other
individual, household, or both.
`(iii) MANDATORY ALLOWANCE-
`(I) IN GENERAL- A State agency may make the use of a standard
utility allowance mandatory for all households with qualifying
utility costs if--
`(aa) the State agency has developed 1 or more standards that
include the cost of heating and cooling and 1 or more standards
that do not include the cost of heating and cooling; and
`(bb) the Secretary finds that the standards will not result in
an increased cost to the Secretary.
`(II) HOUSEHOLD ELECTION- A State agency that has not made the
use of a standard utility allowance mandatory under subclause (I)
shall allow a household to switch, at the end of a certification
period, between the standard utility allowance and a deduction
based on the actual utility costs of the household.
`(iv) AVAILABILITY OF ALLOWANCE TO RECIPIENTS OF
ENERGY ASSISTANCE-
`(I) IN GENERAL- Subject to subclause (II), if a State agency
elects to use a standard utility allowance that reflects heating or
cooling costs, the standard utility allowance shall be made
available to households receiving a payment, or on behalf of which
a payment is made, under the Low-Income Home Energy Assistance Act
of 1981 (42 U.S.C. 8621 et seq.) or other similar energy assistance
program, if the household still incurs out-of-pocket heating or
cooling expenses in excess of any assistance paid on behalf of the
household to an energy provider.
`(II) SEPARATE ALLOWANCE- A State agency may use a separate
standard utility allowance for households on behalf of which a
payment described in subclause (I) is made, but may not be required
to do so.
`(III) STATES NOT ELECTING TO USE SEPARATE ALLOWANCE- A State
agency that does not elect to use a separate allowance but makes a
single standard utility allowance available to households incurring
heating or cooling expenses (other than a household described in
subclause (I) or (II) of clause (ii)) may not be required to reduce
the allowance due to the provision (directly or indirectly) of
assistance under the Low-Income Home Energy Assistance Act of 1981
(42 U.S.C. 8621 et seq.).
`(IV) PRORATION OF ASSISTANCE- For the purpose of the food stamp
program, assistance provided under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621 et seq.) shall be considered
to be prorated over the entire heating or cooling season for which
the assistance was provided.'.
(b) CONFORMING AMENDMENT- Section 11(e)(3) of the Food Stamp Act
of 1977 (7 U.S.C. 2020(e)(3)) is amended by striking `. Under rules
prescribed' and all that follows through `verifies higher expenses'.
SEC. 810. VEHICLE ALLOWANCE.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is
amended by striking paragraph (2) and inserting the following:
`(2) INCLUDED ASSETS-
`(A) IN GENERAL- Subject to the other provisions of this
paragraph, the Secretary shall, in prescribing inclusions
in, and exclusions from, financial resources, follow the
regulations in force as of June 1, 1982 (other than those
relating to licensed vehicles and inaccessible resources).
`(B) ADDITIONAL INCLUDED ASSETS- The Secretary shall
include in financial resources--
`(i) any boat, snowmobile, or airplane used for
recreational purposes;
`(ii) any vacation home;
`(iii) any mobile home used primarily for vacation
purposes;
`(iv) subject to subparagraph (C), any licensed
vehicle that is used for household transportation or to
obtain or continue employment to the extent that the
fair market value of the vehicle exceeds $4,600 through
September 30, 1996, and $4,650 beginning October 1,
1996; and
`(v) any savings or retirement account (including an
individual account), regardless of whether there is a
penalty for early withdrawal.
`(C) EXCLUDED VEHICLES- A vehicle (and any other
property, real or personal, to the extent the property is
directly related to the maintenance or use of the vehicle)
shall not be included in financial resources under this
paragraph if the vehicle is--
`(i) used to produce earned income;
`(ii) necessary for the transportation of a
physically disabled household member; or
`(iii) depended on by a household to carry fuel for
heating or water for home use and provides the primary
source of fuel or water, respectively, for the
household.'.
SEC. 811. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED AS INCOME.
Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2014(k)(2)) is amended--
(1) by striking subparagraph (F); and
(2) by redesignating subparagraphs (G) and (H) as
subparagraphs (F) and (G), respectively.
SEC. 812. SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-EMPLOYED.
Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014), as
amended by title I, is amended by adding at the end the following:
`(m) SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-EMPLOYED-
`(1) IN GENERAL- Not later than 1 year after the date of
enactment of this subsection, the Secretary shall establish a
procedure by which a State may submit a method, designed to not
increase Federal costs, for the approval of the Secretary, that
the Secretary determines will produce a reasonable estimate of
income excluded under subsection (d)(9) in lieu of calculating
the actual cost of producing self-employment income.
`(2) INCLUSIVE OF ALL TYPES OF INCOME OR LIMITED TYPES OF
INCOME- The method submitted by a State under paragraph (1) may
allow a State to estimate income for all types of
self-employment income or may be limited to 1 or more types of
self-employment income.
`(3) DIFFERENCES FOR DIFFERENT TYPES OF INCOME- The method
submitted by a State under paragraph (1) may differ for
different types of self-employment income.'.
SEC. 813. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM
REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)) is amended--
(1) in clause (i), by striking `six months' and inserting `1
year'; and
(2) in clause (ii), by striking `1 year' and inserting `2
years'.
SEC. 814. DISQUALIFICATION OF CONVICTED INDIVIDUALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)(iii)) is amended--
(1) in subclause (II), by striking `or' at the end;
(2) in subclause (III), by striking the period at the end and
inserting `; or'; and
(3) by inserting after subclause (III) the following:
`(IV) a conviction of an offense under subsection (b) or
(c) of section 15 involving an item covered by subsection
(b) or (c) of section 15 having a value of $500 or more.'.
SEC. 815. DISQUALIFICATION.
(a) IN GENERAL- Section 6(d) of the Food Stamp Act of 1977 (7
U.S.C. 2015(d)) is amended by striking `(d)(1) Unless otherwise
exempted by the provisions' and all that follows through the end of
paragraph (1) and inserting the following:
`(d) CONDITIONS OF PARTICIPATION-
`(1) WORK REQUIREMENTS-
`(A) IN GENERAL- No physically and mentally fit
individual over the age of 15 and under the age of 60 shall
be eligible to participate in the food stamp program if the
individual--
`(i) refuses, at the time of application and every 12
months thereafter, to register for employment in a
manner prescribed by the Secretary;
`(ii) refuses without good cause to participate in an
employment and training program established under
paragraph (4), to the extent required by the State
agency;
`(iii) refuses without good cause to accept an offer
of employment, at a site or plant not subject to a
strike or lockout at the time of the refusal, at a wage
not less than the higher of--
`(I) the applicable Federal or State minimum wage; or
`(II) 80 percent of the wage that would have governed had the
minimum hourly rate under section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) been applicable to the
offer of employment;
`(iv) refuses without good cause to provide a State
agency with sufficient information to allow the State
agency to determine the employment status or the job
availability of the individual;
`(v) voluntarily and without good cause--
`(I) quits a job; or
`(II) reduces work effort and, after the reduction, the
individual is working less than 30 hours per week; or
`(vi) fails to comply with section 20.
`(B) HOUSEHOLD INELIGIBILITY- If an individual who is the
head of a household becomes ineligible to participate in
the food stamp program under subparagraph (A), the
household shall, at the option of the State agency, become
ineligible to participate in the food stamp program for a
period, determined by the State agency, that does not
exceed the lesser of--
`(i) the duration of the ineligibility of the
individual determined under subparagraph (C); or
`(ii) 180 days.
`(C) DURATION OF INELIGIBILITY-
`(i) FIRST VIOLATION- The first time that an
individual becomes ineligible to participate in the
food stamp program under subparagraph (A), the
individual shall remain ineligible until the later of--
`(I) the date the individual becomes eligible under subparagraph
(A);
`(II) the date that is 1 month after the date the individual
became ineligible; or
`(III) a date determined by the State agency that is not later
than 3 months after the date the individual became ineligible.
`(ii) SECOND VIOLATION- The second time that an
individual becomes ineligible to participate in the
food stamp program under subparagraph (A), the
individual shall remain ineligible until the later of--
`(I) the date the individual becomes eligible under subparagraph
(A);
`(II) the date that is 3 months after the date the individual
became ineligible; or
`(III) a date determined by the State agency that is not later
than 6 months after the date the individual became ineligible.
`(iii) THIRD OR SUBSEQUENT VIOLATION- The third or
subsequent time that an individual becomes ineligible
to participate in the food stamp program under
subparagraph (A), the individual shall remain
ineligible until the later of--
`(I) the date the individual becomes eligible under subparagraph
(A);
`(II) the date that is 6 months after the date the individual
became ineligible;
`(III) a date determined by the State agency; or
`(IV) at the option of the State agency, permanently.
`(D) ADMINISTRATION-
`(i) GOOD CAUSE- The Secretary shall determine the
meaning of good cause for the purpose of this paragraph.
`(ii) VOLUNTARY QUIT- The Secretary shall determine
the meaning of voluntarily quitting and reducing work
effort for the purpose of this paragraph.
`(iii) DETERMINATION BY STATE AGENCY-
`(I) IN GENERAL- Subject to subclause (II) and clauses (i) and
(ii), a State agency shall determine--
`(aa) the meaning of any term used in subparagraph (A);
`(bb) the procedures for determining whether an individual is in
compliance with a requirement under subparagraph (A); and
`(cc) whether an individual is in compliance with a requirement
under 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.'.
SEC. 816. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(2)) is amended by adding at the end the following: `A State
that requested a waiver to lower the age specified in subparagraph
(B) and had the waiver denied by the Secretary as of August 1,
1996, may, for a period of not more than 3 years, lower the age of
a dependent child that qualifies a parent or other member of a
household for an exemption under subparagraph (B) to between 1 and
6 years of age.'.
SEC. 817. EMPLOYMENT AND TRAINING.
