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WELFARE AND MEDICAID REFORM ACT OF 1996
(House of Representatives - July 18, 1996)

Text of this article available as: TXT PDF [Pages H7907-H7990] WELFARE AND MEDICAID REFORM ACT OF 1996 The SPEAKER pro tempore. Pursuant to House Resolution 482 and rule XXIII, the Chair declares the House in the Committee of the Whole House on the State of the Union for the further consideration of the bill, H.R. 3734. {time} 1407 in the committee of the whole Accordingly the House resolved itself into the Committee of the Whole House on the State of the Union for the further consideration of the bill (H.R. 3734) to provide for reconciliation pursuant to section 201(a)(1) of the concurrent resolution on the budget for fiscal year 1997, with Ms. Greene of Utah in the chair. The Clerk read the title of the bill. The CHAIRMAN. When the Committee of the Whole rose earlier today, the amendment printed in part 2 of House Report 104-686 offered by the gentleman from Ohio [Mr. Ney] had been disposed of. amendment in the nature of a substitute offered by mr. tanner Mr. TANNER. Madam Chairman, as the designee of the minority leader, I offer an amendment in the nature of a substitute. The CHAIRMAN. The Clerk will designate the amendment. The text of the amendment in the nature of a substitute is as follows: Amendment in the nature of a substitute offered by Mr. Tanner: Strike out all after the enacting clause and insert: SECTION 1. SHORT TITLE. This Act may be cited as the ``Bipartisan Welfare Reform Act of 1996''. SEC. 2. TABLE OF CONTENTS. The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I--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. Disclosure of receipt of Federal funds. Sec. 113. Modifications to the job opportunities for certain low-income individuals program. Sec. 114. Secretarial submission of legislative proposal for technical and conforming amendments. Sec. 115. Application of current AFDC standards under medicaid program. 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. Verification of eligibility for certain SSI disability benefits. Sec. 204. Treatment of prisoners. Sec. 205. Effective date of application for benefits. Sec. 206. Installment payment of large past-due supplemental security income benefits. [[Page H7908]] Sec. 207. Recovery of supplemental security income overpayments from social security 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. Modification respecting parental income deemed to disabled children. Sec. 216. Graduated benefits for additional children. Subtitle C--State Supplementation Programs Sec. 221. Repeal of maintenance of effort requirements applicable to optional State programs for supplementation of SSI benefits. Subtitle D--Studies Regarding Supplemental Security Income Program Sec. 231. Annual report on the supplemental security income program. Sec. 232. Study of disability determination process. Sec. 233. Study by General Accounting Office. Subtitle E--National Commission on the Future of Disability Sec. 241. Establishment. Sec. 242. Duties of the Commission. Sec. 243. Membership. Sec. 244. Staff and support services. Sec. 245. Powers of Commission. Sec. 246. Reports. Sec. 247. Termination. Sec. 248. Authorization of appropriations. 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 and 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 temporary family 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 child 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. Subtitle H--Medical Support Sec. 376. Correction to ERISA definition of medical child support order. Sec. 377. Enforcement of orders for health care coverage. Subtitle I--Enhancing Responsibility and Opportunity for Non- Residential Parents Sec. 381. Grants to States for access and visitation programs. Subtitle J--Effect of Enactment Sec. 391. Effective dates. 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 certain 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 for purposes of medicaid eligibility. Sec. 422. Authority for States to provide for attribution of sponsor's income and resources to the alien with respect to State programs. Sec. 423. Requirements for sponsor's affidavit of support. Sec. 424. Cosignature of alien student loans. 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. Sec. 436. Title inapplicable to programs specified by Attorney General. Sec. 437. Title inapplicable to programs of nonprofit charitable organizations. Subtitle E--Conforming Amendments Sec. 441. Conforming amendments relating to assisted housing. TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS Sec. 501. Reductions. Sec. 502. Reductions in Federal bureaucracy. Sec. 503. Reducing personnel in Washington, D.C. area. TITLE VI--REFORM OF PUBLIC HOUSING Sec. 601. Failure to comply with other welfare and public assistance programs. Sec. 602. Fraud under means-tested welfare and public assistance programs. Sec. 603. Annual adjustment factors for operating costs only; restraint on rent increases. Sec. 604. Effective date. TITLE VII--CHILD CARE Sec. 701. Short title and references. Sec. 702. Goals. Sec. 703. Authorization of appropriations. Sec. 704. Lead agency. Sec. 705. Application and plan. Sec. 706. Limitation on State allotments. Sec. 707. Activities to improve the quality of child care. Sec. 708. Repeal of early childhood development and before- and after- school care requirement. Sec. 709. Administration and enforcement. Sec. 710. Payments. Sec. 711. Annual report and audits. Sec. 712. Report by the Secretary. Sec. 713. Allotments. Sec. 714. Definitions. Sec. 715. Repeals. TITLE VIII--CHILD NUTRITION PROGRAMS Subtitle A--National School Lunch Act Sec. 801. Value of food assistance. Sec. 802. Commodity assistance. Sec. 803. State disbursement to schools. Sec. 804. Nutritional and other program requirements. Sec. 805. Free and reduced price policy statement. [[Page H7909]] Sec. 806. Special assistance. Sec. 807. Miscellaneous provisions and definitions. Sec. 808. Summer food service program for children. Sec. 809. Commodity distribution. Sec. 810. Child care food program. Sec. 811. Pilot projects. Sec. 812. Reduction of paperwork. Sec. 813. Information on income eligibility. Sec. 814. Nutrition guidance for child nutrition programs. Sec. 815. Information clearinghouse. Subtitle B--Child Nutrition Act of 1966 Sec. 821. Special milk program. Sec. 822. Reimbursement rates for free and reduced price breakfasts. Sec. 823. Free and reduced price policy statement. Sec. 824. School breakfast program authorization. Sec. 825. State administrative expenses. Sec. 826. Regulations. Sec. 827. Prohibitions. Sec. 828. Miscellaneous provisions and definitions. Sec. 829. Accounts and records. Sec. 830. Special supplemental nutrition program for women, infants, and children. Sec. 831. Cash grants for nutrition education. Sec. 832. Nutrition education and training. Sec. 833. Breastfeeding promotion program. TITLE IX--FOOD STAMP AND RELATED PROGRAMS Sec. 901. Definition of certification period. Sec. 902. Expanded definition of ``coupon''. Sec. 903. Treatment of children living at home. Sec. 904. Adjustment of thrifty food plan. Sec. 905. Definition of homeless individual. Sec. 906. Income Exclusions. Sec. 907. Deductions from income. Sec. 908. Vehicle allowance. Sec. 909. Vendor payments for transitional housing counted as income. Sec. 910. Increased penalties for violating food stamp program requirements. Sec. 911. Disqualification of convicted individuals. Sec. 912. Disqualification. Sec. 913. Caretaker exemption. Sec. 914. Employment and training. Sec. 915. Comparable treatment for disqualification. Sec. 916. Disqualification for receipt of multiple food stamp benefits. Sec. 917. Disqualification of fleeing felons. Sec. 918. Cooperation with child support agencies. Sec. 919. Disqualification relating to child support arrears. Sec. 920. Work requirement for able-bodied recipients. Sec. 921. Encourage electronic benefit transfer systems. Sec. 922. Value of minimum allotment. Sec. 923. Benefits on recertification. Sec. 924. Optional combined allotment for expedited households. Sec. 925. Failure to comply with other means-tested public assistance programs. Sec. 926. Allotments for households residing in centers. Sec. 927. Authority to establish authorization periods. Sec. 928. Specific period for prohibiting participation of stores based on lack of business integrity. Sec. 929. Information for verifying eligibility for authorization. Sec. 930. Waiting period for stores that initially fail to meet authorization criteria. Sec. 931. Operation of food stamp offices. Sec. 932. Mandatory claims collection methods. Sec. 933. Exchange of law enforcement information. Sec. 934. Expedited coupon service. Sec. 935. Withdrawing fair hearing requests. Sec. 936. Income, eligibility, and immigration status verification systems. Sec. 937. Bases for suspensions and disqualifications. Sec. 938. Authority to suspend stores violating program requirements pending administrative and judicial review. Sec. 939. Disqualification of retailers who are disqualified from the WIC program. Sec. 940. Permanent debarment of retailers who intentionally submit falsified applications. Sec. 941. Expanded civil and criminal forfeiture for violations of the food stamp act. Sec. 942. Expanded authority for sharing information provided by retailers. Sec. 943. Limitation of Federal match. Sec. 944. Collection of overissuances. Sec. 945. Standards for administration. Sec. 946. Response to waivers. Sec. 947. Authorization of appropriations. Sec. 948. Authorize States to operate simplified food stamp programs. Sec. 949. Emergency food assistance program. Sec. 950. Food bank demonstration project. Sec. 951. Report on entitlement commodity processing. TITLE X--MISCELLANEOUS Subtitle A--General Provisions Sec. 1001. Expenditure of Federal funds in accordance with laws and procedures applicable to expenditure of State funds. Sec. 1002. Elimination of housing assistance with respect to fugitive felons and probation and parole violators. Sec. 1003. Sense of the Senate regarding enterprise zones. Sec. 1004. Sense of the Senate regarding the inability of the non- custodial parent to pay child support. Sec. 1005. Food stamp eligibility. Sec. 1006. Establishing national goals to prevent teenage pregnancies. Sec. 1007. Sense of the Senate regarding enforcement of statutory rape laws. Sec. 1008. Sanctioning for testing positive for controlled substances. Sec. 1009. Abstinence education. Sec. 1010. Provisions to encourage electronic benefit transfer systems. Sec. 1011. Reduction in block grants to States for social services. Sec. 1012. Efficient use of Federal transportation funds. Sec. 1013. Enhanced Federal match for child welfare automation expenses. Subtitle B--Earned Income Tax Credit Sec. 1021. Earned income credit and other tax benefits denied to individuals failing to provide taxpayer identification numbers. Sec. 1022. Rules relating to denial of earned income credit on basis of disqualified income. Sec. 1023. Modification of adjusted gross income definition for earned income credit. Sec. 1024. Notice of availability required to be provided to applicants and former recipients of AFDC, food stamps, and medicaid. Sec. 1025. Notice of availability of earned income tax credit and dependent care tax credit to be included on W-4 form. Sec. 1026. Advance payment of earned income tax credit through State demonstration programs. 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) 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. [[Page H7910]] (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. (8) 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. (9) 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 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. Part A of title IV (42 U.S.C. 601 et seq.) is amended to read as follows: ``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 meets the requirements of subsection (b) and has been approved by the Secretary with respect to the fiscal year. ``(b) Contents of State Plans.--A plan meets the requirements of this subsection if the plan includes the following: ``(1) Outline of family assistance program.-- ``(A) General provisions.--A written document that outlines how the State will do the following: ``(i) Conduct a program, designed to serve all political subdivisions in the State, 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) Determine, on an objective and equitable basis, the needs of and the amount of assistance to be provided to needy families, and treat families of similar needs and circumstances similarly, subject to subparagraph (B). ``(iii) 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. ``(iv) Ensure that parents and caretakers receiving assistance under the program engage in work activities in accordance with section 407. ``(v) Grant an opportunity for a fair hearing before the State agency to any individual to whom assistance under the program is denied, reduced, or terminated, or whose request for such assistance is not acted on with reasonable promptness. ``(vi) 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. ``(vii) 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. ``(B) Special provisions.-- ``(i) The plan 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 plan 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 plan shall contain an estimate of the number of individuals (if any) who will become ineligible for medical assistance under the State plan approved under title XIX as a result of changes in the rules governing eligibility for the State program funded under this part, and shall indicate the extent (if any) to which the State will provide medical assistance to such individuals, and the scope of such medical assistance. ``(2) Certification that the state will operate a child support enforcement program.--The plan shall include 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 not operate a separate financial support program with state funds targeted at certain child support recipients.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will not operate a separate financial support program with State funds targeted at child support recipients who would be eligible for assistance under the program funded under this part were it not for payments from the State-funded financial assistance program. ``(4) Certification that the state will operate a child protection program.