[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1795 Introduced in Senate (IS)]
103d CONGRESS
2d Session
S. 1795
To amend title IV of the Social Security Act and other provisions to
provide reforms to the welfare system in effect in the United States.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 25, 1994
Mr. Brown (for himself, Mr. Dole, Mr. Packwood, Mr. D'Amato, Mr.
Simpson, Mr. Warner, Mr. Gramm, Mr. Stevens, Mr. Cochran, Mr. McCain,
Mr. Gorton, Mr. Burns, Mr. McConnell, Mr. Murkowski, Mr. Nickles, Mrs.
Hutchison, and Mr. Pressler) introduced the following bill; which was
read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend title IV of the Social Security Act and other provisions to
provide reforms to the welfare system in effect in the United States.
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 ``Welfare Reform Act of 1994''.
SEC. 2. REFERENCES IN ACT; TABLE OF CONTENTS.
(a) Amendments to Social Security Act.--Except as otherwise
specifically provided, whenever in this Act an amendment is expressed
in terms of an amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that section or other
provision of the Social Security Act.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title.
Sec. 2. References in Act; table of contents.
TITLE I--APPLICANT JOB SEARCH, VOUCHER PROGRAM, TRANSITION AND WORK
PROGRAM, ETC.
Sec. 101. Applicant job search requirement.
Sec. 102. Employment voucher programs.
Sec. 103. Transition and work components added to jobs program.
Sec. 104. Sanctions for failure to participate in jobs program.
Sec. 105. Persons exempted from participation in jobs program.
Sec. 106. Increase in required jobs participation rates.
Sec. 107. Payments to States.
Sec. 108. Effective date.
TITLE II--PROVISIONS RELATING TO PATERNITY ESTABLISHMENT
Sec. 201. Reduction of AFDC for parent or guardian of children whose
paternity is not established.
Sec. 202. Earlier paternity establishment efforts by States.
Sec. 203. Increase in paternity establishment percentage.
Sec. 204. Effective date.
TITLE III--CHILD SUPPORT ENFORCEMENT
Sec. 301. State information systems.
Sec. 302. National information systems.
Sec. 303. Income withholding.
Sec. 304. Uniform terms in orders.
Sec. 305. Work requirement for noncustodial parents with child support
arrearages.
Sec. 306. Effective date.
TITLE IV--EXPANSION OF STATUTORY FLEXIBILITY OF STATES
Sec. 401. Option to increase or decrease payments based on preventive
health care and immunizations for children.
Sec. 402. Option to increase or decrease payments based on attendance
at educational institutions and
participation in vocational or technical
training.
Sec. 403. Option to deny AFDC for additional children.
Sec. 404. Option to provide married couple transition benefit.
Sec. 405. Option to treat interstate immigrants under rules of former
State.
Sec. 406. Option to require attendance at parenting and money
management classes.
Sec. 407. Option to deny AFDC eligibility to certain teenagers;
requirement that teenagers eligible for
AFDC live at home.
Sec. 408. Disregard of education and employment training savings for
AFDC eligibility.
Sec. 409. Effective date.
TITLE V--EXPEDITED STATE WAIVER AUTHORITY
Sec. 501. Interagency Waiver Request Board.
Sec. 502. Application to implement assistance plans.
Sec. 503. Review and approval of applications; waivers.
Sec. 504. Implementation of assistance plans; evaluations.
Sec. 505. Public-private partnership committees.
Sec. 506. Definitions.
Sec. 507. Reports.
Sec. 508. Sunset.
TITLE VI--WELFARE RESTRICTIONS FOR ALIENS
Sec. 601. Eligibility of certain aliens for certain Federal benefits.
Sec. 602. State AFDC agencies required to provide information on
illegal aliens to the Immigration and
Naturalization Service.
TITLE VII--MISCELLANEOUS
Sec. 701. Restriction on payment of benefits to individuals confined by
court order to public institutions pursuant
to verdicts of not guilty by reason of
insanity or other mental disorder.
Sec. 702. AFDC recipients required to undergo necessary substance abuse
treatment as a condition of receiving AFDC.
Sec. 703. Evaluation of education and training programs.
Sec. 704. Fraud and administrative efficiency.
Sec. 705. SSI benefits for drug and alcohol addicts.
Sec. 706. State fraud control programs.
TITLE I--APPLICANT JOB SEARCH, VOUCHER PROGRAM, TRANSITION AND WORK
PROGRAM, ETC.
SEC. 101. APPLICANT JOB SEARCH REQUIREMENT.
(a) In General.--Section 402(a) (42 U.S.C. 602(a)) is amended--
(1) by striking ``and'' at the end of paragraph (44);
(2) by striking the period at the end of paragraph (45) and
inserting ``; and''; and
(3) by inserting after paragraph (45) the following new
paragraph:
``(46) provide that--
``(A) an individual applying for aid under the plan
shall conduct job search activities, as determined
appropriate by the State, while such individual's
application for aid is pending; and
``(B) the State agency shall reimburse the
applicant for necessary transportation and child care
expenses incurred as a result of such activities.''.
(b) Conforming Amendments.--Section 482(g)(2) (42 U.S.C. 682(g)(2))
is amended--
(1) by striking ``applying for or'' in the matter preceding
subparagraph (A); and
(2) in subparagraph (A)--
(A) by striking ``applies for aid'' and inserting
``begins receiving aid''; and
(B) by striking ``in making a determination of an
individual's eligibility for such aid or''.
SEC. 102. EMPLOYMENT VOUCHER PROGRAMS.
(a) In General.--Section 402(a) (42 U.S.C. 602(a)), as amended by
section 101, 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 new
paragraph:
``(47) provide that the State has in effect an employment
voucher program which meets the requirements of part G.''.
(b) Voucher Program.--Title IV (42 U.S.C. 601 et seq.) is amended
by adding at the end the following new part:
``Part G--Employment Voucher Programs
``establishment of state programs
``Sec. 491. (a) In General.--As a condition of its participation in
the program for aid to families with dependent children under part A,
each State shall establish an employment voucher program (in this part
referred to as the `program') which meets the requirements of this
part.
``(b) Requirement on Secretary.--The Secretary shall consult with
the Secretary of Labor and the Secretary of Agriculture on the
requirements imposed on States under this part and criteria for
determining whether such requirements are met.
``administration of state programs
``Sec. 492. The State agency responsible for the administration of
the State's program under this part shall be--
``(1) a new State agency created by the State, or
``(2) a State agency selected by the State from among--
``(A) the State agency that administers or
supervises the administration of the State's plan
approved under section 402,
``(B) the State agency that administers or
supervises the administration of the food stamp program
under the Food Stamp Act of 1977, and
``(C) the State department of labor.
``state programs described
``Sec. 493. (a) Program Voucher Requirements.--
``(1) In general.--The State shall make vouchers in the
amount determined under paragraph (2) available to eligible
individuals. If an eligible individual obtains employment such
vouchers--
``(A) shall be given by such individual to the
individual's employer during the first year of
employment; and
``(B) shall be in lieu of any benefits described in
paragraph (2) which the individual would otherwise be
eligible to receive.
