[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3500 Introduced in House (IH)]
103d CONGRESS
1st Session
H. R. 3500
To amend title IV of the Social Security Act to provide welfare
families with the education, training, job search, and work experience
needed to prepare them to leave welfare within 2 years, to increase the
rate of paternity establishment for children receiving welfare
benefits, to provide States with greater flexibility in providing
welfare, to authorize States to conduct demonstration projects to test
the effectiveness of policies designed to help people leave welfare and
increase their financial security, to strengthen child support
enforcement, and to eliminate welfare payments for most groups of
noncitizens.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 10, 1993
Mr. Michel (for himself, Mr. Gingrich, Mr. Santorum, Mr. DeLay, Mr.
Shaw, Mrs. Johnson of Connecticut, Mr. Grandy, Mr. Camp, Mr. Castle,
Mr. Herger, Mr. Hutchinson, Mr. Inglis of South Carolina, Mr.
Knollenberg, Mr. Kolbe, Mrs. Roukema, Mr. Allard, Mr. Archer, Mr.
Armey, Mr. Bachus of Alabama, Mr. Baker of California, Mr. Baker of
Louisiana, Mr. Ballenger, Mr. Barrett of Nebraska, Mr. Bartlett of
Maryland, Mr. Barton of Texas, Mr. Bateman, Mrs. Bentley, Mr. Bereuter,
Mr. Bilirakis, Mr. Bliley, Mr. Blute, Mr. Boehner, Mr. Bonilla, Mr.
Bunning, Mr. Burton of Indiana, Mr. Buyer, Mr. Callahan, Mr. Calvert,
Mr. Canady, Mr. Clinger, Mr. Coble, Mr. Collins of Georgia, Mr. Cox,
Mr. Crane, Mr. Crapo, Mr. Cunningham, Mr. Dickey, Mr. Doolittle, Mr.
Dornan, Mr. Dreier, Mr. Duncan, Ms. Dunn, Mr. Emerson, Mr. Everett, Mr.
Ewing, Mr. Fawell, Mr. Fields of Texas, Mrs. Fowler, Mr. Franks of New
Jersey, Mr. Franks of Connecticut, Mr. Gallegly, Mr. Gallo, Mr. Gekas,
Mr. Gilchrest, Mr. Gilman, Mr. Goodlatte, Mr. Goodling, Mr. Goss, Mr.
Grams, Mr. Greenwood, Mr. Gunderson, Mr. Hancock, Mr. Hansen, Mr.
Hastert, Mr. Hefley, Mr. Hobson, Mr. Hoekstra, Mr. Hoke, Mr. Horn, Mr.
Houghton, Mr. Huffington, Mr. Hunter, Mr. Hyde, Mr. Inhofe, Mr. Istook,
Mr. Sam Johnson of Texas, Mr. Kasich, Mr. Kim, Mr. King, Mr. Kingston,
Mr. Klug, Mr. Kyl, Mr. Lazio, Mr. Leach, Mr. Levy, Mr. Lewis of
California, Mr. Lewis of Florida, Mr. Lightfoot, Mr. Linder, Mr.
Livingston, Mr. McCandless, Mr. McCollum, Mr. McCrery, Mr. McDade, Mr.
McHugh, Mr. McInnis, Mr. McKeon, Mr. McMillan, Mr. Machtley, Mr.
Manzullo, Mr. Mica, Mr. Miller of Florida, Mr. Moorhead, Mr. Nussle,
Mr. Oxley, Mr. Packard, Mr. Paxon, Mr. Petri, Mr. Pombo, Mr. Porter,
Mr. Portman, Ms. Pryce of Ohio, Mr. Quillen, Mr. Quinn, Mr. Ramstad,
Mr. Ravenel, Mr. Regula, Mr. Ridge, Mr. Roberts, Mr. Rogers, Mr.
Rohrabacher, Mr. Roth, Mr. Royce, Mr. Saxton, Mr. Schaefer, Mr.
Sensenbrenner, Mr. Shuster, Mr. Skeen, Mr. Smith of Texas, Mr. Smith of
Michigan, Mr. Smith of Oregon, Mr. Solomon, Mr. Spence, Mr. Stearns,
Mr. Stump, Mr. Sundquist, Mr. Talent, Mr. Taylor of North Carolina, Mr.
Thomas of Wyoming, Mr. Thomas of California, Mr. Torkildsen, Mr. Upton,
Mr. Walker, Mr. Walsh, Mr. Weldon, Mr. Wolf, Mr. Young of Florida, Mr.
Young of Alaska, Mr. Zeliff, and Mr. Zimmer) introduced the following
bill; which was referred jointly to the Committees on Ways and Means,
Education and Labor, Energy and Commerce, Agriculture, Banking, Finance
and Urban Affairs, the Judiciary, Government Operations, and Rules
August 8, 1994
Additional sponsors: Mr. Myers of Indiana and Mr. Fish
_______________________________________________________________________
A BILL
To amend title IV of the Social Security Act to provide welfare
families with the education, training, job search, and work experience
needed to prepare them to leave welfare within 2 years, to increase the
rate of paternity establishment for children receiving welfare
benefits, to provide States with greater flexibility in providing
welfare, to authorize States to conduct demonstration projects to test
the effectiveness of policies designed to help people leave welfare and
increase their financial security, to strengthen child support
enforcement, and to eliminate welfare payments for most groups of
noncitizens.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Responsibility and Empowerment
Support Program Providing Employment, Child Care, and Training Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--AFDC TRANSITION AND WORK PROGRAM
Sec. 101. AFDC transition and work program.
Sec. 102. Community work experience program amendments.
Sec. 103. Work supplementation program amendments.
Sec. 104. Effective date; regulations.
TITLE II--PATERNITY ESTABLISHMENT
Sec. 201. Reduction or denial of AFDC for children whose paternity is
not established.
Sec. 202. Teens receiving AFDC required to live at home.
Sec. 203. Earlier paternity establishment efforts by States.
Sec. 204. Increase in paternity establishment percentage.
Sec. 205. Effective date.
TITLE III--EXPANSION OF STATUTORY FLEXIBILITY OF STATES
Sec. 301. Option to convert AFDC into a block grant program.
Sec. 302. Option to deny AFDC if either parent is a minor.
Sec. 303. Option to treat interstate immigrants under rules of former
State.
Sec. 304. Option to impose penalty for failure to attend school.
Sec. 305. Option to deny AFDC for additional children.
Sec. 306. Option to modify certain AFDC income disregard rules.
Sec. 307. Option to provide married couple transition benefit.
Sec. 308. Option to disregard income and resources designated for
education, training, and employability, or
related to self-employment.
Sec. 309. Option to require attendance at parenting and money managment
classes, and prior approval of any action
that would result in a change of school for
a dependent child.
Sec. 310. Effective date.
TITLE IV--EXPANSION OF STATE AND LOCAL FLEXIBILITY
Sec. 401. Interagency Waiver Request Board.
Sec. 402. Application to implement assistance plans.
Sec. 403. Review and approval of applications; waivers.
Sec. 404. Implementation of assistance plans; evaluations.
Sec. 405. Public-Private Partnership Committees.
Sec. 406. Definitions.
Sec. 407. Reports.
Sec. 408. Sunset.
TITLE V--CHILD SUPPORT ENFORCEMENT
Sec. 501. National reporting of information relating to child support
with respect to certain employees.
Sec. 502. State information systems.
Sec. 503. National information systems.
Sec. 504. Income withholding.
Sec. 505. Uniform terms in orders.
Sec. 506. Work requirement for noncustodial parents with child support
arrearages.
TITLE VI--WELFARE RESTRICTIONS FOR ALIENS
Sec. 601. Ineligibility of aliens for public welfare assistance.
Sec. 602. State AFDC agencies required to provide information on
illegal aliens to the Immigration and
Naturalization Service.
TITLE VII--CONTROLLING WELFARE COSTS
Sec. 701. Caps on certain means-tested programs.
Sec. 702. Sequestration of Federal spending to enforce spending caps on
means-tested programs.
TITLE VIII--CONSOLIDATED BLOCK GRANT TO STATES FOR FOOD ASSISTANCE
Sec. 801. Food assistance block grant program.
Sec. 802. Availability of Federal coupon program to States.
Sec. 803. Authority to sell Federal surplus commodities.
Sec. 804. Definitions.
Sec. 805. Repealers and amendments.
Sec. 806. Effective date; application of repealers and amendments.
TITLE IX--MISCELLANEOUS
Sec. 901. AFDC recipients required to undergo necessary substance abuse
treatment as a condition of receiving AFDC.
Sec. 902. SSI benefits for drug and alcohol addicts.
Sec. 903. Evaluation of education and training programs.
Sec. 904. Job search required while AFDC application is pending.
Sec. 905. Fraud and administrative efficiency.
Sec. 906. Public housing rent reform.
Sec. 907. Required immunizations for children.
TITLE I--AFDC TRANSITION AND WORK PROGRAM
SEC. 101. AFDC TRANSITION AND WORK PROGRAM.
(a) Purpose.--Section 481(a) of the Social Security Act (42 U.S.C.
681(a)) is amended by striking all that follows ``and'' and inserting
``work experience needed to prepare them for a life without welfare.''.
(b) Establishment and Operation of Program.--
(1) Transition and work components.--Section 482 of such
Act (42 U.S.C. 682) is amended by adding at the end the
following:
``(j) The program under this part must include--
``(1) a transition component that--
``(A) must include the job search program
established by the State under subsection (g); and
``(B) may include any other service, activity, or
program of the State that is referred to in subsection
(d)(1); and
``(2) a work component that may include--
``(A) a work supplementation program operated by
the State under subsection (e);
``(B) a community work experience program
established by the State under subsection (f); or
``(C) any other work program of the State that is
approved by the Secretary.''.
(2) Participation requirements.--Section 402(a)(19) of such
Act (42 U.S.C. 602(a)(19)) is amended by adding at the end the
following:
``(I)(i) as used in this subparagraph, the term
`qualified individual' means--
``(I) all individuals eligible for aid
under the plan who applied for such aid on or
after October 1, 1994, and are not described in
subparagraph (C); and
``(II) on and after October 1, 1998, all
individuals eligible for aid under the plan who
are not described in subparagraph (C);
``(ii)(I) each qualified individual must
participate in the transition component of the program
of the State under part F, except that--
``(aa) a qualified individual may not be
required (but may be allowed) to participate in
the transition component if, on the basis of
demographic criteria, the State finds that it
is unlikely that the individual will be a
recipient of aid under the plan during a
significant length of time;
``(bb) a qualified individual may not
participate in the transition component if the
individual has elected to participate in the
work component; and
``(cc) a qualified individual may not
participate in the transition component after
the first 24 months (or, at the option of the
State with respect to some or all qualified
individuals based on their desire to work or on
their readiness for employment, any period of
lesser duration) for which the individual is a
qualified individual; and
``(dd) the State may, at its option, exempt
a qualified individual, during 12 of the first
24 months for which an individual is a
qualified individual, from any requirement to
participate in the transition component if the
individual is described in paragraph (35)(A)
and is in compliance with paragraph (35)(A);
``(II)(aa) each qualified individual participating
in the transition component must participate in
activities under such component for an average of not
fewer than 10 hours per week during the first 24 months
of such participation;
``(bb) the State, in consultation with the
Secretary, must establish guidelines by which
determinations under item (aa) will be made, and which,
in the case of educational activities, must provide
that an individual who is enrolled full-time in a
program of study at an educational institution
(including a vocational or technical training school),
as determined by the institution, and is making
satisfactory progress in the program of study, as
determined by the institution, is to be regarded as
participating in the transition component, in
accordance with such rules as the Secretary may
prescribe (including rules governing how time spent in
such a program of study is to be converted into hours
of participation in the transition component);
``(iii)(I) if a qualified individual (other than a
qualified individual who is a member of a family
receiving aid under the plan by reason of section 407)
is not participating in the transition component of the
program, the State must require the qualified
individual to participate in the work component of the
program for 35 hours per week (or 30 hours per week, if
the State requires the participant to engage in a job
search program established by the State under section
482(g));
``(II) in the case of a family which has received
aid under the plan by reason of section 407--
``(aa) the State must require at least 1
parent in the family to participate in the work
component by engaging in work activities for 32
hours per week and by engaging in job search
activities for 8 hours per week;
``(bb) the State must combine the aid
payable to the family under the plan, and any
food stamp benefits payable under the Food
Stamp Act of 1977 to a household that includes
a member of the family, into a single cash
payment to the family, which shall be reduced
pro rata with respect to any period for which
the family has not complied with item (aa); and
``(III) any qualified individual participating in
the work component, may, with the approval of the
State, discontinue participation in the work component
and begin or resume participation in the transition
component, subject to clause (ii)(I)(cc);
``(iv) each qualified individual must cooperate
with the State in developing a plan which--
``(I) describes the respective
responsibilities of the State and of the
individual under the program with the goal of
preparing the individual for work; and
``(II) includes a written statement
informing the individual that, upon completion
of the transition component of the program, aid
under the State plan under this part will be
discontinued unless the individual finds
gainful employment or is participating in the
work component of the program;
``(v) if the State determines that a qualified
individual has failed to comply with any requirement
imposed under this subparagraph--
``(I) in the case of the 1st such failure,
the State shall reduce the amount of aid
otherwise payable under this part to the family
of the individual by an amount equal to 25
percent of the sum of such otherwise payable
amount and any food stamp benefits payable
under the Food Stamp Act of 1977 to a household
that includes a member of the family, and shall
apply such reduction until the failure to
comply ceases;
``(II) in the case of the 2nd such failure
or a 1st such failure that continues for more
than 1 calendar month, the State shall reduce
the amount of aid otherwise payable under this
part to the family of the individual by an
amount equal to 25 percent of the sum of such
otherwise payable amount and any food stamp
benefits payable under the Food Stamp Act of
1977 to a household that includes a member of
the family, and shall apply such reduction
until the failure to comply ceases;
``(III) in the case of the 3rd such
failure, the family of the individual shall not
be eligible for aid under the State plan under
this part, notwithstanding any other provision
of this part; and
``(IV) any 1st such failure that continues
for more than 1 calendar month shall be
considered the 2nd such failure, and any 2nd
such failure that continues for more than 3
calendar months shall be considered the 3rd
such failure;
``(vi) at the option of the State, the State may
impose a rule under which the family of an individual
shall not be eligible for aid under the State plan
under this part, notwithstanding any other provision of
this part, after the individual has been required to
participate in the work component of the program for a
period (determined by the State) of not less than 3
years; and
``(vii) if a family becomes ineligible for aid
under the State plan under this part by reason of
clause (v)(II) or (vi), the family shall, for purposes
of medical assistance under the State plan under title
XIX, be deemed to be a recipient of aid under the State
plan under this part for so long as the family is
otherwise eligible for aid under the State plan under
this part.''.
(3) Persons exempted from participation.--Section
402(a)(19)(C) of such Act (42 U.S.C. 602(a)(19)(C)) is amended
by striking all that follows ``--'' and inserting the
following:
``(C) that an individual may not be required to
participate in the program--
``(i) if the individual is incapacitated;
``(ii) if the individual works 30 or more
hours per week;
``(iii) if the individual attends, full-
time, an elementary, secondary, or vocational
(or technical) school;
``(iv) if the individual is the parent of a
child who was returned to the home of the
individual during the preceding 2 months after
having been removed from the home;
``(v) if the individual is providing full-
time care for a disabled dependent of the
individual;
``(vi) at the option of the State, if the
individual is making progress in a substance
abuse treatment program, unless this clause has
been applied to the individual for 12 months;
``(vii) during such 6-month period as the
individual may select, in which the individual
gives birth to the first child born to the
individual after becoming eligible for aid
under this part; or
``(viii) during such 4-month period as the
individual may select, in which the individual
gives birth to the second or subsequent child
born to the individual after becoming eligible
for aid under this part;''.
(4) Extension to all states of option to limit afdc-up.--
Section 407(b)(2)(B) of such Act (42 U.S.C. 607(b)(2)(B)) is
amended by striking clause (iii).
(5) Increase in required jobs participation rates.--Section
403(l)(3) of such Act (42 U.S.C. 603(l)(3)) is amended--
(A) in subparagraph (A)--
(i) by striking all that follows ``--'' and
inserting the following:
``(i) with respect to all individuals eligible for aid
under the State plan who applied for such aid before October 1,
1994, and are not described in section 402(a)(19)(C)--
``(I) 7 percent if the preceding fiscal year is
1990;
``(II) 7 percent if such year is 1991;
``(III) 11 percent if such year is 1992;
``(IV) 11 percent if such year is 1993;
``(V) 15 percent if such year is 1994;
``(VI) 20 percent if such year is 1995;
``(VII) 20 percent if such year is 1996;
``(VIII) 20 percent if such year is 1997; and
``(IX) 20 percent if such year is 1998;
``(ii) with respect to all individuals eligible for aid
under the State plan who applied for such aid on or after
October 1, 1994, and are not described in section
402(a)(19)(C)--
``(I) 30 percent if such year is 1996;
``(II) 40 percent if such year is 1997; and
``(III) 50 percent if such year is 1998; and
``(iii) with respect to all individuals eligible for aid
under the State plan who are not described in section
402(a)(19)(C)--
``(I) 60 percent if such year is 1999;
``(II) 70 percent if such year is 2000;
``(III) 80 percent if such year is 2001; and
``(IV) 90 percent if such year is 2002.''; and
(B) in subparagraph (B)(ii)(IV), by striking ``and
1995'' and inserting ``through 2002''.