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will operate a child protection program under the State plan approved under part B. ``(5) Certification of the administration of the program.-- The plan shall include 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 working jointly with the State in all phases of the plan and design of welfare services in the State so that services are provided in a manner appropriate to local populations; ``(B) have had at least 60 days to submit comments on the final plan and the design of such services; and ``(C) will not have unfunded mandates imposed on them under such plan. Such certification shall also include assurance that when local elected officials are currently responsible for the administration [[Page H7911]] of welfare services, the local elected officials will be able to plan, design, and administer for their jurisdictions the programs established pursuant to this Act. ``(6) Certification that the state will provide indians with equitable access to assistance.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will provide each Indian who is a member of an Indian tribe in the State that does not have 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. ``(7) Certification of nondisplacement and nonreplacement of employees.--The plan shall include a certification that the implementation of the plan will not result in-- ``(A) the displacement of a currently employed worker or position by an individual to whom assistance is provided under the State program funded under this part; ``(B) the replacement of an employee who has been terminated with an individual to whom assistance is provided under the State program funded under this part; or ``(C) the replacement of an employee who is on layoff from the same position filled by an individual to whom assistance is provided under the State program funded under this part or any equivalent position. ``(c) Approval of State Plans.--The Secretary shall approve any State plan that meets the requirements of subsection (b) if the Secretary determines that operating a State program pursuant to the plan will contribute to achieving the purposes of this part. ``(d) 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, and 2001 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, the Secretary approved under former section 402 an amendment to the former State plan with respect to the provision of emergency assistance in the context of family preservation; or ``(iii) the amount required to be paid to the State under former section 403 (as in effect on September 30, 1995) for 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 aggregate amount required to be paid to the State 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 amount 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 (IV) 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)(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, and 2001 such sums as are necessary for grants under this paragraph. ``(2) Grant to reward states that reduce out-of-wedlock births.-- ``(A) In general.--In addition to any grant under paragraph (1), each eligible State shall be entitled to receive from the Secretary for fiscal year 1998 or any succeeding fiscal year, a grant in an amount equal to the State family assistance grant multiplied by-- ``(i) 5 percent if-- ``(I) the illegitimacy ratio of the State for the fiscal year is at least 1 percentage point lower than the illegitimacy ratio of the State for fiscal year 1995; and ``(II) 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; or ``(ii) 10 percent if-- ``(I) the illegitimacy ratio of the State for the fiscal year is at least 2 percentage points lower than the illegitimacy ratio of the State for fiscal year 1995; and ``(II) 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. ``(B) Illegitimacy ratio.--As used in this paragraph, the term `illegitimacy ratio' means, with respect to a State and a fiscal year-- ``(i) the number of out-of-wedlock births that occurred in the State during the most recent fiscal year for which such information is available; divided by ``(ii) the number of births that occurred in the State during the most recent fiscal year for which such information is available. ``(C) Disregard of changes in data due to changed reporting methods.--For purposes of subparagraph (A), the Secretary shall disregard-- ``(i) any difference between the illegitimacy ratio of a State for a fiscal year and the illegitimacy ratio of the State for fiscal year 1995 which is attributable to a change in State methods of reporting data used to calculate the illegitimacy ratio; and ``(ii) 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. ``(D) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal year 1998 and for each succeeding fiscal year 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 1997 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 1998, 1999, and 2000, 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. [[Page H7912]] ``(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 1997 by reason of clause (i) if the State is not a qualifying State for fiscal year 1997 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 1997, 1998, 1999, and 2000 if-- ``(I) the level of welfare spending per poor person by the State for fiscal year 1996 is less than 35 percent of the national average level of State welfare spending per poor person for fiscal year 1996; or ``(II) the population of the State increased by more than 10 percent from April 1, 1990, to July 1, 1994, as determined by 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 1997, 1998, 1999, and 2000 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 2000. ``(4) Supplemental grant for operation of work program.-- ``(A) Application requirements.--An eligible State may submit to the Secretary an application for additional funds to meet the requirements of section 407 with respect to a fiscal year if the Secretary determines that-- ``(i) the total expenditures of the State to meet such requirements for the fiscal year exceed the total expenditures of the State during fiscal year 1994 to carry out part F (as in effect on September 30, 1994); ``(ii) the work programs of the State under section 407 are coordinated with the job training programs established by title II of the Job Training Partnership Act, or (if such title is repealed by the Consolidated and Reformed Education, Employment, and Rehabilitation Systems Act) the Consolidated and Reformed Education, Employment, and Rehabilitation Systems Act; and ``(iii) the State needs additional funds to meet such requirements or certifies that it intends to exceed such requirements. ``(B) Grants.--The Secretary may make a grant to any eligible State which submits an application in accordance with subparagraph (A) of this paragraph for a fiscal year in an amount equal to the Federal medical assistance percentage of the amount (if any) by which the total expenditures of the State to meet or exceed the requirements of section 407 for the fiscal year exceeds the total expenditures of the State during fiscal year 1994 to carry out part F (as in effect on September 30, 1994). ``(C) Regulations.--The Secretary shall issue regulations providing for the equitable distribution of funds under this paragraph. ``(D) Appropriations.-- ``(i) In general.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated to the Secretary for grants under this paragraph-- ``(I) $150,000,000 for fiscal year 1999; ``(II) $850,000,000 for fiscal year 2000; ``(III) $900,000,000 for fiscal year 2001; and ``(IV) $1,100,000,000 for fiscal year 2002 and for each succeeding fiscal year. ``(ii) Availability.--Amounts appropriated pursuant to clause (i) shall remain available until expended. ``(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.-- ``(A) Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal years 1997, 1998, 1999, 2000, 2001 and 2002 such sums as are necessary for payment to the Fund in a total amount not to exceed $2,000,000,000, except as provided in subparagraphs (B) and (C). ``(B) If-- ``(i) the average rate of total unemployment in the United States for the most recent 3 months for which data for all States are available is not less than 7 percent; and ``(ii) there are insufficient amounts in the Fund to pay all State claims under paragraph (4) for a quarter in that fiscal year; then there are appropriated for that fiscal year, in addition to amounts appropriated under paragraph (2)(A), such sums as equal the difference between the amount needed to pay all State claims for that quarter and the amount remaining in the Fund. ``(C) If-- ``(i)(I)(aa) the average rate of total unemployment in a State (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all States are published is not less than 9 percent; or ``(bb) the average rate of total unemployment in such State (seasonally adjusted) for the 3-month period is not less than 120 percent of such average rate for either of the prior 2 years; or ``(II) the average number of persons in the State receiving assistance under the food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977, for the most recent 3-month period for which data are available is not less than 120 percent of such average monthly number for fiscal year 1994 or for fiscal year 1995; and ``(ii) there are insufficient amounts in the Fund to pay all State claims under paragraph (4) for a quarter in that fiscal year; then there are appropriated for payment to the Fund for that fiscal year, in addition to amounts appropriated pursuant to paragraph (2)(A), for payments to States described in this subparagraph, the amount by which payments to such States under paragraph (4) would otherwise be reduced under paragraph (8). ``(3) Payments to states.--The method of computing and paying amounts to States from the Fund under this subsection shall be as follows: ``(A) The Secretary shall, before each quarter, estimate the amount to be paid to each State for the quarter from the Fund, such estimate to be based on-- ``(i) a report filed by the State containing an estimate by the State of qualifying State expenditures for the quarter; and ``(ii) such other information as the Secretary may find relevant and reliable. ``(B) The Secretary shall then certify to the Secretary of the Treasury the amount so estimated by the Secretary. ``(C) The Secretary of the Treasury shall thereupon pay to the State, at the time or times fixed by the Secretary, the amount so certified. ``(4) Grants.--From amounts appropriated pursuant to paragraph (2), the Secretary of the Treasury shall pay to each eligible State for a fiscal year an amount equal to the lesser of-- ``(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 the expenditures of the State in the fiscal year under the State program funded under this part and expenditures on cash assistance under other State programs with respect to eligible families (as defined in section 409(a)(5)(B)(i)(III)) exceed historic State expenditures (as defined in section 409(a)(5)(B)(iii)); or ``(B) the number of percentage points (if any) by which 40 percent of the State family assistance grant for the fiscal year exceeds any payment to the State for the fiscal year under section 403(a)(3). [[Page H7913]] ``(5) Annual reconciliation.--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 (4) during the fiscal year exceeds the lesser of-- ``(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 the expenditures of the State in the fiscal year under the State program funded under this part and expenditures on cash assistance under other State programs with respect to eligible families (as defined in section 409(a)(5)(B)(i)(III)) exceed historic State expenditures (as defined in section 409(a)(5)(B)(iii)); or ``(B) the amount (if any) by which 40 percent of the State family assistance grant for the fiscal year exceeds any payment to the State for the fiscal year under section 403(a)(3). ``(6) Eligible state.--For purposes of this subsection, a State is an eligible State for a fiscal year, if-- ``(A)(i) the average rate of 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 is not less than 6.5 percent; and ``(ii) the average rate of total unemployment in such State (seasonally adjusted) for the 3-month period is not less than 110 percent of such average rate for either 1994 or 1995; or ``(B)(i) the average number of persons in the State receiving assistance under the food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977, for the most recent 3-month period for which data are available is not less than 110 percent of the product of-- ``(I) such average monthly number for either fiscal year 1994 or fiscal year 1995; and ``(II) the number of percentage points (if any) by which 100 percent exceeds the percentage by which the Bipartisan Welfare Reform Act of 1996, had it been in effect, would have reduced such average monthly number in such State in such fiscal year, as most recently estimated by the Secretary of Agriculture before the date of the enactment of such Act; and ``(ii) the State is not participating in the program established under section 23(b) of the Food Stamp Act of 1977. ``(7) State.--As used in this subsection, the term `State' means each of the 50 States of the United States and the District of Columbia. ``(8) Payment priority.--Claims by States for payment from the Fund shall be filed quarterly. If the total amount of claims for any quarter exceeds the amount available for payment from the fund, claims shall be paid on a pro rata basis in a manner to be determined by the Secretary, except in the case of a State described in paragraph (2)(C). ``(9) Annual reports.--The Secretary of the Treasury shall annually report to 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 20 percent of the amount of the grant made to the State under section 403 for a fiscal year to carry out a State program pursuant to the Child Care and Development Block Grant Act of 1990. ``(2) Applicable rules.--Any amount paid to the State under this part that is used to carry out a State program pursuant to the Child Care and Development Block Grant Act of 1990 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 such Act to carry out the program. ``(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. ``SEC. 405. ADMINISTRATIVE PROVISIONS. ``(a) Quarterly.--The Secretary shall pay each grant payable to a State under section 403 in quarterly installments. ``(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 info

