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“CONFERENCE REPORT ON H.R. 3734, PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996” mentioning the Federal Reserve System was published in the House of Representatives section on pages H8829-H8958 on July 30, 1996.
The publication is reproduced in full below:
CONFERENCE REPORT ON H.R. 3734, PERSONAL RESPONSIBILITY AND WORK
OPPORTUNITY RECONCILIATION ACT OF 1996
Mr. KASICH submitted the following conference report and statement on the bill (H.R. 3734) to provide for reconciliation pursuant to section 201(a)(1) of the concurrent resolution on the budget for fiscal year 1997:
Conference Report (H. Rept. 104-725)
The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 3734), to provide for reconciliation pursuant to section 201(a)(1) of the concurrent resolution on the budget for fiscal year 1997, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:
That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows:
In lieu of the matter proposed to be inserted by the Senate amendment, insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Personal Responsibility and Work Opportunity Reconciliation Act of 1996''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private organizations.
Sec. 105. Census data on grandparents as primary caregivers for their grandchildren.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and related provisions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant social security card required.
Sec. 112. Modifications to the job opportunities for certain low-income individuals program.
Sec. 113. Secretarial submission of legislative proposal for technical and conforming amendments.
Sec. 114. Assuring medicaid coverage for low-income families.
Sec. 115. Denial of assistance and benefits for certain drug-related convictions.
Sec. 116. Effective date; transition rule.
TITLE II--SUPPLEMENTAL SECURITY INCOME
Sec. 200. Reference to Social Security Act.
Subtitle A--Eligibility Restrictions
Sec. 201. Denial of SSI benefits for 10 years to individuals found to have fraudulently misrepresented residence in order to obtain benefits simultaneously in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation and parole violators.
Sec. 203. Treatment of prisoners.
Sec. 204. Effective date of application for benefits.
Subtitle B--Benefits for Disabled Children
Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized individuals whose medical costs are covered by private insurance.
Sec. 215. Regulations.
Subtitle C--Additional Enforcement Provision
Sec. 221. Installment payment of large past-due supplemental security income benefits.
Sec. 222. Regulations.
Subtitle D--Studies Regarding Supplemental Security Income Program
Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study by General Accounting Office.
TITLE III--CHILD SUPPORT
Sec. 300. Reference to Social Security Act.
Subtitle A--Eligibility for Services; Distribution of Payments
Sec. 301. State obligation to provide child support enforcement services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification of hearings.
Subtitle B--Locate and Case Tracking
Sec. 311. State case registry.
Sec. 312. Collection and disbursement of support payments.
Sec. 313. State directory of new hires.
Sec. 314. Amendments concerning income withholding.
Sec. 315. Locator information from interstate networks.
Sec. 316. Expansion of the Federal parent locator service.
Sec. 317. Collection and use of social security numbers for use in child support enforcement.
Subtitle C--Streamlining and Uniformity of Procedures
Sec. 321. Adoption of uniform State laws.
Sec. 322. Improvements to full faith and credit for child support orders.
Sec. 323. Administrative enforcement in interstate cases.
Sec. 324. Use of forms in interstate enforcement.
Sec. 325. State laws providing expedited procedures.
Subtitle D--Paternity Establishment
Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of part A assistance.
Subtitle E--Program Administration and Funding
Sec. 341. Performance-based incentives and penalties.
Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.
Subtitle F--Establishment and Modification of Support Orders
Sec. 351. Simplified process for review and adjustment of child support orders.
Sec. 352. Furnishing consumer reports for certain purposes relating to child support.
Sec. 353. Nonliability for financial institutions providing financial records to State child support enforcement agencies in child support cases.
Subtitle G--Enforcement of Support Orders
Sec. 361. Internal Revenue Service collection of arrearages.
Sec. 362. Authority to collect support from Federal employees.
Sec. 363. Enforcement of child support obligations of members of the
Armed Forces.
Sec. 364. Voiding of fraudulent transfers.
Sec. 365. Work requirement for persons owing past-due child support.
Sec. 366. Definition of support order.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Liens.
Sec. 369. State law authorizing suspension of licenses.
Sec. 370. Denial of passports for nonpayment of child support.
Sec. 371. International support enforcement.
Sec. 372. Financial institution data matches.
Sec. 373. Enforcement of orders against paternal or maternal grandparents in cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for the support of a child.
Sec. 375. Child support enforcement for Indian tribes.
Subtitle H--Medical Support
Sec. 381. Correction to ERISA definition of medical child support order.
Sec. 382. Enforcement of orders for health care coverage.
Subtitle I--Enhancing Responsibility and Opportunity for Non-
Residential Parents
Sec. 391. Grants to States for access and visitation programs.
Subtitle J--Effective Dates and Conforming Amendments
Sec. 395. Effective dates and conforming amendments.
TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
Sec. 400. Statements of national policy concerning welfare and immigration.
Subtitle A--Eligibility for Federal Benefits
Sec. 401. Aliens who are not qualified aliens ineligible for Federal public benefits. Sec. 402. Limited eligibility of qualified aliens for certain Federal programs.
Sec. 403. Five-year limited eligibility of qualified aliens for Federal means-tested public benefit.
Sec. 404. Notification and information reporting.
Subtitle B--Eligibility for State and Local Public Benefits Programs
Sec. 411. Aliens who are not qualified aliens or nonimmigrants ineligible for State and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for
State public benefits.
Subtitle C--Attribution of Income and Affidavits of Support
Sec. 421. Federal attribution of sponsor's income and resources to alien.
Sec. 422. Authority for States to provide for attribution of sponsors income and resources to the alien with respect to State programs.
Sec. 423. Requirements for sponsor's affidavit of support.
Subtitle D--General Provisions
Sec. 431. Definitions.
Sec. 432. Verification of eligibility for Federal public benefits.
Sec. 433. Statutory construction.
Sec. 434. Communication between State and local government agencies and the Immigration and Naturalization
Service.
Sec. 435. Qualifying quarters.
Subtitle E--Conforming Amendments Relating to Assisted Housing
Sec. 441. Conforming amendments relating to assisted housing.
Subtitle F--Earning Income Credit Denied to Unauthorized Employees
Sec. 451. Earned income credit denied to individuals not authorized to be employed in the United States.
TITLE V--CHILD PROTECTION
Sec. 501. Authority of States to make foster care maintenance payments on behalf of children in any private child care institution.
Sec. 502. Extension of enhanced match for implementation of statewide automated child welfare information systems.
Sec. 503. National random sample study of child welfare.
Sec. 504. Redesignation of section 1123.
Sec. 505. Kinship care.
TITLE VI--CHILD CARE
Sec. 601. Short title and references.
Sec. 602. Goals.
Sec. 603. Authorization of appropriations and entitlement authority.
Sec. 604. Lead agency.
Sec. 605. Application and plan.
Sec. 606. Limitation on State allotments.
Sec. 607. Activities to improve the quality of child care.
Sec. 608. Repeal of early childhood development and before- and after-
school care requirement.
Sec. 609. Administration and enforcement.
Sec. 610. Payments.
Sec. 611. Annual report and audits.
Sec. 612. Report by the Secretary.
Sec. 613. Allotments.
Sec. 614. Definitions.
Sec. 615. Effective date.
TITLE VII--CHILD NUTRITION PROGRAMS
Subtitle A--National School Lunch Act
Sec. 701. State disbursement to schools.
Sec. 702. Nutritional and other program requirements.
Sec. 703. Free and reduced price policy statement.
Sec. 704. Special assistance.
Sec. 705. Miscellaneous provisions and definitions.
Sec. 706. Summer food service program for children.
Sec. 707. Commodity distribution.
Sec. 708. Child and adult care food program.
Sec. 709. Pilot projects.
Sec. 710. Reduction of paperwork.
Sec. 711. Information on income eligibility.
Sec. 712. Nutrition guidance for child nutrition programs.
Subtitle B--Child Nutrition Act of 1966
Sec. 721. Special milk program.
Sec. 722. Free and reduced price policy statement.
Sec. 723. School breakfast program authorization.
Sec. 724. State administrative expenses.
Sec. 725. Regulations.
Sec. 726. Prohibitions.
Sec. 727. Miscellaneous provisions and definitions.
Sec. 728. Accounts and records.
Sec. 729. Special supplemental nutrition program for women, infants, and children.
Sec. 730. Cash grants for nutrition education.
Sec. 731. Nutrition education and training.
Subtitle C--Miscellaneous Provisions
Sec. 741. Coordination of school lunch, school breakfast, and summer food service programs.
Sec. 742. Requirements relating to provision of benefits based on citizenship, alienage, or immigration status under the
National School Lunch Act, the Child Nutrition Act of
1966, and certain other acts.
TITLE VIII--FOOD STAMPS AND COMMODITY DISTRIBUTION
Subtitle A--Food Stamp Program
Sec. 801. Definition of certification period.
Sec. 802. Definition of coupon.
Sec. 803. Treatment of children living at home.
Sec. 804. Adjustment of thrifty food plan.
Sec. 805. Definition of homeless individual.
Sec. 806. State option for eligibility standards.
Sec. 807. Earnings of students.
Sec. 808. Energy assistance.
Sec. 809. Deductions from income.
Sec. 810. Vehicle allowance.
Sec. 811. Vendor payments for transitional housing counted as income.
Sec. 812. Simplified calculation of income for the self-employed.
Sec. 813. Doubled penalties for violating food stamp program requirements.
Sec. 814. Disqualification of convicted individuals.
Sec. 815. Disqualification.
Sec. 816. Caretaker exemption.
Sec. 817. Employment and training.
Sec. 818. Food stamp eligibility.
Sec. 819. Comparable treatment for disqualification.
Sec. 820. Disqualification for receipt of multiple food stamp benefits.
Sec. 821. Disqualification of fleeing felons.
Sec. 822. Cooperation with child support agencies.
Sec. 823. Disqualification relating to child support arrears.
Sec. 824. Work requirement.
Sec. 825. Encouragement of electronic benefit transfer systems.
Sec. 826. Value of minimum allotment.
Sec. 827. Benefits on recertification.
Sec. 828. Optional combined allotment for expedited households.
Sec. 829. Failure to comply with other means-tested public assistance programs.
Sec. 830. Allotments for households residing in centers.
Sec. 831. Condition precedent for approval of retail food stores and wholesale food concerns.
Sec. 832. Authority to establish authorization periods.
Sec. 833. Information for verifying eligibility for authorization.
Sec. 834. Waiting period for stores that fail to meet authorization criteria.
Sec. 835. Operation of food stamp offices.
Sec. 836. State employee and training standards.
Sec. 837. Exchange of law enforcement information.
Sec. 838. Expedited coupon service.
Sec. 839. Withdrawing fair hearing requests.
Sec. 840. Income, eligibility, and immigration status verification systems.
Sec. 841. Investigations.
Sec. 842. Disqualification of retailers who intentionally submit falsified applications.
Sec. 843. Disqualification of retailers who are disqualified under the
WIC program.
Sec. 844. Collection of overissuances.
Sec. 845. Authority to suspend stores violating program requirements pending administrative and judicial review.
Sec. 846. Expanded criminal forfeiture for violations.
Sec. 847. Limitation on Federal match.
Sec. 848. Standards for administration.
Sec. 849. Work supplementation or support program.
Sec. 850. Waiver authority.
Sec. 851. Response to waivers.
Sec. 852. Employment initiatives program.
Sec. 853. Reauthorization.
Sec. 854. Simplified food stamp program.
Sec. 855. Study of the use of food stamps to purchase vitamins and minerals.
Sec. 856. Deficit reduction.
Subtitle B--Commodity Distribution Programs
Sec. 871. Emergency food assistance program.
Sec. 872. Food bank demonstration project.
Sec. 873. Hunger prevention programs.
Sec. 874. Report on entitlement commodity processing.
Subtitle C--Electronic Benefit Transfer Systems
Sec. 891. Provisions to encourage electronic benefit transfer systems.
TITLE IX--MISCELLANEOUS
Sec. 901. Appropriation by State legislatures.
Sec. 902. Sanctioning for testing positive for controlled substances.
Sec. 903. Elimination of housing assistance with respect to fugitive felons and probation and parole violators.
Sec. 904. Sense of the Senate regarding the inability of the noncustodial parent to pay child support.
Sec. 905. Establishing national goals to prevent teenage pregnancies.
Sec. 906. Sense of the Senate regarding enforcement of statutory rape laws.
Sec. 907. Provisions to encourage electronic benefit transfer systems.
Sec. 908. Reduction of block grants to States for social services; use of vouchers.
Sec. 909. Rules relating to denial of earned income credit on basis of disqualified income. Sec. 910. Modification of adjusted gross income definition for earned income credit.
Sec. 911. Fraud under means-tested welfare and public assistance programs.
Sec. 912. Abstinence education.
Sec. 913. Change in reference.
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
SEC. 101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful society.
(2) Marriage is an essential institution of a successful society which promotes the interests of children.
(3) Promotion of responsible fatherhood and motherhood is integral to successful child rearing and the well-being of children.
(4) In 1992, only 54 percent of single-parent families with children had a child support order established and, of that 54 percent, only about one-half received the full amount due. Of the cases enforced through the public child support enforcement system, only 18 percent of the caseload has a collection.
(5) The number of individuals receiving aid to families with dependent children (in this section referred to as
``AFDC'') has more than tripled since 1965. More than two-thirds of these recipients are children. Eighty-nine percent of children receiving AFDC benefits now live in homes in which no father is present.
(A)(i) The average monthly number of children receiving AFDC benefits--
(I) was 3,300,000 in 1965;
(II) was 6,200,000 in 1970;
(III) was 7,400,000 in 1980; and
(IV) was 9,300,000 in 1992.
(ii) While the number of children receiving AFDC benefits increased nearly threefold between 1965 and 1992, the total number of children in the United States aged 0 to 18 has declined by 5.5 percent.
(B) The Department of Health and Human Services has estimated that 12,000,000 children will receive AFDC benefits within 10 years.
(C) The increase in the number of children receiving public assistance is closely related to the increase in births to unmarried women. Between 1970 and 1991, the percentage of live births to unmarried women increased nearly threefold, from 10.7 percent to 29.5 percent.
(6) The increase of out-of-wedlock pregnancies and births is well documented as follows:
(A) It is estimated that the rate of nonmarital teen pregnancy rose 23 percent from 54 pregnancies per 1,000 unmarried teenagers in 1976 to 66.7 pregnancies in 1991. The overall rate of nonmarital pregnancy rose 14 percent from 90.8 pregnancies per 1,000 unmarried women in 1980 to 103 in both 1991 and 1992. In contrast, the overall pregnancy rate for married couples decreased 7.3 percent between 1980 and 1991, from 126.9 pregnancies per 1,000 married women in 1980 to 117.6 pregnancies in 1991.
(B) The total of all out-of-wedlock births between 1970 and 1991 has risen from 10.7 percent to 29.5 percent and if the current trend continues, 50 percent of all births by the year 2015 will be out-of-wedlock.
(7) An effective strategy to combat teenage pregnancy must address the issue of male responsibility, including statutory rape culpability and prevention. The increase of teenage pregnancies among the youngest girls is particularly severe and is linked to predatory sexual practices by men who are significantly older.
(A) It is estimated that in the late 1980's, the rate for girls age 14 and under giving birth increased 26 percent.
(B) Data indicates that at least half of the children born to teenage mothers are fathered by adult men. Available data suggests that almost 70 percent of births to teenage girls are fathered by men over age 20.
(C) Surveys of teen mothers have revealed that a majority of such mothers have histories of sexual and physical abuse, primarily with older adult men.
(8) The negative consequences of an out-of-wedlock birth on the mother, the child, the family, and society are well documented as follows:
(A) Young women 17 and under who give birth outside of marriage are more likely to go on public assistance and to spend more years on welfare once enrolled. These combined effects of ``younger and longer'' increase total AFDC costs per household by 25 percent to 30 percent for 17-year-olds.
(B) Children born out-of-wedlock have a substantially higher risk of being born at a very low or moderately low birth weight.
(C) Children born out-of-wedlock are more likely to experience low verbal cognitive attainment, as well as more child abuse, and neglect.
(D) Children born out-of-wedlock were more likely to have lower cognitive scores, lower educational aspirations, and a greater likelihood of becoming teenage parents themselves.
(E) Being born out-of-wedlock significantly reduces the chances of the child growing up to have an intact marriage.
(F) Children born out-of-wedlock are 3 times more likely to be on welfare when they grow up.
(9) Currently 35 percent of children in single-parent homes were born out-of-wedlock, nearly the same percentage as that of children in single-parent homes whose parents are divorced
(37 percent). While many parents find themselves, through divorce or tragic circumstances beyond their control, facing the difficult task of raising children alone, nevertheless, the negative consequences of raising children in single-parent homes are well documented as follows:
(A) Only 9 percent of married-couple families with children under 18 years of age have income below the national poverty level. In contrast, 46 percent of female-headed households with children under 18 years of age are below the national poverty level.
(B) Among single-parent families, nearly \1/2\ of the mothers who never married received AFDC while only \1/5\ of divorced mothers received AFDC.
(C) Children born into families receiving welfare assistance are 3 times more likely to be on welfare when they reach adulthood than children not born into families receiving welfare.
(D) Mothers under 20 years of age are at the greatest risk of bearing low-birth-weight babies.
(E) The younger the single parent mother, the less likely she is to finish high school.
(F) Young women who have children before finishing high school are more likely to receive welfare assistance for a longer period of time.
(G) Between 1985 and 1990, the public cost of births to teenage mothers under the aid to families with dependent children program, the food stamp program, and the medicaid program has been estimated at $120,000,000,000.
(H) The absence of a father in the life of a child has a negative effect on school performance and peer adjustment.
(I) Children of teenage single parents have lower cognitive scores, lower educational aspirations, and a greater likelihood of becoming teenage parents themselves.
(J) Children of single-parent homes are 3 times more likely to fail and repeat a year in grade school than are children from intact 2-parent families.
(K) Children from single-parent homes are almost 4 times more likely to be expelled or suspended from school.
(L) Neighborhoods with larger percentages of youth aged 12 through 20 and areas with higher percentages of single-parent households have higher rates of violent crime.
(M) Of those youth held for criminal offenses within the State juvenile justice system, only 29.8 percent lived primarily in a home with both parents. In contrast to these incarcerated youth, 73.9 percent of the 62,800,000 children in the Nation's resident population were living with both parents.
(10) Therefore, in light of this demonstration of the crisis in our Nation, it is the sense of the Congress that prevention of out-of-wedlock pregnancy and reduction in out-of-wedlock birth are very important Government interests and the policy contained in part A of title IV of the Social Security Act (as amended by section 103(a) of this Act) is intended to address the crisis.
SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title an amendment is expressed in terms of an amendment to or repeal of a section or other provision, the reference shall be considered to be made to that section or other provision of the Social Security Act.
SEC. 103. BLOCK GRANTS TO STATES.
(a) In General.--Part A of title IV (42 U.S.C. 601 et seq.) is amended--
(1) by striking all that precedes section 418 (as added by section 603(b)(2) of this Act) and inserting the following:
``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
``SEC. 401. PURPOSE.
``(a) In General.--The purpose of this part is to increase the flexibility of States in operating a program designed to--
``(1) provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;
``(2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage;
``(3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and
``(4) encourage the formation and maintenance of two-parent families.
``(b) No Individual Entitlement.--This part shall not be interpreted to entitle any individual or family to assistance under any State program funded under this part.
``SEC. 402. ELIGIBLE STATES; STATE PLAN.
``(a) In General.--As used in this part, the term `eligible State' means, with respect to a fiscal year, a State that, during the 2-year period immediately preceding the fiscal year, has submitted to the Secretary a plan that the Secretary has found includes the following:
``(1) Outline of family assistance program.--
``(A) General provisions.--A written document that outlines how the State intends to do the following:
``(i) Conduct a program, designed to serve all political subdivisions in the State (not necessarily in a uniform manner), that provides assistance to needy families with (or expecting) children and provides parents with job preparation, work, and support services to enable them to leave the program and become self-sufficient.
``(ii) Require a parent or caretaker receiving assistance under the program to engage in work (as defined by the State) once the State determines the parent or caretaker is ready to engage in work, or once the parent or caretaker has received assistance under the program for 24 months (whether or not consecutive), whichever is earlier.
``(iii) Ensure that parents and caretakers receiving assistance under the program engage in work activities in accordance with section 407.
``(iv) Take such reasonable steps as the State deems necessary to restrict the use and disclosure of information about individuals and families receiving assistance under the program attributable to funds provided by the Federal Government.
``(v) Establish goals and take action to prevent and reduce the incidence of out-of-wedlock pregnancies, with special emphasis on teenage pregnancies, and establish numerical goals for reducing the illegitimacy ratio of the State (as defined in section 403(a)(2)(B)) for calendar years 1996 through 2005.
``(vi) Conduct a program, designed to reach State and local law enforcement officials, the education system, and relevant counseling services, that provides education and training on the problem of statutory rape so that teenage pregnancy prevention programs may be expanded in scope to include men.
``(B) Special provisions.--
``(i) The document shall indicate whether the State intends to treat families moving into the State from another State differently than other families under the program, and if so, how the State intends to treat such families under the program.
``(ii) The document shall indicate whether the State intends to provide assistance under the program to individuals who are not citizens of the United States, and if so, shall include an overview of such assistance.
``(iii) The document shall set forth objective criteria for the delivery of benefits and the determination of eligibility and for fair and equitable treatment, including an explanation of how the State will provide opportunities for recipients who have been adversely affected to be heard in a State administrative or appeal process.
``(iv) Not later than 1 year after the date of enactment of this Act, unless the chief executive officer of the State opts out of this provision by notifying the Secretary, a State shall, consistent with the exception provided in section 407(e)(2), require a parent or caretaker receiving assistance under the program who, after receiving such assistance for 2 months is not exempt from work requirements and is not engaged in work, as determined under section 407(c), to participate in community service employment, with minimum hours per week and tasks to be determined by the State.
``(2) Certification that the state will operate a child support enforcement program.--A certification by the chief executive officer of the State that, during the fiscal year, the State will operate a child support enforcement program under the State plan approved under part D.
``(3) Certification that the state will operate a foster care and adoption assistance program.--A certification by the chief executive officer of the State that, during the fiscal year, the State will operate a foster care and adoption assistance program under the State plan approved under part E, and that the State will take such actions as are necessary to ensure that children receiving assistance under such part are eligible for medical assistance under the State plan under title XIX.
``(4) Certification of the administration of the program.--A certification by the chief executive officer of the State specifying which State agency or agencies will administer and supervise the program referred to in paragraph (1) for the fiscal year, which shall include assurances that local governments and private sector organizations--
``(A) have been consulted regarding the plan and design of welfare services in the State so that services are provided in a manner appropriate to local populations; and
``(B) have had at least 45 days to submit comments on the plan and the design of such services.
``(5) Certification that the state will provide indians with equitable access to assistance.--A certification by the chief executive officer of the State that, during the fiscal year, the State will provide each member of an Indian tribe, who is domiciled in the State and is not eligible for assistance under a tribal family assistance plan approved under section 412, with equitable access to assistance under the State program funded under this part attributable to funds provided by the Federal Government.
``(6) Certification of standards and procedures to ensure against program fraud and abuse.--A certification by the chief executive officer of the State that the State has established and is enforcing standards and procedures to ensure against program fraud and abuse, including standards and procedures concerning nepotism, conflicts of interest among individuals responsible for the administration and supervision of the State program, kickbacks, and the use of political patronage.
``(7) Optional certification of standards and procedures to ensure that the state will screen for and identify domestic violence.--
``(A) In general.--At the option of the State, a certification by the chief executive officer of the State that the State has established and is enforcing standards and procedures to--
``(i) screen and identify individuals receiving assistance under this part with a history of domestic violence while maintaining the confidentiality of such individuals;
``(ii) refer such individuals to counseling and supportive services; and
``(iii) waive, pursuant to a determination of good cause, other program requirements such as time limits (for so long as necessary) for individuals receiving assistance, residency requirements, child support cooperation requirements, and family cap provisions, in cases where compliance with such requirements would make it more difficult for individuals receiving assistance under this part to escape domestic violence or unfairly penalize such individuals who are or have been victimized by such violence, or individuals who are at risk of further domestic violence.
``(B) Domestic violence defined.--For purposes of this paragraph, the term `domestic violence' has the same meaning as the term `battered or subjected to extreme cruelty', as defined in section 408(a)(7)(C)(iii).
``(b) Public Availability of State Plan Summary.--The State shall make available to the public a summary of any plan submitted by the State under this section.
``SEC. 403. GRANTS TO STATES.
``(a) Grants.--
``(1) Family assistance grant.--
``(A) In general.--Each eligible State shall be entitled to receive from the Secretary, for each of fiscal years 1996, 1997, 1998, 1999, 2000, 2001, and 2002, a grant in an amount equal to the State family assistance grant.
``(B) State family assistance grant defined.--As used in this part, the term `State family assistance grant' means the greatest of--
``(i) \1/3\ of the total amount required to be paid to the State under former section 403 (as in effect on September 30, 1995) for fiscal years 1992, 1993, and 1994 (other than with respect to amounts expended by the State for child care under subsection (g) or (i) of former section 402 (as so in effect));
``(ii)(I) the total amount required to be paid to the State under former section 403 for fiscal year 1994 (other than with respect to amounts expended by the State for child care under subsection (g) or (i) of former section 402 (as so in effect)); plus
``(II) an amount equal to 85 percent of the amount (if any) by which the total amount required to be paid to the State under former section 403(a)(5) for emergency assistance for fiscal year 1995 exceeds the total amount required to be paid to the State under former section 403(a)(5) for fiscal year 1994, if, during fiscal year 1994 or 1995, the Secretary approved under former section 402 an amendment to the former State plan with respect to the provision of emergency assistance; or
``(iii) \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 a bonus year, an eligible State whose score assigned pursuant to subparagraph (D)(i) for the fiscal year immediately preceding the bonus year equals or exceeds the performance threshold prescribed under subparagraph (D)(ii) for such preceding fiscal year.
``(F) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal years 1999 through 2003
$1,000,000,000 for grants under this paragraph.
``(b) Contingency Fund.--
``(1) Establishment.--There is hereby established in the Treasury of the United States a fund which shall be known as the `Contingency Fund for State Welfare Programs' (in this section referred to as the `Fund').
``(2) Deposits into fund.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal years 1997, 1998, 1999, 2000, and 2001 such sums as are necessary for payment to the Fund in a total amount not to exceed $2,000,000,000.
``(3) Grants.--
``(A) Provisional payments.--If an eligible State submits to the Secretary a request for funds under this paragraph during an eligible month, the Secretary shall, subject to this paragraph, pay to the State, from amounts appropriated pursuant to paragraph (2), an amount equal to the amount of funds so requested.
``(B) Payment priority.--The Secretary shall make payments under subparagraph (A) in the order in which the Secretary receives requests for such payments.
``(C) Limitations.--
``(i) Monthly payment to a state.--The total amount paid to a single State under subparagraph (A) during a month shall not exceed \1/12\ of 20 percent of the State family assistance grant.
``(ii) Payments to all states.--The total amount paid to all States under subparagraph (A) during fiscal years 1997 through 2001 shall not exceed the total amount appropriated pursuant to paragraph (2).
``(4) Annual reconciliation.--Notwithstanding paragraph
(3), at the end of each fiscal year, each State shall remit to the Secretary an amount equal to the amount (if any) by which the total amount paid to the State under paragraph (3) during the fiscal year exceeds--
``(A) the Federal medical assistance percentage for the State for the fiscal year (as defined in section 1905(b), as in effect on September 30, 1995) of the amount (if any) by which--
``(i) if the Secretary makes a payment to the State under section 418(a)(2) in the fiscal year--
``(I) the expenditures under the State program funded under this part for the fiscal year, excluding any amounts made available by the Federal Government (except amounts paid to the State under paragraph (3) during the fiscal year that have been expended by the State) and any amounts expended by the State during the fiscal year for child care; exceeds
``(II) historic State expenditures (as defined in section 409(a)(7)(B)(iii)), excluding the expenditures by the State for child care under subsection (g) or (i) of section 402 (as in effect during fiscal year 1994) for fiscal year 1994 minus any Federal payment with respect to such child care expenditures; or
``(ii) if the Secretary does not make a payment to the State under section 418(a)(2) in the fiscal year--
``(I) the expenditures under the State program funded under this part for the fiscal year (excluding any amounts made available by the Federal Government, except amounts paid to the State under paragraph (3) during the fiscal year that have been expended by the State); exceeds
``(II) historic State expenditures (as defined in section 409(a)(7)(B)(iii)); multiplied by
``(B) \1/12\ times the number of months during the fiscal year for which the Secretary makes a payment to the State under this subsection.
``(5) Eligible month.--As used in paragraph (3)(A), the term `eligible month' means, with respect to a State, a month in the 2-month period that begins with any month for which the State is a needy State.
``(6) Needy state.--For purposes of paragraph (5), a State is a needy State for a month if--
``(A) the average rate of--
``(i) total unemployment in such State (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all States are published equals or exceeds 6.5 percent; and
``(ii) total unemployment in such State (seasonally adjusted) for the 3-month period equals or exceeds 110 percent of such average rate for either (or both) of the corresponding 3-month periods ending in the 2 preceding calendar years; or
``(B) as determined by the Secretary of Agriculture (in the discretion of the Secretary of Agriculture), the monthly average number of individuals (as of the last day of each month) participating in the food stamp program in the State in the then most recently concluded 3-month period for which data are available exceeds by not less than 10 percent the lesser of--
``(i) the monthly average number of individuals (as of the last day of each month) in the State that would have participated in the food stamp program in the corresponding 3-month period in fiscal year 1994 if the amendments made by titles IV and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout fiscal year 1994; or
``(ii) the monthly average number of individuals (as of the last day of each month) in the State that would have participated in the food stamp program in the corresponding 3-month period in fiscal year 1995 if the amendments made by titles IV and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout fiscal year 1995.
``(7) Other terms defined.--As used in this subsection:
``(A) State.--The term `State' means each of the 50 States of the United States and the District of Columbia.
``(B) Secretary.--The term `Secretary' means the Secretary of the Treasury.
``(8) Annual reports.--The Secretary shall annually report to the Congress on the status of the Fund.
``SEC. 404. USE OF GRANTS.
``(a) General Rules.--Subject to this part, a State to which a grant is made under section 403 may use the grant--
``(1) in any manner that is reasonably calculated to accomplish the purpose of this part, including to provide low income households with assistance in meeting home heating and cooling costs; or
``(2) in any manner that the State was authorized to use amounts received under part A or F, as such parts were in effect on September 30, 1995.
``(b) Limitation on Use of Grant for Administrative Purposes.--
``(1) Limitation.--A State to which a grant is made under section 403 shall not expend more than 15 percent of the grant for administrative purposes.
``(2) Exception.--Paragraph (1) shall not apply to the use of a grant for information technology and computerization needed for tracking or monitoring required by or under this part.
``(c) Authority to Treat Interstate Immigrants Under Rules of Former State.--A State operating a program funded under this part may apply to a family the rules (including benefit amounts) of the program funded under this part of another State if the family has moved to the State from the other State and has resided in the State for less than 12 months.
``(d) Authority to Use Portion of Grant for Other Purposes.--
``(1) In general.--A State may use not more than 30 percent of the amount of any grant made to the State under section 403(a) for a fiscal year to carry out a State program pursuant to any or all of the following provisions of law:
``(A) Title XX of this Act.
``(B) The Child Care and Development Block Grant Act of 1990.
``(2) Limitation on amount transferable to title xx programs.--Notwithstanding paragraph (1), not more than \1/3\ of the total amount paid to a State under this part for a fiscal year that is used to carry out State programs pursuant to provisions of law specified in paragraph (1) may be used to carry out State programs pursuant to title XX.
``(3) Applicable rules.--
``(A) In general.--Except as provided in subparagraph (B) of this paragraph, any amount paid to a State under this part that is used to carry out a State program pursuant to a provision of law specified in paragraph (1) shall not be subject to the requirements of this part, but shall be subject to the requirements that apply to Federal funds provided directly under the provision of law to carry out the program, and the expenditure of any amount so used shall not be considered to be an expenditure under this part.
``(B) Exception relating to title xx programs.--All amounts paid to a State under this part that are used to carry out State programs pursuant to title XX shall be used only for programs and services to children or their families whose income is less than 200 percent of the income official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size involved.
``(e) Authority to Reserve Certain Amounts for Assistance.--A State may reserve amounts paid to the State under this part for any fiscal year for the purpose of providing, without fiscal year limitation, assistance under the State program funded under this part.
``(f) Authority to Operate Employment Placement Program.--A State to which a grant is made under section 403 may use the grant to make payments (or provide job placement vouchers) to State-approved public and private job placement agencies that provide employment placement services to individuals who receive assistance under the State program funded under this part.
``(g) Implementation of Electronic Benefit Transfer System.--A State to which a grant is made under section 403 is encouraged to implement an electronic benefit transfer system for providing assistance under the State program funded under this part, and may use the grant for such purpose.
``(h) Use of Funds for Individual Development Accounts.--
``(1) In general.--A State to which a grant is made under section 403 may use the grant to carry out a program to fund individual development accounts (as defined in paragraph (2)) established by individuals eligible for assistance under the State program funded under this part.
``(2) Individual development accounts.--
``(A) Establishment.--Under a State program carried out under paragraph (1), an individual development account may be established by or on behalf of an individual eligible for assistance under the State program operated under this part for the purpose of enabling the individual to accumulate funds for a qualified purpose described in subparagraph (B).
``(B) Qualified purpose.--A qualified purpose described in this subparagraph is 1 or more of the following, as provided by the qualified entity providing assistance to the individual under this subsection:
``(i) Postsecondary educational expenses.--Postsecondary educational expenses paid from an individual development account directly to an eligible educational institution.
``(ii) First home purchase.--Qualified acquisition costs with respect to a qualified principal residence for a qualified first-time homebuyer, if paid from an individual development account directly to the persons to whom the amounts are due.
``(iii) Business capitalization.--Amounts paid from an individual development account directly to a business capitalization account which is established in a federally insured financial institution and is restricted to use solely for qualified business capitalization expenses.
``(C) Contributions to be from earned income.--An individual may only contribute to an individual development account such amounts as are derived from earned income, as defined in section 911(d)(2) of the Internal Revenue Code of 1986.
``(D) Withdrawal of funds.--The Secretary shall establish such regulations as may be necessary to ensure that funds held in an individual development account are not withdrawn except for 1 or more of the qualified purposes described in subparagraph (B).
``(3) Requirements.--
``(A) In general.--An individual development account established under this subsection shall be a trust created or organized in the United States and funded through periodic contributions by the establishing individual and matched by or through a qualified entity for a qualified purpose (as described in paragraph (2)(B)).
``(B) Qualified entity.--As used in this subsection, the term `qualified entity' means--
``(i) a not-for-profit organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; or
``(ii) a State or local government agency acting in cooperation with an organization described in clause (i).
``(4) No reduction in benefits.--Notwithstanding any other provision of Federal law (other than the Internal Revenue Code of 1986) that requires consideration of 1 or more financial circumstances of an individual, for the purpose of determining eligibility to receive, or the amount of, any assistance or benefit authorized by such law to be provided to or for the benefit of such individual, funds (including interest accruing) in an individual development account under this subsection shall be disregarded for such purpose with respect to any period during which such individual maintains or makes contributions into such an account.
``(5) Definitions.--As used in this subsection--
``(A) Eligible educational institution.--The term `eligible educational institution' means the following:
``(i) An institution described in section 481(a)(1) or 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1088(a)(1) or 1141(a)), as such sections are in effect on the date of the enactment of this subsection.
``(ii) An area vocational education school (as defined in subparagraph (C) or (D) of section 521(4) of the Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2471(4))) which is in any State (as defined in section 521(33) of such Act), as such sections are in effect on the date of the enactment of this subsection.
``(B) Post-secondary educational expenses.--The term `post-secondary educational expenses' means--
``(i) tuition and fees required for the enrollment or attendance of a student at an eligible educational institution, and
``(ii) fees, books, supplies, and equipment required for courses of instruction at an eligible educational institution.
``(C) Qualified acquisition costs.--The term `qualified acquisition costs' means the costs of acquiring, constructing, or reconstructing a residence. The term includes any usual or reasonable settlement, financing, or other closing costs.
``(D) Qualified business.--The term `qualified business' means any business that does not contravene any law or public policy (as determined by the Secretary).
``(E) Qualified business capitalization expenses.--The term
`qualified business capitalization expenses' means qualified expenditures for the capitalization of a qualified business pursuant to a qualified plan.
``(F) Qualified expenditures.--The term `qualified expenditures' means expenditures included in a qualified plan, including capital, plant, equipment, working capital, and inventory expenses.
``(G) Qualified first-time homebuyer.--
``(i) In general.--The term `qualified first-time homebuyer' means a taxpayer (and, if married, the taxpayer's spouse) who has no present ownership interest in a principal residence during the 3-year period ending on the date of acquisition of the principal residence to which this subsection applies.
``(ii) Date of acquisition.--The term `date of acquisition' means the date on which a binding contract to acquire, construct, or reconstruct the principal residence to which this subparagraph applies is entered into.
``(H) Qualified plan.--The term `qualified plan' means a business plan which--
``(i) is approved by a financial institution, or by a nonprofit loan fund having demonstrated fiduciary integrity,
``(ii) includes a description of services or goods to be sold, a marketing plan, and projected financial statements, and
``(iii) may require the eligible individual to obtain the assistance of an experienced entrepreneurial advisor.
``(I) Qualified principal residence.--The term `qualified principal residence' means a principal residence (within the meaning of section 1034 of the Internal Revenue Code of 1986), the qualified acquisition costs of which do not exceed 100 percent of the average area purchase price applicable to such residence (determined in accordance with paragraphs (2) and (3) of section 143(e) of such Code).
(i) Sanction welfare recipients for failing to ensure that minor dependent children attend school.--A State to which a grant is made under section 403 shall not be prohibited from sanctioning a family that includes an adult who has received assistance under any State program funded under this part attributable to funds provided by the Federal Government or under the food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977, if such adult fails to ensure that the minor dependent children of such adult attend school as required by the law of the State in which the minor children reside.
(j) Requirement for high school diploma or equivalent.--A State to which a grant is made under section 403 shall not be prohibited from sanctioning a family that includes an adult who is older than age 20 and younger than age 51 and who has received assistance under any State program funded under this part attributable to funds provided by the Federal Government or under the food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977, if such adult does not have, or is not working toward attaining, a secondary school diploma or its recognized equivalent unless such adult has been determined in the judgment of medical, psychiatric, or other appropriate professionals to lack the requisite capacity to complete successfully a course of study that would lead to a secondary school diploma or its recognized equivalent.
``SEC. 405. ADMINISTRATIVE PROVISIONS.
``(a) Quarterly.--The Secretary shall pay each grant payable to a State under section 403 in quarterly installments, subject to this section.
``(b) Notification.--Not later than 3 months before the payment of any such quarterly installment to a State, the Secretary shall notify the State of the amount of any reduction determined under section 412(a)(1)(B) with respect to the State.
``(c) Computation and Certification of Payments to States.--
``(1) Computation.--The Secretary shall estimate the amount to be paid to each eligible State for each quarter under this part, such estimate to be based on a report filed by the State containing an estimate by the State of the total sum to be expended by the State in the quarter under the State program funded under this part and such other information as the Secretary may find necessary.
``(2) Certification.--The Secretary of Health and Human Services shall certify to the Secretary of the Treasury the amount estimated under paragraph (1) with respect to a State, reduced or increased to the extent of any overpayment or underpayment which the Secretary of Health and Human Services determines was made under this part to the State for any prior quarter and with respect to which adjustment has not been made under this paragraph.
``(d) Payment Method.--Upon receipt of a certification under subsection (c)(2) with respect to a State, the Secretary of the Treasury shall, through the Fiscal Service of the Department of the Treasury and before audit or settlement by the General Accounting Office, pay to the State, at the time or times fixed by the Secretary of Health and Human Services, the amount so certified.
``SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.
``(a) Loan Authority.--
``(1) In general.--The Secretary shall make loans to any loan-eligible State, for a period to maturity of not more than 3 years.
``(2) Loan-eligible state.--As used in paragraph (1), the term `loan-eligible State' means a State against which a penalty has not been imposed under section 409(a)(1).
``(b) Rate of Interest.--The Secretary shall charge and collect interest on any loan made under this section at a rate equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the period to maturity of the loan.
``(c) Use of Loan.--A State shall use a loan made to the State under this section only for any purpose for which grant amounts received by the State under section 403(a) may be used, including--
``(1) welfare anti-fraud activities; and
``(2) the provision of assistance under the State program to Indian families that have moved from the service area of an Indian tribe with a tribal family assistance plan approved under section 412.
``(d) Limitation on Total Amount of Loans to a State.--The cumulative dollar amount of all loans made to a State under this section during fiscal years 1997 through 2002 shall not exceed 10 percent of the State family assistance grant.
``(e) Limitation on Total Amount of Outstanding Loans.--The total dollar amount of loans outstanding under this section may not exceed $1,700,000,000.
``(f) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as may be necessary for the cost of loans under this section.
``SEC. 407. MANDATORY WORK REQUIREMENTS.
``(a) Participation Rate Requirements.--
``(1) All families.--A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year with respect to all families receiving assistance under the State program funded under this part:
The minimum
participation
``If the fiscal year is: rate is:
1997........................................................25
1998........................................................30
1999........................................................35
2000........................................................40
2001........................................................45
2002 or thereafter..........................................50.
``(2) 2-parent families.--A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year with respect to 2-parent families receiving assistance under the State program funded under this part:
The minimum
participation
``If the fiscal year is: rate is:
1997........................................................75
1998........................................................75
1999 or thereafter..........................................90.
``(b) Calculation of Participation Rates.--
``(1) All families.--
``(A) Average monthly rate.--For purposes of subsection
(a)(1), the participation rate for all families of a State for a fiscal year is the average of the participation rates for all families of the State for each month in the fiscal year.
``(B) Monthly participation rates.--The participation rate of a State for all families of the State for a month, expressed as a percentage, is--
``(i) the number of families receiving assistance under the State program funded under this part that include an adult or a minor child head of household who is engaged in work for the month; divided by
``(ii) the amount by which--
``(I) the number of families receiving such assistance during the month that include an adult or a minor child head of household receiving such assistance; exceeds
``(II) the number of families receiving such assistance that are subject in such month to a penalty described in subsection (e)(1) but have not been subject to such penalty for more than 3 months within the preceding 12-month period
(whether or not consecutive).
``(2) 2-parent families.--
``(A) Average monthly rate.--For purposes of subsection
(a)(2), the participation rate for 2-parent families of a State for a fiscal year is the average of the participation rates for 2-parent families of the State for each month in the fiscal year.
``(B) Monthly participation rates.--The participation rate of a State for 2-parent families of the State for a month shall be calculated by use of the formula set forth in paragraph (1)(B), except that in the formula the term `number of 2-parent families' shall be substituted for the term
`number of families' each place such latter term appears.
``(3) Pro rata reduction of participation rate due to caseload reductions not required by federal law.--
``(A) In general.--The Secretary shall prescribe regulations for reducing the minimum participation rate otherwise required by this section for a fiscal year by the number of percentage points equal to the number of percentage points (if any) by which--
``(i) the average monthly number of families receiving assistance during the immediately preceding fiscal year under the State program funded under this part is less than
``(ii) the average monthly number of families that received aid under the State plan approved under part A (as in effect on September 30, 1995) during fiscal year 1995.The minimum participation rate shall not be reduced to the extent that the Secretary determines that the reduction in the number of families receiving such assistance is required by Federal law.
``(B) Eligibility changes not counted.--The regulations required by subparagraph (A) shall not take into account families that are diverted from a State program funded under this part as a result of differences in eligibility criteria under a State program funded under this part and eligibility criteria under the State program operated under the State plan approved under part A (as such plan and such part were in effect on September 30, 1995). Such regulations shall place the burden on the Secretary to prove that such families were diverted as a direct result of differences in such eligibility criteria.
``(4) State option to include individuals receiving assistance under a tribal family assistance plan.--For purposes of paragraphs (1)(B) and (2)(B), a State may, at its option, include families in the State that are receiving assistance under a tribal family assistance plan approved under section 412.
``(5) State option for participation requirement exemptions.--For any fiscal year, a State may, at its option, not require an individual who is a single custodial parent caring for a child who has not attained 12 months of age to engage in work, and may disregard such an individual in determining the participation rates under subsection (a) for not more than 12 months.
``(c) Engaged in Work.--
``(1) General rules.--
``(A) All families.--For purposes of subsection
(b)(1)(B)(i), a recipient is engaged in work for a month in a fiscal year if the recipient is participating in work activities for at least the minimum average number of hours per week specified in the following table during the month, not fewer than 20 hours per week of which are attributable to an activity described in paragraph (1), (2), (3), (4), (5),
(6), (7), (8), or (12) of subsection (d), subject to this subsection:
The minimum
``If the month is average number of
in fiscal year: hours per week is:
1997......................................................20
1998......................................................20
1999......................................................25
2000 or thereafter........................................30.
``(B) 2-parent families.--For purposes of subsection
(b)(2)(B), an individual is engaged in work for a month in a fiscal year if--
``(i) the individual is making progress in work activities for at least 35 hours per week during the month, not fewer than 30 hours per week of which are attributable to an activity described in paragraph (1), (2), (3), (4), (5), (6),
(7), (8), or (12) of subsection (d), subject to this subsection; and
``(ii) if the family of the individual receives federally-funded child care assistance and an adult in the family is not disabled or caring for a severely disabled child, the individual's spouse is making progress in work activities during the month, not fewer than 20 hours per week of which are attributable to an activity described in paragraph (1),
(2), (3), (4), (5), or (7) of subsection (d).
``(2) Limitations and special rules.--
``(A) Number of weeks for which job search counts as work.--
``(i) Limitation.--Notwithstanding paragraph (1) of this subsection, an individual shall not be considered to be engaged in work by virtue of participation in an activity described in subsection (d)(6) of a State program funded under this part, after the individual has participated in such an activity for 6 weeks (or, if the unemployment rate of the State is at least 50 percent greater than the unemployment rate of the United States, 12 weeks), or if the participation is for a week that immediately follows 4 consecutive weeks of such participation.
``(ii) Limited authority to count less than full week of participation.--For purposes of clause (i) of this subparagraph, on not more than 1 occasion per individual, the State shall consider participation of the individual in an activity described in subsection (d)(6) for 3 or 4 days during a week as a week of participation in the activity by the individual.
``(B) Single parent with child under age 6 deemed to be meeting work participation requirements if parent is engaged in work for 20 hours per week.--For purposes of determining monthly participation rates under subsection (b)(1)(B)(i), a recipient in a 1-parent family who is the parent of a child who has not attained 6 years of age is deemed to be engaged in work for a month if the recipient is engaged in work for an average of at least 20 hours per week during the month.
``(C) Teen head of household who maintains satisfactory school attendance deemed to be meeting work participation requirements.--For purposes of determining monthly participation rates under subsection (b)(1)(B)(i), a recipient who is a single head of household and has not attained 20 years of age is deemed, subject to subparagraph
(D) of this paragraph, to be engaged in work for a month in a fiscal year if the recipient--
``(i) maintains satisfactory attendance at secondary school or the equivalent during the month; or
``(ii) participates in education directly related to employment for at least the minimum average number of hours per week specified in the table set forth in paragraph (1)(A) of this subsection.
``(D) Number of persons that may be treated as engaged in work by virtue of participation in vocational education activities or being a teen head of household who maintains satisfactory school attendance.--For purposes of determining monthly participation rates under paragraphs (1)(B)(i) and
(2)(B) of subsection (b), not more than 20 percent of individuals in all families and in 2-parent families may be determined to be engaged in work in the State for a month by reason of participation in vocational educational training or deemed to be engaged in work by reason of subparagraph (C) of this paragraph.
``(d) Work Activities Defined.--As used in this section, the term `work activities' means--
``(1) unsubsidized employment;
``(2) subsidized private sector employment;
``(3) subsidized public sector employment;
``(4) work experience (including work associated with the refurbishing of publicly assisted housing) if sufficient private sector employment is not available;
``(5) on-the-job training;
``(6) job search and job readiness assistance;
``(7) community service programs;
``(8) vocational educational training (not to exceed 12 months with respect to any individual);
``(9) job skills training directly related to employment;
``(10) education directly related to employment, in the case of a recipient who has not received a high school diploma or a certificate of high school equivalency;
``(11) satisfactory attendance at secondary school or in a course of study leading to a certificate of general equivalence, in the case of a recipient who has not completed secondary school or received such a certificate; and
``(12) the provision of child care services to an individual who is participating in a community service program.
``(e) Penalties Against Individuals.--
``(1) In general.--Except as provided in paragraph (2), if an individual in a family receiving assistance under the State program funded under this part refuses to engage in work required in accordance with this section, the State shall--
``(A) reduce the amount of assistance otherwise payable to the family pro rata (or more, at the option of the State) with respect to any period during a month in which the individual so refuses; or
``(B) terminate such assistance,subject to such good cause and other exceptions as the State may establish.
``(2) Exception.--Notwithstanding paragraph (1), a State may not reduce or terminate assistance under the State program funded under this part based on a refusal of an individual to work if the individual is a single custodial parent caring for a child who has not attained 6 years of age, and the individual proves that the individual has a demonstrated inability (as determined by the State) to obtain needed child care, for 1 or more of the following reasons:
``(A) Unavailability of appropriate child care within a reasonable distance from the individual's home or work site.
``(B) Unavailability or unsuitability of informal child care by a relative or under other arrangements.
``(C) Unavailability of appropriate and affordable formal child care arrangements.
``(f) Nondisplacement in Work Activities.--
``(1) In general.--Subject to paragraph (2), an adult in a family receiving assistance under a State program funded under this part attributable to funds provided by the Federal Government may fill a vacant employment position in order to engage in a work activity described in subsection (d).
``(2) No filling of certain vacancies.--No adult in a work activity described in subsection (d) which is funded, in whole or in part, by funds provided by the Federal Government shall be employed or assigned--
``(A) when any other individual is on layoff from the same or any substantially equivalent job; or
``(B) if the employer has terminated the employment of any regular employee or otherwise caused an involuntary reduction of its workforce in order to fill the vacancy so created with an adult described in paragraph (1).
``(3) Grievance procedure.--A State with a program funded under this part shall establish and maintain a grievance procedure for resolving complaints of alleged violations of paragraph (2).
``(4) No preemption.--Nothing in this subsection shall preempt or supersede any provision of State or local law that provides greater protection for employees from displacement.
``(g) Sense of the Congress.--It is the sense of the Congress that in complying with this section, each State that operates a program funded under this part is encouraged to assign the highest priority to requiring adults in 2-parent families and adults in single-parent families that include older preschool or school-age children to be engaged in work activities.
``(h) Sense of the Congress That States Should Impose Certain Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the sense of the Congress that the States should require noncustodial, nonsupporting parents who have not attained 18 years of age to fulfill community work obligations and attend appropriate parenting or money management classes after school.
``(i) Review of Implementation of State Work Programs.--During fiscal year 1999, the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate shall hold hearings and engage in other appropriate activities to review the implementation of this section by the States, and shall invite the Governors of the States to testify before them regarding such implementation. Based on such hearings, such Committees may introduce such legislation as may be appropriate to remedy any problems with the State programs operated pursuant to this section.
``SEC. 408. PROHIBITIONS; REQUIREMENTS.
``(a) In General.--
``(1) No assistance for families without a minor child.--A State to which a grant is made under section 403 shall not use any part of the grant to provide assistance to a family--
``(A) unless the family includes--
``(i) a minor child who resides with a custodial parent or other adult caretaker relative of the child; or
``(ii) a pregnant individual; and
``(B) if the family includes an adult who has received assistance under any State program funded under this part attributable to funds provided by the Federal Government, for 60 months (whether or not consecutive) after the date the State program funded under this part commences (unless an exception described in subparagraph (B), (C), or (D) of paragraph (7) applies).
``(2) Reduction or elimination of assistance for noncooperation in establishing paternity or obtaining child support.--If the agency responsible for administering the State plan approved under part D determines that an individual is not cooperating with the State in establishing paternity or in establishing, modifying, or enforcing a support order with respect to a child of the individual, and the individual does not qualify for any good cause or other exception established by the State pursuant to section 454(29), then the State--
``(A) shall deduct from the assistance that would otherwise be provided to the family of the individual under the State program funded under this part an amount equal to not less than 25 percent of the amount of such assistance; and
``(B) may deny the family any assistance under the State program.
``(3) No assistance for families not assigning certain support rights to the state.--
``(A) In general.--A State to which a grant is made under section 403 shall require, as a condition of providing assistance to a family under the State program funded under this part, that a member of the family assign to the State any rights the family member may have (on behalf of the family member or of any other person for whom the family member has applied for or is receiving such assistance) to support from any other person, not exceeding the total amount of assistance so provided to the family, which accrue (or have accrued) before the date the family leaves the program, which assignment, on and after the date the family leaves the program, shall not apply with respect to any support (other than support collected pursuant to section 464) which accrued before the family received such assistance and which the State has not collected by--
``(i) September 30, 2000, if the assignment is executed on or after October 1, 1997, and before October 1, 2000; or
``(ii) the date the family leaves the program, if the assignment is executed on or after October 1, 2000.
``(B) Limitation.--A State to which a grant is made under section 403 shall not require, as a condition of providing assistance to any family under the State program funded under this part, that a member of the family assign to the State any rights to support described in subparagraph (A) which accrue after the date the family leaves the program.
``(4) No assistance for teenage parents who do not attend high school or other equivalent training program.--A State to which a grant is made under section 403 shall not use any part of the grant to provide assistance to an individual who has not attained 18 years of age, is not married, has a minor child at least 12 weeks of age in his or her care, and has not successfully completed a high-school education (or its equivalent), if the individual does not participate in--
``(A) educational activities directed toward the attainment of a high school diploma or its equivalent; or
``(B) an alternative educational or training program that has been approved by the State.
``(5) No assistance for teenage parents not living in adult-supervised settings.--
``(A) In general.--
``(i) Requirement.--Except as provided in subparagraph (B), a State to which a grant is made under section 403 shall not use any part of the grant to provide assistance to an individual described in clause (ii) of this subparagraph if the individual and the minor child referred to in clause
(ii)(II) do not reside in a place of residence maintained by a parent, legal guardian, or other adult relative of the individual as such parent's, guardian's, or adult relative's own home.
``(ii) Individual described.-- For purposes of clause (i), an individual described in this clause is an individual who--
``(I) has not attained 18 years of age; and
``(II) is not married, and has a minor child in his or her care.
``(B) Exception.--
``(i) Provision of, or assistance in locating, adult-supervised living arrangement.--In the case of an individual who is described in clause (ii), the State agency referred to in section 402(a)(4) shall provide, or assist the individual in locating, a second chance home, maternity home, or other appropriate adult-supervised supportive living arrangement, taking into consideration the needs and concerns of the individual, unless the State agency determines that the individual's current living arrangement is appropriate, and thereafter shall require that the individual and the minor child referred to in subparagraph (A)(ii)(II) reside in such living arrangement as a condition of the continued receipt of assistance under the State program funded under this part attributable to funds provided by the Federal Government (or in an alternative appropriate arrangement, should circumstances change and the current arrangement cease to be appropriate).
``(ii) Individual described.--For purposes of clause (i), an individual is described in this clause if the individual is described in subparagraph (A)(ii), and--
``(I) the individual has no parent, legal guardian or other appropriate adult relative described in subclause (II) of his or her own who is living or whose whereabouts are known;
``(II) no living parent, legal guardian, or other appropriate adult relative, who would otherwise meet applicable State criteria to act as the individual's legal guardian, of such individual allows the individual to live in the home of such parent, guardian, or relative;
``(III) the State agency determines that--
``(aa) the individual or the minor child referred to in subparagraph (A)(ii)(II) is being or has been subjected to serious physical or emotional harm, sexual abuse, or exploitation in the residence of the individual's own parent or legal guardian; or
``(bb) substantial evidence exists of an act or failure to act that presents an imminent or serious harm if the individual and the minor child lived in the same residence with the individual's own parent or legal guardian; or
``(IV) the State agency otherwise determines that it is in the best interest of the minor child to waive the requirement of subparagraph (A) with respect to the individual or the minor child.
``(iii) Second-chance home.--For purposes of this subparagraph, the term `second-chance home' means an entity that provides individuals described in clause (ii) with a supportive and supervised living arrangement in which such individuals are required to learn parenting skills, including child development, family budgeting, health and nutrition, and other skills to promote their long-term economic independence and the well-being of their children.
``(6) No medical services.--
``(A) In general.--A State to which a grant is made under section 403 shall not use any part of the grant to provide medical services.
``(B) Exception for prepregnancy family planning services.--As used in subparagraph (A), the term `medical services' does not include prepregnancy family planning services.
``(7) No assistance for more than 5 years.--
``(A) In general.--A State to which a grant is made under section 403 shall not use any part of the grant to provide assistance to a family that includes an adult who has received assistance under any State program funded under this part attributable to funds provided by the Federal Government, for 60 months (whether or not consecutive) after the date the State program funded under this part commences, subject to this paragraph.
``(B) Minor child exception.--In determining the number of months for which an individual who is a parent or pregnant has received assistance under the State program funded under this part, the State shall disregard any month for which such assistance was provided with respect to the individual and during which the individual was--
``(i) a minor child; and
``(ii) not the head of a household or married to the head of a household.
``(C) Hardship exception.--
``(i) In general.--The State may exempt a family from the application of subparagraph (A) by reason of hardship or if the family includes an individual who has been battered or subjected to extreme cruelty.
``(ii) Limitation.--The number of families with respect to which an exemption made by a State under clause (i) is in effect for a fiscal year shall not exceed 20 percent of the average monthly number of families to which assistance is provided under the State program funded under this part.
``(iii) Battered or subject to extreme cruelty defined.--For purposes of clause (i), an individual has been battered or subjected to extreme cruelty if the individual has been subjected to--
``(I) physical acts that resulted in, or threatened to result in, physical injury to the individual;
``(II) sexual abuse;
``(III) sexual activity involving a dependent child;
``(IV) being forced as the caretaker relative of a dependent child to engage in nonconsensual sexual acts or activities;
``(V) threats of, or attempts at, physical or sexual abuse;
``(VI) mental abuse; or
``(VII) neglect or deprivation of medical care.
``(D) Disregard of months of assistance received by adult while living on an indian reservation or in an alaskan native village with 50 percent unemployment.--In determining the number of months for which an adult has received assistance under the State program funded under this part, the State shall disregard any month during which the adult lived on an Indian reservation or in an Alaskan Native village if, during the month--
``(i) at least 1,000 individuals were living on the reservation or in the village; and
``(ii) at least 50 percent of the adults living on the reservation or in the village were unemployed.
``(E) Rule of interpretation.--Subparagraph (A) shall not be interpreted to require any State to provide assistance to any individual for any period of time under the State program funded under this part.
``(F) Rule of interpretation.--This part shall not be interpreted to prohibit any State from expending State funds not originating with the Federal Government on benefits for children or families that have become ineligible for assistance under the State program funded under this part by reason of subparagraph (A).
``(8) Denial of assistance for 10 years to a person found to have fraudulently misrepresented residence in order to obtain assistance in 2 or more states.--A State to which a grant is made under section 403 shall not use any part of the grant to provide cash assistance to an individual during the 10-year period that begins on the date the individual is convicted in Federal or State court of having made a fraudulent statement or representation with respect to the place of residence of the individual in order to receive assistance simultaneously from 2 or more States under programs that are funded under this title, title XIX, or the Food Stamp Act of 1977, or benefits in 2 or more States under the supplemental security income program under title XVI. The preceding sentence shall not apply with respect to a conviction of an individual, for any month beginning after the President of the United States grants a pardon with respect to the conduct which was the subject of the conviction.
``(9) Denial of assistance for fugitive felons and probation and parole violators.--
``(A) In general.--A State to which a grant is made under section 403 shall not use any part of the grant to provide assistance to any individual who is--
``(i) fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from which the individual flees, for a crime, or an attempt to commit a crime, which is a felony under the laws of the place from which the individual flees, or which, in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or
``(ii) violating a condition of probation or parole imposed under Federal or State law.
The preceding sentence shall not apply with respect to conduct of an individual, for any month beginning after the President of the United States grants a pardon with respect to the conduct.
``(B) Exchange of information with law enforcement agencies.--If a State to which a grant is made under section 403 establishes safeguards against the use or disclosure of information about applicants or recipients of assistance under the State program funded under this part, the safeguards shall not prevent the State agency administering the program from furnishing a Federal, State, or local law enforcement officer, upon the request of the officer, with the current address of any recipient if the officer furnishes the agency with the name of the recipient and notifies the agency that--
``(i) the recipient--
``(I) is described in subparagraph (A); or
``(II) has information that is necessary for the officer to conduct the official duties of the officer; and
``(ii) the location or apprehension of the recipient is within such official duties.
``(10) Denial of assistance for minor children who are absent from the home for a significant period.--
``(A) In general.--A State to which a grant is made under section 403 shall not use any part of the grant to provide assistance for a minor child who has been, or is expected by a parent (or other caretaker relative) of the child to be, absent from the home for a period of 45 consecutive days or, at the option of the State, such period of not less than 30 and not more than 180 consecutive days as the State may provide for in the State plan submitted pursuant to section 402.
``(B) State authority to establish good cause exceptions.--The State may establish such good cause exceptions to subparagraph (A) as the State considers appropriate if such exceptions are provided for in the State plan submitted pursuant to section 402.
``(C) Denial of assistance for relative who fails to notify state agency of absence of child.--A State to which a grant is made under section 403 shall not use any part of the grant to provide assistance for an individual who is a parent (or other caretaker relative) of a minor child and who fails to notify the agency administering the State program funded under this part of the absence of the minor child from the home for the period specified in or provided for pursuant to subparagraph (A), by the end of the 5-day period that begins with the date that it becomes clear to the parent (or relative) that the minor child will be absent for such period so specified or provided for.
``(11) Medical assistance required to be provided for certain families having earnings from employment or child support.--
``(A) Earnings from employment.--A State to which a grant is made under section 403 and which has a State plan approved under title XIX shall provide that in the case of a family that is treated (under section 1931(b)(1)(A) for purposes of title XIX) as receiving aid under a State plan approved under this part (as in effect on July 16, 1996), that would become ineligible for such aid because of hours of or income from employment of the caretaker relative (as defined under this part as in effect on such date) or because of section 402(a)(8)(B)(ii)(II) (as so in effect), and that was so treated as receiving such aid in at least 3 of the 6 months immediately preceding the month in which such ineligibility begins, the family shall remain eligible for medical assistance under the State's plan approved under title XIX for an extended period or periods as provided in section 1925 or 1902(e)(1) (as applicable), and that the family will be appropriately notified of such extension as required by section 1925(a)(2).
``(B) Child support.--A State to which a grant is made under section 403 and which has a State plan approved under title XIX shall provide that in the case of a family that is treated (under section 1931(b)(1)(A) for purposes of title XIX) as receiving aid under a State plan approved under this part (as in effect on July 16, 1996), that would become ineligible for such aid as a result (wholly or partly) of the collection of child or spousal support under part D and that was so treated as receiving such aid in at least 3 of the 6 months immediately preceding the month in which such ineligibility begins, the family shall remain eligible for medical assistance under the State's plan approved under title XIX for an extended period or periods as provided in section 1931(c)(1).
``(b) Individual Responsibility Plans.--
``(1) Assessment.--The State agency responsible for administering the State program funded under this part shall make an initial assessment of the skills, prior work experience, and employability of each recipient of assistance under the program who--
``(A) has attained 18 years of age; or
``(B) has not completed high school or obtained a certificate of high school equivalency, and is not attending secondary school.
``(2) Contents of plans.--
``(A) In general.--On the basis of the assessment made under subsection (a) with respect to an individual, the State agency, in consultation with the individual, may develop an individual responsibility plan for the individual, which--
``(i) sets forth an employment goal for the individual and a plan for moving the individual immediately into private sector employment;
``(ii) sets forth the obligations of the individual, which may include a requirement that the individual attend school, maintain certain grades and attendance, keep school age children of the individual in school, immunize children, attend parenting and money management classes, or do other things that will help the individual become and remain employed in the private sector;
``(iii) to the greatest extent possible is designed to move the individual into whatever private sector employment the individual is capable of handling as quickly as possible, and to increase the responsibility and amount of work the individual is to handle over time;
``(iv) describes the services the State will provide the individual so that the individual will be able to obtain and keep employment in the private sector, and describe the job counseling and other services that will be provided by the State; and
``(v) may require the individual to undergo appropriate substance abuse treatment.
``(B) Timing.--The State agency may comply with paragraph
(1) with respect to an individual--
``(i) within 90 days (or, at the option of the State, 180 days) after the effective date of this part, in the case of an individual who, as of such effective date, is a recipient of aid under the State plan approved under part A (as in effect immediately before such effective date); or
``(ii) within 30 days (or, at the option of the State, 90 days) after the individual is determined to be eligible for such assistance, in the case of any other individual.
``(3) Penalty for noncompliance by individual.--In addition to any other penalties required under the State program funded under this part, the State may reduce, by such amount as the State considers appropriate, the amount of assistance otherwise payable under the State program to a family that includes an individual who fails without good cause to comply with an individual responsibility plan signed by the individual.
``(4) State discretion.--The exercise of the authority of this subsection shall be within the sole discretion of the State.
``(c) Nondiscrimination Provisions.--The following provisions of law shall apply to any program or activity which receives funds provided under this part:
``(1) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.).
``(2) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794).
``(3) The Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).
``(4) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
``(d) Aliens.--For special rules relating to the treatment of aliens, see section 402 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
``SEC. 409. PENALTIES.
``(a) In General.--Subject to this section:
``(1) Use of grant in violation of this part.--
``(A) General penalty.--If an audit conducted under chapter 75 of title 31, United States Code, finds that an amount paid to a State under section 403 for a fiscal year has been used in violation of this part, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year quarter by the amount so used.
``(B) Enhanced penalty for intentional violations.--If the State does not prove to the satisfaction of the Secretary that the State did not intend to use the amount in violation of this part, the Secretary shall further reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year quarter by an amount equal to 5 percent of the State family assistance grant.
``(2) Failure to submit required report.--
``(A) In general.--If the Secretary determines that a State has not, within 1 month after the end of a fiscal quarter, submitted the report required by section 411(a) for the quarter, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 4 percent of the State family assistance grant.
``(B) Rescission of penalty.--The Secretary shall rescind a penalty imposed on a State under subparagraph (A) with respect to a report if the State submits the report before the end of the fiscal quarter that immediately succeeds the fiscal quarter for which the report was required.
``(3) Failure to satisfy minimum participation rates.--
``(A) In general.--If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with section 407(a) for the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not more than the applicable percentage of the State family assistance grant.
``(B) Applicable percentage defined.--As used in subparagraph (A), the term `applicable percentage' means, with respect to a State--
``(i) if a penalty was not imposed on the State under subparagraph (A) for the immediately preceding fiscal year, 5 percent; or
``(ii) if a penalty was imposed on the State under subparagraph (A) for the immediately preceding fiscal year, the lesser of--
``(I) the percentage by which the grant payable to the State under section 403(a)(1) was reduced for such preceding fiscal year, increased by 2 percentage points; or
``(II) 21 percent.
``(C) Penalty based on severity of failure.--The Secretary shall impose reductions under subparagraph (A) with respect to a fiscal year based on the degree of noncompliance, and may reduce the penalty if the noncompliance is due to circumstances that caused the State to become a needy State
(as defined in section 403(b)(6)) during the fiscal year.
``(4) Failure to participate in the income and eligibility verification system.--If the Secretary determines that a State program funded under this part is not participating during a fiscal year in the income and eligibility verification system required by section 1137, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not more than 2 percent of the State family assistance grant.
``(5) Failure to comply with paternity establishment and child support enforcement requirements under part d.--Notwithstanding any other provision of this Act, if the Secretary determines that the State agency that administers a program funded under this part does not enforce the penalties requested by the agency administering part D against recipients of assistance under the State program who fail to cooperate in establishing paternity or in establishing, modifying, or enforcing a child support order in accordance with such part and who do not qualify for any good cause or other exception established by the State under section 454(29), the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year (without regard to this section) by not more than 5 percent.
``(6) Failure to timely repay a federal loan fund for state welfare programs.--If the Secretary determines that a State has failed to repay any amount borrowed from the Federal Loan Fund for State Welfare Programs established under section 406 within the period of maturity applicable to the loan, plus any interest owed on the loan, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year quarter (without regard to this section) by the outstanding loan amount, plus the interest owed on the outstanding amount. The Secretary shall not forgive any outstanding loan amount or interest owed on the outstanding amount.
``(7) Failure of any state to maintain certain level of historic effort.--
``(A) In general.--The Secretary shall reduce the grant payable to the State under section 403(a)(1) for fiscal year 1998, 1999, 2000, 2001, 2002, or 2003 by the amount (if any) by which qualified State expenditures for the then immediately preceding fiscal year are less than the applicable percentage of historic State expenditures with respect to such preceding fiscal year.
``(B) Definitions.--As used in this paragraph:
``(i) Qualified state expenditures.--
``(I) In general.--The term `qualified State expenditures' means, with respect to a State and a fiscal year, the total expenditures by the State during the fiscal year, under all State programs, for any of the following with respect to eligible families:
``(aa) Cash assistance.
``(bb) Child care assistance.
``(cc) Educational activities designed to increase self-sufficiency, job training, and work, excluding any expenditure for public education in the State except expenditures which involve the provision of services or assistance to a member of an eligible family which is not generally available to persons who are not members of an eligible family.
``(dd) Administrative costs in connection with the matters described in items (aa), (bb), (cc), and (ee), but only to the extent that such costs do not exceed 15 percent of the total amount of qualified State expenditures for the fiscal year.
``(ee) Any other use of funds allowable under section 404(a)(1).
``(II) Exclusion of transfers from other state and local programs.--Such term does not include expenditures under any State or local program during a fiscal year, except to the extent that--
``(aa) the expenditures exceed the amount expended under the State or local program in the fiscal year most recently ending before the date of the enactment of this part; or
``(bb) the State is entitled to a payment under former section 403 (as in effect immediately before such date of enactment) with respect to the expenditures.
``(III) Eligible families.--As used in subclause (I), the term `eligible families' means families eligible for assistance under the State program funded under this part, and families that would be eligible for such assistance but for the application of section 408(a)(7) of this Act or section 402 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
``(ii) Applicable percentage.--The term `applicable percentage' means for fiscal years 1997 through 2002, 80 percent (or, if the State meets the requirements of section 407(a) for the fiscal year, 75 percent) reduced (if appropriate) in accordance with subparagraph (C)(ii).
``(iii) Historic state expenditures.--The term `historic State expenditures' means, with respect to a State, the lesser of--
``(I) the expenditures by the State under parts A and F (as in effect during fiscal year 1994) for fiscal year 1994; or
``(II) the amount which bears the same ratio to the amount described in subclause (I) as--
``(aa) the State family assistance grant, plus the total amount required to be paid to the State under former section 403 for fiscal year 1994 with respect to amounts expended by the State for child care under subsection (g) or (i) of section 402 (as in effect during fiscal year 1994); bears to
``(bb) the total amount required to be paid to the State under former section 403 (as in effect during fiscal year 1994) for fiscal year 1994.
Such term does not include any expenditures under the State plan approved under part A (as so in effect) on behalf of individuals covered by a tribal family assistance plan approved under section 412, as determined by the Secretary.
``(iv) Expenditures by the state.--The term `expenditures by the State' does not include--
``(I) any expenditures from amounts made available by the Federal Government;
``(II) any State funds expended for the medicaid program under title XIX;
``(III) any State funds which are used to match Federal funds; or
``(IV) any State funds which are expended as a condition of receiving Federal funds under Federal programs other than under this part.
Notwithstanding subclause (IV) of the preceding sentence, such term includes expenditures by a State for child care in a fiscal year to the extent that the total amount of such expenditures does not exceed an amount equal to the amount of State expenditures in fiscal year 1994 or 1995 (whichever is greater) that equal the non-Federal share for the programs described in section 418(a)(1)(A).
``(8) Substantial noncompliance of state child support enforcement program with requirements of part d.--
``(A) In general.--If a State program operated under part D is found as a result of a review conducted under section 452(a)(4) not to have complied substantially with the requirements of such part for any quarter, and the Secretary determines that the program is not complying substantially with such requirements at the time the finding is made, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the quarter and each subsequent quarter that ends before the 1st quarter throughout which the program is found to be in substantial compliance with such requirements by--
``(i) not less than 1 nor more than 2 percent;
``(ii) not less than 2 nor more than 3 percent, if the finding is the 2nd consecutive such finding made as a result of such a review; or
``(iii) not less than 3 nor more than 5 percent, if the finding is the 3rd or a subsequent consecutive such finding made as a result of such a review.
``(B) Disregard of noncompliance which is of a technical nature.--For purposes of subparagraph (A) and section 452(a)(4), a State which is not in full compliance with the requirements of this part shall be determined to be in substantial compliance with such requirements only if the Secretary determines that any noncompliance with such requirements is of a technical nature which does not adversely affect the performance of the State's program operated under part D.
``(9) Failure to comply with 5-year limit on assistance.--If the Secretary determines that a State has not complied with section 408(a)(1)(B) during a fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant.
``(10) Failure of state receiving amounts from contingency fund to maintain 100 percent of historic effort.--If, at the end of any fiscal year during which amounts from the Contingency Fund for State Welfare Programs have been paid to a State, the Secretary finds that the expenditures under the State program funded under this part for the fiscal year
(excluding any amounts made available by the Federal Government) are less than 100 percent of historic State expenditures (as defined in paragraph (7)(B)(iii) of this subsection), the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by the total of the amounts so paid to the State.
``(11) Failure to maintain assistance to adult single custodial parent who cannot obtain child care for child under age 6.--
``(A) In general.--If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has violated section 407(e)(2) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not more than 5 percent of the State family assistance grant.
``(B) Penalty based on severity of failure.--The Secretary shall impose reductions under subparagraph (A) with respect to a fiscal year based on the degree of noncompliance.
``(12) Failure to expend additional state funds to replace grant reductions.--If the grant payable to a State under section 403(a)(1) for a fiscal year is reduced by reason of this subsection, the State shall, during the immediately succeeding fiscal year, expend under the State program funded under this part an amount equal to the total amount of such reductions.
``(b) Reasonable Cause Exception.--
``(1) In general.--The Secretary may not impose a penalty on a State under subsection (a) with respect to a requirement if the Secretary determines that the State has reasonable cause for failing to comply with the requirement.
``(2) Exception.--Paragraph (1) of this subsection shall not apply to any penalty under paragraph (7) or (8) of subsection (a).
``(c) Corrective Compliance Plan.--
``(1) In general.--
``(A) Notification of violation.--Before imposing a penalty against a State under subsection (a) with respect to a violation of this part, the Secretary shall notify the State of the violation and allow the State the opportunity to enter into a corrective compliance plan in accordance with this subsection which outlines how the State will correct the violation and how the State will insure continuing compliance with this part.
``(B) 60-day period to propose a corrective compliance plan.--During the 60-day period that begins on the date the State receives a notice provided under subparagraph (A) with respect to a violation, the State may submit to the Federal Government a corrective compliance plan to correct the violation.
``(C) Consultation about modifications.--During the 60-day period that begins with the date the Secretary receives a corrective compliance plan submitted by a State in accordance with subparagraph (B), the Secretary may consult with the State on modifications to the plan.
``(D) Acceptance of plan.-- A corrective compliance plan submitted by a State in accordance with subparagraph (B) is deemed to be accepted by the Secretary if the Secretary does not accept or reject the plan during 60-day period that begins on the date the plan is submitted.
``(2) Effect of correcting violation.--The Secretary may not impose any penalty under subsection (a) with respect to any violation covered by a State corrective compliance plan accepted by the Secretary if the State corrects the violation pursuant to the plan.
``(3) Effect of failing to correct violation.--The Secretary shall assess some or all of a penalty imposed on a State under subsection (a) with respect to a violation if the State does not, in a timely manner, correct the violation pursuant to a State corrective compliance plan accepted by the Secretary.
``(4) Inapplicability to failure to timely repay a federal loan fund for a state welfare program.--This subsection shall not apply to the imposition of a penalty against a State under subsection (a)(6).
``(d) Limitation on Amount of Penalties.--
``(1) In general.--In imposing the penalties described in subsection (a), the Secretary shall not reduce any quarterly payment to a State by more than 25 percent.
``(2) Carryforward of unrecovered penalties.--To the extent that paragraph (1) of this subsection prevents the Secretary from recovering during a fiscal year the full amount of penalties imposed on a State under subsection (a) of this section for a prior fiscal year, the Secretary shall apply any remaining amount of such penalties to the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year.
``SEC. 410. APPEAL OF ADVERSE DECISION.
``(a) In General.--Within 5 days after the date the Secretary takes any adverse action under this part with respect to a State, the Secretary shall notify the chief executive officer of the State of the adverse action, including any action with respect to the State plan submitted under section 402 or the imposition of a penalty under section 409.
``(b) Administrative Review.--
``(1) In general.--Within 60 days after the date a State receives notice under subsection (a) of an adverse action, the State may appeal the action, in whole or in part, to the Departmental Appeals Board established in the Department of Health and Human Services (in this section referred to as the
`Board') by filing an appeal with the Board.
``(2) Procedural rules.--The Board shall consider an appeal filed by a State under paragraph (1) on the basis of such documentation as the State may submit and as the Board may require to support the final decision of the Board. In deciding whether to uphold an adverse action or any portion of such an action, the Board shall conduct a thorough review of the issues and take into account all relevant evidence. The Board shall make a final determination with respect to an appeal filed under paragraph (1) not less than 60 days after the date the appeal is filed.
``(c) Judicial Review of Adverse Decision.--
``(1) In general.--Within 90 days after the date of a final decision by the Board under this section with respect to an adverse action taken against a State, the State may obtain judicial review of the final decision (and the findings incorporated into the final decision) by filing an action in--
``(A) the district court of the United States for the judicial district in which the principal or headquarters office of the State agency is located; or
``(B) the United States District Court for the District of Columbia.
``(2) Procedural rules.--The district court in which an action is filed under paragraph (1) shall review the final decision of the Board on the record established in the administrative proceeding, in accordance with the standards of review prescribed by subparagraphs (A) through (E) of section 706(2) of title 5, United States Code. The review shall be on the basis of the documents and supporting data submitted to the Board.
``SEC. 411. DATA COLLECTION AND REPORTING.
``(a) Quarterly Reports by States.--
``(1) General reporting requirement.--
``(A) Contents of report.--Each eligible State shall collect on a monthly basis, and report to the Secretary on a quarterly basis, the following disaggregated case record information on the families receiving assistance under the State program funded under this part:
``(i) The county of residence of the family.
``(ii) Whether a child receiving such assistance or an adult in the family is disabled.
``(iii) The ages of the members of such families.
``(iv) The number of individuals in the family, and the relation of each family member to the youngest child in the family.
``(v) The employment status and earnings of the employed adult in the family.
``(vi) The marital status of the adults in the family, including whether such adults have never married, are widowed, or are divorced.
``(vii) The race and educational status of each adult in the family.
``(viii) The race and educational status of each child in the family.
``(ix) Whether the family received subsidized housing, medical assistance under the State plan approved under title XIX, food stamps, or subsidized child care, and if the latter 2, the amount received.
``(x) The number of months that the family has received each type of assistance under the program.
``(xi) If the adults participated in, and the number of hours per week of participation in, the following activities:
``(I) Education.
``(II) Subsidized private sector employment.
``(III) Unsubsidized employment.
``(IV) Public sector employment, work experience, or community service.
``(V) Job search.
``(VI) Job skills training or on-the-job training.
``(VII) Vocational education.
``(xii) Information necessary to calculate participation rates under section 407.
``(xiii) The type and amount of assistance received under the program, including the amount of and reason for any reduction of assistance (including sanctions).
``(xiv) Any amount of unearned income received by any member of the family.
``(xv) The citizenship of the members of the family.
``(xvi) From a sample of closed cases, whether the family left the program, and if so, whether the family left due to--
``(I) employment;
``(II) marriage;
``(III) the prohibition set forth in section 408(a)(7);
``(IV) sanction; or
``(V) State policy.
``(B) Use of estimates.--
``(i) Authority.--A State may comply with subparagraph (A) by submitting an estimate which is obtained through the use of scientifically acceptable sampling methods approved by the Secretary.
``(ii) Sampling and other methods.--The Secretary shall provide the States with such case sampling plans and data collection procedures as the Secretary deems necessary to produce statistically valid estimates of the performance of State programs funded under this part. The Secretary may develop and implement procedures for verifying the quality of data submitted by the States.
``(2) Report on use of federal funds to cover administrative costs and overhead.--The report required by paragraph (1) for a fiscal quarter shall include a statement of the percentage of the funds paid to the State under this part for the quarter that are used to cover administrative costs or overhead.
``(3) Report on state expenditures on programs for needy families.--The report required by paragraph (1) for a fiscal quarter shall include a statement of the total amount expended by the State during the quarter on programs for needy families.
``(4) Report on noncustodial parents participating in work activities.--The report required by paragraph (1) for a fiscal quarter shall include the number of noncustodial parents in the State who participated in work activities (as defined in section 407(d)) during the quarter.
``(5) Report on transitional services.--The report required by paragraph (1) for a fiscal quarter shall include the total amount expended by the State during the quarter to provide transitional services to a family that has ceased to receive assistance under this part because of employment, along with a description of such services.
``(6) Regulations.--The Secretary shall prescribe such regulations as may be necessary to define the data elements with respect to which reports are required by this subsection.
``(b) Annual Reports to the Congress by the Secretary.--Not later than 6 months after the end of fiscal year 1997, and each fiscal year thereafter, the Secretary shall transmit to the Congress a report describing--
``(1) whether the States are meeting--
``(A) the participation rates described in section 407(a); and
``(B) the objectives of--
``(i) increasing employment and earnings of needy families, and child support collections; and
``(ii) decreasing out-of-wedlock pregnancies and child poverty;
``(2) the demographic and financial characteristics of families applying for assistance, families receiving assistance, and families that become ineligible to receive assistance;
``(3) the characteristics of each State program funded under this part; and
``(4) the trends in employment and earnings of needy families with minor children living at home.
``SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN
TRIBES.
``(a) Grants for Indian Tribes.--
``(1) Tribal family assistance grant.--
``(A) In general.--For each of fiscal years 1997, 1998, 1999, 2000, 2001, and 2002, the Secretary shall pay to each Indian tribe that has an approved tribal family assistance plan a tribal family assistance grant for the fiscal year in an amount equal to the amount determined under subparagraph
(B), and shall reduce the grant payable under section 403(a)(1) to any State in which lies the service area or areas of the Indian tribe by that portion of the amount so determined that is attributable to expenditures by the State.
``(B) Amount determined.--
``(i) In general.--The amount determined under this subparagraph is an amount equal to the total amount of the Federal payments to a State or States under section 403 (as in effect during such fiscal year) for fiscal year 1994 attributable to expenditures (other than child care expenditures) by the State or States under parts A and F (as so in effect) for fiscal year 1994 for Indian families residing in the service area or areas identified by the Indian tribe pursuant to subsection (b)(1)(C) of this section.
``(ii) Use of state submitted data.--
``(I) In general.--The Secretary shall use State submitted data to make each determination under clause (i).
``(II) Disagreement with determination.--If an Indian tribe or tribal organization disagrees with State submitted data described under subclause (I), the Indian tribe or tribal organization may submit to the Secretary such additional information as may be relevant to making the determination under clause (i) and the Secretary may consider such information before making such determination.
``(2) Grants for indian tribes that received jobs funds.--
``(A) In general.--The Secretary shall pay to each eligible Indian tribe for each of fiscal years 1997, 1998, 1999, 2000, 2001, and 2002 a grant in an amount equal to the amount received by the Indian tribe in fiscal year 1994 under section 482(i) (as in effect during fiscal year 1994).
``(B) Eligible indian tribe.--For purposes of subparagraph
(A), the term `eligible Indian tribe' means an Indian tribe or Alaska Native organization that conducted a job opportunities and basic skills training program in fiscal year 1995 under section 482(i) (as in effect during fiscal year 1995).
``(C) Use of grant.--Each Indian tribe to which a grant is made under this paragraph shall use the grant for the purpose of operating a program to make work activities available to members of the Indian tribe.
``(D) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $7,638,474 for each fiscal year specified in subparagraph (A) for grants under subparagraph (A).
``(b) 3-Year Tribal Family Assistance Plan.--
``(1) In general.--Any Indian tribe that desires to receive a tribal family assistance grant shall submit to the Secretary a 3-year tribal family assistance plan that--
``(A) outlines the Indian tribe's approach to providing welfare-related services for the 3-year period, consistent with this section;
``(B) specifies whether the welfare-related services provided under the plan will be provided by the Indian tribe or through agreements, contracts, or compacts with intertribal consortia, States, or other entities;
``(C) identifies the population and service area or areas to be served by such plan;
``(D) provides that a family receiving assistance under the plan may not receive duplicative assistance from other State or tribal programs funded under this part;
``(E) identifies the employment opportunities in or near the service area or areas of the Indian tribe and the manner in which the Indian tribe will cooperate and participate in enhancing such opportunities for recipients of assistance under the plan consistent with any applicable State standards; and
``(F) applies the fiscal accountability provisions of section 5(f)(1) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450c(f)(1)), relating to the submission of a single-agency audit report required by chapter 75 of title 31, United States Code.
``(2) Approval.--The Secretary shall approve each tribal family assistance plan submitted in accordance with paragraph
(1).
``(3) Consortium of tribes.--Nothing in this section shall preclude the development and submission of a single tribal family assistance plan by the participating Indian tribes of an intertribal consortium.
``(c) Minimum Work Participation Requirements and Time Limits.--The Secretary, with the participation of Indian tribes, shall establish for each Indian tribe receiving a grant under this section minimum work participation requirements, appropriate time limits for receipt of welfare-related services under the grant, and penalties against individuals--
``(1) consistent with the purposes of this section;
``(2) consistent with the economic conditions and resources available to each tribe; and
``(3) similar to comparable provisions in section 407(e).
``(d) Emergency Assistance.--Nothing in this section shall preclude an Indian tribe from seeking emergency assistance from any Federal loan program or emergency fund.
``(e) Accountability.--Nothing in this section shall be construed to limit the ability of the Secretary to maintain program funding accountability consistent with--
``(1) generally accepted accounting principles; and
``(2) the requirements of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).
``(f) Penalties.--
``(1) Subsections (a)(1), (a)(6), and (b) of section 409, shall apply to an Indian tribe with an approved tribal assistance plan in the same manner as such subsections apply to a State.
``(2) Section 409(a)(3) shall apply to an Indian tribe with an approved tribal assistance plan by substituting `meet minimum work participation requirements established under section 412(c)' for `comply with section 407(a)'.
``(g) Data Collection and Reporting.--Section 411 shall apply to an Indian tribe with an approved tribal family assistance plan.
``(h) Special Rule for Indian Tribes in Alaska.--
``(1) In general.--Notwithstanding any other provision of this section, and except as provided in paragraph (2), an Indian tribe in the State of Alaska that receives a tribal family assistance grant under this section shall use the grant to operate a program in accordance with requirements comparable to the requirements applicable to the program of the State of Alaska funded under this part. Comparability of programs shall be established on the basis of program criteria developed by the Secretary in consultation with the State of Alaska and such Indian tribes.
``(2) Waiver.--An Indian tribe described in paragraph (1) may apply to the appropriate State authority to receive a waiver of the requirement of paragraph (1).
``SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.
``(a) Research.--The Secretary shall conduct research on the benefits, effects, and costs of operating different State programs funded under this part, including time limits relating to eligibility for assistance. The research shall include studies on the effects of different programs and the operation of such programs on welfare dependency, illegitimacy, teen pregnancy, employment rates, child well-being, and any other area the Secretary deems appropriate. The Secretary shall also conduct research on the costs and benefits of State activities under section 409.
``(b) Development and Evaluation of Innovative Approaches To Reducing Welfare Dependency and Increasing Child Well-Being.--
``(1) In general.--The Secretary may assist States in developing, and shall evaluate, innovative approaches for reducing welfare dependency and increasing the well-being of minor children living at home with respect to recipients of assistance under programs funded under this part. The Secretary may provide funds for training and technical assistance to carry out the approaches developed pursuant to this paragraph.
``(2) Evaluations.--In performing the evaluations under paragraph (1), the Secretary shall, to the maximum extent feasible, use random assignment as an evaluation methodology.
``(c) Dissemination of Information.--The Secretary shall develop innovative methods of disseminating information on any research, evaluations, and studies conducted under this section, including the facilitation of the sharing of information and best practices among States and localities through the use of computers and other technologies.
``(d) Annual Ranking of States and Review of Most and Least Successful Work Programs.--
``(1) Annual ranking of states.--The Secretary shall rank annually the States to which grants are paid under section 403 in the order of their success in placing recipients of assistance under the State program funded under this part into long-term private sector jobs, reducing the overall welfare caseload, and, when a practicable method for calculating this information becomes available, diverting individuals from formally applying to the State program and receiving assistance. In ranking States under this subsection, the Secretary shall take into account the average number of minor children living at home in families in the State that have incomes below the poverty line and the amount of funding provided each State for such families.
``(2) Annual review of most and least successful work programs.--The Secretary shall review the programs of the 3 States most recently ranked highest under paragraph (1) and the 3 States most recently ranked lowest under paragraph (1) that provide parents with work experience, assistance in finding employment, and other work preparation activities and support services to enable the families of such parents to leave the program and become self-sufficient.
``(e) Annual Ranking of States and Review of Issues Relating to Out-of-Wedlock Births.--
``(1) Annual ranking of states.--
``(A) In general.--The Secretary shall annually rank States to which grants are made under section 403 based on the following ranking factors:
``(i) Absolute out-of-wedlock ratios.--The ratio represented by--
``(I) the total number of out-of-wedlock births in families receiving assistance under the State program under this part in the State for the most recent fiscal year for which information is available; over
``(II) the total number of births in families receiving assistance under the State program under this part in the State for such year.
``(ii) Net changes in the out-of-wedlock ratio.--The difference between the ratio described in subparagraph (A)(i) with respect to a State for the most recent fiscal year for which such information is available and the ratio with respect to the State for the immediately preceding year.
``(2) Annual review.--The Secretary shall review the programs of the 5 States most recently ranked highest under paragraph (1) and the 5 States most recently ranked the lowest under paragraph (1).
``(f) State-Initiated Evaluations.--A State shall be eligible to receive funding to evaluate the State program funded under this part if--
``(1) the State submits a proposal to the Secretary for the evaluation;
``(2) the Secretary determines that the design and approach of the evaluation is rigorous and is likely to yield information that is credible and will be useful to other States, and
``(3) unless otherwise waived by the Secretary, the State contributes to the cost of the evaluation, from non-Federal sources, an amount equal to at least 10 percent of the cost of the evaluation.
``(g) Report on Circumstances of Certain Children and Families.--
``(1) In general.--Beginning 3 years after the date of the enactment of this Act, the Secretary of Health and Human Services shall prepare and submit to the Committees on Ways and Means and on Economic and Educational Opportunities of the House of Representatives and to the Committees on Finance and on Labor and Resources of the Senate annual reports that examine in detail the matters described in paragraph (2) with respect to each of the following groups for the period after such enactment:
``(A) Individuals who were children in families that have become ineligible for assistance under a State program funded under this part by reason of having reached a time limit on the provision of such assistance.
``(B) Children born after such date of enactment to parents who, at the time of such birth, had not attained 20 years of age.
``(C) Individuals who, after such date of enactment, became parents before attaining 20 years of age.
``(2) Matters described.--The matters described in this paragraph are the following:
``(A) The percentage of each group that has dropped out of secondary school (or the equivalent), and the percentage of each group at each level of educational attainment.
``(B) The percentage of each group that is employed.
``(C) The percentage of each group that has been convicted of a crime or has been adjudicated as a delinquent.
``(D) The rate at which the members of each group are born, or have children, out-of-wedlock, and the percentage of each group that is married.
``(E) The percentage of each group that continues to participate in State programs funded under this part.
``(F) The percentage of each group that has health insurance provided by a private entity (broken down by whether the insurance is provided through an employer or otherwise), the percentage that has health insurance provided by an agency of government, and the percentage that does not have health insurance.
``(G) The average income of the families of the members of each group.
``(H) Such other matters as the Secretary deems appropriate.
``(h) Funding of Studies and Demonstrations.--
``(1) In general.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $15,000,000 for each of fiscal years 1997 through 2002 for the purpose of paying--
``(A) the cost of conducting the research described in subsection (a);
``(B) the cost of developing and evaluating innovative approaches for reducing welfare dependency and increasing the well-being of minor children under subsection (b);
``(C) the Federal share of any State-initiated study approved under subsection (f); and
``(D) an amount determined by the Secretary to be necessary to operate and evaluate demonstration projects, relating to this part, that are in effect or approved under section 1115 as of September 30, 1995, and are continued after such date.
``(2) Allocation.--Of the amount appropriated under paragraph (1) for a fiscal year--
``(A) 50 percent shall be allocated for the purposes described in subparagraphs (A) and (B) of paragraph (1), and
``(B) 50 percent shall be allocated for the purposes described in subparagraphs (C) and (D) of paragraph (1).
``(3) Demonstrations of innovative strategies.--The Secretary may implement and evaluate demonstrations of innovative and promising strategies which--
``(A) provide one-time capital funds to establish, expand, or replicate programs;
``(B) test performance-based grant-to-loan financing in which programs meeting performance targets receive grants while programs not meeting such targets repay funding on a prorated basis; and
``(C) test strategies in multiple States and types of communities.
``(i) Child Poverty Rates.--
``(1) In general.--Not later than 90 days after the date of the enactment of this part, and annually thereafter, the chief executive officer of each State shall submit to the Secretary a statement of the child poverty rate in the State as of such date of enactment or the date of the most recent prior statement under this paragraph.
``(2) Submission of corrective action plan.--Not later than 90 days after the date a State submits a statement under paragraph (1) which indicates that, as a result of the amendments made by section 103 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the child poverty rate of the State has increased by 5 percent or more since the most recent prior statement under paragraph (1), the State shall prepare and submit to the Secretary a corrective action plan in accordance with paragraph (3).
``(3) Contents of plan.--A corrective action plan submitted under paragraph (2) shall outline that manner in which the State will reduce the child poverty rate in the State. The plan shall include a description of the actions to be taken by the State under such plan.
``(4) Compliance with plan.--A State that submits a corrective action plan that the Secretary has found contains the information required by this subsection shall implement the corrective action plan until the State determines that the child poverty rate in the State is less than the lowest child poverty rate on the basis of which the State was required to submit the corrective action plan.
``(5) Methodology.--The Secretary shall prescribe regulations establishing the methodology by which a State shall determine the child poverty rate in the State. The methodology shall take into account factors including the number of children who receive free or reduced-price lunches, the number of food stamp households, and the county-by-county estimates of children in poverty as determined by the Census Bureau.
``SEC. 414. STUDY BY THE CENSUS BUREAU.
``(a) In General.--The Bureau of the Census shall continue to collect data on the 1992 and 1993 panels of the Survey of Income and Program Participation as necessary to obtain such information as will enable interested persons to evaluate the impact of the amendments made by title I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 on a random national sample of recipients of assistance under State programs funded under this part and (as appropriate) other low income families, and in doing so, shall pay particular attention to the issues of out-of-wedlock birth, welfare dependency, the beginning and end of welfare spells, and the causes of repeat welfare spells, and shall obtain information about the status of children participating in such panels.
``(b) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 for payment to the Bureau of the Census to carry out subsection (a).
``SEC. 415. WAIVERS.
``(a) Continuation of Waivers.--
``(1) Waivers in effect on date of enactment of welfare reform.--
``(A) In general.--Except as provided in subparagraph (B), if any waiver granted to a State under section 1115 of this Act or otherwise which relates to the provision of assistance under a State plan under this part (as in effect on September 30, 1996) is in effect as of the date of the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the amendments made by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (other than by section 103(c) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996) shall not apply with respect to the State before the expiration (determined without regard to any extensions) of the waiver to the extent such amendments are inconsistent with the waiver.
``(B) Financing limitation.--Notwithstanding any other provision of law, beginning with fiscal year 1996, a State operating under a waiver described in subparagraph (A) shall be entitled to payment under section 403 for the fiscal year, in lieu of any other payment provided for in the waiver.
``(2) Waivers granted subsequently.--
``(A) In general.--Except as provided in subparagraph (B), if any waiver granted to a State under section 1115 of this Act or otherwise which relates to the provision of assistance under a State plan under this part (as in effect on September 30, 1996) is submitted to the Secretary before the date of the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and approved by the Secretary on or before July 1, 1997, and the State demonstrates to the satisfaction of the Secretary that the waiver will not result in Federal expenditures under title IV of this Act (as in effect without regard to the amendments made by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996) that are greater than would occur in the absence of the waiver, the amendments made by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (other than by section 103(c) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996) shall not apply with respect to the State before the expiration (determined without regard to any extensions) of the waiver to the extent the amendments made by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 are inconsistent with the waiver.
``(B) No effect on new work requirements.--Notwithstanding subparagraph (A), a waiver granted under section 1115 or otherwise which relates to the provision of assistance under a State program funded under this part (as in effect on September 30, 1996) shall not affect the applicability of section 407 to the State.
``(b) State Option To Terminate Waiver.--
``(1) In general.--A State may terminate a waiver described in subsection (a) before the expiration of the waiver.
``(2) Report.--A State which terminates a waiver under paragraph (1) shall submit a report to the Secretary summarizing the waiver and any available information concerning the result or effect of the waiver.
``(3) Hold harmless provision.--
``(A) In general.--Notwithstanding any other provision of law, a State that, not later than the date described in subparagraph (B) of this paragraph, submits a written request to terminate a waiver described in subsection (a) shall be held harmless for accrued cost neutrality liabilities incurred under the waiver.
``(B) Date described.--The date described in this subparagraph is 90 days following the adjournment of the first regular session of the State legislature that begins after the date of the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
``(c) Secretarial Encouragement of Current Waivers.--The Secretary shall encourage any State operating a waiver described in subsection (a) to continue the waiver and to evaluate, using random sampling and other characteristics of accepted scientific evaluations, the result or effect of the waiver.
``(d) Continuation of Individual Waivers.--A State may elect to continue 1 or more individual waivers described in subsection (a).
``SEC. 416. ADMINISTRATION.
``The programs under this part and part D shall be administered by an Assistant Secretary for Family Support within the Department of Health and Human Services, who shall be appointed by the President, by and with the advice and consent of the Senate, and who shall be in addition to any other Assistant Secretary of Health and Human Services provided for by law, and the Secretary shall reduce the Federal workforce within the Department of Health and Human Services by an amount equal to the sum of 75 percent of the full-time equivalent positions at such Department that relate to any direct spending program, or any program funded through discretionary spending, that has been converted into a block grant program under the Personal Responsibility and Work Opportunity Act of 1996 and the amendments made by such Act, and by an amount equal to 75 percent of that portion of the total full-time equivalent departmental management positions at such Department that bears the same relationship to the amount appropriated for any direct spending program, or any program funded through discretionary spending, that has been converted into a block grant program under the Personal Responsibility and Work Opportunity Act of 1996 and the amendments made by such Act, as such amount relates to the total amount appropriated for use by such Department, and, notwithstanding any other provision of law, the Secretary shall take such actions as may be necessary, including reductions in force actions, consistent with sections 3502 and 3595 of title 5, United States Code, to reduce the full-time equivalent positions within the Department of Health and Human Services by 245 full-time equivalent positions related to the program converted into a block grant under the amendment made by section 2103 of the Personal Responsibility and Work Opportunity Act of 1996, and by 60 full-time equivalent managerial positions in the Department.
``SEC. 417. LIMITATION ON FEDERAL AUTHORITY.
``No officer or employee of the Federal Government may regulate the conduct of States under this part or enforce any provision of this part, except to the extent expressly provided in this part.''; and
(2) by inserting after such section 418 the following:
``SEC. 419. DEFINITIONS.
``As used in this part:
``(1) Adult.--The term `adult' means an individual who is not a minor child.
``(2) Minor child.--The term `minor child' means an individual who--
``(A) has not attained 18 years of age; or
``(B) has not attained 19 years of age and is a full-time student in a secondary school (or in the equivalent level of vocational or technical training).
``(3) Fiscal year.--The term `fiscal year' means any 12-month period ending on September 30 of a calendar year.
``(4) Indian, indian tribe, and tribal organization.--
``(A) In general.--Except as provided in subparagraph (B), the terms `Indian', `Indian tribe', and `tribal organization' have the meaning given such terms by section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).
``(B) Special rule for indian tribes in alaska.--The term
`Indian tribe' means, with respect to the State of Alaska, only the Metlakatla Indian Community of the Annette Islands Reserve and the following Alaska Native regional nonprofit corporations:
``(i) Arctic Slope Native Association.
``(ii) Kawerak, Inc.
``(iii) Maniilaq Association.
``(iv) Association of Village Council Presidents.
``(v) Tanana Chiefs Conference.
``(vi) Cook Inlet Tribal Council.
``(vii) Bristol Bay Native Association.
``(viii) Aleutian and Pribilof Island Association.
``(ix) Chugachmuit.
``(x) Tlingit Haida Central Council.
``(xi) Kodiak Area Native Association.
``(xii) Copper River Native Association.
``(5) State.--Except as otherwise specifically provided, the term `State' means the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa.''.
(b) Grants to Outlying Areas.--Section 1108 (42 U.S.C. 1308) is amended--
(1) by striking subsections (d) and (e);
(2) by redesignating subsection (c) as subsection (f); and
(3) by striking all that precedes subsection (c) and inserting the following:
``SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN
ISLANDS, GUAM, AND AMERICAN SAMOA; LIMITATION
ON TOTAL PAYMENTS.
``(a) Limitation on Total Payments to Each Territory.--Notwithstanding any other provision of this Act, the total amount certified by the Secretary of Health and Human Services under titles I, X, XIV, and XVI, under parts A and E of title IV, and under subsection (b) of this section, for payment to any territory for a fiscal year shall not exceed the ceiling amount for the territory for the fiscal year.
``(b) Entitlement to Matching Grant.--
``(1) In general.--Each territory shall be entitled to receive from the Secretary for each fiscal year a grant in an amount equal to 75 percent of the amount (if any) by which--
``(A) the total expenditures of the territory during the fiscal year under the territory programs funded under parts A and E of title IV; exceeds
``(B) the sum of--
``(i) the amount of the family assistance grant payable to the territory without regard to section 409; and
``(ii) the total amount expended by the territory during fiscal year 1995 pursuant to parts A and F of title IV (as so in effect), other than for child care.
``(2) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal years 1997 through 2002, such sums as are necessary for grants under this paragraph.
``(c) Definitions.--As used in this section:
``(1) Territory.--The term `territory' means Puerto Rico, the Virgin Islands, Guam, and American Samoa.
``(2) Ceiling amount.--The term `ceiling amount' means, with respect to a territory and a fiscal year, the mandatory ceiling amount with respect to the territory, reduced for the fiscal year in accordance with subsection (e), and reduced by the amount of any penalty imposed on the territory under any provision of law specified in subsection (a) during the fiscal year.
``(3) Family assistance grant.--The term `family assistance grant' has the meaning given such term by section 403(a)(1)(B).
``(4) Mandatory ceiling amount.--The term `mandatory ceiling amount' means--
``(A) $107,255,000 with respect to for Puerto Rico;
``(B) $4,686,000 with respect to Guam;
``(C) $3,554,000 with respect to the Virgin Islands; and
``(D) $1,000,000 with respect to American Samoa.
``(5) Total amount expended by the territory.--The term
`total amount expended by the territory'--
``(A) does not include expenditures during the fiscal year from amounts made available by the Federal Government; and
``(B) when used with respect to fiscal year 1995, also does not include--
``(i) expenditures during fiscal year 1995 under subsection
(g) or (i) of section 402 (as in effect on September 30, 1995); or
``(ii) any expenditures during fiscal year 1995 for which the territory (but for section 1108, as in effect on September 30, 1995) would have received reimbursement from the Federal Government.
``(d) Authority to Transfer Funds To Certain Programs.--A territory to which an amount is paid under subsection (b) of this section may use the amount in accordance with section 404(d).
``(e) Maintenance of Effort.--The ceiling amount with respect to a territory shall be reduced for a fiscal year by an amount equal to the amount (if any) by which--
``(1) the total amount expended by the territory under all programs of the territory operated pursuant to the provisions of law specified in subsection (a) (as such provisions were in effect for fiscal year 1995) for fiscal year 1995; exceeds
``(2) the total amount expended by the territory under all programs of the territory that are funded under the provisions of law specified in subsection (a) for the fiscal year that immediately precedes the fiscal year referred to in the matter preceding paragraph (1).''.
(c) Elimination of Child Care Programs Under the Social Security Act.--
(1) AFDC and transitional child care programs.--Section 402
(42 U.S.C. 602) is amended by striking subsection (g).
(2) At-risk child care program.--
(A) Authorization.--Section 402 (42 U.S.C. 602) is amended by striking subsection (i).
(B) Funding provisions.--Section 403 (42 U.S.C. 603) is amended by striking subsection (n).
SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR
PRIVATE ORGANIZATIONS.
(a) In General.--
(1) State options.--A State may--
(A) administer and provide services under the programs described in subparagraphs (A) and (B)(i) of paragraph (2) through contracts with charitable, religious, or private organizations; and
(B) provide beneficiaries of assistance under the programs described in subparagraphs (A) and (B)(ii) of paragraph (2) with certificates, vouchers, or other forms of disbursement which are redeemable with such organizations.
(2) Programs described.--The programs described in this paragraph are the following programs:
(A) A State program funded under part A of title IV of the Social Security Act (as amended by section 103(a) of this Act).
(B) Any other program established or modified under title I or II of this Act, that--
(i) permits contracts with organizations; or
(ii) permits certificates, vouchers, or other forms of disbursement to be provided to beneficiaries, as a means of providing assistance.
(b) Religious Organizations.--The purpose of this section is to allow States to contract with religious organizations, or to allow religious organizations to accept certificates, vouchers, or other forms of disbursement under any program described in subsection (a)(2), on the same basis as any other nongovernmental provider without impairing the religious character of such organizations, and without diminishing the religious freedom of beneficiaries of assistance funded under such program.
(c) Nondiscrimination Against Religious Organizations.--In the event a State exercises its authority under subsection
(a), religious organizations are eligible, on the same basis as any other private organization, as contractors to provide assistance, or to accept certificates, vouchers, or other forms of disbursement, under any program described in subsection (a)(2) so long as the programs are implemented consistent with the Establishment Clause of the United States Constitution. Except as provided in subsection (k), neither the Federal Government nor a State receiving funds under such programs shall discriminate against an organization which is or applies to be a contractor to provide assistance, or which accepts certificates, vouchers, or other forms of disbursement, on the basis that the organization has a religious character.
(d) Religious Character and Freedom.--
(1) Religious organizations.--A religious organization with a contract described in subsection (a)(1)(A), or which accepts certificates, vouchers, or other forms of disbursement under subsection (a)(1)(B), shall retain its independence from Federal, State, and local governments, including such organization's control over the definition, development, practice, and expression of its religious beliefs.
(2) Additional safeguards.--Neither the Federal Government nor a State shall require a religious organization to--
(A) alter its form of internal governance; or
(B) remove religious art, icons, scripture, or other symbols;in order to be eligible to contract to provide assistance, or to accept certificates, vouchers, or other forms of disbursement, funded under a program described in subsection
(a)(2).
(e) Rights of Beneficiaries of Assistance.--
(1) In general.--If an individual described in paragraph
(2) has an objection to the religious character of the organization or institution from which the individual receives, or would receive, assistance funded under any program described in subsection (a)(2), the State in which the individual resides shall provide such individual (if otherwise eligible for such assistance) within a reasonable period of time after the date of such objection with assistance from an alternative provider that is accessible to the individual and the value of which is not less than the value of the assistance which the individual would have received from such organization.
(2) Individual described.--An individual described in this paragraph is an individual who receives, applies for, or requests to apply for, assistance under a program described in subsection (a)(2).
(f) Employment Practices.--A religious organization's exemption provided under section 702 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-1a) regarding employment practices shall not be affected by its participation in, or receipt of funds from, programs described in subsection (a)(2).
(g) Nondiscrimination Against Beneficiaries.--Except as otherwise provided in law, a religious organization shall not discriminate against an individual in regard to rendering assistance funded under any program described in subsection
(a)(2) on the basis of religion, a religious belief, or refusal to actively participate in a religious practice.
(h) Fiscal Accountability.--
(1) In general.--Except as provided in paragraph (2), any religious organization contracting to provide assistance funded under any program described in subsection (a)(2) shall be subject to the same regulations as other contractors to account in accord with generally accepted auditing principles for the use of such funds provided under such programs.
(2) Limited audit.--If such organization segregates Federal funds provided under such programs into separate accounts, then only the financial assistance provided with such funds shall be subject to audit.
(i) Compliance.--Any party which seeks to enforce its rights under this section may assert a civil action for injunctive relief exclusively in an appropriate State court against the entity or agency that allegedly commits such violation.
(j) Limitations on Use of Funds for Certain Purposes.--No funds provided directly to institutions or organizations to provide services and administer programs under subsection
(a)(1)(A) shall be expended for sectarian worship, instruction, or proselytization.
(k) Preemption.--Nothing in this section shall be construed to preempt any provision of a State constitution or State statute that prohibits or restricts the expenditure of State funds in or by religious organizations.
SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS
FOR THEIR GRANDCHILDREN.
(a) In General.--Not later than 90 days after the date of the enactment of this Act, the Secretary of Commerce, in carrying out section 141 of title 13, United States Code, shall expand the data collection efforts of the Bureau of the Census (in this section referred to as the ``Bureau'') to enable the Bureau to collect statistically significant data, in connection with its decennial census and its mid-decade census, concerning the growing trend of grandparents who are the primary caregivers for their grandchildren.
(b) Expanded Census Question.--In carrying out subsection
(a), the Secretary of Commerce shall expand the Bureau's census question that details households which include both grandparents and their grandchildren. The expanded question shall be formulated to distinguish between the following households:
(1) A household in which a grandparent temporarily provides a home for a grandchild for a period of weeks or months during periods of parental distress.
(2) A household in which a grandparent provides a home for a grandchild and serves as the primary caregiver for the grandchild.
SEC. 106. REPORT ON DATA PROCESSING.
(a) In General.--Within 6 months after the date of the enactment of this Act, the Secretary of Health and Human Services shall prepare and submit to the Congress a report on--
(1) the status of the automated data processing systems operated by the States to assist management in the administration of State programs under part A of title IV of the Social Security Act (whether in effect before or after October 1, 1995); and
(2) what would be required to establish a system capable of--
(A) tracking participants in public programs over time; and
(B) checking case records of the States to determine whether individuals are participating in public programs of 2 or more States.