``(2) Amount of voucher.--The amount of the voucher for an
eligible individual is equal to--
``(A) for each month of the first 6 month period of
employment, the sum of--
``(i) the monthly amount that would
otherwise be payable as aid to families with
dependent children to the family of such
individual, and
``(ii) the monthly cash value of the food
stamp benefits that would otherwise be
available to such individual's household,
determined as of the first day of the first full month
of the employment of such individual by a qualified
employer; and
``(B) for each month of the second 6 month period
of employment, 50 percent of the sum of the amounts
determined under clauses (i) and (ii) of subparagraph
(A).
``(b) Eligible Individuals.--For purposes of this part, an
individual is eligible for a voucher under the State program if such
individual is eligible for and receiving assistance under--
``(1) the aid to families with dependent children program
under this title; or
``(2) the food stamp program under the Food Stamp Act of
1977.
``(c) Qualified Employers.--
``(1) For purposes of this part, and subject to paragraph
(2), an employer is qualified to receive payments under this
part for an eligible individual employed by such employer if
the employer submits a monthly report to the State agency
selected by the State under section 492 (in a form and in such
manner as the State agency requires) certifying that--
``(A) the employment of the eligible individual
complies with the rules described in subsections (b)
and (c) (without regard to the last sentence thereof)
of section 484,
``(B) gross wages (as defined in section 209 but
without regard to any dollar limitation contained is
such section) earned by such eligible individual and
paid to such eligible individual by the employer during
such month were not less than the greater of--
``(i) 200 percent of the amount of the
voucher of such individual, or
``(ii) the product of the greater of the
Federal minimum wage or the applicable State
minimum wage and the number of hours worked by
such individual, and
``(C) with respect to such wages, the employer was
not receiving any wage subsidy under any other
provision of Federal law, including part F of this
title.
``treatment of wages
``Sec. 494. Under the State program wages paid to an eligible
individual by a qualified employer shall be considered earned income
for purposes of any provision of law, except that such wages shall not
be taken into account in determining the eligibility of such individual
for the programs described in paragraphs (1) and (2) of section 493(b)
during the first year of the individual's employment with the employer.
``provision of program information
``Sec. 495. The State agency (directly and through the other State
agencies described in paragraphs (1) and (2) of section 492) shall
inform all eligible individuals of the State program and the
application procedures for such program.
``use of federal funds
``Sec. 496. Notwithstanding any other provision of law, for
purposes of computing the amount of the Federal payment to a State with
respect to any voucher amount determined under section 493(a)(2), such
amount shall be treated as if paid to the eligible individual under the
applicable program.''.
(c) Conforming Amendments.--
(1) Food stamp act.--Section 16 of the Food Stamp Act of
1977 (7 U.S.C. 2025) is amended by adding at the end the
following new subsection:
``(l) If a State agency of a State informs the Secretary that an
individual who is participating in the employment voucher program
carried out under part G of title IV of the Social Security Act is a
member of a household that participates in the food stamp program--
``(1) the Secretary shall pay to the State an amount equal
to the value of the food stamp benefits the household is
otherwise eligible to receive under this Act; and
``(2) the State shall expend the amount in accordance with
such part rather than for food stamp benefits the household
would receive but for the operation of this subsection.''.
(2) Targeted jobs credit.--Section 51(c)(2)(B) of the
Internal Revenue Code of 1986 is amended by striking ``482(e)''
and inserting ``482(e) or part G of title IV''.
SEC. 103. TRANSITION AND WORK COMPONENTS ADDED TO JOBS PROGRAM.
(a) Establishment and Operation of Program.--
(1) Transition and work components.--Section 482 (42 U.S.C.
682) is amended by adding at the end the following new
subsection:
``(j) Transition and Work Components.--
``(1) In general.--The program under this part must
include--
``(A) a transition component that--
``(i) must include the job search program
established by the State under subsection (g);
``(ii) must include the employment voucher
program established by the State under part G;
and
``(iii) may include any other service,
activity, or program of the State that is
referred to in subsection (d)(1) (excluding the
programs referred to in subclauses (III) and
(IV) of subsection (d)(1)(A)(ii)); and
``(B) a work component that--
``(i) must include a work supplementation
program operated by the State under subsection
(e);
``(ii) must include a community work
experience program established by the State
under subsection (f);
``(iii) must include the employment voucher
program established by the State under part G;
and
``(iv) may include any other work program
of the State that is approved by the Secretary.
``(2) Participation requirements.--
``(A) Transition component.--
``(i) Hours of participation.--Each
individual participating in the transition
component must participate in activities under
such component for an average of not fewer than
20 hours per week.
``(ii) Limit on participation.--
``(I) In general.--If an individual
has participated in the transition
component for 24 months, aid under the
State plan payable to the family in
which such individual is a member shall
be reduced by the amount allocable to
such individual unless the individual
finds gainful employment or is
participating in the work component of
the program under this part.
``(II) State option.--At the option
of the State, the number of months of
participation under subclause (I) may
be reduced to a number of months not
less than 12.
``(iii) Satisfaction of requirement.--The
State, in consultation with the Secretary,
shall establish guidelines for determining
whether an individual has satisfied the
requirement under clause (i). In the case of
educational activities, such guidelines shall
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
satisfying such requirement so long as the
determinations by the institution are made 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).
``(B) Work component.--
``(i) Hours of participation.--At the
option of the State, each individual
participating in the work component must
participate--
``(I) in work activities for an
average of not fewer than 35 hours per
week; or
``(II) in work activities for an
average of not fewer than 30 hours per
week and job search activities for an
average of not fewer than 8 hours per
week.
``(ii) Limit on participation.--
``(I) In general.--If an individual
has participated in the transition
component and the work component for 24
months, at the option of the State, aid
under the State plan payable to the
family in which such individual is a
member may be reduced by the amount
allocable to such individual and the
individual may be prohibited from
further participation.
``(II) Exception.--Notwithstanding
subclause (I), each individual shall be
permitted to participate in the work
component for at least 12 months
without a reduction in benefits under
subclause (I).
``(C) Eligibility for medicaid.--If aid under the
State plan is reduced under subparagraph (A)(ii) or
(B)(ii) with respect to an individual, such individual
shall, for purposes of medical assistance under the
State plan under title XIX, be deemed to be a recipient
of aid under such State plan for so long as the family
in which such individual is a member is otherwise
eligible for aid under such State plan.''.
(2) Employability plan.--
(A) Determination of participation in transition or
work component.--Section 482(b)(1)(A) (42 U.S.C.
682(b)(1)(A)) is amended by inserting after the first
sentence the following new sentence: ``If, based on
such assessment, the State agency determines that a
participant is employable, such participant shall be
assigned to the work component of the program under
this part.''.
(B) Specification in plan of participation in
transition or work component.--The first sentence of
section 482(b)(1)(B) (42 U.S.C. 682(b)(1)(B)) is
amended to read as follows: ``On the basis of such
assessment, the State agency, in consultation with the
participant, shall develop an employability plan for
the participant which shall specify whether the
participant is participating in the transition
component or the work component under this part.''.
