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PERSONAL RESPONSIBILITY ACT OF 1995
(House of Representatives - March 22, 1995)

Text of this article available as: TXT PDF [Pages H3449-H3529] PERSONAL RESPONSIBILITY ACT OF 1995 The SPEAKER pro tempore (Mr. Oxley). Pursuant to House Resolution 117 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. 4. {time} 1437 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. 4) to restore the American family, reduce illegitimacy, control welfare spending and reduce welfare dependence, with Mr. Linder in the chair. The Clerk read the title of the bill. The CHAIRMAN. When the Committee of the Whole rose on Tuesday, March 21, 1995, all time for general debate pursuant to House Resolution 117 had expired. Pursuant to House Resolution 119, no further general debate is in order. Pursuant to the rule, an amendment in the nature of a substitute consisting of the text of H.R. 1214 is adopted and the bill, as amended, is considered as an original bill for the purpose of further amendment and is considered as having been read. The text of H.R. 4, as amended, is as follows: H.R. 1214 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Personal Responsibility Act of 1995''. 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. Block grants to States. Sec. 102. Report on data processing. Sec. 103. Transfers. Sec. 104. Conforming amendments to the Social Security Act. Sec. 105. Conforming amendments to other laws. Sec. 106. Continued application of current standards under medicaid program. Sec. 107. Effective date. TITLE II--CHILD PROTECTION BLOCK GRANT PROGRAM Sec. 201. Establishment of program. Sec. 202. Conforming amendments. Sec. 203. Continued application of current standards under medicaid program. Sec. 204. Effective date. TITLE III--BLOCK GRANTS FOR CHILD CARE AND FOR NUTRITION ASSISTANCE Subtitle A--Child Care Block Grants Sec. 301. Amendments to the Child Care and Development Block Grant Act of 1990. Sec. 302. Repeal of child care assistance authorized by Acts other than the Social Security Act. Subtitle B--Family and School-Based Nutrition Block Grants Chapter 1--Family Nutrition Block Grant Program Sec. 321. Amendment to Child Nutrition Act of 1966. Chapter 2--School-based Nutrition Block Grant Program Sec. 341. Amendment to National School Lunch Act. Chapter 3--Miscellaneous Provisions Sec. 361. Repealers. Subtitle C--Other Repealers and Conforming Amendments Sec. 371. Amendments to laws relating to child protection block grant. Subtitle D--Related Provisions Sec. 381. Requirement that data relating to the incidence of poverty in the United States be published at least every 2 years. Sec. 382. Data on program participation and outcomes. Subtitle E--General Effective Date; Preservation of Actions, Obligations, and Rights Sec. 391. Effective date. Sec. 392. Application of amendments and repealers. 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 Programs Sec. 401. Ineligibility of illegal aliens for certain public benefits programs. Sec. 402. Ineligibility of nonimmigrants for certain public benefits programs. Sec. 403. Limited eligibility of immigrants for 5 specified Federal public benefits programs. Sec. 404. Notification. Subtitle B--Eligibility for State and Local Public Benefits Programs Sec. 411. Ineligibility of illegal aliens for State and local public benefits programs. [[Page H3450]] Sec. 412. Ineligibility of nonimmigrants for State and local public benefits programs. Sec. 413. State authority to limit eligibility of immigrants for State and local means-tested public benefits programs. Subtitle C--Attribution of Income and Affidavits of Support Sec. 421. Attribution of sponsor's income and resources to family- sponsored immigrants. Sec. 422. Requirements for sponsor's affidavit of support. Subtitle D--General Provisions Sec. 431. Definitions. Sec. 432. Construction. Subtitle E--Conforming Amendments Sec. 441. Conforming amendments relating to assisted housing. TITLE V--FOOD STAMP REFORM AND COMMODITY DISTRIBUTION Sec. 501. Short title. Subtitle A--Commodity Distribution Provisions Sec. 511. Short title. Sec. 512. Availability of commodities. Sec. 513. State, local and private supplementation of commodities. Sec. 514. State plan. Sec. 515. Allocation of commodities to States. Sec. 516. Priority system for State distribution of commodities. Sec. 517. Initial processing costs. Sec. 518. Assurances; anticipated use. Sec. 519. Authorization of appropriations. Sec. 520. Commodity supplemental food program. Sec. 521. Commodities not income. Sec. 522. Prohibition against certain State charges. Sec. 523. Definitions. Sec. 524. Regulations. Sec. 525. Finality of determinations. Sec. 526. Sale of commodities prohibited. Sec. 527. Settlement and adjustment of claims. Sec. 528. Repealers; amendments. Subtitle B--Simplification and Reform of Food Stamp Program Sec. 531. Short title. Chapter 1--Simplified Food Stamp Program and State Assistance for Needy Families Sec. 541. Establishment of simplified food stamp program. Sec. 542. Simplified food stamp program. Sec. 543. Conforming amendments. Chapter 2--Food Stamp Program Sec. 551. Thrifty food plan. Sec. 552. Income deductions and energy assistance. Sec. 553. Vehicle allowance. Sec. 554. Work requirements. Sec. 555. Comparable treatment of disqualified individuals. Sec. 556. Encourage electronic benefit transfer systems. Sec. 557. Value of minimum allotment. Sec. 558. Initial month benefit determination. Sec. 559. Improving food stamp program management. Sec. 560. Work supplementation or support program. Sec. 561. Obligations and allotments. Chapter 3--Program Integrity Sec. 571. Authority to establish authorization periods. Sec. 572. Condition precedent for approval of retail food stores and wholesale food concerns. Sec. 573. Waiting period for retailers that are denied approval to accept coupons. Sec. 574. Disqualification of retail food stores and wholesale food concerns. Sec. 575. Authority to suspend stores violating program requirements pending administrative and judicial review. Sec. 576. Criminal forfeiture. Sec. 577. Expanded definition of ``coupon''. Sec. 578. Doubled penalties for violating food stamp program requirements. Sec. 579. Disqualification of convicted individuals. Sec. 580. Claims collection. Subtitle C--Effective Dates and Miscellaneous Provisions Sec. 591. Effective dates. Sec. 592. Sense of the congress. Sec. 593. Deficit reduction. TITLE VI--SUPPLEMENTAL SECURITY INCOME Sec. 601. Denial of supplemental security income benefits by reason of disability to drug addicts and alcoholics. Sec. 602. Supplemental security income benefits for disabled children. Sec. 603. Examination of mental listings used to determine eligibility of children for SSI benefits by reason of disability. Sec. 604. Limitation on payments to Puerto Rico, the Virgin Islands, and Guam under programs of aid to the aged, blind, or disabled. Sec. 605. Repeal of maintenance of effort requirements applicable to optional State programs for supplementation of SSI benefits. TITLE VII--CHILD SUPPORT Sec. 700. References. Subtitle A--Eligibility for Services; Distribution of Payments Sec. 701. State obligation to provide child support enforcement services. Sec. 702. Distribution of child support collections. Sec. 703. Privacy safeguards. Subtitle B--Locate and Case Tracking Sec. 711. State case registry. Sec. 712. Collection and disbursement of support payments. Sec. 713. State directory of new hires. Sec. 714. Amendments concerning income withholding. Sec. 715. Locator information from interstate networks. Sec. 716. Expansion of the Federal Parent Locator Service. Sec. 717. Collection and use of social security numbers for use in child support enforcement. Subtitle C--Streamlining and Uniformity of Procedures Sec. 721. Adoption of uniform State laws. Sec. 722. Improvements to full faith and credit for child support orders. Sec. 723. Administrative enforcement in interstate cases. Sec. 724. Use of forms in interstate enforcement. Sec. 725. State laws providing expedited procedures. Subtitle D--Paternity Establishment Sec. 731. State laws concerning paternity establishment. Sec. 732. Outreach for voluntary paternity establishment. Sec. 733. Cooperation by applicants for and recipients of temporary family assistance. Subtitle E--Program Administration and Funding Sec. 741. Federal matching payments. Sec. 742. Performance-based incentives and penalties. Sec. 743. Federal and State reviews and audits. Sec. 744. Required reporting procedures. Sec. 745. Automated data processing requirements. Sec. 746. Technical assistance. Sec. 747. Reports and data collection by the Secretary. Subtitle F--Establishment and Modification of Support Orders Sec. 751. Simplified process for review and adjustment of child support orders. Sec. 752. Furnishing consumer reports for certain purposes relating to child support. Subtitle G--Enforcement of Support Orders Sec. 761. Federal income tax refund offset. Sec. 762. Authority to collect support from Federal employees. Sec. 763. Enforcement of child support obligations of members of the Armed Forces. Sec. 764. Voiding of fraudulent transfers. Sec. 765. Sense of the Congress that States should suspend drivers', business, and occupational licenses of persons owing past-due child support. Sec. 766. Work requirement for persons owing past-due child support. Sec. 767. Definition of support order. Subtitle H--Medical Support Sec. 771. Technical correction to ERISA definition of medical child support order. Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential Parents Sec. 781. Grants to States for access and visitation programs. Subtitle J--Effect of Enactment Sec. 791. Effective dates. TITLE VIII--MISCELLANEOUS PROVISIONS Sec. 801. Scoring. Sec. 802. Provisions to encourage electronic benefit transfer systems. TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES SEC. 101. BLOCK GRANTS TO STATES. Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is amended by striking part A, except sections 403(h) and 417, and inserting the following: ``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES ``SEC. 401. PURPOSE. ``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 the children in such families may be cared for in their homes or in the homes of relatives; ``(2) end the dependence of needy parents on government benefits by promoting work and marriage; and ``(3) discourage out-of-wedlock births. ``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 3-year period immediately preceding the fiscal year, has submitted to the Secretary a plan that includes the following: ``(1) Outline of family assistance program.--A written document that outlines how the State intends to do the following: [[Page H3451]] ``(A) Conduct a program designed to-- ``(i) provide cash benefits to needy families with children; and ``(ii) provide parents of children in such families with work experience, assistance in finding employment, and other work preparation activities and support services that the State considers appropriate to enable such families to leave the program and become self-sufficient. ``(B) Require at least 1 parent of a child in any family which has received benefits for more than 24 months (whether or not consecutive) under the program to engage in work activities (as defined by the State). ``(C) Ensure that parents receiving assistance under the program engage in work activities in accordance with section 404. ``(D) Treat interstate immigrants, if families including such immigrants are to be treated differently than other families. ``(E) Take such reasonable steps as the State deems necessary to restrict the use and disclosure of information about individuals and families receiving benefits under the program. ``(F) Take actions to reduce the incidence of out-of- wedlock births, which may include providing unmarried mothers and unmarried fathers with services which will help them-- ``(i) avoid subsequent pregnancies; and ``(ii) provide adequate care to their children. ``(G) Reduce teenage pregnancy, including (at the option of the State) through the provision of education, counseling, and health services to male and female teenagers. ``(2) Certification that the state will operate a child support enforcement program.--A certification by the Governor 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, in a manner that complies with the requirements of such part. ``(3) Certification that the state will operate a child protection program.--A certification by the Governor of the State that, during the fiscal year, the State will operate a child protection program in accordance with part B, which includes a foster care program and an adoption assistance program. ``(b) Determinations.--The Secretary shall determine whether a plan submitted pursuant to subsection (a) contains the material required by subsection (a). ``SEC. 403. PAYMENTS TO STATES. ``(a) Entitlements.-- ``(1) Grants for family assistance.-- ``(A) In general.--Each eligible State shall be entitled to receive from the Secretary for each of fiscal years 1996, 1997, 1998, 1999, and 2000 a grant in an amount equal to the State family assistance grant for the fiscal year. ``(B) Grant increased to reward states that reduce out-of- wedlock births.--The amount of the grant payable to a State under subparagraph (A) for fiscal year 1998 or any succeeding fiscal year shall be increased by-- ``(i) 5 percent if 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; or ``(ii) 10 percent if 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. ``(2) Supplemental grants to adjust for population increases.--In addition to any grant under paragraph (1), each eligible State shall be entitled to receive from the Secretary for each of fiscal years 1997, 1998, 1999, and 2000, a grant in an amount equal to the State proportion of $100,000,000. ``(b) Definitions.--As used in this section: ``(1) State family assistance grant.-- ``(A) In general.--The term `State family assistance grant' means, with respect to a fiscal year, the provisional State family assistance grant adjusted in accordance with subparagraph (C). ``(B) Provisional state family assistance grant.--The term `provisional State family assistance grant' means-- ``(i) the greater of-- ``(I) \1/3\ of the total amount of obligations to the State under section 403 of this title (as in effect before October 1, 1995) for fiscal years 1992, 1993, and 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); or ``(II) the total amount of obligations to the State under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); multiplied by ``(ii)(I) the total amount of outlays to all of the States under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); divided by ``(II) the total amount of obligations to all of the States under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section). ``(C) Proportional adjustment.--The Secretary shall determine the percentage (if any) by which each provisional State family assistance grant must be reduced or increased to ensure that the sum of such grants equals $15,390,296,000, and shall adjust each provisional State family assistance grant by the percentage so determined. ``(2) Illegitimacy ratio.--The term `illegitimacy ratio' means, with respect to a State and a fiscal year-- ``(A) the sum of-- ``(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; and ``(ii) the amount (if any) by which the number of abortions performed in the State during the most recent fiscal year for which such information is available exceeds the number of abortions performed in the State during the fiscal year that immediately precedes such most recent fiscal year; divided by ``(B) the number of births that occurred in the State during the most recent fiscal year for which such information is available. ``(3) State proportion.--The term `State proportion' means, with respect to a fiscal year, the amount that bears the same ratio to the amount specified in subsection (a)(2) as the increase (if any) in the population of the State for the most recent fiscal year for which such information is available over the population of the State for the fiscal year that immediately precedes such most recent fiscal year bears to the total increase in the population of all States which have such an increase in population, as determined by the Secretary using data from the Bureau of the Census. ``(4) Fiscal year.--The term `fiscal year' means any 12- month period ending on September 30 of a calendar year. ``(5) State.--The term `State' includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa. ``(c) Use of Grant.-- ``(1) In general.--A State to which a grant is made under this section may use the grant in any manner that is reasonably calculated to accomplish the purpose of this part, subject to this part, including to provide noncash assistance to mothers who have not attained 18 years of age and their children and to provide low income households with assistance in meeting home heating and cooling costs. ``(2) Authority to treat interstate immigrants under rules of former state.--A State to which a grant is made under this section may apply to a family the rules of the program operated 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. ``(3) Authority to use portion of grant for other purposes.-- ``(A) In general.--A State may use not more than 30 percent of the amount of the grant made to the State under this section for a fiscal year to carry out a State program pursuant to any or all of the following provisions of law: ``(i) Part B of this title. ``(ii) Title XX of this Act. ``(iii) Any provision of law, enacted into law during the 104th Congress, under which grants are made to States for food and nutrition. ``(iv) The Child Care and Development Block Grant Act of 1990. ``(B) Applicable rules.--Any amount paid to the State under this part that is used to carry out a State program pursuant to a provision of law specified in subparagraph (A) shall not be subject to the requirements of this part, but shall be subject to the requirements that apply to Federal funds provided directly under the provision of law to carry out the program. ``(4) Authority to reserve certain amounts for emergency benefits.-- ``(A) In general.--A State may reserve amounts paid to the State under this section for any fiscal year for the purpose of providing emergency assistance under the State program operated under this part. ``(B) Authority to use excess reserves for any purpose.-- During a fiscal year, a State may use for any purpose deemed appropriate by the State amounts held in reserve under subparagraph (A) to the extent exceeding 120 percent of the amount of the grant payable to the State under this section for the fiscal year. ``(5) Implementation of electronic benefit transfer system.--A State to which a grant is made under this section 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. ``(d) Timing of Payments.--The Secretary shall pay each grant payable to a State under this section in quarterly installments. ``(e) Penalties.-- ``(1) For use of grant in violation of this part.-- ``(A) In general.--If an audit conducted pursuant to chapter 75 of title 31, United States Code, finds that an amount paid to a State under this section for a fiscal year has been used in violation of this part, then the Secretary shall reduce the amount of the grant otherwise payable to the State under this section for the immediately succeeding fiscal year by the amount so used. ``(B) Limitation on amount of penalty.--In carrying out subparagraph (A), the Secretary shall not reduce any quarterly payment by more than 25 percent. ``(C) Carryforward of unrecovered penalties.--To the extent that subparagraph (B) prevents the Secretary from recovering during a fiscal year the full amount of a penalty imposed on a State under subparagraph (A) for a prior fiscal year, the Secretary shall apply subparagraph (A) to the grant otherwise payable to the State under this section for the immediately succeeding fiscal year. [[Page H3452]] ``(2) For failure to submit required report.-- ``(A) In general.--If the Secretary determines that a State has not, within 6 months after the end of a fiscal year, submitted the report required by section 406 for the fiscal year, the Secretary shall reduce by 3 percent the amount of the grant that would (in the absence of this subsection, subsection (a)(1)(B) of this section, and section 404(c)(2)) be payable to the State under subsection (a)(1)(A) for the immediately succeeding fiscal year. ``(B) Rescission of penalty.--The Secretary shall rescind a penalty imposed on a State under subparagraph (A) with respect to a report for a fiscal year if the State submits the report before the end of the immediately succeeding fiscal year. ``(C) For failure to participate in the income and eligibility verification system.--If the Secretary determines that a State program funded under this part is not participating during a fiscal year in the income and eligibility verification system required by section 1137, the Secretary shall reduce by 1 percent the amount of the grant that would (in the absence of this subsection, subsection (a)(1)(B) of this section, and section 404(c)(2)) be payable to the State under subsection (a)(1)(A) for the fiscal year. ``(f) Limitation on Federal Authority.--The Secretary may not regulate the conduct of States under this part or enforce any provision of this part, except to the extent expressly provided in this part. ``(g) Federal Rainy Day Fund.-- ``(1) Establishment.--There is hereby established in the Treasury of the United States a revolving loan fund which shall be known as the `Federal Rainy Day Fund'. ``(2) Deposits into fund.-- ``(A) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, $1,000,000,000 are hereby appropriated for fiscal year 1996 for payment to the Federal Rainy Day Fund. ``(B) Loan repayments.--The Secretary shall deposit into the fund any principal or interest payment received with respect to a loan made under this subsection. ``(3) Availability.--Amounts in the fund are authorized to remain available without fiscal year limitation for the purpose of making loans and receiving payments of principal and interest on such loans, in accordance with this subsection. ``(4) Use of fund.-- ``(A) Loans to qualified states.-- ``(i) In general.--The Secretary shall make loans from the fund to any qualified State for a period to maturity of not more than 3 years. ``(ii) Rate of interest.--The Secretary shall charge and collect interest on any loan made under clause (i) at a rate equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the period to maturity of the loan. ``(iii) Maximum loan.--The amount of any loan made to a State under clause (i) during a fiscal year shall not exceed the lesser of-- ``(I) 50 percent of the amount of the grant payable to the State under this section for the fiscal year; or ``(II) $100,000,000. ``(B) Qualified state defined.--A State is a qualified State for purposes of subparagraph (A) if the unemployment rate of the State (as determined by the Bureau of Labor Statistics) for the most recent 3-month period for which such information is available is-- ``(i) more than 6.5 percent; and ``(ii) at least 110 percent of such rate for the corresponding 3-month period in either of the 2 immediately preceding calendar years. ``SEC. 404. MANDATORY WORK REQUIREMENTS. ``(a) Participation Rate Requirements.-- ``(1) Requirement applicable to all families receiving assistance.-- ``(A) In general.--A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year with respect to all families receiving assistance under the State program funded under this part: The minimum participation ``If the fiscal rate is: 1996............................................................4 1997............................................................4 1998............................................................8 1999...........................................................12 2000...........................................................17 2001...........................................................29 2002...........................................................40 2003 or thereafter............................................50. ``(B) Pro rata reduction of participation rate due to caseload reductions not required by federal law.--The minimum participation rate otherwise required by subparagraph (A) for a fiscal year shall be reduced by a percentage equal to the percentage (if any) by which the number of families receiving assistance during the fiscal year under the State program funded under this part is less than the number of families that received aid under the State plan approved under part A of this title (as in effect before October 1, 1995) during the fiscal year immediately preceding such effective date, except to the extent that the Secretary determines that the reduction in the number of families receiving such assistance is required by Federal law. ``(C) Participation rate.--For purposes of this paragraph: ``(i) Average monthly rate.--The participation rate of a State for a fiscal year is the average of the participation rates of the State for each month in the fiscal year. ``(ii) Monthly participation rates.--The participation rate of a State for a month is-- ``(I) the number of families receiving cash assistance under the State program funded under this part which include an individual who is engaged in work activities for the month; divided by ``(II) the total number of families receiving cash assistance under the State program funded under this part during the month which include an individual who has attained 18 years of age. ``(iii) Engaged.--A recipient is engaged in work activities for a month in a fiscal year if the recipient is making progress in such activities for at least the minimum average number of hours per week specified in the following table during the month, not fewer than 20 hours per week of which are attributable to an activity described in subparagraph (A), (B), (C), or (D) of subsection (b)(1) (or, in the case of the first 4 weeks for which the recipient is required under this section to participate in work activities, an activity described in subsection (b)(1)(E)): The minimum ``If the month is average number of in fiscal year: hours per week is: 1996.......................................................20 1997.......................................................20 1998.......................................................20 1999...................................................25 2000.......................................................30 2001.......................................................30 2002.......................................................35 2003 or thereafter........................................35. ``(2) Requirement applicable to 2-parent families.