(b) Preferred Contents.--The report required by subsection
(a) should include--
(1) a plan for building on the automated data processing systems of the States to establish a system with the capabilities described in subsection (a)(2); and
(2) an estimate of the amount of time required to establish such a system and of the cost of establishing such a system.
SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.
(a) Study.--The Secretary shall, in cooperation with the States, study and analyze outcomes measures for evaluating the success of the States in moving individuals out of the welfare system through employment as an alternative to the minimum participation rates described in section 407 of the Social Security Act. The study shall include a determination as to whether such alternative outcomes measures should be applied on a national or a State-by-State basis and a preliminary assessment of the effects of section 409(a)(7)(C) of such Act.
(b) Report.--Not later than September 30, 1998, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report containing the findings of the study required by subsection (a).
SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.
(a) Amendments to Title II.--
(1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), as so redesignated by section 321(a)(9)(B) of the Social Security Independence and Program Improvements Act of 1994, is amended--
(A) by inserting ``an agency administering a program funded under part A of title IV or'' before ``an agency operating''; and
(B) by striking ``A or D of title IV of this Act'' and inserting ``D of such title''.
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by inserting ``under a State program funded under'' before
``part A of title IV''.
(b) Amendments to Part B of Title IV.--Section 422(b)(2)
(42 U.S.C. 622(b)(2)) is amended--
(1) by striking ``plan approved under part A of this title'' and inserting ``program funded under part A''; and
(2) by striking ``part E of this title'' and inserting
``under the State plan approved under part E''.
(c) Amendments to Part D of Title IV.--
(1) Section 451 (42 U.S.C. 651) is amended by striking
``aid'' and inserting ``assistance under a State program funded''.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is amended--
(A) by striking ``aid to families with dependent children'' and inserting ``assistance under a State program funded under part A'';
(B) by striking ``such aid'' and inserting ``such assistance''; and
(C) by striking ``under section 402(a)(26) or'' and inserting ``pursuant to section 408(a)(3) or under section''.
(3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is amended--
(A) by striking ``aid under a State plan approved'' and inserting ``assistance under a State program funded''; and
(B) by striking ``in accordance with the standards referred to in section 402(a)(26)(B)(ii)'' and inserting ``by the State''.
(4) Section 452(b) (42 U.S.C. 652(b)) is amended in the first sentence by striking ``aid under the State plan approved under part A'' and inserting ``assistance under the State program funded under part A''.
(5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and inserting ``1115(b)''.
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid under the State's plan approved under part A or E'' and inserting ``assistance is being provided under the State program funded under part A''.
(7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended in the matter following clause (iii) by striking
``aid was being paid under the State's plan approved under part A or E'' and inserting ``assistance was being provided under the State program funded under part A''.
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in the matter following subparagraph (B)--
(A) by striking ``who is a dependent child'' and inserting
``with respect to whom assistance is being provided under the State program funded under part A'';
(B) by inserting ``by the State'' after ``found''; and
(C) by striking ``to have good cause for refusing to cooperate under section 402(a)(26)'' and inserting ``to qualify for a good cause or other exception to cooperation pursuant to section 454(29)''.
(9) Section 452(h) (42 U.S.C. 652(h)) is amended by striking ``under section 402(a)(26)'' and inserting
``pursuant to section 408(a)(3)''.
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by striking ``aid under part A of this title'' and inserting
``assistance under a State program funded under part A''.
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A))) is amended--
(A) by striking ``under section 402(a)(26)'' and inserting
``pursuant to section 408(a)(3)''; and
(B) by striking ``; except that this paragraph shall not apply to such payments for any month following the first month in which the amount collected is sufficient to make such family ineligible for assistance under the State plan approved under part A;'' and inserting a comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended by striking ``aid under a State plan approved'' and inserting
``assistance under a State program funded''.
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by striking ``under section 402(a)(26)''.
(14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended by striking ``402(a)(26)'' and inserting
``408(a)(3)''.
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by striking ``aid'' and inserting ``assistance under a State program funded''.
(16) Section 469(a) (42 U.S.C. 669(a)) is amended--
(A) by striking ``aid under plans approved'' and inserting
``assistance under State programs funded''; and
(B) by striking ``such aid'' and inserting ``such assistance''.
(d) Amendments to Part E of Title IV.--
(1) Section 470 (42 U.S.C. 670) is amended--
(A) by striking ``would be'' and inserting ``would have been''; and
(B) by inserting ``(as such plan was in effect on June 1, 1995)'' after ``part A''.
(2) Section 471(a)(17) (42 U.S.C. 671(a)(17)) is amended by striking ``plans approved under parts A and D'' and inserting
``program funded under part A and plan approved under part D''.
(3) Section 472(a) (42 U.S.C. 672(a)) is amended--
(A) in the matter preceding paragraph (1)--
(i) by striking ``would meet'' and inserting ``would have met'';
(ii) by inserting ``(as such sections were in effect on June 1, 1995)'' after ``407''; and
(iii) by inserting ``(as so in effect)'' after ``406(a)''; and
(B) in paragraph (4)--
(i) in subparagraph (A)--
(I) by inserting ``would have'' after ``(A)''; and
(II) by inserting ``(as in effect on June 1, 1995)'' after
``section 402''; and
(ii) in subparagraph (B)(ii), by inserting ``(as in effect on June 1, 1995)'' after ``406(a)''.
(4) Section 472(h) (42 U.S.C. 672(h)) is amended to read as follows:
``(h)(1) For purposes of title XIX, any child with respect to whom foster care maintenance payments are made under this section is deemed to be a dependent child as defined in section 406 (as in effect as of June 1, 1995) and deemed to be a recipient of aid to families with dependent children under part A of this title (as so in effect). For purposes of title XX, any child with respect to whom foster care maintenance payments are made under this section is deemed to be a minor child in a needy family under a State program funded under part A of this title and is deemed to be a recipient of assistance under such part.
``(2) For purposes of paragraph (1), a child whose costs in a foster family home or child care institution are covered by the foster care maintenance payments being made with respect to the child's minor parent, as provided in section 475(4)(B), shall be considered a child with respect to whom foster care maintenance payments are made under this section.''.
(5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is amended--
(A) in subparagraph (A)(i)--
(i) by inserting ``(as such sections were in effect on June 1, 1995)'' after ``407'';
(ii) by inserting ``(as so in effect)'' after ``specified in section 406(a)''; and
(iii) by inserting ``(as such section was in effect on June 1, 1995)'' after ``403'';
(B) in subparagraph (B)(i)--
(i) by inserting ``would have'' after ``(B)(i)''; and
(ii) by inserting ``(as in effect on June 1, 1995)'' after
``section 402''; and
(C) in subparagraph (B)(ii)(II), by inserting ``(as in effect on June 1, 1995)'' after ``406(a)''.
(6) Section 473(b) (42 U.S.C. 673(b)) is amended to read as follows:
``(b)(1) For purposes of title XIX, any child who is described in paragraph (3) is deemed to be a dependent child as defined in section 406 (as in effect as of June 1, 1995) and deemed to be a recipient of aid to families with dependent children under part A of this title (as so in effect) in the State where such child resides.
``(2) For purposes of title XX, any child who is described in paragraph (3) is deemed to be a minor child in a needy family under a State program funded under part A of this title and deemed to be a recipient of assistance under such part.
``(3) A child described in this paragraph is any child--
``(A)(i) who is a child described in subsection (a)(2), and
``(ii) with respect to whom an adoption assistance agreement is in effect under this section (whether or nor adoption assistance payments are provided under the agreement or are being made under this section), including any such child who has been placed for adoption in accordance with applicable State and local law (whether or not an interlocutory or other judicial decree of adoption has been issued), or
``(B) with respect to whom foster care maintenance payments are being made under section 472.
``(4) For purposes of paragraphs (1) and (2), a child whose costs in a foster family home or child-care institution are covered by the foster care maintenance payments being made with respect to the child's minor parent, as provided in section 475(4)(B), shall be considered a child with respect to whom foster care maintenance payments are being made under section 472.''.
(e) Repeal of Part F of Title IV.--Part F of title IV (42 U.S.C. 681-687) is repealed.
(f) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C. 1202(a)(7)) is amended by striking ``aid to families with dependent children under the State plan approved under section 402 of this Act'' and inserting ``assistance under a State program funded under part A of title IV''.
(g) Amendments to Title XI.--
(1) Section 1109 (42 U.S.C. 1309) is amended by striking
``or part A of title IV,''.
(2) Section 1115 (42 U.S.C. 1315) is amended--
(A) in subsection (a)(2)--
(i) by inserting ``(A)'' after ``(2)'';
(ii) by striking ``403,'';
(iii) by striking the period at the end and inserting ``, and''; and
(iv) by adding at the end the following new subparagraph:
``(B) costs of such project which would not otherwise be a permissible use of funds under part A of title IV and which are not included as part of the costs of projects under section 1110, shall to the extent and for the period prescribed by the Secretary, be regarded as a permissible use of funds under such part.'';
(B) in subsection (c)(3), by striking ``the program of aid to families with dependent children'' and inserting ``part A of such title''; and
(C) by striking subsection (b) and redesignating subsections (c) and (d) as subsections (b) and (c), respectively.
(3) Section 1116 (42 U.S.C. 1316) is amended--
(A) in each of subsections (a)(1), (b), and (d), by striking ``or part A of title IV,''; and
(B) in subsection (a)(3), by striking ``404,''.
(4) Section 1118 (42 U.S.C. 1318) is amended--
(A) by striking ``403(a),'';
(B) by striking ``and part A of title IV,''; and
(C) by striking ``, and shall, in the case of American Samoa, mean 75 per centum with respect to part A of title IV''.
(5) Section 1119 (42 U.S.C. 1319) is amended--
(A) by striking ``or part A of title IV''; and
(B) by striking ``403(a),''.
(6) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by striking ``or part A of title IV,''.
(7) Section 1136 (42 U.S.C. 1320b-6) is repealed.
(8) Section 1137 (42 U.S.C. 1320b-7) is amended--
(A) in subsection (b), by striking paragraph (1) and inserting the following:
``(1) any State program funded under part A of title IV of this Act;''; and
(B) in subsection (d)(1)(B)--
(i) by striking ``In this subsection--'' and all that follows through ``(ii) in'' and inserting ``In this subsection, in'';
(ii) by redesignating subclauses (I), (II), and (III) as clauses (i), (ii), and (iii); and
(iii) by moving such redesignated material 2 ems to the left.
(h) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C. 1352(a)(7)) is amended by striking ``aid to families with dependent children under the State plan approved under section 402 of this Act'' and inserting ``assistance under a State program funded under part A of title IV''.
(i) Amendment to Title XVI as in Effect With Respect to the Territories.--Section 1602(a)(11), as in effect without regard to the amendment made by section 301 of the Social Security Amendments of 1972 (42 U.S.C. 1382 note), is amended by striking ``aid under the State plan approved'' and inserting ``assistance under a State program funded''.
(j) Amendment to Title XVI as in Effect With Respect to the States.--Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is amended to read as follows: ``(A) a State program funded under part A of title IV,''.
(k) Amendment to Title XIX.--Section 1902(j) (42 U.S.C. 1396a(j)) is amended by striking ``1108(c)'' and inserting
``1108(f)''.
SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977
AND RELATED PROVISIONS.
(a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is amended--
(1) in the second sentence of subsection (a), by striking
``plan approved'' and all that follows through ``title IV of the Social Security Act'' and inserting ``program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)'';
(2) in subsection (d)--
(A) in paragraph (5), by striking ``assistance to families with dependent children'' and inserting ``assistance under a State program funded''; and
(B) by striking paragraph (13) and redesignating paragraphs
(14), (15), and (16) as paragraphs (13), (14), and (15), respectively;
(3) in subsection (j), by striking ``plan approved under part A of title IV of such Act (42 U.S.C. 601 et seq.)'' and inserting ``program funded under part A of title IV of the Act (42 U.S.C. 601 et seq.)''; and
(4) by striking subsection (m).
(b) Section 6 of such Act (7 U.S.C. 2015) is amended--
(1) in subsection (c)(5), by striking ``the State plan approved'' and inserting ``the State program funded''; and
(2) in subsection (e)(6), by striking ``aid to families with dependent children'' and inserting ``benefits under a State program funded''.
(c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended by striking ``State plans under the Aid to Families with Dependent Children Program under'' and inserting ``State programs funded under part A of''.
(d) Section 17 of such Act (7 U.S.C. 2026) is amended--
(1) in the first sentence of subsection (b)(1)(A), by striking ``to aid to families with dependent children under part A of title IV of the Social Security Act'' and inserting
``or are receiving assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)''; and
(2) in subsection (b)(3), by adding at the end the following new subparagraph:
``(I) The Secretary may not grant a waiver under this paragraph on or after the date of enactment of this subparagraph. Any reference in this paragraph to a provision of title IV of the Social Security Act shall be deemed to be a reference to such provision as in effect on the day before such date.'';
(e) Section 20 of such Act (7 U.S.C. 2029) is amended--
(1) in subsection (a)(2)(B) by striking ``operating--'' and all that follows through ``(ii) any other'' and inserting
``operating any''; and
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``(b)(1) A household'' and inserting ``(b) A household''; and
(ii) in subparagraph (B), by striking ``training program'' and inserting ``activity'';
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A) through (F) as paragraphs (1) through (6), respectively.
(f) Section 5(h)(1) of the Agriculture and Consumer Protection Act of 1973 (Public Law 93-186; 7 U.S.C. 612c note) is amended by striking ``the program for aid to families with dependent children'' and inserting ``the State program funded''.
(g) Section 9 of the National School Lunch Act (42 U.S.C. 1758) is amended--
(1) in subsection (b)--
(A) in paragraph (2)(C)(ii)(II)--
(i) by striking ``program for aid to families with dependent children'' and inserting ``State program funded''; and
(ii) by inserting before the period at the end the following: ``that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June 1, 1995''; and
(B) in paragraph (6)--
(i) in subparagraph (A)(ii)--
(I) by striking ``an AFDC assistance unit (under the aid to families with dependent children program authorized'' and inserting ``a family (under the State program funded''; and
(II) by striking ``, in a State'' and all that follows through ``9902(2)))'' and inserting ``that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June 1, 1995''; and
(ii) in subparagraph (B), by striking ``aid to families with dependent children'' and inserting ``assistance under the State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June 1, 1995''; and
(2) in subsection (d)(2)(C)--
(A) by striking ``program for aid to families with dependent children'' and inserting ``State program funded''; and
(B) by inserting before the period at the end the following: ``that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June 1, 1995''.
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
(1) by striking ``program for aid to families with dependent children established'' and inserting ``State program funded''; and
(2) by inserting before the semicolon the following: ``that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June 1, 1995''.
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemployment Compensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94-566; 90 Stat. 2689) is amended to read as follows:
``(b) Provision for Reimbursement of Expenses.--For purposes of section 455 of the Social Security Act, expenses incurred to reimburse State employment offices for furnishing information requested of such offices--
``(1) pursuant to the third sentence of section 3(a) of the Act entitled `An Act to provide for the establishment of a national employment system and for cooperation with the States in the promotion of such system, and for other purposes', approved June 6, 1933 (29 U.S.C. 49b(a)), or
``(2) by a State or local agency charged with the duty of carrying a State plan for child support approved under part D of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the administration of such State plan.''.
(b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC of certain rental payments for federally assisted housing, is repealed.
(e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 1982 (42 U.S.C. 602 note) is repealed.
(f) Section 202(d) of the Social Security Amendments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), relating to demonstration projects to reduce number of AFDC families in welfare hotels, is amended--
(1) in subsection (a), by striking ``aid to families with dependent children under a State plan approved'' and inserting ``assistance under a State program funded''; and
(2) in subsection (c), by striking ``aid to families with dependent children in the State under a State plan approved'' and inserting ``assistance in the State under a State program funded''.
(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended--
(1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by striking ``(Aid to Families with Dependent Children)''; and
(2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by striking ``aid to families with dependent children under a State plan approved'' and inserting ``assistance under a State program funded''.
(i) The Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.) is amended--
(1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)), by striking ``The program for aid to dependent children'' and inserting ``The State program funded'';
(2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by striking ``the program for aid to families with dependent children'' and inserting ``the State program funded''; and
(3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)), by striking ``the program for aid to families with dependent children'' and inserting ``the State program funded''.
(j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 2701 et seq.) is amended--
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking ``Aid to Families with Dependent Children program'' and inserting ``State program funded under part A of title IV of the Social Security Act'';
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking ``the program of aid to families with dependent children under a State plan approved under'' and inserting
``a State program funded under part A of''; and
(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--
(A) in subparagraph (A)(xi), by striking ``Aid to Families with Dependent Children benefits'' and inserting ``assistance under a State program funded under part A of title IV of the Social Security Act''; and
(B) in subparagraph (B)(viii), by striking ``Aid to Families with Dependent Children'' and inserting ``assistance under the State program funded under part A of title IV of the Social Security Act''.
(k) The 4th proviso of chapter VII of title I of Public Law 99-88 (25 U.S.C. 13d-1) is amended to read as follows:
``Provided further, That general assistance payments made by the Bureau of Indian Affairs shall be made--
``(1) after April 29, 1985, and before October 1, 1995, on the basis of Aid to Families with Dependent Children (AFDC) standards of need; and
``(2) on and after October 1, 1995, on the basis of standards of need established under the State program funded under part A of title IV of the Social Security Act,except that where a State ratably reduces its AFDC or State program payments, the Bureau shall reduce general assistance payments in such State by the same percentage as the State has reduced the AFDC or State program payment.''.
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is amended--
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all that follows ``agency as'' and inserting ``being eligible for financial assistance under part A of title IV of the Social Security Act and as having continually received such financial assistance during the 90-day period which immediately precedes the date on which such individual is hired by the employer.'';
(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by striking ``eligibility for aid or services,'' and all that follows through ``children approved'' and inserting
``eligibility for assistance, or the amount of such assistance, under a State program funded'';
(3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)), by striking ``aid to families with dependent children provided under a State plan approved'' and inserting ``a State program funded'';
(4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))--
(A) by striking ``(c) or (d)'' each place it appears and inserting ``(c), (d), or (e)''; and
(B) by adding at the end of subparagraph (B) the following new sentence: ``Any return information disclosed with respect to section 6402(e) shall only be disclosed to officers and employees of the State agency requesting such information.'';
(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the matter preceding subparagraph (A)--
(A) by striking ``(5), (10)'' and inserting ``(5)''; and
(B) by striking ``(9), or (12)'' and inserting ``(9), (10), or (12)'';
(6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by striking ``(relating to aid to families with dependent children)'';
(7) in section 6402 (26 U.S.C. 6402)--
(A) in subsection (a), by striking ``(c) and (d)'' and inserting ``(c), (d), and (e)'';
(B) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and
(C) by inserting after subsection (d) the following:
``(e) Collection of Overpayments Under Title IV-A of the Social Security Act.--The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursuant to subsections (c) and
(d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individuals under State plans approved under part A of title IV of such Act).''; and
(8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by striking ``aid to families with dependent children'' and inserting ``assistance under a State program funded under part A of title IV of the Social Security Act''.
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is amended by striking ``State plan approved under part A of title IV'' and inserting ``State program funded under part A of title IV''.
(n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is amended--
(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by striking ``(42 U.S.C. 601 et seq.)'';
(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by striking ``State aid to families with dependent children records,'' and inserting ``records collected under the State program funded under part A of title IV of the Social Security Act,'';
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--
(A) by striking ``the JOBS program'' and inserting ``the work activities required under title IV of the Social Security Act''; and
(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))--
(A) in paragraph (1)(E), by repealing clause (vi); and
(B) in paragraph (2)(D), by repealing clause (v);
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking ``, including recipients under the JOBS program'';
(6) in subparagraphs (A) and (B) of section 204(a)(1) (29 U.S.C. 1604(a)(1) (A) and (B)), by striking ``(such as the JOBS program)'' each place it appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by striking paragraph (4) and inserting the following:
``(4) the portions of title IV of the Social Security Act relating to work activities;'';
(8) in section 253 (29 U.S.C. 1632)--
(A) in subsection (b)(2), by repealing subparagraph (C); and
(B) in paragraphs (1)(B) and (2)(B) of subsection (c), by striking ``the JOBS program or'' each place it appears;
(9) in section 264 (29 U.S.C. 1644)--
(A) in subparagraphs (A) and (B) of subsection (b)(1), by striking ``(such as the JOBS program)'' each place it appears; and
(B) in subparagraphs (A) and (B) of subsection (d)(3), by striking ``and the JOBS program'' each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by striking paragraph (6) and inserting the following:
``(6) the portion of title IV of the Social Security Act relating to work activities;'';
(11) in the second sentence of section 429(e) (29 U.S.C. 1699(e)), by striking ``and shall be in an amount that does not exceed the maximum amount that may be provided by the State pursuant to section 402(g)(1)(C) of the Social Security Act (42 U.S.C. 602(g)(1)(C))'';
(12) in section 454(c) (29 U.S.C. 1734(c)), by striking
``JOBS and'';
(13) in section 455(b) (29 U.S.C. 1735(b)), by striking
``the JOBS program,'';
(14) in section 501(1) (29 U.S.C. 1791(1)), by striking
``aid to families with dependent children under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)'' and inserting ``assistance under the State program funded under part A of title IV of the Social Security Act'';
(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking ``aid to families with dependent children'' and inserting ``assistance under the State program funded'';
(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by striking ``aid to families with dependent children'' and inserting ``assistance under the State program funded''; and
(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))--
(A) in clause (v), by striking the semicolon and inserting
``; and''; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is amended to read as follows:
``(iv) assistance under a State program funded under part A of title IV of the Social Security Act;''.
(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read as follows:
``(i) assistance under the State program funded under part A of title IV of the Social Security Act;''.
(q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 602 note) is amended--
(1) by striking ``(A)''; and
(2) by striking subparagraphs (B) and (C).
(r) The Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is amended--
(1) in the first section 255(h) (2 U.S.C. 905(h)), by striking ``Aid to families with dependent children (75-0412-0-1-609);'' and inserting ``Block grants to States for temporary assistance for needy families;''; and
(2) in section 256 (2 U.S.C. 906)--
(A) by striking subsection (k); and
(B) by redesignating subsection (l) as subsection (k).
(s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended--
(1) in section 210(f) (8 U.S.C. 1160(f)), by striking ``aid under a State plan approved under'' each place it appears and inserting ``assistance under a State program funded under'';
(2) in section 245A(h) (8 U.S.C. 1255a(h))--
(A) in paragraph (1)(A)(i), by striking ``program of aid to families with dependent children'' and inserting ``State program of assistance''; and
(B) in paragraph (2)(B), by striking ``aid to families with dependent children'' and inserting ``assistance under a State program funded under part A of title IV of the Social Security Act''; and
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking
``State plan approved'' and inserting ``State program funded''.
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 9835(a)(4)(B)(i)) is amended by striking ``program of aid to families with dependent children under a State plan approved'' and inserting ``State program of assistance funded''.
(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 92; 25 U.S.C. 639) is repealed.
(v) Subparagraph (E) of section 213(d)(6) of the School-To-Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as follows:
``(E) part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) relating to work activities;''.
(w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, is amended by striking ``section 464 or 1137 of the Social Security Act'' and inserting ``section 404(e), 464, or 1137 of the Social Security Act''.
SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT
SOCIAL SECURITY CARD REQUIRED.
(a) Development.--
(1) In general.--The Commissioner of Social Security (in this section referred to as the ``Commissioner'') shall, in accordance with this section, develop a prototype of a counterfeit-resistant social security card. Such prototype card shall--
(A) be made of a durable, tamper-resistant material such as plastic or polyester,
(B) employ technologies that provide security features, such as magnetic stripes, holograms, and integrated circuits, and
(C) be developed so as to provide individuals with reliable proof of citizenship or legal resident alien status.
(2) Assistance by attorney general.--The Attorney General of the United States shall provide such information and assistance as the Commissioner deems necessary to enable the Commissioner to comply with this section.
(b) Study and Report.--
(1) In general.--The Commissioner shall conduct a study and issue a report to Congress which examines different methods of improving the social security card application process.
(2) Elements of study.--The study shall include an evaluation of the cost and work load implications of issuing a counterfeit-resistant social security card for all individuals over a 3-, 5-, and 10-year period. The study shall also evaluate the feasibility and cost implications of imposing a user fee for replacement cards and cards issued to individuals who apply for such a card prior to the scheduled 3-, 5-, and 10-year phase-in options.
(3) Distribution of report.--The Commissioner shall submit copies of the report described in this subsection along with a facsimile of the prototype card as described in subsection
(a) to the Committees on Ways and Means and Judiciary of the House of Representatives and the Committees on Finance and Judiciary of the Senate within 1 year after the date of the enactment of this Act.
SEC. 112. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN
LOW-INCOME INDIVIDUALS PROGRAM.
Section 505 of the Family Support Act of 1988 (42 U.S.C. 1315 note) is amended--
(1) in the heading, by striking ``demonstration'';
(2) by striking ``demonstration'' each place such term appears;
(3) in subsection (a), by striking ``in each of fiscal years'' and all that follows through ``10'' and inserting
``shall enter into agreements with'';
(4) in subsection (b)(3), by striking ``aid to families with dependent children under part A of title IV of the Social Security Act'' and inserting ``assistance under the program funded part A of title IV of the Social Security Act of the State in which the individual resides'';
(5) in subsection (c)--
(A) in paragraph (1)(C), by striking ``aid to families with dependent children under title IV of the Social Security Act'' and inserting ``assistance under a State program funded part A of title IV of the Social Security Act'';
(B) in paragraph (2), by striking ``aid to families with dependent children under title IV of such Act'' and inserting
``assistance under a State program funded part A of title IV of the Social Security Act'';
(6) in subsection (d), by striking ``job opportunities and basic skills training program (as provided for under title IV of the Social Security Act)'' and inserting ``the State program funded under part A of title IV of the Social Security Act''; and
(7) by striking subsections (e) through (g) and inserting the following:
``(e) Authorization of Appropriations.--For the purpose of conducting projects under this section, there is authorized to be appropriated an amount not to exceed $25,000,000 for any fiscal year.''.
SEC. 113. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR
TECHNICAL AND CONFORMING AMENDMENTS.
Not later than 90 days after the date of the enactment of this Act, the Secretary of Health and Human Services and the Commissioner of Social Security, in consultation, as appropriate, with the heads of other Federal agencies, shall submit to the appropriate committees of Congress a legislative proposal proposing such technical and conforming amendments as are necessary to bring the law into conformity with the policy embodied in this title.
SEC. 114. ASSURING MEDICAID COVERAGE FOR LOW-INCOME FAMILIES.
(a) In General.--Title XIX is amended--
(1) by redesignating section 1931 as section 1932; and
(2) by inserting after section 1930 the following new section:
``assuring coverage for certain low-income families
``Sec. 1931. (a) References to Title IV-A are References to Pre-Welfare-Reform Provisions.--Subject to the succeeding provisions of this section, with respect to a State any reference in this title (or any other provision of law in relation to the operation of this title) to a provision of part A of title IV, or a State plan under such part (or a provision of such a plan), including income and resource standards and income and resource methodologies under such part or plan, shall be considered a reference to such a provision or plan as in effect as of July 16, 1996, with respect to the State.
``(b) Application of Pre-Welfare-Reform Eligibility Criteria.--
``(1) In general.--For purposes of this title, subject to paragraphs (2) and (3), in determining eligibility for medical assistance--
``(A) an individual shall be treated as receiving aid or assistance under a State plan approved under part A of title IV only if the individual meets--
``(i) the income and resource standards for determining eligibility under such plan, and
``(ii) the eligibility requirements of such plan under subsections (a) through (c) of section 406 and section 407(a),as in effect as of July 16, 1996; and
``(B) the income and resource methodologies under such plan as of such date shall be used in the determination of whether any individual meets income and resource standards under such plan.
``(2) State option.--For purposes of applying this section, a State--
``(A) may lower its income standards applicable with respect to part A of title IV, but not below the income standards applicable under its State plan under such part on May 1, 1988;
``(B) may increase income or resource standards under the State plan referred to in paragraph (1) over a period
(beginning after July 16, 1996) by a percentage that does not exceed the percentage increase in the consumer price index for all urban consumers (all items; U.S. city average) over such period; and
``(C) may use income and resource methodologies that are less restrictive than the methodologies used under the State plan under such part as of July 16, 1996.
``(3) Option to terminate medical assistance for failure to meet work requirement.--
``(A) Individuals receiving cash assistance under tanf.--In the case of an individual who--
``(i) is receiving cash assistance under a State program funded under part A of title IV,
``(ii) is eligible for medical assistance under this title on a basis not related to section 1902(l), and
``(iii) has the cash assistance under such program terminated pursuant to section 407(e)(1)(B) (as in effect on or after the welfare reform effective date) because of refusing to work,the State may terminate such individual's eligibility for medical assistance under this title until such time as there no longer is a basis for the termination of such cash assistance because of such refusal.
``(B) Exception for children.--Subparagraph (A) shall not be construed as permitting a State to terminate medical assistance for a minor child who is not the head of a household receiving assistance under a State program funded under part A of title IV.
``(c) Treatment for Purposes of Transitional Coverage Provisions.--
``(1) Transition in the case of child support collections.--The provisions of section 406(h) (as in effect on July 16, 1996) shall apply, in relation to this title, with respect to individuals (and families composed of individuals) who are described in subsection (b)(1)(A), in the same manner as they applied before such date with respect to individuals who became ineligible for aid to families with dependent children as a result (wholly or partly) of the collection of child or spousal support under part D of title IV.
``(2) Transition in the case of earnings from employment.--For continued medical assistance in the case of individuals
(and families composed of individuals) described in subsection (b)(1)(A) who would otherwise become ineligible because of hours or income from employment, see sections 1925 and 1902(e)(1).
``(d) Waivers.--In the case of a waiver of a provision of part A of title IV in effect with respect to a State as of July 16, 1996, or which is submitted to the Secretary before the date of the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and approved by the Secretary on or before July 1, 1997, if the waiver affects eligibility of individuals for medical assistance under this title, such waiver may (but need not) continue to be applied, at the option of the State, in relation to this title after the date the waiver would otherwise expire.
``(e) State Option to Use 1 Application Form.--Nothing in this section, or part A of title IV, shall be construed as preventing a State from providing for the same application form for assistance under a State program funded under part A of title IV (on or after the welfare reform effective date) and for medical assistance under this title.
``(f) Additional Rules of Construction.--
``(1) With respect to the reference in section 1902(a)(5) to a State plan approved under part A of title IV, a State may treat such reference as a reference either to a State program funded under such part (as in effect on and after the welfare reform effective date) or to the State plan under this title.
``(2) Any reference in section 1902(a)(55) to a State plan approved under part A of title IV shall be deemed a reference to a State program funded under such part.
``(3) In applying section 1903(f), the applicable income limitation otherwise determined shall be subject to increase in the same manner as income or resource standards of a State may be increased under subsection (b)(2)(B).
``(g) Relation to Other Provisions.--The provisions of this section shall apply notwithstanding any other provision of this Act.
``(h) Transitional Increased Federal Matching Rate for Increased Administrative Costs.--
``(1) In general.--Subject to the succeeding provisions of this subsection, the Secretary shall provide that with respect to administrative expenditures described in paragraph
(2) the per centum specified in section 1903(a)(7) shall be increased to such percentage as the Secretary specifies.
``(2) Administrative expenditures described.--The administrative expenditures described in this paragraph are expenditures described in section 1903(a)(7) that a State demonstrates to the satisfaction of the Secretary are attributable to administrative costs of eligibility determinations that (but for the enactment of this section) would not be incurred.
``(3) Limitation.--The total amount of additional Federal funds that are expended as a result of the application of this subsection for the period beginning with fiscal year 1997 and ending with fiscal year 2000 shall not exceed
$500,000,000. In applying this paragraph, the Secretary shall ensure the equitable distribution of additional funds among the States.
``(4) Time limitation.--This subsection shall only apply with respect to a State for expenditures incurred during the first 12 calendar quarters in which the State program funded under part A of title IV (as in effect on and after the welfare reform effective date) is in effect.
``(i) Welfare Reform Effective Date.--In this section, the term `welfare reform effective date' means the effective date, with respect to a State, of title I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (as specified in section 116 of such Act).''.
(b) Plan Amendment.--Section 1902(a) (42 U.S.C. 1396a(a)) is amended--
(1) by striking ``and'' at the end of paragraph (61),
(2) by striking the period at the end of paragraph (62) and inserting ``; and'', and
(3) by inserting after paragraph (62) the following new paragraph:
``(63) provide for administration and determinations of eligibility with respect to individuals who are (or seek to be) eligible for medical assistance based on the application of section 1931.''.
(c) Extension of Work Transition Provisions.--Sections 1902(e)(1)(B) and 1925(f) (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended by striking ``1998'' and inserting
``2001''.
(d) Elimination of Requirement of Minimum AFDC Payment Levels.--(1) Section 1902(c) (42 U.S.C. 1396a(c)) is amended by striking ``if--'' and all that follows and inserting the following: ``if the State requires individuals described in subsection (l)(1) to apply for assistance under the State program funded under part A of title IV as a condition of applying for or receiving medical assistance under this title.''.
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by striking paragraph (9).
SEC. 115. DENIAL OF ASSISTANCE AND BENEFITS FOR CERTAIN DRUG-
RELATED CONVICTIONS.
(a) In General.--An individual convicted (under Federal or State law) of any offense which is classified as a felony by the law of the jurisdiction involved and which has as an element the possession, use, or distribution of a controlled substance (as defined in section 102(6) of the Controlled Substances Act (21 U.S.C. 802(6))) shall not be eligible for--
(1) assistance under any State program funded under part A of title IV of the Social Security Act, or
(2) benefits under the food stamp program (as defined in section 3(h) of the Food Stamp Act of 1977) or any State program carried out under the Food Stamp Act of 1977.
(b) Effects on Assistance and Benefits for Others.--
(1) Program of temporary assistance for needy families.--The amount of assistance otherwise required to be provided under a State program funded under part A of title IV of the Social Security Act to the family members of an individual to whom subsection (a) applies shall be reduced by the amount which would have otherwise been made available to the individual under such part.
(2) Benefits under the food stamp act of 1977.--The amount of benefits otherwise required to be provided to a household under the food stamp program (as defined in section 3(h) of the Food Stamp Act of 1977), or any State program carried out under the Food Stamp Act of 1977, shall be determined by considering the individual to whom subsection (a) applies not to be a member of such household, except that the income and resources of the individual shall be considered to be income and resources of the household.
(c) Enforcement.--A State that has not exercised its authority under subsection (d)(1)(A) shall require each individual applying for assistance or benefits referred to in subsection (a), during the application process, to state, in writing, whether the individual, or any member of the household of the individual, has been convicted of a crime described in subsection (a).
(d) Limitations.--
(1) State elections.--
(A) Opt out.--A State may, by specific reference in a law enacted after the date of the enactment of this Act, exempt any or all individuals domiciled in the State from the application of subsection (a).
(B) Limit period of prohibition.--A State may, by law enacted after the date of the enactment of this Act, limit the period for which subsection (a) shall apply to any or all individuals domiciled in the State.
(2) Inapplicability to convictions occurring on or before enactment.--Subsection (a) shall not apply to convictions occurring on or before the date of the enactment of this Act.
(e) Definitions of State.--For purposes of this section, the term ``State'' has the meaning given it--
(1) in section 419(5) of the Social Security Act, when referring to assistance provided under a State program funded under part A of title IV of the Social Security Act, and
(2) in section 3(m) of the Food Stamp Act of 1977, when referring to the food stamp program (as defined in section 3(h) of the Food Stamp Act of 1977) or any State program carried out under the Food Stamp Act of 1977.
(f) Rule of Interpretation.--Nothing in this section shall be construed to deny the following Federal benefits:
(1) Emergency medical services under title XIX of the Social Security Act.
(2) Short-term, noncash, in-kind emergency disaster relief.
(3)(A) Public health assistance for immunizations.
(B) Public health assistance for testing and treatment of communicable diseases if the Secretary of Health and Human Services determines that it is necessary to prevent the spread of such disease.
(4) Prenatal care.
(5) Job training programs.
(6) Drug treatment programs.
SEC. 116. EFFECTIVE DATE; TRANSITION RULE.
(a) Effective Dates.--
(1) In general.--Except as otherwise provided in this title, this title and the amendments made by this title shall take effect on July 1, 1997.
(2) Delayed effective date for certain provisions.--Notwithstanding any other provision of this section, paragraphs (2), (3), (4), (5), (8), and (10) of section 409(a) and section 411(a) of the Social Security Act (as added by the amendments made by section 103(a) of this Act) shall not take effect with respect to a State until, and shall apply only with respect to conduct that occurs on or after, the later of--
(A) July 1, 1997; or
(B) the date that is 6 months after the date the Secretary of Health and Human Services receives from the State a plan described in section 402(a) of the Social Security Act (as added by such amendment).
(3) Grants to outlying areas.--The amendments made by section 103(b) shall take effect on October 1, 1996.
(4) Elimination of child care programs.--The amendments made by section 103(c) shall take effect on October 1, 1996.
(5) Definitions applicable to new child care entitlement.--Sections 403(a)(1)(C), 403(a)(1)(D), and 419(4) of the Social Security Act, as added by the amendments made by section 103(a) of this Act, shall take effect on October 1, 1996.
(b) Transition Rules.--Effective on the date of the enactment of this Act:
(1) State option to accelerate effective date.--
(A) In general.--If the Secretary of Health and Human Services receives from a State a plan described in section 402(a) of the Social Security Act (as added by the amendment made by section 103(a)(1) of this Act), then--
(i) on and after the date of such receipt--
(I) except as provided in clause (ii), this title and the amendments made by this title (other than by section 103(c) of this Act) shall apply with respect to the State; and
(II) the State shall be considered an eligible State for purposes of part A of title IV of the Social Security Act (as in effect pursuant to the amendments made by such section 103(a)); and
(ii) during the period that begins on the date of such receipt and ends on June 30, 1997, there shall remain in effect with respect to the State--
(I) section 403(h) of the Social Security Act (as in effect on September 30, 1995); and
(II) all State reporting requirements under parts A and F of title IV of the Social Security Act (as in effect on September 30, 1995), modified by the Secretary as appropriate, taking into account the State program under part A of title IV of the Social Security Act (as in effect pursuant to the amendments made by such section 103(a)).
(B) Limitations on federal obligations.--
(i) Under afdc program.--The total obligations of the Federal Government to a State under part A of title IV of the Social Security Act (as in effect on September 30, 1995) with respect to expenditures in fiscal year 1997 shall not exceed an amount equal to the State family assistance grant.
(ii) Under temporary family assistance program.--Notwithstanding section 403(a)(1) of the Social Security Act
(as in effect pursuant to the amendments made by section 103(a) of this Act), the total obligations of the Federal Government to a State under such section 403(a)(1)--
(I) for fiscal year 1996, shall be an amount equal to--
(aa) the State family assistance grant; multiplied by
(bb) \1/366\ of the number of days during the period that begins on the date the Secretary of Health and Human Services first receives from the State a plan described in section 402(a) of the Social Security Act (as added by the amendment made by section 103(a)(1) of this Act) and ends on September 30, 1996; and
(II) for fiscal year 1997, shall be an amount equal to the lesser of--
(aa) the amount (if any) by which the State family assistance grant exceeds the total obligations of the Federal Government to the State under part A of title IV of the Social Security Act (as in effect on September 30, 1995) with respect to expenditures in fiscal year 1997; or
(bb) the State family assistance grant, multiplied by \1/365\ of the number of days during the period that begins on October 1, 1996, or the date the Secretary of Health and Human Services first receives from the State a plan described in section 402(a) of the Social Security Act (as added by the amendment made by section 103(a)(1) of this Act), whichever is later, and ends on September 30, 1997.
(iii) Child care obligations excluded in determining federal afdc obligations.--As used in this subparagraph, the term ``obligations of the Federal Government to the State under part A of title IV of the Social Security Act'' does not include any obligation of the Federal Government with respect to child care expenditures by the State.
(C) Submission of state plan for fiscal year 1996 or 1997 deemed acceptance of grant limitations and formula and termination of afdc entitlement.--The submission of a plan by a State pursuant to subparagraph (A) is deemed to constitute--
(i) the State's acceptance of the grant reductions under subparagraph (B) (including the formula for computing the amount of the reduction); and
(ii) the termination of any entitlement of any individual or family to benefits or services under the State AFDC program.
(D) Definitions.--As used in this paragraph:
(i) State afdc program.--The term ``State AFDC program'' means the State program under parts A and F of title IV of the Social Security Act (as in effect on September 30, 1995).
(ii) State.--The term ``State'' means the 50 States and the District of Columbia.
(iii) State family assistance grant.--The term ``State family assistance grant'' means the State family assistance grant (as defined in section 403(a)(1)(B) of the Social Security Act, as added by the amendment made by section 103(a)(1) of this Act).
(2) Claims, actions, and proceedings.--The amendments made by this title shall not apply with respect to--
(A) powers, duties, functions, rights, claims, penalties, or obligations applicable to aid, assistance, or services provided before the effective date of this title under the provisions amended; and
(B) administrative actions and proceedings commenced before such date, or authorized before such date to be commenced, under such provisions.
(3) Closing out account for those programs terminated or substantially modified by this title.--In closing out accounts, Federal and State officials may use scientifically acceptable statistical sampling techniques. Claims made with respect to State expenditures under a State plan approved under part A of title IV of the Social Security Act (as in effect on September 30, 1995) with respect to assistance or services provided on or before September 30, 1995, shall be treated as claims with respect to expenditures during fiscal year 1995 for purposes of reimbursement even if payment was made by a State on or after October 1, 1995. Each State shall complete the filing of all claims under the State plan (as so in effect) within 2 years after the date of the enactment of this Act. The head of each Federal department shall--
(A) use the single audit procedure to review and resolve any claims in connection with the close out of programs under such State plans; and
(B) reimburse States for any payments made for assistance or services provided during a prior fiscal year from funds for fiscal year 1995, rather than from funds authorized by this title.
(4) Continuance in office of assistant secretary for family support.--The individual who, on the day before the effective date of this title, is serving as Assistant Secretary for Family Support within the Department of Health and Human Services shall, until a successor is appointed to such position--
(A) continue to serve in such position; and
(B) except as otherwise provided by law--
(i) continue to perform the functions of the Assistant Secretary for Family Support under section 417 of the Social Security Act (as in effect before such effective date); and
(ii) have the powers and duties of the Assistant Secretary for Family Support under section 416 of the Social Security Act (as in effect pursuant to the amendment made by section 103(a)(1) of this Act).
(c) Termination of Entitlement Under AFDC Program.--Effective October 1, 1996, no individual or family shall be entitled to any benefits or services under any State plan approved under part A or F of title IV of the Social Security Act (as in effect on September 30, 1995).
TITLE II--SUPPLEMENTAL SECURITY INCOME
SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title an amendment is expressed in terms of an amendment to or repeal of a section or other provision, the reference shall be considered to be made to that section or other provision of the Social Security Act.
Subtitle A--Eligibility Restrictions
SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS
FOUND TO HAVE FRAUDULENTLY MISREPRESENTED
RESIDENCE IN ORDER TO OBTAIN BENEFITS
SIMULTANEOUSLY IN 2 OR MORE STATES.
(a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by section 105(b)(4)(A) of the Contract with America Advancement Act of 1996, is amended by redesignating paragraph (5) as paragraph (3) and by adding at the end the following new paragraph:
``(4)(A) No person shall be considered an eligible individual or eligible spouse for purposes of this title during the 10-year period that begins on the date the person is convicted in Federal or State court of having made a fraudulent statement or representation with respect to the place of residence of the person in order to receive assistance simultaneously from 2 or more States under programs that are funded under title IV, title XIX, or the Food Stamp Act of 1977, or benefits in 2 or more States under the supplemental security income program under this title.
``(B) As soon as practicable after the conviction of a person in a Federal or State court as described in subparagraph (A), an official of such court shall notify the Commissioner of such conviction.''.
(b) Effective Date.--The amendment made by this section shall take effect on the date of the enactment of this Act.
SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND
PROBATION AND PAROLE VIOLATORS.
(a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by section 201(a) of this Act, is amended by adding at the end the following new paragraph:
``(5) No person shall be considered an eligible individual or eligible spouse for purposes of this title with respect to any month if during such month the person is--
``(A) fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from which the person flees, for a crime, or an attempt to commit a crime, which is a felony under the laws of the place from which the person flees, or which, in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or
``(B) violating a condition of probation or parole imposed under Federal or State law.''.
(b) Exchange of Information.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by section 201(a) of this Act and subsection (a) of this section, is amended by adding at the end the following new paragraph:
``(6) Notwithstanding any other provision of law (other than section 6103 of the Internal Revenue Code of 1986), the Commissioner shall furnish any Federal, State, or local law enforcement officer, upon the written request of the officer, with the current address, Social Security number, and photograph (if applicable) of any recipient of benefits under this title, if the officer furnishes the Commissioner with the name of the recipient, and other identifying information as reasonably required by the Commissioner to establish the unique identity of the recipient, and notifies the Commissioner that--
``(A) the recipient--
``(i) is described in subparagraph (A) or (B) of paragraph
(5); and
``(ii) has information that is necessary for the officer to conduct the officer's official duties; and
``(B) the location or apprehension of the recipient is within the officer's official duties.''.
(c) Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act.
SEC. 203. TREATMENT OF PRISONERS.
(a) Implementation of Prohibition Against Payment of Benefits to Prisoners.--
(1) In general.--Section 1611(e)(1) (42 U.S.C. 1382(e)(1)) is amended by adding at the end the following new subparagraph:
``(I)(i) The Commissioner shall enter into an agreement, with any interested State or local institution described in clause (i) or (ii) of section 202(x)(1)(A) the primary purpose of which is to confine individuals as described in section 202(x)(1)(A), under which--
``(I) the institution shall provide to the Commissioner, on a monthly basis and in a manner specified by the Commissioner, the names, social security account numbers, dates of birth, confinement commencement dates, and, to the extent available to the institution, such other identifying information concerning the inmates of the institution as the Commissioner may require for the purpose of carrying out paragraph (1); and
``(II) the Commissioner shall pay to any such institution, with respect to each inmate of the institution who is eligible for a benefit under this title for the month preceding the first month throughout which such inmate is in such institution and becomes ineligible for such benefit as a result of the application of this subparagraph, $400 if the institution furnishes the information described in subclause
(I) to the Commissioner within 30 days after the date such individual becomes an inmate of such institution, or $200 if the institution furnishes such information after 30 days after such date but within 90 days after such date.
``(ii)(I) The provisions of section 552a of title 5, United States Code, shall not apply to any agreement entered into under clause (i) or to information exchanged pursuant to such agreement.
``(II) The Commissioner is authorized to provide, on a reimbursable basis, information obtained pursuant to agreements entered into under clause (i) to any Federal or federally-assisted cash, food, or medical assistance program for eligibility purposes.
``(iii) Payments to institutions required by clause (i)(II) shall be made from funds otherwise available for the payment of benefits under this title and shall be treated as direct spending for purposes of the Balanced Budget and Emergency Deficit Control Act of 1985.''.
(2) Effective date.--The amendment made by this subsection shall apply to individuals whose period of confinement in an institution commences on or after the first day of the seventh month beginning after the month in which this Act is enacted.
(b) Study of Other Potential Improvements in the Collection of Information Respecting Public Inmates.--
(1) Study.--The Commissioner of Social Security shall conduct a study of the desirability, feasibility, and cost of--
(A) establishing a system under which Federal, State, and local courts would furnish to the Commissioner such information respecting court orders by which individuals are confined in jails, prisons, or other public penal, correctional, or medical facilities as the Commissioner may require for the purpose of carrying out section 1611(e)(1) of the Social Security Act; and
(B) requiring that State and local jails, prisons, and other institutions that enter into agreements with the Commissioner under section 1611(e)(1)(I) of the Social Security Act furnish the information required by such agreements to the Commissioner by means of an electronic or other sophisticated data exchange system.
(2) Report.--Not later than 1 year after the date of the enactment of this Act, the Commissioner of Social Security shall submit a report on the results of the study conducted pursuant to this subsection to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives.
(c) Additional Report to Congress.--Not later than October 1, 1998, the Commissioner of Social Security shall provide to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a list of the institutions that are and are not providing information to the Commissioner under section 1611(e)(1)(I) of the Social Security Act (as added by this section).
SEC. 204. EFFECTIVE DATE OF APPLICATION FOR BENEFITS.
(a) In General.--Subparagraphs (A) and (B) of section 1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended to read as follows:
``(A) the first day of the month following the date such application is filed, or
``(B) the first day of the month following the date such individual becomes eligible for such benefits with respect to such application.''.
(b) Special Rule Relating to Emergency Advance Payments.--Section 1631(a)(4)(A) (42 U.S.C. 1383(a)(4)(A)) is amended--
(1) by inserting ``for the month following the date the application is filed'' after ``is presumptively eligible for such benefits''; and
(2) by inserting ``, which shall be repaid through proportionate reductions in such benefits over a period of not more than 6 months'' before the semicolon.
(c) Conforming Amendments.--
(1) Section 1614(b) (42 U.S.C. 1382c(b)) is amended--
(A) by striking ``or requests'' and inserting ``, on the first day of the month following the date the application is filed, or, in any case in which either spouse requests''; and
(B) by striking ``application or''.
(2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is amended by inserting ``following the month'' after ``beginning with the month''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall apply to applications for benefits under title XVI of the Social Security Act filed on or after the date of the enactment of this Act, without regard to whether regulations have been issued to implement such amendments.
(2) Benefits under title xvi.--For purposes of this subsection, the term ``benefits under title XVI of the Social Security Act'' includes supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the Social Security Act, and payments pursuant to an agreement entered into under section 212(b) of Public Law 93-66.
Subtitle B--Benefits for Disabled Children
SEC. 211. DEFINITION AND ELIGIBILITY RULES.
(a) Definition of Childhood Disability.--Section 1614(a)(3)
(42 U.S.C. 1382c(a)(3)), as amended by section 105(b)(1) of the Contract with America Advancement Act of 1996, is amended--
(1) in subparagraph (A), by striking ``An individual'' and inserting ``Except as provided in subparagraph (C), an individual'';
(2) in subparagraph (A), by striking ``(or, in the case of an individual under the age of 18, if he suffers from any medically determinable physical or mental impairment of comparable severity)'';
(3) by redesignating subparagraphs (C) through (I) as subparagraphs (D) through (J), respectively;
(4) by inserting after subparagraph (B) the following new subparagraph:
``(C)(i) An individual under the age of 18 shall be considered disabled for the purposes of this title if that individual has a medically determinable physical or mental impairment, which results in marked and severe functional limitations, and which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.
``(ii) Notwithstanding clause (i), no individual under the age of 18 who engages in substantial gainful activity
(determined in accordance with regulations prescribed pursuant to subparagraph (E)) may be considered to be disabled.''; and
(5) in subparagraph (F), as redesignated by paragraph (3), by striking ``(D)'' and inserting ``(E)''.
(b) Changes to Childhood SSI Regulations.--
(1) Modification to medical criteria for evaluation of mental and emotional disorders.--The Commissioner of Social Security shall modify sections 112.00C.2. and 112.02B.2.c.(2) of appendix 1 to subpart P of part 404 of title 20, Code of Federal Regulations, to eliminate references to maladaptive behavior in the domain of personal/behavorial function.
(2) Discontinuance of individualized functional assessment.--The Commissioner of Social Security shall discontinue the individualized functional assessment for children set forth in sections 416.924d and 416.924e of title 20, Code of Federal Regulations.
(c) Medical Improvement Review Standard as It Applies to Individuals Under the Age of 18.--Section 1614(a)(4) (42 U.S.C. 1382(a)(4)) is amended--
(1) by redesignating subclauses (I) and (II) of clauses (i) and (ii) of subparagraph (B) as items (aa) and (bb), respectively;
(2) by redesignating clauses (i) and (ii) of subparagraphs
(A) and (B) as subclauses (I) and (II), respectively;
(3) by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively;
(4) by inserting before clause (i) (as redesignated by paragraph (3)) the following new subparagraph:
``(A) in the case of an individual who is age 18 or older--
'';
(5) by inserting after and below subparagraph (A)(iii) (as so redesignated) the following new subparagraph:
``(B) in the case of an individual who is under the age of 18--
``(i) substantial evidence which demonstrates that there has been medical improvement in the individual's impairment or combination of impairments, and that such impairment or combination of impairments no longer results in marked and severe functional limitations; or
``(ii) substantial evidence which demonstrates that, as determined on the basis of new or improved diagnostic techniques or evaluations, the individual's impairment or combination of impairments, is not as disabling as it was considered to be at the time of the most recent prior decision that the individual was under a disability or continued to be under a disability, and such impairment or combination of impairments does not result in marked and severe functional limitations; or'';
(6) by redesignating subparagraph (D) as subparagraph (C) and by inserting in such subparagraph ``in the case of any individual,'' before ``substantial evidence''; and
(7) in the first sentence following subparagraph (C) (as redesignated by paragraph (6)), by--
(A) inserting ``(i)'' before ``to restore''; and
(B) inserting ``, or (ii) in the case of an individual under the age of 18, to eliminate or improve the individual's impairment or combination of impairments so that it no longer results in marked and severe functional limitations'' immediately before the period.
(d) Effective Dates, Etc.--
(1) Effective dates.--
(A) Subsections (a) and (b).--
(i) In general.--The provisions of, and amendments made by, subsections (a) and (b) of this section shall apply to any individual who applies for, or whose claim is finally adjudicated with respect to, benefits under title XVI of the Social Security Act on or after the date of the enactment of this Act, without regard to whether regulations have been issued to implement such provisions and amendments.
(ii) Determination of final adjudication.--For purposes of clause (i), no individual's claim with respect to such benefits may be considered to be finally adjudicated before such date of enactment if, on or after such date, there is pending a request for either administrative or judicial review with respect to such claim that has been denied in whole, or there is pending, with respect to such claim, readjudication by the Commissioner of Social Security pursuant to relief in a class action or implementation by the Commissioner of a court remand order.
(B) Subsection (c).--The amendments made by subsection (c) of this section shall apply with respect to benefits under title XVI of the Social Security Act for months beginning on or after the date of the enactment of this Act, without regard to whether regulations have been issued to implement such amendments.
(2) Application to current recipients.--
(A) Eligibility redeterminations.--During the period beginning on the date of the enactment of this Act and ending on the date which is 1 year after such date of enactment, the Commissioner of Social Security shall redetermine the eligibility of any individual under age 18 who is eligible for supplemental security income benefits by reason of disability under title XVI of the Social Security Act as of the date of the enactment of this Act and whose eligibility for such benefits may terminate by reason of the provisions of, or amendments made by, subsections (a) and (b) of this section. With respect to any redetermination under this subparagraph--
(i) section 1614(a)(4) of the Social Security Act (42 U.S.C. 1382c(a)(4)) shall not apply;
(ii) the Commissioner of Social Security shall apply the eligibility criteria for new applicants for benefits under title XVI of such Act;
(iii) the Commissioner shall give such redetermination priority over all continuing eligibility reviews and other reviews under such title; and
(iv) such redetermination shall be counted as a review or redetermination otherwise required to be made under section 208 of the Social Security Independence and Program Improvements Act of 1994 or any other provision of title XVI of the Social Security Act.
(B) Grandfather provision.--The provisions of, and amendments made by, subsections (a) and (b) of this section, and the redetermination under subparagraph (A), shall only apply with respect to the benefits of an individual described in subparagraph (A) for months beginning on or after the later of July 1, 1997, or the date of the redetermination with respect to such individual.
(C) Notice.--Not later than January 1, 1997, the Commissioner of Social Security shall notify an individual described in subparagraph (A) of the provisions of this paragraph.
(3) Report.--The Commissioner of Social Security shall report to the Congress regarding the progress made in implementing the provisions of, and amendments made by, this section on child disability evaluations not later than 180 days after the date of the enactment of this Act.
(4) Regulations.--Notwithstanding any other provision of law, the Commissioner of Social Security shall submit for review to the committees of jurisdiction in the Congress any final regulation pertaining to the eligibility of individuals under age 18 for benefits under title XVI of the Social Security Act at least 45 days before the effective date of such regulation. The submission under this paragraph shall include supporting documentation providing a cost analysis, workload impact, and projections as to how the regulation will effect the future number of recipients under such title.
(5) Cap adjustment for ssi administrative work required by welfare reform.--
(A) Authorization.--For the additional costs of continuing disability reviews and redeterminations under title XVI of the Social Security Act, there is hereby authorized to be appropriated to the Social Security Administration, in addition to amounts authorized under section 201(g)(1)(A) of the Social Security Act, $150,000,000 in fiscal year 1997 and
$100,000,000 in fiscal year 1998.
(B) Cap adjustment.--Section 251(b)(2)(H) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by section 103(b) of the Contract with America Advancement Act of 1996, is amended--
(i) in clause (i)--
(I) in subclause (II) by--
(aa) striking ``$25,000,000'' and inserting
``$175,000,000''; and
(bb) striking ``$160,000,000'' and inserting
``$310,000,000''; and
(II) in subclause (III) by--
(aa) striking ``$145,000,000'' and inserting
``$245,000,000''; and
(bb) striking ``$370,000,000'' and inserting
``$470,000,000''; and
(ii) by amending clause (ii)(I) to read as follows:
``(I) the term `continuing disability reviews' means reviews or redeterminations as defined under section 201(g)(1)(A) of the Social Security Act and reviews and redeterminations authorized under section 211 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996;''.
(C) Adjustments.--Section 606(e)(1)(B) of the Congressional Budget Act of 1974 is amended by adding at the end the following new sentences: ``If the adjustments referred to in the preceding sentence are made for an appropriations measure that is not enacted into law, then the Chairman of the Committee on the Budget of the House of Representatives shall, as soon as practicable, reverse those adjustments. The Chairman of the Committee on the Budget of the House of Representatives shall submit any adjustments made under this subparagraph to the House of Representatives and have such adjustments published in the Congressional Record.''.
(D) Conforming amendment.--Section 103(d)(1) of the Contract with America Advancement Act of 1996 (42 U.S.C. 401 note) is amended by striking ``medicaid programs.'' and inserting ``medicaid programs, except that the amounts appropriated pursuant to the authorization and discretionary spending allowance provisions in section 211(d)(2)(5) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 shall be used only for continuing disability reviews and redeterminations under title XVI of the Social Security Act.''.
(6) Benefits under title xvi.--For purposes of this subsection, the term ``benefits under title XVI of the Social Security Act'' includes supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the Social Security Act, and payments pursuant to an agreement entered into under section 212(b) of Public Law 93-66.
SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINUING
DISABILITY REVIEWS.
(a) Continuing Disability Reviews Relating to Certain Children.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as redesignated by section 211(a)(3) of this Act, is amended--
(1) by inserting ``(i)'' after ``(H)''; and
(2) by adding at the end the following new clause:
``(ii)(I) Not less frequently than once every 3 years, the Commissioner shall review in accordance with paragraph (4) the continued eligibility for benefits under this title of each individual who has not attained 18 years of age and is eligible for such benefits by reason of an impairment (or combination of impairments) which is likely to improve (or, at the option of the Commissioner, which is unlikely to improve).
``(II) A representative payee of a recipient whose case is reviewed under this clause shall present, at the time of review, evidence demonstrating that the recipient is, and has been, receiving treatment, to the extent considered medically necessary and available, of the condition which was the basis for providing benefits under this title.
``(III) If the representative payee refuses to comply without good cause with the requirements of subclause (II), the Commissioner of Social Security shall, if the Commissioner determines it is in the best interest of the individual, promptly suspend payment of benefits to the representative payee, and provide for payment of benefits to an alternative representative payee of the individual or, if the interest of the individual under this title would be served thereby, to the individual.
``(IV) Subclause (II) shall not apply to the representative payee of any individual with respect to whom the Commissioner determines such application would be inappropriate or unnecessary. In making such determination, the Commissioner shall take into consideration the nature of the individual's impairment (or combination of impairments). Section 1631(c) shall not apply to a finding by the Commissioner that the requirements of subclause (II) should not apply to an individual's representative payee.''.
(b) Disability Eligibility Redeterminations Required for SSI Recipients Who Attain 18 Years of Age.--
(1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as amended by subsection (a) of this section, is amended by adding at the end the following new clause:
``(iii) If an individual is eligible for benefits under this title by reason of disability for the month preceding the month in which the individual attains the age of 18 years, the Commissioner shall redetermine such eligibility--
``(I) during the 1-year period beginning on the individual's 18th birthday; and
``(II) by applying the criteria used in determining the initial eligibility for applicants who are age 18 or older.
With respect to a redetermination under this clause, paragraph (4) shall not apply and such redetermination shall be considered a substitute for a review or redetermination otherwise required under any other provision of this subparagraph during that 1-year period.''.
(2) Conforming repeal.--Section 207 of the Social Security Independence and Program Improvements Act of 1994 (42 U.S.C. 1382 note; 108 Stat. 1516) is hereby repealed.
(c) Continuing Disability Review Required for Low Birth Weight Babies.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as amended by subsections (a) and (b) of this section, is amended by adding at the end the following new clause:
``(iv)(I) Not later than 12 months after the birth of an individual, the Commissioner shall review in accordance with paragraph (4) the continuing eligibility for benefits under this title by reason of disability of such individual whose low birth weight is a contributing factor material to the Commissioner's determination that the individual is disabled.
``(II) A review under subclause (I) shall be considered a substitute for a review otherwise required under any other provision of this subparagraph during that 12-month period.
``(III) A representative payee of a recipient whose case is reviewed under this clause shall present, at the time of review, evidence demonstrating that the recipient is, and has been, receiving treatment, to the extent considered medically necessary and available, of the condition which was the basis for providing benefits under this title.
``(IV) If the representative payee refuses to comply without good cause with the requirements of subclause (III), the Commissioner of Social Security shall, if the Commissioner determines it is in the best interest of the individual, promptly suspend payment of benefits to the representative payee, and provide for payment of benefits to an alternative representative payee of the individual or, if the interest of the individual under this title would be served thereby, to the individual.
``(V) Subclause (III) shall not apply to the representative payee of any individual with respect to whom the Commissioner determines such application would be inappropriate or unnecessary. In making such determination, the Commissioner shall take into consideration the nature of the individual's impairment (or combination of impairments). Section 1631(c) shall not apply to a finding by the Commissioner that the requirements of subclause (III) should not apply to an individual's representative payee.''.
(d) Effective Date.--The amendments made by this section shall apply to benefits for months beginning on or after the date of the enactment of this Act, without regard to whether regulations have been issued to implement such amendments.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) Requirement To Establish Account.--Section 1631(a)(2)
(42 U.S.C. 1383(a)(2)) is amended--
(1) by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively; and
(2) by inserting after subparagraph (E) the following new subparagraph:
``(F)(i)(I) Each representative payee of an eligible individual under the age of 18 who is eligible for the payment of benefits described in subclause (II) shall establish on behalf of such individual an account in a financial institution into which such benefits shall be paid, and shall thereafter maintain such account for use in accordance with clause (ii).
``(II) Benefits described in this subclause are past-due monthly benefits under this title (which, for purposes of this subclause, include State supplementary payments made by the Commissioner pursuant to an agreement under section 1616 or section 212(b) of Public Law 93-66) in an amount (after any withholding by the Commissioner for reimbursement to a State for interim assistance under subsection (g)) that exceeds the product of--
``(aa) 6, and
``(bb) the maximum monthly benefit payable under this title to an eligible individual.
``(ii)(I) A representative payee shall use funds in the account established under clause (i) to pay for allowable expenses described in subclause (II).
``(II) An allowable expense described in this subclause is an expense for--
``(aa) education or job skills training;
``(bb) personal needs assistance;
``(cc) special equipment;
``(dd) housing modification;
``(ee) medical treatment;
``(ff) therapy or rehabilitation; or
``(gg) any other item or service that the Commissioner determines to be appropriate;
provided that such expense benefits such individual and, in the case of an expense described in item (bb), (cc), (dd),
(ff), or (gg), is related to the impairment (or combination of impairments) of such individual.
``(III) The use of funds from an account established under clause (i) in any manner not authorized by this clause--
``(aa) by a representative payee shall be considered a misapplication of benefits for all purposes of this paragraph, and any representative payee who knowingly misapplies benefits from such an account shall be liable to the Commissioner in an amount equal to the total amount of such benefits; and
``(bb) by an eligible individual who is his or her own payee shall be considered a misapplication of benefits for all purposes of this paragraph and the total amount of such benefits so used shall be considered to be the uncompensated value of a disposed resource and shall be subject to the provisions of section 1613(c).
``(IV) This clause shall continue to apply to funds in the account after the child has reached age 18, regardless of whether benefits are paid directly to the beneficiary or through a representative payee.
``(iii) The representative payee may deposit into the account established pursuant to clause (i)--
``(I) past-due benefits payable to the eligible individual in an amount less than that specified in clause (i)(II), and
``(II) any other funds representing an underpayment under this title to such individual, provided that the amount of such underpayment is equal to or exceeds the maximum monthly benefit payable under this title to an eligible individual.
``(iv) The Commissioner of Social Security shall establish a system for accountability monitoring whereby such representative payee shall report, at such time and in such manner as the Commissioner shall require, on activity respecting funds in the account established pursuant to clause (i).''.
(b) Exclusion From Resources.--Section 1613(a) (42 U.S.C. 1382b(a)) is amended--
(1) by striking ``and'' at the end of paragraph (10);
(2) by striking the period at the end of paragraph (11) and inserting ``; and''; and
(3) by inserting after paragraph (11) the following new paragraph:
``(12) any account, including accrued interest or other earnings thereon, established and maintained in accordance with section 1631(a)(2)(F).''.
(c) Exclusion From Income.--Section 1612(b) (42 U.S.C. 1382a(b)) is amended--
(1) by striking ``and'' at the end of paragraph (19);
(2) by striking the period at the end of paragraph (20) and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(21) the interest or other earnings on any account established and maintained in accordance with section 1631(a)(2)(F).''.
(d) Effective Date.--The amendments made by this section shall apply to payments made after the date of the enactment of this Act.
SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO
INSTITUTIONALIZED INDIVIDUALS WHOSE MEDICAL
COSTS ARE COVERED BY PRIVATE INSURANCE.
(a) In General.--Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B)) is amended by inserting ``or, in the case of an eligible individual who is a child under the age of 18, receiving payments (with respect to such individual) under any health insurance policy issued by a private provider of such insurance'' after ``section 1614(f)(2)(B),''.
(b) Effective Date.--The amendment made by this section shall apply to benefits for months beginning 90 or more days after the date of the enactment of this Act, without regard to whether regulations have been issued to implement such amendments.
SEC. 215. REGULATIONS.
Within 3 months after the date of the enactment of this Act, the Commissioner of Social Security shall prescribe such regulations as may be necessary to implement the amendments made by this subtitle.
Subtitle C--Additional Enforcement Provision
SEC. 221. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLEMENTAL
SECURITY INCOME BENEFITS.
(a) In General.--Section 1631(a) (42 U.S.C. 1383) is amended by adding at the end the following new paragraph:
``(10)(A) If an individual is eligible for past-due monthly benefits under this title in an amount that (after any withholding for reimbursement to a State for interim assistance under subsection (g)) equals or exceeds the product of--
``(i) 12, and
``(ii) the maximum monthly benefit payable under this title to an eligible individual (or, if appropriate, to an eligible individual and eligible spouse),then the payment of such past-due benefits (after any such reimbursement to a State) shall be made in installments as provided in subparagraph (B).
``(B)(i) The payment of past-due benefits subject to this subparagraph shall be made in not to exceed 3 installments that are made at 6-month intervals.
``(ii) Except as provided in clause (iii), the amount of each of the first and second installments may not exceed an amount equal to the product of clauses (i) and (ii) of subparagraph (A).
``(iii) In the case of an individual who has--
``(I) outstanding debt attributable to--
``(aa) food,
``(bb) clothing,
``(cc) shelter, or
``(dd) medically necessary services, supplies or equipment, or medicine; or
``(II) current expenses or expenses anticipated in the near term attributable to--
``(aa) medically necessary services, supplies or equipment, or medicine, or
``(bb) the purchase of a home, andsuch debt or expenses are not subject to reimbursement by a public assistance program, the Secretary under title XVIII, a State plan approved under title XIX, or any private entity legally liable to provide payment pursuant to an insurance policy, pre-paid plan, or other arrangement, the limitation specified in clause (ii) may be exceeded by an amount equal to the total of such debt and expenses.
``(C) This paragraph shall not apply to any individual who, at the time of the Commissioner's determination that such individual is eligible for the payment of past-due monthly benefits under this title--
``(i) is afflicted with a medically determinable impairment that is expected to result in death within 12 months; or
``(ii) is ineligible for benefits under this title and the Commissioner determines that such individual is likely to remain ineligible for the next 12 months.
``(D) For purposes of this paragraph, the term `benefits under this title' includes supplementary payments pursuant to an agreement for Federal administration under section 1616(a), and payments pursuant to an agreement entered into under section 212(b) of Public Law 93-66.''.
(b) Conforming Amendment.--Section 1631(a)(1) (42 U.S.C. 1383(a)(1)) is amended by inserting ``(subject to paragraph
(10))'' immediately before ``in such installments''.
(c) Effective Date.--
(1) In general.--The amendments made by this section are effective with respect to past-due benefits payable under title XVI of the Social Security Act after the third month following the month in which this Act is enacted.
(2) Benefits payable under title xvi.--For purposes of this subsection, the term ``benefits payable under title XVI of the Social Security Act'' includes supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the Social Security Act, and payments pursuant to an agreement entered into under section 212(b) of Public Law 93-66.
SEC. 222. REGULATIONS.
Within 3 months after the date of the enactment of this Act, the Commissioner of Social Security shall prescribe such regulations as may be necessary to implement the amendments made by this subtitle.
Subtitle D--Studies Regarding Supplemental Security Income Program
SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME
PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by section 105(b)(3) of the Contract with America Advancement Act of 1996, is amended by adding at the end the following new section:
``ANNUAL REPORT ON PROGRAM
``Sec. 1637. (a) Not later than May 30 of each year, the Commissioner of Social Security shall prepare and deliver a report annually to the President and the Congress regarding the program under this title, including--
``(1) a comprehensive description of the program;
``(2) historical and current data on allowances and denials, including number of applications and allowance rates for initial determinations, reconsideration determinations, administrative law judge hearings, appeals council reviews, and Federal court decisions;
``(3) historical and current data on characteristics of recipients and program costs, by recipient group (aged, blind, disabled adults, and disabled children);
``(4) historical and current data on prior enrollment by recipients in public benefit programs, including State programs funded under part A of title IV of the Social Security Act and State general assistance programs;
``(5) projections of future number of recipients and program costs, through at least 25 years;
``(6) number of redeterminations and continuing disability reviews, and the outcomes of such redeterminations and reviews;
``(7) data on the utilization of work incentives;
``(8) detailed information on administrative and other program operation costs;
``(9) summaries of relevant research undertaken by the Social Security Administration, or by other researchers;
``(10) State supplementation program operations;
``(11) a historical summary of statutory changes to this title; and
``(12) such other information as the Commissioner deems useful.
``(b) Each member of the Social Security Advisory Board shall be permitted to provide an individual report, or a joint report if agreed, of views of the program under this title, to be included in the annual report required under this section.''.
SEC. 232. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1999, the Comptroller General of the United States shall study and report on--
(1) the impact of the amendments made by, and the provisions of, this title on the supplemental security income program under title XVI of the Social Security Act; and
(2) extra expenses incurred by families of children receiving benefits under such title that are not covered by other Federal, State, or local programs.
TITLE III--CHILD SUPPORT
SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title an amendment is expressed in terms of an amendment to or repeal of a section or other provision, the reference shall be considered to be made to that section or other provision of the Social Security Act.Subtitle A--Eligibility for Services; Distribution of Payments
SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT
ENFORCEMENT SERVICES.
(a) State Plan Requirements.--Section 454 (42 U.S.C. 654) is amended--
(1) by striking paragraph (4) and inserting the following new paragraph:
``(4) provide that the State will--
``(A) provide services relating to the establishment of paternity or the establishment, modification, or enforcement of child support obligations, as appropriate, under the plan with respect to--
``(i) each child for whom (I) assistance is provided under the State program funded under part A of this title, (II) benefits or services for foster care maintenance are provided under the State program funded under part E of this title, or
(III) medical assistance is provided under the State plan approved under title XIX, unless, in accordance with paragraph (29), good cause or other exceptions exist;
``(ii) any other child, if an individual applies for such services with respect to the child; and
``(B) enforce any support obligation established with respect to--
``(i) a child with respect to whom the State provides services under the plan; or
``(ii) the custodial parent of such a child;''; and
(2) in paragraph (6)--
(A) by striking ``provide that'' and inserting ``provide that--'';
(B) by striking subparagraph (A) and inserting the following new subparagraph:
``(A) services under the plan shall be made available to residents of other States on the same terms as to residents of the State submitting the plan;'';
(C) in subparagraph (B), by inserting ``on individuals not receiving assistance under any State program funded under part A'' after ``such services shall be imposed'';
(D) in each of subparagraphs (B), (C), (D), and (E)--
(i) by indenting the subparagraph in the same manner as, and aligning the left margin of the subparagraph with the left margin of, the matter inserted by subparagraph (B) of this paragraph; and
(ii) by striking the final comma and inserting a semicolon; and
(E) in subparagraph (E), by indenting each of clauses (i) and (ii) 2 additional ems.
(b) Continuation of Services for Families Ceasing To Receive Assistance Under the State Program Funded Under Part A.--Section 454 (42 U.S.C. 654) is amended--
(1) by striking ``and'' at the end of paragraph (23);
(2) by striking the period at the end of paragraph (24) and inserting ``; and''; and
(3) by adding after paragraph (24) the following new paragraph:
``(25) provide that if a family with respect to which services are provided under the plan ceases to receive assistance under the State program funded under part A, the State shall provide appropriate notice to the family and continue to provide such services, subject to the same conditions and on the same basis as in the case of other individuals to whom services are furnished under the plan, except that an application or other request to continue services shall not be required of such a family and paragraph
(6)(B) shall not apply to the family.''.
(c) Conforming Amendments.--
(1) Section 452(b) (42 U.S.C. 652(b)) is amended by striking ``454(6)'' and inserting ``454(4)''.
(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended by striking ``454(6)'' each place it appears and inserting ``454(4)(A)(ii)''.
(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended by striking ``in the case of overdue support which a State has agreed to collect under section 454(6)'' and inserting ``in any other case''.
(4) Section 466(e) (42 U.S.C. 666(e)) is amended by striking ``paragraph (4) or (6) of section 454'' and inserting ``section 454(4)''.
SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.
(a) In General.--Section 457 (42 U.S.C. 657) is amended to read as follows:
``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
``(a) In General.--Subject to subsection (e), an amount collected on behalf of a family as support by a State pursuant to a plan approved under this part shall be distributed as follows:
``(1) Families receiving assistance.--In the case of a family receiving assistance from the State, the State shall--
``(A) pay to the Federal Government the Federal share of the amount so collected; and
``(B) retain, or distribute to the family, the State share of the amount so collected.
``(2) Families that formerly received assistance.--In the case of a family that formerly received assistance from the State:
``(A) Current support payments.--To the extent that the amount so collected does not exceed the amount required to be paid to the family for the month in which collected, the State shall distribute the amount so collected to the family.
``(B) Payments of arrearages.--To the extent that the amount so collected exceeds the amount required to be paid to the family for the month in which collected, the State shall distribute the amount so collected as follows:
``(i) Distribution of arrearages that accrued after the family ceased to receive assistance.--
``(I) Pre-october 1997.--Except as provided in subclause
(II), the provisions of this section (other than subsection
(b)(1)) as in effect and applied on the day before the date of the enactment of section 302 of the Personal Responsibility and Work Opportunity Act Reconciliation of 1996 shall apply with respect to the distribution of support arrearages that--
``(aa) accrued after the family ceased to receive assistance, and
``(bb) are collected before October 1, 1997.
``(II) Post-september 1997.--With respect to the amount so collected on or after October 1, 1997 (or before such date, at the option of the State)--
``(aa) In general.--The State shall first distribute the amount so collected (other than any amount described in clause (iv)) to the family to the extent necessary to satisfy any support arrearages with respect to the family that accrued after the family ceased to receive assistance from the State.
``(bb) Reimbursement of governments for assistance provided to the family.--After the application of division (aa) and clause (ii)(II)(aa) with respect to the amount so collected, the State shall retain the State share of the amount so collected, and pay to the Federal Government the Federal share (as defined in subsection (c)(2)) of the amount so collected, but only to the extent necessary to reimburse amounts paid to the family as assistance by the State.
``(cc) Distribution of the remainder to the family.--To the extent that neither division (aa) nor division (bb) applies to the amount so collected, the State shall distribute the amount to the family.
``(ii) Distribution of arrearages that accrued before the family received assistance.--
``(I) Pre-october 2000.--Except as provided in subclause
(II), the provisions of this section (other than subsection
(b)(1)) as in effect and applied on the day before the date of the enactment of section 302 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 shall apply with respect to the distribution of support arrearages that--
``(aa) accrued before the family received assistance, and
``(bb) are collected before October 1, 2000.
``(II) Post-september 2000.--Unless, based on the report required by paragraph (4), the Congress determines otherwise, with respect to the amount so collected on or after October 1, 2000 (or before such date, at the option of the State)--
``(aa) In general.--The State shall first distribute the amount so collected (other than any amount described in clause (iv)) to the family to the extent necessary to satisfy any support arrearages with respect to the family that accrued before the family received assistance from the State.
``(bb) Reimbursement of governments for assistance provided to the family.--After the application of clause (i)(II)(aa) and division (aa) with respect to the amount so collected, the State shall retain the State share of the amount so collected, and pay to the Federal Government the Federal share (as defined in subsection (c)(2)) of the amount so collected, but only to the extent necessary to reimburse amounts paid to the family as assistance by the State.
``(cc) Distribution of the remainder to the family.--To the extent that neither division (aa) nor division (bb) applies to the amount so collected, the State shall distribute the amount to the family.
``(iii) Distribution of arrearages that accrued while the family received assistance.--In the case of a family described in this subparagraph, the provisions of paragraph
(1) shall apply with respect to the distribution of support arrearages that accrued while the family received assistance.
``(iv) Amounts collected pursuant to section 464.--Notwithstanding any other provision of this section, any amount of support collected pursuant to section 464 shall be retained by the State to the extent past-due support has been assigned to the State as a condition of receiving assistance from the State, up to the amount necessary to reimburse the State for amounts paid to the family as assistance by the State. The State shall pay to the Federal Government the Federal share of the amounts so retained. To the extent the amount collected pursuant to section 464 exceeds the amount so retained, the State shall distribute the excess to the family.
``(v) Ordering rules for distributions.--For purposes of this subparagraph, unless an earlier effective date is required by this section, effective October 1, 2000, the State shall treat any support arrearages collected, except for amounts collected pursuant to section 464, as accruing in the following order:
``(I) To the period after the family ceased to receive assistance.
``(II) To the period before the family received assistance.
``(III) To the period while the family was receiving assistance.
``(3) Families that never received assistance.--In the case of any other family, the State shall distribute the amount so collected to the family.
``(4) Families under certain agreements.--In the case of a family receiving assistance from an Indian tribe, distribute the amount so collected pursuant to an agreement entered into pursuant to a State plan under section 454(33).
``(5) Study and report.--Not later than October 1, 1998, the Secretary shall report to the Congress the Secretary's findings with respect to--
``(A) whether the distribution of post-assistance arrearages to families has been effective in moving people off of welfare and keeping them off of welfare;
``(B) whether early implementation of a pre-assistance arrearage program by some States has been effective in moving people off of welfare and keeping them off of welfare;
``(C) what the overall impact has been of the amendments made by the Personal Responsibility and Work Opportunity Act of 1996 with respect to child support enforcement in moving people off of welfare and keeping them off of welfare; and
``(D) based on the information and data the Secretary has obtained, what changes, if any, should be made in the policies related to the distribution of child support arrearages.
``(b) Continuation Of Assignments.--Any rights to support obligations, which were assigned to a State as a condition of receiving assistance from the State under part A and which were in effect on the day before the date of the enactment of the Personal Responsibility and Work Opportunity Act of 1996, shall remain assigned after such date.
``(c) Definitions.--As used in subsection (a):
``(1) Assistance.--The term `assistance from the State' means--
``(A) assistance under the State program funded under part A or under the State plan approved under part A of this title
(as in effect on the day before the date of the enactment of the Personal Responsibility and Work Opportunity Act of 1996); and
``(B) foster care maintenance payments under the State plan approved under part E of this title.
``(2) Federal share.--The term `Federal share' means that portion of the amount collected resulting from the application of the Federal medical assistance percentage in effect for the fiscal year in which the amount is collected.
``(3) Federal medical assistance percentage.--The term
`Federal medical assistance percentage' means--
``(A) the Federal medical assistance percentage (as defined in section 1118), in the case of Puerto Rico, the Virgin Islands, Guam, and American Samoa; or
``(B) the Federal medical assistance percentage (as defined in section 1905(b), as in effect on September 30, 1996) in the case of any other State.
``(4) State share.--The term `State share' means 100 percent minus the Federal share.
``(d) Hold Harmless Provision.--If the amounts collected which could be retained by the State in the fiscal year (to the extent necessary to reimburse the State for amounts paid to families as assistance by the State) are less than the State share of the amounts collected in fiscal year 1995
(determined in accordance with section 457 as in effect on the day before the date of the enactment of the Personal Responsibility and Work Opportunity Act of 1996), the State share for the fiscal year shall be an amount equal to the State share in fiscal year 1995.
``(e) Gap Payments not Subject to Distribution Under This Section.--At State option, this section shall not apply to any amount collected on behalf of a family as support by the State (and paid to the family in addition to the amount of assistance otherwise payable to the family) pursuant to a plan approved under this part if such amount would have been paid to the family by the State under section 402(a)(28), as in effect and applied on the day before the date of the enactment of section 302 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. For purposes of subsection (d), the State share of such amount paid to the family shall be considered amounts which could be retained by the State if such payments were reported by the State as part of the State share of amounts collected in fiscal year 1995.''.
(b) Conforming Amendments.--
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by striking ``section 457(b)(4) or (d)(3)'' and inserting
``section 457''.
(2) Section 454 (42 U.S.C. 654) is amended--
(A) in paragraph (11)--
(i) by striking ``(11)'' and inserting ``(11)(A)''; and
(ii) by inserting after the semicolon ``and''; and
(B) by redesignating paragraph (12) as subparagraph (B) of paragraph (11).
(c) Effective Dates.--
(1) In General.--Except as provided in paragraph (2), the amendments made by this section shall be effective on October 1, 1996, or earlier at the State's option.
(2) Conforming amendments.--The amendments made by subsection (b)(2) shall become effective on the date of the enactment of this Act.
SEC. 303. PRIVACY SAFEGUARDS.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as amended by section 301(b) of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (24);
(2) by striking the period at the end of paragraph (25) and inserting ``; and''; and
(3) by adding after paragraph (25) the following new paragraph:
``(26) will have in effect safeguards, applicable to all confidential information handled by the State agency, that are designed to protect the privacy rights of the parties, including--
``(A) safeguards against unauthorized use or disclosure of information relating to proceedings or actions to establish paternity, or to establish or enforce support;
``(B) prohibitions against the release of information on the whereabouts of 1 party to another party against whom a protective order with respect to the former party has been entered; and
``(C) prohibitions against the release of information on the whereabouts of 1 party to another party if the State has reason to believe that the release of the information may result in physical or emotional harm to the former party.''.
(b) Effective Date.--The amendment made by subsection (a) shall become effective on October 1, 1997.
SEC. 304. RIGHTS TO NOTIFICATION OF HEARINGS.
(a) In General.--Section 454 (42 U.S.C. 654), as amended by section 302(b)(2) of this Act, is amended by inserting after paragraph (11) the following new paragraph:
``(12) provide for the establishment of procedures to require the State to provide individuals who are applying for or receiving services under the State plan, or who are parties to cases in which services are being provided under the State plan--
``(A) with notice of all proceedings in which support obligations might be established or modified; and
``(B) with a copy of any order establishing or modifying a child support obligation, or (in the case of a petition for modification) a notice of determination that there should be no change in the amount of the child support award, within 14 days after issuance of such order or determination;''.
(b) Effective Date.--The amendment made by subsection (a) shall become effective on October 1, 1997.
Subtitle B--Locate and Case Tracking
SEC. 311. STATE CASE REGISTRY.
Section 454A, as added by section 344(a)(2) of this Act, is amended by adding at the end the following new subsections:
``(e) State Case Registry.--
``(1) Contents.--The automated system required by this section shall include a registry (which shall be known as the
`State case registry') that contains records with respect to--
``(A) each case in which services are being provided by the State agency under the State plan approved under this part; and
``(B) each support order established or modified in the State on or after October 1, 1998.
``(2) Linking of local registries.--The State case registry may be established by linking local case registries of support orders through an automated information network, subject to this section.
``(3) Use of standardized data elements.--Such records shall use standardized data elements for both parents (such as names, social security numbers and other uniform identification numbers, dates of birth, and case identification numbers), and contain such other information
(such as on case status) as the Secretary may require.
``(4) Payment records.--Each case record in the State case registry with respect to which services are being provided under the State plan approved under this part and with respect to which a support order has been established shall include a record of--
``(A) the amount of monthly (or other periodic) support owed under the order, and other amounts (including arrearages, interest or late payment penalties, and fees) due or overdue under the order;
``(B) any amount described in subparagraph (A) that has been collected;
``(C) the distribution of such collected amounts;
``(D) the birth date of any child for whom the order requires the provision of support; and
``(E) the amount of any lien imposed with respect to the order pursuant to section 466(a)(4).
``(5) Updating and monitoring.--The State agency operating the automated system required by this section shall promptly establish and update, maintain, and regularly monitor, case records in the State case registry with respect to which services are being provided under the State plan approved under this part, on the basis of--
``(A) information on administrative actions and administrative and judicial proceedings and orders relating to paternity and support;
``(B) information obtained from comparison with Federal, State, or local sources of information;
``(C) information on support collections and distributions; and
``(D) any other relevant information.
``(f) Information Comparisons and Other Disclosures of Information.--The State shall use the automated system required by this section to extract information from (at such times, and in such standardized format or formats, as may be required by the Secretary), to share and compare information with, and to receive information from, other data bases and information comparison services, in order to obtain (or provide) information necessary to enable the State agency (or the Secretary or other State or Federal agencies) to carry out this part, subject to section 6103 of the Internal Revenue Code of 1986. Such information comparison activities shall include the following:
``(1) Federal case registry of child support orders.--Furnishing to the Federal Case Registry of Child Support Orders established under section 453(h) (and update as necessary, with information including notice of expiration of orders) the minimum amount of information on child support cases recorded in the State case registry that is necessary to operate the registry (as specified by the Secretary in regulations).
``(2) Federal parent locator service.--Exchanging information with the Federal Parent Locator Service for the purposes specified in section 453.
``(3) Temporary family assistance and medicaid agencies.--Exchanging information with State agencies (of the State and of other States) administering programs funded under part A, programs operated under a State plan approved under title XIX, and other programs designated by the Secretary, as necessary to perform State agency responsibilities under this part and under such programs.
``(4) Intrastate and interstate information comparisons.--Exchanging information with other agencies of the State, agencies of other States, and interstate information networks, as necessary and appropriate to carry out (or assist other States to carry out) the purposes of this part.''.
SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as amended by sections 301(b) and 303(a) of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (25);
(2) by striking the period at the end of paragraph (26) and inserting ``; and''; and
(3) by adding after paragraph (26) the following new paragraph:
``(27) provide that, on and after October 1, 1998, the State agency will--
``(A) operate a State disbursement unit in accordance with section 454B; and
``(B) have sufficient State staff (consisting of State employees) and (at State option) contractors reporting directly to the State agency to--
``(i) monitor and enforce support collections through the unit in cases being enforced by the State pursuant to section 454(4) (including carrying out the automated data processing responsibilities described in section 454A(g)); and
``(ii) take the actions described in section 466(c)(1) in appropriate cases.''.
(b) Establishment of State Disbursement Unit.--Part D of title IV (42 U.S.C. 651-669), as amended by section 344(a)(2) of this Act, is amended by inserting after section 454A the following new section:
``SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
``(a) State Disbursement Unit.--
``(1) In general.--In order for a State to meet the requirements of this section, the State agency must establish and operate a unit (which shall be known as the `State disbursement unit') for the collection and disbursement of payments under support orders--
``(A) in all cases being enforced by the State pursuant to section 454(4); and
``(B) in all cases not being enforced by the State under this part in which the support order is initially issued in the State on or after January 1, 1994, and in which the income of the noncustodial parent are subject to withholding pursuant to section 466(a)(8)(B).
``(2) Operation.--The State disbursement unit shall be operated--
``(A) directly by the State agency (or 2 or more State agencies under a regional cooperative agreement), or (to the extent appropriate) by a contractor responsible directly to the State agency; and
``(B) except in cases described in paragraph (1)(B), in coordination with the automated system established by the State pursuant to section 454A.
``(3) Linking of local disbursement units.--The State disbursement unit may be established by linking local disbursement units through an automated information network, subject to this section, if the Secretary agrees that the system will not cost more nor take more time to establish or operate than a centralized system. In addition, employers shall be given 1 location to which income withholding is sent.
``(b) Required Procedures.--The State disbursement unit shall use automated procedures, electronic processes, and computer-driven technology to the maximum extent feasible, efficient, and economical, for the collection and disbursement of support payments, including procedures--
``(1) for receipt of payments from parents, employers, and other States, and for disbursements to custodial parents and other obligees, the State agency, and the agencies of other States;
``(2) for accurate identification of payments;
``(3) to ensure prompt disbursement of the custodial parent's share of any payment; and
``(4) to furnish to any parent, upon request, timely information on the current status of support payments under an order requiring payments to be made by or to the parent, except that in cases described in subsection (a)(1)(B), the State disbursement unit shall not be required to convert and maintain in automated form records of payments kept pursuant to section 466(a)(8)(B)(iii) before the effective date of this section.
``(c) Timing of Disbursements.--
``(1) In general.--Except as provided in paragraph (2), the State disbursement unit shall distribute all amounts payable under section 457(a) within 2 business days after receipt from the employer or other source of periodic income, if sufficient information identifying the payee is provided.
``(2) Permissive retention of arrearages.--The State disbursement unit may delay the distribution of collections toward arrearages until the resolution of any timely appeal with respect to such arrearages.
``(d) Business Day Defined.--As used in this section, the term `business day' means a day on which State offices are open for regular business.''.
(c) Use of Automated System.--Section 454A, as added by section 344(a)(2) and as amended by section 311 of this Act, is amended by adding at the end the following new subsection:
``(g) Collection and Distribution of Support Payments.--
``(1) In general.--The State shall use the automated system required by this section, to the maximum extent feasible, to assist and facilitate the collection and disbursement of support payments through the State disbursement unit operated under section 454B, through the performance of functions, including, at a minimum--
``(A) transmission of orders and notices to employers (and other debtors) for the withholding of income--
``(i) within 2 business days after receipt of notice of, and the income source subject to, such withholding from a court, another State, an employer, the Federal Parent Locator Service, or another source recognized by the State; and
``(ii) using uniform formats prescribed by the Secretary;
``(B) ongoing monitoring to promptly identify failures to make timely payment of support; and
``(C) automatic use of enforcement procedures (including procedures authorized pursuant to section 466(c)) if payments are not timely made.
``(2) Business day defined.--As used in paragraph (1), the term `business day' means a day on which State offices are open for regular business.''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall become effective on October 1, 1998.
(2) Limited exception to unit handling payments.--Notwithstanding section 454B(b)(1) of the Social Security Act, as added by this section, any State which, as of the date of the enactment of this Act, processes the receipt of child support payments through local courts may, at the option of the State, continue to process through September 30, 1999, such payments through such courts as processed such payments on or before such date of enactment.
SEC. 313. STATE DIRECTORY OF NEW HIRES.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as amended by sections 301(b), 303(a) and 312(a) of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (26);
(2) by striking the period at the end of paragraph (27) and inserting ``; and''; and
(3) by adding after paragraph (27) the following new paragraph:
``(28) provide that, on and after October 1, 1997, the State will operate a State Directory of New Hires in accordance with section 453A.''.
(b) State Directory of New Hires.--Part D of title IV (42 U.S.C. 651-669) is amended by inserting after section 453 the following new section:
``SEC. 453A. STATE DIRECTORY OF NEW HIRES.
``(a) Establishment.--
``(1) In general.--
``(A) Requirement for States that have no directory.--Except as provided in subparagraph (B), not later than October 1, 1997, each State shall establish an automated directory (to be known as the `State Directory of New Hires') which shall contain information supplied in accordance with subsection (b) by employers on each newly hired employee.
``(B) States with new hire reporting in existence.--A State which has a new hire reporting law in existence on the date of the enactment of this section may continue to operate under the State law, but the State must meet the requirements of subsection (g)(2) not later than October 1, 1997, and the requirements of this section (other than subsection (g)(2)) not later than October 1, 1998.
``(2) Definitions.--As used in this section:
``(A) Employee.--The term `employee'--
``(i) means an individual who is an employee within the meaning of chapter 24 of the Internal Revenue Code of 1986; and
``(ii) does not include an employee of a Federal or State agency performing intelligence or counterintelligence functions, if the head of such agency has determined that reporting pursuant to paragraph (1) with respect to the employee could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.
``(B) Employer.--
``(i) In general.--The term `employer' has the meaning given such term in section 3401(d) of the Internal Revenue Code of 1986 and includes any governmental entity and any labor organization.
``(ii) Labor organization.--The term `labor organization' shall have the meaning given such term in section 2(5) of the National Labor Relations Act, and includes any entity (also known as a `hiring hall') which is used by the organization and an employer to carry out requirements described in section 8(f)(3) of such Act of an agreement between the organization and the employer.
``(b) Employer Information.--
``(1) Reporting requirement.--
``(A) In general.--Except as provided in subparagraphs (B) and (C), each employer shall furnish to the Directory of New Hires of the State in which a newly hired employee works, a report that contains the name, address, and social security number of the employee, and the name and address of, and identifying number assigned under section 6109 of the Internal Revenue Code of 1986 to, the employer.
``(B) Multistate employers.--An employer that has employees who are employed in 2 or more States and that transmits reports magnetically or electronically may comply with subparagraph (A) by designating 1 State in which such employer has employees to which the employer will transmit the report described in subparagraph (A), and transmitting such report to such State. Any employer that transmits reports pursuant to this subparagraph shall notify the Secretary in writing as to which State such employer designates for the purpose of sending reports.
``(C) Federal government employers.--Any department, agency, or instrumentality of the United States shall comply with subparagraph (A) by transmitting the report described in subparagraph (A) to the National Directory of New Hires established pursuant to section 453.
``(2) Timing of report.--Each State may provide the time within which the report required by paragraph (1) shall be made with respect to an employee, but such report shall be made--
``(A) not later than 20 days after the date the employer hires the employee; or
``(B) in the case of an employer transmitting reports magnetically or electronically, by 2 monthly transmissions
(if necessary) not less than 12 days nor more than 16 days apart.
``(c) Reporting Format and Method.--Each report required by subsection (b) shall be made on a W-4 form or, at the option of the employer, an equivalent form, and may be transmitted by 1st class mail, magnetically, or electronically.
``(d) Civil Money Penalties on Noncomplying Employers.--The State shall have the option to set a State civil money penalty which shall be less than--
``(1) $25; or
``(2) $500 if, under State law, the failure is the result of a conspiracy between the employer and the employee to not supply the required report or to supply a false or incomplete report.
``(e) Entry of Employer Information.--Information shall be entered into the data base maintained by the State Directory of New Hires within 5 business days of receipt from an employer pursuant to subsection (b).
``(f) Information Comparisons.--
``(1) In general.--Not later than May 1, 1998, an agency designated by the State shall, directly or by contract, conduct automated comparisons of the social security numbers reported by employers pursuant to subsection (b) and the social security numbers appearing in the records of the State case registry for cases being enforced under the State plan.
``(2) Notice of match.--When an information comparison conducted under paragraph (1) reveals a match with respect to the social security number of an individual required to provide support under a support order, the State Directory of New Hires shall provide the agency administering the State plan approved under this part of the appropriate State with the name, address, and social security number of the employee to whom the social security number is assigned, and the name and address of, and identifying number assigned under section 6109 of the Internal Revenue Code of 1986 to, the employer.
``(g) Transmission of Information.--
``(1) Transmission of wage withholding notices to employers.--Within 2 business days after the date information regarding a newly hired employee is entered into the State Directory of New Hires, the State agency enforcing the employee's child support obligation shall transmit a notice to the employer of the employee directing the employer to withhold from the income of the employee an amount equal to the monthly (or other periodic) child support obligation
(including any past due support obligation) of the employee, unless the employee's income is not subject to withholding pursuant to section 466(b)(3).
``(2) Transmissions to the national directory of new hires.--
``(A) New hire information.--Within 3 business days after the date information regarding a newly hired employee is entered into the State Directory of New Hires, the State Directory of New Hires shall furnish the information to the National Directory of New Hires.
``(B) Wage and unemployment compensation information.--The State Directory of New Hires shall, on a quarterly basis, furnish to the National Directory of New Hires extracts of the reports required under section 303(a)(6) to be made to the Secretary of Labor concerning the wages and unemployment compensation paid to individuals, by such dates, in such format, and containing such information as the Secretary of Health and Human Services shall specify in regulations.
``(3) Business day defined.--As used in this subsection, the term `business day' means a day on which State offices are open for regular business.
``(h) Other Uses of New Hire Information.--
``(1) Location of child support obligors.--The agency administering the State plan approved under this part shall use information received pursuant to subsection (f)(2) to locate individuals for purposes of establishing paternity and establishing, modifying, and enforcing child support obligations, and may disclose such information to any agent of the agency that is under contract with the agency to carry out such purposes.
``(2) Verification of eligibility for certain programs.--A State agency responsible for administering a program specified in section 1137(b) shall have access to information reported by employers pursuant to subsection (b) of this section for purposes of verifying eligibility for the program.
``(3) Administration of employment security and workers' compensation.--State agencies operating employment security and workers' compensation programs shall have access to information reported by employers pursuant to subsection (b) for the purposes of administering such programs.''.
(c) Quarterly Wage Reporting.--Section 1137(a)(3) (42 U.S.C. 1320b-7(a)(3)) is amended--
(1) by inserting ``(including State and local governmental entities and labor organizations (as defined in section 453A(a)(2)(B)(iii))'' after ``employers''; and
(2) by inserting ``, and except that no report shall be filed with respect to an employee of a State or local agency performing intelligence or counterintelligence functions, if the head of such agency has determined that filing such a report could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission'' after ``paragraph (2)''.
(d) Disclosure to Certain Agents.--Section 303(e) (42 U.S.C. 503(e)) is amended by adding at the end the following:
``(5) A State or local child support enforcement agency may disclose to any agent of the agency that is under contract with the agency to carry out the purposes described in paragraph (1)(B) wage information that is disclosed to an officer or employee of the agency under paragraph (1)(A). Any agent of a State or local child support agency that receives wage information under this paragraph shall comply with the safeguards established pursuant to paragraph (1)(B).''.
SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.
(a) Mandatory Income Withholding.--
(1) In general.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is amended to read as follows:
``(1)(A) Procedures described in subsection (b) for the withholding from income of amounts payable as support in cases subject to enforcement under the State plan.
``(B) Procedures under which the income of a person with a support obligation imposed by a support order issued (or modified) in the State before October 1, 1996, if not otherwise subject to withholding under subsection (b), shall become subject to withholding as provided in subsection (b) if arrearages occur, without the need for a judicial or administrative hearing.''.
(2) Conforming amendments.--
(A) Section 466(b) (42 U.S.C. 666(b)) is amended in the matter preceding paragraph (1), by striking ``subsection
(a)(1)'' and inserting ``subsection (a)(1)(A)''.
(B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended to read as follows:
``(4)(A) Such withholding must be carried out in full compliance with all procedural due process requirements of the State, and the State must send notice to each noncustodial parent to whom paragraph (1) applies--
``(i) that the withholding has commenced; and
``(ii) of the procedures to follow if the noncustodial parent desires to contest such withholding on the grounds that the withholding or the amount withheld is improper due to a mistake of fact.
``(B) The notice under subparagraph (A) of this paragraph shall include the information provided to the employer under paragraph (6)(A).''.
(C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended by striking all that follows ``administered by'' and inserting
``the State through the State disbursement unit established pursuant to section 454B, in accordance with the requirements of section 454B.''.
(D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is amended--
(i) in clause (i), by striking ``to the appropriate agency'' and all that follows and inserting ``to the State disbursement unit within 7 business days after the date the amount would (but for this subsection) have been paid or credited to the employee, for distribution in accordance with this part. The employer shall withhold funds as directed in the notice, except that when an employer receives an income withholding order issued by another State, the employer shall apply the income withholding law of the state of the obligor's principal place of employment in determining--
``(I) the employer's fee for processing an income withholding order;
``(II) the maximum amount permitted to be withheld from the obligor's income;
``(III) the time periods within which the employer must implement the income withholding order and forward the child support payment;
``(IV) the priorities for withholding and allocating income withheld for multiple child support obligees; and
``(V) any withholding terms or conditions not specified in the order.An employer who complies with an income withholding notice that is regular on its face shall not be subject to civil liability to any individual or agency for conduct in compliance with the notice.'';
(ii) in clause (ii), by inserting ``be in a standard format prescribed by the Secretary, and'' after ``shall''; and
(iii) by adding at the end the following new clause:
``(iii) As used in this subparagraph, the term `business day' means a day on which State offices are open for regular business.''.
(E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is amended by striking ``any employer'' and all that follows and inserting ``any employer who--
``(i) discharges from employment, refuses to employ, or takes disciplinary action against any noncustodial parent subject to income withholding required by this subsection because of the existence of such withholding and the obligations or additional obligations which it imposes upon the employer; or
``(ii) fails to withhold support from income or to pay such amounts to the State disbursement unit in accordance with this subsection.''.
(F) Section 466(b) (42 U.S.C. 666(b)) is amended by adding at the end the following new paragraph:
``(11) Procedures under which the agency administering the State plan approved under this part may execute a withholding order without advance notice to the obligor, including issuing the withholding order through electronic means.''.
(b) Definition of Income.--
(1) In general.--Section 466(b)(8) (42 U.S.C. 666(b)(8)) is amended to read as follows:
``(8) For purposes of subsection (a) and this subsection, the term `income' means any periodic form of payment due to an individual, regardless of source, including wages, salaries, commissions, bonuses, worker's compensation, disability, payments pursuant to a pension or retirement program, and interest.''.
(2) Conforming amendments.--
(A) Subsections (a)(8)(A), (a)(8)(B)(i), (b)(3)(A),
(b)(3)(B), (b)(6)(A)(i), and (b)(6)(C), and (b)(7) of section 466 (42 U.S.C. 666(a)(8)(A), (a)(8)(B)(i), (b)(3)(A),
(b)(3)(B), (b)(6)(A)(i), and (b)(6)(C), and (b)(7)) are each amended by striking ``wages'' each place such term appears and inserting ``income''.
(B) Section 466(b)(1) (42 U.S.C. 666(b)(1)) is amended by striking ``wages (as defined by the State for purposes of this section)'' and inserting ``income''.
(c) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is repealed.
SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by inserting after paragraph (11) the following new paragraph:
``(12) Locator information from interstate networks.--Procedures to ensure that all Federal and State agencies conducting activities under this part have access to any system used by the State to locate an individual for purposes relating to motor vehicles or law enforcement.''.
SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.
(a) Expanded Authority To Locate Individuals and Assets.--Section 453 (42 U.S.C. 653) is amended--
(1) in subsection (a), by striking all that follows
``subsection (c))'' and inserting ``, for the purpose of establishing parentage, establishing, setting the amount of, modifying, or enforcing child support obligations, or enforcing child custody or visitation orders--
``(1) information on, or facilitating the discovery of, the location of any individual--
``(A) who is under an obligation to pay child support or provide child custody or visitation rights;
``(B) against whom such an obligation is sought;
``(C) to whom such an obligation is owed,including the individual's social security number (or numbers), most recent address, and the name, address, and employer identification number of the individual's employer;
``(2) information on the individual's wages (or other income) from, and benefits of, employment (including rights to or enrollment in group health care coverage); and
``(3) information on the type, status, location, and amount of any assets of, or debts owed by or to, any such individual.''; and
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by striking
``social security'' and all that follows through ``absent parent'' and inserting ``information described in subsection
(a)''; and
(B) in the flush paragraph at the end, by adding the following: ``No information shall be disclosed to any person if the State has notified the Secretary that the State has reasonable evidence of domestic violence or child abuse and the disclosure of such information could be harmful to the custodial parent or the child of such parent. Information received or transmitted pursuant to this section shall be subject to the safeguard provisions contained in section 454(26).''.
(b) Authorized Person for Information Regarding Visitation Rights.--Section 453(c) (42 U.S.C. 653(c)) is amended--
(1) in paragraph (1), by striking ``support'' and inserting
``support or to seek to enforce orders providing child custody or visitation rights''; and
(2) in paragraph (2), by striking ``, or any agent of such court; and'' and inserting ``or to issue an order against a resident parent for child custody or visitation rights, or any agent of such court;''.
(c) Reimbursement for Information From Federal Agencies.--Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th sentence by inserting ``in an amount which the Secretary determines to be reasonable payment for the information exchange (which amount shall not include payment for the costs of obtaining, compiling, or maintaining the information)'' before the period.
(d) Reimbursement for Reports by State Agencies.--Section 453 (42 U.S.C. 653) is amended by adding at the end the following new subsection:
``(g) Reimbursement for Reports by State Agencies.--The Secretary may reimburse Federal and State agencies for the costs incurred by such entities in furnishing information requested by the Secretary under this section in an amount which the Secretary determines to be reasonable payment for the information exchange (which amount shall not include payment for the costs of obtaining, compiling, or maintaining the information).''.
(e) Conforming Amendments.--
(1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), and 663(f)) are each amended by inserting ``Federal'' before
``Parent'' each place such term appears.
(2) Section 453 (42 U.S.C. 653) is amended in the heading by adding ``federal'' before ``parent''.
(f) New Components.--Section 453 (42 U.S.C. 653), as amended by subsection (d) of this section, is amended by adding at the end the following new subsections:
``(h) Federal Case Registry of Child Support Orders.--
``(1) In general.--Not later than October 1, 1998, in order to assist States in administering programs under State plans approved under this part and programs funded under part A, and for the other purposes specified in this section, the Secretary shall establish and maintain in the Federal Parent Locator Service an automated registry (which shall be known as the `Federal Case Registry of Child Support Orders'), which shall contain abstracts of support orders and other information described in paragraph (2) with respect to each case in each State case registry maintained pursuant to section 454A(e), as furnished (and regularly updated), pursuant to section 454A(f), by State agencies administering programs under this part.
``(2) Case information.--The information referred to in paragraph (1) with respect to a case shall be such information as the Secretary may specify in regulations
(including the names, social security numbers or other uniform identification numbers, and State case identification numbers) to identify the individuals who owe or are owed support (or with respect to or on behalf of whom support obligations are sought to be established), and the State or States which have the case.
``(i) National Directory of New Hires.--
``(1) In general.--In order to assist States in administering programs under State plans approved under this part and programs funded under part A, and for the other purposes specified in this section, the Secretary shall, not later than October 1, 1997, establish and maintain in the Federal Parent Locator Service an automated directory to be known as the National Directory of New Hires, which shall contain the information supplied pursuant to section 453A(g)(2).
``(2) Entry of data.--Information shall be entered into the data base maintained by the National Directory of New Hires within 2 business days of receipt pursuant to section 453A(g)(2).
``(3) Administration of federal tax laws.--The Secretary of the Treasury shall have access to the information in the National Directory of New Hires for purposes of administering section 32 of the Internal Revenue Code of 1986, or the advance payment of the earned income tax credit under section 3507 of such Code, and verifying a claim with respect to employment in a tax return.
``(4) List of multistate employers.--The Secretary shall maintain within the National Directory of New Hires a list of multistate employers that report information regarding newly hired employees pursuant to section 453A(b)(1)(B), and the State which each such employer has designated to receive such information.
``(j) Information Comparisons and Other Disclosures.--
``(1) Verification by social security administration.--
``(A) In general.--The Secretary shall transmit information on individuals and employers maintained under this section to the Social Security Administration to the extent necessary for verification in accordance with subparagraph (B).
``(B) Verification by ssa.--The Social Security Administration shall verify the accuracy of, correct, or supply to the extent possible, and report to the Secretary, the following information supplied by the Secretary pursuant to subparagraph (A):
``(i) The name, social security number, and birth date of each such individual.
``(ii) The employer identification number of each such employer.
``(2) Information comparisons.--For the purpose of locating individuals in a paternity establishment case or a case involving the establishment, modification, or enforcement of a support order, the Secretary shall--
``(A) compare information in the National Directory of New Hires against information in the support case abstracts in the Federal Case Registry of Child Support Orders not less often than every 2 business days; and
``(B) within 2 business days after such a comparison reveals a match with respect to an individual, report the information to the State agency responsible for the case.
``(3) Information comparisons and disclosures of information in all registries for title iv program purposes.--To the extent and with the frequency that the Secretary determines to be effective in assisting States to carry out their responsibilities under programs operated under this part and programs funded under part A, the Secretary shall--
``(A) compare the information in each component of the Federal Parent Locator Service maintained under this section against the information in each other such component (other than the comparison required by paragraph (2)), and report instances in which such a comparison reveals a match with respect to an individual to State agencies operating such programs; and
``(B) disclose information in such registries to such State agencies.
``(4) Provision of new hire information to the social security administration.--The National Directory of New Hires shall provide the Commissioner of Social Security with all information in the National Directory.
``(5) Research.--The Secretary may provide access to information reported by employers pursuant to section 453A(b) for research purposes found by the Secretary to be likely to contribute to achieving the purposes of part A or this part, but without personal identifiers.
``(k) Fees.--
``(1) For ssa verification.--The Secretary shall reimburse the Commissioner of Social Security, at a rate negotiated between the Secretary and the Commissioner, for the costs incurred by the Commissioner in performing the verification services described in subsection (j).
``(2) For information from state directories of new hires.--The Secretary shall reimburse costs incurred by State directories of new hires in furnishing information as required by subsection (j)(3), at rates which the Secretary determines to be reasonable (which rates shall not include payment for the costs of obtaining, compiling, or maintaining such information).
``(3) For information furnished to state and federal agencies.--A State or Federal agency that receives information from the Secretary pursuant to this section shall reimburse the Secretary for costs incurred by the Secretary in furnishing the information, at rates which the Secretary determines to be reasonable (which rates shall include payment for the costs of obtaining, verifying, maintaining, and comparing the information).