(6) Increase in required work program participation rates
of unemployed parents.--Section 403(l)(4)(B) of such Act (42
U.S.C. 603(l)(4)(B)) is amended--
(A) in clause (iii), by striking ``and'';
(B) in clause (iv), by striking ``each of the
fiscal years 1997 and 1998.'' and inserting ``fiscal
year 1997; and''; and
(C) by adding at the end the following:
``(v) 90 percent in the case of the average of each month
in fiscal year 1998.''.
(c) Payments to States.--Section 403 of such Act (42 U.S.C. 603) is
amended by adding at the end the following:
``(o)(1) Each State which has been paid under subsection (l) of
this section for any fiscal year an amount equal to the limitation
determined under subsection (k)(2) of this section for the fiscal year
shall be entitled to payments under paragraph (4) of this subsection
for the fiscal year in an amount equal to the lesser of--
``(A) the sum of the applicable percentages (specified in
such paragraph (4)) of its expenditures to carry out the
program of the State under part F (subject to limitations
prescribed by or pursuant to such part or such paragraph (4) on
expenditures that may be included for purposes of determining
payment under such paragraph (4)); or
``(B) the limitation determined under paragraph (2) of this
subsection with respect to the State for the fiscal year.
``(2) The limitation determined under this paragraph with respect
to a State for any fiscal year is the amount that bears the same ratio
to the amount specified in paragraph (3) of this subsection for the
fiscal year as the average monthly number of adult recipients (as
defined in subsection (k)(4)) in the State in the preceding fiscal year
bears to the average monthly number of such recipients in all the
States for such preceding year.
``(3) The amount specified in this paragraph is--
``(A) $300,000,000 for fiscal year 1996;
``(B) $1,000,000,000 for fiscal year 1997; and
``(C) $1,900,000,000 for fiscal year 1998.
``(4) Each State which has been paid under subsection (l) of this
section for a fiscal year an amount equal to the limitation determined
under subsection (k)(2) of this section for the fiscal year shall, in
addition to any payment under subsection (a) or (l) of this section, be
entitled to payment from the Secretary of an amount equal to--
``(A) 50 percent of the expenditures of the State for
administrative costs incurred in operating the program under
part F during the fiscal year (other than personnel costs for
staff employed in the operation of the program) with respect to
which payment has not been made under subsection (l); and
``(B) the greater of 70 percent or the Federal medical
assistance percentage (as defined in section 1118 in the case
of a State to which section 1108 applies, or as defined in
section 1905(b) in the case of any other State) of the other
expenditures of the State incurred in operating the program
during the fiscal year with respect to which payment has not
been made under subsection (l).
``(5)(A) Notwithstanding paragraph (4) of this subsection, the
Secretary shall pay to a State an amount equal to 50 percent of the
expenditures of the State incurred in operating the program under part
F during a fiscal year and with respect to which payment has not been
made under subsection (l) if the State's participation rate (determined
under subparagraph (B) of this paragraph) for the immediately preceding
fiscal year is less than--
``(i) 15 percent if the preceding fiscal year is 1994;
``(ii) 20 percent if such year is 1995;
``(iii) 30 percent if such year is 1996;
``(iv) 40 percent if such year is 1997;
``(v) 50 percent if such year is 1998;
``(vi) 60 percent if such year is 1999;
``(vii) 70 percent if such year is 2000;
``(viii) 80 percent if such year is 2001; and
``(ix) 90 percent if such year is 2002.
``(B)(i) The State's participation rate for a fiscal year shall be
the number, expressed as a percentage, equal to--
``(I) the number of individuals who participated in the
State's program under part F in the year; divided by
``(II) the number of individuals required to participate in
the program in the year (including individuals with respect to
whom the State has exercised its option to require their
participation).
``(ii) For purposes of this subparagraph, an individual shall not
be considered to have satisfactorily participated in the program under
part F solely by reason of the individual being registered to
participate in the program.
``(C) For purposes of this paragraph, an individual shall be
considered to have participated in the program under part F if the
individual has participated in accordance with such requirements,
consistent with regulations of the Secretary, as the State shall
establish.
``(D)(i) If the Secretary determines that a State has failed to
achieve the participation rate for any fiscal year specified in
subparagraph (A) of this paragraph, then, subject to clause (ii), the
Secretary may waive, in whole or in part, the reduction in the payment
rate otherwise required by such subparagraph (A) if the Secretary finds
that the State--
``(I) is in conformity with section 402(a)(19) and part F;
``(II) has made a good faith effort to achieve the
participation rate; and
``(III) has submitted a proposal which is likely to achieve
the applicable participation rates for the current fiscal year
and any succeeding fiscal year so specified.
``(ii) The Secretary may not grant a waiver to any State under
clause (i) for more than 12 months (whether or not consecutive) in any
48-month period.''.
(d) Conforming Amendment.--Section 403(l)(3)(D) of such Act (42
U.S.C. 603(l)(3)(D)) is amended--
(1) by inserting ``(i)'' after (D)'';
(2) by inserting ``who is eligible for aid under the State
plan, who applied for such aid on or after October 1, 1994, and
who is not described in section 402(a)(19)(C)'' after ``an
individual''; and
(3) by adding at the end the following:
``(ii) For purposes of this paragraph, an individual who is
eligible for aid under the State plan, who applied for such aid before
October 1, 1994, and is not described in section 402(a)(19)(C) shall
not be determined to have participated in the program under part F for
a week, if such individual has participated in such program for less
than 10 hours during the week.''.
(e) Sense of the Congress.--Each State that operates a program
under section 402(a)(19), and part F of title IV, of the Social
Security Act is encouraged to begin with families that include older
preschool or school-age children.
SEC. 102. COMMUNITY WORK EXPERIENCE PROGRAM AMENDMENTS.
Section 482(f)(1)(B) of the Social Security Act (42 U.S.C.
682(f)(1)(B)) is amended--
(1) in clause (i)--
(A) by inserting ``(I)'' after ``(B)(i)''; and
(B) by striking ``(as determined by the State)''
and inserting ``in the transition component of the
program under this part who is required to participate
in the program established under this subsection''; and
(C) by adding at the end the following:
``(II) Each participant in the work component of the program under
this part who is required to participate in the program established
under this subsection must be required to work for exactly 35 hours per
week (or 30 hours per week, if the State requires the participant to
engage in a job search program established by the State under
subsection (g)).''; and
(2) in clause (ii), by inserting ``who is a participant in
the transition component of the program under this part'' after
``an individual''.
SEC. 103. WORK SUPPLEMENTATION PROGRAM AMENDMENTS.
(a) Authority of States To Assign Participants to Unfilled Jobs.--
Section 484(c) of the Social Security Act (42 U.S.C. 684(c)) is amended
by striking the last sentence.
(b) Authority of States To Use Sums That Would Otherwise Be
Expended for Food Stamp Benefits To Provide Subsidized Jobs for
Participants.--
(1) In general.--Section 482(e)(1) of such Act (42 U.S.C.
682(e)(1)) is amended--
(A) by inserting ``, and the sums that would
otherwise be used to provide participants in the
program under this subsection with food stamp benefits
under the Food Stamp Act of 1977,'' before ``and use'';
and
(B) by inserting ``and the food stamp benefits that
would otherwise be so provided to them'' before the
period.
(2) Subsidies provided to employers and included in wages
of participants; minimum employer contribution.--Section
482(e)(3) of such Act (42 U.S.C. 682(e)(3)) is amended by
adding at the end the following:
``(E) Each State operating a work supplementation program under
this subsection shall enter into an agreement with the employer who is
to provide an eligible individual with a supplemented job under the
program, under which--
``(i) the State is required to pay the employer an amount
specified in the agreement as the subsidized portion of the
wages of the eligible individual; and
``(ii) the employer is required to pay the eligible
individual wages which, when added to an amount that will be
payable as aid to families with dependent children to the
individual if the individual is paid such wages, are not less
than 100 percent of the sum of--
``(I) the amount that would otherwise be payable as
aid to families with dependent children to the eligible
individual if the State did not have a work
supplementation program under this subsection in
effect; and
``(II) if the State elects to subsidize jobs for
participants in the program through the reservation of
sums that would otherwise be used to provide such
participants with food stamp benefits under the Food
Stamp Act of 1977, the amount paid to the State by the
Secretary of Agriculture that represents the cash value
of the food stamp benefits for which the household of
the eligible individual is a member is eligible under
such Act.
``(F) For purposes of computing the amount of the Federal payment
to a State under paragraph (1) or (2) of section 403(a), for
expenditures incurred in making payments to individuals and employers
under the State's work supplementation program under this section, the
State may claim as such expenditures the maximum amount payable to the
State under paragraph (4) of this subsection.
``(G) Notwithstanding paragraph (1), a State may use for any
purpose the sums reserved under paragraph (1) which are not used to
subsidize jobs under this subsection attributable to savings achieved
by operation of subparagraph (E).''.
(3) Conforming amendment.--Section 482(e)(3)(A) of such Act
(42 U.S.C. 682(e)(3)(A)) is amended by striking the 2nd
sentence.
(4) Employment cashout of food stamp benefits.--Section 16
of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended by
adding at the end the following:
``(l) If a State agency of a State that makes the election
described in section 482(e)(3)(E)(ii)(II) of the Social Security Act
informs the Secretary that an individual who is participating in the
work supplementation program carried out under section 482(e) of such
Act is a member of a household that participates in the food stamp
program and all the members of the household receive benefits under a
State plan approved under part A of title IV of such Act--
``(1) the Secretary shall pay to the State an amount equal
to the value of the food stamp benefits the household is
eligible to receive under this Act;
``(2) the State shall expend the amount in accordance with
section 482(e)(3) of the Social Security Act to make a payment
to the individual in lieu of food stamp benefits the household
would receive but for the operation of this subsection;
``(3) for purposes of--
``(A) sections 5 and 8(a) of this Act, the amount
shall be excluded from household income and resources;
and
``(B) section 8(b) of this Act, the amount shall be
considered as the value of an allotment provided to the
household; and
``(4) the household shall not receive food stamp benefits
from the State agency for the period during which the member
continues to participate in the work supplementation
program.''.
SEC. 104. EFFECTIVE DATE; REGULATIONS.
(a) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this title shall take effect on October 1,
1994.
(2) State option for early applicability.--If a State
formally notifies the Secretary of Health and Human Services of
its desire to operate a program under section 402(a)(19) and
part F of title IV of the Social Security Act (as amended by
this title), during any period which begins after the date of
the enactment of this Act and ends on September 30, 1994, with
respect to 1 or more groups of individuals selected by the
State who are eligible for aid under the State plan approved
under section 402 of the Social Security Act, and makes such
changes in the plan as are required in order to so operate the
program (except that, in lieu of the definition contained in
section 402(a)(19)(I)(i) of the Social Security Act, there is
substituted a definition which describes such group or groups)
then--
(A) section 402(a)(19)(I) of the Social Security
Act (with such substituted definition) shall apply to
the State during the period; and
(B) section 403(o)(4)(B) of the Social Security Act
shall be applied to the State for the first 12 months
of such period by substituting ``85 percent'' for ``the
greater of 70 percent or the Federal medical assistance
percentage (as defined in section 1118 in the case of a
State to which section 1108 applies, or as defined in
section 1905(b) in the case of any other State)''.
(b) Regulations.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Health and Human Services shall
prescribe such regulations as may be necessary to enable States to
establish and operate programs pursuant to the amendments made by this
title.
TITLE II--PATERNTIY ESTABLISHMENT
SEC. 201. REDUCTION OR DENIAL OF AFDC FOR CHILDREN WHOSE PATERNITY IS
NOT ESTABLISHED.
(a) Families Applying for AFDC.--
(1) In general.--Section 402(a) of the Social Security Act
(42 U.S.C. 602(a)) is amended--
(A) by striking ``and'' at the end of paragraph
(44);
(B) by striking the period at the end of paragraph
(45) and inserting ``; and''; and
(C) by inserting after paragraph (45) the
following:
``(46) unless the State has enacted a law exempting itself
from the application of this paragraph, provide that--
``(A) except as provided in subparagraph (B), aid
under the State plan shall not be payable to a family
applying for such aid with respect to a dependent child
whose paternity has not been established, unless--
``(i) the child was conceived as a result
of rape or incest; or
``(ii) the State determines that efforts to
establish such paternity would result in
physical danger to the relative claiming such
aid;
``(B) if the paternity of a dependent child has not
been established, the relative claiming such aid
alleges that any of not more than 3 named individuals
may be the father of the child and provides the address
of each of the named individuals or of the immediate
relatives of each of the named individuals, and the
State has not disproved the allegation, then--
``(i) aid under the State plan shall be
payable to the family in the amount payable
family whose size is determined without regard
to the dependent child; and
``(ii) the entire family shall be eligible
for medical assistance under the State plan
approved under title XIX; and
``(C) the relative claiming such aid shall have the
burden of proving any allegation of paternity of a
dependent child by an individual who is deceased, in
accordance with procedures established by the State in
consultation with the Secretary.''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on October 1, 1993, and shall apply to
payments under part A of title IV of the Social Security Act
for calendar quarters beginning on or after such date.
(b) All Families.--
(1) In general.--Section 402(a)(46) of such Act (42 U.S.C.
602(a)(46)), as added by subsection (a) of this section, is
amended by striking ``applying for such aid''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 1994, and shall apply to
payments under part A of title IV of the Social Security Act
for calendar quarters beginning on or after such date.
SEC. 202. TEENS RECEIVING AFDC REQUIRED TO LIVE AT HOME.
Section 402(a)(43) of the Social Security Act (42 U.S.C.
602(a)(43)) is amended--
(1) by striking ``at the option of the State,''; and
(2) by striking ``18'' and inserting ``19''.
SEC. 203. EARLIER PATERNITY ESTABLISHMENT EFFORTS BY STATES.
(a) In General.--Section 466(a)(5)(C) of the Social Security Act
(42 U.S.C. 666(a)(5)(C)) is amended by redesignating clauses (i) and
(ii) as clauses (ii) and (iii) and by inserting before clause (ii) (as
so redesignated) the following: ``(i) a requirement that, as soon as an
officer or employee of the State becomes aware, in the performance of
official duties, of a pregnant, unmarried individual, the officer or
employee (I) inform the individual, orally and in writing, that she
will be ineligible for aid under the State plan under part A unless she
informs the State of the identity of the prospective father and, after
the child is born, cooperates in establishing the paternity of the
child, and (II) encourage the individual to urge the prospective father
to acknowledge paternity,''.
(b) Conforming Amendments.--Section 466(a)(5) of such Act (42
U.S.C. 666(a)(5)) is amended in each of subparagraphs (D) and (E) by
striking ``(C)(ii)'' and inserting ``(C)(iii)''.
(c) Sense of the Congress.--The Congress encourages the States to
develop procedures in public hospitals and clinics to facilitate the
acknowledgement of paternity.
SEC. 204. INCREASE IN PATERNITY ESTABLISHMENT PERCENTAGE.
Section 452(g)(1) of the Social Security Act (42 U.S.C. 652(g)(1))
is amended by striking all that follows ``--'' and inserting the
following:
``(A) 90 percent;
``(B) for a State with a paternity establishment percentage
of not less than 50 percent but less than 90 percent for such
fiscal year, the paternity establishment percentage of the
State for the immediately preceding fiscal year plus 6
percentage points; or
``(C) for a State with a paternity establishment percentage
of less than 50 percent for such fiscal year, the paternity
establishment percentage of the State for the immediately
preceding fiscal year plus 10 percentage points.''.
SEC. 205. EFFECTIVE DATE.
Except as provided in section 201, the amendments made by this
title shall take effect on October 1, 1993, and shall apply to payments
under part A of title IV of the Social Security Act for calendar
quarters ending beginning on or after such date.
TITLE III--EXPANSION OF STATUTORY FLEXIBILITY OF STATES
SEC. 301. OPTION TO CONVERT AFDC INTO A BLOCK GRANT PROGRAM.
Section 403 of the Social Security Act (42 U.S.C. 603) is amended
by inserting after subsection (b) the following:
``(c)(1) Any State may elect to receive payments under this
subsection in lieu of receiving payments under the other subsections of
this section.
``(2) If a State makes an election under paragraph (1), then, in
lieu of any payment under any other subsection of this section, the
Secretary shall make payments to the State under this subsection for
each fiscal year in an amount equal to 103 percent of the total amount
to which the State was entitled under this section for fiscal year
1992, subject to paragraph (5).
``(3) Each State to which an amount is paid under paragraph (2) for
a fiscal year shall expend the amount to carry out any program
established by the State to provide benefits to needy families with
dependent children.
``(4) Within 3 months after the end of each fiscal year, each State
that has made an election under paragraph (1) shall submit to the
Secretary a report that accounts for all expenditures of amounts paid
to the State under this subsection for the fiscal year.
``(5) The Secretary shall reduce by 20 percent the amount that
would otherwise be payable to a State under this subsection for a
fiscal year if the Secretary finds that the State has expended any
amount provided under this subsection for any purpose other than to
carry out a program of cash benefits to needy families with children.
``(6) The regulations issued with respect to State plans and the
operation of State programs under this part (other than under this
subsection) shall not apply to any State that makes an election under
paragraph (1).''.