(C) Limit on participation in transition
component.--Section 482(b)(1) (42 U.S.C. 682(b)(1)) is
amended by inserting the following new sentence after
the second sentence in subparagraph (B): ``The plan
shall include a statement explaining that participation
in the transition component of the program under this
part shall be for an average of at least 20 hours per
week during a period of up to 24 months and upon the
expiration of such period, aid under the State plan may
be reduced unless the individual finds gainful
employment or is participating in the work component of
the program under this part.''.
(D) Interim assessment under transition
component.--Section 482(b) (42 U.S.C. 682(b)) is
amended--
(i) by redesignating paragraph (3) as
paragraph (4); and
(ii) by inserting after paragraph (2), the
following new paragraph:
``(3) After a participant has participated in the transition
component of the program for a period of 6 months, the State shall make
an assessment to determine whether the participant is making clear and
substantial progress toward employment. The State, in consultation with
the Secretary, shall establish guidelines for making determinations
under this paragraph.''.
(E) Determination of employability.--Section 482(b)
(42 U.S.C. 682(b)) is amended--
(i) by redesignating paragraph (4) as
paragraph (5); and
(ii) by inserting after paragraph (3), the
following new paragraph:
``(4) If, at any time during a participant's participation in the
transition component of the program, the State agency determines that
such participant is employable, such participant shall be assigned to
the work component of the program.''.
(b) Community Work Experience Program Amendments.--Section
482(f)(1) (42 U.S.C. 682(f)(1)) is amended--
(1) by striking subparagraph (B);
(2) by redesignating subparagraphs (C), (D), and (E) as
subparagraphs (B), (C), and (D).
(c) Work Supplementation Program Amendments.--
(1) Authority of states to assign participants to unfilled
jobs.--Section 484(c) (42 U.S.C. 684(c)) is amended by striking
the last sentence.
(2) Authority of states to use sums that would otherwise be
expended for food stamp benefits to provide subsidized jobs for
participants.--
(A) In general.--Section 482(e)(1) (42 U.S.C.
682(e)(1)) is amended--
(i) 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
(ii) by inserting ``and the food stamp
benefits that would otherwise be so provided to
them'' before the period.
(B) Subsidies provided to employers and included in
wages of participants; minimum employer contribution.--
Section 482(e)(3) (42 U.S.C. 682(e)(3)) is amended by
adding at the end the following new paragraphs:
``(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).''.
(C) Conforming amendment.--Section 482(e)(3)(A) (42
U.S.C. 682(e)(3)(A)) is amended by striking the second
sentence.
(D) Employment cashout of food stamp benefits.--
Section 16 of the Food Stamp Act of 1977 (7 U.S.C.
2025), as amended by section 102(c), is amended by
adding at the end the following new subsection:
``(m) 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. SANCTIONS FOR FAILURE TO PARTICIPATE IN JOBS PROGRAM.
(a) In General.--Section 402(a)(19)(G)(ii) (42 U.S.C.
602(a)(19)(G)(ii)) is amended to read as follows:
``(ii) any sanction described in clause (i)
shall continue--
``(I) in the case of the
individual's first failure to comply,
until the failure to comply ceases or 3
months (whichever is longer);
``(II) in the case of the
individual's second failure to comply,
until the failure to comply ceases or 6
months (whichever is longer); and
``(III) in the case of the
individual's third failure to comply,
until the failure to comply ceases or
12 months (whichever is longer);''.
(b) Rolling Sanctions.--Section 402(a)(19)(G) (42 U.S.C.
602(a)(19)(G)) is amended by redesignating clauses (iii) and (iv) as
subclauses (iv) and (v) and by inserting after clause (ii) the
following new clause:
``(iii)(I) any first failure to comply
described in clause (ii)(I) that continues for
more than 3 months shall be considered a second
failure to comply described in clause (ii)(II);
and
``(II) any second failure to comply
described in clause (ii)(II) that continues for
more than 6 months shall be considered a third
failure to comply described in clause
(ii)(III);''.
(c) Representative Payees.--Section 402(a)(19)(G)(i)(I) (42 U.S.C.
602(a)(19)(G)(i)(I)) is amended by striking ``unless the State agency,
after making reasonable efforts, is unable to locate an appropriate
individual to whom such payments can be made'' and inserting ``(in the
case of an individual's first or second failure to comply, payments in
such form shall be made only if determined appropriate by the State)''.
SEC. 105. PERSONS EXEMPTED FROM PARTICIPATION IN JOBS PROGRAM.
(a) In General.--Section 402(a)(19)(C) (42 U.S.C. 602(a)(19)(C)) is
amended to read as follows:
``(C) that an individual may not be required to
participate in the program--
``(i) if the individual is ill,
incapacitated, or of advanced age;
``(ii) if the individual works 35 or more
hours per week;
``(iii) if the individual is a child who is
under age 16 and attends, full-time, an
elementary, secondary, or vocational (or
technical) school;
``(iv) if the individual is providing full-
time care for a disabled dependent of the
individual;
``(v) 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;
``(vi) during the 6-month period after the
individual gives birth to the first child born
to the individual after becoming eligible for
aid under this part;
``(vii) during the 4-month period after the
individual gives birth to the second or
subsequent child born to the individual after
becoming eligible for aid under this part; or
``(viii) if the individual resides in an
area of the State where the program is not
available.''.
(b) Conforming Amendment.--Section 402(a)(19)(G)(v) (42 U.S.C.
602(a)(19)(G)(v)), as redesignated by subsection (b)(2), is amended--
(A) in the matter preceding subclause (I), by
striking ``--'';
(B) by striking subclause (I); and
(C) in subclause (II), by striking ``(II)''.
SEC. 106. INCREASE IN REQUIRED JOBS PARTICIPATION RATES.
(a) Increase in Required Jobs Participation Rates.--Section
403(l)(3) (42 U.S.C. 603(l)(3)) is amended--
(1) in subparagraph (A)--
(A) by amending clauses (i) through (vi) to read as
follows:
``(i) with respect to all individuals eligible for aid
under the State plan who applied for such aid before October 1,
1994--
``(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 before October 1, 1998--
``(I) 20 percent if such year is 1995;
``(II) 30 percent if such year is 1996;
``(III) 40 percent if such year is 1997; and
``(IV) 50 percent if such year is 1998; and
``(iii) with respect to all individuals eligible for aid
under the State plan who applied for such aid on or after
October 1, 1998--
``(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
(2) in subparagraph (B)(ii)(IV), by striking ``and 1995''
and inserting ``through 2002''.
(b) Participation Rates of Unemployed Parents.--
(1) In general.--Section 402(a)(19)(D) (42 U.S.C
602(a)(19)(D)) is amended to read as follows:
``(D) that, notwithstanding subparagraph (B), in
the case of a family eligible for aid to families with
dependent children by reason of the unemployment of the
parent who is the principal earner, members of such
family shall participate in the program in accordance
with section 403(l)(4);''.