-- ``(A) In general.--A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year with respect to 2-parent families receiving assistance under the State program funded under this part: The minimum participation ``If the fiscal year is: rate is: 1996.......................................................50 1997.......................................................50 1998 or thereafter........................................90. ``(B) Participation rate.--For purposes of this paragraph: ``(i) Average monthly rate.--The participation rate of a State for a fiscal year is the average of the participation rates of the State for each month in the fiscal year. ``(ii) Monthly participation rates.--The participation rate of a State for a month is-- ``(I) the number of 2-parent families receiving cash assistance under the State program funded under this part which include at least 1 adult who is engaged in work activities for the month; divided by ``(II) the total number of 2-parent families receiving cash assistance under the State program funded under this part during the month. ``(iii) Engaged.--An adult is engaged in work activities for a month in a fiscal year if the adult is making progress in such activities for at least 35 hours per week during the month, not fewer than 30 hours per week of which are attributable to an activity described in subparagraph (A), (B), (C), or (D) of subsection (b)(1) (or, in the case of the first 4 weeks for which the recipient is required under this section to participate in work activities, an activity described in subsection (b)(1)(E)). ``(b) Definitions.--As used in this section: ``(1) Work activities.--The term `work activities' means-- ``(A) unsubsidized employment; ``(B) subsidized private sector employment; ``(C) subsidized public sector employment or work experience (including work associated with the refurbishing of publicly assisted housing) only if sufficient private sector employment is not available; ``(D) on-the-job training; ``(E) job search and job readiness assistance; ``(F) education directly related to employment, in the case of a recipient who has not attained 20 years of age, and has not received a high school diploma or a certificate of high school equivalency; ``(G) job skills training directly related to employment; or ``(H) at the option of the State, satisfactory attendance at secondary school, in the case of a recipient who-- ``(i) has not completed secondary school; and ``(ii) is a dependent child, or a head of household who has not attained 20 years of age. ``(2) Fiscal year.--The term `fiscal year' means any 12- month period ending on September 30 of a calendar year. ``(c) Penalties.-- ``(1) Against individuals.-- ``(A) Applicable to all families.--A State to which a grant is made under section 403 shall ensure that the amount of cash assistance paid under the State program funded under this part to a recipient of assistance under the program who refuses to engage (within the meaning of subsection (a)(1)(C)(iii)) in work activities required under this section shall be less than the amount of cash assistance that would otherwise be paid to the recipient under the program, subject to such good cause and other exceptions as the State may establish. [[Page H3453]] ``(B) Applicable to 2-parent families.--A State to which a grant is made under section 403 shall reduce the amount of cash assistance otherwise payable to a 2-parent family for a month under the State program funded under this part with respect to an adult in the family who is not engaged (within the meaning of subsection (a)(2)(B)(iii)) in work activities for at least 35 hours per week during the month, pro rata (or more, at the option of the State) with respect to any period during the month for which the adult is not so engaged. ``(C) Limitation on federal authority.--No officer or employee of the Federal Government may regulate the conduct of States under this paragraph or enforce this paragraph against any State. ``(2) Against states.-- ``(A) In general.--If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with subsection (a) for the fiscal year, the Secretary shall reduce by not more than 5 percent the amount of the grant that would (in the absence of this paragraph and subsections (a)(1)(B) and (e) of section 403) be payable to the State under section 403(a)(1)(A) for the immediately succeeding fiscal year. ``(B) Penalty based on severity of failure.--The Secretary shall impose reductions under subparagraph (A) based on the degree of noncompliance. ``(d) Rule of Interpretation.--This section shall not be construed to prohibit a State from offering recipients of assistance under the State program funded under this part an opportunity to participate in an education or training program, consistent with the requirements of this section. ``(e) Research.--The Secretary shall conduct research on the costs and benefits of State activities under this section. ``(f) Evaluation of Innovative Approaches to Employing Recipients of Assistance.--The Secretary shall evaluate innovative approaches to employing recipients of assistance under State programs funded under this part. ``(g) Annual Ranking of States and Review of Most and Least Successful Work Programs.-- ``(1) Annual ranking of states.--The Secretary shall rank the States to which grants are paid under section 403 in the order of their success in moving recipients of assistance under the State program funded under this part into long-term private sector jobs. ``(2) Annual review of most and least successful work programs.--The Secretary shall review the programs of the 3 States most recently ranked highest under paragraph (1) and the 3 States most recently ranked lowest under paragraph (1) that provide parents with work experience, assistance in finding employment, and other work preparation activities and support services to enable the families of such parents to leave the program and become self-sufficient. ``(h) Sense of the Congress.--In complying with this section, each State that operates a program funded under this part is encouraged to assign the highest priority to requiring families that include older preschool or school-age children to be engaged in work activities. ``(i) Sense of the Congress That States Should Impose Certain Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the sense of the Congress that the States should require noncustodial, nonsupporting parents who have not attained 18 years of age to fulfill community work obligations and attend appropriate parenting or money management classes after school. ``SEC. 405. PROHIBITIONS. ``(a) In General.-- ``(1) No assistance for families without a minor child.--A State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family, unless the family includes a minor child. ``(2) Certain payments not to be disregarded in determining the amount of assistance to be provided to a family.-- ``(A) Income security payments.--If a State to which a grant is made under section 403 uses any part of the grant to provide assistance for any individual who is receiving a payment under a State plan for old-age assistance approved under section 2, a State program funded under part B that provides cash payments for foster care, or the supplemental security income program under title XVI (other than service benefits provided through the use of a grant made under part C of such title), then the State may not disregard the payment in determining the amount of assistance to be provided to the family of which the individual is a member under the State program funded under this part. ``(B) Certain support payments.--A State to which a grant is made under section 403 may not disregard an amount distributed to a family under section 457(a)(1)(A) in determining the income of the family for purposes of eligibility for assistance under the State program funded under this part. ``(3) No assistance for certain aliens.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance for an individual who is not a citizen or national of the United States, unless-- ``(A)(i) the individual is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act; and ``(ii) 5 years has elapsed since the date the individual arrived in the United States; ``(B) the individual-- ``(i) is lawfully admitted to the United States for permanent residence; ``(ii) has attained 75 years of age; and ``(iii) has resided in the United States for at least 5 years; or ``(C) the individual is honorably discharged from the Armed Forces of the United States. ``(4) No assistance for out-of-wedlock births to minors.-- ``(A) General rule.--a State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for a child born out-of-wedlock to an individual who has not attained 18 years of age, or for the individual, until the individual attains such age. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(5) No additional assistance for children born to families receiving assistance.-- ``(A) General rule.--A State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for a minor child who is born to-- ``(i) a recipient of benefits under the program operated under this part; or ``(ii) a person who received such benefits at any time during the 10-month period ending with the birth of the child. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(6) No assistance for more than 5 years.-- ``(A) In general.--A State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for the family of an individual who, after attaining 18 years of age, has received benefits under the program operated under this part for 60 months (whether or not consecutive) after the effective date of this part, except as provided under subparagraph (B). ``(B) Hardship exception.-- ``(i) In general.--The State may exempt a family from the application of subparagraph (A) by reason of hardship. ``(ii) Limitation.--The number of families with respect to which an exemption made by a State under clause (i) is in effect shall not exceed 10 percent of the number of families to which the State is providing assistance under the program operated under this part. ``(7) No assistance for families not cooperating in paternity establishment or child support.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family that includes an individual whom the agency responsible for administering the State plan approved under part D determines is not cooperating with the State in establishing the paternity of any child of the individual, or in establishing, modifying, or enforcing a support order with respect to such a child. ``(8) No assistance for families not assigning support rights to the state.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family that includes an individual who has not assigned to the State any rights the individual may have (on behalf of the individual or of any other person for whom the individual has applied for or is receiving such assistance) to support from any other person for any period for which the individual receives such assistance. ``(9) Withholding of portion of assistance for families which include a child whose paternity is not established.-- ``(A) In general.--A State to which a grant is made under section 403 may not fail to-- ``(i) withhold assistance under the State program funded under this part from a family which includes a child whose paternity is not established, in an amount equal to $50 or 15 percent of the amount of the amount of the assistance that would (in the absence of this paragraph) be provided to the family with respect to the child, whichever the State elects; or ``(ii) provide to the family the total amount of assistance so withheld once the paternity of the child is established, if the family is then eligible for such assistance. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(10) Denial of assistance for 10 years to a person convicted of fraudulently misrepresenting residence to a welfare program.--A State to which a grant is made under section 403 may not use any part of the grant to provide assistance to an individual during the 10-year period that begins with the date the individual is convicted in Federal or State court of making a fraudulent statement or representation with respect to the place of residence of the person in order to receive benefits or services under 2 or more programs that are funded under this part. ``(b) Minor Child Defined.--As used in subsection (a), the term `minor child' means an individual-- ``(1) who has not attained 18 years of age; or ``(2) who-- ``(A) has not attained 19 years of age; and ``(B) is a full-time student in a secondary school (or in the equivalent level of vocational or technical training). [[Page H3454]] ``SEC. 406. DATA COLLECTION AND REPORTING. ``(a) In General.--Each State to which a grant is made under section 403 for a fiscal year shall, not later than 6 months after the end of the fiscal year, transmit to the Secretary the following aggregate information on families to which assistance was provided during the fiscal year under the State program operated under this part or an equivalent State program: ``(1) The number of adults receiving such assistance. ``(2) The number of children receiving such assistance and the average age of the children. ``(3) The employment status of such adults, and the average earnings of employed adults receiving such assistance. ``(4) The number of 1-parent families in which the parent is a widow or widower, is divorced, is separated, or has never married. ``(5) The age, race, and educational attainment of the adults receiving such assistance. ``(6) The average assistance provided to the families under the program. ``(7) Whether, at the time of application for assistance under the program, the families or any member of the families receives benefits under any of the following: ``(A) Any housing program. ``(B) The food stamp program under the Food Stamp Act of 1977. ``(C) The Head Start programs carried out under the Head Start Act. ``(D) Any job training program. ``(8) The number of months, since the most recent application for assistance under the program, for which such assistance has been provided to the families. ``(9) The total number of months for which assistance has been provided to the families under the program. ``(10) Any other data necessary to indicate whether the State is in compliance with the plan most recently submitted by the State pursuant to section 402. ``(11) The components of any program carried out by the State to provide employment and training activities in order to comply with section 404, and the average monthly number of adults in each such component. ``(12) The number of part-time job placements and the number of full-time job placements made through the program referred to in paragraph (11), the number of cases with reduced assistance, and the number of cases closed due to employment. ``(b) Authority of States to Use Estimates.--A State may comply with the requirement to provide precise numerical information described in subsection (a) by submitting an estimate which is obtained through the use of scientifically acceptable sampling methods. ``(c) Report on Use of Federal Funds to Cover Administrative Costs and Overhead.--The report required by subsection (a) for a fiscal year shall include a statement of the percentage of the funds paid to the State under this part for the fiscal year that are used to cover administrative costs or overhead. ``(d) Report on State Expenditures on Programs for Needy Families.--The report required by subsection (a) for a fiscal year shall include a statement of the total amount expended by the State during the fiscal year on programs for needy families. ``(e) Report on Noncustodial Parents Participating in Work Activities.--The report required by subsection (a) for a fiscal year shall include the number of noncustodial parents in the State who participated in work activities (as defined in section 404(b)(1)) during the fiscal year. ``SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES. ``(a) Research.--The Secretary may conduct research on the effects, costs, and benefits of State programs funded under this part. ``(b) Development and Evaluation of Innovative Approaches to Employing Welfare Recipients.--The Secretary may assist States in developing, and shall evaluate, innovative approaches to employing recipients of cash assistance under programs funded under this part. In performing such evaluations, the Secretary shall, to the maximum extent feasible, use random assignment to experimental and control groups. ``(c) Studies of Welfare Caseloads.--The Secretary may conduct studies of the caseloads of States operating programs funded under this part. ``(d) Dissemination of Information.--The Secretary shall develop innovative methods of disseminating information on any research, evaluations, and studies conducted under this section, including the facilitation of the sharing of information and best practices among States and localities through the use of computers and other technologies. ``SEC. 408. STUDY BY THE CENSUS BUREAU. ``(a) In General.--The Bureau of the Census shall expand the Survey of Income and Program Participation as necessary to obtain such information as will enable interested persons to evaluate the impact of the amendments made by title I of the Personal Responsibility Act of 1995 on a random national sample of recipients of assistance under State programs funded under this part and (as appropriate) other low income families, and in doing so, shall pay particular attention to the issues of out-of-wedlock birth, welfare dependency, the beginning and end of welfare spells, and the causes of repeat welfare spells. ``(b) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, the Secretary of the Treasury shall pay to the Bureau of the Census $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, and 2000 to carry out subsection (a).''. SEC. 102. REPORT ON DATA PROCESSING. (a) In General.--Within 6 months after the date of the enactment of this Act, the Secretary of Health and Human Services shall prepare and submit to the Congress a report on-- (1) the status of the automated data processing systems operated by the States to assist management in the administration of State programs under part A of title IV of the Social Security Act (whether in effect before or after October 1, 1995); and (2) what would be required to establish a system capable of-- (A) tracking participants in public programs over time; and (B) checking case records of the States to determine whether individuals are participating in public programs of 2 or more States. (b) Preferred Contents.--The report required by subsection (a) should include-- (1) a plan for building on the automated data processing systems of the States to establish a system with the capabilities described in subsection (a)(2); and (2) an estimate of the amount of time required to establish such a system and of the cost of establishing such a system. SEC. 103. TRANSFERS. (a) Child Support Review Penalties.-- (1) Transfer of provision.--Section 403 of the Social Security Act, as added by the amendment made by section 101 of this Act, is amended by adding at the end subsection (h) of section 403, as in effect immediately before the effective date of this title. (2) Conforming amendment.--Section 403(h)(3) of such Act, as in effect pursuant to paragraph (1) of this subsection, is amended by striking ``, section 402(a)(27),''. (b) Assistant Secretary for Family Support.-- (1) Redesignation of provision.--Section 417 of such Act (42 U.S.C. 617), as in effect immediately before the effective date of this title, is amended by striking the following: ``assistant secretary for family support'' ``Sec. 417.'' and inserting the following: ``SEC. 408. ASSISTANT SECRETARY FOR FAMILY SUPPORT.''. (2) Transfer of provision.--Part A of title IV of such Act, as added by the amendment made by section 101 of this Act, is amended by adding at the end the section amended by paragraph (1) of this subsection. (3) Conforming amendment.--Section 408 of such Act, as added by paragraph (2) of this subsection is amended by striking ``, part D, and part F'' and inserting ``and part D''. SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT. (a) Amendments to Title II.-- (1) Section 205(c)(2)(C)(vi) of the Social Security Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesignated by section 321(a)(9)(B) of the Social Security Independence and Program Improvements Act of 1994, is amended-- (A) by inserting ``an agency administering a program funded under part A of title IV or'' before ``an agency operating''; and (B) by striking ``A or D of title IV of this Act'' and inserting ``D of such title''. (2) Section 228(d)(1) of such Act (42 U.S.C. 428(d)(1)) is amended by inserting ``under a State program funded under'' before ``part A of title IV''. (b) Amendments to Part D of Title IV.-- (1) Section 451 of such Act (42 U.S.C. 651) is amended by striking ``aid'' and inserting ``assistance under a State program funded''. (2) Section 452(a)(10)(C) of such Act (42 U.S.C. 652(a)(10)(C)) is amended-- (A) by striking ``aid to families with dependent children'' and inserting ``assistance under a State program funded under part A''; and (B) by striking ``such aid'' and inserting ``such assistance''; and (C) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''. (3) Section 452(a)(10)(F) of such Act (42 U.S.C. 652(a)(10)(F)) is amended-- (A) by striking ``aid under a State plan approved'' and inserting ``assistance under a State program funded''; and (B) by striking ``in accordance with the standards referred to in section 402(a)(26)(B)(ii)'' and inserting ``by the State''. (4) Section 452(b) of such Act (42 U.S.C. 652(b)) is amended in the last sentence by striking ``plan approved under part A'' and inserting ``program funded under part A''. (5) Section 452(d)(3)(B)(i) of such Act (42 U.S.C. 652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and inserting ``1115(b)''. (6) Section 452(g)(2)(A)(ii)(I) of such Act (42 U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid under the State's plan approved'' and inserting ``assistance is being provided under the State program funded under''. (7) Section 452(g)(2)(A) of such Act (42 U.S.C. 652(g)(2)(A)) is amended in the matter following clause (iii) by striking ``aid was being paid under the State's plan approved'' and inserting ``assistance was being provided under the State program funded''. [[Page H3455]] (8) Section 452(g)(2) of such Act (42 U.S.C. 652(g)(2)) is amended in the matter following subparagraph (B)-- (A) by striking ``who is a dependent child by reason of the death of a parent'' and inserting ``with respect to whom assistance is being provided under the State program funded under part A''; and (B) by inserting ``by the State agency administering the State plan approved under this part'' after ``found''; (C) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''; and (D) by striking ``administering the plan under part E determines (as provided in section 454(4)(B))'' and inserting ``determines''. (9) Section 452(h) of such Act (42 U.S.C. 652(h)) is amended by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''. (10) Section 454(5) of such Act (42 U.S.C. 654(5)) is amended-- (A) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''; and (B) by striking ``except that this paragraph shall not apply to such payments for any month following the first month in which the amount collected is sufficient to make such family ineligible for assistance under the State plan approved under part A;''. (11) Section 454(6)(D) of such Act (42 U.S.C. 654(6)(D)) is amended by striking ``aid under a State plan approved'' and inserting ``assistance under a State progrm funded''. (12) Section 456 of such Act (42 U.S.C. 656) is amended by striking ``under section 402(a)(26)'' each place such term appears and inserting ``pursuant to section 405(a)(8)''. (13) Section 466(a)(3)(B) of such Act (42 U.S.C. 666(a)(3)(B)) is amended by striking ``402(a)(26)'' and inserting ``405(a)(8)''. (14) Section 466(b)(2) of such Act (42 U.S.C. 666(b)(2)) is amended by striking ``aid'' and inserting ``assistance under a State program funded''. (c) Repeal of Part F of Title IV.--Part F of title IV of such Act (42 U.S.C. 681-687) is hereby repealed. (d) Amendment to Title X.--Section 1002(a)(7) of such Act (42 U.S.C. 1202(a)(7)) is amended by striking ``aid to families with dependent children under the State plan approved under section 402 of this Act'' and inserting ``assistance under a State program funded under part A of title IV''. (e) Amendments to Title XI.-- (1) Section 1108 of such Act (42 U.S.C. 1308) is amended-- (A) by striking subsections (a), (b), (d), and (e); and (B) by striking ``(c)''. (2) Section 1109 of such Act (42 U.S.C. 1309) is amended by striking ``or part A of title IV,''. (3) Section 1115(a) of such Act (42 U.S.C. 1315(a)) is amended-- (A) in the matter preceding paragraph (1), by striking ``A or''; (B) in paragraph (1), by striking ``402,''; and (C) in paragraph (2), by striking ``403,''. (4) Section 1116 of such Act (42 U.S.C. 1316) is amended-- (A) in each of subsections (a)(1), (b), and (d), by striking ``or part A of title IV,''; and (B) in subsection (a)(3), by striking ``404,''; (5) Section 1118 of such Act (42 U.S.C. 1318) is amended-- (A) by striking ``403(a),''; (B) by striking ``and part A of title IV,''; and (C) by striking ``, and shall, in the case of American Samoa, mean 75 per centum with respect to part A of title IV''. (6) Section 1119 of such Act (42 U.S.C. 1319) is amended-- (A) by striking ``or part A of title IV''; and (B) by striking ``403(a),''. (7) Section 1133(a) of such Act (42 U.S.C

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PERSONAL RESPONSIBILITY ACT OF 1995
(House of Representatives - March 22, 1995)