``(l) Restriction on Disclosure and Use.--Information in the Federal Parent Locator Service, and information resulting from comparisons using such information, shall not be used or disclosed except as expressly provided in this section, subject to section 6103 of the Internal Revenue Code of 1986.
``(m) Information Integrity and Security.--The Secretary shall establish and implement safeguards with respect to the entities established under this section designed to--
``(1) ensure the accuracy and completeness of information in the Federal Parent Locator Service; and
``(2) restrict access to confidential information in the Federal Parent Locator Service to authorized persons, and restrict use of such information to authorized purposes.
``(n) Federal Government Reporting.--Each department, agency, and instrumentality of the United States shall on a quarterly basis report to the Federal Parent Locator Service the name and social security number of each employee and the wages paid to the employee during the previous quarter, except that such a report shall not be filed with respect to an employee of a department, agency, or instrumentality performing intelligence or counterintelligence functions, if the head of such department, agency, or instrumentality has determined that filing such a report could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.''.
(g) Conforming Amendments.--
(1) To part d of title iv of the social security act.--
(A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as follows:
``(B) the Federal Parent Locator Service established under section 453;''.
(B) Section 454(13) (42 U.S.C.654(13)) is amended by inserting ``and provide that information requests by parents who are residents of other States be treated with the same priority as requests by parents who are residents of the State submitting the plan'' before the semicolon.
(2) To federal unemployment tax act.--Section 3304(a)(16) of the Internal Revenue Code of 1986 is amended--
(A) by striking ``Secretary of Health, Education, and Welfare'' each place such term appears and inserting
``Secretary of Health and Human Services'';
(B) in subparagraph (B), by striking ``such information'' and all that follows and inserting ``information furnished under subparagraph (A) or (B) is used only for the purposes authorized under such subparagraph;'';
(C) by striking ``and'' at the end of subparagraph (A);
(D) by redesignating subparagraph (B) as subparagraph (C); and
(E) by inserting after subparagraph (A) the following new subparagraph:
``(B) wage and unemployment compensation information contained in the records of such agency shall be furnished to the Secretary of Health and Human Services (in accordance with regulations promulgated by such Secretary) as necessary for the purposes of the National Directory of New Hires established under section 453(i) of the Social Security Act, and''.
(3) To state grant program under title iii of the social security act.--Subsection (h) of section 303 (42 U.S.C. 503) is amended to read as follows:
``(h)(1) The State agency charged with the administration of the State law shall, on a reimbursable basis--
``(A) disclose quarterly, to the Secretary of Health and Human Services, wage and claim information, as required pursuant to section 453(i)(1), contained in the records of such agency;
``(B) ensure that information provided pursuant to subparagraph (A) meets such standards relating to correctness and verification as the Secretary of Health and Human Services, with the concurrence of the Secretary of Labor, may find necessary; and
``(C) establish such safeguards as the Secretary of Labor determines are necessary to insure that information disclosed under subparagraph (A) is used only for purposes of section 453(i)(1) in carrying out the child support enforcement program under title IV.
``(2) Whenever the Secretary of Labor, after reasonable notice and opportunity for hearing to the State agency charged with the administration of the State law, finds that there is a failure to comply substantially with the requirements of paragraph (1), the Secretary of Labor shall notify such State agency that further payments will not be made to the State until the Secretary of Labor is satisfied that there is no longer any such failure. Until the Secretary of Labor is so satisfied, the Secretary shall make no future certification to the Secretary of the Treasury with respect to the State.
``(3) For purposes of this subsection--
``(A) the term `wage information' means information regarding wages paid to an individual, the social security account number of such individual, and the name, address, State, and the Federal employer identification number of the employer paying such wages to such individual; and
``(B) the term `claim information' means information regarding whether an individual is receiving, has received, or has made application for, unemployment compensation, the amount of any such compensation being received (or to be received by such individual), and the individual's current
(or most recent) home address.''.
(4) Disclosure of certain information to agents of child support enforcement agencies.--
(A) In general.--Paragraph (6) of section 6103(l) of the Internal Revenue Code of 1986 (relating to disclosure of return information to Federal, State, and local child support enforcement agencies) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:
``(B) Disclosure to certain agents.--The following information disclosed to any child support enforcement agency under subparagraph (A) with respect to any individual with respect to whom child support obligations are sought to be established or enforced may be disclosed by such agency to any agent of such agency which is under contract with such agency to carry out the purposes described in subparagraph
(C):
``(i) The address and social security account number (or numbers) of such individual.
``(ii) The amount of any reduction under section 6402(c)
(relating to offset of past-due support against overpayments) in any overpayment otherwise payable to such individual.''
(B) Conforming amendments.--
(i) Paragraph (3) of section 6103(a) of such Code is amended by striking ``(l)(12)'' and inserting ``paragraph (6) or (12) of subsection (l)''.
(ii) Subparagraph (C) of section 6103(l)(6) of such Code, as redesignated by subsection (a), is amended to read as follows:
``(C) Restriction on disclosure.--Information may be disclosed under this paragraph only for purposes of, and to the extent necessary in, establishing and collecting child support obligations from, and locating, individuals owing such obligations.''
(iii) The material following subparagraph (F) of section 6103(p)(4) of such Code is amended by striking ``subsection
(l)(12)(B)'' and inserting ``paragraph (6)(A) or (12)(B) of subsection (l)''.
(h) Requirement for Cooperation.--The Secretary of Labor and the Secretary of Health and Human Services shall work jointly to develop cost-effective and efficient methods of accessing the information in the various State directories of new hires and the National Directory of New Hires as established pursuant to the amendments made by this subtitle. In developing these methods the Secretaries shall take into account the impact, including costs, on the States, and shall also consider the need to insure the proper and authorized use of wage record information.
SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR
USE IN CHILD SUPPORT ENFORCEMENT.
Section 466(a) (42 U.S.C. 666(a)), as amended by section 315 of this Act, is amended by inserting after paragraph (12) the following new paragraph:
``(13) Recording of social security numbers in certain family matters.--Procedures requiring that the social security number of--
``(A) any applicant for a professional license, commercial driver's license, occupational license, or marriage license be recorded on the application;
``(B) any individual who is subject to a divorce decree, support order, or paternity determination or acknowledgment be placed in the records relating to the matter; and
``(C) any individual who has died be placed in the records relating to the death and be recorded on the death certificate.For purposes of subparagraph (A), if a State allows the use of a number other than the social security number, the State shall so advise any applicants.''.
Subtitle C--Streamlining and Uniformity of Procedures
SEC. 321. ADOPTION OF UNIFORM STATE LAWS.
Section 466 (42 U.S.C. 666) is amended by adding at the end the following new subsection:
``(f) Uniform Interstate Family Support Act.--In order to satisfy section 454(20)(A), on and after January 1, 1998, each State must have in effect the Uniform Interstate Family Support Act, as approved by the American Bar Association on February 9, 1993, together with any amendments officially adopted before January 1, 1998 by the National Conference of Commissioners on Uniform State Laws.''.
SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD
SUPPORT ORDERS.
Section 1738B of title 28, United States Code, is amended--
(1) in subsection (a)(2), by striking ``subsection (e)'' and inserting ``subsections (e), (f), and (i)'';
(2) in subsection (b), by inserting after the 2nd undesignated paragraph the following:
`` `child's home State' means the State in which a child lived with a parent or a person acting as parent for at least 6 consecutive months immediately preceding the time of filing of a petition or comparable pleading for support and, if a child is less than 6 months old, the State in which the child lived from birth with any of them. A period of temporary absence of any of them is counted as part of the 6-month period.'';
(3) in subsection (c), by inserting ``by a court of a State'' before ``is made'';
(4) in subsection (c)(1), by inserting ``and subsections
(e), (f), and (g)'' after ``located'';
(5) in subsection (d)--
(A) by inserting ``individual'' before ``contestant''; and
(B) by striking ``subsection (e)'' and inserting
``subsections (e) and (f)'';
(6) in subsection (e), by striking ``make a modification of a child support order with respect to a child that is made'' and inserting ``modify a child support order issued'';
(7) in subsection (e)(1), by inserting ``pursuant to subsection (i)'' before the semicolon;
(8) in subsection (e)(2)--
(A) by inserting ``individual'' before ``contestant'' each place such term appears; and
(B) by striking ``to that court's making the modification and assuming'' and inserting ``with the State of continuing, exclusive jurisdiction for a court of another State to modify the order and assume'';
(9) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively;
(10) by inserting after subsection (e) the following new subsection:
``(f) Recognition of Child Support Orders.--If 1 or more child support orders have been issued with regard to an obligor and a child, a court shall apply the following rules in determining which order to recognize for purposes of continuing, exclusive jurisdiction and enforcement:
``(1) If only 1 court has issued a child support order, the order of that court must be recognized.
``(2) If 2 or more courts have issued child support orders for the same obligor and child, and only 1 of the courts would have continuing, exclusive jurisdiction under this section, the order of that court must be recognized.
``(3) If 2 or more courts have issued child support orders for the same obligor and child, and more than 1 of the courts would have continuing, exclusive jurisdiction under this section, an order issued by a court in the current home State of the child must be recognized, but if an order has not been issued in the current home State of the child, the order most recently issued must be recognized.
``(4) If 2 or more courts have issued child support orders for the same obligor and child, and none of the courts would have continuing, exclusive jurisdiction under this section, a court may issue a child support order, which must be recognized.
``(5) The court that has issued an order recognized under this subsection is the court having continuing, exclusive jurisdiction.'';
(11) in subsection (g) (as so redesignated)--
(A) by striking ``Prior'' and inserting ``Modified''; and
(B) by striking ``subsection (e)'' and inserting
``subsections (e) and (f)'';
(12) in subsection (h) (as so redesignated)--
(A) in paragraph (2), by inserting ``including the duration of current payments and other obligations of support'' before the comma; and
(B) in paragraph (3), by inserting ``arrears under'' after
``enforce''; and
(13) by adding at the end the following new subsection:
``(i) Registration for Modification.--If there is no individual contestant or child residing in the issuing State, the party or support enforcement agency seeking to modify, or to modify and enforce, a child support order issued in another State shall register that order in a State with jurisdiction over the nonmovant for the purpose of modification.''.
SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315 and 317 of this Act, is amended by inserting after paragraph (13) the following new paragraph:
``(14) Administrative enforcement in interstate cases.--Procedures under which--
``(A)(i) the State shall respond within 5 business days to a request made by another State to enforce a support order; and
``(ii) the term `business day' means a day on which State offices are open for regular business;
``(B) the State may, by electronic or other means, transmit to another State a request for assistance in a case involving the enforcement of a support order, which request--
``(i) shall include such information as will enable the State to which the request is transmitted to compare the information about the case to the information in the data bases of the State; and
``(ii) shall constitute a certification by the requesting State--
``(I) of the amount of support under the order the payment of which is in arrears; and
``(II) that the requesting State has complied with all procedural due process requirements applicable to the case;
``(C) if the State provides assistance to another State pursuant to this paragraph with respect to a case, neither State shall consider the case to be transferred to the caseload of such other State; and
``(D) the State shall maintain records of--
``(i) the number of such requests for assistance received by the State;
``(ii) the number of cases for which the State collected support in response to such a request; and
``(iii) the amount of such collected support.''.
SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.
(a) Promulgation.--Section 452(a) (42 U.S.C. 652(a)) is amended--
(1) by striking ``and'' at the end of paragraph (9);
(2) by striking the period at the end of paragraph (10) (as amended by section 346(a) of this Act) and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(11) not later than October 1, 1996, after consulting with the State directors of programs under this part, promulgate forms to be used by States in interstate cases for--
``(A) collection of child support through income withholding;
``(B) imposition of liens; and
``(C) administrative subpoenas.''.
(b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is amended--
(1) by striking ``and'' at the end of subparagraph (C);
(2) by inserting ``and'' at the end of subparagraph (D); and
(3) by adding at the end the following new subparagraph:
``(E) not later than March 1, 1997, in using the forms promulgated pursuant to section 452(a)(11) for income withholding, imposition of liens, and issuance of administrative subpoenas in interstate child support cases;''.
SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.
(a) State Law Requirements.--Section 466 (42 U.S.C. 666), as amended by section 314 of this Act, is amended--
(1) in subsection (a)(2), by striking the first sentence and inserting the following: ``Expedited administrative and judicial procedures (including the procedures specified in subsection (c)) for establishing paternity and for establishing, modifying, and enforcing support obligations.''; and
(2) by inserting after subsection (b) the following new subsection:
``(c) Expedited Procedures.--The procedures specified in this subsection are the following:
``(1) Administrative action by state agency.--Procedures which give the State agency the authority to take the following actions relating to establishment of paternity or to establishment, modification, or enforcement of support orders, without the necessity of obtaining an order from any other judicial or administrative tribunal, and to recognize and enforce the authority of State agencies of other States to take the following actions:
``(A) Genetic testing.--To order genetic testing for the purpose of paternity establishment as provided in section 466(a)(5).
``(B) Financial or other information.--To subpoena any financial or other information needed to establish, modify, or enforce a support order, and to impose penalties for failure to respond to such a subpoena.
``(C) Response to state agency request.--To require all entities in the State (including for-profit, nonprofit, and governmental employers) to provide promptly, in response to a request by the State agency of that or any other State administering a program under this part, information on the employment, compensation, and benefits of any individual employed by such entity as an employee or contractor, and to sanction failure to respond to any such request.
``(D) Access to information contained in certain records.--To obtain access, subject to safeguards on privacy and information security, and subject to the nonliability of entities that afford such access under this subparagraph, to information contained in the following records (including automated access, in the case of records maintained in automated data bases):
``(i) Records of other State and local government agencies, including--
``(I) vital statistics (including records of marriage, birth, and divorce);
``(II) State and local tax and revenue records (including information on residence address, employer, income and assets);
``(III) records concerning real and titled personal property;
``(IV) records of occupational and professional licenses, and records concerning the ownership and control of corporations, partnerships, and other business entities;
``(V) employment security records;
``(VI) records of agencies administering public assistance programs;
``(VII) records of the motor vehicle department; and
``(VIII) corrections records.
``(ii) Certain records held by private entities with respect to individuals who owe or are owed support (or against or with respect to whom a support obligation is sought), consisting of--
``(I) the names and addresses of such individuals and the names and addresses of the employers of such individuals, as appearing in customer records of public utilities and cable television companies, pursuant to an administrative subpoena authorized by subparagraph (B); and
``(II) information (including information on assets and liabilities) on such individuals held by financial institutions.
``(E) Change in payee.--In cases in which support is subject to an assignment in order to comply with a requirement imposed pursuant to part A or section 1912, or to a requirement to pay through the State disbursement unit established pursuant to section 454B, upon providing notice to obligor and obligee, to direct the obligor or other payor to change the payee to the appropriate government entity.
``(F) Income withholding.--To order income withholding in accordance with subsections (a)(1)(A) and (b) of section 466.
``(G) Securing assets.--In cases in which there is a support arrearage, to secure assets to satisfy the arrearage by--
``(i) intercepting or seizing periodic or lump-sum payments from--
``(I) a State or local agency, including unemployment compensation, workers' compensation, and other benefits; and
``(II) judgments, settlements, and lotteries;
``(ii) attaching and seizing assets of the obligor held in financial institutions;
``(iii) attaching public and private retirement funds; and
``(iv) imposing liens in accordance with subsection (a)(4) and, in appropriate cases, to force sale of property and distribution of proceeds.
``(H) Increase monthly payments.--For the purpose of securing overdue support, to increase the amount of monthly support payments to include amounts for arrearages, subject to such conditions or limitations as the State may provide.
Such procedures shall be subject to due process safeguards, including (as appropriate) requirements for notice, opportunity to contest the action, and opportunity for an appeal on the record to an independent administrative or judicial tribunal.
``(2) Substantive and procedural rules.--The expedited procedures required under subsection (a)(2) shall include the following rules and authority, applicable with respect to all proceedings to establish paternity or to establish, modify, or enforce support orders:
``(A) Locator information; presumptions concerning notice.--Procedures under which--
``(i) each party to any paternity or child support proceeding is required (subject to privacy safeguards) to file with the tribunal and the State case registry upon entry of an order, and to update as appropriate, information on location and identity of the party, including social security number, residential and mailing addresses, telephone number, driver's license number, and name, address, and telephone number of employer; and
``(ii) in any subsequent child support enforcement action between the parties, upon sufficient showing that diligent effort has been made to ascertain the location of such a party, the tribunal may deem State due process requirements for notice and service of process to be met with respect to the party, upon delivery of written notice to the most recent residential or employer address filed with the tribunal pursuant to clause (i).
``(B) Statewide jurisdiction.--Procedures under which--
``(i) the State agency and any administrative or judicial tribunal with authority to hear child support and paternity cases exerts statewide jurisdiction over the parties; and
``(ii) in a State in which orders are issued by courts or administrative tribunals, a case may be transferred between local jurisdictions in the State without need for any additional filing by the petitioner, or service of process upon the respondent, to retain jurisdiction over the parties.
``(3) Coordination with erisa.--Notwithstanding subsection
(d) of section 514 of the Employee Retirement Income Security Act of 1974 (relating to effect on other laws), nothing in this subsection shall be construed to alter, amend, modify, invalidate, impair, or supersede subsections (a), (b), and
(c) of such section 514 as it applies with respect to any procedure referred to in paragraph (1) and any expedited procedure referred to in paragraph (2), except to the extent that such procedure would be consistent with the requirements of section 206(d)(3) of such Act (relating to qualified domestic relations orders) or the requirements of section 609(a) of such Act (relating to qualified medical child support orders) if the reference in such section 206(d)(3) to a domestic relations order and the reference in such section 609(a) to a medical child support order were a reference to a support order referred to in paragraphs (1) and (2) relating to the same matters, respectively.''.
(b) Automation of State Agency Functions.--Section 454A, as added by section 344(a)(2) and as amended by sections 311 and 312(c) of this Act, is amended by adding at the end the following new subsection:
``(h) Expedited Administrative Procedures.--The automated system required by this section shall be used, to the maximum extent feasible, to implement the expedited administrative procedures required by section 466(c).''.
Subtitle D--Paternity Establishment
SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.
(a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) is amended to read as follows:
``(5) Procedures concerning paternity establishment.--
``(A) Establishment process available from birth until age 18.--
``(i) Procedures which permit the establishment of the paternity of a child at any time before the child attains 18 years of age.
``(ii) As of August 16, 1984, clause (i) shall also apply to a child for whom paternity has not been established or for whom a paternity action was brought but dismissed because a statute of limitations of less than 18 years was then in effect in the State.
``(B) Procedures concerning genetic testing.--
``(i) Genetic testing required in certain contested cases.--Procedures under which the State is required, in a contested paternity case (unless otherwise barred by State law) to require the child and all other parties (other than individuals found under section 454(29) to have good cause and other exceptions for refusing to cooperate) to submit to genetic tests upon the request of any such party, if the request is supported by a sworn statement by the party--
``(I) alleging paternity, and setting forth facts establishing a reasonable possibility of the requisite sexual contact between the parties; or
``(II) denying paternity, and setting forth facts establishing a reasonable possibility of the nonexistence of sexual contact between the parties.
``(ii) Other requirements.--Procedures which require the State agency, in any case in which the agency orders genetic testing--
``(I) to pay costs of such tests, subject to recoupment (if the State so elects) from the alleged father if paternity is established; and
``(II) to obtain additional testing in any case if an original test result is contested, upon request and advance payment by the contestant.
``(C) Voluntary paternity acknowledgment.--
``(i) Simple civil process.--Procedures for a simple civil process for voluntarily acknowledging paternity under which the State must provide that, before a mother and a putative father can sign an acknowledgment of paternity, the mother and the putative father must be given notice, orally and in writing, of the alternatives to, the legal consequences of, and the rights (including, if 1 parent is a minor, any rights afforded due to minority status) and responsibilities that arise from, signing the acknowledgment.
``(ii) Hospital-based program.--Such procedures must include a hospital-based program for the voluntary acknowledgment of paternity focusing on the period immediately before or after the birth of a child.
``(iii) Paternity establishment services.--
``(I) State-offered services.--Such procedures must require the State agency responsible for maintaining birth records to offer voluntary paternity establishment services.
``(II) Regulations.--
``(aa) Services offered by hospitals and birth record agencies.--The Secretary shall prescribe regulations governing voluntary paternity establishment services offered by hospitals and birth record agencies.
``(bb) Services offered by other entities.--The Secretary shall prescribe regulations specifying the types of other entities that may offer voluntary paternity establishment services, and governing the provision of such services, which shall include a requirement that such an entity must use the same notice provisions used by, use the same materials used by, provide the personnel providing such services with the same training provided by, and evaluate the provision of such services in the same manner as the provision of such services is evaluated by, voluntary paternity establishment programs of hospitals and birth record agencies.
``(iv) Use of paternity acknowledgment affidavit.--Such procedures must require the State to develop and use an affidavit for the voluntary acknowledgment of paternity which includes the minimum requirements of the affidavit specified by the Secretary under section 452(a)(7) for the voluntary acknowledgment of paternity, and to give full faith and credit to such an affidavit signed in any other State according to its procedures.
``(D) Status of signed paternity acknowledgment.--
``(i) Inclusion in birth records.--Procedures under which the name of the father shall be included on the record of birth of the child of unmarried parents only if--
``(I) the father and mother have signed a voluntary acknowledgment of paternity; or
``(II) a court or an administrative agency of competent jurisdiction has issued an adjudication of paternity.
Nothing in this clause shall preclude a State agency from obtaining an admission of paternity from the father for submission in a judicial or administrative proceeding, or prohibit the issuance of an order in a judicial or administrative proceeding which bases a legal finding of paternity on an admission of paternity by the father and any other additional showing required by State law.
``(ii) Legal finding of paternity.--Procedures under which a signed voluntary acknowledgment of paternity is considered a legal finding of paternity, subject to the right of any signatory to rescind the acknowledgment within the earlier of--
``(I) 60 days; or
``(II) the date of an administrative or judicial proceeding relating to the child (including a proceeding to establish a support order) in which the signatory is a party.
``(iii) Contest.--Procedures under which, after the 60-day period referred to in clause (ii), a signed voluntary acknowledgment of paternity may be challenged in court only on the basis of fraud, duress, or material mistake of fact, with the burden of proof upon the challenger, and under which the legal responsibilities (including child support obligations) of any signatory arising from the acknowledgment may not be suspended during the challenge, except for good cause shown.
``(E) Bar on acknowledgment ratification proceedings.--Procedures under which judicial or administrative proceedings are not required or permitted to ratify an unchallenged acknowledgment of paternity.
``(F) Admissibility of genetic testing results.--Procedures--
``(i) requiring the admission into evidence, for purposes of establishing paternity, of the results of any genetic test that is--
``(I) of a type generally acknowledged as reliable by accreditation bodies designated by the Secretary; and
``(II) performed by a laboratory approved by such an accreditation body;
``(ii) requiring an objection to genetic testing results to be made in writing not later than a specified number of days before any hearing at which the results may be introduced into evidence (or, at State option, not later than a specified number of days after receipt of the results); and
``(iii) making the test results admissible as evidence of paternity without the need for foundation testimony or other proof of authenticity or accuracy, unless objection is made.
``(G) Presumption of paternity in certain cases.--Procedures which create a rebuttable or, at the option of the State, conclusive presumption of paternity upon genetic testing results indicating a threshold probability that the alleged father is the father of the child.
``(H) Default orders.--Procedures requiring a default order to be entered in a paternity case upon a showing of service of process on the defendant and any additional showing required by State law.
``(I) No right to jury trial.--Procedures providing that the parties to an action to establish paternity are not entitled to a trial by jury.
``(J) Temporary support order based on probable paternity in contested cases.--Procedures which require that a temporary order be issued, upon motion by a party, requiring the provision of child support pending an administrative or judicial determination of parentage, if there is clear and convincing evidence of paternity (on the basis of genetic tests or other evidence).
``(K) Proof of certain support and paternity establishment costs.--Procedures under which bills for pregnancy, childbirth, and genetic testing are admissible as evidence without requiring third-party foundation testimony, and shall constitute prima facie evidence of amounts incurred for such services or for testing on behalf of the child.
``(L) Standing of putative fathers.--Procedures ensuring that the putative father has a reasonable opportunity to initiate a paternity action.
``(M) Filing of acknowledgments and adjudications in state registry of birth records.--Procedures under which voluntary acknowledgments and adjudications of paternity by judicial or administrative processes are filed with the State registry of birth records for comparison with information in the State case registry.''.
(b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ``, and specify the minimum requirements of an affidavit to be used for the voluntary acknowledgment of paternity which shall include the social security number of each parent and, after consultation with the States, other common elements as determined by such designee'' before the semicolon.
(c) Conforming Amendment.--Section 468 (42 U.S.C. 668) is amended by striking ``a simple civil process for voluntarily acknowledging paternity and''.
SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.
Section 454(23) (42 U.S.C. 654(23)) is amended by inserting
``and will publicize the availability and encourage the use of procedures for voluntary establishment of paternity and child support by means the State deems appropriate'' before the semicolon.
SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF
PART A ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections 301(b), 303(a), 312(a), and 313(a) of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (27);
(2) by striking the period at the end of paragraph (28) and inserting ``; and''; and
(3) by inserting after paragraph (28) the following new paragraph:
``(29) provide that the State agency responsible for administering the State plan--
``(A) shall make the determination (and redetermination at appropriate intervals) as to whether an individual who has applied for or is receiving assistance under the State program funded under part A of this title or the State program under title XIX is cooperating in good faith with the State in establishing the paternity of, or in establishing, modifying, or enforcing a support order for, any child of the individual by providing the State agency with the name of, and such other information as the State agency may require with respect to, the noncustodial parent of the child, subject to good cause and other exceptions which--
``(i) shall be defined, taking into account the best interests of the child, and
``(ii) shall be applied in each case,by, at the option of the State, the State agency administering the State program under part A, this part, or title XIX;
``(B) shall require the individual to supply additional necessary information and appear at interviews, hearings, and legal proceedings;
``(C) shall require the individual and the child to submit to genetic tests pursuant to judicial or administrative order;
``(D) may request that the individual sign a voluntary acknowledgment of paternity, after notice of the rights and consequences of such an acknowledgment, but may not require the individual to sign an acknowledgment or otherwise relinquish the right to genetic tests as a condition of cooperation and eligibility for assistance under the State program funded under part A, or the State program under title XIX; and
``(E) shall promptly notify the individual, the State agency administering the State program funded under part A, and the State agency administering the State program under title XIX, of each such determination, and if noncooperation is determined, the basis therefor.''.
Subtitle E--Program Administration and Funding
SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.
(a) Development of New System.--The Secretary of Health and Human Services, in consultation with State directors of programs under part D of title IV of the Social Security Act, shall develop a new incentive system to replace, in a revenue neutral manner, the system under section 458 of such Act. The new system shall provide additional payments to any State based on such State's performance under such a program. Not later than March 1, 1997, the Secretary shall report on the new system to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.
(b) Conforming Amendments to Present System.--Section 458
(42 U.S.C. 658) is amended--
(1) in subsection (a), by striking ``aid to families with dependent children under a State plan approved under part A of this title'' and inserting ``assistance under a program funded under part A'';
(2) in subsection (b)(1)(A), by striking ``section 402(a)(26)'' and inserting ``section 408(a)(3)'';
(3) in subsections (b) and (c)--
(A) by striking ``AFDC collections'' each place it appears and inserting ``title IV-A collections'', and
(B) by striking ``non-AFDC collections'' each place it appears and inserting ``non-title IV-A collections''; and
(4) in subsection (c), by striking ``combined AFDC/non-AFDC administrative costs'' both places it appears and inserting
``combined title IV-A/non-title IV-A administrative costs''.
(c) Calculation of Paternity Establishment Percentage.--
(1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is amended by striking ``75'' and inserting ``90''.
(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended--
(A) by redesignating subparagraphs (B) through (E) as subparagraphs (C) through (F), respectively, and by inserting after subparagraph (A) the following new subparagraph:
``(B) for a State with a paternity establishment percentage of not less than 75 percent but less than 90 percent for such fiscal year, the paternity establishment percentage of the State for the immediately preceding fiscal year plus 2 percentage points;''; and
(B) by adding at the end the following new flush sentence:
``In determining compliance under this section, a State may use as its paternity establishment percentage either the State's IV-D paternity establishment percentage (as defined in paragraph (2)(A)) or the State's statewide paternity establishment percentage (as defined in paragraph (2)(B)).''.
(3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i)--
(I) by striking ``paternity establishment percentage'' and inserting ``IV-D paternity establishment percentage''; and
(II) by striking ``(or all States, as the case may be)''; and
(ii) by striking ``and'' at the end; and
(B) by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:
``(B) the term `statewide paternity establishment percentage' means, with respect to a State for a fiscal year, the ratio (expressed as a percentage) that the total number of minor children--
``(i) who have been born out of wedlock, and
``(ii) the paternity of whom has been established or acknowledged during the fiscal year,
bears to the total number of children born out of wedlock during the preceding fiscal year; and''.
(4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
(A) by striking subparagraph (A) and redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and
(B) in subparagraph (A) (as so redesignated), by striking
``the percentage of children born out-of-wedlock in a State'' and inserting ``the percentage of children in a State who are born out of wedlock or for whom support has not been established''.
(d) Effective Dates.--
(1) Incentive adjustments.--
(A) In general.--The system developed under subsection (a) and the amendments made by subsection (b) shall become effective on October 1, 1999, except to the extent provided in subparagraph (B).
(B) Application of section 458.--Section 458 of the Social Security Act, as in effect on the day before the date of the enactment of this section, shall be effective for purposes of incentive payments to States for fiscal years before fiscal year 2000.
(2) Penalty reductions.--The amendments made by subsection
(c) shall become effective with respect to calendar quarters beginning on or after the date of the enactment of this Act.
SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) State Agency Activities.--Section 454 (42 U.S.C. 654) is amended--
(1) in paragraph (14), by striking ``(14)'' and inserting
``(14)(A)'';
(2) by redesignating paragraph (15) as subparagraph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the following new paragraph:
``(15) provide for--
``(A) a process for annual reviews of and reports to the Secretary on the State program operated under the State plan approved under this part, including such information as may be necessary to measure State compliance with Federal requirements for expedited procedures, using such standards and procedures as are required by the Secretary, under which the State agency will determine the extent to which the program is operated in compliance with this part; and
``(B) a process of extracting from the automated data processing system required by paragraph (16) and transmitting to the Secretary data and calculations concerning the levels of accomplishment (and rates of improvement) with respect to applicable performance indicators (including paternity establishment percentages) to the extent necessary for purposes of sections 452(g) and 458;''.
(b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 652(a)(4)) is amended to read as follows:
``(4)(A) review data and calculations transmitted by State agencies pursuant to section 454(15)(B) on State program accomplishments with respect to performance indicators for purposes of subsection (g) of this section and section 458;
``(B) review annual reports submitted pursuant to section 454(15)(A) and, as appropriate, provide to the State comments, recommendations for additional or alternative corrective actions, and technical assistance; and
``(C) conduct audits, in accordance with the Government auditing standards of the Comptroller General of the United States--
``(i) at least once every 3 years (or more frequently, in the case of a State which fails to meet the requirements of this part concerning performance standards and reliability of program data) to assess the completeness, reliability, and security of the data and the accuracy of the reporting systems used in calculating performance indicators under subsection (g) of this section and section 458;
``(ii) of the adequacy of financial management of the State program operated under the State plan approved under this part, including assessments of--
``(I) whether Federal and other funds made available to carry out the State program are being appropriately expended, and are properly and fully accounted for; and
``(II) whether collections and disbursements of support payments are carried out correctly and are fully accounted for; and
``(iii) for such other purposes as the Secretary may find necessary;''.
(c) Effective Date.--The amendments made by this section shall be effective with respect to calendar quarters beginning 12 months or more after the date of the enactment of this Act.
SEC. 343. REQUIRED REPORTING PROCEDURES.
(a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is amended by inserting ``, and establish procedures to be followed by States for collecting and reporting information required to be provided under this part, and establish uniform definitions (including those necessary to enable the measurement of State compliance with the requirements of this part relating to expedited processes) to be applied in following such procedures'' before the semicolon.
(b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as amended by sections 301(b), 303(a), 312(a), 313(a), and 333 of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (28);
(2) by striking the period at the end of paragraph (29) and inserting ``; and''; and
(3) by adding after paragraph (29) the following new paragraph:
``(30) provide that the State shall use the definitions established under section 452(a)(5) in collecting and reporting information as required under this part.''.
SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) Revised Requirements.--
(1) In general.--Section 454(16) (42 U.S.C. 654(16)) is amended--
(A) by striking ``, at the option of the State,'';
(B) by inserting ``and operation by the State agency'' after ``for the establishment'';
(C) by inserting ``meeting the requirements of section 454A'' after ``information retrieval system'';
(D) by striking ``in the State and localities thereof, so as (A)'' and inserting ``so as'';
(E) by striking ``(i)''; and
(F) by striking ``(including'' and all that follows and inserting a semicolon.
(2) Automated data processing.--Part D of title IV (42 U.S.C. 651-669) is amended by inserting after section 454 the following new section:
``SEC. 454A. AUTOMATED DATA PROCESSING.
``(a) In General.--In order for a State to meet the requirements of this section, the State agency administering the State program under this part shall have in operation a single statewide automated data processing and information retrieval system which has the capability to perform the tasks specified in this section with the frequency and in the manner required by or under this part.
``(b) Program Management.--The automated system required by this section shall perform such functions as the Secretary may specify relating to management of the State program under this part, including--
``(1) controlling and accounting for use of Federal, State, and local funds in carrying out the program; and
``(2) maintaining the data necessary to meet Federal reporting requirements under this part on a timely basis.
``(c) Calculation of Performance Indicators.--In order to enable the Secretary to determine the incentive payments and penalty adjustments required by sections 452(g) and 458, the State agency shall--
``(1) use the automated system--
``(A) to maintain the requisite data on State performance with respect to paternity establishment and child support enforcement in the State; and
``(B) to calculate the paternity establishment percentage for the State for each fiscal year; and
``(2) have in place systems controls to ensure the completeness and reliability of, and ready access to, the data described in paragraph (1)(A), and the accuracy of the calculations described in paragraph (1)(B).
``(d) Information Integrity and Security.--The State agency shall have in effect safeguards on the integrity, accuracy, and completeness of, access to, and use of data in the automated system required by this section, which shall include the following (in addition to such other safeguards as the Secretary may specify in regulations):
``(1) Policies restricting access.--Written policies concerning access to data by State agency personnel, and sharing of data with other persons, which--
``(A) permit access to and use of data only to the extent necessary to carry out the State program under this part; and
``(B) specify the data which may be used for particular program purposes, and the personnel permitted access to such data.
``(2) Systems controls.--Systems controls (such as passwords or blocking of fields) to ensure strict adherence to the policies described in paragraph (1).
``(3) Monitoring of access.--Routine monitoring of access to and use of the automated system, through methods such as audit trails and feedback mechanisms, to guard against and promptly identify unauthorized access or use.
``(4) Training and information.--Procedures to ensure that all personnel (including State and local agency staff and contractors) who may have access to or be required to use confidential program data are informed of applicable requirements and penalties (including those in section 6103 of the Internal Revenue Code of 1986), and are adequately trained in security procedures.
``(5) Penalties.--Administrative penalties (up to and including dismissal from employment) for unauthorized access to, or disclosure or use of, confidential data.''.
(3) Regulations.--The Secretary of Health and Human Services shall prescribe final regulations for implementation of section 454A of the Social Security Act not later than 2 years after the date of the enactment of this Act.
(4) Implementation timetable.--Section 454(24) (42 U.S.C. 654(24)), as amended by section 303(a)(1) of this Act, is amended to read as follows:
``(24) provide that the State will have in effect an automated data processing and information retrieval system--
``(A) by October 1, 1997, which meets all requirements of this part which were enacted on or before the date of enactment of the Family Support Act of 1988, and
``(B) by October 1, 2000, which meets all requirements of this part enacted on or before the date of the enactment of the Personal Responsibility and Work Opportunity Act of 1996, except that such deadline shall be extended by 1 day for each day (if any) by which the Secretary fails to meet the deadline imposed by section 344(a)(3) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996;''.
(b) Special Federal Matching Rate for Development Costs of Automated Systems.--
(1) In general.--Section 455(a) (42 U.S.C. 655(a)) is amended--
(A) in paragraph (1)(B)--
(i) by striking ``90 percent'' and inserting ``the percent specified in paragraph (3)'';
(ii) by striking ``so much of''; and
(iii) by striking ``which the Secretary'' and all that follows and inserting ``, and''; and
(B) by adding at the end the following new paragraph:
``(3)(A) The Secretary shall pay to each State, for each quarter in fiscal years 1996 and 1997, 90 percent of so much of the State expenditures described in paragraph (1)(B) as the Secretary finds are for a system meeting the requirements specified in section 454(16) (as in effect on September 30, 1995) but limited to the amount approved for States in the advance planning documents of such States submitted on or before September 30, 1995.
``(B)(i) The Secretary shall pay to each State, for each quarter in fiscal years 1996 through 2001, the percentage specified in clause (ii) of so much of the State expenditures described in paragraph (1)(B) as the Secretary finds are for a system meeting the requirements of sections 454(16) and 454A.
``(ii) The percentage specified in this clause is 80 percent.''.
(2) Temporary limitation on payments under special federal matching rate.--
(A) In general.--The Secretary of Health and Human Services may not pay more than $400,000,000 in the aggregate under section 455(a)(3)(B) of the Social Security Act for fiscal years 1996 through 2001.
(B) Allocation of limitation among states.--The total amount payable to a State under section 455(a)(3)(B) of such Act for fiscal years 1996 through 2001 shall not exceed the limitation determined for the State by the Secretary of Health and Human Services in regulations.
(C) Allocation formula.--The regulations referred to in subparagraph (B) shall prescribe a formula for allocating the amount specified in subparagraph (A) among States with plans approved under part D of title IV of the Social Security Act, which shall take into account--
(i) the relative size of State caseloads under such part; and
(ii) the level of automation needed to meet the automated data processing requirements of such part.
(c) Conforming Amendment.--Section 123(c) of the Family Support Act of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.
SEC. 345. TECHNICAL ASSISTANCE.
(a) For Training of Federal and State Staff, Research and Demonstration Programs, and Special Projects of Regional or National Significance.--Section 452 (42 U.S.C. 652) is amended by adding at the end the following new subsection:
``(j) Out of any money in the Treasury of the United States not otherwise appropriated, there is hereby appropriated to the Secretary for each fiscal year an amount equal to 1 percent of the total amount paid to the Federal Government pursuant to section 457(a) during the immediately preceding fiscal year (as determined on the basis of the most recent reliable data available to the Secretary as of the end of the 3rd calendar quarter following the end of such preceding fiscal year), to cover costs incurred by the Secretary for--
``(1) information dissemination and technical assistance to States, training of State and Federal staff, staffing studies, and related activities needed to improve programs under this part (including technical assistance concerning State automated systems required by this part); and
``(2) research, demonstration, and special projects of regional or national significance relating to the operation of State programs under this part.
The amount appropriated under this subsection shall remain available until expended.''.
(b) Operation of Federal Parent Locator Service.--Section 453 (42 U.S.C. 653), as amended by section 316 of this Act, is amended by adding at the end the following new subsection:
``(o) Recovery of Costs.--Out of any money in the Treasury of the United States not otherwise appropriated, there is hereby appropriated to the Secretary for each fiscal year an amount equal to 2 percent of the total amount paid to the Federal Government pursuant to section 457(a) during the immediately preceding fiscal year (as determined on the basis of the most recent reliable data available to the Secretary as of the end of the 3rd calendar quarter following the end of such preceding fiscal year), to cover costs incurred by the Secretary for operation of the Federal Parent Locator Service under this section, to the extent such costs are not recovered through user fees.''.
SEC. 346. REPORTS AND DATA COLLECTION BY THE SECRETARY.
(a) Annual Report to Congress.--
(1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is amended--
(A) by striking ``this part;'' and inserting ``this part, including--''; and
(B) by adding at the end the following new clauses:
``(i) the total amount of child support payments collected as a result of services furnished during the fiscal year to individuals receiving services under this part;
``(ii) the cost to the States and to the Federal Government of so furnishing the services; and
``(iii) the number of cases involving families--
``(I) who became ineligible for assistance under State programs funded under part A during a month in the fiscal year; and
``(II) with respect to whom a child support payment was received in the month;''.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is amended--
(A) in the matter preceding clause (i)--
(i) by striking ``with the data required under each clause being separately stated for cases'' and inserting
``separately stated for cases'';
(ii) by striking ``cases where the child was formerly receiving'' and inserting ``or formerly received'';
(iii) by inserting ``or 1912'' after ``471(a)(17)''; and
(iv) by inserting ``for'' before ``all other'';
(B) in each of clauses (i) and (ii), by striking ``, and the total amount of such obligations'';
(C) in clause (iii), by striking ``described in'' and all that follows and inserting ``in which support was collected during the fiscal year;'';
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause (vii), and inserting after clause (iii) the following new clauses:
``(iv) the total amount of support collected during such fiscal year and distributed as current support;
``(v) the total amount of support collected during such fiscal year and distributed as arrearages;
``(vi) the total amount of support due and unpaid for all fiscal years; and''.
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is amended by striking ``on the use of Federal courts and''.
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended--
(A) in subparagraph (H), by striking ``and'';
(B) in subparagraph (I), by striking the period and inserting ``; and''; and
(C) by inserting after subparagraph (I) the following new subparagraph:
``(J) compliance, by State, with the standards established pursuant to subsections (h) and (i).''.
(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by striking all that follows subparagraph (J), as added by paragraph (4).
(b) Effective Date.--The amendments made by subsection (a) shall be effective with respect to fiscal year 1997 and succeeding fiscal years.
Subtitle F--Establishment and Modification of Support Orders
SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF
CHILD SUPPORT ORDERS.
Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read as follows:
``(10) Review and adjustment of support orders upon request.--
``(A) 3-year cycle.--
``(i) In general.--Procedures under which every 3 years (or such shorter cycle as the State may determine), upon the request of either parent, or, if there is an assignment under part A, upon the request of the State agency under the State plan or of either parent, the State shall with respect to a support order being enforced under this part, taking into account the best interests of the child involved--
``(I) review and, if appropriate, adjust the order in accordance with the guidelines established pursuant to section 467(a) if the amount of the child support award under the order differs from the amount that would be awarded in accordance with the guidelines;
``(II) apply a cost-of-living adjustment to the order in accordance with a formula developed by the State; or
``(III) use automated methods (including automated comparisons with wage or State income tax data) to identify orders eligible for review, conduct the review, identify orders eligible for adjustment, and apply the appropriate adjustment to the orders eligible for adjustment under any threshold that may be established by the State.
``(ii) Opportunity to request review of adjustment.--If the State elects to conduct the review under subclause (II) or
(III) of clause (i), procedures which permit either party to contest the adjustment, within 30 days after the date of the notice of the adjustment, by making a request for review and, if appropriate, adjustment of the order in accordance with the child support guidelines established pursuant to section 467(a).
``(iii) No proof of change in circumstances necessary in 3-year cycle review.--Procedures which provide that any adjustment under clause (i) shall be made without a requirement for proof or showing of a change in circumstances.
``(B) Proof of substantial change in circumstances necessary in request for review outside 3-year cycle.--Procedures under which, in the case of a request for a review, and if appropriate, an adjustment outside the 3-year cycle (or such shorter cycle as the State may determine) under clause (i), the State shall review and, if the requesting party demonstrates a substantial change in circumstances, adjust the order in accordance with the guidelines established pursuant to section 467(a).
``(C) Notice of right to review.--Procedures which require the State to provide notice not less than once every 3 years to the parents subject to the order informing the parents of their right to request the State to review and, if appropriate, adjust the order pursuant to this paragraph. The notice may be included in the order.''.
SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES
RELATING TO CHILD SUPPORT.
Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended by adding at the end the following new paragraphs:
``(4) In response to a request by the head of a State or local child support enforcement agency (or a State or local government official authorized by the head of such an agency), if the person making the request certifies to the consumer reporting agency that--
``(A) the consumer report is needed for the purpose of establishing an individual's capacity to make child support payments or determining the appropriate level of such payments;
``(B) the paternity of the consumer for the child to which the obligation relates has been established or acknowledged by the consumer in accordance with State laws under which the obligation arises (if required by those laws);
``(C) the person has provided at least 10 days' prior notice to the consumer whose report is requested, by certified or registered mail to the last known address of the consumer, that the report will be requested; and
``(D) the consumer report will be kept confidential, will be used solely for a purpose described in subparagraph (A), and will not be used in connection with any other civil, administrative, or criminal proceeding, or for any other purpose.
``(5) To an agency administering a State plan under section 454 of the Social Security Act (42 U.S.C. 654) for use to set an initial or modified child support award.''.
SEC. 353. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING
FINANCIAL RECORDS TO STATE CHILD SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.
Part D of title IV (42 U.S.C. 651-669) is amended by adding at the end the following:
``SEC. 469A. NONLIABILITY FOR FINANCIAL INSTITUTIONS
PROVIDING FINANCIAL RECORDS TO STATE CHILD
SUPPORT ENFORCEMENT AGENCIES IN CHILD SUPPORT
CASES.
``(a) In General.--Notwithstanding any other provision of Federal or State law, a financial institution shall not be liable under any Federal or State law to any person for disclosing any financial record of an individual to a State child support enforcement agency attempting to establish, modify, or enforce a child support obligation of such individual.
``(b) Prohibition of Disclosure of Financial Record Obtained by State Child Support Enforcement Agency.--A State child support enforcement agency which obtains a financial record of an individual from a financial institution pursuant to subsection (a) may disclose such financial record only for the purpose of, and to the extent necessary in, establishing, modifying, or enforcing a child support obligation of such individual.
``(c) Civil Damages for Unauthorized Disclosure.--
``(1) Disclosure by state officer or employee.--If any person knowingly, or by reason of negligence, discloses a financial record of an individual in violation of subsection
(b), such individual may bring a civil action for damages against such person in a district court of the United States.
``(2) No liability for good faith but erroneous interpretation.--No liability shall arise under this subsection with respect to any disclosure which results from a good faith, but erroneous, interpretation of subsection
(b).
``(3) Damages.--In any action brought under paragraph (1), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of--
``(A) the greater of--
``(i) $1,000 for each act of unauthorized disclosure of a financial record with respect to which such defendant is found liable; or
``(ii) the sum of--
``(I) the actual damages sustained by the plaintiff as a result of such unauthorized disclosure; plus
``(II) in the case of a willful disclosure or a disclosure which is the result of gross negligence, punitive damages; plus
``(B) the costs (including attorney's fees) of the action.
``(d) Definitions.--For purposes of this section--
``(1) Financial institution.--The term `financial institution' means--
``(A) a depository institution, as defined in section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
``(B) an institution-affiliated party, as defined in section 3(u) of such Act (12 U.S.C. 1813(u));
``(C) any Federal credit union or State credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752), including an institution-affiliated party of such a credit union, as defined in section 206(r) of such Act
(12 U.S.C. 1786(r)); and
``(D) any benefit association, insurance company, safe deposit company, money-market mutual fund, or similar entity authorized to do business in the State.
``(2) Financial record.--The term `financial record' has the meaning given such term in section 1101 of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401).''.
Subtitle G--Enforcement of Support Orders
SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.
(a) Collection of Fees.--Section 6305(a) of the Internal Revenue Code of 1986 (relating to collection of certain liability) is amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and inserting ``, and'';
(3) by adding at the end the following new paragraph:
``(5) no additional fee may be assessed for adjustments to an amount previously certified pursuant to such section 452(b) with respect to the same obligor.''; and
(4) by striking ``Secretary of Health, Education, and Welfare'' each place it appears and inserting ``Secretary of Health and Human Services''.
(b) Effective Date.--The amendments made by this section shall become effective October 1, 1997.
SEC. 362. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL
EMPLOYEES.
(a) Consolidation and Streamlining of Authorities.--Section 459 (42 U.S.C. 659) is amended to read as follows:
``SEC. 459. CONSENT BY THE UNITED STATES TO INCOME
WITHHOLDING, GARNISHMENT, AND SIMILAR
PROCEEDINGS FOR ENFORCEMENT OF CHILD SUPPORT
AND ALIMONY OBLIGATIONS.
``(a) Consent to Support Enforcement.--Notwithstanding any other provision of law (including section 207 of this Act and section 5301 of title 38, United States Code), effective January 1, 1975, moneys (the entitlement to which is based upon remuneration for employment) due from, or payable by, the United States or the District of Columbia (including any agency, subdivision, or instrumentality thereof) to any individual, including members of the Armed Forces of the United States, shall be subject, in like manner and to the same extent as if the United States or the District of Columbia were a private person, to withholding in accordance with State law enacted pursuant to subsections (a)(1) and (b) of section 466 and regulations of the Secretary under such subsections, and to any other legal process brought, by a State agency administering a program under a State plan approved under this part or by an individual obligee, to enforce the legal obligation of the individual to provide child support or alimony.
``(b) Consent to Requirements Applicable to Private Person.--With respect to notice to withhold income pursuant to subsection (a)(1) or (b) of section 466, or any other order or process to enforce support obligations against an individual (if the order or process contains or is accompanied by sufficient data to permit prompt identification of the individual and the moneys involved), each governmental entity specified in subsection (a) shall be subject to the same requirements as would apply if the entity were a private person, except as otherwise provided in this section.
``(c) Designation of Agent; Response to Notice or Process--
``(1) Designation of agent.--The head of each agency subject to this section shall--
``(A) designate an agent or agents to receive orders and accept service of process in matters relating to child support or alimony; and
``(B) annually publish in the Federal Register the designation of the agent or agents, identified by title or position, mailing address, and telephone number.
``(2) Response to notice or process.--If an agent designated pursuant to paragraph (1) of this subsection receives notice pursuant to State procedures in effect pursuant to subsection (a)(1) or (b) of section 466, or is effectively served with any order, process, or interrogatory, with respect to an individual's child support or alimony payment obligations, the agent shall--
``(A) as soon as possible (but not later than 15 days) thereafter, send written notice of the notice or service
(together with a copy of the notice or service) to the individual at the duty station or last-known home address of the individual;
``(B) within 30 days (or such longer period as may be prescribed by applicable State law) after receipt of a notice pursuant to such State procedures, comply with all applicable provisions of section 466; and
``(C) within 30 days (or such longer period as may be prescribed by applicable State law) after effective service of any other such order, process, or interrogatory, respond to the order, process, or interrogatory.
``(d) Priority of Claims.--If a governmental entity specified in subsection (a) receives notice or is served with process, as provided in this section, concerning amounts owed by an individual to more than 1 person--
``(1) support collection under section 466(b) must be given priority over any other process, as provided in section 466(b)(7);
``(2) allocation of moneys due or payable to an individual among claimants under section 466(b) shall be governed by section 466(b) and the regulations prescribed under such section; and
``(3) such moneys as remain after compliance with paragraphs (1) and (2) shall be available to satisfy any other such processes on a first-come, first-served basis, with any such process being satisfied out of such moneys as remain after the satisfaction of all such processes which have been previously served.
``(e) No Requirement to Vary Pay Cycles.--A governmental entity that is affected by legal process served for the enforcement of an individual's child support or alimony payment obligations shall not be required to vary its normal pay and disbursement cycle in order to comply with the legal process.
``(f) Relief From Liability.--
``(1) Neither the United States, nor the government of the District of Columbia, nor any disbursing officer shall be liable with respect to any payment made from moneys due or payable from the United States to any individual pursuant to legal process regular on its face, if the payment is made in accordance with this section and the regulations issued to carry out this section.
``(2) No Federal employee whose duties include taking actions necessary to comply with the requirements of subsection (a) with regard to any individual shall be subject under any law to any disciplinary action or civil or criminal liability or penalty for, or on account of, any disclosure of information made by the employee in connection with the carrying out of such actions.
``(g) Regulations.--Authority to promulgate regulations for the implementation of this section shall, insofar as this section applies to moneys due from (or payable by)--
``(1) the United States (other than the legislative or judicial branches of the Federal Government) or the government of the District of Columbia, be vested in the President (or the designee of the President);
``(2) the legislative branch of the Federal Government, be vested jointly in the President pro tempore of the Senate and the Speaker of the House of Representatives (or their designees), and
``(3) the judicial branch of the Federal Government, be vested in the Chief Justice of the United States (or the designee of the Chief Justice).
``(h) Moneys Subject to Process.--
``(1) In general.--Subject to paragraph (2), moneys paid or payable to an individual which are considered to be based upon remuneration for employment, for purposes of this section--
``(A) consist of--
``(i) compensation paid or payable for personal services of the individual, whether the compensation is denominated as wages, salary, commission, bonus, pay, allowances, or otherwise (including severance pay, sick pay, and incentive pay);
``(ii) periodic benefits (including a periodic benefit as defined in section 228(h)(3)) or other payments--
``(I) under the insurance system established by title II;
``(II) under any other system or fund established by the United States which provides for the payment of pensions, retirement or retired pay, annuities, dependents' or survivors' benefits, or similar amounts payable on account of personal services performed by the individual or any other individual;
``(III) as compensation for death under any Federal program;
``(IV) under any Federal program established to provide
`black lung' benefits; or
``(V) by the Secretary of Veterans Affairs as compensation for a service-connected disability paid by the Secretary to a former member of the Armed Forces who is in receipt of retired or retainer pay if the former member has waived a portion of the retired or retainer pay in order to receive such compensation; and
``(iii) worker's compensation benefits paid under Federal or State law but
``(B) do not include any payment--
``(i) by way of reimbursement or otherwise, to defray expenses incurred by the individual in carrying out duties associated with the employment of the individual; or
``(ii) as allowances for members of the uniformed services payable pursuant to chapter 7 of title 37, United States Code, as prescribed by the Secretaries concerned (defined by section 101(5) of such title) as necessary for the efficient performance of duty.
``(2) Certain amounts excluded.--In determining the amount of any moneys due from, or payable by, the United States to any individual, there shall be excluded amounts which--
``(A) are owed by the individual to the United States;
``(B) are required by law to be, and are, deducted from the remuneration or other payment involved, including Federal employment taxes, and fines and forfeitures ordered by court-martial;
``(C) are properly withheld for Federal, State, or local income tax purposes, if the withholding of the amounts is authorized or required by law and if amounts withheld are not greater than would be the case if the individual claimed all dependents to which he was entitled (the withholding of additional amounts pursuant to section 3402(i) of the Internal Revenue Code of 1986 may be permitted only when the individual presents evidence of a tax obligation which supports the additional withholding);
``(D) are deducted as health insurance premiums;
``(E) are deducted as normal retirement contributions (not including amounts deducted for supplementary coverage); or
``(F) are deducted as normal life insurance premiums from salary or other remuneration for employment (not including amounts deducted for supplementary coverage).
``(i) Definitions.--For purposes of this section--
``(1) United states.--The term `United States' includes any department, agency, or instrumentality of the legislative, judicial, or executive branch of the Federal Government, the United States Postal Service, the Postal Rate Commission, any Federal corporation created by an Act of Congress that is wholly owned by the Federal Government, and the governments of the territories and possessions of the United States.
``(2) Child support.--The term `child support', when used in reference to the legal obligations of an individual to provide such support, means amounts required to be paid under a judgment, decree, or order, whether temporary, final, or subject to modification, issued by a court or an administrative agency of competent jurisdiction, for the support and maintenance of a child, including a child who has attained the age of majority under the law of the issuing State, or a child and the parent with whom the child is living, which provides for monetary support, health care, arrearages or reimbursement, and which may include other related costs and fees, interest and penalties, income withholding, attorney's fees, and other relief.
``(3) Alimony.--
``(A) In general.--The term `alimony', when used in reference to the legal obligations of an individual to provide the same, means periodic payments of funds for the support and maintenance of the spouse (or former spouse) of the individual, and (subject to and in accordance with State law) includes separate maintenance, alimony pendente lite, maintenance, and spousal support, and includes attorney's fees, interest, and court costs when and to the extent that the same are expressly made recoverable as such pursuant to a decree, order, or judgment issued in accordance with applicable State law by a court of competent jurisdiction.
``(B) Exceptions.--Such term does not include--
``(i) any child support; or
``(ii) any payment or transfer of property or its value by an individual to the spouse or a former spouse of the individual in compliance with any community property settlement, equitable distribution of property, or other division of property between spouses or former spouses.
``(4) Private person.--The term `private person' means a person who does not have sovereign or other special immunity or privilege which causes the person not to be subject to legal process.
``(5) Legal process.--The term `legal process' means any writ, order, summons, or other similar process in the nature of garnishment--
``(A) which is issued by--
``(i) a court or an administrative agency of competent jurisdiction in any State, territory, or possession of the United States;
``(ii) a court or an administrative agency of competent jurisdiction in any foreign country with which the United States has entered into an agreement which requires the United States to honor the process; or
``(iii) an authorized official pursuant to an order of such a court or an administrative agency of competent jurisdiction or pursuant to State or local law; and
``(B) which is directed to, and the purpose of which is to compel, a governmental entity which holds moneys which are otherwise payable to an individual to make a payment from the moneys to another party in order to satisfy a legal obligation of the individual to provide child support or make alimony payments.''.
(b) Conforming Amendments.--
(1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 661 and 662) are repealed.
(2) To title 5, united states code.--Section 5520a of title 5, United States Code, is amended, in subsections (h)(2) and
(i), by striking ``sections 459, 461, and 462 of the Social Security Act (42 U.S.C. 659, 661, and 662)'' and inserting
``section 459 of the Social Security Act (42 U.S.C. 659)''.
(c) Military Retired and Retainer Pay.--
(1) Definition of court.--Section 1408(a)(1) of title 10, United States Code, is amended--
(A) by striking ``and'' at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph (C) and inserting ``; and''; and
(C) by adding after subparagraph (C) the following new subparagraph:
``(D) any administrative or judicial tribunal of a State competent to enter orders for support or maintenance
(including a State agency administering a program under a State plan approved under part D of title IV of the Social Security Act), and, for purposes of this subparagraph, the term `State' includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.''.
(2) Definition of court order.--Section 1408(a)(2) of such title is amended--
(A) by inserting ``or a support order, as defined in section 453(p) of the Social Security Act (42 U.S.C. 653(p)),'' before ``which--'';
(B) in subparagraph (B)(i), by striking ``(as defined in section 462(b) of the Social Security Act (42 U.S.C. 662(b)))'' and inserting ``(as defined in section 459(i)(2) of the Social Security Act (42 U.S.C. 659(i)(2)))''; and
(C) in subparagraph (B)(ii), by striking ``(as defined in section 462(c) of the Social Security Act (42 U.S.C. 662(c)))'' and inserting ``(as defined in section 459(i)(3) of the Social Security Act (42 U.S.C. 659(i)(3)))''.
(3) Public payee.--Section 1408(d) of such title is amended--
(A) in the heading, by inserting ``(or for Benefit of)'' before ``Spouse or''; and
(B) in paragraph (1), in the 1st sentence, by inserting
``(or for the benefit of such spouse or former spouse to a State disbursement unit established pursuant to section 454B of the Social Security Act or other public payee designated by a State, in accordance with part D of title IV of the Social Security Act, as directed by court order, or as otherwise directed in accordance with such part D)'' before
``in an amount sufficient''.
(4) Relationship to part d of title iv.--Section 1408 of such title is amended by adding at the end the following new subsection:
``(j) Relationship to Other Laws.--In any case involving an order providing for payment of child support (as defined in section 459(i)(2) of the Social Security Act) by a member who has never been married to the other parent of the child, the provisions of this section shall not apply, and the case shall be subject to the provisions of section 459 of such Act.''.
(d) Effective Date.--The amendments made by this section shall become effective 6 months after the date of the enactment of this Act.
SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS
OF THE ARMED FORCES.
(a) Availability of Locator Information.--
(1) Maintenance of address information.--The Secretary of Defense shall establish a centralized personnel locator service that includes the address of each member of the Armed Forces under the jurisdiction of the Secretary. Upon request of the Secretary of Transportation, addresses for members of the Coast Guard shall be included in the centralized personnel locator service.
(2) Type of address.--
(A) Residential address.--Except as provided in subparagraph (B), the address for a member of the Armed Forces shown in the locator service shall be the residential address of that member.
(B) Duty address.--The address for a member of the Armed Forces shown in the locator service shall be the duty address of that member in the case of a member--
(i) who is permanently assigned overseas, to a vessel, or to a routinely deployable unit; or
(ii) with respect to whom the Secretary concerned makes a determination that the member's residential address should not be disclosed due to national security or safety concerns.
(3) Updating of locator information.--Within 30 days after a member listed in the locator service establishes a new residential address (or a new duty address, in the case of a member covered by paragraph (2)(B)), the Secretary concerned shall update the locator service to indicate the new address of the member.
(4) Availability of information.--The Secretary of Defense shall make information regarding the address of a member of the Armed Forces listed in the locator service available, on request, to the Federal Parent Locator Service established under section 453 of the Social Security Act.
(b) Facilitating Granting of Leave for Attendance at Hearings.--
(1) Regulations.--The Secretary of each military department, and the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy, shall prescribe regulations to facilitate the granting of leave to a member of the Armed Forces under the jurisdiction of that Secretary in a case in which--
(A) the leave is needed for the member to attend a hearing described in paragraph (2);
(B) the member is not serving in or with a unit deployed in a contingency operation (as defined in section 101 of title 10, United States Code); and
(C) the exigencies of military service (as determined by the Secretary concerned) do not otherwise require that such leave not be granted.
(2) Covered hearings.--Paragraph (1) applies to a hearing that is conducted by a court or pursuant to an administrative process established under State law, in connection with a civil action--
(A) to determine whether a member of the Armed Forces is a natural parent of a child; or
(B) to determine an obligation of a member of the Armed Forces to provide child support.
(3) Definitions.--For purposes of this subsection--
(A) The term ``court'' has the meaning given that term in section 1408(a) of title 10, United States Code.
(B) The term ``child support'' has the meaning given such term in section 459(i) of the Social Security Act (42 U.S.C. 659(i)).
(c) Payment of Military Retired Pay in Compliance With Child Support Orders.--
(1) Date of certification of court order.--Section 1408 of title 10, United States Code, as amended by section 362(c)(4) of this Act, is amended--
(A) by redesignating subsections (i) and (j) as subsections
(j) and (k), respectively; and
(B) by inserting after subsection (h) the following new subsection:
``(i) Certification Date.--It is not necessary that the date of a certification of the authenticity or completeness of a copy of a court order for child support received by the Secretary concerned for the purposes of this section be recent in relation to the date of receipt by the Secretary.''.
(2) Payments consistent with assignments of rights to states.--Section 1408(d)(1) of such title is amended by inserting after the 1st sentence the following new sentence:
``In the case of a spouse or former spouse who, pursuant to section 408(a)(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 1st pay period that begins after such 30-day period.
SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.
Section 466 (42 U.S.C. 666), as amended by section 321 of this Act, is amended by adding at the end the following new subsection:
``(g) Laws Voiding Fraudulent Transfers.--In order to satisfy section 454(20)(A), each State must have in effect--
``(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
``(B) the Uniform Fraudulent Transfer Act of 1984; or
``(C) another law, specifying indicia of fraud which create a prima facie case that a debtor transferred income or property to avoid payment to a child support creditor, which the Secretary finds affords comparable rights to child support creditors; and
``(2) procedures under which, in any case in which the State knows of a transfer by a child support debtor with respect to which such a prima facie case is established, the State must--
``(A) seek to void such transfer; or
``(B) obtain a settlement in the best interests of the child support creditor.''.
SEC. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD
SUPPORT.
(a) In General.--Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 317, and 323 of this Act, is amended by inserting after paragraph (14) the following new paragraph:
``(15) Procedures to ensure that persons owing past-due support work or have a plan for payment of such support.--
``(A) In general.--Procedures under which the State has the authority, in any case in which an individual owes past-due support with respect to a child receiving assistance under a State program funded under part A, to issue an order or to request that a court or an administrative process established pursuant to State law issue an order that requires the individual to--
``(i) pay such support in accordance with a plan approved by the court, or, at the option of the State, a plan approved by the State agency administering the State program under this part; or
``(ii) if the individual is subject to such a plan and is not incapacitated, participate in such work activities (as defined in section 407(d)) as the court, or, at the option of the State, the State agency administering the State program under this part, deems appropriate.
``(B) Past-due support defined.--For purposes of subparagraph (A), the term `past-due support' means the amount of a delinquency, determined under a court order, or an order of an administrative process established under State law, for support and maintenance of a child, or of a child and the parent with whom the child is living.''.
(b) Conforming Amendment.--The flush paragraph at the end of section 466(a) (42 U.S.C. 666(a)) is amended by striking
``and (7)'' and inserting ``(7), and (15)''.
SEC. 366. DEFINITION OF SUPPORT ORDER.
Section 453 (42 U.S.C. 653) as amended by sections 316 and 345(b) of this Act, is amended by adding at the end the following new subsection:
``(p) Support Order Defined.--As used in this part, the term `support order' means a judgment, decree, or order, whether temporary, final, or subject to modification, issued by a court or an administrative agency of competent jurisdiction, for the support and maintenance of a child, including a child who has attained the age of majority under the law of the issuing State, or a child and the parent with whom the child is living, which provides for monetary support, health care, arrearages, or reimbursement, and which may include related costs and fees, interest and penalties, income withholding, attorneys' fees, and other relief.''.
SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.
Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as follows:
``(7) Reporting arrearages to credit bureaus.--
``(A) In general.--Procedures (subject to safeguards pursuant to subparagraph (B)) requiring the State to report periodically to consumer reporting agencies (as defined in section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f)) the name of any noncustodial parent who is delinquent in the payment of support, and the amount of overdue support owed by such parent.
``(B) Safeguards.--Procedures ensuring that, in carrying out subparagraph (A), information with respect to a noncustodial parent is reported--
``(i) only after such parent has been afforded all due process required under State law, including notice and a reasonable opportunity to contest the accuracy of such information; and
``(ii) only to an entity that has furnished evidence satisfactory to the State that the entity is a consumer reporting agency (as so defined).''.
SEC. 368. LIENS.
Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read as follows:
``(4) Liens.--Procedures under which--
``(A) liens arise by operation of law against real and personal property for amounts of overdue support owed by a noncustodial parent who resides or owns property in the State; and
``(B) the State accords full faith and credit to liens described in subparagraph (A) arising in another State, when the State agency, party, or other entity seeking to enforce such a lien complies with the procedural rules relating to recording or serving liens that arise within the State, except that such rules may not require judicial notice or hearing prior to the enforcement of such a lien.''.
SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 317, 323, and 365 of this Act, is amended by inserting after paragraph (15) the following:
``(16) Authority to withhold or suspend licenses.--Procedures under which the State has (and uses in appropriate cases) authority to withhold or suspend, or to restrict the use of driver's licenses, professional and occupational licenses, and recreational licenses of individuals owing overdue support or failing, after receiving appropriate notice, to comply with subpoenas or warrants relating to paternity or child support proceedings.''.
SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD
SUPPORT.
(a) HHS Certification Procedure.--
(1) Secretarial responsibility.--Section 452 (42 U.S.C. 652), as amended by section 345 of this Act, is amended by adding at the end the following new subsection:
``(k)(1) If the Secretary receives a certification by a State agency in accordance with the requirements of section 454(31) that an individual owes arrearages of child support in an amount exceeding $5,000, the Secretary shall transmit such certification to the Secretary of State for action (with respect to denial, revocation, or limitation of passports) pursuant to paragraph (2).
``(2) The Secretary of State shall, upon certification by the Secretary transmitted under paragraph (1), refuse to issue a passport to such individual, and may revoke, restrict, or limit a passport issued previously to such individual.
``(3) The Secretary and the Secretary of State shall not be liable to an individual for any action with respect to a certification by a State agency under this section.''.
(2) State agency responsibility.--Section 454 (42 U.S.C. 654), as amended by sections 301(b), 303(a), 312(b), 313(a), 333, and 343(b) of this Act, is amended--
(A) by striking ``and'' at the end of paragraph (29);
(B) by striking the period at the end of paragraph (30) and inserting ``; and''; and
(C) by adding after paragraph (30) the following new paragraph:
``(31) provide that the State agency will have in effect a procedure for certifying to the Secretary, for purposes of the procedure under section 452(k), determinations that individuals owe arrearages of child support in an amount exceeding $5,000, under which procedure--
``(A) each individual concerned is afforded notice of such determination and the consequences thereof, and an opportunity to contest the determination; and
``(B) the certification by the State agency is furnished to the Secretary in such format, and accompanied by such supporting documentation, as the Secretary may require.''.
(b) Effective Date.--This section and the amendments made by this section shall become effective October 1, 1997.
SEC. 371. INTERNATIONAL SUPPORT ENFORCEMENT.
(a) Authority for International Agreements.--Part D of title IV, as amended by section 362(a) of this Act, is amended by adding after section 459 the following new section:
``SEC. 459A. INTERNATIONAL SUPPORT ENFORCEMENT.
``(a) Authority for Declarations.--
``(1) Declaration.--The Secretary of State, with the concurrence of the Secretary of Health and Human Services, is authorized to declare any foreign country (or a political subdivision thereof) to be a foreign reciprocating country if the foreign country has established, or undertakes to establish, procedures for the establishment and enforcement of duties of support owed to obligees who are residents of the United States, and such procedures are substantially in conformity with the standards prescribed under subsection
(b).
``(2) Revocation.--A declaration with respect to a foreign country made pursuant to paragraph (1) may be revoked if the Secretaries of State and Health and Human Services determine that--
``(A) the procedures established by the foreign country regarding the establishment and enforcement of duties of support have been so changed, or the foreign country's implementation of such procedures is so unsatisfactory, that such procedures do not meet the criteria for such a declaration; or
``(B) continued operation of the declaration is not consistent with the purposes of this part.
``(3) Form of declaration.--A declaration under paragraph
(1) may be made in the form of an international agreement, in connection with an international agreement or corresponding foreign declaration, or on a unilateral basis.
``(b) Standards for Foreign Support Enforcement Procedures.--
``(1) Mandatory elements.--Support enforcement procedures of a foreign country which may be the subject of a declaration pursuant to subsection (a)(1) shall include the following elements:
``(A) The foreign country (or political subdivision thereof) has in effect procedures, available to residents of the United States--
``(i) for establishment of paternity, and for establishment of orders of support for children and custodial parents; and
``(ii) for enforcement of orders to provide support to children and custodial parents, including procedures for collection and appropriate distribution of support payments under such orders.
``(B) The procedures described in subparagraph (A), including legal and administrative assistance, are provided to residents of the United States at no cost.
``(C) An agency of the foreign country is designated as a Central Authority responsible for--
``(i) facilitating support enforcement in cases involving residents of the foreign country and residents of the United States; and
``(ii) ensuring compliance with the standards established pursuant to this subsection.
``(2) Additional elements.--The Secretary of Health and Human Services and the Secretary of State, in consultation with the States, may establish such additional standards as may be considered necessary to further the purposes of this section.
``(c) Designation of United States Central Authority.--It shall be the responsibility of the Secretary of Health and Human Services to facilitate support enforcement in cases involving residents of the United States and residents of foreign countries that are the subject of a declaration under this section, by activities including--
``(1) development of uniform forms and procedures for use in such cases;
``(2) notification of foreign reciprocating countries of the State of residence of individuals sought for support enforcement purposes, on the basis of information provided by the Federal Parent Locator Service; and
``(3) such other oversight, assistance, and coordination activities as the Secretary may find necessary and appropriate.
``(d) Effect on Other Laws.--States may enter into reciprocal arrangements for the establishment and enforcement of support obligations with foreign countries that are not the subject of a declaration pursuant to subsection (a), to the extent consistent with Federal law.''.
(b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as amended by sections 301(b), 303(a), 312(b), 313(a), 333, 343(b), and 370(a)(2) of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (30);
(2) by striking the period at the end of paragraph (31) and inserting ``; and''; and
(3) by adding after paragraph (31) the following new paragraph:
``(32)(A) provide that any request for services under this part by a foreign reciprocating country or a foreign country with which the State has an arrangement described in section 459A(d)(2) shall be treated as a request by a State;
``(B) provide, at State option, notwithstanding paragraph
(4) or any other provision of this part, for services under the plan for enforcement of a spousal support order not described in paragraph (4)(B) entered by such a country (or subdivision); and
``(C) provide that no applications will be required from, and no costs will be assessed for such services against, the foreign reciprocating country or foreign obligee (but costs may at State option be assessed against the obligor).''.
SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 317, 323, 365, and 369 of this Act, is amended by inserting after paragraph (16) the following new paragraph:
``(17) Financial institution data matches.--
``(A) In general.--Procedures under which the State agency shall enter into agreements with financial institutions doing business in the State--
``(i) to develop and operate, in coordination with such financial institutions, a data match system, using automated data exchanges to the maximum extent feasible, in which each such financial institution is required to provide for each calendar quarter the name, record address, social security number or other taxpayer identification number, and other identifying information for each noncustodial parent who maintains an account at such institution and who owes past-due support, as identified by the State by name and social security number or other taxpayer identification number; and
``(ii) in response to a notice of lien or levy, encumber or surrender, as the case may be, assets held by such institution on behalf of any noncustodial parent who is subject to a child support lien pursuant to paragraph (4).
``(B) Reasonable fees.--The State agency may pay a reasonable fee to a financial institution for conducting the data match provided for in subparagraph (A)(i), not to exceed the actual costs incurred by such financial institution.
``(C) Liability.--A financial institution shall not be liable under any Federal or State law to any person--
``(i) for any disclosure of information to the State agency under subparagraph (A)(i);
``(ii) for encumbering or surrendering any assets held by such financial institution in response to a notice of lien or levy issued by the State agency as provided for in subparagraph (A)(ii); or
``(iii) for any other action taken in good faith to comply with the requirements of subparagraph (A).
``(D) Definitions.--For purposes of this paragraph--
``(i) Financial institution.--The term `financial institution' has the meaning given to such term by section 469A(d)(1).
``(ii) Account.--The term `account' means a demand deposit account, checking or negotiable withdrawal order account, savings account, time deposit account, or money-market mutual fund account.''.
SEC. 373. ENFORCEMENT OF ORDERS AGAINST PATERNAL OR MATERNAL
GRANDPARENTS IN CASES OF MINOR PARENTS.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 317, 323, 365, 369, and 372 of this Act, is amended by inserting after paragraph (17) the following new paragraph:
``(18) Enforcement of orders against paternal or maternal grandparents.--Procedures under which, at the State's option, any child support order enforced under this part with respect to a child of minor parents, if the custodial parent of such child is receiving assistance under the State program under part A, shall be enforceable, jointly and severally, against the parents of the noncustodial parent of such child.''.
SEC. 374. NONDISCHARGEABILITY IN BANKRUPTCY OF CERTAIN DEBTS
FOR THE SUPPORT OF A CHILD.
(a) Amendment to Title 11 of the United States Code.--Section 523(a) of title 11, United States Code, is amended--
(1) by striking ``or'' at the end of paragraph (16);
(2) by striking the period at the end of paragraph (17) and inserting ``; or'';
(3) by adding at the end the following:
``(18) owed under State law to a State or municipality that is--
``(A) in the nature of support, and
``(B) enforceable under part D of title IV of the Social Security Act (42 U.S.C. 601 et seq.).''; and
(4) in paragraph (5), by striking ``section 402(a)(26)'' and inserting ``section 408(a)(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 following Federal public benefits:
(A) Medical assistance under title XIX of the Social Security Act (or any successor program to such title) for care and services that are necessary for the treatment of an emergency medical condition (as defined in section 1903(v)(3) of such Act) of the alien involved and are not related to an organ transplant procedure, if the alien involved otherwise meets the eligibility requirements for medical assistance under the State plan approved under such title (other than the requirement of the receipt of aid or assistance under title IV of such Act, supplemental security income benefits under title XVI of such Act, or a State supplementary payment).
(B) Short-term, non-cash, in-kind emergency disaster relief.
(C) Public health assistance (not including any assistance under title XIX of the Social Security Act) for immunizations with respect to immunizable diseases and for testing and treatment of symptoms of communicable diseases whether or not such symptoms are caused by a communicable disease.
(D) Programs, services, or assistance (such as soup kitchens, crisis counseling and intervention, and short-term shelter) specified by the Attorney General, in the Attorney General's sole and unreviewable discretion after consultation with appropriate Federal agencies and departments, which (i) deliver in-kind services at the community level, including through public or private nonprofit agencies; (ii) do not condition the provision of assistance, the amount of assistance provided, or the cost of assistance provided on the individual recipient's income or resources; and (iii) are necessary for the protection of life or safety.
(E) Programs for housing or community development assistance or financial assistance administered by the Secretary of Housing and Urban Development, any program under title V of the Housing Act of 1949, or any assistance under section 306C of the Consolidated Farm and Rural Development Act, to the extent that the alien is receiving such a benefit on the date of the enactment of this Act.
(2) Subsection (a) shall not apply to any benefit payable under title II of the Social Security Act to an alien who is lawfully present in the United States as determined by the Attorney General, to any benefit if nonpayment of such benefit would contravene an international agreement described in section 233 of the Social Security Act, to any benefit if nonpayment would be contrary to section 202(t) of the Social Security Act, or to any benefit payable under title II of the Social Security Act to which entitlement is based on an application filed in or before the month in which this Act becomes law.
(c) Federal Public Benefit Defined.--
(1) Except as provided in paragraph (2), for purposes of this title the term ``Federal public benefit'' means--
(A) any grant, contract, loan, professional license, or commercial license provided by an agency of the United States or by appropriated funds of the United States; and
(B) any retirement, welfare, health, disability, public or assisted housing, postsecondary education, food assistance, unemployment benefit, or any other similar benefit for which payments or assistance are provided to an individual, household, or family eligibility unit by an agency of the United States or by appropriated funds of the United States.
(2) Such term shall not apply--
(A) to any contract, professional license, or commercial license for a nonimmigrant whose visa for entry is related to such employment in the United States; or
(B) with respect to benefits for an alien who as a work authorized nonimmigrant or as an alien lawfully admitted for permanent residence under the Immigration and Nationality Act qualified for such benefits and for whom the United States under reciprocal treaty agreements is required to pay benefits, as determined by the Attorney General, after consultation with the Secretary of State.
SEC. 402. LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR CERTAIN
FEDERAL PROGRAMS.
(a) Limited Eligibility for Specified Federal Programs.--
(1) In general.--Notwithstanding any other provision of law and except as provided in paragraph (2), an alien who is a qualified alien (as defined in section 431) is not eligible for any specified Federal program (as defined in paragraph
(3)).
(2) Exceptions.--
(A) Time-limited exception for refugees and asylees.--Paragraph (1) shall not apply to an alien until 5 years after the date--
(i) an alien is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act;
(ii) an alien is granted asylum under section 208 of such Act; or
(iii) an alien's deportation is withheld under section 243(h) of such Act.
(B) Certain permanent resident aliens.--Paragraph (1) shall not apply to an alien who--
(i) is lawfully admitted to the United States for permanent residence under the Immigration and Nationality Act; and
(ii)(I) has worked 40 qualifying quarters of coverage as defined under title II of the Social Security Act or can be credited with such qualifying quarters as provided under section 435, and (II) in the case of any such qualifying quarter creditable for any period beginning after December 31, 1996, did not receive any Federal means-tested public benefit (as provided under section 403) during any such period.
(C) Veteran and active duty exception.--Paragraph (1) shall not apply to an alien who is lawfully residing in any State and is--
(i) a veteran (as defined in section 101 of title 38, United States Code) with a discharge characterized as an honorable discharge and not on account of alienage,
(ii) on active duty (other than active duty for training) in the Armed Forces of the United States, or
(iii) the spouse or unmarried dependent child of an individual described in clause (i) or (ii).
(D) Transition for aliens currently receiving benefits.--
(i) SSI.--
(I) In general.--With respect to the specified Federal program described in paragraph (3)(A), during the period beginning on the date of the enactment of this Act and ending on the date which is 1 year after such date of enactment, the Commissioner of Social Security shall redetermine the eligibility of any individual who is receiving benefits under such program as of the date of the enactment of this Act and whose eligibility for such benefits may terminate by reason of the provisions of this subsection.
(II) Redetermination criteria.-- With respect to any redetermination under subclause (I), the Commissioner of Social Security shall apply the eligibility criteria for new applicants for benefits under such program.
(III) Grandfather provision.--The provisions of this subsection and the redetermination under subclause (I), shall only apply with respect to the benefits of an individual described in subclause (I) for months beginning on or after the date of the redetermination with respect to such individual.
(IV) Notice.--Not later than March 31, 1997, the Commissioner of Social Security shall notify an individual described in subclause (I) of the provisions of this clause.
(ii) Food stamps.--
(I) In general.--With respect to the specified Federal program described in paragraph (3)(B), during the period beginning on the date of enactment of this Act and ending on the date which is 1 year after the date of enactment, the State agency shall, at the time of the recertification, recertify the eligibility of any individual who is receiving benefits under such program as of the date of enactment of this Act and whose eligibility for such benefits may terminate by reason of the provisions of this subsection.
(II) Recertification criteria.--With respect to any recertification under subclause (I), the State agency shall apply the eligibility criteria for applicants for benefits under such program.
(III) Grandfather provision.--The provisions of this subsection and the recertification under subclause (I) shall only apply with respect to the eligibility of an alien for a program for months beginning on or after the date of recertification, if on the date of enactment of this Act the alien is lawfully residing in any State and is receiving benefits under such program on such date of enactment.
(3) Specified federal program defined.--For purposes of this title, the term ``specified Federal program'' means any of the following:
(A) SSI.--The supplemental security income program under title XVI of the Social Security Act, including supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the Social Security Act and payments pursuant to an agreement entered into under section 212(b) of Public Law 93-66.
(B) Food stamps.--The food stamp program as defined in section 3(h) of the Food Stamp Act of 1977.
(b) Limited Eligibility for Designated Federal Programs.--
(1) In general.--Notwithstanding any other provision of law and except as provided in section 403 and paragraph (2), a State is authorized to determine the eligibility of an alien who is a qualified alien (as defined in section 431) for any designated Federal program (as defined in paragraph (3)).
(2) Exceptions.--Qualified aliens under this paragraph shall be eligible for any designated Federal program.
(A) Time-limited exception for refugees and asylees.--
(i) An alien who is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act until 5 years after the date of an alien's entry into the United States.
(ii) An alien who is granted asylum under section 208 of such Act until 5 years after the date of such grant of asylum.
(iii) An alien whose deportation is being withheld under section 243(h) of such Act until 5 years after such withholding.
(B) Certain permanent resident aliens.--An alien who--
(i) is lawfully admitted to the United States for permanent residence under the Immigration and Nationality Act; and
(ii)(I) has worked 40 qualifying quarters of coverage as defined under title II of the Social Security Act or can be credited with such qualifying quarters as provided under section 435, and (II) in the case of any such qualifying quarter creditable for any period beginning after December 31, 1996, did not receive any Federal means-tested public benefit (as provided under section 403) during any such period.
(C) Veteran and active duty exception.--An alien who is lawfully residing in any State and is--
(i) a veteran (as defined in section 101 of title 38, United States Code) with a discharge characterized as an honorable discharge and not on account of alienage,
(ii) on active duty (other than active duty for training) in the Armed Forces of the United States, or
(iii) the spouse or unmarried dependent child of an individual described in clause (i) or (ii).
(D) Transition for those currently receiving benefits.--An alien who on the date of the enactment of this Act is lawfully residing in any State and is receiving benefits under such program on the date of the enactment of this Act shall continue to be eligible to receive such benefits until January 1, 1997.
(3) Designated federal program defined.--For purposes of this title, the term ``designated Federal program'' means any of the following:
(A) Temporary assistance for needy families.--The program of block grants to States for temporary assistance for needy families under part A of title IV of the Social Security Act.
(B) Social services block grant.--The program of block grants to States for social services under title XX of the Social Security Act.
(C) Medicaid.--A State plan approved under title XIX of the Social Security Act, other than medical assistance described in section 401(b)(1)(A).
SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS
FOR FEDERAL MEANS-TESTED PUBLIC BENEFIT.
(a) In General.--Notwithstanding any other provision of law and except as provided in subsections (b), (c), and (d), an alien who is a qualified alien (as defined in section 431) and who enters the United States on or after the date of the enactment of this Act is not eligible for any Federal means-tested public benefit for a period of five years beginning on the date of the alien's entry into the United States with a status within the meaning of the term ``qualified alien''.
(b) Exceptions.--The limitation under subsection (a) shall not apply to the following aliens:
(1) Exception for refugees and asylees.--
(A) An alien who is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act.
(B) An alien who is granted asylum under section 208 of such Act.
(C) An alien whose deportation is being withheld under section 243(h) of such Act.
(2) Veteran and active duty exception.--An alien who is lawfully residing in any State and is--
(A) a veteran (as defined in section 101 of title 38, United States Code) with a discharge characterized as an honorable discharge and not on account of alienage,
(B) on active duty (other than active duty for training) in the Armed Forces of the United States, or
(C) the spouse or unmarried dependent child of an individual described in subparagraph (A) or (B).
(c) Application of Term Federal Means-tested Public Benefit.--
(1) The limitation under subsection (a) shall not apply to assistance or benefits under paragraph (2).
(2) Assistance and benefits under this paragraph are as follows:
(A) Medical assistance described in section 401(b)(1)(A).
(B) Short-term, non-cash, in-kind emergency disaster relief.
(C) Assistance or benefits under the National School Lunch Act.
(D) Assistance or benefits under the Child Nutrition Act of 1966.
(E) Public health assistance (not including any assistance under title XIX of the Social Security Act) for immunizations with respect to immunizable diseases and for testing and treatment of symptoms of communicable diseases whether or not such symptoms are caused by a communicable disease.
(F) Payments for foster care and adoption assistance under parts B and E of title IV of the Social Security Act for a parent or a child who would, in the absence of subsection
(a), be eligible to have such payments made on the child's behalf under such part, but only if the foster or adoptive parent (or parents) of such child is a qualified alien (as defined in section 431).
(G) Programs, services, or assistance (such as soup kitchens, crisis counseling and intervention, and short-term shelter) specified by the Attorney General, in the Attorney General's sole and unreviewable discretion after consultation with appropriate Federal agencies and departments, which (i) deliver in-kind services at the community level, including through public or private nonprofit agencies; (ii) do not condition the provision of assistance, the amount of assistance provided, or the cost of assistance provided on the individual recipient's income or resources; and (iii) are necessary for the protection of life or safety.
(H) Programs of student assistance under titles IV, V, IX, and X of the Higher Education Act of 1965, and titles III, VII, and VIII of the Public Health Service Act.
(I) Means-tested programs under the Elementary and Secondary Education Act of 1965.
(J) Benefits under the Head Start Act.
(K) Benefits under the Job Training Partnership Act.
(d) Special Rule for Refugee and Entrant Assistance for Cuban and Haitian Entrants.--The limitation under subsection
(a) shall not apply to refugee and entrant assistance activities, authorized by title IV of the Immigration and Nationality Act and section 501 of the Refugee Education Assistance Act of 1980, for Cuban and Haitian entrants as defined in section 501(e)(2) of the Refugee Education Assistance Act of 1980.
SEC. 404. NOTIFICATION AND INFORMATION REPORTING.
(a) Notification.--Each Federal agency that administers a program to which section 401, 402, or 403 applies shall, directly or through the States, post information and provide general notification to the public and to program recipients of the changes regarding eligibility for any such program pursuant to this subtitle.
(b) Information Reporting Under Title IV of the Social Security Act.--Part A of title IV of the Social Security Act is amended by inserting the following new section after section 411:
``SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFORMATION.
``Each State to which a grant is made under section 403 shall, at least 4 times annually and upon request of the Immigration and Naturalization Service, furnish the Immigration and Naturalization Service with the name and address of, and other identifying information on, any individual who the State knows is unlawfully in the United States.''.
(c) SSI.--Section 1631(e) of such Act (42 U.S.C. 1383(e)) is amended--
(1) by redesignating the paragraphs (6) and (7) inserted by sections 206(d)(2) and 206(f)(1) of the Social Security Independence and Programs Improvement Act of 1994 (Public Law 103-296; 108 Stat. 1514, 1515) as paragraphs (7) and (8), respectively; and
(2) by adding at the end the following new paragraph:
``(9) Notwithstanding any other provision of law, the Commissioner shall, at least 4 times annually and upon request of the Immigration and Naturalization Service
(hereafter in this paragraph referred to as the `Service'), furnish the Service with the name and address of, and other identifying information on, any individual who the Commissioner knows is unlawfully in the United States, and shall ensure that each agreement entered into under section 1616(a) with a State provides that the State shall furnish such information at such times with respect to any individual who the State knows is unlawfully in the United States.''.
(d) Information Reporting for Housing Programs.--Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following new section:
``SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND
OTHER AGENCIES.
``Notwithstanding any other provision of law, the Secretary shall, at least 4 times annually and upon request of the Immigration and Naturalization Service (hereafter in this section referred to as the `Service'), furnish the Service with the name and address of, and other identifying information on, any individual who the Secretary knows is unlawfully in the United States, and shall ensure that each contract for assistance entered into under section 6 or 8 of this Act with a public housing agency provides that the public housing agency shall furnish such information at such times with respect to any individual who the public housing agency knows is unlawfully in the United States.''.
Subtitle B--Eligibility for State and Local Public Benefits Programs
SEC. 411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR
NONIMMIGRANTS INELIGIBLE FOR STATE AND LOCAL
PUBLIC BENEFITS.
(a) In General.--Notwithstanding any other provision of law and except as provided in subsections (b) and (d), an alien who is not--
(1) a qualified alien (as defined in section 431),
(2) a nonimmigrant under the Immigration and Nationality Act, or
(3) an alien who is paroled into the United States under section 212(d)(5) of such Act for less than one year,is not eligible for any State or local public benefit (as defined in subsection (c)).
(b) Exceptions.--Subsection (a) shall not apply with respect to the following State or local public benefits:
(1) Assistance for health care items and services that are necessary for the treatment of an emergency medical condition
(as defined in section 1903(v)(3) of the Social Security Act) of the alien involved and are not related to an organ transplant procedure.
(2) Short-term, non-cash, in-kind emergency disaster relief.
(3) Public health assistance for immunizations with respect to immunizable diseases and for testing and treatment of symptoms of communicable diseases whether or not such symptoms are caused by a communicable disease.
(4) Programs, services, or assistance (such as soup kitchens, crisis counseling and intervention, and short-term shelter) specified by the Attorney General, in the Attorney General's sole and unreviewable discretion after consultation with appropriate Federal agencies and departments, which (A) deliver in-kind services at the community level, including through public or private nonprofit agencies; (B) do not condition the provision of assistance, the amount of assistance provided, or the cost of assistance provided on the individual recipient's income or resources; and (C) are necessary for the protection of life or safety.
(c) State or Local Public Benefit Defined.--
(1) Except as provided in paragraphs (2) and 3, for purposes of this subtitle the term ``State or local public benefit'' means--
(A) any grant, contract, loan, professional license, or commercial license provided by an agency of a State or local government or by appropriated funds of a State or local government; and
(B) any retirement, welfare, health, disability, public or assisted housing, postsecondary education, food assistance, unemployment benefit, or any other similar benefit for which payments or assistance are provided to an individual, household, or family eligibility unit by an agency of a State or local government or by appropriated funds of a State or local government.
(2) Such term shall not apply--
(A) to any contract, professional license, or commercial license for a nonimmigrant whose visa for entry is related to such employment in the United States; or
(B) with respect to benefits for an alien who as a work authorized nonimmigrant or as an alien lawfully admitted for permanent residence under the Immigration and Nationality Act qualified for such benefits and for whom the United States under reciprocal treaty agreements is required to pay benefits, as determined by the Secretary of State, after consultation with the Attorney General.
(3) Such term does not include any Federal public benefit under section 4001(c).
(d) State Authority to Provide for Eligibility of Illegal Aliens for State and Local Public Benefits.--A State may provide that an alien who is not lawfully present in the United States is eligible for any State or local public benefit for which such alien would otherwise be ineligible under subsection (a) only through the enactment of a State law after the date of the enactment of this Act which affirmatively provides for such eligibility.
SEC. 412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF QUALIFIED
ALIENS FOR STATE PUBLIC BENEFITS.
(a) In General.--Notwithstanding any other provision of law and except as provided in subsection (b), a State is authorized to determine the eligibility for any State public benefits of an alien who is a qualified alien (as defined in section 431), a nonimmigrant under the Immigration and Nationality Act, or an alien who is paroled into the United States under section 212(d)(5) of such Act for less than one year.
(b) Exceptions.--Qualified aliens under this subsection shall be eligible for any State public benefits.
(1) Time-limited exception for refugees and asylees.--
(A) An alien who is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act until 5 years after the date of an alien's entry into the United States.
(B) An alien who is granted asylum under section 208 of such Act until 5 years after the date of such grant of asylum.
(C) An alien whose deportation is being withheld under section 243(h) of such Act until 5 years after such withholding.
(2) Certain permanent resident aliens.--An alien who--
(A) is lawfully admitted to the United States for permanent residence under the Immigration and Nationality Act; and
(B)(i) has worked 40 qualifying quarters of coverage as defined under title II of the Social Security Act or can be credited with such qualifying quarters as provided under section 435, and (ii) in the case of any such qualifying quarter creditable for any period beginning after December 31, 1996, did not receive any Federal means-tested public benefit (as provided under section 403) during any such period.
(3) Veteran and active duty exception.--An alien who is lawfully residing in any State and is--
(A) a veteran (as defined in section 101 of title 38, United States Code) with a discharge characterized as an honorable discharge and not on account of alienage,
(B) on active duty (other than active duty for training) in the Armed Forces of the United States, or
(C) the spouse or unmarried dependent child of an individual described in subparagraph (A) or (B).
(4) Transition for those currently receiving benefits.--An alien who on the date of the enactment of this Act is lawfully residing in any State and is receiving benefits on the date of the enactment of this Act shall continue to be eligible to receive such benefits until January 1, 1997.
Subtitle C--Attribution of Income and Affidavits of Support
SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND
RESOURCES TO ALIEN.
(a) In General.--Notwithstanding any other provision of law, in determining the eligibility and the amount of benefits of an alien for any Federal means-tested public benefits program (as provided under section 403), the income and resources of the alien shall be deemed to include the following:
(1) The income and resources of any person who executed an affidavit of support pursuant to section 213A of the Immigration and Nationality Act (as added by section 423) on behalf of such alien.
(2) The income and resources of the spouse (if any) of the person.
(b) Duration of Attribution Period.--Subsection (a) shall apply with respect to an alien until such time as the alien--
(1) achieves United States citizenship through naturalization pursuant to chapter 2 of title III of the Immigration and Nationality Act; or
(2)(A) has worked 40 qualifying quarters of coverage as defined under title II of the Social Security Act or can be credited with such qualifying quarters as provided under section 435, and (B) in the case of any such qualifying quarter creditable for any period beginning after December 31, 1996, did not receive any Federal means-tested public benefit (as provided under section 403) during any such period.
(c) Review of Income and Resources of Alien Upon Reapplication.--Whenever an alien is required to reapply for benefits under any Federal means-tested public benefits program, the applicable agency shall review the income and resources attributed to the alien under subsection (a).
(d) Application.--
(1) If on the date of the enactment of this Act, a Federal means-tested public benefits program attributes a sponsor's income and resources to an alien in determining the alien's eligibility and the amount of benefits for an alien, this section shall apply to any such determination beginning on the day after the date of the enactment of this Act.
(2) If on the date of the enactment of this Act, a Federal means-tested public benefits program does not attribute a sponsor's income and resources to an alien in determining the alien's eligibility and the amount of benefits for an alien, this section shall apply to any such determination beginning 180 days after the date of the enactment of this Act.
SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF
SPONSORS INCOME AND RESOURCES TO THE ALIEN WITH
RESPECT TO STATE PROGRAMS.
(a) Optional Application to State Programs.--Except as provided in subsection (b), in determining the eligibility and the amount of benefits of an alien for any State public benefits (as defined in section 412(c)), the State or political subdivision that offers the benefits is authorized to provide that the income and resources of the alien shall be deemed to include--
(1) the income and resources of any individual who executed an affidavit of support pursuant to section 213A of the Immigration and Nationality Act (as added by section 423) on behalf of such alien, and
(2) the income and resources of the spouse (if any) of the individual.
(b) Exceptions.--Subsection (a) shall not apply with respect to the following State public benefits:
(1) Assistance described in section 411(b)(1).
(2) Short-term, non-cash, in-kind emergency disaster relief.
(3) Programs comparable to assistance or benefits under the National School Lunch Act.
(4) Programs comparable to assistance or benefits under the Child Nutrition Act of 1966.
(5) Public health assistance for immunizations with respect to immunizable diseases and for testing and treatment of symptoms of communicable diseases whether or not such symptoms are caused by a communicable disease.
(6) Payments for foster care and adoption assistance.
(7) Programs, services, or assistance (such as soup kitchens, crisis counseling and intervention, and short-term shelter) specified by the Attorney General of a State, after consultation with appropriate agencies and departments, which
(A) deliver in-kind services at the community level, including through public or private nonprofit agencies; (B) do not condition the provision of assistance, the amount of assistance provided, or the cost of assistance provided on the individual recipient's income or resources; and (C) are necessary for the protection of life or safety.
SEC. 423. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.
(a) In General.--Title II of the Immigration and Nationality Act is amended by inserting after section 213 the following new section:
``requirements for sponsor's affidavit of support
``Sec. 213A. (a) Enforceability.--(1) No affidavit of support may be accepted by the Attorney General or by any consular officer to establish that an alien is not excludable as a public charge under section 212(a)(4) unless such affidavit is executed as a contract--
``(A) which is legally enforceable against the sponsor by the sponsored alien, the Federal Government, and by any State
(or any political subdivision of such State) which provides any means-tested public benefits program, but not later than 10 years after the alien last receives any such benefit;
``(B) in which the sponsor agrees to financially support the alien, so that the alien will not become a public charge; and
``(C) in which the sponsor agrees to submit to the jurisdiction of any Federal or State court for the purpose of actions brought under subsection (e)(2).
``(2) A contract under paragraph (1) shall be enforceable with respect to benefits provided to the alien until such time as the alien achieves United States citizenship through naturalization pursuant to chapter 2 of title III.
``(b) Forms.--Not later than 90 days after the date of enactment of this section, the Attorney General, in consultation with the Secretary of State and the Secretary of Health and Human Services, shall formulate an affidavit of support consistent with the provisions of this section.
``(c) Remedies.--Remedies available to enforce an affidavit of support under this section include any or all of the remedies described in section 3201, 3203, 3204, or 3205 of title 28, United States Code, as well as an order for specific performance and payment of legal fees and other costs of collection, and include corresponding remedies available under State law. A Federal agency may seek to collect amounts owed under this section in accordance with the provisions of subchapter II of chapter 37 of title 31, United States Code.
``(d) Notification of Change of Address.--
``(1) In general.--The sponsor shall notify the Attorney General and the State in which the sponsored alien is currently resident within 30 days of any change of address of the sponsor during the period specified in subsection (a)(2).
``(2) Penalty.--Any person subject to the requirement of paragraph (1) who fails to satisfy such requirement shall be subject to a civil penalty of--
``(A) not less than $250 or more than $2,000, or
``(B) if such failure occurs with knowledge that the alien has received any means-tested public benefit, not less than
$2,000 or more than $5,000.
``(e) Reimbursement of Government Expenses.--(1)(A) Upon notification that a sponsored alien has received any benefit under any means-tested public benefits program, the appropriate Federal, State, or local official shall request reimbursement by the sponsor in the amount of such assistance.
``(B) The Attorney General, in consultation with the Secretary of Health and Human Services, shall prescribe such regulations as may be necessary to carry out subparagraph
(A).
``(2) If within 45 days after requesting reimbursement, the appropriate Federal, State, or local agency has not received a response from the sponsor indicating a willingness to commence payments, an action may be brought against the sponsor pursuant to the affidavit of support.
``(3) If the sponsor fails to abide by the repayment terms established by such agency, the agency may, within 60 days of such failure, bring an action against the sponsor pursuant to the affidavit of support.
``(4) No cause of action may be brought under this subsection later than 10 years after the alien last received any benefit under any means-tested public benefits program.
``(5) If, pursuant to the terms of this subsection, a Federal, State, or local agency requests reimbursement from the sponsor in the amount of assistance provided, or brings an action against the sponsor pursuant to the affidavit of support, the appropriate agency may appoint or hire an individual or other person to act on behalf of such agency acting under the authority of law for purposes of collecting any moneys owed. Nothing in this subsection shall preclude any appropriate Federal, State, or local agency from directly requesting reimbursement from a sponsor for the amount of assistance provided, or from bringing an action against a sponsor pursuant to an affidavit of support.
``(f) Definitions.--For the purposes of this section--
``(1) Sponsor.--The term `sponsor' means an individual who--
``(A) is a citizen or national of the United States or an alien who is lawfully admitted to the United States for permanent residence;
``(B) is 18 years of age or over;
``(C) is domiciled in any of the 50 States or the District of Columbia; and
``(D) is the person petitioning for the admission of the alien under section 204.''.
(b) Clerical Amendment.--The table of contents of such Act is amended by inserting after the item relating to section 213 the following:
``Sec. 213A. Requirements for sponsor's affidavit of support.''.
(c) Effective Date.--Subsection (a) of section 213A of the Immigration and Nationality Act, as inserted by subsection
(a) of this section, shall apply to affidavits of support executed on or after a date specified by the Attorney General, which date shall be not earlier than 60 days (and not later than 90 days) after the date the Attorney General formulates the form for such affidavits under subsection (b) of such section.
(d) Benefits Not Subject to Reimbursement.--Requirements for reimbursement by a sponsor for benefits provided to a sponsored alien pursuant to an affidavit of support under section 213A of the Immigration and Nationality Act shall not apply with respect to the following:
(1) Medical assistance described in section 401(b)(1)(A) or assistance described in section 411(b)(1).
(2) Short-term, non-cash, in-kind emergency disaster relief.
(3) Assistance or benefits under the National School Lunch Act.
(4) Assistance or benefits under the Child Nutrition Act of 1966.
(5) Public health assistance for immunizations (not including any assistance under title XIX of the Social Security Act) with respect to immunizable diseases and for testing and treatment of symptoms of communicable diseases whether or not such symptoms are caused by a communicable disease.
(6) Payments for foster care and adoption assistance under parts B and E of title IV of the Social Security Act for a parent or a child, but only if the foster or adoptive parent
(or parents) of such child is a qualified alien (as defined in section 431).
(7) Programs, services, or assistance (such as soup kitchens, crisis counseling and intervention, and short-term shelter) specified by the Attorney General, in the Attorney General's sole and unreviewable discretion after consultation with appropriate Federal agencies and departments, which (A) deliver in-kind services at the community level, including through public or private nonprofit agencies; (B) do not condition the provision of assistance, the amount of assistance provided, or the cost of assistance provided on the individual recipient's income or resources; and (C) are necessary for the protection of life or safety.
(8) Programs of student assistance under titles IV, V, IX, and X of the Higher Education Act of 1965, and titles III, VII, and VIII of the Public Health Service Act.
(9) Benefits under the Head Start Act.
(10) Means-tested programs under the Elementary and Secondary Education Act of 1965.
(11) Benefits under the Job Training Partnership Act.
Subtitle D--General Provisions
SEC. 431. DEFINITIONS.
(a) In General.--Except as otherwise provided in this title, the terms used in this title have the same meaning given such terms in section 101(a) of the Immigration and Nationality Act.
(b) Qualified Alien.--For purposes of this title, the term
``qualified alien'' means an alien who, at the time the alien applies for, receives, or attempts to receive a Federal public benefit, is--
(1) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act,
(2) an alien who is granted asylum under section 208 of such Act,
(3) a refugee who is admitted to the United States under section 207 of such Act,
(4) an alien who is paroled into the United States under section 212(d)(5) of such Act for a period of at least 1 year,
(5) an alien whose deportation is being withheld under section 243(h) of such Act, or
(6) an alien who is granted conditional entry pursuant to section 203(a)(7) of such Act as in effect prior to April 1, 1980.
SEC. 432. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC
BENEFITS.
(a) In General.--Not later than 18 months after the date of the enactment of this Act, the Attorney General of the United States, after consultation with the Secretary of Health and Human Services, shall promulgate regulations requiring verification that a person applying for a Federal public benefit (as defined in section 401(c)), to which the limitation under section 401 applies, is a qualified alien and is eligible to receive such benefit. Such regulations shall, to the extent feasible, require that information requested and exchanged be similar in form and manner to information requested and exchanged under section 1137 of the Social Security Act.
(b) State Compliance.--Not later than 24 months after the date the regulations described in subsection (a) are adopted, a State that administers a program that provides a Federal public benefit shall have in effect a verification system that complies with the regulations.
(c) Authorization of Appropriations.--There are authorized to be appropriated such sums as may be necessary to carry out the purpose of this section.
SEC. 433. STATUTORY CONSTRUCTION.
(a) Limitation.--
(1) Nothing in this title may be construed as an entitlement or a determination of an individual's eligibility or fulfillment of the requisite requirements for any Federal, State, or local governmental program, assistance, or benefits. For purposes of this title, eligibility relates only to the general issue of eligibility or ineligibility on the basis of alienage.
(2) Nothing in this title may be construed as addressing alien eligibility for a basic public education as determined by the Supreme Court of the United States under Plyler v. Doe
(457 U.S. 202)(1982).
(b) Not Applicable to Foreign Assistance.--This title does not apply to any Federal, State, or local governmental program, assistance, or benefits provided to an alien under any program of foreign assistance as determined by the Secretary of State in consultation with the Attorney General.
(c) Severability.--If any provision of this title or the application of such provision to any person or circumstance is held to be unconstitutional, the remainder of this title and the application of the provisions of such to any person or circumstance shall not be affected thereby.
SEC. 434. COMMUNICATION BETWEEN STATE AND LOCAL GOVERNMENT
AGENCIES AND THE IMMIGRATION AND NATURALIZATION
SERVICE.
Notwithstanding any other provision of Federal, State, or local law, no State or local government entity may be prohibited, or in any way restricted, from sending to or receiving from the Immigration and Naturalization Service information regarding the immigration status, lawful or unlawful, of an alien in the United States.
SEC. 435. QUALIFYING QUARTERS.
For purposes of this title, in determining the number of qualifying quarters of coverage under title II of the Social Security Act an alien shall be credited with--
(1) all of the qualifying quarters of coverage as defined under title II of the Social Security Act worked by a parent of such alien while the alien was under age 18, and
(2) all of the qualifying quarters worked by a spouse of such alien during their marriage and the alien remains married to such spouse or such spouse is deceased.No such qualifying quarter of coverage that is creditable under title II of the Social Security Act for any period beginning after December 31, 1996, may be credited to an alien under paragraph (1) or (2) if the parent or spouse (as the case may be) of such alien received any Federal means-tested public benefit (as provided under section 403) during the period for which such qualifying quarter of coverage is so credited.Subtitle E--Conforming Amendments Relating to Assisted Housing
SEC. 441. CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING.
(a) Limitations on Assistance.--Section 214 of the Housing and Community Development Act of 1980 (42 U.S.C. 1436a) is amended--
(1) by striking ``Secretary of Housing and Urban Development'' each place it appears and inserting
``applicable Secretary'';
(2) in subsection (b), by inserting after ``National Housing Act,'' the following: ``the direct loan program under section 502 of the Housing Act of 1949 or section 502(c)(5)(D), 504, 521(a)(2)(A), or 542 of such Act, subtitle A of title III of the Cranston-Gonzalez National Affordable Housing Act,'';
(3) in paragraphs (2) through (6) of subsection (d), by striking ``Secretary'' each place it appears and inserting
``applicable Secretary'';
(4) in subsection (d), in the matter following paragraph
(6), by striking ``the term `Secretary''' and inserting ``the term `applicable Secretary'''; and
(5) by adding at the end the following new subsection:
``(h) For purposes of this section, the term `applicable Secretary' means--
``(1) the Secretary of Housing and Urban Development, with respect to financial assistance administered by such Secretary and financial assistance under subtitle A of title III of the Cranston-Gonzalez National Affordable Housing Act; and
``(2) the Secretary of Agriculture, with respect to financial assistance administered by such Secretary.''.
(b) Conforming Amendments.--Section 501(h) of the Housing Act of 1949 (42 U.S.C. 1471(h)) is amended--
(1) by striking ``(1)'';
(2) by striking ``by the Secretary of Housing and Urban Development''; and
(3) by striking paragraph (2).
Subtitle F--Earned Income Credit Denied to Unauthorized Employees
SEC. 451. EARNED INCOME CREDIT DENIED TO INDIVIDUALS NOT
AUTHORIZED TO BE EMPLOYED IN THE UNITED STATES.
(a) In General.--Section 32(c)(1) of the Internal Revenue Code of 1986 (relating to individuals eligible to claim the earned income credit) is amended by adding at the end the following new subparagraph:
``(F) Identification number requirement.--The term
`eligible individual' does not include any individual who does not include on the return of tax for the taxable year--
``(i) such individual's taxpayer identification number, and
``(ii) if the individual is married (within the meaning of section 7703), the taxpayer identification number of such individual's spouse.''.
(b) Special Identification Number.--Section 32 of such Code is amended by adding at the end the following new subsection:
``(l) Identification Numbers.--Solely for purposes of subsections (c)(1)(F) and (c)(3)(D), a taxpayer identification number means a social security number issued to an individual by the Social Security Administration (other than a social security number issued pursuant to clause (II)
(or that portion of clause (III) that relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security Act).''.
(c) Extension of Procedures Applicable to Mathematical or Clerical Errors.--Section 6213(g)(2) of such Code (relating to the definition of mathematical or clerical errors) is amended by striking ``and' at the end of subparagraph (D), by striking the period at the end of subparagraph (E) and inserting a comma, and by inserting after subparagraph (E) the following new subparagraphs:
``(F) an omission of a correct taxpayer identification number required under section 32 (relating to the earned income credit) to be included on a return, and
``(G) an entry on a return claiming the credit under section 32 with respect to net earnings from self-employment described in section 32(c)(2)(A) to the extent the tax imposed by section 1401 (relating to self-employment tax) on such net earnings has not been paid.''.
(d) Effective Date.--The amendments made by this section shall apply with respect to returns the due date for which
(without regard to extensions) is more than 30 days after the date of the enactment of this Act.
TITLE V--CHILD PROTECTION
SEC. 501. AUTHORITY OF STATES TO MAKE FOSTER CARE MAINTENANCE
PAYMENTS ON BEHALF OF CHILDREN IN ANY PRIVATE
CHILD CARE INSTITUTION.
Section 472(c)(2) of the Social Security Act (42 U.S.C. 672(c)(2)) is amended by striking ``nonprofit''.