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WELFARE AND MEDICAID REFORM ACT OF 1996
(House of Representatives - July 18, 1996)

Text of this article available as: TXT PDF [Pages H7907-H7990] WELFARE AND MEDICAID REFORM ACT OF 1996 The SPEAKER pro tempore. Pursuant to House Resolution 482 and rule XXIII, the Chair declares the House in the Committee of the Whole House on the State of the Union for the further consideration of the bill, H.R. 3734. {time} 1407 in the committee of the whole Accordingly the House resolved itself into the Committee of the Whole House on the State of the Union for the further consideration of the bill (H.R. 3734) to provide for reconciliation pursuant to section 201(a)(1) of the concurrent resolution on the budget for fiscal year 1997, with Ms. Greene of Utah in the chair. The Clerk read the title of the bill. The CHAIRMAN. When the Committee of the Whole rose earlier today, the amendment printed in part 2 of House Report 104-686 offered by the gentleman from Ohio [Mr. Ney] had been disposed of. amendment in the nature of a substitute offered by mr. tanner Mr. TANNER. Madam Chairman, as the designee of the minority leader, I offer an amendment in the nature of a substitute. The CHAIRMAN. The Clerk will designate the amendment. The text of the amendment in the nature of a substitute is as follows: Amendment in the nature of a substitute offered by Mr. Tanner: Strike out all after the enacting clause and insert: SECTION 1. SHORT TITLE. This Act may be cited as the ``Bipartisan Welfare Reform Act of 1996''. SEC. 2. TABLE OF CONTENTS. The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I--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. Disclosure of receipt of Federal funds. Sec. 113. Modifications to the job opportunities for certain low-income individuals program. Sec. 114. Secretarial submission of legislative proposal for technical and conforming amendments. Sec. 115. Application of current AFDC standards under medicaid program. 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. Verification of eligibility for certain SSI disability benefits. Sec. 204. Treatment of prisoners. Sec. 205. Effective date of application for benefits. Sec. 206. Installment payment of large past-due supplemental security income benefits. [[Page H7908]] Sec. 207. Recovery of supplemental security income overpayments from social security 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. Modification respecting parental income deemed to disabled children. Sec. 216. Graduated benefits for additional children. Subtitle C--State Supplementation Programs Sec. 221. Repeal of maintenance of effort requirements applicable to optional State programs for supplementation of SSI benefits. Subtitle D--Studies Regarding Supplemental Security Income Program Sec. 231. Annual report on the supplemental security income program. Sec. 232. Study of disability determination process. Sec. 233. Study by General Accounting Office. Subtitle E--National Commission on the Future of Disability Sec. 241. Establishment. Sec. 242. Duties of the Commission. Sec. 243. Membership. Sec. 244. Staff and support services. Sec. 245. Powers of Commission. Sec. 246. Reports. Sec. 247. Termination. Sec. 248. Authorization of appropriations. 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 and 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 temporary family 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 child 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. Subtitle H--Medical Support Sec. 376. Correction to ERISA definition of medical child support order. Sec. 377. Enforcement of orders for health care coverage. Subtitle I--Enhancing Responsibility and Opportunity for Non- Residential Parents Sec. 381. Grants to States for access and visitation programs. Subtitle J--Effect of Enactment Sec. 391. Effective dates. 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 certain 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 for purposes of medicaid eligibility. Sec. 422. Authority for States to provide for attribution of sponsor's income and resources to the alien with respect to State programs. Sec. 423. Requirements for sponsor's affidavit of support. Sec. 424. Cosignature of alien student loans. 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. Sec. 436. Title inapplicable to programs specified by Attorney General. Sec. 437. Title inapplicable to programs of nonprofit charitable organizations. Subtitle E--Conforming Amendments Sec. 441. Conforming amendments relating to assisted housing. TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS Sec. 501. Reductions. Sec. 502. Reductions in Federal bureaucracy. Sec. 503. Reducing personnel in Washington, D.C. area. TITLE VI--REFORM OF PUBLIC HOUSING Sec. 601. Failure to comply with other welfare and public assistance programs. Sec. 602. Fraud under means-tested welfare and public assistance programs. Sec. 603. Annual adjustment factors for operating costs only; restraint on rent increases. Sec. 604. Effective date. TITLE VII--CHILD CARE Sec. 701. Short title and references. Sec. 702. Goals. Sec. 703. Authorization of appropriations. Sec. 704. Lead agency. Sec. 705. Application and plan. Sec. 706. Limitation on State allotments. Sec. 707. Activities to improve the quality of child care. Sec. 708. Repeal of early childhood development and before- and after- school care requirement. Sec. 709. Administration and enforcement. Sec. 710. Payments. Sec. 711. Annual report and audits. Sec. 712. Report by the Secretary. Sec. 713. Allotments. Sec. 714. Definitions. Sec. 715. Repeals. TITLE VIII--CHILD NUTRITION PROGRAMS Subtitle A--National School Lunch Act Sec. 801. Value of food assistance. Sec. 802. Commodity assistance. Sec. 803. State disbursement to schools. Sec. 804. Nutritional and other program requirements. Sec. 805. Free and reduced price policy statement. [[Page H7909]] Sec. 806. Special assistance. Sec. 807. Miscellaneous provisions and definitions. Sec. 808. Summer food service program for children. Sec. 809. Commodity distribution. Sec. 810. Child care food program. Sec. 811. Pilot projects. Sec. 812. Reduction of paperwork. Sec. 813. Information on income eligibility. Sec. 814. Nutrition guidance for child nutrition programs. Sec. 815. Information clearinghouse. Subtitle B--Child Nutrition Act of 1966 Sec. 821. Special milk program. Sec. 822. Reimbursement rates for free and reduced price breakfasts. Sec. 823. Free and reduced price policy statement. Sec. 824. School breakfast program authorization. Sec. 825. State administrative expenses. Sec. 826. Regulations. Sec. 827. Prohibitions. Sec. 828. Miscellaneous provisions and definitions. Sec. 829. Accounts and records. Sec. 830. Special supplemental nutrition program for women, infants, and children. Sec. 831. Cash grants for nutrition education. Sec. 832. Nutrition education and training. Sec. 833. Breastfeeding promotion program. TITLE IX--FOOD STAMP AND RELATED PROGRAMS Sec. 901. Definition of certification period. Sec. 902. Expanded definition of ``coupon''. Sec. 903. Treatment of children living at home. Sec. 904. Adjustment of thrifty food plan. Sec. 905. Definition of homeless individual. Sec. 906. Income Exclusions. Sec. 907. Deductions from income. Sec. 908. Vehicle allowance. Sec. 909. Vendor payments for transitional housing counted as income. Sec. 910. Increased penalties for violating food stamp program requirements. Sec. 911. Disqualification of convicted individuals. Sec. 912. Disqualification. Sec. 913. Caretaker exemption. Sec. 914. Employment and training. Sec. 915. Comparable treatment for disqualification. Sec. 916. Disqualification for receipt of multiple food stamp benefits. Sec. 917. Disqualification of fleeing felons. Sec. 918. Cooperation with child support agencies. Sec. 919. Disqualification relating to child support arrears. Sec. 920. Work requirement for able-bodied recipients. Sec. 921. Encourage electronic benefit transfer systems. Sec. 922. Value of minimum allotment. Sec. 923. Benefits on recertification. Sec. 924. Optional combined allotment for expedited households. Sec. 925. Failure to comply with other means-tested public assistance programs. Sec. 926. Allotments for households residing in centers. Sec. 927. Authority to establish authorization periods. Sec. 928. Specific period for prohibiting participation of stores based on lack of business integrity. Sec. 929. Information for verifying eligibility for authorization. Sec. 930. Waiting period for stores that initially fail to meet authorization criteria. Sec. 931. Operation of food stamp offices. Sec. 932. Mandatory claims collection methods. Sec. 933. Exchange of law enforcement information. Sec. 934. Expedited coupon service. Sec. 935. Withdrawing fair hearing requests. Sec. 936. Income, eligibility, and immigration status verification systems. Sec. 937. Bases for suspensions and disqualifications. Sec. 938. Authority to suspend stores violating program requirements pending administrative and judicial review. Sec. 939. Disqualification of retailers who are disqualified from the WIC program. Sec. 940. Permanent debarment of retailers who intentionally submit falsified applications. Sec. 941. Expanded civil and criminal forfeiture for violations of the food stamp act. Sec. 942. Expanded authority for sharing information provided by retailers. Sec. 943. Limitation of Federal match. Sec. 944. Collection of overissuances. Sec. 945. Standards for administration. Sec. 946. Response to waivers. Sec. 947. Authorization of appropriations. Sec. 948. Authorize States to operate simplified food stamp programs. Sec. 949. Emergency food assistance program. Sec. 950. Food bank demonstration project. Sec. 951. Report on entitlement commodity processing. TITLE X--MISCELLANEOUS Subtitle A--General Provisions Sec. 1001. Expenditure of Federal funds in accordance with laws and procedures applicable to expenditure of State funds. Sec. 1002. Elimination of housing assistance with respect to fugitive felons and probation and parole violators. Sec. 1003. Sense of the Senate regarding enterprise zones. Sec. 1004. Sense of the Senate regarding the inability of the non- custodial parent to pay child support. Sec. 1005. Food stamp eligibility. Sec. 1006. Establishing national goals to prevent teenage pregnancies. Sec. 1007. Sense of the Senate regarding enforcement of statutory rape laws. Sec. 1008. Sanctioning for testing positive for controlled substances. Sec. 1009. Abstinence education. Sec. 1010. Provisions to encourage electronic benefit transfer systems. Sec. 1011. Reduction in block grants to States for social services. Sec. 1012. Efficient use of Federal transportation funds. Sec. 1013. Enhanced Federal match for child welfare automation expenses. Subtitle B--Earned Income Tax Credit Sec. 1021. Earned income credit and other tax benefits denied to individuals failing to provide taxpayer identification numbers. Sec. 1022. Rules relating to denial of earned income credit on basis of disqualified income. Sec. 1023. Modification of adjusted gross income definition for earned income credit. Sec. 1024. Notice of availability required to be provided to applicants and former recipients of AFDC, food stamps, and medicaid. Sec. 1025. Notice of availability of earned income tax credit and dependent care tax credit to be included on W-4 form. Sec. 1026. Advance payment of earned income tax credit through State demonstration programs. 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) 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. [[Page H7910]] (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. (8) 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. (9) 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 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. Part A of title IV (42 U.S.C. 601 et seq.) is amended to read as follows: ``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 meets the requirements of subsection (b) and has been approved by the Secretary with respect to the fiscal year. ``(b) Contents of State Plans.--A plan meets the requirements of this subsection if the plan includes the following: ``(1) Outline of family assistance program.-- ``(A) General provisions.--A written document that outlines how the State will do the following: ``(i) Conduct a program, designed to serve all political subdivisions in the State, 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) Determine, on an objective and equitable basis, the needs of and the amount of assistance to be provided to needy families, and treat families of similar needs and circumstances similarly, subject to subparagraph (B). ``(iii) 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. ``(iv) Ensure that parents and caretakers receiving assistance under the program engage in work activities in accordance with section 407. ``(v) Grant an opportunity for a fair hearing before the State agency to any individual to whom assistance under the program is denied, reduced, or terminated, or whose request for such assistance is not acted on with reasonable promptness. ``(vi) 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. ``(vii) 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. ``(B) Special provisions.-- ``(i) The plan 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 plan 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 plan shall contain an estimate of the number of individuals (if any) who will become ineligible for medical assistance under the State plan approved under title XIX as a result of changes in the rules governing eligibility for the State program funded under this part, and shall indicate the extent (if any) to which the State will provide medical assistance to such individuals, and the scope of such medical assistance. ``(2) Certification that the state will operate a child support enforcement program.--The plan shall include 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 not operate a separate financial support program with state funds targeted at certain child support recipients.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will not operate a separate financial support program with State funds targeted at child support recipients who would be eligible for assistance under the program funded under this part were it not for payments from the State-funded financial assistance program. ``(4) Certification that the state will operate a child protection program.