Summary:
All articles in House section
CONFERENCE REPORT ON H.R. 3734, PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996
(House of Representatives - July 30, 1996)
Text of this article available as:
[Pages H8829-H8958]
CONFERENCE REPORT ON H.R. 3734, PERSONAL RESPONSIBILITY AND WORK
OPPORTUNITY RECONCILIATION ACT OF 1996
Mr. KASICH submitted the following conference report and statement on
the bill (H.R. 3734) to provide for reconciliation pursuant to section
201(a)(1) of the concurrent resolution on the budget for fiscal year
1997:
Conference Report (H. Rept. 104-725)
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
3734), to provide for reconciliation pursuant to section
201(a)(1) of the concurrent resolution on the budget for
fiscal year 1997, having met, after full and free conference,
have agreed to recommend and do recommend to their respective
Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Personal Responsibility and
Work Opportunity Reconciliation Act of 1996''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private
organizations.
Sec. 105. Census data on grandparents as primary caregivers for their
grandchildren.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and
related provisions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant social
security card required.
Sec. 112. Modifications to the job opportunities for certain low-income
individuals program.
Sec. 113. Secretarial submission of legislative proposal for technical
and conforming amendments.
Sec. 114. Assuring medicaid coverage for low-income families.
Sec. 115. Denial of assistance and benefits for certain drug-related
convictions.
Sec. 116. Effective date; transition rule.
TITLE II--SUPPLEMENTAL SECURITY INCOME
Sec. 200. Reference to Social Security Act.
Subtitle A--Eligibility Restrictions
Sec. 201. Denial of SSI benefits for 10 years to individuals found to
have fraudulently misrepresented residence in order to
obtain benefits simultaneously in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation and
parole violators.
Sec. 203. Treatment of prisoners.
Sec. 204. Effective date of application for benefits.
Subtitle B--Benefits for Disabled Children
Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability
reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized
individuals whose medical costs are covered by private
insurance.
Sec. 215. Regulations.
Subtitle C--Additional Enforcement Provision
Sec. 221. Installment payment of large past-due supplemental security
income benefits.
Sec. 222. Regulations.
Subtitle D--Studies Regarding Supplemental Security Income Program
Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study by General Accounting Office.
TITLE III--CHILD SUPPORT
Sec. 300. Reference to Social Security Act.
Subtitle A--Eligibility for Services; Distribution of Payments
Sec. 301. State obligation to provide child support enforcement
services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification of hearings.
Subtitle B--Locate and Case Tracking
Sec. 311. State case registry.
Sec. 312. Collection and disbursement of support payments.
Sec. 313. State directory of new hires.
Sec. 314. Amendments concerning income withholding.
Sec. 315. Locator information from interstate networks.
Sec. 316. Expansion of the Federal parent locator service.
Sec. 317. Collection and use of social security numbers for use in
child support enforcement.
Subtitle C--Streamlining and Uniformity of Procedures
Sec. 321. Adoption of uniform State laws.
Sec. 322. Improvements to full faith and credit for child support
orders.
Sec. 323. Administrative enforcement in interstate cases.
Sec. 324. Use of forms in interstate enforcement.
Sec. 325. State laws providing expedited procedures.
Subtitle D--Paternity Establishment
Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of part A
assistance.
Subtitle E--Program Administration and Funding
Sec. 341. Performance-based incentives and penalties.
Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.
Subtitle F--Establishment and Modification of Support Orders
Sec. 351. Simplified process for review and adjustment of child support
orders.
Sec. 352. Furnishing consumer reports for certain purposes relating to
child support.
Sec. 353. Nonliability for financial institutions providing financial
records to State child support enforcement agencies in
child support cases.
Subtitle G--Enforcement of Support Orders
Sec. 361. Internal Revenue Service collection of arrearages.
Sec. 362. Authority to collect support from Federal employees.
Sec. 363. Enforcement of child support obligations of members of the
Armed Forces.
Sec. 364. Voiding of fraudulent transfers.
Sec. 365. Work requirement for persons owing past-due child support.
Sec. 366. Definition of support order.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Liens.
Sec. 369. State law authorizing suspension of licenses.
Sec. 370. Denial of passports for nonpayment of child support.
Sec. 371. International support enforcement.
Sec. 372. Financial institution data matches.