SEC. 502. EXTENSION OF ENHANCED MATCH FOR IMPLEMENTATION OF
STATEWIDE AUTOMATED CHILD WELFARE INFORMATION
SYSTEMS.
Section 13713(b)(2) of the Omnibus Budget Reconciliation Act of 1993 (42 U.S.C. 674 note; 107 Stat. 657) is amended by striking ``1996'' and inserting ``1997''.
SEC. 503. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.
Part B of title IV of the Social Security Act (42 U.S.C. 620-628a) is amended by adding at the end the following:
``SEC. 429A. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.
``(a) In General.--The Secretary shall conduct a national study based on random samples of children who are at risk of child abuse or neglect, or are determined by States to have been abused or neglected.
``(b) Requirements.--The study required by subsection (a) shall--
``(1) have a longitudinal component; and
``(2) yield data reliable at the State level for as many States as the Secretary determines is feasible.
``(c) Preferred Contents.--In conducting the study required by subsection (a), the Secretary should--
``(1) carefully consider selecting the sample from cases of confirmed abuse or neglect; and
``(2) follow each case for several years while obtaining information on, among other things--
``(A) the type of abuse or neglect involved;
``(B) the frequency of contact with State or local agencies;
``(C) whether the child involved has been separated from the family, and, if so, under what circumstances;
``(D) the number, type, and characteristics of out-of-home placements of the child; and
``(E) the average duration of each placement.
``(d) Reports.--
``(1) In general.--From time to time, the Secretary shall prepare reports summarizing the results of the study required by subsection (a).
``(2) Availability.--The Secretary shall make available to the public any report prepared under paragraph (1), in writing or in the form of an electronic data tape.
``(3) Authority to charge fee.--The Secretary may charge and collect a fee for the furnishing of reports under paragraph (2).
``(e) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated to the Secretary for each of fiscal years 1996 through 2002 $6,000,000 to carry out this section.''.
SEC. 504. REDESIGNATION OF SECTION 1123.
The Social Security Act is amended by redesignating section 1123, the second place it appears (42 U.S.C. 1320a-1a), as section 1123A.
SEC. 505. KINSHIP CARE.
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)) is amended--
(1) by striking ``and'' at the end of paragraph (16);
(2) by striking the period at the end of paragraph (17) and inserting ``; and''; and
(3) by adding at the end the following:
``(18) provides that the State shall consider giving preference to an adult relative over a non-related caregiver when determining a placement for a child, provided that the relative caregiver meets all relevant State child protection standards.''.
TITLE VI--CHILD CARE
SEC. 601. SHORT TITLE AND REFERENCES.
(a) Short Title.--This title may be cited as the ``Child Care and Development Block Grant Amendments of 1996''.
(b) References.--Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.).
SEC. 602. GOALS.
Section 658A (42 U.S.C. 9801 note) is amended--
(1) in the section heading by inserting ``and goals'' after
``title'';
(2) by inserting ``(a) Short Title.--'' before ``This''; and
(3) by adding at the end the following:
``(b) Goals.--The goals of this subchapter are--
``(1) to allow each State maximum flexibility in developing child care programs and policies that best suit the needs of children and parents within such State;
``(2) to promote parental choice to empower working parents to make their own decisions on the child care that best suits their family's needs;
``(3) to encourage States to provide consumer education information to help parents make informed choices about child care;
``(4) to assist States to provide child care to parents trying to achieve independence from public assistance; and
``(5) to assist States in implementing the health, safety, licensing, and registration standards established in State regulations.''.
SEC. 603. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT
AUTHORITY.
(a) In General.--Section 658B (42 U.S.C. 9858) is amended to read as follows:
``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this subchapter $1,000,000,000 for each of the fiscal years 1996 through 2002.''.
(b) Social Security Act.--Part A of title IV of the Social Security Act (42 U.S.C. 601-617) is amended by adding at the end the following new section:
``SEC. 418. FUNDING FOR CHILD CARE.
``(a) General Child Care Entitlement.--
``(1) General entitlement.--Subject to the amount appropriated under paragraph (3), each State shall, for the purpose of providing child care assistance, be entitled to payments under a grant under this subsection for a fiscal year in an amount equal to--
``(A) the sum of the total amount required to be paid to the State under section 403 for fiscal year 1994 or 1995
(whichever is greater) with respect to amounts expended for child care under section--
``(i) 402(g) of this Act (as such section was in effect before October 1, 1995); and
``(ii) 402(i) of this Act (as so in effect); or
``(B) the average of the total amounts required to be paid to the State for fiscal years 1992 through 1994 under the sections referred to in subparagraph (A);whichever is greater.
``(2) Remainder.--
``(A) Grants.--The Secretary shall use any amounts appropriated for a fiscal year under paragraph (3), and remaining after the reservation described in paragraph (4) and after grants are awarded under paragraph (1), to make grants to States under this paragraph.
``(B) Amount.--Subject to subparagraph (C), the amount of a grant awarded to a State for a fiscal year under this paragraph shall be based on the formula used for determining the amount of Federal payments to the State under section 403(n) (as such section was in effect before October 1, 1995).
``(C) Matching requirement.--The Secretary shall pay to each eligible State in a fiscal year an amount, under a grant under subparagraph (A), equal to the Federal medical assistance percentage for such State for fiscal year 1995 (as defined in section 1905(b)) of so much of the expenditures by the State for child care in such year as exceed the State set-aside for such State under paragraph (1)(A) for such year and the amount of State expenditures in fiscal year 1994 or 1995 (whichever is greater) that equal the non-Federal share for the programs described in subparagraph (A) of paragraph
(1).
``(D) Redistribution.--
``(i) In general.--With respect to any fiscal year, if the Secretary determines (in accordance with clause (ii)) that amounts under any grant awarded to a State under this paragraph for such fiscal year will not be used by such State during such fiscal year for carrying out the purpose for which the grant is made, the Secretary shall make such amounts available in the subsequent fiscal year for carrying out such purpose to 1 or more States which apply for such funds to the extent the Secretary determines that such States will be able to use such additional amounts for carrying out such purpose. Such available amounts shall be redistributed to a State pursuant to section 403(n) (as such section was in effect before October 1, 1995) by substituting `the number of children residing in all States applying for such funds' for
`the number of children residing in the United States in the second preceding fiscal year'.
``(ii) Time of determination and distribution.--The determination of the Secretary under clause (i) for a fiscal year shall be made not later than the end of the first quarter of the subsequent fiscal year. The redistribution of amounts under clause (i) shall be made as close as practicable to the date on which such determination is made. Any amount made available to a State from an appropriation for a fiscal year in accordance with this subparagraph shall, for purposes of this part, be regarded as part of such State's payment (as determined under this subsection) for the fiscal year in which the redistribution is made.
``(3) Appropriation.--For grants under this section, there are appropriated--
``(A) $1,967,000,000 for fiscal year 1997;
``(B) $2,067,000,000 for fiscal year 1998;
``(C) $2,167,000,000 for fiscal year 1999;
``(D) $2,367,000,000 for fiscal year 2000;
``(E) $2,567,000,000 for fiscal year 2001; and
``(F) $2,717,000,000 for fiscal year 2002.
``(4) Indian tribes.--The Secretary shall reserve not less than 1 percent, and not more 2 percent, of the aggregate amount appropriated to carry out this section in each fiscal year for payments to Indian tribes and tribal organizations.
``(b) Use of Funds.--
``(1) In general.--Amounts received by a State under this section shall only be used to provide child care assistance. Amounts received by a State under a grant under subsection
(a)(1) shall be available for use by the State without fiscal year limitation.
``(2) Use for certain populations.--A State shall ensure that not less than 70 percent of the total amount of funds received by the State in a fiscal year under this section are used to provide child care assistance to families who are receiving assistance under a State program under this part, families who are attempting through work activities to transition off of such assistance program, and families who are at risk of becoming dependent on such assistance program.
``(c) Application of Child Care and Development Block Grant Act of 1990.--Notwithstanding any other provision of law, amounts provided to a State under this section shall be transferred to the lead agency under the Child Care and Development Block Grant Act of 1990, integrated by the State into the programs established by the State under such Act, and be subject to requirements and limitations of such Act.
``(d) Definition.--As used in this section, the term
`State' means each of the 50 States or the District of Columbia.''.
SEC. 604. LEAD AGENCY.
Section 658D(b) (42 U.S.C. 9858b(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``State'' the first place that such appears and inserting ``governmental or nongovernmental''; and
(B) in subparagraph (C), by inserting ``with sufficient time and Statewide distribution of the notice of such hearing,'' after ``hearing in the State''; and
(2) in paragraph (2), by striking the second sentence.
SEC. 605. APPLICATION AND PLAN.
Section 658E (42 U.S.C. 9858c) is amended--
(1) in subsection (b)--
(A) by striking ``implemented--'' and all that follows through ``(2)'' and inserting ``implemented''; and
(B) by striking ``for subsequent State plans'';
(2) in subsection (c)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (i) by striking ``, other than through assistance provided under paragraph (3)(C),''; and
(II) by striking ``except'' and all that follows through
``1992'', and inserting ``and provide a detailed description of the procedures the State will implement to carry out the requirements of this subparagraph'';
(ii) in subparagraph (B)--
(I) by striking ``Provide assurances'' and inserting
``Certify''; and
(II) by inserting before the period at the end ``and provide a detailed description of such procedures'';
(iii) in subparagraph (C)--
(I) by striking ``Provide assurances'' and inserting
``Certify''; and
(II) by inserting before the period at the end ``and provide a detailed description of how such record is maintained and is made available'';
(iv) by amending subparagraph (D) to read as follows:
``(D) Consumer education information.--Certify that the State will collect and disseminate to parents of eligible children and the general public, consumer education information that will promote informed child care choices.'';
(v) in subparagraph (E), to read as follows:
``(E) Compliance with state licensing requirements.--
``(i) In general.--Certify that the State has in effect licensing requirements applicable to child care services provided within the State, and provide a detailed description of such requirements and of how such requirements are effectively enforced. Nothing in the preceding sentence shall be construed to require that licensing requirements be applied to specific types of providers of child care services.
``(ii) Indian tribes and tribal organizations.--In lieu of any licensing and regulatory requirements applicable under State and local law, the Secretary, in consultation with Indian tribes and tribal organizations, shall develop minimum child care standards (that appropriately reflect tribal needs and available resources) that shall be applicable to Indian tribes and tribal organization receiving assistance under this subchapter.'';
(vi) in subparagraph (F) by striking ``Provide assurances'' and inserting ``Certify'';
(vii) in subparagraph (G) by striking ``Provide assurances'' and inserting ``Certify''; and
(viii) by striking subparagraphs (H), (I), and (J) and inserting the following:
``(H) Meeting the needs of certain populations.--Demonstrate the manner in which the State will meet the specific child care needs of families who are receiving assistance under a State program under part A of title IV of the Social Security Act, families who are attempting through work activities to transition off of such assistance program, and families that are at risk of becoming dependent on such assistance program.'';
(B) in paragraph (3)--
(i) in subparagraph (A), by striking ``(B) and (C)'' and inserting ``(B) through (D)'';
(ii) in subparagraph (B)--
(I) by striking ``.--Subject to the reservation contained in subparagraph (C), the'' and inserting ``and related activities.--The'';
(II) in clause (i) by striking ``; and'' at the end and inserting a period;
(III) by striking ``for--'' and all that follows through
``section 658E(c)(2)(A)'' and inserting ``for child care services on a sliding fee scale basis, activities that improve the quality or availability of such services, and any other activity that the State deems appropriate to realize any of the goals specified in paragraphs (2) through (5) of section 658A(b)''; and
(IV) by striking clause (ii);
(iii) by amending subparagraph (C) to read as follows:
``(C) Limitation on administrative costs.--Not more than 5 percent of the aggregate amount of funds available to the State to carry out this subchapter by a State in each fiscal year may be expended for administrative costs incurred by such State to carry out all of its functions and duties under this subchapter. As used in the preceding sentence, the term
`administrative costs' shall not include the costs of providing direct services.''; and
(iv) by adding at the end thereof the following:
``(D) Assistance for certain families.--A State shall ensure that a substantial portion of the amounts available
(after the State has complied with the requirement of section 418(b)(2) of the Social Security Act with respect to each of the fiscal years 1997 through 2002) to the State to carry out activities under this subchapter in each fiscal year is used to provide assistance to low-income working families other than families described in paragraph (2)(H).''; and
(C) in paragraph (4)(A)--
(i) by striking ``provide assurances'' and inserting
``certify'';
(ii) in the first sentence by inserting ``and shall provide a summary of the facts relied on by the State to determine that such rates are sufficient to ensure such access'' before the period; and
(iii) by striking the last sentence.
SEC. 606. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b)(1) (42 U.S.C. 9858d(b)(1)) is amended by striking ``No'' and inserting ``Except as provided for in section 658O(c)(6), no''.
SEC. 607. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
Section 658G (42 U.S.C. 9858e) is amended to read as follows:
``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
``A State that receives funds to carry out this subchapter for a fiscal year, shall use not less than 4 percent of the amount of such funds for activities that are designed to provide comprehensive consumer education to parents and the public, activities that increase parental choice, and activities designed to improve the quality and availability of child care (such as resource and referral services).''.
SEC. 608. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE-
AND AFTER-SCHOOL CARE REQUIREMENT.
Section 658H (42 U.S.C. 9858f) is repealed.
SEC. 609. ADMINISTRATION AND ENFORCEMENT.
Section 658I(b) (42 U.S.C. 9858g(b)) is amended--
(1) in paragraph (1), by striking ``, and shall have'' and all that follows through ``(2)''; and
(2) in the matter following clause (ii) of paragraph
(2)(A), by striking ``finding and that'' and all that follows through the period and inserting ``finding and shall require that the State reimburse the Secretary for any funds that were improperly expended for purposes prohibited or not authorized by this subchapter, that the Secretary deduct from the administrative portion of the State allotment for the following fiscal year an amount that is less than or equal to any improperly expended funds, or a combination of such options.''.
SEC. 610. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended--
(1) by striking ``expended'' and inserting ``obligated''; and
(2) by striking ``3 fiscal years'' and inserting ``fiscal year''.
SEC. 611. ANNUAL REPORT AND AUDITS.
Section 658K (42 U.S.C. 9858i) is amended--
(1) in the section heading by striking ``annual report'' and inserting ``reports'';
(2) in subsection (a), to read as follows:
``(a) Reports.--
``(1) Collection of information by states.--
``(A) In general.--A State that receives funds to carry out this subchapter shall collect the information described in subparagraph (B) on a monthly basis.
``(B) Required information.--The information required under this subparagraph shall include, with respect to a family unit receiving assistance under this subchapter information concerning--
``(i) family income;
``(ii) county of residence;
``(iii) the gender, race, and age of children receiving such assistance;
``(iv) whether the family includes only 1 parent;
``(v) the sources of family income, including the amount obtained from (and separately identified)--
``(I) employment, including self-employment;
``(II) cash or other assistance under part A of title IV of the Social Security Act;
``(III) housing assistance;
``(IV) assistance under the Food Stamp Act of 1977; and
``(V) other assistance programs;
``(vi) the number of months the family has received benefits;
``(vii) the type of child care in which the child was enrolled (such as family child care, home care, or center-based child care);
``(viii) whether the child care provider involved was a relative;
``(ix) the cost of child care for such families; and
``(x) the average hours per week of such care;during the period for which such information is required to be submitted.
``(C) Submission to secretary.--A State described in subparagraph (A) shall, on a quarterly basis, submit the information required to be collected under subparagraph (B) to the Secretary.
``(D) Sampling.--The Secretary may disapprove the information collected by a State under this paragraph if the State uses sampling methods to collect such information.
``(2) Biannual reports.--Not later than December 31, 1997, and every 6 months thereafter, a State described in paragraph
(1)(A) shall prepare and submit to the Secretary a report that includes aggregate data concerning--
``(A) the number of child care providers that received funding under this subchapter as separately identified based on the types of providers listed in section 658P(5);
``(B) the monthly cost of child care services, and the portion of such cost that is paid for with assistance provided under this subchapter, listed by the type of child care services provided;
``(C) the number of payments made by the State through vouchers, contracts, cash, and disregards under public benefit programs, listed by the type of child care services provided;
``(D) the manner in which consumer education information was provided to parents and the number of parents to whom such information was provided; and
``(E) the total number (without duplication) of children and families served under this subchapter;during the period for which such report is required to be submitted.''; and
(2) in subsection (b)--
(A) in paragraph (1) by striking ``a application'' and inserting ``an application'';
(B) in paragraph (2) by striking ``any agency administering activities that receive'' and inserting ``the State that receives''; and
(C) in paragraph (4) by striking ``entitles'' and inserting
``entitled''.
SEC. 612. REPORT BY THE SECRETARY.
Section 658L (42 U.S.C. 9858j) is amended--
(1) by striking ``1993'' and inserting ``1997'';
(2) by striking ``annually'' and inserting ``biennially''; and
(3) by striking ``Education and Labor'' and inserting
``Economic and Educational Opportunities''.
SEC. 613. ALLOTMENTS.
Section 658O (42 U.S.C. 9858m) is amended--
(1) in subsection (a)--
(A) in paragraph (1)
(i) by striking ``Possessions'' and inserting
``possessions'';
(ii) by inserting ``and'' after ``States,''; and
(iii) by striking ``, and the Trust Territory of the Pacific Islands''; and
(B) in paragraph (2), by striking ``more than 3 percent'' and inserting ``less than 1 percent, and not more than 2 percent,'';
(2) in subsection (c)--
(A) in paragraph (5) by striking ``our'' and inserting
``out''; and
(B) by adding at the end thereof the following new paragraph:
``(6) Construction or renovation of facilities.--
``(A) Request for use of funds.--An Indian tribe or tribal organization may submit to the Secretary a request to use amounts provided under this subsection for construction or renovation purposes.
``(B) Determination.--With respect to a request submitted under subparagraph (A), and except as provided in subparagraph (C), upon a determination by the Secretary that adequate facilities are not otherwise available to an Indian tribe or tribal organization to enable such tribe or organization to carry out child care programs in accordance with this subchapter, and that the lack of such facilities will inhibit the operation of such programs in the future, the Secretary may permit the tribe or organization to use assistance provided under this subsection to make payments for the construction or renovation of facilities that will be used to carry out such programs.
``(C) Limitation.--The Secretary may not permit an Indian tribe or tribal organization to use amounts provided under this subsection for construction or renovation if such use will result in a decrease in the level of child care services provided by the tribe or organization as compared to the level of such services provided by the tribe or organization in the fiscal year preceding the year for which the determination under subparagraph (A) is being made.
``(D) Uniform procedures.--The Secretary shall develop and implement uniform procedures for the solicitation and consideration of requests under this paragraph.''; and
(3) in subsection (e), by adding at the end thereof the following new paragraph:
``(4) Indian tribes or tribal organizations.--Any portion of a grant or contract made to an Indian tribe or tribal organization under subsection (c) that the Secretary determines is not being used in a manner consistent with the provision of this subchapter in the period for which the grant or contract is made available, shall be allotted by the Secretary to other tribes or organizations that have submitted applications under subsection (c) in accordance with their respective needs.''.
SEC. 614. DEFINITIONS.
Section 658P (42 U.S.C. 9858n) is amended--
(1) in paragraph (2), in the first sentence by inserting
``or as a deposit for child care services if such a deposit is required of other children being cared for by the provider'' after ``child care services''; and
(2) by striking paragraph (3);
(3) in paragraph (4)(B), by striking ``75 percent'' and inserting ``85 percent'';
(4) in paragraph (5)(B)--
(A) by inserting ``great grandchild, sibling (if such provider lives in a separate residence),'' after
``grandchild,'';
(B) by striking ``is registered and''; and
(C) by striking ``State'' and inserting ``applicable''.
(5) by striking paragraph (10);
(6) in paragraph (13)--
(A) by inserting ``or'' after ``Samoa,''; and
(B) by striking ``, and the Trust Territory of the Pacific Islands'';
(7) in paragraph (14)--
(A) by striking ``The term'' and inserting the following:
``(A) In general.--The term''; and
(B) by adding at the end thereof the following new subparagraph:
``(B) Other organizations.--Such term includes a Native Hawaiian Organization, as defined in section 4009(4) of the Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary School Improvement Amendments of 1988 (20 U.S.C. 4909(4)) and a private nonprofit organization established for the purpose of serving youth who are Indians or Native Hawaiians.''.
SEC. 615. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), this title and the amendments made by this title shall take effect on October 1, 1996.
(b) Exception.--The amendment made by section 603(a) shall take effect on the date of enactment of this Act.
TITLE VII--CHILD NUTRITION PROGRAMS
Subtitle A--National School Lunch Act
SEC. 701. STATE DISBURSEMENT TO SCHOOLS.
(a) In General.--Section 8 of the National School Lunch Act
(42 U.S.C. 1757) is amended--
(1) in the third sentence, by striking ``Nothing'' and all that follows through ``educational agency to'' and inserting
``The State educational agency may'';
(2) by striking the fourth and fifth sentences;
(3) by redesignating the first through seventh sentences, as amended by paragraph (2), as subsections (a) through (g), respectively;
(4) in subsection (b), as redesignated by paragraph (3), by striking ``the preceding sentence'' and inserting
``subsection (a)''; and
(5) in subsection (d), as redesignated by paragraph (3), by striking ``Such food costs'' and inserting ``Use of funds paid to States''.
(b) Definition of Child.--Section 12(d) of the National School Lunch Act (42 U.S.C. 1760(d)) is amended by adding at the end the following:
``(9) Child.--
``(A) In general.--The term `child' includes an individual, regardless of age, who--
``(i) is determined by a State educational agency, in accordance with regulations prescribed by the Secretary, to have 1 or more mental or physical disabilities; and
``(ii) is attending any institution, as defined in section 17(a), or any nonresidential public or nonprofit private school of high school grade or under, for the purpose of participating in a school program established for individuals with mental or physical disabilities.
``(B) Relationship to child and adult care food program.--No institution that is not otherwise eligible to participate in the program under section 17 shall be considered eligible because of this paragraph.''.
SEC. 702. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.
(a) Nutritional Standards.--Section 9(a) of the National School Lunch Act (42 U.S.C. 1758(a)) is amended--
(1) in paragraph (2)--
(A) by striking ``(2)(A) Lunches'' and inserting ``(2) Lunches'';
(B) by striking subparagraph (B); and
(C) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B), respectively;
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as paragraph (3).
(b) Utilization of Agricultural Commodities.--Section 9(c) of the National School Lunch Act (42 U.S.C. 1758(c)) is amended--
(1) in the fifth sentence, by striking ``of the provisions of law referred to in the preceding sentence'' and inserting
``provision of law''; and
(2) by striking the second, fourth, and sixth sentences.
(c) Nutritional Information.--Section 9(f) of the National School Lunch Act (42 U.S.C. 1758(f)) is amended--
(1) by striking paragraph (1);
(2) by striking ``(2)'';
(3) by redesignating subparagraphs (A) through (D) as paragraphs (1) through (4), respectively;
(4) by striking paragraph (1), as redesignated by paragraph
(3), and inserting the following:
``(1) Nutritional requirements.--Except as provided in paragraph (2), not later than the first day of the 1996-1997 school year, schools that are participating in the school lunch or school breakfast program shall serve lunches and breakfasts under the program that--
``(A) are consistent with the goals of the most recent Dietary Guidelines for Americans published under section 301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341); and
``(B) provide, on the average over each week, at least--
``(i) with respect to school lunches, \1/3\ of the daily recommended dietary allowance established by the Food and Nutrition Board of the National Research Council of the National Academy of Sciences; and
``(ii) with respect to school breakfasts, \1/4\ of the daily recommended dietary allowance established by the Food and Nutrition Board of the National Research Council of the National Academy of Sciences.'';
(5) in paragraph (3), as redesignated by paragraph (3)--
(A) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B), respectively; and
(B) in subparagraph (A), as so redesignated, by redesignating subclauses (I) and (II) as clauses (i) and
(ii), respectively; and
(6) in paragraph (4), as redesignated by paragraph (3)--
(A) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B), respectively;
(B) in subparagraph (A), as redesignated by subparagraph
(A), by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively; and
(C) in subparagraph (A)(ii), as redesignated by subparagraph (B), by striking ``subparagraph (C)'' and inserting ``paragraph (3)''.
(d) Use of Resources.--Section 9 of the National School Lunch Act (42 U.S.C. 1758) is amended by striking subsection
(h).
SEC. 703. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 9(b)(2) of the National School Lunch Act (42 U.S.C. 1758(b)(2)) is amended by adding at the end the following:
``(D) Free and reduced price policy statement.--After the initial submission, a school food authority shall not be required to submit a free and reduced price policy statement to a State educational agency under this Act unless there is a substantive change in the free and reduced price policy of the school food authority. A routine change in the policy of a school food authority, such as an annual adjustment of the income eligibility guidelines for free and reduced price meals, shall not be sufficient cause for requiring the school food authority to submit a policy statement.''.
SEC. 704. SPECIAL ASSISTANCE.
(a) Extension of Payment Period.--Section 11(a)(1)(D)(i) of the National School Lunch Act (42 U.S.C. 1759a(a)(1)(D)(i)) is amended by striking ``, on the date of enactment of this subparagraph,''.
(b) Rounding Rule for Lunch, Breakfast, and Supplement Rates.--
(1) In general.--The third sentence of section 11(a)(3)(B) of the National School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended by adding before the period at the end the following: ``, except that adjustments to payment rates for meals and supplements served to individuals not determined to be eligible for free or reduced price meals and supplements shall be computed to the nearest lower cent increment and based on the unrounded amount for the preceding 12-month period''.
(2) Effective date.--The amendment made by paragraph (1) shall become effective on July 1, 1997.
(c) Applicability of Other Provisions.--Section 11 of the National School Lunch Act (42 U.S.C. 1759a) is amended--
(1) by striking subsection (d);
(2) in subsection (e)(2)--
(A) by striking ``The'' and inserting ``On request of the Secretary, the''; and
(B) by striking ``each month''; and
(3) by redesignating subsections (e) and (f), as so amended, as subsections (d) and (e), respectively.
SEC. 705. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
(a) Accounts and Records.--The second sentence of section 12(a) of the National School Lunch Act (42 U.S.C. 1760(a)) is amended by striking ``at all times be available'' and inserting ``be available at any reasonable time''.
(b) Restriction on Requirements.--Section 12(c) of the National School Lunch Act (42 U.S.C. 1760(c)) is amended by striking ``neither the Secretary nor the State shall'' and inserting ``the Secretary shall not''.
(c) Definitions.--Section 12(d) of the National School Lunch Act (42 U.S.C. 1760(d)), as amended by section 701(b), is amended--
(1) in paragraph (1), by striking ``the Trust Territory of the Pacific Islands'' and inserting ``the Commonwealth of the Northern Mariana Islands'';
(2) by striking paragraphs (3) and (4); and
(3) by redesignating paragraphs (1), (2), and (5) through
(9) as paragraphs (6), (7), (3), (4), (2), (5), and (1), respectively, and rearranging the paragraphs so as to appear in numerical order.
(d) Adjustments to National Average Payment Rates.--Section 12(f) of the National School Lunch Act (42 U.S.C. 1760(f)) is amended by striking ``the Trust Territory of the Pacific Islands,''.
(e) Expedited Rulemaking.--Section 12(k) of the National School Lunch Act (42 U.S.C. 1760(k)) is amended--
(1) by striking paragraphs (1), (2), and (5);
(2) by redesignating paragraphs (3) and (4) as paragraphs
(1) and (2), respectively; and
(3) in paragraph (1), as redesignated by paragraph (2), by striking ``Guidelines'' and inserting ``guidelines contained in the most recent `Dietary Guidelines for Americans' that is published under section 301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341)''.
(f) Waiver.--Section 12(l) of the National School Lunch Act
(42 U.S.C. 1760(l)) is amended--
(1) in paragraph (2)(A)--
(A) in clause (iii), by adding ``and'' at the end;
(B) in clause (iv), by striking the semicolon at the end and inserting a period; and
(C) by striking clauses (v) through (vii);
(2) in paragraph (3)--
(A) in subparagraph (A), by striking ``(A)''; and
(B) by striking subparagraphs (B) through (D);
(3) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by striking
``of any requirement relating'' and inserting ``that increases Federal costs or that relates'';
(B) by striking subparagraph (D);
(C) by redesignating subparagraphs (E) through (N) as subparagraphs (D) through (M), respectively; and
(D) in subparagraph (L), as redesignated by subparagraph
(C), by striking ``and'' at the end and inserting ``or''; and
(4) in paragraph (6)--
(A) by striking ``(A)(i)'' and all that follows through
``(B)''; and
(B) by redesignating clauses (i) through (iv) as subparagraphs (A) through (D), respectively.
SEC. 706. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) Establishment of Program.--Section 13(a) of the National School Lunch Act (42 U.S.C. 1761(a)) is amended--
(1) in paragraph (1)--
(A) in the first sentence, by striking ``initiate, maintain, and expand'' and inserting ``initiate and maintain''; and
(B) in subparagraph (E) of the second sentence, by striking
``the Trust Territory of the Pacific Islands,''; and
(2) in paragraph (7)(A), by striking ``Except as provided in subparagraph (C), private'' and inserting ``Private''.
(b) Service Institutions.--Section 13(b) of the National School Lunch Act (42 U.S.C. 1761(b)) is amended by striking
``(b)(1)'' and all that follows through the end of paragraph
(1) and inserting the following:
``(b) Service Institutions.--
``(1) Payments.--
``(A) In general.--Except as otherwise provided in this paragraph, payments to service institutions shall equal the full cost of food service operations (which cost shall include the costs of obtaining, preparing, and serving food, but shall not include administrative costs).
``(B) Maximum amounts.--Subject to subparagraph (C), payments to any institution under subparagraph (A) shall not exceed--
``(i) $1.97 for each lunch and supper served;
``(ii) $1.13 for each breakfast served; and
``(iii) 46 cents for each meal supplement served.
``(C) Adjustments.--Amounts specified in subparagraph (B) shall be adjusted on January 1, 1997, and each January 1 thereafter, to the nearest lower cent increment to reflect changes for the 12-month period ending the preceding November 30 in the series for food away from home of the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. Each adjustment shall be based on the unrounded adjustment for the prior 12-month period.''.
(c) Administration of Service Institutions.--Section 13(b)(2) of the National School Lunch Act (42 U.S.C. 1761(b)(2)) is amended--
(1) in the first sentence, by striking ``four meals'' and inserting ``3 meals, or 2 meals and 1 supplement,''; and
(2) by striking the second sentence.
(d) Reimbursements.--Section 13(c)(2) of the National School Lunch Act (42 U.S.C. 1761(c)(2)) is amended--
(1) by striking subparagraphs (A), (C), (D), and (E);
(2) by striking ``(B)'';
(3) by striking ``, and such higher education institutions,''; and
(4) by striking ``without application'' and inserting ``on showing residence in areas in which poor economic conditions exist or on the basis of income eligibility statements for children enrolled in the program''.
(e) Advance Program Payments.--Section 13(e)(1) of the National School Lunch Act (42 U.S.C. 1761(e)(1)) is amended--
(1) by striking ``institution: Provided, That (A) the'' and inserting ``institution. The'';
(2) by inserting ``(excluding a school)'' after ``any service institution''; and
(3) by striking ``responsibilities, and (B) no'' and inserting ``responsibilities. No''.
(f) Food Requirements.--Section 13(f) of the National School Lunch Act (42 U.S.C. 1761(f)) is amended--
(1) by redesignating the first through seventh sentences as paragraphs (1) through (7), respectively;
(2) by striking paragraph (3), as redesignated by paragraph
(1);
(3) in paragraph (4), as redesignated by paragraph (1), by striking ``the first sentence'' and inserting ``paragraph
(1)'';
(4) in subparagraph (B) of paragraph (6), as redesignated by paragraph (1), by striking ``that bacteria levels'' and all that follows through the period at the end and inserting
``conformance with standards set by local health authorities.''; and
(5) by redesignating paragraphs (4) through (7), as redesignated by paragraph (1), as paragraphs (3) through (6), respectively.
(g) Permitting Offer Versus Serve.--Section 13(f) of the National School Lunch Act (42 U.S.C. 1761(f)), as amended by subsection (f), is amended by adding at the end the following:
``(7) Offer versus serve.--A school food authority participating as a service institution may permit a child attending a site on school premises operated directly by the authority to refuse 1 or more items of a meal that the child does not intend to consume, under rules that the school uses for school meals programs. A refusal of an offered food item shall not affect the amount of payments made under this section to a school for the meal.''.
(h) Records.--The second sentence of section 13(m) of the National School Lunch Act (42 U.S.C. 1761(m)) is amended by striking ``at all times be available'' and inserting ``be available at any reasonable time''.
(i) Removing Mandatory Notice to Institutions.--Section 13(n)(2) of the National School Lunch Act (42 U.S.C. 1761(n)(2)) is amended by striking ``, and its plans and schedule for informing service institutions of the availability of the program''.
(j) Plan.--Section 13(n) of the National School Lunch Act
(42 U.S.C. 1761(n)), as amended by subsection (i), is amended--
(1) in paragraph (2), by striking ``, including the State's methods of assessing need'';
(2) by striking paragraph (3);
(3) in paragraph (4), by striking ``and schedule''; and
(4) by redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively.
(k) Monitoring and Training.--Section 13(q) of the National School Lunch Act (42 U.S.C. 1761(q)) is amended--
(1) by striking paragraphs (2) and (4);
(2) in paragraph (3), by striking ``paragraphs (1) and (2) of this subsection'' and inserting ``paragraph (1)''; and
(3) by redesignating paragraph (3) as paragraph (2).
(l) Expired Program.--Section 13 of the National School Lunch Act (42 U.S.C. 1761) is amended--
(1) by striking subsection (p); and
(2) by redesignating subsections (q) and (r) as subsections
(p) and (q), respectively.
(m) Effective Date.--The amendments made by subsection (b) shall become effective on January 1, 1997.
SEC. 707. COMMODITY DISTRIBUTION.
(a) Cereal and Shortening in Commodity Donations.--Section 14(b) of the National School Lunch Act (42 U.S.C. 1762a(b)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively.
(b) State Advisory Council.--Section 14(e) of the National School Lunch Act (42 U.S.C. 1762a(e)) is amended to read as follows:
``(e) Each State agency that receives food assistance payments under this section for any school year shall consult with representatives of schools in the State that participate in the school lunch program with respect to the needs of such schools relating to the manner of selection and distribution of commodity assistance for such program.''.
(c) Cash Compensation for Pilot Project Schools.--Section 14(g) of the National School Lunch Act (42 U.S.C. 1762a(g)) is amended by striking paragraph (3).
SEC. 708. CHILD AND ADULT CARE FOOD PROGRAM.
(a) Establishment of Program.--Section 17 of the National School Lunch Act (42 U.S.C. 1766) is amended in the first sentence of subsection (a), by striking ``initiate, maintain, and expand'' and inserting ``initiate and maintain''.
(b) Payments to Sponsor Employees.--Paragraph (2) of the last sentence of section 17(a) of the National School Lunch Act (42 U.S.C. 1766(a)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking the period at the end and inserting ``; and''; and
(3) by adding at the end the following:
``(D) in the case of a family or group day care home sponsoring organization that employs more than 1 employee, the organization does not base payments to an employee of the organization on the number of family or group day care homes recruited.''.
(c) Technical Assistance.--The last sentence of section 17(d)(1) of the National School Lunch Act (42 U.S.C. 1766(d)(1)) is amended by striking ``, and shall provide technical assistance'' and all that follows through ``its application''.
(d) Reimbursement of Child Care Institutions.--Section 17(f)(2)(B) of the National School Lunch Act (42 U.S.C. 1766(f)(2)(B)) is amended by striking ``two meals and two supplements or three meals and one supplement'' and inserting ``2 meals and 1 supplement''.
(e) Improved Targeting of Day Care Home Reimbursements.--
(1) Restructured day care home reimbursements.--Section 17(f)(3) of the National School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by striking ``(3)(A) Institutions'' and all that follows through the end of subparagraph (A) and inserting the following:
``(3) Reimbursement of family or group day care home sponsoring organizations.--
``(A) Reimbursement factor.--
``(i) In general.--An institution that participates in the program under this section as a family or group day care home sponsoring organization shall be provided, for payment to a home sponsored by the organization, reimbursement factors in accordance with this subparagraph for the cost of obtaining and preparing food and prescribed labor costs involved in providing meals under this section.
``(ii) Tier i family or group day care homes.--
``(I) Definition of tier i family or group day care home.--In this paragraph, the term `tier I family or group day care home' means--
``(aa) a family or group day care home that is located in a geographic area, as defined by the Secretary based on census data, in which at least 50 percent of the children residing in the area are members of households whose incomes meet the income eligibility guidelines for free or reduced price meals under section 9;
``(bb) a family or group day care home that is located in an area served by a school enrolling elementary students in which at least 50 percent of the total number of children enrolled are certified eligible to receive free or reduced price school meals under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); or
``(cc) a family or group day care home that is operated by a provider whose household meets the income eligibility guidelines for free or reduced price meals under section 9 and whose income is verified by the sponsoring or organization of the home under regulations established by the Secretary.
``(II) Reimbursement.--Except as provided in subclause
(III), a tier I family or group day care home shall be provided reimbursement factors under this clause without a requirement for documentation of the costs described in clause (i), except that reimbursement shall not be provided under this subclause for meals or supplements served to the children of a person acting as a family or group day care home provider unless the children meet the income eligibility guidelines for free or reduced price meals under section 9.
``(III) Factors.--Except as provided in subclause (IV), the reimbursement factors applied to a home referred to in subclause (II) shall be the factors in effect on July 1, 1996.
``(IV) Adjustments.--The reimbursement factors under this subparagraph shall be adjusted on July 1, 1997, and each July 1 thereafter, to reflect changes in the Consumer Price Index for food at home for the most recent 12-month period for which the data are available. The reimbursement factors under this subparagraph shall be rounded to the nearest lower cent increment and based on the unrounded adjustment in effect on June 30 of the preceding school year.
``(iii) Tier ii family or group day care homes.--
``(I) In general.--
``(aa) Factors.--Except as provided in subclause (II), with respect to meals or supplements served under this clause by a family or group day care home that does not meet the criteria set forth in clause (ii)(I), the reimbursement factors shall be 95 cents for lunches and suppers, 27 cents for breakfasts, and 13 cents for supplements.
``(bb) Adjustments.--The factors shall be adjusted on July 1, 1997, and each July 1 thereafter, to reflect changes in the Consumer Price Index for food at home for the most recent 12-month period for which the data are available. The reimbursement factors under this item shall be rounded down to the nearest lower cent increment and based on the unrounded adjustment for the preceding 12-month period.
``(cc) Reimbursement.--A family or group day care home shall be provided reimbursement factors under this subclause without a requirement for documentation of the costs described in clause (i), except that reimbursement shall not be provided under this subclause for meals or supplements served to the children of a person acting as a family or group day care home provider unless the children meet the income eligibility guidelines for free or reduced price meals under section 9.
``(II) Other factors.--A family or group day care home that does not meet the criteria set forth in clause (ii)(I) may elect to be provided reimbursement factors determined in accordance with the following requirements:
``(aa) Children eligible for free or reduced price meals.--In the case of meals or supplements served under this subsection to children who are members of households whose incomes meet the income eligibility guidelines for free or reduced price meals under section 9, the family or group day care home shall be provided reimbursement factors set by the Secretary in accordance with clause (ii)(III).
``(bb) Ineligible children.--In the case of meals or supplements served under this subsection to children who are members of households whose incomes do not meet the income eligibility guidelines, the family or group day care home shall be provided reimbursement factors in accordance with subclause (I).
``(III) Information and determinations.--
``(aa) In general.--If a family or group day care home elects to claim the factors described in subclause (II), the family or group day care home sponsoring organization serving the home shall collect the necessary income information, as determined by the Secretary, from any parent or other caretaker to make the determinations specified in subclause
(II) and shall make the determinations in accordance with rules prescribed by the Secretary.
``(bb) Categorical eligibility.--In making a determination under item (aa), a family or group day care home sponsoring organization may consider a child participating in or subsidized under, or a child with a parent participating in or subsidized under, a federally or State supported child care or other benefit program with an income eligibility limit that does not exceed the eligibility standard for free or reduced price meals under section 9 to be a child who is a member of a household whose income meets the income eligibility guidelines under section 9.
``(cc) Factors for children only.--A family or group day care home may elect to receive the reimbursement factors prescribed under clause (ii)(III) solely for the children participating in a program referred to in item (bb) if the home elects not to have income statements collected from parents or other caretakers.
``(IV) Simplified meal counting and reporting procedures.--The Secretary shall prescribe simplified meal counting and reporting procedures for use by a family or group day care home that elects to claim the factors under subclause (II) and by a family or group day care home sponsoring organization that sponsors the home. The procedures the Secretary prescribes may include 1 or more of the following:
``(aa) Setting an annual percentage for each home of the number of meals served that are to be reimbursed in accordance with the reimbursement factors prescribed under clause (ii)(III) and an annual percentage of the number of meals served that are to be reimbursed in accordance with the reimbursement factors prescribed under subclause (I), based on the family income of children enrolled in the home in a specified month or other period.
``(bb) Placing a home into 1 of 2 or more reimbursement categories annually based on the percentage of children in the home whose households have incomes that meet the income eligibility guidelines under section 9, with each such reimbursement category carrying a set of reimbursement factors such as the factors prescribed under clause (ii)(III) or subclause (I) or factors established within the range of factors prescribed under clause (ii)(III) and subclause (I).
``(cc) Such other simplified procedures as the Secretary may prescribe.
``(V) Minimum verification requirements.--The Secretary may establish any minimum verification requirements that are necessary to carry out this clause.''.
(2) Grants to states to provide assistance to family or group day care homes.--Section 17(f)(3) of the National School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by adding at the end the following:
``(D) Grants to states to provide assistance to family or group day care homes.--
``(i) In general.--
``(I) Reservation.--From amounts made available to carry out this section, the Secretary shall reserve $5,000,000 of the amount made available for fiscal year 1997.
``(II) Purpose.--The Secretary shall use the funds made available under subclause (I) to provide grants to States for the purpose of providing--
``(aa) assistance, including grants, to family and day care home sponsoring organizations and other appropriate organizations, in securing and providing training, materials, automated data processing assistance, and other assistance for the staff of the sponsoring organizations; and
``(bb) training and other assistance to family and group day care homes in the implementation of the amendment to subparagraph (A) made by section 708(e)(1) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
``(ii) Allocation.--The Secretary shall allocate from the funds reserved under clause (i)(I)--
``(I) $30,000 in base funding to each State; and
``(II) any remaining amount among the States, based on the number of family day care homes participating in the program in a State during fiscal year 1995 as a percentage of the number of all family day care homes participating in the program during fiscal year 1995.
``(iii) Retention of funds.--Of the amount of funds made available to a State for fiscal year 1997 under clause (i), the State may retain not to exceed 30 percent of the amount to carry out this subparagraph.
``(iv) Additional payments.--Any payments received under this subparagraph shall be in addition to payments that a State receives under subparagraph (A).''.
(3) Provision of data.--Section 17(f)(3) of the National School Lunch Act (42 U.S.C. 1766(f)(3)), as amended by paragraph (2), is amended by adding at the end the following:
``(E) Provision of data to family or group day care home sponsoring organizations.--
``(i) Census data.--The Secretary shall provide to each State agency administering a child and adult care food program under this section data from the most recent decennial census survey or other appropriate census survey for which the data are available showing which areas in the State meet the requirements of subparagraph (A)(ii)(I)(aa). The State agency shall provide the data to family or group day care home sponsoring organizations located in the State.
``(ii) School data.--
``(I) In general.--A State agency administering the school lunch program under this Act or the school breakfast program under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall provide to approved family or group day care home sponsoring organizations a list of schools serving elementary school children in the State in which not less than \1/2\ of the children enrolled are certified to receive free or reduced price meals. The State agency shall collect the data necessary to create the list annually and provide the list on a timely basis to any approved family or group day care home sponsoring organization that requests the list.
``(II) Use of data from preceding school year.--In determining for a fiscal year or other annual period whether a home qualifies as a tier I family or group day care home under subparagraph (A)(ii)(I), the State agency administering the program under this section, and a family or group day care home sponsoring organization, shall use the most current available data at the time of the determination.
``(iii) Duration of determination.--For purposes of this section, a determination that a family or group day care home is located in an area that qualifies the home as a tier I family or group day care home (as the term is defined in subparagraph (A)(ii)(I)), shall be in effect for 3 years
(unless the determination is made on the basis of census data, in which case the determination shall remain in effect until more recent census data are available) unless the State agency determines that the area in which the home is located no longer qualifies the home as a tier I family or group day care home.''.
(4) Conforming amendments.--Section 17(c) of the National School Lunch Act (42 U.S.C. 1766(c)) is amended by inserting
``except as provided in subsection (f)(3),'' after ``For purposes of this section,'' each place it appears in paragraphs (1), (2), and (3).
(f) Reimbursement.--Section 17(f) of the National School Lunch Act (42 U.S.C. 1766(f)) is amended--
(1) in paragraph (3)--
(A) in subparagraph (B), by striking the third and fourth sentences; and
(B) in subparagraph (C)(ii), by striking ``conduct outreach'' and all that follows through ``may become'' and inserting ``assist unlicensed family or group day care homes in becoming''; and
(2) in the first sentence of paragraph (4), by striking
``shall'' and inserting ``may''.
(g) Nutritional Requirements.--Section 17(g)(1) of the National School Lunch Act (42 U.S.C. 1766(g)(1)) is amended--
(1) in subparagraph (A), by striking the second sentence; and
(2) in subparagraph (B), by striking the second sentence.
(h) Elimination of State Paperwork and Outreach Burden.--Section 17 of the National School Lunch Act (42 U.S.C. 1766) is amended by striking subsection (k) and inserting the following:
``(k) Training and Technical Assistance.--A State participating in the program established under this section shall provide sufficient training, technical assistance, and monitoring to facilitate effective operation of the program. The Secretary shall assist the State in developing plans to fulfill the requirements of this subsection.''.
(i) Records.--The second sentence of section 17(m) of the National School Lunch Act (42 U.S.C. 1766(m)) is amended by striking ``at all times'' and inserting ``at any reasonable time''.
(j) Unneeded Provision.--Section 17 of the National School Lunch Act is amended by striking subsection (q).
(k) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall become effective on the date of enactment of this Act.
(2) Improved targeting of day care home reimbursements.--The amendments made by paragraphs (1) and (4) of subsection
(e) shall become effective on July 1, 1997.
(3) Regulations.--
(A) Interim regulations.--Not later than January 1, 1997, the Secretary of Agriculture shall issue interim regulations to implement--
(i) the amendments made by paragraphs (1), (3), and (4) of subsection (e); and
(ii) section 17(f)(3)(C) of the National School Lunch Act
(42 U.S.C. 1766(f)(3)(C)).
(B) Final regulations.--Not later than July 1, 1997, the Secretary of Agriculture shall issue final regulations to implement the provisions of law referred to in subparagraph
(A).
(l) Study of Impact of Amendments on Program Participation and Family Day Care Licensing.--
(1) In general.--The Secretary of Agriculture, in conjunction with the Secretary of Health and Human Services, shall study the impact of the amendments made by this section on--
(A) the number of family day care homes participating in the child and adult care food program established under section 17 of the National School Lunch Act (42 U.S.C. 1766);
(B) the number of day care home sponsoring organizations participating in the program;
(C) the number of day care homes that are licensed, certified, registered, or approved by each State in accordance with regulations issued by the Secretary;
(D) the rate of growth of the numbers referred to in subparagraphs (A) through (C);
(E) the nutritional adequacy and quality of meals served in family day care homes that--
(i) received reimbursement under the program prior to the amendments made by this section but do not receive reimbursement after the amendments made by this section; or
(ii) received full reimbursement under the program prior to the amendments made by this section but do not receive full reimbursement after the amendments made by this section; and
(F) the proportion of low-income children participating in the program prior to the amendments made by this section and the proportion of low-income children participating in the program after the amendments made by this section.
(2) Required data.--Each State agency participating in the child and adult care food program under section 17 of the National School Lunch Act (42 U.S.C. 1766) shall submit to the Secretary of Agriculture data on--
(A) the number of family day care homes participating in the program on June 30, 1997, and June 30, 1998;
(B) the number of family day care homes licensed, certified, registered, or approved for service on June 30, 1997, and June 30, 1998; and
(C) such other data as the Secretary may require to carry out this subsection.
(3) Submission of report.--Not later than 2 years after the date of enactment of this section, the Secretary of Agriculture shall submit the study required under this subsection to the Committee on Economic and Educational Opportunities of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
SEC. 709. PILOT PROJECTS.
(a) Universal Free Pilot.--Section 18(d) of the National School Lunch Act (42 U.S.C. 1769(d)) is amended--
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.
(b) Demonstration Project Outside School Hours.--Section 18(e) of the National School Lunch Act (42 U.S.C. 1769(e)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking ``(A)''; and
(ii) by striking ``shall'' and inserting ``may''; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (5) and inserting the following:
``(5) Authorization of appropriations.--There are authorized to be appropriated to carry out this subsection such sums as are necessary for each of fiscal years 1997 and 1998.''.
SEC. 710. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42 U.S.C. 1769a) is repealed.
SEC. 711. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42 U.S.C. 1769d) is repealed.
SEC. 712. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.
Section 24 of the National School Lunch Act (42 U.S.C. 1769e) is repealed.
Subtitle B--Child Nutrition Act of 1966
SEC. 721. SPECIAL MILK PROGRAM.
Section 3(a)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 1772(a)(3)) is amended by striking ``the Trust Territory of the Pacific Islands'' and inserting ``the Commonwealth of the Northern Mariana Islands''.
SEC. 722. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 4(b)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)) is amended by adding at the end the following:
``(E) Free and reduced price policy statement.--After the initial submission, a school food authority shall not be required to submit a free and reduced price policy statement to a State educational agency under this Act unless there is a substantive change in the free and reduced price policy of the school food authority. A routine change in the policy of a school food authority, such as an annual adjustment of the income eligibility guidelines for free and reduced price meals, shall not be sufficient cause for requiring the school food authority to submit a policy statement.''.
SEC. 723. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
(a) Training and Technical Assistance in Food Preparation.--Section 4(e)(1)(B) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(e)(1)(B)) is amended by striking the second sentence.
(b) Expansion of Program; Startup and Expansion Costs.--
(1) In general.--Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) is amended by striking subsections (f) and (g).
(2) Effective date.--The amendments made by paragraph (1) shall become effective on October 1, 1996.
SEC. 724. STATE ADMINISTRATIVE EXPENSES.
(a) Use of Funds for Commodity Distribution Administration; Studies.--Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) is amended--
(1) by striking subsections (e) and (h); and
(2) by redesignating subsections (f), (g), and (i) as subsections (e), (f), and (g), respectively.
(b) Approval of Changes.--Section 7(e) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(e)), as so redesignated, is amended--
(1) by striking ``each year an annual plan'' and inserting
``the initial fiscal year a plan''; and
(2) by adding at the end the following: ``After submitting the initial plan, a State shall be required to submit to the Secretary for approval only a substantive change in the plan.''.
SEC. 725. REGULATIONS.
Section 10(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1779(b)) is amended--
(1) in paragraph (1), by striking ``(1)''; and
(2) by striking paragraphs (2) through (4).
SEC. 726. PROHIBITIONS.
Section 11(a) of the Child Nutrition Act of 1966 (42 U.S.C. 1780(a)) is amended by striking ``neither the Secretary nor the State shall'' and inserting ``the Secretary shall not''.
SEC. 727. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784) is amended--
(1) in paragraph (1), by striking ``the Trust Territory of the Pacific Islands'' and inserting ``the Commonwealth of the Northern Mariana Islands''; and
(2) in the first sentence of paragraph (3)--
(A) in subparagraph (A), by inserting ``and'' at the end; and
(B) by striking ``, and (C)'' and all that follows through
``Governor of Puerto Rico''.
SEC. 728. ACCOUNTS AND RECORDS.
The second sentence of section 16(a) of the Child Nutrition Act of 1966 (42 U.S.C. 1785(a)) is amended by striking ``at all times be available'' and inserting ``be available at any reasonable time''.
SEC. 729. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN,
INFANTS, AND CHILDREN.
(a) Definitions.--Section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)) is amended--
(1) in paragraph (15)(B)(iii), by inserting ``of not more than 365 days'' after ``accommodation''; and
(2) in paragraph (16)--
(A) in subparagraph (A), by adding ``and'' at the end; and
(B) in subparagraph (B), by striking ``; and'' and inserting a period; and
(C) by striking subparagraph (C).
(b) Secretary's Promotion of WIC.--Section 17(c) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(c)) is amended by striking paragraph (5).
(c) Eligible Participants.--Section 17(d) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)) is amended by striking paragraph (4).
(d) Nutrition Education.--Section 17(e) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(e)) is amended--
(1) in paragraph (2), by striking the third sentence;
(2) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by striking
``shall'';
(B) by striking subparagraph (A);
(C) by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively;
(D) in subparagraph (A), as so redesignated--
(i) by inserting ``shall'' before ``provide''; and
(ii) by striking ``and'' at the end;
(E) in subparagraph (B), as so redesignated--
(i) by inserting ``shall'' before ``provide''; and
(ii) by striking the period at the end and inserting ``; and''; and
(F) by adding at the end the following:
``(C) may provide a local agency with materials describing other programs for which a participant in the program may be eligible.'';
(3) in paragraph (5), by striking ``The State agency shall ensure that each'' and inserting ``Each''; and
(4) by striking paragraph (6).
(e) State Plan.--Section 17(f) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking ``annually to the Secretary, by a date specified by the Secretary, a'' and inserting ``to the Secretary, by a date specified by the Secretary, an initial''; and
(ii) by adding at the end the following: ``After submitting the initial plan, a State shall be required to submit to the Secretary for approval only a substantive change in the plan.'';
(B) in subparagraph (C)--
(i) by striking clause (iii) and inserting the following:
``(iii) a plan to coordinate operations under the program with other services or programs that may benefit participants in, and applicants for, the program;'';
(ii) in clause (vi), by inserting after ``in the State'' the following: ``(including a plan to improve access to the program for participants and prospective applicants who are employed, or who reside in rural areas)'';
(iii) in clause (vii), by striking ``to provide program benefits'' and all that follows through ``emphasis on'' and inserting ``for'';
(iv) by striking clauses (ix), (x), and (xii);
(v) in clause (xiii), by striking ``may require'' and inserting ``may reasonably require'';
(vi) by redesignating clauses (xi) and (xiii), as so amended, as clauses (ix) and (x), respectively; and
(vii) in clause (ix), as so redesignated, by adding ``and'' at the end;
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as subparagraph (D);
(2) by striking paragraphs (6) and (22);
(3) in the second sentence of paragraph (5), by striking
``at all times be available'' and inserting ``be available at any reasonable time'';
(4) in paragraph (9)(B), by striking the second sentence;
(5) in the first sentence of paragraph (11), by striking
``, including standards that will ensure sufficient State agency staff'';
(6) in paragraph (12), by striking the third sentence;
(7) in paragraph (14), by striking ``shall'' and inserting
``may'';
(8) in paragraph (17), by striking ``and to accommodate'' and all that follows through ``facilities'';
(9) in paragraph (19), by striking ``shall'' and inserting
``may''; and
(10) by redesignating paragraphs (7) through (21) as paragraphs (6) through (20), and paragraphs (23) and (24) as paragraphs (21) and (22), respectively.
(f) Information.--Section 17(g) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(g)) is amended--
(1) in paragraph (5), by striking ``the report required under subsection (d)(4)'' and inserting ``reports on program participant characteristics''; and
(2) by striking paragraph (6).
(g) Procurement of Infant Formula.--
(1) In general.--Section 17(h) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended--
(A) in paragraph (4)(E), by striking ``and, on'' and all that follows through ``(d)(4)''; and
(B) in paragraph (8)--
(i) by striking subparagraphs (A), (C), and (M);
(ii) in subparagraph (G)--
(I) in clause (i), by striking ``(i)''; and
(II) by striking clauses (ii) through (ix);
(iii) in subparagraph (I), by striking ``Secretary--'' and all that follows through ``(v) may'' and inserting
``Secretary may'';
(iv) by redesignating subparagraphs (B) and (D) through (L) as subparagraphs (A) and (B) through (J), respectively;
(v) in subparagraph (A)(i), as so redesignated, by striking
``subparagraphs (C), (D), and (E)(iii), in carrying out subparagraph (A),'' and inserting ``subparagraphs (B) and
(C)(iii),'';
(vi) in subparagraph (B)(i), as so redesignated, by striking ``subparagraph (B)'' each place it appears and inserting ``subparagraph (A)''; and
(vii) in subparagraph (C)(iii), as so redesignated, by striking ``subparagraph (B)'' and inserting ``subparagraph
(A)''.
(2) Application.--The amendments made by paragraph (1) shall not apply to a contract for the procurement of infant formula under section 17(h)(8) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)) that is in effect on the date of enactment of this subsection.
(h) National Advisory Council on Maternal, Infant, and Fetal Nutrition.--Section 17(k)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(k)(3)) is amended by striking
``Secretary shall designate'' and inserting ``Council shall elect''.
(i) Completed Study; Community College Demonstration; Grants for Information and Data System.--Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) is amended by striking subsections (n), (o), and (p).
(j) Disqualification of Vendors Who Are Disqualified Under the Food Stamp Program.--Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786), as amended by subsection (i), is amended by adding at the end the following:
``(n) Disqualification of Vendors Who Are Disqualified Under the Food Stamp Program.--
``(1) In general.--The Secretary shall issue regulations providing criteria for the disqualification under this section of an approved vendor that is disqualified from accepting benefits under the food stamp program established under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
``(2) Terms.--A disqualification under paragraph (1)--
``(A) shall be for the same period as the disqualification from the program referred to in paragraph (1);
``(B) may begin at a later date than the disqualification from the program referred to in paragraph (1); and
``(C) shall not be subject to judicial or administrative review.''.
SEC. 730. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42 U.S.C. 1787) is repealed.
SEC. 731. NUTRITION EDUCATION AND TRAINING.
(a) Findings.--Section 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1788) is amended--
(1) in subsection (a), by striking ``that--'' and all that follows through the period at the end and inserting ``that effective dissemination of scientifically valid information to children participating or eligible to participate in the school lunch and related child nutrition programs should be encouraged.''; and
(2) in subsection (b), by striking ``encourage'' and all that follows through ``establishing'' and inserting
``establish''.
(b) Use of Funds.--Section 19(f) of the Child Nutrition Act of 1966 (42 U.S.C. 1788(f)) is amended--
(1) in paragraph (1)--
(A) by striking subparagraph (B); and
(B) in subparagraph (A)--
(i) by striking ``(A)'';
(ii) by striking clauses (ix) through (xix);
(iii) by redesignating clauses (i) through (viii) and (xx) as subparagraphs (A) through (H) and (I), respectively;
(iv) in subparagraph (I), as so redesignated, by striking the period at the end and inserting ``; and''; and
(v) by adding at the end the following:
``(J) other appropriate related activities, as determined by the State.'';
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as paragraph (2).
(c) Accounts, Records, and Reports.--The second sentence of section 19(g)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 1788(g)(1)) is amended by striking ``at all times be available'' and inserting ``be available at any reasonable time''.
(d) State Coordinators for Nutrition; State Plan.--Section 19(h) of the Child Nutrition Act of 1966 (42 U.S.C. 1788(h)) is amended--
(1) in the second sentence of paragraph (1)--
(A) by striking ``as provided in paragraph (2) of this subsection''; and
(B) by striking ``as provided in paragraph (3) of this subsection'';
(2) in paragraph (2), by striking the second and third sentences; and
(3) by striking paragraph (3).
(e) Authorization of Appropriations.--Section 19(i) of the Child Nutrition Act of 1966 (42 U.S.C. 1788(i)) is amended--
(1) in the first sentence of paragraph (2)(A), by striking
``and each succeeding fiscal year'';
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
``(3) Fiscal years 1997 through 2002.--
``(A) In general.--There are authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 1997 through 2002.
``(B) Grants.--
``(i) In general.--Grants to each State from the amounts made available under subparagraph (A) shall be based on a rate of 50 cents for each child enrolled in schools or institutions within the State, except that no State shall receive an amount less than $75,000 per fiscal year.
``(ii) Insufficient funds.--If the amount made available for any fiscal year is insufficient to pay the amount to which each State is entitled under clause (i), the amount of each grant shall be ratably reduced.''.
(f) Assessment.--Section 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1788) is amended by striking subsection (j).
(g) Effective Date.--The amendments made by subsection (e) shall become effective on October 1, 1996.
Subtitle C--Miscellaneous Provisions
SEC. 741. COORDINATION OF SCHOOL LUNCH, SCHOOL BREAKFAST, AND
SUMMER FOOD SERVICE PROGRAMS.
(a) Coordination.--
(1) In general.--The Secretary of Agriculture shall develop proposed changes to the regulations under the school lunch program under the National School Lunch Act (42 U.S.C. 1751 et seq.), the summer food service program under section 13 of that Act (42 U.S.C. 1761), and the school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773), for the purpose of simplifying and coordinating those programs into a comprehensive meal program.
(2) Consultation.--In developing proposed changes to the regulations under paragraph (1), the Secretary of Agriculture shall consult with local, State, and regional administrators of the programs described in such paragraph.
(b) Report.--Not later than November 1, 1997, the Secretary of Agriculture shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Economic and Educational Opportunities of the House of Representatives a report containing the proposed changes developed under subsection (a).
SEC. 742. REQUIREMENTS RELATING TO PROVISION OF BENEFITS
BASED ON CITIZENSHIP, ALIENAGE, OR IMMIGRATION
STATUS UNDER THE NATIONAL SCHOOL LUNCH ACT, THE
CHILD NUTRITION ACT OF 1966, AND CERTAIN OTHER
ACTS.
(a) School Lunch and Breakfast Programs.--Notwithstanding any other provision of this Act, an individual who is eligible to receive free public education benefits under State or local law shall not be ineligible to receive benefits provided under the school lunch program under the National School Lunch Act (42 U.S.C. 1751 et seq.) or the school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) on the basis of citizenship, alienage, or immigration status.
(b) Other Programs.--
(1) In general.--Nothing in this Act shall prohibit or require a State to provide to an individual who is not a citizen or a qualified alien, as defined in section 431(b), benefits under programs established under the provisions of law described in paragraph (2).
(2) Provisions of law described.--The provisions of law described in this paragraph are the following:
(A) Programs (other than the school lunch program and the school breakfast program) under the National School Lunch Act
(42 U.S.C. 1751 et seq.) and the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.).
(B) Section 4 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note).
(C) The Emergency Food Assistance Act of 1983 (7 U.S.C 612c note).
(D) The food distribution program on Indian reservations established under section 4(b) of the Food Stamp Act of 1977
(7 U.S.C 2013(b)).
TITLE VIII--FOOD STAMPS AND COMMODITY DISTRIBUTION
Subtitle A--Food Stamp Program
SEC. 801. DEFINITION OF CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is amended by striking ``Except as provided'' and all that follows and inserting the following: ``The certification period shall not exceed 12 months, except that the certification period may be up to 24 months if all adult household members are elderly or disabled. A State agency shall have at least 1 contact with each certified household every 12 months.''.
SEC. 802. DEFINITION OF COUPON.
Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C. 2012(d)) is amended by striking ``or type of certificate'' and inserting ``type of certificate, authorization card, cash or check issued in lieu of a coupon, or access device, including an electronic benefit transfer card or personal identification number,''.
SEC. 803. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 2012(i)) is amended by striking ``(who are not themselves parents living with their children or married and living with their spouses)''.
SEC. 804. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended--
(1) by striking ``shall (1) make'' and inserting the following: ``shall--
``(1) make'';
(2) by striking ``scale, (2) make'' and inserting the following: ``scale;
``(2) make'';
(3) by striking ``Alaska, (3) make'' and inserting the following: ``Alaska;
``(3) make''; and
(4) by striking ``Columbia, (4) through'' and all that follows through the end of the subsection and inserting the following: ``Columbia; and
``(4) on October 1, 1996, and each October 1 thereafter, adjust the cost of the diet to reflect the cost of the diet in the preceding June, and round the result to the nearest lower dollar increment for each household size, except that on October 1, 1996, the Secretary may not reduce the cost of the diet in effect on September 30, 1996.''.
SEC. 805. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C. 2012(s)(2)(C)) is amended by inserting ``for not more than 90 days'' after ``temporary accommodation''.
SEC. 806. STATE OPTION FOR ELIGIBILITY STANDARDS.
Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is amended by striking ``(b) The Secretary'' and inserting the following:
``(b) Eligibility Standards.--Except as otherwise provided in this Act, the Secretary''.
SEC. 807. EARNINGS OF STUDENTS.
Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)(7)) is amended by striking ``21'' and inserting
``17''.
SEC. 808. ENERGY ASSISTANCE.
(a) In General.--Section 5(d) of the Food Stamp Act of 1977
(7 U.S.C. 2014(d)) is amended by striking paragraph (11) and inserting the following: ``(11)(A) any payments or allowances made for the purpose of providing energy assistance under any Federal law (other than part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)), or (B) a 1-time payment or allowance made under a Federal or State law for the costs of weatherization or emergency repair or replacement of an unsafe or inoperative furnace or other heating or cooling device,''.
(b) Conforming Amendments.--Section 5(k) of the Food Stamp Act of 1977 (7 U.S.C. 2014(k)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``plan for aid to families with dependent children approved'' and inserting
``program funded''; and
(B) in subparagraph (B), by striking ``, not including energy or utility-cost assistance,'';
(2) in paragraph (2), by striking subparagraph (C) and inserting the following:
``(C) a payment or allowance described in subsection
(d)(11);''; and
(3) by adding at the end the following:
``(4) Third party energy assistance payments.--
``(A) Energy assistance payments.--For purposes of subsection (d)(1), a payment made under a State law (other than a law referred to in paragraph (2)(H)) to provide energy assistance to a household shall be considered money payable directly to the household.
``(B) Energy assistance expenses.--For purposes of subsection (e)(7), an expense paid on behalf of a household under a State law to provide energy assistance shall be considered an out-of-pocket expense incurred and paid by the household.''.
SEC. 809. DEDUCTIONS FROM INCOME.
(a) In General.--Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is amended by striking subsection (e) and inserting the following:
``(e) Deductions From Income.--
``(1) Standard deduction.--The Secretary shall allow a standard deduction for each household in the 48 contiguous States and the District of Columbia, Alaska, Hawaii, Guam, and the Virgin Islands of the United States of $134, $229,
$189, $269, and $118, respectively.
``(2) Earned income deduction.--
``(A) Definition of earned income.--In this paragraph, the term `earned income' does not include--
``(i) income excluded by subsection (d); or
``(ii) any portion of income earned under a work supplementation or support program, as defined under section 16(b), that is attributable to public assistance.
``(B) Deduction.--Except as provided in subparagraph (C), a household with earned income shall be allowed a deduction of 20 percent of all earned income to compensate for taxes, other mandatory deductions from salary, and work expenses.
``(C) Exception.--The deduction described in subparagraph
(B) shall not be allowed with respect to determining an overissuance due to the failure of a household to report earned income in a timely manner.
``(3) Dependent care deduction.--
``(A) In general.--A household shall be entitled, with respect to expenses (other than excluded expenses described in subparagraph (B)) for dependent care, to a dependent care deduction, the maximum allowable level of which shall be $200 per month for each dependent child under 2 years of age and
$175 per month for each other dependent, for the actual cost of payments necessary for the care of a dependent if the care enables a household member to accept or continue employment, or training or education that is preparatory for employment.
``(B) Excluded expenses.--The excluded expenses referred to in subparagraph (A) are--
``(i) expenses paid on behalf of the household by a third party;
``(ii) amounts made available and excluded, for the expenses referred to in subparagraph (A), under subsection
(d)(3); and
``(iii) expenses that are paid under section 6(d)(4).
``(4) Deduction for child support payments.--
``(A) In general.--A household shall be entitled to a deduction for child support payments made by a household member to or for an individual who is not a member of the household if the household member is legally obligated to make the payments.
``(B) Methods for determining amount.--The Secretary may prescribe by regulation the methods, including calculation on a retrospective basis, that a State agency shall use to determine the amount of the deduction for child support payments.
``(5) Homeless shelter allowance.--Under rules prescribed by the Secretary, a State agency may develop a standard homeless shelter allowance, which shall not exceed $143 per month, for such expenses as may reasonably be expected to be incurred by households in which all members are homeless individuals but are not receiving free shelter throughout the month. A State agency that develops the allowance may use the allowance in determining eligibility and allotments for the households. The State agency may make a household with extremely low shelter costs ineligible for the allowance.
``(6) Excess medical expense deduction.--
``(A) In general.--A household containing an elderly or disabled member shall be entitled, with respect to expenses other than expenses paid on behalf of the household by a third party, to an excess medical expense deduction for the portion of the actual costs of allowable medical expenses, incurred by the elderly or disabled member, exclusive of special diets, that exceeds $35 per month.
``(B) Method of claiming deduction.--
``(i) In general.--A State agency shall offer an eligible household under subparagraph (A) a method of claiming a deduction for recurring medical expenses that are initially verified under the excess medical expense deduction in lieu of submitting information on, or verification of, actual expenses on a monthly basis.
``(ii) Method.--The method described in clause (i) shall--
``(I) be designed to minimize the burden for the eligible elderly or disabled household member choosing to deduct the recurrent medical expenses of the member pursuant to the method;
``(II) rely on reasonable estimates of the expected medical expenses of the member for the certification period
(including changes that can be reasonably anticipated based on available information about the medical condition of the member, public or private medical insurance coverage, and the current verified medical expenses incurred by the member); and
``(III) not require further reporting or verification of a change in medical expenses if such a change has been anticipated for the certification period.
``(7) Excess shelter expense deduction.--
``(A) In general.--A household shall be entitled, with respect to expenses other than expenses paid on behalf of the household by a third party, to an excess shelter expense deduction to the extent that the monthly amount expended by a household for shelter exceeds an amount equal to 50 percent of monthly household income after all other applicable deductions have been allowed.
``(B) Maximum amount of deduction.--In the case of a household that does not contain an elderly or disabled individual, in the 48 contiguous States and the District of Columbia, Alaska, Hawaii, Guam, and the Virgin Islands of the United States, the excess shelter expense deduction shall not exceed--
``(i) for the period beginning on the date of enactment of this subparagraph and ending on December 31, 1996, $247,
$429, $353, $300, and $182 per month, respectively;
``(ii) for the period beginning on January 1, 1997, and ending on September 30, 1998, $250, $434, $357, $304, and
$184 per month, respectively;
``(iii) for fiscal years 1999 and 2000, $275, $478, $393,
$334, and $203 per month, respectively; and
``(iv) for fiscal year 2001 and each subsequent fiscal year, $300, $521, $429, $364, and $221 per month, respectively.
``(C) Standard utility allowance.--
``(i) In general.--In computing the excess shelter expense deduction, a State agency may use a standard utility allowance in accordance with regulations promulgated by the Secretary, except that a State agency may use an allowance that does not fluctuate within a year to reflect seasonal variations.
``(ii) Restrictions on heating and cooling expenses.--An allowance for a heating or cooling expense may not be used in the case of a household that--
``(I) does not incur a heating or cooling expense, as the case may be;
``(II) does incur a heating or cooling expense but is located in a public housing unit that has central utility meters and charges households, with regard to the expense, only for excess utility costs; or
``(III) shares the expense with, and lives with, another individual not participating in the food stamp program, another household participating in the food stamp program, or both, unless the allowance is prorated between the household and the other individual, household, or both.
``(iii) Mandatory allowance.--
``(I) In general.--A State agency may make the use of a standard utility allowance mandatory for all households with qualifying utility costs if--
``(aa) the State agency has developed 1 or more standards that include the cost of heating and cooling and 1 or more standards that do not include the cost of heating and cooling; and
``(bb) the Secretary finds that the standards will not result in an increased cost to the Secretary.
``(II) Household election.--A State agency that has not made the use of a standard utility allowance mandatory under subclause (I) shall allow a household to switch, at the end of a certification period, between the standard utility allowance and a deduction based on the actual utility costs of the household.
``(iv) Availability of allowance to recipients of energy assistance.--
``(I) In general.--Subject to subclause (II), if a State agency elects to use a standard utility allowance that reflects heating or cooling costs, the standard utility allowance shall be made available to households receiving a payment, or on behalf of which a payment is made, under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) or other similar energy assistance program, if the household still incurs out-of-pocket heating or cooling expenses in excess of any assistance paid on behalf of the household to an energy provider.
``(II) Separate allowance.--A State agency may use a separate standard utility allowance for households on behalf of which a payment described in subclause (I) is made, but may not be required to do so.
``(III) States not electing to use separate allowance.--A State agency that does not elect to use a separate allowance but makes a single standard utility allowance available to households incurring heating or cooling expenses (other than a household described in subclause (I) or (II) of clause
(ii)) may not be required to reduce the allowance due to the provision (directly or indirectly) of assistance under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.).
``(IV) Proration of assistance.--For the purpose of the food stamp program, assistance provided under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) shall be considered to be prorated over the entire heating or cooling season for which the assistance was provided.''.
(b) Conforming Amendment.--Section 11(e)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(3)) is amended by striking ``. Under rules prescribed'' and all that follows through ``verifies higher expenses''. SEC. 810. VEHICLE ALLOWANCE.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by striking paragraph (2) and inserting the following:
``(2) Included assets.--
``(A) In general.--Subject to the other provisions of this paragraph, the Secretary shall, in prescribing inclusions in, and exclusions from, financial resources, follow the regulations in force as of June 1, 1982 (other than those relating to licensed vehicles and inaccessible resources).
``(B) Additional included assets.--The Secretary shall include in financial resources--
``(i) any boat, snowmobile, or airplane used for recreational purposes;
``(ii) any vacation home;
``(iii) any mobile home used primarily for vacation purposes;
``(iv) subject to subparagraph (C), any licensed vehicle that is used for household transportation or to obtain or continue employment to the extent that the fair market value of the vehicle exceeds $4,600 through September 30, 1996, and
$4,650 beginning October 1, 1996; and
``(v) any savings or retirement account (including an individual account), regardless of whether there is a penalty for early withdrawal.
``(C) Excluded vehicles.--A vehicle (and any other property, real or personal, to the extent the property is directly related to the maintenance or use of the vehicle) shall not be included in financial resources under this paragraph if the vehicle is--
``(i) used to produce earned income;
``(ii) necessary for the transportation of a physically disabled household member; or
``(iii) depended on by a household to carry fuel for heating or water for home use and provides the primary source of fuel or water, respectively, for the household.''.
SEC. 811. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED AS
INCOME.
Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2014(k)(2)) is amended--
(1) by striking subparagraph (F); and
(2) by redesignating subparagraphs (G) and (H) as subparagraphs (F) and (G), respectively.
SEC. 812. SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-
EMPLOYED.
Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014), as amended by title I, is amended by adding at the end the following:
``(m) Simplified Calculation of Income for the Self-Employed.--
``(1) In general.--Not later than 1 year after the date of enactment of this subsection, the Secretary shall establish a procedure by which a State may submit a method, designed to not increase Federal costs, for the approval of the Secretary, that the Secretary determines will produce a reasonable estimate of income excluded under subsection
(d)(9) in lieu of calculating the actual cost of producing self-employment income.
``(2) Inclusive of all types of income or limited types of income.--The method submitted by a State under paragraph (1) may allow a State to estimate income for all types of self-employment income or may be limited to 1 or more types of self-employment income.
``(3) Differences for different types of income.--The method submitted by a State under paragraph (1) may differ for different types of self-employment income.''.
SEC. 813. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM
REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2015(b)(1)) is amended--
(1) in clause (i), by striking ``six months'' and inserting
``1 year''; and
(2) in clause (ii), by striking ``1 year'' and inserting
``2 years''.
SEC. 814. DISQUALIFICATION OF CONVICTED INDIVIDUALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7 U.S.C. 2015(b)(1)(iii)) is amended--
(1) in subclause (II), by striking ``or'' at the end;
(2) in subclause (III), by striking the period at the end and inserting ``; or''; and
(3) by inserting after subclause (III) the following:
``(IV) a conviction of an offense under subsection (b) or
(c) of section 15 involving an item covered by subsection (b) or (c) of section 15 having a value of $500 or more.''.
SEC. 815. DISQUALIFICATION.
(a) In General.--Section 6(d) of the Food Stamp Act of 1977
(7 U.S.C. 2015(d)) is amended by striking ``(d)(1) Unless otherwise exempted by the provisions'' and all that follows through the end of paragraph (1) and inserting the following:
``(d) Conditions of Participation.--
``(1) Work requirements.--
``(A) In general.--No physically and mentally fit individual over the age of 15 and under the age of 60 shall be eligible to participate in the food stamp program if the individual--
``(i) refuses, at the time of application and every 12 months thereafter, to register for employment in a manner prescribed by the Secretary;
``(ii) refuses without good cause to participate in an employment and training program established under paragraph
(4), to the extent required by the State agency;
``(iii) refuses without good cause to accept an offer of employment, at a site or plant not subject to a strike or lockout at the time of the refusal, at a wage not less than the higher of--
``(I) the applicable Federal or State minimum wage; or
``(II) 80 percent of the wage that would have governed had the minimum hourly rate under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) been applicable to the offer of employment;
``(iv) refuses without good cause to provide a State agency with sufficient information to allow the State agency to determine the employment status or the job availability of the individual;
``(v) voluntarily and without good cause--
``(I) quits a job; or
``(II) reduces work effort and, after the reduction, the individual is working less than 30 hours per week; or
``(vi) fails to comply with section 20.
``(B) Household ineligibility.--If an individual who is the head of a household becomes ineligible to participate in the food stamp program under subparagraph (A), the household shall, at the option of the State agency, become ineligible to participate in the food stamp program for a period, determined by the State agency, that does not exceed the lesser of--
``(i) the duration of the ineligibility of the individual determined under subparagraph (C); or
``(ii) 180 days.
``(C) Duration of ineligibility.--
``(i) First violation.--The first time that an individual becomes ineligible to participate in the food stamp program under subparagraph (A), the individual shall remain ineligible until the later of--
``(I) the date the individual becomes eligible under subparagraph (A);
``(II) the date that is 1 month after the date the individual became ineligible; or
``(III) a date determined by the State agency that is not later than 3 months after the date the individual became ineligible.
``(ii) Second violation.--The second time that an individual becomes ineligible to participate in the food stamp program under subparagraph (A), the individual shall remain ineligible until the later of--
``(I) the date the individual becomes eligible under subparagraph (A);
``(II) the date that is 3 months after the date the individual became ineligible; or
``(III) a date determined by the State agency that is not later than 6 months after the date the individual became ineligible.
``(iii) Third or subsequent violation.--The third or subsequent time that an individual becomes ineligible to participate in the food stamp program under subparagraph (A), the individual shall remain ineligible until the later of--
``(I) the date the individual becomes eligible under subparagraph (A);
``(II) the date that is 6 months after the date the individual became ineligible;
``(III) a date determined by the State agency; or
``(IV) at the option of the State agency, permanently.
``(D) Administration.--
``(i) Good cause.--The Secretary shall determine the meaning of good cause for the purpose of this paragraph.
``(ii) Voluntary quit.--The Secretary shall determine the meaning of voluntarily quitting and reducing work effort for the purpose of this paragraph.
``(iii) Determination by state agency.--
``(I) In general.--Subject to subclause (II) and clauses
(i) and (ii), a State agency shall determine--
``(aa) the meaning of any term used in subparagraph (A);
``(bb) the procedures for determining whether an individual is in compliance with a requirement under subparagraph (A); and
``(cc) whether an individual is in compliance with a requirement under subparagraph (A).
``(II) Not less restrictive.--A State agency may not use a meaning, procedure, or determination under subclause (I) that is less restrictive on individuals receiving benefits under this Act than a comparable meaning, procedure, or determination under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).
``(iv) Strike against the government.--For the purpose of subparagraph (A)(v), an employee of the Federal Government, a State, or a political subdivision of a State, who is dismissed for participating in a strike against the Federal Government, the State, or the political subdivision of the State shall be considered to have voluntarily quit without good cause.
``(v) Selecting a head of household.--
``(I) In general.--For purposes of this paragraph, the State agency shall allow the household to select any adult parent of a child in the household as the head of the household if all adult household members making application under the food stamp program agree to the selection.
``(II) Time for making designation.--A household may designate the head of the household under subclause (I) each time the household is certified for participation in the food stamp program, but may not change the designation during a certification period unless there is a change in the composition of the household.
``(vi) Change in head of household.--If the head of a household leaves the household during a period in which the household is ineligible to participate in the food stamp program under subparagraph (B)--
``(I) the household shall, if otherwise eligible, become eligible to participate in the food stamp program; and
``(II) if the head of the household becomes the head of another household, the household that becomes headed by the individual shall become ineligible to participate in the food stamp program for the remaining period of ineligibility.''.
(b) Conforming Amendment.--
(1) The second sentence of section 17(b)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is amended by striking ``6(d)(1)(i)'' and inserting ``6(d)(1)(A)(i)''.
(2) Section 20 of the Food Stamp Act of 1977 (7 U.S.C. 2029) is amended by striking subsection (f) and inserting the following:
``(f) Disqualification.--An individual or a household may become ineligible under section 6(d)(1) to participate in the food stamp program for failing to comply with this section.''.
SEC. 816. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)) is amended by adding at the end the following:
``A State that requested a waiver to lower the age specified in subparagraph (B) and had the waiver denied by the Secretary as of August 1, 1996, may, for a period of not more than 3 years, lower the age of a dependent child that qualifies a parent or other member of a household for an exemption under subparagraph (B) to between 1 and 6 years of age.''.
SEC. 817. EMPLOYMENT AND TRAINING.
(a) In General.--Section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended--
(1) by striking ``(4)(A) Not later than April 1, 1987, each'' and inserting the following:
``(4) Employment and training.--
``(A) In general.--
``(i) Implementation.--Each'';
(2) in subparagraph (A)--
(A) by inserting ``work,'' after ``skills, training,''; and
(B) by adding at the end the following:
``(ii) Statewide workforce development system.--Each component of an employment and training program carried out under this paragraph shall be delivered through a statewide workforce development system, unless the component is not available locally through such a system.'';
(3) in subparagraph (B)--
(A) in the matter preceding clause (i), by striking the colon at the end and inserting the following: ``, except that the State agency shall retain the option to apply employment requirements prescribed under this subparagraph to a program applicant at the time of application:'';
(B) in clause (i), by striking ``with terms and conditions'' and all that follows through ``time of application''; and
(C) in clause (iv)--
(i) by striking subclauses (I) and (II); and
(ii) by redesignating subclauses (III) and (IV) as subclauses (I) and (II), respectively;
(4) in subparagraph (D)--
(A) in clause (i), by striking ``to which the application'' and all that follows through ``30 days or less'';
(B) in clause (ii), by striking ``but with respect'' and all that follows through ``child care''; and
(C) in clause (iii), by striking ``, on the basis of'' and all that follows through ``clause (ii)'' and inserting ``the exemption continues to be valid'';
(5) in subparagraph (E), by striking the third sentence;
(6) in subparagraph (G)--
(A) by striking ``(G)(i) The State'' and inserting ``(G) The State''; and
(B) by striking clause (ii);
(7) in subparagraph (H), by striking ``(H)(i) The Secretary'' and all that follows through ``(ii) Federal funds'' and inserting ``(H) Federal funds'';
(8) in subparagraph (I)(i)(II), by striking ``, or was in operation,'' and all that follows through ``Social Security Act'' and inserting the following: ``), except that no such payment or reimbursement shall exceed the applicable local market rate'';
(9)(A) by striking subparagraphs (K) and (L) and inserting the following:
``(K) Limitation on funding.--Notwithstanding any other provision of this paragraph, the amount of funds a State agency uses to carry out this paragraph (including funds used to carry out subparagraph (I)) for participants who are receiving benefits under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) shall not exceed the amount of funds the State agency used in fiscal year 1995 to carry out this paragraph for participants who were receiving benefits in fiscal year 1995 under a State program funded under part A of title IV of the Act (42 U.S.C. 601 et seq.).''; and
(B) by redesignating subparagraphs (M) and (N) as subparagraphs (L) and (M), respectively; and
(10) in subparagraph (L), as so redesignated--
(A) by striking ``(L)(i) The Secretary'' and inserting
``(L) The Secretary''; and
(B) by striking clause (ii).
(b) Funding.--Section 16(h) of the Food Stamp Act of 1977
(7 U.S.C. 2025(h)) is amended by striking ``(h)(1)(A) The Secretary'' and all that follows through the end of paragraph
(1) and inserting the following:
``(h) Funding of Employment and Training Programs.--
``(1) In general.--
``(A) Amounts.--To carry out employment and training programs, the Secretary shall reserve for allocation to State agencies from funds made available for each fiscal year under section 18(a)(1) the amount of--
``(i) for fiscal year 1996, $75,000,000;
``(ii) for fiscal year 1997, $79,000,000;
``(iii) for fiscal year 1998, $81,000,000;
``(iv) for fiscal year 1999, $84,000,000;
``(v) for fiscal year 2000, $86,000,000;
``(vi) for fiscal year 2001, $88,000,000; and
``(vii) for fiscal year 2002, $90,000,000.
``(B) Allocation.--The Secretary shall allocate the amounts reserved under subparagraph (A) among the State agencies using a reasonable formula (as determined by the Secretary) that gives consideration to the population in each State affected by section 6(o).
``(C) Reallocation.--
``(i) Notification.--A State agency shall promptly notify the Secretary if the State agency determines that the State agency will not expend all of the funds allocated to the State agency under subparagraph (B).
``(ii) Reallocation.--On notification under clause (i), the Secretary shall reallocate the funds that the State agency will not expend as the Secretary considers appropriate and equitable.
``(D) Minimum allocation.--Notwithstanding subparagraphs
(A) through (C), the Secretary shall ensure that each State agency operating an employment and training program shall receive not less than $50,000 for each fiscal year.''.
(c) Additional Matching Funds.--Section 16(h)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(2)) is amended by inserting before the period at the end the following: ``, including the costs for case management and casework to facilitate the transition from economic dependency to self-sufficiency through work''.
(d) Reports.--Section 16(h) of the Food Stamp Act of 1977
(7 U.S.C. 2025(h)) is amended--
(1) in paragraph (5)--
(A) by striking ``(5)(A) The Secretary'' and inserting
``(5) The Secretary''; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (6).
SEC. 818. FOOD STAMP ELIGIBILITY.
The third sentence of section 6(f) of the Food Stamp Act of 1977 (7 U.S.C. 2015(f)) is amended by inserting ``, at State option,'' after ``less''.
SEC. 819. COMPARABLE TREATMENT FOR DISQUALIFICATION.
(a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) is amended by adding at the end the following:
``(i) Comparable Treatment for Disqualification.--
``(1) In general.--If a disqualification is imposed on a member of a household for a failure of the member to perform an action required under a Federal, State, or local law relating to a means-tested public assistance program, the State agency may impose the same disqualification on the member of the household under the food stamp program.
``(2) Rules and procedures.--If a disqualification is imposed under paragraph (1) for a failure of an individual to perform an action required under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), the State agency may use the rules and procedures that apply under part A of title IV of the Act to impose the same disqualification under the food stamp program.
``(3) Application after disqualification period.--A member of a household disqualified under paragraph (1) may, after the disqualification period has expired, apply for benefits under this Act and shall be treated as a new applicant, except that a prior disqualification under subsection (d) shall be considered in determining eligibility.''.
(b) State Plan Provisions.--Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended--
(1) in paragraph (24), by striking ``and'' at the end;
(2) in paragraph (25), by striking the period at the end and inserting a semicolon; and
(3) by adding at the end the following:
``(26) the guidelines the State agency uses in carrying out section 6(i); and''.
(c) Conforming Amendment.--Section 6(d)(2)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)(A)) is amended by striking ``that is comparable to a requirement of paragraph
(1)''.
SEC. 820. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP
BENEFITS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 819, is amended by adding at the end the following:
``(j) Disqualification for Receipt of Multiple Food Stamp Benefits.--An individual shall be ineligible to participate in the food stamp program as a member of any household for a 10-year period if the individual is found by a State agency to have made, or is convicted in a Federal or State court of having made, a fraudulent statement or representation with respect to the identity or place of residence of the individual in order to receive multiple benefits simultaneously under the food stamp program.''.
SEC. 821. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 820, is amended by adding at the end the following:
``(k) Disqualification of Fleeing Felons.--No member of a household who is otherwise eligible to participate in the food stamp program shall be eligible to participate in the program as a member of that or any other household during any period during which the individual is--
``(1) fleeing to avoid prosecution, or custody or confinement after conviction, under the law of the place from which the individual is fleeing, for a crime, or attempt to commit a crime, that is a felony under the law of the place from which the individual is fleeing or that, in the case of New Jersey, is a high misdemeanor under the law of New Jersey; or
``(2) violating a condition of probation or parole imposed under a Federal or State law.''.
SEC. 822. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 821, is amended by adding at the end the following:
``(l) Custodial Parent's Cooperation With Child Support Agencies.--
``(1) In general.--At the option of a State agency, subject to paragraphs (2) and (3), no natural or adoptive parent or other individual (collectively referred to in this subsection as `the individual') who is living with and exercising parental control over a child under the age of 18 who has an absent parent shall be eligible to participate in the food stamp program unless the individual cooperates with the State agency administering the program established under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.)--
``(A) in establishing the paternity of the child (if the child is born out of wedlock); and
``(B) in obtaining support for--
``(i) the child; or
``(ii) the individual and the child.
``(2) Good cause for noncooperation.--Paragraph (1) shall not apply to the individual if good cause is found for refusing to cooperate, as determined by the State agency in accordance with standards prescribed by the Secretary in consultation with the Secretary of Health and Human Services. The standards shall take into consideration circumstances under which cooperation may be against the best interests of the child.
``(3) Fees.--Paragraph (1) shall not require the payment of a fee or other cost for services provided under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.).
``(m) Noncustodial Parent's Cooperation With Child Support Agencies.--
``(1) In general.--At the option of a State agency, subject to paragraphs (2) and (3), a putative or identified noncustodial parent of a child under the age of 18 (referred to in this subsection as `the individual') shall not be eligible to participate in the food stamp program if the individual refuses to cooperate with the State agency administering the program established under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.)--
``(A) in establishing the paternity of the child (if the child is born out of wedlock); and
``(B) in providing support for the child.
``(2) Refusal to cooperate.--
``(A) Guidelines.--The Secretary, in consultation with the Secretary of Health and Human Services, shall develop guidelines on what constitutes a refusal to cooperate under paragraph (1).
``(B) Procedures.--The State agency shall develop procedures, using guidelines developed under subparagraph
(A), for determining whether an individual is refusing to cooperate under paragraph (1).
``(3) Fees.--Paragraph (1) shall not require the payment of a fee or other cost for services provided under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.).
``(4) Privacy.--The State agency shall provide safeguards to restrict the use of information collected by a State agency administering the program established under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.) to purposes for which the information is collected.''.
SEC. 823. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 822, is amended by adding at the end the following:
``(n) Disqualification for Child Support Arrears.--
``(1) In general.--At the option of a State agency, no individual shall be eligible to participate in the food stamp program as a member of any household during any month that the individual is delinquent in any payment due under a court order for the support of a child of the individual.
``(2) Exceptions.--Paragraph (1) shall not apply if--
``(A) a court is allowing the individual to delay payment; or
``(B) the individual is complying with a payment plan approved by a court or the State agency designated under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.) to provide support for the child of the individual.''.
SEC. 824. WORK REQUIREMENT.
(a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 823, is amended by adding at the end the following:
``(o) Work Requirement.--
``(1) Definition of work program.--In this subsection, the term `work program' means--
``(A) a program under the Job Training Partnership Act (29 U.S.C. 1501 et seq.);
``(B) a program under section 236 of the Trade Act of 1974
(19 U.S.C. 2296); and
``(C) a program of employment and training operated or supervised by a State or political subdivision of a State that meets standards approved by the Governor of the State, including a program under subsection (d)(4), other than a job search program or a job search training program.
``(2) Work requirement.--Subject to the other provisions of this subsection, no individual shall be eligible to participate in the food stamp program as a member of any household if, during the preceding 36-month period, the individual received food stamp benefits for not less than 3 months (consecutive or otherwise) during which the individual did not--
``(A) work 20 hours or more per week, averaged monthly;
``(B) participate in and comply with the requirements of a work program for 20 hours or more per week, as determined by the State agency;
``(C) participate in and comply with the requirements of a program under section 20 or a comparable program established by a State or political subdivision of a State; or
``(D) receive benefits pursuant to paragraph (3), (4), or
(5).
``(3) Exception.--Paragraph (2) shall not apply to an individual if the individual is--
``(A) under 18 or over 50 years of age;
``(B) medically certified as physically or mentally unfit for employment;
``(C) a parent or other member of a household with responsibility for a dependent child;
``(D) otherwise exempt under subsection (d)(2); or
``(E) a pregnant woman.
``(4) Waiver.--
``(A) In general.--On the request of a State agency, the Secretary may waive the applicability of paragraph (2) to any group of individuals in the State if the Secretary makes a determination that the area in which the individuals reside--
``(i) has an unemployment rate of over 10 percent; or
``(ii) does not have a sufficient number of jobs to provide employment for the individuals.
``(B) Report.--The Secretary shall report the basis for a waiver under subparagraph (A) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
``(5) Subsequent eligibility.--
``(A) Regaining eligibility.--An individual denied eligibility under paragraph (2) shall regain eligibility to participate in the food stamp program if, during a 30-day period, the individual--
``(i) works 80 or more hours;
``(ii) participates in and complies with the requirements of a work program for 80 or more hours, as determined by a State agency; or
``(iii) participates in and complies with the requirements of a program under section 20 or a comparable program established by a State or political subdivision of a State.
``(B) Maintaining eligibility.--An individual who regains eligibility under subparagraph (A) shall remain eligible as long as the individual meets the requirements of subparagraph
(A), (B), or (C) of paragraph (2).
``(C) Loss of employment.--
``(i) In general.--An individual who regained eligibility under subparagraph (A) and who no longer meets the requirements of subparagraph (A), (B), or (C) of paragraph
(2) shall remain eligible for a consecutive 3-month period, beginning on the date the individual first notifies the State agency that the individual no longer meets the requirements of subparagraph (A), (B), or (C) of paragraph (2).
``(ii) Limitation.--An individual shall not receive any benefits pursuant to clause (i) for more than a single 3-month period in any 36-month period.
``(6) Other program rules.--Nothing in this subsection shall make an individual eligible for benefits under this Act if the individual is not otherwise eligible for benefits under the other provisions of this Act.''.
(b) Transition Provision.--The term ``preceding 36-month period'' in section 6(o) of the Food Stamp Act of 1977, as added by subsection (a), does not include, with respect to a State, any period before the earlier of--
(1) the date the State notifies recipients of food stamp benefits of the application of section 6(o); or
(2) the date that is 3 months after the date of enactment of this Act.
SEC. 825. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
(a) In General.--Section 7(i) of the Food Stamp Act of 1977
(7 U.S.C. 2016(i)) is amended--
(1) by striking ``(i)(1)(A) Any State'' and all that follows through the end of paragraph (1) and inserting the following:
``(i) Electronic Benefit Transfers.--
``(1) In general.--
``(A) Implementation.--Not later than October 1, 2002, each State agency shall implement an electronic benefit transfer system under which household benefits determined under section 8(a) or 26 are issued from and stored in a central databank, unless the Secretary provides a waiver for a State agency that faces unusual barriers to implementing an electronic benefit transfer system.
``(B) Timely implementation.--Each State agency is encouraged to implement an electronic benefit transfer system under subparagraph (A) as soon as practicable.
``(C) State flexibility.--Subject to paragraph (2), a State agency may procure and implement an electronic benefit transfer system under the terms, conditions, and design that the State agency considers appropriate.
``(D) Operation.--An electronic benefit transfer system should take into account generally accepted standard operating rules based on--
``(i) commercial electronic funds transfer technology;
``(ii) the need to permit interstate operation and law enforcement monitoring; and
``(iii) the need to permit monitoring and investigations by authorized law enforcement agencies.'';
(2) in paragraph (2)--
(A) by striking ``effective no later than April 1, 1992,'';
(B) in subparagraph (A)--
(i) by striking ``, in any 1 year,''; and
(ii) by striking ``on-line'';
(C) by striking subparagraph (D) and inserting the following:
``(D)(i) measures to maximize the security of a system using the most recent technology available that the State agency considers appropriate and cost effective and which may include personal identification numbers, photographic identification on electronic benefit transfer cards, and other measures to protect against fraud and abuse; and
``(ii) effective not later than 2 years after the date of enactment of this clause, to the extent practicable, measures that permit a system to differentiate items of food that may be acquired with an allotment from items of food that may not be acquired with an allotment;'';
(D) in subparagraph (G), by striking ``and'' at the end;
(E) in subparagraph (H), by striking the period at the end and inserting ``; and''; and
(F) by adding at the end the following:
``(I) procurement standards.''; and
(3) by adding at the end the following:
``(7) Replacement of benefits.--Regulations issued by the Secretary regarding the replacement of benefits and liability for replacement of benefits under an electronic benefit transfer system shall be similar to the regulations in effect for a paper-based food stamp issuance system.
``(8) Replacement card fee.--A State agency may collect a charge for replacement of an electronic benefit transfer card by reducing the monthly allotment of the household receiving the replacement card.
``(9) Optional photographic identification.--
``(A) In general.--A State agency may require that an electronic benefit card contain a photograph of 1 or more members of a household.
``(B) Other authorized users.--If a State agency requires a photograph on an electronic benefit card under subparagraph
(A), the State agency shall establish procedures to ensure that any other appropriate member of the household or any authorized representative of the household may utilize the card.
``(10) Applicable law.--Disclosures, protections, responsibilities, and remedies established by the Federal Reserve Board under section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) shall not apply to benefits under this Act delivered through any electronic benefit transfer system.
``(11) Application of anti-tying restrictions to electronic benefit transfer systems.--
``(A) Definitions.--In this paragraph:
``(i) Affiliate.--The term `affiliate' has the meaning provided the term in section 2(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(k)).
``(ii) Company.--The term `company' has the meaning provided the term in section 106(a) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1971), but shall not include a bank, a bank holding company, or any subsidiary of a bank holding company.
``(iii) Electronic benefit transfer service.--The term
`electronic benefit transfer service' means the processing of electronic transfers of household benefits, determined under section 8(a) or 26, if the benefits are--
``(I) issued from and stored in a central databank;
``(II) electronically accessed by household members at the point of sale; and
``(III) provided by a Federal or State government.
``(iv) Point-of-sale service.--The term `point-of-sale service' means any product or service related to the electronic authorization and processing of payments for merchandise at a retail food store, including credit or debit card services, automated teller machines, point-of-sale terminals, or access to on-line systems.
``(B) Restrictions.--A company may not sell or provide electronic benefit transfer services, or fix or vary the consideration for electronic benefit transfer services, on the condition or requirement that the customer--
``(i) obtain some additional point-of-sale service from the company or an affiliate of the company; or
``(ii) not obtain some additional point-of-sale service from a competitor of the company or competitor of any affiliate of the company.
``(C) Consultation with the federal reserve board.--Before promulgating regulations or interpretations of regulations to carry out this paragraph, the Secretary shall consult with the Board of Governors of the Federal Reserve System.''.
(b) Sense of Congress.--It is the sense of Congress that a State that operates an electronic benefit transfer system under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should operate the system in a manner that is compatible with electronic benefit transfer systems operated by other States.
SEC. 826. VALUE OF MINIMUM ALLOTMENT.
The proviso in section 8(a) of the Food Stamp Act of 1977
(7 U.S.C. 2017(a)) is amended by striking ``, and shall be adjusted'' and all that follows through ``$5''.
SEC. 827. BENEFITS ON RECERTIFICATION.
Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ``of more than one month''.
SEC. 828. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED
HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c)) is amended by striking paragraph (3) and inserting the following:
``(3) Optional combined allotment for expedited households.--A State agency may provide to an eligible household applying after the 15th day of a month, in lieu of the initial allotment of the household and the regular allotment of the household for the following month, an allotment that is equal to the total amount of the initial allotment and the first regular allotment. The allotment shall be provided in accordance with section 11(e)(3) in the case of a household that is not entitled to expedited service and in accordance with paragraphs (3) and (9) of section 11(e) in the case of a household that is entitled to expedited service.''.
SEC. 829. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC
ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended by striking subsection (d) and inserting the following:
``(d) Reduction of Public Assistance Benefits.--
``(1) In general.--If the benefits of a household are reduced under a Federal, State, or local law relating to a means-tested public assistance program for the failure of a member of the household to perform an action required under the law or program, for the duration of the reduction--
``(A) the household may not receive an increased allotment as the result of a decrease in the income of the household to the extent that the decrease is the result of the reduction; and
``(B) the State agency may reduce the allotment of the household by not more than 25 percent.
``(2) Rules and procedures.--If the allotment of a household is reduced under this subsection for a failure to perform an action required under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), the State agency may use the rules and procedures that apply under part A of title IV of the Act to reduce the allotment under the food stamp program.''.
SEC. 830. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended by adding at the end the following:
``(f) Allotments for Households Residing in Centers.--
``(1) In general.--In the case of an individual who resides in a center for the purpose of a drug or alcoholic treatment program described in the last sentence of section 3(i), a State agency may provide an allotment for the individual to--
``(A) the center as an authorized representative of the individual for a period that is less than 1 month; and
``(B) the individual, if the individual leaves the center.
``(2) Direct payment.--A State agency may require an individual referred to in paragraph (1) to designate the center in which the individual resides as the authorized representative of the individual for the purpose of receiving an allotment.''.
SEC. 831. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)(1)) is amended by adding at the end the following:
``No retail food store or wholesale food concern of a type determined by the Secretary, based on factors that include size, location, and type of items sold, shall be approved to be authorized or reauthorized for participation in the food stamp program unless an authorized employee of the Department of Agriculture, a designee of the Secretary, or, if practicable, an official of the State or local government designated by the Secretary has visited the store or concern for the purpose of determining whether the store or concern should be approved or reauthorized, as appropriate.''.
SEC. 832. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.
Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)) is amended by adding at the end the following:
``(3) Authorization periods.--The Secretary shall establish specific time periods during which authorization to accept and redeem coupons, or to redeem benefits through an electronic benefit transfer system, shall be valid under the food stamp program.''.
SEC. 833. INFORMATION FOR VERIFYING ELIGIBILITY FOR
AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 2018(c)) is amended--
(1) in the first sentence, by inserting ``, which may include relevant income and sales tax filing documents,'' after ``submit information''; and
(2) by inserting after the first sentence the following:
``The regulations may require retail food stores and wholesale food concerns to provide written authorization for the Secretary to verify all relevant tax filings with appropriate agencies and to obtain corroborating documentation from other sources so that the accuracy of information provided by the stores and concerns may be verified.''.
SEC. 834. WAITING PERIOD FOR STORES THAT FAIL TO MEET
AUTHORIZATION CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 2018(d)) is amended by adding at the end the following: ``A retail food store or wholesale food concern that is denied approval to accept and redeem coupons because the store or concern does not meet criteria for approval established by the Secretary may not, for at least 6 months, submit a new application to participate in the program. The Secretary may establish a longer time period under the preceding sentence, including permanent disqualification, that reflects the severity of the basis of the denial.''.
SEC. 835. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020), as amended by sections 809(b) and 819(b), is amended--
(1) in subsection (e)--
(A) by striking paragraph (2) and inserting the following:
``(2)(A) that the State agency shall establish procedures governing the operation of food stamp offices that the State agency determines best serve households in the State, including households with special needs, such as households with elderly or disabled members, households in rural areas with low-income members, homeless individuals, households residing on reservations, and households in areas in which a substantial number of members of low-income households speak a language other than English.
``(B) In carrying out subparagraph (A), a State agency--
``(i) shall provide timely, accurate, and fair service to applicants for, and participants in, the food stamp program;
``(ii) shall develop an application containing the information necessary to comply with this Act;
``(iii) shall permit an applicant household to apply to participate in the program on the same day that the household first contacts a food stamp office in person during office hours;
``(iv) shall consider an application that contains the name, address, and signature of the applicant to be filed on the date the applicant submits the application;
``(v) shall require that an adult representative of each applicant household certify in writing, under penalty of perjury, that--
``(I) the information contained in the application is true; and
``(II) all members of the household are citizens or are aliens eligible to receive food stamps under section 6(f);
``(vi) shall provide a method of certifying and issuing coupons to eligible homeless individuals, to ensure that participation in the food stamp program is limited to eligible households; and
``(vii) may establish operating procedures that vary for local food stamp offices to reflect regional and local differences within the State.
``(C) Nothing in this Act shall prohibit the use of signatures provided and maintained electronically, storage of records using automated retrieval systems only, or any other feature of a State agency's application system that does not rely exclusively on the collection and retention of paper applications or other records.
``(D) The signature of any adult under this paragraph shall be considered sufficient to comply with any provision of Federal law requiring a household member to sign an application or statement;'';
(B) in paragraph (3)--
(i) by striking ``shall--'' and all that follows through
``provide each'' and inserting ``shall provide each''; and
(ii) by striking ``(B) assist'' and all that follows through ``representative of the State agency;'';
(C) by striking paragraphs (14) and (25);
(D)(i) by redesignating paragraphs (15) through (24) as paragraphs (14) through (23), respectively; and
(ii) by redesignating paragraph (26), as paragraph (24); and
(2) in subsection (i)--
(A) by striking ``(i) Notwithstanding'' and all that follows through ``(2)'' and inserting the following:
``(i) Application and Denial Procedures.--
``(1) Application procedures.--Notwithstanding any other provision of law,''; and
(B) by striking ``; (3) households'' and all that follows through ``title IV of the Social Security Act. No'' and inserting a period and the following:
``(2) Denial and termination.--Except in a case of disqualification as a penalty for failure to comply with a public assistance program rule or regulation, no''.
SEC. 836. STATE EMPLOYEE AND TRAINING STANDARDS.
Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(6)) is amended--
(1) by striking ``that (A) the'' and inserting ``that--
``(A) the'';
(2) by striking ``Act; (B) the'' and inserting ``Act; and
``(B) the'';
(3) in subparagraph (B), by striking ``United States Civil Service Commission'' and inserting ``Office of Personnel Management''; and
(4) by striking subparagraphs (C) through (E).
SEC. 837. EXCHANGE OF LAW ENFORCEMENT INFORMATION.
Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(8)) is amended--
(1) by striking ``that (A) such'' and inserting the following: ``that--
``(A) the'';
(2) by striking ``law, (B) notwithstanding'' and inserting the following: ``law;
``(B) notwithstanding'';
(3) by striking ``Act, and (C) such'' and inserting the following: ``Act;
``(C) the''; and
(4) by adding at the end the following:
``(D) notwithstanding any other provision of law, the address, social security number, and, if available, photograph of any member of a household shall be made available, on request, to any Federal, State, or local law enforcement officer if the officer furnishes the State agency with the name of the member and notifies the agency that--
``(i) the member--
``(I) is fleeing to avoid prosecution, or custody or confinement after conviction, for a crime (or attempt to commit a crime) that, under the law of the place the member is fleeing, is a felony (or, in the case of New Jersey, a high misdemeanor), or is violating a condition of probation or parole imposed under Federal or State law; or
``(II) has information that is necessary for the officer to conduct an official duty related to subclause (I);
``(ii) locating or apprehending the member is an official duty; and
``(iii) the request is being made in the proper exercise of an official duty; and
``(E) the safeguards shall not prevent compliance with paragraph (16);''.
SEC. 838. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(9)) is amended--
(1) in subparagraph (A), by striking ``five days'' and inserting ``7 days'';
(2) by striking subparagraph (B);
(3) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C);
(4) in subparagraph (B), as redesignated by paragraph (3), by striking ``five days'' and inserting ``7 days''; and
(5) in subparagraph (C), as redesignated by paragraph (3), by striking ``, (B), or (C)'' and inserting ``or (B)''.
SEC. 839. WITHDRAWING FAIR HEARING REQUESTS.
Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(10)) is amended by inserting before the semicolon at the end a period and the following: ``At the option of a State, at any time prior to a fair hearing determination under this paragraph, a household may withdraw, orally or in writing, a request by the household for the fair hearing. If the withdrawal request is an oral request, the State agency shall provide a written notice to the household confirming the withdrawal request and providing the household with an opportunity to request a hearing''.
SEC. 840. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS
VERIFICATION SYSTEMS.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is amended--
(1) in subsection (e)(18), as redesignated by section 835(1)(D)--
(A) by striking ``that information is'' and inserting ``at the option of the State agency, that information may be''; and
(B) by striking ``shall be requested'' and inserting ``may be requested''; and
(2) by adding at the end the following:
``(p) State Verification Option.--Notwithstanding any other provision of law, in carrying out the food stamp program, a State agency shall not be required to use an income and eligibility or an immigration status verification system established under section 1137 of the Social Security Act (42 U.S.C. 1320b-7).''.
SEC. 841. INVESTIGATIONS.
Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C. 2021(a)) is amended by adding at the end the following:
``Regulations issued pursuant to this Act shall provide criteria for the finding of a violation and the suspension or disqualification of a retail food store or wholesale food concern on the basis of evidence that may include facts established through on-site investigations, inconsistent redemption data, or evidence obtained through a transaction report under an electronic benefit transfer system.''.
SEC. 842. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY
SUBMIT FALSIFIED APPLICATIONS.
Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C. 2021(b)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and inserting ``; and''; and
(3) by adding at the end the following:
``(4) for a reasonable period of time to be determined by the Secretary, including permanent disqualification, on the knowing submission of an application for the approval or reauthorization to accept and redeem coupons that contains false information about a substantive matter that was a part of the application.''.
SEC. 843. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED
UNDER THE WIC PROGRAM.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is amended by adding at the end the following:
``(g) Disqualification of Retailers Who Are Disqualified Under the WIC Program.--
``(1) In general.--The Secretary shall issue regulations providing criteria for the disqualification under this Act of an approved retail food store or a wholesale food concern that is disqualified from accepting benefits under the special supplemental nutrition program for women, infants, and children established under section 17 of the Child Nutrition Act of 1966 (7 U.S.C. 1786).
``(2) Terms.--A disqualification under paragraph (1)--
``(A) shall be for the same length of time as the disqualification from the program referred to in paragraph
(1);
``(B) may begin at a later date than the disqualification from the program referred to in paragraph (1); and
``(C) notwithstanding section 14, shall not be subject to judicial or administrative review.''.
SEC. 844. COLLECTION OF OVERISSUANCES.