Text of this article available as: TXT PDF [Pages H3449-H3529] PERSONAL RESPONSIBILITY ACT OF 1995 The SPEAKER pro tempore (Mr. Oxley). Pursuant to House Resolution 117 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. 4. {time} 1437 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. 4) to restore the American family, reduce illegitimacy, control welfare spending and reduce welfare dependence, with Mr. Linder in the chair. The Clerk read the title of the bill. The CHAIRMAN. When the Committee of the Whole rose on Tuesday, March 21, 1995, all time for general debate pursuant to House Resolution 117 had expired. Pursuant to House Resolution 119, no further general debate is in order. Pursuant to the rule, an amendment in the nature of a substitute consisting of the text of H.R. 1214 is adopted and the bill, as amended, is considered as an original bill for the purpose of further amendment and is considered as having been read. The text of H.R. 4, as amended, is as follows: H.R. 1214 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Personal Responsibility Act of 1995''. 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. Block grants to States. Sec. 102. Report on data processing. Sec. 103. Transfers. Sec. 104. Conforming amendments to the Social Security Act. Sec. 105. Conforming amendments to other laws. Sec. 106. Continued application of current standards under medicaid program. Sec. 107. Effective date. TITLE II--CHILD PROTECTION BLOCK GRANT PROGRAM Sec. 201. Establishment of program. Sec. 202. Conforming amendments. Sec. 203. Continued application of current standards under medicaid program. Sec. 204. Effective date. TITLE III--BLOCK GRANTS FOR CHILD CARE AND FOR NUTRITION ASSISTANCE Subtitle A--Child Care Block Grants Sec. 301. Amendments to the Child Care and Development Block Grant Act of 1990. Sec. 302. Repeal of child care assistance authorized by Acts other than the Social Security Act. Subtitle B--Family and School-Based Nutrition Block Grants Chapter 1--Family Nutrition Block Grant Program Sec. 321. Amendment to Child Nutrition Act of 1966. Chapter 2--School-based Nutrition Block Grant Program Sec. 341. Amendment to National School Lunch Act. Chapter 3--Miscellaneous Provisions Sec. 361. Repealers. Subtitle C--Other Repealers and Conforming Amendments Sec. 371. Amendments to laws relating to child protection block grant. Subtitle D--Related Provisions Sec. 381. Requirement that data relating to the incidence of poverty in the United States be published at least every 2 years. Sec. 382. Data on program participation and outcomes. Subtitle E--General Effective Date; Preservation of Actions, Obligations, and Rights Sec. 391. Effective date. Sec. 392. Application of amendments and repealers. 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 Programs Sec. 401. Ineligibility of illegal aliens for certain public benefits programs. Sec. 402. Ineligibility of nonimmigrants for certain public benefits programs. Sec. 403. Limited eligibility of immigrants for 5 specified Federal public benefits programs. Sec. 404. Notification. Subtitle B--Eligibility for State and Local Public Benefits Programs Sec. 411. Ineligibility of illegal aliens for State and local public benefits programs. [[Page H3450]] Sec. 412. Ineligibility of nonimmigrants for State and local public benefits programs. Sec. 413. State authority to limit eligibility of immigrants for State and local means-tested public benefits programs. Subtitle C--Attribution of Income and Affidavits of Support Sec. 421. Attribution of sponsor's income and resources to family- sponsored immigrants. Sec. 422. Requirements for sponsor's affidavit of support. Subtitle D--General Provisions Sec. 431. Definitions. Sec. 432. Construction. Subtitle E--Conforming Amendments Sec. 441. Conforming amendments relating to assisted housing. TITLE V--FOOD STAMP REFORM AND COMMODITY DISTRIBUTION Sec. 501. Short title. Subtitle A--Commodity Distribution Provisions Sec. 511. Short title. Sec. 512. Availability of commodities. Sec. 513. State, local and private supplementation of commodities. Sec. 514. State plan. Sec. 515. Allocation of commodities to States. Sec. 516. Priority system for State distribution of commodities. Sec. 517. Initial processing costs. Sec. 518. Assurances; anticipated use. Sec. 519. Authorization of appropriations. Sec. 520. Commodity supplemental food program. Sec. 521. Commodities not income. Sec. 522. Prohibition against certain State charges. Sec. 523. Definitions. Sec. 524. Regulations. Sec. 525. Finality of determinations. Sec. 526. Sale of commodities prohibited. Sec. 527. Settlement and adjustment of claims. Sec. 528. Repealers; amendments. Subtitle B--Simplification and Reform of Food Stamp Program Sec. 531. Short title. Chapter 1--Simplified Food Stamp Program and State Assistance for Needy Families Sec. 541. Establishment of simplified food stamp program. Sec. 542. Simplified food stamp program. Sec. 543. Conforming amendments. Chapter 2--Food Stamp Program Sec. 551. Thrifty food plan. Sec. 552. Income deductions and energy assistance. Sec. 553. Vehicle allowance. Sec. 554. Work requirements. Sec. 555. Comparable treatment of disqualified individuals. Sec. 556. Encourage electronic benefit transfer systems. Sec. 557. Value of minimum allotment. Sec. 558. Initial month benefit determination. Sec. 559. Improving food stamp program management. Sec. 560. Work supplementation or support program. Sec. 561. Obligations and allotments. Chapter 3--Program Integrity Sec. 571. Authority to establish authorization periods. Sec. 572. Condition precedent for approval of retail food stores and wholesale food concerns. Sec. 573. Waiting period for retailers that are denied approval to accept coupons. Sec. 574. Disqualification of retail food stores and wholesale food concerns. Sec. 575. Authority to suspend stores violating program requirements pending administrative and judicial review. Sec. 576. Criminal forfeiture. Sec. 577. Expanded definition of ``coupon''. Sec. 578. Doubled penalties for violating food stamp program requirements. Sec. 579. Disqualification of convicted individuals. Sec. 580. Claims collection. Subtitle C--Effective Dates and Miscellaneous Provisions Sec. 591. Effective dates. Sec. 592. Sense of the congress. Sec. 593. Deficit reduction. TITLE VI--SUPPLEMENTAL SECURITY INCOME Sec. 601. Denial of supplemental security income benefits by reason of disability to drug addicts and alcoholics. Sec. 602. Supplemental security income benefits for disabled children. Sec. 603. Examination of mental listings used to determine eligibility of children for SSI benefits by reason of disability. Sec. 604. Limitation on payments to Puerto Rico, the Virgin Islands, and Guam under programs of aid to the aged, blind, or disabled. Sec. 605. Repeal of maintenance of effort requirements applicable to optional State programs for supplementation of SSI benefits. TITLE VII--CHILD SUPPORT Sec. 700. References. Subtitle A--Eligibility for Services; Distribution of Payments Sec. 701. State obligation to provide child support enforcement services. Sec. 702. Distribution of child support collections. Sec. 703. Privacy safeguards. Subtitle B--Locate and Case Tracking Sec. 711. State case registry. Sec. 712. Collection and disbursement of support payments. Sec. 713. State directory of new hires. Sec. 714. Amendments concerning income withholding. Sec. 715. Locator information from interstate networks. Sec. 716. Expansion of the Federal Parent Locator Service. Sec. 717. Collection and use of social security numbers for use in child support enforcement. Subtitle C--Streamlining and Uniformity of Procedures Sec. 721. Adoption of uniform State laws. Sec. 722. Improvements to full faith and credit for child support orders. Sec. 723. Administrative enforcement in interstate cases. Sec. 724. Use of forms in interstate enforcement. Sec. 725. State laws providing expedited procedures. Subtitle D--Paternity Establishment Sec. 731. State laws concerning paternity establishment. Sec. 732. Outreach for voluntary paternity establishment. Sec. 733. Cooperation by applicants for and recipients of temporary family assistance. Subtitle E--Program Administration and Funding Sec. 741. Federal matching payments. Sec. 742. Performance-based incentives and penalties. Sec. 743. Federal and State reviews and audits. Sec. 744. Required reporting procedures. Sec. 745. Automated data processing requirements. Sec. 746. Technical assistance. Sec. 747. Reports and data collection by the Secretary. Subtitle F--Establishment and Modification of Support Orders Sec. 751. Simplified process for review and adjustment of child support orders. Sec. 752. Furnishing consumer reports for certain purposes relating to child support. Subtitle G--Enforcement of Support Orders Sec. 761. Federal income tax refund offset. Sec. 762. Authority to collect support from Federal employees. Sec. 763. Enforcement of child support obligations of members of the Armed Forces. Sec. 764. Voiding of fraudulent transfers. Sec. 765. Sense of the Congress that States should suspend drivers', business, and occupational licenses of persons owing past-due child support. Sec. 766. Work requirement for persons owing past-due child support. Sec. 767. Definition of support order. Subtitle H--Medical Support Sec. 771. Technical correction to ERISA definition of medical child support order. Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential Parents Sec. 781. Grants to States for access and visitation programs. Subtitle J--Effect of Enactment Sec. 791. Effective dates. TITLE VIII--MISCELLANEOUS PROVISIONS Sec. 801. Scoring. Sec. 802. Provisions to encourage electronic benefit transfer systems. TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES SEC. 101. BLOCK GRANTS TO STATES. Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is amended by striking part A, except sections 403(h) and 417, and inserting the following: ``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES ``SEC. 401. PURPOSE. ``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 the children in such families may be cared for in their homes or in the homes of relatives; ``(2) end the dependence of needy parents on government benefits by promoting work and marriage; and ``(3) discourage out-of-wedlock births. ``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 3-year period immediately preceding the fiscal year, has submitted to the Secretary a plan that includes the following: ``(1) Outline of family assistance program.--A written document that outlines how the State intends to do the following: [[Page H3451]] ``(A) Conduct a program designed to-- ``(i) provide cash benefits to needy families with children; and ``(ii) provide parents of children in such families with work experience, assistance in finding employment, and other work preparation activities and support services that the State considers appropriate to enable such families to leave the program and become self-sufficient. ``(B) Require at least 1 parent of a child in any family which has received benefits for more than 24 months (whether or not consecutive) under the program to engage in work activities (as defined by the State). ``(C) Ensure that parents receiving assistance under the program engage in work activities in accordance with section 404. ``(D) Treat interstate immigrants, if families including such immigrants are to be treated differently than other families. ``(E) Take such reasonable steps as the State deems necessary to restrict the use and disclosure of information about individuals and families receiving benefits under the program. ``(F) Take actions to reduce the incidence of out-of- wedlock births, which may include providing unmarried mothers and unmarried fathers with services which will help them-- ``(i) avoid subsequent pregnancies; and ``(ii) provide adequate care to their children. ``(G) Reduce teenage pregnancy, including (at the option of the State) through the provision of education, counseling, and health services to male and female teenagers. ``(2) Certification that the state will operate a child support enforcement program.--A certification by the Governor 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, in a manner that complies with the requirements of such part. ``(3) Certification that the state will operate a child protection program.--A certification by the Governor of the State that, during the fiscal year, the State will operate a child protection program in accordance with part B, which includes a foster care program and an adoption assistance program. ``(b) Determinations.--The Secretary shall determine whether a plan submitted pursuant to subsection (a) contains the material required by subsection (a). ``SEC. 403. PAYMENTS TO STATES. ``(a) Entitlements.-- ``(1) Grants for family assistance.-- ``(A) In general.--Each eligible State shall be entitled to receive from the Secretary for each of fiscal years 1996, 1997, 1998, 1999, and 2000 a grant in an amount equal to the State family assistance grant for the fiscal year. ``(B) Grant increased to reward states that reduce out-of- wedlock births.--The amount of the grant payable to a State under subparagraph (A) for fiscal year 1998 or any succeeding fiscal year shall be increased by-- ``(i) 5 percent if 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; or ``(ii) 10 percent if 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. ``(2) Supplemental grants to adjust for population increases.--In addition to any grant under paragraph (1), each eligible State shall be entitled to receive from the Secretary for each of fiscal years 1997, 1998, 1999, and 2000, a grant in an amount equal to the State proportion of $100,000,000. ``(b) Definitions.--As used in this section: ``(1) State family assistance grant.-- ``(A) In general.--The term `State family assistance grant' means, with respect to a fiscal year, the provisional State family assistance grant adjusted in accordance with subparagraph (C). ``(B) Provisional state family assistance grant.--The term `provisional State family assistance grant' means-- ``(i) the greater of-- ``(I) \1/3\ of the total amount of obligations to the State under section 403 of this title (as in effect before October 1, 1995) for fiscal years 1992, 1993, and 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); or ``(II) the total amount of obligations to the State under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); multiplied by ``(ii)(I) the total amount of outlays to all of the States under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); divided by ``(II) the total amount of obligations to all of the States under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section). ``(C) Proportional adjustment.--The Secretary shall determine the percentage (if any) by which each provisional State family assistance grant must be reduced or increased to ensure that the sum of such grants equals $15,390,296,000, and shall adjust each provisional State family assistance grant by the percentage so determined. ``(2) Illegitimacy ratio.--The term `illegitimacy ratio' means, with respect to a State and a fiscal year-- ``(A) the sum of-- ``(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; and ``(ii) the amount (if any) by which the number of abortions performed in the State during the most recent fiscal year for which such information is available exceeds the number of abortions performed in the State during the fiscal year that immediately precedes such most recent fiscal year; divided by ``(B) the number of births that occurred in the State during the most recent fiscal year for which such information is available. ``(3) State proportion.--The term `State proportion' means, with respect to a fiscal year, the amount that bears the same ratio to the amount specified in subsection (a)(2) as the increase (if any) in the population of the State for the most recent fiscal year for which such information is available over the population of the State for the fiscal year that immediately precedes such most recent fiscal year bears to the total increase in the population of all States which have such an increase in population, as determined by the Secretary using data from the Bureau of the Census. ``(4) Fiscal year.--The term `fiscal year' means any 12- month period ending on September 30 of a calendar year. ``(5) State.--The term `State' includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa. ``(c) Use of Grant.-- ``(1) In general.--A State to which a grant is made under this section may use the grant in any manner that is reasonably calculated to accomplish the purpose of this part, subject to this part, including to provide noncash assistance to mothers who have not attained 18 years of age and their children and to provide low income households with assistance in meeting home heating and cooling costs. ``(2) Authority to treat interstate immigrants under rules of former state.--A State to which a grant is made under this section may apply to a family the rules of the program operated 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. ``(3) Authority to use portion of grant for other purposes.-- ``(A) In general.--A State may use not more than 30 percent of the amount of the grant made to the State under this section for a fiscal year to carry out a State program pursuant to any or all of the following provisions of law: ``(i) Part B of this title. ``(ii) Title XX of this Act. ``(iii) Any provision of law, enacted into law during the 104th Congress, under which grants are made to States for food and nutrition. ``(iv) The Child Care and Development Block Grant Act of 1990. ``(B) Applicable rules.--Any amount paid to the State under this part that is used to carry out a State program pursuant to a provision of law specified in subparagraph (A) shall not be subject to the requirements of this part, but shall be subject to the requirements that apply to Federal funds provided directly under the provision of law to carry out the program. ``(4) Authority to reserve certain amounts for emergency benefits.-- ``(A) In general.--A State may reserve amounts paid to the State under this section for any fiscal year for the purpose of providing emergency assistance under the State program operated under this part. ``(B) Authority to use excess reserves for any purpose.-- During a fiscal year, a State may use for any purpose deemed appropriate by the State amounts held in reserve under subparagraph (A) to the extent exceeding 120 percent of the amount of the grant payable to the State under this section for the fiscal year. ``(5) Implementation of electronic benefit transfer system.--A State to which a grant is made under this section 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. ``(d) Timing of Payments.--The Secretary shall pay each grant payable to a State under this section in quarterly installments. ``(e) Penalties.-- ``(1) For use of grant in violation of this part.-- ``(A) In general.--If an audit conducted pursuant to chapter 75 of title 31, United States Code, finds that an amount paid to a State under this section for a fiscal year has been used in violation of this part, then the Secretary shall reduce the amount of the grant otherwise payable to the State under this section for the immediately succeeding fiscal year by the amount so used. ``(B) Limitation on amount of penalty.--In carrying out subparagraph (A), the Secretary shall not reduce any quarterly payment by more than 25 percent. ``(C) Carryforward of unrecovered penalties.--To the extent that subparagraph (B) prevents the Secretary from recovering during a fiscal year the full amount of a penalty imposed on a State under subparagraph (A) for a prior fiscal year, the Secretary shall apply subparagraph (A) to the grant otherwise payable to the State under this section for the immediately succeeding fiscal year. [[Page H3452]] ``(2) For failure to submit required report.-- ``(A) In general.--If the Secretary determines that a State has not, within 6 months after the end of a fiscal year, submitted the report required by section 406 for the fiscal year, the Secretary shall reduce by 3 percent the amount of the grant that would (in the absence of this subsection, subsection (a)(1)(B) of this section, and section 404(c)(2)) be payable to the State under subsection (a)(1)(A) for the immediately succeeding fiscal year. ``(B) Rescission of penalty.--The Secretary shall rescind a penalty imposed on a State under subparagraph (A) with respect to a report for a fiscal year if the State submits the report before the end of the immediately succeeding fiscal year. ``(C) For failure to participate in the income and eligibility verification system.--If the Secretary determines that a State program funded under this part is not participating during a fiscal year in the income and eligibility verification system required by section 1137, the Secretary shall reduce by 1 percent the amount of the grant that would (in the absence of this subsection, subsection (a)(1)(B) of this section, and section 404(c)(2)) be payable to the State under subsection (a)(1)(A) for the fiscal year. ``(f) Limitation on Federal Authority.--The Secretary may not regulate the conduct of States under this part or enforce any provision of this part, except to the extent expressly provided in this part. ``(g) Federal Rainy Day Fund.-- ``(1) Establishment.--There is hereby established in the Treasury of the United States a revolving loan fund which shall be known as the `Federal Rainy Day Fund'. ``(2) Deposits into fund.-- ``(A) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, $1,000,000,000 are hereby appropriated for fiscal year 1996 for payment to the Federal Rainy Day Fund. ``(B) Loan repayments.--The Secretary shall deposit into the fund any principal or interest payment received with respect to a loan made under this subsection. ``(3) Availability.--Amounts in the fund are authorized to remain available without fiscal year limitation for the purpose of making loans and receiving payments of principal and interest on such loans, in accordance with this subsection. ``(4) Use of fund.-- ``(A) Loans to qualified states.-- ``(i) In general.--The Secretary shall make loans from the fund to any qualified State for a period to maturity of not more than 3 years. ``(ii) Rate of interest.--The Secretary shall charge and collect interest on any loan made under clause (i) at a rate equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the period to maturity of the loan. ``(iii) Maximum loan.--The amount of any loan made to a State under clause (i) during a fiscal year shall not exceed the lesser of-- ``(I) 50 percent of the amount of the grant payable to the State under this section for the fiscal year; or ``(II) $100,000,000. ``(B) Qualified state defined.--A State is a qualified State for purposes of subparagraph (A) if the unemployment rate of the State (as determined by the Bureau of Labor Statistics) for the most recent 3-month period for which such information is available is-- ``(i) more than 6.5 percent; and ``(ii) at least 110 percent of such rate for the corresponding 3-month period in either of the 2 immediately preceding calendar years. ``SEC. 404. MANDATORY WORK REQUIREMENTS. ``(a) Participation Rate Requirements.-- ``(1) Requirement applicable to all families receiving assistance.-- ``(A) In general.--A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year with respect to all families receiving assistance under the State program funded under this part: The minimum participation ``If the fiscal rate is: 1996............................................................4 1997............................................................4 1998............................................................8 1999...........................................................12 2000...........................................................17 2001...........................................................29 2002...........................................................40 2003 or thereafter............................................50. ``(B) Pro rata reduction of participation rate due to caseload reductions not required by federal law.--The minimum participation rate otherwise required by subparagraph (A) for a fiscal year shall be reduced by a percentage equal to the percentage (if any) by which the number of families receiving assistance during the fiscal year under the State program funded under this part is less than the number of families that received aid under the State plan approved under part A of this title (as in effect before October 1, 1995) during the fiscal year immediately preceding such effective date, except to the extent that the Secretary determines that the reduction in the number of families receiving such assistance is required by Federal law. ``(C) Participation rate.--For purposes of this paragraph: ``(i) Average monthly rate.--The participation rate of a State for a fiscal year is the average of the participation rates of the State for each month in the fiscal year. ``(ii) Monthly participation rates.--The participation rate of a State for a month is-- ``(I) the number of families receiving cash assistance under the State program funded under this part which include an individual who is engaged in work activities for the month; divided by ``(II) the total number of families receiving cash assistance under the State program funded under this part during the month which include an individual who has attained 18 years of age. ``(iii) Engaged.--A recipient is engaged in work activities for a month in a fiscal year if the recipient is making progress in such activities for at least the minimum average number of hours per week specified in the following table during the month, not fewer than 20 hours per week of which are attributable to an activity described in subparagraph (A), (B), (C), or (D) of subsection (b)(1) (or, in the case of the first 4 weeks for which the recipient is required under this section to participate in work activities, an activity described in subsection (b)(1)(E)): The minimum ``If the month is average number of in fiscal year: hours per week is: 1996.......................................................20 1997.......................................................20 1998.......................................................20 1999...................................................25 2000.......................................................30 2001.......................................................30 2002.......................................................35 2003 or thereafter........................................35. ``(2) Requirement applicable to 2-parent families.