Sec. 373. Enforcement of orders against paternal or maternal
grandparents in cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for the
support of a child.
Sec. 375. Child support enforcement for Indian tribes.
Subtitle H--Medical Support
Sec. 381. Correction to ERISA definition of medical child support
order.
Sec. 382. Enforcement of orders for health care coverage.
Subtitle I--Enhancing Responsibility and Opportunity for Non-
Residential Parents
Sec. 391. Grants to States for access and visitation programs.
Subtitle J--Effective Dates and Conforming Amendments
Sec. 395. Effective dates and conforming amendments.
TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
Sec. 400. Statements of national policy concerning welfare and
immigration.
Subtitle A--Eligibility for Federal Benefits
Sec. 401. Aliens who are not qualified aliens ineligible for Federal
public benefits.
[[Page H8830]]
Sec. 402. Limited eligibility of qualified aliens for certain Federal
programs.
Sec. 403. Five-year limited eligibility of qualified aliens for Federal
means-tested public benefit.
Sec. 404. Notification and information reporting.
Subtitle B--Eligibility for State and Local Public Benefits Programs
Sec. 411. Aliens who are not qualified aliens or nonimmigrants
ineligible for State and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for
State public benefits.
Subtitle C--Attribution of Income and Affidavits of Support
Sec. 421. Federal attribution of sponsor's income and resources to
alien.
Sec. 422. Authority for States to provide for attribution of sponsors
income and resources to the alien with respect to State
programs.
Sec. 423. Requirements for sponsor's affidavit of support.
Subtitle D--General Provisions
Sec. 431. Definitions.
Sec. 432. Verification of eligibility for Federal public
benefits.
Sec. 433. Statutory construction.
Sec. 434. Communication between State and local government
agencies and the Immigration and Naturalization
Service.
Sec. 435. Qualifying quarters.
Subtitle E--Conforming Amendments Relating to Assisted Housing
Sec. 441. Conforming amendments relating to assisted
housing.
Subtitle F--Earning Income Credit Denied to Unauthorized Employees
Sec. 451. Earned income credit denied to individuals not
authorized to be employed in the United States.
TITLE V--CHILD PROTECTION
Sec. 501. Authority of States to make foster care
maintenance payments on behalf of children in any
private child care institution.
Sec. 502. Extension of enhanced match for implementation of
statewide automated child welfare information systems.
Sec. 503. National random sample study of child welfare.
Sec. 504. Redesignation of section 1123.
Sec. 505. Kinship care.
TITLE VI--CHILD CARE
Sec. 601. Short title and references.
Sec. 602. Goals.
Sec. 603. Authorization of appropriations and entitlement authority.
Sec. 604. Lead agency.
Sec. 605. Application and plan.
Sec. 606. Limitation on State allotments.
Sec. 607. Activities to improve the quality of child care.
Sec. 608. Repeal of early childhood development and before- and after-
school care requirement.
Sec. 609. Administration and enforcement.
Sec. 610. Payments.
Sec. 611. Annual report and audits.
Sec. 612. Report by the Secretary.
Sec. 613. Allotments.
Sec. 614. Definitions.
Sec. 615. Effective date.
TITLE VII--CHILD NUTRITION PROGRAMS
Subtitle A--National School Lunch Act
Sec. 701. State disbursement to schools.
Sec. 702. Nutritional and other program requirements.
Sec. 703. Free and reduced price policy statement.
Sec. 704. Special assistance.
Sec. 705. Miscellaneous provisions and definitions.
Sec. 706. Summer food service program for children.
Sec. 707. Commodity distribution.
Sec. 708. Child and adult care food program.
Sec. 709. Pilot projects.
Sec. 710. Reduction of paperwork.
Sec. 711. Information on income eligibility.
Sec. 712. Nutrition guidance for child nutrition programs.
Subtitle B--Child Nutrition Act of 1966
Sec. 721. Special milk program.
Sec. 722. Free and reduced price policy statement.
Sec. 723. School breakfast program authorization.
Sec. 724. State administrative expenses.
Sec. 725. Regulations.
Sec. 726. Prohibitions.
Sec. 727. Miscellaneous provisions and definitions.
Sec. 728. Accounts and records.
Sec. 729. Special supplemental nutrition program for women, infants,
and children.