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will operate a child protection program under the State plan approved under part B. ``(5) Certification of the administration of the program.-- The plan shall include 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 working jointly with the State in all phases of the plan and design of welfare services in the State so that services are provided in a manner appropriate to local populations; ``(B) have had at least 60 days to submit comments on the final plan and the design of such services; and ``(C) will not have unfunded mandates imposed on them under such plan. Such certification shall also include assurance that when local elected officials are currently responsible for the administration [[Page H7911]] of welfare services, the local elected officials will be able to plan, design, and administer for their jurisdictions the programs established pursuant to this Act. ``(6) Certification that the state will provide indians with equitable access to assistance.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will provide each Indian who is a member of an Indian tribe in the State that does not have 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. ``(7) Certification of nondisplacement and nonreplacement of employees.--The plan shall include a certification that the implementation of the plan will not result in-- ``(A) the displacement of a currently employed worker or position by an individual to whom assistance is provided under the State program funded under this part; ``(B) the replacement of an employee who has been terminated with an individual to whom assistance is provided under the State program funded under this part; or ``(C) the replacement of an employee who is on layoff from the same position filled by an individual to whom assistance is provided under the State program funded under this part or any equivalent position. ``(c) Approval of State Plans.--The Secretary shall approve any State plan that meets the requirements of subsection (b) if the Secretary determines that operating a State program pursuant to the plan will contribute to achieving the purposes of this part. ``(d) 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, and 2001 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, the Secretary approved under former section 402 an amendment to the former State plan with respect to the provision of emergency assistance in the context of family preservation; or ``(iii) the amount required to be paid to the State under former section 403 (as in effect on September 30, 1995) for 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 aggregate amount required to be paid to the State 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 amount 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 (IV) 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)(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, and 2001 such sums as are necessary for grants under this paragraph. ``(2) Grant to reward states that reduce out-of-wedlock births.-- ``(A) In general.--In addition to any grant under paragraph (1), each eligible State shall be entitled to receive from the Secretary for fiscal year 1998 or any succeeding fiscal year, a grant in an amount equal to the State family assistance grant multiplied by-- ``(i) 5 percent if-- ``(I) the illegitimacy ratio of the State for the fiscal year is at least 1 percentage point lower than the illegitimacy ratio of the State for fiscal year 1995; and ``(II) 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; or ``(ii) 10 percent if-- ``(I) the illegitimacy ratio of the State for the fiscal year is at least 2 percentage points lower than the illegitimacy ratio of the State for fiscal year 1995; and ``(II) 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. ``(B) Illegitimacy ratio.--As used in this paragraph, the term `illegitimacy ratio' means, with respect to a State and a fiscal year-- ``(i) the number of out-of-wedlock births that occurred in the State during the most recent fiscal year for which such information is available; divided by ``(ii) the number of births that occurred in the State during the most recent fiscal year for which such information is available. ``(C) Disregard of changes in data due to changed reporting methods.--For purposes of subparagraph (A), the Secretary shall disregard-- ``(i) any difference between the illegitimacy ratio of a State for a fiscal year and the illegitimacy ratio of the State for fiscal year 1995 which is attributable to a change in State methods of reporting data used to calculate the illegitimacy ratio; and ``(ii) 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. ``(D) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal year 1998 and for each succeeding fiscal year 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 1997 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 1998, 1999, and 2000, 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. [[Page H7912]] ``(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 1997 by reason of clause (i) if the State is not a qualifying State for fiscal year 1997 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 1997, 1998, 1999, and 2000 if-- ``(I) the level of welfare spending per poor person by the State for fiscal year 1996 is less than 35 percent of the national average level of State welfare spending per poor person for fiscal year 1996; or ``(II) the population of the State increased by more than 10 percent from April 1, 1990, to July 1, 1994, as determined by 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 1997, 1998, 1999, and 2000 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 2000. ``(4) Supplemental grant for operation of work program.-- ``(A) Application requirements.--An eligible State may submit to the Secretary an application for additional funds to meet the requirements of section 407 with respect to a fiscal year if the Secretary determines that-- ``(i) the total expenditures of the State to meet such requirements for the fiscal year exceed the total expenditures of the State during fiscal year 1994 to carry out part F (as in effect on September 30, 1994); ``(ii) the work programs of the State under section 407 are coordinated with the job training programs established by title II of the Job Training Partnership Act, or (if such title is repealed by the Consolidated and Reformed Education, Employment, and Rehabilitation Systems Act) the Consolidated and Reformed Education, Employment, and Rehabilitation Systems Act; and ``(iii) the State needs additional funds to meet such requirements or certifies that it intends to exceed such requirements. ``(B) Grants.--The Secretary may make a grant to any eligible State which submits an application in accordance with subparagraph (A) of this paragraph for a fiscal year in an amount equal to the Federal medical assistance percentage of the amount (if any) by which the total expenditures of the State to meet or exceed the requirements of section 407 for the fiscal year exceeds the total expenditures of the State during fiscal year 1994 to carry out part F (as in effect on September 30, 1994). ``(C) Regulations.--The Secretary shall issue regulations providing for the equitable distribution of funds under this paragraph. ``(D) Appropriations.-- ``(i) In general.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated to the Secretary for grants under this paragraph-- ``(I) $150,000,000 for fiscal year 1999; ``(II) $850,000,000 for fiscal year 2000; ``(III) $900,000,000 for fiscal year 2001; and ``(IV) $1,100,000,000 for fiscal year 2002 and for each succeeding fiscal year. ``(ii) Availability.--Amounts appropriated pursuant to clause (i) shall remain available until expended. ``(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.-- ``(A) Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal years 1997, 1998, 1999, 2000, 2001 and 2002 such sums as are necessary for payment to the Fund in a total amount not to exceed $2,000,000,000, except as provided in subparagraphs (B) and (C). ``(B) If-- ``(i) the average rate of total unemployment in the United States for the most recent 3 months for which data for all States are available is not less than 7 percent; and ``(ii) there are insufficient amounts in the Fund to pay all State claims under paragraph (4) for a quarter in that fiscal year; then there are appropriated for that fiscal year, in addition to amounts appropriated under paragraph (2)(A), such sums as equal the difference between the amount needed to pay all State claims for that quarter and the amount remaining in the Fund. ``(C) If-- ``(i)(I)(aa) the average rate of total unemployment in a State (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all States are published is not less than 9 percent; or ``(bb) the average rate of total unemployment in such State (seasonally adjusted) for the 3-month period is not less than 120 percent of such average rate for either of the prior 2 years; or ``(II) the average number of persons in the State receiving assistance under the food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977, for the most recent 3-month period for which data are available is not less than 120 percent of such average monthly number for fiscal year 1994 or for fiscal year 1995; and ``(ii) there are insufficient amounts in the Fund to pay all State claims under paragraph (4) for a quarter in that fiscal year; then there are appropriated for payment to the Fund for that fiscal year, in addition to amounts appropriated pursuant to paragraph (2)(A), for payments to States described in this subparagraph, the amount by which payments to such States under paragraph (4) would otherwise be reduced under paragraph (8). ``(3) Payments to states.--The method of computing and paying amounts to States from the Fund under this subsection shall be as follows: ``(A) The Secretary shall, before each quarter, estimate the amount to be paid to each State for the quarter from the Fund, such estimate to be based on-- ``(i) a report filed by the State containing an estimate by the State of qualifying State expenditures for the quarter; and ``(ii) such other information as the Secretary may find relevant and reliable. ``(B) The Secretary shall then certify to the Secretary of the Treasury the amount so estimated by the Secretary. ``(C) The Secretary of the Treasury shall thereupon pay to the State, at the time or times fixed by the Secretary, the amount so certified. ``(4) Grants.--From amounts appropriated pursuant to paragraph (2), the Secretary of the Treasury shall pay to each eligible State for a fiscal year an amount equal to the lesser of-- ``(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 the expenditures of the State in the fiscal year under the State program funded under this part and expenditures on cash assistance under other State programs with respect to eligible families (as defined in section 409(a)(5)(B)(i)(III)) exceed historic State expenditures (as defined in section 409(a)(5)(B)(iii)); or ``(B) the number of percentage points (if any) by which 40 percent of the State family assistance grant for the fiscal year exceeds any payment to the State for the fiscal year under section 403(a)(3). [[Page H7913]] ``(5) Annual reconciliation.--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 (4) during the fiscal year exceeds the lesser of-- ``(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 the expenditures of the State in the fiscal year under the State program funded under this part and expenditures on cash assistance under other State programs with respect to eligible families (as defined in section 409(a)(5)(B)(i)(III)) exceed historic State expenditures (as defined in section 409(a)(5)(B)(iii)); or ``(B) the amount (if any) by which 40 percent of the State family assistance grant for the fiscal year exceeds any payment to the State for the fiscal year under section 403(a)(3). ``(6) Eligible state.--For purposes of this subsection, a State is an eligible State for a fiscal year, if-- ``(A)(i) the average rate of 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 is not less than 6.5 percent; and ``(ii) the average rate of total unemployment in such State (seasonally adjusted) for the 3-month period is not less than 110 percent of such average rate for either 1994 or 1995; or ``(B)(i) the average number of persons in the State receiving assistance under the food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977, for the most recent 3-month period for which data are available is not less than 110 percent of the product of-- ``(I) such average monthly number for either fiscal year 1994 or fiscal year 1995; and ``(II) the number of percentage points (if any) by which 100 percent exceeds the percentage by which the Bipartisan Welfare Reform Act of 1996, had it been in effect, would have reduced such average monthly number in such State in such fiscal year, as most recently estimated by the Secretary of Agriculture before the date of the enactment of such Act; and ``(ii) the State is not participating in the program established under section 23(b) of the Food Stamp Act of 1977. ``(7) State.--As used in this subsection, the term `State' means each of the 50 States of the United States and the District of Columbia. ``(8) Payment priority.--Claims by States for payment from the Fund shall be filed quarterly. If the total amount of claims for any quarter exceeds the amount available for payment from the fund, claims shall be paid on a pro rata basis in a manner to be determined by the Secretary, except in the case of a State described in paragraph (2)(C). ``(9) Annual reports.--The Secretary of the Treasury shall annually report to 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 20 percent of the amount of the grant made to the State under section 403 for a fiscal year to carry out a State program pursuant to the Child Care and Development Block Grant Act of 1990. ``(2) Applicable rules.--Any amount paid to the State under this part that is used to carry out a State program pursuant to the Child Care and Development Block Grant Act of 1990 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 such Act to carry out the program. ``(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. ``SEC. 405. ADMINISTRATIVE PROVISIONS. ``(a) Quarterly.--The Secretary shall pay each grant payable to a State under section 403 in quarterly installments. ``(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

Summary:

All articles in House section