-- ``(A) In general.--A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year with respect to 2-parent families receiving assistance under the State program funded under this part: The minimum participation ``If the fiscal year is: rate is: 1996.......................................................50 1997.......................................................50 1998 or thereafter........................................90. ``(B) Participation rate.--For purposes of this paragraph: ``(i) Average monthly rate.--The participation rate of a State for a fiscal year is the average of the participation rates of the State for each month in the fiscal year. ``(ii) Monthly participation rates.--The participation rate of a State for a month is-- ``(I) the number of 2-parent families receiving cash assistance under the State program funded under this part which include at least 1 adult who is engaged in work activities for the month; divided by ``(II) the total number of 2-parent families receiving cash assistance under the State program funded under this part during the month. ``(iii) Engaged.--An adult is engaged in work activities for a month in a fiscal year if the adult is making progress in such activities for at least 35 hours per week during the month, not fewer than 30 hours per week of which are attributable to an activity described in subparagraph (A), (B), (C), or (D) of subsection (b)(1) (or, in the case of the first 4 weeks for which the recipient is required under this section to participate in work activities, an activity described in subsection (b)(1)(E)). ``(b) Definitions.--As used in this section: ``(1) Work activities.--The term `work activities' means-- ``(A) unsubsidized employment; ``(B) subsidized private sector employment; ``(C) subsidized public sector employment or work experience (including work associated with the refurbishing of publicly assisted housing) only if sufficient private sector employment is not available; ``(D) on-the-job training; ``(E) job search and job readiness assistance; ``(F) education directly related to employment, in the case of a recipient who has not attained 20 years of age, and has not received a high school diploma or a certificate of high school equivalency; ``(G) job skills training directly related to employment; or ``(H) at the option of the State, satisfactory attendance at secondary school, in the case of a recipient who-- ``(i) has not completed secondary school; and ``(ii) is a dependent child, or a head of household who has not attained 20 years of age. ``(2) Fiscal year.--The term `fiscal year' means any 12- month period ending on September 30 of a calendar year. ``(c) Penalties.-- ``(1) Against individuals.-- ``(A) Applicable to all families.--A State to which a grant is made under section 403 shall ensure that the amount of cash assistance paid under the State program funded under this part to a recipient of assistance under the program who refuses to engage (within the meaning of subsection (a)(1)(C)(iii)) in work activities required under this section shall be less than the amount of cash assistance that would otherwise be paid to the recipient under the program, subject to such good cause and other exceptions as the State may establish. [[Page H3453]] ``(B) Applicable to 2-parent families.--A State to which a grant is made under section 403 shall reduce the amount of cash assistance otherwise payable to a 2-parent family for a month under the State program funded under this part with respect to an adult in the family who is not engaged (within the meaning of subsection (a)(2)(B)(iii)) in work activities for at least 35 hours per week during the month, pro rata (or more, at the option of the State) with respect to any period during the month for which the adult is not so engaged. ``(C) Limitation on federal authority.--No officer or employee of the Federal Government may regulate the conduct of States under this paragraph or enforce this paragraph against any State. ``(2) Against states.-- ``(A) In general.--If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with subsection (a) for the fiscal year, the Secretary shall reduce by not more than 5 percent the amount of the grant that would (in the absence of this paragraph and subsections (a)(1)(B) and (e) of section 403) be payable to the State under section 403(a)(1)(A) for the immediately succeeding fiscal year. ``(B) Penalty based on severity of failure.--The Secretary shall impose reductions under subparagraph (A) based on the degree of noncompliance. ``(d) Rule of Interpretation.--This section shall not be construed to prohibit a State from offering recipients of assistance under the State program funded under this part an opportunity to participate in an education or training program, consistent with the requirements of this section. ``(e) Research.--The Secretary shall conduct research on the costs and benefits of State activities under this section. ``(f) Evaluation of Innovative Approaches to Employing Recipients of Assistance.--The Secretary shall evaluate innovative approaches to employing recipients of assistance under State programs funded under this part. ``(g) Annual Ranking of States and Review of Most and Least Successful Work Programs.-- ``(1) Annual ranking of states.--The Secretary shall rank the States to which grants are paid under section 403 in the order of their success in moving recipients of assistance under the State program funded under this part into long-term private sector jobs. ``(2) Annual review of most and least successful work programs.--The Secretary shall review the programs of the 3 States most recently ranked highest under paragraph (1) and the 3 States most recently ranked lowest under paragraph (1) that provide parents with work experience, assistance in finding employment, and other work preparation activities and support services to enable the families of such parents to leave the program and become self-sufficient. ``(h) Sense of the Congress.--In complying with this section, each State that operates a program funded under this part is encouraged to assign the highest priority to requiring families that include older preschool or school-age children to be engaged in work activities. ``(i) Sense of the Congress That States Should Impose Certain Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the sense of the Congress that the States should require noncustodial, nonsupporting parents who have not attained 18 years of age to fulfill community work obligations and attend appropriate parenting or money management classes after school. ``SEC. 405. PROHIBITIONS. ``(a) In General.-- ``(1) No assistance for families without a minor child.--A State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family, unless the family includes a minor child. ``(2) Certain payments not to be disregarded in determining the amount of assistance to be provided to a family.-- ``(A) Income security payments.--If a State to which a grant is made under section 403 uses any part of the grant to provide assistance for any individual who is receiving a payment under a State plan for old-age assistance approved under section 2, a State program funded under part B that provides cash payments for foster care, or the supplemental security income program under title XVI (other than service benefits provided through the use of a grant made under part C of such title), then the State may not disregard the payment in determining the amount of assistance to be provided to the family of which the individual is a member under the State program funded under this part. ``(B) Certain support payments.--A State to which a grant is made under section 403 may not disregard an amount distributed to a family under section 457(a)(1)(A) in determining the income of the family for purposes of eligibility for assistance under the State program funded under this part. ``(3) No assistance for certain aliens.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance for an individual who is not a citizen or national of the United States, unless-- ``(A)(i) the individual is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act; and ``(ii) 5 years has elapsed since the date the individual arrived in the United States; ``(B) the individual-- ``(i) is lawfully admitted to the United States for permanent residence; ``(ii) has attained 75 years of age; and ``(iii) has resided in the United States for at least 5 years; or ``(C) the individual is honorably discharged from the Armed Forces of the United States. ``(4) No assistance for out-of-wedlock births to minors.-- ``(A) General rule.--a State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for a child born out-of-wedlock to an individual who has not attained 18 years of age, or for the individual, until the individual attains such age. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(5) No additional assistance for children born to families receiving assistance.-- ``(A) General rule.--A State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for a minor child who is born to-- ``(i) a recipient of benefits under the program operated under this part; or ``(ii) a person who received such benefits at any time during the 10-month period ending with the birth of the child. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(6) No assistance for more than 5 years.-- ``(A) In general.--A State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for the family of an individual who, after attaining 18 years of age, has received benefits under the program operated under this part for 60 months (whether or not consecutive) after the effective date of this part, except as provided under subparagraph (B). ``(B) Hardship exception.-- ``(i) In general.--The State may exempt a family from the application of subparagraph (A) by reason of hardship. ``(ii) Limitation.--The number of families with respect to which an exemption made by a State under clause (i) is in effect shall not exceed 10 percent of the number of families to which the State is providing assistance under the program operated under this part. ``(7) No assistance for families not cooperating in paternity establishment or child support.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family that includes an individual whom the agency responsible for administering the State plan approved under part D determines is not cooperating with the State in establishing the paternity of any child of the individual, or in establishing, modifying, or enforcing a support order with respect to such a child. ``(8) No assistance for families not assigning support rights to the state.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family that includes an individual who has not assigned to the State any rights the individual may have (on behalf of the individual or of any other person for whom the individual has applied for or is receiving such assistance) to support from any other person for any period for which the individual receives such assistance. ``(9) Withholding of portion of assistance for families which include a child whose paternity is not established.-- ``(A) In general.--A State to which a grant is made under section 403 may not fail to-- ``(i) withhold assistance under the State program funded under this part from a family which includes a child whose paternity is not established, in an amount equal to $50 or 15 percent of the amount of the amount of the assistance that would (in the absence of this paragraph) be provided to the family with respect to the child, whichever the State elects; or ``(ii) provide to the family the total amount of assistance so withheld once the paternity of the child is established, if the family is then eligible for such assistance. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(10) Denial of assistance for 10 years to a person convicted of fraudulently misrepresenting residence to a welfare program.--A State to which a grant is made under section 403 may not use any part of the grant to provide assistance to an individual during the 10-year period that begins with the date the individual is convicted in Federal or State court of making a fraudulent statement or representation with respect to the place of residence of the person in order to receive benefits or services under 2 or more programs that are funded under this part. ``(b) Minor Child Defined.--As used in subsection (a), the term `minor child' means an individual-- ``(1) who has not attained 18 years of age; or ``(2) who-- ``(A) has not attained 19 years of age; and ``(B) is a full-time student in a secondary school (or in the equivalent level of vocational or technical training). [[Page H3454]] ``SEC. 406. DATA COLLECTION AND REPORTING. ``(a) In General.--Each State to which a grant is made under section 403 for a fiscal year shall, not later than 6 months after the end of the fiscal year, transmit to the Secretary the following aggregate information on families to which assistance was provided during the fiscal year under the State program operated under this part or an equivalent State program: ``(1) The number of adults receiving such assistance. ``(2) The number of children receiving such assistance and the average age of the children. ``(3) The employment status of such adults, and the average earnings of employed adults receiving such assistance. ``(4) The number of 1-parent families in which the parent is a widow or widower, is divorced, is separated, or has never married. ``(5) The age, race, and educational attainment of the adults receiving such assistance. ``(6) The average assistance provided to the families under the program. ``(7) Whether, at the time of application for assistance under the program, the families or any member of the families receives benefits under any of the following: ``(A) Any housing program. ``(B) The food stamp program under the Food Stamp Act of 1977. ``(C) The Head Start programs carried out under the Head Start Act. ``(D) Any job training program. ``(8) The number of months, since the most recent application for assistance under the program, for which such assistance has been provided to the families. ``(9) The total number of months for which assistance has been provided to the families under the program. ``(10) Any other data necessary to indicate whether the State is in compliance with the plan most recently submitted by the State pursuant to section 402. ``(11) The components of any program carried out by the State to provide employment and training activities in order to comply with section 404, and the average monthly number of adults in each such component. ``(12) The number of part-time job placements and the number of full-time job placements made through the program referred to in paragraph (11), the number of cases with reduced assistance, and the number of cases closed due to employment. ``(b) Authority of States to Use Estimates.--A State may comply with the requirement to provide precise numerical information described in subsection (a) by submitting an estimate which is obtained through the use of scientifically acceptable sampling methods. ``(c) Report on Use of Federal Funds to Cover Administrative Costs and Overhead.--The report required by subsection (a) for a fiscal year shall include a statement of the percentage of the funds paid to the State under this part for the fiscal year that are used to cover administrative costs or overhead. ``(d) Report on State Expenditures on Programs for Needy Families.--The report required by subsection (a) for a fiscal year shall include a statement of the total amount expended by the State during the fiscal year on programs for needy families. ``(e) Report on Noncustodial Parents Participating in Work Activities.--The report required by subsection (a) for a fiscal year shall include the number of noncustodial parents in the State who participated in work activities (as defined in section 404(b)(1)) during the fiscal year. ``SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES. ``(a) Research.--The Secretary may conduct research on the effects, costs, and benefits of State programs funded under this part. ``(b) Development and Evaluation of Innovative Approaches to Employing Welfare Recipients.--The Secretary may assist States in developing, and shall evaluate, innovative approaches to employing recipients of cash assistance under programs funded under this part. In performing such evaluations, the Secretary shall, to the maximum extent feasible, use random assignment to experimental and control groups. ``(c) Studies of Welfare Caseloads.--The Secretary may conduct studies of the caseloads of States operating programs funded under this part. ``(d) Dissemination of Information.--The Secretary shall develop innovative methods of disseminating information on any research, evaluations, and studies conducted under this section, including the facilitation of the sharing of information and best practices among States and localities through the use of computers and other technologies. ``SEC. 408. STUDY BY THE CENSUS BUREAU. ``(a) In General.--The Bureau of the Census shall expand the Survey of Income and Program Participation as necessary to obtain such information as will enable interested persons to evaluate the impact of the amendments made by title I of the Personal Responsibility Act of 1995 on a random national sample of recipients of assistance under State programs funded under this part and (as appropriate) other low income families, and in doing so, shall pay particular attention to the issues of out-of-wedlock birth, welfare dependency, the beginning and end of welfare spells, and the causes of repeat welfare spells. ``(b) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, the Secretary of the Treasury shall pay to the Bureau of the Census $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, and 2000 to carry out subsection (a).''. SEC. 102. REPORT ON DATA PROCESSING. (a) In General.--Within 6 months after the date of the enactment of this Act, the Secretary of Health and Human Services shall prepare and submit to the Congress a report on-- (1) the status of the automated data processing systems operated by the States to assist management in the administration of State programs under part A of title IV of the Social Security Act (whether in effect before or after October 1, 1995); and (2) what would be required to establish a system capable of-- (A) tracking participants in public programs over time; and (B) checking case records of the States to determine whether individuals are participating in public programs of 2 or more States. (b) Preferred Contents.--The report required by subsection (a) should include-- (1) a plan for building on the automated data processing systems of the States to establish a system with the capabilities described in subsection (a)(2); and (2) an estimate of the amount of time required to establish such a system and of the cost of establishing such a system. SEC. 103. TRANSFERS. (a) Child Support Review Penalties.-- (1) Transfer of provision.--Section 403 of the Social Security Act, as added by the amendment made by section 101 of this Act, is amended by adding at the end subsection (h) of section 403, as in effect immediately before the effective date of this title. (2) Conforming amendment.--Section 403(h)(3) of such Act, as in effect pursuant to paragraph (1) of this subsection, is amended by striking ``, section 402(a)(27),''. (b) Assistant Secretary for Family Support.-- (1) Redesignation of provision.--Section 417 of such Act (42 U.S.C. 617), as in effect immediately before the effective date of this title, is amended by striking the following: ``assistant secretary for family support'' ``Sec. 417.'' and inserting the following: ``SEC. 408. ASSISTANT SECRETARY FOR FAMILY SUPPORT.''. (2) Transfer of provision.--Part A of title IV of such Act, as added by the amendment made by section 101 of this Act, is amended by adding at the end the section amended by paragraph (1) of this subsection. (3) Conforming amendment.--Section 408 of such Act, as added by paragraph (2) of this subsection is amended by striking ``, part D, and part F'' and inserting ``and part D''. SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT. (a) Amendments to Title II.-- (1) Section 205(c)(2)(C)(vi) of the Social Security Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesignated by section 321(a)(9)(B) of the Social Security Independence and Program Improvements Act of 1994, is amended-- (A) by inserting ``an agency administering a program funded under part A of title IV or'' before ``an agency operating''; and (B) by striking ``A or D of title IV of this Act'' and inserting ``D of such title''. (2) Section 228(d)(1) of such Act (42 U.S.C. 428(d)(1)) is amended by inserting ``under a State program funded under'' before ``part A of title IV''. (b) Amendments to Part D of Title IV.-- (1) Section 451 of such Act (42 U.S.C. 651) is amended by striking ``aid'' and inserting ``assistance under a State program funded''. (2) Section 452(a)(10)(C) of such Act (42 U.S.C. 652(a)(10)(C)) is amended-- (A) by striking ``aid to families with dependent children'' and inserting ``assistance under a State program funded under part A''; and (B) by striking ``such aid'' and inserting ``such assistance''; and (C) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''. (3) Section 452(a)(10)(F) of such Act (42 U.S.C. 652(a)(10)(F)) is amended-- (A) by striking ``aid under a State plan approved'' and inserting ``assistance under a State program funded''; and (B) by striking ``in accordance with the standards referred to in section 402(a)(26)(B)(ii)'' and inserting ``by the State''. (4) Section 452(b) of such Act (42 U.S.C. 652(b)) is amended in the last sentence by striking ``plan approved under part A'' and inserting ``program funded under part A''. (5) Section 452(d)(3)(B)(i) of such Act (42 U.S.C. 652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and inserting ``1115(b)''. (6) Section 452(g)(2)(A)(ii)(I) of such Act (42 U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid under the State's plan approved'' and inserting ``assistance is being provided under the State program funded under''. (7) Section 452(g)(2)(A) of such Act (42 U.S.C. 652(g)(2)(A)) is amended in the matter following clause (iii) by striking ``aid was being paid under the State's plan approved'' and inserting ``assistance was being provided under the State program funded''. [[Page H3455]] (8) Section 452(g)(2) of such Act (42 U.S.C. 652(g)(2)) is amended in the matter following subparagraph (B)-- (A) by striking ``who is a dependent child by reason of the death of a parent'' and inserting ``with respect to whom assistance is being provided under the State program funded under part A''; and (B) by inserting ``by the State agency administering the State plan approved under this part'' after ``found''; (C) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''; and (D) by striking ``administering the plan under part E determines (as provided in section 454(4)(B))'' and inserting ``determines''. (9) Section 452(h) of such Act (42 U.S.C. 652(h)) is amended by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''. (10) Section 454(5) of such Act (42 U.S.C. 654(5)) is amended-- (A) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''; and (B) by striking ``except that this paragraph shall not apply to such payments for any month following the first month in which the amount collected is sufficient to make such family ineligible for assistance under the State plan approved under part A;''. (11) Section 454(6)(D) of such Act (42 U.S.C. 654(6)(D)) is amended by striking ``aid under a State plan approved'' and inserting ``assistance under a State progrm funded''. (12) Section 456 of such Act (42 U.S.C. 656) is amended by striking ``under section 402(a)(26)'' each place such term appears and inserting ``pursuant to section 405(a)(8)''. (13) Section 466(a)(3)(B) of such Act (42 U.S.C. 666(a)(3)(B)) is amended by striking ``402(a)(26)'' and inserting ``405(a)(8)''. (14) Section 466(b)(2) of such Act (42 U.S.C. 666(b)(2)) is amended by striking ``aid'' and inserting ``assistance under a State program funded''. (c) Repeal of Part F of Title IV.--Part F of title IV of such Act (42 U.S.C. 681-687) is hereby repealed. (d) Amendment to Title X.--Section 1002(a)(7) of such Act (42 U.S.C. 1202(a)(7)) is amended by striking ``aid to families with dependent children under the State plan approved under section 402 of this Act'' and inserting ``assistance under a State program funded under part A of title IV''. (e) Amendments to Title XI.-- (1) Section 1108 of such Act (42 U.S.C. 1308) is amended-- (A) by striking subsections (a), (b), (d), and (e); and (B) by striking ``(c)''. (2) Section 1109 of such Act (42 U.S.C. 1309) is amended by striking ``or part A of title IV,''. (3) Section 1115(a) of such Act (42 U.S.C. 1315(a)) is amended-- (A) in the matter preceding paragraph (1), by striking ``A or''; (B) in paragraph (1), by striking ``402,''; and (C) in paragraph (2), by striking ``403,''. (4) Section 1116 of such Act (42 U.S.C. 1316) is amended-- (A) in each of subsections (a)(1), (b), and (d), by striking ``or part A of title IV,''; and (B) in subsection (a)(3), by striking ``404,''; (5) Section 1118 of such Act (42 U.S.C. 1318) is amended-- (A) by striking ``403(a),''; (B) by striking ``and part A of title IV,''; and (C) by striking ``, and shall, in the case of American Samoa, mean 75 per centum with respect to part A of title IV''. (6) Section 1119 of such Act (42 U.S.C. 1319) is amended-- (A) by striking ``or part A of title IV''; and (B) by striking ``403(a),''. (7) Section 1133(a) of such Act (42 U.S.C. 1320b-3(a)) is amended b

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PERSONAL RESPONSIBILITY ACT OF 1995
(House of Representatives - March 22, 1995)