SEC. 302. OPTION TO DENY AFDC IF EITHER PARENT IS A MINOR.
(a) In General.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)), as amended by section 201(a)(1) of this Act, is
amended--
(1) by striking ``and'' at the end of paragraph (45);
(2) by striking the period at the end of paragraph (46) and
inserting ``; and''; and
(3) by inserting after paragraph (46) the following:
``(47) unless the State has enacted a law exempting itself
from the application of this paragraph, provide that aid under
the plan shall not be payable with respect to a child if either
parent of the child is a minor (as defined by the State).''.
(b) Availability of AFDC-UP Benefits.--Section 407(b)(1)(A) of such
Act (42 U.S.C. 607(b)(1)(A)) is amended by inserting ``,
notwithstanding section 402(a)(50),'' before ``when--''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 1993, and shall apply with respect to applications
for aid under a State plan approved under part A of title IV of the
Social Security Act that are made on or after such date.
SEC. 303. OPTION TO TREAT INTERSTATE IMMIGRANTS UNDER RULES OF FORMER
STATE.
Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as
amended by sections 201(a)(1) and 302 of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (46);
(2) by striking the period at the end of paragraph (47) and
inserting ``; and''; and
(3) by inserting after paragraph (47) the following:
``(48) at the option of the State, in the case of a family
applying for aid under the State plan that has moved to the
State from another jurisdiction of the United States with a
State plan approved under this part, and has resided in the
State for less than 12 months consecutively, apply the rules
that would have been applied by such other jurisdiction if the
family had not moved from such other jurisdiction, in
determining the eligibility of the family for benefits, and the
amount of benefits payable to the family, under the State
plan.''.
SEC. 304. OPTION TO IMPOSE PENALTY FOR FAILURE TO ATTEND SCHOOL.
Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as
amended by sections 201(a)(1), 302, and 303 of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (47);
(2) by striking the period at the end of paragraph (48) and
inserting ``; and''; and
(3) by inserting after paragraph (48) the following:
``(49) at the option of the State, provide that the aid
otherwise payable under the plan to a family may be reduced by
not more than $75 per month for each parent under 21 years of
age who has not completed secondary school (or the equivalent)
and each dependent child in the family who, during the
immediately preceding month, has failed, without good cause (as
defined by the State in consultation with the Secretary), to
maintain minimum attendance (as defined by the State in
consultation with the Secretary) at an educational
institution.''.
SEC. 305. OPTION TO DENY AFDC FOR ADDITIONAL CHILDREN.
Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as
amended by sections 201(a)(1), 302, 303, and 304 of this Act, is
amended--
(1) by striking ``and'' at the end of paragraph (48);
(2) by striking the period at the end of paragraph (49) and
inserting ``; and''; and
(3) by inserting after paragraph (49) the following:
``(50) unless the State has enacted a law exempting itself
from the application of this paragraph, provide that aid under
the plan shall not be payable with respect to a child born to--
``(A) a recipient of aid under the plan; or
``(B) an individual who received such aid at any
time during the 10-month period ending with the birth
of the child.''.
SEC. 306. OPTION TO MODIFY CERTAIN AFDC INCOME DISREGARD RULES.
Section 402(a)(8)(B) of the Social Security Act (42 U.S.C.
602(a)(8)(B)) is amended--
(1) by striking ``and'' at the end of clause (i); and
(2) by adding at the end the following:
``(iii) notwithstanding clauses (ii) and (iv) of
subparagraph (A) and clause (ii) of this subparagraph,
may disregard earned income of any child or relative
receiving aid to families with dependent children, or
of any other individual (living in the same home as
such relative and child) whose needs as taken into
account in making the determination under paragraph
(7), in accordance with any combination of rules which
(as determined by the State in accordance with
regulations prescribed by the Secretary) is at least as
favorable to the recipient of such aid as the
combination of rules contained in such clauses, but not
more favorable to the recipient than a rule providing
for the disregard of the first $200 of the total of
such earned income for such month plus \1/2\ of the
remainder thereof; and''.
SEC. 307. OPTION TO PROVIDE MARRIED COUPLE TRANSITION BENEFIT.
(a) In General.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)), as amended by sections 201(a)(1), 302, 303, 304, and
305 of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (49);
(2) by striking the period at the end of paragraph (50) and
inserting ``; and''; and
(3) by inserting after paragraph (50) the following:
``(51) at the option of the State, provide that--
``(A) if a recipient of aid under the plan marries
an individual who is not a parent of a child of the
recipient and (but for this paragraph) the resulting
family would have become ineligible for such aid by
reason of the marriage, then the family shall remain
eligible for aid under the plan, in an amount equal to
50 percent of the aid payable to the recipient
immediately before the marriage, for a period
(specified by the State) of not more than 12 months,
but only for so long as the income of the family is
less than 150 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; and
``(B) if a recipient of aid under the plan marries
an individual who is not a parent of a child of the
recipient and the resulting family would (in the
absence of this subparagraph) be eligible for such aid
by reason of section 407, then the State may provide
aid to the family in accordance with section 407 or
subparagraph (A) of this paragraph, but not both.''.
(b) Applicability.--The amendments made by subsection (a) shall
apply only with respect to individuals who first become recipients of
aid under State plans approved under part A of title IV of the Social
Security Act on or after October 1, 1993.
SEC. 308. OPTION TO DISREGARD INCOME AND RESOURCES DESIGNATED FOR
EDUCATION, TRAINING, AND EMPLOYABILITY, OR RELATED TO
SELF-EMPLOYMENT.
(a) Resource Disregards.--Section 402(a)(7)(B) of the Social
Security Act (42 U.S.C. 602(a)(7)(B)) is amended--
(1) by striking ``or'' before ``(iv)''; and
(2) by inserting ``(v) at the option of the State, in the
case of a family receiving aid under the State plan (and a
family not receiving such aid but which received such aid in at
least 1 of the preceding 4 months or became ineligible for such
aid during the preceding 12 months because of excessive
earnings), any amount (determined by the State) not to exceed
$10,000 in a qualified asset account (as defined in section
406(i)) of the family, or (vi) at the option of the State, the
first $10,000 of the net worth (assets reduced by liabilities
with respect thereto) of all microenterprises (as defined in
section 406(j)(1)) owned, in whole or in part, by such child,
relative, or other individual, for a period not to exceed 2
years'' before ``; and''.
(b) Disregard of Income From Qualified Asset Accounts.--Section
402(a)(8)(A) of such Act (42 U.S.C. 602(a)(8)(A)) is amended--
(1) by striking ``and'' at the end of clause (vii); and
(2) by inserting after clause (viii) the following new
clause:
``(ix) at the option of the State, may
disregard any interest or income earned on a
qualified asset account (as defined in section
406(i)), and any qualified distribution (as
defined in section 406(i)(2)) from a qualified
asset account (as defined in section
406(i)(1)); and''.
(c) Nonrecurring Lump Sum Exempt From Lump Sum Rule.--Section
402(a)(17) of such Act (42 U.S.C. 602(a)(17)) is amended by adding at
the end the following: ``; and, at the option of the State, that this
paragraph shall not apply to earned or unearned income received in a
month on a nonrecurring basis to the extent that such income is placed
in a qualified asset account (as defined in section 406(i)) the total
amounts in which, after such placement, does not exceed $10,000;''.
(d) Only Net Profits of Microenterprise Treated as Income.--Section
402(a)(7) of such Act (42 U.S.C. 602(a)(7)), as amended by subsection
(a) of this section, is amended--
(1) by striking ``and'' at the end of subparagraph (B);
(2) by striking the semicolon at the end of subparagraph
(C) and inserting ``; and''; and
(3) by adding at the end the following:
``(D) at the option of the State, may take into
consideration as earned income of the family of which
the child is a member, only the net profits (as defined
in section 406(j)(2)) of microenterprises (as defined
in section 406(j)(1)) owned, in whole or in part, by
such child, relative, or other individual, for a period
not to exceed 2 years.''.
(e) Definitions.--Section 406 of such Act (42 U.S.C. 606) is
amended by adding at the end the following:
``(i)(1) The term `qualified asset account' means a mechanism
approved by the State (such as individual retirement accounts, escrow
accounts, or savings bonds) that allows savings of a family receiving
aid to families with dependent children to be used for qualified
distributions.
``(2) The term `qualified distribution' means a distribution from a
qualified asset account for expenses directly related to 1 or more of
the following purposes:
``(A) The attendance of a member of the family at any
education or training program.
``(B) The improvement of the employability (including self-
employment) of a member of the family (such as through the
purchase of an automobile).
``(C) The purchase of a home for the family.
``(D) A change of the family residence.
``(j)(1) The term `microenterprise' means a commercial enterprise
which has 5 or fewer employees, 1 or more of whom owns the enterprise.
``(2) The term `net profits' means, with respect to a
microenterprise, the gross receipts of the business, minus--
``(A) payments of principal or interest on a loan to the
microenterprise;
``(B) transportation expenses;
``(C) inventory costs;
``(D) expenditures to purchase capital equipment;
``(E) cash retained by the microenterprise for future use
by the business;
``(F) taxes paid by reason of the business;
``(G) if the business is covered under a policy of
insurance against loss--
``(i) the premiums paid for such insurance; and
``(ii) the losses incurred by the business that are
not reimbursed by the insurer solely by reason of the
existence of a deductible with respect to the insurance
policy;
``(H) the reasonable costs of obtaining 1 motor vehicle
necessary for the conduct of the business; and
``(I) the other expenses of the business.''.
SEC. 309. OPTION TO REQUIRE ATTENDANCE AT PARENTING AND MONEY
MANAGEMENT CLASSES, AND PRIOR APPROVAL OF ANY ACTION THAT
WOULD RESULT IN A CHANGE OF SCHOOL FOR A DEPENDENT CHILD.
(a) In General.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)), as amended by sections 201(a)(1), 302, 303, 304, 305,
and 307 of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (50);
(2) by striking the period at the end of paragraph (51) and
inserting ``; and''; and
(3) by inserting after paragraph (51) the following:
``(52) at the option of the State, provide that, as a
condition of receiving aid under the State plan, the receipient
must attend parenting and money management classes, and must
receive the permission of the State agency before taking any
action that would require a change in the educational
institution attended by a dependent child of the recipient.''.
SEC. 310. EFFECTIVE DATE.
The amendments made by this title shall take effect on October 1,
1993, and shall apply to payments under part A of title IV of the
Social Security Act for calendar quarters beginning on or after such
date.
TITLE IV--EXPANSION OF STATE AND LOCAL FLEXIBILITY
SEC. 401. INTERAGENCY WAIVER REQUEST BOARD.
(a) Establishment and Purpose.--In order to provide a focal point
within the Federal Government for the development and coordination of
waiver requests designed to improve opportunities for low-income
individuals and families, there is established an Interagency Waiver
Request Board.
(b) Membership.--
(1) Permanent members.--The Board shall consist of 9
permanent members, as follows:
(A) The Secretary of Agriculture (or the designee
of the Secretary).
(B) The Secretary of Health and Human Services (or
the designee of the Secretary).
(C) The Secretary of Housing and Urban Development
(or the designee of the Secretary).
(D) The Secretary of Labor (or the designee of the
Secretary).
(E) The Secretary of Education (or the designee of
the Secretary).
(F) The Attorney General of the United States (or
the designee of the Attorney General).
(G) The Secretary of the Interior (or the designee
of the Secretary).
(H) The Director of the Office of Management and
Budget (or the designee of the Director).
(I) 1 individual appointed by the President.
(2) Limited purpose members.--
(A) In general.--With respect to an application
submitted under this title, the Board shall include the
head of each department or agency (or the designee of
the head) having responsibility for the administration
of a program included in the assistance plan contained
in the application.
(B) Board of directors of the legal services
corporation.--The Board of Directors of the Legal
Services Corporation is deemed to be the head of the
department or agency having responsibility for the
administration of the program of legal assistance to
eligible clients and other programs under the Legal
Services Corporation Act (42 U.S.C. 2996 et seq.).
(c) Chairperson.--The member of the Board appointed under
subsection (b)(1)(I) shall serve as Chairperson of the Board.
(d) Vacancies.--A vacancy in the position of Chairman shall be
filled in the manner in which the original appointment was made.
(e) No Additional Compensation.--The members of the Board may not
be provided additional pay, allowances, or benefits by reason of their
service on the Board.
(f) Powers.--
(1) Assistance of other federal entities.--A member of the
Board shall detail to the Chairperson, on a nonreimbursable
basis, such officers and employees of the department or agency
headed by the member, and shall make available to the
Chairperson such assistance, as the Chairperson may require to
carry out the activities of the Chairperson.
(2) Use of united states mails.--The Chairperson may use
the United States mails in the same manner and under the same
conditions as other departments and agencies of the United
States.
(3) Acceptance of gifts, bequests, and devises.--The
Chairperson may accept, use, and dispose of gifts, bequests, or
devises of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the
Chairperson. Gifts, bequests, or devises of money and proceeds
from sales of other property received as gifts, bequests, or
devises shall be deposited in the Treasury and shall be
available for disbursement upon order of the Chairperson.
(g) Procedure.--
(1) Meetings.--The Board shall meet not less than twice
annually at the call of the Chairperson, or of at least 3
permanent members.
(2) Notice of decisions.--The Chairperson shall provide the
Board with advance notice of any action that the Chairperson
intends to take under this title.
(3) Power of board majority to overrule chairperson.--
Notwithstanding any other provision of this title, a majority
of the members of the Board with respect to a matter may
overrule any decision or nullify any action of the Chairperson
under this title with respect to the matter.
(h) Annual Reports.--The Chairperson shall transmit annually to the
Congress a report containing a detailed statement of the activities of
the Board during the year covered by the report.
SEC. 402. APPLICATION TO IMPLEMENT ASSISTANCE PLANS.
(a) In General.--Any entity that is receiving or is eligible to
receive funds or other assistance under an eligible Federal program and
desires to reform any number of such programs may submit to the
Chairperson an application that contains the following:
(1) Assistance plan.--An assistance plan that sets forth
the following:
(A) Geographic area.--The geographic area to which
the plan applies and the rationale for so defining the
area.
(B) Recipients.--The particular groups of
individuals, by age, service needs, economic
circumstances, or other defining factors, who are to
receive services and benefits under the plan.
(C) Objectives and performance criteria.--Specific
objectives and criteria for measuring levels of
performance, a description of how such objectives and
levels of performance are expected to be achieved, a
description of how such criteria are to be used to
measure performance, and a system for the comprehensive
evaluation of the impact of the plan on participants,
the community, and program costs.
(D) Covered programs.--The eligible Federal
programs through which assistance is to be improved in
accordance with the plan, and the specific benefits
that are to be provided under the plan pursuant to the
program or programs, including criteria for determining
eligibility for benefits under the plan, the services
available, the amounts and form (such as cash, in-kind
contributions, or financial instruments) of non-service
benefits.
(E) Sources of non-federal funds.--A description of
the sources of all non-Federal funds that are to be
used to carry out the program or programs referred to
in subparagraph (D).
(F) Fiscal control and accountability.--Fiscal
control and related accountability procedures that are
to apply under the plan.
(G) Consent of qualified organizations.--Written
consent from each qualified organization for which
consent is required under section 403(e)(2)(B).
(H) Approval of affected state and local public
entities.--A written statement, from each State or
local public entity to which the Federal funds or
assistance would otherwise be provided under the
program or programs, that the entity approves of the
proposal and will cooperate in the implementation of
the proposal by the applicant.
(2) Assurances.--
(A) Provision of plan to affected organs of
government in the state.--Assurances that a copy of the
plan has been provided to all affected organs of
government in the geographic area referred to in
paragraph (1)(A).
(B) Consultation with public-private partnership
committee.--Assurances that a committee established
under section 405 has participated in the development
of the plan.
(3) Request for authority to implement plan.--A request
that the Chairperson authorize the applicant to implement the
plan, and waive the application of any Federal statutory or
regulatory requirement to the extent necessary to enable such
implementation.
(4) Other information.--Any other information the
Chairperson may require to approve the application.
(b) Option to Submit Streamlined Application to Implement
Assistance Plan Reforming 3 or Fewer Programs.--Any entity that is
receiving or is eligible to receive funds or other assistance under an
eligible Federal program and desires to reform 3 or fewer such programs
may submit to the Chairperson an application that contains the
following:
(1) Assistance plan.--An assistance plan that sets forth
the eligible Federal programs through which assistance is to be
improved in accordance with the plan.
(2) Approval of affected entities.--A written statement,
from each non-Federal officer or entity to which the Federal
funds or assistance would otherwise be provided (either
directly or through intervening levels of grantees or other
recipients) under the program or programs, that such other
officer or entity approves of the plan and will cooperate in
the implementation of the plan by the entity.
(3) Provisions of law to be waived.--A list of the
provisions of law or regulation which prevent the entity from
implementing the plan.
(4) Request for authority to implement plan.--A request
that the Chairperson authorize the applicant to implement the
plan, and waive the application of any Federal statutory or
regulatory requirement to the extent necessary to enable such
implementation.
SEC. 403. REVIEW AND APPROVAL OF APPLICATIONS; WAIVERS.
(a) Review.--Upon receipt of an application submitted in accordance
with section 402, the Chairperson shall--
(1) approve or disapprove the application within 90 days
after such receipt;
(2) notify the applicant in writing of such approval or
disapproval; and
(3) if the application is disapproved, include in the
notice of disapproval a written justification of the reasons
therefor.
