Welfare Reform Bill: HR 3734, Final Passage
H.R. 3734 by KASICH (R-OH) -- Personal Responsibility, Work
Opportunity and Medicaid Restructuring Act of 1996
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LEGI-SLATE Report for the 104th Congress Fri, August 9, 1996 12:44pm (EDT)
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BILL TEXT Report for H.R.3734
As finally approved by the House and Senate (Enrolled)
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H.R.3734 As finally approved by the House and Senate (Enrolled)
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SENATE VOTE ON H.R. 3734
Abraham, Ashcroft, Baucus, Bennett, Biden, Bond, Breaux, Brown, Bryan, Burns,
Byrd, Campbell, Chafee, Coats, Cochran, Cohen, Conrad, Coverdell, Craig,
D'Amato, DeWine, Domenici, Dorgan, Exon, Faircloth, Feingold, Ford, Frahm,
Frist, Gorton, Graham, Gramm, Grams, Grassley, Gregg, Harkin, Hatch,
Hatfield, Heflin, Helms, Hollings, Hutchison, Inhofe, Jeffords, Johnston,
Kassebaum, Kempthorne, Kerry, Kohl, Kyl, Levin, Lieberman, Lott, Lugar, Mack,
McCain, McConnell, Mikulski, Murkowski, Nickles, Nunn, Pressler, Reid, Robb,
Rockefeller, Roth, Santorum, Shelby, Simpson, Smith, Snowe, Specter, Stevens,
Thomas, Thompson, Thurmond, Warner, Wyden
NAYS--21
Akaka, Bingaman, Boxer, Bradley, Bumpers, Daschle, Dodd, Feinstein, Glenn,
Inouye, Kennedy, Kerrey, Lautenberg, Leahy, Moseley-Braun, Moynihan, Murray,
Pell, Sarbanes, Simon, Wellstone,
NOT VOTING--1
Pryor
H. R. 3734
One Hundred Fourth Congress
of the
United States of America
A T T H E SECOND S E S S I O N
Begun and held at the City of Washington on Wednesday, the third day of
January, one thousand nine hundred and ninety-six
An Act
To provide for reconciliation pursuant to section 201(a)(1) of the
concurrent resolution on the budget for fiscal year 1997.
==============================
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 "Personal Responsibility and Work
Opportunity Reconciliation Act of 1996".
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private
organizations.
Sec. 105. Census data on grandparents as primary caregivers for their
grandchildren.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and related
provisions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant Social Security
card required.
Sec. 112. Modifications to the job opportunities for certain low-income
individuals program.
Sec. 113. Secretarial submission of legislative proposal for technical and
conforming amendments.
Sec. 114. Assuring medicaid coverage for low-income families.
Sec. 115. Denial of assistance and benefits for certain drug-related
convictions.
Sec. 116. Effective date; transition rule.
TITLE II--SUPPLEMENTAL SECURITY INCOME
Sec. 200. Reference to Social Security Act.
Subtitle A--Eligibility Restrictions
Sec. 201. Denial of SSI benefits for 10 years to individuals found to have
fraudulently misrepresented residence in order to obtain
benefits simultaneously in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation and parole
violators.
Sec. 203. Treatment of prisoners.
Sec. 204. Effective date of application for benefits.
Subtitle B--Benefits for Disabled Children
Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized individuals
whose medical costs are covered by private insurance.
Sec. 215. Regulations.
Subtitle C--Additional Enforcement Provision
Sec. 221. Installment payment of large past-due supplemental security income
benefits.
Sec. 222. Regulations.
Subtitle D--Studies Regarding Supplemental Security Income Program
Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study by General Accounting Office.
TITLE III--CHILD SUPPORT
Sec. 300. Reference to Social Security Act.
Subtitle A--Eligibility for Services; Distribution of Payments
Sec. 301. State obligation to provide child support enforcement services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification of hearings.
Subtitle B--Locate and Case Tracking
Sec. 311. State case registry.
Sec. 312. Collection and disbursement of support payments.
Sec. 313. State directory of new hires.
Sec. 314. Amendments concerning income withholding.
Sec. 315. Locator information from interstate networks.
Sec. 316. Expansion of the Federal Parent Locator Service.
Sec. 317. Collection and use of Social Security numbers for use in child
support enforcement.
Subtitle C--Streamlining and Uniformity of Procedures
Sec. 321. Adoption of uniform State laws.
Sec. 322. Improvements to full faith and credit for child support orders.
Sec. 323. Administrative enforcement in interstate cases.
Sec. 324. Use of forms in interstate enforcement.
Sec. 325. State laws providing expedited procedures.
Subtitle D--Paternity Establishment
Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of part A assistance.
Subtitle E--Program Administration and Funding
Sec. 341. Performance-based incentives and penalties.
Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.
Subtitle F--Establishment and Modification of Support Orders
Sec. 351. Simplified process for review and adjustment of child support
orders.
Sec. 352. Furnishing consumer reports for certain purposes relating to child
support.
Sec. 353. Nonliability for financial institutions providing financial records
to State child support enforcement agencies in child support
cases.
Subtitle G--Enforcement of Support Orders
Sec. 361. Internal Revenue Service collection of arrearages.
Sec. 362. Authority to collect support from Federal employees.
Sec. 363. Enforcement of child support obligations of members of the Armed
Forces.
Sec. 364. Voiding of fraudulent transfers.
Sec. 365. Work requirement for persons owing past-due child support.
Sec. 366. Definition of support order.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Liens.
Sec. 369. State law authorizing suspension of licenses.
Sec. 370. Denial of passports for nonpayment of child support.
Sec. 371. International support enforcement.
Sec. 372. Financial institution data matches.
Sec. 373. Enforcement of orders against paternal or maternal grandparents in
cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for the support
of a child.
Sec. 375. Child support enforcement for Indian tribes.
Subtitle H--Medical Support
Sec. 381. Correction to ERISA definition of medical child support order.
Sec. 382. Enforcement of orders for health care coverage.
Subtitle I--Enhancing Responsibility and Opportunity for Non-Residential
Parents
Sec. 391. Grants to States for access and visitation programs.
Subtitle J--Effective Dates and Conforming Amendments
Sec. 395. Effective dates and conforming amendments.
TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
Sec. 400. Statements of national policy concerning welfare and immigration.
Subtitle A--Eligibility for Federal Benefits
Sec. 401. Aliens who are not qualified aliens ineligible for Federal public
benefits.
Sec. 402. Limited eligibility of qualified aliens for certain Federal
programs.
Sec. 403. Five-year limited eligibility of qualified aliens for Federal
means-tested public benefit.
Sec. 404. Notification and information reporting.
Subtitle B--Eligibility for State and Local Public Benefits Programs
Sec. 411. Aliens who are not qualified aliens or nonimmigrants ineligible for
State and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for State
public benefits.
Subtitle C--Attribution of Income and Affidavits of Support
Sec. 421. Federal attribution of sponsor's income and resources to alien.
Sec. 422. Authority for States to provide for attribution of sponsors income
and resources to the alien with respect to State programs.
Sec. 423. Requirements for sponsor's affidavit of support.
Subtitle D--General Provisions
Sec. 431. Definitions.
Sec. 432. Verification of eligibility for Federal public benefits.
Sec. 433. Statutory construction.
Sec. 434. Communication between State and local government agencies and the
Immigration and Naturalization Service.
Sec. 435. Qualifying quarters.
Subtitle E--Conforming Amendments Relating to Assisted Housing
Sec. 441. Conforming amendments relating to assisted housing.
Subtitle F--Earning Income Credit Denied to Unauthorized Employees
Sec. 451. Earned income credit denied to individuals not authorized to be
employed in the United States.
TITLE V--CHILD PROTECTION
Sec. 501. Authority of States to make foster care maintenance payments on
behalf of children in any private child care institution.
Sec. 502. Extension of enhanced match for implementation of statewide
automated child welfare information systems.
Sec. 503. National random sample study of child welfare.
Sec. 504. Redesignation of section 1123.
Sec. 505. Kinship care.
TITLE VI--CHILD CARE
Sec. 601. Short title and references.
Sec. 602. Goals.
Sec. 603. Authorization of appropriations and entitlement authority.
Sec. 604. Lead agency.
Sec. 605. Application and plan.
Sec. 606. Limitation on State allotments.
Sec. 607. Activities to improve the quality of child care.
Sec. 608. Repeal of early childhood development and before- and after-school
care requirement.
Sec. 609. Administration and enforcement.
Sec. 610. Payments.
Sec. 611. Annual report and audits.
Sec. 612. Report by the Secretary.
Sec. 613. Allotments.
Sec. 614. Definitions.
Sec. 615. Effective date.
TITLE VII--CHILD NUTRITION PROGRAMS
Subtitle A--National School Lunch Act
Sec. 701. State disbursement to schools.
Sec. 702. Nutritional and other program requirements.
Sec. 703. Free and reduced price policy statement.
Sec. 704. Special assistance.
Sec. 705. Miscellaneous provisions and definitions.
Sec. 706. Summer food service program for children.
Sec. 707. Commodity distribution.
Sec. 708. Child and adult care food program.
Sec. 709. Pilot projects.
Sec. 710. Reduction of paperwork.
Sec. 711. Information on income eligibility.
Sec. 712. Nutrition guidance for child nutrition programs.
Subtitle B--Child Nutrition Act of 1966
Sec. 721. Special milk program.
Sec. 722. Free and reduced price policy statement.
Sec. 723. School breakfast program authorization.
Sec. 724. State administrative expenses.
Sec. 725. Regulations.
Sec. 726. Prohibitions.
Sec. 727. Miscellaneous provisions and definitions.
Sec. 728. Accounts and records.
Sec. 729. Special supplemental nutrition program for women, infants, and
children.
Sec. 730. Cash grants for nutrition education.
Sec. 731. Nutrition education and training.
Subtitle C--Miscellaneous Provisions
Sec. 741. Coordination of school lunch, school breakfast, and summer food
service programs.
Sec. 742. Requirements relating to provision of benefits based on
citizenship, alienage, or immigration status under the
National School Lunch Act, the Child Nutrition Act of 1966,
and certain other acts.
TITLE VIII--FOOD STAMPS AND COMMODITY DISTRIBUTION
Subtitle A--Food Stamp Program
Sec. 801. Definition of certification period.
Sec. 802. Definition of coupon.
Sec. 803. Treatment of children living at home.
Sec. 804. Adjustment of thrifty food plan.
Sec. 805. Definition of homeless individual.
Sec. 806. State option for eligibility standards.
Sec. 807. Earnings of students.
Sec. 808. Energy assistance.
Sec. 809. Deductions from income.
Sec. 810. Vehicle allowance.
Sec. 811. Vendor payments for transitional housing counted as income.
Sec. 812. Simplified calculation of income for the self-employed.
Sec. 813. Doubled penalties for violating food stamp program requirements.
Sec. 814. Disqualification of convicted individuals.
Sec. 815. Disqualification.
Sec. 816. Caretaker exemption.
Sec. 817. Employment and training.
Sec. 818. Food stamp eligibility.
Sec. 819. Comparable treatment for disqualification.
Sec. 820. Disqualification for receipt of multiple food stamp benefits.
Sec. 821. Disqualification of fleeing felons.
Sec. 822. Cooperation with child support agencies.
Sec. 823. Disqualification relating to child support arrears.
Sec. 824. Work requirement.
Sec. 825. Encouragement of electronic benefit transfer systems.
Sec. 826. Value of minimum allotment.
Sec. 827. Benefits on recertification.
Sec. 828. Optional combined allotment for expedited households.
Sec. 829. Failure to comply with other means-tested public assistance
programs.
Sec. 830. Allotments for households residing in centers.
Sec. 831. Condition precedent for approval of retail food stores and
wholesale food concerns.
Sec. 832. Authority to establish authorization periods.
Sec. 833. Information for verifying eligibility for authorization.
Sec. 834. Waiting period for stores that fail to meet authorization criteria.
Sec. 835. Operation of food stamp offices.
Sec. 836. State employee and training standards.
Sec. 837. Exchange of law enforcement information.
Sec. 838. Expedited coupon service.
Sec. 839. Withdrawing fair hearing requests.
Sec. 840. Income, eligibility, and immigration status verification systems.
Sec. 841. Investigations.
Sec. 842. Disqualification of retailers who intentionally submit falsified
applications.
Sec. 843. Disqualification of retailers who are disqualified under the WIC
program.
Sec. 844. Collection of overissuances.
Sec. 845. Authority to suspend stores violating program requirements pending
administrative and judicial review.
Sec. 846. Expanded criminal forfeiture for violations.
Sec. 847. Limitation on Federal match.
Sec. 848. Standards for administration.
Sec. 849. Work supplementation or support program.
Sec. 850. Waiver authority.
Sec. 851. Response to waivers.
Sec. 852. Employment initiatives program.
Sec. 853. Reauthorization.
Sec. 854. Simplified food stamp program.
Sec. 855. Study of the use of food stamps to purchase vitamins and minerals.
Sec. 856. Deficit reduction.
Subtitle B--Commodity Distribution Programs
Sec. 871. Emergency food assistance program.
Sec. 872. Food bank demonstration project.
Sec. 873. Hunger prevention programs.
Sec. 874. Report on entitlement commodity processing.
Subtitle C--Electronic Benefit Transfer Systems
Sec. 891. Provisions to encourage electronic benefit transfer systems.
TITLE IX--MISCELLANEOUS
Sec. 901. Appropriation by State legislatures.
Sec. 902. Sanctioning for testing positive for controlled substances.
Sec. 903. Elimination of housing assistance with respect to fugitive felons
and probation and parole violators.
Sec. 904. Sense of the Senate regarding the inability of the noncustodial
parent to pay child support.
Sec. 905. Establishing national goals to prevent teenage pregnancies.
Sec. 906. Sense of the Senate regarding enforcement of statutory rape laws.
Sec. 907. Provisions to encourage electronic benefit transfer systems.
Sec. 908. Reduction of block grants to States for social services; use of
vouchers.
Sec. 909. Rules relating to denial of earned income credit on basis of
disqualified income.
Sec. 910. Modification of adjusted gross income definition for earned income
credit.
Sec. 911. Fraud under means-tested welfare and public assistance programs.
Sec. 912. Abstinence education.
Sec. 913. Change in reference.
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
SEC. 101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful society.
(2) Marriage is an essential institution of a successful society
which promotes the interests of children.
(3) Promotion of responsible fatherhood and motherhood is integral to
successful child rearing and the well-being of children.
(4) In 1992, only 54 percent of single-parent families with children
had a child support order established and, of that 54 percent, only about
one-half received the full amount due. Of the cases enforced through the
public child support enforcement system, only 18 percent of the caseload
has a collection.
(5) The number of individuals receiving aid to families with
dependent children (in this section referred to as "AFDC") has more than
tripled since 1965. More than two-thirds of these recipients are
children. Eighty-nine percent of children receiving AFDC benefits now
live in homes in which no father is present.
(A)(i) The average monthly number of children receiving AFDC
benefits--
(I) was 3,300,000 in 1965;
(II) was 6,200,000 in 1970;
(III) was 7,400,000 in 1980; and
(IV) was 9,300,000 in 1992.
(ii) While the number of children receiving AFDC benefits
increased nearly threefold between 1965 and 1992, the total number of
children in the United States aged 0 to 18 has declined by 5.5
percent.
(B) The Department of Health and Human Services has estimated
that 12,000,000 children will receive AFDC benefits within 10 years.
(C) The increase in the number of children receiving public
assistance is closely related to the increase in births to unmarried
women. Between 1970 and 1991, the percentage of live births to
unmarried women increased nearly threefold, from 10.7 percent to 29.5
percent.
(6) The increase of out-of-wedlock pregnancies and births is well
documented as follows:
(A) It is estimated that the rate of nonmarital teen pregnancy
rose 23 percent from 54 pregnancies per 1,000 unmarried teenagers in
1976 to 66.7 pregnancies in 1991. The overall rate of nonmarital
pregnancy rose 14 percent from 90.8 pregnancies per 1,000 unmarried
women in 1980 to 103 in both 1991 and 1992. In contrast, the overall
pregnancy rate for married couples decreased 7.3 percent between 1980
and 1991, from 126.9 pregnancies per 1,000 married women in 1980 to
117.6 pregnancies in 1991.
(B) The total of all out-of-wedlock births between 1970 and 1991
has risen from 10.7 percent to 29.5 percent and if the current trend
continues, 50 percent of all births by the year 2015 will be out-of-
wedlock.
(7) An effective strategy to combat teenage pregnancy must address
the issue of male responsibility, including statutory rape culpability
and prevention. The increase of teenage pregnancies among the youngest
girls is particularly severe and is linked to predatory sexual practices
by men who are significantly older.
(A) It is estimated that in the late 1980's, the rate for girls
age 14 and under giving birth increased 26 percent.
(B) Data indicates that at least half of the children born to
teenage mothers are fathered by adult men. Available data suggests
that almost 70 percent of births to teenage girls are fathered by men
over age 20.
(C) Surveys of teen mothers have revealed that a majority of such
mothers have histories of sexual and physical abuse, primarily with
older adult men.
(8) The negative consequences of an out-of-wedlock birth on the
mother, the child, the family, and society are well documented as
follows:
(A) Young women 17 and under who give birth outside of marriage
are more likely to go on public assistance and to spend more years on
welfare once enrolled. These combined effects of "younger and longer"
increase total AFDC costs per household by 25 percent to 30 percent
for 17-year-olds.
(B) Children born out-of-wedlock have a substantially higher risk
of being born at a very low or moderately low birth weight.
(C) Children born out-of-wedlock are more likely to experience
low verbal cognitive attainment, as well as more child abuse, and
neglect.
(D) Children born out-of-wedlock were more likely to have lower
cognitive scores, lower educational aspirations, and a greater
likelihood of becoming teenage parents themselves.
(E) Being born out-of-wedlock significantly reduces the chances
of the child growing up to have an intact marriage.
(F) Children born out-of-wedlock are 3 times more likely to be on
welfare when they grow up.
(9) Currently 35 percent of children in single-parent homes were born
out-of-wedlock, nearly the same percentage as that of children in single-
parent homes whose parents are divorced (37 percent). While many parents
find themselves, through divorce or tragic circumstances beyond their
control, facing the difficult task of raising children alone,
nevertheless, the negative consequences of raising children in single-
parent homes are well documented as follows:
(A) Only 9 percent of married-couple families with children under
18 years of age have income below the national poverty level. In
contrast, 46 percent of female-headed households with children under
18 years of age are below the national poverty level.
(B) Among single-parent families, nearly 1/2 of the mothers who
never married received AFDC while only 1/5 of divorced mothers
received AFDC.
(C) Children born into families receiving welfare assistance are
3 times more likely to be on welfare when they reach adulthood than
children not born into families receiving welfare.
(D) Mothers under 20 years of age are at the greatest risk of
bearing low birth weight babies.
(E) The younger the single-parent mother, the less likely she is
to finish high school.
(F) Young women who have children before finishing high school
are more likely to receive welfare assistance for a longer period of
time.
(G) Between 1985 and 1990, the public cost of births to teenage
mothers under the aid to families with dependent children program,
the food stamp program, and the medicaid program has been estimated
at $120,000,000,000.
(H) The absence of a father in the life of a child has a negative
effect on school performance and peer adjustment.
(I) Children of teenage single parents have lower cognitive
scores, lower educational aspirations, and a greater likelihood of
becoming teenage parents themselves.
(J) Children of single-parent homes are 3 times more likely to
fail and repeat a year in grade school than are children from intact
2-parent families.
(K) Children from single-parent homes are almost 4 times more
likely to be expelled or suspended from school.
(L) Neighborhoods with larger percentages of youth aged 12
through 20 and areas with higher percentages of single-parent
households have higher rates of violent crime.
(M) Of those youth held for criminal offenses within the State
juvenile justice system, only 29.8 percent lived primarily in a home
with both parents. In contrast to these incarcerated youth, 73.9
percent of the 62,800,000 children in the Nation's resident
population were living with both parents.
(10) Therefore, in light of this demonstration of the crisis in our
Nation, it is the sense of the Congress that prevention of out-of-wedlock
pregnancy and reduction in out-of-wedlock birth are very important
Government interests and the policy contained in part A of title IV of
the Social Security Act (as amended by section 103(a) of this Act) is
intended to address the crisis.
SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title an
amendment is expressed in terms of an amendment to or repeal of a section or
other provision, the reference shall be considered to be made to that section
or other provision of the Social Security Act.
SEC. 103. BLOCK GRANTS TO STATES.
(a) In General.--Part A of title IV (42 U.S.C. 601 et seq.) is amended--
(1) by striking all that precedes section 418 (as added by section
603(b)(2) of this Act) and inserting the following:
"PART A--BLOCK GRANTS TO STATES FOR TEMPORARY
ASSISTANCE FOR NEEDY FAMILIES
"SEC. 401. PURPOSE.
"(a) In General.--The purpose of this part is to increase the flexibility
of States in operating a program designed to--
"(1) provide assistance to needy families so that children may be
cared for in their own homes or in the homes of relatives;
"(2) end the dependence of needy parents on government benefits by
promoting job preparation, work, and marriage;
"(3) prevent and reduce the incidence of out-of-wedlock pregnancies
and establish annual numerical goals for preventing and reducing the
incidence of these pregnancies; and
"(4) encourage the formation and maintenance of two-parent families.
"(b) No Individual Entitlement.--This part shall not be interpreted to
entitle any individual or family to assistance under any State program funded
under this part.
"SEC. 402. ELIGIBLE STATES; STATE PLAN.
"(a) In General.--As used in this part, the term 'eligible State' means,
with respect to a fiscal year, a State that, during the 2-year period
immediately preceding the fiscal year, has submitted to the Secretary a plan
that the Secretary has found includes the following:
"(1) Outline of family assistance program.--
"(A) General provisions.--A written document that outlines how
the State intends to do the following:
"(i) Conduct a program, designed to serve all political
subdivisions in the State (not necessarily in a uniform manner),
that provides assistance to needy families with (or expecting)
children and provides parents with job preparation, work, and
support services to enable them to leave the program and become
self-sufficient.
"(ii) Require a parent or caretaker receiving assistance
under the program to engage in work (as defined by the State)
once the State determines the parent or caretaker is ready to
engage in work, or once the parent or caretaker has received
assistance under the program for 24 months (whether or not
consecutive), whichever is earlier.
"(iii) Ensure that parents and caretakers receiving
assistance under the program engage in work activities in
accordance with section 407.
"(iv) Take such reasonable steps as the State deems necessary
to restrict the use and disclosure of information about
individuals and families receiving assistance under the program
attributable to funds provided by the Federal Government.
"(v) Establish goals and take action to prevent and reduce
the incidence of out-of-wedlock pregnancies, with special
emphasis on teenage pregnancies, and establish numerical goals
for reducing the illegitimacy ratio of the State (as defined in
section 403(a)(2)(B)) for calendar years 1996 through 2005.
"(vi) Conduct a program, designed to reach State and local
law enforcement officials, the education system, and relevant
counseling services, that provides education and training on the
problem of statutory rape so that teenage pregnancy prevention
programs may be expanded in scope to include men.
"(B) Special provisions.--
"(i) The document shall indicate whether the State intends to
treat families moving into the State from another State
differently than other families under the program, and if so, how
the State intends to treat such families under the program.
"(ii) The document shall indicate whether the State intends
to provide assistance under the program to individuals who are
not citizens of the United States, and if so, shall include an
overview of such assistance.
"(iii) The document shall set forth objective criteria for
the delivery of benefits and the determination of eligibility and
for fair and equitable treatment, including an explanation of how
the State will provide opportunities for recipients who have been
adversely affected to be heard in a State administrative or
appeal process.
"(iv) Not later than 1 year after the date of enactment of
this Act, unless the chief executive officer of the State opts
out of this provision by notifying the Secretary, a State shall,
consistent with the exception provided in section 407(e)(2),
require a parent or caretaker receiving assistance under the
program who, after receiving such assistance for 2 months is not
exempt from work requirements and is not engaged in work, as
determined under section 407(c), to participate in community
service employment, with minimum hours per week and tasks to be
determined by the State.
"(2) Certification that the state will operate a child support
enforcement program.--A certification by the chief executive officer of
the State that, during the fiscal year, the State will operate a child
support enforcement program under the State plan approved under part D.
"(3) Certification that the state will operate a foster care and
adoption assistance program.--A certification by the chief executive
officer of the State that, during the fiscal year, the State will operate
a foster care and adoption assistance program under the State plan
approved under part E, and that the State will take such actions as are
necessary to ensure that children receiving assistance under such part
are eligible for medical assistance under the State plan under title XIX.
"(4) Certification of the administration of the program.--A
certification by the chief executive officer of the State specifying
which State agency or agencies will administer and supervise the program
referred to in paragraph (1) for the fiscal year, which shall include
assurances that local governments and private sector organizations--
"(A) have been consulted regarding the plan and design of welfare
services in the State so that services are provided in a manner
appropriate to local populations; and
"(B) have had at least 45 days to submit comments on the plan and
the design of such services.
"(5) Certification that the state will provide indians with equitable
access to assistance.--A certification by the chief executive officer of
the State that, during the fiscal year, the State will provide each
member of an Indian tribe, who is domiciled in the State and is not
eligible for assistance under a tribal family assistance plan approved
under section 412, with equitable access to assistance under the State
program funded under this part attributable to funds provided by the
Federal Government.
"(6) Certification of standards and procedures to ensure against
program fraud and abuse.--A certification by the chief executive officer
of the State that the State has established and is enforcing standards
and procedures to ensure against program fraud and abuse, including
standards and procedures concerning nepotism, conflicts of interest among
individuals responsible for the administration and supervision of the
State program, kickbacks, and the use of political patronage.
"(7) Optional certification of standards and procedures to ensure
that the state will screen for and identify domestic violence.--
"(A) In general.--At the option of the State, a certification by
the chief executive officer of the State that the State has
established and is enforcing standards and procedures to--
"(i) screen and identify individuals receiving assistance
under this part with a history of domestic violence while
maintaining the confidentiality of such individuals;
"(ii) refer such individuals to counseling and supportive
services; and
"(iii) waive, pursuant to a determination of good cause,
other program requirements such as time limits (for so long as
necessary) for individuals receiving assistance, residency
requirements, child support cooperation requirements, and family
cap provisions, in cases where compliance with such requirements
would make it more difficult for individuals receiving assistance
under this part to escape domestic violence or unfairly penalize
such individuals who are or have been victimized by such
violence, or individuals who are at risk of further domestic
violence.
"(B) Domestic violence defined.--For purposes of this paragraph,
the term 'domestic violence' has the same meaning as the term
'battered or subjected to extreme cruelty', as defined in section
408(a)(7)(C)(iii).
"(b) Public Availability of State Plan Summary.--The State shall make
available to the public a summary of any plan submitted by the State under
this section.
"SEC. 403. GRANTS TO STATES.
"(a) Grants.--
"(1) Family assistance grant.--
"(A) In general.--Each eligible State shall be entitled to
receive from the Secretary, for each of fiscal years 1996, 1997,
1998, 1999, 2000, 2001, and 2002, a grant in an amount equal to the
State family assistance grant.
"(B) State family assistance grant defined.--As used in this
part, the term 'State family assistance grant' means the greatest
of--
"(i) 1/3 of the total amount required to be paid to the
State under former section 403 (as in effect on September 30,
1995) for fiscal years 1992, 1993, and 1994 (other than with
respect to amounts expended by the State for child care under
subsection (g) or (i) of former section 402 (as so in effect));
"(ii)(I) the total amount required to be paid to the State
under former section 403 for fiscal year 1994 (other than with
respect to amounts expended by the State for child care under
subsection (g) or (i) of former section 402 (as so in effect));
plus
"(II) an amount equal to 85 percent of the amount (if any) by
which the total amount required to be paid to the State under
former section 403(a)(5) for emergency assistance for fiscal year
1995 exceeds the total amount required to be paid to the State
under former section 403(a)(5) for fiscal year 1994, if, during
fiscal year 1994 or 1995, the Secretary approved under former
section 402 an amendment to the former State plan with respect to
the provision of emergency assistance; or
"(iii) 4/3 of the total amount required to be paid to the
State under former section 403 (as in effect on September 30,
1995) for the 1st 3 quarters of fiscal year 1995 (other than with
respect to amounts expended by the State under the State plan
approved under part F (as so in effect) or for child care under
subsection (g) or (i) of former section 402 (as so in effect)),
plus the total amount required to be paid to the State for fiscal
year 1995 under former section 403(l) (as so in effect).
"(C) Total amount required to be paid to the state under former
section 403 defined.--As used in this part, the term 'total amount
required to be paid to the State under former section 403' means,
with respect to a fiscal year--
"(i) in the case of a State to which section 1108 does not
apply, the sum of--
"(I) the Federal share of maintenance assistance
expenditures for the fiscal year, before reduction pursuant
to subparagraph (B) or (C) of section 403(b)(2) (as in effect
on September 30, 1995), as reported by the State on ACF Form
231;
"(II) the Federal share of administrative expenditures
(including administrative expenditures for the development of
management information systems) for the fiscal year, as
reported by the State on ACF Form 231;
"(III) the Federal share of emergency assistance
expenditures for the fiscal year, as reported by the State on
ACF Form 231;
"(IV) the Federal share of expenditures for the fiscal
year with respect to child care pursuant to subsections (g)
and (i) of former section 402 (as in effect on September 30,
1995), as reported by the State on ACF Form 231; and
"(V) the Federal obligations made to the State under
section 403 for the fiscal year with respect to the State
program operated under part F (as in effect on September 30,
1995), as determined by the Secretary, including additional
obligations or reductions in obligations made after the close
of the fiscal year; and
"(ii) in the case of a State to which section 1108 applies,
the lesser of--
"(I) the sum described in clause (i); or
"(II) the total amount certified by the Secretary under
former section 403 (as in effect during the fiscal year) with
respect to the territory.
"(D) Information to be used in determining amounts.--
"(i) For fiscal years 1992 and 1993.--
"(I) In determining the amounts described in subclauses
(I) through (IV) of subparagraph (C)(i) for any State for
each of fiscal years 1992 and 1993, the Secretary shall use
information available as of April 28, 1995.
"(II) In determining the amount described in subparagraph
(C)(i)(V) for any State for each of fiscal years 1992 and
1993, the Secretary shall use information available as of
January 6, 1995.
"(ii) For fiscal year 1994.--In determining the amounts
described in subparagraph (C)(i) for any State for fiscal year
1994, the Secretary shall use information available as of April
28, 1995.
"(iii) For fiscal year 1995.--
"(I) In determining the amount described in subparagraph
(B)(ii)(II) for any State for fiscal year 1995, the Secretary
shall use the information which was reported by the States
and estimates made by the States with respect to emergency
assistance expenditures and was available as of August 11,
1995.
"(II) In determining the amounts described in subclauses
(I) through (III) of subparagraph (C)(i) for any State for
fiscal year 1995, the Secretary shall use information
available as of October 2, 1995.
"(III) In determining the amount described in
subparagraph (C)(i)(IV) for any State for fiscal year 1995,
the Secretary shall use information available as of February
28, 1996.
"(IV) In determining the amount described in subparagraph
(C)(i)(V) for any State for fiscal year 1995, the Secretary
shall use information available as of October 5, 1995.
"(E) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are appropriated for
fiscal years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 such sums
as are necessary for grants under this paragraph.
"(2) Bonus to reward decrease in illegitimacy.--
"(A) In general.--Each eligible State shall be entitled to
receive from the Secretary a grant for each bonus year for which the
State demonstrates a net decrease in out-of-wedlock births.
"(B) Amount of grant.--
"(i) If 5 eligible states.--If there are 5 eligible States
for a bonus year, the amount of the grant shall be $20,000,000.
"(ii) If fewer than 5 eligible states.--If there are fewer
than 5 eligible States for a bonus year, the amount of the grant
shall be $25,000,000.
"(C) Definitions.--As used in this paragraph:
"(i) Eligible state.--
"(I) In general.--The term 'eligible State' means a State
that the Secretary determines meets the following
requirements:
"(aa) The State demonstrates that the number of out-
of-wedlock births that occurred in the State during the
most recent 2-year period for which such information is
available decreased as compared to the number of such
births that occurred during the previous 2-year period,
and the magnitude of the decrease for the State for the
period is not exceeded by the magnitude of the
corresponding decrease for 5 or more other States for the
period.
"(bb) The rate of induced pregnancy terminations in
the State for the fiscal year is less than the rate of
induced pregnancy terminations in the State for fiscal
year 1995.
"(II) Disregard of changes in data due to changed
reporting methods.--In making the determination required by
subclause (I), the Secretary shall disregard--
"(aa) any difference between the number of out-of-
wedlock births that occurred in a State for a fiscal year
and the number of out-of-wedlock births that occurred in
a State for fiscal year 1995 which is attributable to a
change in State methods of reporting data used to
calculate the number of out-of-wedlock births; and
"(bb) any difference between the rate of induced
pregnancy terminations in a State for a fiscal year and
such rate for fiscal year 1995 which is attributable to a
change in State methods of reporting data used to
calculate such rate.
"(ii) Bonus year.--The term 'bonus year' means fiscal years
1999, 2000, 2001, and 2002.
"(D) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are appropriated for
fiscal years 1999 through 2002, such sums as are necessary for grants
under this paragraph.
"(3) Supplemental grant for population increases in certain states.--
"(A) In general.--Each qualifying State shall, subject to
subparagraph (F), be entitled to receive from the Secretary--
"(i) for fiscal year 1998 a grant in an amount equal to 2.5
percent of the total amount required to be paid to the State
under former section 403 (as in effect during fiscal year 1994)
for fiscal year 1994; and
"(ii) for each of fiscal years 1999, 2000, and 2001, a grant
in an amount equal to the sum of--
"(I) the amount (if any) required to be paid to the State
under this paragraph for the immediately preceding fiscal
year; and
"(II) 2.5 percent of the sum of--
"(aa) the total amount required to be paid to the
State under former section 403 (as in effect during
fiscal year 1994) for fiscal year 1994; and
"(bb) the amount (if any) required to be paid to the
State under this paragraph for the fiscal year preceding
the fiscal year for which the grant is to be made.
"(B) Preservation of grant without increases for states failing
to remain qualifying states.--Each State that is not a qualifying
State for a fiscal year specified in subparagraph (A)(ii) but was a
qualifying State for a prior fiscal year shall, subject to
subparagraph (F), be entitled to receive from the Secretary for the
specified fiscal year, a grant in an amount equal to the amount
required to be paid to the State under this paragraph for the most
recent fiscal year for which the State was a qualifying State.
"(C) Qualifying state.--
"(i) In general.--For purposes of this paragraph, a State is
a qualifying State for a fiscal year if--
"(I) the level of welfare spending per poor person by the
State for the immediately preceding fiscal year is less than
the national average level of State welfare spending per poor
person for such preceding fiscal year; and
"(II) the population growth rate of the State (as
determined by the Bureau of the Census) for the most recent
fiscal year for which information is available exceeds the
average population growth rate for all States (as so
determined) for such most recent fiscal year.
"(ii) State must qualify in fiscal year 1997.--
Notwithstanding clause (i), a State shall not be a qualifying
State for any fiscal year after 1998 by reason of clause (i) if
the State is not a qualifying State for fiscal year 1998 by
reason of clause (i).
"(iii) Certain states deemed qualifying states.--For purposes
of this paragraph, a State is deemed to be a qualifying State for
fiscal years 1998, 1999, 2000, and 2001 if--
"(I) the level of welfare spending per poor person by the
State for fiscal year 1994 is less than 35 percent of the
national average level of State welfare spending per poor
person for fiscal year 1994; or
"(II) the population of the State increased by more than
10 percent from April 1, 1990 to July 1, 1994, according to
the population estimates in publication CB94-204 of the
Bureau of the Census.
"(D) Definitions.--As used in this paragraph:
"(i) Level of welfare spending per poor person.--The term
'level of State welfare spending per poor person' means, with
respect to a State and a fiscal year--
"(I) the sum of--
"(aa) the total amount required to be paid to the
State under former section 403 (as in effect during
fiscal year 1994) for fiscal year 1994; and
"(bb) the amount (if any) paid to the State under
this paragraph for the immediately preceding fiscal year;
divided by
"(II) the number of individuals, according to the 1990
decennial census, who were residents of the State and whose
income was below the poverty line.
"(ii) National average level of state welfare spending per
poor person.--The term 'national average level of State welfare
spending per poor person' means, with respect to a fiscal year,
an amount equal to--
"(I) the total amount required to be paid to the States
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994; divided by
"(II) the number of individuals, according to the 1990
decennial census, who were residents of any State and whose
income was below the poverty line.
"(iii) State.--The term 'State' means each of the 50 States
of the United States and the District of Columbia.
"(E) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are appropriated for
fiscal years 1998, 1999, 2000, and 2001 such sums as are necessary
for grants under this paragraph, in a total amount not to exceed
$800,000,000.
"(F) Grants reduced pro rata if insufficient appropriations.--If
the amount appropriated pursuant to this paragraph for a fiscal year
is less than the total amount of payments otherwise required to be
made under this paragraph for the fiscal year, then the amount
otherwise payable to any State for the fiscal year under this
paragraph shall be reduced by a percentage equal to the amount so
appropriated divided by such total amount.
"(G) Budget scoring.--Notwithstanding section 257(b)(2) of the
Balanced Budget and Emergency Deficit Control Act of 1985, the
baseline shall assume that no grant shall be made under this
paragraph after fiscal year 2001.
"(4) Bonus to reward high performance states.--
"(A) In general.--The Secretary shall make a grant pursuant to
this paragraph to each State for each bonus year for which the State
is a high performing State.
"(B) Amount of grant.--
"(i) In general.--Subject to clause (ii) of this
subparagraph, the Secretary shall determine the amount of the
grant payable under this paragraph to a high performing State for
a bonus year, which shall be based on the score assigned to the
State under subparagraph (D)(i) for the fiscal year that
immediately precedes the bonus year.
"(ii) Limitation.--The amount payable to a State under this
paragraph for a bonus year shall not exceed 5 percent of the
State family assistance grant.
"(C) Formula for measuring state performance.--Not later than 1
year after the date of the enactment of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996, the Secretary, in
consultation with the National Governors' Association and the
American Public Welfare Association, shall develop a formula for
measuring State performance in operating the State program funded
under this part so as to achieve the goals set forth in section
401(a).
"(D) Scoring of state performance; setting of performance
thresholds.--For each bonus year, the Secretary shall--
"(i) use the formula developed under subparagraph (C) to
assign a score to each eligible State for the fiscal year that
immediately precedes the bonus year; and
"(ii) prescribe a performance threshold in such a manner so
as to ensure that--
"(I) the average annual total amount of grants to be made
under this paragraph for each bonus year equals $200,000,000;
and
"(II) the total amount of grants to be made under this
paragraph for all bonus years equals $1,000,000,000.
"(E) Definitions.--As used in this paragraph:
"(i) Bonus year.--The term 'bonus year' means fiscal years
1999, 2000, 2001, 2002, and 2003.
"(ii) High performing state.--The term 'high performing
State' means, with respect to a bonus year, an eligible State
whose score assigned pursuant to subparagraph (D)(i) for the
fiscal year immediately preceding the bonus year equals or
exceeds the performance threshold prescribed under subparagraph
(D)(ii) for such preceding fiscal year.
"(F) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are appropriated for
fiscal years 1999 through 2003 $1,000,000,000 for grants under this
paragraph.
"(b) Contingency Fund.--
"(1) Establishment.--There is hereby established in the Treasury of
the United States a fund which shall be known as the 'Contingency Fund
for State Welfare Programs' (in this section referred to as the 'Fund').
"(2) Deposits into fund.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are appropriated for
fiscal years 1997, 1998, 1999, 2000, and 2001 such sums as are necessary
for payment to the Fund in a total amount not to exceed $2,000,000,000.
"(3) Grants.--
"(A) Provisional payments.--If an eligible State submits to the
Secretary a request for funds under this paragraph during an eligible
month, the Secretary shall, subject to this paragraph, pay to the
State, from amounts appropriated pursuant to paragraph (2), an amount
equal to the amount of funds so requested.
"(B) Payment priority.--The Secretary shall make payments under
subparagraph (A) in the order in which the Secretary receives
requests for such payments.
"(C) Limitations.--
"(i) Monthly payment to a state.--The total amount paid to a
single State under subparagraph (A) during a month shall not
exceed 1/12 of 20 percent of the State family assistance grant.
"(ii) Payments to all states.--The total amount paid to all
States under subparagraph (A) during fiscal years 1997 through
2001 shall not exceed the total amount appropriated pursuant to
paragraph (2).
"(4) Annual reconciliation.--Notwithstanding paragraph (3), at the
end of each fiscal year, each State shall remit to the Secretary an
amount equal to the amount (if any) by which the total amount paid to the
State under paragraph (3) during the fiscal year exceeds--
"(A) the Federal medical assistance percentage for the State for
the fiscal year (as defined in section 1905(b), as in effect on
September 30, 1995) of the amount (if any) by which--
"(i) if the Secretary makes a payment to the State under
section 418(a)(2) in the fiscal year--
"(I) the expenditures under the State program funded
under this part for the fiscal year, excluding any amounts
made available by the Federal Government (except amounts paid
to the State under paragraph (3) during the fiscal year that
have been expended by the State) and any amounts expended by
the State during the fiscal year for child care; exceeds
"(II) historic State expenditures (as defined in section
409(a)(7)(B)(iii)), excluding the expenditures by the State
for child care under subsection (g) or (i) of section 402 (as
in effect during fiscal year 1994) for fiscal year 1994 minus
any Federal payment with respect to such child care
expenditures; or
"(ii) if the Secretary does not make a payment to the State
under section 418(a)(2) in the fiscal year--
"(I) the expenditures under the State program funded
under this part for the fiscal year (excluding any amounts
made available by the Federal Government, except amounts paid
to the State under paragraph (3) during the fiscal year that
have been expended by the State); exceeds
"(II) historic State expenditures (as defined in section
409(a)(7)(B)(iii)); multiplied by
"(B) 1/12 times the number of months during the fiscal year for
which the Secretary makes a payment to the State under this
subsection.
"(5) Eligible month.--As used in paragraph (3)(A), the term 'eligible
month' means, with respect to a State, a month in the 2-month period that
begins with any month for which the State is a needy State.