(a) Collection of Overissuances.--Section 13 of the Food Stamp Act of 1977 (7 U.S.C. 2022) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Collection of Overissuances.--
``(1) In general.--Except as otherwise provided in this subsection, a State agency shall collect any overissuance of coupons issued to a household by--
``(A) reducing the allotment of the household;
``(B) withholding amounts from unemployment compensation from a member of the household under subsection (c);
``(C) recovering from Federal pay or a Federal income tax refund under subsection (d); or
``(D) any other means.
``(2) Cost effectiveness.--Paragraph (1) shall not apply if the State agency demonstrates to the satisfaction of the Secretary that all of the means referred to in paragraph (1) are not cost effective.
``(3) Maximum reduction absent fraud.--If a household received an overissuance of coupons without any member of the household being found ineligible to participate in the program under section 6(b)(1) and a State agency elects to reduce the allotment of the household under paragraph (1)(A), the State agency shall not reduce the monthly allotment of the household under paragraph (1)(A) by an amount in excess of the greater of--
``(A) 10 percent of the monthly allotment of the household; or
``(B) $10.
``(4) Procedures.--A State agency shall collect an overissuance of coupons issued to a household under paragraph
(1) in accordance with the requirements established by the State agency for providing notice, electing a means of payment, and establishing a time schedule for payment.''; and
(2) in subsection (d)--
(A) by striking ``as determined under subsection (b) and except for claims arising from an error of the State agency,'' and inserting ``, as determined under subsection
(b)(1),''; and
(B) by inserting before the period at the end the following: ``or a Federal income tax refund as authorized by section 3720A of title 31, United States Code''.
(b) Conforming Amendments.--Section 11(e)(8)(C) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(8)(C)) is amended--
(1) by striking ``and excluding claims'' and all that follows through ``such section''; and
(2) by inserting before the semicolon at the end the following: ``or a Federal income tax refund as authorized by section 3720A of title 31, United States Code''.
(c) Retention Rate.--The proviso of the first sentence of section 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)) is amended by striking ``25 percent during the period beginning October 1, 1990'' and all that follows through ``section 13(b)(2) which arise'' and inserting ``35 percent of the value of all funds or allotments recovered or collected pursuant to sections 6(b) and 13(c) and 20 percent of the value of any other funds or allotments recovered or collected, except the value of funds or allotments recovered or collected that arise''.
SEC. 845. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM
REQUIREMENTS PENDING ADMINISTRATIVE AND
JUDICIAL REVIEW.
Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a)) is amended--
(1) by redesignating the first through seventeenth sentences as paragraphs (1) through (17), respectively; and
(2) by adding at the end the following:
``(18) Suspension of stores pending review.--Notwithstanding any other provision of this subsection, any permanent disqualification of a retail food store or wholesale food concern under paragraph (3) or (4) of section 12(b) shall be effective from the date of receipt of the notice of disqualification. If the disqualification is reversed through administrative or judicial review, the Secretary shall not be liable for the value of any sales lost during the disqualification period.''.
SEC. 846. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.
(a) Forfeiture of Items Exchanged in Food Stamp Trafficking.--The first sentence of section 15(g) of the Food Stamp Act of 1977 (7 U.S.C. 2024(g)) is amended by striking
``or intended to be furnished''.
(b) Criminal Forfeiture.--Section 15 of the Food Stamp Act of 1977 (7 U.S.C. 2024) is amended by adding at the end the following:
``(h) Criminal Forfeiture.--
``(1) In general.--In imposing a sentence on a person convicted of an offense in violation of subsection (b) or
(c), a court shall order, in addition to any other sentence imposed under this section, that the person forfeit to the United States all property described in paragraph (2).
``(2) Property subject to forfeiture.--All property, real and personal, used in a transaction or attempted transaction, to commit, or to facilitate the commission of, a violation
(other than a misdemeanor) of subsection (b) or (c), or proceeds traceable to a violation of subsection (b) or (c), shall be subject to forfeiture to the United States under paragraph (1).
``(3) Interest of owner.--No interest in property shall be forfeited under this subsection as the result of any act or omission established by the owner of the interest to have been committed or omitted without the knowledge or consent of the owner.
``(4) Proceeds.--The proceeds from any sale of forfeited property and any monies forfeited under this subsection shall be used--
``(A) first, to reimburse the Department of Justice for the costs incurred by the Department to initiate and complete the forfeiture proceeding;
``(B) second, to reimburse the Department of Agriculture Office of Inspector General for any costs the Office incurred in the law enforcement effort resulting in the forfeiture;
``(C) third, to reimburse any Federal or State law enforcement agency for any costs incurred in the law enforcement effort resulting in the forfeiture; and
``(D) fourth, by the Secretary to carry out the approval, reauthorization, and compliance investigations of retail stores and wholesale food concerns under section 9.''.
SEC. 847. LIMITATION ON FEDERAL MATCH.
Section 16(a)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)(4)) is amended by inserting after the comma at the end the following: ``but not including recruitment activities,''.
SEC. 848. STANDARDS FOR ADMINISTRATION.
(a) In General.--Section 16 of the Food Stamp Act of 1977
(7 U.S.C. 2025) is amended by striking subsection (b).
(b) Conforming Amendments.--
(1) The first sentence of section 11(g) of the Food Stamp Act of 1977 (7 U.S.C. 2020(g)) is amended by striking ``the Secretary's standards for the efficient and effective administration of the program established under section 16(b)(1) or''.
(2) Section 16(c)(1)(B) of the Food Stamp Act of 1977 (7 U.S.C. 2025(c)(1)(B)) is amended by striking ``pursuant to subsection (b)''.
SEC. 849. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025), as amended by section 848(a), is amended by inserting after subsection (a) the following:
``(b) Work Supplementation or Support Program.--
``(1) Definition of work supplementation or support program.--In this subsection, the term `work supplementation or support program' means a program under which, as determined by the Secretary, public assistance (including any benefits provided under a program established by the State and the food stamp program) is provided to an employer to be used for hiring and employing a public assistance recipient who was not employed by the employer at the time the public assistance recipient entered the program.
``(2) Program.--A State agency may elect to use an amount equal to the allotment that would otherwise be issued to a household under the food stamp program, but for the operation of this subsection, for the purpose of subsidizing or supporting a job under a work supplementation or support program established by the State.
``(3) Procedure.--If a State agency makes an election under paragraph (2) and identifies each household that participates in the food stamp program that contains an individual who is participating in the work supplementation or support program--
``(A) the Secretary shall pay to the State agency an amount equal to the value of the allotment that the household would be eligible to receive but for the operation of this subsection;
``(B) the State agency shall expend the amount received under subparagraph (A) in accordance with the work supplementation or support program in lieu of providing the allotment that the household would receive but for the operation of this subsection;
``(C) for purposes of--
``(i) sections 5 and 8(a), the amount received under this subsection shall be excluded from household income and resources; and
``(ii) section 8(b), the amount received under this subsection shall be considered to be the value of an allotment provided to the household; and
``(D) the household shall not receive an allotment from the State agency for the period during which the member continues to participate in the work supplementation or support program.
``(4) Other work requirements.--No individual shall be excused, by reason of the fact that a State has a work supplementation or support program, from any work requirement under section 6(d), except during the periods in which the individual is employed under the work supplementation or support program.
``(5) Length of participation.--A State agency shall provide a description of how the public assistance recipients in the program shall, within a specific period of time, be moved from supplemented or supported employment to employment that is not supplemented or supported.
``(6) Displacement.--A work supplemen- tation 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 strategies; or
``(IV) allow greater conformity with the rules of other programs than would be allowed but for this paragraph.
``(iii) Restrictions on permissible projects.--If the Secretary finds that a project under subparagraph (A) would reduce benefits by more than 20 percent for more than 5 percent of households in the area subject to the project (not including any household whose benefits are reduced due to a failure to comply with work or other conduct requirements), the project--
``(I) may not include more than 15 percent of the State's food stamp households; and
``(II) shall continue for not more than 5 years after the date of implementation, unless the Secretary approves an extension requested by the State agency at any time.
``(iv) Impermissible projects.--The Secretary may not conduct a project under subparagraph (A) that--
``(I) involves the payment of the value of an allotment in the form of cash, unless the project was approved prior to the date of enactment of this subparagraph;
``(II) has the effect of substantially transferring funds made available under this Act to services or benefits provided primarily through another public assistance program, or using the funds for any purpose other than the purchase of food, program administration, or an employment or training program;
``(III) is inconsistent with--
``(aa) the last 2 sentences of section 3(i);
``(bb) the last sentence of section 5(a), insofar as a waiver denies assistance to an otherwise eligible household or individual if the household or individual has not failed to comply with any work, behavioral, or other conduct requirement under this or another program;
``(cc) section 5(c)(2);
``(dd) paragraph (2)(B), (4)(F)(i), or (4)(K) of section 6(d);
``(ee) section 8(b);
``(ff) section 11(e)(2)(B);
``(gg) the time standard under section 11(e)(3);
``(hh) subsection (a), (c), (g), (h)(2), or (h)(3) of section 16;
``(ii) this paragraph; or
``(jj) subsection (a)(1) or (g)(1) of section 20;
``(IV) modifies the operation of section 5 so as to have the effect of--
``(aa) increasing the shelter deduction to households with no out-of-pocket housing costs or housing costs that consume a low percentage of the household's income; or
``(bb) absolving a State from acting with reasonable promptness on substantial reported changes in income or household size (except that this subclause shall not apply with regard to changes related to food stamp deductions);
``(V) is not limited to a specific time period; or
``(VI) waives a provision of section 26.
``(v) Additional included projects.--A pilot or experimental project may include'';
(B) by striking ``to aid to families with dependent children under part A of title IV of the Social Security Act'' and inserting ``are receiving assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)''; and
(C) by striking ``coupons. The Secretary'' and all that follows through ``Any pilot'' and inserting the following:
``coupons.
``(vi) Cash payment pilot projects.--Any pilot''.
SEC. 851. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)), as amended by section 850, is amended by adding at the end the following:
``(D) Response to waivers.--
``(i) Response.--Not later than 60 days after the date of receiving a request for a waiver under subparagraph (A), the Secretary shall provide a response that--
``(I) approves the waiver request;
``(II) denies the waiver request and describes any modification needed for approval of the waiver request;
``(III) denies the waiver request and describes the grounds for the denial; or
``(IV) requests clarification of the waiver request.
``(ii) Failure to respond.--If the Secretary does not provide a response in accordance with clause (i), the waiver shall be considered approved, unless the approval is specifically prohibited by this Act.
``(iii) Notice of denial.--On denial of a waiver request under clause (i)(III), the Secretary shall provide a copy of the waiver request and a description of the reasons for the denial to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.''.
SEC. 852. EMPLOYMENT INITIATIVES PROGRAM.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended by striking subsection (d) and inserting the following:
``(d) Employment Initiatives Program.--
``(1) Election to participate.--
``(A) In general.--Subject to the other provisions of this subsection, a State may elect to carry out an employment initiatives program under this subsection.
``(B) Requirement.--A State shall be eligible to carry out an employment initiatives program under this subsection only if not less than 50 percent of the households in the State that received food stamp benefits during the summer of 1993 also received benefits under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) during the summer of 1993.
``(2) Procedure.--
``(A) In general.--A State that has elected to carry out an employment initiatives program under paragraph (1) may use amounts equal to the food stamp allotments that would otherwise be issued to a household under the food stamp program, but for the operation of this subsection, to provide cash benefits in lieu of the food stamp allotments to the household if the household is eligible under paragraph (3).
``(B) Payment.--The Secretary shall pay to each State that has elected to carry out an employment initiatives program under paragraph (1) an amount equal to the value of the allotment that each household participating in the program in the State would be eligible to receive under this Act but for the operation of this subsection.
``(C) Other provisions.--For purposes of the food stamp program (other than this subsection)--
``(i) cash assistance under this subsection shall be considered to be an allotment; and
``(ii) each household receiving cash benefits under this subsection shall not receive any other food stamp benefit during the period for which the cash assistance is provided.
``(D) Additional payments.--Each State that has elected to carry out an employment initiatives program under paragraph
(1) shall--
``(i) increase the cash benefits provided to each household participating in the program in the State under this subsection to compensate for any State or local sales tax that may be collected on purchases of food by the household, unless the Secretary determines on the basis of information provided by the State that the increase is unnecessary on the basis of the limited nature of the items subject to the State or local sales tax; and
``(ii) pay the cost of any increase in cash benefits required by clause (i).
``(3) Eligibility.--A household shall be eligible to receive cash benefits under paragraph (2) if an adult member of the household--
``(A) has worked in unsubsidized employment for not less than the preceding 90 days;
``(B) has earned not less than $350 per month from the employment referred to in subparagraph (A) for not less than the preceding 90 days;
``(C)(i) is receiving benefits under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); or
``(ii) was receiving benefits under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) at the time the member first received cash benefits under this subsection and is no longer eligible for the State program because of earned income;
``(D) is continuing to earn not less than $350 per month from the employment referred to in subparagraph (A); and
``(E) elects to receive cash benefits in lieu of food stamp benefits under this subsection.
``(4) Evaluation.--A State that operates a program under this subsection for 2 years shall provide to the Secretary a written evaluation of the impact of cash assistance under this subsection. The State agency, with the concurrence of the Secretary, shall determine the content of the evaluation.''.
SEC. 853. REAUTHORIZATION.
The first sentence of section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking
``1991 through 1997'' and inserting ``1996 through 2002''.
SEC. 854. SIMPLIFIED FOOD STAMP PROGRAM.
(a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is amended by adding at the end the following:
``SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM.
``(a) Definition of Federal Costs.--In this section, the term `Federal costs' does not include any Federal costs incurred under section 17.
``(b) Election.--Subject to subsection (d), a State may elect to carry out a Simplified Food Stamp Program (referred to in this section as a
`Program'), statewide or in a political subdivision of the State, in accordance with this section.
``(c) Operation of Program.--If a State elects to carry out a Program, within the State or a political subdivision of the State--
``(1) a household in which no members receive assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) may not participate in the Program;
``(2) a household in which all members receive assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) shall automatically be eligible to participate in the Program;
``(3) if approved by the Secretary, a household in which 1 or more members but not all members receive assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) may be eligible to participate in the Program; and
``(4) subject to subsection (f), benefits under the Program shall be determined under rules and procedures established by the State under--
``(A) a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.);
``(B) the food stamp program; or
``(C) a combination of a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and the food stamp program.
``(d) Approval of Program.--
``(1) State plan.--A State agency may not operate a Program unless the Secretary approves a State plan for the operation of the Program under paragraph (2).
``(2) Approval of plan.--The Secretary shall approve any State plan to carry out a Program if the Secretary determines that the plan--
``(A) complies with this section; and
``(B) contains sufficient documentation that the plan will not increase Federal costs for any fiscal year.
``(e) Increased Federal Costs.--
``(1) Determination.--
``(A) In general.--The Secretary shall determine whether a Program being carried out by a State agency is increasing Federal costs under this Act.
``(B) No excluded households.--In making a determination under subparagraph (A), the Secretary shall not require the State agency to collect or report any information on households not included in the Program.
``(C) Alternative accounting periods.--The Secretary may approve the request of a State agency to apply alternative accounting periods to determine if Federal costs do not exceed the Federal costs had the State agency not elected to carry out the Program.
``(2) Notification.--If the Secretary determines that the Program has increased Federal costs under this Act for any fiscal year or any portion of any fiscal year, the Secretary shall notify the State not later than 30 days after the Secretary makes the determination under paragraph (1).
``(3) Enforcement.--
``(A) Corrective action.--Not later than 90 days after the date of a notification under paragraph (2), the State shall submit a plan for approval by the Secretary for prompt corrective action that is designed to prevent the Program from increasing Federal costs under this Act.
``(B) Termination.--If the State does not submit a plan under subparagraph (A) or carry out a plan approved by the Secretary, the Secretary shall terminate the approval of the State agency operating the Program and the State agency shall be ineligible to operate a future Program.
``(f) Rules and Procedures.--
``(1) In general.--In operating a Program, a State or political subdivision of a State may follow the rules and procedures established by the State or political subdivision under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) or under the food stamp program.
``(2) Standardized deductions.--In operating a Program, a State or political subdivision of a State may standardize the deductions provided under section 5(e). In developing the standardized deduction, the State shall consider the work expenses, dependent care costs, and shelter costs of participating households.
``(3) Requirements.--In operating a Program, a State or political subdivision shall comply with the requirements of--
``(A) subsections (a) through (g) of section 7;
``(B) section 8(a) (except that the income of a household may be determined under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.));
``(C) subsection (b) and (d) of section 8;
``(D) subsections (a), (c), (d), and (n) of section 11;
``(E) paragraphs (8), (12), (16), (18), (20), (24), and
(25) of section 11(e);
``(F) section 11(e)(10) (or a comparable requirement established by the State under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)); and
``(G) section 16.
``(4) Limitation on eligibility.--Notwithstanding any other provision of this section, a household may not receive benefits under this section as a result of the eligibility of the household under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), unless the Secretary determines that any household with income above 130 percent of the poverty guidelines is not eligible for the program.''.
(b) State Plan Provisions.--Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)), as amended by sections 819(b) and 835, is amended by adding at the end the following:
``(25) if a State elects to carry out a Simplified Food Stamp Program under section 26, the plans of the State agency for operating the program, including--
``(A) the rules and procedures to be followed by the State agency to determine food stamp benefits;
``(B) how the State agency will address the needs of households that experience high shelter costs in relation to the incomes of the households; and
``(C) a description of the method by which the State agency will carry out a quality control system under section 16(c).''.
(c) Conforming Amendments.--
(1) Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017), as amended by section 830, is amended--
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as subsection (e).
(2) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended--
(A) by striking subsection (i); and
(B) by redesignating subsections (j) through (l) as subsections (i) through (k), respectively.
SEC. 855. STUDY OF THE USE OF FOOD STAMPS TO PURCHASE
VITAMINS AND MINERALS.
(a) In General.--The Secretary of Agriculture, in consultation with the National Academy of Sciences and the Center for Disease Control and Prevention, shall conduct a study on the use of food stamps provided under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) to purchase vitamins and minerals.
(b) Analysis.--The study shall include--
(1) an analysis of scientific findings on the efficacy of and need for vitamins and minerals, including--
(A) the adequacy of vitamin and mineral intakes in low-income populations, as shown by research and surveys conducted prior to the study; and
(B) the potential value of nutritional supplements in filling nutrient gaps that may exist in the United States population as a whole or in vulnerable subgroups in the population;
(2) the impact of nutritional improvements (including vitamin or mineral supplementation) on the health status and health care costs of women of childbearing age, pregnant or lactating women, and the elderly;
(3) the cost of commercially available vitamin and mineral supplements;
(4) the purchasing habits of low-income populations with regard to vitamins and minerals;
(5) the impact of using food stamps to purchase vitamins and minerals on the food purchases of low-income households; and
(6) the economic impact on the production of agricultural commodities of using food stamps to purchase vitamins and minerals.
(c) Report.--Not later than December 15, 1998, the Secretary shall report the results of the study to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
SEC. 856. DEFICIT REDUCTION.
It is the sense of the Committee on Agriculture of the House of Representatives that reductions in outlays resulting from this title shall not be taken into account for purposes of section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 902).
Subtitle B--Commodity Distribution Programs
SEC. 871. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) Definitions.--Section 201A of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended to read as follows:
``SEC. 201A. DEFINITIONS.
``In this Act:
``(1) Additional commodities.--The term `additional commodities' means commodities made available under section 214 in addition to the commodities made available under sections 202 and 203D.
``(2) Average monthly number of unemployed persons.--The term `average monthly number of unemployed persons' means the average monthly number of unemployed persons in each State during the most recent fiscal year for which information concerning the number of unemployed persons is available, as determined by the Bureau of Labor Statistics of the Department of Labor.
``(3) Eligible recipient agency.--The term `eligible recipient agency' means a public or nonprofit organization that--
``(A) administers--
``(i) an emergency feeding organization;
``(ii) a charitable institution (including a hospital and a retirement home, but excluding a penal institution) to the extent that the institution serves needy persons;
``(iii) a summer camp for children, or a child nutrition program providing food service;
``(iv) a nutrition project operating under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.), including a project that operates a congregate nutrition site and a project that provides home-delivered meals; or
``(v) a disaster relief program;
``(B) has been designated by the appropriate State agency, or by the Secretary; and
``(C) has been approved by the Secretary for participation in the program established under this Act.
``(4) Emergency feeding organization.--The term `emergency feeding organization' means a public or nonprofit organization that administers activities and projects
(including the activities and projects of a charitable institution, a food bank, a food pantry, a hunger relief center, a soup kitchen, or a similar public or private nonprofit eligible recipient agency) providing nutrition assistance to relieve situations of emergency and distress through the provision of food to needy persons, including low-income and unemployed persons.
``(5) Food bank.--The term `food bank' means a public or charitable institution that maintains an established operation involving the provision of food or edible commodities, or the products of food or edible commodities, to food pantries, soup kitchens, hunger relief centers, or other food or feeding centers that, as an integral part of their normal activities, provide meals or food to feed needy persons on a regular basis.
``(6) Food pantry.--The term `food pantry' means a public or private nonprofit organization that distributes food to low-income and unemployed households, including food from sources other than the Department of Agriculture, to relieve situations of emergency and distress.
``(7) Poverty line.--The term `poverty line' has the meaning provided in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)).
``(8) Soup kitchen.--The term `soup kitchen' means a public or charitable institution that, as an integral part of the normal activities of the institution, maintains an established feeding operation to provide food to needy homeless persons on a regular basis.
``(9) Total value of additional commodities.--The term
`total value of additional commodities' means the actual cost of all additional commodities that are paid by the Secretary
(including the distribution and processing costs incurred by the Secretary).
``(10) Value of additional commodities allocated to each state.--The term `value of additional commodities allocated to each State' means the actual cost of additional commodities allocated to each State that are paid by the Secretary (including the distribution and processing costs incurred by the Secretary).''.
(b) State Plan.--Section 202A of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended to read as follows:
``SEC. 202A. STATE PLAN.
``(a) In General.--To receive commodities under this Act, a State shall submit a plan of operation and administration every 4 years to the Secretary for approval. The plan may be amended at any time, with the approval of the Secretary.
``(b) Requirements.--Each plan shall--
``(1) designate the State agency responsible for distributing the commodities received under this Act;
``(2) set forth a plan of operation and administration to expeditiously distribute commodities under this Act;
``(3) set forth the standards of eligibility for recipient agencies; and
``(4) set forth the standards of eligibility for individual or household recipients of commodities, which shall require--
``(A) individuals or households to be comprised of needy persons; and
``(B) individual or household members to be residing in the geographic location served by the distributing agency at the time of applying for assistance.
``(c) State Advisory Board.--The Secretary shall encourage each State receiving commodities under this Act to establish a State advisory board consisting of representatives of all entities in the State, both public and private, interested in the distribution of commodities received under this Act.''.
(c) Authorization of Appropriations for Administrative Funds.--Section 204(a)(1) of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended--
(1) in the first sentence, by striking ``for State and local'' and all that follows through ``under this title'' and inserting ``to pay for the direct and indirect administrative costs of the States related to the processing, transporting, and distributing to eligible recipient agencies of commodities provided by the Secretary under this Act and commodities secured from other sources''; and
(2) by striking the fourth sentence.
(d) Delivery of Commodities.--Section 214 of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended--
(1) by striking subsections (a) through (e) and (j);
(2) by redesignating subsections (f) through (i) as subsections (a) through (d), respectively;
(3) in subsection (b), as redesignated by paragraph (2)--
(A) in the first sentence, by striking ``subsection (f) or subsection (j) if applicable,'' and inserting ``subsection
(a),''; and
(B) in the second sentence, by striking ``subsection (f)'' and inserting ``subsection (a)'';
(4) by striking subsection (c), as redesignated by paragraph (2), and inserting the following:
``(c) Administration.--
``(1) In general.--Commodities made available for each fiscal year under this section shall be delivered at reasonable intervals to States based on the grants calculated under subsection (a), or reallocated under subsection (b), before December 31 of the following fiscal year.
``(2) Entitlement.--Each State shall be entitled to receive the value of additional commodities determined under subsection (a).''; and
(5) in subsection (d), as redesignated by paragraph (2), by striking ``or reduce'' and all that follows through ``each fiscal year''.
(e) Technical Amendments.--The Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended--
(1) in the first sentence of section 203B(a), by striking
``203 and 203A of this Act'' and inserting ``203A'';
(2) in section 204(a), by striking ``title'' each place it appears and inserting ``Act'';
(3) in the first sentence of section 210(e), by striking
``(except as otherwise provided for in section 214(j))''; and
(4) by striking section 212.
(f) Report on EFAP.--Section 1571 of the Food Security Act of 1985 (Public Law 99-198; 7 U.S.C. 612c note) is repealed.
(g) Availability of Commodities Under the Food Stamp Program.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended by section 854(a), is amended by adding at the end the following:
``SEC. 27. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD
ASSISTANCE PROGRAM.
``(a) Purchase of Commodities.--From amounts made available to carry out this Act, for each of fiscal years 1997 through 2002, the Secretary shall purchase $100,000,000 of a variety of nutritious and useful commodities of the types that the Secretary has the authority to acquire through the Commodity Credit Corporation or under section 32 of the Act entitled
`An Act to amend the Agricultural Adjustment Act, and for other purposes', approved August 24, 1935 (7 U.S.C. 612c), and distribute the commodities to States for distribution in accordance with section 214 of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note).
``(b) Basis for Commodity Purchases.--In purchasing commodities under subsection (a), the Secretary shall, to the extent practicable and appropriate, make purchases based on--
``(1) agricultural market conditions;
``(2) preferences and needs of States and distributing agencies; and
``(3) preferences of recipients.''.
(h) Effective Date.--The amendments made by subsection (d) shall become effective on October 1, 1996.
SEC. 872. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food Bank Act of 1987 (Public Law 100-232; 7 U.S.C. 612c note) is repealed.
SEC. 873. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law 100-435; 7 U.S.C. 612c note) is amended--
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
SEC. 874. REPORT ON ENTITLEMENT COMMODITY PROCESSING.
Section 1773 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 612c note) is amended by striking subsection (f).
Subtitle C--Electronic Benefit Transfer Systems
SEC. 891. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) is amended--
(1) by striking ``(d) In the event that'' and inserting
``(d) Applicability to Service Providers Other Than Certain Financial Institutions.--
``(1) In general.--If''; and
(2) by adding at the end the following:
``(2) State and local government electronic benefit transfer systems.--
``(A) Definition of electronic benefit transfer system.--In this paragraph, the term `electronic benefit transfer system'--
``(i) means a system under which a government agency distributes needs-tested benefits by establishing accounts that may be accessed by recipients electronically, such as through automated teller machines or point-of-sale terminals; and
``(ii) does not include employment-related payments, including salaries and pension, retirement, or unemployment benefits established by a Federal, State, or local government agency.
``(B) Exemption generally.--The disclosures, protections, responsibilities, and remedies established under this title, and any regulation prescribed or order issued by the Board in accordance with this title, shall not apply to any electronic benefit transfer system established under State or local law or administered by a State or local government.
``(C) Exception for direct deposit into recipient's account.--Subparagraph (B) shall not apply with respect to any electronic funds transfer under an electronic benefit transfer system for a deposit directly into a consumer account held by the recipient of the benefit.
``(D) Rule of construction.--No provision of this paragraph--
``(i) affects or alters the protections otherwise applicable with respect to benefits established by any other provision Federal, State, or local law; or
``(ii) otherwise supersedes the application of any State or local law.''.
TITLE IX--MISCELLANEOUS
SEC. 901. APPROPRIATION BY STATE LEGISLATURES.
(a) In General.--Any funds received by a State under the provisions of law specified in subsection (b) shall be subject to appropriation by the State legislature, consistent with the terms and conditions required under such provisions of law.
(b) Provisions of Law.--The provisions of law specified in this subsection are the following:
(1) Part A of title IV of the Social Security Act (relating to block grants for temporary assistance for needy families).
(2) The Child Care and Development Block Grant Act of 1990
(relating to block grants for child care).
SEC. 902. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED
SUBSTANCES.
Notwithstanding any other provision of law, States shall not be prohibited by the Federal Government from testing welfare recipients for use of controlled substances nor from sanctioning welfare recipients who test positive for use of controlled substances.
SEC. 903. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO
FUGITIVE FELONS AND PROBATION AND PAROLE
VIOLATORS.
(a) Eligibility for Assistance.--The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
(1) in section 6(l)--
(A) in paragraph (5), by striking ``and'' at the end;
(B) in paragraph (6), by striking the period at the end and inserting ``; and''; and
(C) by inserting immediately after paragraph (6) the following new paragraph:
``(7) provide that it shall be cause for immediate termination of the tenancy of a public housing tenant if such tenant--
``(A) is fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from which the individual flees, for a crime, or attempt to commit a crime, which is a felony under the laws of the place from which the individual flees, or which, in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or
``(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 offensives; 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 offensives, 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 offensives.
SEC. 907. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) is amended--
(1) by striking ``(d) In the event'' and inserting ``(d) Applicability to Service Providers Other Than Certain Financial Institutions.--
``(1) In general.--In the event''; and
(2) by adding at the end the following new paragraph:
``(2) State and local government electronic benefit transfer programs.--
``(A) Exemption generally.--The disclosures, protections, responsibilities, and remedies established under this title, and any regulation prescribed or order issued by the Board in accordance with this title, shall not apply to any electronic benefit transfer program established under State or local law or administered by a State or local government.
``(B) Exception for direct deposit into recipient's account.--Subparagraph (A) shall not apply with respect to any electronic funds transfer under an electronic benefit transfer program for deposits directly into a consumer account held by the recipient of the benefit.
``(C) Rule of construction.--No provision of this paragraph may be construed as--
``(i) affecting or altering the protections otherwise applicable with respect to benefits established by Federal, State, or local law; or
``(ii) otherwise superseding the application of any State or local law.
``(D) Electronic benefit transfer program defined.--For purposes of this paragraph, the term `electronic benefit transfer program'--
``(i) means a program under which a government agency distributes needs-tested benefits by establishing accounts to be accessed by recipients electronically, such as through automated teller machines, or point-of-sale terminals; and
``(ii) does not include employment-related payments, including salaries and pension, retirement, or unemployment benefits established by Federal, State, or local governments.''.
SEC. 908. REDUCTION OF BLOCK GRANTS TO STATES FOR SOCIAL
SERVICES; USE OF VOUCHERS.
(a) Reduction of Grants.--Section 2003(c) of the Social Security Act (42 U.S.C. 1397b(c)) is amended--
(1) by striking ``and'' at the end of paragraph (4); and
(2) by striking paragraph (5) and inserting the following:
``(5) $2,800,000,000 for each of the fiscal years 1990 through 1995;
``(6) $2,381,000,000 for the fiscal year 1996;
``(7) $2,380,000,000 for each of the fiscal years 1997 through 2002; and
``(8) $2,800,000,000 for the fiscal year 2003 and each succeeding fiscal year.''.
(b) Authority to Use Vouchers.--Section 2002 of such Act
(42 U.S.C. 1937a) is amended by adding at the end the following:
``(f) A State may use funds provided under this title to provide vouchers, for services directed at the goals set forth in section 2001, to families, including--
``(1) families who have become ineligible for assistance under a State program funded under part A of title IV by reason of a durational limit on the provision of such assistance; and
``(2) families denied cash assistance under the State program funded under part A of title IV for a child who is born to a member of the family who is--
``(A) a recipient of assistance under the program; or
``(B) a person who received such assistance at any time during the 10-month period ending with the birth of the child.''.
SEC. 909. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT ON
BASIS OF DISQUALIFIED INCOME.
(a) Reduction in Disqualified Income Threshold.--
(1) In general.--Paragraph (1) of section 32(i) of the Internal Revenue Code of 1986 (relating to denial of credit for individuals having excessive investment income) is amended by striking ``$2,350'' and inserting ``$2,200''.
(2) Adjustment for inflation.--Subsection (j) of section 32 of such Code is amended to read as follows:
``(j) Inflation Adjustments.--
``(1) In general.--In the case of any taxable year beginning after 1996, each of the dollar amounts in subsections (b)(2) and (i)(1) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 1995' for `calendar year 1992' in subparagraph (B) thereof.
``(2) Rounding.--
``(A) In general.--If any dollar amount in subsection
(b)(2), after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.
``(B) Disqualified income threshold amount.--If the dollar amount in subsection (i)(1), after being increased under paragraph (1), is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.''.
(3) Conforming amendment.--Paragraph (2) of section 32(b) of such Code is amended to read as follows:
``(2) Amounts.--The earned income amount and the phaseout amount shall be determined as follows:
In the case of an eligible individual with: The earned income amount is: The phaseout amount is:
1 qualifying child................ $6,330 $11,610 2 or more qualifying children..... $8,890 $11,610 No qualifying children............ $4,220 $ 5,280''.
(b) Definition of Disqualified Income.--Paragraph (2) of section 32(i) of such Code (defining disqualified income) is amended by striking ``and'' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting a comma, and by adding at the end the following new subparagraphs:
``(D) the capital gain net income (as defined in section 1222) of the taxpayer for such taxable year, and
``(E) the excess (if any) of--
``(i) the aggregate income from all passive activities for the taxable year (determined without regard to any amount included in earned income under subsection (c)(2) or described in a preceding subparagraph), over
``(ii) the aggregate losses from all passive activities for the taxable year (as so determined).For purposes of subparagraph (E), the term `passive activity' has the meaning given such term by section 469.''.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1995.
(2) Advance payment individuals.--In the case of any individual who on or before June 26, 1996, has in effect an earned income eligibility certificate for the individual's taxable year beginning in 1996, the amendments made by this section shall apply to taxable years beginning after December 31, 1996.
SEC. 910. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION
FOR EARNED INCOME CREDIT.
(a) In General.--Subsections (a)(2)(B), (c)(1)(C), and
(f)(2)(B) of section 32 of the Internal Revenue Code of 1986 are each amended by striking ``adjusted gross income'' each place it appears and inserting ``modified adjusted gross income''.
(b) Modified Adjusted Gross Income Defined.--Section 32(c) of such Code (relating to definitions and special rules) is amended by adding at the end the following new paragraph:
``(5) Modified adjusted gross income.--
``(A) In general.--The term `modified adjusted gross income' means adjusted gross income determined without regard to the amounts described in subparagraph (B).
``(B) Certain amounts disregarded.--An amount is described in this subparagraph if it is--
``(i) the amount of losses from sales or exchanges of capital assets in excess of gains from such sales or exchanges to the extent such amount does not exceed the amount under section 1211(b)(1),
``(ii) the net loss from estates and trusts,
``(iii) the excess (if any) of amounts described in subsection (i)(2)(C)(ii) over the amounts described in subsection (i)(2)(C)(i) (relating to nonbusiness rents and royalties), and
``(iv) 50 percent of the net loss from the carrying on of trades or businesses, computed separately with respect to--
``(I) trades or businesses (other than farming) conducted as sole proprietorships,
``(II) trades or businesses of farming conducted as sole proprietorships, and
``(III) other trades or businesses.
For purposes of clause (iv), there shall not be taken into account items which are attributable to a trade or business which consists of the performance of services by the taxpayer as an employee.''.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1995.
(2) Advance payment individuals.--In the case of any individual who on or before June 26, 1996, has in effect an earned income eligibility certificate for the individual's taxable year beginning in 1996, the amendments made by this section shall apply to taxable years beginning after December 31, 1996.
SEC. 911. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC
ASSISTANCE PROGRAMS.
(a) In General.--If an individual's benefits under a Federal, State, or local law relating to a means-tested welfare or a public assistance program are reduced because of an act of fraud by the individual under the law or program, the individual may not, for the duration of the reduction, receive an increased benefit under any other means-tested welfare or public assistance program for which Federal funds are appropriated as a result of a decrease in the income of the individual (determined under the applicable program) attributable to such reduction.
(b) Welfare or Public Assistance Programs for Which Federal Funds Are Appropriated.--For purposes of subsection (a), the term ``means-tested welfare or public assistance program for which Federal funds are appropriated'' includes the food stamp program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any program of public or assisted housing under title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), and any State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).
SEC. 912. ABSTINENCE EDUCATION.
Title V of the Social Security Act (42 U.S.C. 701 et seq.) is amended by adding at the end the following section:
``separate program for abstinence education
``Sec. 510. (a) For the purpose described in subsection
(b), the Secretary shall, for fiscal year 1998 and each subsequent fiscal year, allot to each State which has transmitted an application for the fiscal year under section 505(a) an amount equal to the product of--
``(1) the amount appropriated in subsection (d) for the fiscal year; and
``(2) the percentage determined for the State under section 502(c)(1)(B)(ii).
``(b)(1) The purpose of an allotment under subsection (a) to a State is to enable the State to provide abstinence education, and at the option of the State, where appropriate, mentoring, counseling, and adult supervision to promote abstinence from sexual activity, with a focus on those groups which are most likely to bear children out-of-wedlock.
``(2) For purposes of this section, the term `abstinence education' means an educational or motivational program which--
``(A) has as its exclusive purpose, teaching the social, psychological, and health gains to be realized by abstaining from sexual activity;
``(B) teaches abstinence from sexual activity outside marriage as the expected standard for all school age children;
``(C) teaches that abstinence from sexual activity is the only certain way to avoid out-of-wedlock pregnancy, sexually transmitted diseases, and other associated health problems;
``(D) teaches that a mutually faithful monogamous relationship in context of marriage is the expected standard of human sexual activity;
``(E) teaches that sexual activity outside of the context of marriage is likely to have harmful psychological and physical effects;
``(F) teaches that bearing children out-of-wedlock is likely to have harmful consequences for the child, the child's parents, and society;
``(G) teaches young people how to reject sexual advances and how alcohol and drug use increases vulnerability to sexual advances; and
``(H) teaches the importance of attaining self-sufficiency before engaging in sexual activity.
``(c)(1) Sections 503, 507, and 508 apply to allotments under subsection (a) to the same extent and in the same manner as such sections apply to allotments under section 502(c).
``(2) Sections 505 and 506 apply to allotments under subsection (a) to the extent determined by the Secretary to be appropriate.
``(d) For the purpose of allotments under subsection (a), there is appropriated, out of any money in the Treasury not otherwise appropriated, an additional $50,000,000 for each of the fiscal years 1998 through 2002. The appropriation under the preceding sentence for a fiscal year is made on October 1 of the fiscal year.''.
SEC. 913. CHANGE IN REFERENCE.
Effective January 1, 1997, the third sentence of section 1902(a) and section 1908(e)(1) of the Social Security Act (42 U.S.C. 1396a(a), 1396g-1(e)(1)) are each amended by striking
``The First Church of Christ, Scientist, Boston, Massachusetts'' and inserting ``The Commission for Accreditation of Christian Science Nursing Organizations/Facilities, Inc.'' each place it appears.
And the Senate agree to the same.
John R. Kasich,Bill Archer,William F. Goodling,Pat Roberts,Tom Bliley,E. Clay Shaw, Jr.,James Talent,Jim Nussle,Tim Hutchinson,Jim McCrery,Michael Bilirakis,Lamar Smith,Nancy L. Johnson,Dave Camp,Gary A. Franks,
``Duke'' Cunningham,Mike Castle,Bob Goodlatte,
Managers on the Part of the House.
From the Committee on the Budget:Pete V. Domenici,D. Nickles,Phil Gramm,Jim Exon,From the Committee on Agriculture, Nutrition, and Forestry:Richard G. Lugar,Jesse Helms,Thad Cochran,Rick Santorum,From the Committee on Finance:William V. Roth, Jr.,John H. Chafee,Chuck Grassley,Orrin Hatch,Al Simpson,From the Committee on Labor and Human Resources:Nancy Landon Kassebaum,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at the conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 3734) to provide for reconciliation pursuant to section 201(a)(1) of the concurrent resolution on the budget for fiscal year 1997, submit the following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and recommended in the accompanying conference report:
The Senate amendment struck all of the House bill after the enacting clause and inserted a substitute text.
The House recedes from its disagreement to the amendment of the Senate with an amendment that is a substitute for the House bill and the Senate amendment. The differences between the House bill, the Senate amendment, and the substitute agreed to in conference are noted below, except for clerical corrections, conforming changes made necessary by agreements reached by the conferees, and minor drafting and clerical changes.
EXPLANATION OF THE CONFERENCE AGREEMENT
Principal Components of the Conference Agreement
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 puts in place the most fundamental reform of welfare since the program's inception. It promotes work over welfare and self-reliance over dependency, thereby showing true compassion for those in America who need a helping hand, not a handout. It takes the historic step of eliminating a Federal entitlement program--Aid to Families with Dependent Children--and replacing it with a block grant that restores the States' fundamental role in assisting needy families. It makes substantial reforms in the Food Stamp Program, cracking down on fraud and abuse and applying tough work standards. It reforms the Supplemental Security Income
[SSI] disability program to strengthen eligibility requirements and eliminating incentives for coaching children to misbehave so they can qualify for benefits. It makes sweeping reforms relating to benefits for noncitizens, strengthening the principle that immigrants come to America to work, not to collect welfare benefits.
The legislation does not abandon those Americans who truly need a helping hand. It retains protections for those who experience genuine and intractable hardship. Above all, it recognizes the vulnerability of America's children. It guarantees that they will continue to receive the support they need. Indeed, by discouraging illegitimacy and promoting stable families, this bill vastly improves the prospects of children in welfare families. But for most, welfare should mean temporary assistance for those striving to return to self-sufficiency.
The legislation is the first of three reconciliation bills called for in the reconciliation directives contained in the fiscal year 1997 budget resolution (H. Con. Res. 178). The measure will slow the growth of Federal welfare spending, but still maintain sufficient increases to protect vulnerable populations. According to preliminary estimates, welfare spending would grow from approximately $83 billion this year to about $107 billion in 2002, excluding the effects of Earned Income Credit [EIC] outlays. When EIC outlays are included, the preliminary estimates show welfare spending growing from about $99 billion this year to roughly $128 billion in 2002. The Federal Government still will spend nearly $600 billion on welfare programs not counting the EIC, and nearly $700 billion when the EIC is included. Either way, when compared with Federal spending projections for the current welfare program, this legislation will reduce the Federal budget deficit by about $55 billion to $56 billion over 6 years.
The importance of these budgetary effects is matched by the historic transformation of the welfare program embraced in this legislation. This measure rests on five principles that are the pillars of the welfare reform strategy in the 104th Congress:
Welfare Should Not Be a Way of Life. The legislation assures that welfare will be a helping hand, not a lifetime handout, by imposing a 5-year lifetime limit on benefits
(although as many as 20 percent of families may be allowed exceptions for conditions of hardship).
Work, Not Welfare. For the first time ever, able-bodied welfare recipients will be required to work for their benefits. At least one person in every family must be working within 2 years after receiving welfare or lose benefits, and States are required to have at least half of their single-parent welfare recipients working by 2002.
No More Welfare for Noncitizens and Felons. Most welfare
(except emergency benefits) ends for most non-citizens during their first 5 years in the United States. Exceptions are made for refugees, persons who have worked and paid taxes in the United States for 10 years, and those who have served in the U.S. military. States will have the option of denying Medicaid eligibility to non-citizens who enter the United States after enactment. The legislation also terminates benefits for fugitive felons fleeing from prosecution or imprisonment or violating parole, and offers financial incentives to local corrections authorities to report persons incarcerated in their jails who are improperly receiving welfare checks.
Power and Flexibility to the States. The best welfare solutions come from those closest to the problems--not from bureaucrats in Washington. The legislation creates broad cash welfare and child care block grants providing maximum flexibility so that States can reform welfare in ways that are appropriate for them, and can move families into jobs.
Encouraging Personal Responsibility to Halt Rising Illegitimacy Rates. As a result of the current welfare system, which discourages two-parent families, today's illegitimacy rate among welfare families is almost 50 percent and is rising. This legislation seeks to reverse the trend by boosting efforts to establish paternity and make fathers pay child support. As an added incentive, States that reduce out-of-wedlock births will receive added cash grants.
This legislation reforms welfare to make it more consistent with fundamental American values--by rewarding work and self-reliance, encouraging personal responsibility, and restoring a sense of hope in the future.
Title I: Block Grant for Temporary Assistance for Needy Families
1. Findings
Present law
No provision.House bill
Congress finds that marriage is the foundation of a successful society and an essential institution that promotes the interests of children. Promotion of responsible fatherhood and motherhood is integral to successful child-rearing and the well-being of children. It is the sense of Congress that prevention of out-of-wedlock pregnancy and reduction on out-of-wedlock birth are very important government interests and that the policy outlined in the provisions of this title is intended to address the crisis.Senate amendment
Adds that an effective strategy to combat teenage pregnancy must deal with the issue of male responsibility, including statutory rape culpability and prevention. Finds protection of teenage girls from pregnancy as well as predatory sexual behavior to be very important Government interests.Conference agreement
The conference agreement follows the Senate amendment.
2. Reference to the Social Security Act
Present law
No provisionHouse bill
Unless otherwise specified, any reference in this title to an amendment to or repeal of a section or other provision is to the Social Security Act.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
3. block grant to states; purpose
Present law
Title IV-A of the Social Security Act, which provides grants to States for aid and services to needy families with children (AFDC), is designed to encourage care of dependent children in their own homes by enabling States to provide cash aid and services, maintain and strengthen family life, and help parents attain maximum self-support consistent with maintaining parental care and protection.House bill
Block grants for temporary assistance for needy families
(TANF), which replace Title IV-A of the Social Security Act, are established to increase the flexibility of States in operating a program designed to provide assistance to needy families; end dependence on government benefits by promoting job preparation, work and marriage; prevent and reduce the incidence of out-of-wedlock pregnancies; and encourage the formation and maintenance of two-parent families.
This part shall not be interpreted to entitle any individual or family to assistance under any State program funded under this part.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
4. eligible states--state plan requirements
Present law
A State must have an approved State plan for aid and services to needy families containing 43 provisions, ranging from single-agency administration to overpayment recovery rules. State plans explain the aid and services that are offered by the State. Aid is defined as money payments. For most parents without a child under age 3, States must provide education, work, or training under the JOBS program to help needy families with children avoid long-term welfare dependence. Note: work and education requirements of JOBS are subject to two conditions--State resources must permit them and the program must be available in the recipient's political subdivision. To receive Federal funds, States must share in program costs. The Federal share of costs (matching rate) varies among States and is inversely related to the square of State per capita income. For AFDC benefits and child care, the Medicaid matching rate is used. This rate now ranges from 50 percent to 78 percent among States and averages about 55 percent. For JOBS activities, the rate averages 60 percent; for administrative costs, 50 percent. The general JOBS participation rate, which expired September 30, 1995, required 20 percent of employable (nonexempt) adult recipients to participate in education, work, or training under JOBS, in fiscal year 1995. In fiscal year 1996, at least one parent in 60 percent of unemployed-parent families must participate at least 16 hours weekly in an unpaid work experience or other work program. States must restrict disclosure of information to purposes directly connected to administration of the program and to any connected investigation, prosecution, legal proceeding or audit. Each State must offer family planning services to all
``appropriate'' cases, including minors considered sexually active. State may not require acceptance of these services. Regulations require that States determine need and amount of eligibility on an objective and equitable basis.House bill
An ``eligible State'' is a State that, during the 2-year period immediately preceding the fiscal year, has submitted a plan to the Secretary of HHS that the Secretary has found includes a written document describing how the State will:
1. conduct a program, designed to serve all political subdivisions in the State, that provides cash assistance to needy families with (or expecting) children, and that provides parents with work and support services to enable them to become self-sufficient;
2. require a parent or a caretaker receiving assistance to engage in work as defined by the State once the parent or caretaker has received assistance for 24 months (whether or not consecutive) or earlier;
3. ensure that parents and caretakers engage in work activities as described below;
4. take such reasonable steps as the State deems necessary to restrict the use and disclosure of information about recipients of assistance attributable to funds provided by the Federal government.
5. no provision. (See purpose above.)
Further, the document must:
6. indicate whether the State intends to treat families moving into the State differently; and, if so, how.
7. indicate whether it intends to aid noncitizens.
8. set forth objective criteria for delivery of benefits and determinations of eligibility, and for fair and equitable treatment, including an explanation of how it will provide opportunities for adversely affected recipients to be heard in a State administrative or appeal process;
9. no provision;
10. no provision;
11. no provision.Senate amendment
1. Same.
2. Similar provision.
3. Same.
4. Same.
5. Establish goals and take action to prevent and reduce the incidence of pregnancies outside marriage, and establish numerical goals for reducing the proportion of births out of wedlock for calendar years 1996 through 2005.
Further, the document must:
6. Same.
7. Same.
8. outline how the State intends to determine, on an objective and equitable basis, the needs of and amount of aid to be provided to needy families; and, except as allowed for incoming families and noncitizens (items 6 and 7) to treat families of similar needs and circumstances similarly.
9. outline how it will grant opportunity for a fair hearing to anyone adversely affected or whose application is not acted on promptly.
10. require, not later than 1 year after enactment, a parent or caretaker is not engaged in work or exempt from work requirements and who has received assistance for more than 2 months to participate in community service. States may opt out of this requirement by notifying the Secretary.
11. outline how the State will conduct a program, designed to reach States and local law enforcement officials, the education system, and relevant counseling services, that provides education and training on the problem of statutory rape so that teenage pregnancy prevention programs may be expanded to include men.Conference agreement
In general, the conference agreement follows the Senate amendment, except that the Senate recedes on requirements 2, 8, and 9. Requirement 10 is modified to provide that a State may opt out of this requirement by submitting a letter from the Governor to the Secretary.
5. Eligible States--Certifications
Present law
States must have in effect an approved child support program. States must also have an approved plan for foster care and adoption assistance. States must have an income and verification system covering AFDC, Medicaid, unemployment compensation, food stamps, and--in outlying areas--adult cash aid.House bill
State plans must include the following certifications:
1. that the State will operate a child support enforcement program;
2. that the State will operate a child protection program under Title IV-B (child welfare services and family preservation);
3. specifying which State agency or agencies will administer and supervise the State plan, and assurances that local governments and private sector organizations have been consulted and have had an opportunity to submit comments on the plan; and
4. that the State will provide Indians with equitable access to assistance.
5. no provision.
6. no provision.Senate amendment
1. Same.
2. that the State will operate a foster care and adoption assistance program under Title IV-E and ensure medical assistance for the children;
3. Same.
4. Same.
5. that the State has established standards to ensure against fraud and abuse.
6. that the State has established and is enforcing standards and procedures to screen for and identify recipients with a history of domestic violence, will refer them to counseling and supportive services, and will waive program requirements that would make it more difficult for these persons to escape violence.Conference agreement
The conference agreement generally follows the Senate amendment, except that the certification that the State establish and enforce standards and special procedures regarding recipients with a history of domestic violence is made a State option.
6. Eligible States--Public Availability of State Plan Summary
Present law
Federal regulations require that State program manuals and other policy issuances, which reflect the State plan, be maintained in the State office and in each local and district office for examination on regular workdays.House bill
The State shall make available to the public a summary of the State plan.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
7. Grants to States--Family Assistance Grant
Present law
AFDC entitles States to Federal matching funds. Current law provides permanent authority for appropriations without limit for grants to States for AFDC benefits, administration, and AFDC-related child care. Over the years, because of court rulings, AFDC has evolved into an entitlement for qualified individuals to receive cash benefits. In general, States must give AFDC to all persons whose income and resources are below State-set limits if they are in a class or category eligible under Federal rules.House bill
Each eligible State and Territory is entitled to receive a grant from the Secretary for each of 6 fiscal years (1996 through 2001) in an amount equal to the State family assistance grant for the fiscal year.
A State's family assistance grant is equal to the highest of former Federal payments to the State for AFDC benefits, AFDC Administration, Emergency Assistance, and JOBS during
(1) fiscal years 1992 through 1994, on average; (2) fiscal year 1994 plus, under certain circumstances, 85 percent of increased fiscal year 1995 spending for emergency assistance, or (3) fiscal year 1995.
If a State fails to make qualified State expenditures for eligible families under all State programs equal to at least 75 percent of its fiscal year 1994 spending level (or at least 80 percent, if the State fails to meet its mandatory work requirements) for AFDC benefits, AFDC Administration, Emergency Assistance, JOBS, AFDC-related child care, and at-risk child care, its family assistance grant is reduced by the shortfall (see the discussion of penalties below).Senate amendment
Same, except raises required State expenditures to 80 percent of fiscal year 1994 level.Conference agreement
The conference agreement follows the House bill.
8. Grants to States--Grant to Reward States that Reduce Out-of-wedlock
Births
Present law
No provision.House bill
For each fiscal year beginning with 1998, a State's grant amount is increased by 5 or 10 percent if the State
``illegitimacy ratio'' is 1 or 2 percentage points, respectively, lower in that year than its 1995 illegitimacy ratio. Only States in which the rate of abortion falls below the 1995 level are eligible for these additional grants.
The term ``illegitimacy ratio'' means, during a fiscal year, the number of out-of-wedlock births that occurred in the State divided by the number of births. In calculating grants, the Secretary must disregard any difference in illegitimacy ratios or abortion rates attributable to a change in State methods of reporting data.Senate amendment
Follows the House bill, except that for each of 5 fiscal years (1999 through 2003) the Secretary shall make a grant of up to $20 million for each of the 5 States that demonstrate the greatest decrease in out-of-wedlock births during the most recent 2-year period for which the information is available. If fewer than 5 States are eligible, the amount of such grants shall be $25 million.Conference agreement
The conference agreement follows the Senate amendment, with the modification that funds are available between 1999 and 2002.
9. Grants to States--Supplemental Grant for Population Increases and
Low Federal Spending Per Poor Person in Certain States
Present Law
There is no adjustment for population growth. Instead, current law provides unlimited matching funds. When AFDC enrollment climbs, Federal funding automatically rises.House bill
Subject to the eligibility criteria below, each qualifying State (for purposes of this section, the term ``State'' is limited to the 50 States and the District of Columbia) is entitled to receive from the Secretary supplemental grants to assist in making cash welfare payments for 4 years, fiscal years 1997-2000. For fiscal year 1997 the supplemental grant equals 2.5 percent of Federal payments to the qualifying State during fiscal year 1994 for AFDC benefits, AFDC Administration, Emergency Assistance, JOBS and AFDC-related child care. For fiscal years 1998 through 2000, each qualifying State is entitled to receive an amount equal to the supplemental grant for the immediately preceding year plus, if it continues to meet the eligibility criteria below, an annual increase. States that no longer meet the qualification criteria are entitled to receive the prior year's grant without increase. A State is a qualifying State for a fiscal year if average Federal welfare spending per poor person is less than the national average and State population growth exceeds the average for all States. States must qualify during fiscal year 1997 in order to qualify during later years. Certain States (i.e. those in which Federal welfare spending per poor person for fiscal year 1994 was less than 35 percent of the fiscal year 1994 national average or in which population has increased by more than 10 percent from April 1, 1990 to July 1, 1994) are deemed to qualify for supplemental grants in each year between fiscal year 1997 and 2000. A total of $800 million is appropriated for this purpose. If this sum is insufficient for full supplemental grants for all qualifying States, pro rata reductions will be made. (p. 244)Senate amendment
Same except for change in years of possible supplemental grants: fiscal years 1998 through 2001 (instead of 1997 through 2000). States must qualify during fiscal year 1998 in order to do so in later years.Conference agreement
The conference agreement follows the Senate amendment.
10. grants to states--bonus to reward high performance states
Present law
No provision.House bill
Certain ``high performing'' States (i.e. those most successful in achieving the purposes of the block grant program) are entitled to receive additional payments of up to five percent of their State family assistance grant. The formula for measuring State performance shall be developed by the Secretary in consultation with the National Governors' Association and the American Public Welfare Association. A total of $0.5 billion is appropriated for high performance bonuses to States during 5 fiscal years, 1999 through 2003, and average annual performance bonuses are to equal $100 million.
Note.--In addition, required maintenance-of-effort spending is to be reduced for States that achieve performance scores above a threshold set by the Secretary.Senate amendment
Appropriates twice as much money for high performance bonuses--$1 billion--and provides that average annual bonuses are to equal $175 million for fiscal years 1999 through 2002 and $300 million for fiscal year 2003.Conference agreement
The conference agreement follows the Senate amendment regarding funding (total of $1 billion) and follows the House bill regarding the criteria for awarding bonuses to ``high performance'' States. The provision allowing certain high performance States to meet a lower maintenance of effort requirement is dropped (see below).
11. grants to states--contingency fund for state welfare programs
Present law
No provision. Current law provides unlimited matching funds.House bill
To assist States (for purposes of this section, the term
``State'' is limited to the 50 States and the District of Columbia) with increased welfare needs, the House proposal establishes a contingency fund for matching grants and appropriates up to $2 billion over a total of 5 fiscal years
(1997 through 2001) for the fund. Eligible States may receive contingency fund payments totaling up to 20 percent of their annual family assistance grant in any single year (in any single month, States cannot receive more than 1/12 of 20 percent of the annual family assistance grant). States are to submit requests for payment of contingency funds, and the Secretary of the Treasury must make payments to eligible States in the order in which requests are received.
States are eligible to receive payments if State unemployment is high (at or above 6.5 percent in the most recent three-month period) and rising relative to previous years (at least 10 percent above the comparable level in either or both of two preceding years). States also are eligible to receive payments if food stamp participation in the State in the most recent three-month period has risen at least 10 percent from the average monthly number of recipients who would have participated in the comparable quarter of fiscal year 1994 or fiscal year 1995, as determined by the Secretary of Agriculture, if amendments made by this proposal to the food stamp program (including optional food stamp block grant provisions) and to eligibility of noncitizens had been in effect throughout fiscal year 1994 and 1995. States must maintain 100 percent of historic State welfare spending (generally, the amount of State funds spent in fiscal year 1994 for AFDC benefits and administration, AFDC-related child care, at-risk child care, Emergency Assistance, and JOBS) during years in which contingency fund payments are made, or repay an amount reflecting the shortfall. States must share in the cost of contingency funds at their fiscal year 1995 Medicaid matching rate. To smooth their transition to recovery, States that have been receiving contingency fund payments will continue to receive payments for one month after they no longer meet the criteria described above.Senate amendment
Contingency fund of $2 billion covers 4 fiscal years (1998 through 2001) rather than 5. (Because of the Byrd rule, the provision specifying that the CBO baseline is to assume that no grant will be made after 2001 is deleted.)Conference agreement
The conference agreement follows the House bill, with the modification that, notwithstanding section 257(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985, the baseline shall assume that no grant shall be made under this subsection after fiscal year 2001.
12. grants to states--work program grant
Present lawHouse bill
To assist States in meeting the work requirements, eligible States may receive funds from a supplemental grant for the operation of work programs. To be eligible, a State's total expenditures for the fiscal year to meet work participation requirements must exceed its total jobs spending for fiscal year 1994, its TANF work programs must be coordinated with job training programs of Title II of the Job Training Partnership Act (JTPA), or its successor, and the State must need the extra funds to meet TANF work requirements or certify that it intends to exceed participation requirements. The Secretary is to issue regulations for equitable distribution of the grants. For these supplemental grants, $3 billion is authorized for fiscal year 1999 (amounts appropriated are authorized to remain available until spent).Senate amendment
No provision.Conference agreement
The conference agreement follows the Senate amendment.
13. use of grants--in general
Present law
AFDC and JOBS funds are to be used in conformity with State plans. A State may replace a caretaker relative with a protective payee or a guardian or legal representative.House bill
Grants may be used in any manner reasonably calculated to accomplish the purposes of this title, including activities now authorized under Titles IV-A and IV-F of the Social Security Act, or to provide low-income households with assistance in meeting home heating and cooling costs.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
14. use of grants--limitation on administrative spending
Present law
No provision.House bill
States may not use more than 15 percent of the family assistance grant for administrative purposes. However, this cap does not apply to spending for information technology and computerization needed to implement the tracking and monitoring required by this title.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
15. use of grants--recipients moving into the state from another state
Present law
The Social Security Act forbids the Secretary to approve a plan that denies AFDC eligibility to a child unless he has resided in the State for 1 year. The U.S. Supreme Court has invalidated some State laws that withheld aid from persons who had not resided there for at least 1 year. It has not ruled on the question of paying lower amounts of aid for incoming residents.House bill
States may impose program rules and benefit levels of the State from which a family moved if the family has lived in the State for fewer than 12 months.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
16. use of grants--transfer of funds
Present law
No provision.House bill
States may transfer up to 30 percent of funds paid under this section to carry out a State program under Part B (child welfare and family preservation) or Part E (foster care and adoption assistance), the social services block grant, and the child care and development block grant. Of the 30 percent that may be transferred, not more than one-third (that is, not more than 10 percent of the total block grant) may be transferred into the Social Services Block Grant. Amounts transferred to the Social Services Block Grant must be spent on programs and services for children or their families.Senate amendment
States may transfer up to 30 percent of funds only to the child care and development block grant.Conference agreement
The conference agreement follows the House bill, except that the provision allowing transfers into the child protection block grant, which was deleted, is dropped. The conference agreement adds the modification that funds transferred into the Title XX Social Services Block Grant must be spent on families with incomes that do not exceed 200 percent of the poverty level (as determined annually by the Federal Office of Management and Budget).
17. Use of Grants--Reservation of Funds
Present law
No provision.House bill
A State may reserve amounts paid to the State for any fiscal year for the purpose of providing assistance under this part. Reserve funds can be used in any fiscal year.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
18. Use of Grants--Authority to Operate an Employment Placement Program
Present law
Required JOBS services include job development and job placement. The State agency may provide services directly or through arrangements or under contracts with public agencies or private organizations.House bill
States may use a portion of the family assistance grant to make payments (or provide job placement vouchers) to State-approved agencies that provide employment services to recipients of cash aid.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
19. Use of Grants--Implementation of Electronic Benefit Transfer System
Present law
Regulations permit States to receive Federal reimbursement funds (50 percent administrative cost- sharing rate) for operation of electronic benefit systems. To do so, States must receive advance approval from HHS and must comply with automatic data processing rules.House bill
States are encouraged to implement an electronic benefit transfer (EBT) system for providing assistance under the State program funded under this part, and may use the grant for such purpose. (The food stamp title of the bill exempts any EBT system distributing need-tested benefits established or administered by a State from Federal Reserve Board rules known collectively as ``Regulation E.'' The most important Regulation E provision requires that lost/stolen benefits be restored; individuals with accounts are responsible only for the first $50 of any loss, when reported in a timely fashion.)Senate amendment
Same (in Miscellaneous chapter).Conference Agreement
The conference agreement follows the House bill. Conferees also agreed to put comprehensive language on EBT and Regulation E in the food stamps section of this legislation.
20. Use of Grants--Individual Development Accounts
Present law
No provision.House bill
No provision.Senate amendment
Authorizes a State to use TANF funds to fund individual development accounts established by recipients for specified purposes: postsecondary educational expenses, first-home purchase, business capitalization. Terms include: contributions must be from earned income, withdrawals would be allowed only for the above purposes, and Federal benefit programs must disregard funds in the account in determining eligibility and amount of aid.Conference agreement
The conference agreement follows the Senate amendment.
21. Administrative Provisions
Present law
The Secretary pays AFDC funds to the State on a quarterly basis.House bill
The Secretary shall make each grant payable to a State in quarterly installments. The Secretary is to estimate each State's payment on the basis of a report about expected expenditures from the State and to certify to the Secretary of the Treasury the amount estimated, adjusted if needed for overpayments or underpayments for any past quarter. The Secretary must notify States not later than three months in advance of any quarterly payment that will be reduced to reflect payments made to Indian tribes in the State. Under certain circumstances, overpayments to individuals no longer receiving temporary family assistance will be collected from Federal income tax refunds and repaid to affected States.Senate amendment
Same, except the provision regarding ``Collection of State Overpayments to Families from Federal Tax Refunds'' was deleted because of the Byrd rule.Conference agreement
The conference agreement follows the Senate amendment.
22. Federal Loans for State Welfare Programs
Present law
No provision. Instead, current law provides unlimited matching funds.House bill
The proposal establishes a $1.7 billion revolving loan fund from which eligible States may borrow funds to meet the purposes of this title. States that have been penalized for misspending block grant funds as determined by an audit are ineligible for loans. Loans are to mature in 3 years, at the latest, and the cumulative amount of all loans to a State during fiscal years 1997 through 2001 cannot exceed 10 percent of its basic block grant. The interest rate shall equal the current average market yield on outstanding U.S. securities with a comparable remaining maturity length. States face penalties for failing to make timely payments on their loan.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
23. Mandatory Work Requirements--Participation Rate Requirements
Present law
The following minimum percentage of nonexempt AFDC families must participate in JOBS:
Minimum percentage
Fiscal year:
1995...............................................................20
1996 and thereafter (no requirement)................................0
The following minimum percentages of two-parent families receiving cash assistance must participate in specified work activities:
Minimum percentage
Fiscal year:
1995...............................................................50
1996...............................................................60
1997...............................................................75
1998 (last year)...................................................75
1999 and thereafter (no requirement)................................0House bill
The following minimum percentages of all families receiving assistance funded by the family assistance grant (except those with a child under 1, if exempted by the State) must participate in work activities:
Minimum percentage
Fiscal year:
1997...............................................................25
1998...............................................................30
1999...............................................................35
2000...............................................................40
2001...............................................................45
2002 or thereafter 50................................................
The following minimum percentages of two-parent families receiving cash assistance must participate in specified work activities:
Minimum percentage
Fiscal year:
1996...............................................................50
1997...............................................................75
1998...............................................................75
1999 and thereafter 90...............................................Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
24. Mandatory Work Requirements--Calculation of Participation Rates
Present law
Participation rates for all families are calculated for each month. A State's rate, expressed as a percentage, equals the number of actual JOBS participants divided by the number of AFDC recipients required to participate (nonexempt from JOBS). In calculating a State's overall JOBS participation rate, a standard of 20 hours per week is used. The welfare agency is to count as participants the largest number of persons whose combined and averaged hours in JOBS activities during the month equal 20 per week.
Participation rates for two-parent families for a month equal the number of parents who participate divided by the number of principal earners in AFDC-UP families (but excluding families who received aid for two months or less, if one parent engaged in intensive job search).House bill
1. The participation rate (for all families and for two-parent families) for a State for the fiscal year is the average of the participation rates for each month in the fiscal year. The monthly participation rate for a State is a percentage obtained by dividing the number of families receiving assistance that include an adult who is engaged in work by the number of families receiving assistance (not counting those subject to a recent sanction for refusal to work).
2. The required participation rate for a year is to be adjusted down one percentage point for each percentage point that the average monthly caseload is below fiscal year 1995 levels, unless the Secretary finds that the decrease was required by Federal law or results from changes in State eligibility criteria (which must be proved by the Secretary). The Secretary is to prescribe regulations for this adjustment.
3. States have the option of counting individuals receiving assistance under a tribal family assistance plan towards the State work participation requirement.
4. States have the option of not requiring single parents of children under age one to engage in work and may disregard these parents in determining work participation rates.Senate amendment
1. Same.
2. Same.
3. Same.
4. Allows a parent to receive this exemption only for a total of 12 months, whether or not consecutive.Conference agreement
The conference agreement follows the Senate amendment, with a modification. For item 1, the conference agreement includes minor heads of households along with adults in the calculation of State work participation rates (in both the numerator and denominator of the calculation).
25. Mandatory Work Requirements--Optional Individual Responsibility
Plan
Present law
States must make an initial assessment of the educational, child care, and other supportive service needs, and of the skills and employability of each JOBS participant. In consultation with the participant, the agency shall develop an employability plan for the participant, which shall not be considered a contract. After these steps, the State agency may require the participant to negotiate and enter into an agreement that specifies matters such as the participant's obligations, duration of participation, and services to be provided.House bill
States are required to make an initial assessment of the skills, work experience, and employability of each recipient of assisting under the block grant who is over age 17 or has not completed high school or the equivalent, and is not attending secondary school. States may develop individual responsibility plans setting forth employment goals, obligations of the individual, and services the State will provide. In addition to other penalties that may apply, States may reduce assistance to families that include an individual who fails to comply with the terms of such plans.Senate amendment
Requires States to require TANF recipient families to enter into a personal responsibility agreement, as developed by the State. The agreement means a binding contract. It is to include a negotiated individual time limit for benefit eligibility, outline steps the family and State will take to move the family to self-sufficiency, provide for sanctions if the individual fails to sign the agreement or comply with its terms and shall be invalid if the State fails to comply with its terms.Conference agreement
The conference agreement follows the House bill.
26. Mandatory Work Requirements--Engaged in Work
Present law
Not relevant. (As discussed below, required activities in State JOBS programs are education, jobs skills training, job readiness, job development and job placement and two of these four: job search, on-the-job training, work supplementation, and community work experience, or other approved work experience. In general, to be counted as a JOBS participant, a person must be engaged in a JOBS activity for an average of 20 hours weekly.)House bill
To be counted as engaged in work for a month, a recipient must be participating for at least the minimum average number of hours per week shown in the table below in one or more of these activities: unsubsidized employment, subsidized
(private or public) employment, work experience, on-the-job training, job search and job readiness assistance, community service programs, or vocational educational training (12 months maximum).
Minimum average weekly hours
Fiscal year:
1996...............................................................20
1997...............................................................20
1998...............................................................20
1999...............................................................25
2000...............................................................30
Exceptions to the above table: (1) to be considered engaged in work, an adult in a two-parent family must make progress in work activities at least 35 hours per week, with not fewer than 30 hours attributable to the work activities cited above; (2) an individual in job search may be counted as engaged in work for up to 8 weeks, no more than 4 of which may be consecutive; (3) a State may count a single parent with a child under age 11 as engaged in work for a month if the parent works an average of 20 hours weekly in all years
(the hourly minimum does not rise for these parents); (4) not more than 20 percent of adults in all families and in two-parent families determined to be engaged in work in the State for a month may meet the work requirement through participation in vocational educational training; (5) teen parents (under age 20) who head their households are considered to be engaged in work if they maintain satisfactory attendance at secondary school or participate in work-related education for at least the minimum average number of hours in the table; and (6) no provision.Senate amendment
Changes list of work activities by substituting
``educational training (not to exceed 24 months with respect to any individual)'' for ``vocational educational training
(not to exceed 12 months with respect to any individual).''
(Also, as the table below shows, required weekly hours of work rise to 35 in fiscal year 2002 and thereafter.)
Minimum average weekly hours
Fiscal year:
1996...............................................................20
1997...............................................................20
1998...............................................................20
1999...............................................................25
2000...............................................................30
2001...............................................................30
2002 and thereafter................................................35
Exceptions to the above table: (1) an adult in a two-parent family is considered engaged in work if he/she works at least 35 hours weekly, with at least 30 hours attributable to one of the activities cited above, and, if the family receives federally-funded child care, the second parent makes satisfactory progress for at least 20 hours weekly in employment, work experience, on-the-job training, or community service; (2) an individual in job search may be counted as engaged in work for only 4 weeks (12 weeks if the State unemployment rate exceeds the national average); (3) same as House provision; (4) not more than 30 percent of adults in all families and in 2-parent families may meet the work activity requirement through participation in vocational educational training (note: bill language refers to vocational educational training, although references elsewhere are to educational training--see above); (5) teen parents (under age 20) who head their households are considered to be engaged in work if they maintain satisfactory attendance at secondary school or the equivalent during the month or participate in education directly related to employment for at least the minimum average number of hours per week in the table; and (6) a person participating in a community service program may be treated as being engaged in work if she provides child care services to another participant in the community service program for the period of time each week determined by the State.Conference agreement
The conference agreement follows the house bill and the Senate amendment as follows:
First, the conference agreement follows the House bill regarding vocational educational training as a work activity which is creditable for up to 12 months.
Second, the conference agreement follows the House bill regarding the minimum average weekly hours of work required.
Finally, regarding exceptions to the work hour requirements, the conference agreement: (1) follows the Senate amendment on hours of work for adults in a 2-parent family, with the modification exempting the second parent, if such parent is disabled or caring for a severely disabled child; (2) follows the Senate amendment regarding job search, with the modification that a total of 6 weeks is allowed, of which not more than 4 may be consecutive (and, in the case of States in which the unemployment rate is at least 50 percent above the national average, a total of 12 weeks is allowed); in addition an individual may count a partial week of job search as a full week of work limited to one occasion; (3) follows the House bill in permitting States to count certain single parents as engaged in work if the parent works for 20 hours per week, with the modification that the parent's child must be under age 6 (however, the conference agreement follows the Senate amendment regarding the requirement that States may not disregard such an adult in calculating their work rates); (4) follows the House bill regarding the limitation on the number of parents countable if in vocational education; (5) follows the Senate amendment on teen parents and education, with the modification that teen parents meeting the work requirement in this way are counted towards the 20 percent limitation on vocational education
(see above); and (6) follows the Senate amendment on persons providing child care, with the clarification that such hours spent providing child care count towards fulfillment of the hours of work required.
27. Mandatory Work Requirements--Work Activities Defined
Present law
JOBS programs must include specified educational activities
(high school or equivalent education, basic and remedial education, and education for those with limited English proficiency); job skills training, job readiness activities, and job development and placement. In addition, States must offer at least two of these four items: group and individual job search; on-the-job training; work supplementation or community work experience program (or another work experience program approved by the HHS Secretary). The State also may offer postsecondary education in ``appropriate'' cases.House bill
``Work activities'' are defined as unsubsidized employment, subsidized private sector employment, subsidized public sector employment, work experience if sufficient private sector employment is not available, on-the-job training, job search and job readiness assistance, community service programs, vocational educational training (1 year maximum), jobs skills training directly related to employment, education directly related to employment in the case of a recipient who lacks a high school diploma or equivalency, and satisfactory attendance at secondary school for a recipient who has not completed high school.Senate amendment
Same as House provision except for last two items in list of ``work activities.'' These activities (work-related education and secondary school attendance) are creditable as
``work'' only for persons under age 20.Conference agreement
The conference agreement follows the House bill, with the modification to include the provision of child care services to an individual who is participating in a community service program.
28. Mandatory Work Requirements--Penalties Against Individuals
Present law
For failure to meet JOBS requirements without good cause, AFDC benefits are denied to the offending parent and payments for the children are made to a third party. In a two-parent family, failure of one parent to meet JOBS requirements without good cause results in denial of benefits for both parents (unless the other parent participates) and third-party payment on behalf of the children. Repeated failures to comply bring potentially longer penalty periods.House bill
If an adult recipient refuses to engage in required work, the State shall reduce the amount of assistance to the family pro rata (or more, at State option) with respect to the period of work refusal, or shall discontinue aid, subject to good cause and other exceptions that the State may establish. In addition, if block grant recipients fail to meet any of the work requirements, States may terminate their coverage under the Medicaid program. A State may not penalize a single parent caring for a child under age eleven for refusal to work if the parent proves a demonstrated inability to obtain needed child care for specified reasons.Senate amendment
Same as House provision except that Senate does not provide that States may end Medicaid for block grant recipients who fail to meet any of the work requirements in the act.Conference agreement
The conference agreement follows the House bill with the modification that, if benefits are terminated under the work requirements of section 407 of this part, States may end Medicaid eligibility for adults made ineligible, but not children in the family. In addition, modifies the House bill and Senate amendment so that States may not penalize a single parent caring for a child under age 6 for refusal to work if the parent proves a demonstrated inability to obtain needed child care for specified reasons.
29. Mandatory Work Requirements--Nondisplacement in Work Activities
Present law
Under JOBS law, no work assignment may displace any currently employed worker or position (including partial displacement such as a reduction in hours of non-overtime work, wages, or employment benefits). Nor may a JOBS participant fill a position vacant because of layoff or because the employer has reduced the workforce with the effect of creating a position to be subsidized.House bill
In general, an adult in a family receiving IV-A assistance may fill a work vacancy. However, no adult in a Title IV-A work activity shall be employed or assigned when another person is on layoff from the same or a substantially equivalent job, or when the employer has terminated the employment of a regular worker or otherwise caused an involuntary reduction of its workforce in order to fill the vacancy thus created with a subsidized worker. This provision does not preempt or supersede any State or local law providing greater protection from displacement.Senate amendment
In general, an adult in a family receiving IV-A assistance may fill a work vacancy. However, no IV-A work assignment may displace a currently employed worker (including any partial displacement such as a reduction in hours of overtime work, wages, or employment benefits), impair an existing contract or collective bargaining agreement, or result in ending a regular worker's employment. States must establish and maintain a grievance procedure, including hearing opportunity, for resolving complaints and providing remedies for violations. This section does not preempt or supersede any State or local law providing greater protection from displacement.Conference agreement
The conference agreement follows the House bill, with the modification to include a requirement that States establish a grievance procedure for workers adversely affected pursuant to this section.
30. Mandatory Work Requirements--Sense of the Congress that State
Should Place a Priority on Placing Certain Parents in Work
Present law
As a condition of receiving full matching funds, a State must use 55 percent of its JOBS spending for these target groups: persons who have received aid for any 36 of the 60 preceding months, parents under age 24 who failed to complete high school, and parents whose youngest child is within 2 years of becoming ineligible for aid (i.e., whose youngest child is, usually, at least 16).House bill
It is the sense of Congress that States should give highest priority to requiring adults in two-parent families and adults in single-parent families with children that are older than preschool age to engage in work activities.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
31. Mandatory Work Requirements--Sense of the Congress that States Should Impose Certain Requirements on Noncustodial, Nonsupporting Minor
Parents
Present law
No provision.House bill
It is the sense of the Congress that States should require noncustodial, nonsupporting parents who have not attained 18 years of age to fulfill community work obligations and attend appropriate parenting or money management classes after school.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
32. Mandatory Work Requirements--Review of Implementation of State Work
Programs
Present law
No provision.House bill
During fiscal year 1999, the Committees on Ways and Means and Finance must hold hearings to review the implementation by States of the mandatory work requirements, and may introduce legislation to remedy any problems found.Senate amendment
No provision.Conference agreement
The conference agreement follows the House bill.
33. Prohibitions; Requirements--Families with No Minor Children
Present law
Only families with dependent children (under age 18, or 19 at State option if the child is still in secondary school or in the equivalent level of vocational or technical training) can participate in the program.House bill
Only families with a minor child (who resides with a custodial parent or other adult caretaker relative of the child) or a pregnant individual may receive assistance under this part.Senate amendment
Adds prohibition against assistance to a family in which an adult already has received 60 months of assistance attributable to Federal funds. See also item 41.Conference agreement
The conference agreement follows the House bill and the Senate amendment. Conferees note that the 5-year time limit on benefits applies only to benefits provided using Temporary Assistance for Needy Families (TANF) Block Grant funds. Other Federal funds, such as Title XX Social Services Block Grants and support through the expanded Child Care and Development Block Grant, are not restricted for families that have already received 5 years of TANF support.
34. Prohibitions; Requirements--No Additional Cash Assistance for
Children Born to Families Receiving Assistance
Present law
No provision.House bill
1. Block grant funds may not be used to provide cash benefits for a child born to a recipient of cash welfare benefits or an individual who received cash benefits at any time during the 10-month period ending with the birth of the child. This prohibition does not apply to children born as a result of rape or incest. Block grant funds can be used to provide noncash (voucher) assistance for particular goods and services suitable for the care of the child.
2. States that pass a law specifically exempting their own programs from this national rule may use Federal funds to increase cash benefits for families that have additional children while on welfare.
3. If a State has a family cap policy under a section 1115 waiver on the date of enactment, it may continue terms of those family caps.Senate amendment
1. Same family cap provision except that Senate amendment does not explicitly provide for use of block grant funds to give voucher assistance for care of the excluded child. (This provision was deleted because of the Byrd rule.)
2. Same.
3. Same provision, but adds permission for States to continue terms of family caps resulting from State law passed within 2 years of enactment.Conference agreement
This provision was deleted due to the Byrd rule.
35. Prohibitions; Requirements--Noncooperation in Child Support
Present law
As a condition of eligibility, applicants or recipients must cooperate in establishing paternity of a child born out-of-wedlock, in obtaining support payments, and in identifying any third party who may be liable to pay for medical care and services for the child.House bill
The State must stop paying the parent's share of the family welfare benefit if the parent fails to cooperate in establishing paternity, or in establishing, modifying or enforcing a child support order, and the individual does not qualify for a good cause or other exception; the State may deny benefits to the entire family for the parent's failure to cooperate.Senate amendment
If a parent fails to cooperate in establishing paternity or in establishing, modifying, or enforcing a child support order, and the individual does not qualify for a good cause or other exception, the State shall reduce the family's benefit by at least 25 percent. It may reduce the benefit to zero.Conference agreement
The conference agreement follows the Senate amendment.
36. Prohibitions; Requirements--Failure to Assign Certain Support
Rights to the State
Present law
As a condition of AFDC eligibility, applicants must assign child support and spousal support rights to the State.House bill
Block grant funds may not be used to provide cash benefits to a family with an adult who has not assigned to the State rights to child support or spousal support.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
37. Prohibitions; Requirements--School Attendance Required for Adults without a Diploma
Present law
No provision.House bill
No provision.Senate amendment
Prohibits any TANF-funded assistance to the family of an adult older than 20 but younger than 51 who has received IV-A aid or food stamps if the person does not have, or is not working toward, a secondary school diploma or its equivalent. An exception is made for a person determined to lack the capacity to successfully complete the course of study.Conference agreement
The conference agreement follows the Senate amendment.
38. Prohibitions; Requirements--School Attendance Required for Minor
Children
Present law
No provision.House bill
No provision.Senate amendment
Prohibits any TANF-funded aid to a family that includes an adult who has received IV-A benefits or food stamps unless the adult ensures that the family's minor dependent children attend school as required by the law of their State.
Provides that a State shall not be prohibited from sanctioning a family with an adult who fails to meet this requirement.Conference agreement
The conference agreement follows the Senate amendment.
39. Prohibitions; Requirements--Unwed Minor Parent Not Attending High
School or Not Living with an Adult
Present law
States may require unwed parents under age 18 to live with an adult in order to receive AFDC. They must require a custodial parent who is under 20 years old and who has not completed high school to participate in an educational activity under the JOBS program.House bill
States have the option of using Federal funds to provide cash welfare payments to unmarried minors only under specified conditions. States may not use Federal family assistance grant funds to provide assistance to unwed parents under age 18 who have a child at least 12 weeks of age and did not complete high school unless they attend high school or an alternative educational or training program. States may not use Federal funds to provide assistance to unmarried parents under age 18 unless they live with a parent or in another adult-supervised setting; States may, under certain circumstances, use Federal funds to assist teen parents in locating and providing payment for a second chance home or other adult-supervised living arrangement.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
40. Prohibitions; Requirements--Medical Services
Present law
States must assure that family planning services are offered to all AFDC recipients who request them. (The Secretary is to reduce AFDC payments by 1 percent for failure to offer and provide family planning services to those requesting them.)House bill
Federal family assistance grants may not be used to provide medical services; Federal funds may, however, be used to provide prepregnancy family planning services.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
41. Prohibitions; Requirements--Time-Limited Benefits
Present law
No provision.House bill
Federal family assistance grants may not be used to provide assistance for the family of a person who has received block grant aid for 60 months (or fewer, at State option), whether or not consecutive. States may give hardship exemptions in a fiscal year to up to 20 percent of their average monthly caseload, including individuals who have been battered or subjected to sexual abuse (but States are not required to exempt these persons). When considering an individual's length of stay on welfare, States are to count only time during which the individual received assistance as the head of household or as the spouse of the household head. Any State funds spent to aid persons no longer eligible for TANF after 5 years of benefits may be counted toward the maintenance-of-effort requirement.
This part shall not be interpreted to prohibit a State from using State funds not originating with the Federal government to aid families that lose eligibility for the block grant program because of the 5-year time limit.Senate amendment
Same, except adds an exemption from the time limit for persons who live on a reservation of an Indian tribe with a population of at least 1,000 persons and with at least 50 percent of the adult population not employed.Conference agreement
The conference agreement follows the House bill and the Senate amendment on the time limit policy, and includes the Senate provision on exceptions for certain Indian populations and the House provision specifying States' authority to use State and local funds to provide support, including cash assistance, after 5 years. (For a description of other Federal funds that may be provided such families, see the conference agreement description of item 33 above.)
42. Prohibitions; Requirements--Fraudulent Misrepresentation of
Residence in Two States
Present law
No provision.House bill
Any person convicted in Federal court or State court of having fraudulently misrepresented residence in order to obtain benefits or services in two or more States from the family assistance grant, Medicaid, Food Stamps, or Supplemental Security Income programs is ineligible for family assistance grant aid for 10 years.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
43. Prohibitions; Requirements--Fugitive Felons and Probation and
Parole Violators
Present law
States may provide a recipient's address to a State or local law enforcement officer who furnishes the recipient's name and social security number and demonstrates that the recipient is a fugitive felon and that the officer's official duties include locating or apprehending the felon.House bill
No assistance may be provided to an individual who is fleeing to avoid prosecution, custody or confinement after conviction for a crime (or an attempt to commit a crime) that is a felony (or, in New Jersey, a high misdemeanor), or who violates probation or parole imposed under Federal or State law.
Any safeguards established by the State against use or disclosure of information about individual recipients shall not prevent the agency, under certain conditions, from providing the address of a recipient to a law enforcement officer who is pursuing a fugitive felon or parole or probation violator. This provision applies also to a recipient sought by an officer not because he is a fugitive but because he has information that the officer says is necessary for his official duties. In both cases the officer must notify the State that location or apprehension of the recipient is within his official duties.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
44. Prohibitions; Requirements--Minor Children Absent From Home for a
Significant Period
Present law
Regulations allow benefits to continue for children who are
``temporarily absent'' from home.House bill
No assistance may be provided for a minor child who has been absent from the home for 45 consecutive days or, at State option, between 30 and 180 consecutive days. States may establish a good cause exemption as long as it is detailed in the State report to the Secretary. No assistance can be given to a parent or caretaker who fails to report a missing minor child within five days of the time when it is clear (to the parent) that the child will be absent for the specified time.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
45. Prohibitions; Requirements--Medical Assistance Required to be
Provided for Families Becoming Ineligible for Assistance Due to
Increased Earnings or Collection of Child Support
Present law
States must continue Medicaid (or pay premiums for employer-provided health insurance) for 6 months to a family that loses AFDC eligibility because of hours of, or income from, work of the caretaker relative, or because of loss of the earned income disregard after 4 months of work. States must offer an additional 6 months of medical assistance, for which it may require a premium payment if the family's income after child care expenses is above the poverty guideline. For extended medical aid, families must submit specified reports. States must continue Medicaid for 4 months to those who lose AFDC because of increased child or spousal support.House bill
States must provide medical assistance for 1 year to families that become ineligible for block grant assistance because of increased earnings, provided they received cash block grant assistance in at least 3 of the 6 months before the month in which they became ineligible and their income is below the poverty line. For purposes of determining family income to compare with the Federal poverty line, States have the authority to set their own definition of income except that income from the Earned Income Tax Credit must be disregarded. States also must provide medical assistance for 4 months to families that leave welfare (after being enrolled for at least 3 of the previous 6 months) because of increased income from child support or spousal support.Senate amendment
Same as current law.Conference agreement
The conference agreement follows the House bill and the Senate amendment, with the modification that income restrictions conform to current law. Transitional Medicaid coverage is extended through the life of the block grant.
46. Prohibitions; Requirements--Medicaid
Present law
States must provide Medicaid to all AFDC recipients and to some AFDC-related groups who do not receive cash aid. Examples include persons who do not receive a monthly payment because the amount would be below $10 (Federal law prohibits payments this small) and persons whose payments are reduced to zero in order to recover previous overpayments.
States must continue Medicaid for specified periods for certain families who lose AFDC benefits. If the family loses AFDC benefits because of increased earnings or hours of employment, Medicaid coverage must be extended for 12 months.
(During the second 6 months a premium may be imposed, the scope of benefits may be limited, or alternate delivery systems may be used.) If the family loses AFDC because of increased child or spousal support, coverage must be extended for 4 months. States are also required to furnish Medicaid to certain two-parent families whose principal earner is unemployed and who are not receiving cash assistance because the State has set a time limit on their AFDC coverage.House bill
States must provide medical assistance to persons who would be eligible for AFDC cash benefits (under terms of July 16, 1996) if that program still were in effect.
A State may increase the AFDC income standard above that of July 16, 1996 by the percentage increase in the consumer price index for all urban consumers over the same period.Senate amendment
States must provide medical assistance to persons who would be eligible for AFDC (under terms of July 1, 1996) as if that program were still in effect. Simplifies standards to make it easier for States to administer. States would have the option to: (1) lower their income standard, but not below those in effect on May 1, 1988; and (2) use income and resource standards and methodologies that are less restrictive than those in effect on July 1, 1996.
In order to provide States additional flexibility, States may use 1 application form and may administer the program through either its title IV agency or its title XIX agency.
Families would receive transitional Medicaid benefits as under current law.Conference agreement
The conference agreement follows the House bill and the Senate amendment, with the modification that States must retain the income and resource standards they had for AFDC eligibility on July 16, 1996. States may terminate Medicaid eligibility for an adult who is terminated from TANF because of failure to work. Conferees are concerned that the conference agreement may require States to maintain a dual-eligibility determination system. Conferees, however, lacked adequate information to determine the true nature and extent of this problem. Thus, conferees recommend that the Committees on Ways and Means, Commerce, and Finance conduct hearings in the next Congress to carefully examine this problem. If the committees determine that the dual-eligibility system does in fact impose additional administrative costs on the States, Congress should consider Federal-State cost-sharing schemes and other legislative solutions. In the meantime, conferees are establishing a fund of $.5 billion in entitlement spending that will be distributed among States that experience additional administrative expenses directly attributable to conducting a dual-eligibility system.
47. Prohibitions; Requirements--State Disregard of Income Security
Payments
Present law
AFDC benefits may not be paid to a recipient of old-age assistance (predecessor to Supplemental Security Income (SSI) and now available only in Puerto Rico, Guam, and the U.S. Virgin Islands), SSI, or AFDC foster care payments.House bill
This provision allows States to disregard payments from old age and survivors' insurance (social security), disability insurance, old-age assistance, foster care, and Supplemental Security Income in determining the amount of block grant cash assistance to be provided to a family.Senate amendment
No provision.Conference agreement
The conference agreement follows the Senate amendment.
48. Prohibitions; Requirements--Nondiscrimination
Present law
No explicit provision in current AFDC/JOBS law.House bill
No provision.Senate amendment
States that have any program or activity that receives block grant funds for Temporary Assistance for Needy Families shall be subject to enforcement authorized under the Age Discrimination Act of 1975, the Rehabilitation Act of 1973
(sec. 504), and the Civil Rights Act of 1964 (Title VI).Conference agreement
The conference agreement follows the Senate amendment.
49. Prohibitions; Requirements--Denial of Benefits for Certain Drug-
Related Convictions
Present law
No explicit provision.House bill
No provision.Senate amendment
An individual convicted under Federal or State law of any crime related to illegal possession, use, or distribution of a drug is ineligible for any Federal means-tested benefit
(for 5 years for a misdemeanor and for life for a felony). Family members or dependents of the individual are exempted, and individuals made ineligible would continue to be eligible for emergency benefits, including emergency medical services.Conference agreement
The conference agreement follows the Senate amendment, with the modification that only TANF block grant benefits and food stamps are denied and that the denial is only for a felony offense.
50. Penalties--Use of Grant in Violation of This Part
Present law
If the Secretary finds that a State has failed to comply with the State plan, she is to withhold all payments from the State (or limit payments to categories not affected by noncompliance).House bill
Note.--Before imposing any of the penalties below, the Secretary shall notify the State of the violation and allow the State to enter into a corrective action plan (item 60). Also, except for items 51 and 52, the Secretary may not impose a penalty if she finds that the State has reasonable cause for its failure to comply.
If an audit finds that a State has used Federal funds in violation of the purposes of this title, the Secretary shall reduce the following quarter's payment by the amount misused. If the State cannot prove that the misuse was unintentional, the State's following quarter payment will be reduced by an additional five percent.Senate amendment
Same. See also item 57, Failure to Comply with Provisions of IV-A or State Plan.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
51. Penalties--Failure to Submit Required Report
Present law
There is no specific penalty for failure to submit a report, although the general noncompliance penalty could apply.House bill
If a State fails to submit a required quarterly report within one month after the end of a fiscal quarter, the Secretary shall reduce by four percent the block grant amount otherwise payable to the State for the next fiscal year. However, the penalty shall be rescinded if the State submits the report before the end of the fiscal quarter succeeding the one for which the report was due.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
52. Penalties--Failure to Satisfy Minimum Participation Rates
Present law
If a State fails to achieve the JOBS participation rate specified in law, the Secretary is to reduce to 50 percent the Federal matching rate for JOBS activities and for full-time personnel costs, which now ranges from 60 percent to 78 percent among States. (However, see item 54, ``Corrective Compliance,'' for penalty waiver authority.)House bill
If a State fails to achieve its required work participation rate for the fiscal year, the Secretary shall reduce the following year's block grant by up to five percent, with the percentage cut based on the ``degree of noncompliance.'' The Secretary has the authority to reduce the penalty if the State economy is in recession. In addition, failure to meet required work participation requirements results in States' being required to maintain 80 percent of historic spending levels, instead of 75 percent.Senate amendment
Imposes a graduated penalty on each consecutive failure by a State to meet the work participation standard. The Senate amendment also does not authorize the Secretary to reduce the penalty for States with high unemployment.Conference agreement
On penalty amounts, the conference agreement follows the Senate amendment with the modification that there is a graduated penalty of 5 percent the first year and 2 percent in addition to the prior year's penalty in subsequent years
(so annual penalties in consecutive years would be 5 percent in the first year, 7 percent in the second, 9 percent in the third, and so on), with a maximum cumulative penalty of 21 percent. The conference agreement follows the House bill in authorizing the Secretary to reduce the penalty for needy States as defined under the contingency fund eligibility criteria.
53. Failure to Participate in the Income and Eligibility Verification
System
Present law
States must have in effect an Income and Eligibility Verification System covering AFDC, Medicaid, unemployment compensation, the Food Stamp program, and adult cash aid in the outlying areas. There is no specific penalty for failure to comply.House bill
If the State fails to participate in the Income and Eligibility Verification System (IEVS) designed to reduce welfare fraud, the Secretary shall reduce by up to two percent the annual family assistance grant of the State.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
54. Failure to Comply With Paternity Establishment and Child Support
Enforcement Requirements
Present law
The penalty against a State for noncompliance with child support enforcement rules--loss of AFDC matching funds--shall be suspended if a State submits and implements a corrective action plan.House bill
If the Secretary determines that a State does not enforce penalties requested by the Title IV-D child support enforcement agency against recipients of cash aid who fail to cooperate in establishing paternity or in establishing, modifying, or enforcing a child support order under Title IV-D (and who do not qualify for any good cause or other exception), the Secretary shall reduce the cash assistance block grant by up to five percent.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
55. Failure to Timely Repay a Federal Loan Fund for State Welfare
Programs
Present law
No provision.House bill
If a State fails to pay any amount borrowed from the Federal Loan Fund for State Welfare Programs within the maturity period, plus any interest owed, the Secretary shall reduce the State's family assistance block grant for the immediately succeeding fiscal year quarter by the outstanding loan amount, plus the interest owed on it. The Secretary may not forgive these overdue debts.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
56. Failure of Any State to Maintain Certain Level of Historic Effort
Present law
No provision.House bill
If in fiscal years 1997 through 2001 a State fails to spend a sum equal to at least 75 percent of its ``historic level''
(generally fiscal year 1994 expenditures for AFDC, JOBS, Emergency Assistance, AFDC-related child care and ``at-risk'' child care) of State spending on specified programs, the Secretary shall reduce the following year's family assistance grant (that is, in fiscal years 1998 through 2002) by the difference between the 75 percent requirement and what the State actually spent. However, States that fail to meet required work participation rates must maintain 80 percent of historic spending levels.
Qualified State expenditures that count toward the 75 percent (or 80 percent) spending requirement are all State-funded expenditures under all State programs that provide any of the following assistance to families eligible for family assistance benefits (and those no longer eligible because of the 5-year time limit or ineligible because of the Act's treatment of noncitizens): cash and child care assistance; educational activities designed to increase self-sufficiency, job training and work (excluding any expenditure for public education in the State other than expenditures for services or assistance to a member of an eligible family that is not generally available to other persons); administrative costs not to exceed 15 percent of the total amount of qualified State expenditures; and any other use of funds reasonably calculated to accomplish purposes of the temporary family assistance. Qualified expenditures exclude spending from funds transferred from State or local programs except those that exceed the amount expended in 1996 or those for which the State is entitled to a Federal payment under former AFDC/JOBS law (as in effect just before enactment).
The Secretary is to reduce the 75 percent (or 80 percent) maintenance of effort spending requirement by up to eight percentage points (i.e., to no lower than 67 percent or 72 percent) for States that achieve ``high performance'' scores, based on a threshold to be set by the Secretary, for achieving the goals of the program of Temporary Assistance for Needy Families (TANF).Senate amendment
Raises required State spending to 80 percent of the
``historic'' level for all States. (Does not distinguish between States that meet or fail work participation rates in maintenance-of-effort rule.)
The Secretary is to reduce the 80 percent spending requirement by up to 8 percentage points (to as low as 72 percent) for States with high performance scores. (This provision was deleted because of the Byrd rule.)Conference agreement
The conference agreement follows the House bill, except that the provision allowing reduction of required State spending for high performance States is dropped. Conferees note that State spending on programs that promote self-sufficiency and prevent welfare dependence including, but not limited to, substance abuse treatment, teen parenting and pregnancy prevention shall count towards a State's maintenance of effort. The fact that such funds are spent through or by State or local education agencies should not prevent their being counted towards the State maintenance of effort.
57. Substantial Noncompliance of State Child Support Enforcement
Program Requirements
Present law
If a State child support program is found not to be in substantial compliance with Federal requirements, the Secretary is to reduce AFDC matching funds: by 1-2 percent for first finding of noncompliance, by 2-3 percent for second consecutive finding, and by 3-5 percent for third or subsequent finding. (See ``corrective compliance'' item 54.) Note: State child support plans must undertake to establish paternity of children born out-of-wedlock for whom AFDC is sought, and AFDC law requires the parent to cooperate in establishing paternity. Failure to cooperate makes the parent ineligible for AFDC.House bill
If a State child support enforcement program is found by review not to have complied with Title IV-D requirements, and the Secretary determines that the program is not in compliance at the time the finding is made, then the Secretary will reduce the State's quarterly block grant payment for each quarter during which the State is not in compliance. For the first finding of noncompliance, the reduction will be between one and two percent; for the second consecutive finding, between two and three percent; for the third or subsequent findings, between three and five percent. Non-compliance of a technical nature is to be disregarded.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
58. Failure of State Receiving Amounts from Contingency Fund to
Maintain 100 Percent of Historic Effort
Present law
Not relevant.House bill
If the Secretary determines that a State failed to maintain 100 percent of historic State spending, as required during a year in which contingency funds are paid to the State, the following year's block grant payment to the State is to be reduced by the amount of contingency funds paid.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
59. Required Replacement of Grant Fund Reductions Caused by Penalties
Present law
Not applicable.House bill
If a State's block grant is reduced as a result of one of the above penalties, the State must, during the following fiscal year, replace the penalized funds using State funds.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
60. Penalties--Failure to Provide Medical Assistance to Families
Becoming Ineligible for Assistance under this Part Due to Increased
Earnings from Employment or Collection of Child Support
Present law
If the Secretary finds that a State fails to comply substantially with any required provision of its Medicaid plan (including transitional benefits for former AFDC families), she shall withhold all payments to the State (or limit payments to categories not affected by the noncompliance).House bill
If the Secretary determines that a State does not comply with the requirement to provide extended medical assistance for certain families that become ineligible for block grant assistance due to increased earnings or the collection of child support, the Secretary must reduce the State's block grant by up to 5 percent (depending on the severity of the violation).Senate amendment
No specific provision about failure to comply with requirement for extended medical assistance, but see item below.Conference agreement
The conference agreement follows the Senate amendment.
61. Penalties--Failure to Comply with Provisions of IV-A or State Plan
Present law
If the Secretary finds that a State has failed to comply with the State plan, she is to withhold all payments from the State (or limit payments to categories not affected by noncompliance). (Item 46 above.)House bill
No general penalty for failure to comply with State plan.Senate amendment
If the Secretary, after notice and hearing, finds that a State has not substantially complied with any provision of IV-A or the State plan during a fiscal year, she shall (if a preceding penalty paragraph does not apply) reduce the grant for the next year by up to 5 percent and shall continue an annual reduction of up to 5 percent until she determines that the State no longer is out of compliance.Conference agreement
The conference agreement follows the House bill, with the modification that a new penalty provision is added for States that fail to meet the requirement to not sanction, for failure to perform work, single parents who prove they cannot find child care for a child under age 6.
62. Penalties--Failure to Comply with 5-Year Limit on Assistance
Present law
Not relevant.House bill
No specific provision.Senate amendment
If the Secretary determines that a State during a fiscal year has not complied with the 5-year time limit (for TANF-funded aid), she is to reduce the basic TANF grant for the next year by 5 percent.Conference agreement
The conference agreement follows the Senate amendment.
63. Penalties--Reasonable Cause Exception
Present law
Not applicable. (States are eligible for unlimited funds, but must match every dollar at a prescribed rate.) House bill
The Secretary may (except for failure to timely repay the loan fund, failure to meet the maintenance-of-effort requirement and requirement to replace grant reductions caused by penalties) withhold penalties against a State if she determines that the State had reasonable cause for failing to comply with the requirement.Senate amendment
The Secretary may (except for failure to timely repay the loan fund or failure to meet the maintenance-of-effort requirement) withhold penalties against a State if she determines that the State had reasonable cause for the failure.Conference agreement
The conference agreement follows the House bill.
64. Penalties--Corrective Compliance Plan
Present law
The penalty against a State for substantial noncompliance with child support rules is loss of AFDC matching funds. That penalty shall be suspended if a State submits and implements a corrective action plan. Also, if a State fails to achieve the JOBS participation rate specified in law, the Secretary may waive, in whole or part, the reduction in matching funds, provided the State has submitted a proposal likely to achieve the applicable participation rate for the current year.House bill
Before assessing a penalty against a State under any program established or modified by this Act, the Secretary must notify the State of the violation and allow the State an opportunity to enter into a corrective compliance plan within 60 days of the notification. The Federal government will have 60 days within which to accept or reject the plan; if it accepts the plan, and if the State corrects the violation, no penalty will be assessed. A plan submitted by a State is deemed to be accepted if the Secretary does not accept or reject the plan during the 60-day period after the plan is submitted.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
65. Penalties--Limitation on Amount of Penalty
Present law
If the Secretary finds that a State has failed to comply with the State AFDC plan, he is to withhold all AFDC payments from the State (or limit payments to categories not affected by the noncompliance.)House bill
In imposing the penalties described above, a State's quarterly family assistance grant cannot be reduced by more than a total of 25 percent; if necessary, penalties in excess of 25 percent will be carried forward to the immediately following fiscal year.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
66. Appeal of Adverse Decision
Present law
Current law (sec. 1116 of the Social Security Act) entitles a State to a reconsideration, which HHS must grant upon request, of any disallowed reimbursement claim for an item or class of items. The section also provides for administrative and judicial review, upon petition of a State, of HHS decisions about approval of State plans. At the option of a State, any plan amendment may be treated as the submission of a new plan.House bill
The Secretary is required to notify the Governor of a State within five days of any adverse decision or action under Title IV-A, including any decision about the State's plan or imposition of a penalty. This section provides for administrative review by a Departmental Appeals Board within HHS, requires a Board decision within 60 days after an appeal is filed, and provides for judicial review (by a United States district court) within 90 days after a final decision by the Board. The proposal also repeals the reference to Title IV-A in section 1116.Senate agreement
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
67. Data Collection and Reporting--General Reporting Requirement
Present law
States are required to report the average monthly number of families in each JOBS activity, their types, amounts spent per family, length of JOBS participation and the number of families aided with AFDC/JOBS child care services, the kinds of child care services provided, and sliding fee schedules. States that disallow AFDC for minor mothers in their own living quarters are required to report the number living in their parent's home or in another supervised arrangement. States also must report data (including numbers aided, types of families, how long aided, payments made) for families who receive transitional Medicaid benefits.House bill
The National Integrated Quality Control System draws monthly samples of AFDC cases and reports extensive background information about each case in the sample. JOBS regulations require States to submit a sample of monthly unaggregated case record data.Senate amendment
Each eligible State must collect on a monthly basis, and report to the Secretary on a quarterly basis, the following information on individual families receiving assistance:
1. the county of residence of the family;
2. whether a child receiving assistance or an adult in the family is disabled;
3. the ages of family members;
4. the number of individuals in the family, and the relationship of each member to the youngest child;
5. the employment status and earnings of the employed adult;
6. the marital status of adults, including whether they are never married, widowed, or divorced;
7. the race and educational status of each adult;
8. the race and educational status of each child;
9. whether the family received subsidized housing, Medicaid, food stamps, or subsidized child care, and if the latter two, the amount received;
10. the number of months the family has received each type of assistance under the program;
11. if the adults participated in, and the number of hours per week of participation in, the following activities: education; subsidized private sector employment; unsubsidized employment; public sector employment, work experience, or community service; job search; job skills training or on-the-job training; and vocational education;
12. information necessary to calculate the State work participation rates;
13. the type and amount of assistance received under the program, including the amount of and reason for any reduction of assistance (including sanctions);
14. any amount of unearned income received by any family member; and
15. the citizenship of family members.
In addition to data on individual cases, States must report, on a sample of cases closed during the quarter, whether families left welfare because of employment, marriage, the five-year time limit on benefits, sanction, or State policy.
States may use scientifically acceptable sampling methods approved by the Secretary to estimate the required data elements. The Secretary shall provide States with case sampling plans and data collection procedures deemed necessary for statistically valid estimates.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
68. Other State Reporting Requirements
Present law
Regulations require each State to submit quarterly estimates of the total amount (and the Federal share) of expenditures for AFDC benefits and administration. Required quarterly reports include estimates of the Federal share of child support collections made by the State.House bill
The above quarterly report submitted by the State must also include:
1. a statement of the percentage of the funds paid to the State that is used to cover administrative costs or overhead;
2. a statement of the total amount expended by the State during the quarter on programs for needy families;
3. the number of noncustodial parents in the State who participated in work activities as defined in the proposal during the quarter; and
4. the total amount spent by the State for providing transitional services to a family that no longer receives assistance because of employment, along with a description of those services.
The Secretary shall prescribe regulations necessary to define the data elements.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
69. Data Collection and Reporting--Annual Reports to the Congress by the Secretary
Present law
The law requires the HHS Secretary to report promptly to Congress the results of State reevaluations of AFDC need standards and payment standards required at least every 3 years. The Secretary is to annually compile and submit to Congress annual State reports on at-risk child care. The Family Support Act requires the Secretary to submit recommendations regarding JOBS performance standards by a deadline that was extended.House bill
Not later than 6 months after the end of fiscal year 1997, and each fiscal year thereafter, the Secretary shall send Congress a report describing:
1. whether States are meeting minimum participation rates and whether they are meeting objectives of increasing employment and earnings of needy families, increasing child support collections, and decreasing out-of-wedlock pregnancies and child poverty;
2. demographic and financial characteristics of applicant families, recipient families, and those no longer eligible for temporary family assistance;
3. characteristics of each State program funded under this part; and
4. trends in employment and earnings of needy families with minor children.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
70. Direct Funding and Administration by Indian Tribes--Grants for
Indian Tribes
Present law
No provision for AFDC administration by Indian tribes. Indian and Alaska families with children receive AFDC benefits on the same terms as other families in their States, from State or local AFDC agencies.
More than 80 tribes and native organizations in 24 States are JOBS grantees, having applied to conduct JOBS within 6 months of enactment of the law establishing it. Their JOBS allocation of funds is deducted from that of their State.House bill
For each fiscal year 1997 through 2000, the Secretary shall pay tribal family assistance grants to eligible Indian tribes
(and shall reduce the family assistance grant for the State(s) in which the tribe's service area lies accordingly). The tribal family assistance grant is equal to the total amount of Federal payments to the State for fiscal year 1994 in AFDC benefits, AFDC Administration, Emergency Assistance, and JOBS funds for Indian families residing in the tribal service area. The Secretary shall pay tribes that participated in the JOBS program in fiscal year 1995 a grant equal to their fiscal year 1994 JOBS funding ($7.6 million). This sum is appropriated for each of six fiscal years, 1996 through 2001.Senate amendment
Same as the House bill, except for adding a fifth year, 2001, for tribal family assistance grants.Conference agreement
The conference agreement follows the Senate amendment.
71. Direct Funding and Administration by Indian Tribes--Three-year
Tribal Family Assistance Plan
Present law
Not applicable.House bill
Indian tribes must submit a tribal family assistance plan to be eligible to receive a tribal family assistance grant. The plan must outline the tribe's approach to providing welfare services during the 3-year period, specify how services will be provided, identify populations and areas served, provide that families will not receive duplicate assistance from a State or other tribal assistance plan, identify employment opportunities in the service area, and apply fiscal accountability provisions of the Indian Self-Determination and Education Assistance Act relating to the submission of a single-agency audit report required under current law.
The Secretary must approve tribal family assistance plans that meet the above requirements. For each tribe receiving a family assistance grant and with the participation of the tribe, the Secretary shall establish minimum work requirements, time limits, and penalties that are consistent with provisions of this Act and the economic conditions and resources of the tribe. Tribes will be subject to the same penalties as States for misusing funds, failing to pay back Federal loan funds, and failing to meet work participation rates. Tribes will also be required to abide by the same data collection and reporting requirements as States.