(b) Conditional Approval.--The Chairperson may condition approval
of such an application on the acceptance by the applicant, and by any
parties whose consent or approval is required under section 402, of
specified modifications to the application.
(c) Approval.--
(1) Requirements.--The Chairperson may approve such an
application, subject to paragraph (2), if the Chairperson
determines that--
(A) the implementation of the assistance plan
contained in the application will improve the
effectiveness and efficiency of providing benefits
under the covered program or programs included in the
plan, by reducing administrative rigidity, duplication,
and unnecessary expenditures;
(B) the applicant has adequately considered, and
the application appropriately addresses, the effects
that the administration of each covered program
included in the plan will have on the administration of
any other such program;
(C) the applicant has or is developing data bases,
planning, and evaluation processes that are adequate
for implementing the plan;
(D) implementation of the plan will adequately
achieve the purposes of this title and of such covered
program or programs; and
(E) the plan is adequate to ensure that individuals
and families that receive benefits under the covered
program or programs included in the plan will continue
to receive benefits that meet the needs intended to be
met under the program or programs.
(2) Limitations.--The Chairperson may not approve such an
application if--
(A) implementation of the assistance plan contained
in the application would result in an increase in the
total amount of obligations or outlays of discretionary
appropriations or direct spending under the covered
program or programs included in the plan, over the
amounts of such obligations and outlays that would
occur under the program or programs without
implementation of the plan; or
(B) if the plan applies to assistance to a
qualified organization under an eligible Federal
program, the qualified organization does not consent in
writing to the receipt of such assistance in accordance
with the plan.
(3) Implementation period.--In approving such an
application, the Chairperson shall specify the period during
which the assistance plan contained in the application may be
implemented.
(d) Waivers.--
(1) In general.--Subject to this subsection, the
Chairperson may waive any requirement applicable under Federal
law to the administration of, or provision of benefits under,
any covered program included in an application approved under
this title, if the waiver is reasonably necessary for the
implementation of the assistance plan contained in the approved
application.
(2) Funding limitation.--This subsection shall not be
construed to authorize the Chairperson to waive the application
to any entity of a provision of law or regulation applicable to
a program if the waiver would result in net payments by the
Federal Government to the entity under the program for a fiscal
year in excess of the net payments which would otherwise be so
made to the entity.
(3) Civil rights laws excepted.--This subsection shall not
be construed to authorize the Chairperson to waive any
requirement established by statute or regulation under--
(A) title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.);
(B) section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 701 et seq.);
(C) title IX of the Education Amendments of 1972
(86 Stat. 373 et seq.);
(D) the Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.); or
(E) the Americans With Disabilities Act of 1990.
SEC. 404. IMPLEMENTATION OF ASSISTANCE PLANS; EVALUATIONS.
(a) In General.--Notwithstanding any other provision of law,
benefits under any covered program included in an application approved
under this title shall be paid and administered in the manner specified
in the approved application.
(b) Evaluations.--
(1) In general.--Any entity whose application is approved
under this title shall, in accordance with regulations issued
by the Chairperson--
(A) submit such reports on, and cooperate in such
audits of, the implementation of the assistance plan
contained in the application; and
(B) periodically evaluate the effects that
implementation of the plan has had on--
(i) individuals who receive benefits under
a covered program included in the plan;
(ii) communities where such individuals
live; and
(iii) costs of administering the covered
program or programs included in the plan.
(2) Annual reports.--Not later than 90 days after the end
of the 1-year period beginning on the date the application of
an entity is approved under this title, and annually
thereafter, the entity shall submit to the Chairperson a report
on the principal activities and achievements under the
assistance plan contained in the application, during the period
covered by the report, and, if the application was submitted
under section 402(a), the report shall compare those
achievements to the objectives and performance criteria
included in the plan pursuant to section 402(a)(1)(C).
(c) Final Report.--Not later than 45 days after the end of the
period for which the Chairperson has initially authorized an entity to
implement an assistance plan, or at any time that the entity determines
that the plan has demonstrated its worth and proven to be a superior
way to provide benefits under the covered program or programs included
in the plan, the entity shall submit to the Chairperson a final report
on such implementation, including a full evaluation of the successes
and shortcomings of the plan and the effects of such implementation on
individuals who receive benefits under such program or programs.
(d) Extension of Plans.--The Chairperson may extend, for such
period as may be appropriate, the period for which an entity may
implement an approved assistance plan, based on the report of the
entity under subsection (c).
(e) Suspension and Termination.--
(1) In general.--The Chairperson may require an entity to
suspend or terminate implementation of part or all of an
assistance plan under--
(A) any approved application under this title if
the Chairperson finds that the applicant has failed to
carry out a covered program in accordance with any
applicable provision of law or regulation; or
(B) an approved application that was submitted
under section 402(a), if, after consultation with the
head of each Federal agency responsible for
administering a covered program included in the
approved application, the Chairperson determines that
the objectives and performance criteria included in the
plan pursuant to section 402(a)(1)(C) have not been
met.
(2) Timing.--In requiring the implementation of an
assistance plan to be terminated under paragraph (1), the
Chairperson shall allow a reasonable period of time for
appropriate Federal, State, and local agencies, and qualified
organizations to resume administration of the covered program
or programs included in the application that contains the plan.
SEC. 405. PUBLIC-PRIVATE PARTNERSHIP COMMITTEES.
(a) Establishment.--An entity desiring to submit an application
under section 402(a) shall establish a Public-Private Partnership
Committee in accordance with this section.
(b) Functions.--A Public-Private Partnership Committee shall advise
an entity in the development and implementation of an assistance plan,
including with respect to--
(1) conducting public hearings;
(2) representing the interest of low-income individuals and
families; and
(3) reviewing and commenting on all community policies,
programs, and actions under the plan which affect low-income
individuals and families, with the purpose of assuring maximum
coordination and responsiveness of the plan in providing
benefits under the plan to those individuals and families.
(c) Membership.--The membership of a Public-Private Partnership
Committee shall--
(1) consist of--
(A) low-income individuals, who shall--
(i) comprise at least \1/3\ of the
membership; and
(ii) include minority individuals who are
participants or who qualify to participate in
eligible Federal programs;
(B) representatives of low-income individuals and
families;
(C) persons with leadership experience in the
private and voluntary sectors;
(D) local elected officials; and
(E) the general public; and
(2) include individuals and representatives of community
and business organizations who will help to enhance the
leadership role of the entity in developing an assistance plan.
SEC. 406. DEFINITIONS.
As used in this title:
(1) Assistance plan.--The term ``assistance plan'' means a
plan for improving the provision of assistance under 1 or more
eligible Federal programs.
(2) Board.--The term ``Board'' means the Interagency Waiver
Request Board established by section 401.
(3) Chairperson.--The term ``Chairperson'' means the
Chairperson of the Board.
(4) Covered program.--The term ``covered program'' means,
with respect to an assistance plan, the eligible Federal
programs included in the plan.
(5) Eligible federal program.--The term ``eligible Federal
program'' means any Federal program which, directly or
indirectly, provides cash assistance to individuals, or under
which assistance is available for--
(A) education;
(B) employment training;
(C) health;
(D) housing;
(E) nutrition; or
(F) other social services.
(6) Qualified organization.--The term ``qualified
organization'' means any private, not-for-profit organization
that is exempt from taxation under section 501(c)(3) of the
Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)).
(7) State.--
(A) In general.--The term ``State'' means the 50
States, the District of Columbia, Puerto Rico, American
Samoa, Guam, and the Virgin Islands.
(B) Indian tribes.--In the case of an eligible
Federal program under which assistance is provided with
respect to an Indian tribe, the Indian tribal
organization is deemed to be a State.
SEC. 407. REPORTS.
(a) In General.--The Comptroller General of the United States shall
submit to the Congress 2 reports that--
(1) describe the extent to which assistance plans have been
implemented in accordance with this title;
(2) evaluate the effectiveness of covered Federal
assistance programs included in such plans; and
(3) include recommendations with respect to whether to
continue activities under this title.
(b) Timing.--The Comptroller General shall submit a report under
subsection (a) not later than 3 years after the date of the enactment
of this Act, and another such report not later than 6 years after such
date of enactment.
SEC. 408. SUNSET.
Any authority provided under this title shall expire 7 years after
the date of the enactment of this Act.
TITLE V--CHILD SUPPORT ENFORCEMENT
SEC. 501. NATIONAL REPORTING OF INFORMATION RELATING TO CHILD SUPPORT
WITH RESPECT TO CERTAIN EMPLOYEES.
(a) Modified W-4 Reporting.--
(1) Establishment of reporting system.--The Secretary of
the Treasury, in consultation with the Secretary of Labor,
shall establish a system for the reporting of information
relating to child support obligations of employees, that meets
the requirements of this subsection.
(2) Employee obligations.--
(A) Employees subject to child support wage
withholding.--The system shall require each employee
who owes a qualified child support obligation to
indicate on a W-4 form that the employee is otherwise
required to file with the employer--
(i) the existence of the
obligation; and
(ii) the amount of the obligation;
(iii) the name and address of the
person to whom the obligation is owed;
and
(iv) whether health care insurance
is available through the employer to
the family of the employee.
(B) Employees in designated industries.--The system
shall require each employee, who is employed in a State
in an industry that the State has designated pursuant
to section 466(a)(12)(A) of the Social Security Act as
one with respect to which universal employment
reporting would improve child support enforcement in a
cost-effective manner, to file with the employer a W-4
form indicating--
(i) whether the employee owes a qualified
child support obligation; and
(ii) if so--
(I) the amount of the obligation;
(II) the name and address of the
person to whom the obligation is owed;
and
(III) whether health care insurance
is available through the employer to
the family of the employee.
(C) One-time updating of w-4 information of all
employees.--The system shall require each employee to
file with the employer, during a period that the State
in which the employee is employed has prescribed
pursuant to section 466(a)(12)(B) of the Social
Security Act, a W-4 form indicating--
(i) whether the employee owes a qualified
child support obligation; and
(ii) if so--
(I) the amount of each such
obligation;
(II) the name and address of each
person to whom the obligation is owed;
and
(III) whether health care insurance
is available through the employer to
the family of the employee.
(D) Qualified child support obligation.--As used in
this subsection, the term ``qualified child support
obligation'' means a legal obligation to provide child
support (as defined in section 462(b) of the Social
Security Act) which is to be collected, in whole or in
part, through wage withholding pursuant to an order
issued by a court of any State or an order of an
administrative process established under the law of any
State.
(3) Employer obligations.--Each employer who receives
information from an employee pursuant to paragraph (2) of this
subsection shall--
(A) within 10 days after such receipt, forward the
information to the agency, designated pursuant to
section 466(a)(11)(A) of the Social Security Act, of
the State in which the employee is employed by the
employer; and
(B) withhold from the income of the employee the
amount indicated on the W-4 form (or, if the employer
has received from the State a notice that the amount is
incorrect, such other amount as the State indicates is
to be so withheld), in the manner described in section
466(b)(6)(A)(i) of such Act.
(4) New hires in certain states excepted.--This subsection
shall not apply with respect to the employment in a State of
any employee not described in paragraph (2)(B) if the Secretary
of Health and Human Services determines that the State--
(A) requires all employers in the State to report
to the State all basic employment information on new
hires;
(B) requires such information to be compared with
information in the State registry of child support
orders established pursuant to section 466(a)(13) of
the Social Security Act and with requests from other
States for information on the location of noncustodial
parents;
(C) maintains updated employment information on all
individuals employed in the State in a manner that
enables the State to effectively respond to such
requests; and
(D) requires all employers in the State, on receipt
of a notice from the State that an employee owes a
qualified child support obligation, to begin
withholding from the income of the employee the amount
of the obligation, in the manner described in section
466(b)(6)(A)(i) of the Social Security Act.
(b) State Role.--Section 466(a) of the Social Security Act (42
U.S.C. 666(a)) is amended by inserting after paragraph (10) the
following:
``(11) Procedures under which the State shall designate a
public agency to--
``(A) maintain the information provided by
employers pursuant to section 501(a)(3) of the
Responsibility and Empowerment Support Program
Providing Employment, Child Care, and Training Act in
accordance with regulations prescribed by the Secretary
which allow other States easy access to the information
through the Interstate Locate Network established under
section 453(g) of this Act; and
``(B) determine whether or not the information
described in subparagraph (A) of this paragraph
provided by an employer with respect to an employee is
accurate by comparing the information with the
information on file in the State registry of child
support orders established pursuant to section
466(a)(13) of this Act, and--
``(i) if the information is confirmed by
the information on file in the registry, notify
any individual who resides in the State and to
whom the employee has a legal obligation to
provide child support (or such individual's
designee) of such information;
``(ii) if the information is not so
confirmed due to a discrepancy between the
information and a copy of a child support order
in the registry, notify the employer of the
discrepancy and the correct information using
the order developed under section 452(a)(12) of
this Act; or
``(iii) if the information is not so
confirmed because the registry does not contain
a copy of an order that imposes a child support
obligation on the employee, search the child
support order registries established pursuant
to section 466(a)(13) of this Act of the States
in which the obligation is most likely to have
been imposed.
``(12) Procedures under which the State shall--
``(A) designate at least 1 industry, for purposes
of section 501(a)(2)(B) of the Responsibility and
Empowerment Support Program Providing Employment, Child
Care, and Training Act, as an industry with respect to
which universal employment reporting would improve
child support enforcement in a cost-effective manner;
``(B) prescribe the period during which individuals
employed in the State are to be required to file with
their employers updated W-4 forms as required by
section 501(a)(2)(C) of such Act; and
``(C) impose a fine--
``(i) against any individual employed in
the State who is required by section 501(a)(2)
of such Act to file a W-4 form with any
employer of the individual and fails to do so;
and
``(ii) in an amount equal to the average
cost of noncompliance (as determined by the
State) or $25, whichever is the lesser, on any
employer who fails to comply with section
501(a)(3) of such Act for any month.''.
SEC. 502. STATE INFORMATION SYSTEMS.
(a) State Registries of Child Support Orders.--Section 466(a) of
the Social Security Act (42 U.S.C. 666(a)), as amended by section
501(b) of this Act, is amended by inserting after paragraph (12) the
following:
``(13) Procedures requiring the State agency designated
pursuant to paragraph (16) to maintain a child support order
registry, which must include--
``(A) a copy of each child support order being
enforced under the State plan; and
``(B) at the request of an individual who has or is
owed a legal obligation to provide child support
(within the meaning of section 462(b)), a copy of the
order that imposes the obligation.''.
(b) Accessibility of State Information Related to Child Support.--
(1) To other states.--Section 466(a) of the Social Security
Act (42 U.S.C. 666(a)), as amended by section 501(b)(1) of this
Act and subsection (a) of this section, is amended by inserting
after paragraph (13) the following:
``(14)(A) Procedures requiring all records of the State to
which the agency administering the plan has access and
determines may be useful in locating noncustodial parents or
collecting child support to be made accessible to any agency of
any State for such purpose, through the Interstate Locate
Network established under section 453(g), in accordance with
safeguards established to prevent release of information if the
release might jeopardize the safety of any individual.
``(B) The State may impose reasonable fees for access to
State records provided pursuant to subparagraph (A).''.
(2) To private parties.--Section 466(a) of such Act (42
U.S.C. 666(a)), as amended by section 501(b)(1) of this Act,
subsection (a) of this section, and paragraph (1) of this
subsection, is amended by inserting after paragraph (14) the
following:
``(15) Procedures under which--
``(A) noncustodial parents (and their designees)
must be given access to State parent locator services,
to aid in the establishment or enforcement of
visitation rights, in accordance with safeguards
established to prevent release of information if the
release might jeopardize the safety of any individual;
and
``(B) custodial parents (and their designees) must
be given access to State parent locator services to aid
in the establishment and enforcement of child support
obligations against noncustodial parents.''.
SEC. 503. NATIONAL INFORMATION SYSTEMS.
(a) Expansion of Parent Locator Service.--Section 453 of the Social
Security Act (42 U.S.C. 653) is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' after ``transmit'';
(B) by striking ``enforcing support obligations
against such parent'' and inserting ``establishing
parentage, establishing, modifying, and enforcing child
support obligations, and (2) to any noncustodial parent
(or the designee of the noncustodial parent)
information as to the whereabouts of the custodial
parent when such information is to be used to locate
such parent for the purpose of enforcing child
visitation rights and obligations'';
(2) in subsection (b), by inserting after the 2nd sentence
the following: ``Information shall not be disclosed to a
custodial parent or a noncustodial parent if the disclosure
would jeopardize the safety of the child or either of such
parents.'';
(3) in subsection (d), by inserting ``and such reasonable
fees'' after ``such documents''; and
(4) by striking ``absent parent'' each place such term
appears and inserting ``noncustodial parent''.
(b) Establishment of Interstate Locate Network.--Section 453 of
such Act (42 U.S.C. 653) is amended by adding at the end the following:
``(g) The Secretary shall establish an Interstate Locate Network
linking the Parent Locator Service and all State databases relating to
child support enforcement, which--
``(1) any State may use to--
``(A) locate any noncustodial parent who has a
legal obligation to provide child support (as defined
in section 462(b)), with respect to whom such an
obligation is being sought, or against whom visitation
rights are being enforced, by accessing the records of
any Federal, State, or other source of locate or child
support information, directly from one computer system
to another; or
``(B) direct a locate request to another State or a
Federal agency, or, if the source of locate information
is unknown, broadcast such a request to selected States
or to all States;
``(2) allows on-line and batch processing of locate
requests, with on-line access restricted to cases in which the
information is needed immediately (such as for court
appearances), and batch processing used to `troll' data bases
to locate individuals or update information periodically; and
``(3) enables courts to access information on the Network
through a computer terminal located in the court.''.