"(6) Needy state.--For purposes of paragraph (5), a State is a needy
State for a month if--
"(A) the average rate of--
"(i) total unemployment in such State (seasonally adjusted)
for the period consisting of the most recent 3 months for which
data for all States are published equals or exceeds 6.5 percent;
and
"(ii) total unemployment in such State (seasonally adjusted)
for the 3-month period equals or exceeds 110 percent of such
average rate for either (or both) of the corresponding 3-month
periods ending in the 2 preceding calendar years; or
"(B) as determined by the Secretary of Agriculture (in the
discretion of the Secretary of Agriculture), the monthly average
number of individuals (as of the last day of each month)
participating in the food stamp program in the State in the then most
recently concluded 3-month period for which data are available
exceeds by not less than 10 percent the lesser of--
"(i) the monthly average number of individuals (as of the
last day of each month) in the State that would have participated
in the food stamp program in the corresponding 3-month period in
fiscal year 1994 if the amendments made by titles IV and VIII of
the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 had been in effect throughout fiscal year 1994; or
"(ii) the monthly average number of individuals (as of the
last day of each month) in the State that would have participated
in the food stamp program in the corresponding 3-month period in
fiscal year 1995 if the amendments made by titles IV and VIII of
the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 had been in effect throughout fiscal year 1995.
"(7) Other terms defined.--As used in this subsection:
"(A) State.--The term 'State' means each of the 50 States of the
United States and the District of Columbia.
"(B) Secretary.--The term 'Secretary' means the Secretary of the
Treasury.
"(8) Annual reports.--The Secretary shall annually report to the
Congress on the status of the Fund.
"SEC. 404. USE OF GRANTS.
"(a) General Rules.--Subject to this part, a State to which a grant is
made under section 403 may use the grant--
"(1) in any manner that is reasonably calculated to accomplish the
purpose of this part, including to provide low income households with
assistance in meeting home heating and cooling costs; or
"(2) in any manner that the State was authorized to use amounts
received under part A or F, as such parts were in effect on September 30,
1995.
"(b) Limitation on Use of Grant for Administrative Purposes.--
"(1) Limitation.--A State to which a grant is made under section 403
shall not expend more than 15 percent of the grant for administrative
purposes.
"(2) Exception.--Paragraph (1) shall not apply to the use of a grant
for information technology and computerization needed for tracking or
monitoring required by or under this part.
"(c) Authority To Treat Interstate Immigrants Under Rules of Former
State.--A State operating a program funded under this part may apply to a
family the rules (including benefit amounts) of the program funded under this
part of another State if the family has moved to the State from the other
State and has resided in the State for less than 12 months.
"(d) Authority To Use Portion of Grant for Other Purposes.--
"(1) In general.--A State may use not more than 30 percent of the
amount of any grant made to the State under section 403(a) for a fiscal
year to carry out a State program pursuant to any or all of the following
provisions of law:
"(A) Title XX of this Act.
"(B) The Child Care and Development Block Grant Act of 1990.
"(2) Limitation on amount transferable to title xx programs.--
Notwithstanding paragraph (1), not more than 1/3 of the total amount
paid to a State under this part for a fiscal year that is used to carry
out State programs pursuant to provisions of law specified in paragraph
(1) may be used to carry out State programs pursuant to title XX.
"(3) Applicable rules.--
"(A) In general.--Except as provided in subparagraph (B) of this
paragraph, any amount paid to a State under this part that is used to
carry out a State program pursuant to a provision of law specified in
paragraph (1) shall not be subject to the requirements of this part,
but shall be subject to the requirements that apply to Federal funds
provided directly under the provision of law to carry out the
program, and the expenditure of any amount so used shall not be
considered to be an expenditure under this part.
"(B) Exception relating to title xx programs.--All amounts paid
to a State under this part that are used to carry out State programs
pursuant to title XX shall be used only for programs and services to
children or their families whose income is less than 200 percent of
the income official poverty line (as defined by the Office of
Management and Budget, and revised annually in accordance with
section 673(2) of the Omnibus Budget Reconciliation Act of 1981)
applicable to a family of the size involved.
"(e) Authority to Reserve Certain Amounts for Assistance.--A State may
reserve amounts paid to the State under this part for any fiscal year for the
purpose of providing, without fiscal year limitation, assistance under the
State program funded under this part.
"(f) Authority to Operate Employment Placement Program.--A State to which
a grant is made under section 403 may use the grant to make payments (or
provide job placement vouchers) to State-approved public and private job
placement agencies that provide employment placement services to individuals
who receive assistance under the State program funded under this part.
"(g) Implementation of Electronic Benefit Transfer System.--A State to
which a grant is made under section 403 is encouraged to implement an
electronic benefit transfer system for providing assistance under the State
program funded under this part, and may use the grant for such purpose.
"(h) Use of Funds for Individual Development Accounts.--
"(1) In general.--A State to which a grant is made under section 403
may use the grant to carry out a program to fund individual development
accounts (as defined in paragraph (2)) established by individuals
eligible for assistance under the State program funded under this part.
"(2) Individual development accounts.--
"(A) Establishment.--Under a State program carried out under
paragraph (1), an individual development account may be established
by or on behalf of an individual eligible for assistance under the
State program operated under this part for the purpose of enabling
the individual to accumulate funds for a qualified purpose described
in subparagraph (B).
"(B) Qualified purpose.--A qualified purpose described in this
subparagraph is 1 or more of the following, as provided by the
qualified entity providing assistance to the individual under this
subsection:
"(i) Postsecondary educational expenses.--Postsecondary
educational expenses paid from an individual development account
directly to an eligible educational institution.
"(ii) First home purchase.--Qualified acquisition costs with
respect to a qualified principal residence for a qualified first-
time homebuyer, if paid from an individual development account
directly to the persons to whom the amounts are due.
"(iii) Business capitalization.--Amounts paid from an
individual development account directly to a business
capitalization account which is established in a federally
insured financial institution and is restricted to use solely for
qualified business capitalization expenses.
"(C) Contributions to be from earned income.--An individual may
only contribute to an individual development account such amounts as
are derived from earned income, as defined in section 911(d)(2) of
the Internal Revenue Code of 1986.
"(D) Withdrawal of funds.--The Secretary shall establish such
regulations as may be necessary to ensure that funds held in an
individual development account are not withdrawn except for 1 or more
of the qualified purposes described in subparagraph (B).
"(3) Requirements.--
"(A) In general.--An individual development account established
under this subsection shall be a trust created or organized in the
United States and funded through periodic contributions by the
establishing individual and matched by or through a qualified entity
for a qualified purpose (as described in paragraph (2)(B)).
"(B) Qualified entity.--As used in this subsection, the term
'qualified entity' means--
"(i) a not-for-profit organization described in section
501(c)(3) of the Internal Revenue Code of 1986 and exempt from
taxation under section 501(a) of such Code; or
"(ii) a State or local government agency acting in
cooperation with an organization described in clause (i).
"(4) No reduction in benefits.--Notwithstanding any other provision
of Federal law (other than the Internal Revenue Code of 1986) that
requires consideration of 1 or more financial circumstances of an
individual, for the purpose of determining eligibility to receive, or the
amount of, any assistance or benefit authorized by such law to be
provided to or for the benefit of such individual, funds (including
interest accruing) in an individual development account under this
subsection shall be disregarded for such purpose with respect to any
period during which such individual maintains or makes contributions into
such an account.
"(5) Definitions.--As used in this subsection--
"(A) Eligible educational institution.--The term 'eligible
educational institution' means the following:
"(i) An institution described in section 481(a)(1) or 1201(a)
of the Higher Education Act of 1965 (20 U.S.C. 1088(a)(1) or
1141(a)), as such sections are in effect on the date of the
enactment of this subsection.
"(ii) An area vocational education school (as defined in
subparagraph (C) or (D) of section 521(4) of the Carl D. Perkins
Vocational and Applied Technology Education Act (20 U.S.C.
2471(4))) which is in any State (as defined in section 521(33) of
such Act), as such sections are in effect on the date of the
enactment of this subsection.
"(B) Post-secondary educational expenses.--The term 'post-
secondary educational expenses' means--
"(i) tuition and fees required for the enrollment or
attendance of a student at an eligible educational institution,
and
"(ii) fees, books, supplies, and equipment required for
courses of instruction at an eligible educational institution.
"(C) Qualified acquisition costs.--The term 'qualified
acquisition costs' means the costs of acquiring, constructing, or
reconstructing a residence. The term includes any usual or reasonable
settlement, financing, or other closing costs.
"(D) Qualified business.--The term 'qualified business' means any
business that does not contravene any law or public policy (as
determined by the Secretary).
"(E) Qualified business capitalization expenses.--The term
'qualified business capitalization expenses' means qualified
expenditures for the capitalization of a qualified business pursuant
to a qualified plan.
"(F) Qualified expenditures.--The term 'qualified expenditures'
means expenditures included in a qualified plan, including capital,
plant, equipment, working capital, and inventory expenses.
"(G) Qualified first-time homebuyer.--
"(i) In general.--The term 'qualified first-time homebuyer'
means a taxpayer (and, if married, the taxpayer's spouse) who has
no present ownership interest in a principal residence during the
3-year period ending on the date of acquisition of the principal
residence to which this subsection applies.
"(ii) Date of acquisition.--The term 'date of acquisition'
means the date on which a binding contract to acquire, construct,
or reconstruct the principal residence to which this subparagraph
applies is entered into.
"(H) Qualified plan.--The term 'qualified plan' means a business
plan which--
"(i) is approved by a financial institution, or by a
nonprofit loan fund having demonstrated fiduciary integrity,
"(ii) includes a description of services or goods to be sold,
a marketing plan, and projected financial statements, and
"(iii) may require the eligible individual to obtain the
assistance of an experienced entrepreneurial advisor.
"(I) Qualified principal residence.--The term 'qualified
principal residence' means a principal residence (within the meaning
of section 1034 of the Internal Revenue Code of 1986), the qualified
acquisition costs of which do not exceed 100 percent of the average
area purchase price applicable to such residence (determined in
accordance with paragraphs (2) and (3) of section 143(e) of such
Code).
"(i) Sanction Welfare Recipients for Failing To Ensure That Minor
Dependent Children Attend School.--A State to which a grant is made under
section 403 shall not be prohibited from sanctioning a family that includes
an adult who has received assistance under any State program funded under
this part attributable to funds provided by the Federal Government or under
the food stamp program, as defined in section 3(h) of the Food Stamp Act of
1977, if such adult fails to ensure that the minor dependent children of such
adult attend school as required by the law of the State in which the minor
children reside.
"(j) Requirement for High School Diploma or Equivalent.--A State to which
a grant is made under section 403 shall not be prohibited from sanctioning a
family that includes an adult who is older than age 20 and younger than age
51 and who has received assistance under any State program funded under this
part attributable to funds provided by the Federal Government or under the
food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977,
if such adult does not have, or is not working toward attaining, a secondary
school diploma or its recognized equivalent unless such adult has been
determined in the judgment of medical, psychiatric, or other appropriate
professionals to lack the requisite capacity to complete successfully a
course of study that would lead to a secondary school diploma or its
recognized equivalent.
"SEC. 405. ADMINISTRATIVE PROVISIONS.
"(a) Quarterly.--The Secretary shall pay each grant payable to a State
under section 403 in quarterly installments, subject to this section.
"(b) Notification.--Not later than 3 months before the payment of any
such quarterly installment to a State, the Secretary shall notify the State
of the amount of any reduction determined under section 412(a)(1)(B) with
respect to the State.
"(c) Computation and Certification of Payments to States.--
"(1) Computation.--The Secretary shall estimate the amount to be paid
to each eligible State for each quarter under this part, such estimate to
be based on a report filed by the State containing an estimate by the
State of the total sum to be expended by the State in the quarter under
the State program funded under this part and such other information as
the Secretary may find necessary.
"(2) Certification.--The Secretary of Health and Human Services shall
certify to the Secretary of the Treasury the amount estimated under
paragraph (1) with respect to a State, reduced or increased to the extent
of any overpayment or underpayment which the Secretary of Health and
Human Services determines was made under this part to the State for any
prior quarter and with respect to which adjustment has not been made
under this paragraph.
"(d) Payment Method.--Upon receipt of a certification under subsection
(c)(2) with respect to a State, the Secretary of the Treasury shall, through
the Fiscal Service of the Department of the Treasury and before audit or
settlement by the General Accounting Office, pay to the State, at the time or
times fixed by the Secretary of Health and Human Services, the amount so
certified.
"SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.
"(a) Loan Authority.--
"(1) In general.--The Secretary shall make loans to any loan-eligible
State, for a period to maturity of not more than 3 years.
"(2) Loan-eligible state.--As used in paragraph (1), the term 'loan-
eligible State' means a State against which a penalty has not been
imposed under section 409(a)(1).
"(b) Rate of Interest.--The Secretary shall charge and collect interest
on any loan made under this section at a rate equal to the current average
market yield on outstanding marketable obligations of the United States with
remaining periods to maturity comparable to the period to maturity of the
loan.
"(c) Use of Loan.--A State shall use a loan made to the State under this
section only for any purpose for which grant amounts received by the State
under section 403(a) may be used, including--
"(1) welfare anti-fraud activities; and
"(2) the provision of assistance under the State program to Indian
families that have moved from the service area of an Indian tribe with a
tribal family assistance plan approved under section 412.
"(d) Limitation on Total Amount of Loans to a State.--The cumulative
dollar amount of all loans made to a State under this section during fiscal
years 1997 through 2002 shall not exceed 10 percent of the State family
assistance grant.
"(e) Limitation on Total Amount of Outstanding Loans.--The total dollar
amount of loans outstanding under this section may not exceed $1,700,000,000.
"(f) Appropriation.--Out of any money in the Treasury of the United
States not otherwise appropriated, there are appropriated such sums as may be
necessary for the cost of loans under this section.
"SEC. 407. MANDATORY WORK REQUIREMENTS.
"(a) Participation Rate Requirements.--
"(1) All families.--A State to which a grant is made under section
403 for a fiscal year shall achieve the minimum participation rate
specified in the following table for the fiscal year with respect to all
families receiving assistance under the State program funded under this
part:
The minimum
participation
"If the fiscal year is: rate is:
1997........................................ 25
1998........................................ 30
1999........................................ 35
2000........................................ 40
2001........................................ 45
2002 or thereafter.......................... 50.
"(2) 2-parent families.--A State to which a grant is made under
section 403 for a fiscal year shall achieve the minimum participation
rate specified in the following table for the fiscal year with respect to
2-parent families receiving assistance under the State program funded
under this part:
The minimum
participation
"If the fiscal year is: rate is:
1997........................................ 75
1998........................................ 75
1999 or thereafter.......................... 90.
"(b) Calculation of Participation Rates.--
"(1) All families.--
"(A) Average monthly rate.--For purposes of subsection (a)(1),
the participation rate for all families of a State for a fiscal year
is the average of the participation rates for all families of the
State for each month in the fiscal year.
"(B) Monthly participation rates.--The participation rate of a
State for all families of the State for a month, expressed as a
percentage, is--
"(i) the number of families receiving assistance under the
State program funded under this part that include an adult or a
minor child head of household who is engaged in work for the
month; divided by
"(ii) the amount by which--
"(I) the number of families receiving such assistance
during the month that include an adult or a minor child head
of household receiving such assistance; exceeds
"(II) the number of families receiving such assistance
that are subject in such month to a penalty described in
subsection (e)(1) but have not been subject to such penalty
for more than 3 months within the preceding 12-month period
(whether or not consecutive).
"(2) 2-parent families.--
"(A) Average monthly rate.--For purposes of subsection (a)(2),
the participation rate for 2-parent families of a State for a fiscal
year is the average of the participation rates for 2-parent families
of the State for each month in the fiscal year.
"(B) Monthly participation rates.--The participation rate of a
State for 2-parent families of the State for a month shall be
calculated by use of the formula set forth in paragraph (1)(B),
except that in the formula the term 'number of 2-parent families'
shall be substituted for the term 'number of families' each place
such latter term appears.
"(3) Pro rata reduction of participation rate due to caseload
reductions not required by federal law.--
"(A) In general.--The Secretary shall prescribe regulations for
reducing the minimum participation rate otherwise required by this
section for a fiscal year by the number of percentage points equal to
the number of percentage points (if any) by which--
"(i) the average monthly number of families receiving
assistance during the immediately preceding fiscal year under the
State program funded under this part is less than
"(ii) the average monthly number of families that received
aid under the State plan approved under part A (as in effect on
September 30, 1995) during fiscal year 1995.
The minimum participation rate shall not be reduced to the extent
that the Secretary determines that the reduction in the number of
families receiving such assistance is required by Federal law.
"(B) Eligibility changes not counted.--The regulations required
by subparagraph (A) shall not take into account families that are
diverted from a State program funded under this part as a result of
differences in eligibility criteria under a State program funded
under this part and eligibility criteria under the State program
operated under the State plan approved under part A (as such plan and
such part were in effect on September 30, 1995). Such regulations
shall place the burden on the Secretary to prove that such families
were diverted as a direct result of differences in such eligibility
criteria.
"(4) State option to include individuals receiving assistance under a
tribal family assistance plan.--For purposes of paragraphs (1)(B) and
(2)(B), a State may, at its option, include families in the State that
are receiving assistance under a tribal family assistance plan approved
under section 412.
"(5) State option for participation requirement exemptions.--For any
fiscal year, a State may, at its option, not require an individual who is
a single custodial parent caring for a child who has not attained 12
months of age to engage in work, and may disregard such an individual in
determining the participation rates under subsection (a) for not more
than 12 months.
"(c) Engaged in Work.--
"(1) General rules.--
"(A) All families.--For purposes of subsection (b)(1)(B)(i), a
recipient is engaged in work for a month in a fiscal year if the
recipient is participating in work activities for at least the
minimum average number of hours per week specified in the following
table during the month, not fewer than 20 hours per week of which are
attributable to an activity described in paragraph (1), (2), (3),
(4), (5), (6), (7), (8), or (12) of subsection (d), subject to this
subsection:
The minimum
"If the month is average number of
in fiscal year: hours per week is:
1997...................................... 20
1998...................................... 20
1999...................................... 25
2000 or thereafter........................ 30.
"(B) 2-parent families.--For purposes of subsection (b)(2)(B), an
individual is engaged in work for a month in a fiscal year if--
"(i) the individual is making progress in work activities for
at least 35 hours per week during the month, not fewer than 30
hours per week of which are attributable to an activity described
in paragraph (1), (2), (3), (4), (5), (6), (7), (8), or (12) of
subsection (d), subject to this subsection; and
"(ii) if the family of the individual receives federally-
funded child care assistance and an adult in the family is not
disabled or caring for a severely disabled child, the
individual's spouse is making progress in work activities during
the month, not fewer than 20 hours per week of which are
attributable to an activity described in paragraph (1), (2), (3),
(4), (5), or (7) of subsection (d).
"(2) Limitations and special rules.--
"(A) Number of weeks for which job search counts as work.--
"(i) Limitation.--Notwithstanding paragraph (1) of this
subsection, an individual shall not be considered to be engaged
in work by virtue of participation in an activity described in
subsection (d)(6) of a State program funded under this part,
after the individual has participated in such an activity for 6
weeks (or, if the unemployment rate of the State is at least 50
percent greater than the unemployment rate of the United States,
12 weeks), or if the participation is for a week that immediately
follows 4 consecutive weeks of such participation.
"(ii) Limited authority to count less than full week of
participation.--For purposes of clause (i) of this subparagraph,
on not more than 1 occasion per individual, the State shall
consider participation of the individual in an activity described
in subsection (d)(6) for 3 or 4 days during a week as a week of
participation in the activity by the individual.
"(B) Single parent with child under age 6 deemed to be meeting
work participation requirements if parent is engaged in work for 20
hours per week.--For purposes of determining monthly participation
rates under subsection (b)(1)(B)(i), a recipient in a 1-parent family
who is the parent of a child who has not attained 6 years of age is
deemed to be engaged in work for a month if the recipient is engaged
in work for an average of at least 20 hours per week during the
month.
"(C) Teen head of household who maintains satisfactory school
attendance deemed to be meeting work participation requirements.--For
purposes of determining monthly participation rates under sub-section
(b)(1)(B)(i), a recipient who is a single head of household and has
not attained 20 years of age is deemed, subject to subparagraph (D)
of this paragraph, to be engaged in work for a month in a fiscal year
if the recipient--
"(i) maintains satisfactory attendance at secondary school or
the equivalent during the month; or
"(ii) participates in education directly related to
employment for at least the minimum average number of hours per
week specified in the table set forth in paragraph (1)(A) of this
subsection.
"(D) Number of persons that may be treated as engaged in work by
virtue of participation in vocational education activities or being a
teen head of household who maintains satisfactory school
attendance.--For purposes of determining monthly participation rates
under paragraphs (1)(B)(i) and (2)(B) of subsection (b), not more
than 20 percent of individuals in all families and in 2-parent
families may be determined to be engaged in work in the State for a
month by reason of participation in vocational educational training
or deemed to be engaged in work by reason of subparagraph (C) of this
paragraph.
"(d) Work Activities Defined.--As used in this section, the term 'work
activities' means--
"(1) unsubsidized employment;
"(2) subsidized private sector employment;
"(3) subsidized public sector employment;
"(4) work experience (including work associated with the refurbishing
of publicly assisted housing) if sufficient private sector employment is
not available;
"(5) on-the-job training;
"(6) job search and job readiness assistance;
"(7) community service programs;
"(8) vocational educational training (not to exceed 12 months with
respect to any individual);
"(9) job skills training directly related to employment;
"(10) education directly related to employment, in the case of a
recipient who has not received a high school diploma or a certificate of
high school equivalency;
"(11) satisfactory attendance at secondary school or in a course of
study leading to a certificate of general equivalence, in the case of a
recipient who has not completed secondary school or received such a
certificate; and
"(12) the provision of child care services to an individual who is
participating in a community service program.
"(e) Penalties Against Individuals.--
"(1) In general.--Except as provided in paragraph (2), if an
individual in a family receiving assistance under the State program
funded under this part refuses to engage in work required in accordance
with this section, the State shall--
"(A) reduce the amount of assistance otherwise payable to the
family pro rata (or more, at the option of the State) with respect to
any period during a month in which the individual so refuses; or
"(B) terminate such assistance,
subject to such good cause and other exceptions as the State may
establish.
"(2) Exception.--Notwithstanding paragraph (1), a State may not
reduce or terminate assistance under the State program funded under this
part based on a refusal of an individual to work if the individual is a
single custodial parent caring for a child who has not attained 6 years
of age, and the individual proves that the individual has a demonstrated
inability (as determined by the State) to obtain needed child care, for 1
or more of the following reasons:
"(A) Unavailability of appropriate child care within a reasonable
distance from the individual's home or work site.
"(B) Unavailability or unsuitability of informal child care by a
relative or under other arrangements.
"(C) Unavailability of appropriate and affordable formal child
care arrangements.
"(f) Nondisplacement in Work Activities.--
"(1) In general.--Subject to paragraph (2), an adult in a family
receiving assistance under a State program funded under this part
attributable to funds provided by the Federal Government may fill a
vacant employment position in order to engage in a work activity
described in subsection (d).
"(2) No filling of certain vacancies.--No adult in a work activity
described in subsection (d) which is funded, in whole or in part, by
funds provided by the Federal Government shall be employed or assigned--
"(A) when any other individual is on layoff from the same or any
substantially equivalent job; or
"(B) if the employer has terminated the employment of any regular
employee or otherwise caused an involuntary reduction of its
workforce in order to fill the vacancy so created with an adult
described in paragraph (1).
"(3) Grievance procedure.--A State with a program funded under this
part shall establish and maintain a grievance procedure for resolving
complaints of alleged violations of paragraph (2).
"(4) No preemption.--Nothing in this subsection shall preempt or
supersede any provision of State or local law that provides greater
protection for employees from displacement.
"(g) Sense of the Congress.--It is the sense of the Congress that in
complying with this section, each State that operates a program funded under
this part is encouraged to assign the highest priority to requiring adults in
2-parent families and adults in single-parent families that include older
preschool or school-age children to be engaged in work activities.
"(h) Sense of the Congress That States Should Impose Certain Requirements
on Noncustodial, Nonsupporting Minor Parents.--It is the sense of the
Congress that the States should require noncustodial, nonsupporting parents
who have not attained 18 years of age to fulfill community work obligations
and attend appropriate parenting or money management classes after school.
"(i) Review of Implementation of State Work Programs.--During fiscal year
1999, the Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate shall hold hearings and engage in other
appropriate activities to review the implementation of this section by the
States, and shall invite the Governors of the States to testify before them
regarding such implementation. Based on such hearings, such Committees may
introduce such legislation as may be appropriate to remedy any problems with
the State programs operated pursuant to this section.
"SEC. 408. PROHIBITIONS; REQUIREMENTS.
"(a) In General.--
"(1) No assistance for families without a minor child.--A State to
which a grant is made under section 403 shall not use any part of the
grant to provide assistance to a family--
"(A) unless the family includes--
"(i) a minor child who resides with a custodial parent or
other adult caretaker relative of the child; or
"(ii) a pregnant individual; and
"(B) if the family includes an adult who has received assistance
under any State program funded under this part attributable to funds
provided by the Federal Government, for 60 months (whether or not
consecutive) after the date the State program funded under this part
commences (unless an exception described in subparagraph (B), (C), or
(D) of paragraph (7) applies).
"(2) Reduction or elimination of assistance for noncooperation in
establishing paternity or obtaining child support.--If the agency
responsible for administering the State plan approved under part D
determines that an individual is not cooperating with the State in
establishing paternity or in establishing, modifying, or enforcing a
support order with respect to a child of the individual, and the
individual does not qualify for any good cause or other exception
established by the State pursuant to section 454(29), then the State--
"(A) shall deduct from the assistance that would otherwise be
provided to the family of the individual under the State program
funded under this part an amount equal to not less than 25 percent of
the amount of such assistance; and
"(B) may deny the family any assistance under the State program.
"(3) No assistance for families not assigning certain support rights
to the state.--
"(A) In general.--A State to which a grant is made under section
403 shall require, as a condition of providing assistance to a family
under the State program funded under this part, that a member of the
family assign to the State any rights the family member may have (on
behalf of the family member or of any other person for whom the
family member has applied for or is receiving such assistance) to
support from any other person, not exceeding the total amount of
assistance so provided to the family, which accrue (or have accrued)
before the date the family leaves the program, which assignment, on
and after the date the family leaves the program, shall not apply
with respect to any support (other than support collected pursuant to
section 464) which accrued before the family received such assistance
and which the State has not collected by--
"(i) September 30, 2000, if the assignment is executed on or
after October 1, 1997, and before October 1, 2000; or
"(ii) the date the family leaves the program, if the
assignment is executed on or after October 1, 2000.
"(B) Limitation.--A State to which a grant is made under section
403 shall not require, as a condition of providing assistance to any
family under the State program funded under this part, that a member
of the family assign to the State any rights to support described in
subparagraph (A) which accrue after the date the family leaves the
program.
"(4) No assistance for teenage parents who do not attend high school
or other equivalent training program.--A State to which a grant is made
under section 403 shall not use any part of the grant to provide
assistance to an individual who has not attained 18 years of age, is not
married, has a minor child at least 12 weeks of age in his or her care,
and has not successfully completed a high-school education (or its
equivalent), if the individual does not participate in--
"(A) educational activities directed toward the attainment of a
high school diploma or its equivalent; or
"(B) an alternative educational or training program that has been
approved by the State.
"(5) No assistance for teenage parents not living in adult-supervised
settings.--
"(A) In general.--
"(i) Requirement.--Except as provided in subparagraph (B), a
State to which a grant is made under section 403 shall not use
any part of the grant to provide assistance to an individual
described in clause (ii) of this subparagraph if the individual
and the minor child referred to in clause (ii)(II) do not reside
in a place of residence maintained by a parent, legal guardian,
or other adult relative of the individual as such parent's,
guardian's, or adult relative's own home.
"(ii) Individual described.-- For purposes of clause (i), an
individual described in this clause is an individual who--
"(I) has not attained 18 years of age; and
"(II) is not married, and has a minor child in his or her
care.
"(B) Exception.--
"(i) Provision of, or assistance in locating, adult-
supervised living arrangement.--In the case of an individual who
is described in clause (ii), the State agency referred to in
section 402(a)(4) shall provide, or assist the individual in
locating, a second chance home, maternity home, or other
appropriate adult-supervised supportive living arrangement,
taking into consideration the needs and concerns of the
individual, unless the State agency determines that the
individual's current living arrangement is appropriate, and
thereafter shall require that the individual and the minor child
referred to in subparagraph (A)(ii)(II) reside in such living
arrangement as a condition of the continued receipt of assistance
under the State program funded under this part attributable to
funds provided by the Federal Government (or in an alternative
appropriate arrangement, should circumstances change and the
current arrangement cease to be appropriate).
"(ii) Individual described.--For purposes of clause (i), an
individual is described in this clause if the individual is
described in subparagraph (A)(ii), and--
"(I) the individual has no parent, legal guardian, or
other appropriate adult relative described in subclause (II)
of his or her own who is living or whose whereabouts are
known;
"(II) no living parent, legal guardian, or other
appropriate adult relative, who would otherwise meet
applicable State criteria to act as the individual's legal
guardian, of such individual allows the individual to live in
the home of such parent, guardian, or relative;
"(III) the State agency determines that--
"(aa) the individual or the minor child referred to
in subparagraph (A)(ii)(II) is being or has been
subjected to serious physical or emotional harm, sexual
abuse, or exploitation in the residence of the
individual's own parent or legal guardian; or
"(bb) substantial evidence exists of an act or
failure to act that presents an imminent or serious harm
if the individual and the minor child lived in the same
residence with the individual's own parent or legal
guardian; or
"(IV) the State agency otherwise determines that it is in
the best interest of the minor child to waive the requirement
of subparagraph (A) with respect to the individual or the
minor child.
"(iii) Second-chance home.--For purposes of this
subparagraph, the term 'second-chance home' means an entity that
provides individuals described in clause (ii) with a supportive
and supervised living arrangement in which such individuals are
required to learn parenting skills, including child development,
family budgeting, health and nutrition, and other skills to
promote their long-term economic independence and the well-being
of their children.
"(6) No medical services.--
"(A) In general.--A State to which a grant is made under section
403 shall not use any part of the grant to provide medical services.
"(B) Exception for prepregnancy family planning services.--As
used in subparagraph (A), the term 'medical services' does not
include prepregnancy family planning services.
"(7) No assistance for more than 5 years.--
"(A) In general.--A State to which a grant is made under section
403 shall not use any part of the grant to provide assistance to a
family that includes an adult who has received assistance under any
State program funded under this part attributable to funds provided
by the Federal Government, for 60 months (whether or not consecutive)
after the date the State program funded under this part commences,
subject to this paragraph.
"(B) Minor child exception.--In determining the number of months
for which an individual who is a parent or pregnant has received
assistance under the State program funded under this part, the State
shall disregard any month for which such assistance was provided with
respect to the individual and during which the individual was--
"(i) a minor child; and
"(ii) not the head of a household or married to the head of a
household.
"(C) Hardship exception.--
"(i) In general.--The State may exempt a family from the
application of subparagraph (A) by reason of hardship or if the
family includes an individual who has been battered or subjected
to extreme cruelty.
"(ii) Limitation.--The number of families with respect to
which an exemption made by a State under clause (i) is in effect
for a fiscal year shall not exceed 20 percent of the average
monthly number of families to which assistance is provided under
the State program funded under this part.
"(iii) Battered or subject to extreme cruelty defined.--For
purposes of clause (i), an individual has been battered or
subjected to extreme cruelty if the individual has been subjected
to--
"(I) physical acts that resulted in, or threatened to
result in, physical injury to the individual;
"(II) sexual abuse;
"(III) sexual activity involving a dependent child;
"(IV) being forced as the caretaker relative of a
dependent child to engage in nonconsensual sexual acts or
activities;
"(V) threats of, or attempts at, physical or sexual
abuse;
"(VI) mental abuse; or
"(VII) neglect or deprivation of medical care.
"(D) Disregard of months of assistance received by adult while
living on an indian reservation or in an alaskan native village with
50 percent unemployment.--In determining the number of months for
which an adult has received assistance under the State program funded
under this part, the State shall disregard any month during which the
adult lived on an Indian reservation or in an Alaskan Native village
if, during the month--
"(i) at least 1,000 individuals were living on the
reservation or in the village ; and
"(ii) at least 50 percent of the adults living on the
reservation or in the village were unemployed.
"(E) Rule of interpretation.--Subparagraph (A) shall not be
interpreted to require any State to provide assistance to any
individual for any period of time under the State program funded
under this part.
"(F) Rule of interpretation.--This part shall not be interpreted
to prohibit any State from expending State funds not originating with
the Federal Government on benefits for children or families that have
become ineligible for assistance under the State program funded under
this part by reason of subparagraph (A).
"(8) Denial of assistance for 10 years to a person found to have
fraudulently misrepresented residence in order to obtain assistance in 2
or more states.--A State to which a grant is made under section 403 shall
not use any part of the grant to provide cash assistance to an individual
during the 10-year period that begins on the date the individual is
convicted in Federal or State court of having made a fraudulent statement
or representation with respect to the place of residence of the
individual in order to receive assistance simultaneously from 2 or more
States under programs that are funded under this title, title XIX, or the
Food Stamp Act of 1977, or benefits in 2 or more States under the
supplemental security income program under title XVI. The preceding
sentence shall not apply with respect to a conviction of an individual,
for any month beginning after the President of the United States grants a
pardon with respect to the conduct which was the subject of the
conviction.
"(9) Denial of assistance for fugitive felons and probation and
parole violators.--
"(A) In general.--A State to which a grant is made under section
403 shall not use any part of the grant to provide assistance to any
individual who is--
"(i) fleeing to avoid prosecution, or custody or confinement
after conviction, under the laws of the place from which the
individual flees, for a crime, or an attempt to commit a crime,
which is a felony under the laws of the place from which the
individual flees, or which, in the case of the State of New
Jersey, is a high misdemeanor under the laws of such State; or
"(ii) violating a condition of probation or parole imposed
under Federal or State law.
The preceding sentence shall not apply with respect to conduct of an
individual, for any month beginning after the President of the United
States grants a pardon with respect to the conduct.
"(B) Exchange of information with law enforcement agencies.--If a
State to which a grant is made under section 403 establishes
safeguards against the use or disclosure of information about
applicants or recipients of assistance under the State program funded
under this part, the safeguards shall not prevent the State agency
administering the program from furnishing a Federal, State, or local
law enforcement officer, upon the request of the officer, with the
current address of any recipient if the officer furnishes the agency
with the name of the recipient and notifies the agency that--
"(i) the recipient--
"(I) is described in subparagraph (A); or
"(II) has information that is necessary for the officer
to conduct the official duties of the officer; and
"(ii) the location or apprehension of the recipient is within
such official duties.
"(10) Denial of assistance for minor children who are absent from the
home for a significant period.--
"(A) In general.--A State to which a grant is made under section
403 shall not use any part of the grant to provide assistance for a
minor child who has been, or is expected by a parent (or other
caretaker relative) of the child to be, absent from the home for a
period of 45 consecutive days or, at the option of the State, such
period of not less than 30 and not more than 180 consecutive days as
the State may provide for in the State plan submitted pursuant to
section 402.
"(B) State authority to establish good cause exceptions.--The
State may establish such good cause exceptions to subparagraph (A) as
the State considers appropriate if such exceptions are provided for
in the State plan submitted pursuant to section 402.
"(C) Denial of assistance for relative who fails to notify state
agency of absence of child.--A State to which a grant is made under
section 403 shall not use any part of the grant to provide assistance
for an individual who is a parent (or other caretaker relative) of a
minor child and who fails to notify the agency administering the
State program funded under this part of the absence of the minor
child from the home for the period specified in or provided for
pursuant to subparagraph (A), by the end of the 5-day period that
begins with the date that it becomes clear to the parent (or
relative) that the minor child will be absent for such period so
specified or provided for.
"(11) Medical assistance required to be provided for certain families
having earnings from employment or child support.--
"(A) Earnings from employment.--A State to which a grant is made
under section 403 and which has a State plan approved under title XIX
shall provide that in the case of a family that is treated (under
section 1931(b)(1)(A) for purposes of title XIX) as receiving aid
under a State plan approved under this part (as in effect on July 16,
1996), that would become ineligible for such aid because of hours of
or income from employment of the caretaker relative (as defined under
this part as in effect on such date) or because of section
402(a)(8)(B)(ii)(II) (as so in effect), and that was so treated as
receiving such aid in at least 3 of the 6 months immediately
preceding the month in which such ineligibility begins, the family
shall remain eligible for medical assistance under the State's plan
approved under title XIX for an extended period or periods as
provided in section 1925 or 1902(e)(1) (as applicable), and that the
family will be appropriately notified of such extension as required
by section 1925(a)(2).
"(B) Child support.--A State to which a grant is made under
section 403 and which has a State plan approved under title XIX shall
provide that in the case of a family that is treated (under section
1931(b)(1)(A) for purposes of title XIX) as receiving aid under a
State plan approved under this part (as in effect on July 16, 1996),
that would become ineligible for such aid as a result (wholly or
partly) of the collection of child or spousal support under part D
and that was so treated as receiving such aid in at least 3 of the 6
months immediately preceding the month in which such ineligibility
begins, the family shall remain eligible for medical assistance under
the State's plan approved under title XIX for an extended period or
periods as provided in section 1931(c)(1).
"(b) Individual Responsibility Plans.--
"(1) Assessment.--The State agency responsible for administering the
State program funded under this part shall make an initial assessment of
the skills, prior work experience, and employability of each recipient of
assistance under the program who--
"(A) has attained 18 years of age; or
"(B) has not completed high school or obtained a certificate of
high school equivalency, and is not attending secondary school.
"(2) Contents of plans.--
"(A) In general.--On the basis of the assessment made under
subsection (a) with respect to an individual, the State agency, in
consultation with the individual, may develop an individual
responsibility plan for the individual, which--
"(i) sets forth an employment goal for the individual and a
plan for moving the individual immediately into private sector
employment;
"(ii) sets forth the obligations of the individual, which may
include a requirement that the individual attend school, maintain
certain grades and attendance, keep school age children of the
individual in school, immunize children, attend parenting and
money management classes, or do other things that will help the
individual become and remain employed in the private sector;
"(iii) to the greatest extent possible is designed to move
the individual into whatever private sector employment the
individual is capable of handling as quickly as possible, and to
increase the responsibility and amount of work the individual is
to handle over time;
"(iv) describes the services the State will provide the
individual so that the individual will be able to obtain and keep
employment in the private sector, and describe the job counseling
and other services that will be provided by the State; and
"(v) may require the individual to undergo appropriate
substance abuse treatment.
"(B) Timing.--The State agency may comply with paragraph (1) with
respect to an individual--
"(i) within 90 days (or, at the option of the State, 180
days) after the effective date of this part, in the case of an
individual who, as of such effective date, is a recipient of aid
under the State plan approved under part A (as in effect
immediately before such effective date); or
"(ii) within 30 days (or, at the option of the State, 90
days) after the individual is determined to be eligible for such
assistance, in the case of any other individual.
"(3) Penalty for noncompliance by individual.--In addition to any
other penalties required under the State program funded under this part,
the State may reduce, by such amount as the State considers appropriate,
the amount of assistance otherwise payable under the State program to a
family that includes an individual who fails without good cause to comply
with an individual responsibility plan signed by the individual.
"(4) State discretion.--The exercise of the authority of this
subsection shall be within the sole discretion of the State.
"(c) Nondiscrimination Provisions.--The following provisions of law shall
apply to any program or activity which receives funds provided under this
part:
"(1) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.).
"(2) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794).
"(3) The Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.).
"(4) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.).
"(d) Aliens.--For special rules relating to the treatment of aliens, see
section 402 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996.
"SEC. 409. PENALTIES.
"(a) In General.--Subject to this section:
"(1) Use of grant in violation of this part.--
"(A) General penalty.--If an audit conducted under chapter 75 of
title 31, United States Code, finds that an amount paid to a State
under section 403 for a fiscal year has been used in violation of
this part, the Secretary shall reduce the grant payable to the State
under section 403(a)(1) for the immediately succeeding fiscal year
quarter by the amount so used.
"(B) Enhanced penalty for intentional violations.--If the State
does not prove to the satisfaction of the Secretary that the State
did not intend to use the amount in violation of this part, the
Secretary shall further reduce the grant payable to the State under
section 403(a)(1) for the immediately succeeding fiscal year quarter
by an amount equal to 5 percent of the State family assistance grant.
"(2) Failure to submit required report.--
"(A) In general.--If the Secretary determines that a State has
not, within 1 month after the end of a fiscal quarter, submitted the
report required by section 411(a) for the quarter, the Secretary
shall reduce the grant payable to the State under section 403(a)(1)
for the immediately succeeding fiscal year by an amount equal to 4
percent of the State family assistance grant.
"(B) Rescission of penalty.--The Secretary shall rescind a
penalty imposed on a State under subparagraph (A) with respect to a
report if the State submits the report before the end of the fiscal
quarter that immediately succeeds the fiscal quarter for which the
report was required.
"(3) Failure to satisfy minimum participation rates.--
"(A) In general.--If the Secretary determines that a State to
which a grant is made under section 403 for a fiscal year has failed
to comply with section 407(a) for the fiscal year, the Secretary
shall reduce the grant payable to the State under section 403(a)(1)
for the immediately succeeding fiscal year by an amount equal to not
more than the applicable percentage of the State family assistance
grant.
"(B) Applicable percentage defined.--As used in subparagraph (A),
the term 'applicable percentage' means, with respect to a State--
"(i) if a penalty was not imposed on the State under
subparagraph (A) for the immediately preceding fiscal year, 5
percent; or
"(ii) if a penalty was imposed on the State under
subparagraph (A) for the immediately preceding fiscal year, the
lesser of--
"(I) the percentage by which the grant payable to the
State under section 403(a)(1) was reduced for such preceding
fiscal year, increased by 2 percentage points; or
"(II) 21 percent.
"(C) Penalty based on severity of failure.--The Secretary shall
impose reductions under subparagraph (A) with respect to a fiscal
year based on the degree of noncompliance, and may reduce the penalty
if the noncompliance is due to circumstances that caused the State to
become a needy State (as defined in section 403(b)(6)) during the
fiscal year.