(2) Participation described.--Section 403(l)(4)(A) (42
U.S.C. 603(l)(4)(A)) is amended to read as follows:
``(4)(A) In the case of any family eligible for aid to families
with dependent children by reason of the unemployment of the parent who
is the principal earner, the State--
``(i) shall require one parent to participate in the work
component of the program, and
``(ii) may require one parent to participate in the
transition component of the program.
In the case of a parent under age 25 who has not completed high school
or an equivalent course of education, the State may require such parent
to participate in educational activities directed at the attainment of
a high school diploma (or equivalent) or another basic education
program, in lieu of any requirement under the preceding sentence.''.
(3) Required participation rates.--Section 403(l)(4)(B) (42
U.S.C. 603(l)(4)(B)) is amended--
(A) in the matter preceding clause (i), by striking
``subparagraph (A)'' and inserting ``subparagraph
(A)(i)'';
(B) in clause (iii), by striking ``and'';
(C) in clause (iv), by striking ``each of the
fiscal years 1997 and 1998.'' and inserting ``fiscal
year 1997; and''; and
(D) by adding at the end the following:
``(v) 90 percent in the case of the average of each month
in fiscal year 1998.''.
(4) Conforming amendments.--Section 403(l)(4)(D) (42 U.S.C.
603(l)(4)(D)) is amended--
(A) by striking ``subparagraph (A)'' each place it
appears and inserting ``subparagraph (A)(i)''; and
(B) by striking ``he'' each place it appears and
inserting ``the Secretary''.
(5) Extension to all states of option to limit afdc-up.--
Section 407(b)(2)(B) (42 U.S.C. 607(b)(2)(B)) is amended by
striking clause (iii).
SEC. 107. PAYMENTS TO STATES.
Section 403 (42 U.S.C. 603) is amended by adding at the end the
following new subsection:
``(o)(1) Except as provided in paragraph (3), each State which has
been paid under subsection (l) for a fiscal year an amount equal to the
limitation determined under subsection (k)(2) for the fiscal year
shall, in addition to any payment under subsection (a) or (l), be
entitled to a payment from the Secretary in an amount equal to the sum
of--
``(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) except as provided in paragraph (2), 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 under part F during the
fiscal year with respect to which payment has not been made
under subsection (l).
``(2)(A) Notwithstanding paragraph (1)(B), 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), 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
applicable participation rate for such fiscal year; and
``(III) has submitted a proposal which is likely to achieve
the applicable participation rate 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.
``(3)(A) For fiscal years 1996, 1997, and 1998, the amount paid to
a State by the Secretary under paragraph (1) shall not exceed the
amount that bears the same ratio to the amount specified in
subparagraph (B) 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.
``(B) The amount specified in this subparagraph is--
``(i) $300,000,000 for fiscal year 1996;
``(ii) $1,000,000,000 for fiscal year 1997; and
``(iii) $1,900,000,000 for fiscal year 1998.''.
SEC. 108. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), the
amendments made by this title shall take effect on the first day of the
first fiscal year beginning after the date of the enactment of this
Act.
(b) Delay if State Legislation Required.--In the case of a State
which the Secretary determines requires State legislation (other than
legislation authorizing or appropriating funds) in order to comply with
the amendments made by this title, the State shall not be regarded as
failing to comply with such amendments solely on the basis of its
failure to meet the requirements of such amendments before the first
day of the first calendar quarter beginning after the close of the
first regular session of the State legislature that begins after the
date of the enactment of this Act. For purposes of the preceding
sentence, in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate regular
session of the State legislature.
TITLE II--PROVISIONS RELATING TO PATERNITY ESTABLISHMENT
SEC. 201. REDUCTION OF AFDC FOR PARENT OR GUARDIAN OF CHILDREN WHOSE
PATERNITY IS NOT ESTABLISHED.
(a) Families Applying for AFDC.--Section 402(a) (42 U.S.C. 602(a)),
as amended by sections 101 and 102, 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 new
paragraph:
``(48) unless the State has enacted a law exempting itself
from the application of this paragraph, provide that--
``(A) except as provided in subparagraph (B), if a
family applying for aid under this part includes a
child with respect to whom paternity has not been
established, aid paid to such family under the State
plan for any month shall be reduced by the amount of
such aid allocable to the parent or guardian of such
child until--
``(i) paternity has been acknowledged by
the father of such child;
``(ii) a paternity suit has been instituted
with respect to such child; or
``(iii) such parent or guardian
demonstrates to the satisfaction of the State
that the father of such child is dead or
missing;
``(B) subparagraph (A) shall not apply if--
``(i) the child was conceived as a result
of rape or incest;
``(ii) the State determines that efforts to
establish paternity would result in physical
danger to a member of the family claiming aid
under this part; or
``(iii) the State, with the approval of the
Secretary, determines that a reduction in such
aid would impose an undue hardship on the
family claiming such aid; and
``(C) if it is determined that the individual named
as the father in a paternity suit instituted under
clause (ii) of subparagraph (A) is not the father of
the child referred to in such subparagraph, aid paid to
the child's family under the State plan for any month
shall be--
``(i) reduced by the amount of such aid
allocable to the parent or guardian of such
child in accordance with such subparagraph; and
``(ii) made in the form of payments
described in section 406(b)(2).''.
(b) All Families.--
(1) In general.--Section 402(a)(48) (42 U.S.C. 602(a)(46)),
as added by subsection (a), is amended by striking ``applying
for aid under this part''.
(2) Effective date.--
(A) In general.--Except as provided in subparagraph
(B), the amendment made by paragraph (1) shall take
effect on the first day of the second fiscal year
beginning after the date of the enactment of this Act.
(B) Delay if state legislation required.--In the
case of a State which the Secretary determines requires
State legislation (other than legislation authorizing
or appropriating funds) in order to comply with the
amendments made by paragraph (1), the State shall not
be regarded as failing to comply with such amendments
solely on the basis of its failure to meet the
requirements of such amendments before the first day of
the first calendar quarter beginning after the close of
the first regular session of the State legislature that
begins after the date of the enactment of this Act. For
purposes of the preceding sentence, in the case of a
State that has a 2-year legislative session, each year
of such session shall be deemed to be a separate
regular session of the State legislature.
SEC. 202. EARLIER PATERNITY ESTABLISHMENT EFFORTS BY STATES.
Section 466(a)(5) (42 U.S.C. 666(a)(5)) is amended by adding at the
end the following new subparagraph:
``(I) Procedures under which a pregnant, unmarried woman is
provided information regarding potential ineligibility for, or
reductions in, benefits under Federal and State programs,
including the aid to families with dependent children program
under part A, if such woman fails to establish, or cooperate in
the establishment of, the paternity of the child.''.
SEC. 203. INCREASE IN PATERNITY ESTABLISHMENT PERCENTAGE.