(c) Information Sharing Regulations.--Section 452(a) of such Act
(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 the 2nd sentence
of paragraph (10) and inserting ``; and''; and
(3) by inserting after paragraph (10) the following:
``(11) prescribe regulations governing information sharing
among States, within States, and between the States and the
Parent Locator Service--
``(A) to ensure that a State may broadcast a
request for information for the purpose of locating a
noncustodial parent or collecting child support, and
receive a response to the request in not more than 48
hours; and
``(B) to require a State that is attempting to
locate a noncustodial parent--
``(i) to compare all outstanding cases with
information in the employment records of the
State;
``(ii) if, after complying with clause (i),
the State is unable to locate the noncustodial
parent, then--
``(I) if the State has reason to
believe that the noncustodial parent is
in another particular State or States,
to request such State or States for
information on the noncustodial parent;
and
``(II) if not, to broadcast all
States a request for such
information.''.
SEC. 504. INCOME WITHHOLDING.
(a) State Role.--Section 466(a) of the Social Security Act (42
U.S.C. 666(a)), as amended by sections 501(b)(1) and 502 of this Act,
is amended by inserting after paragraph (15) the following:
``(16) Procedures under which the State shall designate a
public agency to--
``(A) collect child support pursuant to the State
plan; and
``(B) distribute, in accordance with section 457,
and with all due deliberate speed, the amounts
collected as child support.
``(17) Procedures under which the State shall require any
court of the State that establishes or modifies a child support
order to transmit a copy of the order to the State agency
designated pursuant to paragraph (18), unless the order does
not provide for income withholding, and the noncustodial parent
and the custodial parent object.
``(18) Procedures under which the State shall designate a
State agency to use the uniform income withholding order
developed under section 452(a)(12) to notify the agency
administering the State plan, any employer of an individual
required to pay child support through income withholding
pursuant to an order issued or modified in the State, and the
agency designated pursuant to paragraph (16) of this subsection
of each State in which such an employer is located, of--
``(A) the identity of the individual;
``(B) the amount to be withheld; and
``(C) the State agency to which the withheld amount
is to be paid.''.
(b) Uniform Withholding Order.--Section 452(a) of such Act (42
U.S.C. 652(a)), as amended by section 503(c) of this Act, 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:
``(12) develop a uniform order to be used in all cases in
which income is to be withheld for the payment of child
support, which shall contain the name of the individual whose
income is to be withheld, the number of children covered by the
order, and the individual or State to whom the withheld income
is to be paid, and be generic to allow for the service of the
order on all sources of income.''.
(c) States Required to Have Laws Requiring Employers to Withhold
Child Support Pursuant to Uniform Income Withholding Orders.--Section
466(b) of such Act (42 U.S.C. 666(b)(1)) is amended--
(1) in paragraph (1), by inserting ``and in the case of
each individual employed in the State,'' before ``so much'';
(2) in paragraph (6)(C), by inserting ``of this paragraph
and paragraph (9)(B) of this subsection'' after ``(A)''; and
(3) in paragraph (9)--
(A) by inserting ``(A)'' after ``(9)''; and
(B) by adding at the end the following:
``(B)(i) Any individual or entity engaged in commerce, as a
condition of doing business in the State, on receipt of an
income withholding order developed under section 452(a)(12)
with respect to an employee of the individual or entity, that
is regular on its face and has been issued by a court or State
agency of any State, shall--
``(I) immediately provide a copy of the order to
the employee subject to the order; and
``(II) within 10 days after receipt of the order,
withhold income from the employee in the manner
described in paragraph (6)(A)(i) of this subsection,
notwithstanding paragraph (4) of this subsection.
``(ii) Such an order may be served on the individual or
entity directly or by first-class mail.
``(iii) Any individual or entity who complies with such an
order may not be held liable for wrongful withholding of income
from the employee subject to the order.
``(iv) The State shall impose a civil fine in an amount
equal to the average cost of noncompliance (as determined by
the State) or $25, whichever is the lesser, on any such
individual or entity who receives such an order with respect to
an employee of the individual or entity, and who, due to
negligence, fails to comply with the order within 10 days after
receipt.
``(v) Any individual or entity who imposes a fee for the
administration of child support income withholding and related
reporting of information shall not collect more than the
average cost of such administration, as determined by the
State.''.
SEC. 505. UNIFORM TERMS IN ORDERS.
(a) In General.--Section 452(a) of the Social Security Act (42
U.S.C. 652(a)), as amended by sections 503(c) and 504(b) of this Act,
is amended--
(1) in paragraph (11), by striking ``and'' after the
semicolon;
(2) in paragraph (12), by striking the period at the end of
the 2nd sentence and inserting ``; and''; and
(3) by adding at the end the following:
``(13) develop, in conjunction with State executive and
judicial organizations, a uniform abstract of a child support
order, for use by all State courts to record, with respect to
each child support order in the child support order registry
established under section 466(a)(12)--
``(A) the date support payments are to begin under
the order;
``(B) the circumstances upon which support payments
are to end under the order;
``(C) the amount of child support payable pursuant
to the order expressed as a sum certain to be paid on a
monthly basis, arrearages expressed as a sum certain as
of a certain date, and any payback schedule for the
arrearages;
``(D) whether the order awards support in a lump
sum (nonallocated) or per child;
``(E) if the award is in a lump sum, the event
causing a change in the support award and the amount of
any change;
``(F) other expenses covered by the order;
``(G) the names of the parents subject to the
order;
``(H) the social security account numbers of the
parents;
``(I) the name, date of birth, and social security
account number (if any) of each child covered by the
order;
``(K) the identification (FIPS code, name, and
address) of the court that issued the order;
``(L) any information on health care support
required by the order; and
``(M) the party to contact if additional
information is obtained.''.
SEC. 506. WORK REQUIREMENT FOR NONCUSTODIAL PARENTS WITH CHILD SUPPORT
ARREARAGES.
(a) In General.--Section 466(a) of the Social Security Act (42
U.S.C. 666(a)), as amended by sections 501(b)(1), 502, and 504(a) of
this Act, is amended by inserting after paragraph (18) the following:
``(19) Procedures requiring that--
``(A) upon a determination by the State agency
referred to in section 402(a)(3) that the noncustodial
parent of any child who is applying for or receiving
aid under the State plan approved under part A owes
child support (as defined in section 462(b)) with
respect to the child, is in arrears in the payment of
such support in an amount that is not less than twice
the amount of the monthly child support obligation, is
not incapacitated, and is not subject to a court-
approved plan for payment of such arrearage, the State
agency referred to in section 402(a)(3) send to the
noncustodial parent a letter notifying the noncustodial
parent that the noncustodial parent--
``(i) is required to pay child support with
respect to the child; and
``(ii) is subject to fines and other
penalties for failure to pay the full amount of
such support in a timely manner; and
``(B) if, by the end of the 30-day period that
begins with the date the letter is sent pursuant to
subparagraph (A), the amount of the arrearage has not
decreased by at least a percentage amount specified by
the State agency, the State seek a court order
requiring the noncustodial parent--
``(i) to participate in a job search
program established by the State, for not less
than 2 weeks and not more than 4 weeks; and
``(ii) if, by the end of the 30-day period
beginning on the date the order is entered, the
amount of the arrearage has not decreased by at
least a percentage amount specified by the
State agency, to participate in a work program
established by the State, for not less than 35
hours per week (or, if the program also
requires job search, for not less than 30 hours
per week).''.
TITLE VI--WELFARE RESTRICTIONS FOR ALIENS
SEC. 601. INELIGIBILITY OF ALIENS FOR PUBLIC WELFARE ASSISTANCE.
(a) In General.--Notwithstanding any other provision of law and
except as provided in subsections (b) and (c), no alien shall be
eligible for any program referred to in subsection (d).
(b) Exceptions.--
(1) Refugee exception.--Subsection (a) shall not apply to
an alien admitted to the United States as a refugee under
section 207 of the Immigration and Nationality Act until 6
years after the date of such alien's arrival into the United
States.
(2) Aged exception.--Subsection (a) shall not apply to an
alien who--
(A) has been lawfully admitted to the United States
for permanent residence;
(B) is over 75 years of age; and
(C) has resided in the United States for at least 5
years.
(3) Current resident exception.--Subsection (a) shall not
apply to the eligibility of an alien for a program referred to
in subsection (d) until 1 year after the date of the enactment
of this Act if, on such date of enactment, the alien is
residing in the United States and is eligible for the program.
(c) Programs For Which Aliens May Be Eligible.--The limitation
under subsection (a) shall not apply to the following programs: Medical
assistance with respect to emergency services (as defined for purposes
of section 1916(a)(2)(D) of the Social Security Act).
(d) Programs For Which Aliens Are Ineligible.--The programs
referred to in this subsection are the following:
(1) The program of medical assistance under title XIX of
the Social Security Act, except emergency services as provided
in subsection (c).
(2) The Maternal and Child Health Services Block Grant
Program under title V of the Social Security Act.
(3) The program established in section 330 of the Public
Health Service Act (relating to community health centers).
(4) The program established in section 1001 of the Public
Health Service Act (relating to family planning methods and
services).
(5) The program established in section 329 of the Public
Health Service Act (relating to migrant health centers).
(6) The program of aid and services to needy families with
children under part A of title IV of the Social Security Act.
(7) The child welfare services program under part B of
title IV of the Social Security Act.
(8) The supplemental security income program under title
XVI of the Social Security Act.
(9) The program of foster care and adoption assistance
under part E of title IV of the Social Security Act.
(10) The food stamp program, as defined in section 3(h) of
the Food Stamp Act of 1977 (7 U.S.C. 2012(h)).
(11) The school lunch program carried out under the
National School Lunch Act (42 U.S.C. 1751 et seq.).
(12) The special supplemental food program for women,
infants, and children carried out under section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786).
(13) The nutrition programs carried out under part C of
title III of the Older Americans Act of 1965 (42 U.S.C. 3030e
et seq.).
(14) The school breakfast program carried out under section
4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
(15) The child and adult care food program carried out
under section 17 of the National School Lunch Act (42 U.S.C.
1766).
(16) The Emergency Food Assistance Act of 1983 (7 U.S.C.
612c note).
(17) The summer food service program for children carried
out under section 13 of the National School Lunch Act (42
U.S.C. 1761).
(18) The commodity supplemental food program authorized by
section 4(a) of the Agriculture and Consumer Protection Act of
1973 (7 U.S.C. 612c note).
(19) The special milk program carried out under section 3
of the Child Nutrition Act of 1966 (42 U.S.C. 1772).
(20) The program of rental assistance on behalf of low-
income families provided under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f).
(21) The program of assistance to public housing under
title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.).
(22) The loan program under section 502 of the Housing Act
of 1949 (42 U.S.C. 1472).
(23) The program of interest reduction payments pursuant to
contracts entered into by the Secretary of Housing and Urban
Development under section 236 of the National Housing Act (12
U.S.C. 1715z-1).
(24) The program of loans for rental and cooperative
housing under section 515 of the Housing Act of 1949 (42 U.S.C.
1485).
(25) The program of rental assistance payments pursuant to
contracts entered into under section 521(a)(2)(A) of the
Housing Act of 1949 (42 U.S.C. 1490a(a)(2)(A)).
(26) The program of assistance payments on behalf of
homeowners under section 235 of the National Housing Act (12
U.S.C. 1715z).
(27) The program of rent supplement payments on behalf of
qualified tenants pursuant to contracts entered into under
section 101 of the Housing and Urban Development Act of 1965
(12 U.S.C. 1701s).
(28) The loan and grant programs under section 504 of the
Housing Act of 1949 (42 U.S.C. 1474) for repairs and
improvements to rural dwellings.
(29) The loan and assistance programs under sections 514
and 516 of the Housing Act of 1949 (42 U.S.C. 1484, 1486) for
housing for farm labor.
(30) The program of grants for preservation and
rehabilitation of housing under section 533 of the Housing Act
of 1949 (42 U.S.C. 1490m).
(31) The program of grants and loans for mutual and self-
help housing and technical assistance under section 523 of the
Housing Act of 1949 (42 U.S.C. 1490c).
(32) The program of site loans under section 524 of the
Housing Act of 1949 (42 U.S.C. 1490d).
(33) The program under part B of title IV of the Higher
Education Act of 1965.
(34) The program under subpart 1 of part A of title IV of
the Higher Education Act of 1965.
(35) The program under part C of title IV of the Higher
Education Act of 1965.
(36) The program under subpart 3 of part A of title IV of
the Higher Education Act of 1965.
(37) The program under part E of title IV of the Higher
Education Act of 1965.
(38) The program under subpart 4 of part A of title IV of
the Higher Education Act of 1965.
(39) The program under title IX of the Higher Education Act
of 1965.
(40) The program under subpart 5 of part A of title IV of
the Higher Education Act of 1965.
(41) The programs established in sections 338A and 338B of
the Public Health Service Act and the programs established in
part A of title VII of such Act (relating to loans and
scholarships for education in the health professions).
(42) The program established in section 317(j)(1) of the
Public Health Service Act (relating to grants for immunizations
against vaccine-preventable diseases).
(43) The program established in section 317A of the Public
Health Service Act (relating to grants for screening,
referrals, and education regarding lead poisoning in infants
and children).
(44) The program established in part A of title XIX of the
Public Health Service Act (relating to block grants for
preventive health and health services).
(45) The programs established in subparts I and II of part
B of title XIX of the Public Health Service Act.
(46)(A) The program of training for disadvantaged adults
and youth under part A of title II of the Job Training
Partnership Act (29 U.S.C. 1601 et seq.), as in effect before
July 1, 1993.
(B)(i) The program of training for disadvantaged adults
under part A of title II of the Job Training Partnership Act
(29 U.S.C. 1601 et seq.), as in effect on and after July 1,
1993.
(ii) The program of training for disadvantaged youth under
part C of title II of the Job Training Partnership Act (29
U.S.C. 1641 et seq.), as in effect on and after July 1, 1993.
(47) The Job Corps program under part B of title IV of the
Job Training Partnership Act (29 U.S.C. 1692 et seq.).
(48) The summer youth employment and training programs
under part B of title II of the Job Training Partnership Act
(29 U.S.C. 1630 et seq.).
(49) The programs carried out under the Older American
Community Service Employment Act (42 U.S.C. 3001 et seq.).
(50) The programs under title III of the Older Americans
Act of 1965.
(51) The programs carried out under part B of title II of
the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5011-
5012).
(52) The programs carried out under part C of title II of
the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5013).
(53) The program under the Low-Income Energy Assistance Act
of 1981 (42 U.S.C. 8621 et seq.).
(54) The weatherization assistance program under title IV
of the Energy Conservation and Production Act (42 U.S.C. 6851).
(55) The program of block grants to States for social
services under title XX of the Social Security Act.
(56) The programs carried out under the Community Services
Block Grant Act (42 U.S.C. 9901 et seq.).
(57) The program of legal assistance to eligible clients
and other programs under the Legal Services Corporation Act (42
U.S.C. 2996 et seq.).
(58) The program for emergency food and shelter grants
under title III of the Stewart B. McKinney Homeless Assistance
Act (42 U.S.C. 11331 et seq.).
(59) The programs carried out under the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.).
(60) A State program for providing child care under section
402(i) of the Social Security Act.
(61) The program of State legalization impact-assistance
grants (SLIAG) under section 204 of the Immigration Reform and
Control Act of 1986.
(e) Notification of Aliens.--Any Federal agency that administers a
program referred to in subsection (d) shall, directly or through the
States, notify each alien receiving benefits under the program whose
eligibility for the program is or will be terminated by reason of this
section.
SEC. 602. STATE AFDC AGENCIES REQUIRED TO PROVIDE INFORMATION ON
ILLEGAL ALIENS TO THE IMMIGRATION AND NATURALIZATION
SERVICE.
Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as
amended by sections 201(a)(1), 302, 303, 304, 305, 307, and 309(a) of
this Act, is amended--
(1) by striking ``and'' at the end of paragraph (51);
(2) by striking the period at the end of paragraph (52) and
inserting ``; and''; and
(3) by inserting after paragraph (52) the following:
``(53) require the State agency to provide to the
Immigration and Naturalization Service the name, address, and
other identifying information that the agency has with respect
to any individual unlawfully in the United States any of whose
children is a citizen of the United States.''.
TITLE VII--CONTROLLING WELFARE COSTS
SEC. 701. CAPS ON CERTAIN MEANS-TESTED PROGRAMS.
(a) Content of Budget Resolutions.--Section 301(a) of the
Congressional Budget Act of 1974 is amended by adding at the end the
following new sentence: ``The concurrent resolution shall also include
an aggregate outlay figure for all covered means-tested programs and an
outlay limit for each such means-tested program that restricts the
aggregate rate of growth, adjusted for inflation, for all such means-
tested programs to 2 percent per fiscal year. Inflation shall be
measured by the average of the estimated consumer price index for all
urban consumers for a fiscal year divided by the average index for the
prior fiscal year.''.