"(4) Failure to participate in the income and eligibility
verification system.--If the Secretary determines that a State program
funded under this part is not participating during a fiscal year in the
income and eligibility verification system required by section 1137, the
Secretary shall reduce the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year by an amount equal
to not more than 2 percent of the State family assistance grant.
"(5) Failure to comply with paternity establishment and child support
enforcement requirements under part d.--Notwithstanding any other
provision of this Act, if the Secretary determines that the State agency
that administers a program funded under this part does not enforce the
penalties requested by the agency administering part D against recipients
of assistance under the State program who fail to cooperate in
establishing paternity or in establishing, modifying, or enforcing a
child support order in accordance with such part and who do not qualify
for any good cause or other exception established by the State under
section 454(29), the Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the immediately succeeding fiscal year
(without regard to this section) by not more than 5 percent.
"(6) Failure to timely repay a federal loan fund for state welfare
programs.--If the Secretary determines that a State has failed to repay
any amount borrowed from the Federal Loan Fund for State Welfare Programs
established under section 406 within the period of maturity applicable to
the loan, plus any interest owed on the loan, the Secretary shall reduce
the grant payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year quarter (without regard to this
section) by the outstanding loan amount, plus the interest owed on the
outstanding amount. The Secretary shall not forgive any outstanding loan
amount or interest owed on the outstanding amount.
"(7) Failure of any state to maintain certain level of historic
effort.--
"(A) In general.--The Secretary shall reduce the grant payable to
the State under section 403(a)(1) for fiscal year 1998, 1999, 2000,
2001, 2002, or 2003 by the amount (if any) by which qualified State
expenditures for the then immediately preceding fiscal year are less
than the applicable percentage of historic State expenditures with
respect to such preceding fiscal year.
"(B) Definitions.--As used in this paragraph:
"(i) Qualified state expenditures.--
"(I) In general.--The term 'qualified State expenditures'
means, with respect to a State and a fiscal year, the total
expenditures by the State during the fiscal year, under all
State programs, for any of the following with respect to
eligible families:
"(aa) Cash assistance.
"(bb) Child care assistance.
"(cc) Educational activities designed to increase
self-sufficiency, job training, and work, excluding any
expenditure for public education in the State except
expenditures which involve the provision of services or
assistance to a member of an eligible family which is not
generally available to persons who are not members of an
eligible family.
"(dd) Administrative costs in connection with the
matters described in items (aa), (bb), (cc), and (ee),
but only to the extent that such costs do not exceed 15
percent of the total amount of qualified State
expenditures for the fiscal year.
"(ee) Any other use of funds allowable under section
404(a)(1).
"(II) Exclusion of transfers from other state and local
programs.--Such term does not include expenditures under any
State or local program during a fiscal year, except to the
extent that--
"(aa) the expenditures exceed the amount expended
under the State or local program in the fiscal year most
recently ending before the date of the enactment of this
part; or
"(bb) the State is entitled to a payment under former
section 403 (as in effect immediately before such date of
enactment) with respect to the expenditures.
"(III) Eligible families.--As used in subclause (I), the
term 'eligible families' means families eligible for
assistance under the State program funded under this part,
and families that would be eligible for such assistance but
for the application of section 408(a)(7) of this Act or
section 402 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
"(ii) Applicable percentage.--The term 'applicable
percentage' means for fiscal years 1997 through 2002, 80 percent
(or, if the State meets the requirements of section 407(a) for
the fiscal year, 75 percent) reduced (if appropriate) in
accordance with subparagraph (C)(ii).
"(iii) Historic state expenditures.--The term 'historic State
expenditures' means, with respect to a State, the lesser of--
"(I) the expenditures by the State under parts A and F
(as in effect during fiscal year 1994) for fiscal year 1994;
or
"(II) the amount which bears the same ratio to the amount
described in subclause (I) as--
"(aa) the State family assistance grant, plus the
total amount required to be paid to the State under
former section 403 for fiscal year 1994 with respect to
amounts expended by the State for child care under
subsection (g) or (i) of section 402 (as in effect during
fiscal year 1994); bears to
"(bb) the total amount required to be paid to the
State under former section 403 (as in effect during
fiscal year 1994) for fiscal year 1994.
Such term does not include any expenditures under the State plan
approved under part A (as so in effect) on behalf of individuals
covered by a tribal family assistance plan approved under section
412, as determined by the Secretary.
"(iv) Expenditures by the state.--The term 'expenditures by
the State' does not include--
"(I) any expenditures from amounts made available by the
Federal Government;
"(II) any State funds expended for the medicaid program
under title XIX;
"(III) any State funds which are used to match Federal
funds; or
"(IV) any State funds which are expended as a condition
of receiving Federal funds under Federal programs other than
under this part.
Notwithstanding subclause (IV) of the preceding sentence, such
term includes expenditures by a State for child care in a fiscal
year to the extent that the total amount of such expenditures
does not exceed an amount equal to the amount of State
expenditures in fiscal year 1994 or 1995 (whichever is greater)
that equal the non-Federal share for the programs described in
section 418(a)(1)(A).
"(8) Substantial noncompliance of state child support enforcement
program with requirements of part d.--
"(A) In general.--If a State program operated under part D is
found as a result of a review conducted under section 452(a)(4) not
to have complied substantially with the requirements of such part for
any quarter, and the Secretary determines that the program is not
complying substantially with such requirements at the time the
finding is made, the Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the quarter and each subsequent
quarter that ends before the 1st quarter throughout which the program
is found to be in substantial compliance with such requirements by--
"(i) not less than 1 nor more than 2 percent;
"(ii) not less than 2 nor more than 3 percent, if the finding
is the 2nd consecutive such finding made as a result of such a
review; or
"(iii) not less than 3 nor more than 5 percent, if the
finding is the 3rd or a subsequent consecutive such finding made
as a result of such a review.
"(B) Disregard of noncompliance which is of a technical nature.--
For purposes of subparagraph (A) and section 452(a)(4), a State which
is not in full compliance with the requirements of this part shall be
determined to be in substantial compliance with such requirements
only if the Secretary determines that any noncompliance with such
requirements is of a technical nature which does not adversely affect
the performance of the State's program operated under part D.
"(9) Failure to comply with 5-year limit on assistance.--If the
Secretary determines that a State has not complied with section
408(a)(1)(B) during a fiscal year, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to 5 percent of the State
family assistance grant.
"(10) Failure of state receiving amounts from contingency fund to
maintain 100 percent of historic effort.--If, at the end of any fiscal
year during which amounts from the Contingency Fund for State Welfare
Programs have been paid to a State, the Secretary finds that the
expenditures under the State program funded under this part for the
fiscal year (excluding any amounts made available by the Federal
Government) are less than 100 percent of historic State expenditures (as
defined in paragraph (7)(B)(iii) of this subsection), the Secretary shall
reduce the grant payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by the total of the amounts so paid to
the State.
"(11) Failure to maintain assistance to adult single custodial parent
who cannot obtain child care for child under age 6.--
"(A) In general.--If the Secretary determines that a State to
which a grant is made under section 403 for a fiscal year has
violated section 407(e)(2) during the fiscal year, the Secretary
shall reduce the grant payable to the State under section 403(a)(1)
for the immediately succeeding fiscal year by an amount equal to not
more than 5 percent of the State family assistance grant.
"(B) Penalty based on severity of failure.--The Secretary shall
impose reductions under subparagraph (A) with respect to a fiscal
year based on the degree of noncompliance.
"(12) Failure to expend additional state funds to replace grant
reductions.--If the grant payable to a State under section 403(a)(1) for
a fiscal year is reduced by reason of this subsection, the State shall,
during the immediately succeeding fiscal year, expend under the State
program funded under this part an amount equal to the total amount of
such reductions.
"(b) Reasonable Cause Exception.--
"(1) In general.--The Secretary may not impose a penalty on a State
under subsection (a) with respect to a requirement if the Secretary
determines that the State has reasonable cause for failing to comply with
the requirement.
"(2) Exception.--Paragraph (1) of this subsection shall not apply to
any penalty under paragraph (7) or (8) of subsection (a).
"(c) Corrective Compliance Plan.--
"(1) In general.--
"(A) Notification of violation.--Before imposing a penalty
against a State under subsection (a) with respect to a violation of
this part, the Secretary shall notify the State of the violation and
allow the State the opportunity to enter into a corrective compliance
plan in accordance with this subsection which outlines how the State
will correct the violation and how the State will insure continuing
compliance with this part.
"(B) 60-day period to propose a corrective compliance plan.--
During the 60-day period that begins on the date the State receives a
notice provided under subparagraph (A) with respect to a violation,
the State may submit to the Federal Government a corrective
compliance plan to correct the violation.
"(C) Consultation about modifications.--During the 60-day period
that begins with the date the Secretary receives a corrective
compliance plan submitted by a State in accordance with subparagraph
(B), the Secretary may consult with the State on modifications to the
plan.
"(D) Acceptance of plan.-- A corrective compliance plan submitted
by a State in accordance with subparagraph (B) is deemed to be
accepted by the Secretary if the Secretary does not accept or reject
the plan during 60-day period that begins on the date the plan is
submitted.
"(2) Effect of correcting violation.--The Secretary may not impose
any penalty under subsection (a) with respect to any violation covered by
a State corrective compliance plan accepted by the Secretary if the State
corrects the violation pursuant to the plan.
"(3) Effect of failing to correct violation.--The Secretary shall
assess some or all of a penalty imposed on a State under subsection (a)
with respect to a violation if the State does not, in a timely manner,
correct the violation pursuant to a State corrective compliance plan
accepted by the Secretary.
"(4) Inapplicability to failure to timely repay a federal loan fund
for a state welfare program.--This subsection shall not apply to the
imposition of a penalty against a State under subsection (a)(6).
"(d) Limitation on Amount of Penalties.--
"(1) In general.--In imposing the penalties described in subsection
(a), the Secretary shall not reduce any quarterly payment to a State by
more than 25 percent.
"(2) Carryforward of unrecovered penalties.--To the extent that
paragraph (1) of this subsection prevents the Secretary from recovering
during a fiscal year the full amount of penalties imposed on a State
under subsection (a) of this section for a prior fiscal year, the
Secretary shall apply any remaining amount of such penalties to the grant
payable to the State under section 403(a)(1) for the immediately
succeeding fiscal year.
"SEC. 410. APPEAL OF ADVERSE DECISION.
"(a) In General.--Within 5 days after the date the Secretary takes any
adverse action under this part with respect to a State, the Secretary shall
notify the chief executive officer of the State of the adverse action,
including any action with respect to the State plan submitted under section
402 or the imposition of a penalty under section 409.
"(b) Administrative Review.--
"(1) In general.--Within 60 days after the date a State receives
notice under subsection (a) of an adverse action, the State may appeal
the action, in whole or in part, to the Departmental Appeals Board
established in the Department of Health and Human Services (in this
section referred to as the 'Board') by filing an appeal with the Board.
"(2) Procedural rules.--The Board shall consider an appeal filed by a
State under paragraph (1) on the basis of such documentation as the State
may submit and as the Board may require to support the final decision of
the Board. In deciding whether to uphold an adverse action or any portion
of such an action, the Board shall conduct a thorough review of the
issues and take into account all relevant evidence. The Board shall make
a final determination with respect to an appeal filed under paragraph (1)
not less than 60 days after the date the appeal is filed.
"(c) Judicial Review of Adverse Decision.--
"(1) In general.--Within 90 days after the date of a final decision
by the Board under this section with respect to an adverse action taken
against a State, the State may obtain judicial review of the final
decision (and the findings incorporated into the final decision) by
filing an action in--
"(A) the district court of the United States for the judicial
district in which the principal or headquarters office of the State
agency is located; or
"(B) the United States District Court for the District of
Columbia.
"(2) Procedural rules.--The district court in which an action is
filed under paragraph (1) shall review the final decision of the Board on
the record established in the administrative proceeding, in accordance
with the standards of review prescribed by subparagraphs (A) through (E)
of section 706(2) of title 5, United States Code. The review shall be on
the basis of the documents and supporting data submitted to the Board.
"SEC. 411. DATA COLLECTION AND REPORTING.
"(a) Quarterly Reports by States.--
"(1) General reporting requirement.--
"(A) Contents of report.--Each eligible State shall collect on a
monthly basis, and report to the Secretary on a quarterly basis, the
following disaggregated case record information on the families
receiving assistance under the State program funded under this part:
"(i) The county of residence of the family.
"(ii) Whether a child receiving such assistance or an adult
in the family is disabled.
"(iii) The ages of the members of such families.
"(iv) The number of individuals in the family, and the
relation of each family member to the youngest child in the
family.
"(v) The employment status and earnings of the employed adult
in the family.
"(vi) The marital status of the adults in the family,
including whether such adults have never married, are widowed, or
are divorced.
"(vii) The race and educational status of each adult in the
family.
"(viii) The race and educational status of each child in the
family.
"(ix) Whether the family received subsidized housing, medical
assistance under the State plan approved under title XIX, food
stamps, or subsidized child care, and if the latter 2, the amount
received.
"(x) The number of months that the family has received each
type of assistance under the program.
"(xi) If the adults participated in, and the number of hours
per week of participation in, the following activities:
"(I) Education.
"(II) Subsidized private sector employment.
"(III) Unsubsidized employment.
"(IV) Public sector employment, work experience, or
community service.
"(V) Job search.
"(VI) Job skills training or on-the-job training.
"(VII) Vocational education.
"(xii) Information necessary to calculate participation rates
under section 407.
"(xiii) The type and amount of assistance received under the
program, including the amount of and reason for any reduction of
assistance (including sanctions).
"(xiv) Any amount of unearned income received by any member
of the family.
"(xv) The citizenship of the members of the family.
"(xvi) From a sample of closed cases, whether the family left
the program, and if so, whether the family left due to--
"(I) employment;
"(II) marriage;
"(III) the prohibition set forth in section 408(a)(7);
"(IV) sanction; or
"(V) State policy.
"(B) Use of estimates.--
"(i) Authority.--A State may comply with subparagraph (A) by
submitting an estimate which is obtained through the use of
scientifically acceptable sampling methods approved by the
Secretary.
"(ii) Sampling and other methods.--The Secretary shall
provide the States with such case sampling plans and data
collection procedures as the Secretary deems necessary to produce
statistically valid estimates of the performance of State
programs funded under this part. The Secretary may develop and
implement procedures for verifying the quality of data submitted
by the States.
"(2) Report on use of federal funds to cover administrative costs and
overhead.--The report required by paragraph (1) for a fiscal quarter
shall include a statement of the percentage of the funds paid to the
State under this part for the quarter that are used to cover
administrative costs or overhead.
"(3) Report on state expenditures on programs for needy families.--
The report required by paragraph (1) for a fiscal quarter shall include a
statement of the total amount expended by the State during the quarter on
programs for needy families.
"(4) Report on noncustodial parents participating in work
activities.--The report required by paragraph (1) for a fiscal quarter
shall include the number of noncustodial parents in the State who
participated in work activities (as defined in section 407(d)) during the
quarter.
"(5) Report on transitional services.--The report required by
paragraph (1) for a fiscal quarter shall include the total amount
expended by the State during the quarter to provide transitional services
to a family that has ceased to receive assistance under this part because
of employment, along with a description of such services.
"(6) Regulations.--The Secretary shall prescribe such regulations as
may be necessary to define the data elements with respect to which
reports are required by this subsection.
"(b) Annual Reports to the Congress by the Secretary.--Not later than 6
months after the end of fiscal year 1997, and each fiscal year thereafter,
the Secretary shall transmit to the Congress a report describing--
"(1) whether the States are meeting--
"(A) the participation rates described in section 407(a); and
"(B) the objectives of--
"(i) increasing employment and earnings of needy families,
and child support collections; and
"(ii) decreasing out-of-wedlock pregnancies and child
poverty;
"(2) the demographic and financial characteristics of families
applying for assistance, families receiving assistance, and families that
become ineligible to receive assistance;
"(3) the characteristics of each State program funded under this
part; and
"(4) the trends in employment and earnings of needy families with
minor children living at home.
"SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.
"(a) Grants for Indian Tribes.--
"(1) Tribal family assistance grant.--
"(A) In general.--For each of fiscal years 1997, 1998, 1999,
2000, 2001, and 2002, the Secretary shall pay to each Indian tribe
that has an approved tribal family assistance plan a tribal family
assistance grant for the fiscal year in an amount equal to the amount
determined under subparagraph (B), and shall reduce the grant payable
under section 403(a)(1) to any State in which lies the service area
or areas of the Indian tribe by that portion of the amount so
determined that is attributable to expenditures by the State.
"(B) Amount determined.--
"(i) In general.--The amount determined under this
subparagraph is an amount equal to the total amount of the
Federal payments to a State or States under section 403 (as in
effect during such fiscal year) for fiscal year 1994 attributable
to expenditures (other than child care expenditures) by the State
or States under parts A and F (as so in effect) for fiscal year
1994 for Indian families residing in the service area or areas
identified by the Indian tribe pursuant to subsection (b)(1)(C)
of this section.
"(ii) Use of state submitted data.--
"(I) In general.--The Secretary shall use State submitted
data to make each determination under clause (i).
"(II) Disagreement with determination.--If an Indian
tribe or tribal organization disagrees with State submitted
data described under subclause (I), the Indian tribe or
tribal organization may submit to the Secretary such
additional information as may be relevant to making the
determination under clause (i) and the Secretary may consider
such information before making such determination.
"(2) Grants for indian tribes that received jobs funds.--
"(A) In general.--The Secretary shall pay to each eligible Indian
tribe for each of fiscal years 1997, 1998, 1999, 2000, 2001, and 2002
a grant in an amount equal to the amount received by the Indian tribe
in fiscal year 1994 under section 482(i) (as in effect during fiscal
year 1994).
"(B) Eligible indian tribe.--For purposes of subparagraph (A),
the term 'eligible Indian tribe' means an Indian tribe or Alaska
Native organization that conducted a job opportunities and basic
skills training program in fiscal year 1995 under section 482(i) (as
in effect during fiscal year 1995).
"(C) Use of grant.--Each Indian tribe to which a grant is made
under this paragraph shall use the grant for the purpose of operating
a program to make work activities available to members of the Indian
tribe.
"(D) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are appropriated
$7,638,474 for each fiscal year specified in subparagraph (A) for
grants under subparagraph (A).
"(b) 3-Year Tribal Family Assistance Plan.--
"(1) In general.--Any Indian tribe that desires to receive a tribal
family assistance grant shall submit to the Secretary a 3-year tribal
family assistance plan that--
"(A) outlines the Indian tribe's approach to providing welfare-
related services for the 3-year period, consistent with this section;
"(B) specifies whether the welfare-related services provided
under the plan will be provided by the Indian tribe or through
agreements, contracts, or compacts with intertribal consortia,
States, or other entities;
"(C) identifies the population and service area or areas to be
served by such plan;
"(D) provides that a family receiving assistance under the plan
may not receive duplicative assistance from other State or tribal
programs funded under this part;
"(E) identifies the employment opportunities in or near the
service area or areas of the Indian tribe and the manner in which the
Indian tribe will cooperate and participate in enhancing such
opportunities for recipients of assistance under the plan consistent
with any applicable State standards; and
"(F) applies the fiscal accountability provisions of section
5(f)(1) of the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450c(f)(1)), relating to the submission of a single-agency
audit report required by chapter 75 of title 31, United States Code.
"(2) Approval.--The Secretary shall approve each tribal family
assistance plan submitted in accordance with paragraph (1).
"(3) Consortium of tribes.--Nothing in this section shall preclude
the development and submission of a single tribal family assistance plan
by the participating Indian tribes of an intertribal consortium.
"(c) Minimum Work Participation Requirements and Time Limits.--The
Secretary, with the participation of Indian tribes, shall establish for each
Indian tribe receiving a grant under this section minimum work participation
requirements, appropriate time limits for receipt of welfare-related services
under the grant, and penalties against individuals--
"(1) consistent with the purposes of this section;
"(2) consistent with the economic conditions and resources available
to each tribe; and
"(3) similar to comparable provisions in section 407(e).
"(d) Emergency Assistance.--Nothing in this section shall preclude an
Indian tribe from seeking emergency assistance from any Federal loan program
or emergency fund.
"(e) Accountability.--Nothing in this section shall be construed to limit
the ability of the Secretary to maintain program funding accountability
consistent with--
"(1) generally accepted accounting principles; and
"(2) the requirements of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450 et seq.).
"(f) Penalties.--
"(1) Subsections (a)(1), (a)(6), and (b) of section 409, shall apply
to an Indian tribe with an approved tribal assistance plan in the same
manner as such subsections apply to a State.
"(2) Section 409(a)(3) shall apply to an Indian tribe with an
approved tribal assistance plan by substituting 'meet minimum work
participation requirements established under section 412(c)' for 'comply
with section 407(a)'.
"(g) Data Collection and Reporting.--Section 411 shall apply to an Indian
tribe with an approved tribal family assistance plan.
"(h) Special Rule for Indian Tribes in Alaska.--
"(1) In general.--Notwithstanding any other provision of this
section, and except as provided in paragraph (2), an Indian tribe in the
State of Alaska that receives a tribal family assistance grant under this
section shall use the grant to operate a program in accordance with
requirements comparable to the requirements applicable to the program of
the State of Alaska funded under this part. Comparability of programs
shall be established on the basis of program criteria developed by the
Secretary in consultation with the State of Alaska and such Indian
tribes.
"(2) Waiver.--An Indian tribe described in paragraph (1) may apply to
the appropriate State authority to receive a waiver of the requirement of
paragraph (1).
"SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.
"(a) Research.--The Secretary shall conduct research on the benefits,
effects, and costs of operating different State programs funded under this
part, including time limits relating to eligibility for assistance. The
research shall include studies on the effects of different programs and the
operation of such programs on welfare dependency, illegitimacy, teen
pregnancy, employment rates, child well-being, and any other area the
Secretary deems appropriate. The Secretary shall also conduct research on the
costs and benefits of State activities under section 409.
"(b) Development and Evaluation of Innovative Approaches To Reducing
Welfare Dependency and Increasing Child Well-Being.--
"(1) In general.--The Secretary may assist States in developing, and
shall evaluate, innovative approaches for reducing welfare dependency and
increasing the well-being of minor children living at home with respect
to recipients of assistance under programs funded under this part. The
Secretary may provide funds for training and technical assistance to
carry out the approaches developed pursuant to this paragraph.
"(2) Evaluations.--In performing the evaluations under paragraph (1),
the Secretary shall, to the maximum extent feasible, use random
assignment as an evaluation methodology.
"(c) Dissemination of Information.--The Secretary shall develop
innovative methods of disseminating information on any research, evaluations,
and studies conducted under this section, including the facilitation of the
sharing of information and best practices among States and localities through
the use of computers and other technologies.
"(d) Annual Ranking of States and Review of Most and Least Successful
Work Programs.--
"(1) Annual ranking of states.--The Secretary shall rank annually the
States to which grants are paid under section 403 in the order of their
success in placing recipients of assistance under the State program
funded under this part into long-term private sector jobs, reducing the
overall welfare caseload, and, when a practicable method for calculating
this information becomes available, diverting individuals from formally
applying to the State program and receiving assistance. In ranking States
under this subsection, the Secretary shall take into account the average
number of minor children living at home in families in the State that
have incomes below the poverty line and the amount of funding provided
each State for such families.
"(2) Annual review of most and least successful work programs.--The
Secretary shall review the programs of the 3 States most recently ranked
highest under paragraph (1) and the 3 States most recently ranked lowest
under paragraph (1) that provide parents with work experience, assistance
in finding employment, and other work preparation activities and support
services to enable the families of such parents to leave the program and
become self-sufficient.
"(e) Annual Ranking of States and Review of Issues Relating to Out-of-
Wedlock Births.--
"(1) Annual ranking of states.--
"(A) In general.--The Secretary shall annually rank States to
which grants are made under section 403 based on the following
ranking factors:
"(i) Absolute out-of-wedlock ratios.--The ratio represented
by--
"(I) the total number of out-of-wedlock births in
families receiving assistance under the State program under
this part in the State for the most recent fiscal year for
which information is available; over
"(II) the total number of births in families receiving
assistance under the State program under this part in the
State for such year.
"(ii) Net changes in the out-of-wedlock ratio.--The
difference between the ratio described in subparagraph (A)(i)
with respect to a State for the most recent fiscal year for which
such information is available and the ratio with respect to the
State for the immediately preceding year.
"(2) Annual review.--The Secretary shall review the programs of the 5
States most recently ranked highest under paragraph (1) and the 5 States
most recently ranked the lowest under paragraph (1).
"(f) State-Initiated Evaluations.--A State shall be eligible to receive
funding to evaluate the State program funded under this part if--
"(1) the State submits a proposal to the Secretary for the
evaluation;
"(2) the Secretary determines that the design and approach of the
evaluation is rigorous and is likely to yield information that is
credible and will be useful to other States; and
"(3) unless otherwise waived by the Secretary, the State contributes
to the cost of the evaluation, from non-Federal sources, an amount equal
to at least 10 percent of the cost of the evaluation.
"(g) Report on Circumstances of Certain Children and Families.--
"(1) In general.--Beginning 3 years after the date of the enactment
of this Act, the Secretary of Health and Human Services shall prepare and
submit to the Committees on Ways and Means and on Economic and
Educational Opportunities of the House of Representatives and to the
Committees on Finance and on Labor and Resources of the Senate annual
reports that examine in detail the matters described in paragraph (2)
with respect to each of the following groups for the period after such
enactment:
"(A) Individuals who were children in families that have become
ineligible for assistance under a State program funded under this
part by reason of having reached a time limit on the provision of
such assistance.
"(B) Children born after such date of enactment to parents who,
at the time of such birth, had not attained 20 years of age.
"(C) Individuals who, after such date of enactment, became
parents before attaining 20 years of age.
"(2) Matters described.--The matters described in this paragraph are
the following:
"(A) The percentage of each group that has dropped out of
secondary school (or the equivalent), and the percentage of each
group at each level of educational attainment.
"(B) The percentage of each group that is employed.
"(C) The percentage of each group that has been convicted of a
crime or has been adjudicated as a delinquent.
"(D) The rate at which the members of each group are born, or
have children, out-of-wedlock, and the percentage of each group that
is married.
"(E) The percentage of each group that continues to participate
in State programs funded under this part.
"(F) The percentage of each group that has health insurance
provided by a private entity (broken down by whether the insurance is
provided through an employer or otherwise), the percentage that has
health insurance provided by an agency of government, and the
percentage that does not have health insurance.
"(G) The average income of the families of the members of each
group.
"(H) Such other matters as the Secretary deems appropriate.
"(h) Funding of Studies and Demonstrations.--
"(1) In general.--Out of any money in the Treasury of the United
States not otherwise appropriated, there are appropriated $15,000,000 for
each of fiscal years 1997 through 2002 for the purpose of paying--
"(A) the cost of conducting the research described in subsection
(a);
"(B) the cost of developing and evaluating innovative approaches
for reducing welfare dependency and increasing the well-being of
minor children under subsection (b);
"(C) the Federal share of any State-initiated study approved
under subsection (f); and
"(D) an amount determined by the Secretary to be necessary to
operate and evaluate demonstration projects, relating to this part,
that are in effect or approved under section 1115 as of September 30,
1995, and are continued after such date.
"(2) Allocation.--Of the amount appropriated under paragraph (1) for
a fiscal year--
"(A) 50 percent shall be allocated for the purposes described in
subparagraphs (A) and (B) of paragraph (1), and
"(B) 50 percent shall be allocated for the purposes described in
subparagraphs (C) and (D) of paragraph (1).
"(3) Demonstrations of innovative strategies.--The Secretary may
implement and evaluate demonstrations of innovative and promising
strategies which--
"(A) provide one-time capital funds to establish, expand, or
replicate programs;
"(B) test performance-based grant-to-loan financing in which
programs meeting performance targets receive grants while programs
not meeting such targets repay funding on a prorated basis; and
"(C) test strategies in multiple States and types of communities.
"(i) Child Poverty Rates.--
"(1) In general.--Not later than 90 days after the date of the
enactment of this part, and annually thereafter, the chief executive
officer of each State shall submit to the Secretary a statement of the
child poverty rate in the State as of such date of enactment or the date
of the most recent prior statement under this paragraph.
"(2) Submission of corrective action plan.--Not later than 90 days
after the date a State submits a statement under paragraph (1) which
indicates that, as a result of the amendments made by section 103 of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996,
the child poverty rate of the State has increased by 5 percent or more
since the most recent prior statement under paragraph (1), the State
shall prepare and submit to the Secretary a corrective action plan in
accordance with paragraph (3).
"(3) Contents of plan.--A corrective action plan submitted under
paragraph (2) shall outline the manner in which the State will reduce the
child poverty rate in the State. The plan shall include a description of
the actions to be taken by the State under such plan.
"(4) Compliance with plan.--A State that submits a corrective action
plan that the Secretary has found contains the information required by
this subsection shall implement the corrective action plan until the
State determines that the child poverty rate in the State is less than
the lowest child poverty rate on the basis of which the State was
required to submit the corrective action plan.
"(5) Methodology.--The Secretary shall prescribe regulations
establishing the methodology by which a State shall determine the child
poverty rate in the State. The methodology shall take into account
factors including the number of children who receive free or reduced-
price lunches, the number of food stamp households, and the county-by-
county estimates of children in poverty as determined by the Census
Bureau.
"SEC. 414. STUDY BY THE CENSUS BUREAU.
"(a) In General.--The Bureau of the Census shall continue to collect data
on the 1992 and 1993 panels of the Survey of Income and Program Participation
as necessary to obtain such information as will enable interested persons to
evaluate the impact of the amendments made by title I of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 on a random
national sample of recipients of assistance under State programs funded under
this part and (as appropriate) other low-income families, and in doing so,
shall pay particular attention to the issues of out-of-wedlock birth, welfare
dependency, the beginning and end of welfare spells, and the causes of repeat
welfare spells, and shall obtain information about the status of children
participating in such panels.
"(b) Appropriation.--Out of any money in the Treasury of the United
States not otherwise appropriated, there are appropriated $10,000,000 for
each of fiscal years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 for payment
to the Bureau of the Census to carry out subsection (a).
"SEC. 415. WAIVERS.
"(a) Continuation of Waivers.--
"(1) Waivers in effect on date of enactment of welfare reform.--
"(A) In general.--Except as provided in subparagraph (B), if any
waiver granted to a State under section 1115 of this Act or otherwise
which relates to the provision of assistance under a State plan under
this part (as in effect on September 30, 1996) is in effect as of the
date of the enactment of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, the amendments made by the
Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (other than by section 103(c) of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996) shall not apply with
respect to the State before the expiration (determined without regard
to any extensions) of the waiver to the extent such amendments are
inconsistent with the waiver.
"(B) Financing limitation.--Notwithstanding any other provision
of law, beginning with fiscal year 1996, a State operating under a
waiver described in subparagraph (A) shall be entitled to payment
under section 403 for the fiscal year, in lieu of any other payment
provided for in the waiver.
"(2) Waivers granted subsequently.--
"(A) In general.--Except as provided in subparagraph (B), if any
waiver granted to a State under section 1115 of this Act or otherwise
which relates to the provision of assistance under a State plan under
this part (as in effect on September 30, 1996) is submitted to the
Secretary before the date of the enactment of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 and
approved by the Secretary on or before July 1, 1997, and the State
demonstrates to the satisfaction of the Secretary that the waiver
will not result in Federal expenditures under title IV of this Act
(as in effect without regard to the amendments made by the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996) that
are greater than would occur in the absence of the waiver, the
amendments made by the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (other than by section 103(c) of the
Personal Responsibility and Work Opportunity Reconciliation Act of
1996) shall not apply with respect to the State before the expiration
(determined without regard to any extensions) of the waiver to the
extent the amendments made by the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 are inconsistent with the
waiver.
"(B) No effect on new work requirements.--Notwithstanding
subparagraph (A), a waiver granted under section 1115 or otherwise
which relates to the provision of assistance under a State program
funded under this part (as in effect on September 30, 1996) shall not
affect the applicability of section 407 to the State.
"(b) State Option To Terminate Waiver.--
"(1) In general.--A State may terminate a waiver described in
subsection (a) before the expiration of the waiver.
"(2) Report.--A State which terminates a waiver under paragraph (1)
shall submit a report to the Secretary summarizing the waiver and any
available information concerning the result or effect of the waiver.
"(3) Hold harmless provision.--
"(A) In general.--Notwithstanding any other provision of law, a
State that, not later than the date described in subparagraph (B) of
this paragraph, submits a written request to terminate a waiver
described in subsection (a) shall be held harmless for accrued cost
neutrality liabilities incurred under the waiver.
"(B) Date described.--The date described in this subparagraph is
90 days following the adjournment of the first regular session of the
State legislature that begins after the date of the enactment of the
Personal Responsibility and Work Opportunity Reconciliation Act of
1996.
"(c) Secretarial Encouragement of Current Waivers.--The Secretary shall
encourage any State operating a waiver described in subsection (a) to
continue the waiver and to evaluate, using random sampling and other
characteristics of accepted scientific evaluations, the result or effect of
the waiver.
"(d) Continuation of Individual Waivers.--A State may elect to continue 1
or more individual waivers described in sub-section (a).
"SEC. 416. ADMINISTRATION.
"The programs under this part and part D shall be administered by an
Assistant Secretary for Family Support within the Department of Health and
Human Services, who shall be appointed by the President, by and with the
advice and consent of the Senate, and who shall be in addition to any other
Assistant Secretary of Health and Human Services provided for by law, and the
Secretary shall reduce the Federal workforce within the Department of Health
and Human Services by an amount equal to the sum of 75 percent of the full-
time equivalent positions at such Department that relate to any direct
spending program, or any program funded through discretionary spending, that
has been converted into a block grant program under the Personal
Responsibility and Work Opportunity Act of 1996 and the amendments made by
such Act, and by an amount equal to 75 percent of that portion of the total
full-time equivalent departmental management positions at such Department
that bears the same relationship to the amount appropriated for any direct
spending program, or any program funded through discretionary spending, that
has been converted into a block grant program under the Personal
Responsibility and Work Opportunity Act of 1996 and the amendments made by
such Act, as such amount relates to the total amount appropriated for use by
such Department, and, notwithstanding any other provision of law, the
Secretary shall take such actions as may be necessary, including reductions
in force actions, consistent with sections 3502 and 3595 of title 5, United
States Code, to reduce the full-time equivalent positions within the
Department of Health and Human Services by 245 full-time equivalent positions
related to the program converted into a block grant under the amendment made
by section 2103 of the Personal Responsibility and Work Opportunity Act of
1996, and by 60 full-time equivalent managerial positions in the Department.
"SEC. 417. LIMITATION ON FEDERAL AUTHORITY.
"No officer or employee of the Federal Government may regulate the
conduct of States under this part or enforce any provision of this part,
except to the extent expressly provided in this part."; and
(2) by inserting after such section 418 the following:
"SEC. 419. DEFINITIONS.
"As used in this part:
"(1) Adult.--The term 'adult' means an individual who is not a minor
child.
"(2) Minor child.--The term 'minor child' means an individual who--
"(A) has not attained 18 years of age; or
"(B) has not attained 19 years of age and is a full-time student
in a secondary school (or in the equivalent level of vocational or
technical training).
"(3) Fiscal year.--The term 'fiscal year' means any 12-month period
ending on September 30 of a calendar year.
"(4) Indian, indian tribe, and tribal organization.--
"(A) In general.--Except as provided in subparagraph (B), the
terms 'Indian', 'Indian tribe', and 'tribal organization' have the
meaning given such terms by section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
"(B) Special rule for indian tribes in alaska.--The term 'Indian
tribe' means, with respect to the State of Alaska, only the
Metlakatla Indian Community of the Annette Islands Reserve and the
following Alaska Native regional nonprofit corporations:
"(i) Arctic Slope Native Association.
"(ii) Kawerak, Inc.
"(iii) Maniilaq Association.
"(iv) Association of Village Council Presidents.
"(v) Tanana Chiefs Conference.
"(vi) Cook Inlet Tribal Council.
"(vii) Bristol Bay Native Association.
"(viii) Aleutian and Pribilof Island Association.
"(ix) Chugachmuit.
"(x) Tlingit Haida Central Council.
"(xi) Kodiak Area Native Association.
"(xii) Copper River Native Association.
"(5) State.--Except as otherwise specifically provided, the term
'State' means the 50 States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa.".
(b) Grants to Outlying Areas.--Section 1108 (42 U.S.C. 1308) is amended--
(1) by striking subsections (d) and (e);
(2) by redesignating subsection (c) as subsection (f); and
(3) by striking all that precedes subsection (c) and inserting the
following:
"SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS, GUAM, AND
AMERICAN SAMOA; LIMITATION ON TOTAL PAYMENTS.
"(a) Limitation on Total Payments to Each Territory.--Notwithstanding any
other provision of this Act, the total amount certified by the Secretary of
Health and Human Services under titles I, X, XIV, and XVI, under parts A and
E of title IV, and under subsection (b) of this section, for payment to any
territory for a fiscal year shall not exceed the ceiling amount for the
territory for the fiscal year.
"(b) Entitlement to Matching Grant.--
"(1) In general.--Each territory shall be entitled to receive from
the Secretary for each fiscal year a grant in an amount equal to 75
percent of the amount (if any) by which--
"(A) the total expenditures of the territory during the fiscal
year under the territory programs funded under parts A and E of title
IV; exceeds
"(B) the sum of--
"(i) the amount of the family assistance grant payable to the
territory without regard to section 409; and
"(ii) the total amount expended by the territory during
fiscal year 1995 pursuant to parts A and F of title IV (as so in
effect), other than for child care.
"(2) Appropriation.--Out of any money in the Treasury of the United
States not otherwise appropriated, there are appropriated for fiscal
years 1997 through 2002, such sums as are necessary for grants under this
paragraph.
"(c) Definitions.--As used in this section:
"(1) Territory.--The term 'territory' means Puerto Rico, the Virgin
Islands, Guam, and American Samoa.
"(2) Ceiling amount.--The term 'ceiling amount' means, with respect
to a territory and a fiscal year, the mandatory ceiling amount with
respect to the territory, reduced for the fiscal year in accordance with
subsection (e), and reduced by the amount of any penalty imposed on the
territory under any provision of law specified in subsection (a) during
the fiscal year.
"(3) Family assistance grant.--The term 'family assistance grant' has
the meaning given such term by section 403(a)(1)(B).
"(4) Mandatory ceiling amount.--The term 'mandatory ceiling amount'
means--
"(A) $107,255,000 with respect to Puerto Rico;
"(B) $4,686,000 with respect to Guam;
"(C) $3,554,000 with respect to the Virgin Islands; and
"(D) $1,000,000 with respect to American Samoa.
"(5) Total amount expended by the territory.--The term 'total amount
expended by the territory'--
"(A) does not include expenditures during the fiscal year from
amounts made available by the Federal Government; and
"(B) when used with respect to fiscal year 1995, also does not
include--
"(i) expenditures during fiscal year 1995 under subsection
(g) or (i) of section 402 (as in effect on September 30, 1995);
or
"(ii) any expenditures during fiscal year 1995 for which the
territory (but for section 1108, as in effect on September 30,
1995) would have received reimbursement from the Federal
Government.
"(d) Authority To Transfer Funds to Certain Programs.--A territory to
which an amount is paid under subsection (b) of this section may use the
amount in accordance with section 404(d).
"(e) Maintenance of Effort.--The ceiling amount with respect to a
territory shall be reduced for a fiscal year by an amount equal to the amount
(if any) by which--
"(1) the total amount expended by the territory under all programs of
the territory operated pursuant to the provisions of law specified in
subsection (a) (as such provisions were in effect for fiscal year 1995)
for fiscal year 1995; exceeds
"(2) the total amount expended by the territory under all programs of
the territory that are funded under the provisions of law specified in
subsection (a) for the fiscal year that immediately precedes the fiscal
year referred to in the matter preceding paragraph (1).".
(c) Elimination of Child Care Programs Under the Social Security Act.--
(1) AFDC and transitional child care programs.--Section 402 (42
U.S.C. 602) is amended by striking sub-section (g).
(2) At-risk child care program.--
(A) Authorization.--Section 402 (42 U.S.C. 602) is amended by
striking subsection (i).
(B) Funding provisions.--Section 403 (42 U.S.C. 603) is amended
by striking subsection (n).
SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRIVATE
ORGANIZATIONS.
(a) In General.--
(1) State options.--A State may--
(A) administer and provide services under the programs described
in subparagraphs (A) and (B)(i) of paragraph (2) through contracts
with charitable, religious, or private organizations; and
(B) provide beneficiaries of assistance under the programs
described in subparagraphs (A) and (B)(ii) of paragraph (2) with
certificates, vouchers, or other forms of disbursement which are
redeemable with such organizations.
(2) Programs described.--The programs described in this paragraph are
the following programs:
(A) A State program funded under part A of title IV of the Social
Security Act (as amended by section 103(a) of this Act).
(B) Any other program established or modified under title I or II
of this Act, that--
(i) permits contracts with organizations; or
(ii) permits certificates, vouchers, or other forms of
disbursement to be provided to beneficiaries, as a means of
providing assistance.
(b) Religious Organizations.--The purpose of this section is to allow
States to contract with religious organizations, or to allow religious
organizations to accept certificates, vouchers, or other forms of
disbursement under any program described in subsection (a)(2), on the same
basis as any other nongovernmental provider without impairing the religious
character of such organizations, and without diminishing the religious
freedom of beneficiaries of assistance funded under such program.
(c) Nondiscrimination Against Religious Organizations.--In the event a
State exercises its authority under subsection (a), religious organizations
are eligible, on the same basis as any other private organization, as
contractors to provide assistance, or to accept certificates, vouchers, or
other forms of disbursement, under any program described in subsection (a)(2)
so long as the programs are implemented consistent with the Establishment
Clause of the United States Constitution. Except as provided in subsection
(k), neither the Federal Government nor a State receiving funds under such
programs shall discriminate against an organization which is or applies to be
a contractor to provide assistance, or which accepts certificates, vouchers,
or other forms of disbursement, on the basis that the organization has a
religious character.
(d) Religious Character and Freedom.--
(1) Religious organizations.--A religious organization with a
contract described in subsection (a)(1)(A), or which accepts
certificates, vouchers, or other forms of disbursement under subsection
(a)(1)(B), shall retain its independence from Federal, State, and local
governments, including such organization's control over the definition,
development, practice, and expression of its religious beliefs.