Section 452(g)(1) (42 U.S.C. 652(g)(1)), as amended by section
13721(a) of the Omnibus Budget Reconciliation Act of 1993, is amended--
(1) in the matter preceding subparagraph (A), by striking
``on or after October 1, 1994'' and inserting ``after the date
of the enactment of the Welfare Reform Act of 1994''; and
(2) by striking subparagraphs (A) through (E) 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. 204. EFFECTIVE DATE.
(a) In General.--Except as provided in section 201(b) and
subsection (b), the amendments made by this title shall take effect on
the first day of the first fiscal year beginning after the date of the
enactment of this Act.
(b) Delay if State Legislation Required.--In the case of a State
which the Secretary determines requires State legislation (other than
legislation authorizing or appropriating funds) in order to comply with
the amendments made by this title, the State shall not be regarded as
failing to comply with such amendments solely on the basis of its
failure to meet the requirements of such amendments before the first
day of the first calendar quarter beginning after the close of the
first regular session of the State legislature that begins after the
date of the enactment of this Act. For purposes of the preceding
sentence, in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate regular
session of the State legislature.
TITLE III--CHILD SUPPORT ENFORCEMENT
SEC. 301. STATE INFORMATION SYSTEMS.
(a) State Registries of Child Support Orders.--Section 466(a) (42
U.S.C. 666(a)), as amended by section 13721(b)(3) of the Omnibus Budget
Reconciliation Act of 1993, is amended by inserting after paragraph
(11) the following new paragraph:
``(12) Procedures under which the State shall designate a
public agency 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) (42 U.S.C. 666(a)), as
amended by subsection (a), is amended by inserting after
paragraph (12) the following new paragraph:
``(13)(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
regulations promulgated by the Secretary which prohibit the
release of any information that 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) (42 U.S.C. 666(a)),
as amended by subsection (a) and paragraph (1), is amended by
inserting after paragraph (13) the following new paragraph:
``(14) 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 regulations
promulgated by the Secretary which prohibit the release
of any information that 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. 302. NATIONAL INFORMATION SYSTEMS.
(a) Expansion of Parent Locator Service.--Section 453 (42 U.S.C.
653) is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' after ``transmit''; and
(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 it is demonstrated
to the satisfaction of the State that the disclosure would
jeopardize the safety of any individual.'';
(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 (42
U.S.C. 653) is amended by adding at the end the following new
subsection:
``(g) The Secretary shall establish an Interstate Locate Network
linking the Parent Locator Service and all State databases relating to
child support enforcement which shall promote efforts to locate any
noncustodial parent who has a legal obligation to provide child support
(as defined in section 462(b)) or any custodial parent against whom
visitation rights are being enforced by providing on-line computer
access to the records of any Federal, State, or other source of child
support information.''.
(c) Information Sharing Regulations.--Section 452(a) (42 U.S.C.
652(a)) is amended--
(1) by striking ``and'' at the end of paragraph (9);
(2) by striking the period at the end of paragraph (10)(I)
and inserting ``; and'';
(3) by inserting the following new paragraph immediately
after paragraph (10)(I):
``(11) prescribe regulations governing information sharing
among States, within States, and between the States and the
Parent Locator Service--
``(A) to require a State that is attempting to
locate a noncustodial parent or collect child support--
``(i) to compare all outstanding cases with
information in the employment records of the
State; and
``(ii) if, after complying with clause (i),
the State is unable to locate the noncustodial
parent or collect the child support, 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 the State does not have
reason to believe that the noncustodial
parent is in another particular State
or States, to broadcast to all States a
request for such information; and
``(B) to ensure that if a State broadcasts a
request for information for the purpose of locating a
noncustodial parent or collecting child support under
subparagraph (A), such State will receive a response to
the request in not more than 48 hours.'';
(4) by moving the last sentence 2 ems to the left; and
(5) by striking ``such report under subparagraph (A)'' and
inserting ``report under paragraph (10)(A)'' in the last
sentence.
SEC. 303. INCOME WITHHOLDING.
(a) State Role.--Section 466(a) (42 U.S.C. 666(a)), as amended by
subsections (a) and (b) of section 301, is amended by inserting after
paragraph (14) the following new paragraph:
``(15) 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,
the amounts collected as child support.
``(16) 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 (17), unless the order does
not provide for income withholding, and the noncustodial parent
and the custodial parent object.
``(17) Procedures under which the State shall designate a
State agency to use the uniform income withholding order
developed under section 452(a)(12) in connection with the
State's child support collection efforts.''.
(b) Uniform Withholding Order.--Section 452(a) (42 U.S.C. 652(a)),
as amended by section 302(c), is amended--
(1) by striking ``and'' at the end of paragraph (10);
(2) by striking the period at the end of paragraph (11) and
inserting ``; and''; and
(3) by inserting after paragraph (11) the following new
paragraph:
``(12) 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--
``(A) contain the name of the individual whose
income is to be withheld, the amount of income 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
``(B) be in a form which allows 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) (42 U.S.C. 666(b)(1)) is amended--
(1) in paragraph (1)--
(A) by inserting ``and in the case of each other
individual employed in the State,'' before ``so much'';
and
(B) by striking ``parent's'' and inserting
``parent's or individual's'';
(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 new
subparagraph:
``(B)(i) If an individual or entity engaged in commerce
receives an income withholding order developed under section
452(a)(12) and issued by a court or State agency of any State
with respect to an employee of such individual or entity, such
individual or entity 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 in good faith 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 on any
individual or entity which, due to negligence, fails to comply
with an order with respect to an employee within 10 days after
receipt of such order. Such civil fine shall be in an amount
equal to the lesser of--
``(I) average cost of noncompliance (as determined
by the State); or
``(II) $25 for each act or omission constituting
noncompliance.
``(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. 304. UNIFORM TERMS IN ORDERS.
Section 452(a) (42 U.S.C. 652(a)), as amended by sections 302 and
303, 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 new paragraph:
``(13) develop, in conjunction with State executive and
judicial organizations, a uniform child support order for use
by all State courts which shall include--
``(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;
``(J) the identification (FIPS code, name, and
address) of the court that issued the order;
``(K) any information on health care support
required by the order; and
``(L) the party to contact if additional
information is obtained.''.
SEC. 305. WORK REQUIREMENT FOR NONCUSTODIAL PARENTS WITH CHILD SUPPORT
ARREARAGES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 301 and
303, is amended by inserting after paragraph (17) the following new
paragraph:
``(18) 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 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, and is
not subject to a court-approved plan for payment of
such arrearage, the State agency referred to in section
402(a)(3) shall 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) except with respect to a noncustodial parent
described in subparagraph (A) who is employed or
incapacitated--
``(i) 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 shall seek a court order
requiring the noncustodial parent 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 under
subparagraph (B) is entered, the amount of the
arrearage has not decreased by at least a
percentage amount specified by the State
agency, the noncustodial parent shall
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 32 hours per week).''.
SEC. 306. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), the
amendments made by this title shall take effect on the first day of the
first fiscal year beginning after the date of the enactment of this
Act.