Text of this article available as: TXT PDF [Pages H3449-H3529] PERSONAL RESPONSIBILITY ACT OF 1995 The SPEAKER pro tempore (Mr. Oxley). Pursuant to House Resolution 117 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. 4. {time} 1437 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. 4) to restore the American family, reduce illegitimacy, control welfare spending and reduce welfare dependence, with Mr. Linder in the chair. The Clerk read the title of the bill. The CHAIRMAN. When the Committee of the Whole rose on Tuesday, March 21, 1995, all time for general debate pursuant to House Resolution 117 had expired. Pursuant to House Resolution 119, no further general debate is in order. Pursuant to the rule, an amendment in the nature of a substitute consisting of the text of H.R. 1214 is adopted and the bill, as amended, is considered as an original bill for the purpose of further amendment and is considered as having been read. The text of H.R. 4, as amended, is as follows: H.R. 1214 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Personal Responsibility Act of 1995''. 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. Block grants to States. Sec. 102. Report on data processing. Sec. 103. Transfers. Sec. 104. Conforming amendments to the Social Security Act. Sec. 105. Conforming amendments to other laws. Sec. 106. Continued application of current standards under medicaid program. Sec. 107. Effective date. TITLE II--CHILD PROTECTION BLOCK GRANT PROGRAM Sec. 201. Establishment of program. Sec. 202. Conforming amendments. Sec. 203. Continued application of current standards under medicaid program. Sec. 204. Effective date. TITLE III--BLOCK GRANTS FOR CHILD CARE AND FOR NUTRITION ASSISTANCE Subtitle A--Child Care Block Grants Sec. 301. Amendments to the Child Care and Development Block Grant Act of 1990. Sec. 302. Repeal of child care assistance authorized by Acts other than the Social Security Act. Subtitle B--Family and School-Based Nutrition Block Grants Chapter 1--Family Nutrition Block Grant Program Sec. 321. Amendment to Child Nutrition Act of 1966. Chapter 2--School-based Nutrition Block Grant Program Sec. 341. Amendment to National School Lunch Act. Chapter 3--Miscellaneous Provisions Sec. 361. Repealers. Subtitle C--Other Repealers and Conforming Amendments Sec. 371. Amendments to laws relating to child protection block grant. Subtitle D--Related Provisions Sec. 381. Requirement that data relating to the incidence of poverty in the United States be published at least every 2 years. Sec. 382. Data on program participation and outcomes. Subtitle E--General Effective Date; Preservation of Actions, Obligations, and Rights Sec. 391. Effective date. Sec. 392. Application of amendments and repealers. 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 Programs Sec. 401. Ineligibility of illegal aliens for certain public benefits programs. Sec. 402. Ineligibility of nonimmigrants for certain public benefits programs. Sec. 403. Limited eligibility of immigrants for 5 specified Federal public benefits programs. Sec. 404. Notification. Subtitle B--Eligibility for State and Local Public Benefits Programs Sec. 411. Ineligibility of illegal aliens for State and local public benefits programs. [[Page H3450]] Sec. 412. Ineligibility of nonimmigrants for State and local public benefits programs. Sec. 413. State authority to limit eligibility of immigrants for State and local means-tested public benefits programs. Subtitle C--Attribution of Income and Affidavits of Support Sec. 421. Attribution of sponsor's income and resources to family- sponsored immigrants. Sec. 422. Requirements for sponsor's affidavit of support. Subtitle D--General Provisions Sec. 431. Definitions. Sec. 432. Construction. Subtitle E--Conforming Amendments Sec. 441. Conforming amendments relating to assisted housing. TITLE V--FOOD STAMP REFORM AND COMMODITY DISTRIBUTION Sec. 501. Short title. Subtitle A--Commodity Distribution Provisions Sec. 511. Short title. Sec. 512. Availability of commodities. Sec. 513. State, local and private supplementation of commodities. Sec. 514. State plan. Sec. 515. Allocation of commodities to States. Sec. 516. Priority system for State distribution of commodities. Sec. 517. Initial processing costs. Sec. 518. Assurances; anticipated use. Sec. 519. Authorization of appropriations. Sec. 520. Commodity supplemental food program. Sec. 521. Commodities not income. Sec. 522. Prohibition against certain State charges. Sec. 523. Definitions. Sec. 524. Regulations. Sec. 525. Finality of determinations. Sec. 526. Sale of commodities prohibited. Sec. 527. Settlement and adjustment of claims. Sec. 528. Repealers; amendments. Subtitle B--Simplification and Reform of Food Stamp Program Sec. 531. Short title. Chapter 1--Simplified Food Stamp Program and State Assistance for Needy Families Sec. 541. Establishment of simplified food stamp program. Sec. 542. Simplified food stamp program. Sec. 543. Conforming amendments. Chapter 2--Food Stamp Program Sec. 551. Thrifty food plan. Sec. 552. Income deductions and energy assistance. Sec. 553. Vehicle allowance. Sec. 554. Work requirements. Sec. 555. Comparable treatment of disqualified individuals. Sec. 556. Encourage electronic benefit transfer systems. Sec. 557. Value of minimum allotment. Sec. 558. Initial month benefit determination. Sec. 559. Improving food stamp program management. Sec. 560. Work supplementation or support program. Sec. 561. Obligations and allotments. Chapter 3--Program Integrity Sec. 571. Authority to establish authorization periods. Sec. 572. Condition precedent for approval of retail food stores and wholesale food concerns. Sec. 573. Waiting period for retailers that are denied approval to accept coupons. Sec. 574. Disqualification of retail food stores and wholesale food concerns. Sec. 575. Authority to suspend stores violating program requirements pending administrative and judicial review. Sec. 576. Criminal forfeiture. Sec. 577. Expanded definition of ``coupon''. Sec. 578. Doubled penalties for violating food stamp program requirements. Sec. 579. Disqualification of convicted individuals. Sec. 580. Claims collection. Subtitle C--Effective Dates and Miscellaneous Provisions Sec. 591. Effective dates. Sec. 592. Sense of the congress. Sec. 593. Deficit reduction. TITLE VI--SUPPLEMENTAL SECURITY INCOME Sec. 601. Denial of supplemental security income benefits by reason of disability to drug addicts and alcoholics. Sec. 602. Supplemental security income benefits for disabled children. Sec. 603. Examination of mental listings used to determine eligibility of children for SSI benefits by reason of disability. Sec. 604. Limitation on payments to Puerto Rico, the Virgin Islands, and Guam under programs of aid to the aged, blind, or disabled. Sec. 605. Repeal of maintenance of effort requirements applicable to optional State programs for supplementation of SSI benefits. TITLE VII--CHILD SUPPORT Sec. 700. References. Subtitle A--Eligibility for Services; Distribution of Payments Sec. 701. State obligation to provide child support enforcement services. Sec. 702. Distribution of child support collections. Sec. 703. Privacy safeguards. Subtitle B--Locate and Case Tracking Sec. 711. State case registry. Sec. 712. Collection and disbursement of support payments. Sec. 713. State directory of new hires. Sec. 714. Amendments concerning income withholding. Sec. 715. Locator information from interstate networks. Sec. 716. Expansion of the Federal Parent Locator Service. Sec. 717. Collection and use of social security numbers for use in child support enforcement. Subtitle C--Streamlining and Uniformity of Procedures Sec. 721. Adoption of uniform State laws. Sec. 722. Improvements to full faith and credit for child support orders. Sec. 723. Administrative enforcement in interstate cases. Sec. 724. Use of forms in interstate enforcement. Sec. 725. State laws providing expedited procedures. Subtitle D--Paternity Establishment Sec. 731. State laws concerning paternity establishment. Sec. 732. Outreach for voluntary paternity establishment. Sec. 733. Cooperation by applicants for and recipients of temporary family assistance. Subtitle E--Program Administration and Funding Sec. 741. Federal matching payments. Sec. 742. Performance-based incentives and penalties. Sec. 743. Federal and State reviews and audits. Sec. 744. Required reporting procedures. Sec. 745. Automated data processing requirements. Sec. 746. Technical assistance. Sec. 747. Reports and data collection by the Secretary. Subtitle F--Establishment and Modification of Support Orders Sec. 751. Simplified process for review and adjustment of child support orders. Sec. 752. Furnishing consumer reports for certain purposes relating to child support. Subtitle G--Enforcement of Support Orders Sec. 761. Federal income tax refund offset. Sec. 762. Authority to collect support from Federal employees. Sec. 763. Enforcement of child support obligations of members of the Armed Forces. Sec. 764. Voiding of fraudulent transfers. Sec. 765. Sense of the Congress that States should suspend drivers', business, and occupational licenses of persons owing past-due child support. Sec. 766. Work requirement for persons owing past-due child support. Sec. 767. Definition of support order. Subtitle H--Medical Support Sec. 771. Technical correction to ERISA definition of medical child support order. Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential Parents Sec. 781. Grants to States for access and visitation programs. Subtitle J--Effect of Enactment Sec. 791. Effective dates. TITLE VIII--MISCELLANEOUS PROVISIONS Sec. 801. Scoring. Sec. 802. Provisions to encourage electronic benefit transfer systems. TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES SEC. 101. BLOCK GRANTS TO STATES. Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is amended by striking part A, except sections 403(h) and 417, and inserting the following: ``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES ``SEC. 401. PURPOSE. ``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 the children in such families may be cared for in their homes or in the homes of relatives; ``(2) end the dependence of needy parents on government benefits by promoting work and marriage; and ``(3) discourage out-of-wedlock births. ``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 3-year period immediately preceding the fiscal year, has submitted to the Secretary a plan that includes the following: ``(1) Outline of family assistance program.--A written document that outlines how the State intends to do the following: [[Page H3451]] ``(A) Conduct a program designed to-- ``(i) provide cash benefits to needy families with children; and ``(ii) provide parents of children in such families with work experience, assistance in finding employment, and other work preparation activities and support services that the State considers appropriate to enable such families to leave the program and become self-sufficient. ``(B) Require at least 1 parent of a child in any family which has received benefits for more than 24 months (whether or not consecutive) under the program to engage in work activities (as defined by the State). ``(C) Ensure that parents receiving assistance under the program engage in work activities in accordance with section 404. ``(D) Treat interstate immigrants, if families including such immigrants are to be treated differently than other families. ``(E) Take such reasonable steps as the State deems necessary to restrict the use and disclosure of information about individuals and families receiving benefits under the program. ``(F) Take actions to reduce the incidence of out-of- wedlock births, which may include providing unmarried mothers and unmarried fathers with services which will help them-- ``(i) avoid subsequent pregnancies; and ``(ii) provide adequate care to their children. ``(G) Reduce teenage pregnancy, including (at the option of the State) through the provision of education, counseling, and health services to male and female teenagers. ``(2) Certification that the state will operate a child support enforcement program.--A certification by the Governor 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, in a manner that complies with the requirements of such part. ``(3) Certification that the state will operate a child protection program.--A certification by the Governor of the State that, during the fiscal year, the State will operate a child protection program in accordance with part B, which includes a foster care program and an adoption assistance program. ``(b) Determinations.--The Secretary shall determine whether a plan submitted pursuant to subsection (a) contains the material required by subsection (a). ``SEC. 403. PAYMENTS TO STATES. ``(a) Entitlements.-- ``(1) Grants for family assistance.-- ``(A) In general.--Each eligible State shall be entitled to receive from the Secretary for each of fiscal years 1996, 1997, 1998, 1999, and 2000 a grant in an amount equal to the State family assistance grant for the fiscal year. ``(B) Grant increased to reward states that reduce out-of- wedlock births.--The amount of the grant payable to a State under subparagraph (A) for fiscal year 1998 or any succeeding fiscal year shall be increased by-- ``(i) 5 percent if 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; or ``(ii) 10 percent if 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. ``(2) Supplemental grants to adjust for population increases.--In addition to any grant under paragraph (1), each eligible State shall be entitled to receive from the Secretary for each of fiscal years 1997, 1998, 1999, and 2000, a grant in an amount equal to the State proportion of $100,000,000. ``(b) Definitions.--As used in this section: ``(1) State family assistance grant.-- ``(A) In general.--The term `State family assistance grant' means, with respect to a fiscal year, the provisional State family assistance grant adjusted in accordance with subparagraph (C). ``(B) Provisional state family assistance grant.--The term `provisional State family assistance grant' means-- ``(i) the greater of-- ``(I) \1/3\ of the total amount of obligations to the State under section 403 of this title (as in effect before October 1, 1995) for fiscal years 1992, 1993, and 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); or ``(II) the total amount of obligations to the State under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); multiplied by ``(ii)(I) the total amount of outlays to all of the States under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); divided by ``(II) the total amount of obligations to all of the States under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section). ``(C) Proportional adjustment.--The Secretary shall determine the percentage (if any) by which each provisional State family assistance grant must be reduced or increased to ensure that the sum of such grants equals $15,390,296,000, and shall adjust each provisional State family assistance grant by the percentage so determined. ``(2) Illegitimacy ratio.--The term `illegitimacy ratio' means, with respect to a State and a fiscal year-- ``(A) the sum of-- ``(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; and ``(ii) the amount (if any) by which the number of abortions performed in the State during the most recent fiscal year for which such information is available exceeds the number of abortions performed in the State during the fiscal year that immediately precedes such most recent fiscal year; divided by ``(B) the number of births that occurred in the State during the most recent fiscal year for which such information is available. ``(3) State proportion.--The term `State proportion' means, with respect to a fiscal year, the amount that bears the same ratio to the amount specified in subsection (a)(2) as the increase (if any) in the population of the State for the most recent fiscal year for which such information is available over the population of the State for the fiscal year that immediately precedes such most recent fiscal year bears to the total increase in the population of all States which have such an increase in population, as determined by the Secretary using data from the Bureau of the Census. ``(4) Fiscal year.--The term `fiscal year' means any 12- month period ending on September 30 of a calendar year. ``(5) State.--The term `State' includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa. ``(c) Use of Grant.-- ``(1) In general.--A State to which a grant is made under this section may use the grant in any manner that is reasonably calculated to accomplish the purpose of this part, subject to this part, including to provide noncash assistance to mothers who have not attained 18 years of age and their children and to provide low income households with assistance in meeting home heating and cooling costs. ``(2) Authority to treat interstate immigrants under rules of former state.--A State to which a grant is made under this section may apply to a family the rules of the program operated 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. ``(3) Authority to use portion of grant for other purposes.-- ``(A) In general.--A State may use not more than 30 percent of the amount of the grant made to the State under this section for a fiscal year to carry out a State program pursuant to any or all of the following provisions of law: ``(i) Part B of this title. ``(ii) Title XX of this Act. ``(iii) Any provision of law, enacted into law during the 104th Congress, under which grants are made to States for food and nutrition. ``(iv) The Child Care and Development Block Grant Act of 1990. ``(B) Applicable rules.--Any amount paid to the State under this part that is used to carry out a State program pursuant to a provision of law specified in subparagraph (A) shall not be subject to the requirements of this part, but shall be subject to the requirements that apply to Federal funds provided directly under the provision of law to carry out the program. ``(4) Authority to reserve certain amounts for emergency benefits.-- ``(A) In general.--A State may reserve amounts paid to the State under this section for any fiscal year for the purpose of providing emergency assistance under the State program operated under this part. ``(B) Authority to use excess reserves for any purpose.-- During a fiscal year, a State may use for any purpose deemed appropriate by the State amounts held in reserve under subparagraph (A) to the extent exceeding 120 percent of the amount of the grant payable to the State under this section for the fiscal year. ``(5) Implementation of electronic benefit transfer system.--A State to which a grant is made under this section 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. ``(d) Timing of Payments.--The Secretary shall pay each grant payable to a State under this section in quarterly installments. ``(e) Penalties.-- ``(1) For use of grant in violation of this part.-- ``(A) In general.--If an audit conducted pursuant to chapter 75 of title 31, United States Code, finds that an amount paid to a State under this section for a fiscal year has been used in violation of this part, then the Secretary shall reduce the amount of the grant otherwise payable to the State under this section for the immediately succeeding fiscal year by the amount so used. ``(B) Limitation on amount of penalty.--In carrying out subparagraph (A), the Secretary shall not reduce any quarterly payment by more than 25 percent. ``(C) Carryforward of unrecovered penalties.--To the extent that subparagraph (B) prevents the Secretary from recovering during a fiscal year the full amount of a penalty imposed on a State under subparagraph (A) for a prior fiscal year, the Secretary shall apply subparagraph (A) to the grant otherwise payable to the State under this section for the immediately succeeding fiscal year. [[Page H3452]] ``(2) For failure to submit required report.-- ``(A) In general.--If the Secretary determines that a State has not, within 6 months after the end of a fiscal year, submitted the report required by section 406 for the fiscal year, the Secretary shall reduce by 3 percent the amount of the grant that would (in the absence of this subsection, subsection (a)(1)(B) of this section, and section 404(c)(2)) be payable to the State under subsection (a)(1)(A) for the immediately succeeding fiscal year. ``(B) Rescission of penalty.--The Secretary shall rescind a penalty imposed on a State under subparagraph (A) with respect to a report for a fiscal year if the State submits the report before the end of the immediately succeeding fiscal year. ``(C) For failure to participate in the income and eligibility verification system.--If the Secretary determines that a State program funded under this part is not participating during a fiscal year in the income and eligibility verification system required by section 1137, the Secretary shall reduce by 1 percent the amount of the grant that would (in the absence of this subsection, subsection (a)(1)(B) of this section, and section 404(c)(2)) be payable to the State under subsection (a)(1)(A) for the fiscal year. ``(f) Limitation on Federal Authority.--The Secretary may not regulate the conduct of States under this part or enforce any provision of this part, except to the extent expressly provided in this part. ``(g) Federal Rainy Day Fund.-- ``(1) Establishment.--There is hereby established in the Treasury of the United States a revolving loan fund which shall be known as the `Federal Rainy Day Fund'. ``(2) Deposits into fund.-- ``(A) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, $1,000,000,000 are hereby appropriated for fiscal year 1996 for payment to the Federal Rainy Day Fund. ``(B) Loan repayments.--The Secretary shall deposit into the fund any principal or interest payment received with respect to a loan made under this subsection. ``(3) Availability.--Amounts in the fund are authorized to remain available without fiscal year limitation for the purpose of making loans and receiving payments of principal and interest on such loans, in accordance with this subsection. ``(4) Use of fund.-- ``(A) Loans to qualified states.-- ``(i) In general.--The Secretary shall make loans from the fund to any qualified State for a period to maturity of not more than 3 years. ``(ii) Rate of interest.--The Secretary shall charge and collect interest on any loan made under clause (i) at a rate equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the period to maturity of the loan. ``(iii) Maximum loan.--The amount of any loan made to a State under clause (i) during a fiscal year shall not exceed the lesser of-- ``(I) 50 percent of the amount of the grant payable to the State under this section for the fiscal year; or ``(II) $100,000,000. ``(B) Qualified state defined.--A State is a qualified State for purposes of subparagraph (A) if the unemployment rate of the State (as determined by the Bureau of Labor Statistics) for the most recent 3-month period for which such information is available is-- ``(i) more than 6.5 percent; and ``(ii) at least 110 percent of such rate for the corresponding 3-month period in either of the 2 immediately preceding calendar years. ``SEC. 404. MANDATORY WORK REQUIREMENTS. ``(a) Participation Rate Requirements.-- ``(1) Requirement applicable to all families receiving assistance.-- ``(A) In general.--A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year with respect to all families receiving assistance under the State program funded under this part: The minimum participation ``If the fiscal rate is: 1996............................................................4 1997............................................................4 1998............................................................8 1999...........................................................12 2000...........................................................17 2001...........................................................29 2002...........................................................40 2003 or thereafter............................................50. ``(B) Pro rata reduction of participation rate due to caseload reductions not required by federal law.--The minimum participation rate otherwise required by subparagraph (A) for a fiscal year shall be reduced by a percentage equal to the percentage (if any) by which the number of families receiving assistance during the fiscal year under the State program funded under this part is less than the number of families that received aid under the State plan approved under part A of this title (as in effect before October 1, 1995) during the fiscal year immediately preceding such effective date, except to the extent that the Secretary determines that the reduction in the number of families receiving such assistance is required by Federal law. ``(C) Participation rate.--For purposes of this paragraph: ``(i) Average monthly rate.--The participation rate of a State for a fiscal year is the average of the participation rates of the State for each month in the fiscal year. ``(ii) Monthly participation rates.--The participation rate of a State for a month is-- ``(I) the number of families receiving cash assistance under the State program funded under this part which include an individual who is engaged in work activities for the month; divided by ``(II) the total number of families receiving cash assistance under the State program funded under this part during the month which include an individual who has attained 18 years of age. ``(iii) Engaged.--A recipient is engaged in work activities for a month in a fiscal year if the recipient is making progress in such activities for at least the minimum average number of hours per week specified in the following table during the month, not fewer than 20 hours per week of which are attributable to an activity described in subparagraph (A), (B), (C), or (D) of subsection (b)(1) (or, in the case of the first 4 weeks for which the recipient is required under this section to participate in work activities, an activity described in subsection (b)(1)(E)): The minimum ``If the month is average number of in fiscal year: hours per week is: 1996.......................................................20 1997.......................................................20 1998.......................................................20 1999...................................................25 2000.......................................................30 2001.......................................................30 2002.......................................................35 2003 or thereafter........................................35. ``(2) Requirement applicable to 2-parent families.