(a) IN GENERAL- Section 6(d)(4) of the Food Stamp Act of 1977 (7
U.S.C. 2015(d)(4)) is amended--
(1) by striking `(4)(A) Not later than April 1, 1987, each'
and inserting the following:
`(4) EMPLOYMENT AND TRAINING-
`(A) IN GENERAL-
`(i) IMPLEMENTATION- Each';
(2) in subparagraph (A)--
(A) by inserting `work,' after `skills, training,'; and
(B) by adding at the end the following:
`(ii) STATEWIDE WORKFORCE DEVELOPMENT SYSTEM- Each
component of an employment and training program carried
out under this paragraph shall be delivered through a
statewide workforce development system, unless the
component is not available locally through such a
system.';
(3) in subparagraph (B)--
(A) in the matter preceding clause (i), by striking the
colon at the end and inserting the following: `, except
that the State agency shall retain the option to apply
employment requirements prescribed under this subparagraph
to a program applicant at the time of application:';
(B) in clause (i), by striking `with terms and
conditions' and all that follows through `time of
application'; and
(C) in clause (iv)--
(i) by striking subclauses (I) and (II); and
(ii) by redesignating subclauses (III) and (IV) as
subclauses (I) and (II), respectively;
(4) in subparagraph (D)--
(A) in clause (i), by striking `to which the application'
and all that follows through `30 days or less';
(B) in clause (ii), by striking `but with respect' and
all that follows through `child care'; and
(C) in clause (iii), by striking `, on the basis of' and
all that follows through `clause (ii)' and inserting `the
exemption continues to be valid';
(5) in subparagraph (E), by striking the third sentence;
(6) in subparagraph (G)--
(A) by striking `(G)(i) The State' and inserting `(G) The
State'; and
(B) by striking clause (ii);
(7) in subparagraph (H), by striking `(H)(i) The Secretary'
and all that follows through `(ii) Federal funds' and inserting
`(H) Federal funds';
(8) in subparagraph (I)(i)(II), by striking `, or was in
operation,' and all that follows through `Social Security Act'
and inserting the following: `), except that no such payment or
reimbursement shall exceed the applicable local market rate';
(9)(A) by striking subparagraphs (K) and (L) and inserting
the following:
`(K) LIMITATION ON FUNDING- Notwithstanding any other
provision of this paragraph, the amount of funds a State
agency uses to carry out this paragraph (including funds
used to carry out subparagraph (I)) for participants who
are receiving benefits under a State program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.) shall not exceed the amount of funds the State
agency used in fiscal year 1995 to carry out this paragraph
for participants who were receiving benefits in fiscal year
1995 under a State program funded under part A of title IV
of the Act (42 U.S.C. 601 et seq.).'; and
(B) by redesignating subparagraphs (M) and (N) as
subparagraphs (L) and (M), respectively; and
(10) in subparagraph (L), as so redesignated--
(A) by striking `(L)(i) The Secretary' and inserting `(L)
The Secretary'; and
(B) by striking clause (ii).
(b) FUNDING- Section 16(h) of the Food Stamp Act of 1977 (7
U.S.C. 2025(h)) is amended by striking `(h)(1)(A) The Secretary'
and all that follows through the end of paragraph (1) and inserting
the following:
`(h) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS-
`(1) IN GENERAL-
`(A) AMOUNTS- To carry out employment and training
programs, the Secretary shall reserve for allocation to
State agencies from funds made available for each fiscal
year under section 18(a)(1) the amount of--
`(i) for fiscal year 1996, $75,000,000;
`(ii) for fiscal year 1997, $79,000,000;
`(iii) for fiscal year 1998, $81,000,000;
`(iv) for fiscal year 1999, $84,000,000;
`(v) for fiscal year 2000, $86,000,000;
`(vi) for fiscal year 2001, $88,000,000; and
`(vii) for fiscal year 2002, $90,000,000.
`(B) ALLOCATION- The Secretary shall allocate the amounts
reserved under subparagraph (A) among the State agencies
using a reasonable formula (as determined by the Secretary)
that gives consideration to the population in each State
affected by section 6(o).
`(C) REALLOCATION-
`(i) NOTIFICATION- A State agency shall promptly
notify the Secretary if the State agency determines
that the State agency will not expend all of the funds
allocated to the State agency under subparagraph (B).
`(ii) REALLOCATION- On notification under clause (i),
the Secretary shall reallocate the funds that the State
agency will not expend as the Secretary considers
appropriate and equitable.
`(D) MINIMUM ALLOCATION- Notwithstanding subparagraphs
(A) through (C), the Secretary shall ensure that each State
agency operating an employment and training program shall
receive not less than $50,000 for each fiscal year.'.
(c) ADDITIONAL MATCHING FUNDS- Section 16(h)(2) of the Food Stamp
Act of 1977 (7 U.S.C. 2025(h)(2)) is amended by inserting before
the period at the end the following: `, including the costs for
case management and casework to facilitate the transition from
economic dependency to self-sufficiency through work'.
(d) REPORTS- Section 16(h) of the Food Stamp Act of 1977 (7
U.S.C. 2025(h)) is amended--
(1) in paragraph (5)--
(A) by striking `(5)(A) The Secretary' and inserting `(5)
The Secretary'; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (6).
SEC. 818. FOOD STAMP ELIGIBILITY.
The third sentence of section 6(f) of the Food Stamp Act of 1977
(7 U.S.C. 2015(f)) is amended by inserting `, at State option,'
after `less'.
SEC. 819. COMPARABLE TREATMENT FOR DISQUALIFICATION.
(a) IN GENERAL- Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) is amended by adding at the end the following:
`(i) COMPARABLE TREATMENT FOR DISQUALIFICATION-
`(1) IN GENERAL- If a disqualification is imposed on a member
of a household for a failure of the member to perform an action
required under a Federal, State, or local law relating to a
means-tested public assistance program, the State agency may
impose the same disqualification on the member of the household
under the food stamp program.
`(2) RULES AND PROCEDURES- If a disqualification is imposed
under paragraph (1) for a failure of an individual to perform
an action required under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.), the State agency may use
the rules and procedures that apply under part A of title IV of
the Act to impose the same disqualification under the food
stamp program.
`(3) APPLICATION AFTER DISQUALIFICATION PERIOD- A member of a
household disqualified under paragraph (1) may, after the
disqualification period has expired, apply for benefits under
this Act and shall be treated as a new applicant, except that a
prior disqualification under subsection (d) shall be considered
in determining eligibility.'.
(b) STATE PLAN PROVISIONS- Section 11(e) of the Food Stamp Act of
1977 (7 U.S.C. 2020(e)) is amended--
(1) in paragraph (24), by striking `and' at the end;
(2) in paragraph (25), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
`(26) the guidelines the State agency uses in carrying out
section 6(i); and'.
(c) CONFORMING AMENDMENT- Section 6(d)(2)(A) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(d)(2)(A)) is amended by striking `that
is comparable to a requirement of paragraph (1)'.
SEC. 820. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP
BENEFITS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by section 819, is amended by adding at the end the
following:
`(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP
BENEFITS- An individual shall be ineligible to participate in the
food stamp program as a member of any household for a 10-year
period if the individual is found by a State agency to have made,
or is convicted in a Federal or State court of having made, a
fraudulent statement or representation with respect to the identity
or place of residence of the individual in order to receive
multiple benefits simultaneously under the food stamp program.'.
SEC. 821. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by section 820, is amended by adding at the end the
following:
`(k) DISQUALIFICATION OF FLEEING FELONS- No member of a household
who is otherwise eligible to participate in the food stamp program
shall be eligible to participate in the program as a member of that
or any other household during any period during which the
individual is--
`(1) fleeing to avoid prosecution, or custody or confinement
after conviction, under the law of the place from which the
individual is fleeing, for a crime, or attempt to commit a
crime, that is a felony under the law of the place from which
the individual is fleeing or that, in the case of New Jersey,
is a high misdemeanor under the law of New Jersey; or
`(2) violating a condition of probation or parole imposed
under a Federal or State law.'.
SEC. 822. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by section 821, is amended by adding at the end the
following:
`(l) CUSTODIAL PARENT'S COOPERATION WITH CHILD SUPPORT AGENCIES-
`(1) IN GENERAL- At the option of a State agency, subject to
paragraphs (2) and (3), no natural or adoptive parent or other
individual (collectively referred to in this subsection as `the
individual') who is living with and exercising parental control
over a child under the age of 18 who has an absent parent shall
be eligible to participate in the food stamp program unless the
individual cooperates with the State agency administering the
program established under part D of title IV of the Social
Security Act (42 U.S.C. 651 et seq.)--
`(A) in establishing the paternity of the child (if the
child is born out of wedlock); and
`(B) in obtaining support for--
`(i) the child; or
`(ii) the individual and the child.
`(2) GOOD CAUSE FOR NONCOOPERATION- Paragraph (1) shall not
apply to the individual if good cause is found for refusing to
cooperate, as determined by the State agency in accordance with
standards prescribed by the Secretary in consultation with the
Secretary of Health and Human Services. The standards shall
take into consideration circumstances under which cooperation
may be against the best interests of the child.
`(3) FEES- Paragraph (1) shall not require the payment of a
fee or other cost for services provided under part D of title
IV of the Social Security Act (42 U.S.C. 651 et seq.).
`(m) NONCUSTODIAL PARENT'S COOPERATION WITH CHILD SUPPORT
AGENCIES-
`(1) IN GENERAL- At the option of a State agency, subject to
paragraphs (2) and (3), a putative or identified noncustodial
parent of a child under the age of 18 (referred to in this
subsection as `the individual') shall not be eligible to
participate in the food stamp program if the individual refuses
to cooperate with the State agency administering the program
established under part D of title IV of the Social Security Act
(42 U.S.C. 651 et seq.)--
`(A) in establishing the paternity of the child (if the
child is born out of wedlock); and
`(B) in providing support for the child.
`(2) REFUSAL TO COOPERATE-
`(A) GUIDELINES- The Secretary, in consultation with the
Secretary of Health and Human Services, shall develop
guidelines on what constitutes a refusal to cooperate under
paragraph (1).
`(B) PROCEDURES- The State agency shall develop
procedures, using guidelines developed under subparagraph
(A), for determining whether an individual is refusing to
cooperate under paragraph (1).
`(3) FEES- Paragraph (1) shall not require the payment of a
fee or other cost for services provided under part D of title
IV of the Social Security Act (42 U.S.C. 651 et seq.).
`(4) PRIVACY- The State agency shall provide safeguards to
restrict the use of information collected by a State agency
administering the program established under part D of title IV
of the Social Security Act (42 U.S.C. 651 et seq.) to purposes
for which the information is collected.'.
SEC. 823. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by section 822, is amended by adding at the end the
following:
`(n) DISQUALIFICATION FOR CHILD SUPPORT ARREARS-
`(1) IN GENERAL- At the option of a State agency, no
individual shall be eligible to participate in the food stamp
program as a member of any household during any month that the
individual is delinquent in any payment due under a court order
for the support of a child of the individual.
`(2) EXCEPTIONS- Paragraph (1) shall not apply if--
`(A) a court is allowing the individual to delay payment;
or
`(B) the individual is complying with a payment plan
approved by a court or the State agency designated under
part D of title IV of the Social Security Act (42 U.S.C.
651 et seq.) to provide support for the child of the
individual.'.
SEC. 824. WORK REQUIREMENT.
(a) IN GENERAL- Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 823, is amended by adding at the end
the following:
`(o) WORK REQUIREMENT-
`(1) DEFINITION OF WORK PROGRAM- In this subsection, the term
`work program' means--
`(A) a program under the Job Training Partnership Act (29
U.S.C. 1501 et seq.);
`(B) a program under section 236 of the Trade Act of 1974
(19 U.S.C. 2296); and
`(C) a program of employment and training operated or
supervised by a State or political subdivision of a State
that meets standards approved by the Governor of the State,
including a program under subsection (d)(4), other than a
job search program or a job search training program.