(2) Additional safeguards.--Neither the Federal Government nor a
State shall require a religious organization to--
(A) alter its form of internal governance; or
(B) remove religious art, icons, scripture, or other symbols;
in order to be eligible to contract to provide assistance, or to accept
certificates, vouchers, or other forms of disbursement, funded under a
program described in subsection (a)(2).
(e) Rights of Beneficiaries of Assistance.--
(1) In general.--If an individual described in paragraph (2) has an
objection to the religious character of the organization or institution
from which the individual receives, or would receive, assistance funded
under any program described in subsection (a)(2), the State in which the
individual resides shall provide such individual (if otherwise eligible
for such assistance) within a reasonable period of time after the date of
such objection with assistance from an alternative provider that is
accessible to the individual and the value of which is not less than the
value of the assistance which the individual would have received from
such organization.
(2) Individual described.--An individual described in this paragraph
is an individual who receives, applies for, or requests to apply for,
assistance under a program described in subsection (a)(2).
(f) Employment Practices.--A religious organization's exemption provided
under section 702 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-1a)
regarding employment practices shall not be affected by its participation in,
or receipt of funds from, programs described in subsection (a)(2).
(g) Nondiscrimination Against Beneficiaries.--Except as otherwise
provided in law, a religious organization shall not discriminate against an
individual in regard to rendering assistance funded under any program
described in subsection (a)(2) on the basis of religion, a religious belief,
or refusal to actively participate in a religious practice.
(h) Fiscal Accountability.--
(1) In general.--Except as provided in paragraph (2), any religious
organization contracting to provide assistance funded under any program
described in subsection (a)(2) shall be subject to the same regulations
as other contractors to account in accord with generally accepted
auditing principles for the use of such funds provided under such
programs.
(2) Limited audit.--If such organization segregates Federal funds
provided under such programs into separate accounts, then only the
financial assistance provided with such funds shall be subject to audit.
(i) Compliance.--Any party which seeks to enforce its rights under this
section may assert a civil action for injunctive relief exclusively in an
appropriate State court against the entity or agency that allegedly commits
such violation.
(j) Limitations on Use of Funds for Certain Purposes.--No funds provided
directly to institutions or organizations to provide services and administer
programs under subsection (a)(1)(A) shall be expended for sectarian worship,
instruction, or proselytization.
(k) Preemption.--Nothing in this section shall be construed to preempt
any provision of a State constitution or State statute that prohibits or
restricts the expenditure of State funds in or by religious organizations.
SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS FOR THEIR
GRANDCHILDREN.
(a) In General.--Not later than 90 days after the date of the enactment
of this Act, the Secretary of Commerce, in carrying out section 141 of title
13, United States Code, shall expand the data collection efforts of the
Bureau of the Census (in this section referred to as the "Bureau") to enable
the Bureau to collect statistically significant data, in connection with its
decennial census and its mid-decade census, concerning the growing trend of
grandparents who are the primary caregivers for their grandchildren.
(b) Expanded Census Question.--In carrying out subsection (a), the
Secretary of Commerce shall expand the Bureau's census question that details
households which include both grandparents and their grandchildren. The
expanded question shall be formulated to distinguish between the following
households:
(1) A household in which a grandparent temporarily provides a home
for a grandchild for a period of weeks or months during periods of
parental distress.
(2) A household in which a grandparent provides a home for a
grandchild and serves as the primary caregiver for the grandchild.
SEC. 106. REPORT ON DATA PROCESSING.
(a) In General.--Within 6 months after the date of the enactment of this
Act, the Secretary of Health and Human Services shall prepare and submit to
the Congress a report on--
(1) the status of the automated data processing systems operated by
the States to assist management in the administration of State programs
under part A of title IV of the Social Security Act (whether in effect
before or after October 1, 1995); and
(2) what would be required to establish a system capable of--
(A) tracking participants in public programs over time; and
(B) checking case records of the States to determine whether
individuals are participating in public programs of 2 or more States.
(b) Preferred Contents.--The report required by subsection (a) should
include--
(1) a plan for building on the automated data processing systems of
the States to establish a system with the capabilities described in
subsection (a)(2); and
(2) an estimate of the amount of time required to establish such a
system and of the cost of establishing such a system.
SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.
(a) Study.--The Secretary shall, in cooperation with the States, study
and analyze outcomes measures for evaluating the success of the States in
moving individuals out of the welfare system through employment as an
alternative to the minimum participation rates described in section 407 of
the Social Security Act. The study shall include a determination as to
whether such alternative outcomes measures should be applied on a national or
a State-by-State basis and a preliminary assessment of the effects of section
409(a)(7)(C) of such Act.
(b) Report.--Not later than September 30, 1998, the Secretary shall
submit to the Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report containing the findings of
the study required by subsection (a).
SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.
(a) Amendments to Title II.--
(1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), as so
redesignated by section 321(a)(9)(B) of the Social Security Independence
and Program Improvements Act of 1994, is amended--
(A) by inserting "an agency administering a program funded under
part A of title IV or" before "an agency operating"; and
(B) by striking "A or D of title IV of this Act" and inserting "D
of such title".
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by inserting
"under a State program funded under" before "part A of title IV".
(b) Amendments to Part B of Title IV.--Section 422(b)(2) (42 U.S.C.
622(b)(2)) is amended--
(1) by striking "plan approved under part A of this title" and
inserting "program funded under part A"; and
(2) by striking "part E of this title" and inserting "under the State
plan approved under part E".
(c) Amendments to Part D of Title IV.--
(1) Section 451 (42 U.S.C. 651) is amended by striking "aid" and
inserting "assistance under a State program funded".
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is amended--
(A) by striking "aid to families with dependent children" and
inserting "assistance under a State program funded under part A";
(B) by striking "such aid" and inserting "such assistance"; and
(C) by striking "under section 402(a)(26) or" and inserting
"pursuant to section 408(a)(3) or under section".
(3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is amended--
(A) by striking "aid under a State plan approved" and inserting
"assistance under a State program funded"; and
(B) by striking "in accordance with the standards referred to in
section 402(a)(26)(B)(ii)" and inserting "by the State".
(4) Section 452(b) (42 U.S.C. 652(b)) is amended in the first
sentence by striking "aid under the State plan approved under part A" and
inserting "assistance under the State program funded under part A".
(5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is amended by
striking "1115(c)" and inserting "1115(b)".
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 652(g)(2)(A)(ii)(I)) is
amended by striking "aid is being paid under the State's plan approved
under part A or E" and inserting "assistance is being provided under the
State program funded under part A".
(7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended in the
matter following clause (iii) by striking "aid was being paid under the
State's plan approved under part A or E" and inserting "assistance was
being provided under the State program funded under part A".
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in the matter
following subparagraph (B)--
(A) by striking "who is a dependent child" and inserting "with
respect to whom assistance is being provided under the State program
funded under part A";
(B) by inserting "by the State" after "found"; and
(C) by striking "to have good cause for refusing to cooperate
under section 402(a)(26)" and inserting "to qualify for a good cause
or other exception to cooperation pursuant to section 454(29)".
(9) Section 452(h) (42 U.S.C. 652(h)) is amended by striking "under
section 402(a)(26)" and inserting "pursuant to section 408(a)(3)".
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by striking
"aid under part A of this title" and inserting "assistance under a State
program funded under part A".
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A)) is amended--
(A) by striking "under section 402(a)(26)" and inserting
"pursuant to section 408(a)(3)"; and
(B) by striking "; except that this paragraph shall not apply to
such payments for any month following the first month in which the
amount collected is sufficient to make such family ineligible for
assistance under the State plan approved under part A;" and inserting
a comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended by striking
"aid under a State plan approved" and inserting "assistance under a State
program funded".
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by striking
"under section 402(a)(26)".
(14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended by
striking "402(a)(26)" and inserting "408(a)(3)".
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by striking
"aid" and inserting "assistance under a State program funded".
(16) Section 469(a) (42 U.S.C. 669(a)) is amended--
(A) by striking "aid under plans approved" and inserting
"assistance under State programs funded"; and
(B) by striking "such aid" and inserting "such assistance".
(d) Amendments to Part E of Title IV.--
(1) Section 470 (42 U.S.C. 670) is amended--
(A) by striking "would be" and inserting "would have been"; and
(B) by inserting "(as such plan was in effect on June 1, 1995)"
after "part A".
(2) Section 471(a)(17) (42 U.S.C. 671(a)(17)) is amended by striking
"plans approved under parts A and D" and inserting "program funded under
part A and plan approved under part D".
(3) Section 472(a) (42 U.S.C. 672(a)) is amended--
(A) in the matter preceding paragraph (1)--
(i) by striking "would meet" and inserting "would have met";
(ii) by inserting "(as such sections were in effect on June
1, 1995)" after "407"; and
(iii) by inserting "(as so in effect)" after "406(a)"; and
(B) in paragraph (4)--
(i) in subparagraph (A)--
(I) by inserting "would have" after "(A)"; and
(II) by inserting "(as in effect on June 1, 1995)" after
"section 402"; and
(ii) in subparagraph (B)(ii), by inserting "(as in effect on
June 1, 1995)" after "406(a)".
(4) Section 472(h) (42 U.S.C. 672(h)) is amended to read as follows:
"(h)(1) For purposes of title XIX, any child with respect to whom foster
care maintenance payments are made under this section is deemed to be a
dependent child as defined in section 406 (as in effect as of June 1, 1995)
and deemed to be a recipient of aid to families with dependent children under
part A of this title (as so in effect). For purposes of title XX, any child
with respect to whom foster care maintenance payments are made under this
section is deemed to be a minor child in a needy family under a State program
funded under part A of this title and is deemed to be a recipient of
assistance under such part.
"(2) For purposes of paragraph (1), a child whose costs in a foster
family home or child care institution are covered by the foster care
maintenance payments being made with respect to the child's minor parent, as
provided in section 475(4)(B), shall be considered a child with respect to
whom foster care maintenance payments are made under this section.".
(5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is amended--
(A) in subparagraph (A)(i)--
(i) by inserting "(as such sections were in effect on June 1,
1995)" after "407";
(ii) by inserting "(as so in effect)" after "specified in
section 406(a)"; and
(iii) by inserting "(as such section was in effect on June 1,
1995)" after "403";
(B) in subparagraph (B)(i)--
(i) by inserting "would have" after "(B)(i)"; and
(ii) by inserting "(as in effect on June 1, 1995)" after
"section 402"; and
(C) in subparagraph (B)(ii)(II), by inserting "(as in effect on
June 1, 1995)" after "406(a)".
(6) Section 473(b) (42 U.S.C. 673(b)) is amended to read as follows:
"(b)(1) For purposes of title XIX, any child who is described in
paragraph (3) is deemed to be a dependent child as defined in section 406 (as
in effect as of June 1, 1995) and deemed to be a recipient of aid to families
with dependent children under part A of this title (as so in effect) in the
State where such child resides.
"(2) For purposes of title XX, any child who is described in paragraph
(3) is deemed to be a minor child in a needy family under a State program
funded under part A of this title and deemed to be a recipient of assistance
under such part.
"(3) A child described in this paragraph is any child--
"(A)(i) who is a child described in subsection (a)(2), and
"(ii) with respect to whom an adoption assistance agreement is in
effect under this section (whether or not adoption assistance payments
are provided under the agreement or are being made under this section),
including any such child who has been placed for adoption in accordance
with applicable State and local law (whether or not an interlocutory or
other judicial decree of adoption has been issued), or
"(B) with respect to whom foster care maintenance payments are being
made under section 472.
"(4) For purposes of paragraphs (1) and (2), a child whose costs in a
foster family home or child-care institution are covered by the foster care
maintenance payments being made with respect to the child's minor parent, as
provided in section 475(4)(B), shall be considered a child with respect to
whom foster care maintenance payments are being made under section 472.".
(e) Repeal of Part F of Title IV.--Part F of title IV (42 U.S.C. 681-687)
is repealed.
(f) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C. 1202(a)(7)) is
amended by striking "aid to families with dependent children under the State
plan approved under section 402 of this Act" and inserting "assistance under
a State program funded under part A of title IV".
(g) Amendments to Title XI.--
(1) Section 1109 (42 U.S.C. 1309) is amended by striking "or part A
of title IV,".
(2) Section 1115 (42 U.S.C. 1315) is amended--
(A) in subsection (a)(2)--
(i) by inserting "(A)" after "(2)";
(ii) by striking "403,";
(iii) by striking the period at the end and inserting ",
and"; and
(iv) by adding at the end the following new subparagraph:
"(B) costs of such project which would not otherwise be a permissible
use of funds under part A of title IV and which are not included as part
of the costs of projects under section 1110, shall to the extent and for
the period prescribed by the Secretary, be regarded as a permissible use
of funds under such part.";
(B) in subsection (c)(3), by striking "the program of aid to
families with dependent children" and inserting "part A of such
title"; and
(C) by striking subsection (b) and redesignating subsections (c)
and (d) as subsections (b) and (c), respectively.
(3) Section 1116 (42 U.S.C. 1316) is amended--
(A) in each of subsections (a)(1), (b), and (d), by striking "or
part A of title IV,"; and
(B) in subsection (a)(3), by striking "404,".
(4) Section 1118 (42 U.S.C. 1318) is amended--
(A) by striking "403(a),";
(B) by striking "and part A of title IV,"; and
(C) by striking ", and shall, in the case of American Samoa, mean
75 per centum with respect to part A of title IV".
(5) Section 1119 (42 U.S.C. 1319) is amended--
(A) by striking "or part A of title IV"; and
(B) by striking "403(a),".
(6) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by striking "or
part A of title IV,".
(7) Section 1136 (42 U.S.C. 1320b-6) is repealed.
(8) Section 1137 (42 U.S.C. 1320b-7) is amended--
(A) in subsection (b), by striking paragraph (1) and inserting
the following:
"(1) any State program funded under part A of title IV of this Act;";
and
(B) in subsection (d)(1)(B)--
(i) by striking "In this subsection--" and all that follows
through "(ii) in" and inserting "In this subsection, in";
(ii) by redesignating subclauses (I), (II), and (III) as
clauses (i), (ii), and (iii); and
(iii) by moving such redesignated material 2 ems to the left.
(h) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C. 1352(a)(7)) is
amended by striking "aid to families with dependent children under the State
plan approved under section 402 of this Act" and inserting "assistance under
a State program funded under part A of title IV".
(i) Amendment to Title XVI as in Effect With Respect to the
Territories.--Section 1602(a)(11), as in effect without regard to the
amendment made by section 301 of the Social Security Amendments of 1972 (42
U.S.C. 1382 note), is amended by striking "aid under the State plan approved"
and inserting "assistance under a State program funded".
(j) Amendment to Title XVI as in Effect With Respect to the States.--
Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is amended to read as
follows: "(A) a State program funded under part A of title IV,".
(k) Amendment to Title XIX.--Section 1902(j) (42 U.S.C. 1396a(j)) is
amended by striking "1108(c)" and inserting "1108(f)".
SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 AND RELATED
PROVISIONS.
(a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is amended--
(1) in the second sentence of subsection (a), by striking "plan
approved" and all that follows through "title IV of the Social Security
Act" and inserting "program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.)";
(2) in subsection (d)--
(A) in paragraph (5), by striking "assistance to families with
dependent children" and inserting "assistance under a State program
funded"; and
(B) by striking paragraph (13) and redesignating paragraphs (14),
(15), and (16) as paragraphs (13), (14), and (15), respectively;
(3) in subsection (j), by striking "plan approved under part A of
title IV of such Act (42 U.S.C. 601 et seq.)" and inserting "program
funded under part A of title IV of the Act (42 U.S.C. 601 et seq.)"; and
(4) by striking subsection (m).
(b) Section 6 of such Act (7 U.S.C. 2015) is amended--
(1) in subsection (c)(5), by striking "the State plan approved" and
inserting "the State program funded"; and
(2) in subsection (e)(6), by striking "aid to families with dependent
children" and inserting "benefits under a State program funded".
(c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended by
striking "State plans under the Aid to Families with Dependent Children
Program under" and inserting "State programs funded under part A of".
(d) Section 17 of such Act (7 U.S.C. 2026) is amended--
(1) in the first sentence of subsection (b)(1)(A), by striking "to
aid to families with dependent children under part A of title IV of the
Social Security Act" and inserting "or are receiving assistance under a
State program funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.)"; and
(2) in subsection (b)(3), by adding at the end the following new
subparagraph:
"(I) The Secretary may not grant a waiver under this paragraph on or
after the date of enactment of this subparagraph. Any reference in this
paragraph to a provision of title IV of the Social Security Act shall be
deemed to be a reference to such provision as in effect on the day before
such date.";
(e) Section 20 of such Act (7 U.S.C. 2029) is amended--
(1) in subsection (a)(2)(B) by striking "operating--" and all that
follows through "(ii) any other" and inserting "operating any"; and
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking "(b)(1) A household" and inserting "(b) A
household"; and
(ii) in subparagraph (B), by striking "training program" and
inserting "activity";
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A) through (F) as paragraphs
(1) through (6), respectively.
(f) Section 5(h)(1) of the Agriculture and Consumer Protection Act of
1973 (Public Law 93-186; 7 U.S.C. 612c note) is amended by striking "the
program for aid to families with dependent children" and inserting "the State
program funded".
(g) Section 9 of the National School Lunch Act (42 U.S.C. 1758) is
amended--
(1) in subsection (b)--
(A) in paragraph (2)(C)(ii)(II)--
(i) by striking "program for aid to families with dependent
children" and inserting "State program funded"; and
(ii) by inserting before the period at the end the following:
"that the Secretary determines complies with standards
established by the Secretary that ensure that the standards under
the State program are comparable to or more restrictive than
those in effect on June 1, 1995"; and
(B) in paragraph (6)--
(i) in subparagraph (A)(ii)--
(I) by striking "an AFDC assistance unit (under the aid
to families with dependent children program authorized" and
inserting "a family (under the State program funded"; and
(II) by striking ", in a State" and all that follows
through "9902(2)))" and inserting "that the Secretary
determines complies with standards established by the
Secretary that ensure that the standards under the State
program are comparable to or more restrictive than those in
effect on June 1, 1995"; and
(ii) in subparagraph (B), by striking "aid to families with
dependent children" and inserting "assistance under the State
program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) that the Secretary determines
complies with standards established by the Secretary that ensure
that the standards under the State program are comparable to or
more restrictive than those in effect on June 1, 1995"; and
(2) in subsection (d)(2)(C)--
(A) by striking "program for aid to families with dependent
children" and inserting "State program funded"; and
(B) by inserting before the period at the end the following:
"that the Secretary determines complies with standards established by
the Secretary that ensure that the standards under the State program
are comparable to or more restrictive than those in effect on June 1,
1995".
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
(1) by striking "program for aid to families with dependent children
established" and inserting "State program funded"; and
(2) by inserting before the semicolon the following: "that the
Secretary determines complies with standards established by the Secretary
that ensure that the standards under the State program are comparable to
or more restrictive than those in effect on June 1, 1995".
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemployment Compensation
Amendments of 1976 (42 U.S.C. 603a; Public Law 94-566; 90 Stat. 2689) is
amended to read as follows:
"(b) Provision for Reimbursement of Expenses.--For purposes of section
455 of the Social Security Act, expenses incurred to reimburse State
employment offices for furnishing information requested of such offices--
"(1) pursuant to the third sentence of section 3(a) of the Act
entitled 'An Act to provide for the establishment of a national
employment system and for cooperation with the States in the promotion of
such system, and for other purposes', approved June 6, 1933 (29 U.S.C.
49b(a)), or
"(2) by a State or local agency charged with the duty of carrying a
State plan for child support approved under part D of title IV of the
Social Security Act,
shall be considered to constitute expenses incurred in the administration of
such State plan.".
(b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 (42
U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 (42
U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 (42
U.S.C. 602 note), relating to treatment under AFDC of certain rental payments
for federally assisted housing, is repealed.
(e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 1982
(42 U.S.C. 602 note) is repealed.
(f) Section 202(d) of the Social Security Amendments of 1967 (81 Stat.
882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Homeless Assistance Amendments
Act of 1988 (42 U.S.C. 11381 note), relating to demonstration projects to
reduce number of AFDC families in welfare hotels, is amended--
(1) in subsection (a), by striking "aid to families with dependent
children under a State plan approved" and inserting "assistance under a
State program funded"; and
(2) in subsection (c), by striking "aid to families with dependent
children in the State under a State plan approved" and inserting
"assistance in the State under a State program funded".
(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is
amended--
(1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by striking
"(Aid to Families with Dependent Children)"; and
(2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by striking "aid
to families with dependent children under a State plan approved" and
inserting "assistance under a State program funded".
(i) The Carl D. Perkins Vocational and Applied Technology Education Act
(20 U.S.C. 2301 et seq.) is amended--
(1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)), by
striking "The program for aid to dependent children" and inserting "The
State program funded";
(2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by striking
"the program for aid to families with dependent children" and inserting
"the State program funded"; and
(3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)), by
striking "the program for aid to families with dependent children" and
inserting "the State program funded".
(j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 2701 et
seq.) is amended--
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking "Aid to
Families with Dependent Children program" and inserting "State program
funded under part A of title IV of the Social Security Act";
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking "the
program of aid to families with dependent children under a State plan
approved under" and inserting "a State program funded under part A of";
and
(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--
(A) in subparagraph (A)(xi), by striking "Aid to Families with
Dependent Children benefits" and inserting "assistance under a State
program funded under part A of title IV of the Social Security Act";
and
(B) in subparagraph (B)(viii), by striking "Aid to Families with
Dependent Children" and inserting "assistance under the State program
funded under part A of title IV of the Social Security Act".
(k) The 4th proviso of chapter VII of title I of Public Law 99-88 (25
U.S.C. 13d-1) is amended to read as follows: "Provided further, That general
assistance payments made by the Bureau of Indian Affairs shall be made--
"(1) after April 29, 1985, and before October 1, 1995, on the basis
of Aid to Families with Dependent Children (AFDC) standards of need; and
"(2) on and after October 1, 1995, on the basis of standards of need
established under the State program funded under part A of title IV of
the Social Security Act,
except that where a State ratably reduces its AFDC or State program payments,
the Bureau shall reduce general assistance payments in such State by the same
percentage as the State has reduced the AFDC or State program payment.".
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is amended--
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all that
follows "agency as" and inserting "being eligible for financial
assistance under part A of title IV of the Social Security Act and as
having continually received such financial assistance during the 90-day
period which immediately precedes the date on which such individual is
hired by the employer.";
(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by striking
"eligibility for aid or services," and all that follows through "children
approved" and inserting "eligibility for assistance, or the amount of
such assistance, under a State program funded";
(3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)), by
striking "aid to families with dependent children provided under a State
plan approved" and inserting "a State program funded";
(4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))--
(A) by striking "(c) or (d)" each place it appears and inserting
"(c), (d), or (e)"; and
(B) by adding at the end of subparagraph (B) the following new
sentence: "Any return information disclosed with respect to section
6402(e) shall only be disclosed to officers and employees of the
State agency requesting such information.";
(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the matter
preceding subparagraph (A)--
(A) by striking "(5), (10)" and inserting "(5)"; and
(B) by striking "(9), or (12)" and inserting "(9), (10), or
(12)";
(6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by striking
"(relating to aid to families with dependent children)";
(7) in section 6402 (26 U.S.C. 6402)--
(A) in subsection (a), by striking "(c) and (d)" and inserting
"(c), (d), and (e)";
(B) by redesignating subsections (e) through (i) as subsections
(f) through (j), respectively; and
(C) by inserting after subsection (d) the following:
"(e) Collection of Overpayments Under Title IV-A of the Social Security
Act.--The amount of any overpayment to be refunded to the person making the
overpayment shall be reduced (after reductions pursuant to subsections (c)
and (d), but before a credit against future liability for an internal revenue
tax) in accordance with section 405(e) of the Social Security Act (concerning
recovery of overpayments to individuals under State plans approved under part
A of title IV of such Act)."; and
(8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by striking
"aid to families with dependent children" and inserting "assistance under
a State program funded under part A of title IV of the Social Security
Act".
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is amended
by striking "State plan approved under part A of title IV" and inserting
"State program funded under part A of title IV".
(n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is
amended--
(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by striking
"(42 U.S.C. 601 et seq.)";
(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by striking
"State aid to families with dependent children records," and inserting
"records collected under the State program funded under part A of title
IV of the Social Security Act,";
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--
(A) by striking "the JOBS program" and inserting "the work
activities required under title IV of the Social Security Act"; and
(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))--
(A) in paragraph (1)(E), by repealing clause (vi); and
(B) in paragraph (2)(D), by repealing clause (v);
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking ",
including recipients under the JOBS program";
(6) in subparagraphs (A) and (B) of section 204(a)(1) (29 U.S.C.
1604(a)(1) (A) and (B)), by striking "(such as the JOBS program)" each
place it appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by striking paragraph (4)
and inserting the following:
"(4) the portions of title IV of the Social Security Act relating to
work activities;";
(8) in section 253 (29 U.S.C. 1632)--
(A) in subsection (b)(2), by repealing subparagraph (C); and
(B) in paragraphs (1)(B) and (2)(B) of subsection (c), by
striking "the JOBS program or" each place it appears;
(9) in section 264 (29 U.S.C. 1644)--
(A) in subparagraphs (A) and (B) of subsection (b)(1), by
striking "(such as the JOBS program)" each place it appears; and
(B) in subparagraphs (A) and (B) of subsection (d)(3), by
striking "and the JOBS program" each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by striking paragraph (6)
and inserting the following:
"(6) the portion of title IV of the Social Security Act relating to
work activities;";
(11) in the second sentence of section 429(e) (29 U.S.C. 1699(e)), by
striking "and shall be in an amount that does not exceed the maximum
amount that may be provided by the State pursuant to section 402(g)(1)(C)
of the Social Security Act (42 U.S.C. 602(g)(1)(C))";
(12) in section 454(c) (29 U.S.C. 1734(c)), by striking "JOBS and";
(13) in section 455(b) (29 U.S.C. 1735(b)), by striking "the JOBS
program,";
(14) in section 501(1) (29 U.S.C. 1791(1)), by striking "aid to
families with dependent children under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.)" and inserting "assistance under the
State program funded under part A of title IV of the Social Security
Act";
(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking "aid
to families with dependent children" and inserting "assistance under the
State program funded";
(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by striking
"aid to families with dependent children" and inserting "assistance under
the State program funded"; and
(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))--
(A) in clause (v), by striking the semicolon and inserting ";
and"; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is amended
to read as follows:
"(iv) assistance under a State program funded under part A of title
IV of the Social Security Act;".
(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy Assistance Act
of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read as follows:
"(i) assistance under the State program funded under part A
of title IV of the Social Security Act;".
(q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 602
note) is amended--
(1) by striking "(A)"; and
(2) by striking subparagraphs (B) and (C).
(r) The Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 900 et seq.) is amended--
(1) in the first section 255(h) (2 U.S.C. 905(h)), by striking "Aid
to families with dependent children (75-0412-0-1-609);" and inserting
"Block grants to States for temporary assistance for needy families;";
and
(2) in section 256 (2 U.S.C. 906)--
(A) by striking subsection (k); and
(B) by redesignating subsection (l) as subsection (k).
(s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is
amended--
(1) in section 210(f) (8 U.S.C. 1160(f)), by striking "aid under a
State plan approved under" each place it appears and inserting
"assistance under a State program funded under";
(2) in section 245A(h) (8 U.S.C. 1255a(h))--
(A) in paragraph (1)(A)(i), by striking "program of aid to
families with dependent children" and inserting "State program of
assistance"; and
(B) in paragraph (2)(B), by striking "aid to families with
dependent children" and inserting "assistance under a State program
funded under part A of title IV of the Social Security Act"; and
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking "State
plan approved" and inserting "State program funded".
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C.
9835(a)(4)(B)(i)) is amended by striking "program of aid to families with
dependent children under a State plan approved" and inserting "State program
of assistance funded".
(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 92; 25
U.S.C. 639) is repealed.
(v) Subparagraph (E) of section 213(d)(6) of the School-To-Work
Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as
follows:
"(E) part A of title IV of the Social Security Act (42 U.S.C. 601
et seq.) relating to work activities;".
(w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, is
amended by striking "section 464 or 1137 of the Social Security Act" and
inserting "section 404(e), 464, or 1137 of the Social Security Act".
SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT SOCIAL SECURITY
CARD REQUIRED.
(a) Development.--
(1) In general.--The Commissioner of Social Security (in this section
referred to as the "Commissioner") shall, in accordance with this
section, develop a prototype of a counterfeit-resistant social security
card. Such prototype card shall--
(A) be made of a durable, tamper-resistant material such as
plastic or polyester,
(B) employ technologies that provide security features, such as
magnetic stripes, holograms, and integrated circuits, and
(C) be developed so as to provide individuals with reliable proof
of citizenship or legal resident alien status.
(2) Assistance by attorney general.--The Attorney General of the
United States shall provide such information and assistance as the
Commissioner deems necessary to enable the Commissioner to comply with
this section.
(b) Study and Report.--
(1) In general.--The Commissioner shall conduct a study and issue a
report to Congress which examines different methods of improving the
social security card application process.
(2) Elements of study.--The study shall include an evaluation of the
cost and work load implications of issuing a counterfeit-resistant social
security card for all individuals over a 3-, 5-, and 10-year period. The
study shall also evaluate the feasibility and cost implications of
imposing a user fee for replacement cards and cards issued to individuals
who apply for such a card prior to the scheduled 3-, 5-, and 10-year
phase-in options.
(3) Distribution of report.--The Commissioner shall submit copies of
the report described in this subsection along with a facsimile of the
prototype card as described in subsection (a) to the Committees on Ways
and Means and Judiciary of the House of Representatives and the
Committees on Finance and Judiciary of the Senate within 1 year after the
date of the enactment of this Act.
SEC. 112. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN LOW-INCOME
INDIVIDUALS PROGRAM.
Section 505 of the Family Support Act of 1988 (42 U.S.C. 1315 note) is
amended--
(1) in the heading, by striking "demonstration";
(2) by striking "demonstration" each place such term appears;
(3) in subsection (a), by striking "in each of fiscal years" and all
that follows through "10" and inserting "shall enter into agreements
with";
(4) in subsection (b)(3), by striking "aid to families with dependent
children under part A of title IV of the Social Security Act" and
inserting "assistance under the program funded part A of title IV of the
Social Security Act of the State in which the individual resides";
(5) in subsection (c)--
(A) in paragraph (1)(C), by striking "aid to families with
dependent children under title IV of the Social Security Act" and
inserting "assistance under a State program funded part A of title IV
of the Social Security Act";
(B) in paragraph (2), by striking "aid to families with dependent
children under title IV of such Act" and inserting "assistance under
a State program funded part A of title IV of the Social Security
Act";
(6) in subsection (d), by striking "job opportunities and basic
skills training program (as provided for under title IV of the Social
Security Act)" and inserting "the State program funded under part A of
title IV of the Social Security Act"; and
(7) by striking subsections (e) through (g) and inserting the
following:
"(e) Authorization of Appropriations.--For the purpose of conducting
projects under this section, there is authorized to be appropriated an amount
not to exceed $25,000,000 for any fiscal year.".
SEC. 113. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR TECHNICAL AND
CONFORMING AMENDMENTS.
Not later than 90 days after the date of the enactment of this Act, the
Secretary of Health and Human Services and the Commissioner of Social
Security, in consultation, as appropriate, with the heads of other Federal
agencies, shall submit to the appropriate committees of Congress a
legislative proposal proposing such technical and conforming amendments as
are necessary to bring the law into conformity with the policy embodied in
this title.
SEC. 114. ASSURING MEDICAID COVERAGE FOR LOW-INCOME FAMILIES.
(a) In General.--Title XIX is amended--
(1) by redesignating section 1931 as section 1932; and
(2) by inserting after section 1930 the following new section:
"ASSURING COVERAGE FOR CERTAIN LOW-INCOME FAMILIES
"Sec. 1931. (a) References to Title IV-A Are References to Pre-Welfare-
Reform Provisions.--Subject to the succeeding provisions of this section,
with respect to a State any reference in this title (or any other provision
of law in relation to the operation of this title) to a provision of part A
of title IV, or a State plan under such part (or a provision of such a plan),
including income and resource standards and income and resource methodologies
under such part or plan, shall be considered a reference to such a provision
or plan as in effect as of July 16, 1996, with respect to the State.
"(b) Application of Pre-Welfare-Reform Eligibility Criteria.--
"(1) In general.--For purposes of this title, subject to paragraphs
(2) and (3), in determining eligibility for medical assistance--
"(A) an individual shall be treated as receiving aid or
assistance under a State plan approved under part A of title IV only
if the individual meets--
"(i) the income and resource standards for determining
eligibility under such plan, and
"(ii) the eligibility requirements of such plan under
subsections (a) through (c) of section 406 and section 407(a),
as in effect as of July 16, 1996; and
"(B) the income and resource methodologies under such plan as of
such date shall be used in the determination of whether any
individual meets income and resource standards under such plan.
"(2) State option.--For purposes of applying this section, a State--
"(A) may lower its income standards applicable with respect to
part A of title IV, but not below the income standards applicable
under its State plan under such part on May 1, 1988;
"(B) may increase income or resource standards under the State
plan referred to in paragraph (1) over a period (beginning after July
16, 1996) by a percentage that does not exceed the percentage
increase in the Consumer Price Index for all urban consumers (all
items; United States city average) over such period; and
"(C) may use income and resource methodologies that are less
restrictive than the methodologies used under the State plan under
such part as of July 16, 1996.
"(3) Option to terminate medical assistance for failure to meet work
requirement.--
"(A) Individuals receiving cash assistance under tanf.--In the
case of an individual who--
"(i) is receiving cash assistance under a State program
funded under part A of title IV,
"(ii) is eligible for medical assistance under this title on
a basis not related to section 1902(l), and
"(iii) has the cash assistance under such program terminated
pursuant to section 407(e)(1)(B) (as in effect on or after the
welfare reform effective date) because of refusing to work,
the State may terminate such individual's eligibility for medical
assistance under this title until such time as there no longer is a
basis for the termination of such cash assistance because of such
refusal.
"(B) Exception for children.--Subparagraph (A) shall not be
construed as permitting a State to terminate medical assistance for a
minor child who is not the head of a household receiving assistance
under a State program funded under part A of title IV.
"(c) Treatment for Purposes of Transitional Coverage Provisions.--
"(1) Transition in the case of child support collections.--The
provisions of section 406(h) (as in effect on July 16, 1996) shall apply,
in relation to this title, with respect to individuals (and families
composed of individuals) who are described in subsection (b)(1)(A), in
the same manner as they applied before such date with respect to
individuals who became ineligible for aid to families with dependent
children as a result (wholly or partly) of the collection of child or
spousal support under part D of title IV.
"(2) Transition in the case of earnings from employment.--For
continued medical assistance in the case of individuals (and families
composed of individuals) described in subsection (b)(1)(A) who would
otherwise become ineligible because of hours or income from employment,
see sections 1925 and 1902(e)(1).
"(d) Waivers.--In the case of a waiver of a provision of part A of title
IV in effect with respect to a State as of July 16, 1996, or which is
submitted to the Secretary before the date of the enactment of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 and approved
by the Secretary on or before July 1, 1997, if the waiver affects eligibility
of individuals for medical assistance under this title, such waiver may (but
need not) continue to be applied, at the option of the State, in relation to
this title after the date the waiver would otherwise expire.
"(e) State Option To Use 1 Application Form.--Nothing in this section, or
part A of title IV, shall be construed as preventing a State from providing
for the same application form for assistance under a State program funded
under part A of title IV (on or after the welfare reform effective date) and
for medical assistance under this title.
"(f) Additional Rules of Construction.--
"(1) With respect to the reference in section 1902(a)(5) to a State
plan approved under part A of title IV, a State may treat such reference
as a reference either to a State program funded under such part (as in
effect on and after the welfare reform effective date) or to the State
plan under this title.
"(2) Any reference in section 1902(a)(55) to a State plan approved
under part A of title IV shall be deemed a reference to a State program
funded under such part.
"(3) In applying section 1903(f), the applicable income limitation
otherwise determined shall be subject to increase in the same manner as
income or resource standards of a State may be increased under subsection
(b)(2)(B).
"(g) Relation to Other Provisions.--The provisions of this section shall
apply notwithstanding any other provision of this Act.
"(h) Transitional Increased Federal Matching Rate for Increased
Administrative Costs.--
"(1) In general.--Subject to the succeeding provisions of this
subsection, the Secretary shall provide that with respect to
administrative expenditures described in paragraph (2) the per centum
specified in section 1903(a)(7) shall be increased to such percentage as
the Secretary specifies.
"(2) Administrative expenditures described.--The administrative
expenditures described in this paragraph are expenditures described in
section 1903(a)(7) that a State demonstrates to the satisfaction of the
Secretary are attributable to administrative costs of eligibility
determinations that (but for the enactment of this section) would not be
incurred.
"(3) Limitation.--The total amount of additional Federal funds that
are expended as a result of the application of this subsection for the
period beginning with fiscal year 1997 and ending with fiscal year 2000
shall not exceed $500,000,000. In applying this paragraph, the Secretary
shall ensure the equitable distribution of additional funds among the
States.
"(4) Time limitation.--This subsection shall only apply with respect
to a State for expenditures incurred during the first 12 calendar
quarters in which the State program funded under part A of title IV (as
in effect on and after the welfare reform effective date) is in effect.
"(i) Welfare Reform Effective Date.--In this section, the term 'welfare
reform effective date' means the effective date, with respect to a State, of
title I of the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (as specified in section 116 of such Act).".
(b) Plan Amendment.--Section 1902(a) (42 U.S.C. 1396a(a)) is amended--
(1) by striking "and" at the end of paragraph (61),
(2) by striking the period at the end of paragraph (62) and inserting
"; and", and
(3) by inserting after paragraph (62) the following new paragraph:
"(63) provide for administration and determinations of eligibility
with respect to individuals who are (or seek to be) eligible for medical
assistance based on the application of section 1931.".
(c) Extension of Work Transition Provisions.--Sections 1902(e)(1)(B) and
1925(f) (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended by striking
"1998" and inserting "2001".
(d) Elimination of Requirement of Minimum AFDC Payment Levels.--(1)
Section 1902(c) (42 U.S.C. 1396a(c)) is amended by striking "if--" and all
that follows and inserting the following: "if the State requires individuals
described in subsection (l)(1) to apply for assistance under the State
program funded under part A of title IV as a condition of applying for or
receiving medical assistance under this title.".
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by striking paragraph
(9).
SEC. 115. DENIAL OF ASSISTANCE AND BENEFITS FOR CERTAIN DRUG-RELATED
CONVICTIONS.
(a) In General.--An individual convicted (under Federal or State law) of
any offense which is classified as a felony by the law of the jurisdiction
involved and which has as an element the possession, use, or distribution of
a controlled substance (as defined in section 102(6) of the Controlled
Substances Act (21 U.S.C. 802(6))) shall not be eligible for--
(1) assistance under any State program funded under part A of title
IV of the Social Security Act, or
(2) benefits under the food stamp program (as defined in section 3(h)
of the Food Stamp Act of 1977) or any State program carried out under the
Food Stamp Act of 1977.
(b) Effects on Assistance and Benefits for Others.--
(1) Program of temporary assistance for needy families.--The amount
of assistance otherwise required to be provided under a State program
funded under part A of title IV of the Social Security Act to the family
members of an individual to whom subsection (a) applies shall be reduced
by the amount which would have otherwise been made available to the
individual under such part.
(2) Benefits under the food stamp act of 1977.--The amount of
benefits otherwise required to be provided to a household under the food
stamp program (as defined in section 3(h) of the Food Stamp Act of 1977),
or any State program carried out under the Food Stamp Act of 1977, shall
be determined by considering the individual to whom subsection (a)
applies not to be a member of such household, except that the income and
resources of the individual shall be considered to be income and
resources of the household.
(c) Enforcement.--A State that has not exercised its authority under
subsection (d)(1)(A) shall require each individual applying for assistance or
benefits referred to in subsection (a), during the application process, to
state, in writing, whether the individual, or any member of the household of
the individual, has been convicted of a crime described in subsection (a).
(d) Limitations.--
(1) State elections.--
(A) Opt out.--A State may, by specific reference in a law enacted
after the date of the enactment of this Act, exempt any or all
individuals domiciled in the State from the application of subsection
(a).
(B) Limit period of prohibition.--A State may, by law enacted
after the date of the enactment of this Act, limit the period for
which subsection (a) shall apply to any or all individuals domiciled
in the State.
(2) Inapplicability to convictions occurring on or before
enactment.--Subsection (a) shall not apply to convictions occurring on or
before the date of the enactment of this Act.
(e) Definitions of State.--For purposes of this section, the term "State"
has the meaning given it--
(1) in section 419(5) of the Social Security Act, when referring to
assistance provided under a State program funded under part A of title IV
of the Social Security Act, and
(2) in section 3(m) of the Food Stamp Act of 1977, when referring to
the food stamp program (as defined in section 3(h) of the Food Stamp Act
of 1977) or any State program carried out under the Food Stamp Act of
1977.
(f) Rule of Interpretation.--Nothing in this section shall be construed
to deny the following Federal benefits:
(1) Emergency medical services under title XIX of the Social Security
Act.
(2) Short-term, noncash, in-kind emergency disaster relief.
(3)(A) Public health assistance for immunizations.
(B) Public health assistance for testing and treatment of
communicable diseases if the Secretary of Health and Human Services
determines that it is necessary to prevent the spread of such disease.
(4) Prenatal care.
(5) Job training programs.
(6) Drug treatment programs.
SEC. 116. EFFECTIVE DATE; TRANSITION RULE.
(a) Effective Dates.--
(1) In general.--Except as otherwise provided in this title, this
title and the amendments made by this title shall take effect on July 1,
1997.
(2) Delayed effective date for certain provisions.--Notwithstanding
any other provision of this section, paragraphs (2), (3), (4), (5), (8),
and (10) of section 409(a) and section 411(a) of the Social Security Act
(as added by the amendments made by section 103(a) of this Act) shall not
take effect with respect to a State until, and shall apply only with
respect to conduct that occurs on or after, the later of--
(A) July 1, 1997; or
(B) the date that is 6 months after the date the Secretary of
Health and Human Services receives from the State a plan described in
section 402(a) of the Social Security Act (as added by such
amendment).