(b) Committee Allocations.--(1) Section 602(a)(1)(A) of the
Congressional Budget Act of 1974 is amended by striking ``and'' at the
end of clause (ii), by striking the semicolon and inserting ``, and''
at the end of clause (iii), and by adding after clause (iii) the
following new clause:
``(iv) total outlays for all covered means-
tested programs (as defined by section 253A of
the Balanced Budget and Emergency Deficit
Control Act of 1985);''.
(2) Section 602(a)(2) of the Congressional Budget Act of 1974 is
amended by striking ``and'' at the end of subparagraph (B), by
inserting ``and'' at the end of subparagraph (C), and by adding after
subparagraph (C) the following new subparagraph:
``(D) total outlays for all covered means-tested
programs (as defined by section 253A of the Balanced
Budget and Emergency Deficit Control Act of 1985);''.
(c) President's Budget.--Section 1105(a) of title 31, United States
Code, is amended by adding at the end the following new paragraph:
``(29) an aggregate outlay figure for all covered means-
tested programs (as defined by section 253A of the Balanced
Budget and Emergency Deficit Control Act of 1985) and an outlay
limit for each such means-tested program that restricts the
aggregate rate of growth, adjusted for inflation, for all such
means-tested programs to 2 percent per fiscal year.''.
SEC. 702. SEQUESTRATION OF FEDERAL SPENDING TO ENFORCE SPENDING CAPS ON
MEANS-TESTED PROGRAMS.
(a) Sequestration To Enforce Spending Caps on Means-Tested
Programs.--Part C of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended by adding after section 253 the following new
section:
``SEC. 253A. SEQUESTRATION TO ENFORCE SPENDING CAPS ON MEANS-TESTED
PROGRAMS.
``(a) Sequestration.--
``(1) In general.--Within 15 days after Congress adjourns
to end a session, and on the same day as a sequestration (if
any) under sections 251, 252, and 253, but after any
sequestration required by those sections, following the
procedures set forth under section 252 there shall be a
sequestration of all accounts for covered means-tested programs
to achieve reductions in the fiscal year 1994, 1995, 1996,
1997, or 1998 outlays, as the case may be, sufficient to
eliminate a budget-year breach (if any) of the aggregate
spending cap on covered means-tested programs for that fiscal
year as calculated under paragraph (2).
``(2) Computation of aggregate spending cap on covered
means-tested programs.--Within 5 days after Congress adjourns
to end a session, OMB shall calculate an aggregate outlay
figure for all covered means-tested programs and an outlay
limit for each such means-tested program that restricts the
aggregate rate of growth, adjusted for inflation, for all such
means-tested programs to 2 percent per fiscal year. Inflation
shall be measured by the average of the estimated consumer
price index for all urban consumers for a fiscal year divided
by the average index for the prior fiscal year.''.
``(b) Applicability.--Following the procedures set forth under
section 252, each account for a covered means-tested program shall be
reduced by a dollar amount calculated by multiplying the level of
budgetary resources in that account at that time by the uniform
percentage necessary to carry out subsection (a).
``(c) Definition.--As used in this section, the term `covered
means-tested program' refers to the following:
``(1) Payments to States under the program of aid to
families with dependent children under part A of title IV of
the Social Security Act.
``(2) The program of supplemental security income benefits
under title XVI of the Social Security Act.
``(3) The food stamp program.
``(4) The rental assistance program under section 8 of the
United States Housing Act of 1937.
``(5) Assistance for public housing under the United States
Housing Act of 1937.
``(6) The earned income tax credit.
``(d) OMB Report.--On the date specified in subsection (a), OMB
shall issue a special sequestration report that sets forth the
sequestration percentage necessary to achieve the required reduction in
accounts under this section.
``(e) Presidential Order.--On the date specified in subsection (a),
the President shall issue an order fully implementing without change
all sequestrations required by the OMB calculations set forth in that
report. This order shall be effective on issuance.''.
(b) Scorekeeping.--None of the changes in receipts and direct
spending resulting from this Act shall be entered on the paygo
scorecard under section 252 of the Balanced Budget and Emergency
Deficit Control Act of 1985 and none of the savings in fiscal year 1994
discretionary outlays made by this Act shall be counted for the
purposes of section 251 of that Act.
TITLE VIII--CONSOLIDATED BLOCK GRANT TO STATES FOR FOOD ASSISTANCE
SEC. 801. FOOD ASSISTANCE BLOCK GRANT PROGRAM.
(a) Authority To Make Block Grants.--The Secretary of Agriculture
shall make grants in accordance with this section to States to provide
food assistance to individuals who are economically disadvantaged and
to individuals who are members of economically disadvantaged families.
(b) Distribution of Funds.--
(1) Allotments to states.--Subject to paragraph (2), the
funds appropriated to carry out this section for any fiscal
year shall be allotted among the States as follows:
(A) Of the aggregate amount to be distributed under
this section, .21 percent shall be reserved for grants
to Guam, the Virgin Islands of the United States,
American Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall Islands,
the Federated States of Micronesia, Palau.
(B) Of the aggregate amount to be distributed under
this section, .24 percent shall be reserved for grants
to tribal organizations that have governmental
jurisdiction over geographically defined areas and
shall be allocated equitably by the Secretary among
such organizations.
(C) The remainder of such aggregate amount shall be
allocated among the remaining States. The amount
allocated to each of the remaining States shall bear
the same proportion to such remainder as the number of
resident individuals in such State who are economically
disadvantaged separately or as members of economically
disadvantaged families bears to the aggregate number of
resident individuals in all such remaining States who
are economically disadvantaged separately or as members
of economically disadvantaged families.
(2) Limitation.--After September 30, 1995, the aggregate
amount allotted under paragraph (1) for any fiscal year shall
not exceed the aggregate amount allotted under paragraph (1)
for the then preceding fiscal year adjusted by the Secretary to
reflect--
(A) the percentage change in population during the
1-year period ending June 30 of such preceding fiscal
year, determined on the basis of the most current
information available in the Current Population
Reports, P25 series (as adjusted to include overseas
members of the armed forces of the United States),
published by the Bureau of the Census, and
(B) the percentage change in the food at home
component of the Consumer Price Index For All Urban
Consumers for the 1-year period ending May 31 of such
preceding fiscal year,
(b) Eligibility To Receive Grants.--To be eligible to receive a
grant in the amount allotted to a State for a fiscal year, such State
shall submit to the Secretary an application in such form, and
containing such information and assurances as the Secretary may require
by rule, including--
(1) an assurance that such grant will be expended by the
State to provide food assistance to resident individuals in
such State who are economically disadvantaged separately or as
members of economically disadvantaged families,
(2) not more than 5 percent of such grant will be expended
by the State for administrative costs incurred to provide
assistance under this section,
(3) not less than 12 percent of each grant received from
funds allotted for fiscal years 1995 through 1999 will be
expended to provide food assistance and nutrition education to
pregnant women, postpartum women, breastfeeding women, infants,
and young children, and
(4) not less than 20 percent of each grant received from
funds allotted for fiscal years 1995 through 1999 will be
expended to provide--
(A) nonprofit school breakfast programs for
students from economically disadvantaged families,
(B) milk in nonprofit schools and in nonprofit
nursery schools, child care centers, settlement houses,
summer camps, and similar institutions devoted to the
care and training of children, to children from
economically disadvantaged families,
(C) nonprofit school lunch programs for students
from economically disadvantaged families,
(D) expanded food service programs in institutions
providing child care for children from economically
disadvantaged families, and
(E) summer food service programs carried out by
nonprofit food authorities, local governments,
nonprofit higher education insititutions participating
in the National Youth Sports Program, and residential
nonprofit summer camps, to provide meals to children
from economically disadvantaged families.
(c) Authority To Reduce Certain Grants Requirements.--At the
request of a State for a particular fiscal year, the Secretary may
reduce a percentage requirement specified in paragraph (3) or (4) of
subsection (b) if the Secretary determines that the purpose described
in such paragraph will be adequately carried out by such State without
expending the full amount of funds required by such paragraph.
(d) Authorization of Appropriations.--(1) There are authorized to
be appropriated to carry out this section $35,600,000,000 for fiscal
year 1995 and such sums as may be necessary for fiscal years 1996,
1997, 1998, and 1999.
(2) For the purpose of affording adequate notice of funding
available under this section, an appropriation to carry out this
section is authorized to be included in an appropriation Act for the
fiscal year preceding the fiscal year for which such appropriation is
available for obligation.
SEC. 802. AVAILABILITY OF FEDERAL COUPON SYSTEM TO STATES.
(a) Issuance, Purchase, and Use of Coupons.--The Secretary shall
issue, and make available for purchase by States, coupons for the
retail purchase of food from retail food stores that are approved in
accordance with subsection (b). Coupons issued, purchased, and used as
provided in this section shall be redeemable at face value by the
Secretary through the facilities of the Treasury of the United States.
The purchase price of each coupon issued under this subsection shall be
the face value of such coupon.
(b) Approval of Retail Food Stores and Wholesale Food Concerns.--
(1) Regulations issued pursuant to this section shall provide for the
submission of applications for approval by retail food stores and
wholesale food concerns which desire to be authorized to accept and
redeem coupons under this section. In determining the qualifications of
applicants, there shall be considered among such other factors as may
be appropriate, the following:
(A) The nature and extent of the food business conducted by
the applicant.
(B) The volume of coupon business which may reasonably be
expected to be conducted by the applicant food store or
wholesale food concern.
(C) The business integrity and reputation of the applicant.
Approval of an applicant shall be evidenced by the issuance to such
applicant of a nontransferable certificate of approval. The Secretary
is authorized to issue regulations providing for a periodic
reauthorization of retail food stores and wholesale food concerns.
(2) A buyer or transferee (other than a bona fide buyer or
transferee) of a retail food store or wholesale food concern that has
been disqualified under subsection (d) may not accept or redeem coupons
until the Secretary receives full payment of any penalty imposed on
such store or concern.
(3) Regulations issued pursuant to this section shall require an
applicant retail food store or wholesale food concern to submit
information which will permit a determination to be made as to whether
such applicant qualifies, or continues to qualify, for approval under
this section or the regulations issued pursuant to this section.
Regulations issued pursuant to this section shall provide for
safeguards which limit the use or disclosure of information obtained
under the authority granted by this subsection to purposes directly
connected with administration and enforcement of this section or the
regulations issued pursuant to this section, except that such
information may be disclosed to and used by States that purchase such
coupons.
(4) Any retail food store or wholesale food concern which has
failed upon application to receive approval to participate in the food
stamp program may obtain a hearing on such refusal as provided in
subsection (f).
(c) Redemption of Coupons.--Regulations issued under this section
shall provide for the redemption of coupons accepted by retail food
stores through approved wholesale food concerns or through financial
institutions which are insured by the Federal Deposit Insurance
Corporation, or which are insured under the Federal Credit Union Act
(12 U.S.C. 1751 et seq.) and have retail food stores or wholesale food
concerns in their field of membership, with the cooperation of the
Treasury Department, except that retail food stores defined in section
804(9)(D) shall be authorized to redeem their members' food coupons
prior to receipt by the members of the food so purchased, and publicly
operated community mental health centers or private nonprofit
organizations or institutions which serve meals to narcotics addicts or
alcoholics in drug addiction or alcoholic treatment and rehabilitation
programs, public and private nonprofit shelters that prepare and serve
meals for battered women and children, public or private nonprofit
group living arrangements that serve meals to disabled or blind
residents, and public or private nonprofit establishments, or public or
private nonprofit shelters that feed individuals who do not reside in
permanent dwellings and individuals who have no fixed mailing addresses
shall not be authorized to redeem coupons through financial
institutions which are insured by the Federal Deposit Insurance
Corporation or the Federal Credit Union Act. No financial institution
may impose on or collect from a retail food store a fee or other charge
for the redemption of coupons that are submitted to the financial
institution in a manner consistent with the requirements, other than
any requirements relating to cancellation of coupons, for the
presentation of coupons by financial institutions to the Federal
Reserve banks.
(d) Civil Money Penalties and Disqualification of Retail Food
Stores and Wholesale Food Concerns.--(1) Any approved retail food store
or wholesale food concern may be disqualified for a specified period of
time from further participation in the coupon program under this
section, or subjected to a civil money penalty of up to $10,000 for
each violation if the Secretary determines that its disqualification
would cause hardship to individuals who receive coupons, on a finding,
made as specified in the regulations, that such store or concern has
violated this section or the regulations issued pursuant to this
section.
(2) Disqualification under paragraph (1) shall be--
(A) for a reasonable period of time, of no less than 6
months nor more than 5 years, upon the first occasion of
disqualification;
(B) for a reasonable period of time, of no less than 12
months nor more than 10 years, upon the second occasion of
disqualification; and
(C) permanent upon--
(i) the third occasion of disqualification,
(ii) the first occasion or any subsequent occasion
of a disqualification based on the purchase of coupons
or trafficking in coupons by a retail food store or
wholesale food concern, except that the Secretary shall
have the discretion to impose a civil money penalty of
up to $20,000 for each violation (except that the
amount of civil money penalties imposed for violations
occurring during a single investigation may not exceed
$40,000) in lieu of disqualification under this
subparagraph, for such purchase of coupons or
trafficking in coupons that constitutes a violation of
this section or the regulations issued pursuant to this
section, if the Secretary determines that there is
substantial evidence (including evidence that neither
the ownership nor management of the store or food
concern was aware of, approved, benefited from, or was
involved in the conduct or approval of the violation)
that such store or food concern had an effective policy
and program in effect to prevent violations of this
section and such regulations, or
(iii) a finding of the sale of firearms,
ammunition, explosives, or controlled substance (as
defined in section 802 of title 21, United States Code)
for coupons, except that the Secretary shall have the
discretion to impose a civil money penalty of up to
$20,000 for each violation (except that the amount of
civil money penalties imposed for violations occurring
during a single investigation may not exceed $40,000)
in lieu of disqualification under this subparagraph if
the Secretary determines that there is substantial
evidence (including evidence that neither the ownership
nor management of the store or food concern was aware
of, approved, benefited from, or was involved in the
conduct or approval of the violation) that the store or
food concern had an effective policy and program in
effect to prevent violations of this section.
(3) The action of disqualification or the imposition of a civil
money penalty shall be subject to review as provided in subsection (f).
(4) As a condition of authorization to accept and redeem coupons
issued under subsection (a), the Secretary may require a retail food
store or wholesale food concern which has been disqualified or
subjected to a civil penalty pursuant to paragraph (1) to furnish a
bond to cover the value of coupons which such store or concern may in
the future accept and redeem in violation of this section. The
Secretary shall, by regulation, prescribe the amount, terms, and
conditions of such bond. If the Secretary finds that such store or
concern has accepted and redeemed coupons in violation of this section
after furnishing such bond, such store or concern shall forfeit to the
Secretary an amount of such bond which is equal to the value of coupons
accepted and redeemed by such store or concern in violation of this
section. Such store or concern may obtain a hearing on such forfeiture
pursuant to subsection (f).
(5)(A) In the event any retail food store or wholesale food concern
that has been disqualified under paragraph (1) is sold or the ownership
thereof is otherwise transferred to a purchaser or transferee, the
person or persons who sell or otherwise transfer ownership of the
retail food store or wholesale food concern shall be subjected to a
civil money penalty in an amount established by the Secretary through
regulations to reflect that portion of the disqualification period that
has not yet expired. If the retail food store or wholesale food concern
has been disqualified permanently, the civil money penalty shall be
double the penalty for a ten-year disqualification period, as
calculated under regulations issued by the Secretary. The
disqualification period imposed under paragraph (2) shall continue in
effect as to the person or persons who sell or otherwise transfer
ownership of the retail food store or wholesale food concern
notwithstanding the imposition of a civil money penalty under this
paragraph.
(B) At any time after a civil money penalty imposed under
subparagraph (A) has become final under subsection (f)(1), the
Secretary may request the Attorney General to institute a civil action
against the person or persons subject to the penalty in a district
court of the United States for any district in which such person or
persons are found, reside, or transact business to collect the penalty
and such court shall have jurisdiction to hear and decide such action.
In such action, the validity and amount of such penalty shall not be
subject to review.
(C) The Secretary may impose a fine against any retail food store
or wholesale food concern that accepts coupons that are not accompanied
by the corresponding book cover, other than the denomination of coupons
used for making change as specified in regulations issued under this
section. The amount of any such fine shall be established by the
Secretary and may be assessed and collected in accordance with
regulations issued under this section separately or in combination with
any fiscal claim established by the Secretary. The Attorney General of
the United States may institute judicial action in any court of
competent jurisdiction against the store or concern to collect the
fine.
(6) The Secretary may impose a fine against any person not approved
by the Secretary to accept and redeem coupons who violates this section
or a regulation issued under this section, including violations
concerning the acceptance of coupons. The amount of any such fine shall
be established by the Secretary and may be assessed and collected in
accordance with regulations issued under this section separately or in
combination with any fiscal claim established by the Secretary. The
Attorney General of the United States may institute judicial action in
any court of competent jurisdiction against the person to collect the
fine.
(e) Collection and Disposition of Claims.--The Secretary shall have
the power to determine the amount of and settle and adjust any claim
and to compromise or deny all or part of any such claim or claims
arising under this section or the regulations issued pursuant to this
section, including, but not limited to, claims arising from fraudulent
and nonfraudulent overissuances to recipients, including the power to
waive claims if the Secretary determines that to do so would serve the
purposes of this section. Such powers with respect to claims against
recipients may be delegated by the Secretary to State agencies.