WELFARE AND MEDICAID REFORM ACT OF 1996
(House of Representatives - July 18, 1996)

Text of this article available as: TXT PDF [Pages H7907-H7990] WELFARE AND MEDICAID REFORM ACT OF 1996 The SPEAKER pro tempore. Pursuant to House Resolution 482 and rule XXIII, the Chair declares the House in the Committee of the Whole House on the State of the Union for the further consideration of the bill, H.R. 3734. {time} 1407 in the committee of the whole Accordingly the House resolved itself into the Committee of the Whole House on the State of the Union for the further consideration of the bill (H.R. 3734) to provide for reconciliation pursuant to section 201(a)(1) of the concurrent resolution on the budget for fiscal year 1997, with Ms. Greene of Utah in the chair. The Clerk read the title of the bill. The CHAIRMAN. When the Committee of the Whole rose earlier today, the amendment printed in part 2 of House Report 104-686 offered by the gentleman from Ohio [Mr. Ney] had been disposed of. amendment in the nature of a substitute offered by mr. tanner Mr. TANNER. Madam Chairman, as the designee of the minority leader, I offer an amendment in the nature of a substitute. The CHAIRMAN. The Clerk will designate the amendment. The text of the amendment in the nature of a substitute is as follows: Amendment in the nature of a substitute offered by Mr. Tanner: Strike out all after the enacting clause and insert: SECTION 1. SHORT TITLE. This Act may be cited as the ``Bipartisan Welfare Reform Act of 1996''. SEC. 2. TABLE OF CONTENTS. The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I--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. Disclosure of receipt of Federal funds. Sec. 113. Modifications to the job opportunities for certain low-income individuals program. Sec. 114. Secretarial submission of legislative proposal for technical and conforming amendments. Sec. 115. Application of current AFDC standards under medicaid program. 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. Verification of eligibility for certain SSI disability benefits. Sec. 204. Treatment of prisoners. Sec. 205. Effective date of application for benefits. Sec. 206. Installment payment of large past-due supplemental security income benefits. [[Page H7908]] Sec. 207. Recovery of supplemental security income overpayments from social security 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. Modification respecting parental income deemed to disabled children. Sec. 216. Graduated benefits for additional children. Subtitle C--State Supplementation Programs Sec. 221. Repeal of maintenance of effort requirements applicable to optional State programs for supplementation of SSI benefits. Subtitle D--Studies Regarding Supplemental Security Income Program Sec. 231. Annual report on the supplemental security income program. Sec. 232. Study of disability determination process. Sec. 233. Study by General Accounting Office. Subtitle E--National Commission on the Future of Disability Sec. 241. Establishment. Sec. 242. Duties of the Commission. Sec. 243. Membership. Sec. 244. Staff and support services. Sec. 245. Powers of Commission. Sec. 246. Reports. Sec. 247. Termination. Sec. 248. Authorization of appropriations. 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 and 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 temporary family 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 child 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. Subtitle H--Medical Support Sec. 376. Correction to ERISA definition of medical child support order. Sec. 377. Enforcement of orders for health care coverage. Subtitle I--Enhancing Responsibility and Opportunity for Non- Residential Parents Sec. 381. Grants to States for access and visitation programs. Subtitle J--Effect of Enactment Sec. 391. Effective dates. 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 certain 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 for purposes of medicaid eligibility. Sec. 422. Authority for States to provide for attribution of sponsor's income and resources to the alien with respect to State programs. Sec. 423. Requirements for sponsor's affidavit of support. Sec. 424. Cosignature of alien student loans. 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. Sec. 436. Title inapplicable to programs specified by Attorney General. Sec. 437. Title inapplicable to programs of nonprofit charitable organizations. Subtitle E--Conforming Amendments Sec. 441. Conforming amendments relating to assisted housing. TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS Sec. 501. Reductions. Sec. 502. Reductions in Federal bureaucracy. Sec. 503. Reducing personnel in Washington, D.C. area. TITLE VI--REFORM OF PUBLIC HOUSING Sec. 601. Failure to comply with other welfare and public assistance programs. Sec. 602. Fraud under means-tested welfare and public assistance programs. Sec. 603. Annual adjustment factors for operating costs only; restraint on rent increases. Sec. 604. Effective date. TITLE VII--CHILD CARE Sec. 701. Short title and references. Sec. 702. Goals. Sec. 703. Authorization of appropriations. Sec. 704. Lead agency. Sec. 705. Application and plan. Sec. 706. Limitation on State allotments. Sec. 707. Activities to improve the quality of child care. Sec. 708. Repeal of early childhood development and before- and after- school care requirement. Sec. 709. Administration and enforcement. Sec. 710. Payments. Sec. 711. Annual report and audits. Sec. 712. Report by the Secretary. Sec. 713. Allotments. Sec. 714. Definitions. Sec. 715. Repeals. TITLE VIII--CHILD NUTRITION PROGRAMS Subtitle A--National School Lunch Act Sec. 801. Value of food assistance. Sec. 802. Commodity assistance. Sec. 803. State disbursement to schools. Sec. 804. Nutritional and other program requirements. Sec. 805. Free and reduced price policy statement. [[Page H7909]] Sec. 806. Special assistance. Sec. 807. Miscellaneous provisions and definitions. Sec. 808. Summer food service program for children. Sec. 809. Commodity distribution. Sec. 810. Child care food program. Sec. 811. Pilot projects. Sec. 812. Reduction of paperwork. Sec. 813. Information on income eligibility. Sec. 814. Nutrition guidance for child nutrition programs. Sec. 815. Information clearinghouse. Subtitle B--Child Nutrition Act of 1966 Sec. 821. Special milk program. Sec. 822. Reimbursement rates for free and reduced price breakfasts. Sec. 823. Free and reduced price policy statement. Sec. 824. School breakfast program authorization. Sec. 825. State administrative expenses. Sec. 826. Regulations. Sec. 827. Prohibitions. Sec. 828. Miscellaneous provisions and definitions. Sec. 829. Accounts and records. Sec. 830. Special supplemental nutrition program for women, infants, and children. Sec. 831. Cash grants for nutrition education. Sec. 832. Nutrition education and training. Sec. 833. Breastfeeding promotion program. TITLE IX--FOOD STAMP AND RELATED PROGRAMS Sec. 901. Definition of certification period. Sec. 902. Expanded definition of ``coupon''. Sec. 903. Treatment of children living at home. Sec. 904. Adjustment of thrifty food plan. Sec. 905. Definition of homeless individual. Sec. 906. Income Exclusions. Sec. 907. Deductions from income. Sec. 908. Vehicle allowance. Sec. 909. Vendor payments for transitional housing counted as income. Sec. 910. Increased penalties for violating food stamp program requirements. Sec. 911. Disqualification of convicted individuals. Sec. 912. Disqualification. Sec. 913. Caretaker exemption. Sec. 914. Employment and training. Sec. 915. Comparable treatment for disqualification. Sec. 916. Disqualification for receipt of multiple food stamp benefits. Sec. 917. Disqualification of fleeing felons. Sec. 918. Cooperation with child support agencies. Sec. 919. Disqualification relating to child support arrears. Sec. 920. Work requirement for able-bodied recipients. Sec. 921. Encourage electronic benefit transfer systems. Sec. 922. Value of minimum allotment. Sec. 923. Benefits on recertification. Sec. 924. Optional combined allotment for expedited households. Sec. 925. Failure to comply with other means-tested public assistance programs. Sec. 926. Allotments for households residing in centers. Sec. 927. Authority to establish authorization periods. Sec. 928. Specific period for prohibiting participation of stores based on lack of business integrity. Sec. 929. Information for verifying eligibility for authorization. Sec. 930. Waiting period for stores that initially fail to meet authorization criteria. Sec. 931. Operation of food stamp offices. Sec. 932. Mandatory claims collection methods. Sec. 933. Exchange of law enforcement information. Sec. 934. Expedited coupon service. Sec. 935. Withdrawing fair hearing requests. Sec. 936. Income, eligibility, and immigration status verification systems. Sec. 937. Bases for suspensions and disqualifications. Sec. 938. Authority to suspend stores violating program requirements pending administrative and judicial review. Sec. 939. Disqualification of retailers who are disqualified from the WIC program. Sec. 940. Permanent debarment of retailers who intentionally submit falsified applications. Sec. 941. Expanded civil and criminal forfeiture for violations of the food stamp act. Sec. 942. Expanded authority for sharing information provided by retailers. Sec. 943. Limitation of Federal match. Sec. 944. Collection of overissuances. Sec. 945. Standards for administration. Sec. 946. Response to waivers. Sec. 947. Authorization of appropriations. Sec. 948. Authorize States to operate simplified food stamp programs. Sec. 949. Emergency food assistance program. Sec. 950. Food bank demonstration project. Sec. 951. Report on entitlement commodity processing. TITLE X--MISCELLANEOUS Subtitle A--General Provisions Sec. 1001. Expenditure of Federal funds in accordance with laws and procedures applicable to expenditure of State funds. Sec. 1002. Elimination of housing assistance with respect to fugitive felons and probation and parole violators. Sec. 1003. Sense of the Senate regarding enterprise zones. Sec. 1004. Sense of the Senate regarding the inability of the non- custodial parent to pay child support. Sec. 1005. Food stamp eligibility. Sec. 1006. Establishing national goals to prevent teenage pregnancies. Sec. 1007. Sense of the Senate regarding enforcement of statutory rape laws. Sec. 1008. Sanctioning for testing positive for controlled substances. Sec. 1009. Abstinence education. Sec. 1010. Provisions to encourage electronic benefit transfer systems. Sec. 1011. Reduction in block grants to States for social services. Sec. 1012. Efficient use of Federal transportation funds. Sec. 1013. Enhanced Federal match for child welfare automation expenses. Subtitle B--Earned Income Tax Credit Sec. 1021. Earned income credit and other tax benefits denied to individuals failing to provide taxpayer identification numbers. Sec. 1022. Rules relating to denial of earned income credit on basis of disqualified income. Sec. 1023. Modification of adjusted gross income definition for earned income credit. Sec. 1024. Notice of availability required to be provided to applicants and former recipients of AFDC, food stamps, and medicaid. Sec. 1025. Notice of availability of earned income tax credit and dependent care tax credit to be included on W-4 form. Sec. 1026. Advance payment of earned income tax credit through State demonstration programs. 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) 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. [[Page H7910]] (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. (8) 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. (9) 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 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. Part A of title IV (42 U.S.C. 601 et seq.) is amended to read as follows: ``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 meets the requirements of subsection (b) and has been approved by the Secretary with respect to the fiscal year. ``(b) Contents of State Plans.--A plan meets the requirements of this subsection if the plan includes the following: ``(1) Outline of family assistance program.-- ``(A) General provisions.--A written document that outlines how the State will do the following: ``(i) Conduct a program, designed to serve all political subdivisions in the State, 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) Determine, on an objective and equitable basis, the needs of and the amount of assistance to be provided to needy families, and treat families of similar needs and circumstances similarly, subject to subparagraph (B). ``(iii) 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. ``(iv) Ensure that parents and caretakers receiving assistance under the program engage in work activities in accordance with section 407. ``(v) Grant an opportunity for a fair hearing before the State agency to any individual to whom assistance under the program is denied, reduced, or terminated, or whose request for such assistance is not acted on with reasonable promptness. ``(vi) 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. ``(vii) 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. ``(B) Special provisions.-- ``(i) The plan 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 plan 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 plan shall contain an estimate of the number of individuals (if any) who will become ineligible for medical assistance under the State plan approved under title XIX as a result of changes in the rules governing eligibility for the State program funded under this part, and shall indicate the extent (if any) to which the State will provide medical assistance to such individuals, and the scope of such medical assistance. ``(2) Certification that the state will operate a child support enforcement program.--The plan shall include 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 not operate a separate financial support program with state funds targeted at certain child support recipients.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will not operate a separate financial support program with State funds targeted at child support recipients who would be eligible for assistance under the program funded under this part were it not for payments from the State-funded financial assistance program. ``(4) Certification that the state will operate a child protection program.