-- ``(A) In general.--A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year with respect to 2-parent families receiving assistance under the State program funded under this part: The minimum participation ``If the fiscal year is: rate is: 1996.......................................................50 1997.......................................................50 1998 or thereafter........................................90. ``(B) Participation rate.--For purposes of this paragraph: ``(i) Average monthly rate.--The participation rate of a State for a fiscal year is the average of the participation rates of the State for each month in the fiscal year. ``(ii) Monthly participation rates.--The participation rate of a State for a month is-- ``(I) the number of 2-parent families receiving cash assistance under the State program funded under this part which include at least 1 adult who is engaged in work activities for the month; divided by ``(II) the total number of 2-parent families receiving cash assistance under the State program funded under this part during the month. ``(iii) Engaged.--An adult is engaged in work activities for a month in a fiscal year if the adult is making progress in such activities for at least 35 hours per week during the month, not fewer than 30 hours per week of which are attributable to an activity described in subparagraph (A), (B), (C), or (D) of subsection (b)(1) (or, in the case of the first 4 weeks for which the recipient is required under this section to participate in work activities, an activity described in subsection (b)(1)(E)). ``(b) Definitions.--As used in this section: ``(1) Work activities.--The term `work activities' means-- ``(A) unsubsidized employment; ``(B) subsidized private sector employment; ``(C) subsidized public sector employment or work experience (including work associated with the refurbishing of publicly assisted housing) only if sufficient private sector employment is not available; ``(D) on-the-job training; ``(E) job search and job readiness assistance; ``(F) education directly related to employment, in the case of a recipient who has not attained 20 years of age, and has not received a high school diploma or a certificate of high school equivalency; ``(G) job skills training directly related to employment; or ``(H) at the option of the State, satisfactory attendance at secondary school, in the case of a recipient who-- ``(i) has not completed secondary school; and ``(ii) is a dependent child, or a head of household who has not attained 20 years of age. ``(2) Fiscal year.--The term `fiscal year' means any 12- month period ending on September 30 of a calendar year. ``(c) Penalties.-- ``(1) Against individuals.-- ``(A) Applicable to all families.--A State to which a grant is made under section 403 shall ensure that the amount of cash assistance paid under the State program funded under this part to a recipient of assistance under the program who refuses to engage (within the meaning of subsection (a)(1)(C)(iii)) in work activities required under this section shall be less than the amount of cash assistance that would otherwise be paid to the recipient under the program, subject to such good cause and other exceptions as the State may establish. [[Page H3453]] ``(B) Applicable to 2-parent families.--A State to which a grant is made under section 403 shall reduce the amount of cash assistance otherwise payable to a 2-parent family for a month under the State program funded under this part with respect to an adult in the family who is not engaged (within the meaning of subsection (a)(2)(B)(iii)) in work activities for at least 35 hours per week during the month, pro rata (or more, at the option of the State) with respect to any period during the month for which the adult is not so engaged. ``(C) Limitation on federal authority.--No officer or employee of the Federal Government may regulate the conduct of States under this paragraph or enforce this paragraph against any State. ``(2) Against states.-- ``(A) In general.--If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with subsection (a) for the fiscal year, the Secretary shall reduce by not more than 5 percent the amount of the grant that would (in the absence of this paragraph and subsections (a)(1)(B) and (e) of section 403) be payable to the State under section 403(a)(1)(A) for the immediately succeeding fiscal year. ``(B) Penalty based on severity of failure.--The Secretary shall impose reductions under subparagraph (A) based on the degree of noncompliance. ``(d) Rule of Interpretation.--This section shall not be construed to prohibit a State from offering recipients of assistance under the State program funded under this part an opportunity to participate in an education or training program, consistent with the requirements of this section. ``(e) Research.--The Secretary shall conduct research on the costs and benefits of State activities under this section. ``(f) Evaluation of Innovative Approaches to Employing Recipients of Assistance.--The Secretary shall evaluate innovative approaches to employing recipients of assistance under State programs funded under this part. ``(g) Annual Ranking of States and Review of Most and Least Successful Work Programs.-- ``(1) Annual ranking of states.--The Secretary shall rank the States to which grants are paid under section 403 in the order of their success in moving recipients of assistance under the State program funded under this part into long-term private sector jobs. ``(2) Annual review of most and least successful work programs.--The Secretary shall review the programs of the 3 States most recently ranked highest under paragraph (1) and the 3 States most recently ranked lowest under paragraph (1) that provide parents with work experience, assistance in finding employment, and other work preparation activities and support services to enable the families of such parents to leave the program and become self-sufficient. ``(h) Sense of the Congress.--In complying with this section, each State that operates a program funded under this part is encouraged to assign the highest priority to requiring families that include older preschool or school-age children to be engaged in work activities. ``(i) Sense of the Congress That States Should Impose Certain Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the sense of the Congress that the States should require noncustodial, nonsupporting parents who have not attained 18 years of age to fulfill community work obligations and attend appropriate parenting or money management classes after school. ``SEC. 405. PROHIBITIONS. ``(a) In General.-- ``(1) No assistance for families without a minor child.--A State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family, unless the family includes a minor child. ``(2) Certain payments not to be disregarded in determining the amount of assistance to be provided to a family.-- ``(A) Income security payments.--If a State to which a grant is made under section 403 uses any part of the grant to provide assistance for any individual who is receiving a payment under a State plan for old-age assistance approved under section 2, a State program funded under part B that provides cash payments for foster care, or the supplemental security income program under title XVI (other than service benefits provided through the use of a grant made under part C of such title), then the State may not disregard the payment in determining the amount of assistance to be provided to the family of which the individual is a member under the State program funded under this part. ``(B) Certain support payments.--A State to which a grant is made under section 403 may not disregard an amount distributed to a family under section 457(a)(1)(A) in determining the income of the family for purposes of eligibility for assistance under the State program funded under this part. ``(3) No assistance for certain aliens.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance for an individual who is not a citizen or national of the United States, unless-- ``(A)(i) the individual is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act; and ``(ii) 5 years has elapsed since the date the individual arrived in the United States; ``(B) the individual-- ``(i) is lawfully admitted to the United States for permanent residence; ``(ii) has attained 75 years of age; and ``(iii) has resided in the United States for at least 5 years; or ``(C) the individual is honorably discharged from the Armed Forces of the United States. ``(4) No assistance for out-of-wedlock births to minors.-- ``(A) General rule.--a State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for a child born out-of-wedlock to an individual who has not attained 18 years of age, or for the individual, until the individual attains such age. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(5) No additional assistance for children born to families receiving assistance.-- ``(A) General rule.--A State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for a minor child who is born to-- ``(i) a recipient of benefits under the program operated under this part; or ``(ii) a person who received such benefits at any time during the 10-month period ending with the birth of the child. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(6) No assistance for more than 5 years.-- ``(A) In general.--A State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for the family of an individual who, after attaining 18 years of age, has received benefits under the program operated under this part for 60 months (whether or not consecutive) after the effective date of this part, except as provided under subparagraph (B). ``(B) Hardship exception.-- ``(i) In general.--The State may exempt a family from the application of subparagraph (A) by reason of hardship. ``(ii) Limitation.--The number of families with respect to which an exemption made by a State under clause (i) is in effect shall not exceed 10 percent of the number of families to which the State is providing assistance under the program operated under this part. ``(7) No assistance for families not cooperating in paternity establishment or child support.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family that includes an individual whom the agency responsible for administering the State plan approved under part D determines is not cooperating with the State in establishing the paternity of any child of the individual, or in establishing, modifying, or enforcing a support order with respect to such a child. ``(8) No assistance for families not assigning support rights to the state.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family that includes an individual who has not assigned to the State any rights the individual may have (on behalf of the individual or of any other person for whom the individual has applied for or is receiving such assistance) to support from any other person for any period for which the individual receives such assistance. ``(9) Withholding of portion of assistance for families which include a child whose paternity is not established.-- ``(A) In general.--A State to which a grant is made under section 403 may not fail to-- ``(i) withhold assistance under the State program funded under this part from a family which includes a child whose paternity is not established, in an amount equal to $50 or 15 percent of the amount of the amount of the assistance that would (in the absence of this paragraph) be provided to the family with respect to the child, whichever the State elects; or ``(ii) provide to the family the total amount of assistance so withheld once the paternity of the child is established, if the family is then eligible for such assistance. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(10) Denial of assistance for 10 years to a person convicted of fraudulently misrepresenting residence to a welfare program.--A State to which a grant is made under section 403 may not use any part of the grant to provide assistance to an individual during the 10-year period that begins with the date the individual is convicted in Federal or State court of making a fraudulent statement or representation with respect to the place of residence of the person in order to receive benefits or services under 2 or more programs that are funded under this part. ``(b) Minor Child Defined.--As used in subsection (a), the term `minor child' means an individual-- ``(1) who has not attained 18 years of age; or ``(2) who-- ``(A) has not attained 19 years of age; and ``(B) is a full-time student in a secondary school (or in the equivalent level of vocational or technical training). [[Page H3454]] ``SEC. 406. DATA COLLECTION AND REPORTING. ``(a) In General.--Each State to which a grant is made under section 403 for a fiscal year shall, not later than 6 months after the end of the fiscal year, transmit to the Secretary the following aggregate information on families to which assistance was provided during the fiscal year under the State program operated under this part or an equivalent State program: ``(1) The number of adults receiving such assistance. ``(2) The number of children receiving such assistance and the average age of the children. ``(3) The employment status of such adults, and the average earnings of employed adults receiving such assistance. ``(4) The number of 1-parent families in which the parent is a widow or widower, is divorced, is separated, or has never married. ``(5) The age, race, and educational attainment of the adults receiving such assistance. ``(6) The average assistance provided to the families under the program. ``(7) Whether, at the time of application for assistance under the program, the families or any member of the families receives benefits under any of the following: ``(A) Any housing program. ``(B) The food stamp program under the Food Stamp Act of 1977. ``(C) The Head Start programs carried out under the Head Start Act. ``(D) Any job training program. ``(8) The number of months, since the most recent application for assistance under the program, for which such assistance has been provided to the families. ``(9) The total number of months for which assistance has been provided to the families under the program. ``(10) Any other data necessary to indicate whether the State is in compliance with the plan most recently submitted by the State pursuant to section 402. ``(11) The components of any program carried out by the State to provide employment and training activities in order to comply with section 404, and the average monthly number of adults in each such component. ``(12) The number of part-time job placements and the number of full-time job placements made through the program referred to in paragraph (11), the number of cases with reduced assistance, and the number of cases closed due to employment. ``(b) Authority of States to Use Estimates.--A State may comply with the requirement to provide precise numerical information described in subsection (a) by submitting an estimate which is obtained through the use of scientifically acceptable sampling methods. ``(c) Report on Use of Federal Funds to Cover Administrative Costs and Overhead.--The report required by subsection (a) for a fiscal year shall include a statement of the percentage of the funds paid to the State under this part for the fiscal year that are used to cover administrative costs or overhead. ``(d) Report on State Expenditures on Programs for Needy Families.--The report required by subsection (a) for a fiscal year shall include a statement of the total amount expended by the State during the fiscal year on programs for needy families. ``(e) Report on Noncustodial Parents Participating in Work Activities.--The report required by subsection (a) for a fiscal year shall include the number of noncustodial parents in the State who participated in work activities (as defined in section 404(b)(1)) during the fiscal year. ``SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES. ``(a) Research.--The Secretary may conduct research on the effects, costs, and benefits of State programs funded under this part. ``(b) Development and Evaluation of Innovative Approaches to Employing Welfare Recipients.--The Secretary may assist States in developing, and shall evaluate, innovative approaches to employing recipients of cash assistance under programs funded under this part. In performing such evaluations, the Secretary shall, to the maximum extent feasible, use random assignment to experimental and control groups. ``(c) Studies of Welfare Caseloads.--The Secretary may conduct studies of the caseloads of States operating programs funded under this part. ``(d) Dissemination of Information.--The Secretary shall develop innovative methods of disseminating information on any research, evaluations, and studies conducted under this section, including the facilitation of the sharing of information and best practices among States and localities through the use of computers and other technologies. ``SEC. 408. STUDY BY THE CENSUS BUREAU. ``(a) In General.--The Bureau of the Census shall expand the Survey of Income and Program Participation as necessary to obtain such information as will enable interested persons to evaluate the impact of the amendments made by title I of the Personal Responsibility Act of 1995 on a random national sample of recipients of assistance under State programs funded under this part and (as appropriate) other low income families, and in doing so, shall pay particular attention to the issues of out-of-wedlock birth, welfare dependency, the beginning and end of welfare spells, and the causes of repeat welfare spells. ``(b) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, the Secretary of the Treasury shall pay to the Bureau of the Census $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, and 2000 to carry out subsection (a).''. SEC. 102. REPORT ON DATA PROCESSING. (a) In General.--Within 6 months after the date of the enactment of this Act, the Secretary of Health and Human Services shall prepare and submit to the Congress a report on-- (1) the status of the automated data processing systems operated by the States to assist management in the administration of State programs under part A of title IV of the Social Security Act (whether in effect before or after October 1, 1995); and (2) what would be required to establish a system capable of-- (A) tracking participants in public programs over time; and (B) checking case records of the States to determine whether individuals are participating in public programs of 2 or more States. (b) Preferred Contents.--The report required by subsection (a) should include-- (1) a plan for building on the automated data processing systems of the States to establish a system with the capabilities described in subsection (a)(2); and (2) an estimate of the amount of time required to establish such a system and of the cost of establishing such a system. SEC. 103. TRANSFERS. (a) Child Support Review Penalties.-- (1) Transfer of provision.--Section 403 of the Social Security Act, as added by the amendment made by section 101 of this Act, is amended by adding at the end subsection (h) of section 403, as in effect immediately before the effective date of this title. (2) Conforming amendment.--Section 403(h)(3) of such Act, as in effect pursuant to paragraph (1) of this subsection, is amended by striking ``, section 402(a)(27),''. (b) Assistant Secretary for Family Support.-- (1) Redesignation of provision.--Section 417 of such Act (42 U.S.C. 617), as in effect immediately before the effective date of this title, is amended by striking the following: ``assistant secretary for family support'' ``Sec. 417.'' and inserting the following: ``SEC. 408. ASSISTANT SECRETARY FOR FAMILY SUPPORT.''. (2) Transfer of provision.--Part A of title IV of such Act, as added by the amendment made by section 101 of this Act, is amended by adding at the end the section amended by paragraph (1) of this subsection. (3) Conforming amendment.--Section 408 of such Act, as added by paragraph (2) of this subsection is amended by striking ``, part D, and part F'' and inserting ``and part D''. SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT. (a) Amendments to Title II.-- (1) Section 205(c)(2)(C)(vi) of the Social Security Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesignated by section 321(a)(9)(B) of the Social Security Independence and Program Improvements Act of 1994, is amended-- (A) by inserting ``an agency administering a program funded under part A of title IV or'' before ``an agency operating''; and (B) by striking ``A or D of title IV of this Act'' and inserting ``D of such title''. (2) Section 228(d)(1) of such Act (42 U.S.C. 428(d)(1)) is amended by inserting ``under a State program funded under'' before ``part A of title IV''. (b) Amendments to Part D of Title IV.-- (1) Section 451 of such Act (42 U.S.C. 651) is amended by striking ``aid'' and inserting ``assistance under a State program funded''. (2) Section 452(a)(10)(C) of such Act (42 U.S.C. 652(a)(10)(C)) is amended-- (A) by striking ``aid to families with dependent children'' and inserting ``assistance under a State program funded under part A''; and (B) by striking ``such aid'' and inserting ``such assistance''; and (C) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''. (3) Section 452(a)(10)(F) of such Act (42 U.S.C. 652(a)(10)(F)) is amended-- (A) by striking ``aid under a State plan approved'' and inserting ``assistance under a State program funded''; and (B) by striking ``in accordance with the standards referred to in section 402(a)(26)(B)(ii)'' and inserting ``by the State''. (4) Section 452(b) of such Act (42 U.S.C. 652(b)) is amended in the last sentence by striking ``plan approved under part A'' and inserting ``program funded under part A''. (5) Section 452(d)(3)(B)(i) of such Act (42 U.S.C. 652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and inserting ``1115(b)''. (6) Section 452(g)(2)(A)(ii)(I) of such Act (42 U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid under the State's plan approved'' and inserting ``assistance is being provided under the State program funded under''. (7) Section 452(g)(2)(A) of such Act (42 U.S.C. 652(g)(2)(A)) is amended in the matter following clause (iii) by striking ``aid was being paid under the State's plan approved'' and inserting ``assistance was being provided under the State program funded''. [[Page H3455]] (8) Section 452(g)(2) of such Act (42 U.S.C. 652(g)(2)) is amended in the matter following subparagraph (B)-- (A) by striking ``who is a dependent child by reason of the death of a parent'' and inserting ``with respect to whom assistance is being provided under the State program funded under part A''; and (B) by inserting ``by the State agency administering the State plan approved under this part'' after ``found''; (C) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''; and (D) by striking ``administering the plan under part E determines (as provided in section 454(4)(B))'' and inserting ``determines''. (9) Section 452(h) of such Act (42 U.S.C. 652(h)) is amended by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''. (10) Section 454(5) of such Act (42 U.S.C. 654(5)) is amended-- (A) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''; and (B) by striking ``except that this paragraph shall not apply to such payments for any month following the first month in which the amount collected is sufficient to make such family ineligible for assistance under the State plan approved under part A;''. (11) Section 454(6)(D) of such Act (42 U.S.C. 654(6)(D)) is amended by striking ``aid under a State plan approved'' and inserting ``assistance under a State progrm funded''. (12) Section 456 of such Act (42 U.S.C. 656) is amended by striking ``under section 402(a)(26)'' each place such term appears and inserting ``pursuant to section 405(a)(8)''. (13) Section 466(a)(3)(B) of such Act (42 U.S.C. 666(a)(3)(B)) is amended by striking ``402(a)(26)'' and inserting ``405(a)(8)''. (14) Section 466(b)(2) of such Act (42 U.S.C. 666(b)(2)) is amended by striking ``aid'' and inserting ``assistance under a State program funded''. (c) Repeal of Part F of Title IV.--Part F of title IV of such Act (42 U.S.C. 681-687) is hereby repealed. (d) Amendment to Title X.--Section 1002(a)(7) of such Act (42 U.S.C. 1202(a)(7)) is amended by striking ``aid to families with dependent children under the State plan approved under section 402 of this Act'' and inserting ``assistance under a State program funded under part A of title IV''. (e) Amendments to Title XI.-- (1) Section 1108 of such Act (42 U.S.C. 1308) is amended-- (A) by striking subsections (a), (b), (d), and (e); and (B) by striking ``(c)''. (2) Section 1109 of such Act (42 U.S.C. 1309) is amended by striking ``or part A of title IV,''. (3) Section 1115(a) of such Act (42 U.S.C. 1315(a)) is amended-- (A) in the matter preceding paragraph (1), by striking ``A or''; (B) in paragraph (1), by striking ``402,''; and (C) in paragraph (2), by striking ``403,''. (4) Section 1116 of such Act (42 U.S.C. 1316) is amended-- (A) in each of subsections (a)(1), (b), and (d), by striking ``or part A of title IV,''; and (B) in subsection (a)(3), by striking ``404,''; (5) Section 1118 of such Act (42 U.S.C. 1318) is amended-- (A) by striking ``403(a),''; (B) by striking ``and part A of title IV,''; and (C) by striking ``, and shall, in the case of American Samoa, mean 75 per centum with respect to part A of title IV''. (6) Section 1119 of such Act (42 U.S.C. 1319) is amended-- (A) by striking ``or part A of title IV''; and (B) by striking ``403(a),''. (7) Section 1133(a) of such Act (42 U.S.C

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PERSONAL RESPONSIBILITY ACT OF 1995
(House of Representatives - March 22, 1995)