(f) Administrative and Judicial Review.--(1) Whenever--
(A) an application of a retail food store or wholesale food
concern for approval to accept and redeem coupons issued under
subsection (a) is denied pursuant to this section,
(B) a retail food store or wholesale food concern is
disqualified or subjected to a civil money penalty under
subsection (d),
(C) all or part of any claim of a retail food store or
wholesale food concern is denied under subsection (e), or
(D) a claim against a State is stated pursuant to
subsection (e),
notice of such administrative action shall be issued to the retail food
store, wholesale food concern, or State involved. Such notice shall be
delivered by certified mail or personal service. If such store,
concern, or State is aggrieved by such action, it may, in accordance
with regulations promulgated under this section, within 10 days of the
date of delivery of such notice, file a written request for an
opportunity to submit information in support of its position to such
person or persons as the regulations may designate. If such a request
is not made or if such store, concern, or State fails to submit
information in support of its position after filing a request, the
administrative determination shall be final. If such request is made by
such store, concern, or State such information as may be submitted by
such store, concern, or State as well as such other information as may
be available, shall be reviewed by the person or persons designated by
the Secretary, who shall, subject to the right of judicial review
hereinafter provided, make a determination which shall be final and
which shall take effect 30 days after the date of the delivery or
service of such final notice of determination. If such store, concern,
or State feels aggrieved by such final determination, it may obtain
judicial review thereof by filing a complaint against the United States
in the United States court for the district in which it resides or is
engaged in business, or, in the case of a retail food store or
wholesale food concern, in any court of record of the State having
competent jurisdiction, within 30 days after the date of delivery or
service of the final notice of determination upon it, requesting the
court to set aside such determination. The copy of the summons and
complaint required to be delivered to the official or agency whose
order is being attacked shall be sent to the Secretary or such person
or persons as the Secretary may designate to receive service of
process. The suit in the United States district court or State court
shall be a trial de novo by the court in which the court shall
determine the validity of the questioned administrative action in
issue. If the court determines that such administrative action is
invalid, it shall enter such judgment or order as it determines is in
accordance with the law and the evidence. During the pendency of such
judicial review, or any appeal therefrom, the administrative action
under review shall be and remain in full force and effect, unless on
application to the court on not less than ten days' notice, and after
hearing thereon and a consideration by the court of the applicant's
likelihood of prevailing on the merits and of irreparable injury, the
court temporarily stays such administrative action pending disposition
of such trial or appeal.
(g) Violations and Enforcement.--(1) Subject to paragraph (2),
whoever knowingly uses, transfers, acquires, alters, or possesses
coupons in any manner contrary to this section or the regulations
issued pursuant to this section shall, if such coupons are of a value
of $5,000 or more, be guilty of a felony and shall be fined not more
than $250,000 or imprisoned for not more than 20 years, or both, and
shall, if such coupons are of a value of $100 or more, but less than
$5,000, be guilty of a felony and shall, upon the first conviction
thereof, be fined not more than $10,000 or imprisoned for not more than
5 years, or both, and, upon the second and any subsequent conviction
thereof, shall be imprisoned for not less than 6 months nor more than 5
years and may also be fined not more than $10,000 or, if such coupons
are of a value of less than $100, shall be guilty of a misdemeanor,
and, upon the first conviction thereof, shall be fined not more than
$1,000 or imprisoned for not more than one year, or both, and upon the
second and any subsequent conviction thereof, shall be imprisoned for
not more than one year and may also be fined not more than $1,000.
(2) In the case of any individual convicted of an offense under
paragraph (1), the court may permit such individual to perform work
approved by the court for the purpose of providing restitution for
losses incurred by the United States and the State as a result of the
offense for which such individual was convicted. If the court permits
such individual to perform such work and such individual agrees
thereto, the court shall withhold the imposition of the sentence on the
condition that such individual perform the assigned work. Upon the
successful completion of the assigned work the court may suspend such
sentence.
(3) Whoever presents, or causes to be presented, coupons for
payment or redemption of the value of $100 or more, knowing the same to
have been received, transferred, or used in any manner in violation of
this section or the regulations issued under to this section, shall be
guilty of a felony and, upon the first conviction thereof, shall be
fined not more than $20,000 or imprisoned for not more than 5 years, or
both, and, upon the second and any subsequent conviction thereof, shall
be imprisoned for not less than one year nor more than 5 years and may
also be fined not more than $20,000, or, if such coupons are of a value
of less than $100, shall be guilty of a misdemeanor and, upon the first
conviction thereof, shall be fined not more than $1,000 or imprisoned
for not more than one year, or both, and, upon the second and any
subsequent conviction thereof, shall be imprisoned for not more than
one year and may also be fined not more than $1,000.
SEC. 803. AUTHORITY TO SELL FEDERAL SURPLUS COMMODITIES.
Notwithstanding any other provision of law, the Secretary of
Agriculture and the Commodity Credit Corporation may sell surplus
commodities and surplus foodstuffs to the States to provide food
assistance to individuals who are economically disadvantaged and to
individuals who are members of economically disadvantaged families.
SEC. 804. DEFINITIONS.
For purposes of this title--
(1) the term ``breastfeeding woman'' means women up to 1
year postpartum who are breastfeeding their infants,
(2) the term ``coupon'' means any coupon, stamp, or type of
certificate, but does not include currency,
(3) the term ``economically disadvantaged'' means an
individual or a family, as the case may be, whose income does
not exceed the most recent lower living standard income level
published by the Department of Labor,
(4) the term ``elderly or disabled individual'' means an
individual who--
(A) is 60 years of age or older,
(B)(i) receives supplemental security income
benefits under title XVI of the Social Security Act (42
U.S.C. 1381 et seq.), or Federally or State
administered supplemental benefits of the type
described in section 212(a) of Public Law 93-66 (42
U.S.C. 1382 note), or
(ii) receives Federally or State administered
supplemental assistance of the type described in
section 1616(a) of the Social Security Act (42 U.S.C.
1382e(a)), interim assistance pending receipt of
supplemental security income, disability-related
medical assistance under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.), or disability-
based State general assistance benefits, if the
Secretary determines that such benefits are conditioned
on meeting disability or blindness criteria at least as
stringent as those used under title XVI of the Social
Security Act,
(C) receives disability or blindness payments under
title I, II, X, XIV, or XVI of the Social Security Act
(42 U.S.C. 301 et seq.) or receives disability
retirement benefits from a governmental agency because
of a disability considered permanent under section
221(i) of the Social Security Act (42 U.S.C. 421(i)),
(D) is a veteran who--
(i) has a service-connected or non-service-
connected disability which is rated as total
under title 38, United States Code, or
(ii) is considered in need of regular aid
and attendance or permanently housebound under
such title,
(E) is a surviving spouse of a veteran and--
(i) is considered in need of regular aid
and attendance or permanently housebound under
title 38, United States Code, or
(ii) is entitled to compensation for a
service-connected death or pension benefits for
a non-service-connected death under title 38,
United States Code, and has a disability
considered permanent under section 221(i) of
the Social Security Act (42 U.S.C. 421(i)),
(F) is a child of a veteran and--
(i) is considered permanently incapable of
self-support under section 414 of title 38,
United States Code, or
(ii) is entitled to compensation for a
service-connected death or pension benefits for
a non-service-connected death under title 38,
United States Code, and has a disability
considered permanent under section 221(i) of
the Social Security Act (42 U.S.C. 421(i)), or
(G) is an individual receiving an annuity under
section 2(a)(1)(iv) or 2(a)(1)(v) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231a(a)(1)(iv) or
231a(a)(1)(v)), if the individual's service as an
employee under the Railroad Retirement Act of 1974,
after December 31, 1936, had been included in the term
``employment'' as defined in the Social Security Act
(42 U.S.C. 301 et seq.), and if an application for
disability benefits had been filed,
(5) the term ``food'' means, for purposes of section 3
only--
(A) any food or food product for home consumption
except alcoholic beverages, tobacco, and hot foods or
hot food products ready for immediate consumption other
than those authorized pursuant to subparagraphs (C),
(D), (E), (G), (H), and (I),
(B) seeds and plants for use in gardens to produce
food for the personal consumption of the eligible
individuals,
(C) in the case of those persons who are 60 years
of age or over or who receive supplemental security
income benefits or disability or blindness payments
under title I, II, X, XIV, or XVI of the Social
Security Act (42 U.S.C. 1381 et seq.), and their
spouses, meals prepared by and served in senior
citizens' centers, apartment buildings occupied
primarily by such persons, public or private nonprofit
establishments (eating or otherwise) that feed such
persons, private establishments that contract with the
appropriate agency of the State to offer meals for such
persons at concessional prices, and meals prepared for
and served to residents of federally subsidized housing
for the elderly,
(D) in the case of persons 60 years of age or over
and persons who are physically or mentally handicapped
or otherwise so disabled that they are unable
adequately to prepare all of their meals, meals
prepared for and delivered to them (and their spouses)
at their home by a public or private nonprofit
organization or by a private establishment that
contracts with the appropriate State agency to perform
such services at concessional prices,
(E) in the case of narcotics addicts or alcoholics,
and their children, served by drug addiction or
alcoholic treatment and rehabilitation programs, meals
prepared and served under such programs,
(F) in the case of eligible individuals living in
Alaska, equipment for procuring food by hunting and
fishing, such as nets, hooks, rods, harpoons, and
knives (but not equipment for purposes of
transportation, clothing, or shelter, and not firearms,
ammunition, and explosives) if the Secretary determines
that such individuals are located in an area of the
State where it is extremely difficult to reach stores
selling food and that such individuals depend to a
substantial extent upon hunting and fishing for
subsistence,
(G) in the case of disabled or blind recipients of
benefits under title I, II, X, XIV, or XVI of the
Social Security Act, or are individuals described in
subparagraphs (B) through (G) of paragraph (4), who are
residents in a public or private nonprofit group living
arrangement that serves no more than 16 residents and
is certified by the appropriate State agency or
agencies under regulations issued under section 1616(e)
of the Social Security Act or under standards
determined by the Secretary to be comparable to
standards implemented by appropriate State agencies
under such section (42 U.S.C. 1382e(e)), meals prepared
and served under such arrangement,
(H) in the case of women and children temporarily
residing in public or private nonprofit shelters for
battered women and children, meals prepared and served,
by such shelters, and
(I) in the case of individuals that do not reside
in permanent dwellings and individuals that have no
fixed mailing addresses, meals prepared for and served
by a public or private nonprofit establishment
(approved by an appropriate State or local agency) that
feeds such individuals and by private establishments
that contract with the appropriate agency of the State
to offer meals for such individuals at concessional
prices,
(6) the term ``infants'' means individuals under 1 year of
age,
(7) the term ``postpartum women'' means women during the
180-day period after the end of their pregnancy,
(8) the term ``pregnant women'' means women who have one or
more fetuses in utero,
(9) the term ``retail food store'' means--
(A) an establishment or recognized department
thereof or house-to-house trade route, over 50 percent
of whose food sales volume, as determined by visual
inspection, sales records, purchase records, or other
inventory or accounting recordkeeping methods that are
customary or reasonable in the retail food industry,
consists of staple food items for home preparation and
consumption, such as meat, poultry, fish, bread,
cereals, vegetables, fruits, dairy products, and the
like, but not including accessory food items, such as
coffee, tea, cocoa, carbonated and uncarbonated drinks,
candy, condiments, and spices,
(B) an establishment, organization, program, or
group living arrangement referred to in subparagraph
(C), (D), (E), (G), (H), or (I) of paragraph (5),
(C) a store purveying the hunting and fishing
equipment described in paragraph (5)(F), or
(D) any private nonprofit cooperative food
purchasing venture, including those in which the
members pay for food purchased prior to the receipt of
such food,
(10) the term ``school'' means an elementary, intermediate,
or secondary school,
(11) the term ``Secretary'' means the Secretary of
Agriculture,
(12) the term ``State'' means any of the several States,
the District of Columbia, the Commonwealth of Puerto Rico,
Guam, the Virgin Islands of the United States, American Samoa,
the Commonwealth of the Northern Mariana Islands, the Republic
of the Marshall Islands, the Federated States of Micronesia,
Palau, or a tribal organization that exercises governmental
jurisdiction over a geographically defined area,
(13) the term ``tribal organization'' has the meaning given
it in section 4(l) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b(l)), and
(14) the term ``young children'' means individuals who are
not less than 1 year of age and not more than 5 years of age.
SEC. 805. REPEALERS; AMENDMENTS.
(a) Repealers.--The following Acts are repealed:
(1) The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
(2) The Child Nutrition Act (42 U.S.C. 1771 et seq.).
(3) The National School Lunch Act (42 U.S.C. 1751 et seq.)
(4) The Emergency Food Assistance Act of 1983 (7 U.S.C.
612c note).
(5) The Hunger Prevention Act of 1988 (Public Law 100-435;
102 Stat. 1645).
(6) The Commodity Distribution Reform Act and WIC
Amendments of 1987 (Public Law 100-237; 101 Stat. 1733).
(7) The Child Nutrition and WIC Reauthorization Act of 1989
(Public Law 101-147; 103 Stat. 877).
(b) Amendments.--
(1) The Older Americans Act of 1965 (42 U.S.C. 3030a et
seq.) is amended by striking sections 303(b) and 311, and part
C of title III.
(2) Section 32 of the Act of August 24, 1935 (Public Law
320; 7 U.S.C. 612C) is amended--
(A) in the first undesignated paragraph--
(i) by striking ``30 per centum'' and
inserting ``1.5 per centum'', and
(ii) by striking ``; (2)'' and all that
follows through ``Agriculture;'', and
(B) by striking the last sentence.
(3) The Agriculture and Consumer Protection Act of 1973 (7
U.S.C. 612c note) is amended by striking sections 4 and 5.
(4) The Agriculture and Food Act of 1981 (7 U.S.C. 1431) is
amended by striking section 1114.
(5) Section 402 of the Mutual Security Act of 1954 (22
U.S.C. 1922) is amended by striking the last sentence.
(6) The Act of September 6, 1958 (Public Law 83-931; 7
U.S.C. 1431b) is amended by striking section 9.
(7) The Agricultural Act of 1965 (7 U.S.C. 1446a-1) is
amended by striking section 709.
SEC. 806. EFFECTIVE DATE; APPLICATION OF REPEALERS AND AMENDMENTS.
(a) Effective Dates.--
(1) General effective date.--Except as provided in
subsection (b), this title and the amendments made by this
title shall take effect on the date of the enactment of this
Act.
(2) Special effective date.--The repeals made by section
805 shall not take effect until the first day of the first
fiscal year for which funds are appropriated more than 180 days
in advance of such fiscal year to carry out section 801.
(b) Application of Repealers and Amendments.--The repeals and
amendments made by section 805 shall not apply with respect to--
(1) powers, duties, functions, rights, claims, penalties,
or obligations applicable to financial assistance provided
under the Acts repealed before the effective date of such
section, and
(2) administrative actions and proceedings commenced before
such date, or authorized before such date to be commenced,
under such Acts.
TITLE IX--MISCELLANEOUS
SEC. 901. AFDC RECIPIENTS REQUIRED TO UNDERGO NECESSARY SUBSTANCE ABUSE
TREATMENT AS A CONDITION OF RECEIVING AFDC.
(a) In General.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)) is amended by inserting after paragraph (34) the
following:
``(35) provide that--
``(A) as a condition of eligibility for aid under
the State plan, each applicant or recipient who the
State determines is addicted to alcohol or drugs must
be required to agree to participate, and must maintain
satisfactory participation (as determined by the
State), in an appropriate addiction treatment program
(if available), and must be required to agree to submit
to tests for the presence of alcohol or drugs, without
advance notice, during and after such participation;
and
``(B) each applicant or recipient who fails to
comply with any requirement imposed pursuant to
subparagraph (A) shall not be eligible for such aid
during the 2-year period that begins with such failure
to comply, but shall be considered to be receiving such
aid for purposes of eligibility for medical assistance
under the State plan approved under title XIX.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by subsection (a) shall take effect on the date
of the enactment of this Act, and shall apply to payments under
part A of title IV of the Social Security Act for calendar
quarters ending after such date.
(2) Delay permitted if state legislation required.--In the
case of a State plan approved under section 402(a) of the
Social Security Act which the Secretary of Health and Human
Services determines requires State legislation (other than
legislation appropriating funds) in order for the plan to meet
the additional requirement imposed by the amendment made by
subsection (a) of this section, the State plan shall not be
regarded as failing to comply with the requirements of such
section 402(a) solely on the basis of the failure of the plan
to meet such additional requirement before the end of the 2-
year period that begins with the date of the enactment of this
Act.
SEC. 902. SSI BENEFITS FOR DRUG AND ALCOHOL ADDICTS.
(a) In General.--Section 1614(a) of the Social Security Act (42
U.S.C. 1382c(a)) is amended by adding at the end the following:
``(5)(A) The Secretary shall identify all recipients of benefits
under this title by reason of disability whose disability is a result
of addiction to illegal drugs.
``(B) The Secretary shall periodically, on a random basis, test
each recipient identified under subparagraph (A) to determine whether
the recipient is using illegal drugs.