(3) Grants to outlying areas.--The amendments made by section 103(b)
shall take effect on October 1, 1996.
(4) Elimination of child care programs.--The amendments made by
section 103(c) shall take effect on October 1, 1996.
(5) Definitions applicable to new child care entitlement.--Sections
403(a)(1)(C), 403(a)(1)(D), and 419(4) of the Social Security Act, as
added by the amendments made by section 103(a) of this Act, shall take
effect on October 1, 1996.
(b) Transition Rules.--Effective on the date of the enactment of this
Act:
(1) State option to accelerate effective date.--
(A) In general.--If the Secretary of Health and Human Services
receives from a State a plan described in section 402(a) of the
Social Security Act (as added by the amendment made by section
103(a)(1) of this Act), then--
(i) on and after the date of such receipt--
(I) except as provided in clause (ii), this title and the
amendments made by this title (other than by section 103(c)
of this Act) shall apply with respect to the State; and
(II) the State shall be considered an eligible State for
purposes of part A of title IV of the Social Security Act (as
in effect pursuant to the amendments made by such section
103(a)); and
(ii) during the period that begins on the date of such
receipt and ends on June 30, 1997, there shall remain in effect
with respect to the State--
(I) section 403(h) of the Social Security Act (as in
effect on September 30, 1995); and
(II) all State reporting requirements under parts A and F
of title IV of the Social Security Act (as in effect on
September 30, 1995), modified by the Secretary as
appropriate, taking into account the State program under part
A of title IV of the Social Security Act (as in effect
pursuant to the amendments made by such section 103(a)).
(B) Limitations on federal obligations.--
(i) Under afdc program.--The total obligations of the Federal
Government to a State under part A of title IV of the Social
Security Act (as in effect on September 30, 1995) with respect to
expenditures in fiscal year 1997 shall not exceed an amount equal
to the State family assistance grant.
(ii) Under temporary family assistance program.--
Notwithstanding section 403(a)(1) of the Social Security Act (as
in effect pursuant to the amendments made by section 103(a) of
this Act), the total obligations of the Federal Government to a
State under such section 403(a)(1)--
(I) for fiscal year 1996, shall be an amount equal to--
(aa) the State family assistance grant; multiplied by
(bb) 1/366 of the number of days during the period
that begins on the date the Secretary of Health and Human
Services first receives from the State a plan described
in section 402(a) of the Social Security Act (as added by
the amendment made by section 103(a)(1) of this Act) and
ends on September 30, 1996; and
(II) for fiscal year 1997, shall be an amount equal to
the lesser of--
(aa) the amount (if any) by which the State family
assistance grant exceeds the total obligations of the
Federal Government to the State under part A of title IV
of the Social Security Act (as in effect on September 30,
1995) with respect to expenditures in fiscal year 1997;
or
(bb) the State family assistance grant, multiplied by
1/365 of the number of days during the period that
begins on October 1, 1996, or the date the Secretary of
Health and Human Services first receives from the State a
plan described in section 402(a) of the Social Security
Act (as added by the amendment made by section 103(a)(1)
of this Act), whichever is later, and ends on September
30, 1997.
(iii) Child care obligations excluded in determining federal
afdc obligations.--As used in this subparagraph, the term
"obligations of the Federal Government to the State under part A
of title IV of the Social Security Act" does not include any
obligation of the Federal Government with respect to child care
expenditures by the State.
(C) Submission of state plan for fiscal year 1996 or 1997 deemed
acceptance of grant limitations and formula and termination of afdc
entitlement.--The submission of a plan by a State pursuant to
subparagraph (A) is deemed to constitute--
(i) the State's acceptance of the grant reductions under
subparagraph (B) (including the formula for computing the amount
of the reduction); and
(ii) the termination of any entitlement of any individual or
family to benefits or services under the State AFDC program.
(D) Definitions.--As used in this paragraph:
(i) State afdc program.--The term "State AFDC program" means
the State program under parts A and F of title IV of the Social
Security Act (as in effect on September 30, 1995).
(ii) State.--The term "State" means the 50 States and the
District of Columbia.
(iii) State family assistance grant.--The term "State family
assistance grant" means the State family assistance grant (as
defined in section 403(a)(1)(B) of the Social Security Act, as
added by the amendment made by section 103(a)(1) of this Act).
(2) Claims, actions, and proceedings.--The amendments made by this
title shall not apply with respect to--
(A) powers, duties, functions, rights, claims, penalties, or
obligations applicable to aid, assistance, or services provided
before the effective date of this title under the provisions amended;
and
(B) administrative actions and proceedings commenced before such
date, or authorized before such date to be commenced, under such
provisions.
(3) Closing out account for those programs terminated or
substantially modified by this title.--In closing out accounts, Federal
and State officials may use scientifically acceptable statistical
sampling techniques. Claims made with respect to State expenditures under
a State plan approved under part A of title IV of the Social Security Act
(as in effect on September 30, 1995) with respect to assistance or
services provided on or before September 30, 1995, shall be treated as
claims with respect to expenditures during fiscal year 1995 for purposes
of reimbursement even if payment was made by a State on or after October
1, 1995. Each State shall complete the filing of all claims under the
State plan (as so in effect) within 2 years after the date of the
enactment of this Act. The head of each Federal department shall--
(A) use the single audit procedure to review and resolve any
claims in connection with the close out of programs under such State
plans; and
(B) reimburse States for any payments made for assistance or
services provided during a prior fiscal year from funds for fiscal
year 1995, rather than from funds authorized by this title.
(4) Continuance in office of assistant secretary for family
support.--The individual who, on the day before the effective date of
this title, is serving as Assistant Secretary for Family Support within
the Department of Health and Human Services shall, until a successor is
appointed to such position--
(A) continue to serve in such position; and
(B) except as otherwise provided by law--
(i) continue to perform the functions of the Assistant
Secretary for Family Support under section 417 of the Social
Security Act (as in effect before such effective date); and
(ii) have the powers and duties of the Assistant Secretary
for Family Support under section 416 of the Social Security Act
(as in effect pursuant to the amendment made by section 103(a)(1)
of this Act).
(c) Termination of Entitlement Under AFDC Program.--Effective October 1,
1996, no individual or family shall be entitled to any benefits or services
under any State plan approved under part A or F of title IV of the Social
Security Act (as in effect on September 30, 1995).
TITLE II--SUPPLEMENTAL SECURITY INCOME
SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title an
amendment is expressed in terms of an amendment to or repeal of a section or
other provision, the reference shall be considered to be made to that section
or other provision of the Social Security Act.
Subtitle A--Eligibility Restrictions
SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS FOUND TO HAVE
FRAUDULENTLY MISREPRESENTED RESIDENCE IN ORDER TO OBTAIN BENEFITS
SIMULTANEOUSLY IN 2 OR MORE STATES.
(a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by
section 105(b)(4)(A) of the Contract with America Advancement Act of 1996, is
amended by redesignating paragraph (5) as paragraph (3) and by adding at the
end the following new paragraph:
"(4)(A) No person shall be considered an eligible individual or eligible
spouse for purposes of this title during the 10-year period that begins on
the date the person is convicted in Federal or State court of having made a
fraudulent statement or representation with respect to the place of residence
of the person in order to receive assistance simultaneously from 2 or more
States under programs that are funded under title IV, title XIX, or the Food
Stamp Act of 1977, or benefits in 2 or more States under the supplemental
security income program under this title.
"(B) As soon as practicable after the conviction of a person in a Federal
or State court as described in subparagraph (A), an official of such court
shall notify the Commissioner of such conviction.".
(b) Effective Date.--The amendment made by this section shall take effect
on the date of the enactment of this Act.
SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBATION AND PAROLE
VIOLATORS.
(a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by
section 201(a) of this Act, is amended by adding at the end the following new
paragraph:
"(5) No person shall be considered an eligible individual or eligible
spouse for purposes of this title with respect to any month if during such
month the person is--
"(A) fleeing to avoid prosecution, or custody or confinement after
conviction, under the laws of the place from which the person flees, for
a crime, or an attempt to commit a crime, which is a felony under the
laws of the place from which the person flees, or which, in the case of
the State of New Jersey, is a high misdemeanor under the laws of such
State; or
"(B) violating a condition of probation or parole imposed under
Federal or State law.".
(b) Exchange of Information.--Section 1611(e) (42 U.S.C. 1382(e)), as
amended by section 201(a) of this Act and subsection (a) of this section, is
amended by adding at the end the following new paragraph:
"(6) Notwithstanding any other provision of law (other than section 6103
of the Internal Revenue Code of 1986), the Commissioner shall furnish any
Federal, State, or local law enforcement officer, upon the written request of
the officer, with the current address, Social Security number, and photograph
(if applicable) of any recipient of benefits under this title, if the officer
furnishes the Commissioner with the name of the recipient, and other identi
fying information as reasonably required by the Commissioner to establish the
unique identity of the recipient, and notifies the Commissioner that--
"(A) the recipient--
"(i) is described in subparagraph (A) or (B) of paragraph (5);
and
"(ii) has information that is necessary for the officer to
conduct the officer's official duties; and
"(B) the location or apprehension of the recipient is within the
officer's official duties.".
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 203. TREATMENT OF PRISONERS.
(a) Implementation of Prohibition Against Payment of Benefits to
Prisoners.--
(1) In general.--Section 1611(e)(1) (42 U.S.C. 1382(e)(1)) is amended
by adding at the end the following new subparagraph:
"(I)(i) The Commissioner shall enter into an agreement, with any
interested State or local institution described in clause (i) or (ii) of
section 202(x)(1)(A) the primary purpose of which is to confine individuals
as described in section 202(x)(1)(A), under which--
"(I) the institution shall provide to the Commissioner, on a monthly
basis and in a manner specified by the Commissioner, the names, social
security account numbers, dates of birth, confinement commencement dates,
and, to the extent available to the institution, such other identifying
information concerning the inmates of the institution as the Commissioner
may require for the purpose of carrying out paragraph (1); and
"(II) the Commissioner shall pay to any such institution, with
respect to each inmate of the institution who is eligible for a benefit
under this title for the month preceding the first month throughout which
such inmate is in such institution and becomes ineligible for such
benefit as a result of the application of this subparagraph, $400 if the
institution furnishes the information described in subclause (I) to the
Commissioner within 30 days after the date such individual becomes an
inmate of such institution, or $200 if the institution furnishes such
information after 30 days after such date but within 90 days after such
date.
"(ii)(I) The provisions of section 552a of title 5, United States Code,
shall not apply to any agreement entered into under clause (i) or to
information exchanged pursuant to such agreement.
"(II) The Commissioner is authorized to provide, on a reimbursable basis,
information obtained pursuant to agreements entered into under clause (i) to
any Federal or federally-assisted cash, food, or medical assistance program
for eligibility purposes.
"(iii) Payments to institutions required by clause (i)(II) shall be made
from funds otherwise available for the payment of benefits under this title
and shall be treated as direct spending for purposes of the Balanced Budget
and Emergency Deficit Control Act of 1985.".
(2) Effective date.--The amendment made by this subsection shall
apply to individuals whose period of confinement in an institution
commences on or after the first day of the seventh month beginning after
the month in which this Act is enacted.
(b) Study of Other Potential Improvements in the Collection of
Information Respecting Public Inmates.--
(1) Study.--The Commissioner of Social Security shall conduct a study
of the desirability, feasibility, and cost of--
(A) establishing a system under which Federal, State, and local
courts would furnish to the Commissioner such information respecting
court orders by which individuals are confined in jails, prisons, or
other public penal, correctional, or medical facilities as the
Commissioner may require for the purpose of carrying out section
1611(e)(1) of the Social Security Act; and
(B) requiring that State and local jails, prisons, and other
institutions that enter into agreements with the Commissioner under
section 1611(e)(1)(I) of the Social Security Act furnish the
information required by such agreements to the Commissioner by means
of an electronic or other sophisticated data exchange system.
(2) Report.--Not later than 1 year after the date of the enactment of
this Act, the Commissioner of Social Security shall submit a report on
the results of the study conducted pursuant to this subsection to the
Committee on Finance of the Senate and the Committee on Ways and Means of
the House of Representatives.
(c) Additional Report to Congress.--Not later than October 1, 1998, the
Commissioner of Social Security shall provide to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House of
Representatives a list of the institutions that are and are not providing
information to the Commissioner under section 1611(e)(1)(I) of the Social
Security Act (as added by this section).
SEC. 204. EFFECTIVE DATE OF APPLICATION FOR BENEFITS.
(a) In General.--Subparagraphs (A) and (B) of section 1611(c)(7) (42
U.S.C. 1382(c)(7)) are amended to read as follows:
"(A) the first day of the month following the date such application
is filed, or
"(B) the first day of the month following the date such individual
becomes eligible for such benefits with respect to such application.".
(b) Special Rule Relating to Emergency Advance Payments.--Section
1631(a)(4)(A) (42 U.S.C. 1383(a)(4)(A)) is amended--
(1) by inserting "for the month following the date the application is
filed" after "is presumptively eligible for such benefits"; and
(2) by inserting ", which shall be repaid through proportionate
reductions in such benefits over a period of not more than 6 months"
before the semicolon.
(c) Conforming Amendments.--
(1) Section 1614(b) (42 U.S.C. 1382c(b)) is amended--
(A) by striking "or requests" and inserting ", on the first day
of the month following the date the application is filed, or, in any
case in which either spouse requests"; and
(B) by striking "application or".
(2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is amended by
inserting "following the month" after "beginning with the month".
(d) Effective Date.--
(1) In general.--The amendments made by this section shall apply to
applications for benefits under title XVI of the Social Security Act
filed on or after the date of the enactment of this Act, without regard
to whether regulations have been issued to implement such amendments.
(2) Benefits under title xvi.--For purposes of this subsection, the
term "benefits under title XVI of the Social Security Act" includes
supplementary payments pursuant to an agreement for Federal
administration under section 1616(a) of the Social Security Act, and
payments pursuant to an agreement entered into under section 212(b) of
Public Law 93-66.
Subtitle B--Benefits for Disabled Children
SEC. 211. DEFINITION AND ELIGIBILITY RULES.
(a) Definition of Childhood Disability.--Section 1614(a)(3) (42 U.S.C.
1382c(a)(3)), as amended by section 105(b)(1) of the Contract with America
Advancement Act of 1996, is amended--
(1) in subparagraph (A), by striking "An individual" and inserting
"Except as provided in subparagraph (C), an individual";
(2) in subparagraph (A), by striking "(or, in the case of an
individual under the age of 18, if he suffers from any medically
determinable physical or mental impairment of comparable severity)";
(3) by redesignating subparagraphs (C) through (I) as subparagraphs
(D) through (J), respectively;
(4) by inserting after subparagraph (B) the following new
subparagraph:
"(C)(i) An individual under the age of 18 shall be considered disabled
for the purposes of this title if that individual has a medically
determinable physical or mental impairment, which results in marked and
severe functional limitations, and which can be expected to result in death
or which has lasted or can be expected to last for a continuous period of not
less than 12 months.
"(ii) Notwithstanding clause (i), no individual under the age of 18 who
engages in substantial gainful activity (determined in accordance with
regulations prescribed pursuant to subparagraph (E)) may be considered to be
disabled."; and
(5) in subparagraph (F), as redesignated by paragraph (3), by
striking "(D)" and inserting "(E)".
(b) Changes to Childhood SSI Regulations.--
(1) Modification to medical criteria for evaluation of mental and
emotional disorders.--The Commissioner of Social Security shall modify
sections 112.00C.2. and 112.02B.2.c.(2) of appendix 1 to subpart P of
part 404 of title 20, Code of Federal Regulations, to eliminate
references to maladaptive behavior in the domain of personal/behavorial
function.
(2) Discontinuance of individualized functional assessment.--The
Commissioner of Social Security shall discontinue the individualized
functional assessment for children set forth in sections 416.924d and
416.924e of title 20, Code of Federal Regulations.
(c) Medical Improvement Review Standard as it Applies to Individuals
Under the Age of 18.--Section 1614(a)(4) (42 U.S.C. 1382(a)(4)) is amended--
(1) by redesignating subclauses (I) and (II) of clauses (i) and (ii)
of subparagraph (B) as items (aa) and (bb), respectively;
(2) by redesignating clauses (i) and (ii) of subparagraphs (A) and
(B) as subclauses (I) and (II), respectively;
(3) by redesignating subparagraphs (A) through (C) as clauses (i)
through (iii), respectively;
(4) by inserting before clause (i) (as redesignated by paragraph (3))
the following new subparagraph:
"(A) in the case of an individual who is age 18 or older--";
(5) by inserting after and below subparagraph (A)(iii) (as so
redesignated) the following new subparagraph:
"(B) in the case of an individual who is under the age of 18--
"(i) substantial evidence which demonstrates that there has been
medical improvement in the individual's impairment or combination of
impairments, and that such impairment or combination of impairments
no longer results in marked and severe functional limitations; or
"(ii) substantial evidence which demonstrates that, as determined
on the basis of new or improved diagnostic techniques or evaluations,
the individual's impairment or combination of impairments, is not as
disabling as it was considered to be at the time of the most recent
prior decision that the individual was under a disability or
continued to be under a disability, and such impairment or
combination of impairments does not result in marked and severe
functional limitations; or";
(6) by redesignating subparagraph (D) as subparagraph (C) and by
inserting in such subparagraph "in the case of any individual," before
"substantial evidence"; and
(7) in the first sentence following subparagraph (C) (as redesignated
by paragraph (6)), by--
(A) inserting "(i)" before "to restore"; and
(B) inserting ", or (ii) in the case of an individual under the
age of 18, to eliminate or improve the individual's impairment or
combination of impairments so that it no longer results in marked and
severe functional limitations" immediately before the period.
(d) Effective Dates, Etc.--
(1) Effective dates.--
(A) Subsections (a) and (b).--
(i) In general.--The provisions of, and amendments made by,
subsections (a) and (b) of this section shall apply to any
individual who applies for, or whose claim is finally adjudicated
with respect to, benefits under title XVI of the Social Security
Act on or after the date of the enactment of this Act, without
regard to whether regulations have been issued to implement such
provisions and amendments.
(ii) Determination of final adjudication.--For purposes of
clause (i), no individual's claim with respect to such benefits
may be considered to be finally adjudicated before such date of
enactment if, on or after such date, there is pending a request
for either administrative or judicial review with respect to such
claim that has been denied in whole, or there is pending, with
respect to such claim, readjudication by the Commissioner of
Social Security pursuant to relief in a class action or
implementation by the Commissioner of a court remand order.
(B) Subsection (c).--The amendments made by subsection (c) of
this section shall apply with respect to benefits under title XVI of
the Social Security Act for months beginning on or after the date of
the enactment of this Act, without regard to whether regulations have
been issued to implement such amendments.
(2) Application to current recipients.--
(A) Eligibility redeterminations.--During the period beginning on
the date of the enactment of this Act and ending on the date which is
1 year after such date of enactment, the Commissioner of Social
Security shall redetermine the eligibility of any individual under
age 18 who is eligible for supplemental security income benefits by
reason of disability under title XVI of the Social Security Act as of
the date of the enactment of this Act and whose eligibility for such
benefits may terminate by reason of the provisions of, or amendments
made by, subsections (a) and (b) of this section. With respect to any
redetermination under this subparagraph--
(i) section 1614(a)(4) of the Social Security Act (42 U.S.C.
1382c(a)(4)) shall not apply;
(ii) the Commissioner of Social Security shall apply the
eligibility criteria for new applicants for benefits under title
XVI of such Act;
(iii) the Commissioner shall give such redetermination
priority over all continuing eligibility reviews and other
reviews under such title; and
(iv) such redetermination shall be counted as a review or
redetermination otherwise required to be made under section 208
of the Social Security Independence and Program Improvements Act
of 1994 or any other provision of title XVI of the Social
Security Act.
(B) Grandfather provision.--The provisions of, and amendments
made by, subsections (a) and (b) of this section, and the
redetermination under subparagraph (A), shall only apply with respect
to the benefits of an individual described in subparagraph (A) for
months beginning on or after the later of July 1, 1997, or the date
of the redetermination with respect to such individual.
(C) Notice.--Not later than January 1, 1997, the Commissioner of
Social Security shall notify an individual described in subparagraph
(A) of the provisions of this paragraph.
(3) Report.--The Commissioner of Social Security shall report to the
Congress regarding the progress made in implementing the provisions of,
and amendments made by, this section on child disability evaluations not
later than 180 days after the date of the enactment of this Act.
(4) Regulations.--Notwithstanding any other provision of law, the
Commissioner of Social Security shall submit for review to the committees
of jurisdiction in the Congress any final regulation pertaining to the
eligibility of individuals under age 18 for benefits under title XVI of
the Social Security Act at least 45 days before the effective date of
such regulation. The submission under this paragraph shall include
supporting documentation providing a cost analysis, workload impact, and
projections as to how the regulation will effect the future number of
recipients under such title.
(5) Cap adjustment for ssi administrative work required by welfare
reform.--
(A) Authorization.--For the additional costs of continuing
disability reviews and redeterminations under title XVI of the Social
Security Act, there is hereby authorized to be appropriated to the
Social Security Administration, in addition to amounts authorized
under section 201(g)(1)(A) of the Social Security Act, $150,000,000
in fiscal year 1997 and $100,000,000 in fiscal year 1998.
(B) Cap adjustment.--Section 251(b)(2)(H) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended by section
103(b) of the Contract with America Advancement Act of 1996, is
amended--
(i) in clause (i)--
(I) in subclause (II) by--
(aa) striking "$25,000,000" and inserting
"$175,000,000"; and
(bb) striking "$160,000,000" and inserting
"$310,000,000"; and
(II) in subclause (III) by--
(aa) striking "$145,000,000" and inserting
"$245,000,000"; and
(bb) striking "$370,000,000" and inserting
"$470,000,000"; and
(ii) by amending clause (ii)(I) to read as follows:
"(I) the term 'continuing disability reviews' means reviews
or redeterminations as defined under section 201(g)(1)(A) of the
Social Security Act and reviews and redeterminations authorized
under section 211 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996;".
(C) Adjustments.--Section 606(e)(1)(B) of the Congressional
Budget Act of 1974 is amended by adding at the end the following new
sentences: "If the adjustments referred to in the preceding sentence
are made for an appropriations measure that is not enacted into law,
then the Chairman of the Committee on the Budget of the House of
Representatives shall, as soon as practicable, reverse those
adjustments. The Chairman of the Committee on the Budget of the House
of Representatives shall submit any adjustments made under this
subparagraph to the House of Representatives and have such
adjustments published in the Congressional Record.".
(D) Conforming amendment.--Section 103(d)(1) of the Contract with
America Advancement Act of 1996 (42 U.S.C. 401 note) is amended by
striking "medicaid programs." and inserting "medicaid programs,
except that the amounts appropriated pursuant to the authorization
and discretionary spending allowance provisions in section
211(d)(2)(5) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 shall be used only for continuing
disability reviews and redeterminations under title XVI of the Social
Security Act.".
(6) Benefits under title xvi.--For purposes of this subsection, the
term "benefits under title XVI of the Social Security Act" includes
supplementary payments pursuant to an agreement for Federal
administration under section 1616(a) of the Social Security Act, and
payments pursuant to an agreement entered into under section 212(b) of
Public Law 93-66.
SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINUING DISABILITY REVIEWS.
(a) Continuing Disability Reviews Relating to Certain Children.--Section
1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as redesignated by section
211(a)(3) of this Act, is amended--
(1) by inserting "(i)" after "(H)"; and
(2) by adding at the end the following new clause:
"(ii)(I) Not less frequently than once every 3 years, the Commissioner
shall review in accordance with paragraph (4) the continued eligibility for
benefits under this title of each individual who has not attained 18 years of
age and is eligible for such benefits by reason of an impairment (or
combination of impairments) which is likely to improve (or, at the option of
the Commissioner, which is unlikely to improve).
"(II) A representative payee of a recipient whose case is reviewed under
this clause shall present, at the time of review, evidence demonstrating that
the recipient is, and has been, receiving treatment, to the extent considered
medically necessary and available, of the condition which was the basis for
providing benefits under this title.
"(III) If the representative payee refuses to comply without good cause
with the requirements of subclause (II), the Commissioner of Social Security
shall, if the Commissioner determines it is in the best interest of the
individual, promptly suspend payment of benefits to the representative payee,
and provide for payment of benefits to an alternative representative payee of
the individual or, if the interest of the individual under this title would
be served thereby, to the individual.
"(IV) Subclause (II) shall not apply to the representative payee of any
individual with respect to whom the Commissioner determines such application
would be inappropriate or unnecessary. In making such determination, the
Commissioner shall take into consideration the nature of the individual's
impairment (or combination of impairments). Section 1631(c) shall not apply
to a finding by the Commissioner that the requirements of subclause (II)
should not apply to an individual's representative payee.".
(b) Disability Eligibility Redeterminations Required for SSI Recipients
Who Attain 18 Years of Age.--
(1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as
amended by subsection (a) of this section, is amended by adding at the
end the following new clause:
"(iii) If an individual is eligible for benefits under this title by
reason of disability for the month preceding the month in which the
individual attains the age of 18 years, the Commissioner shall redetermine
such eligibility--
"(I) during the 1-year period beginning on the individual's 18th
birthday; and
"(II) by applying the criteria used in determining the initial
eligibility for applicants who are age 18 or older.
With respect to a redetermination under this clause, paragraph (4) shall not
apply and such redetermination shall be considered a substitute for a review
or redetermination otherwise required under any other provision of this
subparagraph during that 1-year period.".
(2) Conforming repeal.--Section 207 of the Social Security
Independence and Program Improvements Act of 1994 (42 U.S.C. 1382 note;
108 Stat. 1516) is hereby repealed.
(c) Continuing Disability Review Required for Low Birth Weight Babies.--
Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as amended by subsections
(a) and (b) of this section, is amended by adding at the end the following
new clause:
"(iv)(I) Not later than 12 months after the birth of an individual, the
Commissioner shall review in accordance with paragraph (4) the continuing
eligibility for benefits under this title by reason of disability of such
individual whose low birth weight is a contributing factor material to the
Commissioner's determination that the individual is disabled.
"(II) A review under subclause (I) shall be considered a substitute for a
review otherwise required under any other provision of this subparagraph
during that 12-month period.
"(III) A representative payee of a recipient whose case is reviewed under
this clause shall present, at the time of review, evidence demonstrating that
the recipient is, and has been, receiving treatment, to the extent considered
medically necessary and available, of the condition which was the basis for
providing benefits under this title.
"(IV) If the representative payee refuses to comply without good cause
with the requirements of subclause (III), the Commissioner of Social Security
shall, if the Commissioner determines it is in the best interest of the
individual, promptly suspend payment of benefits to the representative payee,
and provide for payment of benefits to an alternative representative payee of
the individual or, if the interest of the individual under this title would
be served thereby, to the individual.
"(V) Subclause (III) shall not apply to the representative payee of any
individual with respect to whom the Commissioner determines such application
would be inappropriate or unnecessary. In making such determination, the
Commissioner shall take into consideration the nature of the individual's
impairment (or combination of impairments). Section 1631(c) shall not apply
to a finding by the Commissioner that the requirements of subclause (III)
should not apply to an individual's representative payee.".
(d) Effective Date.--The amendments made by this section shall apply to
benefits for months beginning on or after the date of the enactment of this
Act, without regard to whether regulations have been issued to implement such
amendments.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) Requirement To Establish Account.--Section 1631(a)(2) (42 U.S.C.
1383(a)(2)) is amended--
(1) by redesignating subparagraphs (F) and (G) as subparagraphs (G)
and (H), respectively; and
(2) by inserting after subparagraph (E) the following new
subparagraph:
"(F)(i)(I) Each representative payee of an eligible individual under the
age of 18 who is eligible for the payment of benefits described in subclause
(II) shall establish on behalf of such individual an account in a financial
institution into which such benefits shall be paid, and shall thereafter
maintain such account for use in accordance with clause (ii).
"(II) Benefits described in this subclause are past-due monthly benefits
under this title (which, for purposes of this subclause, include State
supplementary payments made by the Commissioner pursuant to an agreement
under section 1616 or section 212(b) of Public Law 93-66) in an amount (after
any withholding by the Commissioner for reimbursement to a State for interim
assistance under subsection (g)) that exceeds the product of--
"(aa) 6, and
"(bb) the maximum monthly benefit payable under this title to an
eligible individual.
"(ii)(I) A representative payee shall use funds in the account
established under clause (i) to pay for allowable expenses described in
subclause (II).
"(II) An allowable expense described in this subclause is an expense
for--
"(aa) education or job skills training;
"(bb) personal needs assistance;
"(cc) special equipment;
"(dd) housing modification;
"(ee) medical treatment;
"(ff) therapy or rehabilitation; or
"(gg) any other item or service that the Commissioner determines to
be appropriate;
provided that such expense benefits such individual and, in the case of an
expense described in item (bb), (cc), (dd), (ff), or (gg), is related to the
impairment (or combination of impairments) of such individual.
"(III) The use of funds from an account established under clause (i) in
any manner not authorized by this clause--
"(aa) by a representative payee shall be considered a misapplication
of benefits for all purposes of this paragraph, and any representative
payee who knowingly misapplies benefits from such an account shall be
liable to the Commissioner in an amount equal to the total amount of such
benefits; and
"(bb) by an eligible individual who is his or her own payee shall be
considered a misapplication of benefits for all purposes of this
paragraph and the total amount of such benefits so used shall be
considered to be the uncompensated value of a disposed resource and shall
be subject to the provisions of section 1613(c).
"(IV) This clause shall continue to apply to funds in the account after
the child has reached age 18, regardless of whether benefits are paid
directly to the beneficiary or through a representative payee.
"(iii) The representative payee may deposit into the account established
pursuant to clause (i)--
"(I) past-due benefits payable to the eligible individual in an
amount less than that specified in clause (i)(II), and
"(II) any other funds representing an underpayment under this title
to such individual, provided that the amount of such underpayment is
equal to or exceeds the maximum monthly benefit payable under this title
to an eligible individual.
"(iv) The Commissioner of Social Security shall establish a system for
accountability monitoring whereby such representative payee shall report, at
such time and in such manner as the Commissioner shall require, on activity
respecting funds in the account established pursuant to clause (i).".
(b) Exclusion From Resources.--Section 1613(a) (42 U.S.C. 1382b(a)) is
amended--
(1) by striking "and" at the end of paragraph (10);
(2) by striking the period at the end of paragraph (11) and inserting
"; and"; and
(3) by inserting after paragraph (11) the following new paragraph:
"(12) any account, including accrued interest or other earnings
thereon, established and maintained in accordance with section
1631(a)(2)(F).".
(c) Exclusion From Income.--Section 1612(b) (42 U.S.C. 1382a(b)) is
amended--
(1) by striking "and" at the end of paragraph (19);
(2) by striking the period at the end of paragraph (20) and inserting
"; and"; and
(3) by adding at the end the following new paragraph:
"(21) the interest or other earnings on any account established and
maintained in accordance with section 1631(a)(2)(F).".
(d) Effective Date.--The amendments made by this section shall apply to
payments made after the date of the enactment of this Act.
SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITUTIONALIZED INDIVIDUALS
WHOSE MEDICAL COSTS ARE COVERED BY PRIVATE INSURANCE.
(a) In General.--Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B)) is
amended by inserting "or, in the case of an eligible individual who is a
child under the age of 18, receiving payments (with respect to such
individual) under any health insurance policy issued by a private provider of
such insurance" after "section 1614(f)(2)(B),".
(b) Effective Date.--The amendment made by this section shall apply to
benefits for months beginning 90 or more days after the date of the enactment
of this Act, without regard to whether regulations have been issued to
implement such amendments.
SEC. 215. REGULATIONS.
Within 3 months after the date of the enactment of this Act, the
Commissioner of Social Security shall prescribe such regulations as may be
necessary to implement the amendments made by this subtitle.
Subtitle C--Additional Enforcement Provision
SEC. 221. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLEMENTAL SECURITY INCOME
BENEFITS.
(a) In General.--Section 1631(a) (42 U.S.C. 1383) is amended by adding at
the end the following new paragraph:
"(10)(A) If an individual is eligible for past-due monthly benefits under
this title in an amount that (after any withholding for reimbursement to a
State for interim assistance under subsection (g)) equals or exceeds the
product of--
"(i) 12, and
"(ii) the maximum monthly benefit payable under this title to an
eligible individual (or, if appropriate, to an eligible individual and
eligible spouse),
then the payment of such past-due benefits (after any such reimbursement to a
State) shall be made in installments as provided in subparagraph (B).
"(B)(i) The payment of past-due benefits subject to this subparagraph
shall be made in not to exceed 3 installments that are made at 6-month
intervals.
"(ii) Except as provided in clause (iii), the amount of each of the first
and second installments may not exceed an amount equal to the product of
clauses (i) and (ii) of subparagraph (A).
"(iii) In the case of an individual who has--
"(I) outstanding debt attributable to--
"(aa) food,
"(bb) clothing,
"(cc) shelter, or
"(dd) medically necessary services, supplies or equipment, or
medicine; or
"(II) current expenses or expenses anticipated in the near term
attributable to--
"(aa) medically necessary services, supplies or equipment, or
medicine, or
"(bb) the purchase of a home, and
such debt or expenses are not subject to reimbursement by a public assistance
program, the Secretary under title XVIII, a State plan approved under title
XIX, or any private entity legally liable to provide payment pursuant to an
insurance policy, pre-paid plan, or other arrangement, the limitation
specified in clause (ii) may be exceeded by an amount equal to the total of
such debt and expenses.
"(C) This paragraph shall not apply to any individual who, at the time of
the Commissioner's determination that such individual is eligible for the
payment of past-due monthly benefits under this title--
"(i) is afflicted with a medically determinable impairment that is
expected to result in death within 12 months; or
"(ii) is ineligible for benefits under this title and the
Commissioner determines that such individual is likely to remain
ineligible for the next 12 months.
"(D) For purposes of this paragraph, the term 'benefits under this title'
includes supplementary payments pursuant to an agreement for Federal
administration under section 1616(a), and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93-66.".
(b) Conforming Amendment.--Section 1631(a)(1) (42 U.S.C. 1383(a)(1)) is
amended by inserting "(subject to paragraph (10))" immediately before "in
such installments".
(c) Effective Date.--
(1) In general.--The amendments made by this section are effective
with respect to past-due benefits payable under title XVI of the Social
Security Act after the third month following the month in which this Act
is enacted.
(2) Benefits payable under title xvi.--For purposes of this
subsection, the term "benefits payable under title XVI of the Social
Security Act" includes supplementary payments pursuant to an agreement
for Federal administration under section 1616(a) of the Social Security
Act, and payments pursuant to an agreement entered into under section
212(b) of Public Law 93-66.
SEC. 222. REGULATIONS.
Within 3 months after the date of the enactment of this Act, the
Commissioner of Social Security shall prescribe such regulations as may be
necessary to implement the amendments made by this subtitle.
Subtitle D--Studies Regarding Supplemental Security
Income Program
SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by section 105(b)(3) of
the Contract with America Advancement Act of 1996, is amended by adding at
the end the following new section:
"ANNUAL REPORT ON PROGRAM
"Sec. 1637. (a) Not later than May 30 of each year, the Commissioner of
Social Security shall prepare and deliver a report annually to the President
and the Congress regarding the program under this title, including--
"(1) a comprehensive description of the program;
"(2) historical and current data on allowances and denials, including
number of applications and allowance rates for initial determinations,
reconsideration determinations, administrative law judge hearings,
appeals council reviews, and Federal court decisions;
"(3) historical and current data on characteristics of recipients and
program costs, by recipient group (aged, blind, disabled adults, and
disabled children);
"(4) historical and current data on prior enrollment by recipients in
public benefit programs, including State programs funded under part A of
title IV of the Social Security Act and State general assistance
programs;
"(5) projections of future number of recipients and program costs,
through at least 25 years;
"(6) number of redeterminations and continuing disability reviews,
and the outcomes of such redeterminations and reviews;
"(7) data on the utilization of work incentives;
"(8) detailed information on administrative and other program
operation costs;
"(9) summaries of relevant research undertaken by the Social Security
Administration, or by other researchers;
"(10) State supplementation program operations;
"(11) a historical summary of statutory changes to this title; and
"(12) such other information as the Commissioner deems useful.
"(b) Each member of the Social Security Advisory Board shall be permitted
to provide an individual report, or a joint report if agreed, of views of the
program under this title, to be included in the annual report required under
this section.".
SEC. 232. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1999, the Comptroller General of the United
States shall study and report on--
(1) the impact of the amendments made by, and the provisions of, this
title on the supplemental security income program under title XVI of the
Social Security Act; and
(2) extra expenses incurred by families of children receiving
benefits under such title that are not covered by other Federal, State,
or local programs.
TITLE III--CHILD SUPPORT
SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title an
amendment is expressed in terms of an amendment to or repeal of a section or
other provision, the reference shall be considered to be made to that section
or other provision of the Social Security Act.
Subtitle A--Eligibility for Services; Distribution of Payments
SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT SERVICES.
(a) State Plan Requirements.--Section 454 (42 U.S.C. 654) is amended--
(1) by striking paragraph (4) and inserting the following new
paragraph:
"(4) provide that the State will--
"(A) provide services relating to the establishment of paternity
or the establishment, modification, or enforcement of child support
obligations, as appropriate, under the plan with respect to--
"(i) each child for whom (I) assistance is provided under the
State program funded under part A of this title, (II) benefits or
services for foster care maintenance are provided under the State
program funded under part E of this title, or (III) medical
assistance is provided under the State plan approved under title
XIX, unless, in accordance with paragraph (29), good cause or
other exceptions exist;
"(ii) any other child, if an individual applies for such
services with respect to the child; and
"(B) enforce any support obligation established with respect to--
"(i) a child with respect to whom the State provides services
under the plan; or
"(ii) the custodial parent of such a child;"; and
(2) in paragraph (6)--
(A) by striking "provide that" and inserting "provide that--";
(B) by striking subparagraph (A) and inserting the following new
subparagraph:
"(A) services under the plan shall be made available to residents
of other States on the same terms as to residents of the State
submitting the plan;";
(C) in subparagraph (B), by inserting "on individuals not
receiving assistance under any State program funded under part A"
after "such services shall be imposed";
(D) in each of subparagraphs (B), (C), (D), and (E)--
(i) by indenting the subparagraph in the same manner as, and
aligning the left margin of the subparagraph with the left margin
of, the matter inserted by subparagraph (B) of this paragraph;
and
(ii) by striking the final comma and inserting a semicolon;
and
(E) in subparagraph (E), by indenting each of clauses (i) and
(ii) 2 additional ems.
(b) Continuation of Services for Families Ceasing To Receive Assistance
Under the State Program Funded Under Part A.--Section 454 (42 U.S.C. 654) is
amended--
(1) by striking "and" at the end of paragraph (23);
(2) by striking the period at the end of paragraph (24) and inserting
"; and"; and
(3) by adding after paragraph (24) the following new paragraph:
"(25) provide that if a family with respect to which services are
provided under the plan ceases to receive assistance under the State
program funded under part A, the State shall provide appropriate notice
to the family and continue to provide such services, subject to the same
conditions and on the same basis as in the case of other individuals to
whom services are furnished under the plan, except that an application or
other request to continue services shall not be required of such a family
and paragraph (6)(B) shall not apply to the family.".
(c) Conforming Amendments.--
(1) Section 452(b) (42 U.S.C. 652(b)) is amended by striking "454(6)"
and inserting "454(4)".
(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended by
striking "454(6)" each place it appears and inserting "454(4)(A)(ii)".
(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended by
striking "in the case of overdue support which a State has agreed to
collect under section 454(6)" and inserting "in any other case".
(4) Section 466(e) (42 U.S.C. 666(e)) is amended by striking
"paragraph (4) or (6) of section 454" and inserting "section 454(4)".
SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.
(a) In General.--Section 457 (42 U.S.C. 657) is amended to read as
follows:
"SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
"(a) In General.--Subject to subsection (e), an amount collected on
behalf of a family as support by a State pursuant to a plan approved under
this part shall be distributed as follows:
"(1) Families receiving assistance.--In the case of a family
receiving assistance from the State, the State shall--
"(A) pay to the Federal Government the Federal share of the
amount so collected; and
"(B) retain, or distribute to the family, the State share of the
amount so collected.
"(2) Families that formerly received assistance.--In the case of a
family that formerly received assistance from the State:
"(A) Current support payments.--To the extent that the amount so
collected does not exceed the amount required to be paid to the
family for the month in which collected, the State shall distribute
the amount so collected to the family.
"(B) Payments of arrearages.--To the extent that the amount so
collected exceeds the amount required to be paid to the family for
the month in which collected, the State shall distribute the amount
so collected as follows:
"(i) Distribution of arrearages that accrued after the family
ceased to receive assistance.--
"(I) Pre-october 1997.--Except as provided in subclause
(II), the provisions of this section (other than subsection
(b)(1)) as in effect and applied on the day before the date
of the enactment of section 302 of the Personal
Responsibility and Work Opportunity Act Reconciliation of
1996 shall apply with respect to the distribution of support
arrearages that--
"(aa) accrued after the family ceased to receive
assistance, and
"(bb) are collected before October 1, 1997.
"(II) Post-september 1997.--With respect to the amount so
collected on or after October 1, 1997 (or before such date,
at the option of the State)--
"(aa) In general.--The State shall first distribute
the amount so collected (other than any amount described
in clause (iv)) to the family to the extent necessary to
satisfy any support arrearages with respect to the family
that accrued after the family ceased to receive
assistance from the State.
"(bb) Reimbursement of governments for assistance
provided to the family.--After the application of
division (aa) and clause (ii)(II)(aa) with respect to the
amount so collected, the State shall retain the State
share of the amount so collected, and pay to the Federal
Government the Federal share (as defined in subsection
(c)(2)) of the amount so collected, but only to the
extent necessary to reimburse amounts paid to the family
as assistance by the State.
"(cc) Distribution of the remainder to the family.--
To the extent that neither division (aa) nor division
(bb) applies to the amount so collected, the State shall
distribute the amount to the family.
"(ii) Distribution of arrearages that accrued before the
family received assistance.--
"(I) Pre-october 2000.--Except as provided in subclause
(II), the provisions of this section (other than subsection
(b)(1)) as in effect and applied on the day before the date
of the enactment of section 302 of the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996 shall apply with respect to the distribution of support
arrearages that--
"(aa) accrued before the family received assistance,
and
"(bb) are collected before October 1, 2000.