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will operate a child protection program under the State plan approved under part B. ``(5) Certification of the administration of the program.-- The plan shall include 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 working jointly with the State in all phases of the plan and design of welfare services in the State so that services are provided in a manner appropriate to local populations; ``(B) have had at least 60 days to submit comments on the final plan and the design of such services; and ``(C) will not have unfunded mandates imposed on them under such plan. Such certification shall also include assurance that when local elected officials are currently responsible for the administration [[Page H7911]] of welfare services, the local elected officials will be able to plan, design, and administer for their jurisdictions the programs established pursuant to this Act. ``(6) Certification that the state will provide indians with equitable access to assistance.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will provide each Indian who is a member of an Indian tribe in the State that does not have 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. ``(7) Certification of nondisplacement and nonreplacement of employees.--The plan shall include a certification that the implementation of the plan will not result in-- ``(A) the displacement of a currently employed worker or position by an individual to whom assistance is provided under the State program funded under this part; ``(B) the replacement of an employee who has been terminated with an individual to whom assistance is provided under the State program funded under this part; or ``(C) the replacement of an employee who is on layoff from the same position filled by an individual to whom assistance is provided under the State program funded under this part or any equivalent position. ``(c) Approval of State Plans.--The Secretary shall approve any State plan that meets the requirements of subsection (b) if the Secretary determines that operating a State program pursuant to the plan will contribute to achieving the purposes of this part. ``(d) 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, and 2001 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, the Secretary approved under former section 402 an amendment to the former State plan with respect to the provision of emergency assistance in the context of family preservation; or ``(iii) the amount required to be paid to the State under former section 403 (as in effect on September 30, 1995) for 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 aggregate amount required to be paid to the State 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 amount 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 (IV) 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)(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, and 2001 such sums as are necessary for grants under this paragraph. ``(2) Grant to reward states that reduce out-of-wedlock births.-- ``(A) In general.--In addition to any grant under paragraph (1), each eligible State shall be entitled to receive from the Secretary for fiscal year 1998 or any succeeding fiscal year, a grant in an amount equal to the State family assistance grant multiplied by-- ``(i) 5 percent if-- ``(I) the illegitimacy ratio of the State for the fiscal year is at least 1 percentage point lower than the illegitimacy ratio of the State for fiscal year 1995; and ``(II) 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; or ``(ii) 10 percent if-- ``(I) the illegitimacy ratio of the State for the fiscal year is at least 2 percentage points lower than the illegitimacy ratio of the State for fiscal year 1995; and ``(II) 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. ``(B) Illegitimacy ratio.--As used in this paragraph, the term `illegitimacy ratio' means, with respect to a State and a fiscal year-- ``(i) the number of out-of-wedlock births that occurred in the State during the most recent fiscal year for which such information is available; divided by ``(ii) the number of births that occurred in the State during the most recent fiscal year for which such information is available. ``(C) Disregard of changes in data due to changed reporting methods.--For purposes of subparagraph (A), the Secretary shall disregard-- ``(i) any difference between the illegitimacy ratio of a State for a fiscal year and the illegitimacy ratio of the State for fiscal year 1995 which is attributable to a change in State methods of reporting data used to calculate the illegitimacy ratio; and ``(ii) 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. ``(D) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal year 1998 and for each succeeding fiscal year 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 1997 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 1998, 1999, and 2000, 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. [[Page H7912]] ``(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 1997 by reason of clause (i) if the State is not a qualifying State for fiscal year 1997 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 1997, 1998, 1999, and 2000 if-- ``(I) the level of welfare spending per poor person by the State for fiscal year 1996 is less than 35 percent of the national average level of State welfare spending per poor person for fiscal year 1996; or ``(II) the population of the State increased by more than 10 percent from April 1, 1990, to July 1, 1994, as determined by 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 1997, 1998, 1999, and 2000 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 2000. ``(4) Supplemental grant for operation of work program.-- ``(A) Application requirements.--An eligible State may submit to the Secretary an application for additional funds to meet the requirements of section 407 with respect to a fiscal year if the Secretary determines that-- ``(i) the total expenditures of the State to meet such requirements for the fiscal year exceed the total expenditures of the State during fiscal year 1994 to carry out part F (as in effect on September 30, 1994); ``(ii) the work programs of the State under section 407 are coordinated with the job training programs established by title II of the Job Training Partnership Act, or (if such title is repealed by the Consolidated and Reformed Education, Employment, and Rehabilitation Systems Act) the Consolidated and Reformed Education, Employment, and Rehabilitation Systems Act; and ``(iii) the State needs additional funds to meet such requirements or certifies that it intends to exceed such requirements. ``(B) Grants.--The Secretary may make a grant to any eligible State which submits an application in accordance with subparagraph (A) of this paragraph for a fiscal year in an amount equal to the Federal medical assistance percentage of the amount (if any) by which the total expenditures of the State to meet or exceed the requirements of section 407 for the fiscal year exceeds the total expenditures of the State during fiscal year 1994 to carry out part F (as in effect on September 30, 1994). ``(C) Regulations.--The Secretary shall issue regulations providing for the equitable distribution of funds under this paragraph. ``(D) Appropriations.-- ``(i) In general.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated to the Secretary for grants under this paragraph-- ``(I) $150,000,000 for fiscal year 1999; ``(II) $850,000,000 for fiscal year 2000; ``(III) $900,000,000 for fiscal year 2001; and ``(IV) $1,100,000,000 for fiscal year 2002 and for each succeeding fiscal year. ``(ii) Availability.--Amounts appropriated pursuant to clause (i) shall remain available until expended. ``(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.-- ``(A) Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal years 1997, 1998, 1999, 2000, 2001 and 2002 such sums as are necessary for payment to the Fund in a total amount not to exceed $2,000,000,000, except as provided in subparagraphs (B) and (C). ``(B) If-- ``(i) the average rate of total unemployment in the United States for the most recent 3 months for which data for all States are available is not less than 7 percent; and ``(ii) there are insufficient amounts in the Fund to pay all State claims under paragraph (4) for a quarter in that fiscal year; then there are appropriated for that fiscal year, in addition to amounts appropriated under paragraph (2)(A), such sums as equal the difference between the amount needed to pay all State claims for that quarter and the amount remaining in the Fund. ``(C) If-- ``(i)(I)(aa) the average rate of total unemployment in a State (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all States are published is not less than 9 percent; or ``(bb) the average rate of total unemployment in such State (seasonally adjusted) for the 3-month period is not less than 120 percent of such average rate for either of the prior 2 years; or ``(II) the average number of persons in the State receiving assistance under the food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977, for the most recent 3-month period for which data are available is not less than 120 percent of such average monthly number for fiscal year 1994 or for fiscal year 1995; and ``(ii) there are insufficient amounts in the Fund to pay all State claims under paragraph (4) for a quarter in that fiscal year; then there are appropriated for payment to the Fund for that fiscal year, in addition to amounts appropriated pursuant to paragraph (2)(A), for payments to States described in this subparagraph, the amount by which payments to such States under paragraph (4) would otherwise be reduced under paragraph (8). ``(3) Payments to states.--The method of computing and paying amounts to States from the Fund under this subsection shall be as follows: ``(A) The Secretary shall, before each quarter, estimate the amount to be paid to each State for the quarter from the Fund, such estimate to be based on-- ``(i) a report filed by the State containing an estimate by the State of qualifying State expenditures for the quarter; and ``(ii) such other information as the Secretary may find relevant and reliable. ``(B) The Secretary shall then certify to the Secretary of the Treasury the amount so estimated by the Secretary. ``(C) The Secretary of the Treasury shall thereupon pay to the State, at the time or times fixed by the Secretary, the amount so certified. ``(4) Grants.--From amounts appropriated pursuant to paragraph (2), the Secretary of the Treasury shall pay to each eligible State for a fiscal year an amount equal to the lesser of-- ``(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 the expenditures of the State in the fiscal year under the State program funded under this part and expenditures on cash assistance under other State programs with respect to eligible families (as defined in section 409(a)(5)(B)(i)(III)) exceed historic State expenditures (as defined in section 409(a)(5)(B)(iii)); or ``(B) the number of percentage points (if any) by which 40 percent of the State family assistance grant for the fiscal year exceeds any payment to the State for the fiscal year under section 403(a)(3). [[Page H7913]] ``(5) Annual reconciliation.--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 (4) during the fiscal year exceeds the lesser of-- ``(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 the expenditures of the State in the fiscal year under the State program funded under this part and expenditures on cash assistance under other State programs with respect to eligible families (as defined in section 409(a)(5)(B)(i)(III)) exceed historic State expenditures (as defined in section 409(a)(5)(B)(iii)); or ``(B) the amount (if any) by which 40 percent of the State family assistance grant for the fiscal year exceeds any payment to the State for the fiscal year under section 403(a)(3). ``(6) Eligible state.--For purposes of this subsection, a State is an eligible State for a fiscal year, if-- ``(A)(i) the average rate of 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 is not less than 6.5 percent; and ``(ii) the average rate of total unemployment in such State (seasonally adjusted) for the 3-month period is not less than 110 percent of such average rate for either 1994 or 1995; or ``(B)(i) the average number of persons in the State receiving assistance under the food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977, for the most recent 3-month period for which data are available is not less than 110 percent of the product of-- ``(I) such average monthly number for either fiscal year 1994 or fiscal year 1995; and ``(II) the number of percentage points (if any) by which 100 percent exceeds the percentage by which the Bipartisan Welfare Reform Act of 1996, had it been in effect, would have reduced such average monthly number in such State in such fiscal year, as most recently estimated by the Secretary of Agriculture before the date of the enactment of such Act; and ``(ii) the State is not participating in the program established under section 23(b) of the Food Stamp Act of 1977. ``(7) State.--As used in this subsection, the term `State' means each of the 50 States of the United States and the District of Columbia. ``(8) Payment priority.--Claims by States for payment from the Fund shall be filed quarterly. If the total amount of claims for any quarter exceeds the amount available for payment from the fund, claims shall be paid on a pro rata basis in a manner to be determined by the Secretary, except in the case of a State described in paragraph (2)(C). ``(9) Annual reports.--The Secretary of the Treasury shall annually report to 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 20 percent of the amount of the grant made to the State under section 403 for a fiscal year to carry out a State program pursuant to the Child Care and Development Block Grant Act of 1990. ``(2) Applicable rules.--Any amount paid to the State under this part that is used to carry out a State program pursuant to the Child Care and Development Block Grant Act of 1990 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 such Act to carry out the program. ``(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. ``SEC. 405. ADMINISTRATIVE PROVISIONS. ``(a) Quarterly.--The Secretary shall pay each grant payable to a State under section 403 in quarterly installments. ``(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 info

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WELFARE AND MEDICAID REFORM ACT OF 1996