Unless excepted through a waiver, tribes in Alaska that receive tribal family assistance grants must operate a program comparable to the temporary family assistance program of the State of Alaska.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
72. Research, Evaluations, and National Studies--Research
Present law
Section 1110 of the Social Security Act authorizes and appropriates ``such sums as the Congress may determine'' for making grants and contracts to (or jointly financed arrangements with) States and public or private organizations for cooperative research or demonstration projects, such as those relating to the prevention and reduction of dependency.House bill
The Secretary shall conduct research on the effects, benefits, and costs of operating State programs of Temporary Assistance for Needy Families, including time limits for eligibility. The research shall include studies on the effects of different programs and the impacts of the programs on welfare dependency, illegitimacy, teen pregnancy, employment rates, child well-being, and other appropriate issues.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
73. Research, Evaluations, and National Studies--Development and Evaluation of Innovative Approaches to Reducing Welfare Dependency and
Increasing Child Well-Being
Present law
Section 1115 of the Social Security Act authorizes waiver of specified provisions of AFDC law for State experimental, pilot or demonstration projects to promote objectives of the law, including self-support of parents and stronger family life.House bill
The Secretary may assist States in developing, and shall evaluate, innovative approaches for reducing welfare dependency and increasing the well-being of minor children, using random assignments in these evaluations to the maximum extent feasible.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
74. Research, Evaluations, and National Studies--Dissemination of
Information
Present law
No provision.House bill
The Secretary shall develop innovative methods of disseminating information on research, evaluations, and studies, including ways to facilitate sharing of information via computers and other technologies.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
75. Research, Evaluations, and National Studies--Annual Rankings of
States and Review of Most and Least Successful Work Programs
Present law
No provision.House bill
The Secretary shall rank annually States receiving family assistance grants in the order of their success in moving families off welfare and into work, reducing the caseload, and, when a practicable method of calculation becomes available, diverting persons from applying to the program. The Secretary shall review annually the three most and three least successful programs under these criteria.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
76. Research, Evaluations, and National Studies--Annual Rankings of States and Review of Issues Relating to Out-of-Wedlock Births
Present law
No provision.House bill
The Secretary shall rank States annually on the percentage of births to families on welfare that are out-of-wedlock and on net changes in the percentage of out-of-wedlock births to families on welfare. The Secretary must review the programs of the five highest and five lowest ranking States under these criteria.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
77. Research, Evaluations, and National Studies--State-Initiated
Evaluations
Present law
In a 1994 public notice, HHS stated that it is committed to a broad range of evaluation strategies, including true experimental, quasi-experimental, and qualitative designs, for demonstrations operating under waivers. Section 1115(d) of the Social Security Act required the Secretary to enter into agreements with up to eight applicant States to conduct demonstration projects testing more liberal treatment of unemployed 2-parent families. The law stipulated that the States must evaluate costs and work effort results by use of experimental and control groups.House bill
A State is eligible to receive funding to evaluate its family assistance program if it submits an evaluation design determined by the Secretary to be rigorous and likely to yield credible and useful information. The State must pay 10 percent of the study's cost, unless the Secretary waives this rule.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
78. research, evaluations, and national studies--report on circumstances of certain children and families
Present law
No provision. House bill
Beginning 3 years after enactment, the Secretary shall submit an annual report to 4 congressional committees (Ways and Means, Economic and Educational Opportunities, Finance, and Labor and Human Resources) about children whose families reached the cash assistance time limit of TANF, families that include a child ineligible because of the family cap, children born to teenaged parents, and persons who became parents as teenagers after enactment. For each of these four groups, detailed information is required, including percentages that dropped out of school, are employed, have been convicted of a crime or judged delinquent, continue to participate in TANF, have health insurance (and whether from private entity or government), and average family incomes.Senate amendment
No provision.Conference agreement
The conference agreement follows the House bill.
79. research, evaluations, and national studies--funding of studies and demonstrations
Present law
See ``Research'' above. For Section 1115(a) ``waiver'' projects (``Innovative Approaches'' above) Federal cost neutrality over the life of a demonstration project is required.
Note: The annual budgets of HHS request funds for policy research. The fiscal year 1997 budget seeks $9 million and lists these priority issues: issues related to welfare reform, health care, family support and independence, poverty, at-risk children and youth, aging and disability, science policy, and improved access to health care and support services.House bill
For research, development and evaluation of innovative approaches, State-initiated evaluation studies of the family assistance program, and for costs of operating and evaluating demonstration projects begun under the AFDC waiver process, this section authorizes to be appropriated, and appropriates, a total of $15 million annually for 6 fiscal years, 1996 through 2001. Half of this sum is allocated to the purposes described above in ``Research'' and ``Innovative Approaches'' and half to the other purposes.
The Secretary may implement and evaluate demonstrations of innovative and promising strategies that provide one-time capital funds to establish, expand, or replicate programs, test performance-based funding, and test strategies in multiple States and types of communities.Senate amendment
Same, except provides funding only in 4 fiscal years, 1998 through 2001.Conference agreement
The conference agreement follows the House bill, with the modification to appropriate for the years 1996 through 2002.
80. child poverty rates
Present law
No provision.House bill
No provision.Senate amendment
Not later than 90 days after enactment, the governor of a State shall submit to the Secretary a statement of the child poverty rate in the State. Annually thereafter, the governor shall report the child poverty rate to the Secretary. If the rate increases by 5 percent or more as a result of changes made by the Act, the State shall prepare a corrective action plan to reduce the incidence of child poverty.Conference agreement
The conference agreement follows the Senate amendment on the submission of reports on child poverty rates and the corrective action plans. The conference agreement follows the House bill on provisions in the Senate amendment that provide the Secretary of HHS with the authority to alter State plans.
81. study by the census bureau
Present law
No provision.House bill
The Census Bureau must expand the Survey of Income and Program Participation (SIPP) to evaluate the impact of welfare reforms made by this title on a random national sample of recipients and, as appropriate, other low-income families. The study should focus on the impact of welfare reform on children and families, and should pay particular attention to the issues of out-of-wedlock birth, welfare dependency, the beginning and end of welfare spells, and the causes of repeat welfare spells. $10 million per year for 7 years (1996-2002) is appropriated for this study.Senate amendment
Same provision, except that the $10 million annual appropriation is for only 5 years (fiscal years 1998-2002).Conference agreement
The conference agreement follows the House bill.
82. waivers
Present law
Section 1115 of the Social Security Act authorizes the HHS Secretary to waive specified requirements of State AFDC plans in order to enable a State to carry out any experimental, pilot, or demonstration project that the Secretary judges likely to assist in promoting the program's objectives. Some 38 States have received waivers from the Clinton Administration for welfare reforms, as of late May 1996.House bill
This section provides that terms of AFDC waivers in effect, or approved, as of September 30, 1995, will continue until their expiration, except that beginning with fiscal year 1996 a State operating under a waiver shall receive the block grant described under Section 403 in lieu of any other payment provided for in the waiver. The section also allows for continuation, under certain conditions of waivers on or approved before July 1, 1997, on the basis of applications made before enactment of the new program.
States have the option to terminate waivers before their expiration, but projects that are ended prematurely must be summarized in written reports. A State that submits a request to end a waiver within 90 days after the adjournment of the first regular session of the State legislature that begins after the date of enactment will be held harmless for accrued cost neutrality liabilities incurred under the waiver.
The Secretary is directed to encourage any State now operating a waiver to continue the project and to evaluate its result or effect. A State may elect to continue one or more individual waivers.Senate amendment
Same.Conference agreement
The conference agreement follows the Senate amendment, with the modification that such waivers may only apply to the geographical areas of the State and to the specific program features for which the waiver was granted. All geographical areas of the State and program features of the State program not specifically covered by the waiver must conform to this part. Conferees urge the Secretary to approve the Wisconsin comprehensive welfare reform waiver request (published in the Federal Register on June 10, 1996) by September 1, 1996.
83. Administration (and Reduction in Federal Workforce)
Present law
An Assistant Secretary for Family Support, appointed by the President by and with consent of the Senate, is to administer AFDC, child support enforcement, and the Jobs Opportunities and Basic Skills (JOBS) program.House bill
The provision for an Assistant Secretary for Family Support now found in section 417 of Part A of the Social Security Act is retained but modified to remove the reference to the JOBS program, which is repealed.
No requirements to reduce workforce at HHS.Senate amendment
The Temporary Assistance for Needy Families (TANF) block grant program and the child support enforcement program shall be administered by an Assistant Secretary for Family Support. The HHS Secretary must reduce the number of positions within the Department by 245 equivalent full-time equivalent (FTE) positions related to the conversion of AFDC, Emergency Assistance, and Jobs into TANF and by 60 FTE managerial positions. In general, it requires the Secretary to reduce by 75 percent the number of FTE positions that relate to any direct spending program, or any program funded through discretionary spending that is converted into a block grant program under the bill and to reduce FTE department management positions similarly (on the basis of the portion of the Department's total appropriation represented by programs converted to block grants).Conference agreement
The conference agreement follows the Senate amendment.
84. Limitation on Federal Authority
Present law
No provision.House bill
No officer or employee of the Federal Government may regulate the conduct of States under this part or enforce any provision of this part, except to the extent expressly provided in this part.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
85. Definitions--Adult
Present law
No provision.House bill
An individual who is not a minor child.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
86. Definitions--Minor Child
Present law
No provision. A dependent child is defined as a needy child who is under age 18 (19, at State option, if a full time student in a secondary school or equivalent level of vocational and technical training and expected to complete school before age 19). House bill
An individual who has not attained 18 years of age or has not attained 19 years of age and is a full-time student in a secondary school (or in the equivalent level of vocational or technical training).Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
87. Definitions--Fiscal Year
Present Law
No provision.House Bill
Any 12-month period ending on September 30 of a calendar year.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
88. Definitions--Indian, Indian Tribe, and Tribal Organization
Present law
For JOBS purposes, an Indian tribe is defined as any tribe, band, Nation, or other organized group of Indians that is recognized as eligible for special programs and services of the U.S. because of their status as Indians. An Alaska native organization is any organized group of Alaska natives eligible to operate a Federal program under P.L. 93-638 or that group's designee.House bill
With the exception of specified Indian tribes in Alaska, these terms have the meaning given in the Indian Self-Determination and Education Assistance Act.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
89. Definitions--State
Present law
For purposes of AFDC, the term ``State'' means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa. The last jurisdiction has not implemented AFDC.House bill
Except as otherwise specifically provided (e.g., regarding the provision of population growth funds and contingency funds), the term ``State'' means the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa.Senate amendment
Same, except adds to this definition an option for a State to contract to provide services: The term ``State'' includes administration and provision of services under the family assistance program and under the programs of child welfare, foster care and adoption assistance, family preservation, and independent living, through contracts with charitable, religious or private organizations, and provision of aid by means of certificates, vouchers, or other forms of disbursement redeemable by these organizations. See item 92.Conference agreement
The conference agreement follows the House bill.
90. Additional Grants to Puerto Rico, the Virgin Islands, Guam, and
American Samoa; Limitation on Total Payments
Present law
Under current law, the territories are eligible for 75 percent matching grants for their expenditures on cash welfare for adult assistance (i.e., assistance for needy persons who are aged, blind, or disabled), Aid to Families with Dependent Children (AFDC), Emergency Assistance (EA), Foster Care and Adoption Assistance, the Job Opportunities and Basic Skills (JOBS) program, and the Family Preservation program (Title IV-B, subpart 2). These matching grants are limited by caps on Federal payments. The territories also receive grants under the child welfare services (Title IV-B, subpart 1) program.
[Note.--Although eligible, territories do not claim foster care and adoption assistance funds.]
The law places a ceiling on total payments for AFDC, aid to needy aged, blind or disabled adults, and foster care and adoption assistance to Puerto Rico--$82 million, the Virgin Islands--$2.8 million, Guam--$3.8 million, and American Samoa
(AFDC, foster care, and adoption assistance)--$1 million.House bill
The proposal retains but increases aggregate welfare ceilings in each of the territories and combines the individual programs into a single block grant. The new ceilings would apply to aggregate spending for cash aid for needy families (TANF), cash aid to needy aged, blind or disabled adults, and child protection (child welfare and family preservation services). The proposal authorizes territories to transfer funds among these programs. Maximum potential fiscal year payments (including both the capped mandatory payments listed below and the authorization of discretionary grants) are as follows: Puerto Rico--$113.5 million; Guam--$5.2 million; U.S. Virgin Islands--$4.0 million; and American Samoa--$1.3 million.
To receive mandatory ceiling amounts (capped entitlements), territories must spend from their own funds in a fiscal year as much as they did in fiscal year 1995 for cash aid to needy families, and cash aid to needy aged, blind, or disabled adults. Federal matching funds, at a 75 percent rate, would reimburse territories for expenditures above their fiscal year 1995 base level, but below the Federal cap. Mandatory ceiling amounts: Puerto Rico--$105.5 million; Guam, $4.9 million; Virgin Islands, $3.7 million; and American Samoa,
$1.1 million.Senate amendment
The proposal retains but increases aggregate welfare ceilings in each of the territories and, in effect, combines all but IV-B services (child welfare services and family preservation) into a single block grant. The new ceilings would apply to aggregate spending for cash aid for needy families (TANF), cash aid to needy aged, blind, or disabled adults, and foster care and adoption assistance. The proposal authorizes territories to transfer funds among these programs.
To receive the new ceiling amounts (capped entitlements), territories must spend from their own funds in a fiscal year for cash aid to needy families and cash aid to needy aged, blind, or disabled adults. Federal matching funds, at a 75 percent rate, would reimburse them for expenditures above their fiscal year 1995 base level, but below the Federal cap. Mandatory ceiling amounts--Puerto Rico--$102 million; Guam,
$4.7 million; Virgin Islands, $3.6 million; and American Samoa, $1 million. (Current law and funding arrangements are retained for IV-B programs.)Conference agreement
The conference agreement generally follows the Senate amendment. The conference agreement adds a provision specifying that States may use Title XX funds to provide vouchers to families losing TANF block grant assistance due to a State-imposed family cap.
91. Repeal of Provisions Requiring Disapproval of Medicaid Plans or Denial of Same Medicaid Payments to States that Reduce Welfare Payment
Levels
Present law
If a State reduces AFDC ``payment levels'' below those of May 1, 1988, the Secretary shall not approve the State's Medicaid plan.
If a State reduces AFDC payment levels below those of July 1, 1987, Medicaid matching funds shall be disallowed for required services to pregnant women and children not enrolled in AFDC but eligible for Medicaid on grounds of low income.House bill
The House proposal repeals provisions that impose Medicaid sanctions upon States that reduce AFDC payment levels.Senate amendment
Same.Conference Agreement
The conference agreement follows the House bill and the Senate amendment.
92. Services Provided by Charitable, Religious, and Private
Organizations
Present law
The Child Care and Development Block Grant (CCDBG) Act prohibits use of any financial assistance provided through any grant or contract for any sectarian purpose or activity. In general, the CCDBG requires religious nondiscrimination, but it does allow a sectarian organization to require employees to adhere to its religious tenets and teachings.House bill
The proposal authorizes States to administer and provide family assistance services (and services under SSI, the child protection block grant program, foster care, adoption assistance, and independent living programs) through contracts with charitable, religious, or private organizations. Under this provision, religious organizations would be eligible, on the same basis as any other private organization, to provide assistance as contractors or to accept certificates and vouchers so long as their programs are implemented consistent with the Establishment Clause of the Constitution. States may pay recipients by means of certificates, vouchers, or other forms of disbursement that are redeemable with such private organizations.
The proposal provides that, except as otherwise allowed by law, a religious organization administering the program may not discriminate against beneficiaries on the basis of religious belief or refusal to participate in a religious practice. States must provide an alternative provider for a beneficiary who objects to the religious character of the designated organization.
Nothing in this section shall be construed to preempt any provision of a State constitution or State statute that prohibits or restricts the expenditure of State funds in or by religious organizations.Senate amendment
Same provision, except that administration by charitable, religious, and private organizations is authorized only for TANF and SSI.Conference agreement
The conference agreement follows the House bill.
93. Census Data on Grandparents as Primary Caregivers for Their
Grandchildren
Present law
No provision.House bill
The Secretary of Commerce shall expand the Census Bureau's question (for the decennial census and the mid-decade census) concerning households with both grandparents and their grandchildren so as to distinguish between households in which a grandparent temporarily provides a home and those where the grandparent serves as primary caregiver.Senate amendment
Same.Conference Agreement
The conference agreement follows the House bill and the Senate amendment.
94. Report on Data Processing
Present Law
No provision. (State child support plans may provide for establishment of a statewide automated data processing and information retrieval system.)House bill
The Secretary must report to Congress within six months on the status of automatic data processing systems in the States and on what would be required to produce a system capable of tracking participants in public programs over time and checking case records across States to determine whether some individuals are participating in public programs in more than one State. The report should include a plan for building on the current automatic data processing system to produce a system capable of performing these functions as well as an estimate of the time required to put the system in place and the cost of the system.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
95. Study on Alternative Outcomes Measures
Present law
The Family Support Act required the Secretary to submit to Congress recommendations for JOBS performance standards regarding ``specific measures of outcomes''. It said the standards should not be measured solely by levels of activity or participation. (The report, due Oct. 1, 1993, was submitted 1 year late.)House bill
The Secretary must, in cooperation with the States, study and analyze measures of program outcomes (as an alternative to minimum participation rates) for evaluating the success of State block grant programs in helping recipients leave welfare. The study must include a determination of whether outcomes measures should be applied on a State or national basis and a preliminary assessment of the job placement performance bonus established in the Act. The Secretary must report findings to the Committee on Finance and the Committee on Ways and Means not later than September 30, 1998.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
96. Welfare Formula Fairness Commission
Present law
No provision. AFDC funds are not distributed by formula. States are entitled to reimbursement, at matching rates inversely related to their per capita income squared, for all AFDC benefits and AFDC- related child care spending (but not
``at-risk'' child care). Federal funds received by a State are a function of its AFDC benefit levels, caseloads, and matching rate.House bill
No provision.Senate amendment
Establishes a welfare formula fairness commission to make recommendations on funding formulas, bonus payments, and work requirements of the new TANF program. Commission is to have 15 members, 3 each appointed by the President, Senate Majority Leader, Senate Minority Leader, House Speaker, and House Minority Leader. It is to report to Congress by Sept. 1, 1998, either making recommendations for change or giving notice that none is needed.Conference agreement
The conference agreement follows the House bill.
97. Conforming Amendments to the Social Security Act
Present law
No provision.House bill
This section makes a series of technical amendments, including the repeal of the JOBS program, that conform provisions of the proposal with various titles of the Social Security Act.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
98. Conforming Amendments to the Food Stamp Act of 1977 and Related
Provisions
Present law
No provision.House bill
This section makes a series of technical amendments that conform provisions of the proposal with various titles of the Food Stamp Act and other related provisions.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
99. Conforming Amendments to Other Laws
Present law
No provision.House bill
This section makes a series of amendments that conform provisions of the proposal to the Unemployment Compensation Amendments of 1976, the Omnibus Budget Reconciliation Act of 1987, the Housing and Urban-Rural Recovery Act of 1983, the Tax Equity and Fiscal Responsibility Act of 1982, the Social Security Amendments of 1967, the Stewart B. McKinney Homeless Assistance Amendments Act of 1988, the Higher Education Act of 1965, the Carl D. Perkins Vocational and Applied Technology Education Act, the Elementary and Secondary Education Act of 1965, Public Law 99-88, the Internal Revenue Code of 1986, the Wagner-Peyser Act, the Job Training Partnership Act, the Low-Income Home Energy Assistance Act of 1981, the Family Support Act of 1988, the Balanced Budget and Emergency Deficit Control Act of 1985, the Immigration and Nationality Act, the Head Start Act, and the School-to-Work Opportunities Act of 1994.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
100. Development of Prototype of Counterfeit-Resistant Social Security
Card Required
Present law
No provision.House bill
The Commissioner of Social Security is required to develop a prototype of a counterfeit-resistant Social Security card. The Commissioner must report to Congress on the cost of issuing a tamper-proof card for all persons over a three, five, and 10-year period.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
101. Community Steering Committees Demonstration Projects
Present law
No provision.House bill
No provision.Senate amendment
Requires the Secretary to enter into agreements with up to 5 applicant States to conduct demonstration projects designed to help TANF parents move into the nonsubsidized workforce. Duties of the committee: identify and create unsubsidized jobs for TANF recipients; propose and implement solutions to work barriers; assess needs of the children and provide services to ensure that the children enter school ready to learn and stay in school. A primary responsibility of the committee shall be to help assure that parents who have obtained work retain their jobs. Activities may include counseling, emergency day care, sick day care, transportation, provision of clothing, housing assistance, or any other needed help. Not later than Oct. 1, 2002, the Secretary shall report to congress on the project results.Conference agreement
The conference agreement follows the House bill.
102. Disclosure of Receipt of Federal Funds
Present law
No provision.House bill
Under certain circumstances specified public funds received by nonprofit, tax-exempt 501(c) organizations, must be publicly disclosed. When a 501(c) organization that accepts Federal funds under the Personal Responsibility and Work Opportunity Act (other than those provided under Titles IV, XVI, and XX of the Social Security Act) makes any communication intended to promote public support or opposition to any governmental policy (Federal, State or local) through any broadcasting station, newspaper, magazine, outdoor advertising facility, direct mailing, or any other type of general public advertising, the communication must state: ``This was prepared and paid for by an organization that accepts taxpayer dollars.''Senate amendment
Applies the fund disclosure rule to all Federal funds under the Personal Responsibility and Work Opportunity Act. (This provision was deleted because of the Byrd rule.)Conference agreement
The conference agreement follows the Senate amendment (no provision as a result of the Byrd rule).
103. Modifications to the Job Opportunities for Certain Low-Income
Individuals Programs
Present law
The Family Support Act of 1988 (Sec. 505) directed the Secretary to enter into agreement with between 5 and 10 nonprofit organizations to conduct demonstrations to create job opportunities for AFDC recipients and other low-income persons. For these projects, $6.5 million was authorized to be appropriated for each fiscal year, 1990-1992.House bill
The word ``demonstration'' is struck from the description of these projects; the projects are converted to grant status. The provision requires the Secretary to enter into agreements with nonprofit organizations to conduct projects that create job opportunities for recipients of family assistance and other persons with income below the poverty guideline. $25 million annually is authorized for these projects.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
104. Conforming Amendments to Medicaid
Present lawHouse bill
Provides for continued application of AFDC standards and methodologies for certain families, entitling them to Medicaid. Allows cost-of-living adjustments in income standards above level of July 16, 1996. See ``Prohibitions; Requirements--Medicaid'' above.Senate amendment
Same except that States may use less restrictive income standards and methodologies than under current law.Conference agreement
The conference agreement follows the House bill.
105. EFFECTIVE DATE; TRANSITION RULE
Present law
No provision.House bill
Except as otherwise provided, this title and the amendments made by it take effect on July 1, 1997. Penalties (with the major exception of penalties for misuse of Federal family assistance grant funds) will not take effect until July 1, 1997, or six months after the State plan is received by the Secretary, whichever is later.
Within 90 days of enactment, the Secretary of HHS, the Commissioner of Social Security and other heads of appropriate agencies shall submit to appropriate congressional committees. Necessary technical and conforming amendments.
States may opt to begin their block grant program before July 1, 1997, in which case the State is entitled to receive no more than the State family assistance grant for the entire fiscal year; block grant payments will be made pro rata based on the number of days remaining in the fiscal year after the Secretary first received the State plan. The submission of a State plan is deemed to constitute the State's acceptance of the family assistance grant (including pro rata reductions for a partial fiscal year) and the termination of the individual entitlement to benefits under the AFDC program. Effective October 1, 1996, no individual or family shall be entitled to any benefits or services under any State plan under part A or F of Title IV of the Social Security Act (as in effect on September 30, 1995).
The amendments made do not apply with respect to powers, duties, penalties and other considerations applicable to aid, assistance or services provided before the effective date, or with respect to administrative actions and proceedings that commenced before the effective date. Federal and State officials may use scientifically acceptable statistical sampling techniques in closing out accounts. Each State shall complete the filing of all claims within 2 years after the date of enactment. The person serving as Assistant Secretary for Family Support within HHS on the day before the effective date of this title will continue to serve in that position until a successor is named, performing functions provided under current law and having powers and duties provided in Section 103 of this bill.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Title II: Supplemental Security Income
1. REFERENCE TO THE SOCIAL SECURITY ACT
Present law
No provision.House bill
Any reference in this title expressed in terms of an amendment to or repeal of a section or other provision is made to the Social Security Act.Senate amendment
Identical to House bill.Conference agreement
The conference agreement follows the House bill.
Subtitle A--Eligibility Restrictions
2. denial of ssi benefits to individuals found to have fraudulently misrepresented residence in order to obtain benefits simultaneously in
2 of more states
Present law
Current law states that any person who knowingly and willfully makes or causes to be made any false statements or misrepresentations in applying for or continuing to receive Supplemental Security Income (SSI) payments may be subject to a civil monetary penalty or be fined or imprisoned pursuant to title 18, U.S. Code.House bill
Any person convicted in Federal court or State court of having fraudulently misrepresented residence in order to obtain benefits or services from two or more States under title IV, title XV, title XIX, or the Food Stamp Act of 1977, or benefits in 2 or more States from the SSI program, is ineligible for SSI benefits for 10 years. In addition, an official of the court in which the individual was convicted is required to notify the Commissioner of such conviction.Senate amendment
Identical to House Bill.Conference agreement
The conference agreement follows the House bill.
3. denial of ssi benefits for fugitive felons and probation and parole violators
Present law
Current law provides safeguards which restrict the use or disclosure of information concerning SSI applicants or recipients to purposes directly connected with the administration of the SSI program or other federally-funded programs.House bill
No individual who is fleeing to avoid prosecution, custody or confinement after conviction for a crime (or an attempt to commit a crime) that is a felony (or, in New Jersey, a high misdemeanor), or who violates probation or parole imposed under Federal or State, law shall be eligible for SSI benefits.
The Social Security Administration (SSA) shall furnish the current address, Social Security number, and photograph (if applicable) of a recipient to any Federal, State, or local law enforcement officer who is pursuing a fugitive felon or parole or probation violator. This provision applies also to a recipient sought by an officer because the recipient has information necessary to the officer's official duties.Senate amendment
Identical to House Bill.Conference agreement
The conference agreement follows the House bill with technical modification.
4. treatment of prisoners
Implementation of Prohibition Against Payment of Benefits to Prisoners
Present law
Current law prohibits prisoners from receiving benefits while incarcerated. Federal, State, or county or local prisons are required to make available, upon written request, the name and Social Security account number of any individual who is confined in a penal institution or correctional facility and convicted of any crime punishable by imprisonment of more than 1 year.House bill
The Commissioner shall enter into an agreement with any interested State or local institution (defined as a jail, prison, other correctional facility, or institution where the individual is confined due to court order) under which the institution shall provide monthly the names, Social Security account numbers, dates of birth, confinement dates, and other identifying information. The Commissioner shall pay to the institution for each eligible individual who becomes ineligible $400 if the information is provided within 30 days of the individual becoming an inmate. The payment is $200 if the information is furnished after 30 days but within 90 days.
In addition, the Computer Matching and Privacy Protection Act of 1988 shall not apply to the information exchanged pursuant to this contract.
The Commissioner is authorized to provide, on a reimbursable basis, information obtained pursuant to agreements to any Federal or federally assisted cash, food, or medical assistance program for eligibility purposes.
The dollar amounts paid to the institution shall be reduced by 50 percent if the Commissioner is also required to make a payment with respect to the same individual based on eligibility for Social Security disability insurance benefits.
Payments to institutions shall be made from funds otherwise available for the payment of benefits.Senate amendment
The Senate amendment is similar to the House bill, however, it deletes all references to OASDI programs (due to Senate rule) and does not include the provision for the Commissioner to provide information to other Federal or federally assisted programs.Conference agreement
The conference agreement follows the House bill, except that all OASDI references are deleted.
Denial of SSI Benefits for 10 Years to a Person Found to Have
Fraudulently Obtained SSI Benefits While in Prison
Present law
No provision. House bill
No provision.Senate amendment
Denies benefits for 10 years (beginning the date of release from prison) to a person found to have fraudulently obtained SSI benefits while in prison. This provision is effective on the date of enactment.Conference agreement
The conference agreement follows the House bill (i.e., no provision).
Elimination of OASDI Requirement that Confinement Stem From Crimes
Punishable by Imprisonment for More Than 1 Year
Present law
Bars Social Security benefits from prisoners convicted of any crime punishable by imprisonment of more than a year, not just felonies.House bill
Replaces ``an offense punishable by imprisonment for more than 1 year'' with ``a criminal offense'' and deletes other language. Effective for benefits payable more than 180 days after the date of enactment. It bars Social Security benefits from persons confined, throughout a month, to (1) a penal institution or (2) other institution if the person is found guilty but insane.Senate amendment
No provision, due to Senate rule.Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
Study of Other Potential Improvements in the Collection of Information
Respecting Public Inmates
Present law
No provision.House bill
The Commissioner shall conduct a study of the desirability, feasibility, and cost of establishing a system for courts to furnish the Commissioner information regarding court orders and requiring that State and local jails, prisons, and other institutions enter into agreements with the Commissioner by means of an electronic or similar data exchange system. The report of this study shall be submitted to the responsible Committees not later than 1 year after enactment.
Not later than October 1, 1998, the Commissioner of Social Security shall provide to the responsible Committees of Congress a list of institutions that are and are not providing information to the Commissioner in accordance with these provisions.Senate amendment
The Senate amendment is identical to the House bill except uses the term ``contract'' instead of ``agreement.''
There is no provision for the Commissioner to provide a list of institutions who are or are not in compliance with these provisions.Conference agreement
The conference agreement follows the House bill.
5. Effective Date of Application for Benefits
Present law
The application of an individual for SSI benefits is effective on the later of the date the application is filed or the date the individual first becomes eligible for such benefits.House bill
Changes the effective date of application to the later of the first day of the month following the date the application is filed or the date the individual first becomes eligible for such benefits. The provision expands SSA's authority to issue an immediate cash advance to individuals faced with financial emergencies. Effective for applications filed on or after the date of enactment.Senate amendment
Identical to House bill.Conference agreement
The conference agreement follows the House bill with technical modifications.
Subtitle B--Benefits for Disabled Children
6. Definition and Eligibility Rules
Definition of Childhood DisabilityPresent law
There is no definition of childhood disability in the statute. Instead, the statute prescribes that an individual under age 18 shall be considered disabled for purposes of eligibility for SSI if that individual has an impairment or combination of impairments of ``comparable severity'' which would result in a work disability in an adult. This impairment or combination of impairments must be expected to result in death or to last for a continuous period of not less than 12 months.House bill
This section adds a new statutory definition of childhood disability: an individual under the age of 18 is considered as disabled if the individual has a medically determinable physical or mental impairment, which results in marked and severe functional limitations, and which can be expected to result in death or which has lasted or can be expected to last for at least a continuous period of not less than 12 months.
The Commissioner shall ensure that the combined effects of all physical or mental impairments of an individual are taken into account in determining whether an individual is disabled. In addition, the Commissioner shall ensure that the regulations prescribed by these provisions provide for the evaluation of children who cannot be tested because of their young age.Senate amendment
Identical to House bill regarding the new definition of disability. The provision does not include language regarding combined impairments or evaluation of children who cannot be tested because of their young age.Conference agreement
The conference agreement follows the Senate amendment. The conferees intend that only needy children with severe disabilities be eligible for SSI, and the Listing of Impairments and other current disability determination regulations as modified by these provisions properly reflect the severity of disability contemplated by the new statutory definition. In those areas of the Listing that involve domains of functioning, the conferees expect no less than two marked limitations as the standard for qualification. The conferees are also aware that SSA uses the term ``severe'' to often mean ``other than minor'' in an initial screening procedure for disability determination and in other places. The conferees, however, use the term ``severe'' in its common sense meaning.
In addition, the conferees expect that SSA will properly observe the requirements of section 1614 (a)(3)(F) of the Social Security Act and ensure that the combined effects of all the physical or mental impairments of an individual under age 18 are taken into account in making a determination regarding eligibility under the definition of disability. The conferees note that the 1990 Supreme Court decision in Zebley established that SSA had been previously remiss in this regard. The conferees also expect SSA to continue to use criteria in its Listing of Impairments and in the application of other determination procedures, such as functional equivalence, to ensure that young children, especially children too young to be tested, are properly considered for eligibility of benefits.
The conferees recognize that there are rare disorders or emerging disorders not included in the Listing of Impairments that may be of sufficient severity to qualify for benefits. Where appropriate, the conferees remind SSA of the importance of the use of functional equivalence disability determination procedures.
Nonetheless, the conferees do not intend to suggest by this definition of childhood disability that every child need be especially evaluated for functional limitations, or that this definition creates a supposition for any such examination. Under current procedures for writing individual listings, level of functioning is an explicit consideration in deciding which impairment, with certain medical or other findings, is of sufficient severity to be included in the Listing. Nonetheless, the conferees do not intend to limit the use of functional information, if reflecting sufficient severity and is otherwise appropriate.
The conferees contemplate that Congress may revisit the definition of childhood disability and the scope of benefits, if deemed appropriate, and have provided elsewhere for studies on these issues.
Requests for Comments to Improve Disability Evaluation
Present law
No provision.House bill
No provision.Senate amendment
Requires the Commissioner to request comments in the Federal Register regarding improvements to the disability evaluation and determination procedures for individuals under age 18 to ensure the comprehensive assessment of such individuals.Conference agreement
The conference agreement follows the House bill (i.e., no provision).
Changes to SSI Childhood Regulations
Present law
Under the disability determination process for children, SSA first determines if a child meets or equals the ``Listing of Impairments'' in Federal regulations. Under the Listings that relate to mental disorders, maladaptive behavior may be scored twice, in domains of social functioning and of personal/behavior functioning.
Under the disability determination process for children, individuals who do not meet or equal the Listing of Impairments are subject to an ``Individualized Functional Assessment'' (IFA). This assessment is intended to determine whether, or to what extent, a child can engage in age-appropriate activities. If the child cannot, the child may be determined disabled.House bill
The Commissioner of Social Security shall eliminate references in the Listing of Impairments to maladaptive behavior among medical criteria for evaluation of mental and emotional disorders in the domain of personal/behavioral function.
The Commissioner of Social Security shall discontinue use of the Individualized Functional Assessment for children set forth in the Code of Federal Regulations.Senate amendment
Identical to House bill.Conference agreement
The conference agreement follows the House bill. Medical Improvement Review Standard as it Applies to Individuals Under the Age of 18
Present law
No provision.House bill
This section contains technical modifications to the medical improvement review standard based on the new definition of childhood disability.Senate amendment
Identical to the House bill.Conference agreement
The conference agreement follows the House bill.Effective datesPresent law
No provision.House bill
Changes in eligibility rules apply to new applications and pending requests for administrative or judicial review on or after the date of enactment, without regard to whether regulations have been issued.
No later than 1 year after the date of enactment, the Commissioner shall redetermine the eligibility of any child receiving benefits on the date of enactment who would lose eligibility under these provisions.
Benefits of current recipients will continue until their redetermination. Should a child be found ineligible, their benefits will end following redetermination.
No later than January 1, 1997, the Commissioner must notify individuals whose eligibility for SSI benefits will terminate.
The Commissioner must report to Congress within 180 days regarding progress made in implementing the SSI children's provisions.
The Commissioner shall submit final regulations to the Committees of jurisdiction of Congress for their review at least 45 days before they become effective.Senate amendment
Identical to the House bill, except that benefits of current recipients will continue until the later of July 1, 1997, or the date of redetermination. The Senate amendment also includes language which authorizes and appropriates $300 million to remain available for fiscal year 1997-1999 for the Commissioner to conduct continuing disability reviews (CDRs) and redeterminations.Conference agreement
The conference agreement follows the Senate amendment with modification to authorize additional administrative funding for SSA: $150 million for fiscal year 1997 and $100 million for fiscal year 1998, to conduct SSI CDRs and redeterminations. The funding of CDRs and redeterminations will follow the usual appropriation process, except that the amounts above a base funding level will not be subject to discretionary caps.
7. Eligibility Redeterminations and Continuing Disability Reviews
Present law
Current law specifies that the Commissioner must reevaluate under adult disability criteria the eligibility of at least one-third of SSI children who turn age 18 in each of the fiscal years 1996, 1997, and 1998 (the CDR must be completed before these children reach age 19) and report to Congress no later than October 1, 1998.House bill
At least once every 3 years the Commissioner must conduct CDRs of children receiving SSI benefits. For children who are eligible for benefits and whose medical condition is not expected to improve, the requirement to perform such reviews does not apply (unless the Commissioner decides otherwise). At the time of review the parent or guardian must present evidence demonstrating that the recipient is and has been receiving appropriate treatment for her disability.
The eligibility for all children qualifying for SSI benefits must be redetermined using the adult criteria within 1 year after turning 18 years of age. The review will be considered a substitute for any other review required under the changes made in this section. The ``minimum number of reviews'' and the ``sunset'' provisions of section 207 of the Social Security Independence and Program Improvements Act of 1994 are eliminated.
A review must be conducted 12 months after the birth of a child whose low birth weight is a contributing factor to the child's disability. At the time of review, the parent or guardian must present evidence demonstrating that the recipient is and has been receiving appropriate treatment for his disability.Senate amendment
Identical to House bill.Conference agreement
The conference agreement follows the House bill.
8. Additional Accountability Requirements
Disposal of Resources for Less Than Fair Market Value
Present law
No provision.House bill
The bill delays eligibility for any child applicant whose parents or guardians, in order to qualify a child for benefits, dispose of assets for less than fair market value within 36 months of the date of application. The provision stipulates that any assets in a trust in which the child
(i.e., parent or representative payee) has control shall be considered assets of the child and subject to the 36-month
``look-back'' rule. The delay (in months) is equal to the amount of assets divided by the SSI standard benefit. This provision is effective 90 days after the date of enactment.Senate amendment
No provision.Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
Treatment of Assets Held in Trust
Present law
No provision. Under current operating policy, a trust is not considered a resource if the SSI recipient does not have the legal authority to access trust assets for his or her own food, clothing, or shelter.House bill
Stipulates that in determining the resources of an individual under the age of 18, a revocable trust (i.e., the person has legal access to the assets of the trust) must be considered a resource available to the individual. In the case of an irrevocable trust, if there are any circumstances under which payment from the trust could be made to or for the benefit of the individual, then such payments are to be considered as resource available to the individual. The Commissioner of Social Security may waive these provisions if the Commissioner determines, on the basis of criteria prescribed in regulations, that such application would be an undue hardship on the individual.
Any earnings of, or additions to the principal of the trust would be considered income if they are available to the individual.Senate amendment
No provision.Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
Requirement to Establish Account
Present law
No provision.House Bill
Requires the representative payee (i.e., the parent) of an individual under the age of 18 to establish an account in a financial institution for the receipt of past-due SSI payments if the lump-sum payment amounts to more than 6 times the maximum monthly SSI payment (including any State supplement). A representative payee shall use the funds in the account for the following expenses: education or job skills training; personal needs assistance; special equipment or housing modifications related to the child's disability; medical treatment; appropriate therapy or rehabilitation; or any other item or service that the Commissioner determines is appropriate.
Once the account is established the representative payee may deposit any past-due benefits owed to the recipient and any other funds representing an SSI underpayment provided the amount is more than the maximum monthly SSI benefit payment.
The funds in these accounts would not be counted as a resource and the interest and other earnings on the account would not be considered income in determining SSI eligibility.Senate amendment
Identical to House provision, except allows rather than mandates the representative payee to use the funds for allowable expenses.Conference agreement
The conference agreement follows the House bill.
9. Reduction in Cash Benefits Payable to Institutionalized Individuals
Whose Medical Costs Are Covered by Private Insurance
Present law
Federal law stipulates that when individuals enter a hospital or other medical institution for which more than half of the bill is paid by the Medicaid program, their monthly SSI benefit is reduced to $30 per month. This personal needs allowance is intended to pay for small personal expenses, with the cost of maintenance and medical care provided by the Medicaid program.House bill
Children in medical institutions whose medical costs are covered by private insurance would be treated the same as children whose bills are currently paid by Medicaid (that is, their monthly SSI cash benefit would be reduced to $30 per month).Senate amendment
Identical to House bill.Conference agreement
The conference agreement follows the House bill.
10. Regulations
Present law
No provision.House bill
The Commissioner of Social Security and the Secretary of HHS will prescribe necessary regulations within three months after enactment.Senate amendment
Identical to House bill.Conference agreement
The conference agreement follows the House bill.
Subtitle C--Additional Enforcement Provisions
11. Installment Payment of Large Past-Due SSI Benefits
Present law
No provision. House bill
If an individual is eligible for past-due benefits (after any withholding for reimbursement to a State for interim assistance) in an amount which exceeds 12 times the maximum monthly benefit payable to an eligible individual (currently
$470) or couple (currently $705) (plus any State supplementary payments), benefits will be paid in 3 installments made at 6-month intervals. The first and second installments may not exceed 12 times the maximum monthly benefit payable. Installment caps may be extended by certain debt (food, clothing, shelter, or medically necessary services, supplies, or equipment, or medicine) or the purchase of a home. Installment payments shall not apply to individuals whose medical impairment is expected to result in death in 12 months or for an individual who is ineligible and is likely to remain ineligible for the next 12 months.Senate amendment
Identical to House bill.Conference agreement
The conference agreement follows the House bill.
12. Recovery of SSI Overpayments from Social Security Benefits
Present law
Generally, when an overpayment of Social Security benefits is made, recovery shall be made by adjusting future payments or by recovering the overpayment from the individual.House bill
If the Commissioner is unable to recover the overpayment through future payment adjustments or direct recovery, the Commissioner may decrease any OASI or SSDI payment to the individual or their estate. As a result of this action, no individual may become eligible for SSI or eligible for increased SSI benefits.Senate amendment
No provision (due to Senate rule).Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
13. Regulations
Present Law
No provision.House bill
The Commissioner of Social Security and the Secretary of HHS will prescribe necessary regulations within 3 months after enactment.Senate amendment
Identical to House bill.Conference agreement
The conference agreement follows the House bill.
14. Repeal of Maintenance of Effort Requirements Applicable to Optional
State Programs for Supplementation of SSI
Present law
Since the beginning of the SSI program, States have had the option to supplement (with State funds) the Federal SSI payment. Subsequently, Congress passed section 1618 of the Social Security Act which in effect requires States to maintain such optional payments or lose eligibility for Medicaid funds. The purpose of section 1618 of the Social Security Act was to encourage States to pass along to SSI recipients the amount of any Federal SSI benefit increase. Section 1618 allows States to comply with the ``pass along/ maintenance of effort'' provision by either maintaining their State supplementary payment levels at or above March 1983, levels or by maintaining their supplementary payment spending so that total annual Federal and State expenditures will be at least equal to what they were in the prior 12-month period, plus any Federal cost-of-living increase, provided the State was in compliance for that period.House bill
Repeals the maintenance of effort requirements in Section 1618 applicable to optional State programs for supplementation of SSI benefits, effective on the date of enactment.Senate amendment
No provision, due to Senate rule.Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
Subtitle D--Studies Regarding Supplemental Security Income Program
15. Annual Report on the Supplemental Security Income Program
Present law
The Social Security Administration collects and publishes limited data on the SSI program.House bill
The Commissioner of Social Security must prepare and provide to the President and the Congress an annual report on the SSI program, which includes specified information and data. The report is due May 30 of each year.Senate amendment
Identical to the House bill, except stipulates the inclusion of historical and correct data on prior enrollment by public assistance recipients.Conference agreement
The conference agreement follows the House bill, modified by the Senate amendment.
16. Study of Disability Determination Process
Present law
No provision.House bill
Within 90 days of enactment, the Commissioner must contract with the National Academy of Sciences or another independent entity to conduct a comprehensive study of the disability determination process for SSI and SSDI. The study must examine the validity, reliability and consistency with current scientific standards of the Listings of Impairments cited above. The study must also examine the appropriateness of the definitions of disability (and possible alternatives) used in connection with SSI and SSDI, and the operation of the disability determination process, including the appropriate method of performing comprehensive assessments of individuals under age 18 with physical or mental impairments. The Commissioner must issue interim and final reports of the findings and recommendations of the study within 18 months and 24 months, respectively, from the date of contract for the study.Senate amendment
No provision, due to Senate rule.Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
17. Study by General Accounting Office
Present law
No provision.House bill
No later than January 1, 1999, the Comptroller General of the United States must study and report on the impact of the amendments and provisions made by this bill, and extra expenses incurred by families of children receiving benefits not covered by other Federal, State, or local programs.Senate amendment
Identical to House bill.Conference agreement
The conference agreement follows the House bill.
18. National Commission on the Future of Disability
Present law
No provision.House bill
This section establishes a new Commission on the future of disability.
The Commission must study all matters related to the nature, purpose and adequacy of all Federal programs for the disabled (and especially SSI and SSDI), including: projected growth in the number of individuals with disabilities; possible performance standards for disability programs; the adequacy of Federal rehabilitation research and training; and the adequacy of policy research available to the Federal government and possible improvements. The Commission must submit to the President and the proper Congressional committees recommendations and possible legislative proposals effecting needed program changes.
The Commission is to be composed of 15 members who are appointed by the President and Congressional leadership and who serve for the life of the Commission. Members are to be chosen based on their education, training or experience, with consideration for representing the diversity of individuals with disabilities in the U.S. The Commission membership will also reflect the general interests of the business and taxpaying community.
The Commission will have a director, appointed by the Chair, and appropriate staff, resources, and facilities.
The Commission may conduct public hearings and obtain information from Federal agencies necessary to perform its duties.
The Commission must issue an interim report to Congress and the President not later than 1 year prior to terminating. A final public report must be submitted prior to termination.
The Commission will terminate 2 years after first having met and named a chair and vice chair.
This section authorizes the appropriation of such funds as are necessary to carry out the purposes of the Commission.Senate amendment
No provision, due to Senate rule.Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
Title III: Child Support Enforcement
1. Reference to the Social Security Act
Present law
No provision.House bill
Unless otherwise specified, any reference in this title to an amendment to or repeal of a section or other provision is to the Social Security Act.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Subtitle A--Eligibility for Services; Distribution of Payments
2. State Obligation to Provide Child Support Enforcement Services
Present law
States are required to establish paternity for children born out of wedlock if they are recipients of AFDC or Medicaid, and to obtain child and spousal support payments from noncustodial parents of children receiving AFDC, Medicaid benefits, or foster care maintenance payments. States must provide child support collection or paternity determination services to persons not otherwise eligible if the person applies for services. Federal law requires States to cooperate with other States in establishing paternity (if necessary), locating absent parents, collecting child support payments, and carrying out other child support enforcement functions. In cases in which a family ceases to receive AFDC, States are required to provide appropriate notice to the family and continue to provide child support enforcement services without requiring the family to apply for services or charging an application fee.House bill
States must provide services, including paternity establishment and establishment, modification, or enforcement of support obligations, for children receiving benefits from the Temporary Assistance for Needy Families block grant
(TANF), foster care maintenance payments, Medicaid, and any child of an individual who applies for services. States must enforce support obligations with respect to children in their caseload and the custodial parents of such children. States must also make child support enforcement services available to individuals not residing within the State on the same terms as to individuals residing within the State. States are not required to provide services to families if the State determines, taking into account the best interests of the child, that good cause and other exceptions exist. The provision also makes minor technical amendments to section 454 of the Social Security Act.
When a family ceases to receive benefits from the TANF block grant, States are required to provide appropriate notice to the family and continue to provide child support enforcement services without requiring the family to apply for services or charging an application fee.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
3. Distribution of Child Support Collections
Present law
Federal law requires that child support collections be distributed as follows: First, up to the first $50 in current support is paid to the AFDC family (a ``disregard'' that does not affect the family's AFDC benefit or eligibility status). Second, the Federal and State governments are reimbursed for the AFDC benefit paid to the family in that month. Third, if there is money left, the family receives it up to the amount of the current month's child support obligation. Fourth, if there is still money left, the State keeps it to reimburse itself for any arrearages owed to it under the AFDC assignment (with appropriate reimbursement of the Federal share of the collection to the Federal government). If no arrearages are owed the State, the money is used to pay arrearages to the family; such moneys are considered income under the AFDC program and would reduce the family's AFDC benefit.
To receive AFDC benefits, a custodial parent must assign to the State any right to collect child support payments. This assignment covers current support and any arrearages that accumulated before the family began receiving public assistance, and lasts as long as the family receives AFDC.
Some States are required to provide monthly supplemental payments to AFDC recipients who have less disposable income now than they would have had in July 1975 because child support is paid to the child support agency instead of directly to the family. States required to make these supplemental payments are often referred to as ``fill-the-gap'' States. These States pay less assistance than their full need standard, and allow recipients to use child support income to make up all or part of the difference between the payment made by the State and the State's need standard.House bill
Several changes in the distribution rules under current law are made by this section. The $50 passthrough to families on AFDC is ended. In addition, distribution law is changed so that, beginning October 1, 1997, collections on arrearages that accumulated during the period after the family leaves welfare are paid to the State if the money was collected through the tax intercept and to the family if collected by any other method. Distribution law is also changed so that beginning on October 1, 2000, arrearages that accumulated during the period before the family went on welfare are paid to the State if the money was collected through the tax intercept and to the family if collected by any other method.
(Note: These new distribution rules require the assignment rules for pre-welfare arrearages to be changed so that families can be paid before States if the money was collected by a method other than the tax intercept; this change in assignment rules was made in Title I and will appear in Section 408(a)(3)(B) of the revised Social Security Act.)
By October 1, 1998, the Secretary must present a report to the Congress concerning whether post-assistance arrearages have helped mothers avoid welfare and about the effectiveness of the new distribution rules.
All assignments of support in effect when this proposal is enacted must remain in effect.
Several terms, including ``assistance from the State'',
``Federal share'', and ``State share'' are defined.
If States retain less money from collections than they retained in fiscal year 1995, States are allowed to retain the amount retained in fiscal year 1995.
If a State follows a ``fill-the-gap'' policy as outlined above, that State can continue to distribute funds to the family up to the amount needed to fill the gap. The provision also clarifies the relationship between gap payments and both the $50 passthrough and the State hold harmless provision.Senate amendment
Same, except Senate adds provision that stipulates that in the case of a family receiving assistance from an Indian tribe, the State distribute any support collected in accordance with any cooperative agreement between the State and the tribe.Conference agreement
The conference agreement follows the House bill and the Senate amendment with the modification that the House accepts the Senate provision on Indian tribes.
4. Privacy Safeguards
Present law
Federal law limits the use or disclosure of information concerning recipients of Child Support Enforcement Services to purposes connected with administering specified Federal welfare programs.House bill
States must implement safeguards against unauthorized use or disclosure of information related to proceedings or actions to establish paternity or to establish or enforce child support. These safeguards must include prohibitions on release of information where there is a protective order or where the State has reason to believe a party is at risk of physical or emotional harm from the other party. This provision is effective October 1, 1997.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
5. Right to Notification of Hearing
Present law
Most States have procedural due process requirements with respect to wage withholding. Federal law requires States to carry out withholding in full compliance with all procedural due process requirements of the State.House bill
Parties to child support cases under Title IV-D must receive notice of proceedings in which child support might be established or modified and must receive a copy of orders establishing or modifying child support (or a notice that modification was denied) within 14 days of issuance.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Subtitle B--Locate and Case Tracking
6. State Case Registry
Present law
Federal law requires that wage withholding be administered by a public agency capable of documenting payments of support and tracking and monitoring such payments.
Federal law requires that child support orders be reviewed and adjusted, as appropriate, at least once every three years.House bill
States must establish an automated State Case Registry that contains a record on each case in which services are being provided by the State agency, as well as each support order established or modified in the State on or after October 1, 1998.
The Registry may be established by linking local case registries of support orders through an automated information network.
The registry record will contain data elements on both parents, such as names, Social Security numbers and other uniform identification numbers, dates of birth, case identification numbers, and any other data the Secretary may require.
Each case record will contain the amount of support owed under the order and other amounts due or overdue (including interest or late payment penalties and fees), any amounts that have been collected and distributed, the birth date of any child for whom the order requires the provision of support, and the amount of any lien imposed by the State.
The State agency operating the registry will promptly establish, maintain, update and regularly monitor case records in the registry with respect to which services are being provided under the State plan. Establishing and updating support orders will be based on administrative actions and administrative and judicial proceedings and orders relating to paternity and support, as well as on information obtained from comparisons with Federal, State, and local sources of information, information on support collections and distributions, and any other relevant information.
The State automated system will be used to extract data for purposes of sharing and matching with Federal and State data bases and locator services, including the Federal Case Registry of Child Support Orders, the Federal Parent Locator Service, and Temporary Assistance for Needy Families and Medicaid agencies, as well as for conducting intrastate and interstate information comparisons.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
7. Collection and Disbursement of Support Payments
Present law
No provision, but States may provide that, at the request of either parent, child support payments be made through the child support enforcement agency or the agency that administers the State's income withholding system regardless of whether there is an arrearage. States must charge the parent who requests child support services a fee equal to the cost incurred by the State for these services, up to a maximum of $25 per year.House bill
By October 1, 1998, State child support agencies are required to operate a centralized, automated unit for collection and disbursement of payments on child support orders enforced by the child support agency and payments on orders issued after December 31, 1993 which are not enforced by the State agency but for which income is subject to withholding. The specifics of how States will establish and operate their State Disbursement Unit must be outlined in the State plan.
The State Disbursement Unit must be operated directly by the State agency, by two or more State agencies under a regional cooperative agreement, or by a contractor responsible directly to the State agency. The State Disbursement Unit may be established by linking local disbursement units through an automated information network if the Secretary agrees that the system will not cost more, take more time to establish, nor take more time to operate that a single State system. All States, including those that operate a linked system, must give employers one and only one location for submitting withheld income.
The Disbursement Unit must be used to collect and disburse support payments, to generate orders and notices of withholding to employers, to keep an accurate identification of payments, to promptly distribute money to custodial parents or other States, and to furnish parents with a record of the current status of support payments (but States are not responsible for records that predate passage of this legislation). The Unit shall use automated procedures, electronic processes, and computer-driven technology to the maximum extent feasible, efficient, and economical.
The Disbursement Unit must distribute all amounts payable within 2 business days after receiving money and identifying information from the employer or other source of periodic income, if sufficient information identifying the payee is provided. The Unit may retain arrearages in the case of appeals until they are resolved.
States must use their automated system to facilitate collection and disbursement including at least:
(1) transmission of orders and notices to employers within 2 days after receipt of the withholding notice;
(2) monitoring to identify missed payments of support; and
(3) automatic use of enforcement procedures when payments are missed.
It is the sense of Congress that in establishing a centralized unit for the collection of support payments, a State should choose the method of compliance which best meets the needs of parents, employers, and children.
This section of the proposal will go into effect on October 1, 1998. States that process child support payments through local courts can continue court payments until September 30, 1999.Senate amendment
Same, except Senate uses the term ``wages'' rather than
``income'' throughout this section. Senate amendment does not include the provision that States are not responsible for records that predate passage.Conference agreement
The conference agreement follows the House bill and the Senate amendment with the modification that the term
``income'' rather than ``wages'' is used throughout this section. In addition, the House ``sense of the Congress'' language was deleted.
8. State Directory of New Hires
Present law
In general, no provision. Section 1128 of the Social Security Act is an antifraud provision which excludes individuals and entities that have committed fraud from participation in medicare and State health care programs. Section 1128A pertains to civil monetary penalties and describes the appropriate procedures and proceedings for such penalties.House bill
State plans must include the provision that by October 1, 1997 States will operate a Directory of New Hires.
Establishment. States are required to establish a State Directory of New Hires to which employers and labor organizations in the State must furnish a report for each newly hired employee, unless reporting could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission as determined by the head of an agency. States that already have new hire reporting laws may continue to follow the provisions of their own law until October 1, 1998, at which time States must conform to Federal law.
Employer Information. Employers must furnish to the State Directory of New Hires the name, address, and Social Security number of every new employee and the name, address, and identification number of the employer. Multistate employers that report electronically or magnetically may report to the single State they designate; such employers must notify the Secretary of the name of the designated State. Agencies of the U.S. Government must report directly to the National Directory of New Hires (see below).
Timing of Report. Employers must report new hire information within 20 days of the date of hire. Employers that report new hires electronically or by magnetic tape must file twice per month; reports must be separated by not less than 12 days and not more than 16 days.
Reporting Format and Method. The report required in this section will be made on a W-4 form or the equivalent, and can be transmitted magnetically, electronically, or by first class mail. The decision of which reporting method to use is up to employers.
Civil Money Penalties on Noncomplying Employers. States have the option of setting a civil money penalty which shall be not less than $25 or $500 if, under State law, the failure is the result of a conspiracy between the employer and employee.
Entry of Employer Information. New hire information must be entered in the State data base within 5 business days of receipt from employer.
Information Comparisons. By May 1, 1998, each State Directory of New Hires must conduct automated matches of the Social Security numbers of reported employees against the Social Security numbers of records in the State Case Registry being enforced by the State agency and report the name, address, Social Security number, and the employer name, address, and identification number on matches to the State child support agency.
Transmission of Information. Within 2 business days of the entry of data in the registry, the State must transmit a withholding order directing the employer to withhold wages in accord with the child support order. Within 3 days, the State Directory of New Hires must furnish employee information to the National Directory of New Hires for matching with the records of other State case registries. The State Directory of New Hires must also report quarterly to the National Directory of New Hires information on wages and unemployment compensation taken from the quarterly report to the Secretary of Labor now required by Title III of the Social Security Act.
Other Uses of New Hire Information. The State child support agency must use the new hire information to locate individuals for purposes of establishing paternity as well as establishing, modifying, and enforcing child support obligations. New hire information must also be disclosed to the State agency administering the Temporary Assistance for Needy Families, Medicaid, Unemployment Compensation, Food Stamp, SSI, and territorial cash assistance programs for income eligibility verification, and to State agencies administering unemployment and workers' compensation programs to assist determinations of the allowability of claims. State and local government agencies must participate in quarterly wage reporting to the State employment security agency unless the agency performs intelligence or counterintelligence functions and it is determined that wage reporting could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission. States may disclose new hire information to agencies working under contract with the child support agency.
Disclosure to Certain Agents. States using private contractors are allowed to share information obtained from the Directory of New Hires with private entities working under contract with the State agency. Private contractors must comply with privacy safeguards.Senate amendment
Same, except under ``Other Uses of New Hire Information'' Senate Amendment has no provision allowing States to share information with agencies working under contract with the State.Conference agreement
The conference agreement follows the House bill and the Senate amendment with the modification that the House provision allowing private entities working under contract with child support agencies access to child support information is included.
9. Amendments Concerning Income Withholding
Present law
Since November 1, 1990, all new or modified child support orders that were being enforced by the State's child support enforcement agency have been subject to immediate income withholding. If the noncustodial parent's wages are not subject to income withholding (pursuant to the November 1, 1990 provision), such parent's wages would become subject to withholding on the date when support payments are 30 days past due. Since January 1, 1994, the law has required States to use immediate income withholding for nearly all new or modified support orders, regardless of whether a parent has applied for child support enforcement services. There are two circumstances in which income withholding does not apply: 1) one of the parents argues, and the court or administrative agency agrees, that there is good cause not to do so, or 2) a written agreement is reached between both parents which provides for an alternative arrangement. States must implement procedures under which income withholding for child support can occur without the need for any amendment to the support order or for any further action by the court or administrative entity that issued the order. States are also required to implement income withholding in full compliance with all procedural due process requirements of the State, and States must send advance notice to each nonresident parent to whom income withholding applies (with an exception for some States that had income withholding before enactment of this provision that met State due process requirements). States must extend their income withholding systems to include out-of-State support orders.House bill
States must have laws providing that all child support orders issued or modified before October 1, 1996, which are not otherwise subject to income withholding, will become subject to income withholding immediately if arrearages occur, without the need for judicial or administrative hearing. State law must also allow the child support agency to execute a withholding order through electronic means and without advance notice to the obligor. Employers must remit to the State Disbursement Unit, in a format prescribed by the Secretary, income withheld within five working days after the date such amount would have been paid to the employee. Employers cannot take disciplinary action against employees subject to wage withholding. All child support orders subject to income withholding, including those which are not part of the State IV-D program, must be processed through the State Disbursement Unit. In addition, States must notify noncustodial parents that income withholding has commenced and inform them of procedures for contesting income withholding. Employers must follow the withholding terms and conditions stated in the order; if the terms and conditions are not specified employers should follow those of the State in which the obligor lives. The section includes a definition of income to be used in interstate withholding and several conforming amendments to section 466 of the Social Security Act.Senate amendment
Same, except employers must remit income withheld to the State disbursement unit within 7 rather than 5 days. There are also minor wording differences in the rules relating to income withholding. There is also a difference in the House and Senate definitions of income.Conference agreement
The conference agreement follows the House bill and the Senate amendment with the modifications that employers are given 7 days rather than 5 days to remit withheld income and that the House definition of income is followed. With respect to this provision, ``timely-paid'' is demonstrated by postmark, or in the case of electronic payment, the date the electronic transmission is proven to have been initiated by the employer.
10. Locator Information from Interstate Networks
Present law
No provision.House bill
All State and the Federal Child Support Enforcement agencies must have access to the motor vehicle and law enforcement locator systems of all States.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
11. Expansion of the Federal Parent Locator Service
Present law
The law requires that the Federal Parent Locator Service
(FPLS) be used to obtain and transmit information about the location of any absent parent when that information is to be used for the purpose of enforcing child support. Federal law also requires departments or agencies of the United States to be reimbursed for costs incurred in providing requested information to the FPLS.
Information Comparisons and Other Disclosures. Upon request, the Secretary must provide to an ``authorized person'' (i.e., an employee or attorney of a child support agency, a court with jurisdiction over the parties involved, the custodial parent, the legal guardian, or the child's attorney) the most recent address and place of employment of any nonresident parent if the information is contained in the records of the Department of Health and Human Services or can be obtained from any other department or agency of the United States or of any State. The FPLS also can be used in connection with the enforcement or determination of child custody, visitation, and parental kidnapping. Federal law requires the Secretary of Labor and the Secretary of Health and Human Services to enter into an agreement to give the FPLS prompt access to wage and unemployment compensation claims information useful in locating a noncustodial parent or his employer.
Fees. ``Authorized persons'' who request information from FPLS must be charged a fee.
Restriction on Disclosure and Use. Federal law stipulates that no information shall be disclosed if the disclosure would contravene the national policy or security interests of the United States or the confidentiality of Census data.
Quarterly Wage Reporting. The Secretary of Labor must provide prompt access by the Secretary of HHS to wage and unemployment compensation claims information and data maintained by the Labor Department or State employment security agencies.House bill
The purposes of the Federal Parent Locator Service are expanded. For the purposes of establishing parentage, establishing support orders or modifying them, or enforcing support orders, the Federal Parent Locator Service will provide information to locate individuals who owe child support or against whom an obligation is sought or to whom such an obligation is owed. Information in the FPLS includes Social Security number, address, name and address of employer, wages and employee benefits (including information about health care coverage), and information about assets and debts. The provision also clarifies the statute so that parents with orders providing child custody or visitation rights are given access to information from the FPLS unless the State has notified the Secretary that there is reasonable evidence of domestic violence or child abuse or that the information could be harmful to the custodial parent or child.
The Secretary is authorized to set reasonable rates for reimbursing Federal and State agencies for the costs of providing information to the FPLS and to set reimbursement rates that State and Federal agencies that use information from the FPLS must pay to the Secretary.
Federal Case Registry of Child Support Orders. Establishes within the FPLS an automated registry known as the Federal Case Registry of Child Support Orders. The Federal Case Registry contains abstracts of child support orders and other information specified by the Secretary (such as names, Social Security numbers or other uniform identification numbers, and State case identification numbers) to identify individuals who owe or are owed support, or for or against whom support is sought to be established, and the State which has the case. States must begin reporting this information in accord with regulations issued by the Secretary by October 1, 1998.
National Directory of New Hires. This provision establishes within the FPLS a National Directory of New Hires containing information supplied by State Directories of New Hires. When fully implemented, the Federal Directory of New Hires will contain identifying information on virtually every person who is hired in the United States. In addition, the FPLS will contain quarterly data supplied by the State Directory of New Hires on wages and Unemployment Compensation paid. The Secretary of the Treasury must have access to information in the Federal Directory of New Hires for the purpose of administering section 32 of the Internal Revenue Code and the Earned Income Credit. The information for the National Directory of New Hires must be entered within 2 days of receipt, and requires the Secretary to maintain within the National Directory of New Hires a list of multistate employers that choose to send their report to one State and the name of the State so elected. The Secretary must establish a National Directory of New Hires by October 1, 1997.
Information Comparisons and Other Disclosures. The Secretary must verify the accuracy of the name, Social Security number, birth date, and employer identification number of individuals in the Federal Parent Locator Service with the Social Security Administration. The Secretary is required to match data in the National Directory of New Hires against the child support order abstracts in the Federal Case Registry at least every 2 working days and to report information obtained from matches to the State child support agency responsible for the case within 2 days. The information is to be used for purposes of locating individuals to establish paternity, and to establish, modify, or enforce child support orders. The Secretary may also compare information across all components of the FPLS to the extent and with the frequency that the Secretary determines will be effective. The Secretary will share information from the FPLS with several potential users including State agencies administering the Temporary Assistance for Needy Families program, the Commissioner of Social Security (to determine the accuracy of Social Security and Supplemental Security Income), and researchers under some circumstances.
Fees. The Secretary must reimburse the Commissioner of Social Security for costs incurred in performing verification of Social Security information and States for submitting information on New Hires. States or Federal agencies that use information from FPLS must pay fees established by the Secretary.
Restriction on Disclosure and Use. Information from the FPLS cannot be used for purposes other than those provided in this section, subject to section 6103 of the Internal Revenue Code (confidentiality and disclosure of returns and return information).
Information Integrity and Security. The Secretary must establish and use safeguards to ensure the accuracy and completeness of information from the FPLS and restrict access to confidential information in the FPLS to authorized persons and purposes.
Federal Government Reporting. Each department of the U.S. must submit the name, Social Security number, and wages paid the employee on a quarterly basis to the FPLS. Quarterly wage reporting must not be filed for a Federal or State employee performing intelligence or counter-intelligence functions if it is determined that filing such a report could endanger the employee or compromise an ongoing investigation.
Conforming Amendments. This section makes several conforming amendments to Titles III and IV of the Social Security Act, to the Federal Unemployment Tax Act, and to the Internal Revenue Code. Among the more important are that: State employment security agencies are required to report quarterly wage information to the Secretary of HHS or suffer financial penalties and that private agencies working under contract to State child support agencies can have access to certain specified information from IRS records under some circumstances.
Requirement for Cooperation. The Secretaries of HHS and Labor must work together to develop cost-effective and efficient methods of accessing information in the various directories required by this title; they must also consider the need to ensure the proper and authorized use of wage record information.Senate amendment
Same, except under ``Information Comparisons and Other Disclosures'' the Senate amendment drops the requirement that the Social Security Administration must determine the accuracy of payments under the Social Security and SSI programs.Conference agreement
The conference agreement follows the House bill and the Senate amendment with the modification that the agreement follows the Senate provision dropping the requirement that the Social Security Administration determine the accuracy of Social Security and SSI payments.
12. Collection and Use of Social Security Numbers for Use in Child
Support Enforcement
Present law
Federal law requires that in the administration of any law involving the issuance of a birth certificate, States must require each parent to furnish their Social Security number for the birth records. The State is required to make such numbers available to child support agencies in accordance with Federal or State law. States may not place Social Security numbers directly on birth certificates.House bill
States must have procedures for recording the Social Security numbers of applicants on the application for professional licenses, commercial driver's licenses, occupational licenses, and marriage licenses. States must also record Social Security numbers in the records of divorce decrees, child support orders, and paternity determination or acknowledgment orders. Individuals who die will have their Social Security number placed in the records relating to the death and recorded on the death certificate. There are several conforming amendments to title II of the Social Security Act.Senate amendment
Same, except difference in conforming amendment to Social Security Act.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Subtitle C--Streamlining and Uniformity of Procedures
13. Adoption of Uniform State Laws
Present law
States have several options available for pursuing interstate child support cases including direct income withholding, interstate income withholding, and long-arm statutes which require the use of the court system in the State of the custodial parent. In addition, States use the Uniform Reciprocal Enforcement of Support Act (URESA) and the Revised Uniform Reciprocal Enforcement of Support Act
(RURESA) to conduct interstate cases. Federal law imposes a Federal criminal penalty for the willful failure to pay past-due child support to a child who resides in a State other than the State of the obligor. In 1992, the National Conference of Commissioners on State Uniform Laws approved a new model State law for handling interstate child support cases. The new Uniform Interstate Family Support Act (UIFSA) is designed to deal with desertion and nonsupport by instituting uniform laws in all 50 States that limit control of a child support case to a single State. This approach ensures that only one child support order from one court or child support agency will be in effect at any given time. It also helps to eliminate jurisdictional disputes between States that are impediments to locating parents and enforcing child support orders across State lines. As of February 1996, 26 States and the District of Columbia had enacted UIFSA.House bill
By January 1, 1998, all States must have enacted the Uniform Interstate Family Support Act (UIFSA) and any amendments officially adopted by the National Conference of Commissioners of Uniform State Laws before January 1, 1998, and have the procedures required for its implementation in effect. States are allowed flexibility in deciding which specific interstate cases are pursued by using UIFSA and which cases are pursued using other methods of interstate enforcement. States must provide that an employer that receives an income withholding order follow the procedural rules that apply to the order under the laws of the State in which the noncustodial parent works.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment with additional clarifying provisions that conferees agreed to include at the request of the National Conference of Commissioners of Uniform State Laws. The Commissioners asked conferees to make two changes in House and Senate provisions. More specifically, conferees agreed to drop language in the section on income withholding in interstate cases and to insert replacement language approved by the Commissioners. This provides specific instructions to employers for rules to follow in processing interstate cases. Employers following these instructions are also provided with legal immunity.
14. Improvements to Full Faith and Credit for Child Support Orders
Present law
Federal law requires States to treat past-due support obligations as final judgments that are entitled to full faith and credit in every State. This means that a person who has a support order in one State does not have to obtain a second order in another State to obtain support due should the debtor parent move from the issuing court's jurisdiction. P.L. 103-383 restricts a State court's ability to modify a support order issued by another State unless the child and the custodial parent have moved to the State where the modification is sought or have agreed to the modification.House bill
The provision clarifies the definition of a child's home State, makes several revisions to ensure that full faith and credit laws can be applied consistently with UIFSA, and clarifies the rules regarding which child support orders States must honor when there is more than one order.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
15. Administrative Enforcement in Interstate Cases
Present law
No provision.House bill
States are required to have laws that permit them to send orders to and receive orders from other States. The transmission of the order itself serves as certification to the responding State of the arrears amount and of the fact that the initiating State met all procedural due process requirements. In addition, each responding State must, without requiring the case to be transferred to their State, match the case against its data bases, take appropriate action if a match occurs, and send the collections, if any, to the initiating State. States must keep records of the number of requests they receive, the number of cases that result in a collection, and the amount collected. States must respond to interstate requests within five days.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
16. Use of Forms in Interstate Enforcement
Present law
No provision.House bill
The Secretary of HHS, in consultation with State child support directors and not later than October 1, 1996, must issue forms that States must use for income withholding, for imposing liens, and for issuing administrative subpoenas in interstate cases. States must be using the forms by March 1, 1997.Senate amendment
Same, except minor differences in wording.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
17. State Laws Providing Expedited Procedures
Present law
States must have procedures under which expedited processes are in effect under the State judicial system or under State administrative processes for obtaining and enforcing support orders and for establishing paternity.
Federal regulations provide a number of safeguards in expedited cases, such as requiring that the due process rights of the parties involved be protected.
The Employee Retirement Income Security Act (ERISA) of 1974 supersedes any and all State laws. Under ERISA a noncustodial parent's pension benefits can only be garnished or withheld if the custodial parent has a qualified domestic relations order. Similarly, a pension plan administrator is obligated to adhere to medical support requirements only if the custodial parent has a qualified medical child support order.House bill
States must adopt a series of procedures to expedite both the establishment of paternity and the establishment, enforcement, and modification of support. These procedures must give the State agency the authority to take the following actions, subject to due process safeguards, without the necessity of obtaining an order from any other judicial or administrative tribunal:
(1) ordering genetic testing in appropriate cases;
(2) issuing subpoenas to obtain information necessary to establish, modify or enforce an order, with appropriate sanctions for failure to respond to the subpoena;
(3) requiring all entities in the State (including for-profit, nonprofit, and governmental employers) to provide information on employment, compensation and benefits of any employee or contractor in response to a request from the State IV-D agency or the IV-D agency of any other State, and to sanction failure to respond to such request;
(4) obtaining access to a variety of public and private records including: vital statistics, State and local tax records, real and personal property, occupational and professional licenses and records concerning ownership and control of corporations, partnerships and other business entities, employment security records, public assistance records, motor vehicle records, corrections records, and, subject to the nonliability of these private entities and the issuance of an administrative subpoena, information in the customer records of public utilities and cable TV companies, and records of financial institutions;
(5) directing the obligor or other payor to change the payee to the appropriate government entity in cases in which support is subject to an assignment or to a requirement to pay through the State Disbursement Unit;
(6) ordering income withholding in certain IV-D cases;
(7) securing assets to satisfy arrearages: by intercepting or seizing periodic or lump sum payments from States or local agencies including Unemployment Compensation, workers' compensation, judgements, settlements, lottery winnings, assets held by financial institutions, and public and private retirement funds; by attaching and seizing assets held in financial institutions; by attaching public and private retirement funds; and by imposing liens to force the sale of property; and
(8) increasing automatically the monthly support due to include amounts to offset arrears.
Expedited procedures must include the following rules and authority applicable with respect to proceedings to establish paternity or to establish, modify, or enforce support orders:
(1) Locator Information and Notice. Parties in paternity and child support actions must file and update information about identity, address, and employer with the tribunal and with the State Case Registry upon entry of the order. The tribunal can deem due process requirements for notice and service of process to be met in any subsequent action upon delivery of written notice to the most recent residential or employer address filed with the tribunal.
(2) Statewide Jurisdiction. The child support agency and any administrative or judicial tribunal have the authority to hear child support and paternity cases, to exert Statewide jurisdiction over the parties, and to grant orders that have Statewide effect; cases can also be transferred between local jurisdictions without additional filing or service of process.
Except to the extent that the provisions related to expedited procedures are consistent with requirements of the ERISA qualified domestic relations orders and the qualified medical child support orders, the expedited procedures do not alter, amend, modify, invalidate, impair or supersede ERISA requirements.
The automated systems being developed by States are to be used, to the maximum extent possible, to implement expedited procedures.Senate amendment
Same, except for a modification that alters the nonliability of entities that share information with child support officials and eliminates the reference to administrative subpoenas.Conference agreement
The conference agreement follows the House bill and the Senate amendment except that the agreement included the House provision strengthening the nonliability of entities that share information with child support officials.
Subtitle D--Paternity Establishment
18. State Laws Concerning Paternity Establishment
Present law
Establishment Process Available from Birth Until Age 18. Federal law requires States to have laws that permit the establishment of paternity until the child reaches age 18. As of August 16, 1984, these procedures would apply to a child for whom paternity has not been established or for whom a paternity action was brought but dismissed because of statute of limitations of less than 18 years was then in effect in the State.
Procedures Concerning Genetic Testing. Federal law requires States to implement laws under which the child and all other parties must undergo genetic testing upon the request of a party in contested cases.
Voluntary Paternity Acknowledgement. Federal law requires States to implement procedures for a simple civil process for voluntary paternity acknowledgment, including hospital-based programs.
Status of Signed Paternity Acknowledgement. Federal law requires States to implement procedures under which the voluntary acknowledgment of paternity creates a rebuttable presumption, or at State option, a conclusive presumption of paternity.
Bar on Acknowledgement Ratification Proceedings. Federal law requires States to implement procedures under which voluntary acknowledgment is admissible as evidence of paternity and the voluntary acknowledgment of paternity must be recognized as a basis for seeking a support order without requiring any further proceedings to establish paternity.
Admissibility of Genetic Testing Results. Federal law requires States to implement procedures which provide that any objection to genetic testing results must be made in writing within a specified number of days before any hearing at which such results may be introduced into evidence. If no objection is made, the test results must be admissible as evidence of paternity without the need for foundation testimony or other proof of authenticity or accuracy.
Presumption of Paternity in Certain Cases. Federal law requires States to implement procedures which create a rebuttable or, at State option, conclusive presumption of paternity based on genetic testing results indicating a threshold probability that the alleged father is the father of the child.
Default Orders. Federal law requires States to implement procedures that require a default order to be entered in a paternity case upon a showing of service of process on the defendant and any additional showing required by State law.House Bill
Establishment Process Available from Birth Until Age 18. States are required to have laws that permit paternity establishment until at least age 18 (or a higher limit at State option) even in cases that were previously dismissed because a statute of limitations of less than 18 years was then in effect.
Procedures Concerning Genetic Testing. The child and all other parties, unless good cause provisions are met, must undergo genetic testing upon the request of a party if the request is supported by a sworn statement establishing a reasonable possibility of parentage or nonparentage. When the tests are ordered by the State agency, States must pay the costs, subject to recoupment at State option from the father if paternity is established. Upon the request and advance payment by the contestant, States must seek additional testing if the original test result is contested.
Voluntary Paternity Acknowledgement.
(1) Simple Civil Process. States must have procedures that create a simple civil process for voluntary acknowledging paternity under which benefits, rights, and responsibilities of acknowledgement are explained to unwed parents before the acknowledgement is signed.
(2) Hospital Program. States must have procedures that establish a paternity acknowledgement program through hospitals.
(3) Paternity Services. States must have procedures that require the agency responsible for maintaining birth records to offer voluntary paternity establishment services. The Secretary must issue regulations governing voluntary paternity establishment services, including regulations on State agencies that may offer voluntary paternity acknowledgement services and the conditions such agencies must meet.
(4) Affidavit. States must develop their own voluntary acknowledgment form but the form must contain all the basic elements of a form developed by the Secretary. States must give full faith and credit to the forms of other States.
Status of Signed Paternity Acknowledgement.
(1) Inclusion in Birth Records. States must include the name of the father in the record of births to unmarried parents only if the father and mother have signed a voluntary acknowledgement of paternity or a court or administrative agency has issued an adjudication of paternity.
(2) Legal Finding. States must have procedures under which a signed acknowledgement of paternity is considered a legal finding of paternity unless rescinded within 60 days or the date of a judicial or administrative proceeding to establish a support order.
(3) Contest. States must have procedures under which a paternity acknowledgment can be challenged in court only on the basis of fraud, duress, or material mistake of fact, with the burden of proof on the challenger.
Bar on Acknowledgement Ratification Proceedings. No judicial or administrative proceedings are required or permitted to ratify a paternity acknowledgement which is not challenged by the parents.
Admissibility of Genetic Testing Results. States must have procedures for admitting into evidence accredited genetic tests, unless any objection is made in writing within a specified number of days, and if no objection is made, clarifying that test results are admissible without the need for foundation or other testimony.
Presumption of Paternity in Certain Cases. States must have laws that create a rebuttable or, at State option, conclusive presumption of paternity when results from genetic testing indicate a threshold probability that the alleged father is the father of the child.
Default Orders. A default order must be entered in a paternity case upon a showing of service of process on the defendant and any additional showing required by the State law.
No Right to Jury Trial. State laws must state that parties in a contested paternity action are not entitled to a jury trial.
In addition to all the above provisions that strengthen similar provisions of current law, the Committee report contains a number of new provisions that have no direct parallel in current law. These include:
Temporary Support Based on Probable Paternity. Upon motion of a party, State law must require issuance of a temporary support order pending an administrative or judicial determination of parentage if paternity is indicated by genetic testing or other clear and convincing evidence.
Proof of Certain Support and Paternity Establishment Costs. Bills for pregnancy, childbirth, and genetic testing must be admissible in judicial proceedings without foundation testimony and must constitute prima facie evidence of the cost incurred for such services.
Standing of Putative Fathers. Putative fathers must have a reasonable opportunity to initiate a paternity action.
Filing of Acknowledgement and Adjudications in State Registry of Birth Records. Both voluntary acknowledgements and adjudications of paternity must be filed with the State registry of birth records for data matches with the central Case Registry of Child Support Orders.
National Paternity Acknowledgement Affidavit. The Secretary is required to develop, in consultation with the States, the minimum requirements of an affidavit which includes the Social Security number of each parent to be used by States for voluntary acknowledgement of paternity.Senate amendment
Same, except under ``Voluntary Paternity Acknowledgement,'' the Senate amendment includes good cause exceptions.Conference agreement
The conference agreement follows the House bill and the Senate amendment with modification that the good cause exceptions are dropped.
19. Outreach for Voluntary Paternity Establishment
Present law
States are required to regularly and frequently publicize, through public service announcements, the availability of child support enforcement services.House bill
States must publicize the availability and encourage the use of procedures for voluntary establishment of paternity and child support.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
20. Cooperation by Applicants for and Recipients of Temporary Family
Assistance
Present law
AFDC applicants and recipients are required to cooperate with the State in establishing the paternity of a child and in obtaining child support payments unless the applicant or recipient is found to have good cause for refusing to cooperate. Under the ``good cause'' regulations, the child support agency may determine that it is against the best interests of the child to seek to establish paternity in cases involving incest, rape, or pending procedures for adoption. Moreover, the agency may determine that it is against the best interest of the child to require the mother to cooperate if it is anticipated that such cooperation will result in the physical or emotional harm of the child, parent, or caretaker relative.House bill
Individuals or their children who apply for or receive public assistance under the Temporary Assistance for Needy Families (TANF) program or the Medicaid program must cooperate, as determined by the State child support agency, with State efforts to establish paternity and establish, modify, or enforce a support order. State procedures must require both that applicants and recipients provide specific identifying information about the other parent and that applicants appear at interviews, hearings, and legal proceedings, unless the applicant or recipient is found to have good cause for refusing to cooperate. States must have
``good cause'' exceptions and they must take into account the best interests of the child. The definition of good cause, and the determination of good cause in specific cases, can be accomplished by the State agency administering TANF, child support enforcement, or Medicaid. States also must require the custodial parent and child to submit to genetic testing. States may not require the noncustodial parent to sign an acknowledgement of paternity or relinquish the right to genetic testing as a condition of cooperation. The State child support agency must notify the agencies administering the TANF Block Grant and Medicaid programs if noncooperation is determined.Senate amendment
Same, except imposes a penalty for noncooperation. If it is determined that an individual is not cooperating, and the individual does not qualify for any good cause or other exception, then the State must deduct not less than 25 percent of the Title IV-A assistance that otherwise would be provided to the family of the individual; and the State may deny the family any Title IV-A assistance. The Senate amendment also has references to Title XV not found in the House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment except that the Senate penalty of 25 percent is included. This provision is included in Title I (Block Grants for Temporary Assistance for Needy Families) of the bill.
Subtitle E--Program Administration and Funding
21. Performance-Based Incentives and Penalties
Present law
Incentive Adjustments to Federal Matching Rate. The Federal government reimburses approved administrative expenditures of States at a rate of 66 percent. In addition, the Federal government pays States an incentive amount ranging from six percent to 10 percent of both AFDC and non-AFDC collections.
Conforming Amendments. No provision.
Calculation of IV-D Paternity Establishment Percentage. States are required to meet Federal standards for the establishment of paternity. The major standard relates to the percentage obtained by dividing the number of children in the State who are born out of wedlock, are receiving AFDC or child support enforcement services, and for whom paternity has been established by the number of children who are born out of wedlock and are receiving AFDC or child support enforcement services. To meet Federal requirements, this percentage in a State must be at least 75 percent or meet the following standards of improvement from the preceding year:
(1) if the State paternity establishment ratio is between 50 and 75 percent, the State ratio must increase by 3 or more percentage points from the ratio of the preceding year; (2) if the State ratio is between 45 and 50, the ratio must increase at least 4 percentage points; (3) if the State ratio is between 40 and 45 percent, it must increase at least 5 percentage points; and (4) if the State ratio is below 40 percent, it must increase at least 6 percentage points. If an audit finds that the State's child support enforcement program has not substantially complied with the requirements of its State plan, the State is subject to a penalty. In accord with this penalty, the Secretary must reduce a State's AFDC benefit payment by not less than one percent nor more than 2 percent for the first failure to comply; by not less than 2 percent nor more than three percent for the second consecutive failure to comply; and by not less than three percent nor more than five percent for third or subsequent consecutive failure to comply.House bill
Incentive Adjustments to Federal Matching Rate. The Secretary, in consultation with State child support directors, must develop a proposal for a new incentive system that provides additional payments to States (i.e., above the base matching rate of 66 percent) based on performance and report details of the new system to the Committees on Ways and Means and Finance by March 1, 1997. The Secretary's new system must be revenue neutral. The current incentive system remains effective for fiscal years beginning before 2000.
Conforming Amendments. Conforming amendments are made in Sections 458 of the Social Security Act.
Calculation of IV-D Paternity Establishment Percentage. States have the option of calculating the paternity establishment rate by either counting only unwed births in the State IV-D caseload or by counting all unwed births in the State. The IV-D paternity establishment percentage for a fiscal year is equal to: (1) the total number of children in the State who were born out-of-wedlock, and who receive services under Part A or, at State option, Part D, and for whom paternity is acknowledged or established during the fiscal year, divided by (2) the total number of children born out-of-wedlock who receive services under Part A or E or, at State option, Part D. The Statewide paternity establishment percentage is similar except that all out-of-wedlock births in the fiscal year in the State are in the denominator and all paternities established are in the numerator. The requirements for meeting the standard are the same as current law except the 75 percent rule is increased to 90 percent. States with a paternity establishment percentage of between 75 percent and 90 percent must improve their performance by at least two percentage points per year. The noncompliance provisions of the child support program are modified so that the Secretary must take overall program performance into account.Senate amendment
Same, except minor wording difference in amendment of Section 452(g)(2).Conference agreement
The conference agreement follows the House bill and the Senate amendment.
22. Federal and State Review and Audits
Present law
States are required to maintain a full record of child support collections and disbursements and to maintain an adequate reporting system.
The Secretary must collect and maintain, on a fiscal year basis, up-to-date State-by-State statistics on each of the services provided under the child support enforcement program. The Secretary is also required to evaluate the implementation of State child support enforcement programs and conduct audits of these programs as necessary, but not less often than once every 3 years (or annually if a State has been found to be out of compliance with program rules).House bill
States are required to annually review and report to the Secretary, using data from their automatic data processing system, both information adequate to determine the State's compliance with Federal requirements for expedited procedures and timely case processing as well as the information necessary to calculate their levels of accomplishment and rates of improvement on the performance indicators in the proposal.
The Secretary is required to determine the amount (if any) of incentives or penalties. The Secretary must also review State reports on compliance with Federal requirements and provide States with recommendations for corrective action. Audits must be conducted at least once every 3 years, or more often in the case of States that fail to meet Federal requirements. The purpose of the audits is to assess the completeness, reliability, and security of data reported for use in calculating the performance indicators and to assess the adequacy of financial management of the State program.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
23. Required Reporting Procedures
Present law
The Secretary is required to assist States in establishing adequate reporting procedures and must maintain records of child support enforcement operations and of amounts collected and disbursed, including costs incurred in collecting support payments.House bill
The Secretary is required to establish procedures and uniform definitions for State collection and reporting of information necessary to measure State compliance with expedited processes.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
24. Automated Data Processing Requirements
Present law
Federal law (P.L. 104-35) requires that by October 1, 1997, States have an operational automated data processing and information retrieval system designed to control, account for, and monitor all factors in the support enforcement and paternity determination process, the collection and distribution of support payments, and the costs of all services rendered.
The automated data processing system must be capable of providing management information on all IV-D cases from initial referral or application through collection and enforcement. The automated data processing system must also be capable of providing security against unauthorized access to, or use of, the data in such system. To establish these automated data systems, the Federal government provided States with a 90 percent matching rate for the costs of development. This enhanced matching money expired on October 1, 1995.House bill
States are required to have a single Statewide automated data processing and information retrieval system which has the capacity to perform the necessary functions and with the required frequency, as described in this section. The State data system must be used to perform functions the Secretary specifies, including controlling and accounting for the use of Federal, State, and local funds and maintaining the data necessary to meet Federal reporting requirements in carrying out the program. The system must maintain the requisite data for Federal reporting, calculate the State's performance for purposes of the incentive and penalty provisions, and have in place systems controls to ensure the completeness, reliability, and accuracy of the data.
To promote security of information, the State agency must have safeguards to protect the integrity, accuracy, and completeness of, and access to and use of, data in the automated systems including restricting access to passwords, monitoring of access to and use of the system, conducting automated systems training, and imposing penalties for unauthorized use or disclosure of confidential data. The Secretary must prescribe final regulations for implementation of this section no later than 2 years after the date of the enactment of this Act.
The statutory provisions for State implementation of Federal automatic data processing requirements are revised to provide that, first, all requirements enacted on or before the date of enactment of the Family Support Act of 1988 are to be met by October 1, 1997. The requirements enacted on or before the date of enactment of this proposal must be met by October 1, 1999. The October 1, 1999 deadline will be extended by one day for each day by which the Secretary fails to meet the 2-year deadline for regulations. The Federal government will continue the 90 percent matching rate for 1996 and 1997 in the case of provisions outlined in advanced planning documents submitted before September 30, 1995; the enhanced match is also provided retroactively for funds expended since expiration of the enhanced rate on October 1, 1995. For fiscal years 1996 through 2001, the matching rate for the provisions of this section will be 80 percent.
The Secretary must create procedures to cap payments to States to meet the new requirements at $400,000,000 over 6 years (fiscal years 1996-2001) to be distributed among States by a formula set in regulations which takes into account the relative size of State caseloads and the level of automation needed to meet applicable automatic data processing requirements.Senate amendment
Same, except that requirements enacted after the Family Support Act must be met by October 1, 2000 (rather than October 1, 1999). Also, a difference in wording about payments in fiscal year 1998.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
25. Technical Assistance (and Funding of Parent Locator Service)
Present law
Annual appropriations are made to cover the expenses of the Administration for Children and Families, which includes the Federal Office of Child Support Enforcement (OCSE). Among OCSE's administrative expenses are the costs of providing technical assistance to the States.House bill
The Secretary can use 1 percent of the Federal share of child support collections on behalf of families in the Temporary Assistance for Needy Families program the preceding year to provide technical assistance to the States. Technical assistance can include training of State and Federal staff, research and demonstration programs, special projects of regional or national significance, and similar activities. The Secretary will receive 2 percent of the Federal share of collections on behalf of TANF recipients the preceding year for operation of the Federal Parent Locator Service to the extent that costs of the Parent Locator Service are not recovered by user fees.Senate amendment
Same, except the effective date is October 1, 1997.Conference agreement
The conference agreement follows the House bill and the Senate amendment except that the House effective date is followed.
26. Reports and Data Collection by the Secretary
Present law
The Secretary is required to submit to Congress, not later than 3 months after the end of the fiscal year, a complete report on all child support enforcement activities.House bill
In addition to current reporting requirements, the Secretary is required to report the following data to Congress in her annual report each fiscal year:
(1) the total amount of child support payments collected;
(2) the cost to the State and Federal governments of furnishing child support services;
(3) the number of cases involving families that became ineligible for aid under part A with respect to whom a child support payment was received;
(4) the total amount of current support collected and distributed;
(5) the total amount of past due support collected and distributed; and
(6) the total amount of support due and unpaid for all fiscal years.
The Secretary also must report the compliance, by State, with IV-D standards for responding to requests for child support assistance from other States and standards for distributing child support collections.Senate amendment
Same, except minor difference in wording in amendment to Section 452(a)(10).Conference agreement
The conference agreement follows the House bill and the Senate amendment.
27. Child Support Delinquency Penalty
Present law
No provision.House bill
States must impose an annual penalty of 10 percent on overdue support owed by noncustodial parents. The penalty is paid after the family has been repaid all arrearages and after the State has been repaid for welfare payments, if any, made to families.Senate amendment
No provision.Conference agreement
The conference agreement follows the Senate amendment by dropping this penalty provision.
Subtitle F--Establishment and Modification of Support Orders
28. Simplified Process for Review and Adjustment of Child Support
Orders
Present law
A child support order legally obligates noncustodial parents to provide financial support for their child and stipulates the amount of the obligation and how it is to be paid. In 1984, P.L. 98-378 required States to establish guidelines for establishing child support orders. In 1988, P.L. 100-485 made the guidelines binding on judges and other officials who had authority to establish support orders. P.L. 100-485 also required States to review and adjust individual child support orders once every three years under some circumstances. States are required to notify both resident and nonresident parents of their right to a review.House bill
States must review and, as appropriate, adjust child support orders at the request of the parents. In the case of orders being enforced against parents whose children are receiving benefits under Title IV-A of the Social Security Act, States may also review the order at their own option. No proof of change of circumstances is needed to initiate the review. States may adjust child support orders by either applying the State guidelines and updating the award amount or by applying a cost of living increase to the order. In the latter case, both parties must be given 30 days after notice of adjustment to contest the results. States may use automated methods to identify orders eligible for review, conduct the review, identify orders eligible for adjustment, and apply the appropriate adjustment to the orders based on the threshold established by the State. States are required to give parties one notice of their right to request review and adjustment, which may be included in the order establishing the support amount.Senate amendment
Major differences in the review and adjustment provisions; the House makes reviews optional while the Senate retains mandatory 3-year reviews of IV-A cases as under current law; also other differences in wording.Conference agreement
The conference agreement follows the House bill and the Senate amendment. The compromise provision preserves the mandatory review every 3 years if parents request a review but allows States some flexibility in reviewing child support cases in their welfare caseload.
29. Furnishing Consumer Reports for Certain Purposes Relating to Child
Support
Present law
The Fair Credit Act requires consumer reporting agencies to include in any consumer report information on child support delinquencies provided by or verified by a child support enforcement agency, which antedates the report by 7 years.House bill
This section amends the Fair Credit Reporting Act. In response to a request by the head of a State or local child support agency (or a State or local government official authorized by the head of such an agency), consumer credit agencies must release information if the person making the request makes all of the following certifications: that the consumer report is needed to establish an individual's capacity to make child support payments or determine the level of payments; that paternity has been established or acknowledged; that the consumer has been given at least 10 days notice by certified or registered mail that the report is being requested; and that the consumer report will be kept confidential, will be used solely for child support purposes, and will not be used in connection with any other civil, administrative, or criminal proceeding or for any other purpose. Consumer reporting agencies must also give reports to a child support agency for use in setting an initial or modified award.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
30. Nonliability for Financial Institutions Providing Financial Records
Present law
No provision.House bill
Financial institutions are not liable to any person for information provided to child support agencies. Child support agencies can disclose information obtained from depository institutions only for child support purposes. There is no liability for disclosures that result from good faith but erroneous interpretation of this statute. However, individuals who knowingly disclose information from financial records can have civil actions brought against them in Federal district court; the maximum penalty is $1,000 for each disclosure or actual damages plus, in the case of willful disclosure resulting from gross negligence, punitive damages, plus the costs of the action. Definitions of
``financial institution'' and ``financial record'' are included in this section.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Subtitle G--Enforcement of Support Orders
31. Internal Revenue Service Collection of Arrearages
Present law
If the amount of overdue child support is at least $750, the Internal Revenue Service (IRS) can enforce the child support obligation through its regular collection process, which may include seizure of property, freezing accounts, or use of other procedures if child support agencies request assistance according to prescribed rules (e.g., certifying that the delinquency is at least $750, etc.)House bill
The Internal Revenue Code is amended so that no additional fees can be assessed for adjustment to previously certified amounts for the same obligor.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
32. Authority to Collect Support From Federal Employees
Present law
Federal law allows the wages of Federal employees to be garnished to enforce legal obligations for child support or alimony. Federal law provides that moneys payable by the United States to any individual are subject to being garnished in order to meet an individual's legal obligation to provide child support or make alimony payments. An executive order issued on February 27, 1995 establishes the Federal government as a model employer in promoting and facilitating the establishment and enforcement of child support. Under the terms of the Executive Order, all Federal agencies, including the Uniformed Services, are required to cooperate fully in efforts to establish paternity and child support and to enforce the collection of child and medical support. All Federal agencies are to review their wage withholding procedures to ensure that they are in full compliance. Beginning no later than July 1, 1995, the Director of the Office of Personnel Management must publish annually in the Federal Register the list of agents (and their addresses) designated to receive service of withholding notices for Federal employees. Federal law states that neither the United States nor any disbursing officer or government entity shall be liable with respect to any payment made from moneys due or payable from the United States pursuant to the legal process. Federal law provides that money that may be garnished includes compensation for personal services, whether such compensation is denominated as wages, salary, commission, bonus, pay, or otherwise, and includes but is not limited to, severance pay, sick pay, incentive payments, and periodic payments. Includes definitions of ``United States'', ``child support'',
``alimony'', ``private person'', and ``legal process''.House bill
Consolidation and Streamlining of Authorities:
(1) Federal employees are subject to wage withholding and other actions taken against them by State child support enforcement agencies.
(2) Federal agencies are responsible for the same wage withholding and other child support actions taken by the State as if they were a private employer.
(3) The head of each Federal agency must designate an agent and place the agent's name, title, address, and telephone number in the Federal Register annually. The agent must, upon receipt of process, send written notice to the individual involved as soon as possible, but no later than 15 days, and to comply with any notice of wage withholding or respond to other process within 30 days. The agent also must respond to any order, process, or interrogatory about child support or alimony within 30 days after effective service of such requests.
(4) Current law governing allocation of moneys owed by a Federal employee is amended to give priority to child support, to require allocation of available funds, up to the amount owed, among child support claimants, and to allocate remaining funds to other claimants on a first-come, first-served basis.
(5) A government entity served with notice of process for enforcement of child support is not required to change its normal pay and disbursement cycle to comply with the legal process.
(6) Similar to current law, the U.S., the government of the District of Columbia, and disbursing officers are not liable for child support payments made in accord with this section; nor is any Federal employee subject to disciplinary action or civil or criminal liability for disclosing information while carrying out the provisions of this section.
(7) The President has the authority to promulgate regulations to implement this section as it applies to Federal employees of the Administrative branch of government; the President Pro Tempore of the Senate and Speaker of the House can issue regulations governing their employees; and the Chief Justice can issue regulations applicable to the Judicial branch.
(8) This section broadens the definition of income to include, in addition to wages, salary, commissions, bonus pay, allowances, severance pay, sick pay, and incentive pay, funds such as insurance benefits, retirement and pension pay (including disability pay if the veteran has waived a portion of retirement pay to receive disability pay), survivor's benefits, compensation for death and black lung disease, veteran's benefits, and workers' compensation; but to exclude from income funds paid to defray expenses incurred in carrying out job duties; amounts owed to the U.S. or used to pay Federal employment taxes, fines, or forfeitures ordered by court martial; and amounts withheld for tax purposes, for health insurance or life insurance premiums, for retirement contributions, or for life insurance premiums.
(9) This section includes definitions of ``United States'',
``child support'', ``alimony'', ``private person'', and
``legal process''.
Conforming Amendments. The House provision makes several conforming amendments to Title IV-D of the Social Security Act and Title 5 of the United States Code.
Military Retired and Retainer Pay. The definition of
``court'' in the Armed Forces title of the U.S. Code (title 10) is amended to include an administrative or judicial tribunal of a State which is competent to enter child support orders, and clarifies the definition of ``court order.'' The Secretary of Defense is required to send withheld amounts for child support to the appropriate State Disbursement Unit. The provision also clarifies that military personnel who have never been married to the parent of their child are under jurisdiction of the State child support program and the terms of section 459 of the Social Security Act.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
33. Enforcement of Child Support Obligations of Members of the Armed
Forces
Present law
Availability of Locator Information. The Executive Order issued February 27, 1995 requires a study which would include recommendations on how to improve service of process for civilian employees and members of the Uniformed Services stationed outside the United States.
Facilitating Granting of Leave for Attendance at Hearings. No provision.
Payment of Military Retired Pay in Compliance with Child Support Orders. Federal law requires allotments from the pay and allowances of any member of the uniformed service when the member fails to pay child (or child and spousal) support payments.House bill
Availability of Locator Information. The Secretary of Defense must establish a central personnel locator service that contains residential or, in specified instances, duty addresses of every member of the Armed Services (including members of the Coast Guard, if requested). The locator service must be updated within 30 days of the time an individual establishes a new address. Information from the locator service must be made available upon request to the Federal Parent Locator Service.
Facilitating Granting of Leave for Attendance at Hearings. The Secretary of each military department must issue regulations to facilitate granting of leave for members of the Armed Services to attend hearings to establish paternity or to establish child support orders. The terms ``court'' and
``child support'' are defined.
Payment of Military Retired Pay in Compliance with Child Support Orders. Child support orders received by the Secretary do not have to have been recently issued. The Secretary of each branch of the Armed Forces (including retirees, the Coast Guard, the National Guard, and the Reserves) is required to make child support payments from military retirement pay directly to any State to which a custodial parent has assigned support rights as a condition of receiving public assistance. Payments to satisfy current support or child support arrears must be made from disposable retirement pay. Payroll deductions must begin within 30 days or the first pay period after 30 days of receiving a wage withholding order.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
34. Voiding of Fraudulent Transfers
Present law
No provision.House bill
States must have in effect the Uniform Fraudulent Conveyance Act of 1981, the Uniform Fraudulent Transfer Act of 1984, or an equivalent law providing for voiding transfers of income or property that were made to avoid payment of child support. States also must have in effect procedures under which the State must seek to void a fraudulent transfer or obtain a settlement in the best interest of the child support creditor.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
35. Work Requirement for Persons Owing Past-Due Child Support
Present law
Public Law 100-485 required the Secretary to grant waivers to up to five States allowing them to provide JOBS services on a voluntary or mandatory basis to noncustodial parents who are unemployed and unable to meet their child support obligations. (In their report the conferees noted that the demonstrations would not grant any new powers to the States to require participation by noncustodial parents. The demonstrations were to be evaluated.)House bill
States must have procedures under which the State has the authority to issue an order or request that a court or administrative process issue an order that requires individuals owing past-due child support for a child receiving assistance under the Temporary Family Assistance program either to pay the support due, to have and be in compliance with a plan to pay child support, or to participate in work activities as deemed appropriate by the court or the child support agency. ``Past-due support'' is defined and a conforming amendment is made to sec. 466 of the Social Security Act.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
36. Definition of Support Order
Present law
No provision.House bill
A support order is defined as a judgement, decree, or order
(whether temporary, final, or subject to modification) issued by a court or an administrative agency for the support
(monetary support, health care, arrearages, or reimbursement) of a child (including a child who has reached the age of majority under State law) or of a child and the parent with whom the child lives, and which may include costs and fees, interest and penalties, income withholding, attorney's fees, and other relief.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
37. Reporting Arrearages to Credit Bureaus
Present law
Federal law requires States to implement procedures which require them to periodically report to consumer reporting agencies the name of debtor parents owing at least 2 months of overdue child support and the amount of child support overdue. However, if the amount overdue is less than $1,000, information regarding it shall be made available only at the option of the State. Moreover, information may only be made available after the noncustodial parent has been notified of the proposed action and has been given reasonable opportunity to contest the accuracy of the claim against him. States are permitted to charge consumer reporting agencies that request child support arrearage information a fee that does not exceed actual costs.House bill
States are required to periodically report to consumer credit reporting agencies the name of any noncustodial parent who is delinquent in the payment of support and the amount of overdue support owed by the parent. Before such a report can be sent, the obligor must have been afforded all due process rights, including notice and reasonable opportunity to contest the claim of child support delinquency.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
38. Liens
Present law
Federal law requires States to implement procedures under which liens are imposed against real and personal property for amounts of overdue support owed by a noncustodial parent who resides or owns property in the State.House bill
States must have procedures under which liens arise by operation of law against property for the amount of overdue support. States must grant full faith and credit to liens of other States if the originating State agency or party has complied with procedural rules relating to the recording or serving of liens, except such rules cannot require judicial notice or hearing prior to enforcement of the lien.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
39. State Law Authorizing Suspension of Licenses
Present law
No provision.House bill
States must have the authority to withhold, suspend, or restrict the use of drivers' licenses, professional and occupational licenses, and recreational licenses of individuals owing past-due support or failing, after receiving appropriate notice, to comply with subpoenas or warrants relating to paternity or child support proceedings.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
40. Denial of Passports for Nonpayment of Child Support
Present law
No provision.House bill
If an individual owes arrearages in excess of $5,000 of child support, the Secretary of HHS must request that the State Department deny, revoke, restrict, or limit the individual's passport. State child support agencies must have procedures for certifying to the Secretary arrearages in excess of $5,000 and for notifying individuals who are in arrears and providing them with an opportunity to contest. These provisions become effective on October 1, 1997.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
41. International Child Support Enforcement
Present law
No provision.House bill
(1) The Secretary of State, with concurrence of the Secretary of HHS, is authorized to declare reciprocity with foreign countries having requisite procedures for establishing and enforcing support orders. The Secretary may revoke reciprocity if she determines that the enforcement procedures do not continue to meet the requisite criteria.
(2) The requirements for reciprocity include procedures in the foreign country for U.S. residents--available at no cost--to establish parentage, to establish and enforce support orders for children and custodial parents, and to distribute payments.
(3) An agency of the foreign country must be designated a central authority responsible for facilitating support enforcement and ensuring compliance with standards by both U.S. residents and residents of the foreign country.
(4) The Secretary in consultation with the States, may establish additional standards that she judges necessary to promote effective international support enforcement.
(5) The Secretary of HHS is required to facilitate enforcement services in international cases involving residents of the United States and of foreign reciprocating countries, including developing uniform forms and procedures, providing information from the FPLS on the State of residence of the obligor, and providing such other oversight, assistance, or coordination as she finds necessary and appropriate.
(6) Where there is no Federal reciprocity agreement, States are permitted to enter into reciprocal agreements with foreign countries.
(7) The State plan must provide that request for services in international cases be treated the same as interstate cases, except that no application will be required and no costs will be assessed against the foreign country or the obligee (costs may be assessed at State option against the obligor).Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
42. Financial Institution Data Matches
Present law
No provision.House bill
States are required to implement procedures under which the State child support agency must enter into agreements with financial institutions doing business within the State to develop and operate a data match system, using automated data exchanges to the maximum extent feasible, in which such financial institutions are required to provide for each calendar quarter the name, address, Social Security number, and other identifying information for each noncustodial parent identified by the State who has an account at the institution and owes past-due child support. In response to a notice of lien or levy, the financial institution must encumber or surrender assets held by the institution on behalf of the noncustodial parent who is subject to the child support lien. The State agency may pay a fee to the financial institution. The financial institution is not liable for activities taken to implement the provisions of this section. Definitions of the terms ``financial institution'' and
``account'' are included.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
43. Enforcement of Orders Against Paternal or Maternal Grandparents in
Cases of Minor Parents
Present law
No provision. However, Wisconsin and Hawaii have State laws that make grandparents financially responsible for their minor children's dependents.House bill
With respect to a child of minor parents receiving support from the Temporary Assistance for Needy Families Block Grant, States have the option to enforce a child support order against the parents of the minor noncustodial parent.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
44. Nondischargeability in Bankruptcy of Certain Debts for the Support of a Child
Present law
Although child support payments may not be discharged in a filing of bankruptcy (i.e., the debtor parent cannot escape her child support obligation by filing a bankruptcy petition), a bankruptcy filing may cause long delays in securing child support payments. Pursuant to P.L. 103-394, a filing of bankruptcy will not stay a paternity, child support, or alimony proceeding. In addition, child support and alimony payments will be priority claims and custodial parents will be able to appear in bankruptcy court to protect their interests without paying a fee or meeting any local rules for attorney appearances.House bill
Title 11 of the U.S. Code and Title IV-D of the Social Security Act are amended to ensure that a debt owed to the State ``that is in the nature of support and that is enforceable under this part'' cannot be discharged in bankruptcy proceedings. This amendment applies only to cases initiated under Title 11 after enactment of this Act.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
45. Child Support Enforcement for Indian Tribes
Present law
There are about 340 federally recognized Indian tribes in the 48 contiguous States. Among these tribes there are approximately 130 tribal courts and 17 Courts of Indian Offenses. Most tribal codes authorize their courts to hear parentage and child support matters that involve at least one member of the tribe or person living on the reservation. This jurisdiction may be exclusive or concurrent with State court jurisdiction, depending on specified circumstances.House bill
No provision.Senate amendment
Any State that has Indian country may enter into a cooperation agreement with an Indian tribe if the tribe demonstrates that it has an established tribal court system with several specific characteristics. The Secretary may make direct payments to Indian tribes that have approved child support enforcement plans. Conforming amendments are included.Conference agreement
The conference agreement follows the Senate amendment.
Subtitle H--Medical Support
46. Correction to ERISA Definition of Medical Child Support Order
Present law
Public Law 103-66 requires States to adopt laws that require health insurers and employers to enforce orders for medical and child support and that forbid health insurers from denying coverage to children who are not living with the covered individual or who were born outside of marriage. Under Public Law 103-66, group health plans are required to honor ``qualified medical child support orders.''House bill
This provision expands the definition of medical child support order in ERISA to clarify that any judgement, decree, or order that is issued by a court of competent jurisdiction or by an administrative process has the force and effect of law.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
47. Enforcement of Orders for Health Care Coverage
Present law
Federal law requires the Secretary to require IV-D agencies to petition for the inclusion of medical support as part of child support whenever health care coverage is available to the noncustodial parent at reasonable cost.House bill
All orders enforced under this part must include a provision for health care coverage. If the noncustodial parent changes jobs and the new employer provides health coverage, the State must send notice of coverage, which shall operate to enroll the child in the health plan, to the new employer.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment. Subtitle I--Enhancing Responsibility and Opportunity for Non-
Residential Parents
48. Grants to States for Access and Visitation Programs
Present law
In 1988, Congress authorized the Secretary to fund for fiscal year 1990 and fiscal year 1991 demonstration projects by States to help divorcing or never-married parents cooperate with each other, especially in arranging for visits between the child and the nonresident parent.House bill
This proposal authorizes grants to States for access and visitation programs including mediation, counseling, education, development of parenting plans, and visitation enforcement. Visitation enforcement can include monitoring, supervision, neutral drop-off and pick-up, and development of guidelines for visitation and alternative custody agreements. An annual entitlement of $10 million is appropriated for these grants.
The amount of the grant to a State is equal to either 90 percent of the State expenditures during the year for access and visitation programs or the allotment for the State for the fiscal year. The allotment to the State bears the same ratio to the amount appropriated for the fiscal year as the number of children in the State living with one biological parent divided by the national number of children living with one biological parent. The Administration for Children and Families must adjust allotments to ensure that no State is allotted less than $50,000 for fiscal years 1997 or 1998 or less than $100,000 for any year after 1998. Projects are required to supplement rather than supplant State funds. States may use the money to create their own programs or to fund grant programs with courts, local public agencies, or nonprofit organizations. The programs do not need to be Statewide. States must monitor, evaluate, and report on their programs in accord with regulations issued by the Secretary.Senate amendment
Same, except delays the effective date for 1 year.Conference agreement
The conference agreement follows the House bill and the Senate amendment except that the House effective date is followed.