Text of this article available as: TXT PDF [Pages H3449-H3529] PERSONAL RESPONSIBILITY ACT OF 1995 The SPEAKER pro tempore (Mr. Oxley). Pursuant to House Resolution 117 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. 4. {time} 1437 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. 4) to restore the American family, reduce illegitimacy, control welfare spending and reduce welfare dependence, with Mr. Linder in the chair. The Clerk read the title of the bill. The CHAIRMAN. When the Committee of the Whole rose on Tuesday, March 21, 1995, all time for general debate pursuant to House Resolution 117 had expired. Pursuant to House Resolution 119, no further general debate is in order. Pursuant to the rule, an amendment in the nature of a substitute consisting of the text of H.R. 1214 is adopted and the bill, as amended, is considered as an original bill for the purpose of further amendment and is considered as having been read. The text of H.R. 4, as amended, is as follows: H.R. 1214 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Personal Responsibility Act of 1995''. 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. Block grants to States. Sec. 102. Report on data processing. Sec. 103. Transfers. Sec. 104. Conforming amendments to the Social Security Act. Sec. 105. Conforming amendments to other laws. Sec. 106. Continued application of current standards under medicaid program. Sec. 107. Effective date. TITLE II--CHILD PROTECTION BLOCK GRANT PROGRAM Sec. 201. Establishment of program. Sec. 202. Conforming amendments. Sec. 203. Continued application of current standards under medicaid program. Sec. 204. Effective date. TITLE III--BLOCK GRANTS FOR CHILD CARE AND FOR NUTRITION ASSISTANCE Subtitle A--Child Care Block Grants Sec. 301. Amendments to the Child Care and Development Block Grant Act of 1990. Sec. 302. Repeal of child care assistance authorized by Acts other than the Social Security Act. Subtitle B--Family and School-Based Nutrition Block Grants Chapter 1--Family Nutrition Block Grant Program Sec. 321. Amendment to Child Nutrition Act of 1966. Chapter 2--School-based Nutrition Block Grant Program Sec. 341. Amendment to National School Lunch Act. Chapter 3--Miscellaneous Provisions Sec. 361. Repealers. Subtitle C--Other Repealers and Conforming Amendments Sec. 371. Amendments to laws relating to child protection block grant. Subtitle D--Related Provisions Sec. 381. Requirement that data relating to the incidence of poverty in the United States be published at least every 2 years. Sec. 382. Data on program participation and outcomes. Subtitle E--General Effective Date; Preservation of Actions, Obligations, and Rights Sec. 391. Effective date. Sec. 392. Application of amendments and repealers. 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 Programs Sec. 401. Ineligibility of illegal aliens for certain public benefits programs. Sec. 402. Ineligibility of nonimmigrants for certain public benefits programs. Sec. 403. Limited eligibility of immigrants for 5 specified Federal public benefits programs. Sec. 404. Notification. Subtitle B--Eligibility for State and Local Public Benefits Programs Sec. 411. Ineligibility of illegal aliens for State and local public benefits programs. [[Page H3450]] Sec. 412. Ineligibility of nonimmigrants for State and local public benefits programs. Sec. 413. State authority to limit eligibility of immigrants for State and local means-tested public benefits programs. Subtitle C--Attribution of Income and Affidavits of Support Sec. 421. Attribution of sponsor's income and resources to family- sponsored immigrants. Sec. 422. Requirements for sponsor's affidavit of support. Subtitle D--General Provisions Sec. 431. Definitions. Sec. 432. Construction. Subtitle E--Conforming Amendments Sec. 441. Conforming amendments relating to assisted housing. TITLE V--FOOD STAMP REFORM AND COMMODITY DISTRIBUTION Sec. 501. Short title. Subtitle A--Commodity Distribution Provisions Sec. 511. Short title. Sec. 512. Availability of commodities. Sec. 513. State, local and private supplementation of commodities. Sec. 514. State plan. Sec. 515. Allocation of commodities to States. Sec. 516. Priority system for State distribution of commodities. Sec. 517. Initial processing costs. Sec. 518. Assurances; anticipated use. Sec. 519. Authorization of appropriations. Sec. 520. Commodity supplemental food program. Sec. 521. Commodities not income. Sec. 522. Prohibition against certain State charges. Sec. 523. Definitions. Sec. 524. Regulations. Sec. 525. Finality of determinations. Sec. 526. Sale of commodities prohibited. Sec. 527. Settlement and adjustment of claims. Sec. 528. Repealers; amendments. Subtitle B--Simplification and Reform of Food Stamp Program Sec. 531. Short title. Chapter 1--Simplified Food Stamp Program and State Assistance for Needy Families Sec. 541. Establishment of simplified food stamp program. Sec. 542. Simplified food stamp program. Sec. 543. Conforming amendments. Chapter 2--Food Stamp Program Sec. 551. Thrifty food plan. Sec. 552. Income deductions and energy assistance. Sec. 553. Vehicle allowance. Sec. 554. Work requirements. Sec. 555. Comparable treatment of disqualified individuals. Sec. 556. Encourage electronic benefit transfer systems. Sec. 557. Value of minimum allotment. Sec. 558. Initial month benefit determination. Sec. 559. Improving food stamp program management. Sec. 560. Work supplementation or support program. Sec. 561. Obligations and allotments. Chapter 3--Program Integrity Sec. 571. Authority to establish authorization periods. Sec. 572. Condition precedent for approval of retail food stores and wholesale food concerns. Sec. 573. Waiting period for retailers that are denied approval to accept coupons. Sec. 574. Disqualification of retail food stores and wholesale food concerns. Sec. 575. Authority to suspend stores violating program requirements pending administrative and judicial review. Sec. 576. Criminal forfeiture. Sec. 577. Expanded definition of ``coupon''. Sec. 578. Doubled penalties for violating food stamp program requirements. Sec. 579. Disqualification of convicted individuals. Sec. 580. Claims collection. Subtitle C--Effective Dates and Miscellaneous Provisions Sec. 591. Effective dates. Sec. 592. Sense of the congress. Sec. 593. Deficit reduction. TITLE VI--SUPPLEMENTAL SECURITY INCOME Sec. 601. Denial of supplemental security income benefits by reason of disability to drug addicts and alcoholics. Sec. 602. Supplemental security income benefits for disabled children. Sec. 603. Examination of mental listings used to determine eligibility of children for SSI benefits by reason of disability. Sec. 604. Limitation on payments to Puerto Rico, the Virgin Islands, and Guam under programs of aid to the aged, blind, or disabled. Sec. 605. Repeal of maintenance of effort requirements applicable to optional State programs for supplementation of SSI benefits. TITLE VII--CHILD SUPPORT Sec. 700. References. Subtitle A--Eligibility for Services; Distribution of Payments Sec. 701. State obligation to provide child support enforcement services. Sec. 702. Distribution of child support collections. Sec. 703. Privacy safeguards. Subtitle B--Locate and Case Tracking Sec. 711. State case registry. Sec. 712. Collection and disbursement of support payments. Sec. 713. State directory of new hires. Sec. 714. Amendments concerning income withholding. Sec. 715. Locator information from interstate networks. Sec. 716. Expansion of the Federal Parent Locator Service. Sec. 717. Collection and use of social security numbers for use in child support enforcement. Subtitle C--Streamlining and Uniformity of Procedures Sec. 721. Adoption of uniform State laws. Sec. 722. Improvements to full faith and credit for child support orders. Sec. 723. Administrative enforcement in interstate cases. Sec. 724. Use of forms in interstate enforcement. Sec. 725. State laws providing expedited procedures. Subtitle D--Paternity Establishment Sec. 731. State laws concerning paternity establishment. Sec. 732. Outreach for voluntary paternity establishment. Sec. 733. Cooperation by applicants for and recipients of temporary family assistance. Subtitle E--Program Administration and Funding Sec. 741. Federal matching payments. Sec. 742. Performance-based incentives and penalties. Sec. 743. Federal and State reviews and audits. Sec. 744. Required reporting procedures. Sec. 745. Automated data processing requirements. Sec. 746. Technical assistance. Sec. 747. Reports and data collection by the Secretary. Subtitle F--Establishment and Modification of Support Orders Sec. 751. Simplified process for review and adjustment of child support orders. Sec. 752. Furnishing consumer reports for certain purposes relating to child support. Subtitle G--Enforcement of Support Orders Sec. 761. Federal income tax refund offset. Sec. 762. Authority to collect support from Federal employees. Sec. 763. Enforcement of child support obligations of members of the Armed Forces. Sec. 764. Voiding of fraudulent transfers. Sec. 765. Sense of the Congress that States should suspend drivers', business, and occupational licenses of persons owing past-due child support. Sec. 766. Work requirement for persons owing past-due child support. Sec. 767. Definition of support order. Subtitle H--Medical Support Sec. 771. Technical correction to ERISA definition of medical child support order. Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential Parents Sec. 781. Grants to States for access and visitation programs. Subtitle J--Effect of Enactment Sec. 791. Effective dates. TITLE VIII--MISCELLANEOUS PROVISIONS Sec. 801. Scoring. Sec. 802. Provisions to encourage electronic benefit transfer systems. TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES SEC. 101. BLOCK GRANTS TO STATES. Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is amended by striking part A, except sections 403(h) and 417, and inserting the following: ``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES ``SEC. 401. PURPOSE. ``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 the children in such families may be cared for in their homes or in the homes of relatives; ``(2) end the dependence of needy parents on government benefits by promoting work and marriage; and ``(3) discourage out-of-wedlock births. ``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 3-year period immediately preceding the fiscal year, has submitted to the Secretary a plan that includes the following: ``(1) Outline of family assistance program.--A written document that outlines how the State intends to do the following: [[Page H3451]] ``(A) Conduct a program designed to-- ``(i) provide cash benefits to needy families with children; and ``(ii) provide parents of children in such families with work experience, assistance in finding employment, and other work preparation activities and support services that the State considers appropriate to enable such families to leave the program and become self-sufficient. ``(B) Require at least 1 parent of a child in any family which has received benefits for more than 24 months (whether or not consecutive) under the program to engage in work activities (as defined by the State). ``(C) Ensure that parents receiving assistance under the program engage in work activities in accordance with section 404. ``(D) Treat interstate immigrants, if families including such immigrants are to be treated differently than other families. ``(E) Take such reasonable steps as the State deems necessary to restrict the use and disclosure of information about individuals and families receiving benefits under the program. ``(F) Take actions to reduce the incidence of out-of- wedlock births, which may include providing unmarried mothers and unmarried fathers with services which will help them-- ``(i) avoid subsequent pregnancies; and ``(ii) provide adequate care to their children. ``(G) Reduce teenage pregnancy, including (at the option of the State) through the provision of education, counseling, and health services to male and female teenagers. ``(2) Certification that the state will operate a child support enforcement program.--A certification by the Governor 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, in a manner that complies with the requirements of such part. ``(3) Certification that the state will operate a child protection program.--A certification by the Governor of the State that, during the fiscal year, the State will operate a child protection program in accordance with part B, which includes a foster care program and an adoption assistance program. ``(b) Determinations.--The Secretary shall determine whether a plan submitted pursuant to subsection (a) contains the material required by subsection (a). ``SEC. 403. PAYMENTS TO STATES. ``(a) Entitlements.-- ``(1) Grants for family assistance.-- ``(A) In general.--Each eligible State shall be entitled to receive from the Secretary for each of fiscal years 1996, 1997, 1998, 1999, and 2000 a grant in an amount equal to the State family assistance grant for the fiscal year. ``(B) Grant increased to reward states that reduce out-of- wedlock births.--The amount of the grant payable to a State under subparagraph (A) for fiscal year 1998 or any succeeding fiscal year shall be increased by-- ``(i) 5 percent if 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; or ``(ii) 10 percent if 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. ``(2) Supplemental grants to adjust for population increases.--In addition to any grant under paragraph (1), each eligible State shall be entitled to receive from the Secretary for each of fiscal years 1997, 1998, 1999, and 2000, a grant in an amount equal to the State proportion of $100,000,000. ``(b) Definitions.--As used in this section: ``(1) State family assistance grant.-- ``(A) In general.--The term `State family assistance grant' means, with respect to a fiscal year, the provisional State family assistance grant adjusted in accordance with subparagraph (C). ``(B) Provisional state family assistance grant.--The term `provisional State family assistance grant' means-- ``(i) the greater of-- ``(I) \1/3\ of the total amount of obligations to the State under section 403 of this title (as in effect before October 1, 1995) for fiscal years 1992, 1993, and 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); or ``(II) the total amount of obligations to the State under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); multiplied by ``(ii)(I) the total amount of outlays to all of the States under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section); divided by ``(II) the total amount of obligations to all of the States under such section 403 for fiscal year 1994 (other than with respect to amounts expended for child care under subsection (g) or (i) of such section). ``(C) Proportional adjustment.--The Secretary shall determine the percentage (if any) by which each provisional State family assistance grant must be reduced or increased to ensure that the sum of such grants equals $15,390,296,000, and shall adjust each provisional State family assistance grant by the percentage so determined. ``(2) Illegitimacy ratio.--The term `illegitimacy ratio' means, with respect to a State and a fiscal year-- ``(A) the sum of-- ``(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; and ``(ii) the amount (if any) by which the number of abortions performed in the State during the most recent fiscal year for which such information is available exceeds the number of abortions performed in the State during the fiscal year that immediately precedes such most recent fiscal year; divided by ``(B) the number of births that occurred in the State during the most recent fiscal year for which such information is available. ``(3) State proportion.--The term `State proportion' means, with respect to a fiscal year, the amount that bears the same ratio to the amount specified in subsection (a)(2) as the increase (if any) in the population of the State for the most recent fiscal year for which such information is available over the population of the State for the fiscal year that immediately precedes such most recent fiscal year bears to the total increase in the population of all States which have such an increase in population, as determined by the Secretary using data from the Bureau of the Census. ``(4) Fiscal year.--The term `fiscal year' means any 12- month period ending on September 30 of a calendar year. ``(5) State.--The term `State' includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa. ``(c) Use of Grant.-- ``(1) In general.--A State to which a grant is made under this section may use the grant in any manner that is reasonably calculated to accomplish the purpose of this part, subject to this part, including to provide noncash assistance to mothers who have not attained 18 years of age and their children and to provide low income households with assistance in meeting home heating and cooling costs. ``(2) Authority to treat interstate immigrants under rules of former state.--A State to which a grant is made under this section may apply to a family the rules of the program operated 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. ``(3) Authority to use portion of grant for other purposes.-- ``(A) In general.--A State may use not more than 30 percent of the amount of the grant made to the State under this section for a fiscal year to carry out a State program pursuant to any or all of the following provisions of law: ``(i) Part B of this title. ``(ii) Title XX of this Act. ``(iii) Any provision of law, enacted into law during the 104th Congress, under which grants are made to States for food and nutrition. ``(iv) The Child Care and Development Block Grant Act of 1990. ``(B) Applicable rules.--Any amount paid to the State under this part that is used to carry out a State program pursuant to a provision of law specified in subparagraph (A) shall not be subject to the requirements of this part, but shall be subject to the requirements that apply to Federal funds provided directly under the provision of law to carry out the program. ``(4) Authority to reserve certain amounts for emergency benefits.-- ``(A) In general.--A State may reserve amounts paid to the State under this section for any fiscal year for the purpose of providing emergency assistance under the State program operated under this part. ``(B) Authority to use excess reserves for any purpose.-- During a fiscal year, a State may use for any purpose deemed appropriate by the State amounts held in reserve under subparagraph (A) to the extent exceeding 120 percent of the amount of the grant payable to the State under this section for the fiscal year. ``(5) Implementation of electronic benefit transfer system.--A State to which a grant is made under this section 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. ``(d) Timing of Payments.--The Secretary shall pay each grant payable to a State under this section in quarterly installments. ``(e) Penalties.-- ``(1) For use of grant in violation of this part.-- ``(A) In general.--If an audit conducted pursuant to chapter 75 of title 31, United States Code, finds that an amount paid to a State under this section for a fiscal year has been used in violation of this part, then the Secretary shall reduce the amount of the grant otherwise payable to the State under this section for the immediately succeeding fiscal year by the amount so used. ``(B) Limitation on amount of penalty.--In carrying out subparagraph (A), the Secretary shall not reduce any quarterly payment by more than 25 percent. ``(C) Carryforward of unrecovered penalties.--To the extent that subparagraph (B) prevents the Secretary from recovering during a fiscal year the full amount of a penalty imposed on a State under subparagraph (A) for a prior fiscal year, the Secretary shall apply subparagraph (A) to the grant otherwise payable to the State under this section for the immediately succeeding fiscal year. [[Page H3452]] ``(2) For failure to submit required report.-- ``(A) In general.--If the Secretary determines that a State has not, within 6 months after the end of a fiscal year, submitted the report required by section 406 for the fiscal year, the Secretary shall reduce by 3 percent the amount of the grant that would (in the absence of this subsection, subsection (a)(1)(B) of this section, and section 404(c)(2)) be payable to the State under subsection (a)(1)(A) for the immediately succeeding fiscal year. ``(B) Rescission of penalty.--The Secretary shall rescind a penalty imposed on a State under subparagraph (A) with respect to a report for a fiscal year if the State submits the report before the end of the immediately succeeding fiscal year. ``(C) For failure to participate in the income and eligibility verification system.--If the Secretary determines that a State program funded under this part is not participating during a fiscal year in the income and eligibility verification system required by section 1137, the Secretary shall reduce by 1 percent the amount of the grant that would (in the absence of this subsection, subsection (a)(1)(B) of this section, and section 404(c)(2)) be payable to the State under subsection (a)(1)(A) for the fiscal year. ``(f) Limitation on Federal Authority.--The Secretary may not regulate the conduct of States under this part or enforce any provision of this part, except to the extent expressly provided in this part. ``(g) Federal Rainy Day Fund.-- ``(1) Establishment.--There is hereby established in the Treasury of the United States a revolving loan fund which shall be known as the `Federal Rainy Day Fund'. ``(2) Deposits into fund.-- ``(A) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, $1,000,000,000 are hereby appropriated for fiscal year 1996 for payment to the Federal Rainy Day Fund. ``(B) Loan repayments.--The Secretary shall deposit into the fund any principal or interest payment received with respect to a loan made under this subsection. ``(3) Availability.--Amounts in the fund are authorized to remain available without fiscal year limitation for the purpose of making loans and receiving payments of principal and interest on such loans, in accordance with this subsection. ``(4) Use of fund.-- ``(A) Loans to qualified states.-- ``(i) In general.--The Secretary shall make loans from the fund to any qualified State for a period to maturity of not more than 3 years. ``(ii) Rate of interest.--The Secretary shall charge and collect interest on any loan made under clause (i) at a rate equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the period to maturity of the loan. ``(iii) Maximum loan.--The amount of any loan made to a State under clause (i) during a fiscal year shall not exceed the lesser of-- ``(I) 50 percent of the amount of the grant payable to the State under this section for the fiscal year; or ``(II) $100,000,000. ``(B) Qualified state defined.--A State is a qualified State for purposes of subparagraph (A) if the unemployment rate of the State (as determined by the Bureau of Labor Statistics) for the most recent 3-month period for which such information is available is-- ``(i) more than 6.5 percent; and ``(ii) at least 110 percent of such rate for the corresponding 3-month period in either of the 2 immediately preceding calendar years. ``SEC. 404. MANDATORY WORK REQUIREMENTS. ``(a) Participation Rate Requirements.-- ``(1) Requirement applicable to all families receiving assistance.-- ``(A) In general.--A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year with respect to all families receiving assistance under the State program funded under this part: The minimum participation ``If the fiscal rate is: 1996............................................................4 1997............................................................4 1998............................................................8 1999...........................................................12 2000...........................................................17 2001...........................................................29 2002...........................................................40 2003 or thereafter............................................50. ``(B) Pro rata reduction of participation rate due to caseload reductions not required by federal law.--The minimum participation rate otherwise required by subparagraph (A) for a fiscal year shall be reduced by a percentage equal to the percentage (if any) by which the number of families receiving assistance during the fiscal year under the State program funded under this part is less than the number of families that received aid under the State plan approved under part A of this title (as in effect before October 1, 1995) during the fiscal year immediately preceding such effective date, except to the extent that the Secretary determines that the reduction in the number of families receiving such assistance is required by Federal law. ``(C) Participation rate.--For purposes of this paragraph: ``(i) Average monthly rate.--The participation rate of a State for a fiscal year is the average of the participation rates of the State for each month in the fiscal year. ``(ii) Monthly participation rates.--The participation rate of a State for a month is-- ``(I) the number of families receiving cash assistance under the State program funded under this part which include an individual who is engaged in work activities for the month; divided by ``(II) the total number of families receiving cash assistance under the State program funded under this part during the month which include an individual who has attained 18 years of age. ``(iii) Engaged.--A recipient is engaged in work activities for a month in a fiscal year if the recipient is making progress in such activities for at least the minimum average number of hours per week specified in the following table during the month, not fewer than 20 hours per week of which are attributable to an activity described in subparagraph (A), (B), (C), or (D) of subsection (b)(1) (or, in the case of the first 4 weeks for which the recipient is required under this section to participate in work activities, an activity described in subsection (b)(1)(E)): The minimum ``If the month is average number of in fiscal year: hours per week is: 1996.......................................................20 1997.......................................................20 1998.......................................................20 1999...................................................25 2000.......................................................30 2001.......................................................30 2002.......................................................35 2003 or thereafter........................................35. ``(2) Requirement applicable to 2-parent families.