(House of Representatives - July 18, 1996)

Text of this article available as: TXT PDF [Pages H7907-H7990] WELFARE AND MEDICAID REFORM ACT OF 1996 The SPEAKER pro tempore. Pursuant to House Resolution 482 and rule XXIII, the Chair declares the House in the Committee of the Whole House on the State of the Union for the further consideration of the bill, H.R. 3734. {time} 1407 in the committee of the whole Accordingly the House resolved itself into the Committee of the Whole House on the State of the Union for the further consideration of the bill (H.R. 3734) to provide for reconciliation pursuant to section 201(a)(1) of the concurrent resolution on the budget for fiscal year 1997, with Ms. Greene of Utah in the chair. The Clerk read the title of the bill. The CHAIRMAN. When the Committee of the Whole rose earlier today, the amendment printed in part 2 of House Report 104-686 offered by the gentleman from Ohio [Mr. Ney] had been disposed of. amendment in the nature of a substitute offered by mr. tanner Mr. TANNER. Madam Chairman, as the designee of the minority leader, I offer an amendment in the nature of a substitute. The CHAIRMAN. The Clerk will designate the amendment. The text of the amendment in the nature of a substitute is as follows: Amendment in the nature of a substitute offered by Mr. Tanner: Strike out all after the enacting clause and insert: SECTION 1. SHORT TITLE. This Act may be cited as the ``Bipartisan Welfare Reform Act of 1996''. SEC. 2. TABLE OF CONTENTS. The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I--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. Disclosure of receipt of Federal funds. Sec. 113. Modifications to the job opportunities for certain low-income individuals program. Sec. 114. Secretarial submission of legislative proposal for technical and conforming amendments. Sec. 115. Application of current AFDC standards under medicaid program. 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. Verification of eligibility for certain SSI disability benefits. Sec. 204. Treatment of prisoners. Sec. 205. Effective date of application for benefits. Sec. 206. Installment payment of large past-due supplemental security income benefits. [[Page H7908]] Sec. 207. Recovery of supplemental security income overpayments from social security 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. Modification respecting parental income deemed to disabled children. Sec. 216. Graduated benefits for additional children. Subtitle C--State Supplementation Programs Sec. 221. Repeal of maintenance of effort requirements applicable to optional State programs for supplementation of SSI benefits. Subtitle D--Studies Regarding Supplemental Security Income Program Sec. 231. Annual report on the supplemental security income program. Sec. 232. Study of disability determination process. Sec. 233. Study by General Accounting Office. Subtitle E--National Commission on the Future of Disability Sec. 241. Establishment. Sec. 242. Duties of the Commission. Sec. 243. Membership. Sec. 244. Staff and support services. Sec. 245. Powers of Commission. Sec. 246. Reports. Sec. 247. Termination. Sec. 248. Authorization of appropriations. 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 and 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 temporary family 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 child 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. Subtitle H--Medical Support Sec. 376. Correction to ERISA definition of medical child support order. Sec. 377. Enforcement of orders for health care coverage. Subtitle I--Enhancing Responsibility and Opportunity for Non- Residential Parents Sec. 381. Grants to States for access and visitation programs. Subtitle J--Effect of Enactment Sec. 391. Effective dates. 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 certain 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 for purposes of medicaid eligibility. Sec. 422. Authority for States to provide for attribution of sponsor's income and resources to the alien with respect to State programs. Sec. 423. Requirements for sponsor's affidavit of support. Sec. 424. Cosignature of alien student loans. 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. Sec. 436. Title inapplicable to programs specified by Attorney General. Sec. 437. Title inapplicable to programs of nonprofit charitable organizations. Subtitle E--Conforming Amendments Sec. 441. Conforming amendments relating to assisted housing. TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS Sec. 501. Reductions. Sec. 502. Reductions in Federal bureaucracy. Sec. 503. Reducing personnel in Washington, D.C. area. TITLE VI--REFORM OF PUBLIC HOUSING Sec. 601. Failure to comply with other welfare and public assistance programs. Sec. 602. Fraud under means-tested welfare and public assistance programs. Sec. 603. Annual adjustment factors for operating costs only; restraint on rent increases. Sec. 604. Effective date. TITLE VII--CHILD CARE Sec. 701. Short title and references. Sec. 702. Goals. Sec. 703. Authorization of appropriations. Sec. 704. Lead agency. Sec. 705. Application and plan. Sec. 706. Limitation on State allotments. Sec. 707. Activities to improve the quality of child care. Sec. 708. Repeal of early childhood development and before- and after- school care requirement. Sec. 709. Administration and enforcement. Sec. 710. Payments. Sec. 711. Annual report and audits. Sec. 712. Report by the Secretary. Sec. 713. Allotments. Sec. 714. Definitions. Sec. 715. Repeals. TITLE VIII--CHILD NUTRITION PROGRAMS Subtitle A--National School Lunch Act Sec. 801. Value of food assistance. Sec. 802. Commodity assistance. Sec. 803. State disbursement to schools. Sec. 804. Nutritional and other program requirements. Sec. 805. Free and reduced price policy statement. [[Page H7909]] Sec. 806. Special assistance. Sec. 807. Miscellaneous provisions and definitions. Sec. 808. Summer food service program for children. Sec. 809. Commodity distribution. Sec. 810. Child care food program. Sec. 811. Pilot projects. Sec. 812. Reduction of paperwork. Sec. 813. Information on income eligibility. Sec. 814. Nutrition guidance for child nutrition programs. Sec. 815. Information clearinghouse. Subtitle B--Child Nutrition Act of 1966 Sec. 821. Special milk program. Sec. 822. Reimbursement rates for free and reduced price breakfasts. Sec. 823. Free and reduced price policy statement. Sec. 824. School breakfast program authorization. Sec. 825. State administrative expenses. Sec. 826. Regulations. Sec. 827. Prohibitions. Sec. 828. Miscellaneous provisions and definitions. Sec. 829. Accounts and records. Sec. 830. Special supplemental nutrition program for women, infants, and children. Sec. 831. Cash grants for nutrition education. Sec. 832. Nutrition education and training. Sec. 833. Breastfeeding promotion program. TITLE IX--FOOD STAMP AND RELATED PROGRAMS Sec. 901. Definition of certification period. Sec. 902. Expanded definition of ``coupon''. Sec. 903. Treatment of children living at home. Sec. 904. Adjustment of thrifty food plan. Sec. 905. Definition of homeless individual. Sec. 906. Income Exclusions. Sec. 907. Deductions from income. Sec. 908. Vehicle allowance. Sec. 909. Vendor payments for transitional housing counted as income. Sec. 910. Increased penalties for violating food stamp program requirements. Sec. 911. Disqualification of convicted individuals. Sec. 912. Disqualification. Sec. 913. Caretaker exemption. Sec. 914. Employment and training. Sec. 915. Comparable treatment for disqualification. Sec. 916. Disqualification for receipt of multiple food stamp benefits. Sec. 917. Disqualification of fleeing felons. Sec. 918. Cooperation with child support agencies. Sec. 919. Disqualification relating to child support arrears. Sec. 920. Work requirement for able-bodied recipients. Sec. 921. Encourage electronic benefit transfer systems. Sec. 922. Value of minimum allotment. Sec. 923. Benefits on recertification. Sec. 924. Optional combined allotment for expedited households. Sec. 925. Failure to comply with other means-tested public assistance programs. Sec. 926. Allotments for households residing in centers. Sec. 927. Authority to establish authorization periods. Sec. 928. Specific period for prohibiting participation of stores based on lack of business integrity. Sec. 929. Information for verifying eligibility for authorization. Sec. 930. Waiting period for stores that initially fail to meet authorization criteria. Sec. 931. Operation of food stamp offices. Sec. 932. Mandatory claims collection methods. Sec. 933. Exchange of law enforcement information. Sec. 934. Expedited coupon service. Sec. 935. Withdrawing fair hearing requests. Sec. 936. Income, eligibility, and immigration status verification systems. Sec. 937. Bases for suspensions and disqualifications. Sec. 938. Authority to suspend stores violating program requirements pending administrative and judicial review. Sec. 939. Disqualification of retailers who are disqualified from the WIC program. Sec. 940. Permanent debarment of retailers who intentionally submit falsified applications. Sec. 941. Expanded civil and criminal forfeiture for violations of the food stamp act. Sec. 942. Expanded authority for sharing information provided by retailers. Sec. 943. Limitation of Federal match. Sec. 944. Collection of overissuances. Sec. 945. Standards for administration. Sec. 946. Response to waivers. Sec. 947. Authorization of appropriations. Sec. 948. Authorize States to operate simplified food stamp programs. Sec. 949. Emergency food assistance program. Sec. 950. Food bank demonstration project. Sec. 951. Report on entitlement commodity processing. TITLE X--MISCELLANEOUS Subtitle A--General Provisions Sec. 1001. Expenditure of Federal funds in accordance with laws and procedures applicable to expenditure of State funds. Sec. 1002. Elimination of housing assistance with respect to fugitive felons and probation and parole violators. Sec. 1003. Sense of the Senate regarding enterprise zones. Sec. 1004. Sense of the Senate regarding the inability of the non- custodial parent to pay child support. Sec. 1005. Food stamp eligibility. Sec. 1006. Establishing national goals to prevent teenage pregnancies. Sec. 1007. Sense of the Senate regarding enforcement of statutory rape laws. Sec. 1008. Sanctioning for testing positive for controlled substances. Sec. 1009. Abstinence education. Sec. 1010. Provisions to encourage electronic benefit transfer systems. Sec. 1011. Reduction in block grants to States for social services. Sec. 1012. Efficient use of Federal transportation funds. Sec. 1013. Enhanced Federal match for child welfare automation expenses. Subtitle B--Earned Income Tax Credit Sec. 1021. Earned income credit and other tax benefits denied to individuals failing to provide taxpayer identification numbers. Sec. 1022. Rules relating to denial of earned income credit on basis of disqualified income. Sec. 1023. Modification of adjusted gross income definition for earned income credit. Sec. 1024. Notice of availability required to be provided to applicants and former recipients of AFDC, food stamps, and medicaid. Sec. 1025. Notice of availability of earned income tax credit and dependent care tax credit to be included on W-4 form. Sec. 1026. Advance payment of earned income tax credit through State demonstration programs. 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) 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. [[Page H7910]] (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. (8) 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. (9) 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 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. Part A of title IV (42 U.S.C. 601 et seq.) is amended to read as follows: ``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 meets the requirements of subsection (b) and has been approved by the Secretary with respect to the fiscal year. ``(b) Contents of State Plans.--A plan meets the requirements of this subsection if the plan includes the following: ``(1) Outline of family assistance program.-- ``(A) General provisions.--A written document that outlines how the State will do the following: ``(i) Conduct a program, designed to serve all political subdivisions in the State, 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) Determine, on an objective and equitable basis, the needs of and the amount of assistance to be provided to needy families, and treat families of similar needs and circumstances similarly, subject to subparagraph (B). ``(iii) 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. ``(iv) Ensure that parents and caretakers receiving assistance under the program engage in work activities in accordance with section 407. ``(v) Grant an opportunity for a fair hearing before the State agency to any individual to whom assistance under the program is denied, reduced, or terminated, or whose request for such assistance is not acted on with reasonable promptness. ``(vi) 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. ``(vii) 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. ``(B) Special provisions.-- ``(i) The plan 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 plan 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 plan shall contain an estimate of the number of individuals (if any) who will become ineligible for medical assistance under the State plan approved under title XIX as a result of changes in the rules governing eligibility for the State program funded under this part, and shall indicate the extent (if any) to which the State will provide medical assistance to such individuals, and the scope of such medical assistance. ``(2) Certification that the state will operate a child support enforcement program.--The plan shall include 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 not operate a separate financial support program with state funds targeted at certain child support recipients.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will not operate a separate financial support program with State funds targeted at child support recipients who would be eligible for assistance under the program funded under this part were it not for payments from the State-funded financial assistance program. ``(4) Certification that the state will operate a child protection program.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will operate a child protection program under the State plan approved under part B. ``(5) Certification of the administration of the program.