"(II) Post-september 2000.--Unless, based on the report
required by paragraph (4), the Congress determines otherwise,
with respect to the amount so collected on or after October
1, 2000 (or before such date, at the option of the State)--
"(aa) In general.--The State shall first distribute
the amount so collected (other than any amount described
in clause (iv)) to the family to the extent necessary to
satisfy any support arrearages with respect to the family
that accrued before the family received assistance from
the State.
"(bb) Reimbursement of governments for assistance
provided to the family.--After the application of clause
(i)(II)(aa) and division (aa) with respect to the amount
so collected, the State shall retain the State share of
the amount so collected, and pay to the Federal
Government the Federal share (as defined in subsection
(c)(2)) of the amount so collected, but only to the
extent necessary to reimburse amounts paid to the family
as assistance by the State.
"(cc) Distribution of the remainder to the family.--
To the extent that neither division (aa) nor division
(bb) applies to the amount so collected, the State shall
distribute the amount to the family.
"(iii) Distribution of arrearages that accrued while the
family received assistance.--In the case of a family described in
this subparagraph, the provisions of paragraph (1) shall apply
with respect to the distribution of support arrearages that
accrued while the family received assistance.
"(iv) Amounts collected pursuant to section 464.--
Notwithstanding any other provision of this section, any amount
of support collected pursuant to section 464 shall be retained by
the State to the extent past-due support has been assigned to the
State as a condition of receiving assistance from the State, up
to the amount necessary to reimburse the State for amounts paid
to the family as assistance by the State. The State shall pay to
the Federal Government the Federal share of the amounts so
retained. To the extent the amount collected pursuant to section
464 exceeds the amount so retained, the State shall distribute
the excess to the family.
"(v) Ordering rules for distributions.--For purposes of this
subparagraph, unless an earlier effective date is required by
this section, effective October 1, 2000, the State shall treat
any support arrearages collected, except for amounts collected
pursuant to section 464, as accruing in the following order:
"(I) To the period after the family ceased to receive
assistance.
"(II) To the period before the family received
assistance.
"(III) To the period while the family was receiving
assistance.
"(3) Families that never received assistance.--In the case of any
other family, the State shall distribute the amount so collected to the
family.
"(4) Families under certain agreements.--In the case of a family
receiving assistance from an Indian tribe, distribute the amount so
collected pursuant to an agreement entered into pursuant to a State plan
under section 454(33).
"(5) Study and report.--Not later than October 1, 1998, the Secretary
shall report to the Congress the Secretary's findings with respect to--
"(A) whether the distribution of post-assistance arrearages to
families has been effective in moving people off of welfare and
keeping them off of welfare;
"(B) whether early implementation of a pre-assistance arrearage
program by some States has been effective in moving people off of
welfare and keeping them off of welfare;
"(C) what the overall impact has been of the amendments made by
the Personal Responsibility and Work Opportunity Act of 1996 with
respect to child support enforcement in moving people off of welfare
and keeping them off of welfare; and
"(D) based on the information and data the Secretary has
obtained, what changes, if any, should be made in the policies
related to the distribution of child support arrearages.
"(b) Continuation of Assignments.--Any rights to support obligations,
which were assigned to a State as a condition of receiving assistance from
the State under part A and which were in effect on the day before the date of
the enactment of the Personal Responsibility and Work Opportunity Act of
1996, shall remain assigned after such date.
"(c) Definitions.--As used in subsection (a):
"(1) Assistance.--The term 'assistance from the State' means--
"(A) assistance under the State program funded under part A or
under the State plan approved under part A of this title (as in
effect on the day before the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996); and
"(B) foster care maintenance payments under the State plan
approved under part E of this title.
"(2) Federal share.--The term 'Federal share' means that portion of
the amount collected resulting from the application of the Federal
medical assistance percentage in effect for the fiscal year in which the
amount is collected.
"(3) Federal medical assistance percentage.--The term 'Federal
medical assistance percentage' means--
"(A) the Federal medical assistance percentage (as defined in
section 1118), in the case of Puerto Rico, the Virgin Islands, Guam,
and American Samoa; or
"(B) the Federal medical assistance percentage (as defined in
section 1905(b), as in effect on September 30, 1996) in the case of
any other State.
"(4) State share.--The term 'State share' means 100 percent minus the
Federal share.
"(d) Hold Harmless Provision.--If the amounts collected which could be
retained by the State in the fiscal year (to the extent necessary to
reimburse the State for amounts paid to families as assistance by the State)
are less than the State share of the amounts collected in fiscal year 1995
(determined in accordance with section 457 as in effect on the day before the
date of the enactment of the Personal Responsibility and Work Opportunity Act
of 1996), the State share for the fiscal year shall be an amount equal to the
State share in fiscal year 1995.
"(e) Gap Payments Not Subject to Distribution Under This Section.--At
State option, this section shall not apply to any amount collected on behalf
of a family as support by the State (and paid to the family in addition to
the amount of assistance otherwise payable to the family) pursuant to a plan
approved under this part if such amount would have been paid to the family by
the State under section 402(a)(28), as in effect and applied on the day
before the date of the enactment of section 302 of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996. For purposes
of subsection (d), the State share of such amount paid to the family shall be
considered amounts which could be retained by the State if such payments were
reported by the State as part of the State share of amounts collected in
fiscal year 1995.".
(b) Conforming Amendments.--
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by striking
"section 457(b)(4) or (d)(3)" and inserting "section 457".
(2) Section 454 (42 U.S.C. 654) is amended--
(A) in paragraph (11)--
(i) by striking "(11)" and inserting "(11)(A)"; and
(ii) by inserting after the semicolon "and"; and
(B) by redesignating paragraph (12) as subparagraph (B) of
paragraph (11).
(c) Effective Dates.--
(1) In General.--Except as provided in paragraph (2), the amendments
made by this section shall be effective on October 1, 1996, or earlier at
the State's option.
(2) Conforming amendments.--The amendments made by subsection (b)(2)
shall become effective on the date of the enactment of this Act.
SEC. 303. PRIVACY SAFEGUARDS.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as amended by
section 301(b) of this Act, is amended--
(1) by striking "and" at the end of paragraph (24);
(2) by striking the period at the end of paragraph (25) and inserting
"; and"; and
(3) by adding after paragraph (25) the following new paragraph:
"(26) will have in effect safeguards, applicable to all confidential
information handled by the State agency, that are designed to protect the
privacy rights of the parties, including--
"(A) safeguards against unauthorized use or disclosure of
information relating to proceedings or actions to establish
paternity, or to establish or enforce support;
"(B) prohibitions against the release of information on the
whereabouts of 1 party to another party against whom a protective
order with respect to the former party has been entered; and
"(C) prohibitions against the release of information on the
whereabouts of 1 party to another party if the State has reason to
believe that the release of the information may result in physical or
emotional harm to the former party.".
(b) Effective Date.--The amendment made by subsection (a) shall become
effective on October 1, 1997.
SEC. 304. RIGHTS TO NOTIFICATION OF HEARINGS.
(a) In General.--Section 454 (42 U.S.C. 654), as amended by section
302(b)(2) of this Act, is amended by inserting after paragraph (11) the
following new paragraph:
"(12) provide for the establishment of procedures to require the
State to provide individuals who are applying for or receiving services
under the State plan, or who are parties to cases in which services are
being provided under the State plan--
"(A) with notice of all proceedings in which support obligations
might be established or modified; and
"(B) with a copy of any order establishing or modifying a child
support obligation, or (in the case of a petition for modification) a
notice of determination that there should be no change in the amount
of the child support award, within 14 days after issuance of such
order or determination;".
(b) Effective Date.--The amendment made by subsection (a) shall become
effective on October 1, 1997.
Subtitle B--Locate and Case Tracking
SEC. 311. STATE CASE REGISTRY.
Section 454A, as added by section 344(a)(2) of this Act, is amended by
adding at the end the following new subsections:
"(e) State Case Registry.--
"(1) Contents.--The automated system required by this section shall
include a registry (which shall be known as the 'State case registry')
that contains records with respect to--
"(A) each case in which services are being provided by the State
agency under the State plan approved under this part; and
"(B) each support order established or modified in the State on
or after October 1, 1998.
"(2) Linking of local registries.--The State case registry may be
established by linking local case registries of support orders through an
automated information network, subject to this section.
"(3) Use of standardized data elements.--Such records shall use
standardized data elements for both parents (such as names, social
security numbers and other uniform identification numbers, dates of
birth, and case identification numbers), and contain such other
information (such as on case status) as the Secretary may require.
"(4) Payment records.--Each case record in the State case registry
with respect to which services are being provided under the State plan
approved under this part and with respect to which a support order has
been established shall include a record of--
"(A) the amount of monthly (or other periodic) support owed under
the order, and other amounts (including arrearages, interest or late
payment penalties, and fees) due or overdue under the order;
"(B) any amount described in subparagraph (A) that has been
collected;
"(C) the distribution of such collected amounts;
"(D) the birth date of any child for whom the order requires the
provision of support; and
"(E) the amount of any lien imposed with respect to the order
pursuant to section 466(a)(4).
"(5) Updating and monitoring.--The State agency operating the
automated system required by this section shall promptly establish and
update, maintain, and regularly monitor, case records in the State case
registry with respect to which services are being provided under the
State plan approved under this part, on the basis of--
"(A) information on administrative actions and administrative and
judicial proceedings and orders relating to paternity and support;
"(B) information obtained from comparison with Federal, State, or
local sources of information;
"(C) information on support collections and distributions; and
"(D) any other relevant information.
"(f) Information Comparisons and Other Disclosures of Information.--The
State shall use the automated system required by this section to extract
information from (at such times, and in such standardized format or formats,
as may be required by the Secretary), to share and compare information with,
and to receive information from, other data bases and information comparison
services, in order to obtain (or provide) information necessary to enable the
State agency (or the Secretary or other State or Federal agencies) to carry
out this part, subject to section 6103 of the Internal Revenue Code of 1986.
Such information comparison activities shall include the following:
"(1) Federal case registry of child support orders.--Furnishing to
the Federal Case Registry of Child Support Orders established under
section 453(h) (and update as necessary, with information including
notice of expiration of orders) the minimum amount of information on
child support cases recorded in the State case registry that is necessary
to operate the registry (as specified by the Secretary in regulations).
"(2) Federal parent locator service.--Exchanging information with the
Federal Parent Locator Service for the purposes specified in section 453.
"(3) Temporary family assistance and medicaid agencies.--Exchanging
information with State agencies (of the State and of other States)
administering programs funded under part A, programs operated under a
State plan approved under title XIX, and other programs designated by the
Secretary, as necessary to perform State agency responsibilities under
this part and under such programs.
"(4) Intrastate and interstate information comparisons.--Exchanging
information with other agencies of the State, agencies of other States,
and interstate information networks, as necessary and appropriate to
carry out (or assist other States to carry out) the purposes of this
part.".
SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as amended by
sections 301(b) and 303(a) of this Act, is amended--
(1) by striking "and" at the end of paragraph (25);
(2) by striking the period at the end of paragraph (26) and inserting
"; and"; and
(3) by adding after paragraph (26) the following new paragraph:
"(27) provide that, on and after October 1, 1998, the State agency
will--
"(A) operate a State disbursement unit in accordance with section
454B; and
"(B) have sufficient State staff (consisting of State employees)
and (at State option) contractors reporting directly to the State
agency to--
"(i) monitor and enforce support collections through the unit
in cases being enforced by the State pursuant to section 454(4)
(including carrying out the automated data processing
responsibilities described in section 454A(g)); and
"(ii) take the actions described in section 466(c)(1) in
appropriate cases.".
(b) Establishment of State Disbursement Unit.--Part D of title IV (42
U.S.C. 651-669), as amended by section 344(a)(2) of this Act, is amended by
inserting after section 454A the following new section:
"SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
"(a) State Disbursement Unit.--
"(1) In general.--In order for a State to meet the requirements of
this section, the State agency must establish and operate a unit (which
shall be known as the 'State disbursement unit') for the collection and
disbursement of payments under support orders--
"(A) in all cases being enforced by the State pursuant to section
454(4); and
"(B) in all cases not being enforced by the State under this part
in which the support order is initially issued in the State on or
after January 1, 1994, and in which the income of the noncustodial
parent is subject to withholding pursuant to section 466(a)(8)(B).
"(2) Operation.--The State disbursement unit shall be operated--
"(A) directly by the State agency (or 2 or more State agencies
under a regional cooperative agreement), or (to the extent
appropriate) by a contractor responsible directly to the State
agency; and
"(B) except in cases described in paragraph (1)(B), in
coordination with the automated system established by the State
pursuant to section 454A.
"(3) Linking of local disbursement units.--The State disbursement
unit may be established by linking local disbursement units through an
automated information network, subject to this section, if the Secretary
agrees that the system will not cost more nor take more time to establish
or operate than a centralized system. In addition, employers shall be
given 1 location to which income withholding is sent.
"(b) Required Procedures.--The State disbursement unit shall use
automated procedures, electronic processes, and computer-driven technology to
the maximum extent feasible, efficient, and economical, for the collection
and disbursement of support payments, including procedures--
"(1) for receipt of payments from parents, employers, and other
States, and for disbursements to custodial parents and other obligees,
the State agency, and the agencies of other States;
"(2) for accurate identification of payments;
"(3) to ensure prompt disbursement of the custodial parent's share of
any payment; and
"(4) to furnish to any parent, upon request, timely information on
the current status of support payments under an order requiring payments
to be made by or to the parent, except that in cases described in
subsection (a)(1)(B), the State disbursement unit shall not be required
to convert and maintain in automated form records of payments kept
pursuant to section 466(a)(8)(B)(iii) before the effective date of this
section.
"(c) Timing of Disbursements.--
"(1) In general.--Except as provided in paragraph (2), the State
disbursement unit shall distribute all amounts payable under section
457(a) within 2 business days after receipt from the employer or other
source of periodic income, if sufficient information identifying the
payee is provided.
"(2) Permissive retention of arrearages.--The State disbursement unit
may delay the distribution of collections toward arrearages until the
resolution of any timely appeal with respect to such arrearages.
"(d) Business Day Defined.--As used in this section, the term 'business
day' means a day on which State offices are open for regular business.".
(c) Use of Automated System.--Section 454A, as added by section 344(a)(2)
and as amended by section 311 of this Act, is amended by adding at the end
the following new subsection:
"(g) Collection and Distribution of Support Payments.--
"(1) In general.--The State shall use the automated system required
by this section, to the maximum extent feasible, to assist and facilitate
the collection and disbursement of support payments through the State
disbursement unit operated under section 454B, through the performance of
functions, including, at a minimum--
"(A) transmission of orders and notices to employers (and other
debtors) for the withholding of income--
"(i) within 2 business days after receipt of notice of, and
the income source subject to, such withholding from a court,
another State, an employer, the Federal Parent Locator Service,
or another source recognized by the State; and
"(ii) using uniform formats prescribed by the Secretary;
"(B) ongoing monitoring to promptly identify failures to make
timely payment of support; and
"(C) automatic use of enforcement procedures (including
procedures authorized pursuant to section 466(c)) if payments are not
timely made.
"(2) Business day defined.--As used in paragraph (1), the term
'business day' means a day on which State offices are open for regular
business.".
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the amendments
made by this section shall become effective on October 1, 1998.
(2) Limited exception to unit handling payments.--Notwithstanding
section 454B(b)(1) of the Social Security Act, as added by this section,
any State which, as of the date of the enactment of this Act, processes
the receipt of child support payments through local courts may, at the
option of the State, continue to process through September 30, 1999, such
payments through such courts as processed such payments on or before such
date of enactment.
SEC. 313. STATE DIRECTORY OF NEW HIRES.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as amended by
sections 301(b), 303(a), and 312(a) of this Act, is amended--
(1) by striking "and" at the end of paragraph (26);
(2) by striking the period at the end of paragraph (27) and inserting
"; and"; and
(3) by adding after paragraph (27) the following new paragraph:
"(28) provide that, on and after October 1, 1997, the State will
operate a State Directory of New Hires in accordance with section 453A.".
(b) State Directory of New Hires.--Part D of title IV (42 U.S.C. 651-669)
is amended by inserting after section 453 the following new section:
"SEC. 453A. STATE DIRECTORY OF NEW HIRES.
"(a) Establishment.--
"(1) In general.--
"(A) Requirement for States that have no directory.--Except as
provided in subparagraph (B), not later than October 1, 1997, each
State shall establish an automated directory (to be known as the
'State Directory of New Hires') which shall contain information
supplied in accordance with subsection (b) by employers on each newly
hired employee.
"(B) States with new hire reporting law in existence.--A State
which has a new hire reporting law in existence on the date of the
enactment of this section may continue to operate under the State
law, but the State must meet the requirements of subsection (g)(2)
not later than October 1, 1997, and the requirements of this section
(other than subsection (g)(2)) not later than October 1, 1998.
"(2) Definitions.--As used in this section:
"(A) Employee.--The term 'employee'--
"(i) means an individual who is an employee within the
meaning of chapter 24 of the Internal Revenue Code of 1986; and
"(ii) does not include an employee of a Federal or State
agency performing intelligence or counterintelligence functions,
if the head of such agency has determined that reporting pursuant
to paragraph (1) with respect to the employee could endanger the
safety of the employee or compromise an ongoing investigation or
intelligence mission.
"(B) Employer.--
"(i) In general.--The term 'employer' has the meaning given
such term in section 3401(d) of the Internal Revenue Code of 1986
and includes any governmental entity and any labor organization.
"(ii) Labor organization.--The term 'labor organization'
shall have the meaning given such term in section 2(5) of the
National Labor Relations Act, and includes any entity (also known
as a 'hiring hall') which is used by the organization and an
employer to carry out requirements described in section 8(f)(3)
of such Act of an agreement between the organization and the
employer.
"(b) Employer Information.--
"(1) Reporting requirement.--
"(A) In general.--Except as provided in subparagraphs (B) and
(C), each employer shall furnish to the Directory of New Hires of the
State in which a newly hired employee works, a report that contains
the name, address, and social security number of the employee, and
the name and address of, and identifying number assigned under
section 6109 of the Internal Revenue Code of 1986 to, the employer.
"(B) Multistate employers.--An employer that has employees who
are employed in 2 or more States and that transmits reports
magnetically or electronically may comply with subparagraph (A) by
designating 1 State in which such employer has employees to which the
employer will transmit the report described in subparagraph (A), and
transmitting such report to such State. Any employer that transmits
reports pursuant to this subparagraph shall notify the Secretary in
writing as to which State such employer designates for the purpose of
sending reports.
"(C) Federal government employers.--Any department, agency, or
instrumentality of the United States shall comply with subparagraph
(A) by transmitting the report described in subparagraph (A) to the
National Directory of New Hires established pursuant to section 453.
"(2) Timing of report.--Each State may provide the time within which
the report required by paragraph (1) shall be made with respect to an
employee, but such report shall be made--
"(A) not later than 20 days after the date the employer hires the
employee; or
"(B) in the case of an employer transmitting reports magnetically
or electronically, by 2 monthly transmissions (if necessary) not less
than 12 days nor more than 16 days apart.
"(c) Reporting Format and Method.--Each report required by subsection (b)
shall be made on a W-4 form or, at the option of the employer, an equivalent
form, and may be transmitted by 1st class mail, magnetically, or
electronically.
"(d) Civil Money Penalties on Noncomplying Employers.--The State shall
have the option to set a State civil money penalty which shall be less than--
"(1) $25; or
"(2) $500 if, under State law, the failure is the result of a
conspiracy between the employer and the employee to not supply the
required report or to supply a false or incomplete report.
"(e) Entry of Employer Information.--Information shall be entered into
the data base maintained by the State Directory of New Hires within 5
business days of receipt from an employer pursuant to subsection (b).
"(f) Information Comparisons.--
"(1) In general.--Not later than May 1, 1998, an agency designated by
the State shall, directly or by contract, conduct automated comparisons
of the social security numbers reported by employers pursuant to
subsection (b) and the social security numbers appearing in the records
of the State case registry for cases being enforced under the State plan.
"(2) Notice of match.--When an information comparison conducted under
paragraph (1) reveals a match with respect to the social security number
of an individual required to provide support under a support order, the
State Directory of New Hires shall provide the agency administering the
State plan approved under this part of the appropriate State with the
name, address, and social security number of the employee to whom the
social security number is assigned, and the name and address of, and
identifying number assigned under section 6109 of the Internal Revenue
Code of 1986 to, the employer.
"(g) Transmission of Information.--
"(1) Transmission of wage withholding notices to employers.--Within 2
business days after the date information regarding a newly hired employee
is entered into the State Directory of New Hires, the State agency
enforcing the employee's child support obligation shall transmit a notice
to the employer of the employee directing the employer to withhold from
the income of the employee an amount equal to the monthly (or other
periodic) child support obligation (including any past due support
obligation) of the employee, unless the employee's income is not subject
to withholding pursuant to section 466(b)(3).
"(2) Transmissions to the national directory of new hires.--
"(A) New hire information.--Within 3 business days after the date
information regarding a newly hired employee is entered into the
State Directory of New Hires, the State Directory of New Hires shall
furnish the information to the National Directory of New Hires.
"(B) Wage and unemployment compensation information.--The State
Directory of New Hires shall, on a quarterly basis, furnish to the
National Directory of New Hires extracts of the reports required
under section 303(a)(6) to be made to the Secretary of Labor
concerning the wages and unemployment compensation paid to
individuals, by such dates, in such format, and containing such
information as the Secretary of Health and Human Services shall
specify in regulations.
"(3) Business day defined.--As used in this subsection, the term
'business day' means a day on which State offices are open for regular
business.
"(h) Other Uses of New Hire Information.--
"(1) Location of child support obligors.--The agency administering
the State plan approved under this part shall use information received
pursuant to subsection (f)(2) to locate individuals for purposes of
establishing paternity and establishing, modifying, and enforcing child
support obligations, and may disclose such information to any agent of
the agency that is under contract with the agency to carry out such
purposes.
"(2) Verification of eligibility for certain programs.--A State
agency responsible for administering a program specified in section
1137(b) shall have access to information reported by employers pursuant
to subsection (b) of this section for purposes of verifying eligibility
for the program.
"(3) Administration of employment security and workers'
compensation.--State agencies operating employment security and workers'
compensation programs shall have access to information reported by
employers pursuant to subsection (b) for the purposes of administering
such programs.".
(c) Quarterly Wage Reporting.--Section 1137(a)(3) (42 U.S.C. 1320b-
7(a)(3)) is amended--
(1) by inserting "(including State and local governmental entities
and labor organizations (as defined in section 453A(a)(2)(B)(iii))" after
"employers"; and
(2) by inserting ", and except that no report shall be filed with
respect to an employee of a State or local agency performing intelligence
or counterintelligence functions, if the head of such agency has
determined that filing such a report could endanger the safety of the
employee or compromise an ongoing investigation or intelligence mission"
after "paragraph (2)".
(d) Disclosure to Certain Agents.--Section 303(e) (42 U.S.C. 503(e)) is
amended by adding at the end the following:
"(5) A State or local child support enforcement agency may disclose to
any agent of the agency that is under contract with the agency to carry out
the purposes described in paragraph (1)(B) wage information that is disclosed
to an officer or employee of the agency under paragraph (1)(A). Any agent of
a State or local child support agency that receives wage information under
this paragraph shall comply with the safeguards established pursuant to
paragraph (1)(B).".
SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.
(a) Mandatory Income Withholding.--
(1) In general.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is amended
to read as follows:
"(1)(A) Procedures described in subsection (b) for the withholding
from income of amounts payable as support in cases subject to enforcement
under the State plan.
"(B) Procedures under which the income of a person with a support
obligation imposed by a support order issued (or modified) in the State
before October 1, 1996, if not otherwise subject to withholding under
subsection (b), shall become subject to withholding as provided in
subsection (b) if arrearages occur, without the need for a judicial or
administrative hearing.".
(2) Conforming amendments.--
(A) Section 466(b) (42 U.S.C. 666(b)) is amended in the matter
preceding paragraph (1), by striking "subsection (a)(1)" and
inserting "subsection (a)(1)(A)".
(B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended to read as
follows:
"(4)(A) Such withholding must be carried out in full compliance with
all procedural due process requirements of the State, and the State must
send notice to each noncustodial parent to whom paragraph (1) applies--
"(i) that the withholding has commenced; and
"(ii) of the procedures to follow if the noncustodial parent
desires to contest such withholding on the grounds that the
withholding or the amount withheld is improper due to a mistake of
fact.
"(B) The notice under subparagraph (A) of this paragraph shall
include the information provided to the employer under paragraph
(6)(A).".
(C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended by
striking all that follows "administered by" and inserting "the State
through the State disbursement unit established pursuant to section
454B, in accordance with the requirements of section 454B.".
(D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is amended--
(i) in clause (i), by striking "to the appropriate agency"
and all that follows and inserting "to the State disbursement
unit within 7 business days after the date the amount would (but
for this subsection) have been paid or credited to the employee,
for distribution in accordance with this part. The employer shall
withhold funds as directed in the notice, except that when an
employer receives an income withholding order issued by another
State, the employer shall apply the income withholding law of the
state of the obligor's principal place of employment in
determining--
"(I) the employer's fee for processing an income withholding
order;
"(II) the maximum amount permitted to be withheld from the
obligor's income;
"(III) the time periods within which the employer must implement
the income withholding order and forward the child support payment;
"(IV) the priorities for withholding and allocating income
withheld for multiple child support obligees; and
"(V) any withholding terms or conditions not specified in the
order.
An employer who complies with an income withholding notice that is
regular on its face shall not be subject to civil liability to any
individual or agency for conduct in compliance with the notice.";
(ii) in clause (ii), by inserting "be in a standard format
prescribed by the Secretary, and" after "shall"; and
(iii) by adding at the end the following new clause:
"(iii) As used in this subparagraph, the term 'business day' means a
day on which State offices are open for regular business.".
(E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is amended by
striking "any employer" and all that follows and inserting "any
employer who--
"(i) discharges from employment, refuses to employ, or takes
disciplinary action against any noncustodial parent subject to income
withholding required by this subsection because of the existence of
such withholding and the obligations or additional obligations which
it imposes upon the employer; or
"(ii) fails to withhold support from income or to pay such
amounts to the State disbursement unit in accordance with this
subsection.".
(F) Section 466(b) (42 U.S.C. 666(b)) is amended by adding at the
end the following new paragraph:
"(11) Procedures under which the agency administering the State plan
approved under this part may execute a withholding order without advance
notice to the obligor, including issuing the withholding order through
electronic means.".
(b) Definition of Income.--
(1) In general.--Section 466(b)(8) (42 U.S.C. 666(b)(8)) is amended
to read as follows:
"(8) For purposes of subsection (a) and this subsection, the term
'income' means any periodic form of payment due to an individual,
regardless of source, including wages, salaries, commissions, bonuses,
worker's compensation, disability, payments pursuant to a pension or
retirement program, and interest.".
(2) Conforming amendments.--
(A) Subsections (a)(8)(A), (a)(8)(B)(i), (b)(3)(A), (b)(3)(B),
(b)(6)(A)(i), and (b)(6)(C), and (b)(7) of section 466 (42 U.S.C.
666(a)(8)(A), (a)(8)(B)(i), (b)(3)(A), (b)(3)(B), (b)(6)(A)(i), and
(b)(6)(C), and (b)(7)) are each amended by striking "wages" each
place such term appears and inserting "income".
(B) Section 466(b)(1) (42 U.S.C. 666(b)(1)) is amended by
striking "wages (as defined by the State for purposes of this
section)" and inserting "income".
(c) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is repealed.
SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by inserting after paragraph
(11) the following new paragraph:
"(12) Locator information from interstate networks.--Procedures to
ensure that all Federal and State agencies conducting activities under
this part have access to any system used by the State to locate an
individual for purposes relating to motor vehicles or law enforcement.".
SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.
(a) Expanded Authority To Locate Individuals and Assets.--Section 453 (42
U.S.C. 653) is amended--
(1) in subsection (a), by striking all that follows "subsection (c))"
and inserting ", for the purpose of establishing parentage, establishing,
setting the amount of, modifying, or enforcing child support obligations,
or enforcing child custody or visitation orders--
"(1) information on, or facilitating the discovery of, the location
of any individual--
"(A) who is under an obligation to pay child support or provide
child custody or visitation rights;
"(B) against whom such an obligation is sought;
"(C) to whom such an obligation is owed,
including the individual's social security number (or numbers), most
recent address, and the name, address, and employer identification number
of the individual's employer;
"(2) information on the individual's wages (or other income) from,
and benefits of, employment (including rights to or enrollment in group
health care coverage); and
"(3) information on the type, status, location, and amount of any
assets of, or debts owed by or to, any such individual."; and
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by striking "social
security" and all that follows through "absent parent" and inserting
"information described in subsection (a)"; and
(B) in the flush paragraph at the end, by adding the following:
"No information shall be disclosed to any person if the State has
notified the Secretary that the State has reasonable evidence of
domestic violence or child abuse and the disclosure of such
information could be harmful to the custodial parent or the child of
such parent. Information received or transmitted pursuant to this
section shall be subject to the safeguard provisions contained in
section 454(26).".
(b) Authorized Person for Information Regarding Visitation Rights.--
Section 453(c) (42 U.S.C. 653(c)) is amended--
(1) in paragraph (1), by striking "support" and inserting "support or
to seek to enforce orders providing child custody or visitation rights";
and
(2) in paragraph (2), by striking ", or any agent of such court; and"
and inserting "or to issue an order against a resident parent for child
custody or visitation rights, or any agent of such court;".
(c) Reimbursement for Information From Federal Agencies.--Section
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th sentence by inserting
"in an amount which the Secretary determines to be reasonable payment for the
information exchange (which amount shall not include payment for the costs of
obtaining, compiling, or maintaining the information)" before the period.
(d) Reimbursement for Reports by State Agencies.--Section 453 (42 U.S.C.
653) is amended by adding at the end the following new subsection:
"(g) Reimbursement for Reports by State Agencies.--The Secretary may
reimburse Federal and State agencies for the costs incurred by such entities
in furnishing information requested by the Secretary under this section in an
amount which the Secretary determines to be reasonable payment for the
information exchange (which amount shall not include payment for the costs of
obtaining, compiling, or maintaining the information).".
(e) Conforming Amendments.--
(1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 463(f)
(42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), and 663(f)) are
each amended by inserting "Federal" before "Parent" each place such term
appears.
(2) Section 453 (42 U.S.C. 653) is amended in the heading by adding
"federal" before "parent".
(f) New Components.--Section 453 (42 U.S.C. 653), as amended by
subsection (d) of this section, is amended by adding at the end the following
new subsections:
"(h) Federal Case Registry of Child Support Orders.--
"(1) In general.--Not later than October 1, 1998, in order to assist
States in administering programs under State plans approved under this
part and programs funded under part A, and for the other purposes
specified in this section, the Secretary shall establish and maintain in
the Federal Parent Locator Service an automated registry (which shall be
known as the 'Federal Case Registry of Child Support Orders'), which
shall contain abstracts of support orders and other information described
in paragraph (2) with respect to each case in each State case registry
maintained pursuant to section 454A(e), as furnished (and regularly
updated), pursuant to section 454A(f), by State agencies administering
programs under this part.
"(2) Case information.--The information referred to in paragraph (1)
with respect to a case shall be such information as the Secretary may
specify in regulations (including the names, social security numbers or
other uniform identification numbers, and State case identification
numbers) to identify the individuals who owe or are owed support (or with
respect to or on behalf of whom support obligations are sought to be
established), and the State or States which have the case.
"(i) National Directory of New Hires.--
"(1) In general.--In order to assist States in administering programs
under State plans approved under this part and programs funded under part
A, and for the other purposes specified in this section, the Secretary
shall, not later than October 1, 1997, establish and maintain in the
Federal Parent Locator Service an automated directory to be known as the
National Directory of New Hires, which shall contain the information
supplied pursuant to section 453A(g)(2).
"(2) Entry of data.--Information shall be entered into the data base
maintained by the National Directory of New Hires within 2 business days
of receipt pursuant to section 453A(g)(2).
"(3) Administration of federal tax laws.--The Secretary of the
Treasury shall have access to the information in the National Directory
of New Hires for purposes of administering section 32 of the Internal
Revenue Code of 1986, or the advance payment of the earned income tax
credit under section 3507 of such Code, and verifying a claim with
respect to employment in a tax return.
"(4) List of multistate employers.--The Secretary shall maintain
within the National Directory of New Hires a list of multistate employers
that report information regarding newly hired employees pursuant to
section 453A(b)(1)(B), and the State which each such employer has
designated to receive such information.
"(j) Information Comparisons and Other Disclosures.--
"(1) Verification by social security administration.--
"(A) In general.--The Secretary shall transmit information on
individuals and employers maintained under this section to the Social
Security Administration to the extent necessary for verification in
accordance with subparagraph (B).
"(B) Verification by ssa.--The Social Security Administration
shall verify the accuracy of, correct, or supply to the extent
possible, and report to the Secretary, the following information
supplied by the Secretary pursuant to subparagraph (A):
"(i) The name, social security number, and birth date of each
such individual.
"(ii) The employer identification number of each such
employer.
"(2) Information comparisons.--For the purpose of locating
individuals in a paternity establishment case or a case involving the
establishment, modification, or enforcement of a support order, the
Secretary shall--
"(A) compare information in the National Directory of New Hires
against information in the support case abstracts in the Federal Case
Registry of Child Support Orders not less often than every 2 business
days; and
"(B) within 2 business days after such a comparison reveals a
match with respect to an individual, report the information to the
State agency responsible for the case.
"(3) Information comparisons and disclosures of information in all
registries for title iv program purposes.--To the extent and with the
frequency that the Secretary determines to be effective in assisting
States to carry out their responsibilities under programs operated under
this part and programs funded under part A, the Secretary shall--
"(A) compare the information in each component of the Federal
Parent Locator Service maintained under this section against the
information in each other such component (other than the comparison
required by paragraph (2)), and report instances in which such a
comparison reveals a match with respect to an individual to State
agencies operating such programs; and
"(B) disclose information in such registries to such State
agencies.
"(4) Provision of new hire information to the social security
administration.--The National Directory of New Hires shall provide the
Commissioner of Social Security with all information in the National
Directory.
"(5) Research.--The Secretary may provide access to information
reported by employers pursuant to section 453A(b) for research purposes
found by the Secretary to be likely to contribute to achieving the
purposes of part A or this part, but without personal identifiers.
"(k) Fees.--
"(1) For ssa verification.--The Secretary shall reimburse the
Commissioner of Social Security, at a rate negotiated between the
Secretary and the Commissioner, for the costs incurred by the
Commissioner in performing the verification services described in
subsection (j).
"(2) For information from state directories of new hires.--The
Secretary shall reimburse costs incurred by State directories of new
hires in furnishing information as required by subsection (j)(3), at
rates which the Secretary determines to be reasonable (which rates shall
not include payment for the costs of obtaining, compiling, or maintaining
such information).
"(3) For information furnished to state and federal agencies.--A
State or Federal agency that receives information from the Secretary
pursuant to this section shall reimburse the Secretary for costs incurred
by the Secretary in furnishing the information, at rates which the
Secretary determines to be reasonable (which rates shall include payment
for the costs of obtaining, verifying, maintaining, and comparing the
information).
"(l) Restriction on Disclosure and Use.--Information in the Federal
Parent Locator Service, and information resulting from comparisons using such
information, shall not be used or disclosed except as expressly provided in
this section, subject to section 6103 of the Internal Revenue Code of 1986.
"(m) Information Integrity and Security.--The Secretary shall establish
and implement safeguards with respect to the entities established under this
section designed to--
"(1) ensure the accuracy and completeness of information in the
Federal Parent Locator Service; and
"(2) restrict access to confidential information in the Federal
Parent Locator Service to authorized persons, and restrict use of such
information to authorized purposes.
"(n) Federal Government Reporting.--Each department, agency, and
instrumentality of the United States shall on a quarterly basis report to the
Federal Parent Locator Service the name and social security number of each
employee and the wages paid to the employee during the previous quarter,
except that such a report shall not be filed with respect to an employee of a
department, agency, or instrumentality performing intelligence or
counterintelligence functions, if the head of such department, agency, or
instrumentality has determined that filing such a report could endanger the
safety of the employee or compromise an ongoing investigation or intelligence
mission.".
(g) Conforming Amendments.--
(1) To part d of title iv of the social security act.--
(A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as
follows:
"(B) the Federal Parent Locator Service established under section
453;".
(B) Section 454(13) (42 U.S.C.654(13)) is amended by inserting
"and provide that information requests by parents who are residents
of other States be treated with the same priority as requests by
parents who are residents of the State submitting the plan" before
the semicolon.
(2) To federal unemployment tax act.--Section 3304(a)(16) of the
Internal Revenue Code of 1986 is amended--
(A) by striking "Secretary of Health, Education, and Welfare"
each place such term appears and inserting "Secretary of Health and
Human Services";
(B) in subparagraph (B), by striking "such information" and all
that follows and inserting "information furnished under subparagraph
(A) or (B) is used only for the purposes authorized under such
subparagraph;";
(C) by striking "and" at the end of subparagraph (A);
(D) by redesignating subparagraph (B) as subparagraph (C); and
(E) by inserting after subparagraph (A) the following new
subparagraph:
"(B) wage and unemployment compensation information contained in the
records of such agency shall be furnished to the Secretary of Health and
Human Services (in accordance with regulations promulgated by such
Secretary) as necessary for the purposes of the National Directory of New
Hires established under section 453(i) of the Social Security Act, and".
(3) To state grant program under title iii of the social security
act.--Subsection (h) of section 303 (42 U.S.C. 503) is amended to read as
follows:
"(h)(1) The State agency charged with the administration of the State law
shall, on a reimbursable basis--
"(A) disclose quarterly, to the Secretary of Health and Human
Services, wage and claim information, as required pursuant to section
453(i)(1), contained in the records of such agency;
"(B) ensure that information provided pursuant to subparagraph (A)
meets such standards relating to correctness and verification as the
Secretary of Health and Human Services, with the concurrence of the
Secretary of Labor, may find necessary; and
"(C) establish such safeguards as the Secretary of Labor determines
are necessary to insure that information disclosed under subparagraph (A)
is used only for purposes of section 453(i)(1) in carrying out the child
support enforcement program under title IV.
"(2) Whenever the Secretary of Labor, after reasonable notice and
opportunity for hearing to the State agency charged with the administration
of the State law, finds that there is a failure to comply substantially with
the requirements of paragraph (1), the Secretary of Labor shall notify such
State agency that further payments will not be made to the State until the
Secretary of Labor is satisfied that there is no longer any such failure.
Until the Secretary of Labor is so satisfied, the Secretary shall make no
future certification to the Secretary of the Treasury with respect to the
State.
"(3) For purposes of this subsection--
"(A) the term 'wage information' means information regarding wages
paid to an individual, the social security account number of such
individual, and the name, address, State, and the Federal employer
identification number of the employer paying such wages to such
individual; and
"(B) the term 'claim information' means information regarding whether
an individual is receiving, has received, or has made application for,
unemployment compensation, the amount of any such compensation being
received (or to be received by such individual), and the individual's
current (or most recent) home address.".
(4) Disclosure of certain information to agents of child support
enforcement agencies.--
(A) In general.--Paragraph (6) of section 6103(l) of the Internal
Revenue Code of 1986 (relating to disclosure of return information to
Federal, State, and local child support enforcement agencies) is
amended by redesignating subparagraph (B) as subparagraph (C) and by
inserting after subparagraph (A) the following new subparagraph:
"(B) Disclosure to certain agents.--The following information
disclosed to any child support enforcement agency under subparagraph
(A) with respect to any individual with respect to whom child support
obligations are sought to be established or enforced may be disclosed
by such agency to any agent of such agency which is under contract
with such agency to carry out the purposes described in subparagraph
(C):
"(i) The address and social security account number (or
numbers) of such individual.
"(ii) The amount of any reduction under section 6402(c)
(relating to offset of past-due support against overpayments) in
any overpayment otherwise payable to such individual.".
(B) Conforming amendments.--
(i) Paragraph (3) of section 6103(a) of such Code is amended
by striking "(l)(12)" and inserting "paragraph (6) or (12) of
subsection (l)".
(ii) Subparagraph (C) of section 6103(l)(6) of such Code, as
redesignated by subsection (a), is amended to read as follows:
"(C) Restriction on disclosure.--Information may be disclosed
under this paragraph only for purposes of, and to the extent
necessary in, establishing and collecting child support obligations
from, and locating, individuals owing such obligations.".
(iii) The material following subparagraph (F) of section
6103(p)(4) of such Code is amended by striking "subsection
(l)(12)(B)" and inserting "paragraph (6)(A) or (12)(B) of
subsection (l)".
(h) Requirement for Cooperation.--The Secretary of Labor and the
Secretary of Health and Human Services shall work jointly to develop cost-
effective and efficient methods of accessing the information in the various
State directories of new hires and the National Directory of New Hires as
established pursuant to the amendments made by this subtitle. In developing
these methods the Secretaries shall take into account the impact, including
costs, on the States, and shall also consider the need to insure the proper
and authorized use of wage record information.
SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR USE IN CHILD
SUPPORT ENFORCEMENT.
Section 466(a) (42 U.S.C. 666(a)), as amended by section 315 of this Act,
is amended by inserting after paragraph (12) the following new paragraph:
"(13) Recording of social security numbers in certain family
matters.--Procedures requiring that the social security number of--
"(A) any applicant for a professional license, commercial
driver's license, occupational license, or marriage license be
recorded on the application;
"(B) any individual who is subject to a divorce decree, support
order, or paternity determination or acknowledgment be placed in the
records relating to the matter; and
"(C) any individual who has died be placed in the records
relating to the death and be recorded on the death certificate.
For purposes of subparagraph (A), if a State allows the use of a number
other than the social security number, the State shall so advise any
applicants.".
Subtitle C--Streamlining and Uniformity of Procedures
SEC. 321. ADOPTION OF UNIFORM STATE LAWS.
Section 466 (42 U.S.C. 666) is amended by adding at the end the following
new subsection:
"(f) Uniform Interstate Family Support Act.--In order to satisfy section
454(20)(A), on and after January 1, 1998, each State must have in effect the
Uniform Interstate Family Support Act, as approved by the American Bar
Association on February 9, 1993, together with any amendments officially
adopted before January 1, 1998 by the National Conference of Commissioners on
Uniform State Laws.".
SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT ORDERS.
Section 1738B of title 28, United States Code, is amended--
(1) in subsection (a)(2), by striking "subsection (e)" and inserting
"subsections (e), (f), and (i)";
(2) in subsection (b), by inserting after the 2nd undesignated
paragraph the following:
""child's home State' means the State in which a child lived with a
parent or a person acting as parent for at least 6 consecutive months
immediately preceding the time of filing of a petition or comparable pleading
for support and, if a child is less than 6 months old, the State in which the
child lived from birth with any of them. A period of temporary absence of any
of them is counted as part of the 6-month period.";
(3) in subsection (c), by inserting "by a court of a State" before
"is made";
(4) in subsection (c)(1), by inserting "and subsections (e), (f), and
(g)" after "located";
(5) in subsection (d)--
(A) by inserting "individual" before "contestant"; and
(B) by striking "subsection (e)" and inserting "subsections (e)
and (f)";
(6) in subsection (e), by striking "make a modification of a child
support order with respect to a child that is made" and inserting "modify
a child support order issued";
(7) in subsection (e)(1), by inserting "pursuant to subsection (i)"
before the semicolon;
(8) in subsection (e)(2)--
(A) by inserting "individual" before "contestant" each place such
term appears; and
(B) by striking "to that court's making the modification and
assuming" and inserting "with the State of continuing, exclusive
jurisdiction for a court of another State to modify the order and
assume";
(9) by redesignating subsections (f) and (g) as subsections (g) and
(h), respectively;
(10) by inserting after subsection (e) the following new subsection:
"(f) Recognition of Child Support Orders.--If 1 or more child support
orders have been issued with regard to an obligor and a child, a court shall
apply the following rules in determining which order to recognize for
purposes of continuing, exclusive jurisdiction and enforcement:
"(1) If only 1 court has issued a child support order, the order of
that court must be recognized.
"(2) If 2 or more courts have issued child support orders for the
same obligor and child, and only 1 of the courts would have continuing,
exclusive jurisdiction under this section, the order of that court must
be recognized.
"(3) If 2 or more courts have issued child support orders for the
same obligor and child, and more than 1 of the courts would have
continuing, exclusive jurisdiction under this section, an order issued by
a court in the current home State of the child must be recognized, but if
an order has not been issued in the current home State of the child, the
order most recently issued must be recognized.
"(4) If 2 or more courts have issued child support orders for the
same obligor and child, and none of the courts would have continuing,
exclusive jurisdiction under this section, a court may issue a child
support order, which must be recognized.
"(5) The court that has issued an order recognized under this
subsection is the court having continuing, exclusive jurisdiction.";
(11) in subsection (g) (as so redesignated)--
(A) by striking "Prior" and inserting "Modified"; and
(B) by striking "subsection (e)" and inserting "subsections (e)
and (f)";
(12) in subsection (h) (as so redesignated)--
(A) in paragraph (2), by inserting "including the duration of
current payments and other obligations of support" before the comma;
and
(B) in paragraph (3), by inserting "arrears under" after
"enforce"; and
(13) by adding at the end the following new subsection:
"(i) Registration for Modification.--If there is no individual contestant
or child residing in the issuing State, the party or support enforcement
agency seeking to modify, or to modify and enforce, a child support order
issued in another State shall register that order in a State with
jurisdiction over the nonmovant for the purpose of modification.".
SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315 and 317 of
this Act, is amended by inserting after paragraph (13) the following new
paragraph:
"(14) Administrative enforcement in interstate cases.--Procedures
under which--
"(A)(i) the State shall respond within 5 business days to a
request made by another State to enforce a support order; and
"(ii) the term 'business day' means a day on which State offices
are open for regular business;
"(B) the State may, by electronic or other means, transmit to
another State a request for assistance in a case involving the
enforcement of a support order, which request--
"(i) shall include such information as will enable the State
to which the request is transmitted to compare the information
about the case to the information in the data bases of the State;
and
"(ii) shall constitute a certification by the requesting
State--
"(I) of the amount of support under the order the payment
of which is in arrears; and
"(II) that the requesting State has complied with all
procedural due process requirements applicable to the case;
"(C) if the State provides assistance to another State pursuant
to this paragraph with respect to a case, neither State shall
consider the case to be transferred to the caseload of such other
State; and
"(D) the State shall maintain records of--
"(i) the number of such requests for assistance received by
the State;
"(ii) the number of cases for which the State collected
support in response to such a request; and
"(iii) the amount of such collected support.".
SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.
(a) Promulgation.--Section 452(a) (42 U.S.C. 652(a)) is amended--
(1) by striking "and" at the end of paragraph (9);
(2) by striking the period at the end of paragraph (10) (as amended
by section 346(a) of this Act) and inserting "; and"; and
(3) by adding at the end the following new paragraph:
"(11) not later than October 1, 1996, after consulting with the State
directors of programs under this part, promulgate forms to be used by
States in interstate cases for--
"(A) collection of child support through income withholding;
"(B) imposition of liens; and
"(C) administrative subpoenas.".
(b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is amended--
(1) by striking "and" at the end of subparagraph (C);
(2) by inserting "and" at the end of subparagraph (D); and
(3) by adding at the end the following new subparagraph:
"(E) not later than March 1, 1997, in using the forms promulgated
pursuant to section 452(a)(11) for income withholding, imposition of
liens, and issuance of administrative subpoenas in interstate child
support cases;".
SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.
(a) State Law Requirements.--Section 466 (42 U.S.C. 666), as amended by
section 314 of this Act, is amended--
(1) in subsection (a)(2), by striking the first sentence and
inserting the following: "Expedited administrative and judicial
procedures (including the procedures specified in subsection (c)) for
establishing paternity and for establishing, modifying, and enforcing
support obligations."; and
(2) by inserting after subsection (b) the following new subsection:
"(c) Expedited Procedures.--The procedures specified in this subsection
are the following:
"(1) Administrative action by state agency.--Procedures which give
the State agency the authority to take the following actions relating to
establishment of paternity or to establishment, modification, or
enforcement of support orders, without the necessity of obtaining an
order from any other judicial or administrative tribunal, and to
recognize and enforce the authority of State agencies of other States to
take the following actions:
"(A) Genetic testing.--To order genetic testing for the purpose
of paternity establishment as provided in section 466(a)(5).
"(B) Financial or other information.--To subpoena any financial
or other information needed to establish, modify, or enforce a
support order, and to impose penalties for failure to respond to such
a subpoena.
"(C) Response to state agency request.--To require all entities
in the State (including for-profit, nonprofit, and governmental
employers) to provide promptly, in response to a request by the State
agency of that or any other State administering a program under this
part, information on the employment, compensation, and benefits of
any individual employed by such entity as an employee or contractor,
and to sanction failure to respond to any such request.
"(D) Access to information contained in certain records.--To
obtain access, subject to safeguards on privacy and information
security, and subject to the nonliability of entities that afford
such access under this subparagraph, to information contained in the
following records (including automated access, in the case of records
maintained in automated data bases):
"(i) Records of other State and local government agencies,
including--
"(I) vital statistics (including records of marriage,
birth, and divorce);
"(II) State and local tax and revenue records (including
information on residence address, employer, income and
assets);
"(III) records concerning real and titled personal
property;
"(IV) records of occupational and professional licenses,
and records concerning the ownership and control of
corporations, partnerships, and other business entities;
"(V) employment security records;
"(VI) records of agencies administering public assistance
programs;
"(VII) records of the motor vehicle department; and
"(VIII) corrections records.
"(ii) Certain records held by private entities with respect
to individuals who owe or are owed support (or against or with
respect to whom a support obligation is sought), consisting of--
"(I) the names and addresses of such individuals and the
names and addresses of the employers of such individuals, as
appearing in customer records of public utilities and cable
television companies, pursuant to an administrative subpoena
authorized by subparagraph (B); and
"(II) information (including information on assets and
liabilities) on such individuals held by financial
institutions.
"(E) Change in payee.--In cases in which support is subject to an
assignment in order to comply with a requirement imposed pursuant to
part A or section 1912, or to a requirement to pay through the State
disbursement unit established pursuant to section 454B, upon
providing notice to obligor and obligee, to direct the obligor or
other payor to change the payee to the appropriate government entity.
"(F) Income withholding.--To order income withholding in
accordance with subsections (a)(1)(A) and (b) of section 466.
"(G) Securing assets.--In cases in which there is a support
arrearage, to secure assets to satisfy the arrearage by--
"(i) intercepting or seizing periodic or lump-sum payments
from--
"(I) a State or local agency, including unemployment
compensation, workers' compensation, and other benefits; and
"(II) judgments, settlements, and lotteries;
"(ii) attaching and seizing assets of the obligor held in
financial institutions;
"(iii) attaching public and private retirement funds; and
"(iv) imposing liens in accordance with subsection (a)(4)
and, in appropriate cases, to force sale of property and
distribution of proceeds.
"(H) Increase monthly payments.--For the purpose of securing
overdue support, to increase the amount of monthly support payments
to include amounts for arrearages, subject to such conditions or
limitations as the State may provide.
Such procedures shall be subject to due process safeguards, including (as
appropriate) requirements for notice, opportunity to contest the action,
and opportunity for an appeal on the record to an independent
administrative or judicial tribunal.
"(2) Substantive and procedural rules.--The expedited procedures
required under subsection (a)(2) shall include the following rules and
authority, applicable with respect to all proceedings to establish
paternity or to establish, modify, or enforce support orders:
"(A) Locator information; presumptions concerning notice.--
Procedures under which--
"(i) each party to any paternity or child support proceeding
is required (subject to privacy safeguards) to file with the
tribunal and the State case registry upon entry of an order, and
to update as appropriate, information on location and identity of
the party, including Social Security number, residential and
mailing addresses, telephone number, driver's license number, and
name, address, and telephone number of employer; and
"(ii) in any subsequent child support enforcement action
between the parties, upon sufficient showing that diligent effort
has been made to ascertain the location of such a party, the
tribunal may deem State due process requirements for notice and
service of process to be met with respect to the party, upon
delivery of written notice to the most recent residential or
employer address filed with the tribunal pursuant to clause (i).
"(B) Statewide jurisdiction.--Procedures under which--
"(i) the State agency and any administrative or judicial
tribunal with authority to hear child support and paternity cases
exerts statewide jurisdiction over the parties; and
"(ii) in a State in which orders are issued by courts or
administrative tribunals, a case may be transferred between local
jurisdictions in the State without need for any additional filing
by the petitioner, or service of process upon the respondent, to
retain jurisdiction over the parties.
"(3) Coordination with erisa.--Notwithstanding subsection (d) of
section 514 of the Employee Retirement Income Security Act of 1974
(relating to effect on other laws), nothing in this subsection shall be
construed to alter, amend, modify, invalidate, impair, or supersede
subsections (a), (b), and (c) of such section 514 as it applies with
respect to any procedure referred to in paragraph (1) and any expedited
procedure referred to in paragraph (2), except to the extent that such
procedure would be consistent with the requirements of section 206(d)(3)
of such Act (relating to qualified domestic relations orders) or the
requirements of section 609(a) of such Act (relating to qualified medical
child support orders) if the reference in such section 206(d)(3) to a
domestic relations order and the reference in such section 609(a) to a
medical child support order were a reference to a support order referred
to in paragraphs (1) and (2) relating to the same matters,
respectively.".
(b) Automation of State Agency Functions.--Section 454A, as added by
section 344(a)(2) and as amended by sections 311 and 312(c) of this Act, is
amended by adding at the end the following new subsection:
"(h) Expedited Administrative Procedures.--The automated system required
by this section shall be used, to the maximum extent feasible, to implement
the expedited administrative procedures required by section 466(c).".
Subtitle D--Paternity Establishment
SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.
(a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) is
amended to read as follows:
"(5) Procedures concerning paternity establishment.--
"(A) Establishment process available from birth until age 18.--
"(i) Procedures which permit the establishment of the
paternity of a child at any time before the child attains 18
years of age.
"(ii) As of August 16, 1984, clause (i) shall also apply to a
child for whom paternity has not been established or for whom a
paternity action was brought but dismissed because a statute of
limitations of less than 18 years was then in effect in the
State.
"(B) Procedures concerning genetic testing.--
"(i) Genetic testing required in certain contested cases.--
Procedures under which the State is required, in a contested
paternity case (unless otherwise barred by State law) to require
the child and all other parties (other than individuals found
under section 454(29) to have good cause and other exceptions for
refusing to cooperate) to submit to genetic tests upon the
request of any such party, if the request is supported by a sworn
statement by the party--
"(I) alleging paternity, and setting forth facts
establishing a reasonable possibility of the requisite sexual
contact between the parties; or
"(II) denying paternity, and setting forth facts
establishing a reasonable possibility of the nonexistence of
sexual contact between the parties.
"(ii) Other requirements.--Procedures which require the State
agency, in any case in which the agency orders genetic testing--
"(I) to pay costs of such tests, subject to recoupment
(if the State so elects) from the alleged father if paternity
is established; and
"(II) to obtain additional testing in any case if an
original test result is contested, upon request and advance
payment by the contestant.
"(C) Voluntary paternity acknowledgment.--
"(i) Simple civil process.--Procedures for a simple civil
process for voluntarily acknowledging paternity under which the
State must provide that, before a mother and a putative father
can sign an acknowledgment of paternity, the mother and the
putative father must be given notice, orally and in writing, of
the alternatives to, the legal consequences of, and the rights
(including, if 1 parent is a minor, any rights afforded due to
minority status) and responsibilities that arise from, signing
the acknowledgment.
"(ii) Hospital-based program.--Such procedures must include a
hospital-based program for the voluntary acknowledgment of
paternity focusing on the period immediately before or after the
birth of a child.
"(iii) Paternity establishment services.--
"(I) State-offered services.--Such procedures must
require the State agency responsible for maintaining birth
records to offer voluntary paternity establishment services.
"(II) Regulations.--
"(aa) Services offered by hospitals and birth record
agencies.--The Secretary shall prescribe regulations
governing voluntary paternity establishment services
offered by hospitals and birth record agencies.
"(bb) Services offered by other entities.--The
Secretary shall prescribe regulations specifying the
types of other entities that may offer voluntary
paternity establishment services, and governing the
provision of such services, which shall include a
requirement that such an entity must use the same notice
provisions used by, use the same materials used by,
provide the personnel providing such services with the
same training provided by, and evaluate the provision of
such services in the same manner as the provision of such
services is evaluated by, voluntary paternity
establishment programs of hospitals and birth record
agencies.
"(iv) Use of paternity acknowledgment affidavit.--Such
procedures must require the State to develop and use an affidavit
for the voluntary acknowledgment of paternity which includes the
minimum requirements of the affidavit specified by the Secretary
under section 452(a)(7) for the voluntary acknowledgment of
paternity, and to give full faith and credit to such an affidavit
signed in any other State according to its procedures.
"(D) Status of signed paternity acknowledgment.--
"(i) Inclusion in birth records.--Procedures under which the
name of the father shall be included on the record of birth of
the child of unmarried parents only if--
"(I) the father and mother have signed a voluntary
acknowledgment of paternity; or
"(II) a court or an administrative agency of competent
jurisdiction has issued an adjudication of paternity.
Nothing in this clause shall preclude a State agency from
obtaining an admission of paternity from the father for
submission in a judicial or administrative proceeding, or
prohibit the issuance of an order in a judicial or administrative
proceeding which bases a legal finding of paternity on an
admission of paternity by the father and any other additional
showing required by State law.
"(ii) Legal finding of paternity.--Procedures under which a
signed voluntary acknowledgment of paternity is considered a
legal finding of paternity, subject to the right of any signatory
to rescind the acknowledgment within the earlier of--
"(I) 60 days; or
"(II) the date of an administrative or judicial
proceeding relating to the child (including a proceeding to
establish a support order) in which the signatory is a party.
"(iii) Contest.--Procedures under which, after the 60-day
period referred to in clause (ii), a signed voluntary
acknowledgment of paternity may be challenged in court only on
the basis of fraud, duress, or material mistake of fact, with the
burden of proof upon the challenger, and under which the legal
responsibilities (including child support obligations) of any
signatory arising from the acknowledgment may not be suspended
during the challenge, except for good cause shown.
"(E) Bar on acknowledgment ratification proceedings.--Procedures
under which judicial or administrative proceedings are not required
or permitted to ratify an unchallenged acknowledgment of paternity.
"(F) Admissibility of genetic testing results.--Procedures--
"(i) requiring the admission into evidence, for purposes of
establishing paternity, of the results of any genetic test that
is--
"(I) of a type generally acknowledged as reliable by
accreditation bodies designated by the Secretary; and
"(II) performed by a laboratory approved by such an
accreditation body;
"(ii) requiring an objection to genetic testing results to be
made in writing not later than a specified number of days before
any hearing at which the results may be introduced into evidence
(or, at State option, not later than a specified number of days
after receipt of the results); and
"(iii) making the test results admissible as evidence of
paternity without the need for foundation testimony or other
proof of authenticity or accuracy, unless objection is made.
"(G) Presumption of paternity in certain cases.--Procedures which
create a rebuttable or, at the option of the State, conclusive
presumption of paternity upon genetic testing results indicating a
threshold probability that the alleged father is the father of the
child.
"(H) Default orders.--Procedures requiring a default order to be
entered in a paternity case upon a showing of service of process on
the defendant and any additional showing required by State law.
"(I) No right to jury trial.--Procedures providing that the
parties to an action to establish paternity are not entitled to a
trial by jury.
"(J) Temporary support order based on probable paternity in
contested cases.--Procedures which require that a temporary order be
issued, upon motion by a party, requiring the provision of child
support pending an administrative or judicial determination of
parentage, if there is clear and convincing evidence of paternity (on
the basis of genetic tests or other evidence).
"(K) Proof of certain support and paternity establishment
costs.--Procedures under which bills for pregnancy, childbirth, and
genetic testing are admissible as evidence without requiring third-
party foundation testimony, and shall constitute prima facie evidence
of amounts incurred for such services or for testing on behalf of the
child.
"(L) Standing of putative fathers.--Procedures ensuring that the
putative father has a reasonable opportunity to initiate a paternity
action.
"(M) Filing of acknowledgments and adjudications in state
registry of birth records.--Procedures under which voluntary
acknowledgments and adjudications of paternity by judicial or
administrative processes are filed with the State registry of birth
records for comparison with information in the State case registry.".
(b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) (42
U.S.C. 652(a)(7)) is amended by inserting ", and specify the minimum
requirements of an affidavit to be used for the voluntary acknowledgment of
paternity which shall include the Social Security number of each parent and,
after consultation with the States, other common elements as determined by
such designee" before the semicolon.
(c) Conforming Amendment.--Section 468 (42 U.S.C. 668) is amended by
striking "a simple civil process for voluntarily acknowledging paternity
and".
SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.
Section 454(23) (42 U.S.C. 654(23)) is amended by inserting "and will
publicize the availability and encourage the use of procedures for voluntary
establishment of paternity and child support by means the State deems
appropriate" before the semicolon.
SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF PART A ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections 301(b), 303(a),
312(a), and 313(a) of this Act, is amended--
(1) by striking "and" at the end of paragraph (27);
(2) by striking the period at the end of paragraph (28) and inserting
"; and"; and
(3) by inserting after paragraph (28) the following new paragraph:
"(29) provide that the State agency responsible for administering the
State plan--
"(A) shall make the determination (and redetermination at
appropriate intervals) as to whether an individual who has applied
for or is receiving assistance under the State program funded under
part A of this title or the State program under title XIX is
cooperating in good faith with the State in establishing the
paternity of, or in establishing, modifying, or enforcing a support
order for, any child of the individual by providing the State agency
with the name of, and such other information as the State agency may
require with respect to, the noncustodial parent of the child,
subject to good cause and other exceptions which--
"(i) shall be defined, taking into account the best interests
of the child, and
"(ii) shall be applied in each case,
by, at the option of the State, the State agency administering the
State program under part A, this part, or title XIX;
"(B) shall require the individual to supply additional necessary
information and appear at interviews, hearings, and legal
proceedings;
"(C) shall require the individual and the child to submit to
genetic tests pursuant to judicial or administrative order;
"(D) may request that the individual sign a voluntary
acknowledgment of paternity, after notice of the rights and
consequences of such an acknowledgment, but may not require the
individual to sign an acknowledgment or otherwise relinquish the
right to genetic tests as a condition of cooperation and eligibility
for assistance under the State program funded under part A, or the
State program under title XIX; and
"(E) shall promptly notify the individual, the State agency
administering the State program funded under part A, and the State
agency administering the State program under title XIX, of each such
determination, and if noncooperation is determined, the basis
therefor.".
Subtitle E--Program Administration and Funding
SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.
(a) Development of New System.--The Secretary of Health and Human
Services, in consultation with State directors of programs under part D of
title IV of the Social Security Act, shall develop a new incentive system to
replace, in a revenue neutral manner, the system under section 458 of such
Act. The new system shall provide additional payments to any State based on
such State's performance under such a program. Not later than March 1, 1997,
the Secretary shall report on the new system to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of the
Senate.
(b) Conforming Amendments to Present System.--Section 458 (42 U.S.C. 658)
is amended--
(1) in subsection (a), by striking "aid to families with dependent
children under a State plan approved under part A of this title" and
inserting "assistance under a program funded under part A";
(2) in subsection (b)(1)(A), by striking "section 402(a)(26)" and
inserting "section 408(a)(4)";
(3) in subsections (b) and (c)--
(A) by striking "AFDC collections" each place it appears and
inserting "title IV-A collections", and
(B) by striking "non-AFDC collections" each place it appears and
inserting "non-title IV-A collections"; and
(4) in subsection (c), by striking "combined AFDC/non-AFDC
administrative costs" both places it appears and inserting "combined
title IV-A/non-title IV-A administrative costs".
(c) Calculation of Paternity Establishment Percentage.--
(1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is amended by
striking "75" and inserting "90".
(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended--
(A) by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F), respectively, and by inserting after
subparagraph (A) the following new subparagraph:
"(B) for a State with a paternity establishment percentage of not
less than 75 percent but less than 90 percent for such fiscal year, the
paternity establishment percentage of the State for the immediately
preceding fiscal year plus 2 percentage points;"; and
(B) by adding at the end the following new flush sentence:
"In determining compliance under this section, a State may use as its
paternity establishment percentage either the State's IV-D paternity
establishment percentage (as defined in paragraph (2)(A)) or the State's
statewide paternity establishment percentage (as defined in paragraph
(2)(B)).".
(3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i)--
(I) by striking "paternity establishment percentage" and
inserting "IV-D paternity establishment percentage"; and
(II) by striking "(or all States, as the case may be)";
and
(ii) by striking "and" at the end; and
(B) by redesignating subparagraph (B) as subparagraph (C) and by
inserting after subparagraph (A) the following new subparagraph:
"(B) the term 'statewide paternity establishment percentage' means,
with respect to a State for a fiscal year, the ratio (expressed as a
percentage) that the total number of minor children--
"(i) who have been born out of wedlock, and
"(ii) the paternity of whom has been established or acknowledged
during the fiscal year,
bears to the total number of children born out of wedlock during the
preceding fiscal year; and".
(4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
(A) by striking subparagraph (A) and redesignating subparagraphs
(B) and (C) as subparagraphs (A) and (B), respectively; and
(B) in subparagraph (A) (as so redesignated), by striking "the
percentage of children born out-of-wedlock in a State" and inserting
"the percentage of children in a State who are born out of wedlock or
for whom support has not been established".
(d) Effective Dates.--
(1) Incentive adjustments.--
(A) In general.--The system developed under subsection (a) and
the amendments made by subsection (b) shall become effective on
October 1, 1999, except to the extent provided in subparagraph (B).
(B) Application of section 458.--Section 458 of the Social
Security Act, as in effect on the day before the date of the
enactment of this section, shall be effective for purposes of
incentive payments to States for fiscal years before fiscal year
2000.
(2) Penalty reductions.--The amendments made by subsection (c) shall
become effective with respect to calendar quarters beginning on or after
the date of the enactment of this Act.
SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) State Agency Activities.--Section 454 (42 U.S.C. 654) is amended--
(1) in paragraph (14), by striking "(14)" and inserting "(14)(A)";
(2) by redesignating paragraph (15) as subparagraph (B) of paragraph
(14); and
(3) by inserting after paragraph (14) the following new paragraph:
"(15) provide for--
"(A) a process for annual reviews of and reports to the Secretary
on the State program operated under the State plan approved under
this part, including such information as may be necessary to measure
State compliance with Federal requirements for expedited procedures,
using such standards and procedures as are required by the Secretary,
under which the State agency will determine the extent to which the
program is operated in compliance with this part; and
"(B) a process of extracting from the automated data processing
system required by paragraph (16) and transmitting to the Secretary
data and calculations concerning the levels of accomplishment (and
rates of improvement) with respect to applicable performance
indicators (including paternity establishment percentages) to the
extent necessary for purposes of sections 452(g) and 458;".
(b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 652(a)(4)) is
amended to read as follows:
"(4)(A) review data and calculations transmitted by State agencies
pursuant to section 454(15)(B) on State program accomplishments with
respect to performance indicators for purposes of subsection (g) of this
section and section 458;
"(B) review annual reports submitted pursuant to section 454(15)(A)
and, as appropriate, provide to the State comments, recommendations for
additional or alternative corrective actions, and technical assistance;
and
"(C) conduct audits, in accordance with the Government auditing
standards of the Comptroller General of the United States--
"(i) at least once every 3 years (or more frequently, in the case
of a State which fails to meet the requirements of this part
concerning performance standards and reliability of program data) to
assess the completeness, reliability, and security of the data and
the accuracy of the reporting systems used in calculating performance
indicators under subsection (g) of this section and section 458;
"(ii) of the adequacy of financial management of the State
program operated under the State plan approved under this part,
including assessments of--
"(I) whether Federal and other funds made available to carry
out the State program are being appropriately expended, and are
properly and fully accounted for; and
"(II) whether collections and disbursements of support
payments are carried out correctly and are fully accounted for;
and
"(iii) for such other purposes as the Secretary may find
necessary;".
(c) Effective Date.--The amendments made by this section shall be
effective with respect to calendar quarters beginning 12 months or more after
the date of the enactment of this Act.
SEC. 343. REQUIRED REPORTING PROCEDURES.
(a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is amended by
inserting ", and establish procedures to be followed by States for collecting
and reporting information required to be provided under this part, and
establish uniform definitions (including those necessary to enable the
measurement of State compliance with the requirements of this part relating
to expedited processes) to be applied in following such procedures" before
the semicolon.
(b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as amended by
sections 301(b), 303(a), 312(a), 313(a), and 333 of this Act, is amended--
(1) by striking "and" at the end of paragraph (28);
(2) by striking the period at the end of paragraph (29) and inserting
"; and"; and
(3) by adding after paragraph (29) the following new paragraph:
"(30) provide that the State shall use the definitions established
under section 452(a)(5) in collecting and reporting information as
required under this part.".
SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) Revised Requirements.--
(1) In general.--Section 454(16) (42 U.S.C. 654(16)) is amended--
(A) by striking ", at the option of the State,";
(B) by inserting "and operation by the State agency" after "for
the establishment";
(C) by inserting "meeting the requirements of section 454A" after
"information retrieval system";
(D) by striking "in the State and localities thereof, so as (A)"
and inserting "so as";
(E) by striking "(i)"; and
(F) by striking "(including" and all that follows and inserting a
semicolon.
(2) Automated data processing.--Part D of title IV (42 U.S.C. 651-
669) is amended by inserting after section 454 the following new section:
"SEC. 454A. AUTOMATED DATA PROCESSING.
"(a) In General.--In order for a State to meet the requirements of this
section, the State agency administering the State program under this part
shall have in operation a single statewide automated data processing and
information retrieval system which has the capability to perform the tasks
specified in this section with the frequency and in the manner required by or
under this part.
"(b) Program Management.--The automated system required by this section
shall perform such functions as the Secretary may specify relating to
management of the State program under this part, including--
"(1) controlling and accounting for use of Federal, State, and local
funds in carrying out the program; and
"(2) maintaining the data necessary to meet Federal reporting
requirements under this part on a timely basis.
"(c) Calculation of Performance Indicators.--In order to enable the
Secretary to determine the incentive payments and penalty adjustments
required by sections 452(g) and 458, the State agency shall--
"(1) use the automated system--
"(A) to maintain the requisite data on State performance with
respect to paternity establishment and child support enforcement in
the State; and
"(B) to calculate the paternity establishment percentage for the
State for each fiscal year; and
"(2) have in place systems controls to ensure the completeness and
reliability of, and ready access to, the data described in paragraph
(1)(A), and the accuracy of the calculations described in paragraph
(1)(B).
"(d) Information Integrity and Security.--The State agency shall have in
effect safeguards on the integrity, accuracy, and completeness of, access to,
and use of data in the automated system required by this section, which shall
include the following (in addition to such other safeguards as the Secretary
may specify in regulations):
"(1) Policies restricting access.--Written policies concerning access
to data by State agency personnel, and sharing of data with other
persons, which--
"(A) permit access to and use of data only to the extent
necessary to carry out the State program under this part; and
"(B) specify the data which may be used for particular program
purposes, and the personnel permitted access to such data.
"(2) Systems controls.--Systems controls (such as passwords or
blocking of fields) to ensure strict adherence to the policies described
in paragraph (1).
"(3) Monitoring of access.--Routine monitoring of access to and use
of the automated system, through methods such as audit trails and
feedback mechanisms, to guard against and promptly identify unauthorized
access or use.
"(4) Training and information.--Procedures to ensure that all
personnel (including State and local agency staff and contractors) who
may have access to or be required to use confidential program data are
informed of applicable requirements and penalties (including those in
section 6103 of the Internal Revenue Code of 1986), and are adequately
trained in security procedures.
"(5) Penalties.--Administrative penalties (up to and including
dismissal from employment) for unauthorized access to, or disclosure or
use of, confidential data.".
(3) Regulations.--The Secretary of Health and Human Services shall
prescribe final regulations for implementation of section 454A of the
Social Security Act not later than 2 years after the date of the
enactment of this Act.
(4) Implementation timetable.--Section 454(24) (42 U.S.C. 654(24)),
as amended by section 303(a)(1) of this Act, is amended to read as
follows:
"(24) provide that the State will have in effect an automated data
processing and information retrieval system--
"(A) by October 1, 1997, which meets all requirements of this
part which were enacted on or before the date of enactment of the
Family Support Act of 1988, and
"(B) by October 1, 2000, which meets all requirements of this
part enacted on or before the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996, except that such
deadline shall be extended by 1 day for each day (if any) by which
the Secretary fails to meet the deadline imposed by section 344(a)(3)
of the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996;".
(b) Special Federal Matching Rate for Development Costs of Automated
Systems.--
(1) In general.--Section 455(a) (42 U.S.C. 655(a)) is amended--
(A) in paragraph (1)(B)--
(i) by striking "90 percent" and inserting "the percent
specified in paragraph (3)";
(ii) by striking "so much of"; and
(iii) by striking "which the Secretary" and all that follows
and inserting ", and"; and
(B) by adding at the end the following new paragraph:
"(3)(A) The Secretary shall pay to each State, for each quarter in fiscal
years 1996 and 1997, 90 percent of so much of the State expenditures
described in paragraph (1)(B) as the Secretary finds are for a system meeting
the requirements specified in section 454(16) (as in effect on September 30,
1995) but limited to the amount approved for States in the advance planning
documents of such States submitted on or before September 30, 1995.
"(B)(i) The Secretary shall pay to each State, for each quarter in fiscal
years 1996 through 2001, the percentage specified in clause (ii) of so much
of the State expenditures described in paragraph (1)(B) as the Secretary
finds are for a system meeting the requirements of sections 454(16) and 454A.
"(ii) The percentage specified in this clause is 80 percent.".
(2) Temporary limitation on payments under special federal matching
rate.--
(A) In general.--The Secretary of Health and Human Services may
not pay more than $400,000,000 in the aggregate under section
455(a)(3)(B) of the Social Security Act for fiscal years 1996 through
2001.
(B) Allocation of limitation among states.--The total amount
payable to a State under section 455(a)(3)(B) of such Act for fiscal
years 1996 through 2001 shall not exceed the limitation determined
for the State by the Secretary of Health and Human Services in
regulations.
(C) Allocation formula.--The regulations referred to in
subparagraph (B) shall prescribe a formula for allocating the amount
specified in subparagraph (A) among States with plans approved under
part D of title IV of the Social Security Act, which shall take into
account--
(i) the relative size of State caseloads under such part; and
(ii) the level of automation needed to meet the automated
data processing requirements of such part.
(c) Conforming Amendment.--Section 123(c) of the Family Support Act of
1988 (102 Stat. 2352; Public Law 100-485) is repealed.
SEC. 345. TECHNICAL ASSISTANCE.
(a) For Training of Federal and State Staff, Research and Demonstration
Programs, and Special Projects of Regional or National Significance.--Section
452 (42 U.S.C. 652) is amended by adding at the end the following new
subsection:
"(j) Out of any money in the Treasury of the United States not otherwise
appropriated, there is hereby appropriated to the Secretary for each fiscal
year an amount equal to 1 percent of the total amount paid to the Federal
Government pursuant to section 457(a) during the immediately preceding fiscal
year (as determined on the basis of the most recent reliable data available
to the Secretary as of the end of the third calendar quarter following the
end of such preceding fiscal year), to cover costs incurred by the Secretary
for--
"(1) information dissemination and technical assistance to States,
training of State and Federal staff, staffing studies, and related
activities needed to improve programs under this part (including
technical assistance concerning State automated systems required by this
part); and
"(2) research, demonstration, and special projects of regional or
national significance relating to the operation of State programs under
this part.
The amount appropriated under this subsection shall remain available until
expended.".
(b) Operation of Federal Parent Locator Service.--Section 453 (42 U.S.C.
653), as amended by section 316 of this Act, is amended by adding at the end
the following new subsection:
"(o) Recovery of Costs.--Out of any money in the Treasury of the United
States not otherwise appropriated, there is hereby appropriated to the
Secretary for each fiscal year an amount equal to 2 percent of the total
amount paid to the Federal Government pursuant to section 457(a) during the
immediately preceding fiscal year (as determined on the basis of the most
recent reliable data available to the Secretary as of the end of the third
calendar quarter following the end of such preceding fiscal year), to cover
costs incurred by the Secretary for operation of the Federal Parent Locator
Service under this section, to the extent such costs are not recovered
through user fees.".
SEC. 346. REPORTS AND DATA COLLECTION BY THE SECRETARY.
(a) Annual Report to Congress.--
(1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is amended--
(A) by striking "this part;" and inserting "this part,
including--"; and
(B) by adding at the end the following new clauses:
"(i) the total amount of child support payments collected as
a result of services furnished during the fiscal year to
individuals receiving services under this part;
"(ii) the cost to the States and to the Federal Government of
so furnishing the services; and
"(iii) the number of cases involving families--
"(I) who became ineligible for assistance under State
programs funded under part A during a month in the fiscal
year; and
"(II) with respect to whom a child support payment was
received in the month;".
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is amended--
(A) in the matter preceding clause (i)--
(i) by striking "with the data required under each clause
being separately stated for cases" and inserting "separately
stated for cases";
(ii) by striking "cases where the child was formerly
receiving" and inserting "or formerly received";
(iii) by inserting "or 1912" after "471(a)(17)"; and
(iv) by inserting "for" before "all other";
(B) in each of clauses (i) and (ii), by striking ", and the total
amount of such obligations";
(C) in clause (iii), by striking "described in" and all that
follows and inserting "in which support was collected during the
fiscal year;";
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause (vii), and inserting
after clause (iii) the following new clauses:
"(iv) the total amount of support collected during such
fiscal year and distributed as current support;
"(v) the total amount of support collected during such fiscal
year and distributed as arrearages;
"(vi) the total amount of support due and unpaid for all
fiscal years; and".
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is amended by
striking "on the use of Federal courts and".
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended--
(A) in subparagraph (H), by striking "and";
(B) in subparagraph (I), by striking the period and inserting ";
and"; and
(C) by inserting after subparagraph (I) the following new
subparagraph:
"(J) compliance, by State, with the standards established
pursuant to subsections (h) and (i).".
(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by striking
all that follows subparagraph (J), as added by paragraph (4).
(b) Effective Date.--The amendments made by subsection (a) shall be
effective with respect to fiscal year 1997 and succeeding fiscal years.
Subtitle F--Establishment and Modification of Support Orders
SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD SUPPORT
ORDERS.
Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read as follows:
"(10) Review and adjustment of support orders upon request.--
"(A) 3-year cycle.--
"(i) In general.--Procedures under which every 3 years (or
such shorter cycle as the State may determine), upon the request
of either parent, or, if there is an assignment under part A,
upon the request of the State agency under the State plan or of
either parent, the State shall with respect to a support order
being enforced under this part, taking into account the best
interests of the child involved--
"(I) review and, if appropriate, adjust the order in
accordance with the guidelines established pursuant to
section 467(a) if the amount of the child support award under
the order differs from the amount that would be awarded in
accordance with the guidelines;
"(II) apply a cost-of-living adjustment to the order in
accordance with a formula developed by the State; or
"(III) use automated methods (including automated
comparisons with wage or State income tax data) to identify
orders eligible for review, conduct the review, identify
orders eligible for adjustment, and apply the appropriate
adjustment to the orders eligible for adjustment under any
threshold that may be established by the State.
"(ii) Opportunity to request review of adjustment.--If the
State elects to conduct the review under subclause (II) or (III)
of clause (i), procedures which permit either party to contest
the adjustment, within 30 days after the date of the notice of
the adjustment, by making a request for review and, if
appropriate, adjustment of the order in accordance with the child
support guidelines established pursuant to section 467(a).
"(iii) No proof of change in circumstances necessary in 3-
year cycle review.--Procedures which provide that any adjustment
under clause (i) shall be made without a requirement for proof or
showing of a change in circumstances.
"(B) Proof of substantial change in circumstances necessary in
request for review outside 3-year cycle.--Procedures under which, in
the case of a request for a review, and if appropriate, an adjustment
outside the 3-year cycle (or such shorter cycle as the State may
determine) under clause (i), the State shall review and, if the
requesting party demonstrates a substantial change in circumstances,
adjust the order in accordance with the guidelines established
pursuant to section 467(a).
"(C) Notice of right to review.--Procedures which require the
State to provide notice not less than once every 3 years to the
parents subject to the order informing the parents of their right to
request the State to review and, if appropriate, adjust the order
pursuant to this paragraph. The notice may be included in the
order.".
SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES RELATING TO CHILD
SUPPORT.
Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended
by adding at the end the following new paragraphs:
"(4) In response to a request by the head of a State or local child
support enforcement agency (or a State or local government official
authorized by the head of such an agency), if the person making the request
certifies to the consumer reporting agency that--
"(A) the consumer report is needed for the purpose of establishing an
individual's capacity to make child support payments or determining the
appropriate level of such payments;
"(B) the paternity of the consumer for the child to which the
obligation relates has been established or acknowledged by the consumer
in accordance with State laws under which the obligation arises (if
required by those laws);
"(C) the person has provided at least 10 days' prior notice to the
consumer whose report is requested, by certified or registered mail to
the last known address of the consumer, that the report will be
requested; and
"(D) the consumer report will be kept confidential, will be used
solely for a purpose described in subparagraph (A), and will not be used
in connection with any other civil, administrative, or criminal
proceeding, or for any other purpose.
"(5) To an agency administering a State plan under section 454 of the
Social Security Act (42 U.S.C. 654) for use to set an initial or modified
child support award.".
SEC. 353. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING FINANCIAL RECORDS
TO STATE CHILD SUPPORT ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.
Part D of title IV (42 U.S.C. 651-669) is amended by adding at the end
the following:
"SEC. 469A. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING FINANCIAL
RECORDS TO STATE CHILD SUPPORT ENFORCEMENT AGENCIES IN CHILD SUPPORT
CASES.
"(a) In General.--Notwithstanding any other provision of Federal or State
law, a financial institution shall not be liable under any Federal or State
law to any person for disclosing any financial record of an individual to a
State child support enforcement agency attempting to establish, modify, or
enforce a child support obligation of such individual.
"(b) Prohibition of Disclosure of Financial Record Obtained by State
Child Support Enforcement Agency.--A State child support enforcement agency
which obtains a financial record of an individual from a financial
institution pursuant to subsection (a) may disclose such financial record
only for the purpose of, and to the extent necessary in, establishing,
modifying, or enforcing a child support obligation of such individual.
"(c) Civil Damages for Unauthorized Disclosure.--
"(1) Disclosure by state officer or employee.--If any person
knowingly, or by reason of negligence, discloses a financial record of an
individual in violation of subsection (b), such individual may bring a
civil action for damages against such person in a district court of the
United States.
"(2) No liability for good faith but erroneous interpretation.--No
liability shall arise under this subsection with respect to any
disclosure which results from a good faith, but erroneous, interpretation
of subsection (b).
"(3) Damages.--In any action brought under paragraph (1), upon a
finding of liability on the part of the defendant, the defendant shall be
liable to the plaintiff in an amount equal to the sum of--
"(A) the greater of--
"(i) $1,000 for each act of unauthorized disclosure of a
financial record with respect to which such defendant is found
liable; or
"(ii) the sum of--
"(I) the actual damages sustained by the plaintiff as a
result of such unauthorized disclosure; plus
"(II) in the case of a willful disclosure or a disclosure
which is the result of gross negligence, punitive damages;
plus
"(B) the costs (including attorney's fees) of the action.
"(d) Definitions.--For purposes of this section--
"(1) Financial institution.--The term 'financial institution' means--
"(A) a depository institution, as defined in section 3(c) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(c));
"(B) an institution-affiliated party, as defined in section 3(u)
of such Act (12 U.S.C. 1813(u));
"(C) any Federal credit union or State credit union, as defined
in section 101 of the Federal Credit Union Act (12 U.S.C. 1752),
including an institution-affiliated party of such a credit union, as
defined in section 206(r) of such Act (12 U.S.C. 1786(r)); and
"(D) any benefit association, insurance company, safe deposit
company, money-market mutual fund, or similar entity authorized to do
business in the State.
"(2) Financial record.--The term 'financial record' has the meaning
given such term in section 1101 of the Right to Financial Privacy Act of
1978 (12 U.S.C. 3401).".
Subtitle G--Enforcement of Support Orders
SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.