`(2) WORK REQUIREMENT- Subject to the other provisions of
this subsection, no individual shall be eligible to participate
in the food stamp program as a member of any household if,
during the preceding 36-month period, the individual received
food stamp benefits for not less than 3 months (consecutive or
otherwise) during which the individual did not--
`(A) work 20 hours or more per week, averaged monthly;
`(B) participate in and comply with the requirements of a
work program for 20 hours or more per week, as determined
by the State agency;
`(C) participate in and comply with the requirements of a
program under section 20 or a comparable program
established by a State or political subdivision of a State;
or
`(D) receive benefits pursuant to paragraph (3), (4), or
(5).
`(3) EXCEPTION- Paragraph (2) shall not apply to an
individual if the individual is--
`(A) under 18 or over 50 years of age;
`(B) medically certified as physically or mentally unfit
for employment;
`(C) a parent or other member of a household with
responsibility for a dependent child;
`(D) otherwise exempt under subsection (d)(2); or
`(E) a pregnant woman.
`(4) WAIVER-
`(A) IN GENERAL- On the request of a State agency, the
Secretary may waive the applicability of paragraph (2) to
any group of individuals in the State if the Secretary
makes a determination that the area in which the
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.
`(5) SUBSEQUENT ELIGIBILITY-
`(A) REGAINING ELIGIBILITY- An individual denied
eligibility under paragraph (2) shall regain eligibility to
participate in the food stamp program if, during a 30-day
period, the individual--
`(i) works 80 or more hours;
`(ii) participates in and complies with the
requirements of a work program for 80 or more hours, as
determined by a State agency; or
`(iii) participates in and complies with the
requirements of a program under section 20 or a
comparable program established by a State or political
subdivision of a State.
`(B) MAINTAINING ELIGIBILITY- An individual who regains
eligibility under subparagraph (A) shall remain eligible as
long as the individual meets the requirements of
subparagraph (A), (B), or (C) of paragraph (2).
`(C) LOSS OF EMPLOYMENT-
`(i) IN GENERAL- An individual who regained
eligibility under subparagraph (A) and who no longer
meets the requirements of subparagraph (A), (B), or (C)
of paragraph (2) shall remain eligible for a
consecutive 3-month period, beginning on the date the
individual first notifies the State agency that the
individual no longer meets the requirements of
subparagraph (A), (B), or (C) of paragraph (2).
`(ii) LIMITATION- An individual shall not receive any
benefits pursuant to clause (i) for more than a single
3-month period in any 36-month period.
`(6) OTHER PROGRAM RULES- Nothing in this subsection shall
make an individual eligible for benefits under this Act if the
individual is not otherwise eligible for benefits under the
other provisions of this Act.'.
(b) TRANSITION PROVISION- The term `preceding 36-month period' in
section 6(o) of the Food Stamp Act of 1977, as added by subsection
(a), does not include, with respect to a State, any period before
the earlier of--
(1) the date the State notifies recipients of food stamp
benefits of the application of section 6(o); or
(2) the date that is 3 months after the date of enactment of
this Act.
SEC. 825. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER SYSTEMS.
(a) IN GENERAL- Section 7(i) of the Food Stamp Act of 1977 (7
U.S.C. 2016(i)) is amended--
(1) by striking `(i)(1)(A) Any State' and all that follows
through the end of paragraph (1) and inserting the following:
`(i) ELECTRONIC BENEFIT TRANSFERS-
`(1) IN GENERAL-
`(A) IMPLEMENTATION- Not later than October 1, 2002, each
State agency shall implement an electronic benefit transfer
system under which household benefits determined under
section 8(a) or 26 are issued from and stored in a central
databank, unless the Secretary provides a waiver for a
State agency that faces unusual barriers to implementing an
electronic benefit transfer system.
`(B) TIMELY IMPLEMENTATION- Each State agency is
encouraged to implement an electronic benefit transfer
system under subparagraph (A) as soon as practicable.
`(C) STATE FLEXIBILITY- Subject to paragraph (2), a State
agency may procure and implement an electronic benefit
transfer system under the terms, conditions, and design
that the State agency considers appropriate.
`(D) OPERATION- An electronic benefit transfer system
should take into account generally accepted standard
operating rules based on--
`(i) commercial electronic funds transfer technology;
`(ii) the need to permit interstate operation and law
enforcement monitoring; and
`(iii) the need to permit monitoring and
investigations by authorized law enforcement agencies.';
(2) in paragraph (2)--
(A) by striking `effective no later than April 1, 1992,';
(B) in subparagraph (A)--
(i) by striking `, in any 1 year,'; and
(ii) by striking `on-line';
(C) by striking subparagraph (D) and inserting the
following:
`(D)(i) measures to maximize the security of a system
using the most recent technology available that the State
agency considers appropriate and cost effective and which
may include personal identification numbers, photographic
identification on electronic benefit transfer cards, and
other measures to protect against fraud and abuse; and
`(ii) effective not later than 2 years after the date of
enactment of this clause, to the extent practicable,
measures that permit a system to differentiate items of
food that may be acquired with an allotment from items of
food that may not be acquired with an allotment;';
(D) in subparagraph (G), by striking `and' at the end;
(E) in subparagraph (H), by striking the period at the
end and inserting `; and'; and
(F) by adding at the end the following:
`(I) procurement standards.'; and
(3) by adding at the end the following:
`(7) REPLACEMENT OF BENEFITS- Regulations issued by the
Secretary regarding the replacement of benefits and liability
for replacement of benefits under an electronic benefit
transfer system shall be similar to the regulations in effect
for a paper-based food stamp issuance system.
`(8) REPLACEMENT CARD FEE- A State agency may collect a
charge for replacement of an electronic benefit transfer card
by reducing the monthly allotment of the household receiving
the replacement card.
`(9) OPTIONAL PHOTOGRAPHIC IDENTIFICATION-
`(A) IN GENERAL- A State agency may require that an
electronic benefit card contain a photograph of 1 or more
members of a household.
`(B) OTHER AUTHORIZED USERS- If a State agency requires a
photograph on an electronic benefit card under subparagraph
(A), the State agency shall establish procedures to ensure
that any other appropriate member of the household or any
authorized representative of the household may utilize the
card.
`(10) APPLICABLE LAW- Disclosures, protections,
responsibilities, and remedies established by the Federal
Reserve Board under section 904 of the Electronic Fund Transfer
Act (15 U.S.C. 1693b) shall not apply to benefits under this
Act delivered through any electronic benefit transfer system.
`(11) APPLICATION OF ANTI-TYING RESTRICTIONS TO ELECTRONIC
BENEFIT TRANSFER SYSTEMS-
`(A) DEFINITIONS- In this paragraph:
`(i) AFFILIATE- The term `affiliate' has the meaning
provided the term in section 2(k) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841(k)).
`(ii) COMPANY- The term `company' has the meaning
provided the term in section 106(a) of the Bank Holding
Company Act Amendments of 1970 (12 U.S.C. 1971), but
shall not include a bank, a bank holding company, or
any subsidiary of a bank holding company.
`(iii) ELECTRONIC BENEFIT TRANSFER SERVICE- The term
`electronic benefit transfer service' means the
processing of electronic transfers of household
benefits, determined under section 8(a) or 26, if the
benefits are--
`(I) issued from and stored in a central databank;
`(II) electronically accessed by household members at the point
of sale; and
`(III) provided by a Federal or State government.
`(iv) POINT-OF-SALE SERVICE- The term `point-of-sale
service' means any product or service related to the
electronic authorization and processing of payments for
merchandise at a retail food store, including credit or
debit card services, automated teller machines,
point-of-sale terminals, or access to on-line systems.
`(B) RESTRICTIONS- A company may not sell or provide
electronic benefit transfer services, or fix or vary the
consideration for electronic benefit transfer services, on
the condition or requirement that the customer--
`(i) obtain some additional point-of-sale service
from the company or an affiliate of the company; or
`(ii) not obtain some additional point-of-sale
service from a competitor of the company or competitor
of any affiliate of the company.
`(C) CONSULTATION WITH THE FEDERAL RESERVE BOARD- Before
promulgating regulations or interpretations of regulations
to carry out this paragraph, the Secretary shall consult
with the Board of Governors of the Federal Reserve System.'.
(b) SENSE OF CONGRESS- It is the sense of Congress that a State
that operates an electronic benefit transfer system under the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should operate the system
in a manner that is compatible with electronic benefit transfer
systems operated by other States.
SEC. 826. VALUE OF MINIMUM ALLOTMENT.
The proviso in section 8(a) of the Food Stamp Act of 1977 (7
U.S.C. 2017(a)) is amended by striking `, and shall be adjusted'
and all that follows through `$5'.
SEC. 827. BENEFITS ON RECERTIFICATION.
Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C.
2017(c)(2)(B)) is amended by striking `of more than one month'.
SEC. 828. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c)) is
amended by striking paragraph (3) and inserting the following:
`(3) OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS- A
State agency may provide to an eligible household applying
after the 15th day of a month, in lieu of the initial allotment
of the household and the regular allotment of the household for
the following month, an allotment that is equal to the total
amount of the initial allotment and the first regular
allotment. The allotment shall be provided in accordance with
section 11(e)(3) in the case of a household that is not
entitled to expedited service and in accordance with paragraphs
(3) and (9) of section 11(e) in the case of a household that is
entitled to expedited service.'.
SEC. 829. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC
ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is
amended by striking subsection (d) and inserting the following:
`(d) REDUCTION OF PUBLIC ASSISTANCE BENEFITS-
`(1) IN GENERAL- If the benefits of a household are reduced
under a Federal, State, or local law relating to a means-tested
public assistance program for the failure of a member of the
household to perform an action required under the law or
program, for the duration of the reduction--
`(A) the household may not receive an increased allotment
as the result of a decrease in the income of the household
to the extent that the decrease is the result of the
reduction; and
`(B) the State agency may reduce the allotment of the
household by not more than 25 percent.
`(2) RULES AND PROCEDURES- If the allotment of a household is
reduced under this subsection for a failure to perform an
action required under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.), the State agency may use the rules
and procedures that apply under part A of title IV of the Act
to reduce the allotment under the food stamp program.'.
SEC. 830. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is
amended by adding at the end the following:
`(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS-
`(1) IN GENERAL- In the case of an individual who resides in
a center for the purpose of a drug or alcoholic treatment
program described in the last sentence of section 3(i), a State
agency may provide an allotment for the individual to--
`(A) the center as an authorized representative of the
individual for a period that is less than 1 month; and
`(B) the individual, if the individual leaves the center.
`(2) DIRECT PAYMENT- A State agency may require an individual
referred to in paragraph (1) to designate the center in which
the individual resides as the authorized representative of the
individual for the purpose of receiving an allotment.'.