-- The plan shall include 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 working jointly with the State in all phases of the plan and design of welfare services in the State so that services are provided in a manner appropriate to local populations; ``(B) have had at least 60 days to submit comments on the final plan and the design of such services; and ``(C) will not have unfunded mandates imposed on them under such plan. Such certification shall also include assurance that when local elected officials are currently responsible for the administration [[Page H7911]] of welfare services, the local elected officials will be able to plan, design, and administer for their jurisdictions the programs established pursuant to this Act. ``(6) Certification that the state will provide indians with equitable access to assistance.--The plan shall include a certification by the chief executive officer of the State that, during the fiscal year, the State will provide each Indian who is a member of an Indian tribe in the State that does not have 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. ``(7) Certification of nondisplacement and nonreplacement of employees.--The plan shall include a certification that the implementation of the plan will not result in-- ``(A) the displacement of a currently employed worker or position by an individual to whom assistance is provided under the State program funded under this part; ``(B) the replacement of an employee who has been terminated with an individual to whom assistance is provided under the State program funded under this part; or ``(C) the replacement of an employee who is on layoff from the same position filled by an individual to whom assistance is provided under the State program funded under this part or any equivalent position. ``(c) Approval of State Plans.--The Secretary shall approve any State plan that meets the requirements of subsection (b) if the Secretary determines that operating a State program pursuant to the plan will contribute to achieving the purposes of this part. ``(d) 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, and 2001 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, the Secretary approved under former section 402 an amendment to the former State plan with respect to the provision of emergency assistance in the context of family preservation; or ``(iii) the amount required to be paid to the State under former section 403 (as in effect on September 30, 1995) for 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 aggregate amount required to be paid to the State 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 amount 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 (IV) 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)(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, and 2001 such sums as are necessary for grants under this paragraph. ``(2) Grant to reward states that reduce out-of-wedlock births.-- ``(A) In general.--In addition to any grant under paragraph (1), each eligible State shall be entitled to receive from the Secretary for fiscal year 1998 or any succeeding fiscal year, a grant in an amount equal to the State family assistance grant multiplied by-- ``(i) 5 percent if-- ``(I) the illegitimacy ratio of the State for the fiscal year is at least 1 percentage point lower than the illegitimacy ratio of the State for fiscal year 1995; and ``(II) 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; or ``(ii) 10 percent if-- ``(I) the illegitimacy ratio of the State for the fiscal year is at least 2 percentage points lower than the illegitimacy ratio of the State for fiscal year 1995; and ``(II) 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. ``(B) Illegitimacy ratio.--As used in this paragraph, the term `illegitimacy ratio' means, with respect to a State and a fiscal year-- ``(i) the number of out-of-wedlock births that occurred in the State during the most recent fiscal year for which such information is available; divided by ``(ii) the number of births that occurred in the State during the most recent fiscal year for which such information is available. ``(C) Disregard of changes in data due to changed reporting methods.--For purposes of subparagraph (A), the Secretary shall disregard-- ``(i) any difference between the illegitimacy ratio of a State for a fiscal year and the illegitimacy ratio of the State for fiscal year 1995 which is attributable to a change in State methods of reporting data used to calculate the illegitimacy ratio; and ``(ii) 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. ``(D) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal year 1998 and for each succeeding fiscal year 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 1997 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 1998, 1999, and 2000, 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. [[Page H7912]] ``(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 1997 by reason of clause (i) if the State is not a qualifying State for fiscal year 1997 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 1997, 1998, 1999, and 2000 if-- ``(I) the level of welfare spending per poor person by the State for fiscal year 1996 is less than 35 percent of the national average level of State welfare spending per poor person for fiscal year 1996; or ``(II) the population of the State increased by more than 10 percent from April 1, 1990, to July 1, 1994, as determined by 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 1997, 1998, 1999, and 2000 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 2000. ``(4) Supplemental grant for operation of work program.-- ``(A) Application requirements.--An eligible State may submit to the Secretary an application for additional funds to meet the requirements of section 407 with respect to a fiscal year if the Secretary determines that-- ``(i) the total expenditures of the State to meet such requirements for the fiscal year exceed the total expenditures of the State during fiscal year 1994 to carry out part F (as in effect on September 30, 1994); ``(ii) the work programs of the State under section 407 are coordinated with the job training programs established by title II of the Job Training Partnership Act, or (if such title is repealed by the Consolidated and Reformed Education, Employment, and Rehabilitation Systems Act) the Consolidated and Reformed Education, Employment, and Rehabilitation Systems Act; and ``(iii) the State needs additional funds to meet such requirements or certifies that it intends to exceed such requirements. ``(B) Grants.--The Secretary may make a grant to any eligible State which submits an application in accordance with subparagraph (A) of this paragraph for a fiscal year in an amount equal to the Federal medical assistance percentage of the amount (if any) by which the total expenditures of the State to meet or exceed the requirements of section 407 for the fiscal year exceeds the total expenditures of the State during fiscal year 1994 to carry out part F (as in effect on September 30, 1994). ``(C) Regulations.--The Secretary shall issue regulations providing for the equitable distribution of funds under this paragraph. ``(D) Appropriations.-- ``(i) In general.--Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated to the Secretary for grants under this paragraph-- ``(I) $150,000,000 for fiscal year 1999; ``(II) $850,000,000 for fiscal year 2000; ``(III) $900,000,000 for fiscal year 2001; and ``(IV) $1,100,000,000 for fiscal year 2002 and for each succeeding fiscal year. ``(ii) Availability.--Amounts appropriated pursuant to clause (i) shall remain available until expended. ``(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.-- ``(A) Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal years 1997, 1998, 1999, 2000, 2001 and 2002 such sums as are necessary for payment to the Fund in a total amount not to exceed $2,000,000,000, except as provided in subparagraphs (B) and (C). ``(B) If-- ``(i) the average rate of total unemployment in the United States for the most recent 3 months for which data for all States are available is not less than 7 percent; and ``(ii) there are insufficient amounts in the Fund to pay all State claims under paragraph (4) for a quarter in that fiscal year; then there are appropriated for that fiscal year, in addition to amounts appropriated under paragraph (2)(A), such sums as equal the difference between the amount needed to pay all State claims for that quarter and the amount remaining in the Fund. ``(C) If-- ``(i)(I)(aa) the average rate of total unemployment in a State (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all States are published is not less than 9 percent; or ``(bb) the average rate of total unemployment in such State (seasonally adjusted) for the 3-month period is not less than 120 percent of such average rate for either of the prior 2 years; or ``(II) the average number of persons in the State receiving assistance under the food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977, for the most recent 3-month period for which data are available is not less than 120 percent of such average monthly number for fiscal year 1994 or for fiscal year 1995; and ``(ii) there are insufficient amounts in the Fund to pay all State claims under paragraph (4) for a quarter in that fiscal year; then there are appropriated for payment to the Fund for that fiscal year, in addition to amounts appropriated pursuant to paragraph (2)(A), for payments to States described in this subparagraph, the amount by which payments to such States under paragraph (4) would otherwise be reduced under paragraph (8). ``(3) Payments to states.--The method of computing and paying amounts to States from the Fund under this subsection shall be as follows: ``(A) The Secretary shall, before each quarter, estimate the amount to be paid to each State for the quarter from the Fund, such estimate to be based on-- ``(i) a report filed by the State containing an estimate by the State of qualifying State expenditures for the quarter; and ``(ii) such other information as the Secretary may find relevant and reliable. ``(B) The Secretary shall then certify to the Secretary of the Treasury the amount so estimated by the Secretary. ``(C) The Secretary of the Treasury shall thereupon pay to the State, at the time or times fixed by the Secretary, the amount so certified. ``(4) Grants.--From amounts appropriated pursuant to paragraph (2), the Secretary of the Treasury shall pay to each eligible State for a fiscal year an amount equal to the lesser of-- ``(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 the expenditures of the State in the fiscal year under the State program funded under this part and expenditures on cash assistance under other State programs with respect to eligible families (as defined in section 409(a)(5)(B)(i)(III)) exceed historic State expenditures (as defined in section 409(a)(5)(B)(iii)); or ``(B) the number of percentage points (if any) by which 40 percent of the State family assistance grant for the fiscal year exceeds any payment to the State for the fiscal year under section 403(a)(3). [[Page H7913]] ``(5) Annual reconciliation.--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 (4) during the fiscal year exceeds the lesser of-- ``(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 the expenditures of the State in the fiscal year under the State program funded under this part and expenditures on cash assistance under other State programs with respect to eligible families (as defined in section 409(a)(5)(B)(i)(III)) exceed historic State expenditures (as defined in section 409(a)(5)(B)(iii)); or ``(B) the amount (if any) by which 40 percent of the State family assistance grant for the fiscal year exceeds any payment to the State for the fiscal year under section 403(a)(3). ``(6) Eligible state.--For purposes of this subsection, a State is an eligible State for a fiscal year, if-- ``(A)(i) the average rate of 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 is not less than 6.5 percent; and ``(ii) the average rate of total unemployment in such State (seasonally adjusted) for the 3-month period is not less than 110 percent of such average rate for either 1994 or 1995; or ``(B)(i) the average number of persons in the State receiving assistance under the food stamp program, as defined in section 3(h) of the Food Stamp Act of 1977, for the most recent 3-month period for which data are available is not less than 110 percent of the product of-- ``(I) such average monthly number for either fiscal year 1994 or fiscal year 1995; and ``(II) the number of percentage points (if any) by which 100 percent exceeds the percentage by which the Bipartisan Welfare Reform Act of 1996, had it been in effect, would have reduced such average monthly number in such State in such fiscal year, as most recently estimated by the Secretary of Agriculture before the date of the enactment of such Act; and ``(ii) the State is not participating in the program established under section 23(b) of the Food Stamp Act of 1977. ``(7) State.--As used in this subsection, the term `State' means each of the 50 States of the United States and the District of Columbia. ``(8) Payment priority.--Claims by States for payment from the Fund shall be filed quarterly. If the total amount of claims for any quarter exceeds the amount available for payment from the fund, claims shall be paid on a pro rata basis in a manner to be determined by the Secretary, except in the case of a State described in paragraph (2)(C). ``(9) Annual reports.--The Secretary of the Treasury shall annually report to 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 20 percent of the amount of the grant made to the State under section 403 for a fiscal year to carry out a State program pursuant to the Child Care and Development Block Grant Act of 1990. ``(2) Applicable rules.--Any amount paid to the State under this part that is used to carry out a State program pursuant to the Child Care and Development Block Grant Act of 1990 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 such Act to carry out the program. ``(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. ``SEC. 405. ADMINISTRATIVE PROVISIONS. ``(a) Quarterly.--The Secretary shall pay each grant payable to a State under section 403 in quarterly installments. ``(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