(a) Collection of Fees.--Section 6305(a) of the Internal Revenue Code of
1986 (relating to collection of certain liability) is amended--
(1) by striking "and" at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and inserting
", and";
(3) by adding at the end the following new paragraph:
"(5) no additional fee may be assessed for adjustments to an amount
previously certified pursuant to such section 452(b) with respect to the
same obligor."; and
(4) by striking "Secretary of Health, Education, and Welfare" each
place it appears and inserting "Secretary of Health and Human Services".
(b) Effective Date.--The amendments made by this section shall become
effective October 1, 1997.
SEC. 362. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.
(a) Consolidation and Streamlining of Authorities.--Section 459 (42
U.S.C. 659) is amended to read as follows:
"SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING, GARNISHMENT,
AND SIMILAR PROCEEDINGS FOR ENFORCEMENT OF CHILD SUPPORT AND ALIMONY
OBLIGATIONS.
"(a) Consent to Support Enforcement.--Notwithstanding any other provision
of law (including section 207 of this Act and section 5301 of title 38,
United States Code), effective January 1, 1975, moneys (the entitlement to
which is based upon remuneration for employment) due from, or payable by, the
United States or the District of Columbia (including any agency, subdivision,
or instrumentality thereof) to any individual, including members of the Armed
Forces of the United States, shall be subject, in like manner and to the same
extent as if the United States or the District of Columbia were a private
person, to withholding in accordance with State law enacted pursuant to
subsections (a)(1) and (b) of section 466 and regulations of the Secretary
under such subsections, and to any other legal process brought, by a State
agency administering a program under a State plan approved under this part or
by an individual obligee, to enforce the legal obligation of the individual
to provide child support or alimony.
"(b) Consent to Requirements Applicable to Private Person.--With respect
to notice to withhold income pursuant to subsection (a)(1) or (b) of section
466, or any other order or process to enforce support obligations against an
individual (if the order or process contains or is accompanied by sufficient
data to permit prompt identification of the individual and the moneys
involved), each governmental entity specified in subsection (a) shall be
subject to the same requirements as would apply if the entity were a private
person, except as otherwise provided in this section.
"(c) Designation of Agent; Response to Notice or Process--
"(1) Designation of agent.--The head of each agency subject to this
section shall--
"(A) designate an agent or agents to receive orders and accept
service of process in matters relating to child support or alimony;
and
"(B) annually publish in the Federal Register the designation of
the agent or agents, identified by title or position, mailing
address, and telephone number.
"(2) Response to notice or process.--If an agent designated pursuant
to paragraph (1) of this subsection receives notice pursuant to State
procedures in effect pursuant to subsection (a)(1) or (b) of section 466,
or is effectively served with any order, process, or interrogatory, with
respect to an individual's child support or alimony payment obligations,
the agent shall--
"(A) as soon as possible (but not later than 15 days) thereafter,
send written notice of the notice or service (together with a copy of
the notice or service) to the individual at the duty station or last-
known home address of the individual;
"(B) within 30 days (or such longer period as may be prescribed
by applicable State law) after receipt of a notice pursuant to such
State procedures, comply with all applicable provisions of section
466; and
"(C) within 30 days (or such longer period as may be prescribed
by applicable State law) after effective service of any other such
order, process, or interrogatory, respond to the order, process, or
interrogatory.
"(d) Priority of Claims.--If a governmental entity specified in
subsection (a) receives notice or is served with process, as provided in this
section, concerning amounts owed by an individual to more than 1 person--
"(1) support collection under section 466(b) must be given priority
over any other process, as provided in section 466(b)(7);
"(2) allocation of moneys due or payable to an individual among
claimants under section 466(b) shall be governed by section 466(b) and
the regulations prescribed under such section; and
"(3) such moneys as remain after compliance with paragraphs (1) and
(2) shall be available to satisfy any other such processes on a first-
come, first-served basis, with any such process being satisfied out of
such moneys as remain after the satisfaction of all such processes which
have been previously served.
"(e) No Requirement To Vary Pay Cycles.--A governmental entity that is
affected by legal process served for the enforcement of an individual's child
support or alimony payment obligations shall not be required to vary its
normal pay and disbursement cycle in order to comply with the legal process.
"(f) Relief From Liability.--
"(1) Neither the United States, nor the government of the District of
Columbia, nor any disbursing officer shall be liable with respect to any
payment made from moneys due or payable from the United States to any
individual pursuant to legal process regular on its face, if the payment
is made in accordance with this section and the regulations issued to
carry out this section.
"(2) No Federal employee whose duties include taking actions
necessary to comply with the requirements of subsection (a) with regard
to any individual shall be subject under any law to any disciplinary
action or civil or criminal liability or penalty for, or on account of,
any disclosure of information made by the employee in connection with the
carrying out of such actions.
"(g) Regulations.--Authority to promulgate regulations for the
implementation of this section shall, insofar as this section applies to
moneys due from (or payable by)--
"(1) the United States (other than the legislative or judicial
branches of the Federal Government) or the government of the District of
Columbia, be vested in the President (or the designee of the President);
"(2) the legislative branch of the Federal Government, be vested
jointly in the President pro tempore of the Senate and the Speaker of the
House of Representatives (or their designees), and
"(3) the judicial branch of the Federal Government, be vested in the
Chief Justice of the United States (or the designee of the Chief
Justice).
"(h) Moneys Subject to Process.--
"(1) In general.--Subject to paragraph (2), moneys paid or payable to
an individual which are considered to be based upon remuneration for
employment, for purposes of this section--
"(A) consist of--
"(i) compensation paid or payable for personal services of
the individual, whether the compensation is denominated as wages,
salary, commission, bonus, pay, allowances, or otherwise
(including severance pay, sick pay, and incentive pay);
"(ii) periodic benefits (including a periodic benefit as
defined in section 228(h)(3)) or other payments--
"(I) under the insurance system established by title II;
"(II) under any other system or fund established by the
United States which provides for the payment of pensions,
retirement or retired pay, annuities, dependents' or
survivors' benefits, or similar amounts payable on account of
personal services performed by the individual or any other
individual;
"(III) as compensation for death under any Federal
program;
"(IV) under any Federal program established to provide
'black lung' benefits; or
"(V) by the Secretary of Veterans Affairs as compensation
for a service-connected disability paid by the Secretary to a
former member of the Armed Forces who is in receipt of
retired or retainer pay if the former member has waived a
portion of the retired or retainer pay in order to receive
such compensation; and
"(iii) worker's compensation benefits paid under Federal or
State law but
"(B) do not include any payment--
"(i) by way of reimbursement or otherwise, to defray expenses
incurred by the individual in carrying out duties associated with
the employment of the individual; or
"(ii) as allowances for members of the uniformed services
payable pursuant to chapter 7 of title 37, United States Code, as
prescribed by the Secretaries concerned (defined by section
101(5) of such title) as necessary for the efficient performance
of duty.
"(2) Certain amounts excluded.--In determining the amount of any
moneys due from, or payable by, the United States to any individual,
there shall be excluded amounts which--
"(A) are owed by the individual to the United States;
"(B) are required by law to be, and are, deducted from the
remuneration or other payment involved, including Federal employment
taxes, and fines and forfeitures ordered by court-martial;
"(C) are properly withheld for Federal, State, or local income
tax purposes, if the withholding of the amounts is authorized or
required by law and if amounts withheld are not greater than would be
the case if the individual claimed all dependents to which he was
entitled (the withholding of additional amounts pursuant to section
3402(i) of the Internal Revenue Code of 1986 may be permitted only
when the individual presents evidence of a tax obligation which
supports the additional withholding);
"(D) are deducted as health insurance premiums;
"(E) are deducted as normal retirement contributions (not
including amounts deducted for supplementary coverage); or
"(F) are deducted as normal life insurance premiums from salary
or other remuneration for employment (not including amounts deducted
for supplementary coverage).
"(i) Definitions.--For purposes of this section--
"(1) United states.--The term 'United States' includes any
department, agency, or instrumentality of the legislative, judicial, or
executive branch of the Federal Government, the United States Postal
Service, the Postal Rate Commission, any Federal corporation created by
an Act of Congress that is wholly owned by the Federal Government, and
the governments of the territories and possessions of the United States.
"(2) Child support.--The term 'child support', when used in reference
to the legal obligations of an individual to provide such support, means
amounts required to be paid under a judgment, decree, or order, whether
temporary, final, or subject to modification, issued by a court or an
administrative agency of competent jurisdiction, for the support and
maintenance of a child, including a child who has attained the age of
majority under the law of the issuing State, or a child and the parent
with whom the child is living, which provides for monetary support,
health care, arrearages or reimbursement, and which may include other
related costs and fees, interest and penalties, income withholding,
attorney's fees, and other relief.
"(3) Alimony.--
"(A) In general.--The term 'alimony', when used in reference to
the legal obligations of an individual to provide the same, means
periodic payments of funds for the support and maintenance of the
spouse (or former spouse) of the individual, and (subject to and in
accordance with State law) includes separate maintenance, alimony
pendente lite, maintenance, and spousal support, and includes
attorney's fees, interest, and court costs when and to the extent
that the same are expressly made recoverable as such pursuant to a
decree, order, or judgment issued in accordance with applicable State
law by a court of competent jurisdiction.
"(B) Exceptions.--Such term does not include--
"(i) any child support; or
"(ii) any payment or transfer of property or its value by an
individual to the spouse or a former spouse of the individual in
compliance with any community property settlement, equitable
distribution of property, or other division of property between
spouses or former spouses.
"(4) Private person.--The term 'private person' means a person who
does not have sovereign or other special immunity or privilege which
causes the person not to be subject to legal process.
"(5) Legal process.--The term 'legal process' means any writ, order,
summons, or other similar process in the nature of garnishment--
"(A) which is issued by--
"(i) a court or an administrative agency of competent
jurisdiction in any State, territory, or possession of the United
States;
"(ii) a court or an administrative agency of competent
jurisdiction in any foreign country with which the United States
has entered into an agreement which requires the United States to
honor the process; or
"(iii) an authorized official pursuant to an order of such a
court or an administrative agency of competent jurisdiction or
pursuant to State or local law; and
"(B) which is directed to, and the purpose of which is to compel,
a governmental entity which holds moneys which are otherwise payable
to an individual to make a payment from the moneys to another party
in order to satisfy a legal obligation of the individual to provide
child support or make alimony payments.".
(b) Conforming Amendments.--
(1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 661 and
662) are repealed.
(2) To title 5, united states code.--Section 5520a of title 5, United
States Code, is amended, in subsections (h)(2) and (i), by striking
"sections 459, 461, and 462 of the Social Security Act (42 U.S.C. 659,
661, and 662)" and inserting "section 459 of the Social Security Act (42
U.S.C. 659)".
(c) Military Retired and Retainer Pay.--
(1) Definition of court.--Section 1408(a)(1) of title 10, United
States Code, is amended--
(A) by striking "and" at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph (C) and
inserting "; and"; and
(C) by adding after subparagraph (C) the following new
subparagraph:
"(D) any administrative or judicial tribunal of a State competent
to enter orders for support or maintenance (including a State agency
administering a program under a State plan approved under part D of
title IV of the Social Security Act), and, for purposes of this
subparagraph, the term 'State' includes the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American
Samoa.".
(2) Definition of court order.--Section 1408(a)(2) of such title is
amended--
(A) by inserting "or a support order, as defined in section
453(p) of the Social Security Act (42 U.S.C. 653(p))," before
"which--";
(B) in subparagraph (B)(i), by striking "(as defined in section
462(b) of the Social Security Act (42 U.S.C. 662(b)))" and inserting
"(as defined in section 459(i)(2) of the Social Security Act (42
U.S.C. 659(i)(2)))"; and
(C) in subparagraph (B)(ii), by striking "(as defined in section
462(c) of the Social Security Act (42 U.S.C. 662(c)))" and inserting
"(as defined in section 459(i)(3) of the Social Security Act (42
U.S.C. 659(i)(3)))".
(3) Public payee.--Section 1408(d) of such title is amended--
(A) in the heading, by inserting "(or for Benefit of)" before
"Spouse or"; and
(B) in paragraph (1), in the first sentence, by inserting "(or
for the benefit of such spouse or former spouse to a State
disbursement unit established pursuant to section 454B of the Social
Security Act or other public payee designated by a State, in
accordance with part D of title IV of the Social Security Act, as
directed by court order, or as otherwise directed in accordance with
such part D)" before "in an amount sufficient".
(4) Relationship to part d of title iv.--Section 1408 of such title
is amended by adding at the end the following new subsection:
"(j) Relationship to Other Laws.--In any case involving an order
providing for payment of child support (as defined in section 459(i)(2) of
the Social Security Act) by a member who has never been married to the other
parent of the child, the provisions of this section shall not apply, and the
case shall be subject to the provisions of section 459 of such Act.".
(d) Effective Date.--The amendments made by this section shall become
effective 6 months after the date of the enactment of this Act.
SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF THE ARMED
FORCES.
(a) Availability of Locator Information.--
(1) Maintenance of address information.--The Secretary of Defense
shall establish a centralized personnel locator service that includes the
address of each member of the Armed Forces under the jurisdiction of the
Secretary. Upon request of the Secretary of Transportation, addresses for
members of the Coast Guard shall be included in the centralized personnel
locator service.
(2) Type of address.--
(A) Residential address.--Except as provided in subparagraph (B),
the address for a member of the Armed Forces shown in the locator
service shall be the residential address of that member.
(B) Duty address.--The address for a member of the Armed Forces
shown in the locator service shall be the duty address of that member
in the case of a member--
(i) who is permanently assigned overseas, to a vessel, or to
a routinely deployable unit; or
(ii) with respect to whom the Secretary concerned makes a
determination that the member's residential address should not be
disclosed due to national security or safety concerns.
(3) Updating of locator information.--Within 30 days after a member
listed in the locator service establishes a new residential address (or a
new duty address, in the case of a member covered by paragraph (2)(B)),
the Secretary concerned shall update the locator service to indicate the
new address of the member.
(4) Availability of information.--The Secretary of Defense shall make
information regarding the address of a member of the Armed Forces listed
in the locator service available, on request, to the Federal Parent
Locator Service established under section 453 of the Social Security Act.
(b) Facilitating Granting of Leave for Attendance at Hearings.--
(1) Regulations.--The Secretary of each military department, and the
Secretary of Transportation with respect to the Coast Guard when it is
not operating as a service in the Navy, shall prescribe regulations to
facilitate the granting of leave to a member of the Armed Forces under
the jurisdiction of that Secretary in a case in which--
(A) the leave is needed for the member to attend a hearing
described in paragraph (2);
(B) the member is not serving in or with a unit deployed in a
contingency operation (as defined in section 101 of title 10, United
States Code); and
(C) the exigencies of military service (as determined by the
Secretary concerned) do not otherwise require that such leave not be
granted.
(2) Covered hearings.--Paragraph (1) applies to a hearing that is
conducted by a court or pursuant to an administrative process established
under State law, in connection with a civil action--
(A) to determine whether a member of the Armed Forces is a
natural parent of a child; or
(B) to determine an obligation of a member of the Armed Forces to
provide child support.
(3) Definitions.--For purposes of this subsection--
(A) The term "court" has the meaning given that term in section
1408(a) of title 10, United States Code.
(B) The term "child support" has the meaning given such term in
section 459(i) of the Social Security Act (42 U.S.C. 659(i)).
(c) Payment of Military Retired Pay in Compliance With Child Support
Orders.--
(1) Date of certification of court order.--Section 1408 of title 10,
United States Code, as amended by section 362(c)(4) of this Act, is
amended--
(A) by redesignating subsections (i) and (j) as subsections (j)
and (k), respectively; and
(B) by inserting after subsection (h) the following new
subsection:
"(i) Certification Date.--It is not necessary that the date of a
certification of the authenticity or completeness of a copy of a court order
for child support received by the Secretary concerned for the purposes of
this section be recent in relation to the date of receipt by the Secretary.".
(2) Payments consistent with assignments of rights to states.--
Section 1408(d)(1) of such title is amended by inserting after the first
sentence the following new sentence: "In the case of a spouse or former
spouse who, pursuant to section 408(a)(3) of the Social Security Act (42
U.S.C. 608(a)(4)), assigns to a State the rights of the spouse or former
spouse to receive support, the Secretary concerned may make the child
support payments referred to in the preceding sentence to that State in
amounts consistent with that assignment of rights.".
(3) Arrearages owed by members of the uniformed services.--Section
1408(d) of such title is amended by adding at the end the following new
paragraph:
"(6) In the case of a court order for which effective service is made on
the Secretary concerned on or after the date of the enactment of this
paragraph and which provides for payments from the disposable retired pay of
a member to satisfy the amount of child support set forth in the order, the
authority provided in paragraph (1) to make payments from the disposable
retired pay of a member to satisfy the amount of child support set forth in a
court order shall apply to payment of any amount of child support arrearages
set forth in that order as well as to amounts of child support that currently
become due.".
(4) Payroll deductions.--The Secretary of Defense shall begin payroll
deductions within 30 days after receiving notice of withholding, or for
the first pay period that begins after such 30-day period.
SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.
Section 466 (42 U.S.C. 666), as amended by section 321 of this Act, is
amended by adding at the end the following new subsection:
"(g) Laws Voiding Fraudulent Transfers.--In order to satisfy section
454(20)(A), each State must have in effect--
"(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
"(B) the Uniform Fraudulent Transfer Act of 1984; or
"(C) another law, specifying indicia of fraud which create a prima
facie case that a debtor transferred income or property to avoid payment
to a child support creditor, which the Secretary finds affords comparable
rights to child support creditors; and
"(2) procedures under which, in any case in which the State knows of
a transfer by a child support debtor with respect to which such a prima
facie case is established, the State must--
"(A) seek to void such transfer; or
"(B) obtain a settlement in the best interests of the child
support creditor.".
SEC. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD SUPPORT.
(a) In General.--Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 315, 317, and 323 of this Act, is amended by inserting after
paragraph (14) the following new paragraph:
"(15) Procedures to ensure that persons owing past-due support work
or have a plan for payment of such support.--
"(A) In general.--Procedures under which the State has the
authority, in any case in which an individual owes past-due support
with respect to a child receiving assistance under a State program
funded under part A, to issue an order or to request that a court or
an administrative process established pursuant to State law issue an
order that requires the individual to--
"(i) pay such support in accordance with a plan approved by
the court, or, at the option of the State, a plan approved by the
State agency administering the State program under this part; or
"(ii) if the individual is subject to such a plan and is not
incapacitated, participate in such work activities (as defined in
section 407(d)) as the court, or, at the option of the State, the
State agency administering the State program under this part,
deems appropriate.
"(B) Past-due support defined.--For purposes of subparagraph (A),
the term 'past-due support' means the amount of a delinquency,
determined under a court order, or an order of an administrative
process established under State law, for support and maintenance of a
child, or of a child and the parent with whom the child is living.".
(b) Conforming Amendment.--The flush paragraph at the end of section
466(a) (42 U.S.C. 666(a)) is amended by striking "and (7)" and inserting
"(7), and (15)".
SEC. 366. DEFINITION OF SUPPORT ORDER.
Section 453 (42 U.S.C. 653) as amended by sections 316 and 345(b) of this
Act, is amended by adding at the end the following new subsection:
"(p) Support Order Defined.--As used in this part, the term 'support
order' means a judgment, decree, or order, whether temporary, final, or
subject to modification, issued by a court or an administrative agency of
competent jurisdiction, for the support and maintenance of a child, including
a child who has attained the age of majority under the law of the issuing
State, or a child and the parent with whom the child is living, which
provides for monetary support, health care, arrearages, or reimbursement, and
which may include related costs and fees, interest and penalties, income
withholding, attorneys' fees, and other relief.".
SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.
Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as follows:
"(7) Reporting arrearages to credit bureaus.--
"(A) In general.--Procedures (subject to safeguards pursuant to
subparagraph (B)) requiring the State to report periodically to
consumer reporting agencies (as defined in section 603(f) of the Fair
Credit Reporting Act (15 U.S.C. 1681a(f)) the name of any
noncustodial parent who is delinquent in the payment of support, and
the amount of overdue support owed by such parent.
"(B) Safeguards.--Procedures ensuring that, in carrying out
subparagraph (A), information with respect to a noncustodial parent
is reported--
"(i) only after such parent has been afforded all due process
required under State law, including notice and a reasonable
opportunity to contest the accuracy of such information; and
"(ii) only to an entity that has furnished evidence
satisfactory to the State that the entity is a consumer reporting
agency (as so defined).".
SEC. 368. LIENS.
Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read as follows:
"(4) Liens.--Procedures under which--
"(A) liens arise by operation of law against real and personal
property for amounts of overdue support owed by a noncustodial parent
who resides or owns property in the State; and
"(B) the State accords full faith and credit to liens described
in subparagraph (A) arising in another State, when the State agency,
party, or other entity seeking to enforce such a lien complies with
the procedural rules relating to recording or serving liens that
arise within the State, except that such rules may not require
judicial notice or hearing prior to the enforcement of such a lien.".
SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 317, 323,
and 365 of this Act, is amended by inserting after paragraph (15) the
following:
"(16) Authority to withhold or suspend licenses.--Procedures under
which the State has (and uses in appropriate cases) authority to withhold
or suspend, or to restrict the use of driver's licenses, professional and
occupational licenses, and recreational licenses of individuals owing
overdue support or failing, after receiving appropriate notice, to comply
with subpoenas or warrants relating to paternity or child support
proceedings.".
SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD SUPPORT.
(a) HHS Certification Procedure.--
(1) Secretarial responsibility.--Section 452 (42 U.S.C. 652), as
amended by section 345 of this Act, is amended by adding at the end the
following new subsection:
"(k)(1) If the Secretary receives a certification by a State agency in
accordance with the requirements of section 454(31) that an individual owes
arrearages of child support in an amount exceeding $5,000, the Secretary
shall transmit such certification to the Secretary of State for action (with
respect to denial, revocation, or limitation of passports) pursuant to
paragraph (2).
"(2) The Secretary of State shall, upon certification by the Secretary
transmitted under paragraph (1), refuse to issue a passport to such
individual, and may revoke, restrict, or limit a passport issued previously
to such individual.
"(3) The Secretary and the Secretary of State shall not be liable to an
individual for any action with respect to a certification by a State agency
under this section.".
(2) State agency responsibility.--Section 454 (42 U.S.C. 654), as
amended by sections 301(b), 303(a), 312(b), 313(a), 333, and 343(b) of
this Act, is amended--
(A) by striking "and" at the end of paragraph (29);
(B) by striking the period at the end of paragraph (30) and
inserting "; and"; and
(C) by adding after paragraph (30) the following new paragraph:
"(31) provide that the State agency will have in effect a procedure
for certifying to the Secretary, for purposes of the procedure under
section 452(k), determinations that individuals owe arrearages of child
support in an amount exceeding $5,000, under which procedure--
"(A) each individual concerned is afforded notice of such
determination and the consequences thereof, and an opportunity to
contest the determination; and
"(B) the certification by the State agency is furnished to the
Secretary in such format, and accompanied by such supporting
documentation, as the Secretary may require.".
(b) Effective Date.--This section and the amendments made by this section
shall become effective October 1, 1997.
SEC. 371. INTERNATIONAL SUPPORT ENFORCEMENT.
(a) Authority for International Agreements.--Part D of title IV, as
amended by section 362(a) of this Act, is amended by adding after section 459
the following new section:
"SEC. 459A. INTERNATIONAL SUPPORT ENFORCEMENT.
"(a) Authority for Declarations.--
"(1) Declaration.--The Secretary of State, with the concurrence of
the Secretary of Health and Human Services, is authorized to declare any
foreign country (or a political subdivision thereof) to be a foreign
reciprocating country if the foreign country has established, or
undertakes to establish, procedures for the establishment and enforcement
of duties of support owed to obligees who are residents of the United
States, and such procedures are substantially in conformity with the
standards prescribed under subsection (b).
"(2) Revocation.--A declaration with respect to a foreign country
made pursuant to paragraph (1) may be revoked if the Secretaries of State
and Health and Human Services determine that--
"(A) the procedures established by the foreign country regarding
the establishment and enforcement of duties of support have been so
changed, or the foreign country's implementation of such procedures
is so unsatisfactory, that such procedures do not meet the criteria
for such a declaration; or
"(B) continued operation of the declaration is not consistent
with the purposes of this part.
"(3) Form of declaration.--A declaration under paragraph (1) may be
made in the form of an international agreement, in connection with an
international agreement or corresponding foreign declaration, or on a
unilateral basis.
"(b) Standards for Foreign Support Enforcement Procedures.--
"(1) Mandatory elements.--Support enforcement procedures of a foreign
country which may be the subject of a declaration pursuant to subsection
(a)(1) shall include the following elements:
"(A) The foreign country (or political subdivision thereof) has
in effect procedures, available to residents of the United States--
"(i) for establishment of paternity, and for establishment of
orders of support for children and custodial parents; and
"(ii) for enforcement of orders to provide support to
children and custodial parents, including procedures for
collection and appropriate distribution of support payments under
such orders.
"(B) The procedures described in subparagraph (A), including
legal and administrative assistance, are provided to residents of the
United States at no cost.
"(C) An agency of the foreign country is designated as a Central
Authority responsible for--
"(i) facilitating support enforcement in cases involving
residents of the foreign country and residents of the United
States; and
"(ii) ensuring compliance with the standards established
pursuant to this subsection.
"(2) Additional elements.--The Secretary of Health and Human Services
and the Secretary of State, in consultation with the States, may
establish such additional standards as may be considered necessary to
further the purposes of this section.
"(c) Designation of United States Central Authority.--It shall be the
responsibility of the Secretary of Health and Human Services to facilitate
support enforcement in cases involving residents of the United States and
residents of foreign countries that are the subject of a declaration under
this section, by activities including--
"(1) development of uniform forms and procedures for use in such
cases;
"(2) notification of foreign reciprocating countries of the State of
residence of individuals sought for support enforcement purposes, on the
basis of information provided by the Federal Parent Locator Service; and
"(3) such other oversight, assistance, and coordination activities as
the Secretary may find necessary and appropriate.
"(d) Effect on Other Laws.--States may enter into reciprocal arrangements
for the establishment and enforcement of support obligations with foreign
countries that are not the subject of a declaration pursuant to subsection
(a), to the extent consistent with Federal law.".
(b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as amended by
sections 301(b), 303(a), 312(b), 313(a), 333, 343(b), and 370(a)(2) of this
Act, is amended--
(1) by striking "and" at the end of paragraph (30);
(2) by striking the period at the end of paragraph (31) and inserting
"; and"; and
(3) by adding after paragraph (31) the following new paragraph:
"(32)(A) provide that any request for services under this part by a
foreign reciprocating country or a foreign country with which the State
has an arrangement described in section 459A(d)(2) shall be treated as a
request by a State;
"(B) provide, at State option, notwithstanding paragraph (4) or any
other provision of this part, for services under the plan for enforcement
of a spousal support order not described in paragraph (4)(B) entered by
such a country (or subdivision); and
"(C) provide that no applications will be required from, and no costs
will be assessed for such services against, the foreign reciprocating
country or foreign obligee (but costs may at State option be assessed
against the obligor).".
SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 317, 323,
365, and 369 of this Act, is amended by inserting after paragraph (16) the
following new paragraph:
"(17) Financial institution data matches.--
"(A) In general.--Procedures under which the State agency shall
enter into agreements with financial institutions doing business in
the State--
"(i) to develop and operate, in coordination with such
financial institutions, a data match system, using automated data
exchanges to the maximum extent feasible, in which each such
financial institution is required to provide for each calendar
quarter the name, record address, social security number or other
taxpayer identification number, and other identifying information
for each noncustodial parent who maintains an account at such
institution and who owes past-due support, as identified by the
State by name and social security number or other taxpayer
identification number; and
"(ii) in response to a notice of lien or levy, encumber or
surrender, as the case may be, assets held by such institution on
behalf of any noncustodial parent who is subject to a child
support lien pursuant to paragraph (4).
"(B) Reasonable fees.--The State agency may pay a reasonable fee
to a financial institution for conducting the data match provided for
in subparagraph (A)(i), not to exceed the actual costs incurred by
such financial institution.
"(C) Liability.--A financial institution shall not be liable
under any Federal or State law to any person--
"(i) for any disclosure of information to the State agency
under subparagraph (A)(i);
"(ii) for encumbering or surrendering any assets held by such
financial institution in response to a notice of lien or levy
issued by the State agency as provided for in subparagraph
(A)(ii); or
"(iii) for any other action taken in good faith to comply
with the requirements of subparagraph (A).
"(D) Definitions.--For purposes of this paragraph--
"(i) Financial institution.--The term 'financial institution'
has the meaning given to such term by section 469A(d)(1).
"(ii) Account.--The term 'account' means a demand deposit
account, checking or negotiable withdrawal order account, savings
account, time deposit account, or money-market mutual fund
account.".
SEC. 373. ENFORCEMENT OF ORDERS AGAINST PATERNAL OR MATERNAL GRANDPARENTS IN
CASES OF MINOR PARENTS.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 317, 323,
365, 369, and 372 of this Act, is amended by inserting after paragraph (17)
the following new paragraph:
"(18) Enforcement of orders against paternal or maternal
grandparents.--Procedures under which, at the State's option, any child
support order enforced under this part with respect to a child of minor
parents, if the custodial parent of such child is receiving assistance
under the State program under part A, shall be enforceable, jointly and
severally, against the parents of the noncustodial parent of such
child.".
SEC. 374. NONDISCHARGEABILITY IN BANKRUPTCY OF CERTAIN DEBTS FOR THE SUPPORT
OF A CHILD.
(a) Amendment to Title 11 of the United States Code.--Section 523(a) of
title 11, United States Code, is amended--
(1) by striking "or" at the end of paragraph (16);
(2) by striking the period at the end of paragraph (17) and inserting
"; or";
(3) by adding at the end the following:
"(18) owed under State law to a State or municipality that is--
"(A) in the nature of support, and
"(B) enforceable under part D of title IV of the Social Security
Act (42 U.S.C. 601 et seq.)."; and
(4) in paragraph (5), by striking "section 402(a)(26)" and inserting
"section 408(a)(3)".
(b) Amendment to the Social Security Act.--Section 456(b) (42 U.S.C.
656(b)) is amended to read as follows:
"(b) Nondischargeability.--A debt (as defined in section 101 of title 11
of the United States Code) owed under State law to a State (as defined in
such section) or municipality (as defined in such section) that is in the
nature of support and that is enforceable under this part is not released by
a discharge in bankruptcy under title 11 of the United States Code.".
(c) Application of Amendments.--The amendments made by this section shall
apply only with respect to cases commenced under title 11 of the United
States Code after the date of the enactment of this Act.
SEC. 375. CHILD SUPPORT ENFORCEMENT FOR INDIAN TRIBES.
(a) Child Support Enforcement Agreements.--Section 454 (42 U.S.C. 654),
as amended by sections 301(b), 303(a), 312(b), 313(a), 333, 343(b),
370(a)(2), and 371(b) of this Act, is amended--
(1) by striking "and" at the end of paragraph (31);
(2) by striking the period at the end of paragraph (32) and inserting
"; and";
(3) by adding after paragraph (32) the following new paragraph:
"(33) provide that a State that receives funding pursuant to section
428 and that has within its borders Indian country (as defined in section
1151 of title 18, United States Code) may enter into cooperative
agreements with an Indian tribe or tribal organization (as defined in
subsections (e) and (l) of section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b)), if the Indian tribe or tribal
organization demonstrates that such tribe or organization has an
established tribal court system or a Court of Indian Offenses with the
authority to establish paternity, establish, modify, and enforce support
orders, and to enter support orders in accordance with child support
guidelines established by such tribe or organization, under which the
State and tribe or organization shall provide for the cooperative
delivery of child support enforcement services in Indian country and for
the forwarding of all funding collected pursuant to the functions
performed by the tribe or organization to the State agency, or
conversely, by the State agency to the tribe or organization, which shall
distribute such funding in accordance with such agreement."; and
(4) by adding at the end the following new sentence: "Nothing in
paragraph (33) shall void any provision of any cooperative agreement
entered into before the date of the enactment of such paragraph, nor
shall such paragraph deprive any State of jurisdiction over Indian
country (as so defined) that is lawfully exercised under section 402 of
the Act entitled 'An Act to prescribe penalties for certain acts of
violence or intimidation, and for other purposes', approved April 11,
1968 (25 U.S.C. 1322).".
(b) Direct Federal Funding to Indian Tribes and Tribal Organizations.--
Section 455 (42 U.S.C. 655) is amended by adding at the end the following new
subsection:
"(b) The Secretary may, in appropriate cases, make direct payments under
this part to an Indian tribe or tribal organization which has an approved
child support enforcement plan under this title. In determining whether such
payments are appropriate, the Secretary shall, at a minimum, consider whether
services are being provided to eligible Indian recipients by the State agency
through an agreement entered into pursuant to section 454(34).".
(c) Cooperative Enforcement Agreements.--Paragraph (7) of section 454 (42
U.S.C. 654) is amended by inserting "and Indian tribes or tribal
organizations (as defined in subsections (e) and (l) of section 4 of the
Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b))"
after "law enforcement officials".
(d) Conforming Amendment.--Subsection (c) of section 428 (42 U.S.C. 628)
is amended to read as follows:
"(c) For purposes of this section, the terms 'Indian tribe' and 'tribal
organization' shall have the meanings given such terms by subsections (e) and
(l) of section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b), respectively.".
Subtitle H--Medical Support
SEC. 381. CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD SUPPORT ORDER.
(a) In General.--Section 609(a)(2)(B) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
(1) by striking "issued by a court of competent jurisdiction";
(2) by striking the period at the end of clause (ii) and inserting a
comma; and
(3) by adding, after and below clause (ii), the following:
"if such judgment, decree, or order (I) is issued by a court of
competent jurisdiction or (II) is issued through an administrative
process established under State law and has the force and effect of
law under applicable State law.".
(b) Effective Date.--
(1) In general.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Plan amendments not required until january 1, 1997.--Any
amendment to a plan required to be made by an amendment made by this
section shall not be required to be made before the 1st plan year
beginning on or after January 1, 1997, if--
(A) during the period after the date before the date of the
enactment of this Act and before such 1st plan year, the plan is
operated in accordance with the requirements of the amendments made
by this section; and
(B) such plan amendment applies retroactively to the period after
the date before the date of the enactment of this Act and before such
1st plan year.
A plan shall not be treated as failing to be operated in accordance with
the provisions of the plan merely because it operates in accordance with
this paragraph.
SEC. 382. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 317, 323,
365, 369, 372, and 373 of this Act, is amended by inserting after paragraph
(18) the following new paragraph:
"(19) Health care coverage.--Procedures under which all child support
orders enforced pursuant to this part shall include a provision for the
health care coverage of the child, and in the case in which a
noncustodial parent provides such coverage and changes employment, and
the new employer provides health care coverage, the State agency shall
transfer notice of the provision to the employer, which notice shall
operate to enroll the child in the noncustodial parent's health plan,
unless the noncustodial parent contests the notice.".
Subtitle I--Enhancing Responsibility and Opportunity
for Non-Residential Parents
SEC. 391. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.
Part D of title IV (42 U.S.C. 651-669), as amended by section 353 of this
Act, is amended by adding at the end the following new section:
"SEC. 469B. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.
"(a) In General.--The Administration for Children and Families shall make
grants under this section to enable States to establish and administer
programs to support and facilitate noncustodial parents' access to and
visitation of their children, by means of activities including mediation
(both voluntary and mandatory), counseling, education, development of
parenting plans, visitation enforcement (including monitoring, supervision
and neutral drop-off and pickup), and development of guidelines for
visitation and alternative custody arrangements.
"(b) Amount of Grant.--The amount of the grant to be made to a State
under this section for a fiscal year shall be an amount equal to the lesser
of--
"(1) 90 percent of State expenditures during the fiscal year for
activities described in subsection (a); or
"(2) the allotment of the State under subsection (c) for the fiscal
year.
"(c) Allotments to States.--
"(1) In general.--The allotment of a State for a fiscal year is the
amount that bears the same ratio to $10,000,000 for grants under this
section for the fiscal year as the number of children in the State living
with only 1 biological parent bears to the total number of such children
in all States.
"(2) Minimum allotment.--The Administration for Children and Families
shall adjust allotments to States under paragraph (1) as necessary to
ensure that no State is allotted less than--
"(A) $50,000 for fiscal year 1997 or 1998; or
"(B) $100,000 for any succeeding fiscal year.
"(d) No Supplantation of State Expenditures for Similar Activities.--A
State to which a grant is made under this section may not use the grant to
supplant expenditures by the State for activities specified in subsection
(a), but shall use the grant to supplement such expenditures at a level at
least equal to the level of such expenditures for fiscal year 1995.
"(e) State Administration.--Each State to which a grant is made under
this section--
"(1) may administer State programs funded with the grant, directly or
through grants to or contracts with courts, local public agencies, or
nonprofit private entities;
"(2) shall not be required to operate such programs on a statewide
basis; and
"(3) shall monitor, evaluate, and report on such programs in
accordance with regulations prescribed by the Secretary.".
Subtitle J--Effective Dates and Conforming Amendments
SEC. 395. EFFECTIVE DATES AND CONFORMING AMENDMENTS.
(a) In General.--Except as otherwise specifically provided (but subject
to subsections (b) and (c))--
(1) the provisions of this title requiring the enactment or amendment
of State laws under section 466 of the Social Security Act, or revision
of State plans under section 454 of such Act, shall be effective with
respect to periods beginning on and after October 1, 1996; and
(2) all other provisions of this title shall become effective upon
the date of the enactment of this Act.
(b) Grace Period for State Law Changes.--The provisions of this title
shall become effective with respect to a State on the later of--
(1) the date specified in this title, or
(2) the effective date of laws enacted by the legislature of such
State implementing such provisions,
but in no event later than the 1st day of the 1st calendar quarter beginning
after the close of the 1st regular session of the State legislature that
begins after the date of the enactment of this Act. For purposes of the
previous sentence, in the case of a State that has a 2-year legislative
session, each year of such session shall be deemed to be a separate regular
session of the State legislature.
(c) Grace Period for State Constitutional Amendment.--A State shall not
be found out of compliance with any requirement enacted by this title if the
State is unable to so comply without amending the State constitution until
the earlier of--
(1) 1 year after the effective date of the necessary State
constitutional amendment; or
(2) 5 years after the date of the enactment of this Act.
(d) Conforming Amendments.--
(1) The following provisions are amended by striking "absent" each
place it appears and inserting "noncustodial":
(A) Section 451 (42 U.S.C. 651).
(B) Subsections (a)(1), (a)(8), (a)(10)(E), (a)(10)(F), (f), and
(h) of section 452 (42 U.S.C. 652).
(C) Section 453(f) (42 U.S.C. 653(f)).
(D) Paragraphs (8), (13), and (21)(A) of section 454 (42 U.S.C.
654).
(E) Section 455(e)(1) (42 U.S.C. 655(e)(1)).
(F) Section 458(a) (42 U.S.C. 658(a)).
(G) Subsections (a), (b), and (c) of section 463 (42 U.S.C. 663).
(H) Subsections (a)(3)(A), (a)(3)(C), (a)(6), and (a)(8)(B)(ii),
the last sentence of subsection (a), and subsections (b)(1),
(b)(3)(B), (b)(3)(B)(i), (b)(6)(A)(i), (b)(9), and (e) of section 466
(42 U.S.C. 666).
(2) The following provisions are amended by striking "an absent" each
place it appears and inserting "a noncustodial":
(A) Paragraphs (2) and (3) of section 453(c) (42 U.S.C. 653(c)).
(B) Subparagraphs (B) and (C) of section 454(9) (42 U.S.C.
654(9)).
(C) Section 456(a)(3) (42 U.S.C. 656(a)(3)).
(D) Subsections (a)(3)(A), (a)(6), (a)(8)(B)(i), (b)(3)(A), and
(b)(3)(B) of section 466 (42 U.S.C. 666).
(E) Paragraphs (2) and (4) of section 469(b) (42 U.S.C. 669(b)).
TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE AND IMMIGRATION.
The Congress makes the following statements concerning national policy
with respect to welfare and immigration:
(1) Self-sufficiency has been a basic principle of United States
immigration law since this country's earliest immigration statutes.
(2) It continues to be the immigration policy of the United States
that--
(A) aliens within the Nation's borders not depend on public
resources to meet their needs, but rather rely on their own
capabilities and the resources of their families, their sponsors, and
private organizations, and
(B) the availability of public benefits not constitute an
incentive for immigration to the United States.
(3) Despite the principle of self-sufficiency, aliens have been
applying for and receiving public benefits from Federal, State, and local
governments at increasing rates.
(4) Current eligibility rules for public assistance and unenforceable
financial support agreements have proved wholly incapable of assuring
that individual aliens not burden the public benefits system.
(5) It is a compelling government interest to enact new rules for
eligibility and sponsorship agreements in order to assure that aliens be
self-reliant in accordance with national immigration policy.
(6) It is a compelling government interest to remove the incentive
for illegal immigration provided by the availability of public benefits.
(7) With respect to the State authority to make determinations
concerning the eligibility of qualified aliens for public benefits in
this title, a State that chooses to follow the Federal classification in
determining the eligibility of such aliens for public assistance shall be
considered to have chosen the least restrictive means available for
achieving the compelling governmental interest of assuring that aliens be
self-reliant in accordance with national immigration policy.
Subtitle A--Eligibility for Federal Benefits
SEC. 401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR FEDERAL PUBLIC
BENEFITS.
(a) In General.--Notwithstanding any other provision of law and except as
provided in subsection (b), an alien who is not a qualified alien (as defined
in section 431) is not eligible for any Federal public benefit (as defined in
subsection (c)).
(b) Exceptions.--
(1) Subsection (a) shall not apply with respect to the following
Federal public benefits:
(A) Medical assistance under title XIX of the Social Security Act
(or any successor program to such title) for care and services that
are necessary for the treatment of an emergency medical condition (as
defined in section 1903(v)(3) of such Act) of the alien involved and
are not related to an organ transplant procedure, if the alien
involved otherwise meets the eligibility requirements for medical
assistance under the State plan approved under such title (other than
the requirement of the receipt of aid or assistance under title IV of
such Act, supplemental security income benefits under title XVI of
such Act, or a State supplementary payment).
(B) Short-term, non-cash, in-kind emergency disaster relief.
(C) Public health assistance (not including any as