SEC. 831. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD STORES
AND WHOLESALE FOOD CONCERNS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)(1)) is amended by adding at the end the following: `No
retail food store or wholesale food concern of a type determined by
the Secretary, based on factors that include size, location, and
type of items sold, shall be approved to be authorized or
reauthorized for participation in the food stamp program unless an
authorized employee of the Department of Agriculture, a designee of
the Secretary, or, if practicable, an official of the State or
local government designated by the Secretary has visited the store
or concern for the purpose of determining whether the store or
concern should be approved or reauthorized, as appropriate.'.
SEC. 832. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.
Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)) is
amended by adding at the end the following:
`(3) AUTHORIZATION PERIODS- The Secretary shall establish
specific time periods during which authorization to accept and
redeem coupons, or to redeem benefits through an electronic
benefit transfer system, shall be valid under the food stamp
program.'.
SEC. 833. INFORMATION FOR VERIFYING ELIGIBILITY FOR AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 2018(c)) is
amended--
(1) in the first sentence, by inserting `, which may include
relevant income and sales tax filing documents,' after `submit
information'; and
(2) by inserting after the first sentence the following: `The
regulations may require retail food stores and wholesale food
concerns to provide written authorization for the Secretary to
verify all relevant tax filings with appropriate agencies and
to obtain corroborating documentation from other sources so
that the accuracy of information provided by the stores and
concerns may be verified.'.
SEC. 834. WAITING PERIOD FOR STORES THAT FAIL TO MEET AUTHORIZATION
CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 2018(d)) is
amended by adding at the end the following: `A retail food store or
wholesale food concern that is denied approval to accept and redeem
coupons because the store or concern does not meet criteria for
approval established by the Secretary may not, for at least 6
months, submit a new application to participate in the program. The
Secretary may establish a longer time period under the preceding
sentence, including permanent disqualification, that reflects the
severity of the basis of the denial.'.
SEC. 835. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020), as
amended by sections 809(b) and 819(b), is amended--
(1) in subsection (e)--
(A) by striking paragraph (2) and inserting the following:
`(2)(A) that the State agency shall establish procedures
governing the operation of food stamp offices that the State
agency determines best serve households in the State, including
households with special needs, such as households with elderly
or disabled members, households in rural areas with low-income
members, homeless individuals, households residing on
reservations, and households in areas in which a substantial
number of members of low-income households speak a language
other than English.
`(B) In carrying out subparagraph (A), a State agency--
`(i) shall provide timely, accurate, and fair service to
applicants for, and participants in, the food stamp program;
`(ii) shall develop an application containing the
information necessary to comply with this Act;
`(iii) shall permit an applicant household to apply to
participate in the program on the same day that the
household first contacts a food stamp office in person
during office hours;
`(iv) shall consider an application that contains the
name, address, and signature of the applicant to be filed
on the date the applicant submits the application;
`(v) shall require that an adult representative of each
applicant household certify in writing, under penalty of
perjury, that--
`(I) the information contained in the application is
true; and
`(II) all members of the household are citizens or
are aliens eligible to receive food stamps under
section 6(f);
`(vi) shall provide a method of certifying and issuing
coupons to eligible homeless individuals, to ensure that
participation in the food stamp program is limited to
eligible households; and
`(vii) may establish operating procedures that vary for
local food stamp offices to reflect regional and local
differences within the State.
`(C) Nothing in this Act shall prohibit the use of signatures
provided and maintained electronically, storage of records
using automated retrieval systems only, or any other feature of
a State agency's application system that does not rely
exclusively on the collection and retention of paper
applications or other records.
`(D) The signature of any adult under this paragraph shall be
considered sufficient to comply with any provision of Federal
law requiring a household member to sign an application or
statement;';
(B) in paragraph (3)--
(i) by striking `shall--' and all that follows
through `provide each' and inserting `shall provide
each'; and
(ii) by striking `(B) assist' and all that follows
through `representative of the State agency;';
(C) by striking paragraphs (14) and (25);
(D)(i) by redesignating paragraphs (15) through (24) as
paragraphs (14) through (23), respectively; and
(ii) by redesignating paragraph (26), as paragraph (24);
and
(2) in subsection (i)--
(A) by striking `(i) Notwithstanding' and all that
follows through `(2)' and inserting the following:
`(i) APPLICATION AND DENIAL PROCEDURES-
`(1) APPLICATION PROCEDURES- Notwithstanding any other
provision of law,'; and
(B) by striking `; (3) households' and all that follows
through `title IV of the Social Security Act. No' and
inserting a period and the following:
`(2) DENIAL AND TERMINATION- Except in a case of
disqualification as a penalty for failure to comply with a
public assistance program rule or regulation, no'.
SEC. 836. STATE EMPLOYEE AND TRAINING STANDARDS.
Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(6)) is amended--
(1) by striking `that (A) the' and inserting `that--
`(A) the';
(2) by striking `Act; (B) the' and inserting `Act; and
`(B) the';
(3) in subparagraph (B), by striking `United States Civil
Service Commission' and inserting `Office of Personnel
Management'; and
(4) by striking subparagraphs (C) through (E).
SEC. 837. EXCHANGE OF LAW ENFORCEMENT INFORMATION.
Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(8)) is amended--
(1) by striking `that (A) such' and inserting the 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
`(II) has information that is necessary for the officer to
conduct an official duty related to subclause (I);
`(ii) locating or apprehending the member is an
official duty; and
`(iii) the request is being made in the proper
exercise of an official duty; and
`(E) the safeguards shall not prevent compliance with
paragraph (16);'.
SEC. 838. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(9)) is amended--
(1) in subparagraph (A), by striking `five days' and
inserting `7 days';
(2) by striking subparagraph (B);
(3) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C);
(4) in subparagraph (B), as redesignated by paragraph (3), by
striking `five days' and inserting `7 days'; and
(5) in subparagraph (C), as redesignated by paragraph (3), by
striking `, (B), or (C)' and inserting `or (B)'.
SEC. 839. WITHDRAWING FAIR HEARING REQUESTS.
Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(10)) is amended by inserting before the semicolon at the
end a period and the following: `At the option of a State, at any
time prior to a fair hearing determination under this paragraph, a
household may withdraw, orally or in writing, a request by the
household for the fair hearing. If the withdrawal request is an
oral request, the State agency shall provide a written notice to
the household confirming the withdrawal request and providing the
household with an opportunity to request a hearing'.
SEC. 840. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICATION
SYSTEMS.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is
amended--
(1) in subsection (e)(18), as redesignated by section
835(1)(D)--
(A) by striking `that information is' and inserting `at
the option of the State agency, that information may be'; and
(B) by striking `shall be requested' and inserting `may
be requested'; and
(2) by adding at the end the following:
`(p) STATE VERIFICATION OPTION- Notwithstanding any other
provision of law, in carrying out the food stamp program, a State
agency shall not be required to use an income and eligibility or an
immigration status verification system established under section
1137 of the Social Security Act (42 U.S.C. 1320b-7).'.
SEC. 841. INVESTIGATIONS.
Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C. 2021(a)) is
amended by adding at the end the following: `Regulations issued
pursuant to this Act shall provide criteria for the finding of a
violation and the suspension or disqualification of a retail food
store or wholesale food concern on the basis of evidence that may
include facts established through on-site investigations,
inconsistent redemption data, or evidence obtained through a
transaction report under an electronic benefit transfer system.'.
SEC. 842. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY SUBMIT
FALSIFIED APPLICATIONS.
Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C. 2021(b)) is
amended--
(1) in paragraph (2), by striking `and' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting `; and'; and
(3) by adding at the end the following:
`(4) for a reasonable period of time to be determined by the
Secretary, including permanent disqualification, on the knowing
submission of an application for the approval or
reauthorization to accept and redeem coupons that contains
false information about a substantive matter that was a part of
the application.'.
SEC. 843. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER
THE WIC PROGRAM.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is
amended by adding at the end the following:
`(g) DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE
WIC PROGRAM-
`(1) IN GENERAL- The Secretary shall issue regulations
providing criteria for the disqualification under this Act of
an approved retail food store or a wholesale food concern that
is disqualified from accepting benefits under the special
supplemental nutrition program for women, infants, and children
established under section 17 of the Child Nutrition Act of 1966
(7 U.S.C. 1786).
`(2) TERMS- A disqualification under paragraph (1)--
`(A) shall be for the same length of time as the
disqualification from the program referred to in paragraph
(1);
`(B) may begin at a later date than the disqualification
from the program referred to in paragraph (1); and
`(C) notwithstanding section 14, shall not be subject to
judicial or administrative review.'.
SEC. 844. COLLECTION OF OVERISSUANCES.
(a) COLLECTION OF OVERISSUANCES- Section 13 of the Food Stamp Act
of 1977 (7 U.S.C. 2022) is amended--
(1) by striking subsection (b) and inserting the following:
`(b) COLLECTION OF OVERISSUANCES-
`(1) IN GENERAL- Except as otherwise provided in this
subsection, a State agency shall collect any overissuance of
coupons issued to a household by--
`(A) reducing the allotment of the household;
`(B) withholding amounts from unemployment compensation
from a member of the household under subsection (c);
`(C) recovering from Federal pay or a Federal income tax
refund under subsection (d); or
`(D) any other means.
`(2) COST EFFECTIVENESS- Paragraph (1) shall not apply if the
State agency demonstrates to the satisfaction of the Secretary
that all of the means referred to in paragraph (1) are not cost
effective.
`(3) MAXIMUM REDUCTION ABSENT FRAUD- If a household received
an overissuance of coupons without any member of the household
being found ineligible to participate in the program under
section 6(b)(1) and a State agency elects to reduce the
allotment of the household under paragraph (1)(A), the State
agency shall not reduce the monthly allotment of the household
under paragraph (1)(A) by an amount in excess of the greater of--
`(A) 10 percent of the monthly allotment of the
household; or
`(B) $10.
`(4) PROCEDURES- A State agency shall collect an overissuance
of coupons issued to a household under paragraph (1) in
accordance with the requirements established by the State
agency for providing notice, electing a means of payment, and
establishing a time schedule for payment.'; and
(2) in subsection (d)--
(A) by striking `as determined under subsection (b) and
except for claims arising from an error of the State
agency,' and inserting `, as determined under subsection
(b)(1),'; and
(B) by inserting before the period at the end the
following: `or a Federal income tax refund as authorized by
section 3720A of title 31, United States Code'.
(b) CONFORMING AMENDMENTS- Section 11(e)(8)(C) of the Food Stamp
Act of 1977 (7 U.S.C. 2020(e)(8)(C)) is amended--
(1) by striking `and excluding claims' and all that follows
through `such section'; and
(2) by inserting before the semicolon at the end the
following: `or a Federal income tax refund as authorized by
section 3720A of title 31, United States Code'.
(c) RETENTION RATE- The proviso of the first sentence of section
16(a) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)) is amended
by striking `25 percent during the period beginning October 1,
1990' and all that follows through `section 13(b)(2) which arise'
and inserting `35 percent of the value of all funds or allotments
recovered or collected pursuant to sections 6(b) and 13(c) and 20
percent of the value of any other funds or allotments recovered or
collected, except the value of funds or allotments recovered or
collected that arise'.