Subtitle J--Effective Dates and Conforming Amendments
49. Effective Dates and Conforming Amendments
Present law
No provision.House bill
Except as noted in the text of the House proposal for specific provisions, the general effective date for provisions in the proposal is October 1, 1996. However, given that many of the changes required by this proposal must be approved by State Legislatures, the proposal contains a grace period tied to the meeting schedule of State Legislatures. In any given State, the proposal becomes effective either on October 1, 1996 or on the first day of the first calendar quarter after the close of the first regular session of the State Legislature that begins after the date of enactment of the proposal. In the case of States that require a constitutional amendment to comply with the requirements of the proposal, the grace period is extended either for one year after the effective date of the necessary State constitutional amendment or five years after the date of enactment of the proposal. This section contains several conforming amendments to title IV-D of the Social Security Act. This section also replaces the term ``absent parent'' with ``noncustodial parent'' each place it occurs in title IV-D.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Title IV: Restricting Welfare and Public Benefits for Aliens
1. Statements of National Policy Concerning Welfare and Immigration
Present law
No provision.House bill
The Congress makes several statements concerning national policy with respect to welfare and immigration. These include the affirmation that it continues to be the immigration policy of the United States that noncitizens within the Nation's borders not depend on public resources, that noncitizens nonetheless have been applying for and receiving public benefits at increasing rates, and that it is a compelling government interest to enact new eligibility and sponsorship rules to assure that noncitizens become self-reliant and to remove any incentive for illegal immigration.Senate amendment
Similar to House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Subtitle A--Eligibility for Federal Benefits
2. Aliens Who Are Not Qualified Aliens Ineligible for Federal Public
Benefits
Present law
Current law limits alien eligibility for most major Federal assistance programs, including restrictions on, among other programs, Supplemental Security Income, Aid to Families with Dependent Children, housing assistance, and Food Stamps programs. Current law is silent on alienage under, among other programs, school lunch and nutrition, the Special Supplemental Food Program for Women, Infants, and Children
(WIC), Head Start, migrant health centers, and the earned income credit. Under the programs with restrictions, benefits are generally allowed for permanent resident aliens (also referred to as immigrants and green card holders), refugees, asylees, and parolees, but benefits (other than emergency Medicaid) are denied to nonimmigrants (or aliens lawfully admitted temporarily as, for example, tourists, students, or temporary workers) and illegal aliens. Benefits are permitted under AFDC, SSI, unemployment compensation, and nonemergency Medicaid to other aliens permanently residing in the United States under color of law (PRUCOL).House bill
Noncitizens who are ``not qualified aliens'' (generally, illegal immigrants and nonimmigrants such as students) are ineligible for all Federal public benefits, with limited exceptions for emergency medical services, emergency disaster relief, immunizations and testing and treatment of symptoms of communicable diseases, community programs necessary for the protection of life or safety, certain housing benefits
(only for current recipients), licenses and benefits directly related to work for which a nonimmigrant has been authorized to enter the U.S, and certain Social Security retirement benefits protected by treaty or statute.
Federal public benefits include: any grant, contract, loan, professional license or commercial license, and any retirement, welfare, health, disability, food assistance, unemployment or similar benefit provided by an agency or appropriated funds of the United States.Senate amendment
Similar to House, except that the exception for communicable diseases is limited to treatment of the disease itself and must be triggered by a finding by HHS that testing and treatment of a particular disease is necessary to prevent its spread.Conference agreement
The conference agreement follows the House bill.
The allowance for treatment of communicable diseases is very narrow. The conferees intend that it only apply where absolutely necessary to prevent the spread of such diseases. This is only a stop-gap measure until the deportation of a person or persons unlawfully here. It is not intended to provide authority for continued treatment of such diseases for a long term.
The allowance for emergency medical services under Medicaid is very narrow. The conferees intend that it only apply to medical care that is strictly of an emergency nature, such as medical treatment administered in an emergency room, critical care unit, or intensive care unit. The conferees do not intend that emergency medical services include pre-natal or delivery care assistance that is not strictly of an emergency nature as specified herein.
The intent of the conferees is that title I, part A of the Elementary and Secondary Education Act would not be affected by section 401 because the benefit is not provided to an individual, household, or family eligibility unit.
3. Limited Eligibility of Qualified Aliens for Certain Federal Programs
Present law
With the exception of certain buy-in rights under Medicare, immigrants (or aliens) lawfully admitted for permanent residence are eligible for major Federal benefits, but the ability of some immigrants to meet the needs tests for SSI, AFDC, and food stamps may be affected by the sponsor-to-alien deeming provisions discussed below. Refugees, asylees, and parolees also generally are eligible. Benefits are permitted under AFDC, SSI, unemployment compensation, and nonemergency Medicaid to other aliens permanently residing in the United States under color of law (PRUCOL).House bill
Legal noncitizens who are ``qualified aliens'' (i.e., permanent resident aliens, refugees, asylees, aliens paroled into the United States for a period of at least 1 year, and aliens whose deportation has been withheld) are ineligible for SSI, Medicaid, and food stamp benefits until they attain citizenship, with exceptions noted below. States are given the option of similarly restricting Federal cash welfare and Title XX benefits for qualified aliens, with the exception of those who are receiving benefits on the date of enactment as described below.
Refugees, asylees, and aliens whose deportation has been withheld are excepted for 5 years after being granted their respective statuses. Also excepted are legal permanent residents who have worked (in combination with their spouse and parents) for at least 10 years, and noncitizens who are veterans or on active duty or their spouse or unmarried child.
To allow individuals time to adjust to the revised policy, otherwise restricted aliens who are receiving SSI, food stamps, cash welfare, Medicaid or Title XX benefits on the date of enactment would remain eligible for at most 1 year after enactment. However, if a review determines the noncitizen would be ineligible if enrolling under the revised standards for SSI, Medicaid, and food stamps (for example, because the noncitizen failed to qualify under the refugee or work exemptions) such benefits would cease immediately. States have the option of ending cash welfare and social services benefits for current recipients after January 1, 1997.Senate amendment
Similar to House bill, except that Medicaid is included among the programs subject to State option rather than a blanket bar.Conference agreement
The conference agreement follows the Senate amendment.
4. Five-Year Limited Eligibility of Qualified Aliens for Federal Means-
Tested Public Benefit
Present law
See above.House bill
The proposal restricts most Federal means-tested benefits
(including SSI, food stamps, cash welfare, Medicaid, and title XX social services benefits) for permanent resident aliens who arrive after the date of enactment for their first 5 years in the United States. Programs that are not restricted to legal noncitizens arriving in the future include emergency medical services, non-cash emergency disaster relief, school lunch and child nutrition benefits, immunizations and testing and treatment for symptoms of communicable diseases, foster care and adoption payments under parts B and E of Title IV of the Social Security Act, community programs for the protection of life or safety, certain elementary and secondary education programs, Head Start, the Job Training Partnership Act, and higher education grants and loans.
Exceptions are made for refugees, asylees, aliens whose deportation is being withheld, and noncitizens who are veterans, on active duty, or the spouse or unmarried child of such an individual.Senate amendment
Excepted programs are similar to the House with the following differences:
(1) benefits under Head Start Act and the Job Training Partnership Act are not excepted;
(2) the exception for foster care and adoption assistance is limited to Part E of Title IV of the Social Security Act;
(3) the exception for testing and treatment of communicable diseases is more limited and must be triggered by a finding by HHS that detection and treatment of a particular disease is necessary to prevent its spread; and
(4) includes an exception for education assistance under titles III, VII, and VIII of the Public Health Service Act.
Excepted classes are similar to House bill.Conference agreement
The conference agreement follows the House bill and Senate amendment as follows. (1) The definition of Federal Means Tested Public Benefit (defined as ``a public benefit
(including cash, medical, housing, and food assistance and social services) of the Federal Government in which the eligibility of an individual, household, or family eligibility unit for benefits, or the amount of such benefits, or both are determined on the basis of income, resources, or financial need of the individual, household, or unit'') was deleted due to the Byrd rule. It is the intent of conferees that this definition be presumed to be in place for purposes of this title. (2) Regarding excepted programs, the conference agreement follows the House bill on testing and treatment of communicable diseases and by adding Head Start and the Job Training Partnership Act as excepted programs; the conference agreement adds refugee and entrant assistance as an excepted program; and the conference agreement follows the Senate amendment by adding education assistance under titles III, VII, and VIII of the Public Health Services Act as an excepted program.
5. Notification and Information Reporting
Present law
Notification. Under regulation, individual advance written notice must be given of an intent to suspend, reduce, or terminate SSI benefits.
Information Reporting. AFDC and SSI restrict the use or disclosure of information concerning applicants and recipients to purposes connected to the administration of needs-based Federal programs.House bill
Each Federal agency that administers an affected program shall post information and provide general notification to the public and to program recipients of changes regarding eligibility.
Agencies that administer SSI, housing assistance programs under the United States Housing Act of 1937, or block grants for temporary assistance for needy families (the successor program to AFDC) are required to furnish information about aliens they know to be unlawfully in the United States to the Immigration and Naturalization Service (INS) at least four times annually and upon INS request.Senate amendment
Similar to House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Subtitle B--Eligibility for State and Local Public Benefits Programs
6. Aliens Who Are Not Qualified Aliens or Nonimmigrants Ineligible for
State and Local Public Benefits
Present law
Under Plyler vs. Doe (457 U.S. 202 (1982)), States may not deny illegal alien children access to a public elementary education without authorization from Congress. However, the narrow 5-4 Supreme Court decision may imply that illegal aliens may be denied at least some State benefits and that Congress may influence the eligibility of illegal aliens for State benefits. Many, but not all, State general assistance laws currently deny illegal aliens means-tested general assistance.House bill
Illegal aliens are ineligible for all State and local public benefits, with limited exceptions for emergency medical services, emergency disaster relief, immunizations and testing and treatment for symptoms of communicable diseases, and programs necessary for the protection of life or safety. States may, however, pass laws after the date of enactment that specify that illegal aliens may be eligible for certain State or local benefits that otherwise would be denied under this section.Senate amendment
Similar to House bill, except that the exception for communicable diseases is more limited and must be triggered by a finding by HHS that testing and treatment of a particular disease is necessary to prevent its spread.Conference agreement
The conference agreement follows the House bill.
No current State law, State constitutional provision, State executive order or decision of any State or Federal court shall provide a sufficient basis for a State to be relieved of the requirement to deny benefits to illegal aliens. Laws, ordinances, or executive orders passed by county, city or other local officials will not allow those entities to provide benefits to illegal aliens. Only the affirmative enactment of a law by a State legislature and signed by the Governor after the date of enactment of this Act, that references this provision, will meet the requirements of this section.
The phrase ``affirmatively provides for such eligibility'' means that the State law enacted must specify that illegal aliens are eligible for State or local benefits. Persons residing under color of law shall be considered to be aliens unlawfully present in the United States and are prohibited from receiving State or local benefits, as defined, regardless of the enactment of any State law.
The conference agreement provides that no State or local government entity shall prohibit, or in any way restrict, any entity or official from sending to or receiving from the INS information regarding the immigration status of an alien or the presence, whereabouts, or activities of illegal aliens. It does not require, in and of itself, any government agency or law enforcement official to communicate with the INS.
The conferees intend to give State and local officials the authority to communicate with the INS regarding the presence, whereabouts, or activities of illegal aliens. This provision is designed to prevent any State or local law, ordinance, executive order, policy, constitutional provision, or decision of any Federal or State court that prohibits or in any way restricts any communication between State and local officials and the INS. The conferees believe that immigration law enforcement is as high a priority as other aspects of Federal law enforcement, and that illegal aliens do not have the right to remain in the United States undetected and unapprehended.
7. State Authority to Limit Eligibility of Qualified Aliens for State
Public Benefits
Present law
Under Graham v. Richardson (403 U.S. 365 (1971)), States may not deny legal permanent residents State-funded assistance that is provided to equally needy citizens without authorization from Congress.
Currently, there is no Federal law barring legal temporary residents (i.e., nonimmigrants) from State and local needs-based programs. In general, States are restricted in denying assistance to nonimmigrants where the denial is inconsistent with the terms under which the nonimmigrants were admitted. Where a denial of benefits is not inconsistent with Federal immigration law, however, States have broader authority to deny benefits and States often do deny certain benefits to nonimmigrants. Also, aliens in most nonimmigrant categories generally may have difficulty qualifying for many State and local benefits because of requirements that they be State
``residents.''House bill
States are authorized to determine the eligibility of
``qualified aliens,'' nonimmigrants, and aliens paroled into the United States for less than 1 year for any State or local means-tested public benefit program. Noncitizens receiving State and local benefits on the date of enactment would remain eligible for benefits until January 1, 1997.
Exceptions to State authority to deny benefits are made for refugees, asylees and aliens whose deportation has been withheld (for 5 years), permanent resident aliens who have worked in the United States (in combination with their spouse or parents) for at least 10 years, and noncitizens who are veterans or on active duty or their spouse or unmarried child.Senate amendment
Similar to House bill, except that under Byrd rule the definition of ``State public benefits'' (sec. 2412(c)) is deleted.Conference agreement
The conference agreement follows the House bill and the Senate amendment. The conference agreement does not include a definition of State public benefits in this section because the definition was dropped due to the Byrd rule. However, it is the intent of House and Senate conferees that the following definition be used by States in carrying out the authority granted by this section: ``STATE PUBLIC BENEFITS DEFINED.--The term `State public benefits' means any means-tested public benefits of a State or political subdivision of a State under which the State or political subdivision specifies the standards for eligibility, and does not include any Federal public benefit.''
Subtitle C--Attribution of Income and Affidavits of Support
8. Federal Attribution of Sponsor's Income and Resources to Alien
Present law
Federal Benefits. In determining whether an alien meets the means test for AFDC, SSI (except in cases of blindness or disability occurring after entry), and food stamps, the resources and income of an individual who filed an affidavit of support (``sponsor'') for the alien (and the income and resources of the individual's spouse) are taken into account during a designated period after entry. Sponsor-to-alien deeming provisions were added to these three programs in part because several courts have found that affidavits of support, under current practice, do not obligate sponsors to reimburse government agencies for benefits provided to sponsored aliens. See below.
Amounts of Income and Resources Deemed. While the offset formulas vary among the programs, the amount of income and resources deemed under AFDC, SSI, and Food Stamps is reduced by certain offsets to provide for some of the sponsor's own needs.
Length of Deeming Period. For AFDC and Food Stamps, sponsor-to-alien deeming applies to a sponsored alien seeking assistance within 3 years of entry. Through September 1996, sponsor-to-alien deeming applies to a sponsored alien seeking SSI within 5 years of entry, after which the deeming period reverts to 3 years.
Review Upon Reapplication. Regulations implementing the food stamp program expressly require providing information on a sponsor's resources as part of recertification.
Application. No provision.House bill
Federal Benefits. During the applicable deeming period (see
``Length of Deeming Period'' below), the income and resources of a sponsor and the sponsor's spouse are to be taken into account under all Federally-funded means-tested programs
(with the exception of the programs below) in determining the sponsored individual's neediness. Excepted programs are emergency medical services, emergency disaster relief, school lunch and child nutrition assistance, immunizations and testing and treatment for symptoms of communicable diseases, certain programs that protect life, safety, or public health, certain foster care and adoption assistance, Head Start, Job Training Partnership Act programs, certain elementary and secondary education programs, and higher education grants and loans.
Amounts of Income and Resources Deemed. The full income and resources of the sponsor and the sponsor's spouse are deemed to be that of the sponsored alien.
Length of Deeming Period. Deeming extends until citizenship, unless the noncitizen has worked for at least 10 years in the United States (either individually or in combination with the noncitizen's spouse and parents).
Review Upon Reapplicaiton. Whenever a sponsored noncitizen is required to reapply for benefits under any Federal means-tested public benefits program, the agency must review the income and resources deemed to the sponsored noncitizen.
Application. For programs that already deem income and resources on the date of enactment, the changes in this section apply immediately; other programs must implement changes required within 180 days after the date of enactment.Senate amendment
Federal Benefits. Under the Byrd rule, the definition of
``Federal means-tested program'' (sec. 2403(c)(1)) is deleted.
Otherwise similar to House bill, with differences in exceptions to Federal means-tested programs noted above for the 5-year bar.
Amounts of Income and Resources Deemed. Similar to House bill.
Length of Deeming Period. Similar to House bill.
Review Upon Reapplication. Similar to House bill.
Application. Similar to House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment, with the modification of certain additional excepted programs as noted in item 4 above.
The allowance for treatment of communicable diseases is very narrow. The conferees intend that it only apply where absolutely necessary to prevent the spread of such diseases. This is only a stop-gap measure until the deportation of a person or persons unlawfully here. It is not intended to provide authority for continued treatment of such diseases for a long term.
The allowance for emergency medical services under Medicaid is very narrow. The conferees intend that it only apply to medical care that is strictly of an emergency nature, such as medical treatment administered in an emergency room, critical care unit, or intensive care unit. The conferees do not intend that emergency medical services include pre-natal or delivery care assistance that is not strictly of an emergency nature as specified herein.
9. Authority for States to Provide for Attribution of Sponsor's Income and Resources to the Alien with Respect to State Programs
Present law
The highest courts of at least two States have held that the Supreme Court decision barring State discrimination against legal aliens in providing State benefits without Federal authorization (Graham v. Richardson, 403 U.S. 365
(1971)) prohibits State sponsor-to-alien deeming requirements for State benefits.House bill
State and local governments may, for the deeming period that applies to Federal benefits, deem a sponsor's income and resources (and those of the sponsor's spouse) to a sponsored individual in determining eligibility for and the amount of needs-based benefits. State and local governments may not require deeming for the following State public benefits: emergency medical services, emergency disaster relief, school lunch and child nutrition assistance, immunizations and testing and treatment for symptoms of communicable diseases, foster care and adoption payments, and certain programs to protect life and safety.Senate amendment
Similar to House bill, except that the exception for communicable diseases is limited to testing and treatment of the disease itself and must be triggered by a finding by the chief State health official that it is necessary to prevent spread of the disease.Conference agreement
The conference agreement follows the House bill.
10. Requirements for Sponsor's Affidavit of Support
Present law
In General. Administrative authorities may request an affidavit of support on behalf of an alien seeking permanent residency pursuant to regulation. Requirements for affidavits of support are not specified by statute.
Under the Immigration and Nationality Act, an alien who is likely to become a public charge may be excluded from entry unless this restriction is waived, as is the case for refugees. By regulation and administrative practice, the State Department and the Immigration and Naturalization Service permit a prospective permanent resident alien (also immigrant or green card holder) who otherwise would be excluded as a public charge (i.e., because of insufficient means or prospective income) to overcome exclusion through an affidavit of support or similar document executed by an individual in the United States commonly called a
``sponsor.'' It has been reported that roughly one-half of the aliens who obtain legal permanent resident status have had affidavits of support filed on their behalf.
Various State court decisions and decisions by immigration courts have held that the affidavits of support, as currently constituted, do not impose a binding obligation on the sponsor to reimburse State agencies providing aid to the sponsored alien.
Forms. No statutory provision. The Department of Justice issues a form (Form I-134) that complies with current sponsorship guidelines.
Notification of Change of Address. There is no express requirement under current administrative practice that sponsors inform welfare agencies of a change in address. However, a sponsored alien who applies for benefits for which deeming is required must provide various information regarding the alien's sponsor.
Reimbursement of Government Expenses. Various State court decisions and decisions by immigration courts have held that these affidavits, as currently constituted, do not impose a binding obligation on the sponsor to reimburse State agencies providing aid to the sponsored alien.
Definitions. There are no firm administrative restrictions on eligibility to execute an affidavit of support. There is no definition of ``Means-tested Public Benefits Program''.
Effective Date. No provision.
Benefits Not Subject to Reimbursement. No provision.House bill
In General. The proposal provides that when affidavits of support are required, they must comply with the following:
Affidavits of support must be executed as contracts that are legally enforceable against sponsors by Federal, State, and local agencies with respect to any means-tested benefits
(with exceptions noted below) paid to sponsored aliens before they become citizens.
Affidavits of support must be enforceable against the sponsor by the sponsored alien.
Reimbursement shall be requested for all Federal, State or local need-based programs with the exceptions noted below.
To qualify to execute an affidavit of support, an individual must meet the revised definition of sponsor below.
Governmental entities that provide benefits may seek reimbursement up to 10 years after a sponsored alien last receives benefits.
Sponsorship extends until the alien becomes a citizen.
Forms. The Attorney General, in consultation with the Secretary of State and the Secretary of HHS, shall formulate an affidavit of support within 90 days after enactment, consistent with this section.
Notification of Change of Address. Until they no longer are potentially liable for reimbursement of benefits paid to sponsored individuals, sponsors must notify the Attorney General and the State, district, territory or possession in which the sponsored individual resides of any change of their address within 30 days of moving. Failure to notify may result in a civil penalty of up to $2,000 or, if the failure occurs after knowledge that the sponsored individual has received a reimbursable benefit, of up to $5,000.
Reimbursement of Government Expenses. If a sponsored alien receives any benefit under any means-tested public assistance program, the appropriate Federal, State, or local official shall request reimbursement by the sponsor in the amount of such assistance. Thereafter the official may seek reimbursement in court if the sponsor fails to respond within 45 days of the request that the sponsor is willing to begin repayments. The official also may seek reimbursement through the courts within 60 days after a sponsor fails to comply with the terms of repayment. The Attorney General in consultation with the Secretary of HHS, shall prescribe regulations on requesting reimbursement. No action may be brought later than 10 years after the alien last received benefits.
Definitions. A ``sponsor'' is a citizen or an alien lawfully admitted to the United States for permanent residence who petitioned for immigration preference for the sponsored alien, is at least 18 years of age, and resides in any State.
A ``Means-Tested Public Benefits Program'' is a program of public benefits of the Federal, State or local government in which eligibility for or the amount of, benefits or both are determined on the basis of income, resources, or financial need.
Effective Date. The changes regarding affidavits of support shall apply to affidavits of support executed no earlier than 60 days or later than 90 days after the Attorney General promulgates the form.
Benefits Not Subject to Reimbursement. Governmental entities cannot seek reimbursement with respect to:
emergency medical services;
emergency disaster relief;
school lunch and child nutrition assistance;
payments for foster care and adoption assistance;
immunizations and testing for and treatment of communicable diseases;
certain programs that protect life, safety, or public health;
postsecondary education benefits;
means-tested elementary and secondary education programs;
Head Start; and
Job Training Partnership Act programs.Senate amendment
In General. Under the Byrd rule, the definition of ``means-tested public benefits program'' (sec. 2423(a)) is deleted. Otherwise similar to House bill.
Forms. Similar to House bill.
Notification of Change of Address. Similar to House bill.
Reimbursement of Government Expenses. Similar to House bill.
Definitions. Similar to House bill. Definition for ``Means-tested public benefits program'' deleted under the Byrd rule.
Effective Date. Similar to House bill.
Benefits Not Subject to Reimbursement. Similar to House bill except:
does not add Head Start and Job Training Partnership Act programs to the list of excepted programs;
the exception for foster care and adoption assistance is limited to part E of Title IV of the Social Security Act;
the exception for testing and treatment of a communicable disease is more limited and must be triggered by a finding by HHS that it is necessary to prevent the disease's spread; and
adds exception for education assistance under titles III, VII, and VIII of the Public Health Service Act.Conference agreement
The conference agreement generally follows the House bill and Senate amendment. The definition of Means-Tested Public Benefits Program (defined as ``a public benefit (including cash, medical, housing, and food assistance and social services) of the Federal Government or of a State or political subdivision of a State in which the eligibility of an individual, household, or family eligibility unit for benefits under the program, or the amount of such benefits, or both are determined on the basis of income, resources, or financial need of the individual, household, or unit'') for purposes of this section was deleted due to the Byrd rule. It is the intent of conferees that this definition be presumed to be in place for purposes of this title. With regard to excepted programs, the conference agreement follows the House bill on testing and treatment of communicable diseases and by adding Head Start and Job Training Partnership Act as excepted programs; the conference agreement follows the Senate amendment by adding education assistance under titles III, VII, and VIII of the Public Health Services Act as an excepted program.
Subtitle D--General Provisions
11. Definitions
Present law
In General. Federal assistance programs that have alien eligibility restrictions generally reference specific classes defined in the Immigration and Nationality Act.
Qualified Alien. Some programs allow benefits for otherwise eligible aliens who are ``permanently residing under color of law (PRUCOL).'' This term is not defined under the Immigration and Nationality Act, and there has been some inconsistency in determining which classes of aliens fit within the PRUCOL standard.House bill
In General. Unless otherwise provided, the terms used in this title have the same meaning as defined in Section 101(a) of the Immigration and Nationality Act.
Qualified Alien. An alien who is a lawful permanent resident, refugee, asylee, or an alien who has been paroled into the United States for at least 1 year.Senate amendment
In General. Similar to House bill.
Qualified Alien. Similar to House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
12. Verification of Eligibility for Federal Public Benefits
Present law
State agencies that administer most major Federal programs with alienage restrictions generally use the SAVE (Systematic Alien Verification for Entitlements) system to verify the immigration status of aliens applying for benefits.House bill
The Attorney General must adopt regulations to verify the lawful presence of applicants for Federal benefits no later than 18 months after enactment. States must have a verification system that complies with these regulations within 24 months of their adoption, and must authorize necessary appropriations.Senate amendment
Similar to House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
13. Statutory Construction
Present law
No provision.House bill
This title addresses only program eligibility based on alienage and does not address whether any individual meets other eligibility criteria. This title does not address alien eligibility for basic education or for any program of foreign assistance.Senate amendment
Similar to House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
14. Communication Between State and Local Government Agencies and the
Immigration and Naturalization Service
Present law
The confidentiality provisions of various State statutes may prohibit disclosure of immigration status obtained under them. Some Federal laws, including the Family Education Rights and Protection Act, may deny funds to certain State and local agencies that disclose a protected individual's immigration status. Various localities have enacted laws preventing local officials from disclosing the immigration status of individuals to INS.House bill
No State or local government entity may be prohibited, or in any way restricted, from sending to or receiving from the Immigration and Naturalization Service information regarding the immigration status, lawful or unlawful, of an alien in the United States.Senate amendment
Similar to House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
15. Qualifying Quarters
Present law
No provision.House bill
In determining whether an alien may qualify for benefits under the exception for individuals who have worked at least 40 quarters while in the United States (see sections 402 and 421 above), work performed by parents and spouses may be credited to aliens under certain circumstances. Each quarter of work performed by the parent while an alien was under the age of 18 is credited to the alien, provided the parent did not receive any Federal public benefits during the quarter. Similarly, each quarter of work performed by a spouse of an alien during their marriage is credited to the alien, if the spouse did not receive any Federal public benefits during the quarter. Senate amendment
Similar to House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Subtitle E--Conforming Amendments
16. Conforming Amendments Relating to Assisted Housing
Present law
No provision.House bill
This section consists of a series of technical and conforming amendments.Senate amendment
Similar to House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Subtitle F--Earned Income Credit Denied to Unauthorized Employees
17. Earned Income Credit Denied to Individuals Not Authorized to be
Employed in the United States
[Note.--For further description of this and additional earned income credit provisions, see Title IX: Miscellaneous below.]Present law
Certain eligible low-income workers are entitled to claim a refundable credit of up to $3,556 in 1996 on their income tax return. The amount of the credit an eligible individual may claim depends upon whether the individual has one, more than one, or no qualifying children and is determined by multiplying the credit rate by the taxpayer's earned income up to an earned income amount. The maximum amount of the credit is the product of the credit rate and the earned income amount. For taxpayers with earned income (or adjusted gross income (AGI), if greater) in excess of the beginning of the phaseout range, the maximum credit amount is reduced by the phaseout rate multiplied by the amount of earned income
(or AGI, if greater) in excess of the beginning of the phaseout range. For taxpayers with earned income (or AGI, if greater) in excess of the end of the phaseout range, no credit is allowed.
In order to claim the credit, an individual must either have a qualifying child or meet other requirements. A qualifying child must meet a relationship test, an age test, an identification test, and a residence test. In order to claim the credit without a qualifying child, an individual must not be a dependent and must be over age 24 and under age 65.
To satisfy the identification test, individuals must include on their tax return the name and age of each qualifying child. For returns filed with respect to tax year 1996, individuals must provide a taxpayer identification number (TIN) for all qualifying children born on or before November 30, 1996. For returns filed with respect to tax year 1997 and all subsequent years, individuals must provide TINs for all qualifying children, regardless of their age. An individual's TIN is generally that individual's social security number.
The Internal Revenue Service may summarily assess additional tax due as a result of a mathematical or clerical error without sending the taxpayer a notice of deficiency and giving the taxpayer an opportunity to petition the Tax Court. Where the IRS uses the summary assessment procedure for mathematical or clerical errors, the taxpayer must be given an explanation of the asserted error and a period of 60 days to request that the IRS abate its assessment. The IRS may not proceed to collect the amount of the assessment until the taxpayer has agreed to it or has allowed the 60-day period for objecting to expire. If the taxpayer files a request for abatement of the assessment specified in the notice, the IRS must abate the assessment. Any reassessment of the abated amount is subject to the ordinary deficiency procedures. The request for abatement of the assessment is the only procedure a taxpayer may use prior to paying the assessed amount in order to contest an assessment arising out of a mathematical or clerical error. Once the assessment is satisfied, however, the taxpayer may file a claim for refund if he or she believes the assessment was made in error.House bill
Individuals are not eligible for the credit if they do not include their taxpayer identification number (and, if married, their spouse's taxpayer identification number) on their tax return. Solely for these purposes and for purposes of the present-law identification test for a qualifying child, a taxpayer identification number is defined as a social security number issued to an individual by the Social Security Administration other than a number issued under section 205(c)(2)(B)(i)(II) (or that portion of sec. 205(c)(2)(B)(i)(III) relating to it) of the Social Security Act (regarding the issuance of a number to an individual applying for or receiving Federally funded benefits).
If an individual fails to provide a correct taxpayer identification number, such omission will be treated as a mathematical or clerical error. If an individual who claims the credit with respect to net earnings from self-employment fails to pay the proper amount of self-employment tax on such net earnings, the failure will be treated as a mathematical or clerical error for purposes of the amount of credit allowed.Senate amendment
Similar to House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Title V: Child Protection Block Grant Programs and Foster Care,
Adoption Assistance, and Independent Living Programs
Subtitle A--Child Protection Block Grant Program and Foster Care,
Adoption Assistance, and Independent Living Programs
Present law
Under current law, there are at least 36 programs designed to help children who are victims of abuse or neglect. These programs address the child protection issue by supporting abuse reporting and investigation; abuse prevention; child and family assessment, preservation, and support; foster care; adoption; and training of social workers, foster parents, judges, and others. These programs can be divided into two general categories. The first are entitlement programs under jurisdiction of the Committee on Ways and Means and the Finance Committee, nearly all of which provide unlimited funding for foster and adoption maintenance payments, administrative costs, and training. The two exceptions are the Family Preservation and Support Program which provides capped entitlement funds to help States provide services that keep families together and prevent abuse, and the Independent Living program which provides capped entitlement funds to help children in foster care make the transition to living on their own. The second group of programs are appropriated programs. These programs are smaller and, except the Child Welfare Services Program, are generally under the jurisdiction of the Economic and Educational Opportunities Committee and the Labor and Human Resources Committee.House bill
The House provision retains all the open-ended entitlement programs to ensure that States have adequate resources to help abused children that must be removed from their homes. The provision also combines the two capped entitlement programs and many of the smaller programs into two block grants that will simplify administration, promote flexibility, and increase efficiency. Working in conjunction with the Committee on Economic and Educational Opportunity, the Ways and Means Committee has created a block grant that is identical to a block grant created by the Opportunities Committee. Across the two Committees, a total of 11 programs are combined into the new block grant structure. Programs under jurisdiction of the Opportunities Committee are mentioned briefly below to clarify the structure of the overall Federal program for helping abused children and their families.Senate amendment
The Senate amendment does not include the block grant; the amendment makes no changes in current law.Conference agreement
The conference agreement follows the Senate amendment.
Chapter 1--Block Grants to States for the Protection of Children
1. purpose
Present law
Child Welfare Services, now provided for in Title IV-B of the Social Security Act, are designed to help States provide child welfare services, family preservation, and community-based family support services.House bill
The proposed Child Protection Block Grant would replace current law under Title IV-B. The purpose of the Child Protection Block Grant is to:
(1) identify and assist families at risk of abusing or neglecting their children;
(2) operate a system for receiving reports of abuse or neglect of children;
(3) improve the intake, assessment, screening, and investigation of reports of abuse and neglect;
(4) enhance the general child protective system by improving risk and safety assessment tools and protocols;
(5) improve legal preparation and representation, including procedures for appealing and responding to appeals of substantiated reports of abuse and neglect;
(6) provide support, treatment, and family preservation services to families which are, or are at risk of, abusing or neglecting their children;
(7) support children who must be removed from or who cannot live with their families;
(8) make timely decisions about permanent living arrangements for children who must be removed from or who cannot live with their families;
(9) provide for continuing evaluation and improvement of child protection laws, regulations, and services;
(10) develop and facilitate training protocols for individuals mandated to report child abuse or neglect; and
(11) develop and enhance the capacity of community-based programs to integrate shared leadership strategies between parents and professionals to prevent and treat child abuse and neglect at the neighborhood level.Senate amendment
The amendment does not change current law.Conference agreement
The conference agreement follows the Senate amendment.
2. eligible states
Present law
To be eligible for funding under Title IV-B and IV-E, States must have State plans, developed jointly with the Secretary under Title IV-B, and approved by the Secretary under Title IV-E. In addition, to receive funds under the Child Abuse Prevention and Treatment Act (CAPTA), States must comply with certain requirements including submission of a State plan.
States must have a child welfare services plan developed jointly by the Secretary and the relevant State agency which provides for single agency administration and which describes services to be provided and geographic areas where services will be available. The State plan also must meet many other requirements, such as setting forth a 5-year statement of goals for family preservation and family support and assuring the review of progress toward those goals. For foster care and adoption assistance, States must submit for approval a Title IV-E plan providing for a foster care and adoption assistance program and satisfying numerous requirements. The Child Abuse Prevention and Treatment Act (CAPTA) requires States to have in effect a law for reporting known and suspected child abuse and neglect as well as providing for prompt investigation of child abuse and neglect reports, among many other requirements.
To receive funding under Title IV-B and IV-E of the Social Security Act, States must comply with certain procedures for removal of children from their families when necessary, must develop case plans for each child that are reviewed at least every 6 months and contain specified information, and must establish specific goals for the maximum number of eligible children who will remain in foster care for more than 24 months.
Under Title IV-B, for fiscal years beginning on or after April 1, 1996, State plans must provide assurances that:
(1) the State has completed an inventory of all children who, before the inventory, had been in foster care under the responsibility of the State for six months or more, which determined: (i) the appropriateness of, and necessity for, the foster care placement; (ii) whether the child could or should be returned to the parents of the child or should be freed for adoption or other permanent placement; and (iii) the services necessary to facilitate the return of the child or the placement of the child for adoption or legal guardianship;
(2) the State is operating to the satisfaction of the Secretary: (i) a statewide information system on children who are or have been in foster care in the last year; (ii) a case review system for each child receiving foster care under the supervision of the State; (iii) a service program designed to help children return to families from which they have been removed; or be placed for adoption; (iv) a preplacement preventive service program designed to help children at risk remain with their families; and
(3) the State has reviewed State policies and procedures in effect for children abandoned at birth; and is implementing
(or, will implement by October 31, 1996) such policies or procedures to enable permanent decisions with respect to the placement of such children to be made expeditiously. (For fiscal years beginning before April 1, 1996, these standards were incentive funding requirements that States had to meet to receive their full Title IV-B allotment, and were known as section 427 protections.)
Title IV-E State plans must provide that reasonable efforts will be made prior to the placement of a child in foster care to prevent or eliminate the need for removal of the child from her home and to make it possible for the child to return to her home.
Title IV-E State plans must provide that, where appropriate, all steps will be taken, including cooperative efforts with State AFDC and child support enforcement agencies, to secure an assignment of any rights to support of a child receiving foster care maintenance payments under Title IV-E.House bill
An ``Eligible State'' is one that has submitted to the Secretary, not later than October 1, 1996, and every 3 years thereafter, a plan which has been signed by the Chief Executive Officer of the State. The plan must outline the State's Child Protection Program and provide several certifications regarding the nature of its child protection program.
A State plan must thoroughly describe the State Child Protection Program by describing State activities and procedures to be used for:
(1) receiving and assessing reports of child abuse or neglect;
(2) investigating such reports;
(3) with respect to families in which abuse or neglect has been confirmed, providing services or referral for services for families and children where the State makes a determination that the child may safely remain with the family;
(4) protecting children by removing them from dangerous settings and ensuring their placement in a safe environment;
(5) providing training for individuals mandated to report suspected cases of child abuse or neglect;
(6) protecting children in foster care;
(7) promoting timely adoptions;
(8) protecting the rights of families, using adult relatives as the preferred placement for children separated from their parents if such relatives meet all relevant standards; and
(9) providing services aimed at preventing child abuse and neglect.
The State plan must also certify that the State:
(1) has in effect laws that require reporting of child abuse and neglect;
(2) has in effect procedures for the immediate screening, safety assessment, and prompt investigation of child abuse or neglect reports;
(3) has in effect procedures for the removal and placement of abused or neglected children;
(4) has in effect laws requiring immunity from prosecution under State and local laws for individuals making good faith reports of suspected or known cases of child abuse or neglect;
(5) has in effect no later than 2 years after enactment, laws and procedures affording individuals an opportunity to appeal an official finding of abuse or neglect;
(6) has in effect procedures for developing and reviewing written plans for the permanent placement of each child removed from the family that: specify the goal for achieving a permanent placement for the child in a timely fashion; ensure that the plan is reviewed every 6 months; and ensure that information about the child is gathered regularly and placed in the case record.
(7) has in effect a program to provide independent living services to 16-19 year old youths (and, at State option, youths up to age 22) who are in the foster care system but have no family to support them. (Under the proposal, States also will continue to receive capped entitlement grants for Independent Living services as under current law.)
(8) has in effect procedures or programs (or both) to respond to reports of medical neglect of disabled infants;
(9) has quantitative goals of the State child protection program;
(10) will comply with respect to fiscal years beginning on or after April 1, 1996, with the same child protection standards as under current law. Standards related to abandoned children must be met by October 1, 1997;
(11) will make reasonable efforts to prevent the placement of children in foster care and to make it possible for the child to return home. Each State must also certify that it provides services for children and families where maltreatment has been confirmed but the child remained with the family;
(12) will take all appropriate steps, including cooperative efforts, to secure an assignment to the State of any rights to support on behalf of each child receiving foster care maintenance payments; and
(13) has in effect requirements for disclosure of records only to specified individuals and entities, and provisions that allow for public disclosure of findings or information about cases of child abuse or neglect that have resulted in a child fatality or near fatality (except that such disclosure shall not include identifying information about the individual initiating a report of suspected child abuse or neglect).
The Secretary of HHS must determine whether the State plan includes the required materials and certifications (except material related to the certification of State procedures to respond to reporting of medical neglect of disabled infants). The Secretary cannot add new elements beyond those listed above.Senate amendment
The amendment does not change current law, except to require that the State plan for foster care and adoption assistance provide for the protection of the rights of families, using adult relatives as the preferred placement for children separated from their parents where such relatives meet the relevant State child protection standards
(see item 8).Conference agreement
The conference agreement follows the Senate amendment with a modification to delete the proposed amendment dealing with adult relative preferences.
3. Grants to States for Child Protection
Present law
Title IV-B of the Social Security Act contains both discretionary and capped entitlement funding for helping States provide assistance to troubled families and their children. Of capped entitlement funding for family preservation and support, 1 percent is reserved for Indians. For child welfare services under Title IV-B, $325 million is authorized annually. For family preservation and support services, $225 million is authorized in fiscal year 1996;
$240 million in fiscal year 1997; and $255 million in fiscal year 1998. State allotments for child welfare services are based on the State's child population and per capita income. State allotments for family preservation and support are based on the number of children in the State receiving Food Stamps. Funds must be used for: ``protecting and promoting the welfare of children * * * preventing unnecessary separation of children from their families * * * restoring children to their families if they have been removed * * * family preservation services * * * community-based family support services to promote the well-being of children and families and to increase parents' confidence and competence.''
For-profit foster care providers are not eligible for Federal funding under Title IV-E.
Section 1123 of the Social Security Act requires the Secretary to establish by regulation a new Federal review system for child welfare which would allow penalties for misuse of funds. Regulations are expected to be published during the summer of 1996. (This provision would not be affected by the House proposal.)House bill
The block grant contains both entitlement and appropriated funds. From the entitlement funds, each eligible State must receive from the Secretary an amount equal to the State share of the Child Protection Block Grant amount for the fiscal year (see below). A set-aside is provided for Indians equal to 1 percent of the entitlement money flowing into the block grant.
Each eligible State is also given funds equal to the State share of the authorization component of the block grant that is appropriated each year. Indians are given 0.36 percent of the appropriated money flowing into the block grant. Funds for the authorization component of the block grant under this section are not to exceed $325 million each year. No funds from the block grant can be used to pay for foster care or adoption maintenance payments.
The term ``child protection amount'' means: $240 million for fiscal year 1997; $255 million for fiscal year 1998; $262 million for fiscal year 1999; $270 million for fiscal year 2000; $278 million for fiscal year 2001; $286 million for fiscal year 2002.
The term ``State share'' means the qualified child protection expenses of a State divided by the sum of the qualified child protection expenses of all of the States. The term ``qualified State expenditure'' means Federal grants to the State under the Child Welfare Services Grant and the Family Preservation and Support Services Grant in fiscal year 1994 or the average of 1992-94, whichever is greater. In determining amounts for fiscal years 1992 through 1994, the Secretary shall use information listed as actual amounts in the Justification for Estimates for Appropriation Committees of the Administration for Children and Families for fiscal years 1994 through 1996.
A State to which funds are paid under this section may use the money in any manner the State deems appropriate to accomplish the purposes of this part, but the funds must be expended not later than the end of the immediately succeeding fiscal year.
For-profit, foster care facilities are eligible to receive funds from the block grant.
Under the terms and conditions of the block grant, States are subject to several penalties:
(1) For misuse of funds. If an audit determines that any amounts provided to a State have been spent in violation of this part, the Secretary must reduce the grant otherwise payable for the next fiscal year by the amount of the misspent funds, plus 5 percent of the grant;
(2) For failure to maintain effort. If States fail to maintain State spending equal to State expenditures under Part B of Title IV in fiscal year 1994, the Secretary must reduce the grant payable under this section by an amount equal to the previous year's shortfall in maintenance of effort. A penalty of 5 percent of the State grant must also be imposed. States must maintain 100 percent of prior effort in fiscal years 1997 and 1998; and 75 percent in fiscal years 1999 through 2002;
(3) For failure to submit report. If the Secretary determines that the State has not submitted mandatory adoption and foster care data reports within 6 months of the end of the fiscal year, the Secretary must reduce by 3 percent the amount of the State's block grant. If the report is submitted before the end of the immediately succeeding fiscal year, the Secretary shall rescind the penalty.
Except in the case of failure to maintain effort, the Secretary may not impose a penalty if the determination is made that the State has reasonable cause for failing to comply with the requirement. Further, a State must be informed before any penalty is imposed and be given an opportunity to enter into a corrective compliance plan. The provision includes a series of deadlines for submission of such corrective compliance plans and review by the Federal government. No quarterly payment can be reduced by more than 25 percent; penalty amounts above 25 percent must be carried forward to subsequent quarters.
Each territory is entitled to receive from the Secretary for any fiscal year an amount equal to the total obligations due to the territory under the Social Security Act for fiscal year 1995.
Except as expressly provided in this Act, the Secretary may not regulate the conduct of States under this part or enforce any provision of this Act.Senate amendment
The amendment does not change current law, except that it would amend the definition of ``child care institution'' to include for-profit providers (see item 6).Conference agreement
The conference agreement follows the Senate amendment.
4. Data Collection and Reporting
Present law
In 1986, Congress established the National Advisory Committee on Adoption and Foster Care Information to assist HHS in designing a new comprehensive nationwide data collection system with full system implementation expected to be completed by October 1991. However, final regulations were not issued until December 1993 with the first transmission of data due May 1995. All States are now participating in the Adoption and Foster Care Analysis and Reporting System
(AFCARS). HHS is currently analyzing the first datasets transmitted from the States. The final rules require semi-annual reporting on all children in foster care. The data collection is child and case specific and is intended to yield a semi-annual snapshot of child welfare trends. It is also intended to yield information that will enable policymakers to ``track'' children in care and find out the reasons why children enter foster care, how long children stay in foster care, and what happens to children while in foster care as well as after they leave foster care.
In 1993, Congress authorized enhanced funding of 75 percent for both the AFCARS system and for several additional functions not originally envisioned as part of AFCARS capability. These new functions included electronic data exchange within the State, automated data collection on all children in foster care, collection and management of information necessary to facilitate delivery of child welfare services and to determine eligibility for such services, case management, case plan development and monitoring, and information security. Enhanced funding of 75 percent for this second data system, which HHS calls the Statewide Automated Child Welfare Information System (SACWIS), expires on October 1, 1996.House bill
The House provision leaves unaltered the current State data reporting system on child protection. The enhanced funding rate of 75 percent for the Statewide Automated Child Welfare Information System (SACWIS) is extended for 1 additional year, through fiscal year 1997.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
5. Funding for Studies of Child Welfare
Present law
Sec. 426 authorizes discretionary funding for child welfare research and demonstration projects. No funds were appropriated in 1996.House bill
The Secretary is entitled to receive, for each of fiscal years 1996 through 2002, $6 million to conduct a national study based on random samples of children who are at risk of child abuse or neglect, and $10 million for other research.Senate amendment
The amendment does not change current law.Conference agreement
The conference agreement follows the House bill. The conferees recommend that the Secretary, in conducting the random sample study, require that the study have a longitudinal component and yield data that is reliable at the State level for as many States as she determines is feasible. The conferees also recommend that the Secretary carefully consider selecting the sample from cases of confirmed abuse or neglect and follow each case for several years while obtaining information on, among other things, the type of abuse or neglect involved, the frequency of contact with State or local agencies, whether the child involved has been separated from the family, and, if so, under what circumstances, the number, type, and characteristics of out-of-home placements of the child, and the average duration of each placement.
6. Definitions
Present law
The term ``child care institution'' means a licensed nonprofit private or public facility which accommodates no more than 25 children. The term does not apply to detention facilities, forestry camps, training schools, or centers for delinquent children.House bill
Same as present law, except the word ``nonprofit'' is deleted.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
7. Conforming Amendments
Present lawHouse bill
This section makes a series of technical and conforming amendments to the Social Security Act and the Omnibus Budget Reconciliation Act of 1986.Senate amendment
The amendment redesignates section 1123 (42 U.S.C. 1320a-1a) the second place it appears as section 1123A.Conference agreement
The conference agreement follows the Senate amendment.
Chapter 2--Foster Care, Adoption Assistance, and Independent Living
Programs
8. Changes in Title IV-E of the Social Security Act
Present law
Title IV-E Foster Care and Title IV-E Adoption Assistance are intended to help States finance foster care and adoption assistance maintenance payments, administration, child placement services, and training related to foster care and adoption assistance.
The purpose of the Title IV-E Independent Living Program is to help older foster children make the transition to independent living.House bill
The most notable feature of House action on Title IV-E is that all the entitlement programs remain intact. In addition, the House retains the provision of current law that guarantees Medicaid coverage for children who receive maintenance payments from either the foster care or adoption programs. On the other hand, the House provision does change current law in three ways.
First, the current law guarantee of eligibility for foster care and adoption maintenance payments for children eligible for the Aid to Families with Dependent Children (AFDC) program was disrupted because the AFDC statute was completely rewritten to give States the authority to establish their own welfare programs. To ensure that the eligibility of poor children for maintenance payments continues, the House provision guarantees eligibility for all children from families that would have been eligible for the AFDC program as it existed in each State on the day before enactment of this legislation.
Second, the House provision allows States to use private for-profit foster care facilities. The House believes that States should be allowed to use private child care organizations because they are fully capable of providing quality services. States are responsible for ensuring that children are in safe and reliable care whether it is provided by public or private entities. The House can see no reason to automatically refuse participation by an entire sector of the child caring community.
Third, the House provided enhanced funding for the Statewide Automated Child Welfare Information System (SACWIS) because automation is a vital part of providing quality child protection services. The House has investigated progress by the States in creating SACWIS and has found that several States are now ready to begin actual implementation and that as many as half the States can be expected to have operational systems by next year if funding remains available. Thus, the House is extending the enhanced funding rate of 75 percent to encourage States to invest money in these important systems.Senate amendment
The amendment amends Title IV-E to include for-profit providers in the definition of ``child care institutions''
(see item 6). The provision also amends Title IV-E to require that the State plan for foster care and adoption assistance provide for the protection of the rights of families, using adult relatives as the preferred placement for children separated from their parents where such relatives meet the relevant State child protection standards.Conference agreement
The conference agreement follows the Senate amendment with a modification to delete the proposed amendment dealing with adult relative preference.
Chapter 3--Miscellaneous
9. secretarial submission of legislative proposal for technical and conforming amendments
Present law
No provision.House bill
Not later than 90 days after the date of enactment, the Secretary of Health and Human Services must submit to Congress a legislative proposal providing for technical and conforming amendments required by the changes made in this subtitle of the proposal.Senate amendment
No provision.Conference agreement
The conference agreement follows the Senate amendment.
10. sense of the congress regarding timely adoption of children
Present law
No provision.House bill
This section expresses the sense of Congress that too many adoptable children are spending too much time in foster care, that States must take steps to increase the number of children who are adopted in a timely manner, and that States could achieve savings if they offered incentives for the adoption of special needs children, among other provisions.Senate amendment
No provision.Conference agreement
The conference agreement follows the Senate amendment.
11. effective date; transition rules
Present law
No provision.House bill
The changes made in this subtitle will be effective on or after October 1, 1996. Provisions that authorize and appropriate funds in fiscal year 1996 for research and court improvements, and certain technical and conforming amendments are effective upon enactment. The proposal establishes transition rules for pending claims, actions and proceedings, and closing out accounts for programs that are terminated or substantially modified.Senate amendment
No provision.Conference agreement
The conference agreement follows the Senate amendment.
Subtitle B--Child and Family Services Block Grant
Present law
No provision.House bill
The block grant and associated activities under Subtitle B are under the jurisdiction of the Economic and Educational Opportunities Committee in the House and the Labor and Human Resources Committee in the Senate. The Child and Family Services Block Grant created by Subtitle B consolidates the following programs into a single block grant: The Child Abuse Prevention and Treatment Act, the Abandoned Infants Assistance Act, adoption opportunities under the Child Abuse Prevention and Treatment and Adoption Reform Act, the family support centers under the McKinney Homeless Assistance Act, and the Temporary Child Care and Crisis Nurseries Act. The Child and Family Services Block Grant has the same State plan and certification requirements as the Child Protection Block Grant created by Subtitle A. The two Block Grants also have the same data collection and reporting requirements for child abuse incidence data and for the implementation of foster care and adoption tracking systems. The Child and Family Services Block Grant is authorized at $230 million for fiscal year 1996 and ``such sums as may be necessary'' are authorized for fiscal year 1997 through fiscal year 2002. Title II of the Child and Family Services Block Grant provides that funds be available for research, demonstrations, training and technical assistance to better protect children from maltreatment. Funds under this block grant also will establish a National Clearinghouse for Information Relating to Child Abuse, provide demonstration grants for the development of innovative programs, provide technical assistance to States to assist with child abuse investigation and the termination of parental rights proceedings, and provide training for professionals in related fields. For these Title II activities, 12 percent of the $230 million provided for this Block Grant is authorized of which 40 percent must be available for demonstration projects. The Missing Children's Assistance Act and the Victims of Child Abuse Act of 1990 are both reauthorized.Senate amendment
No provision.Conference agreement
The conference agreement follows the Senate amendment.
Title VI: Child Care
1. short title and references
Present law
No provision.House bill
Short Title: Child Care and Development Block Grant Amendments of 1996. Unless otherwise specified, references should be considered as made to the Child Care and Development Block Grant Act of 1990.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
2. goals
Present law
No provision.House bill
This section establishes the following goals for the Child Care and Development Block Grant:
(1) to allow each State maximum flexibility in developing child care programs and policies that best suit the needs of children and parents within the State;
(2) to promote parental choice in making decisions on the child care that best suits their family's needs;
(3) to encourage States to provide consumer information to help parents make informed child care choices;
(4) to assist States in providing child care to parents trying to become independent of public assistance; and
(5) to assist States in implementing the health, safety, licensing and registration standards established in State regulations.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
3. authorization of appropriations and entitlement authority
Present law
The authorization of appropriations for the Child Care and Development Block Grant expires at the end of fiscal year 1995. Appropriations in fiscal year 1996 are $935 million.
(Sec. 658B of the CCDBG Act)
[Note: In addition to appropriated funds, entitlement funds are available for the Child Care Block Grant under the AFDC Child Care, Transitional Child Care, and At-Risk Child Care programs authorized by Title IV-A of the Social Security Act.]House bill
Authorization of Appropriations. There are authorized to be appropriated $1,000,000,000 for each of fiscal years 1996 through 2002. (Additional mandatory funding will be provided for child care under the Social Security Act so that a total of $22 billion will be provided for child care over the 7-year period fiscal years 1996-2002.)
Child Care Entitlement. The proposal establishes a single child care block grant and State administrative system by adding mandatory funds to the existing Child Care and Development Block Grant (CCDBG). Specifically, one discretionary and two mandatory streams of funding will be consolidated in a reconstituted CCDBG.
a. State General Entitlement. From the stream of entitlement funding, each State will receive the amount of funds it received for child care under all of the entitlement programs currently under Title IV-A of the Social Security Act (AFDC Child Care, Transitional Child Care, and At-Risk Child Care) in fiscal year 1994, in fiscal year 1995, or the average amount in fiscal years 1992 through 1994, whichever is greater. This source of funds will provide States with approximately $1.2 billion for child care each year between 1997 and 2002.
b. Remainder. The mandatory funds remaining after the allocation to Indians (see below) and the State General Entitlement (see above) will be distributed among the States based on the formula currently used in the Title IV-A At-Risk Child Care Grant. Specifically, funds will be distributed based on the proportion of the number of children under age 13 residing in the State to the number of all of the Nation's children under age 13. States must provide matching funds at the fiscal year 1995 State Medicaid rate to receive these funds and must maintain spending at their fiscal year 1994 or 1995 level, whichever is greater, under the Title IV-A child care programs. The money available to States through this source of funds for fiscal years 1997 through 2002, respectively, will be: $0.76 billion, $0.86 billion, $0.96 billion, $1.16 billion, $1.36 billion, and $1.51 billion.
If a State does not use its full portion of funds, the remaining portion will be redistributed to other States according to section 402(i) of the At-Risk Child Care Grant
(as such section was in effect before October 1, 1995). Thus, each State applying for these remaining funds will receive the percentage of funds that equals the percentage of children under age 13 residing in that State of all children under age 13 residing in all the States that apply for funds. The Secretary must determine whether States will use their entire portion of funds no later than the end of the first quarter of the subsequent fiscal year.
c. Appropriation. Total child care funds under this proposal will equal $22 billion for child care over the 7-year period fiscal years 1996-2002, including both the $15 billion in mandatory funds discussed above and $7 billion in discretionary funds. Under current law for the three existing AFDC-related child care programs, $1.1 billion in mandatory funds will be spent in fiscal year 1996. In addition, a total of $13.85 billion in mandatory funds would be authorized for child care in fiscal years 1997-2002, starting at $2.0 billion in fiscal year 1997 and rising to $2.7 billion in fiscal year 2002. Finally, as stated earlier, $1 billion will be authorized annually in discretionary funds for the Child Care and Development Block Grant.
d. Indian Tribes. One percent of all funds under the section are provided to Indian tribes.
Use of Funds. Funds shall only be used to provide child care assistance. Amounts received by a State, based on the amounts received in previous years, shall be available for use by the State without fiscal year limitation. All funds from both mandatory and discretionary sources must be transferred to the lead agency under the Child Care and Development Block Grant and integrated into the State child care programs.
Not less than 70 percent of the total amount of mandatory funds received by the State in a fiscal year must be used to provide child care assistance to families that are receiving assistance under a State program, families that are attempting to transition off public assistance, and families at risk of becoming dependent on public assistance.Senate amendment
Same.
Conference agreement
The conference agreement follows the House bill and Senate amendment, with a modification. The Secretary shall reserve not less than 1 percent and not more than 2 percent of the total amount appropriated (both mandatory and discretionary) in each fiscal year for payments to Indian tribes and tribal organizations.
4. lead agency
Present Law
The Chief Executive Officer of a State is required to designate an appropriate State agency to act as the lead agency in administering financial assistance under the Act.
(Sec. 658D of the CCDBG Act)House bill
The proposal requires States to identify a lead agency to administer all the child care funds received under the Act, including funds received through other ``governmental or nongovernmental'' agencies (instead of other ``State'' agencies). States must ensure that ``sufficient time and statewide distribution of the notice'' be given of the public hearing on the development of the State plan. This section strikes language in current law specifying issues that may be considered during consultation with local governments on development of the State plan.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
5. application and plan
Present law
States are required to prepare and submit to the Secretary an application that includes a State plan. The initial plan must cover a 3-year period, and subsequent plans must cover 2-year periods. Required contents of the plan include designation of a lead agency; outline of policies and procedures regarding parental choice of providers, summary of policies that guarantee unlimited parental access, parental complaints, and consumer education; and overview of policies that ensure compliance with State and local regulatory requirements, establishment of and compliance with health and safety requirements, and review of State licensing and regulatory requirements.
In addition, the State plan must provide that all funds will be used for child care services, and that 25 percent of funds will be reserved for activities to improve the quality of child care and to increase the availability of early childhood development and before- and after-school child care. (Sec. 658E of the CCDBG Act)
State plans must also assure that payment rates will be adequate to provide eligible children with equal access to child care as compared with children whose families are not eligible for subsidies, and must assure that the State will establish and periodically revise a sliding fee scale that provides for cost sharing by families that receive child care subsidies.House bill
The proposal requires the State plan to cover a 2-year period. States must provide a detailed description of procedures to be used to assure parental choice of providers. Instead of ``providing assurances,'' States must ``certify'' that procedures are in effect within the State to ensure unlimited parental access to the families providing care to children and to ensure parental choice of child care provider; the proposal also requires that the State plan provide a detailed description of such procedures. Instead of
``providing assurances,'' a State must ``certify'' that it maintains a record of parental complaints and requires the State to provide a detailed description of how such a record is maintained and made available. The proposal changes the consumer education part of the State plan to require assurances that the State will collect and disseminate consumer education information. States must certify that they have in effect child care licensing requirements and provide a detailed description of the requirements and how they are enforced. This provision does not require that licensing requirements be applied to specific types of child care providers.
States must ``certify'' that procedures are in effect to ensure that child care providers receiving funds under this Act comply with applicable State or local health and safety requirements. The Secretary is required to develop minimum standards for Indian tribes and tribal organizations receiving assistance.
The proposal eliminates review of State licensing and regulatory requirements, notification to the Department of Health and Human Services (HHS) when standards are reduced, and supplementation. The proposal also eliminates the requirement that unlicensed providers be registered. The House decided to retain a current law requirement that all States establish health and safety standards. The House provision does not specify the particular standards that must be established, but all States must have requirements on prevention and control of infectious diseases (including immunizations), building and physical premises safety, and minimum health and safety training.
A summary of the facts relied upon by the State to determine that payment rates are sufficient to ensure equal access to child care must be included in the State plan. Funds must be used for child care services, for activities to improve the quality and availability of such services, and for any other activity that the State deems appropriate to realize the goals specified above. The proposal deletes the current law requirement that States reserve 25 percent of funds for activities to improve the quality of child care and to increase availability of early childhood development and before- and after-school care. States may spend no more than 5 percent on administrative costs.
States must spend a substantial portion of the amounts available to provide child care to low-income working families who are not working their way off welfare or are at risk of becoming welfare dependent. However, States first must comply with requirement that at least 70 percent of mandatory funds must be used for welfare or at-risk families. States must demonstrate how they will meet the child care needs of welfare and at-risk families.Senate amendment
Same, except the Senate maintains current law (which requires States to ``provide assurances'' that child care providers receiving funds under this Act comply with applicable State or local health and safety requirements). Conference agreement
The conference agreement follows the House bill with a modification. The provision requires States to ``certify'' that health and safety requirements are in effect within a State applicable to child care providers.
Nothing in the legislation either prohibits or requires States to differentiate between federally subsidized child care and nonsubsidized child care regarding the application of specific standards and regulations. The cap of 5 percent on administrative costs is included in both the House and Senate passed bills. To help States implement this provision, the Department of Health and Human Services should issue regulations, in a timely manner and prior to the deadline for submission of State plans, that define and determine true administrative costs, as distinct from expenditures for services. Eligibility determination and redetermination, preparation and participation in judicial hearings, child care placement, the recruitment, licensing, inspection, reviews and supervision of child care placements, rate setting, resource and referral services, training, and the establishment and maintenance of computerized child care information are an integral part of service delivery and should not be considered administrative costs.
6. Activities to Improve the Quality of Child Care
Present law
As stated above, 25 percent of State allotments must be reserved for activities to improve child care quality and to increase the availability of early childhood development and before- and after-school child care. Section 658G specifies how these funds are to be used. Of reserved funds, States are required to use no less than 20 percent for improving the quality of care, including resource and referral programs, making grants or loans to assist providers in meeting State and local standards, monitoring of compliance with licensing and regulatory requirements, training of child care personnel, and improving compensation for child care personnel. (Sec. 658G of the CCDBG Act).House bill
A State that receives child care funds must use at least 4 percent of all funds received (both mandatory and discretionary) for activities designed to provide comprehensive consumer education to parents and the public, for activities that increase parental choice, and for activities designed to improve the quality and availability of child care.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
7. Repeal of Early Childhood Development and Before- and After-School
Care Requirement
Present law
States are required to use no less than 75 percent of funds reserved for quality improvement for activities to expand and conduct early childhood development programs and before- and after-school child care. (Sec. 658H of the CCDBG Act)House bill
The set-aside for early childhood development programs and before- and after-school care is repealed.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
8. Administration and Enforcement
Present law
The Secretary of Health and Human Services (HHS) is required to coordinate HHS and other Federal child care agencies, to collect and publish a list of State child care standards every 3 years, and to provide technical assistance to States. The Secretary must also review, monitor, and enforce compliance with the Act and the State plan by withholding payments and imposing additional sanctions in certain cases. (Sec. 658I of the CCDBG Act)House bill
This section strikes the current law requirement that the Secretary withhold further payments to a State in case of a finding of noncompliance until the noncompliance is corrected. Instead, the Secretary is authorized, in such cases, to require that the State reimburse the Secretary for any improperly spent funds, or the Secretary may deduct from the administrative portion of the State's subsequent allotment an amount equal to or less than the misspent funds, or a combination of such options.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
9. Payments
Present law
Payments received by a State for a fiscal year may be expended in that fiscal year or in the succeeding 3 fiscal years. (Sec. 658J of the CCDBG Act)House bill
The bill replaces the word ``expended'' with ``obligated''. However, the bill contains a drafting error. A provision that would have struck ``3 fiscal years'' and inserted ``fiscal year'' was inadvertently dropped.Senate amendment
The Senate amendment contains the same drafting error.Conference agreement
The conference agreement corrects a previous drafting error by striking ``3 fiscal years'' and inserting ``fiscal year''.
10. Annual Report and Audits
Present law
States must prepare and submit to the Secretary every year a report specifying how funds are used; presenting data on the manner in which the child care needs of families in the State are being fulfilled, including information on the number of children served, child care programs in the State, compensation provided to child care staff, and activities to encourage public-private partnerships in child care; describing the extent to which affordability and availability of child care has increased; summarizing findings from a review of State licensing and regulatory requirements, if applicable; explaining any action taken by the State to reduce standards, if applicable; and describing standards and health and safety requirements applied to child care providers in the State, including a description of efforts to improve the quality of child care. (Sec. 658K of the CCDBG Act)House bill
The title of the section is changed from ``Annual Report and Audits'' to ``Reports and Audits.'' States must collect on a monthly basis, and report to HHS on a quarterly basis, the following information on each family receiving assistance:
(1) family income;
(2) county of residence;
(3) the gender, race, age of children receiving benefits;
(4) whether the family includes only one parent;
(5) the sources of family income, including:
(a) the amount obtained from employment, including self-employment;
(b) cash assistance or other assistance under Part A;
(c) housing assistance;
(d) food stamps; and
(e) other public assistance;
(6) the number of months the family has received benefits;
(7) the type of care in which the child was enrolled
(family day care, center, own home);
(8) whether the provider was a relative;
(9) the cost of care; and
(10) the average hours per week of care.
Twice each year, the State must submit the following aggregate data to HHS:
(1) the number of providers separately identified in accord with each type of provider that received funding under this subchapter;
(2) the monthly cost of child care services and the portion of such cost paid with assistance from this Act by type of care;
(3) the number of payments by the State in vouchers, contracts, cash, and disregards from public benefit programs by type of care;
(4) the manner in which consumer education information was provided and the number of parents who received it; and
(5) total number (unduplicated) of children and families served.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
11. Report by the Secretary
Present law
The Secretary is required to prepare and submit an annual report, summarizing and analyzing information provided by States, to the House Education and Labor Committee and the Senate Labor and Human Resources Committee. This report must contain an assessment and, where appropriate, recommendations to Congress regarding efforts that should be taken to improve access of the public to quality and affordable child care.
(Sec. 658L of the CCDBG Act)House bill
The Secretary must prepare and submit biennial reports, rather than annual reports, with the first report due no later than July 31, 1997; the reference to the House Education and Labor Committee is replaced with the House Economic and Educational Opportunities Committee.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
12. Allotments
Present law
The Secretary must reserve one-half of 1 percent of appropriations for payment to Guam, American Samoa, the Virgin Islands, the Northern Marianas, and the Trust Territory of the Pacific Islands. The Secretary also must reserve no more than 3 percent for payment to Indian tribes and tribal organizations with approved applications. Remaining funds are allocated to the States based on the States' proportion of children under age 5 and the number of children receiving free or reduced-price school lunches, as well as the States' per capita income. Any portion of a State's reallotment that the Secretary determines is not needed by the State to carry out its plan for the allotment period must be reallotted by the Secretary to the other States in the same proportion as the original allotments. (Sec. 658O of the CCDBG Act)House bill
Set-asides for the Territories, Indian tribes, and tribal organizations are maintained, except that the Trust Territory of the Pacific Islands is deleted from the set-aside for Territories. Indian tribes are provided with a 1 percent set-aside of all funds, both entitlement and appropriated, authorized by this section each year. Under some circumstances, and with approval from the Secretary, Indian tribes are authorized to use a portion of their funds for renovation and construction of child care facilities. Within the overall block grant for social programs provided to the territories, each territory is authorized to spend whatever portion they choose of their capped amount on child care (for additional details see item 79 of Title I). Allotments to States were described in item 3 above.Senate amendment
Same as the House bill except the Indian tribes are provided with a 3-percent set-aside for child care.Conference agreement
The conference agreement follows the House bill with a modification. The Secretary shall reserve not less that 1 percent and not more than 2 percent of the total amount appropriated (both mandatory and discretionary) in each fiscal year for payments to Indian tribes and tribal organizations.
13. Definitions
Present law
The following terms are defined: caregiver, child care certificate, elementary school, eligible child, eligible child care provider, family child care provider, Indian tribe, lead agency, parent, secondary school, Secretary, sliding fee scale, State, and tribal organization. (Sec. 658P of the CCDBG Act)House bill
Child care deposits are added as an allowable use of a child care certificate. The definition of ``eligible child'' is revised to one whose family income does not exceed 85 percent of the State median, instead of 75 percent. The definition of ``relative child care provider'' is revised by adding great grandchild and sibling (if the provider lives in a separate residence) to the list of eligible relative providers and the requirement that relatives providing care be registered is struck. Relative providers are required to comply with any applicable requirements governing child care provided by a relative, rather than State requirements. The definition for elementary and secondary school is eliminated. The Trust Territory of the Pacific Islands is dropped from the definition of ``State.'' Native Hawaiian Organization is added to the definition of ``tribal organization.''Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
14. Repeals
Present law
No provision.House bill
The proposal repeals the following programs: (1) Child Development Associate (CDA) Scholarship Assistance; (2) State Dependent Care Development Grants; (3) Programs of National Significance under Title X of the Elementary and Secondary Education Assistance Act of 1965 (child care related to Cultural Partnerships for At-Risk Children and Youth, and Urban and Rural Education Assistance); and (4) Native-Hawaiian Family-Based Education Centers.
[Note.--Title I of the proposal also repeals child care assistance provided under current law by Title IV-A of the Social Security Act. This assistance is provided under three programs known as AFDC Child Care, Transitional Child Care, and At-Risk Child Care. Thus, the total number of child care programs merged into the Child Care and Development Block Grant is seven.]Senate amendment
The Senate amendment does not repeal the following programs: (1) Child Development Associate (CDA) Scholarship Assistance; (2) State Dependent Care Development Grants; (3) Programs of National Significance under Title X of the Elementary and Secondary education Assistance Act of 1965; and (4) Native Hawaiian Family-Based Education Centers.Conference agreement
The conference agreement follows the Senate amendment.
15. Effective Date
Present law
No provision.House bill
This title and the amendments made by this title take effect on October 1, 1996; the authorization of appropriations and entitlement authority under section 8103(a) take effect on the date of enactment.Senate amendment
Same.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
Title VII: Child Nutrition Programs
Subtitle A--National School Lunch Act
1. STATE DISBURSEMENT TO SCHOOLS
Present law
State Agency Authority. The provision of law requiring that agreements between State education agencies and schools be permanent may not be ``construed'' as limiting the ability of State agencies to suspend or terminate agreements in accordance with the Secretary's regulations. [Sec. 8 of the NSLA]
Technical Amendments. ``Child'' for purposes of the NSLA is defined to include individuals, regardless of age, who are
(a) determined to have 1 or more disabilities and (b) attending an institution for the purpose of participating in a program for individuals with mental or physical disabilities. [Sec. 8 of the NSLA]House bill
State Agency Authority. Clarifies State education agencies' authority to terminate or suspend agreements with schools participating in school meal programs. [Sec. 3401]
Technical Amendments. Makes a technical amendment placing this definition of child in the section of the NSLA containing other general definitions. [Sec. 3401]
[Note.--Sec. 3401 also makes conforming amendments to cross-references in sec. 8 of the NSLA.]Senate amendment
State Agency Authority. Same provision. [Sec. 1201]
Technical Amendments. Same provision with technical differences. [Sec. 1201]Conference agreement
The conference agreement adopts the provisions that are common to both bills regarding State Agency Authority and adopts the Senate provision on Technical Amendments. [Sec. 701]
2. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS
Present law
Lowfat Cheese Purchases. Each calendar year, the Secretary is required to purchase specific amounts of lowfat cheese on a bid basis. [Sec. 9(a)(2) of the NSLA]
Food Waste Procedures. The Secretary is required to establish administrative procedures designed to diminish food waste in schools. [Sec. 9(a)(3) of the NSLA]
Announcing Guidelines. Each school year, State education agencies and schools are required to announce income eligibility guidelines to be used for free and reduced price lunches. [Sec. 9(b)(2) of the NSLA]
Commodities. Schools in the school lunch program are required to use, as far as practicable, commodities designated by the Secretary as being in ``abundance.''
The Secretary is authorized to prescribe terms and conditions under which donated commodities will be used in schools and other participating institutions. [Sec. 9(c) of the NSLA]
Nutrition Information/Requirements. By the first day of the 1996-1997 school year, the Secretary, State education agencies, schools, and school food service authorities are required, to the maximum extent practicable, to inform students and parents of the nutrition content of school meals and their consistency with the most recent Dietary Guidelines for Americans. [Sec. 9(f)(1) of the NSLA]
Unless a waiver is granted by a State education agency, schools must serve meals that are consistent with the Dietary Guidelines for Americans (using the weekly average nutrient content of the meals) by the beginning of the 1996-1997 school year. [Sec. 9(f)(2) of the NSLA]
Use of Resources. State education agencies may use resources provided under the nutrition education and training program for training aimed at improving the quality and acceptance of school meals. [Sec. 9(h) of the NSLA]House bill
Lowfat Cheese Purchases. Deletes the lowfat cheese purchase requirement. [Sec. 3402(a)]
Food Waste Procedures. Deletes the requirement for the Secretary to establish procedures to diminish food waste.
[Sec. 3402(a)]
Announcing Guidelines. Deletes the requirements to annually announce income eligibility guidelines. [Sec. 3402(b)]
Commodities. Deletes the requirement to use foods designated as abundant.
Deletes the authority for the Secretary to prescribe terms and conditions for the use of commodities. [Sec. 3402(c)]
Technical/Conforming Changes. Makes a technical/conforming amendment consistent with the elimination of the requirement to announce guidelines. Makes a technical/conforming amendment to delete a provision dealing with discrimination against and identification of children receiving free or reduced price lunches found elsewhere in the law. [Sec. 3402(b) & (d)]
Nutrition Information/Requirements. Deletes the requirement to inform students and parents about the nutrition content of meals and their consistency with the Dietary Guidelines.
[Sec. 3402(e)]
Replaces the existing requirement to serve meals consistent with the Dietary Guidelines. Unless a waiver is granted by a State education agency, schools must serve meals that are consistent with the Dietary Guidelines by the beginning of the 1996-1997 school year. The meals must provide, on average over each week, at least one-third of the National Academy of Sciences' daily recommended dietary allowances (in the case of lunches) or one-quarter of the allowances (in the case of breakfasts). [Sec. 3402(e)]
Use of Resources. Deletes the authority to use nutrition education and training funding for improving school meals
(this authority is provided elsewhere in law). [Sec. 3402(f)]Senate amendment
Lowfat Cheese Purchases. Same provision. [Sec. 1202(a) &
(c)]
Food Waste Procedures. Same provision. [Sec. 1202(a)]
Announcing Guidelines. No provision.
Commodities. Same provisions. [Sec. 1202(b)]
Technical/Conforming Changes. No provisions.
Nutrition Information/Requirements. Same provision. [Sec. 1202(d)]
Use of Resources. Same provision. [Sec. 1201(e)]Conference agreement
The conference agreement adopts the provisions that are common to both bills. With respect to Announcing Guidelines, the conference agreement adopts the Senate provision.
[Sec.702]
3. FREE AND REDUCED PRICE POLICY STATEMENT
Present law
No provision.House bill
Provides that schools may not be required to submit free and reduced price ``policy statements'' to State education agencies unless there is a substantive change in the free and reduced price policy of the school. Routine changes (e.g., adjusting income eligibility standards) are not sufficient cause for requiring a school to submit a policy statement.
[Sec. 3403]Senate amendment
Same provisions with a technical difference clarifying that school food authorities, rather than schools, are the entities that may not be required to submit a policy statement. [Sec. 1203]Conference agreement
The conference agreement adopts the Senate provisions.
[Sec.703]
4. SPECIAL ASSISTANCE
Present law
``Provision 2.'' Schools electing to serve all children free meals for 3 successive years may be paid special assistance payments for free and reduced price meals based on the number of meals served free or at a reduced price in the first year (``provision 2''). Schools electing this option as of November 1994 may receive a 2-year extension from the State if it determines that the income level of the school's population has remained stable. Schools receiving a 2-year extension may receive subsequent 5-year extensions (except that the Secretary may require that applications be taken at the beginning of any 5-year period). [Sec. 11(a)(1) of the NSLA]
Terms and Conditions. The terms and conditions governing the operation of the school lunch program (set forth in other sections of the NSLA, except for matching requirements) apply to special assistance under the school lunch program, to the extent they are not inconsistent with the express requirements of the section governing special assistance.
[Sec. 11(d) of the NSLA]
Monthly Reports. State education agencies must report each month the average number of children receiving free and reduced price lunches during the immediately preceding month.
[Sec. 11(e)(2) of the NSLA]House bill
``Provision 2.'' Allows all ``provision 2'' schools to qualify for extensions. [Sec. 3404(a)]
Terms and Conditions. Deletes ``terms and conditions'' requirements. [Sec. 3404(b)]
Monthly Reports. Removes the requirement for monthly reports and replaces it with a provision to report this information at the Secretary's request. [Sec. 3404(b)]Senate amendment
``Provision 2.'' Same provision. [Sec. 1204(a)]
Terms and Conditions. Same provision. [Sec. 1204(b)]
Monthly Reports. Same provision. [Sec. 1204(b)]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec.704]
5. MISCELLANEOUS PROVISIONS AND DEFINITIONS
Present law
Accounts and Records. States, State education agencies, and schools must make accounts and records available for inspection and audit by the Secretary ``at all times.'' [Sec. 12(a) of the NSLA]
Restrictions on Requirements. Neither the Secretary nor States may impose any requirement with respect to teaching personnel, curriculum, and instruction in any school when carrying out the provisions of the NSLA. [Sec. 12(c) of the NSLA]
Definitions. ``State'' is defined to include the Trust Territory of the Pacific Islands. [Sec. 12(d)(1) of the NSLA]
``Participation rate'' is defined as the number of lunches served in the second prior fiscal year. [Sec. 12(d)(3) of the NSLA]
``Assistance need rate'' is defined as a rate relative to States' annual per capita income. [Sec. 12(d)(4) of the NSLA]
The Secretary is permitted to adjust reimbursement rates for Alaska, Hawaii, and outlying areas (including the Trust Territory of the Pacific Islands). [Sec. 12(f) of the NSLA]
Expedited Rulemaking. The Secretary is required to issue proposed regulations on food-based menu systems prior to the publication of final regulations for compliance with the Dietary Guidelines for Americans and must hold public meetings on the proposed regulations. Final regulations must reflect public comments. [Sec. 12(k) of the NSLA]
Waivers. The Secretary may waive any Federal requirements if the requesting State or service provider demonstrates, to the Secretary's satisfaction, that the waiver will not increase the overall Federal cost of the program and, if it does increase costs, they will be paid from non-Federal funds.
Waiver applications must describe ``management goals'' to be achieved, a timetable for implementation, and the process to be used for monitoring progress in implementing the waiver
(including cost implications).
The Secretary must state in writing the expected outcome of any approved waivers.
The results of the Secretary's decision on any waiver must be disseminated through ``normal means of communication.''
Waivers may not exceed 3 years (unless extended by the Secretary).
Waivers may not be granted with respect to ``offer versus serve'' rules.
Service providers must annually submit reports describing the use of their waivers and evaluating how the waiver contributed to improved services. States must annually submit a summary of providers' reports to the Secretary. The Secretary must annually submit reports to Congress summarizing the use of waivers and describing whether waivers resulted in improved services, the impact of waivers on the provision of nutritional meals, and how waivers reduced paperwork. [Sec. 12(l) of the NSLA]
Food and Nutrition Programs. The Secretary is required to award grants to private nonprofit organizations or education institutions for ``food and nutrition projects'' that are fully integrated with elementary school curricula. Subject to appropriations, the Secretary must make grants to each of 3 organizations or institutions in amounts between $100,000 and
$200,000 for each of fiscal years 1995 through 1998. [Sec. 12(m) of the NSLA]
Simplified Administration of School Meal and Other Nutrition Programs. No provisions in current law; therefore, no citizenship or immigration status tests apply to programs under the NSLA or CNA, or to commodity assistance programs.House bill
Accounts and Records. Revises the requirement to make accounts and records available at all times to a requirement that they be available at ``any reasonable time.'' [Sec. 3405(a)]
Restrictions on Requirements. Removes the prohibition on States imposing personnel, curriculum, and instruction requirements. [Sec. 3405(b)]
Definitions. Replaces ``Trust Territory of the Pacific Islands'' with ``Commonwealth of the Northern Mariana Islands.''
Deletes the out-of-date definition of participation rate.
Deletes the out-of-date definition of assistance need rate.
Replaces the reference to the Trust Territory of the Pacific Islands with a reference to the ``Commonwealth of the Northern Mariana Islands.'' [Sec. 3405(c) & (d)]
Expedited Rulemaking. Deletes the noted out-of-date requirements for regulations. [Sec. 3405(e)]
Waivers. Adds a bar against the Secretary granting any waiver that increases Federal costs.
Deletes the noted waiver requirements in present law.
Deletes the noted outcome requirement in present law.
Deletes the noted dissemination requirement in present law.
Deletes the noted time limit requirement in present law.
Deletes the noted offer versus serve prohibition in present law.
Deletes requirements for waiver reports by service providers and States, but not the Secretary's. [Sec. 3405(f)]
Food and Nutrition Programs. Deletes authority for food and nutrition project grants. [Sec. 3405(g)]
Simplified Administration of School Meal and Other Nutrition Programs. No provisions in the child nutrition provisions of the bill. However, other provisions of the bill would bar the eligibility of illegal aliens for programs under the NSLA and the CNA.Senate amendment
Accounts and Records. Same provision. [Sec. 1205(a)]
Restrictions on Requirements. Same provision. [Sec. 1205(b)]
Definitions. Same provisions. [Sec. 1205(c) & (d)]
Expedited Rulemaking. Same provision. [Sec. 1205(e)]
Waivers. Same provisions. [Sec. 1205(f)]
Food and Nutrition Programs. No provision.
Simplified Administration of School Meal and Other Nutrition Programs. Notwithstanding any other provision of law, no assistance or benefits provided under the NSLA or CNA or commodity assistance programs may be contingent on citizenship or immigration status. [Sec. 1205(g)]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 705] The conference agreement also adopts the Senate provision on Food and Nutrition Projects, and adopts the House provision on Simplified Administration of School Meal and Other Nutrition Programs with an amendment stating that individuals who are ineligible for free public education benefits under State or local law are also ineligible for school meal benefits under the National School Lunch Act and the Child Nutrition Act of 1966. The amendment also states that ``nothing in this Act shall prohibit or require a State to provide to an individual who is not a citizen qualified alien, as defined elsewhere in the law, benefits ***'' under programs other than school lunch and breakfast program under the National School Lunch Act and the Child Nutrition Act of 1966, the Commodity Supplemental Food Program, TEFAP and the food distribution program on Indian reservations.[Sec. 742 ]
6. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN
Present law
Establishment of Program. The Secretary is authorized to carry out a summer food service program to assist States to initiate, maintain, and expand nonprofit food service programs for children. [Sec. 13(a) of the NSLA]
Service Institutions: Payments. Payments to summer food service institutions may not exceed specific amounts set by law and indexed for inflation. For the summer of 1996, these rates are: $2.1675 for each lunch/supper, $1.2075 for each breakfast, and 57 cents for each supplement (snack). Rates are adjusted each January to reflect changes (for the 12 months ending the preceding November) in the food away from home component of the CPI-U. Each adjustment is rounded to the nearest quarter cent. [Sec. 13(b)(1) of the NSLA]
Administration of Service Institutions. Payments to summer camps and service institutions that primarily serve migrant children may be made for up to 4 meals/supplements each day.
[Sec. 13(b)(2) of the NSLA]
Reimbursements: National Youth Sports Program. Higher education institutions operating under the National Youth Sports Program (NYSP) may receive reimbursements for meals/supplements served in months other than May through September, but for not more than 30 days for each child.
NYSP children and institutions are eligible to participate
``without application.''
NYSP institutions receive reimbursements for breakfasts and supplements equal to the ``severe need'' rate for school breakfasts.
Advance Program Payments. In general, 3 advance payments to summer food service program service institutions are required during any summer program. The second advance payment may not be released to any service institution that has not certified it has held training sessions for its own personnel and site personnel. [Sec. 13(e)(1) of the NSLA]
Food Requirements. The Secretary is required to provide
``additional technical assistance'' to those service institutions and private nonprofit organizations that are having difficulty in maintaining compliance with nutritional requirements.
Service institutions' contracts with food service management companies must require that bacteria levels conform to the standards applied by the local health authority. [Sec. 13(f) of the NSLA]
Permitting ``Offer versus Serve''. The ``offer versus serve'' option is not permitted in the summer food service program.
Food Service Management Companies. In accordance with the Secretary's regulations, service institutions must make positive efforts to use small and minority-owned businesses as sources of supplies and services.
States are required to establish a standard form of contract for use by service institutions and food service management companies. [Sec. 13(l) of the NSLA]
Records. States and service institutions must make accounts and records available for inspection and audit by the Secretary ``at all times.'' [Sec. 13(m) of the NSLA]
Removing Mandatory Notice to Institutions. States' plans must include its plans and schedule for informing service institutions of the availability of the summer food service program. [Sec. 13(n) of the NSLA]
Plan. State plans must include: (1) the State's method of assessing need, (2) the State's best estimate of the number/character of service institutions/sites to be approved, and children and meals to be served, as well as its estimating methods, and (3) a schedule for providing technical assistance and training to service institutions. [Sec. 13(n) of the NSLA]
Monitoring and Training. With the Secretary's assistance, States must establish and implement an ongoing training and technical assistance program for private nonprofit organizations. [Sec. 13(q) of the NSLA]
Expired Program. During fiscal years 1990 and 1991, the Secretary and States must carry out a program to disseminate information to private nonprofit organizations about the amendments made by the Child Nutrition and WIC Reauthorization Act of 1989. [Sec. 13(p) of the NSLA]House bill
Establishment of Program. Removes the reference to the Secretary's authority to carry out a program to assist States to ``expand'' summer food services. [Sec. 3406(a)]
[Note.--Sec. 3406(a) also makes technical amendments deleting a reference to the Trust Territory of the Pacific Islands and an unnecessary cross-reference in present law.]
Service Institutions: Payments. Establishes new maximum rates for summer food service institutions. They are: $1.82 for each lunch/supper, $1.13 for each breakfast, and 46 cents for each supplement (snack). These new rates, adjusted for inflation, first apply to the summer of 1997. They are adjusted on January 1, 1997, and each January 1 thereafter, to reflect changes (for the 12 months ending the preceding November) in the food away from home component of the CPI-U. Each adjustment is based on unrounded rates for the prior 12-month period, then rounded down to the nearest lower cent increment. [Sec. 3406(b) & (n)]
[Note.--Separate administrative cost reimbursement rates are not changed.]
Administration of Service Institutions. Limits payments to summer camps and institutions serving migrant children to 3 meals, or 2 meals and a supplement, each day. [Sec. 3406(c)]
Reimbursements: National Youth Sports Program. Deletes authority for reimbursements to NYSP institutions for months other than May through September.
Requires that NYSP children be eligible on showing residence in an area of poor economic conditions or on the basis of an income eligibility statement.
Requires that NYSP institutions receive reimbursements for breakfasts and supplements equal to the regular free school breakfast reimbursement rates.
Advance Program Payments. Limits to nonschool providers the prohibition on releasing the second advance payment without having certified training has been held. [Sec. 3406(e)]
Food Requirements. Deletes the requirement for additional technical assistance in present law.
Replaces the requirement that contracts require bacteria levels to conform to standards applied by the local health authority with a requirement that contracts be in conformance with standards set by local health authorities. [Sec. 3406(f)]
Permitting ``Offer versus Serve.'' Adds authority for school food authorities participating as a summer food service institution to permit children attending a site on school premises operated directly by the school food authority to refuse 1 item of a meal without affecting reimbursement for the meal. [Sec. 3406(g)]
Food Service Management Companies. Deletes requirement for positive efforts to use small and minority-owned businesses in present law.
Deletes requirement for a standard form of contract in present law. [Sec. 3406(h)]
Records. Revises the requirement to make accounts and records available at all times to a requirement that they be available at ``any reasonable time.'' [Sec. 3406(i)]
Removing Mandatory Notice to Institutions. Deletes the requirement for a plan/schedule for informing service institutions of the availability of the summer food service program. [Sec. 3406(j)]
Plan. Deletes State plan requirements for a method of assessing need, estimates of service institutions/sites to be approved and children and meals to be served, and a schedule for providing technical assistance/training. [Sec. 3406(k)]
Monitoring and Training. Deletes requirement for ongoing training and technical assistance for private nonprofit organizations. [Sec. 3406(l)]
Expired Program. Deletes out-of-date requirement to disseminate information. [Sec. 3406(m)]Senate amendment
Establishment of Program. No provision.
Service Institutions: Payments. No provisions.
Administration of Service Institutions. No provision.
Reimbursements: National Youth Sports Program. No provision.
Advance Program Payments. No provision.
Food Requirements. No provision.
Permitting ``Offer versus Serve.'' No provision
Food Service Management Companies. No provision.
Records. No provision.
Removing Mandatory Notice to Institutions. No provision.
Plan. No provision.
Monitoring and Training. No provision.
Expired Program. No provision.Conference agreement
Establishment of Program. The conference agreement adopts the House provision.
Service Institutions: Payments. The conference agreement adopts the House provisions with an amendment that sets the reimbursement rate for lunches at $1.97.
Administration of Service Institutions. The conference agreement adopts the House provisions.
Reimbursements: National Youth Sports Program. The conference agreement adopts the House provisions with amendments that: delete the provision of present law allowing institutions to participate without application; require that all reimbursements to NYSP institutions be at the regular summer food service program rates; and delete special meal standard and compatibility requirements for NYSP institutions.
Advance Program Payments. The conference agreement adopts the House provisions.
Food Requirements. The conference agreement adopts the House provisions.
Permitting ``Offer versus Serve.'' The conference agreement adopts the House provisions with an amendment allowing school food authorities to permit the refusal of 1 or more items under rules that the school uses for school meal programs.
Food Service Management Companies. The conference agreement adopts the Senate provisions.
Records. The conference agreement adopts the House provision.
Removing Mandatory Notice to Institutions. The conference agreement adopts the House provision.
Plan. The conference agreement adopts the House provisions.
Monitoring and Training. The conference agreement adopts the House provision.
Expired Program. The conference agreement adopts the House provision. [Sec. 706]
7. Commodity Distribution
Present law
Cereal and Shortening in Commodity Donations. Cereal and shortening and oil products must be included among products donated to the school lunch program. [Sec. 14(b) of the NSLA]
Impact Study and Purchasing Procedures. By May 1979, the Secretary must report on the effect of changes in commodity procurement established under 1977 amendments to the NSLA.
The Secretary must establish procedures to ensure that purchase contracts are not entered into unless the previous history and current patterns of the contracting party (with respect to compliance with meat inspection and other food wholesomeness standards) are taken into account. [Sec. 14(d) of the NSLA]
Cash Compensation for Pilot Project Schools. The Secretary must provide cash compensation to certain schools participating in a ``cash/CLOC'' pilot project to make up for losses sustained. Compensation is provided to schools applying before the end of 1990. [Sec. 14(g) of the NSLA]
State Advisory Council. State education agencies receiving food assistance must establish an advisory council composed of school representatives. The council advises the agency on schools' needs relating to the manner of selecting and distributing commodities. [Sec. 14(e) of the NSLA]House bill
Cereal and Shortening in Commodity Donations. Deletes the requirement to include cereal and shortening and oil products in school lunch program donations. [Sec. 3407(a)]
Impact Study and Purchasing Procedures. Deletes out-of-date commodity procurement report requirement.
Deletes requirement for purchase procedures that take into account contractors' compliance with meat inspection/food wholesomeness standards. [Sec. 3407(b)]
Cash Compensation for Pilot Project Schools. Deletes an out-of-date requirement for compensation to certain schools in a pilot project. [Sec. 3407(c)]
State Advisory Council. Deletes the requirement for State commodity assistance advisory councils. [Sec. 3407(d)]Senate amendment
Cereal and Shortening in Commodity Donations. Same provision. [Sec. 1206(a)]
Impact Study and Purchasing Procedures. No provisions.
Cash Compensation for Pilot Project Schools. Same provision. [Sec. 1206(c)]
State Advisory Council. Provides that any State agency receiving food assistance must establish an advisory council
(i.e., deletes the specific reference to State education agencies in present law). [Sec. 1206(b)]Conference agreement
Cereal and Shortening in Commodity Donations. The conference agreement adopts the provision that is common to both bills.
Impact Study and Purchasing Procedures. The conference agreement adopts the Senate provision.
Cash Compensation for Pilot Project Schools. The conference agreement adopts the provision that is common to both bills.
State Advisory Council. The conference agreement adopts the House provisions, with an amendment to replace the requirement for a formal advisory council with a requirement that State agencies to meet with local school food service personnel when making decisions regarding commodities used in meal programs. [Sec. 707]
8. child care food program
Present law
Establishment of Program. The Secretary is authorized to carry out a program to assist States to initiate, maintain, and expand nonprofit food service for children in child care institutions. [Sec. 17(a) of the NSLA]
Payments to Sponsor Employees. No provision.
Technical Assistance. If necessary, States must provide technical assistance to institutions submitting incomplete applications to participate. [Sec. 17(d) of the NSLA]
Reimbursement of Child Care Institutions. Day care centers may be provided reimbursement for up to 2 meals and 2 supplements (or 3 meals and 1 supplement) each day for children in a child care setting for 8 or more hours a day.
[Sec. 17(f)(2) of the NSLA]
Improved Targeting of Day Care Home Reimbursements: Restructured Day Care Home Reimbursements. Reimbursements for family or group day care homes are specific amounts set by law and indexed for inflation. All homes receive the same reimbursements, and reimbursements are not differentiated by family income of the child receiving a subsidized meal/supplement. For July 1996 through June 1997, these rates are:
$1.575 for each lunch/supper, 86.25 cents for each breakfast, and 47 cents for each supplement.
Rates are adjusted each July to reflect changes in the food away from home component of the CPI-U for the most recent 12-month period for which data are available. Each adjustment is rounded to the nearest quarter cent. [Sec. 17(f)(3)(A) of the NSLA]
Improved Targeting of Day Care Home Reimbursements: Grants to States. No provision.
Improved Targeting of Day Care Home Reimbursements: Provision of Data. No provision.
Reimbursement. The Secretary is required to reduce administrative payments to day care home sponsors as of August 1981 so as to achieve a 10 percent reduction in the total level of payments. [Sec. 17(f)(3)(B) of the NSLA]
Funds for administrative expenses may be used by day care home sponsors to conduct outreach and recruitment to unlicensed day care homes so that they may become licensed.
[Sec. 17(f)(3)(C) of the NSLA]
States must provide monthly advance payments to approved day care institutions in an amount that reflects the full level of valid claims customarily received (or the State's best estimate in the case of newly participating institutions). [Sec. 17(f)(4)]
Nutritional Requirements. Meals served under the child and adult care food program must be ``served free to needy children.''
The Secretary is required to provide ``additional technical assistance'' to institutions and day care home sponsors that are having difficulty maintaining compliance with nutrition requirements. [Sec. 17(g)(1) of the NSLA]
Elimination of State Paperwork/Outreach Burden. States must take affirmative action to expand availability of the child and adult care food program benefits, including annual notification of all nonparticipating day care home providers. The Secretary must conduct demonstration projects to test approaches to removing or reducing barriers to participation by homes that operate in low-income areas or primarily serve low-income children. The Secretary and States must provide training and technical assistance to assist day care home sponsors in reaching low-income children. The Secretary must instruct States to provide information and training about child health and development through day care home sponsors.
[Sec. 17(k) of the NSLA]
Records. States and institutions must make accounts and records available for inspection and audit by the Secretary and others ``at all times.'' [Sec. 17(m) of the NSLA]
Modification of Adult Care Food Program. Nonresidential adult day care centers (including group living arrangements) serving chronically impaired disabled adults or persons 60 years of age or older are eligible institutions under the child and adult care food program. Reimbursements are provided for meals served to chronically disabled adults and those 60 or older in these centers. [Sec. 17(o) of the NSLA]
Unneeded Provision. The Secretary is required to provide State child and adult care food service agencies with basic information about the WIC program. State agencies must provide child care institutions with specific materials about the WIC program, annually update the materials, and ensure that at least once a year the institutions provide specific written information to parents about the WIC program. [Sec. 17(q) of the NSLA]
Effective Date. No provision.
Study. No provision.House bill
Establishment of Program. Removes the reference to the Secretary's authority to carry out a program to assist States to ``expand'' child care food services. [Sec. 3408(a)]
Payments to Sponsor Employees. Prohibits payments to day care home sponsors that base payments to employees on the number of homes recruited. [Sec. 3408 (b)]
Technical Assistance. Deletes the requirement to provide technical assistance in cases of incomplete applications.
[Sec. 3408(c)]
Reimbursement of Child Care Institutions. Removes authority for reimbursement for more than 2 meals and 1 supplement for children in care for 8 or more hours. [Sec. 3408(d)]
Improved Targeting of Day Care Home Reimbursements: Restructured Day Care Home Reimbursements. Establishes new reimbursement rates for day care homes as follows:
``Tier I'' homes receive the meal/supplement rates in effect on July 1, 1996 (see present law), adjusted annually for inflation.
``Tier I'' homes are (1) those located in areas, defined by the Secretary based on Census data, in which at least 50 percent of children are in households with income below 185 percent of the Federal poverty guidelines, (2) those located in an area served by a school enrolling elementary students in which at least 50 percent of the children are certified eligible to receive free or reduced price school meals, or
(3) those operated by a provider whose household income is verified by a sponsor (under the Secretary's regulations) to be below 185 percent of the poverty guidelines.
``Tier II'' homes are homes that do not meet tier I standards, but they may, at their option, receive the substantially higher tier I reimbursement rates under certain conditions (see below).
In general, tier II home rates are 90 cents for each lunch/supper, 25 cents for each breakfast, and 10 cents for each supplement, adjusted annually for inflation. Tier II homes can elect to receive higher tier I rates for meals/supplements served to children who are members of households with income below 185 percent of the Federal poverty guidelines, if the sponsor collects the necessary income information and makes the appropriate eligibility determinations in accordance with the Secretary's rules. Tier II homes also can elect to receive tier I rates for meals/supplements served to children (or children whose parents are) participating in or subsidized under a federally or State-supported child care or other benefit program with an income eligibility limit that does not exceed 185 percent of the poverty guidelines, and may restrict their claim for tier I reimbursements to these children if they choose not to collect income statements from all parents/caretakers.
The Secretary is required to prescribe simplified meal counting and reporting procedures for use by tier II homes
(and their sponsors) that elect to claim tier I reimbursements for children meeting the income or program participation requirements. These procedures can include (1) setting an annual percentage of meals/supplements to be reimbursed at tier I rates based on the family income of children enrolled in a specific month or other period, (2) placing a home in a reimbursement category based on the percentage of children with household income below 185 percent of the poverty guidelines, or (3) other procedures determined by the Secretary.
The Secretary is authorized to establish minimum requirements for verifying income and program participation for tier II homes electing to claim tier I reimbursement rates.
Inflation indexing of rates for day care homes also is revised. The rates set for tier I homes (see present law) and the new tier II rates are adjusted July 1, 1997, and each July thereafter, based on the unrounded rates for the previous 12-month period, then rounded down to nearest lower cent increment. Inflation adjustments are based on changes in the food at home component of the CPI-U for the most recent 12-month period for which data are available. [Sec. 3408(e)(1)]
Improved Targeting of Day Care Home Reimbursements: Grants to States. Provides grants to States to assist family or group day care homes and their sponsors in implementing the new reimbursement rate system. For fiscal year 1997, the Secretary is required to reserve for this purpose $5 million of the amounts made available for the child care food program and allocate it to States based on the number of homes participating in fiscal year 1995 (with a minimum of $30,000 for each State). [Sec. 3408(e)(2)]
Improved Targeting of Day Care Home Reimbursements: Provision of Data. Requires that the Secretary provide Census data necessary for determining homes' tier I/II status and that States provide school enrollment data necessary to determine tier I/II status. In determining homes' tier I/II status, the most current available data (Census, enrollment, income) must be used. In general, a determination that a home is located in a tier I area is effective for 3 years. [Sec. 3408(e)(3)]
Reimbursement. Deletes the out-of-date requirement to reduce administrative payments to sponsors.
Deletes the authority to use administrative expense funding for outreach and recruitment.
Makes the provision of advance payments a State option.
[Sec. 3408(f)]
Nutritional Requirements. Deletes a redundant provision requiring that free meals be served to needy children (this requirement is found elsewhere in law).
Deletes the requirement to provide additional technical assistance. [Sec. 3408(g)]
Elimination of State Paperwork/Outreach Burden. Removes the noted requirements in present law and replaces them with a requirement that States provide sufficient training, technical assistance, and monitoring to facilitate effective operation of the child care food program. Requires the Secretary to assist States in developing plans to do so.
[Sec. 3408(h)]
Records. Revises the requirement to make accounts and records available at all times to a requirement that they be available at ``any reasonable time.'' [Sec. 3408(i)]
Modification of Adult Care Food Program. Deletes authority for reimbursements for meals to those in adult day care centers who are not chronically impaired disabled persons. Deletes authority for any reimbursements to adult day care centers that do not serve chronically impaired disabled persons. [Sec. 3408(j)]
[Note.--Section 3408(a) & (l) make conforming amendments.]
Unneeded Provision. Deletes requirements to provide WIC information through the child care food program. [Sec. 3408(k)]
Effective Date. Establishes effective dates for changes affecting the child care food program. In general, they are effective on enactment, but amendments restructuring day care home reimbursement rates are effective July 1, 1997.
Requires the Secretary to issue interim regulations related to restructuring day care home reimbursement rates, provision of data to implement the restructured rates, and changes to sponsors' use of administrative funds by January 1, 1997. Final regulations on these changes must be issued by July 1, 1997. [Sec. 3408(m)]
Study. Requires the Secretaries of Agriculture and Health and Human Services to undertake a study of the effects of amendments restructuring day care home reimbursements, due 2 years after enactment. Requires State agencies to provide certain data to support the study. [Sec. 3408(n)]Senate amendment
Establishment of Program. Same provisions. [Sec. 1207(a)]
Payments to Sponsor Employees. Same provision. [Sec. 1207(b)]
Technical Assistance. Same provision. [Sec. 1207(c)]
Reimbursement of Child Care Institutions. Same provision.
[Sec. 1207(d)]
Improved Targeting of Day Care Home Reimbursements: Restructured Day Care Home Reimbursements. Same provisions, except that the new rates for tier II homes are $1 for lunches/suppers, 30 cents for breakfasts, and 15 cents for supplements. [Sec. 1207(e)(1)]
The conferees understand that the Secretary has historically provided different family and group day care home payments in Alaska and Hawaii. The conferees expect that the tier I and tier II reimbursements provided for in this measure also will be varied for Alaska and Hawaii.
Improved Targeting of Day Care Home Reimbursements: Provision of Data. Same provisions. [Sec. 1207(e)(3)]
Reimbursement. Same provisions, except replaces the existing permission to use funds for outreach/recruitment with permission to use funds to assist unlicensed homes in becoming licensed. [Sec. 1207(f)]
Nutritional Requirements. Same provisions. [Sec. 1207(g)]
Elimination of State Paperwork/Outreach Burden. Same provisions. [Sec. 1207(h)]
Records. Same provision. [Sec. 1207(i)]
Modification of Adult Care Food Program. No provision.
Unneeded Provision. Replaces the existing requirement for providing WIC information with a requirement that State agencies ensure that, at least once a year, child care institutions provide written information to parents that includes basic WIC information. [Sec. 1207(j)]
Effective Date. Same provisions. [Sec. 1207(k)]
Study. Same provisions. [Sec. 1207(l)]Conference agreement
The conference agreement adopts the provisions that are common to both bills. With respect to the provisions in disagreement:
Improved Targeting of Day Care Home Reimbursements: Restructured Day Care Home Reimbursements. The conference agreement adopts the House provisions with an amendment setting the reimbursement rate at 95 cents for lunches/suppers, 27 cents for breakfasts, and 13 cents for supplements.
Reimbursement. The conference agreement adopts the Senate provisions.
Modification of Adult Care Food Program. The conference agreement adopts the Senate provision.
Unneeded Provision. The conference agreement adopts the House provision. [Sec. 708]
9. PILOT PROJECTS
Present law
``Universal free lunch'' pilots, similar to ``provision 2'' authority found elsewhere in law, are required. [Sec. 18(d) of the NSLA]
A demonstration project for grants to provide meals and supplements to adolescents in programs outside school hours is required; assistance is in accordance with that provided under the child and adult care food program. For each of fiscal years 1996 and 1997, the Secretary must expend
$475,000 ($525,000 in 1998), unless there is an insufficient number of suitable applicants. [Sec. 18(e) of the NSLA]
Pilot projects are authorized to evaluate the effects of contracting with private organizations to act as a State agency in cases where the Secretary is administering a child nutrition program in place of a State. [Sec. 18(a) of the NSLA]
A pilot project is authorized to assist schools in offering students additional choices of fruits, vegetables, legumes, cereals, and grain-based products (including organically produced commodities). [Sec. 18(g) of the NSLA]
A pilot project is authorized to assist schools in offering students additional choices of dairy products, lean meat, and poultry products (including organically produced commodities). [Sec. 18(h) of the NSLA]
Pilots are authorized to reduce paperwork, application, and meal counting requirements, and make program changes that will increase school meal program participation--while receiving Federal payments equal to the prior year adjusted for inflation/enrollment. [Sec. 18(i) of the NSLA]House bill
Deletes separate authority for the ``universal free lunch'' projects, which are similar to ``provision 2'' authority found elsewhere in the law. [Sec. 3409(a)]
Makes the pilot demonstration project for grants to provide meals and supplements to adolescents in programs outside school hours optional and authorizes ``such sums as are necessary'' for fiscal years 1997 and 1998. [Sec. 3409(b)]
Deletes authority for the pilot projects to: evaluate effects of contracting with private organizations; assist schools in offering students additional choices of fruits, vegetables, legumes, cereals and grain-based products, dairy products, lean meat and poultry products (including organically produced commodities); reduce paperwork, application and meal counting requirements and make program changes to increase school meal program participation. [Sec. 3409(c)] Senate amendment
The Senate amendment contains the same provisions that delete authority for the ``universal free lunch'' projects and make the pilot demonstration project for grants to provide meals and supplements to adolescents in programs outside school hours optional (authorizing ``such sums as are necessary'' for fiscal 1997 and 1998). [Sec. 1208(a), (b)] The Senate amendment does not contain the House provisions that delete authority for the pilot projects to: evaluate effects of contracting with private organizations; assist schools in offering students additional choices of fruits, vegetables, legumes, cereals and grain-based products, dairy products, lean meat and poultry products (including organically produced commodities); reduce paperwork, application and meal counting requirements and make program changes to increase school meal program participation.Conference agreement
The conference agreement adopts the provisions. [Sec. 709]
10. REDUCTION OF PAPERWORK
Present law
In carrying out the NSLA and the CNA, the Secretary is required to reduce paperwork required of State and local agencies and others (e.g., parents) to the maximum extent practicable. In carrying out this requirement, the Secretary is required to consult with State/local administrators and convene a meeting of these administrators (not later than September 1990), and obtain suggestions from members of the public on reducing paperwork. By November 1990, the Secretary is required to report to Congress concerning the extent to which reduction in paperwork has occurred. [Sec. 19 of the NSLA]House bill
Deletes out-of-date paperwork reduction requirements. [Sec. 3410]Senate amendment
Same provision. [Sec. 1209]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 710]
11. INFORMATION ON INCOME ELIGIBILITY
Present law
The Secretary is required to provide State agencies with information needed to determine income eligibility for free or reduced price meal. It must be provided by May 1990. Not later than July 1990, the Secretary must review model application forms under the NSLA and the CNA and simplify the format/instructions for these forms. [Sec. 23 of the NSLA]House bill
Deletes out-of-date income verification and application form requirements. [Sec. 3411]Senate amendment
Same provision. [Sec. 1210]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 711]
12. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS
Present law
By November 1991, the Secretary and the Secretary of Health and Human Services are required to develop a ``nutrition guidance'' publication. They must distribute it within 6 months. The Secretary must revise menu planning guides to include recommendations for implementing the nutrition guidance in the publication. In carrying out any school meal program, summer program, or child care food program, school food authorities must apply the published nutrition guidance, and the Secretary must ensure that meals and supplements are consistent with the nutrition guidance. The Secretary and the Secretary of Health and Human Services may jointly update the guidance publication. [Sec. 24 of the NSLA]House bill
Deletes the noted provisions of present law dealing with development and implementation of a nutrition guidance. [Sec. 3412]Senate amendment
Same provision. [Sec. 1211]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 712]
13. INFORMATION CLEARINGHOUSE
Present law
The Secretary is required to enter into a contract with a nongovernmental organization to establish and maintain a clearinghouse for information for nongovernmental groups on food assistance and self-help initiatives. The clearinghouse is required to be funded at $200,000 in fiscal year 1996,
$150,000 in 1997, and $100,000 in 1998. [Sec. 26 of the NSLA]House bill
Deletes the requirement for funding of a nutrition information clearinghouse. [Sec. 3413]Senate amendment
No provision.Conference agreement
The conference agreement adopts the Senate provision.
SUBTITLE B--CHILD NUTRITION ACT OF 1966
14. SPECIAL MILK PROGRAM
Present law
``United States'' is defined to include the Trust Territory of the Pacific Islands. [Sec. 3(a)(3) of the CNA]House bill
Replaces Trust Territory of the Pacific Islands with
``Commonwealth of the Northern Mariana Islands.'' [Sec. 3421]Senate amendment
Same provision. [Sec. 1251]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec 721]
15. FREE AND REDUCED PRICE POLICY STATEMENT
Present law
No provision.House bill
Provides that schools may not be required to submit a free and reduced price ``policy statement'' to State education agencies unless there is a substantive change in the free and reduced price policy of the school. Routine changes (e.g., adjusting income eligibility standards) are not sufficient cause for requiring a school to submit a policy statement.
[Sec. 3422]Senate amendment
Similar provisions with a technical amendment clarifying that school food authorities, rather than schools, are the entities that may be required to submit a policy statement.
[Sec. 1252]Conference agreement
The conference agreement adopts the Senate provision. [Sec. 722]
16. SCHOOL BREAKFAST PROGRAM AUTHORIZATION
Present law
Training and Technical Assistance. Through State education agencies, the Secretary must provide technical assistance and training to school breakfast program schools to assist them in complying with nutrition requirements and providing appropriate meals to children with medically certified special dietary needs. The Secretary also must provide additional technical assistance to schools that are having difficulty maintaining compliance with nutrition requirements. [Sec. 4(e)(1) of the CNA]
Startup and Expansion. The Secretary and State education agencies are directed to carry out information, promotion, and outreach programs to further the policy of expanding the school breakfast program to all schools where it is needed, including the use of ``language appropriate'' materials. The Secretary is to report to Congress no later than October 1, 1993, concerning efforts to increase school participation.
[Sec. 4(f) of the CNA]
The Secretary is required to use $5 million a year (through fiscal year 1997), $6 million in 1998, and $7 million in each subsequent year to fund a program of competitively bid grants to State education agencies for the purpose of initiating or expanding the school breakfast and summer food service programs. [Sec. 4(g) of the CNA]House bill
Training and Technical Assistance. Deletes technical assistance and training requirements. [Sec. 3423(a)]
Startup and Expansion. Effective October 1, 1996, deletes the requirement for information, promotion, and outreach grants to expand the school breakfast program. [Sec. 3423(b)]Senate amendment
Training and Technical Assistance. Deletes the requirement to provide additional technical assistance. [Sec. 1253(a)]
Startup and Expansion. Same provision. [Sec. 1253(b)]Conference agreement
The conference agreement adopts the startup and expansion provisions that are common to both bills and adopts the Senate provision regarding Training and Technical Assistance.