(b) Delay if State Legislation Required.--In the case of a State
which the Secretary determines requires State legislation (other than
legislation authorizing or appropriating funds) in order to comply with
the amendments made by this section, the State shall not be regarded as
failing to comply with such amendments solely on the basis of its
failure to meet the requirements of such amendments before the first
day of the first calendar quarter beginning after the close of the
first regular session of the State legislature that begins after the
date of the enactment of this Act. For purposes of the preceding
sentence, in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate regular
session of the State legislature.
TITLE IV--EXPANSION OF STATUTORY FLEXIBILITY OF STATES
SEC. 401. OPTION TO INCREASE OR DECREASE PAYMENTS BASED ON PREVENTIVE
HEALTH CARE AND IMMUNIZATIONS FOR CHILDREN.
(a) In General.--
(1) Increase in afdc benefits.--Section 402(a) (42 U.S.C.
602(a)), as amended by sections 101, 102, and 201, is amended--
(A) by striking ``and'' at the end of paragraph
(47);
(B) by striking the period at the end of paragraph
(48) and inserting ``; and''; and
(C) by inserting after paragraph (48) the following
new paragraph:
``(49) unless the State has enacted a law exempting itself
from the application of this paragraph, provide that--
``(A) the State shall increase (in accordance with
any methodology determined appropriate by the State)
the amount paid to a family under this part by up to
$50 for any month (but not exceeding $300 in the
aggregate) with respect to which the State agency
receives written verification from a licensed health
care provider (on a form prescribed by the State) that
each child in such family who is under the age of 6--
``(i) has received early and periodic
screening, diagnostic, and treatment services
(as defined in section 1905(r)); and
``(ii) has been immunized in accordance
with recommendations issued by the Surgeon
General of the Public Health Service;''.
(2) Reduction in afdc benefits.--Section 402(a)(49) (42
U.S.C. 602(a)(49)), as added by paragraph (1), is amended by
adding at the end the following new subparagraph:
``(B) the State shall decrease (in accordance with
any methodology determined appropriate by the State)
the amount paid to a family under this part by up to
$50 for any month with respect to which the State
agency fails to receive written verification from a
licensed health care provider (on a form prescribed by
the State) that each child in such family who is under
the age of 6--
``(i) has received early and periodic
screening, diagnostic, and treatment services
(as defined in section 1905(r)); and
``(ii) has been immunized in accordance
with recommendations issued by the Surgeon
General of the Public Health Service; and''.
(3) Education and outreach activities.--Section 402(a)(49)
(42 U.S.C. 602(a)(49)), as added by paragraph (1) and amended
by paragraph (2), is amended by adding at the end the following
new subparagraph:
``(C) 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.''.
(b) Issuance of Immunization Recommendations by the Surgeon General
of the Public Health Service.--After taking into consideration the 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.
SEC. 402. OPTION TO INCREASE OR DECREASE PAYMENTS BASED ON ATTENDANCE
AT EDUCATIONAL INSTITUTIONS AND PARTICIPATION IN
VOCATIONAL OR TECHNICAL TRAINING.
(a) Increase in AFDC Benefits.--Section 402(a) (42 U.S.C. 602(a)),
as amended by sections 101, 102, 201, and 401, 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 new
paragraph:
``(50) at the option of the State, provide that--
``(A) the aid otherwise payable under the plan to a
family may be increased by not more than $75 per month
if each member of such family who is attending an
educational institution or participating in a course of
vocational or technical training has maintained minimum
attendance (as defined by the State in consultation
with the Secretary) at such institution or in such
course during the immediately preceding month; and''.
(b) Decrease in AFDC Benefits.--Section 402(a)(50) (42 U.S.C.
602(a)(50)), as added by paragraph (1), is amended by adding at the end
the following new subparagraph:
``(B) the aid otherwise payable under the plan to a
family may be reduced by not more than $75 per month if
a member of such family who is attending an educational
institution or participating in a course of vocational
or technical training fails, without good cause (as
defined by the State in consultation with the
Secretary), during the immediately preceding month, to
maintain minimum attendance (as defined by the State in
consultation with the Secretary) at such institution or
in such course.''.
SEC. 403. OPTION TO DENY AFDC FOR ADDITIONAL CHILDREN.
Section 402(a) (42 U.S.C. 602(a)), as amended by sections 101, 102,
201, 401, and 402, 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 new
paragraph:
``(51) at the option of the State, provide that aid under
the plan shall not be payable with respect to a child conceived
by a recipient of aid under the plan.''.
SEC. 404. OPTION TO PROVIDE MARRIED COUPLE TRANSITION BENEFIT.
Section 402(a) (42 U.S.C. 602(a)), as amended by sections 101, 102,
201, 401, 402, and 403, 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 new
paragraph:
``(52) 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.''.
SEC. 405. OPTION TO TREAT INTERSTATE IMMIGRANTS UNDER RULES OF FORMER
STATE.
Section 402(a) (42 U.S.C. 602(a)), as amended by sections 101, 102,
201, 401, 402, 403, and 404, 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 new
paragraph:
``(53) 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 (as determined by
the State), apply the rules that would have been applied by
such other jurisdiction if the family had not moved from such
other jurisdiction in determining--
``(A) the eligibility of the family for benefits,
and
``(B) the amount of benefits payable to the family
under the State plan,
during the 12 month period beginning on the date the family
moved to the State (as determined by the State).''.
SEC. 406. OPTION TO REQUIRE ATTENDANCE AT PARENTING AND MONEY
MANAGEMENT CLASSES.
Section 402(a) (42 U.S.C. 602(a)), as amended by sections 101, 102,
201, 401, 402, 403, 404, and 405, 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 new
paragraph:
``(54) at the option of the State, provide that, as a
condition of receiving aid under the State plan, the recipient
shall attend parenting and money management classes determined
necessary and appropriate by the State.''.
SEC. 407. OPTION TO DENY AFDC ELIGIBILITY TO CERTAIN TEENAGERS;
REQUIREMENT THAT TEENAGERS ELIGIBLE FOR AFDC LIVE AT
HOME.
(a) Option to Deny AFDC Eligibility to Certain Teenagers.--Section
402(a) (42 U.S.C. 602(a)), as amended by sections 101, 102, 201, 401,
402, 403, 404, 405, and 406 is amended--
(1) by striking ``and'' at the end of paragraph (53);
(2) by striking the period at the end of paragraph (54) and
inserting ``; and''; and
(3) by inserting after paragraph (54) the following new
paragraph:
``(55) at the option of the State, provide that any
individual who is under the age of 18 and has never married,
and who has a dependent child in his or her care or is
pregnant, shall be ineligible for aid to families with
dependent children under this part.''.
(b) Requirement That Teenagers Eligible for AFDC Live at Home.--
Section 402(a)(43) (42 U.S.C. 602(a)(43)) is amended by striking ``at
the option of the State'' and inserting ``if the State has not opted to
deny eligibility under paragraph (55)''.
(c) Continued Eligibility for Medicaid Program.--Section 402 (42
U.S.C. 602) is amended by inserting the following new subsection after
subsection (c):
``(d) A State that opts to deny eligibility for aid to families
with dependent children under this part to the individuals described in
subsection (a)(55) shall provide that such individuals shall be
considered individuals receiving such aid for purposes of eligibility
for medical assistance under the State plan approved under title
XIX.''.