SEC. 845. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM
REQUIREMENTS PENDING ADMINISTRATIVE AND JUDICIAL
REVIEW.
Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a)) is
amended--
(1) by redesignating the first through seventeenth sentences
as paragraphs (1) through (17), respectively; and
(2) by adding at the end the following:
`(18) SUSPENSION OF STORES PENDING REVIEW- Notwithstanding
any other provision of this subsection, any permanent
disqualification of a retail food store or wholesale food
concern under paragraph (3) or (4) of section 12(b) shall be
effective from the date of receipt of the notice of
disqualification. If the disqualification is reversed through
administrative or judicial review, the Secretary shall not be
liable for the value of any sales lost during the
disqualification period.'.
SEC. 846. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.
(a) FORFEITURE OF ITEMS EXCHANGED IN FOOD STAMP TRAFFICKING- The
first sentence of section 15(g) of the Food Stamp Act of 1977 (7
U.S.C. 2024(g)) is amended by striking `or intended to be furnished'.
(b) CRIMINAL FORFEITURE- Section 15 of the Food Stamp Act of 1977
(7 U.S.C. 2024) is amended by adding at the end the following:
`(h) CRIMINAL FORFEITURE-
`(1) IN GENERAL- In imposing a sentence on a person convicted
of an offense in violation of subsection (b) or (c), a court
shall order, in addition to any other sentence imposed under
this section, that the person forfeit to the United States all
property described in paragraph (2).
`(2) PROPERTY SUBJECT TO FORFEITURE- All property, real and
personal, used in a transaction or attempted transaction, to
commit, or to facilitate the commission of, a violation (other
than a misdemeanor) of subsection (b) or (c), or proceeds
traceable to a violation of subsection (b) or (c), shall be
subject to forfeiture to the United States under paragraph (1).
`(3) INTEREST OF OWNER- No interest in property shall be
forfeited under this subsection as the result of any act or
omission established by the owner of the interest to have been
committed or omitted without the knowledge or consent of the
owner.
`(4) PROCEEDS- The proceeds from any sale of forfeited
property and any monies forfeited under this subsection shall
be used--
`(A) first, to reimburse the Department of Justice for
the costs incurred by the Department to initiate and
complete the forfeiture proceeding;
`(B) second, to reimburse the Department of Agriculture
Office of Inspector General for any costs the Office
incurred in the law enforcement effort resulting in the
forfeiture;
`(C) third, to reimburse any Federal or State law
enforcement agency for any costs incurred in the law
enforcement effort resulting in the forfeiture; and
`(D) fourth, by the Secretary to carry out the approval,
reauthorization, and compliance investigations of retail
stores and wholesale food concerns under section 9.'.
SEC. 847. LIMITATION ON FEDERAL MATCH.
Section 16(a)(4) of the Food Stamp Act of 1977 (7 U.S.C.
2025(a)(4)) is amended by inserting after the comma at the end the
following: `but not including recruitment activities,'.
SEC. 848. STANDARDS FOR ADMINISTRATION.
(a) IN GENERAL- Section 16 of the Food Stamp Act of 1977 (7
U.S.C. 2025) is amended by striking subsection (b).
(b) CONFORMING AMENDMENTS-
(1) The first sentence of section 11(g) of the Food Stamp Act
of 1977 (7 U.S.C. 2020(g)) is amended by striking `the
Secretary's standards for the efficient and effective
administration of the program established under section
16(b)(1) or'.
(2) Section 16(c)(1)(B) of the Food Stamp Act of 1977 (7
U.S.C. 2025(c)(1)(B)) is amended by striking `pursuant to
subsection (b)'.
SEC. 849. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025), as
amended by section 848(a), is amended by inserting after subsection
(a) the following:
`(b) WORK SUPPLEMENTATION OR SUPPORT PROGRAM-
`(1) DEFINITION OF WORK SUPPLEMENTATION OR SUPPORT PROGRAM-
In this subsection, the term `work supplementation or support
program' means a program under which, as determined by the
Secretary, public assistance (including any benefits provided
under a program established by the State and the food stamp
program) is provided to an employer to be used for hiring and
employing a public assistance recipient who was not employed by
the employer at the time the public assistance recipient
entered the program.
`(2) PROGRAM- A State agency may elect to use an amount equal
to the allotment that would otherwise be issued to a household
under the food stamp program, but for the operation of this
subsection, for the purpose of subsidizing or supporting a job
under a work supplementation or support program established by
the State.
`(3) PROCEDURE- If a State agency makes an election under
paragraph (2) and identifies each household that participates
in the food stamp program that contains an individual who is
participating in the work supplementation or support program--
`(A) the Secretary shall pay to the State agency an
amount equal to the value of the allotment that the
household would be eligible to receive but for the
operation of this subsection;
`(B) the State agency shall expend the amount received
under subparagraph (A) in accordance with the work
supplementation or support program in lieu of providing the
allotment that the household would receive but for the
operation of this subsection;
`(C) for purposes of--
`(i) sections 5 and 8(a), the amount received under
this subsection shall be excluded from household income
and resources; and
`(ii) section 8(b), the amount received under this
subsection shall be considered to be the value of an
allotment provided to the household; and
`(D) the household shall not receive an allotment from
the State agency for the period during which the member
continues to participate in the work supplementation or
support program.
`(4) OTHER WORK REQUIREMENTS- No individual shall be excused,
by reason of the fact that a State has a work supplementation
or support program, from any work requirement under section
6(d), except during the periods in which the individual is
employed under the work supplementation or support program.
`(5) LENGTH OF PARTICIPATION- A State agency shall provide a
description of how the public assistance recipients in the
program shall, within a specific period of time, be moved from
supplemented or supported employment to employment that is not
supplemented or supported.
`(6) DISPLACEMENT- A work supplementation or support program
shall not displace the employment of individuals who are not
supplemented or supported.'.
SEC. 850. WAIVER AUTHORITY.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)) is amended--
(1) by redesignating subparagraph (B) as subparagraph (C); and
(2) in subparagraph (A)--
(A) in the first sentence, by striking `benefits to
eligible households, including' and inserting the
following: `benefits to eligible households, and may waive
any requirement of this Act to the extent necessary for the
project to be conducted.
`(B) PROJECT REQUIREMENTS-
`(i) PROGRAM GOAL- The Secretary may not conduct a
project under subparagraph (A) unless--
`(I) the project is consistent with the goal of the food stamp
program of providing food assistance to raise levels of nutrition
among low-income individuals; 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;
`(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'.
SEC. 851. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)), as amended by section 850, is amended by adding at the
end the following:
`(D) RESPONSE TO WAIVERS-
`(i) RESPONSE- Not later than 60 days after the date
of receiving a request for a waiver under subparagraph
(A), the Secretary shall provide a response that--
`(I) approves the waiver request;
`(II) denies the waiver request and describes any modification
needed for approval of the waiver request;
`(III) denies the waiver request and describes the grounds for
the denial; or
`(IV) requests clarification of the waiver request.
`(ii) FAILURE TO RESPOND- If the Secretary does not
provide a response in accordance with clause (i), the
waiver shall be considered approved, unless the
approval is specifically prohibited by this Act.
`(iii) NOTICE OF DENIAL- On denial of a waiver
request under clause (i)(III), the Secretary shall
provide a copy of the waiver request and a description
of the reasons for the denial to the Committee on
Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of
the Senate.'.
SEC. 852. EMPLOYMENT INITIATIVES PROGRAM.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is
amended by striking subsection (d) and inserting the following:
`(d) EMPLOYMENT INITIATIVES PROGRAM-
`(1) ELECTION TO PARTICIPATE-
`(A) IN GENERAL- Subject to the other provisions of this
subsection, a State may elect to carry out an employment
initiatives program under this subsection.
`(B) REQUIREMENT- A State shall be eligible to carry out
an employment initiatives program under this subsection
only if not less than 50 percent of the households in the
State that received food stamp benefits during the summer
of 1993 also received benefits under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) during the summer of 1993.
`(2) PROCEDURE-
`(A) IN GENERAL- A State that has elected to carry out an
employment initiatives program under paragraph (1) may use
amounts equal to the food stamp allotments that would
otherwise be issued to a household under the food stamp
program, but for the operation of this subsection, to
provide cash benefits in lieu of the food stamp allotments
to the household if the household is eligible under
paragraph (3).
`(B) PAYMENT- The Secretary shall pay to each State that
has elected to carry out an employment initiatives program
under paragraph (1) an amount equal to the value of the
allotment that each household participating in the program
in the State would be eligible to receive under this Act
but for the operation of this subsection.
`(C) OTHER PROVISIONS- For purposes of the food stamp
program (other than this subsection)--
`(i) cash assistance under this subsection shall be
considered to be an allotment; and
`(ii) each household receiving cash benefits under
this subsection shall not receive any other food stamp
benefit during the period for which the cash assistance
is provided.
`(D) ADDITIONAL PAYMENTS- Each State that has elected to
carry out an employment initiatives program under paragraph
(1) shall--
`(i) increase the cash benefits provided to each
household participating in the program in the State
under this subsection to compensate for any State or
local sales tax that may be collected on purchases of
food by the household, unless the Secretary determines
on the basis of information provided by the State that
the increase is unnecessary on the basis of the limited
nature of the items subject to the State or local sales
tax; and
`(ii) pay the cost of any increase in cash benefits
required by clause (i).
`(3) ELIGIBILITY- A household shall be eligible to receive
cash benefits under paragraph (2) if an adult member of the
household--
`(A) has worked in unsubsidized employment for not less
than the preceding 90 days;
`(B) has earned not less than $350 per month from the
employment referred to in subparagraph (A) for not less
than the preceding 90 days;
`(C)(i) is receiving benefits under a State program
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.); or
`(ii) was receiving benefits under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) at the time the member first received
cash benefits under this subsection and is no longer
eligible for the State program because of earned income;
`(D) is continuing to earn not less than $350 per month
from the employment referred to in subparagraph (A); and
`(E) elects to receive cash benefits in lieu of food
stamp benefits under this subsection.
`(4) EVALUATION- A State that operates a program under this
subsection for 2 years shall provide to the Secretary a written
evaluation of the impact of cash assistance under this
subsection. The State agency, with the concurrence of the
Secretary, shall determine the content of the evaluation.'.
SEC. 853. REAUTHORIZATION.
The first sentence of section 18(a)(1) of the Food Stamp Act of
1977 (7 U.S.C. 2027(a)(1)) is amended by striking `1991 through
1997' and inserting `1996 through 2002'.
SEC. 854. SIMPLIFIED FOOD STAMP PROGRAM.
(a) IN GENERAL- The Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.) is amended by adding at the end the following:
`SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM.