-- ``(A) In general.--A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year with respect to 2-parent families receiving assistance under the State program funded under this part: The minimum participation ``If the fiscal year is: rate is: 1996.......................................................50 1997.......................................................50 1998 or thereafter........................................90. ``(B) Participation rate.--For purposes of this paragraph: ``(i) Average monthly rate.--The participation rate of a State for a fiscal year is the average of the participation rates of the State for each month in the fiscal year. ``(ii) Monthly participation rates.--The participation rate of a State for a month is-- ``(I) the number of 2-parent families receiving cash assistance under the State program funded under this part which include at least 1 adult who is engaged in work activities for the month; divided by ``(II) the total number of 2-parent families receiving cash assistance under the State program funded under this part during the month. ``(iii) Engaged.--An adult is engaged in work activities for a month in a fiscal year if the adult is making progress in such activities for at least 35 hours per week during the month, not fewer than 30 hours per week of which are attributable to an activity described in subparagraph (A), (B), (C), or (D) of subsection (b)(1) (or, in the case of the first 4 weeks for which the recipient is required under this section to participate in work activities, an activity described in subsection (b)(1)(E)). ``(b) Definitions.--As used in this section: ``(1) Work activities.--The term `work activities' means-- ``(A) unsubsidized employment; ``(B) subsidized private sector employment; ``(C) subsidized public sector employment or work experience (including work associated with the refurbishing of publicly assisted housing) only if sufficient private sector employment is not available; ``(D) on-the-job training; ``(E) job search and job readiness assistance; ``(F) education directly related to employment, in the case of a recipient who has not attained 20 years of age, and has not received a high school diploma or a certificate of high school equivalency; ``(G) job skills training directly related to employment; or ``(H) at the option of the State, satisfactory attendance at secondary school, in the case of a recipient who-- ``(i) has not completed secondary school; and ``(ii) is a dependent child, or a head of household who has not attained 20 years of age. ``(2) Fiscal year.--The term `fiscal year' means any 12- month period ending on September 30 of a calendar year. ``(c) Penalties.-- ``(1) Against individuals.-- ``(A) Applicable to all families.--A State to which a grant is made under section 403 shall ensure that the amount of cash assistance paid under the State program funded under this part to a recipient of assistance under the program who refuses to engage (within the meaning of subsection (a)(1)(C)(iii)) in work activities required under this section shall be less than the amount of cash assistance that would otherwise be paid to the recipient under the program, subject to such good cause and other exceptions as the State may establish. [[Page H3453]] ``(B) Applicable to 2-parent families.--A State to which a grant is made under section 403 shall reduce the amount of cash assistance otherwise payable to a 2-parent family for a month under the State program funded under this part with respect to an adult in the family who is not engaged (within the meaning of subsection (a)(2)(B)(iii)) in work activities for at least 35 hours per week during the month, pro rata (or more, at the option of the State) with respect to any period during the month for which the adult is not so engaged. ``(C) Limitation on federal authority.--No officer or employee of the Federal Government may regulate the conduct of States under this paragraph or enforce this paragraph against any State. ``(2) Against states.-- ``(A) In general.--If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with subsection (a) for the fiscal year, the Secretary shall reduce by not more than 5 percent the amount of the grant that would (in the absence of this paragraph and subsections (a)(1)(B) and (e) of section 403) be payable to the State under section 403(a)(1)(A) for the immediately succeeding fiscal year. ``(B) Penalty based on severity of failure.--The Secretary shall impose reductions under subparagraph (A) based on the degree of noncompliance. ``(d) Rule of Interpretation.--This section shall not be construed to prohibit a State from offering recipients of assistance under the State program funded under this part an opportunity to participate in an education or training program, consistent with the requirements of this section. ``(e) Research.--The Secretary shall conduct research on the costs and benefits of State activities under this section. ``(f) Evaluation of Innovative Approaches to Employing Recipients of Assistance.--The Secretary shall evaluate innovative approaches to employing recipients of assistance under State programs funded under this part. ``(g) Annual Ranking of States and Review of Most and Least Successful Work Programs.-- ``(1) Annual ranking of states.--The Secretary shall rank the States to which grants are paid under section 403 in the order of their success in moving recipients of assistance under the State program funded under this part into long-term private sector jobs. ``(2) Annual review of most and least successful work programs.--The Secretary shall review the programs of the 3 States most recently ranked highest under paragraph (1) and the 3 States most recently ranked lowest under paragraph (1) that provide parents with work experience, assistance in finding employment, and other work preparation activities and support services to enable the families of such parents to leave the program and become self-sufficient. ``(h) Sense of the Congress.--In complying with this section, each State that operates a program funded under this part is encouraged to assign the highest priority to requiring families that include older preschool or school-age children to be engaged in work activities. ``(i) Sense of the Congress That States Should Impose Certain Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the sense of the Congress that the States should require noncustodial, nonsupporting parents who have not attained 18 years of age to fulfill community work obligations and attend appropriate parenting or money management classes after school. ``SEC. 405. PROHIBITIONS. ``(a) In General.-- ``(1) No assistance for families without a minor child.--A State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family, unless the family includes a minor child. ``(2) Certain payments not to be disregarded in determining the amount of assistance to be provided to a family.-- ``(A) Income security payments.--If a State to which a grant is made under section 403 uses any part of the grant to provide assistance for any individual who is receiving a payment under a State plan for old-age assistance approved under section 2, a State program funded under part B that provides cash payments for foster care, or the supplemental security income program under title XVI (other than service benefits provided through the use of a grant made under part C of such title), then the State may not disregard the payment in determining the amount of assistance to be provided to the family of which the individual is a member under the State program funded under this part. ``(B) Certain support payments.--A State to which a grant is made under section 403 may not disregard an amount distributed to a family under section 457(a)(1)(A) in determining the income of the family for purposes of eligibility for assistance under the State program funded under this part. ``(3) No assistance for certain aliens.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance for an individual who is not a citizen or national of the United States, unless-- ``(A)(i) the individual is admitted to the United States as a refugee under section 207 of the Immigration and Nationality Act; and ``(ii) 5 years has elapsed since the date the individual arrived in the United States; ``(B) the individual-- ``(i) is lawfully admitted to the United States for permanent residence; ``(ii) has attained 75 years of age; and ``(iii) has resided in the United States for at least 5 years; or ``(C) the individual is honorably discharged from the Armed Forces of the United States. ``(4) No assistance for out-of-wedlock births to minors.-- ``(A) General rule.--a State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for a child born out-of-wedlock to an individual who has not attained 18 years of age, or for the individual, until the individual attains such age. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(5) No additional assistance for children born to families receiving assistance.-- ``(A) General rule.--A State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for a minor child who is born to-- ``(i) a recipient of benefits under the program operated under this part; or ``(ii) a person who received such benefits at any time during the 10-month period ending with the birth of the child. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(6) No assistance for more than 5 years.-- ``(A) In general.--A State to which a grant is made under section 403 may not use any part of the grant to provide cash benefits for the family of an individual who, after attaining 18 years of age, has received benefits under the program operated under this part for 60 months (whether or not consecutive) after the effective date of this part, except as provided under subparagraph (B). ``(B) Hardship exception.-- ``(i) In general.--The State may exempt a family from the application of subparagraph (A) by reason of hardship. ``(ii) Limitation.--The number of families with respect to which an exemption made by a State under clause (i) is in effect shall not exceed 10 percent of the number of families to which the State is providing assistance under the program operated under this part. ``(7) No assistance for families not cooperating in paternity establishment or child support.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family that includes an individual whom the agency responsible for administering the State plan approved under part D determines is not cooperating with the State in establishing the paternity of any child of the individual, or in establishing, modifying, or enforcing a support order with respect to such a child. ``(8) No assistance for families not assigning support rights to the state.--Notwithstanding subsection (c)(1), a State to which a grant is made under section 403 may not use any part of the grant to provide assistance to a family that includes an individual who has not assigned to the State any rights the individual may have (on behalf of the individual or of any other person for whom the individual has applied for or is receiving such assistance) to support from any other person for any period for which the individual receives such assistance. ``(9) Withholding of portion of assistance for families which include a child whose paternity is not established.-- ``(A) In general.--A State to which a grant is made under section 403 may not fail to-- ``(i) withhold assistance under the State program funded under this part from a family which includes a child whose paternity is not established, in an amount equal to $50 or 15 percent of the amount of the amount of the assistance that would (in the absence of this paragraph) be provided to the family with respect to the child, whichever the State elects; or ``(ii) provide to the family the total amount of assistance so withheld once the paternity of the child is established, if the family is then eligible for such assistance. ``(B) Exception for rape or incest.--Subparagraph (A) shall not apply with respect to a child who is born as a result of rape or incest. ``(10) Denial of assistance for 10 years to a person convicted of fraudulently misrepresenting residence to a welfare program.--A State to which a grant is made under section 403 may not use any part of the grant to provide assistance to an individual during the 10-year period that begins with the date the individual is convicted in Federal or State court of making a fraudulent statement or representation with respect to the place of residence of the person in order to receive benefits or services under 2 or more programs that are funded under this part. ``(b) Minor Child Defined.--As used in subsection (a), the term `minor child' means an individual-- ``(1) who has not attained 18 years of age; or ``(2) who-- ``(A) has not attained 19 years of age; and ``(B) is a full-time student in a secondary school (or in the equivalent level of vocational or technical training). [[Page H3454]] ``SEC. 406. DATA COLLECTION AND REPORTING. ``(a) In General.--Each State to which a grant is made under section 403 for a fiscal year shall, not later than 6 months after the end of the fiscal year, transmit to the Secretary the following aggregate information on families to which assistance was provided during the fiscal year under the State program operated under this part or an equivalent State program: ``(1) The number of adults receiving such assistance. ``(2) The number of children receiving such assistance and the average age of the children. ``(3) The employment status of such adults, and the average earnings of employed adults receiving such assistance. ``(4) The number of 1-parent families in which the parent is a widow or widower, is divorced, is separated, or has never married. ``(5) The age, race, and educational attainment of the adults receiving such assistance. ``(6) The average assistance provided to the families under the program. ``(7) Whether, at the time of application for assistance under the program, the families or any member of the families receives benefits under any of the following: ``(A) Any housing program. ``(B) The food stamp program under the Food Stamp Act of 1977. ``(C) The Head Start programs carried out under the Head Start Act. ``(D) Any job training program. ``(8) The number of months, since the most recent application for assistance under the program, for which such assistance has been provided to the families. ``(9) The total number of months for which assistance has been provided to the families under the program. ``(10) Any other data necessary to indicate whether the State is in compliance with the plan most recently submitted by the State pursuant to section 402. ``(11) The components of any program carried out by the State to provide employment and training activities in order to comply with section 404, and the average monthly number of adults in each such component. ``(12) The number of part-time job placements and the number of full-time job placements made through the program referred to in paragraph (11), the number of cases with reduced assistance, and the number of cases closed due to employment. ``(b) Authority of States to Use Estimates.--A State may comply with the requirement to provide precise numerical information described in subsection (a) by submitting an estimate which is obtained through the use of scientifically acceptable sampling methods. ``(c) Report on Use of Federal Funds to Cover Administrative Costs and Overhead.--The report required by subsection (a) for a fiscal year shall include a statement of the percentage of the funds paid to the State under this part for the fiscal year that are used to cover administrative costs or overhead. ``(d) Report on State Expenditures on Programs for Needy Families.--The report required by subsection (a) for a fiscal year shall include a statement of the total amount expended by the State during the fiscal year on programs for needy families. ``(e) Report on Noncustodial Parents Participating in Work Activities.--The report required by subsection (a) for a fiscal year shall include the number of noncustodial parents in the State who participated in work activities (as defined in section 404(b)(1)) during the fiscal year. ``SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES. ``(a) Research.--The Secretary may conduct research on the effects, costs, and benefits of State programs funded under this part. ``(b) Development and Evaluation of Innovative Approaches to Employing Welfare Recipients.--The Secretary may assist States in developing, and shall evaluate, innovative approaches to employing recipients of cash assistance under programs funded under this part. In performing such evaluations, the Secretary shall, to the maximum extent feasible, use random assignment to experimental and control groups. ``(c) Studies of Welfare Caseloads.--The Secretary may conduct studies of the caseloads of States operating programs funded under this part. ``(d) Dissemination of Information.--The Secretary shall develop innovative methods of disseminating information on any research, evaluations, and studies conducted under this section, including the facilitation of the sharing of information and best practices among States and localities through the use of computers and other technologies. ``SEC. 408. STUDY BY THE CENSUS BUREAU. ``(a) In General.--The Bureau of the Census shall expand the Survey of Income and Program Participation as necessary to obtain such information as will enable interested persons to evaluate the impact of the amendments made by title I of the Personal Responsibility Act of 1995 on a random national sample of recipients of assistance under State programs funded under this part and (as appropriate) other low income families, and in doing so, shall pay particular attention to the issues of out-of-wedlock birth, welfare dependency, the beginning and end of welfare spells, and the causes of repeat welfare spells. ``(b) Appropriation.--Out of any money in the Treasury of the United States not otherwise appropriated, the Secretary of the Treasury shall pay to the Bureau of the Census $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, and 2000 to carry out subsection (a).''. SEC. 102. REPORT ON DATA PROCESSING. (a) In General.--Within 6 months after the date of the enactment of this Act, the Secretary of Health and Human Services shall prepare and submit to the Congress a report on-- (1) the status of the automated data processing systems operated by the States to assist management in the administration of State programs under part A of title IV of the Social Security Act (whether in effect before or after October 1, 1995); and (2) what would be required to establish a system capable of-- (A) tracking participants in public programs over time; and (B) checking case records of the States to determine whether individuals are participating in public programs of 2 or more States. (b) Preferred Contents.--The report required by subsection (a) should include-- (1) a plan for building on the automated data processing systems of the States to establish a system with the capabilities described in subsection (a)(2); and (2) an estimate of the amount of time required to establish such a system and of the cost of establishing such a system. SEC. 103. TRANSFERS. (a) Child Support Review Penalties.-- (1) Transfer of provision.--Section 403 of the Social Security Act, as added by the amendment made by section 101 of this Act, is amended by adding at the end subsection (h) of section 403, as in effect immediately before the effective date of this title. (2) Conforming amendment.--Section 403(h)(3) of such Act, as in effect pursuant to paragraph (1) of this subsection, is amended by striking ``, section 402(a)(27),''. (b) Assistant Secretary for Family Support.-- (1) Redesignation of provision.--Section 417 of such Act (42 U.S.C. 617), as in effect immediately before the effective date of this title, is amended by striking the following: ``assistant secretary for family support'' ``Sec. 417.'' and inserting the following: ``SEC. 408. ASSISTANT SECRETARY FOR FAMILY SUPPORT.''. (2) Transfer of provision.--Part A of title IV of such Act, as added by the amendment made by section 101 of this Act, is amended by adding at the end the section amended by paragraph (1) of this subsection. (3) Conforming amendment.--Section 408 of such Act, as added by paragraph (2) of this subsection is amended by striking ``, part D, and part F'' and inserting ``and part D''. SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT. (a) Amendments to Title II.-- (1) Section 205(c)(2)(C)(vi) of the Social Security Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesignated by section 321(a)(9)(B) of the Social Security Independence and Program Improvements Act of 1994, is amended-- (A) by inserting ``an agency administering a program funded under part A of title IV or'' before ``an agency operating''; and (B) by striking ``A or D of title IV of this Act'' and inserting ``D of such title''. (2) Section 228(d)(1) of such Act (42 U.S.C. 428(d)(1)) is amended by inserting ``under a State program funded under'' before ``part A of title IV''. (b) Amendments to Part D of Title IV.-- (1) Section 451 of such Act (42 U.S.C. 651) is amended by striking ``aid'' and inserting ``assistance under a State program funded''. (2) Section 452(a)(10)(C) of such Act (42 U.S.C. 652(a)(10)(C)) is amended-- (A) by striking ``aid to families with dependent children'' and inserting ``assistance under a State program funded under part A''; and (B) by striking ``such aid'' and inserting ``such assistance''; and (C) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''. (3) Section 452(a)(10)(F) of such Act (42 U.S.C. 652(a)(10)(F)) is amended-- (A) by striking ``aid under a State plan approved'' and inserting ``assistance under a State program funded''; and (B) by striking ``in accordance with the standards referred to in section 402(a)(26)(B)(ii)'' and inserting ``by the State''. (4) Section 452(b) of such Act (42 U.S.C. 652(b)) is amended in the last sentence by striking ``plan approved under part A'' and inserting ``program funded under part A''. (5) Section 452(d)(3)(B)(i) of such Act (42 U.S.C. 652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and inserting ``1115(b)''. (6) Section 452(g)(2)(A)(ii)(I) of such Act (42 U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid under the State's plan approved'' and inserting ``assistance is being provided under the State program funded under''. (7) Section 452(g)(2)(A) of such Act (42 U.S.C. 652(g)(2)(A)) is amended in the matter following clause (iii) by striking ``aid was being paid under the State's plan approved'' and inserting ``assistance was being provided under the State program funded''. [[Page H3455]] (8) Section 452(g)(2) of such Act (42 U.S.C. 652(g)(2)) is amended in the matter following subparagraph (B)-- (A) by striking ``who is a dependent child by reason of the death of a parent'' and inserting ``with respect to whom assistance is being provided under the State program funded under part A''; and (B) by inserting ``by the State agency administering the State plan approved under this part'' after ``found''; (C) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''; and (D) by striking ``administering the plan under part E determines (as provided in section 454(4)(B))'' and inserting ``determines''. (9) Section 452(h) of such Act (42 U.S.C. 652(h)) is amended by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''. (10) Section 454(5) of such Act (42 U.S.C. 654(5)) is amended-- (A) by striking ``under section 402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''; and (B) by striking ``except that this paragraph shall not apply to such payments for any month following the first month in which the amount collected is sufficient to make such family ineligible for assistance under the State plan approved under part A;''. (11) Section 454(6)(D) of such Act (42 U.S.C. 654(6)(D)) is amended by striking ``aid under a State plan approved'' and inserting ``assistance under a State progrm funded''. (12) Section 456 of such Act (42 U.S.C. 656) is amended by striking ``under section 402(a)(26)'' each place such term appears and inserting ``pursuant to section 405(a)(8)''. (13) Section 466(a)(3)(B) of such Act (42 U.S.C. 666(a)(3)(B)) is amended by striking ``402(a)(26)'' and inserting ``405(a)(8)''. (14) Section 466(b)(2) of such Act (42 U.S.C. 666(b)(2)) is amended by striking ``aid'' and inserting ``assistance under a State program funded''. (c) Repeal of Part F of Title IV.--Part F of title IV of such Act (42 U.S.C. 681-687) is hereby repealed. (d) Amendment to Title X.--Section 1002(a)(7) of such Act (42 U.S.C. 1202(a)(7)) is amended by striking ``aid to families with dependent children under the State plan approved under section 402 of this Act'' and inserting ``assistance under a State program funded under part A of title IV''. (e) Amendments to Title XI.-- (1) Section 1108 of such Act (42 U.S.C. 1308) is amended-- (A) by striking subsections (a), (b), (d), and (e); and (B) by striking ``(c)''. (2) Section 1109 of such Act (42 U.S.C. 1309) is amended by striking ``or part A of title IV,''. (3) Section 1115(a) of such Act (42 U.S.C. 1315(a)) is amended-- (A) in the matter preceding paragraph (1), by striking ``A or''; (B) in paragraph (1), by striking ``402,''; and (C) in paragraph (2), by striking ``403,''. (4) Section 1116 of such Act (42 U.S.C. 1316) is amended-- (A) in each of subsections (a)(1), (b), and (d), by striking ``or part A of title IV,''; and (B) in subsection (a)(3), by striking ``404,''; (5) Section 1118 of such Act (42 U.S.C. 1318) is amended-- (A) by striking ``403(a),''; (B) by striking ``and part A of title IV,''; and (C) by striking ``, and shall, in the case of American Samoa, mean 75 per centum with respect to part A of title IV''. (6) Section 1119 of such Act (42 U.S.C. 1319) is amended-- (A) by striking ``or part A of title IV''; and (B) by striking ``403(a),''. (7) Section 1133(a) of such Act (42 U.S.C. 1320b-3(a)) is amended b