(d) Use of Savings.--Each State shall use the savings recognized by
the State under the aid to families with dependent children program
under title IV of the Social Security Act as a result of the amendments
made by this section for funding--
(1) group homes for individuals described in section
402(a)(55) of such Act;
(2) adoption assistance programs; and
(3) abstinence education programs.
SEC. 408. DISREGARD OF EDUCATION AND EMPLOYMENT TRAINING SAVINGS FOR
AFDC ELIGIBILITY.
(a) Disregard as Resource.--Subparagraph (B) of section 402(a)(7)
(42 U.S.C. 602(a)(7)) is amended--
(1) by striking ``or'' before ``(iv)'', and
(2) by inserting ``, or (v) at the option of the State, any
amount up to the amount established by the State in a qualified
education account (as defined in section 406(i)(1))'' before
``; and''.
(b) Disregard as Income.--Subparagraph (A) of section 402(a)(8) (42
U.S.C. 602(a)(8)) is amended--
(1) by striking ``and'' at the end of clause (vii), and
(2) by inserting after clause (viii) the following new
clause:
``(ix) shall disregard any qualified
distributions (as defined in section 406(i)(2))
made from any qualified education account (as
defined in section 406(i)(1)) while the family
is receiving aid to families with dependent
children; and''.
(c) Qualified Education Accounts.--Section 406 (42 U.S.C. 606) is
amended by adding at the end the following new subsection:
``(i)(1) The term `qualified education account' means a mechanism
established by the State that allows savings from the earned income of
a dependent child who is a member of a family receiving aid to families
with dependent children to be used for qualified distributions.
``(2) The term `qualified distributions' means distributions from a
qualified education account for expenses directly related to the
attendance at an eligible educational institution by a dependent child
who is a member of a family receiving aid to families with dependent
children.
``(3) The term `eligible educational institution' means an
educational institution determined to be eligible by the State under
guidelines established by the Secretary.''.
SEC. 409. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), the
amendments made by this title shall take effect on the first day of the
first fiscal year beginning after the date of the enactment of this
Act.
(b) Delay if State Legislation Required.--In the case of a State
which the Secretary determines requires State legislation (other than
legislation authorizing or appropriating funds) in order to comply with
the amendments made by this section, the State shall not be regarded as
failing to comply with such amendments solely on the basis of its
failure to meet the requirements of such amendments before the first
day of the first calendar quarter beginning after the close of the
first regular session of the State legislature that begins after the
date of the enactment of this Act. For purposes of the preceding
sentence, in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate regular
session of the State legislature.
TITLE V--EXPEDITED STATE WAIVER AUTHORITY
SEC. 501. 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) Duty to Provide Technical Assistance.--The Board shall provide
assistance and technical advice to entities submitting applications
under section 502 and implementing an assistance plan under an
application approved under section 503.
(h) 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.
(i) 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. 502. APPLICATION TO IMPLEMENT ASSISTANCE PLANS.
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 nonservice
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 503(c)(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 505 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.
SEC. 503. REVIEW AND APPROVAL OF APPLICATIONS; WAIVERS.
(a) Review.--
(1) In general.--Upon receipt of an application submitted
in accordance with section 502, the Chairperson shall--
(A) approve or disapprove the application within 90
days after such receipt;
(B) notify the applicant in writing of such
approval or disapproval; and
(C) if the application is disapproved, include in
the notice of disapproval a written justification of
the reasons for such disapproval.
(2) Deemed approval.--If the Chairperson fails to approve
or disapprove the application in accordance with paragraph
(1)(A), the application shall be deemed approved.
(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 502, 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 that the assistance
plan contained in the application shall be implemented for an
initial period of 5 years and may be renewed for subsequent 5-
year periods.
(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. 504. 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
for each year in which the assistance plan is implemented, 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
502(a), the report shall compare those achievements to the
objectives and performance criteria included in the plan
pursuant to section 502(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) 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 502(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 502(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. 505. PUBLIC-PRIVATE PARTNERSHIP COMMITTEES.
(a) Establishment.--An entity desiring to submit an application
under section 502(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. 506. 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 501.
(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 any of
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. 507. 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. 508. SUNSET.
Any authority provided under this title shall expire 7 years after
the date of the enactment of this Act.
TITLE VI--WELFARE RESTRICTIONS FOR ALIENS
SEC. 601. ELIGIBILITY OF CERTAIN ALIENS FOR CERTAIN FEDERAL BENEFITS.
(a) Provisions Relating to Unlawful Aliens.--
(1) Direct federal financial benefits.--
(A) In general.--On and after the date of the
enactment of this Act, notwithstanding any other
provision of law, no benefits shall be available under
the programs described in subparagraph (B) to an
unlawful alien (as defined in subsection (c)(2)) except
pursuant to a provision of the Immigration and
Nationality Act.
(B) Programs described.--The programs described in
this subparagraph are the following:
(i) The aid to families with dependent
children program under title IV of the Social
Security Act.
(ii) The medicaid program under title XIX
of the Social Security Act (except for care and
services for the treatment of an emergency
medical condition under section 1903(v) of the
Social Security Act).
(iii) The food stamp program under the Food
Stamp Act of 1977.
(iv) The supplemental security income
program under title XVI of the Social Security
Act.
(v) Any Federal unemployment compensation
program.
(2) Notification of aliens.--The Federal agency
administering a program referred to in paragraph (1)(B) shall,
directly or through the States, notify any unlawful alien (as
defined in subsection (c)(2)) who is receiving benefits under
the program on the date of the enactment of this Act and whose
eligibility for the program is or will be terminated by reason
of this subsection.
(b) Provisions Relating to Lawful Aliens.--
(1) Reporting by federal agencies.--On and after the date
of the enactment of this Act, notwithstanding any other
provision of law, any lawful alien (as defined in subsection
(c)(1)) who receives benefits under a program described in
subsection (a)(1)(B) for more than 12 months shall be reported
to the Immigration and Naturalization Service and shall be
treated as a public charge for purposes of section 241(a)(5) of
the Immigration and Nationality Act.
(2) Attribution of sponsor's income and resources to family
preference aliens.--On and after the date of the enactment of
this Act, notwithstanding any other provision of law, for
purposes of determining eligibility of, and the amount of
benefits for, a lawful alien (as defined in subsection (c)(1))
under a program described in subsection (a)(1)(B)--
(A) the income and resources of any person who, as
a sponsor of such alien's entry into the United States,
executed an affidavit of support or similar agreement
with respect to such alien, and
(B) the income and resources of such sponsor's
spouse,
shall be deemed to be the unearned income and resources of such
alien until such time as the alien achieves United States
citizenship through naturalization pursuant to chapter 2 of
title 3 of the Immigration and Nationality Act.
(c) Definitions.--For the purposes of this section--
(1) Lawful alien.--
(A) In general.--The term ``lawful alien'' means an
individual who is described in subparagraph (B) at the
time the individual applies for, receives, or attempts
to receive any Federal benefit.