`(a) DEFINITION OF FEDERAL COSTS- In this section, the term
`Federal costs' does not include any Federal costs incurred under
section 17.
`(b) ELECTION- Subject to subsection (d), a State may elect to
carry out a Simplified Food Stamp Program (referred to in this
section as a `Program'), statewide or in a political subdivision of
the State, in accordance with this section.
`(c) OPERATION OF PROGRAM- If a State elects to carry out a
Program, within the State or a political subdivision of the State--
`(1) a household in which no members receive assistance under
a State program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) may not participate in the
Program;
`(2) a household in which all members receive assistance
under a State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) shall automatically
be eligible to participate in the Program;
`(3) if approved by the Secretary, a household in which 1 or
more members but not all members receive assistance under a
State program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) may be eligible to
participate in the Program; and
`(4) subject to subsection (f), benefits under the Program
shall be determined under rules and procedures established by
the State under--
`(A) a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.);
`(B) the food stamp program; or
`(C) a combination of a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) and the food stamp program.
`(d) APPROVAL OF PROGRAM-
`(1) STATE PLAN- A State agency may not operate a Program
unless the Secretary approves a State plan for the operation of
the Program under paragraph (2).
`(2) APPROVAL OF PLAN- The Secretary shall approve any State
plan to carry out a Program if the Secretary determines that
the plan--
`(A) complies with this section; and
`(B) contains sufficient documentation that the plan will
not increase Federal costs for any fiscal year.
`(e) INCREASED FEDERAL COSTS-
`(1) DETERMINATION-
`(A) IN GENERAL- The Secretary shall determine whether a
Program being carried out by a State agency is increasing
Federal costs under this Act.
`(B) NO EXCLUDED HOUSEHOLDS- In making a determination
under subparagraph (A), the Secretary shall not require the
State agency to collect or report any information on
households not included in the Program.
`(C) ALTERNATIVE ACCOUNTING PERIODS- The Secretary may
approve the request of a State agency to apply alternative
accounting periods to determine if Federal costs do not
exceed the Federal costs had the State agency not elected
to carry out the Program.
`(2) NOTIFICATION- If the Secretary determines that the
Program has increased Federal costs under this Act for any
fiscal year or any portion of any fiscal year, the Secretary
shall notify the State not later than 30 days after the
Secretary makes the determination under paragraph (1).
`(3) ENFORCEMENT-
`(A) CORRECTIVE ACTION- Not later than 90 days after the
date of a notification under paragraph (2), the State shall
submit a plan for approval by the Secretary for prompt
corrective action that is designed to prevent the Program
from increasing Federal costs under this Act.
`(B) TERMINATION- If the State does not submit a plan
under subparagraph (A) or carry out a plan approved by the
Secretary, the Secretary shall terminate the approval of
the State agency operating the Program and the State agency
shall be ineligible to operate a future Program.
`(f) RULES AND PROCEDURES-
`(1) IN GENERAL- In operating a Program, a State or political
subdivision of a State may follow the rules and procedures
established by the State or political subdivision under a State
program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) or under the food stamp program.
`(2) STANDARDIZED DEDUCTIONS- In operating a Program, a State
or political subdivision of a State may standardize the
deductions provided under section 5(e). In developing the
standardized deduction, the State shall consider the work
expenses, dependent care costs, and shelter costs of
participating households.
`(3) REQUIREMENTS- In operating a Program, a State or
political subdivision shall comply with the requirements of--
`(A) subsections (a) through (g) of section 7;
`(B) section 8(a) (except that the income of a household
may be determined under a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et
seq.));
`(C) subsection (b) and (d) of section 8;
`(D) subsections (a), (c), (d), and (n) of section 11;
`(E) paragraphs (8), (12), (16), (18), (20), (24), and
(25) of section 11(e);
`(F) section 11(e)(10) (or a comparable requirement
established by the State under a State program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.)); and
`(G) section 16.
`(4) LIMITATION ON ELIGIBILITY- Notwithstanding any other
provision of this section, a household may not receive benefits
under this section as a result of the eligibility of the
household under a State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.), unless the
Secretary determines that any household with income above 130
percent of the poverty guidelines is not eligible for the
program.'.
(b) STATE PLAN PROVISIONS- Section 11(e) of the Food Stamp Act of
1977 (7 U.S.C. 2020(e)), as amended by sections 819(b) and 835, is
amended by adding at the end the following:
`(25) if a State elects to carry out a Simplified Food Stamp
Program under section 26, the plans of the State agency for
operating the program, including--
`(A) the rules and procedures to be followed by the State
agency to determine food stamp benefits;
`(B) how the State agency will address the needs of
households that experience high shelter costs in relation
to the incomes of the households; and
`(C) a description of the method by which the State
agency will carry out a quality control system under
section 16(c).'.
(c) CONFORMING AMENDMENTS-
(1) Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017),
as amended by section 830, is amended--
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as subsection (e).
(2) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026)
is amended--
(A) by striking subsection (i); and
(B) by redesignating subsections (j) through (l) as
subsections (i) through (k), respectively.
SEC. 855. STUDY OF THE USE OF FOOD STAMPS TO PURCHASE VITAMINS AND
MINERALS.
(a) IN GENERAL- The Secretary of Agriculture, in consultation
with the National Academy of Sciences and the Center for Disease
Control and Prevention, shall conduct a study on the use of food
stamps provided under the Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.) to purchase vitamins and minerals.
(b) ANALYSIS- The study shall include--
(1) an analysis of scientific findings on the efficacy of and
need for vitamins and minerals, including--
(A) the adequacy of vitamin and mineral intakes in
low-income populations, as shown by research and surveys
conducted prior to the study; and
(B) the potential value of nutritional supplements in
filling nutrient gaps that may exist in the United States
population as a whole or in vulnerable subgroups in the
population;
(2) the impact of nutritional improvements (including vitamin
or mineral supplementation) on the health status and health
care costs of women of childbearing age, pregnant or lactating
women, and the elderly;
(3) the cost of commercially available vitamin and mineral
supplements;
(4) the purchasing habits of low-income populations with
regard to vitamins and minerals;
(5) the impact of using food stamps to purchase vitamins and
minerals on the food purchases of low-income house-holds; and
(6) the economic impact on the production of agricultural
commodities of using food stamps to purchase vitamins and
minerals.
(c) REPORT- Not later than December 15, 1998, the Secretary shall
report the results of the study to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
SEC. 856. DEFICIT REDUCTION.
It is the sense of the Committee on Agriculture of the House of
Representatives that reductions in outlays resulting from this
title shall not be taken into account for purposes of section 252
of the Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 902).
SUBTITLE B--COMMODITY DISTRIBUTION PROGRAMS
SEC. 871. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) DEFINITIONS- Section 201A of the Emergency Food Assistance
Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended to
read as follows:
`SEC. 201A. DEFINITIONS.
`In this Act:
`(1) ADDITIONAL COMMODITIES- The term `additional
commodities' means commodities made available under section 214
in addition to the commodities made available under sections
202 and 203D.
`(2) AVERAGE MONTHLY NUMBER OF UNEMPLOYED PERSONS- The term
`average monthly number of unemployed persons' means the
average monthly number of unemployed persons in each State
during the most recent fiscal year for which information
concerning the number of unemployed persons is available, as
determined by the Bureau of Labor Statistics of the Department
of Labor.
`(3) ELIGIBLE RECIPIENT AGENCY- The term `eligible recipient
agency' means a public or nonprofit 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 the
activities and projects of a charitable institution, a food
bank, a food pantry, a hunger relief center, a soup kitchen, or
a similar public or private nonprofit eligible recipient
agency) providing nutrition assistance to relieve situations of
emergency and distress through the provision of food to needy
persons, including low-income and unemployed persons.
`(5) FOOD BANK- The term `food bank' means a public or
charitable institution that maintains an established operation
involving the provision of food or edible commodities, or the
products of food or edible commodities, to food pantries, soup
kitchens, hunger relief centers, or other food or feeding
centers that, as an integral part of their normal activities,
provide meals or food to feed needy persons on a regular basis.
`(6) FOOD PANTRY- The term `food pantry' means a public or
private nonprofit organization that distributes food to
low-income and unemployed households, including food from
sources other than the Department of Agriculture, to relieve
situations of emergency and distress.
`(7) POVERTY LINE- The term `poverty line' has the meaning
provided in section 673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2)).
`(8) SOUP KITCHEN- The term `soup kitchen' means a public or
charitable institution that, as an integral part of the normal
activities of the institution, maintains an established feeding
operation to provide food to needy homeless persons on a
regular basis.
`(9) TOTAL VALUE OF ADDITIONAL COMMODITIES- The term `total
value of additional commodities' means the actual cost of all
additional commodities that are paid by the Secretary
(including the distribution and processing costs incurred by
the Secretary).
`(10) VALUE OF ADDITIONAL COMMODITIES ALLOCATED TO EACH
STATE- The term `value of additional commodities allocated to
each State' means the actual cost of additional commodities
allocated to each State that are paid by the Secretary
(including the distribution and processing costs incurred by
the Secretary).'.
(b) STATE PLAN- Section 202A of the Emergency Food Assistance Act
of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended to read as
follows:
`SEC. 202A. STATE PLAN.
`(a) IN GENERAL- To receive commodities under this Act, a State
shall submit a plan of operation and administration every 4 years
to the Secretary for approval. The plan may be amended at any time,
with the approval of the Secretary.
`(b) REQUIREMENTS- Each plan shall--
`(1) designate the State agency responsible for distributing
the commodities received under this Act;
`(2) set forth a plan of operation and administration to
expeditiously distribute commodities under this Act;
`(3) set forth the standards of eligibility for recipient
agencies; and
`(4) set forth the standards of eligibility for individual or
household recipients of commodities, which shall require--
`(A) individuals or households to be comprised of needy
persons; and
`(B) individual or household members to be residing in
the geographic location served by the distributing agency
at the time of applying for assistance.
`(c) STATE ADVISORY BOARD- The Secretary shall encourage each
State receiving commodities under this Act to establish a State
advisory board consisting of representatives of all entities in the
State, both public and private, interested in the distribution of
commodities received under this Act.'.
(c) AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATIVE FUNDS-
Section 204(a)(1) of the Emergency Food Assistance Act of 1983
(Public Law 98-8; 7 U.S.C. 612c note) is amended--
(1) in the first sentence, by striking `for State and local'
and all that follows through `under this title' and inserting
`to pay for the direct and indirect administrative costs of the
States related to the processing, transporting, and
distributing to eligible recipient agencies of commodities
provided by the Secretary under this Act and commodities
secured from other sources'; and
(2) by striking the fourth sentence.