[Sec. 723]
17. state administrative expenses
Present law
Commodity Distribution Administration. States are permitted to use a portion of the funds available for State administrative expenses to assist in administering the commodity distribution program. [Sec. 7(e) of the CNA]
Studies. The Secretary may not provide State administrative expense funding to a State unless the State agrees to participate in any study or survey of NSLA or CNA programs conducted by the Secretary. [Sec. 7(h) of the CNA]
Approval of Changes. States must annually submit a plan for the use of State administrative expense funds. [Sec. 7(f) of the CNA]House bill
Commodity Distribution Administration. Deletes specific authority to use State administrative expense money for commodity distribution administration (this authority is found elsewhere in law). [Sec. 3424(a)]
Studies. Deletes the provision barring State administrative expense funding when a State fails to agree to participate in a study or survey. [Sec. 3424(a)]
Approval of Changes. Removes the requirement for annual plans for State administrative expense funds and replaces it with a requirement to submit any substantive plan changes for the Secretary's approval. [Sec. 3424(b)]Senate amendment
Commodity Distribution Administration. Same provision.
[Sec. 1254(a)]
Studies. Same provision. [Sec. 1254(a)]
Approval of Changes. Same provisions. [Sec. 1254(b)]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 724]
The conference agreement repeals Section 7(e) of the Child Nutrition Act so as to simplify the language in, and eliminate redundant provisions of, the Act. The managers note that no provisions of the Child Nutrition Act prohibit States from using State administrative expense (SAE) funds to administer the Commodity Distribution Program, which is authorized through the National School Lunch Act, and stress that the repeal of Section 7(e) should not be construed as barring or discouraging States from using SAE funds for this purpose.
18. regulations
Present law
The Secretary is required to develop, and provide to State agencies for distribution to schools, model language that bans the sale of competitive foods of minimal nutritional value, along with a copy of the regulations concerning competitive foods. [Sec. 10(b) of the CNA]House bill
Deletes the out-of-date requirement for model language on competitive foods. [Sec. 3425]Senate amendment
Same provision. [Sec. 1255]Conference agreement
The conference agreement adopts provisions common to both bills. [Sec. 725]
19. prohibitions
Present law
Neither the Secretary nor the States may impose any requirement with respect to teaching personnel, curriculum, or instruction in any school when carrying out the provisions of the special milk and school breakfast programs. [Sec. 11(a) of the CNA]House bill
Removes the prohibition on States imposing personnel, curriculum, and instruction requirements. [Sec. 3426]Senate amendment
Same provision. [Sec. 1256]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 726]
20. miscellaneous provisions and definitions
Present law
``State'' is defined to include the Trust Territory of the Pacific Islands. [Sec. 15(1) of the CNA]
``School'' is defined to include nonprofit child care centers in Puerto Rico. [Sec. 15(3) of the CNA]House bill
Replaces the reference to the Trust Territory of the Pacific Islands with a reference to the Commonwealth of the Northern Mariana Islands. [Sec. 3427]
Makes a conforming amendment deleting the inclusion of nonprofit child care centers as schools in Puerto Rico. [Sec. 3427]Senate amendment
Same provisions. [Sec. 1257]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 727]
21. accounts and records
Present law
States, State education agencies, schools, and nonprofit institutions must make accounts and records available for inspection by the Secretary ``at all times.'' [Sec. 16(a) of the CNA]House bill
Revises the requirement to make accounts and records available at all times to a requirement that they be available at ``any reasonable time.'' [Sec. 3428]Senate amendment
Same provision. [Sec. 1258]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 728]
22. special supplemental nutrition program for women, infants, and children
Present law
Definitions. ``Homeless individual'' is defined to include an individual whose primary nighttime residence is a temporary accommodation in the residence of another. [Sec. 17(b)(15) of the CNA]
Secretary's Promotion of WIC. The Secretary must
``promote'' the WIC program by producing and distributing materials, including public service announcements in English and other appropriate languages. [Sec. 17(c)(5) of the CNA]
Eligible Participants. The Secretary must report biennially to Congress and the National Advisory Council on Maternal, Infant, and Fetal Nutrition on the income and nutritional risk characteristics of WIC participants, participation by migrants, and other appropriate matters. [Sec. 17(d)(4) of the CNA]
Nutrition and Drug Abuse Education. State agencies must ensure that drug abuse education is provided to all pregnant, postpartum, and breastfeeding WIC participants, and to parents/caretakers of WIC children.
Nutrition education and breastfeeding promotion and support must be evaluated annually by State agencies.
State agencies must ensure that written information about food stamps, AFDC, and the child support enforcement program is provided to WIC applicants and participants.
Each local WIC agency may use a master file to document and monitor the provision of nutrition education to individuals that are required to be included in group nutrition education classes.
State agencies must ensure that local agencies maintain and make available a list of local resources for substance abuse counseling and treatment. [Sec. 17(e) of the CNA]
State Plan. State agencies must annually submit a State plan for WIC operations and administration.
State agency WIC plans must include a plan to coordinate operations with special counseling services such as the expanded food and nutrition education program, immunization programs, local breastfeeding promotion programs, prenatal care, well-child care, family planning, drug abuse education, substance abuse counseling and treatment, child abuse counseling, AFDC, food stamps, maternal and child health care, and Medicaid (including Medicaid programs that use
``coordinated care providers'').
State agency WIC plans must include a plan to provide benefits to unserved and underserved areas in the State if sufficient funds are available.
State agency WIC plans must include a plan to provide benefits to those most in need and to provide eligible individuals not participating with program information, with an emphasis on reaching and enrolling eligible women in the early months of pregnancy and including provisions to reach and enroll eligible migrants.
State agency WIC plans must include a specific plan for provision of WIC benefits to incarcerated persons if they opt to provide benefits to these persons.
State agency WIC plans must include a plan to improve access to participants and applicants who are employed or reside in rural areas by addressing their needs through procedures/practices that minimize the time they must spend away from work and the distances they must travel.
State agency WIC plans must include an estimate of the increased participation that will result from cost-saving initiatives (including an explanation of how the estimate was developed) if the State chooses to request ``funds conversion authority'' (using food money for administration).
State agency WIC plans must include other information ``as the Secretary may require.''
State agencies must establish procedures under which members of the general public are provided an opportunity to comment on the development of the State plan.
State agencies must, on receiving a completed local agency application, notify the applicant in writing within 30 days of the approval or disapproval of the application
(accompanied by a statement of reasons for any disapproval). Within 15 days of receiving an incomplete application, the State agency must notify the applicant of added information need to complete the application.
State agencies must, in cooperation with local WIC agencies, publicly announce and distribute information at least annually on the availability of WIC benefits to offices and organizations that deal with significant numbers of potentially eligible individuals. The information must be distributed in a manner designed to provide it to those most in need of benefits, including pregnant women in the early months of pregnancy. Local agencies with cooperative arrangements with hospitals must advise potentially eligible persons of the availability of benefits and provide them with the opportunity to be certified as eligible in the hospital.
State agency plans for fiscal year 1994 must advise the Secretary of procedures for reducing the purchase of low-iron infant formula.
State and local WIC agencies must make accounts and records available for inspection and audit by the Secretary ``at all times.''
Notices issued to WIC participants who are suspended or terminated during their certification period because of a shortage of funds must include the categories of participants whose benefits are being suspended or terminated (in addition to other information required by the Secretary).
The Secretary must establish standards for proper, efficient, and effective administration, including standards that will ensure sufficient State agency staff.
Products specifically designed for pregnant, postpartum, and breastfeeding women, or infants, are to be made available at the Secretary's discretion if they are commercially available or are approved by the Secretary based on clinical tests.
State agencies must (a) provide nutrition education, breastfeeding promotion, and drug abuse education in languages other than English and (b) use appropriate foreign language materials in areas where a substantial number of low-income households speak a language other than English.
State agencies may adopt methods of delivering benefits to accommodate the special needs and problems of incarcerated individuals.
Local agencies must provide information about other potential sources of food assistance to WIC applicants who apply but cannot be served. [Sec. 17(f) of the CNA]
Information. On completion of the 1990 Census, the Secretary must make available an estimate (by State and county) of the number of women, infants, and children who are members of families with incomes below 185 percent of the Federal poverty guidelines. [Sec. 17(g)(6) of the CNA]
Procurement of Infant Formula. The Secretary must require State agencies to report breastfeeding data for the biennial report by the Secretary on participant characteristics.
No State may receive a WIC allocation unless it meets certain conditions related to cost containment prior to September 1989.
States having cost-containment contracts in effect in 1989 need not meet new cost containment provisions until the term of the contract runs out.
The Secretary is required to establish pilot projects to determine the feasibility of using ``universal product codes'' to aid vendors in providing the correct infant formula to WIC participants.
The Secretary must follow certain specific rules in soliciting cost containment bids for infant formula on behalf of States.
The Secretary must promote the joint purchase of infant formula by States, encourage the purchase of supplemental foods other than infant formula under cost containment procedures, inform States of the benefits of cost containment, and provide technical assistance related to cost containment.
The Secretary must use $10 million a year (from carryover funds) for infrastructure development, special projects of regional or national significance, and special breastfeeding support and promotion projects. [Sec. 17(h) of the CNA]
National Advisory Council. The Secretary designates the Chairman and Vice-Chairman of the National Advisory Council on Maternal, Infant, and Fetal Nutrition. [Sec. 17(k) of the CNA]
Completed Study; Community College Demonstration; Grants for Information and Data Systems. The Secretary must, by May 1989, conduct a study on appropriate methods of drug abuse education instruction. The Secretary must prepare and distribute drug abuse education materials. Specific appropriations for the study and materials are authorized for fiscal year 1989, and, for later years, ``such sums as may be necessary'' are authorized for distributing drug abuse education materials and making referrals under drug abuse education programs. [Sec. 17(n) of the CNA]
The Secretary is authorized to conduct a pilot project for WIC clinics in community colleges offering nursing education programs. [Sec. 17(o) of the CNA]
The Secretary is authorized to make grants to State agencies to improve WIC information and data systems. Appropriations for this are authorized through fiscal year 1994. [Sec. 17(p) of the CNA]House bill
Definitions. Makes clear that, after 365 days in a temporary accommodation, individuals will not be considered homeless. [Sec. 3429(a)]
[Note.--Sec. 3429(a) also makes a technical/conforming amendment to the definition of ``drug abuse education.''
Secretary's Promotion of WIC. Deletes the requirement that the Secretary promote the WIC program. [Sec. 3429(b)]
Eligible Participants. Deletes the requirement for the Secretary's biennial report on participants. [Sec. 3429(c)]
Nutrition and Drug Abuse Education. Makes provision of drug abuse education optional.
Deletes the requirement to annually evaluate nutrition education and breastfeeding promotion/support.
Removes the requirement for providing information about food stamps, AFDC, and child support enforcement. Replaces it with authority for State agencies to provide local agencies with materials describing other programs for which WIC participants may be eligible.
Deletes the specific authority for using a nutrition education master file.
Requires that local agencies maintain and make available lists of local substance abuse counseling and treatment resources. [Sec. 3429(d)]
State Plan. Revises the State plan submission requirement to stipulate that State agencies only be required to submit substantive changes in their plan for the Secretary's approval.
Removes the noted specific State plan requirements for coordination. Replaces them with a requirement that State plans include a plan to coordinate WIC operations with other services or programs that may benefit WIC participants and applicants.
Adds a requirement that State WIC plans include a plan to improve access for those who are employed, or who reside in rural areas.
Removes the noted specific State plan requirements for reaching those most in need and not participating. Retains a requirement that State plans include a plan for reaching and enrolling women in the early months of pregnancy and migrants.
Deletes the noted specific State plan requirements as to how incarcerated persons will be provided benefits.
Deletes the noted specific State plan requirements as to improving program access for the employed and rural residents. [Note.--An earlier provision adds a general State plan requirement for improved access for these persons.]
Deletes the noted State plan requirement for an estimate of increased participation when funds conversion authority is chosen by the State.
Revises authority for the Secretary to require other information as the Secretary may require to a stipulation that plans must include other information as the Secretary may ``reasonably'' require.
Makes a conforming amendment deleting a provision that permits State agencies to submit only those parts of plans that differ from previous years.
Deletes the public comment procedures requirement.
Deletes these processing requirements for local WIC agency applications.
Deletes the noted requirements for announcing and distributing information and certification in hospitals.
Deletes an out-of-date requirement that States advise the Secretary on procedures to reduce purchases of low-iron infant formula.
Revises the requirement to make accounts and records available at all times to a requirement that they be available at ``any reasonable time.''
Deletes noted requirements as to the content of suspension/termination notices.
Deletes the requirement for staffing standards
Deletes the noted provision stipulating that products designed for women and infants may be made available in the WIC program if commercially available or approved based on tests.
Makes optional the provision of services and use of materials in languages other than English.
Deletes specific authority for delivery methods to accommodate incarcerated individuals.
Makes optional the requirement to provide information about other potential sources of food assistance. [Sec. 3429(e)]
Information. Deletes out-of-date requirement for a report on those income-eligible for the WIC program based on the 1990 Census. [Sec. 3429(f)]
Procurement of Infant Formula. Deletes the requirement for States to report data on breastfeeding for a biennial report that is eliminated elsewhere in the bill.
Deletes an out-of-date requirement to meet cost containment conditions.
Deletes an out-of-date provision relating to cost containment contracts.
Deletes the requirement for universal product code pilots.
Deletes conditions on the Secretary when soliciting infant formula bids on behalf of States.
Deletes noted requirements of the Secretary related to promoting cost containment.
Removes breastfeeding promotion and support projects as a use for the Secretary's special fund of $10 million a year.
None of the amendments affecting procurement practices are to apply to contracts for infant formula in effect on enactment. [Sec. 3429(g)]
National Advisory Council. Provides that the Advisory Council elect its Chairman and Vice-Chairman. [Sec. 3429(h)]
Completed Study; Community College Demonstration; Grants for Information and Data Systems. Deletes requirements for a 1989 drug abuse education study and preparation of materials. Deletes funding for distributing materials and referrals.
[Sec. 3429(I)]
Deletes authority for a pilot for WIC clinics in community colleges. [Sec. 3429(I)]
Deletes out-of-date authority for information and data system improvement grants. [Sec. 3429(I)]
Disqualification of WIC Vendors. Adds provisions for disqualifying WIC vendors that have been disqualified from participation in the Food Stamp Program. Disqualification is for the same period as the food stamp disqualification and is not subject to separate administrative and judicial review.
[Sec. 3429(j)]Senate amendment
Definitions. Same provisions. [Sec. 1259(a)]
Secretary's Promotion of WIC. Same provision. [Sec. 1259(b)]
Eligible Participants. Same provision. [Sec. 1259(c)]
Nutrition and Drug Abuse Education. No provision.
State Plan. Same provisions, except the Senate amendment
(1) requires plans for improving access to those who are employed, or who reside, in rural areas; (2) includes no provisions to delete the public comment procedures requirement, delete requirements for announcing and distributing information and certification in hospitals, or to make optional the provision requiring services and use of materials in languages other than English. [Sec. 1259(d)]
Information. Same provision. [Sec. 1259(e)]
Procurement of Infant Formula. Same provisions, except that the Senate amendment has no provision to remove breastfeeding promotion and support projects as a use for the Secretary's special fund. [Sec. 1259(f)]
National Advisory Council. Same provision. [Sec. 1259(g)]
Completed Study; Community College Demonstration; Grants for Information and Data Systems. Same provisions. [Sec. 1259(h)]
Disqualification of WIC Vendors. Same provisions. [Sec. 1259(i)] Conference agreement
The conference agreement adopts the provisions that are common to both bills. With respect to provisions in disagreement:
Nutrition Education and Drug Abuse Education. The conference agreement adopts the House provision with an amendment retaining the requirement for drug abuse education.
State Plan. The conference agreement: adopts the House provision regarding plans to improve access to the employed and those in rural areas; adopts the Senate provision on requirements for public comment procedures and for announcing and distributing information and certification in hospitals, and; adopts the House provision making optional the provision requiring services and use of materials in languages other than English.
Procurement of Infant Formula. The conference agreement adopts the Senate provision retaining breastfeeding promotion and support projects as a use for the Secretary's special fund. [Sec. 729]
23. CASH GRANTS FOR NUTRITION EDUCATION
Present law
The Secretary is authorized to make cash grants to State education agencies for demonstration projects in nutrition education. [Sec. 18 of the CNA]House bill
Deletes authority for cash grants for nutrition education demonstration projects. [Sec. 3430]Senate amendment
Same provision. [Sec. 1260]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 730]
24. nutrition education and training
Present law
Findings. Congress finds that:
the proper nutrition of children is a matter of highest priority;
the lack of understanding of good nutrition principles and their relation to health can contribute to children's rejection of nutritious foods and plate waste;
many school food service personnel and teachers do not have adequate training;
the lack of parental knowledge of nutrition can be detrimental on children's nutritional development; and
there is a need to create opportunities for children to learn about good nutrition. [Sec. 19(a) of the CNA]
It is the purpose of the provisions for a nutrition education and training program to (a) encourage dissemination of information to children and (b) establish a system of grants to State education agencies for nutrition education and training programs. [Sec. 19(b) of the CNA]
Use of Funds. State agencies may use nutrition education and training funds for:
funding a nutrition component in consumer homemaking and health education programs;
instructing teachers and school staff on how to promote better nutritional health and motivate children from a variety of linguistic and cultural backgrounds to practice sound eating habits;
develop means of providing nutrition education in
``language appropriate'' materials through after-school programs;
training related to healthy and nutritious meals;
creating instructional programming on the ``Food Guide Pyramid'' (including language appropriate materials) for teachers, food service staff, and parents;
funding aspects of the Secretary's ``Strategic Plan for Nutrition Education;''
encouraging public service advertisements to promote healthy eating habits for children, including language appropriate materials and advertisements;
coordinating and promoting nutrition education and training activities in local school districts;
contracting with public and private nonprofit education institutions to conduct nutrition education and training;
increasing public awareness of the importance of breakfasts; and
coordinating and promoting nutrition education and training activities (including those under the summer and child care food programs). [Sec. 19(f) of the CNA]
States may receive planning and assessment grants for nutrition education and training. [Sec. 19(f) of the CNA]
Nothing in the provisions for a nutrition education and training program prohibits agencies from making available or distributing materials, resources, activities, or programs to adults. [Sec. 19(f) of the CNA]
Accounts, Records, and Reports. State education agencies must make accounts and records available for inspection and audit by the Secretary ``at all times.'' [Sec. 19(g) of the CNA]
State Coordinators for Nutrition; State Plan. A State nutrition coordinator's assessment of the nutrition education and training needs of the State must include identification of all students in need of nutrition education and identification of State and local resources for materials, facilities, staff, and methods for nutrition education. [Sec. 19(h) of the CNA]
State nutrition coordinators' comprehensive plans for nutrition education (prepared after receiving a planning and assessment grant) must meet certain specific standards. [Sec. 19(h) of the CNA]
Authorization of Appropriations. Funding for the nutrition education and training program is permanently appropriated at
$10 million a year. State grants are based on a rate of 50 cents for each child enrolled, except that no State may receive less than $62,500. [Sec. 19(I) of the CNA]
Assessment. By October 1, 1990, each State must assess its nutrition education and training program. [Sec. 19(j) of the CNA]House bill
Findings. Deletes the noted findings in present law and replaces them with a finding that ``effective dissemination of scientifically valid information to children participating or eligible to participate in the school lunch and related child nutrition programs should be encouraged.'' [Sec. 3431(a)]
Removes provisions referring to dissemination of information from the statement of purpose (they are included in the findings as noted above). [Sec. 3431(a)]
Use of Funds. Deletes the noted provisions for use of nutrition education and training funds. Adds a provision allowing funds to be used for ``other appropriate activities, as determined by the State.'' [Sec. 3431(b)]
Deletes authority for nutrition education and training planning and assessment grants. [Sec. 3431(b)]
Deletes the noted provision relating to materials and activities for adults. [Sec. 3431(b)]
Accounts, Records, and Reports. Revises the requirement to make accounts and records available at all times to a requirement that they be available at ``any reasonable time.'' [Sec. 3431(c)]
State Coordinators for Nutrition; State Plan. Deletes the noted specific requirements for nutrition education and training State assessments. [Sec. 3431(d)]
Deletes all specific requirements on comprehensive nutrition education plans prepared after a planning and assessment grant (these grants are eliminated elsewhere in the bill). [Sec. 3431(d)]
Authorization of Appropriations. Beginning with fiscal year 1997, appropriations are authorized at $10 million a year
(through 2002). State grants are based on a rate of 50 cents for each child enrolled, except that no State will receive less than $75,000. If funds are insufficient to provide grants based on the 50 cent/$75,000 rule, the amount of each State's grant is ratably reduced. [Sec. 3431(e) & (g)]
Assessment. Deletes the out-of-date requirement for State assessments of their nutrition education and training programs. [Sec. 3431(f)]Senate amendment
Findings. Same provisions. [Sec. 1261(a)]
Use of Funds. Same provisions. [Sec. 1261(b)]
Accounts, Records, and Reports. Same provision. [Sec. 1261(c)]
State Coordinators for Nutrition; State Plan. Same provisions. [Sec. 1261(d)]
Authorization of Appropriations. Same provisions. [Sec. 1261(e) & (g)]
Assessment. Same provision. [Sec. 1261(f)]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 731]
Subtitle C--Miscellaneous Provisions
25. coordination of school lunch, school breakfast, and summer food service programs
Present law
No provisions.House bill
Requires the Secretary to develop proposed changes to regulations under the school lunch, school breakfast, and summer food service programs for the purpose of simplifying and coordinating them into a comprehensive meal program. Requires that the Secretary consult with local, State, and regional administrators in developing the proposed changes. Not later than November 1, 1997, the Secretary must submit to Congress a report on the proposed changes. [Sec. 3441]Senate amendment
No provision.Conference agreement
The conference agreement adopts the House provisions. [Sec. 741]
26. rounding rules
Present law
When indexed, reimbursement rates for the school lunch, school breakfast, special milk, and commodity assistance programs are rounded to the nearest quarter cent. [Sec. 3 and 4 of the CNA; Sec. 6 and 11 of the NSLA]House bill
No provision. [Note: Provisions amending the law governing the summer food service program and the child and adult care food program require that, when indexed, their reimbursement rates be rounded down to the nearest lower cent increment.]Senate amendment
Requires that, when indexed, reimbursement rates for the school breakfast, school lunch, special milk, and commodity assistance programs be rounded down to the nearest lower cent increment. [Sec. 1262]
[Note.--As with the House bill, amendments affecting the summer food service program and the child and adult care food program include comparable rounding rules.]Conference agreement
The conference agreement adopts the Senate provisions with an amendment making the new rounding rules applicable only to full price meals in the school breakfast and school lunch programs and full price meals in child care centers. [Sec. 704]
Title VIII--Food Stamps and Commodities Distribution
Subtitle A--Food Stamp Program
1. DEFINITION OF CERTIFICATION PERIOD
Present law
For households subject to periodic (monthly) reporting, eligibility certification periods must be 6-12 months, but the Secretary may waive this rule. For households receiving federally aided public assistance or general assistance, certification periods must coincide with the certification periods for the other public assistance programs. For other households, certification periods generally must not be less than 3 months--but they can be (1) up to 12 months for those consisting entirely of unemployable, elderly, or primarily self-employed persons or (2) as short as circumstances require for those with a substantial likelihood of frequent changes in income or other circumstances and for any household on initial determination. The Secretary may waive the maximum 12-month period to improve program administration. [Sec. 3(c)]House bill
Replaces existing provisions as to certification periods with a requirement that certification periods not exceed 12 months--but can be up to 24 months if all adult household members are elderly or disabled. Requires that State agencies have at least 1 contact with each certified household every 12 months. [Sec. 1011]Senate amendment
Same provision. [Sec. 1111]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 801]
2. DEFINITION OF COUPON
Present law
``Coupon'' is defined to mean any coupon, stamp, or type of certificate issued under provisions of the Food Stamp Act.
[Sec. 3(d)]House bill
Expands the definition of coupon to include: authorization cards, cash or checks issued in lieu of a coupon, or access devices (including an electronic benefit transfer card or personal identification number). [Sec. 1012]Senate amendment
Same provision. [Sec. 1112]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 802]
3. TREATMENT OF CHILDREN LIVING AT HOME
Present law
Parents and their children 21 years of age or younger who live together must apply for food stamps as a single household (thereby reducing aggregate household benefits)--except for children who are themselves parents living with their children and children who are married and living with their spouses. [Sec. 3(i)]House bill
Removes the exception, from the requirement that related persons apply together as a single household, for children who are themselves parents living with their children and children who are married and living with their spouses. [Sec. 1013]Senate amendment
Same provision. [Sec. 1113]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 803]
4. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSEHOLD DETERMINATIONS
Present law
Certain persons who live together may apply for food stamps as separate households (thereby increasing aggregate household benefits) if they purchase food and prepare meals separately and (1) are unrelated or (2) are related but are not spouses or children living with their parents [see item 3 for the proposed change in the household definition]. In addition, elderly persons who live with others and cannot purchase food and prepare meals separately because of a substantial disability may apply as separate ``households'' as long as their co-residents' income is below prescribed limits. [Sec. 3(i)]House bill
Permits States to establish criteria that prescribe when persons who live together (and might otherwise be allowed to apply as separate households) must apply for food stamps as a single household--without regard to common purchase of food and preparation of meals. [Sec. 1014]Senate amendment
No provision.Conference agreement
The conference agreement adopts the Senate provision.
5. ADJUSTMENT OF THE THRIFTY FOOD PLAN
Present law
Maximum food stamp benefits are defined as 103 percent of the cost of the Agriculture Department's ``Thrifty Food Plan,'' adjusted for food-price inflation each October to reflect the plan's cost in the immediately preceding June--and rounded down to the nearest dollar. [Sec. 3(o)]House bill
Sets maximum monthly food stamp benefits at 100 percent of the cost of the Thrifty Food Plan, effective October 1, 1996, adjusted annually as under present law. Requires that the October 1996 adjustment not reduce maximum benefit levels.
[Sec. 1015]Senate amendment
Same provision. [Sec. 1114]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 804]
6. DEFINITION OF HOMELESS INDIVIDUAL
Present law
For food stamp eligibility and benefit determination purposes, a ``homeless individual'' is a person lacking a fixed/regular nighttime residence or one whose primary nighttime residence is a shelter, a residence intended for those to be institutionalized, a temporary accommodation in the residence of another, or a public or private place not designed to be a regular sleeping accommodation for humans.
[Sec. 3(s)]House bill
Provides that persons whose primary nighttime residence is a temporary accommodation in the home of another may only be considered homeless if the accommodation is for no more than 90 days. [Sec. 1016]Senate amendment
Same provision. [Sec. 1115]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 805]
7. STATE OPTION FOR ELIGIBILITY STANDARDS
Present law
The Secretary is directed to establish uniform national standards of eligibility for food stamps, with certain variations allowed for Alaska, Hawaii, Guam, and the Virgin Islands, and in other cases (e.g., imposition of monthly reporting requirements). States may not impose any other standards of eligibility as a condition of participation in the program. [Sec. 5(b)]House bill
Explicitly permits nonuniform standards of eligibility for food stamps. [Sec. 1017]Senate amendment
Same provision. [Sec. 1116]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 806]
8. EARNINGS OF STUDENTS
Present law
The earnings of an elementary/secondary student are disregarded as income until the student's 22nd birthday.
[Sec. 5(d)(7)]House bill
Provides an earnings disregard for elementary/secondary students until the student's 20th birthday. [Sec. 1018]Senate amendment
Same provision, except that during fiscal year 2002 earnings will be disregarded until the student's 18th birthday. [Sec. 1117]Conference agreement
The conference agreement adopts the House provision with an amendment providing for the counting of earnings of elementary/secondary students once they reach age 18. [Sec. 807]
9. ENERGY ASSISTANCE
Present law
Payments or allowances for energy assistance provided by State or local law are, under rules set by the Secretary, disregarded as income. [Sec. 5(d)(11) and 5(k)]
Payments or allowances for energy assistance provided by State or local law are, under rules set by the Secretary, disregarded as income. [Sec. 5(d)(11) and 5(k)]
Federal Low-Income Home Energy Assistance Program (LIHEAP) benefits are disregarded as income. [Sec. 5(d)(11) and 5(k) of the Food Stamp Act and sec. 2605(f) of the Low-Income Home Energy Assistance Act]
Certain utility allowances/reimbursements under Department of Housing and Urban Development (HUD) programs are disregarded as income. [Sec. 5(d)(11) and 5(k)]
Shelter expense deductions may be claimed for utility costs covered by LIHEAP benefits, but not in the case of other disregarded energy assistance--unless the household has out-of-pocket expenses. [Sec. 5(e) of the Food Stamp Act and sec. 2605(f) of the Low-Income Home Energy Assistance Act]House bill
Requires that State/local energy assistance be counted as income. [Sec. 1019]
Requires an income disregard for one-time payments/allowances under a Federal or State law for the costs of weatherization or emergency repair/replacement of unsafe/inoperative furnaces or other heating/cooling devices. [Sec. 1019]
Requires that LIHEAP benefits be counted as income. [Sec. 1019]
Requires that HUD utility allowances/reimbursements be counted as income. [Sec. 1019]
Allows claiming shelter expense deductions for utility costs covered directly or indirectly by the LIHEAP or other counted energy assistance. [Sec. 1019]
[Note: Sec. 2131 amends sec. 2605(f) of the Low-Income Home Energy Assistance Act to delete that Act's requirement that LIHEAP recipients must be allowed to claim the amount of their LIHEAP benefits as a shelter expense.]Senate amendment
State/local assistance. Same provision (technical differences). [Sec. 1118]
Weatherization assistance. Same provision (technical differences). [Sec. 1118]
LIHEAP. Present law (technical differences). [Sec. 1118]
HUD assistance. Present law (technical differences). [Sec. 1118]
Shelter expense deductions. Present law (technical differences). [Sec. 1118]Conference agreement
The conference agreement adopts the Senate provisions with a technical amendment. [Sec. 808]
10. DEDUCTIONS FROM INCOME
Present law
Standard Deductions. All households are allowed standard deductions from their otherwise countable income. Standard deductions are indexed annually (each October) for inflation based on the Consumer Price Index for urban wage earners
(CPI-U) for items other than food and rounded down to the nearest dollar. For fiscal year 1995, standard deductions were: $134 a month for the 48 contiguous States and the District of Columbia, $229 for Alaska, $189 for Hawaii, $269 for Guam, and $118 for the Virgin Islands. For fiscal year 1996, they were ``scheduled'' to rise to: $138, $236, $195,
$277, and $122, respectively. This was barred by the fiscal year 1996 appropriations measure, and fiscal year 1996 standard deduction levels are at the fiscal year 1995 amounts. [Sec. 5(e)]
Earned Income Deduction. Households may claim a deduction for 20 percent of any earnings. This deduction is not allowed with respect to any income that a household willfully or fraudulently fails to report in a timely manner, as proven in a fraud hearing proceeding (i.e., it is not allowed when determining the amount of a benefit overissuance). [Sec. 5(e)]
Homeless Shelter Allowance. For homeless households not receiving free shelter throughout the month, States may develop a homeless shelter expense estimate (a standard allowance) to be used in calculating an excess shelter expense deduction. States must use this amount unless the household verifies higher expenses. The Secretary may prohibit the use of the allowance for households with extremely low shelter costs. The maximum allowance amount is inflation indexed annually and currently stands at $143 a month (fiscal year 1996). [Sec. 11(e)(3)]
Excess Shelter Expense Deduction. Households may claim excess shelter expense deductions from their otherwise countable income--in the amount of any shelter expenses
(including utility costs) above 50 percent of their countable income after all other deductions have been applied. For households with elderly or disabled members, these deductions are unlimited. For other households, they are limited to:
$247 a month in the 48 contiguous States and the District of Columbia, $429 in Alaska, $353 in Hawaii, $300 in Guam, and
$182 in the Virgin Islands. Effective January 1, 1997, these limits on excess shelter expense deductions for households without elderly or disabled members are lifted. [Sec. 5(e)]
States may develop and use ``standard utility allowances''
(as approved by the Secretary) in calculating households' shelter expenses. However, households may (1) claim actual expenses instead of the allowance and (2) switch between an actual expense claim and the standard allowance at the end of any certification period and 1 additional time during any 12-month period. [Sec. 5(e)]House bill
Standard Deductions. Indefinitely freezes standard deduction amounts at their present levels (e.g., $134 for the 48 contiguous States and the District of Columbia). [Sec. 1020]
Earned Income Deduction. Disallows an earned income deduction for any income not reported in a timely manner and for the public assistance portion of income earned under a work supplementation/support program. [Sec. 1020]
Homeless Shelter Allowance. Indefinitely freezes the maximum homeless shelter allowance at its present level
($143). States may use it in calculating an excess shelter expense deduction (without regard to actual costs) and may prohibit its use for households with extremely low shelter costs. [Sec. 1020]
Excess Shelter Expense Deduction. Indefinitely retains current limits on excess shelter expense deductions for households without elderly or disabled members (e.g., $247 for the 48 contiguous States and the District of Columbia).
[Sec. 1020]
Permits States to make use of standard utility allowances mandatory for all households if (1) the State has developed separate standards that do and do not include the cost of heating and cooling and (2) the Secretary finds that the standards will not result in increased Federal costs. [Sec. 1020]Senate amendment
Standard Deductions. Extends the present standard deduction levels (e.g., $134 for the 48 contiguous States) through November 1996. For December 1996 through September 2001, sets standard deduction at $120, $206, $170, $242, and $106. For October 2001 through August 2002, sets standard deductions at
$113, $193, $159, $227, and $100. For September 2002, sets standard deductions at $120, $206, $170, $242, and $106. Beginning with fiscal year 2003, standard deductions are indexed for inflation as under present law. [Sec. 1119]
Earned Income Deduction. Same provision. [Sec. 1119]
Homeless Shelter Allowance. Same provision. [Sec. 1119]
Excess Shelter Expense Deduction. Effective January 1, 1997, increases the current limits on excess shelter expense deductions to $342 in the 48 contiguous States and the District of Columbia, $594 in Alaska, $489 in Hawaii, $415 in Guam, and $252 in the Virgin Islands. No further increases are provided. [Sec. 1119]
Includes the same provision as in the House bill in regard to mandatory standard utility allowances. [Sec. 1119]Conference agreement
The conference agreement adopts the provisions that are common to both bills. With regard to the provisions in disagreement:
the conference agreement adopts the House provision as to standard deductions; and
the conference agreement adopts the Senate provision as to limits on the excess shelter expense deduction with an amendment (1) requiring that they continue at their present-law levels (e.g. $247 for the 48 contiguous States and the District of Columbia) through December 31, 1996, (2) for January 1, 1997, through fiscal year 1998, increasing the limits to $250 for the 48 States and the District of Columbia, $434 for Alaska, $357 for Hawaii, $304 for Guam, and $184 for the Virgin Islands, (3) for fiscal years 1999 and 2000, increasing the limits to $275, $478, $393, $334, and $203, and (4) for fiscal years 2001, 2002, and each subsequent fiscal year, increasing the limits to $300, $521,
$429, $364, and $221.
[Sec. 809]
11. VEHICLE ALLOWANCE
Present law
In determining a household's liquid assets for food stamp eligibility purposes, a vehicle's fair market value in excess of $4,600 is counted. This threshold is scheduled to rise to an estimated $5,150 on October 1, 1996, and be adjusted each October thereafter to reflect changes in the new car component of the CPI-U for the 12-month period ending the immediately preceding June (rounded to the nearest $50). Excluded from this rule are vehicles used to produce income, necessary for transportation of a disabled household member, or depended on to carry fuel or water. [Sec. 5(g)]House bill
Retains the threshold above which the fair market value of a vehicle is counted as a liquid asset at the current level--
$4,600. [Sec. 1021]Senate amendment
Effective October 1, 1996, sets the threshold above which the fair market value of a vehicle is counted as a liquid asset to $4,650. No further increases are provided. [Sec. 1120]Conference agreement
The conference agreement adopts the Senate provision. [Sec. 810]
12. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED AS INCOME
Present law
AFDC, or general assistance housing aid, provided to a third party on behalf of a food stamp household is considered paid directly to the household (and thus counted as household income) unless, among other exceptions, it is housing assistance paid on behalf of households residing in
``transitional housing for the homeless.'' [Sec. 5(k)]House bill
Removes the exception for vendor payments for transitional housing for the homeless. [Sec. 1022]Senate amendment
Same provision. [Sec. 1121]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 811]
13. SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-EMPLOYED
Present law
The cost of producing self-employment income is disregarded
(subtracted out) in calculating household income. [Sec. 5(d)]House bill
No provision.Senate amendment
Provides that the Secretary establish a procedure (designed not to increase Federal costs) by which States may use a reasonable estimate of the cost of producing self-employment income in lieu of calculating actual costs, not later than 1 year after enactment. The procedure must allow States to estimate costs for all types of self-employment income and may differ for different types of self-employment income.
[Sec. 1122]Conference agreement
The conference agreement adopts the Senate provision with an amendment providing that the Secretary establish a procedure by which States may submit a method for determining reasonable estimates of the cost of producing self-employment income designed not to increase Federal costs. [Sec. 812]
14. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM REQUIREMENTS
Present law
The disqualification period for the first intentional violation of program requirements is 6 months. The penalty for a second intentional violation
(and the first violation involving trading of a controlled substance) is 1 year. [Sec. 6(b)(1)]House bill
Increases the disqualification penalty for a first intentional violation to 1 year. Increases the penalty for a second intentional violation (and the first involving a controlled substance) to 2 years. [Sec. 1023]Senate amendment
Same provision. [Sec. 1123]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 813]
15. DISQUALIFICATION OF CONVICTED INDIVIDUALS
Present law
Permanent disqualification is required for the third intentional violation of program requirements, the second violation involving trading of a controlled substance, and the first violation involving trading of firearms, ammunition, or explosives. [Sec. 6(b)(1)]House bill
Adds a requirement for permanent disqualification of persons convicted of trafficking in food stamp benefits where the benefits have a value of $500 or more. [Sec. 1024]Senate amendment
Same provision. [Sec. 1124]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 814]
16. DISQUALIFICATION
Present law
Conditions of Participation. Non-exempt individuals between 16 and 60 are ineligible if they: (1) refuse to register for employment, (2) refuse without good cause (including lack of adequate child care) to participate in an employment or training program when required to do so by the State, or (3) refuse, without good cause, a job offer meeting minimum standards. In addition, if the individual is head of household and fails to comply with one of the above-noted conditions or voluntarily quits a job without good cause, the entire household is ineligible. [Sec. 6(d)(1)]
Duration of Ineligibility/Household Ineligibility. Disqualification periods for failure to meet work/training conditions of participation are (1) 2 months or until compliance (whichever is first) for most failures and (2) 90 days in the case of a voluntary quit. [Sec. 6(d)(1)]House bill
Conditions of Participation. Adds conditions making individuals ineligible if they (1) refuse without good cause to provide sufficient information to allow the State agency to determine their employment status or job availability or
(2) voluntarily and without good cause reduce work effort and
(after the reduction) are working less than 30 hours a week. Makes ineligibility for failure to comply with workfare requirements explicit and covered by new (see below) duration of ineligibility rules. Adds a condition making all individuals (in addition to heads of household) ineligible if they voluntarily quit a job without good cause. Lack of adequate child care, as an explicit good cause exemption for refusal to participate in an employment or training program, is removed. [Sec. 1025]
Duration of Ineligibility/Household Ineligibility. Establishes new mandatory minimum disqualification periods for individuals failing to comply with any work/training condition of participation. For the first violation, individuals are ineligible until they fulfill work/training conditions, for 1 month, or for a period (determined by the State) not to exceed 3 months--whichever is later. For the second violation, individuals are ineligible until they fulfill work/training conditions, for 3 months, or for a period (determined by the State) not to exceed 6 months--whichever is later. For a third or subsequent violation, individuals are ineligible until they fulfill work/training conditions, for 6 months, until a date set by the State agency, or (at State option) permanently. [Sec. 1025]
Establishes a new household ineligibility rule: if any individual who is head of household is disqualified under a work/training condition of participation, the entire household is, at State option, ineligible for a period not to exceed the lesser of the duration of the individual's ineligibility or 180 days. [Sec. 1025]
Administration. In establishing cases of good cause, voluntary quit, and reduction of work effort, the Secretary determines the meaning of the terms. States determine the meaning of other terms related to work/training conditions of participation and the procedures for making compliance decisions, but cannot make determinations that are less restrictive than a comparable one under the State's family assistance block grant (TANF) program. [Sec. 1025]Senate amendment
Conditions of Participation. Same provision. [Sec. 1125]
Duration of Ineligibility/Household Ineligibility. Same provision. [Sec. 1125]
Administration. Same provision. [Sec. 1125]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 815]
17. CARETAKER EXEMPTION
Present law
Parents or other household members with responsibility for the care of a dependent child under age 6 are exempt from food stamp work/training conditions of participation. [Sec. 6(d)(2)]House bill
Permits States to lower the age at which a child
``exempts'' a parent or caretaker from age 6 to not under the age of 1. [Sec. 1026]Senate amendment
No provision.Conference agreement
The conference agreement adopts the House provision with an amendment to permit a State to lower the age at which a child exempts a parent or caretaker from age 6 to not under age 1, if the State requested a waiver to lower the age of a dependent child that exempts the parent or caretaker and had the waiver denied by the Secretary as of August 1, 1996. The State may lower the age of the child for not more than 3 years. [Sec. 816 ]
18. EMPLOYMENT AND TRAINING
Present law
Programs. States must operate employment and training programs for nonexempt food stamp recipients and place a minimum proportion of those covered in a program component. Program components can range from job search or education activities to work experience/training and workfare assignments.
Work experience/training program components must limit assignments to projects serving a useful public purpose, use the prior training/experience of assignees, not provide work that has the effect of replacing others, and provide the same benefits and working conditions provided others.
States and political subdivisions also may operate workfare programs under which nonexempt recipients may be required to perform work in return for the minimum wage equivalent of their household's monthly food stamp allotment. Workfare assignments may not replace or prevent the employment of others and must provide the same benefits and working conditions provided others.
The total hours of work required of a household under an employment/training program (including workfare) cannot exceed the minimum wage equivalent of the household's monthly allotment. Monthly participation in an employment/training program required of any household member cannot exceed 120 hours (when added to other work). And workfare hours (when added to other work) cannot exceed 30 hours a week for a household member.
Under employment and training programs for food stamp recipients, States must provide or pay for transportation and other costs directly related to participation (up to $25 a month for each participant) and necessary dependent care expenses (in general, up to local market rates). Under workfare program, States must reimburse participants for transportation and other costs directly related to participation (up to $25 a month for each participant). [Sec. 6(d)(4) and sec. 20]
Funding. To support employment and training programs for food stamp recipients, States receive a formula share of required spending of $75 million a year. Each State's share is based on its share of nonexempt recipients and its share of those placed in employment/training program components.
[Sec. 16(h)]
In addition, States receive a 50 percent match for any additional administrative or participant support costs. [Sec. 16(h)]House bill
Programs. Revises the existing requirements for State-operated employment and training programs for food stamp recipients:
makes clear that work experience is a purpose of employment and training programs;
requires that each component of an employment/training program be delivered through a ``statewide workforce development system,'' unless the component is not available locally through the system;
expands the existing State option to apply work/training requirements to applicants to include all work/training requirements, not only job search;
removes specific Federal rules governing job search components (i.e., those tied to rules in the AFDC program);
removes provisions for employment/training components related to work experience requiring that they be in public service work and use recipients' prior training/experience;
removes specific Federal rules as to States' authority to exempt categories and individuals from employment/training requirements, giving States full latitude to determine exemptions;
removes a requirement to serve volunteers;
removes the requirement for ``conciliation procedures'' for resolving disputes involving participation in employment/training programs;
limits employment and training funding provided by the food stamp program for services to family assistance block grant
(TANF) recipients to the amount used by the State for AFDC recipients in fiscal year 1995; and
removes provisions for Federal performance standards on States. [Sec. 1027]
Funding. Provides for required Federal spending of increasing amounts for employment and training programs: $79 million in fiscal year 1997, $81 million in 1998, $84 million in 1999, $86 million in 2000, $88 million in 2001, and $90 million in 2002. State allocations are based on a
``reasonable formula''
(determined by the Secretary) that gives consideration to each State's population of persons subject to the new work requirement (see item 25). [Sec. 1027]
Provides that the 50 percent match for additional administrative costs can include costs for case management/casework to facilitate the transition from economic dependency to self-sufficiency through work. [Sec. 1027]
Deletes a requirement for a report from the Secretary on modifying Federal employment and training program payments to States to reflect their effectiveness in carrying out employment and training programs. [Sec. 1027]Senate amendment
Programs. Same provisions. [Sec. 1126]
Funding. Same provisions, except that required Federal spending is $85 million a year for fiscal years 1997-2002.
[Sec. 1126]Conference agreement
The conference agreement adopts the provisions that are common to both bills and adopts House provision with regard to Funding. [Sec. 817]
19. FOOD STAMP ELIGIBILITY
Present law
The income and resources of aliens ineligible under Food Stamp Act provisions are counted as available to the remainder of the household, less a pro rata share for the ineligible alien. [Sec. 6(f)]House bill
Permits States the option to count all of the income and resources of an alien ineligible under Food Stamp Act provisions as available to the remainder of the household.
[Sec. 1066]Senate amendment
Same provision, with technical differences. [Sec. 1127]Conference agreement
The conference agreement adopts the Senate provision. [Sec. 818]
20. comparable treatment for disqualification
Present law
Households penalized for an intentional failure to comply with a Federal, State, or local welfare program may not, for the duration of the penalty, receive an increased food stamp allotment because the welfare payment has been reduced. [Sec. 8(d)]
Persons are exempt from food stamp work/training conditions of participation if they are currently subject to and complying with AFDC or unemployment insurance work registration requirements. Failure to comply with an AFDC/unemployment insurance work registration requirement that
``is comparable to'' a food stamp work requirement results in disqualification as if the food stamp requirement had been violated. [Sec. 6(d)(2)]House bill
If an individual is disqualified for failure to perform an action required under a Federal, State, or local law relating to means-tested public assistance, the State agency is permitted to impose the same disqualification for food stamps.
If a disqualification is imposed under the family assistance block grant (TANF) rules, States are permitted to use the TANF rules and procedures to impose the same disqualification for food stamps.
Permits individuals disqualified from food stamps because of failure to perform a required action under another public assistance program to apply for food stamps as new applicants after the disqualification period has expired, except that a prior disqualification under food stamp program work/training rules must be considered in determining eligibility.
Requires States to include in their State plans the guidelines they use in carrying out food stamp disqualification for failure to perform another program's required action(s). [Sec. 1028]
Removes the requirement that an AFDC/unemployment insurance work requirement be ``comparable'' to a food stamp requirement to bring on disqualification from food stamps.
[Sec. 1028]Senate amendment
Same provisions. [Sec. 1128]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 819]
21. disqualification for receipt of multiple food stamp benefits
Present law
No comparable provision.House bill
Adds a provision making individuals ineligible for 10 years if they are found by a State agency (or Federal or State court) to have made a fraudulent statement with respect to identity or residence in order to receive multiple food stamp benefits simultaneously. [Sec. 1029]Senate amendment
Same provision. [Sec. 1129]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 820]
The conferees note that State agency hearing processes have sufficient recipient protections to warrant a decision to impose a 10-year disqualification in these cases.
22. disqualification of fleeing felons
Present law
No provision.House bill
Adds a provision making individuals ineligible while they are fleeing to avoid prosecution, custody, or confinement for a felony or attempted felony or violating a condition of probation or parole. [Sec. 1030]Senate amendment
Same provision. [Sec. 1130]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 821]
23. cooperation with child support agencies
Present law
Custodial Parents. No provisions.
Noncustodial Parents. No provisions.House bill
Custodial Parents. Permits States to disqualify custodial parents of children under the age of 18 who have an absent parent, unless the parent cooperates with the State child support agency in establishing the child's paternity and obtaining support for the child and the parent. Cooperation is not required if the State finds there is good cause (in accordance with Federal standards taking into account the child's best interest). Fees or other costs for services may not be charged. [Sec. 1031]
Noncustodial Parents. Permits States to disqualify putative or identified noncustodial parents of children under 18 if they refuse to cooperate with the State child support agency in establishing the child's paternity and providing support for the child. The Secretary and the Secretary of Health and Human Services must develop guidelines as to what constitutes a refusal to cooperate, and States must develop procedures
(using these guidelines) for determining whether there has been a refusal to cooperate. Fees or other costs for services may not be charged. States must provide privacy safeguards.
[Sec. 1031]Senate amendment
Custodial Parents. Same provisions. [Sec. 1131]
Noncustodial Parents. Same provisions. [Sec. 1131]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 822]
24. disqualification relating to child support arrears
Present law
No provisions.House bill
Allows States to disqualify individuals during any period in which the individual is delinquent in any court-ordered child support payment, unless the court is allowing a delay or the individual is complying with a payment plan approved by the court or a State child support agency. [Sec. 1032]Senate amendment
Same provision. [Sec. 1132]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 823]
25. work requirement
Present law
No comparable provisions.House bill
Requirement. After the date of enactment, no nonexempt individual may be eligible for food stamps for more than 3 months during which the individual does not (1) work at least 20 hours a week (averaged monthly), (2) participate in and comply with a ``work program'' for at least 20 hours a week
(as determined by the State agency), or (3) participate in a workfare program. A work program is defined as a program under the Job Training Partnership Act, a Trade Adjustment Assistance Act program, or a program of employment and training operated or supervised by a State or political subdivision that meets standards approved by the Governor
(including a Food Stamp Act employment and training program), other than job search or job search training. [Sec. 1033]
General Exemptions. The new work requirement does not apply to (1) those under 18 or over 50, (2) those who are medically certified as physically or mentally unfit for employment, (3) parents or other household members with the responsibility for a dependent child, (3) those otherwise exempt from work registration requirements (e.g., those caring for incapacitated persons), and (4) pregnant women. [Sec. 1033]
Other Provisions. On a State agency's request, the Secretary may waive application of the new work requirement to any group of individuals if the Secretary determines that the area where they reside (1) has an unemployment rate over 10 percent or (2) does not have a sufficient number of jobs to provide them employment. The Secretary must report the basis for any waiver to Congress. [Sec. 1033]Senate amendment
Requirement. No nonexempt individual may be eligible for food stamps if, during the preceding 12-month period, the individual received food stamp benefits for 4 months or more while not (1) working at least 20 hours a week (averaged monthly), (2) participating in and complying with a ``work program'' for at least 20 hours a week (as determined by the State agency), or (3) participating in and complying with a workfare program. A work program is defined as in the House bill, with a technical difference. [Sec. 1133]
General Exemptions. Same provisions. [Sec. 1133]
Other Provisions. Provisions for unemployment-rate and job-availability waivers are the same as in the House bill, except that the Secretary must respond to a State agency request within 15 days. [Sec. 1133]
The disqualification imposed under the new work requirement ceases to apply if, during a 30-day period, an individual works 80 hours or more, participates in and complies with a work program (defined above) for at least 80 hours, or participates in and complies with a workfare program. After regaining eligibility, the individual again is subject to the new work requirement, except that a new 12-month period begins. [Sec. 1133]
State agencies may exempt an individual from the new work requirement: (1) by reason of ``hardship'' or (2) for up to 2 months (in any 12-month period), if the individual participates in and complies with a job search or job search training program under the Food Stamp Act's employment and training program provisions that requires an average of at least 20 hours a week of participation. The fiscal year average monthly number of individuals participating because of a hardship exemption may not exceed 20 percent of the fiscal year average number of individuals receiving food stamps who are not exempt from the new work requirement because of the general exemptions or waivers (noted above).
[Sec. 1133]
Provides for a transition to the new work requirement. Prior to 1 year after enactment, administrators would not
``look back'' a full 12 months; they would look back only to the date of enactment. [Sec. 1133]Conference agreement
The conference agreement adopts the provisions that are common to both bills: General Exemptions and provisions for waivers in cases of high unemployment and lack of sufficient jobs. With respect to the provisions in disagreement, the conference agreement adopts the Senate provisions with an amendment:
No nonexempt individual may be eligible for food stamps if, during the preceding 36-month period, the individual received food stamp benefits for 3 months or more while not (1) working at least 20 hours a week (averaged monthly), (2) participating in and complying with a work program for at least 20 hours a week (as determined by the State agency), or
(3) participating in and complying with a workfare program. A work program is defined as in the House bill. Receipt of benefits while exempt (including participation under the additional 3-month eligibility provision described below) or covered by a waiver would not count toward an individual's basic 3-month eligibility period.
Individuals denied eligibility under the new work rule would regain eligibility if, during a 30-day period, the individual (1) works 80 or more hours, (2) participates in and complies with the requirements of a work program for 80 or more hours (as determined by the State agency), or (3) participates in and complies with the requirements of a workfare program. After having met this 30-day work/training requirement, the individual could remain eligible for a consecutive period of 3 months without working at least 20 hours a week or participating in an employment/training or workfare program. For example, if an individual works 20 hours a week for at least 30 days and then loses a job, the individual could retain food stamp eligibility for 3 consecutive months without working or being in a training/workfare program.
But individuals could not take advantage of this provision for an additional 3 months of eligibility, while not working or in an employment/training or workfare program, for more than a single 3-month period in a 36- month period. Individuals regaining eligibility also would remain eligible as long as they continued to meet requirements to work at least 20 hours a week or participate in a training/workfare program.
Transition provisions are included that provide that the 36-month period established by the new work requirement will not include any period before the earlier of the date the State notifies recipients (through means such as individual notices at certification, recertification, otherwise, mass mailings, media announcements, or otherwise) about the new work requirement or 3 months after enactment.
[Sec. 824]
26. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER SYSTEMS
Present law
Rules for EBT Systems. State agencies, with the Secretary's approval, may implement on-line electronic benefit transfer
(EBT) systems for delivering food stamp benefits. No State may implement or expand an EBT system without prior approval from the Secretary. States are responsible for 50 percent of EBT system costs. The Secretary's regulations for approval must include (1) standards that require that, in any 1 year, the operational cost of an EBT system does not exceed costs of prior issuance systems and (2) system security standards.
[Sec. 7(i)]
Regulation E. The Federal Reserve Board has ruled that, as of March 1997 (and with some minor modifications), its
``Regulation E'' will apply to EBT systems. Regulation E provides certain protections for consumers using cards to access their accounts. It limits the liability of cardholders for unauthorized withdrawals (to $50 if timely notification is made) and requires periodic account statements and certain error resolution procedures. [Federal Register of March 7, 1994]
Anti-tying Restrictions. No provision.House bill
Rules for EBT Systems. Provides that States must implement EBT systems (on-line or off-line) before October 1, 2002, unless the Secretary waives the requirement because a State agency faces unusual barriers to implementation. States are encouraged to implement an EBT system as soon as practicable.
[Sec. 1034]
Subject to Federal standards, permits State agencies to procure and implement an EBT system under the terms, conditions, and design the agency considers appropriate. Adds a new requirement for Federal procurement standards and deletes the requirement for the Secretary's prior approval.
[Sec. 1034]
Adds a requirement for EBT standards following generally accepted operating rules based on commercial technology, the need to permit interstate operation and law enforcement, and the need to permit monitoring and investigations by law enforcement officials. [Sec. 1034]
Adds requirements that the Secretary's standards include
(1) measures to maximize security and (2) effective not later than 2 years after enactment, measures to permit EBT systems to differentiate among food items. [Sec. 1034]
Deletes the requirement that EBT systems be cost neutral in any one year. [Sec. 1034]
Adds a requirement that regulations regarding the replacement of benefits and liability for replacement under an EBT system be similar to those in effect for a paper food stamp issuance system. [Sec. 1034]
Permits State agencies to collect a charge for replacing EBT cards by reducing allotments. [Sec. 1034]
Permits State agencies to require that EBT cards contain a photograph of one or more household members and requires that, if a State requires a photograph, it must establish procedures to ensure that other appropriate members of the household and authorized representatives may use the card.
[Sec. 1034]
Declares it the sense of Congress that States operate EBT systems that are compatible with other States' systems. [Sec. 1034]
Regulation E. Provides that Regulation E will not apply to any EBT system, established under, or administered by, State or local governments, distributing needs-tested benefits.
[Sec. 1091]
Anti-tying Restrictions. Provides that a company may not sell or provide EBT services, or fix or vary the consideration for such services, on the condition or requirement that the customer obtain, or not obtain, some additional point-of-sale service from the company or any affiliate. Requires the Secretary to consult with the Governors of the Federal Reserve before issuing regulations to carry out this provision. [Sec. 1034]Senate amendment
Rules for EBT Systems. Same provisions. [Sec. 1134]
Regulation E. Same provision. [Sec. 2809]
Also provides that Regulation E will not apply to food stamp benefits delivered through an EBT system. [Sec. 1134]
Anti-tying Restrictions. No provision.Conference agreement
The conference agreement adopts the provisions that are common to both bills, with a technical amendment, and adopts the Senate provision providing that Regulation E will not apply to food stamp benefits. The conferees intend that regulations issued by the Secretary regarding the replacement of benefits and liability for replacement of benefits under an EBT system will not require greater replacement of benefits or impose greater liability than those regulations in effect for a paper-based food stamp issuance system. [Sec. 825 and sec. 891]
The conference agreement also adopts the House provision applying anti-tying restrictions of the Bank Holding Company Act Amendments of 1970 to EBT services offered by nonbanks. The conferees intend that, in applying the anti-tying restrictions to nonbanks, the Secretary implement the anti-tying provision consistent with the anti-tying restrictions that apply to banks. [Sec. 825]
27. VALUE OF MINIMUM ALLOTMENT
Present law
The minimum monthly allotment for 1- and 2-person households is set at $10. It is indexed for inflation and rounded to the nearest $5. [Sec. 8(a)]House bill
Deletes the requirement for inflation indexing of the minimum allotment. [Sec. 1035]Senate amendment
Same provision. [Sec. 1135]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 826]
28. BENEFITS ON RECERTIFICATION
Present law
Recipient households not fulfilling eligibility recertification requirements in the last month of their certification period are allowed a 1-month ``grace period'' in which to fulfill the requirements before their benefits are pro-rated (reduced) to reflect the delay. [Sec. 8(c)]House bill
For those who do not complete all eligibility recertification requirements in the last month of their certification period, but are then determined to be eligible after their certification period has expired, requires that they receive reduced benefits in the first month of their new certification period (i.e., their benefits would be pro-rated to the date they met the requirements and were judged eligible). [Sec. 1036]Senate amendment
Same provision. [Sec. 1136]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 827]
29. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS
Present law
For households applying after the 15th of the month, States may provide an allotment that is the aggregate of the initial
(pro-rated) allotment and the first regular allotment. However, combined allotments must be provided to households applying after the 15th who are entitled to expedited service. [Sec. 8(c)]House bill
Makes provision of combined allotments a State option both for regular and expedited service applicants. [Sec. 1037]Senate amendment
Same provision. [Sec. 1137]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 828]
30. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC ASSISTANCE
PROGRAMS
Present law
Households penalized for intentional failure to comply with a Federal, State, or local welfare program may not, for the duration of the penalty, receive an increased food stamp allotment because their welfare income has been reduced.
[Sec. 8(d)]House bill
Bars increased food stamp allotments when the benefits of a household are reduced under a Federal, State, or local means-tested public assistance program for failure to perform a required action. Permits States also to reduce a household's food stamp allotment by up to 25 percent. If the allotment is reduced for failure to perform an action under a family assistance block grant (TANF) program, the State may use the rules and procedures of that program to reduce the food stamp allotment. [Sec. 1038]Senate amendment
Same provision. [Sec. 1138]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 829]
31. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS
Present law
Residential substance abuse centers may be designated as recipients' authorized representatives, and benefits generally are provided to the center.House bill
Permits State agencies to divide a month's food stamp benefits between the center and an individual who leaves the center and permits States to require center residents to designate centers as authorized representatives. [Sec. 1039]Senate amendment
Same provisions. [Sec. 1139]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 830]
32. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD STORES AND
WHOLESALE FOOD CONCERNS
Present law
No provisions.House bill
Provides that no food concerns (of a type determined by the Secretary based on factors including size, location, and types of items sold) be approved for participation unless visited by an Agriculture Department employee (or, whenever possible, a State or local government official designated by the Secretary). [Sec. 1040]Senate amendment
Same provision. [Sec. 1140]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 831]
33. authority to establish authorization periods
Present law
No provisions.House bill
Requires the Secretary to establish specific time periods during which retail food stores' and wholesale food concerns' authorization to accept and redeem food stamp benefits will be valid. [Sec. 1041]Senate amendment
Same provision. [Sec. 1141]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 832]
34. information for verifying eligibility for authorization
Present law
No provisions.House bill
Permits the Secretary to require that retailers and wholesalers seeking approval to accept and redeem food stamp benefits submit relevant income and sales tax filing documents. Permits regulations requiring retailers and wholesalers to provide written authorization for the Secretary to verify all relevant tax filings and to obtain corroborating documentation from other sources in order to verify the accuracy of information provided by the retailer/wholesaler. [Sec. 1042]Senate amendment
Same provision. [Sec. 1142]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 833]
35. waiting period for stores that fail to meet authorization criteria
Present law
No provisions.House bill
Provides that retailers and wholesalers that have failed to be approved for participation may not submit a new application to participate for at least 6 months. The Secretary may establish a longer period (including permanent disqualification) that reflects the severity of the basis of the denial. [Sec. 1043]Senate amendment
Same provision. [Sec. 1143]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 834]
36. operation of food stamp offices
Present law
State Plans. States must:
allow households contacting a food stamp office in person during office hours to make an oral/written request for aid and receive and file an application on the same day;
use a simplified, uniform, federally designed application, unless a waiver is approved;
include certain, specific information in applications;
waive in-person interviews under certain circumstances and use telephone interviews or home visits instead;
provide for telephone contact and mail application by households with transportation or similar difficulties;
require an adult representative of the household to certify as to household members' citizenship/alien status;
assist households in obtaining verification and completing applications;
not require additional verification of currently verified information (unless there is reason to believe that the information is inaccurate, incomplete, or inconsistent);
not deny an application solely because a nonhousehold member fails to cooperate;
process applications if the household meets cooperation requirements; provide households with a statement of reporting responsibilities at certification and recertification;
provide a toll-free or local telephone number at which households can reach State agency personnel;
display and make available nutrition information; and
use mail issuance in rural areas where low-income households face substantial difficulties in obtaining transportation. [Sec. 11(e) (2), (14), & (25)]
Application and Denial Procedures. A single interview for determining AFDC and food stamp benefits is required. Food stamp applications generally are required to be contained in public assistance applications, and applications and information about how to apply for food stamps must be provided local assistance applicants. Applicants (including those who have recently lost or been denied public assistance) must be certified eligible for food stamps based on their public assistance casefile (to the extent it is reasonably verified). No household may be terminated from or denied food stamps solely on the basis of termination/denial of other public assistance without a separate food stamp determination. [Sec. 11(i)]House bill
State Plans. Replaces noted existing State plan requirements with requirements that the State:
establish procedures governing the operation of food stamp offices that it determines best serve households in the State, including those with special needs (such as households with elderly or disabled members, those in rural areas, the homeless, households residing on reservations, and households speaking a language other than English);
provide timely, accurate, and fair service to applicants and participants;
permit applicants to apply and participate on the same day they first contact a food stamp office during office hours; consider an application filed on the date the applicant submits an application with the applicant's name, address, and signature;
require that an adult representative certify as to the truth of the information on the application and citizenship/alien status; and
have a method for certifying homeless households. [Sec. 1044]
Permits States to establish operating procedures that vary for local food stamp offices. [Sec. 1044]
Stipulates that the signature of a single adult will be sufficient to comply with any provision of Federal law requiring applicant signatures. [Sec. 1044]
Makes clear that nothing in the Food Stamp Act prohibits electronic storage of application and other information.
[Sec. 1044]
Application and Denial Procedures. Deletes noted existing requirements for single interviews, applications, and food stamp determinations based on public assistance information. Permits disqualification for food stamps based on another public assistance program's disqualification for failure to comply with its rules or regulations. [Sec. 1044]Senate amendment
State Plans. Same provisions. [Sec. 1144]
Application and Denial Procedures. Same provisions. [Sec. 1144]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 835]
37. STATE EMPLOYEE AND TRAINING STANDARDS
Present law
States must employ agency personnel responsible for food stamp certifications in accordance with current Federal
``merit system'' standards. States must provide continuing, comprehensive training for all certification personnel. States may undertake intensive training of personnel to ensure they are qualified for certifying farm households. States may provide or contract for the provision of training and assistance to persons working with volunteer or nonprofit organizations that provide outreach and eligibility screening. [Sec. 11(e)(6)]House bill
Deletes training provisions. [Sec. 1045]Senate amendment
Same provision. [Sec. 1145]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 836]
38. EXCHANGE OF LAW ENFORCEMENT INFORMATION
Present law
No provisions.House bill
Requires State food stamp agencies to make available to law enforcement officers the address, social security number, and a photograph (when available) of a food stamp recipient if the officer furnishes the recipient's name and notifies the agency that the individual is fleeing to avoid prosecution, custody, or confinement for a felony, is violating a condition of parole or probation, or has information necessary for the officer to conduct an official duty related to a felony/parole violation. [Sec. 1046]Senate amendment
Same provision. [Sec. 1146]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 837]
39. EXPEDITED COUPON SERVICE
Present law
States must provide expedited benefits to applicant households that (1) have gross income under $150 a month (or are ``destitute'' migrant or seasonal farmworker households) and have liquid resources of no more than $100, (2) are homeless, or (3) have combined gross income and liquid resources less than the household's monthly shelter expenses. Expedited service means providing an allotment no later than 5 days after application. [Sec. 11(e)(9)]House bill
Deletes noted requirements to provide expedited service to the homeless and those with shelter expenses in excess of their income/resources. Lengthens the period in which expedited benefits must be provided to 7 days. [Sec. 1047]Senate amendment
No provision.Conference agreement
The conference agreement adopts the House provisions with an amendment to retain the requirement for expedited service to those with income and liquid resources less than their monthly shelter expenses. [Sec. 838]
40. WITHDRAWING FAIR HEARING REQUESTS
Present law
No provisions.House bill
At State option, permits households to withdraw fair hearing requests orally or in writing. If it is an oral request, the State must provide written notice confirming the request and providing the household with another chance to request a fair hearing. [Sec. 1048]Senate amendment
Same provision. [Sec. 1147]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 839]
41. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICATION SYSTEMS
Present law
States must use the ``income and eligibility verification systems'' established under section 1137 of the Social Security Act to assist in verifying household circumstances; this includes a system for verifying financial circumstances
(IEVS) and a system for verifying alien status (SAVE). [Sec. 11(e)(19)]House bill
Makes use of IEVS and SAVE optional with the States. [Sec. 1049]Senate amendment
Same provision. [Sec. 1148]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 840]
42. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY SUBMIT FALSIFIED
APPLICATIONS
Present law
No provisions.House bill
Retailers/wholesalers who knowingly submit an application to accept and redeem food stamp benefits that contains false information about a substantive matter must be disqualified for a reasonable period of time to be determined by the Secretary (including permanent disqualification). [Sec. 1050]Senate amendment
Same provision. [Sec. 1149]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 842]
43. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE WIC
PROGRAM
Present law
No provisions.House bill
Requires the Secretary to issue regulations providing criteria for disqualifying from food stamp program participation retailers/wholesalers disqualified from the WIC program. Disqualification must be for the same length of time, may begin at a later date, and is not subject to separate food stamp administrative/judicial review provisions. [Sec. 1051]Senate amendment
Same provisions. [Sec. 1150]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 843]
44. COLLECTION OF OVERISSUANCES
Present law
In the case of overissuances due to an intentional program violation, households must agree to repayment by either a reduction in future benefits or cash repayment; States also are required to collect overissuances to these households through other means such as tax refund or unemployment compensation collections if other repayment is not forthcoming (unless they demonstrate that the other means are not cost effective). In cases of overissuance because of inadvertent household error, States must collect the overissuance through a reduction in future benefits, except that households must be given 10 days notice to elect another means and collections are limited to 10 percent of the monthly allotment or $10 a month (whichever would result in faster collection). Otherwise uncollected overissued benefits, except those arising from State agency error, may be recovered from Federal pay or pensions. [Sec. 13(b) & (d) and sec. 11(e)(8)]
States may retain 25 percent of ``nonfraud'' collections not arising from State agency error and 50 percent of
``fraud'' collections (increased from 10 percent and 25 percent on October 1, 1995). [Sec. 16(a)]House bill
Replaces existing overissuance collection rules with provisions requiring States to collect any overissuance by reducing future benefits, withholding unemployment compensation, recovering from Federal pay or income tax refunds, or any other means--unless the State demonstrates that all of the means are not cost effective. Limits benefit reductions (absent intentional program violation) to the greater of 10 percent of the monthly allotment or $10 a month. Provides that States must collect overissued benefits in accordance with State-established requirements for notice, electing a means of payment, and setting a schedule for payment. [Sec. 1052]
Permits States to retain 25 percent of all collections other than those arising from State agency error. [Sec. 1052]Senate amendment
Same provision, except permits States to retain 20 percent of nonfraud collections other than those arising from State agency error and 35 percent of fraud collections. [Sec. 1151]Conference agreement
The conference agreement adopts the Senate provisions.
[Sec. 844]
45. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM REQUIREMENTS PENDING
ADMINISTRATIVE AND JUDICIAL REVIEW
Present law
No provisions. House bill
Requires that any permanent disqualification of a retailer/wholesaler be effective from the date of receipt of the notice of disqualification. If the disqualification is reversed through administrative or judicial review, the Secretary is not liable for lost sales. [Sec. 1053]Senate amendment
Same provision. [Sec. 1152]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 845]
46. EXPANDED CRIMINAL FORFEITURE FOR CRIMINAL VIOLATIONS
Present law
``Administrative forfeiture'' rules allow the Secretary to subject property involved in a program violation to forfeiture to the United States. [Sec. 15(g)]House bill
Establishes ``criminal forfeiture'' rules. Requires courts, in imposing sentence on those convicted of trafficking in food stamps, to order that the person forfeit property to the United States. Property subject to forfeiture would include all property (real and personal) used in a transaction (or attempted transaction) to commit (or facilitate the commission of) a trafficking violation (other than a misdemeanor); proceeds traceable to the violation also would be subject to forfeiture. An owner's property interest would not be subject to forfeiture if the owner establishes that the violation was committed without the owner's knowledge or consent.
Requires that the proceeds from any sale of forfeited property, and any money forfeited, be used to reimburse Federal and State agencies for costs and, by the Secretary, to carry out store monitoring activities. [Sec. 1054]Senate amendment
Same provisions. [Sec. 1153]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 846]
47. LIMITATION OF FEDERAL MATCH
Present law
If a State opts to conduct informational (``outreach'') activities for the food stamp program, the Federal government shares half the cost. [Sec. 11(e)(1) and sec. 16(a)]House bill
Terminates the Federal share for any ``recruitment activities.'' [Sec. 1055]Senate amendment
Same provision. [Sec. 1154]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 847]
48. STANDARDS FOR ADMINISTRATION
Present law
The Secretary is required to (1) establish standards for efficient and effective administration of the program, including standards for review of food stamp office hours to ensure that employed individuals are adequately served and
(2) instruct States to submit reports on administrative actions taken to meet the standards. [Sec. 16(b)]House bill
Deletes the noted requirements relating to Federal standards for efficient and effective administration. [Sec. 1056]Senate amendment
Same provision. [Sec. 1155]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 848]
49. WORK SUPPLEMENTATION OR SUPPORT PROGRAM
Present law
No provisions.House bill
Establishes a new option for States to operate work supplementation or support programs under which the value of public assistance benefits are provided to employers who hire recipients and, in turn, use the benefits to supplement the wages paid the recipient. Work supplementation/support programs would have to adhere to standards set by the Secretary, be available for new employees only, and not displace employment of those who are not supplemented/supported. The food stamp benefit value of the supplement could not be considered income for other purposes. Opting States would be required to provide a description of how recipients in their program will, within a specific period of time, be moved to unsubsidized employment. [Sec. 1057]Senate amendment
Same provision. [Sec. 1156]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 849]
50. WAIVER AUTHORITY
Present law
The Secretary may waive Food Stamp Act requirements to the degree necessary to conduct pilot/demonstration projects, but, in general, no project may be implemented that would lower or further restrict food stamp income/resource eligibility standards or benefit levels. [Sec. 17(b)(1)]House bill
Permits the Secretary to conduct pilot and demonstration projects and waive Food Stamp Act requirements as long as the project is consistent with the food stamp program goal of providing food to increase the level of nutrition among low-income individuals. The Secretary is permitted to conduct projects that will improve the administration of the program, increase self-sufficiency of food stamp participants, test innovative welfare reform strategies, or allow greater conformity among public assistance programs than is otherwise allowed under the Food Stamp Act. The Secretary is not permitted to conduct projects that involve issuing benefits in cash (beyond those approved at enactment), substantially transfer program benefits to other public assistance programs, or are not limited to specific time periods. [Sec. 1058]Senate amendment
No provision.Conference agreement
The conference agreement adopts the House provision with an amendment. The Secretary is permitted to conduct pilot and demonstration projects and waive Food Stamp Act requirements to the extent necessary, with certain limitations and conditions. Projects must be consistent with the food stamp program goal of providing food assistance to raise levels of nutrition among low-income individuals and must include an evaluation.
Permissible projects are those that will improve the administration of the program, increase self-sufficiency of food stamp participants, test innovative welfare reform strategies, or allow greater conformity with the rules of other programs than is otherwise allowed under the Food Stamp Act. However, if the Secretary finds that a project would require the reduction of benefits by more than 20 percent, for more than 5 percent of households subject to the project
(not including those whose benefits are reduced because of a failure to comply with work or other conduct requirements), the project (1) cannot include more than 15 percent of the State's food stamp population and (2) is limited to 5 years
(unless an extension is approved).
The Secretary may not conduct a project that (1) involves the payment of food stamp allotments in cash (unless the project was approved prior to enactment), (2) has the effect of substantially transferring food stamp funds to services or benefits provided through another public assistance program,
(3) has the effect of using food stamp funds for any purpose other than the purchase of food, program administration, or an employment or training program, (4) has the effect of granting or increasing shelter expense deductions to households with either no out-of-pocket shelter expenses or shelter expenses that represent a low percentage of their income, (5) has the effect of absolving the State from acting with reasonable promptness on substantial reported changes in income or household size (other than those related to deductions), (6) is not limited to a specific time period, or
(7) waives a simplified food stamp program provision in carrying out a simplified program.
The Secretary also may not conduct a project that is inconsistent with certain Food Stamp Act requirements: (1) the bar against providing benefits to those in institutions
(with certain exceptions), (2) the requirement to provide assistance to all those eligible, so long as they have not failed to comply with any food stamp or other program's work, behavioral, or other conduct requirements, (3) the gross income eligibility limit (130 percent of the Federal poverty guidelines) for households without elderly or disabled members, (4) the rule that no parent or caretaker of a dependent child under age 6 will be subject to work/training requirements [see item 17], (5) the rule that total hours of work required in an employment/training or workfare program be limited to the household's allotment divided by the minimum wage, (6) the limit on the amount of employment and training funding under the Food Stamp Act that can be used for TANF recipients, (7) the requirement that the value of food stamp benefits not be considered income or resources for any other purpose, (8) application and application processing requirements (including the rule that benefits must be provided within 30 days, but not including expedited service requirements), (9) Federal-State cost-sharing rules
(including those for computerization, employment and training programs, and workfare), (10) ``quality control'' requirements, and (11) the waiver limits set in law.
[Sec. 850]
51. RESPONSE TO WAIVERS
Present law
No provisions.House bill
Requires that, not later than 60 days after receiving a demonstration project waiver request, the Secretary must (1) approve the request, (2) deny it and explain any modifications needed for approval, (3) deny it and explain the grounds for denial, or (4) ask for clarification of the request. If a response is not forthcoming in 60 days, the waiver is considered approved. If a waiver is denied, the Secretary must provide a copy of the request and the grounds for denial to Congress. [Sec. 1059] Senate amendment
Same provision. [Sec. 1157]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 851]
52. employment initiatives program
Present law
No provisions.House bill
Provides a new option for a limited number of States (those with not less than half of their food stamp households receiving AFDC benefits in 1993) to issue food stamps in cash to households participating in both the State's family assistance block grant (TANF) program and food stamps, if a member of the household has been working for at least 3 months and earns at least $350 a month in unsubsidized employment. Households receiving cash payments may continue to receive them after leaving a TANF program because of increased earnings, and a household eligible to receive its allotment in cash may opt for food stamps instead. States opting for these cash payments must increase food stamp benefits (and pay for the increase) to compensate for State/local sales taxes on food purchases and must provide a written evaluation. [Sec. 1060]Senate amendment
Same provisions. [Sec. 1158]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 852]
53. reauthorization
Present law
Food Stamp Act appropriations are authorized through fiscal year 1997. [Sec. 18(a)]House bill
Extends the Food Stamp Act authorization of appropriations through fiscal year 2002. [Sec. 1061]Senate amendment
Same provision. [Sec. 1159]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 853]
54. simplified food stamp program
Present law
No provision.House bill
Permits States to determine food stamp benefits for households receiving family assistance block grant (TANF) aid using TANF rules and procedures, food stamp rules/procedures, or a combination of both. States may operate a simplified program statewide or in regions of the State and may standardize deductions. However, States must comply with the following food stamp rules:
requirements governing issuance procedures;
the requirement that benefits be calculated by subtracting 30 percent of household income (as determined by State-established, not Federal, rules under the simplified program option) from the maximum food stamp benefit;
the bar against counting food stamp benefits as income or resources in other programs;
requirements that State agencies assume responsibility for eligibility certification and issuance of benefits and keep records for inspection and audit;
the bar against discrimination by reason of race, sex, religious creed, national origin, or politics;
requirements related to submission and approval of plans of operation and administration of the food stamp program on Indian reservations;
limits on the use and disclosure of information about food stamp households;
requirements for notice to and fair hearings for aggrieved households (or comparable requirements established by the State);
requirements for submission of reports and other information required by the Secretary;
the requirement to report illegal aliens to the INS;
provisions for the use of certain Federal and State data sources in verifying eligibility;
requirements to ensure that households are not receiving duplicate benefits; and
requirements for the provision of social security numbers as a condition of eligibility and for their use by State agencies.
Households may not receive benefits under a simplified program unless the Secretary determines that any household with income above 130 percent of the Federal poverty guidelines is ineligible for the program.
The Secretary must determine whether a simplified program is increasing Federal costs above costs incurred in operations for the fiscal year prior to implementation, adjusted for changes in participation, the income of participants not attributable to public assistance, and the cost of the thrifty food plan. The determination is made for each fiscal year, not later than 90 days after the end of the year.
If the Secretary determines that there has been a cost increase, the State must be notified within 30 days. If a State does not then submit or carry out a ``corrective action'' plan approved by the Secretary to prevent increased Federal costs, approval of the State's simplified program is terminated, and the State is ineligible for further operation of a simplified program.
States opting for a simplified program must include in their State plans the rules and procedures to be followed, how they will address the needs of households with high shelter costs, and a description of the method by which they will carry out their quality control obligations. [Sec. 1062]Senate amendment
Same provisions, except that the Senate amendment (1) stipulates that only households in which ``all members'' receive TANF benefits may receive benefits under a simplified program and (2) requires that States opting for a simplified program follow food stamp rules regarding providing benefits within 30 days of application. Also provides that (1) the Secretary will determine whether a simplified program is increasing Federal costs, (2) States will not be required to collect information on households not in the simplified program in cost increase determinations, and (3) the Secretary may approve ``alternative accounting periods'' in making cost determinations. [Sec. 1160]Conference agreement
The conference agreement adopts the House provision with an amendment providing that: (1) only households in which all members receive TANF benefits may receive benefits under a simplified program, (2) the Secretary will determine whether a simplified program is increasing Federal costs, (3) States will not be required to collect information on households not in the simplified program in cost increase determinations, and (4) the Secretary may approve alternative accounting periods in making cost determinations. In addition, the conference agreement adopts an amendment that provides that a simplified program may include households in which 1 or more members are not TANF recipients, if approved by the Secretary. The conferees encourage the Secretary to work with States to test methods for applying a single set of rules and procedures to households in which some, but not all, members receive cash welfare benefits under State rules. [Sec. 854]
55. state food assistance block grant
Present law
No provision.House bill
Establishes an optional food assistance block grant. States that meet one of three conditions may elect to receive the block grant in lieu of participating in the regular food stamp program. The conditions are: (1) a statewide EBT system, (2) a payment error rate of 6 percent or less, or (3) if there is a payment error rate of higher than 6 percent, payment to the Federal government of the benefit cost of the difference. States electing a block grant would receive the greater of: (1) the amount received for benefits in fiscal year 1994 (or the 1992-1994 average) plus (2) the amount received for administration in fiscal year 1994 (or the 1992-1994 average). States electing a block grant and then terminating their option may not again elect a block grant.
Block grant funding may only be used for food assistance to needy persons and administrative costs for providing the assistance--so long as not more than 6 percent of total funds expended (other than State funds not otherwise required to be spent) are used for administrative costs and limits on carryover funds are followed. While States have control over most features of their block grant program, certain rules specified in law must be followed: provisions for notice and hearing for those aggrieved; bars against receipt of benefits in more than 1 jurisdiction, benefits for fleeing felons, and benefit for aliens otherwise barred under Federal law; privacy and nondiscrimination safeguards; and quality control requirements of the Food Stamp Act. In addition, States opting for a block grant would continue to be covered under the Food Stamp Act's employment and training program provisions (and receive separate funding for this) and would be required to bar benefits to those not meeting food stamp work requirements (including the new requirement). [Sec. 1063]Senate amendment
No provision.Conference agreement
The conference agreement adopts the Senate provision.
56. a study of the use of food stamps to purchase vitamins and minerals
Present law
No provision.House bill
Requires the Secretary, in consultation with the National Academy of Sciences and the Centers for Disease Control and Prevention, to conduct a study of the use of food stamps to purchase vitamins and minerals and report to the House Committee on Agriculture not later than December 15, 1996.
[Sec. 1064]Senate amendment
No provision.Conference agreement
The conference agreement adopts the House provision with an amendment requiring a report to both the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture not later than December 15, 1998. [Sec. 855]
57. investigations
Present law
No provision. House bill
Requires that regulations provide criteria for the finding of violations (and suspension/disqualification) of retailers and wholesalers on the basis of evidence which may include facts established through on-site investigations, inconsistent redemption data, or evidence obtained through EBT transaction reports. [Sec. 1065]Senate amendment
No provision.Conference agreement
The conference agreement adopts the House provision. [Sec. 841]
58. REPORT BY THE SECRETARY
Present law
No provision.House bill
Permits the Secretary to report to the House Committee on Agriculture (not later than January 1, 2000) on the effect of the food stamp reforms in this act and the ability of State and local governments to deal with people in poverty. [Sec. 1067]Senate amendment
No provision.Conference agreement
The conference agreement adopts the Senate provision.
59. DEFICIT REDUCTION
Present law
No provision.House bill
Declares it the sense of the House Committee on Agriculture that outlay reductions resulting from the food stamp title not be taken into account under section 552 of the Balanced Budget and Emergency Deficit Control Act. [Sec. 1068]Senate amendment
No provision.Conference agreement
The conference agreement adopts the House provision with a technical amendment. [Sec. 856]
Subtitle B--Commodity Distribution Programs
1. SHORT TITLE
Present law
The Emergency Food Assistance Act (EFAA), The Hunger Prevention Act of 1988, The Charitable Assistance and Food Bank Act of 1987, the Food, Agriculture, Conservation, and Trade (FACT) Act of 1990.House bill
Amends the EFAA and Section 110 of the Hunger Prevention Act of 1988 to combine the Emergency Food Assistance Program
(TEFAP) and the soup kitchen/food bank program and create a new TEFAP; repeals the expired food bank demonstration project under the Charitable Assistance and Food Bank Act of 1987; and repeals a requirement for a previously completed report on entitlement commodity processing under the FACT Act of 1990. [Sec. 1071, 1072, 1073, & 1074]Senate amendment
Same provisions. [Sec. 1171, 1172, 1173, & 1174]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 871-874]
2. ELIGIBLE RECIPIENT AGENCIES
Present law
Defines ``eligible recipient agencies'' and ``emergency feeding organizations''. [Sec. 201A]
Defines ``Additional commodities'', ``average monthly number of unemployed persons'', ``poverty line'', ``Total value of additional commodities'', Value of additional commodities.'' [Sec. 214 of EFAA]House bill
Incorporates into one section current law and regulatory definitions of terms used in TEFAP and section 110 of the Hunger Prevention Act. Definitions include ``eligible recipient agencies'', as well as ``emergency feeding organization,'' ``additional commodities'', ``average monthly number of unemployed persons'', ``food bank'', ``food pantry'', ``poverty line'', ``soup kitchen'', ``total value of additional commodities'', and ``value of additional commodities allocated to each State.'' [Sec. 1071]Senate amendment
Same provisions. [Sec. 1171]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 871]
3. AVAILABILITY OF CCC COMMODITIES
Present law
Outlines conditions under which the Secretary is to donate CCC commodities or other agricultural commodities, the varieties of commodities to be made available; requires semi-annual report on types of commodities made available; prohibits declines in dairy product donations, and requires that emergency feeding organizations have the same access to excess CCC commodities as other domestic food programs.House bill
Maintains current law provisions. [Sec. 1071]
Senate Amendment
Same provisions. [Sec. 1171]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 871]
4. AVAILABILITY OF CCC FLOUR, CORNMEAL, AND CHEESE
Present law
Provides for additional distribution in FY1988 of flour, cheese, and cornmeal when excess amounts are available from CCC holdings.House bill
Strikes obsolete provision and moves definitions to a new section of the Act (see item 2 above). Replaces Sec.202A with new provisions governing State plans (See item 5 below).
[Sec. 1071]Senate amendment
Same provisions. [Sec. 1171]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 871]
5. STATE PLAN
Present law
Requires Secretary to expedite distribution of commodities to agencies designated by the Governor, or directly distribute commodities to eligible recipient agencies engaged in national commodity processing; allows States to give priority for donations to existing food bank networks serving low-income households. Requires States to expeditiously distribute commodities to eligible recipient agencies, and to encourage distribution to rural areas. Also requires Secretary to distribute commodities only to agencies that serve needy persons and set their own need criteria, with the approval of the Secretary. [Sec.203B (a) and (c) of EFAA]House bill
Requires States seeking commodities under the new EFA program to submit a plan of operation and administration every 4 years for approval by the Secretary and allows amendment of the plan at any time.
Requires that at a minimum the State receiving commodities include in its plan: designation of responsible State agency; plan of operation and administration to expeditiously distribute commodities; standards of eligibility for recipient agencies; individual and household eligibility standards that require that they be needy and residing in the geographic area served by the recipient agency. [Sec. 1071]Senate amendment
Same provisions. [Sec. 1171]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 871]
6. ADVISORY BOARD
Present law
No provision.House bill
Requires Secretary to encourage States to establish advisory boards consisting of representatives of all interested entities, public and private, in the distribution of commodities. [Sec. 1071]Senate amendment
Same provision. [Sec. 1171]Conference agreement
The conference agreement adopts the provision that is common to both bills. [Sec. 871]
7. Authorization of Appropriations For Administrative Funds
Present law
Authorizes $50 million annually for fiscal year 1991-2002 for Secretary to make available to States for State and local costs associated with the distribution of commodities. Requires that funds be distributed on an advance basis in the same proportion as commodities are distributed. Allows for reallocation of unused funds among other States. Specifically allows States to use funds to help with distribution of commodities provided to soup kitchens and food banks under section 110 of the Hunger Prevention Act.House bill
Revises language regarding availability of funds to States for State and local costs to require that such funds be used
``to pay for the direct and indirect administrative costs of the State related to processing, transporting, and distributing [commodities] to eligible recipient agencies.'' Drops separate reference to soup kitchen and food banks because this program is incorporated into the new TEFAP.
[Sec. 1071]Senate amendment
Same provisions. [Sec. 1171]Conference agreement
The conference agreement adopts the provisions that are common to both bills. [Sec. 871 ]
8. REQUIRED PURCHASES OF COMMODITIES
Present law
Authorizes $175 million for fiscal year 1991, $190 million for FY 1992, and $200 million for each of fiscal years 1993 through 2002 for the Secretary to purchase, process and distribute additional commodities to the extent that appropriations are provided. Establishes a formula for distribution of commodities to States whereby 60 percent of commodities are allocated based on a State's share of persons in households with incomes below the poverty level and 40 percent upon a State's share of unemployed persons, and defines related terms. House bill
Strikes provisions authorizing funds for commodity purchases. Instead, amends the Food Stamp Act to add a new section 28 requiring the Secretary to spend $300 million annually for each of fiscal years 1997 through 2002 from funds appropriated under the Food Stamp Act to buy commodities for the new TEFAP; requires the Secretary to take into account agricultural market conditions, and State, agency, and recipient preferences when buying commodities with these funds. Specifies that these commodities be distributed under the current-law allocation formula. [Sec. 1071]Senate amendment
Similar to House bill, except that $100 million is required to be used from food stamp funds annually to buy commodities for the new TEFAP. [Sec. ]Conference agreement
The conference agreement adopts the Senate provision with a technical amendment. [Sec. 871]
Subtitle C--Electronic Benefit Transfer System
See Item 26 of Subtitle A--Food Stamp Program for a description of the conference agreement on this subtitle.
Title IX: Miscellaneous
1. Appropriation by State Legislatures
Present law
According to the National Conference of State Legislatures, there are six States in which under court rulings of interpretations of State constitutions, certain Federal funds are controlled by the Executive branch rather than the State legislature. (An example would be action on funds when the legislature is out of session.) These States are Arizona, Colorado, Connecticut, Delaware, New Mexico, and Oklahoma.House bill
The proposal stipulates that funds from certain Federal block grants to the States are to be expended in accordance with the laws and procedures applicable to the expenditure of the State's own resources (i.e., appropriated through the State legislature in all States). This provision applies to the following block grants: temporary assistance to needy families block grant, the optional State food assistance block grant, and the child care block grant. Thus, in the States in which the Governor previously had exclusive control over Federal block grant funds, the State legislatures now would share control through the appropriations process. However, States would continue to spend Federal funds in accord with Federal law.Senate amendment
Identical provision.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
2. Sanctioning for Testing Positive for Controlled Substances
Present law
Eligibility and benefit status for most Federal welfare programs are not affected by a recipient's use of illegal drugs.House bill
States are not prohibited by the Federal Government from testing welfare recipients for use of controlled substances nor for sanctioning welfare recipients who test positive for the use of controlled substances.Senate amendment
Identical provision.Conference agreement
The conference agreement follows the House bill and the Senate amendment.
3. Elimination of Housing Assistance with Respect to Fugitive Felons and Probation and Parole Violators
Present law
No provision.House bill
No provision.Senate amendment
Ends eligibility for public housing and Section 8 housing assistance of a person who is fleeing to avoid prosecution after conviction for a crime, or attempt to commit a crime, that is a felony where committed (or, in the case of New Jersey, is a high misdemeanor), or who is violating a condition of probation or parole. The amendment states that the person's flight shall be cause for immediate termination of their housing aid.
Requires specified public housing agencies to furnish any Federal, State, or local law enforcement officer, upon the request of the officer, with the current address, social security number, and photograph (if applicable) of any SSI recipient, if the officer furnishes the public housing agency with the person's name and notifies the agency that the recipient is a fugitive felon (or in the case of New Jersey a person fleeing because of a high misdemeanor) or a probation or parole violator or that the person has information that is necessary for the officer to conduct his official duties, and the location or apprehension of the recipient is within the officer's official duties.Conference agreement
The conference agreement follows the Senate amendment.
4. Sense of the Senate Regarding Enterprise Zones
Present law
No specific provision. However, as stated, the provisions outlined in the Sense of the Senate language already can be done under present law.House bill
No provision.Senate amendment
Outlines some findings related to urban centers and empowerment zones and includes sense of the Senate language that urges the 104th Congress to pass an enterprise zone bill that provides Federal tax incentives to increase the formation and expansion of small businesses and to promote commercial revitalization; allows localities to request waivers to accomplish the objectives of the enterprise zones; encourages resident management of public housing and home ownership of public housing; and authorizes pilot projects in designated enterprise zones to expand the educational opportunities for elementary and secondary school children.Conference agreement
The conference agreement follows the House bill.
5. Sense of the Senate Regarding the Inability of the Non-Custodial
Parent to Pay Child Support
Present law
No provision.House bill
No provision.Senate amendment
It is the Sense of the Senate that States should pursue child support payments under all circumstances even if the noncustodial parent is unemployed or his or her whereabouts are unknown; and that States are encouraged to pursue pilot programs in which the parents of a minor non-custodial parent who refuses or is unable to pay child support contribute to the child support owed.Conference agreement
The conference agreement follows the Senate amendment.
6. Establishing National Goals to Prevent Teenage Pregnancies
Present law
No provision.House bill
No provision.Senate amendment
Requires the Secretary to establish and implement by January 1, 1997, a strategy to: (1) prevent a 2 percent increase in out-of-wedlock teenage pregnancies, and (2) assure that at least 25 percent of U.S. communities have teenage pregnancy programs in place. HHS is required to report to Congress by June 30, 1998, on progress made toward meeting these 2 goals.
Conference agreement
The conference agreement generally follows the Senate amendment, except a specified level of reduction is not established.
7. Sense of the Senate Regarding Enforcement of Statutory Rape Laws
Present law
No provision.House bill
No provision.Senate amendment
Includes language that states that it is the sense of the Senate that States and local jurisdictions should aggressively enforce statutory rape laws.
Not later than January 1, 1997, the Attorney General shall establish and implement a program that studies the linkage between statutory rape and teenage pregnancy and educates States and local criminal law enforcement officials on the prevention and prosecution of statutory rape. The Attorney General shall ensure the DOJ Violence Against Women initiative addresses the issue of statutory rape.Conference agreement
The conference agreement follows the Senate amendment.
8. Provisions to Encourage Electronic Benefit Transfer Systems
Present law
In 1978, Congress passed the Electronic Fund Transfer Act to provide a basic framework establishing the rights, liabilities, and responsibilities of participants in electronic fund transfer systems and required the Federal Reserve Board to develop implementing regulations, which generally are referred to as Regulation E.House bill
See food stamp title, which exempts from Regulation E any food stamp electronic benefit transfers.Senate amendment
Exempts from Regulation E requirements any electronic benefit transfer program (distributing needs-tested benefits) established under State or local law or administered by a State or local government.Conference agreement
The conference agreement follows the Senate amendment.
9. Reduction of Block Grants to States for Social Services; Use of
Vouchers
Present law
The Social Services Block Grant (Title XX) provides funds to States in order to provide a wide variety of social services, including child care, family planning, protective services for children and adults, services for children and adults on foster care, and employment services. States have wide discretion over how they use Social Services Block Grant funds. States set their own eligibility requirements and are allowed to transfer up to 10 percent of their allotment to certain Federal health block grants, and for low-income home energy assistance (LIHEAP). Funding for the Social Services Block Grant is capped at $2.8 billion a year. Funds are allocated among States according to the State's share of its total population. No State matching funds are required to receive Social Services Block Grant money.House bill
For fiscal years 1997 through 2002, the Social Services Block Grant is reduced by 10 percent.Senate amendment
For fiscal years 1997 through 2002, the Social Services Block Grant is reduced by 20 percent.
Requires that States receiving Title XX funds to dedicate 1 percent to programs and services for minors to avoid out-of-wedlock pregnancies.Conference agreement
The conference agreement follows the House bill and the Senate amendment regarding the reduction in funding for the Social Services block grant, with the modification that the reduction is 15 percent. The conference agreement follows the House bill so that there is no special dedication of funds for programs and services for minors. The agreement specifically states that Title XX funds may be used to provide assistance to families who have lost assistance because of time limits on benefits.
10. Earned Income Credit Provisions
A. Deny earned income credit to individuals not authorized to be employed in the United States
(Note.--For additional discussion of this provision, refer to Title IV: Restricting Welfare and Public Benefits for Aliens, above.)Present law
In general. Certain eligible low-income workers are entitled to claim a refundable credit on their income tax return. The amount of the credit an eligible individual may claim depends upon whether the individual has one, more than one, or no qualifying children and is determined by multiplying the credit rate by the individual's 1 earned income up to an earned income amount. The maximum amount of the credit is the product of the credit rate and the earned income amount. For individuals with earned income (or adjusted gross income (AGI), if greater) in excess of the beginning of the phaseout range, the maximum credit amount is reduced by the phaseout rate multiplied by the amount of earned income (or AGI, if greater) in excess of the beginning of the phaseout range. For individuals with earned income (or AGI, if greater) in excess of the end of the phaseout range, no credit is allowed.
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\1\ In the case of a married individual who files a joint return with his or her spouse, the income for purposes of these tests is the combined income of the couple.
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The parameters for the credit depend upon the number of qualifying children the individual claims. For 1996, the parameters are given in the following table:
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Two or One No more qualifying qualifying
children child children
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Credit rate (percent)................ 40.00 34.00 7.65
Earned income amount................. $8,890 $6,330 $4,220
Maximum credit....................... $3,556 $2,152 $323
Phaseout begins...................... $11,610 $11,610 $5,280
Phaseout rate (percent).............. 21.06 15.98 7.65
Phaseout ends........................ $28,495 $25,078 $9,500
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For years after 1996, the credit rates and the phaseout rates will be the same as in the preceding table. The earned income amount and the beginning of the phaseout range are indexed for inflation; because the end of the phaseout range depends on those amounts as well as the phaseout rate and the credit rate, the end of the phaseout range will also increase if there is inflation.
In order to claim the credit, an individual must either have a qualifying child or meet other requirements. A qualifying child must meet a relationship test, an age test, an identification test, and a residence test. In order to claim the credit without a qualifying child, an individual must not be a dependent and must be over age 24 and under age 65.
To satisfy the identification test, individuals must include on their tax return the name and age of each qualifying child. For returns filed with respect to tax year 1996, individuals must provide a taxpayer identification number (TIN) for all qualifying children born on or before November 30, 1996. For returns filed with respect to tax year 1997 and all subsequent years, individuals must provide TINs for all qualifying children, regardless of their age. An individual's TIN is generally that individual's social security number.
An individual with qualifying children may elect to receive a portion of the credit on an advance basis by furnishing an advance payment certificate to his or her employer. For such an individual, the employer makes an advance payment of the credit at the time wages are paid. The amount of advance payment allowable in a taxable year is limited to 60 percent of the maximum credit available to an individual with one qualifying child.
Mathematical or clerical errors. The Internal Revenue Service may summarily assess additional tax due as a result of a mathematical or clerical error without sending the taxpayer a notice of deficiency and giving the taxpayer an opportunity to petition the Tax Court. Where the IRS uses the summary assessment procedure for mathematical or clerical errors, the taxpayer must be given an explanation of the asserted error and a period of 60 days to request that the IRS abate its assessment. The IRS may not proceed to collect the amount of the assessment until the taxpayer has agreed to it or has allowed the 60-day period for objecting to expire. If the taxpayer files a request for abatement of the assessment specified in the notice, the IRS must abate the assessment. Any reassessment of the abated amount is subject to the ordinary deficiency procedures. The request for abatement of the assessment is the only procedure a taxpayer may use prior to paying the assessed amount in order to contest an assessment arising out of a mathematical or clerical error. Once the assessment is satisfied, however, the taxpayer may file a claim for refund if he or she believes the assessment was made in error.House bill
Individuals are not eligible for the credit if they do not include their taxpayer identification number (and, if married, their spouse's taxpayer identification number) on their tax return. Solely for these purposes and for purposes of the present-law identification test for a qualifying child, a taxpayer identification number is defined as a social security number issued to an individual by the Social Security Administration other than a number issued under section 205(c)(2)(B)(i)(II) (or that portion of sec. 205(c)(2)(B)(i)(III) relating to it) of the Social Security Act (regarding the issuance of a number to an individual applying for or receiving Federally funded benefits).
If an individual fails to provide a correct taxpayer identification number, such omission will be treated as a mathematical or clerical error. If an individual who claims the credit with respect to net earnings from self-employment fails to pay the proper amount of self-employment tax on such net earnings, the failure will be treated as a mathematical or clerical error for purposes of the amount of credit allowed.
Effective date. The provision is effective for taxable years beginning after December 31, 1995.Senate amendment
The provision in the Senate amendment is identical to that in the House bill.Conference agreement
The conference agreement follows the House bill and the Senate amendment with a modification to the effective date. The conference agreement is effective with respect to returns the due date for which (without regard to extensions) is more than 30 days after the date of enactment of this Act.
B. Change disqualified income test for earned income credit
Present law
For taxable years beginning after December 31, 1995, an individual is not eligible for the earned income credit if the aggregate amount of ``disqualified income'' of the taxpayer for the taxable year exceeds $2,350. This threshold is not indexed. Disqualified income is the sum of:
(1) interest (taxable and tax-exempt),
(2) dividends, and
(3) net rent and royalty income (if greater than zero).House bill
No provision.Senate amendment
For purposes of the disqualified income test for the earned income credit, the following items are added to the definition of disqualified income: capital gain net income and net passive income (if greater than zero) that is not self-employment income.
The threshold above which an individual is not eligible for the credit is reduced from $2,350 to $2,200, and the threshold is indexed for inflation after 1996.
Effective date. The provision generally is effective for taxable years beginning after December 31, 1995. For individuals who, as of June 26, 1996, had made an election to receive the current-year credit on an advance basis, the provision is effective for taxable years beginning after December 31, 1996.Conference agreement
The conference agreement follows the Senate amendment.
C. Modify definition of adjusted gross income used for phasing out the earned income credit
Present law
For taxpayers with earned income (or AGI, if greater) in excess of the beginning of the phaseout range, the maximum earned income credit amount is reduced by the phaseout rate multiplied by the amount of earned income (or AGI, if greater) in excess of the beginning of the phaseout range. For taxpayers with earned income (or AGI, if greater) in excess of the end of the phaseout range, no credit is allowed.House bill
No provision.Senate amendment
The provision modifies the definition of AGI used for phasing out the earned income credit by including certain nontaxable income and by disregarding certain losses. The nontaxable items included are:
(1) tax-exempt interest, and
(2) nontaxable distributions from pensions, annuities, and individual retirement arrangements (but only if not rolled over into similar vehicles during the applicable rollover period).
The losses disregarded are:
(1) net capital losses (if greater than zero),
(2) net losses from trusts and estates,
(3) net losses from nonbusiness rents and royalties, and
(4) net losses from businesses, computed separately with respect to sole proprietorships (other than in farming), sole proprietorships in farming, and other businesses.
For purposes of item (4), above, amounts attributable to a business that consists of the performance of services by the taxpayer as an employee are not taken into account.
Effective date. The provision generally is effective for taxable years beginning after December 31, 1995. For individuals who, as of June 26, 1996, had made an election to receive the current-year credit on an advance basis, the provision is effective for taxable years beginning after December 31, 1996.Conference agreement
The conference agreement modifies the definition of AGI used for phasing out the earned income credit by disregarding certain losses. The losses disregarded are:
(1) net capital losses (if greater than zero),
(2) net losses from trusts and estates,
(3) net losses from nonbusiness rents and royalties, and
(4) 50 percent of the net losses from businesses, computed separately with respect to sole proprietorships (other than in farming), sole proprietorships in farming, and other businesses.
For purposes of item (4), above, amounts attributable to a business that consists of the performance of services by the taxpayer as an employee are not taken into account.
Effective date. Same as the Senate amendment provision.
D. Suspend inflation adjustments for earned income credit for individuals with no qualifying children
Present law
To claim the earned income credit, an individual must either have a qualifying child or meet other requirements. In order to claim a credit without a qualifying child, an individual must not be a dependent and must be over age 24 and under age 65.
The earned income amount and the beginning of the phaseout range are indexed for inflation; because the end of the phaseout range depends on these amounts as well as the phaseout rate and the credit rate, the end of the phaseout range will also increase if there is inflation.House bill
No provision.Senate amendment
In the case of individuals with no qualifying children there will be no adjustment for inflation after 1996 to the earned income amount or the beginning of the phaseout range.
Effective date. The provision is effective for taxable years beginning after December 31, 1996.Conference agreement
The conference agreement follows the House bill (no provision).
11. Reductions in Federal Government Positions
A. Reductions
Present law
No provisionHouse bill
A covered activity is defined as one that the Department must carry out under a provision of this Act or a provision of Federal law that is amended or repealed by the Act. It also requires the Secretaries of Agriculture, Education, Labor, HHS, and Housing and Urban Development to report to Congress by December 31, 1996 on the number of full-time equivalent (FTE) positions required to carry out ``covered'' activities before and after enactment of the amendment and to reduce the number of employees by the difference in numbers. The Comptroller General of the United States shall prepare and submit to Congress by July 1, 1997, a report analyzing the determinations made by each Secretary.Senate amendment
Similar to House bill, except:
requires the Secretaries to report the number of FTEs not later than December 31, 1996 (rather than January 1, 1997);
requires the Secretaries to prepare and submit a report of changes not later than December 31, 1997 (rather than December 31, 1996); and
adjusts discretionary spending limits downward for fiscal years 1997 and 1998 to account for savings achieved by this provision. (This provision was deleted due to the Byrd Rule.)Conference agreement
This provision was deleted due to the Byrd rule. For additional discussion of related provisions, see Title I: Block Grants for Temporary Assistance for Needy Families, above.
B. Reductions in Federal Bureaucracy
Present law
No provisionHouse bill
The Department of Health and Human Services (HHS) reports that 118 employees in the Office of Family Assistance (OFA) work on AFDC and 209 (full-time equivalent positions) in regional offices of the Administration on Children and Families. The OFA employees include 30 who spend some time interpreting AFDC/JOBS policy and participating with States in State plan development.Senate amendment
Similar to House bill. (This provision was deleted due to the Byrd Rule.)Conference agreement
This provision was deleted due to the Byrd rule. For additional discussion of related provisions, see Title I: Block Grants for Temporary Assistance for Needy Families, above.
C. Reducing Personnel in Washington, D.C. Area
Present law
No provision.House bill
The Secretary is encouraged to reduce personnel in the Washington, D.C. office (agency headquarters) before reducing field personnel.Senate amendment
Similar to House bill. (This provision was deleted due to the Byrd Rule.)Conference agreement
This provision was deleted due to the Byrd rule. For additional discussion of related provisions, see Title I: Block Grants for Temporary Assistance for Needy Families, above.
12. Reform of Public Housing
A. Fraud under Means-Tested Welfare and Public Assistance Programs
Present law
No provision.House bill
If a person's means-tested benefits from a Federal, State, or local welfare program are reduced because of an act of fraud, their benefits from public or assisted housing may not be increased in response to the income loss caused by the penalty.Senate amendment
Similar to House bill.Conference agreement
The conference agreement follows the House bill.
B. Failure to Comply with other Welfare and Public Assistance Programs
Present law
If a family's adjusted cash income declines--no matter what the reason--its housing benefit is increased (that is, its rental payment is decreased, by 30 cents per dollar). This applies to cash income from any source, including means-tested benefit programs. However, the housing programs take no account of noncash income. Thus, if food stamp benefits decline, housing benefits are unaffected.House bill
No provision.Senate amendment
Provides that there be no reduction in public or assisted housing rents in response to a tenant's reduced income resulting from non-compliance with welfare or public assistance program requirements; permits reduction where State or local law limits the period during which benefits may be provided.Conference agreement
The conference agreement follows the House bill (no provision).
13. Abstinence Education
Present law
The Maternal and Child Health (MCH) block grants (title V of the SSA, 42 USC 701) provides grants to States and insular areas to fund a broad range of preventive health and primary care activities to improve the health status of mothers and children, with a special emphasis on those with low income or with limited availability of health services. Sec. 502 includes a set-aside program for projects of national or regional significance. (The FY1995 appropriation for MCH was
$684 million.) See also: Title XX of the Public Health Service Act establishes the Adolescent Family Life (AFL) program to encourage adolescents to delay sexual activity and to provide services to alleviate the problems surrounding adolescent parenthood. One-third of all funding for AFL program services go to projects that provide ``prevention services.'' The purpose of the prevention component is to find effective means within the context of the family of reaching adolescents, both male and female, before they become sexually active to maximize the guidance and support of parents and other family members in promoting abstinence from adolescent premarital sexual relations. (The FY1995 appropriation for AFL was $6.7 million.)House bill
Increases the authorization level to $761 million for FY 96 and each subsequent fiscal year. Adds abstinence education to the services to be provided. Defines abstinence education as an educational or motivational program which:
(A) teaches the gains to be realized by abstaining from sexual activity;
(B) teaches abstinence from sexual activity outside of marriage as the expected standard for all school age children;
(C) teaches that abstinence is the only certain way to avoid out-of-wedlock pregnancy, sexually transmitted diseases, and other health problems;
(D) teaches that a monogamous relationship in context of marriage is expected standard of human sexual activity;
(E) teaches that sexual activity outside of marriage is likely to have harmful effects;
(F) teaches that bearing children out-of-wedlock is likely to have harmful consequences;
(G) teaches young people how to avoid sexual advances and how alcohol and drug use increases vulnerability to sexual advances; and
(H) teaches the importance of attaining self-sufficiency before engaging in sexual activity.Senate amendment
Amends the Maternal and Child Health (MCH) block grants
(title V of the SSA) to set aside $75 million to provide abstinence education--defined as an educational or motivational program that has abstaining from sexual activity as its exclusive purpose--and to provide at the option of the State mentoring, counseling and adult supervision to promote abstinence with a focus on those groups most likely to bear children out-of- wedlock. Also increases the authorization level of MCH to $761 million. (This provision was deleted due to the Byrd Rule.)Conference agreement
The conference agreement follows the House bill with modification that $50 million for each of fiscal years 1998-2002 is directly appropriated for this purpose.
14. Church of Christ, Scientist
Present law
Sections 1902(a) and 1908(e)(1) of the Social Security Act
(relating to Medicaid) reference the Church of Christ, Scientist.House bill
No provision.Senate amendment
No provision.Conference agreement
Changes Medicaid references in Social Security Act from Church of Christ, Scientist, to the Commission for Accreditation of Christian Science Nursing Organizations/Facilities, Inc.
John R. Kasich,Bill Archer,William F. Goodling,Pat Roberts,Tom Bliley,E. Clay Shaw, Jr.,James Talent,Jim Nussle,Tim Hutchinson,Jim McCrery,Michael Bilirakis,Lamar Smith,Nancy L. Johnson,Dave Camp,Gary A. Franks,
``Duke'' Cunningham,Mike Castle,Bob Goodlatte,
Managers on the Part of the House.
From the Committee on the Budget:Pete V. Domenici,D. Nickles,Phil Gramm,Jim Exon,From the Committee on Agriculture, Nutrition, and Forestry:Richard G. Lugar,Jesse Helms,Thad Cochran,Rick Santorum,From the Committee on Finance:William V. Roth, Jr.,John H. Chafee,Chuck Grassley,Orrin Hatch,Al Simpson,From the Committee on Labor and Human Resources:Nancy Landon Kassebaum,Managers on the Part of the Senate.
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