``(C) Notwithstanding any other provision of this title, any
individual who is determined under subparagraph (B) to be using illegal
drugs, or who refuses to submit to testing as provided for under
subparagraph (B), shall not be eligible for benefits under this
title.''.
(b) Representative Payee Reforms.--
(1) Authority of government agencies to become paid
representative payees.--Section 1631(a)(2)(D)(ii) of such Act
(42 U.S.C. 1383(a)(2)(D)(ii)) is amended by adding at the end
the following: ``The term `qualified organization' also
includes any government agency that meets the requirements of
items (aa) and (bb) of subclause (II).''.
(2) Maximum fee payable to representative payees.--Section
1631(a)(2)(D)(i) of such Act (42 U.S.C. 1383(a)(2)(D)(i)) is
amended by striking ``the lesser of--'' and all that follows
and inserting ``10 percent of the monthly benefit involved.''.
SEC. 903. EVALUATION OF EDUCATION AND TRAINING PROGRAMS.
(a) In General.--The Secretary of Health and Human Services shall
conduct research projects to examine the impact of education and
training programs on the ability of individuals to end participation in
the program of aid to families with dependent children under part A of
title IV of the Social Security Act, expenditures under such program,
wage rates, employment histories, and the resumption of participation
in such program of individuals who had ended such participation. The
Secretary shall collect information with respect to any individual
during a period of not less than 5 years.
(b) Special Rule.--At least 1 research project conducted under
subsection (a) shall involve the random assignment of adult recipients
of aid to families with dependent children under part A of title IV of
the Social Security Act among--
(1) a group that is not required to participate in any
special activity;
(2) a group that is required to participate in education or
job training programs; and
(3) a group that is required to participate in a job search
program, or in a job search and a work program.
SEC. 904. JOB SEARCH REQUIRED WHILE AFDC APPLICATION IS PENDING.
Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as
amended by sections 201(a)(1), 302, 303, 304, 305, 307, 309(a), and 602
of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (52);
(2) by striking the period at the end of paragraph (53) and
inserting ``; and''; and
(3) by inserting after paragraph (53) the following:
``(54) unless the State has enacted a law exempting itself
from the application of this paragraph, provide that--
``(A) each applicant for aid under the State plan
must participate in job search activities while the
application is pending; and
``(B) the State agency must reimburse the applicant
for necessary transportation and child care expenses
incurred as a result of such participation.''.
SEC. 905. FRAUD AND ADMINISTRATIVE EFFICIENCY.
(a) Demonstration Projects.--
(1) In general.--The Secretary of Health and Human Services
may conduct demonstration projects in several States to
determine whether providing benefits based on need through the
use of electronic cards and automatic teller machines would
reduce administrative costs and fraud.
(2) Report to the congress.--Within 5 years after the date
of the enactment of this Act, the Secretary shall submit to the
Congress a report that--
(A) summarizes the results of the projects; and
(B) makes recommendations with respect to whether
and how more States might be required or encouraged to
use electronic funds transfer in providing benefits
based on need.
(b) Commission.--
(1) In general.--The Secretary of Health and Human Services
(in this subsection referred to as the ``Secretary'') shall
establish a commission (in this subsection referred to as the
``Commission'') composed of heads of executive departments,
expert private individuals, and State administrators, to
determine the cost and feasibility of creating an interstate
system to compare the social security account numbers of all
recipients of aid to families with dependent children under
State plans approved under part A of title IV of the Social
Security Act, so as to identify any such recipients who are
receiving such aid from 2 or more States.
(2) Basic pay.--
(A) Rates of pay.--Except as provided in paragraph
(2), members of the Commission shall each be paid at a
rate not to exceed $200 for each day (including travel
time) during which they are engaged in the actual
performance of duties of the Commission.
(B) Prohibition of compensation of federal
employees.--Each member of the Commission who is a
full-time officer or employee of the United States may
not receive additional pay, allowances, or benefits by
reason of their service on the Commission.
(3) Travel expenses.--Each member of the Commission shall
receive travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703 of title
5, United States Code.
(4) Staff of federal agencies.--Upon request of the
Secretary, the head of any Federal department or agency may
detail, on a reimbursable basis, any of the personnel of that
department or agency to the Commission to assist it in carrying
out its duties under this subsection.
(5) Obtaining official data.--The Commission may secure
directly from any department or agency of the United States
information necessary to enable it to carry out this
subsection. Upon request of the Secretary, the head of that
department or agency shall furnish that information to the
Commission.
(6) Mails.--The Commission may use the United States mails
in the same manner and under the same conditions as other
departments and agencies of the United States.
(7) Administrative support services.--Upon request of the
Secretary, the Administrator of General Services shall provide
to the Commission, on a reimbursable basis, the administrative
support services necessary for the Commission to carry out its
responsibilities under this subsection.
(8) Report.--Within 2 years after the date of the enactment
of this Act, the Secretary shall submit to the Congress a
report that contains the findings of the Commission.
(9) Termination of commission.--The Commission shall
terminate upon submission of the report required by paragraph
(8).
SEC. 906. PUBLIC HOUSING RENT REFORM.
(a) Short Title.--This section may be cited as the ``Public Housing
Rent Reform and Empowerment Act''.
(b) Determination of Income and Rent Charges.--
(1) Exclusion from income of taxes on earnings.--Section
3(b)(5) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(5)) is amended--
(A) by redesignating subparagraphs (A) through (G)
as subparagraphs (B) through (H), respectively; and
(B) by inserting before subparagraph (B) (as so
redesignated by subparagraph (A) of this paragraph) the
following new subparagraph:
``(A) with respect only to families residing in
public housing, the amount of any Federal, State, and
local income taxes paid on earned income by members of
the family and the amount paid on earned income by
members of the family for the taxes imposed under
sections 3101 and 3201(a) of the Internal Revenue Code
of 1986;''.
(2) PHA option to exclude earned income.--Section 3(b)(5)
of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(5)) is amended by adding at the end the following new
flush sentence:
``At the option of a public housing agency, the agency may (for all
families residing in public housing administered by the agency) exclude
from consideration as income for purposes of determining any limitation
on the amount of rent paid by a family, all or part of any increases in
the earned income of a family that results from the employment of a
previously unemployed family member; except that such increases in
earned income may be excluded only during the 2-year period beginning
on the employment of the family member.''.
(3) Applicability to Indian Public Housing.--In accordance
with section 201(b)(2) of the United States Housing Act of
1937, the provisions of this subsection shall apply to public
housing developed or operated pursuant to a contract between
the Secretary and an Indian housing authority.
(c) Public Housing Authority Market Rent Demonstration.--
(1) Authority.--At the request of a public housing agency
or resident management corporation, the Secretary of Housing
and Urban Development may authorize the agency or corporation
to carry out a demonstration program under this subsection to
determine the feasibility and desirability of providing public
housing agencies and resident management corporations the
authority to establish policies for the operation, maintenance,
management, and development (including modernization) of public
housing projects administered by the agency, without regard to
the requirements under the United States Housing Act of 1937
applicable to public housing. In establishing such policies,
public housing agencies and resident management corporations
shall be subject to the provisions of any applicable State and
local laws.
(2) Required findings.--The Secretary may authorize a
public housing agency or resident management corporation to
carry out a demonstration program under this subsection only if
the Secretary determines, with respect to the particular
demonstration program, that--
(A) the program is likely to assist in promoting
the objectives of the United States Housing Act of
1937, encourage resident empowerment, and reduce
poverty in public housing by improving the means by
which economic self-sufficiency may be achieved;
(B) the program, taken as a whole, will not result
in higher costs to the Federal Government than would be
incurred absent the program;
(C) the results of the program will be evaluated
and reported to the Secretary by independent entities;
(D) no fewer very low-income families will be
assisted under the program than would otherwise have
been assisted; and
(E) the program is consistent with the Fair Housing
Act, title VI of the Civil Rights Act of 1964, section
504 of the Rehabilitation Act of 1973, and the Age
Discrimination Act of 1975.
(3) Exceptions to provisions of united states housing act
of 1937.--
(A) Mandatory.--Notwithstanding any other provision
of law, during the period of the demonstration program
(pursuant to subsection (i)) section 3(a) of the United
States Housing Act of 1937 (relating to rental amounts
for dwelling units in public housing projects),
sections 3(b) (4) and (5) of such Act (relating to
determination of income and adjusted income), and
section 16 of such Act (relating to income eligibility)
shall not apply to any public housing projects involved
in a demonstration program under this subsection or any
families residing in such projects. Each public housing
authority and resident management corporation carrying
out a demonstration program under this subsection shall
establish rents for dwelling units in projects involved
in the demonstration program at the discretion of the
agency or corporation.
(B) Discretionary.--The Secretary may exempt a
public housing agency or resident management
corporation carrying out a demonstration program under
this subsection from any other requirements of the
United States Housing Act of 1937, and modify the
requirements of such sections and other provisions with
respect to such agencies, that the Secretary determines
are not consistent with the purposes of a demonstration
program.
(4) Income eligibility.--Not less than 30 percent of the
total number of dwelling units in public housing projects
involved in a demonstration program carried out under this
subsection by a public housing agency or resident management
corporation shall be available for leasing only to very low-
income families.
(5) Effect on operating subsidies.--Notwithstanding any
requirement pursuant to section 9 of the United States Housing
Act of 1937, the amount of annual contributions provided for a
fiscal year under such section to any public housing agency or
resident management corporation carrying out a demonstration
program in such fiscal year may not exceed the amount of such
annual contributions provided under such section to the agency
or corporation for the last fiscal year concluding before the
commencement of the demonstration program by the agency or
corporation, as adjusted for inflation (as determined by the
Secretary).
(6) Treatment of families unable to pay rental charges in
public housing.--
(A) Authority to provide section 8 assistance.--
Notwithstanding any other provision of law, in
connection with carrying out a demonstration program
under this subsection a public housing agency may
provide assistance under section 8 of the United States
Housing Act of 1937 (to the extent sufficient amounts
for such assistance are available to such agency) on
behalf of any family that (A) resides in a dwelling
unit in a public housing project involved in the
demonstration program upon the commencement of the
demonstration, (B) is otherwise eligible for such
assistance, and (C) under section 3(a)(1) of such Act
would pay as rent for a dwelling unit assisted under
such section an amount that is less than the rental
charge for the public housing dwelling unit under the
demonstration program. Any such assistance provided for
such family shall be subject to the provisions of
section 3(a)(1) or 8(o) of such Act, as applicable.
(B) Use.--Such assistance may be used in connection
with the rental of a public housing dwelling unit or
any other dwelling unit eligible for rental using such
assistance.
(C) Preference.--Notwithstanding any other
provision of law, a public housing agency carrying out
a demonstration program under this subsection may give
preference in providing assistance under such section 8
to families described in subparagraph (A) of this
paragraph.
(7) Scope of demonstrations.--In authorizing public housing
agencies and resident management corporations to carry out
demonstration programs under this subsection, the Secretary
shall provide that the demonstration is carried out with
respect to one or more specific public housing projects.
(8) Number of demonstrations.--The Secretary may authorize
not more than 50 public housing agencies or resident management
corporations to carry out demonstration programs under this
subsection.
(9) Duration.--A public housing agency or resident
management corporation authorized to carry out a demonstration
program under this subsection may carry out the demonstration
for a period, determined by the agency or corporation, of not
more than 5 years.
(10) Limitation.--The number and duration of demonstration
programs authorized by the Secretary may not exceed the number
and duration necessary to achieve the objectives of this
subsection.
(11) Additional requirements.--In authorizing a
demonstration program under this subsection, the Secretary may
impose such requirements on the program as the Secretary
considers to be appropriate to further its purposes.
(12) Reports.--
(A) To secretary.--Each public housing agency and
resident management corporation carrying out a
demonstration program under this subsection shall
submit a report to the Secretary regarding the
demonstration for each year in which the demonstration
is carried out, as shall be required by the Secretary.
(B) To congress.--Not later than 6 years after the
date of the enactment of this Act, the Secretary shall
submit a report to the Congress describing and
evaluating the demonstration programs carried out under
this subsection.
(13) Definitions.--For purposes of this subsection:
(A) Public housing.--The terms ``public housing''
and ``project'' have the meanings given such terms in
section 3(b) of the United States Housing Act of 1937.
(B) Public housing agency.--The terms ``public
housing agency'' and ``agency'' have the meanings given
the term ``public housing agency'' in section 3(b) of
the United States Housing Act of 1937.
(C) Resident management corporation.--The terms
``resident management corporation'' and ``corporation''
mean a resident management corporation established in
accordance with requirements of the Secretary under
section 20 of the United States Housing Act of 1937.
(D) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
(E) Very low-income families.--The term ``very low-
income families'' has the meaning given the term in
section 3(b) of the United States Housing Act of 1937.
(14) Applicability to indian housing.--In accordance with
section 201(b)(2) of the United States Housing Act of 1937, the
provisions of this subsection shall apply to public housing
developed or operated pursuant to a contract between the
Secretary and an Indian housing authority.
(d) Regulations.--The Secretary may issue any regulations necessary
to carry out this section and the amendments made by this section.
(e) Budget Compliance and Effective Date.--
(1) Budget compliance.--Notwithstanding subsection (b),
this section and the amendments made by this section shall be
effective only to the extent approved, or in such amounts as
are provided, in appropriation Acts.
(2) Effective date.--The provisions of this section shall
take effect and the amendments under this section shall be made
on October 1, 1995.
SEC. 907. REQUIRED IMMUNIZATIONS FOR CHILDREN.
(a) AFDC Benefits Denied for Children Who Have Not Received
Preventive Health Care or Immunizations.--
(1) In general.--Section 402(a) of the Social Security Act
(42 U.S.C. 602(a)), as amended by sections 201(a)(1), 302, 303,
304, 305, 307, 309(a), 602, and 904 of this Act, is amended--
(A) by striking ``and'' at the end of paragraph
(53);
(B) by striking the period at the end of paragraph
(54) and inserting ``; and''; and
(C) by inserting after paragraph (54) the
following:
``(55) provide that--
``(A) aid under the plan shall not be payable with
respect to any child who has not attained the age of 6
years, unless the State agency has received from 1 or
more physicians written verification (on a form
prescribed by the State)--
``(i) that the child has been examined by a
physician not less frequently than--
``(I) in the case of a child who
has not attained the age of 19 months,
every 6 months since the child was
born; and
``(II) in the case of any other
child, every 6 months until the child
attained the age of 19 months, and
every year thereafter;
``(ii) that the child has been immunized in
accordance with recommendations issued by the
Surgeon General of the Public Health Service;
and
``(iii) of any contraindication which
exempts the child from receiving an
immunization;
``(B) the State will conduct appropriate education
and outreach activities designed to--
``(i) increase public awareness of the
importance of preventive health care and
immunizations for pre-school children; and
``(ii) inform the public about--
``(I) the availability of
preventive health care and immunization
services for pre-school children;
``(II) any transportation, child
care, or other support services that
may be available to assist parents in
obtaining such services for their
children; and
``(III) the clinics at which any
child may receive immunizations free or
at a reduced charge.''.
(2) Applicability.--The amendments made by paragraph (1)
shall apply to--
(A) payments to individuals under State plan
approved under part A of title IV of the Social
Security Act, for months beginning on or after October
1, 1995; and
(B) payments to States under such part for calendar
quarters beginning on or after October 1, 1995.
(b) Amendments to the Child Care and Development Block Grant.--
(1) In general.--Section 658E(2) of the Child Care and
Development Block Grant Act (42 U.S.C. 9858c(2)) is amended--
(A) in subparagraph (F)--
(i) in clause (ii) by striking ``and'' at
the end;
(ii) in clause (iii) by striking the period
at the end and inserting ``; and'';
(iii) by inserting after subclause (III),
as so redesignated, the following:
``(iv) a requirement that such providers
require with respect to each child who receives
child care services from any of such providers
that certificates signed by a physician who
verifies that such child has been immunized in
accordance with recommendations issued by the
Surgeon General of the Public Health Service be
submitted, at required intervals and in
accordance with rules issued by the Secretary,
to the child care provider involved.''; and
(iv) by striking the last sentence; and
(B) in subparagraph (G)--
(i) by inserting ``(i)'' before
``Provide''; and
(ii) by adding at the end the following:
``(ii) For the purpose of enforcing the requirement
described in subparagraph (F)(iv), such procedures
shall ensure that each of such providers gives to
parents of each child who receives child care services
from the provider involved written notice of--
``(I) each immunization requirement
applicable to such child;
``(II) an opportunity of not less than 30
days, and not more than 45 days, to correct the
failure to satisfy such requirement; and
``(III) the fact that child care services
for such child will be terminated for failure
to satisfy such requirement before the
expiration of the 45-day period beginning on
the date such notice is received.''.
(2) Applicability.--The amendments made by paragraph (1)
shall not apply with respect to fiscal years beginning before
October 1, 1995.
(c) Issuance of Immunization Recommendations by the Surgeon General
of the Public Health Service.--After taking into consideration the then
most recent report of the Committee on Infectious Diseases of the
American Academy of Pediatrics, the Surgeon General of the Public
Health Service shall issue, and revise from time to time,
recommendations for the immunization of children under 6 years of age.
With respect to each recommended immunization, such recommendation
shall include--
(1) contraindications (if any) that should be identified to
exempt a child from receiving such immunization, and
(2) remedial action that may be taken to minimize the
adverse effect of failure to administer such immunization to a
child at the recommended age.
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