(d) DELIVERY OF COMMODITIES- Section 214 of the Emergency Food
Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is
amended--
(1) by striking subsections (a) through (e) and (j);
(2) by redesignating subsections (f) through (i) as
subsections (a) through (d), respectively;
(3) in subsection (b), as redesignated by paragraph (2)--
(A) in the first sentence, by striking `subsection (f) or
subsection (j) if applicable,' and inserting `subsection
(a),'; and
(B) in the second sentence, by striking `subsection (f)'
and inserting `subsection (a)';
(4) by striking subsection (c), as redesignated by paragraph
(2), and inserting the following:
`(c) ADMINISTRATION-
`(1) IN GENERAL- Commodities made available for each fiscal
year under this section shall be delivered at reasonable
intervals to States based on the grants calculated under
subsection (a), or reallocated under subsection (b), before
December 31 of the following fiscal year.
`(2) ENTITLEMENT- Each State shall be entitled to receive the
value of additional commodities determined under subsection
(a).'; and
(5) in subsection (d), as redesignated by paragraph (2), by
striking `or reduce' and all that follows through `each fiscal
year'.
(e) TECHNICAL AMENDMENTS- The Emergency Food Assistance Act of
1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended--
(1) in the first sentence of section 203B(a), by striking
`203 and 203A of this Act' and inserting `203A';
(2) in section 204(a), by striking `title' each place it
appears and inserting `Act';
(3) in the first sentence of section 210(e), by striking
`(except as otherwise provided for in section 214(j))'; and
(4) by striking section 212.
(f) REPORT ON EFAP- Section 1571 of the Food Security Act of 1985
(Public Law 99-198; 7 U.S.C. 612c note) is repealed.
(g) AVAILABILITY OF COMMODITIES UNDER THE FOOD STAMP PROGRAM- The
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended by
section 854(a), is amended by adding at the end the following:
`SEC. 27. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD
ASSISTANCE PROGRAM.
`(a) PURCHASE OF COMMODITIES- From amounts made available to
carry out this Act, for each of fiscal years 1997 through 2002, the
Secretary shall purchase $100,000,000 of a variety of nutritious
and useful commodities of the types that the Secretary has the
authority to acquire through the Commodity Credit Corporation or
under section 32 of the Act entitled `An Act to amend the
Agricultural Adjustment Act, and for other purposes', approved
August 24, 1935 (7 U.S.C. 612c), and distribute the commodities to
States for distribution in accordance with section 214 of the
Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C.
612c note).
`(b) BASIS FOR COMMODITY PURCHASES- In purchasing commodities
under subsection (a), the Secretary shall, to the extent
practicable and appropriate, make purchases based on--
`(1) agricultural market conditions;
`(2) preferences and needs of States and distributing
agencies; and
`(3) preferences of recipients.'.
(h) EFFECTIVE DATE- The amendments made by subsection (d) shall
become effective on October 1, 1996.
SEC. 872. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food Bank Act of 1987
(Public Law 100-232; 7 U.S.C. 612c note) is repealed.
SEC. 873. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law 100-435; 7 U.S.C.
612c note) is amended--
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
SEC. 874. REPORT ON ENTITLEMENT COMMODITY PROCESSING.
Section 1773 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101-624; 7 U.S.C. 612c note) is amended by
striking subsection (f).
SUBTITLE C--ELECTRONIC BENEFIT TRANSFER SYSTEMS
SEC. 891. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b)
is amended--
(1) by striking `(d) In the event that' and inserting `(d)
APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN FINANCIAL
INSTITUTIONS-
`(1) IN GENERAL- If'; and
(2) by adding at the end the following:
`(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT TRANSFER
SYSTEMS-
`(A) DEFINITION OF ELECTRONIC BENEFIT TRANSFER SYSTEM- In
this paragraph, the term `electronic benefit transfer
system'--
`(i) means a system under which a government agency
distributes needs-tested benefits by establishing
accounts that may be accessed by recipients
electronically, such as through automated teller
machines or point-of-sale terminals; and
`(ii) does not include employment-related payments,
including salaries and pension, retirement, or
unemployment benefits established by a Federal, State,
or local government agency.
`(B) EXEMPTION GENERALLY- The disclosures, protections,
responsibilities, and remedies established under this
title, and any regulation prescribed or order issued by the
Board in accordance with this title, shall not apply to any
electronic benefit transfer system established under State
or local law or administered by a State or local government.
`(C) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT'S
ACCOUNT- Subparagraph (B) shall not apply with respect to
any electronic funds transfer under an electronic benefit
transfer system for a deposit directly into a consumer
account held by the recipient of the benefit.
`(D) RULE OF CONSTRUCTION- No provision of this paragraph--
`(i) affects or alters the protections otherwise
applicable with respect to benefits established by any
other provision Federal, State, or local law; or
`(ii) otherwise supersedes the application of any
State or local law.'.
TITLE IX--MISCELLANEOUS
SEC. 901. APPROPRIATION BY STATE LEGISLATURES.
(a) IN GENERAL- Any funds received by a State under the
provisions of law specified in subsection (b) shall be subject to
appropriation by the State legislature, consistent with the terms
and conditions required under such provisions of law.
(b) PROVISIONS OF LAW- The provisions of law specified in this
subsection are the following:
(1) Part A of title IV of the Social Security Act (relating
to block grants for temporary assistance for needy families).
(2) The Child Care and Development Block Grant Act of 1990
(relating to block grants for child care).
SEC. 902. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED SUBSTANCES.
Notwithstanding any other provision of law, States shall not be
prohibited by the Federal Government from testing welfare
recipients for use of controlled substances nor from sanctioning
welfare recipients who test positive for use of controlled
substances.
SEC. 903. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO
FUGITIVE FELONS AND PROBATION AND PAROLE VIOLATORS.
(a) ELIGIBILITY FOR ASSISTANCE- The United States Housing Act of
1937 (42 U.S.C. 1437 et seq.) is amended--
(1) in section 6(l)--
(A) in paragraph (5), by striking `and' at the end;
(B) in paragraph (6), by striking the period at the end
and inserting `; and'; and
(C) by inserting immediately after paragraph (6) the
following new paragraph:
`(7) provide that it shall be cause for immediate termination
of the tenancy of a public housing tenant if such tenant--
`(A) is fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the place
from which the individual flees, for a crime, or attempt to
commit a crime, which is a felony under the laws of the
place from which the individual flees, or which, in the
case of the State of New Jersey, is a high misdemeanor
under the laws of such State; or
`(2) is violating a condition of probation or parole imposed
under Federal or State law.'; and
(2) in section 8(d)(1)(B)--
(A) in clause (iii), by striking `and' at the end;
(B) in clause (iv), by striking the period at the end and
inserting `; and'; and
(C) by adding after clause (iv) the following new clause:
`(v) it shall be cause for termination of the tenancy
of a tenant if such tenant--
`(I) is fleeing to avoid prosecution, or custody or confinement
after conviction, under the laws of the place from which the
individual flees, for a crime, or attempt to commit a crime, which
is a felony under the laws of the place from which the individual
flees, or which, in the case of the State of New Jersey, is a high
misdemeanor under the laws of such State; or
`(II) is violating a condition of probation or parole imposed
under Federal or State law;'.
(b) PROVISION OF INFORMATION TO LAW ENFORCEMENT AGENCIES- Title I
of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.)
is amended by adding at the end the following:
`SEC. 27. EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT AGENCIES.
`Notwithstanding any other provision of law, each public housing
agency that enters into a contract for assistance under section 6
or 8 of this Act with the Secretary shall furnish any Federal,
State, or local law enforcement officer, upon the request of the
officer, with the current address, Social Security number, and
photograph (if applicable) of any recipient of assistance under
this Act, if the officer--
`(1) furnishes the public housing agency with the name of the
recipient; and
`(2) notifies the agency that--
`(A) such recipient--
`(i) is fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the individual flees, for a crime, or
attempt to commit a crime, which is a felony under the
laws of the place from which the individual flees, or
which, in the case of the State of New Jersey, is a
high misdemeanor under the laws of such State; or
`(ii) is violating a condition of probation or parole
imposed under Federal or State law; or
`(iii) has information that is necessary for the
officer to conduct the officer's official duties;
`(B) the location or apprehension of the recipient is
within such officer's official duties; and
`(C) the request is made in the proper exercise of the
officer's official duties.'.
SEC. 904. SENSE OF THE SENATE REGARDING THE INABILITY OF THE
NONCUSTODIAL PARENT TO PAY CHILD SUPPORT.
It is the sense of the Senate that--
(a) States should diligently continue their efforts to
enforce child support payments by the non-custodial parent to
the custodial parent, regardless of the employment status or
location of the non-custodial parent; and
(b) States are encouraged to pursue pilot programs in which
the parents of a non-adult, non-custodial parent who refuses to
or is unable to pay child support must--
(1) pay or contribute to the child support owed by the
non-custodial parent; or
(2) otherwise fulfill all financial obligations and meet
all conditions imposed on the non-custodial parent, such as
participation in a work program or other related activity.
SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEENAGE PREGNANCIES.
(a) IN GENERAL- Not later than January 1, 1997, the Secretary of
Health and Human Services shall establish and implement a strategy
for--
(1) preventing out-of-wedlock teenage pregnancies, and
(2) assuring that at least 25 percent of the communities in
the United States have teenage pregnancy prevention programs in
place.
(b) REPORT- Not later than June 30, 1998, and annually
thereafter, the Secretary shall report to the Congress with respect
to the progress that has been made in meeting the goals described
in paragraphs (1) and (2) of subsection (a).
SEC. 906. SENSE OF THE SENATE REGARDING ENFORCEMENT OF STATUTORY
RAPE LAWS.
(a) SENSE OF THE SENATE- It is the sense of the Senate that
States and local jurisdictions should aggressively enforce
statutory rape laws.
(b) JUSTICE DEPARTMENT PROGRAM ON STATUTORY RAPE- Not later than
January 1, 1997, the Attorney General shall establish and implement
a program that--
(1) studies the linkage between statutory rape and teenage
pregnancy, particularly by predatory older men committing
repeat offenses; and
(2) educates State and local criminal law enforcement
officials on the prevention and prosecution of statutory rape,
focusing in particular on the commission of statutory rape by
predatory older men committing repeat offenses, and any links
to teenage pregnancy.
(c) VIOLENCE AGAINST WOMEN INITIATIVE- The Attorney General shall
ensure that the Department of Justice's Violence Against Women
initiative addresses the issue of statutory rape, particularly the
commission of statutory rape by predatory older men committing
repeat offenses.
SEC. 907. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b)
is amended--
(1) by striking `(d) In the event' and inserting `(d)
APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN FINANCIAL
INSTITUTIONS-
`(1) IN GENERAL- In the event'; and
(2) by adding at the end the following new paragraph:
`(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT TRANSFER
PROGRAMS-
`(A) EXEMPTION GENERALLY- The disclosures, protections,
responsibilities, and remedies established under this
title, and any regulation prescribed or order issued by the
Board in accordance with this title, shall not apply to any
electronic benefit transfer program established under State
or local law or administered by a State or local government.