(B) Individuals described.--An individual described
in this subparagraph is--
(i) a national of the United States,
(ii) an alien lawfully admitted for
permanent residence,
(iii) an asylee,
(iv) a refugee,
(v) an alien whose deportation has been
withheld under section 243(h) of the
Immigration and Nationality Act, or
(vi) a parolee who has been paroled for a
period of 1 year or more.
(2) Unlawful alien.--The term ``unlawful alien'' means an
individual who is not--
(A) a United States Citizen; or
(B) an individual described in paragraph (1)(B) at
the time the individual applies for, receives, or
attempts to receive any Federal benefit.
SEC. 602. STATE AFDC AGENCIES REQUIRED TO PROVIDE INFORMATION ON
ILLEGAL ALIENS TO THE IMMIGRATION AND NATURALIZATION
SERVICE.
(a) In General.--Section 402(a) (42 U.S.C. 602(a)), as amended by
sections 101, 102, 201, 401, 402, 403, 404, 405, 406, and 407 is
amended--
(1) by striking ``and'' at the end of paragraph (54);
(2) by striking the period at the end of paragraph (55) and
inserting ``; and''; and
(3) by inserting after paragraph (55) the following new
paragraph:
``(56) 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.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by subsection (a) shall take effect on the first
day of the first fiscal year beginning after the date of the
enactment of this Act.
(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.
TITLE VII--MISCELLANEOUS
SEC. 701. RESTRICTION ON PAYMENT OF BENEFITS TO INDIVIDUALS CONFINED BY
COURT ORDER TO PUBLIC INSTITUTIONS PURSUANT TO VERDICTS
OF NOT GUILTY BY REASON OF INSANITY OR OTHER MENTAL
DISORDER.
(a) In General.--Section 202(x)(1) (42 U.S.C. 402(x)(1)) is
amended--
(1) by inserting ``(A)'' after ``(1)'', and
(2) by adding at the end the following new subparagraph:
``(B) Notwithstanding any other provision of this title, no monthly
benefits shall be paid under this section or under section 223 to any
individual for any month during which such individual is confined in
any public institution by a court order pursuant to a verdict that the
individual is guilty, but insane, or not guilty of an offense by reason
of insanity (or by reason of a similar finding, such as a mental
disease, a mental defect, or mental incompetence).''.
(b) Conforming Amendments.--
(1) The heading for section 202(x) (42 U.S.C. 402(x)) is
amended by inserting ``and Certain Other Inmates of Public
Institutions'' after ``Prisoners''.
(2) Section 202(x)(3) (42 U.S.C. 402(x)(3)) is amended by
striking ``any individual'' and all that follows and inserting
``any individual confined as described in paragraph (1) if the
jail, prison, penal institution, correctional facility, or
other public institution to which such individual is so
confined is under the jurisdiction of such agency and the
Secretary requires such information to carry out the provisions
of this section.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply with respect to
benefits for months beginning on or after the first day of the
first fiscal year beginning after the date of the enactment of
this Act.
(2) Special rule regarding payments to institutions.--The
amendment made by subsection (a) shall not apply to any payment
with respect to any individual, if, as of the date of the
enactment of this Act, such payment is made directly to the
public institution to compensate such institution for the
expense of institutionalizing such individual.
SEC. 702. AFDC RECIPIENTS REQUIRED TO UNDERGO NECESSARY SUBSTANCE ABUSE
TREATMENT AS A CONDITION OF RECEIVING AFDC.
(a) In General.--Section 402(a) (42 U.S.C. 602(a)) is amended by
inserting after paragraph (34) the following new paragraph:
``(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 participate, and must maintain
satisfactory participation (as determined by the
State), in an appropriate addiction treatment program,
and must be required to submit to tests for the
presence of alcohol or drugs, without advance notice,
during and after such participation;
``(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; and
``(C) no applicant or recipient shall be considered
to have failed to comply with any requirement imposed
pursuant to subparagraph (A) if an appropriate
addiction treatment program is unavailable to such
applicant or recipient under the system established by
the State for determining priorities with respect to
the availability of treatment services.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by subsection (a) shall take effect on the first
day of the first fiscal year beginning after the date of the
enactment of this Act.
(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. 703. 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. For
purposes of conducting research projects under this section, 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. 704. FRAUD AND ADMINISTRATIVE EFFICIENCY.
(a) Demonstration Projects.--
(1) In general.--The Secretary of Health and Human Services
(hereafter referred to in this section as the ``Secretary'')
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) General Requirements on Electronic Benefit Transfer Projects.--
Federal financial participation shall not be available for any
electronic benefit transfer system developed under a project conducted
by a State under title IV of the Social Security Act (including the
demonstration projects conducted under subsection (a)) unless--
(1) the system is budget neutral to the Federal Government;
(2) any cost savings associated with the system are shared
proportionately by the State and the Federal Government;
(3) reasonable time frames for development and
implementation of the system are provided and such time frames
result in minimal disruption to beneficiaries;
(4) the number of transactions allowed to beneficiaries and
service fees charged to beneficiaries for transactions under
the system ensure reasonable access to benefits;
(5) the State has implemented anti-fraud procedures under
the system;
(6) the State has in place procedures which ensure the
privacy of beneficiaries receiving benefits under the system;
(7) payments for any hardware necessary for the system are
made by the State;
(8) if the State adapts the system for use in other Federal
or State programs, the State and the Secretary agree on an
equitable cost accounting system; and
(9) the State conducts such evaluations and provides such
reports to the Secretary as the Secretary determines
appropriate.
(c) Commission.--
(1) In general.--Not later than 6 months after the date of
the enactment of this Act, 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. 705. SSI BENEFITS FOR DRUG AND ALCOHOL ADDICTS.
(a) In General.--Section 1614(a) (42 U.S.C. 1382c(a)) is amended by
adding at the end the following new paragraph:
``(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) (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) (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. 706. STATE FRAUD CONTROL PROGRAMS.
(a) Fraud Control Programs Made Mandatory.--Section 402(a)(40) (42
U.S.C. 602(a)(40)) is amended by striking ``, if the State'' through
``the State will'' and inserting ``that the State will establish and
operate a fraud control program under section 416, will''.
(b) Sanction for Fraud Made Permanent.--Section 416(b) (42 U.S.C.
616(b)) is amended by striking ``(A) for period of'' through the period
at the end and inserting ``permanently upon the occasion of any such
offense.''.
(c) Conforming Amendments.--Section 416 (42 U.S.C. 616) is
amended--
(1) by amending subsection (a) to read as follows:
``(a) Each State, in the administration of its State plan approved
under section 402, shall establish and operate a fraud control program
in accordance with this section.''; and
(2) in subsection (f), by striking ``which has elected to
establish and operate a fraud control program under this
section''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the first
day of the first fiscal year beginning after the date of the
enactment of this Act.
(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 requirements imposed by the amendments made by
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
requirements before the end of the 2-year period that begins
with the date of the enactment of this Act.
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