`(B) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT'S
ACCOUNT- Subparagraph (A) shall not apply with respect to
any electronic funds transfer under an electronic benefit
transfer program for deposits directly into a consumer
account held by the recipient of the benefit.
`(C) RULE OF CONSTRUCTION- No provision of this paragraph
may be construed as--
`(i) affecting or altering the protections otherwise
applicable with respect to benefits established by
Federal, State, or local law; or
`(ii) otherwise superseding the application of any
State or local law.
`(D) ELECTRONIC BENEFIT TRANSFER PROGRAM DEFINED- For
purposes of this paragraph, the term `electronic benefit
transfer program'--
`(i) means a program under which a government agency
distributes needs-tested benefits by establishing
accounts to be accessed by recipients electronically,
such as through automated teller machines, or
point-of-sale terminals; and
`(ii) does not include employment-related payments,
including salaries and pension, retirement, or
unemployment benefits established by Federal, State, or
local governments.'.
SEC. 908. REDUCTION OF BLOCK GRANTS TO STATES FOR SOCIAL SERVICES;
USE OF VOUCHERS.
(a) REDUCTION OF GRANTS- Section 2003(c) of the Social Security
Act (42 U.S.C. 1397b(c)) is amended--
(1) by striking `and' at the end of paragraph (4); and
(2) by striking paragraph (5) and inserting the following:
`(5) $2,800,000,000 for each of the fiscal years 1990 through
1995;
`(6) $2,381,000,000 for the fiscal year 1996;
`(7) $2,380,000,000 for each of the fiscal years 1997 through
2002; and
`(8) $2,800,000,000 for the fiscal year 2003 and each
succeeding fiscal year.'.
(b) AUTHORITY TO USE VOUCHERS- Section 2002 of such Act (42
U.S.C. 1937a) is amended by adding at the end the following:
`(f) A State may use funds provided under this title to provide
vouchers, for services directed at the goals set forth in section
2001, to families, including--
`(1) families who have become ineligible for assistance under
a State program funded under part A of title IV by reason of a
durational limit on the provision of such assistance; and
`(2) families denied cash assistance under the State program
funded under part A of title IV for a child who is born to a
member of the family who is--
`(A) a recipient of assistance under the program; or
`(B) a person who received such assistance at any time
during the 10-month period ending with the birth of the
child.'.
SEC. 909. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT ON BASIS
OF DISQUALIFIED INCOME.
(a) REDUCTION IN DISQUALIFIED INCOME THRESHOLD-
(1) IN GENERAL- Paragraph (1) of section 32(i) of the
Internal Revenue Code of 1986 (relating to denial of credit for
individuals having excessive investment income) is amended by
striking `$2,350' and inserting `$2,200'.
(2) ADJUSTMENT FOR INFLATION- Subsection (j) of section 32 of
such Code is amended to read as follows:
`(j) INFLATION ADJUSTMENTS-
`(1) IN GENERAL- In the case of any taxable year beginning
after 1996, each of the dollar amounts in subsections (b)(2)
and (i)(1) shall be increased by an amount equal to--
`(A) such dollar amount, multiplied by
`(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year
1995' for `calendar year 1992' in subparagraph (B) thereof.
`(2) ROUNDING-
`(A) IN GENERAL- If any dollar amount in subsection
(b)(2), after being increased under paragraph (1), is not a
multiple of $10, such dollar amount shall be rounded to the
nearest multiple of $10.
`(B) DISQUALIFIED INCOME THRESHOLD AMOUNT- If the dollar
amount in subsection (i)(1), after being increased under
paragraph (1), is not a multiple of $50, such amount shall
be rounded to the next lowest multiple of $50.'.
(3) CONFORMING AMENDMENT- Paragraph (2) of section 32(b) of
such Code is amended to read as follows:
`(2) AMOUNTS- The earned income amount and the phaseout
amount shall be determined as follows:
-------------------------------------------------------------------
[ Headers for tabular data... ]
1) In the case of an eligible individual with:
2) The earned income amount is:
3) The phaseout amount is:
-------------------------------------------------------------------
1) 1 qualifying child
2) $6,330
3) $11,610
1) 2 or more qualifying children
2) $8,890
3) $11,610
1) No qualifying children
2) $4,220
3) $ 5,280'.
-------------------------------------------------------------------
(b) DEFINITION OF DISQUALIFIED INCOME- Paragraph (2) of section
32(i) of such Code (defining disqualified income) is amended by
striking `and' at the end of subparagraph (B), by striking the
period at the end of subparagraph (C) and inserting a comma, and by
adding at the end the following new subparagraphs:
`(D) the capital gain net income (as defined in section
1222) of the taxpayer for such taxable year, and
`(E) the excess (if any) of--
`(i) the aggregate income from all passive activities
for the taxable year (determined without regard to any
amount included in earned income under subsection
(c)(2) or described in a preceding subparagraph), over
`(ii) the aggregate losses from all passive
activities for the taxable year (as so determined).
For purposes of subparagraph (E), the term `passive activity'
has the meaning given such term by section 469.'.
(c) EFFECTIVE DATES-
(1) IN GENERAL- Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 1995.
(2) ADVANCE PAYMENT INDIVIDUALS- In the case of any
individual who on or before June 26, 1996, has in effect an
earned income eligibility certificate for the individual's
taxable year beginning in 1996, the amendments made by this
section shall apply to taxable years beginning after December
31, 1996.
SEC. 910. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION FOR
EARNED INCOME CREDIT.
(a) IN GENERAL- Subsections (a)(2)(B), (c)(1)(C), and (f)(2)(B)
of section 32 of the Internal Revenue Code of 1986 are each amended
by striking `adjusted gross income' each place it appears and
inserting `modified adjusted gross income'.
(b) MODIFIED ADJUSTED GROSS INCOME DEFINED- Section 32(c) of such
Code (relating to definitions and special rules) is amended by
adding at the end the following new paragraph:
`(5) MODIFIED ADJUSTED GROSS INCOME-
`(A) IN GENERAL- The term `modified adjusted gross
income' means adjusted gross income determined without
regard to the amounts described in subparagraph (B).
`(B) CERTAIN AMOUNTS DISREGARDED- An amount is described
in this subparagraph if it is--
`(i) the amount of losses from sales or exchanges of
capital assets in excess of gains from such sales or
exchanges to the extent such amount does not exceed the
amount under section 1211(b)(1),
`(ii) the net loss from estates and trusts,
`(iii) the excess (if any) of amounts described in
subsection (i)(2)(C)(ii) over the amounts described in
subsection (i)(2)(C)(i) (relating to nonbusiness rents
and royalties), and
`(iv) 50 percent of the net loss from the carrying on
of trades or businesses, computed separately with
respect to--
`(I) trades or businesses (other than farming) conducted as sole
proprietorships,
`(II) trades or businesses of farming conducted as sole
proprietorships, and
`(III) other trades or businesses.
For purposes of clause (iv), there shall not be taken into
account items which are attributable to a trade or business
which consists of the performance of services by the
taxpayer as an employee.'.
(c) EFFECTIVE DATES-
(1) IN GENERAL- Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 1995.
(2) ADVANCE PAYMENT INDIVIDUALS- In the case of any
individual who on or before June 26, 1996, has in effect an
earned income eligibility certificate for the individual's
taxable year beginning in 1996, the amendments made by this
section shall apply to taxable years beginning after December
31, 1996.
SEC. 911. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC ASSISTANCE
PROGRAMS.
(a) IN GENERAL- If an individual's benefits under a Federal,
State, or local law relating to a means-tested welfare or a public
assistance program are reduced because of an act of fraud by the
individual under the law or program, the individual may not, for
the duration of the reduction, receive an increased benefit under
any other means-tested welfare or public assistance program for
which Federal funds are appropriated as a result of a decrease in
the income of the individual (determined under the applicable
program) attributable to such reduction.
(b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS FOR WHICH FEDERAL FUNDS
ARE APPROPRIATED- For purposes of subsection (a), the term
`means-tested welfare or public assistance program for which
Federal funds are appropriated' includes the food stamp program
under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any
program of public or assisted housing under title I of the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.), and any State
program funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.).
SEC. 912. ABSTINENCE EDUCATION.
Title V of the Social Security Act (42 U.S.C. 701 et seq.) is
amended by adding at the end the following section:
`SEPARATE PROGRAM FOR ABSTINENCE EDUCATION
`SEC. 510. (a) For the purpose described in subsection (b), the
Secretary shall, for fiscal year 1998 and each subsequent fiscal
year, allot to each State which has transmitted an application for
the fiscal year under section 505(a) an amount equal to the product
of--
`(1) the amount appropriated in subsection (d) for the fiscal
year; and
`(2) the percentage determined for the State under section
502(c)(1)(B)(ii).
`(b)(1) The purpose of an allotment under subsection (a) to a
State is to enable the State to provide abstinence education, and
at the option of the State, where appropriate, mentoring,
counseling, and adult supervision to promote abstinence from sexual
activity, with a focus on those groups which are most likely to
bear children out-of-wedlock.
`(2) For purposes of this section, the term `abstinence
education' means an educational or motivational program which--
`(A) has as its exclusive purpose, teaching the social,
psychological, and health gains to be realized by
abstaining from sexual activity;
`(B) teaches abstinence from sexual activity outside
marriage as the expected standard for all school age
children;
`(C) teaches that abstinence from sexual activity is the
only certain way to avoid out-of-wedlock pregnancy,
sexually transmitted diseases, and other associated health
problems;
`(D) teaches that a mutually faithful monogamous
relationship in context of marriage is the expected
standard of human sexual activity;
`(E) teaches that sexual activity outside of the context
of marriage is likely to have harmful psychological and
physical effects;
`(F) teaches that bearing children out-of-wedlock is
likely to have harmful consequences for the child, the
child's parents, and society;
`(G) teaches young people how to reject sexual advances
and how alcohol and drug use increases vulnerability to
sexual advances; and
`(H) teaches the importance of attaining self-sufficiency
before engaging in sexual activity.
`(c)(1) Sections 503, 507, and 508 apply to allotments under
subsection (a) to the same extent and in the same manner as such
sections apply to allotments under section 502(c).
`(2) Sections 505 and 506 apply to allotments under subsection
(a) to the extent determined by the Secretary to be appropriate.
`(d) For the purpose of allotments under subsection (a), there is
appropriated, out of any money in the Treasury not otherwise
appropriated, an additional $50,000,000 for each of the fiscal
years 1998 through 2002. The appropriation under the preceding
sentence for a fiscal year is made on October 1 of the fiscal year.'.
SEC. 913. CHANGE IN REFERENCE.
Effective January 1, 1997, the third sentence of section 1902(a)
and section 1908(e)(1) of the Social Security Act (42 U.S.C.
1396a(a), 1396g-1(e)(1)) are each amended by striking `The First
Church of Christ, Scientist, Boston, Massachusetts' and inserting
`The Commission for Accreditation of Christian Science Nursing
Organizations/Facilities, Inc.' each place it appears.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.