Sec. 730. Cash grants for nutrition education.
Sec. 731. Nutrition education and training.
Subtitle C--Miscellaneous Provisions
Sec. 741. Coordination of school lunch, school breakfast, and summer
food service programs.
Sec. 742. Requirements relating to provision of benefits based on
citizenship, alienage, or immigration status under the
National School Lunch Act, the Child Nutrition Act of
1966, and certain other acts.
TITLE VIII--FOOD STAMPS AND COMMODITY DISTRIBUTION
Subtitle A--Food Stamp Program
Sec. 801. Definition of certification period.
Sec. 802. Definition of coupon.
Sec. 803. Treatment of children living at home.
Sec. 804. Adjustment of thrifty food plan.
Sec. 805. Definition of homeless individual.
Sec. 806. State option for eligibility standards.
Sec. 807. Earnings of students.
Sec. 808. Energy assistance.
Sec. 809. Deductions from income.
Sec. 810. Vehicle allowance.
Sec. 811. Vendor payments for transitional housing counted as income.
Sec. 812. Simplified calculation of income for the self-employed.
Sec. 813. Doubled penalties for violating food stamp program
requirements.
Sec. 814. Disqualification of convicted individuals.
Sec. 815. Disqualification.
Sec. 816. Caretaker exemption.
Sec. 817. Employment and training.
Sec. 818. Food stamp eligibility.
Sec. 819. Comparable treatment for disqualification.
Sec. 820. Disqualification for receipt of multiple food stamp benefits.
Sec. 821. Disqualification of fleeing felons.
Sec. 822. Cooperation with child support agencies.
Sec. 823. Disqualification relating to child support arrears.
Sec. 824. Work requirement.
Sec. 825. Encouragement of electronic benefit transfer systems.
Sec. 826. Value of minimum allotment.
Sec. 827. Benefits on recertification.
Sec. 828. Optional combined allotment for expedited households.
Sec. 829. Failure to comply with other means-tested public assistance
programs.
Sec. 830. Allotments for households residing in centers.
Sec. 831. Condition precedent for approval of retail food stores and
wholesale food concerns.
Sec. 832. Authority to establish authorization periods.
Sec. 833. Information for verifying eligibility for authorization.
Sec. 834. Waiting period for stores that fail to meet authorization
criteria.
Sec. 835. Operation of food stamp offices.
Sec. 836. State employee and training standards.
Sec. 837. Exchange of law enforcement information.
Sec. 838. Expedited coupon service.
Sec. 839. Withdrawing fair hearing requests.
Sec. 840. Income, eligibility, and immigration status verification
systems.
Sec. 841. Investigations.
Sec. 842. Disqualification of retailers who intentionally submit
falsified applications.
Sec. 843. Disqualification of retailers who are disqualified under the
WIC program.
Sec. 844. Collection of overissuances.
Sec. 845. Authority to suspend stores violating program requirements
pending administrative and judicial review.
Sec. 846. Expanded criminal forfeiture for violations.
Sec. 847. Limitation on Federal match.
Sec. 848. Standards for administration.
Sec. 849. Work supplementation or support program.
Sec. 850. Waiver authority.
Sec. 851. Response to waivers.
Sec. 852. Employment initiatives program.
Sec. 853. Reauthorization.
Sec. 854. Simplified food stamp program.
Sec. 855. Study of the use of food stamps to purchase vitamins and
minerals.
Sec. 856. Deficit reduction.
Subtitle B--Commodity Distribution Programs
Sec. 871. Emergency food assistance program.
Sec. 872. Food bank demonstration project.
Sec. 873. Hunger prevention programs.
Sec. 874. Report on entitlement commodity processing.
Subtitle C--Electronic Benefit Transfer Systems
Sec. 891. Provisions to encourage electronic benefit transfer systems.
TITLE IX--MISCELLANEOUS
Sec. 901. Appropriation by State legislatures.
Sec. 902. Sanctioning for testing positive for controlled substances.
Sec. 903. Elimination of housing assistance with respect to fugitive
felons and probation and parole violators.
Sec. 904. Sense of the Senate regarding the inability of the
noncustodial parent to pay child support.
Sec. 905. Establishing national goals to prevent teenage pregnancies.
Sec. 906. Sense of the Senate regarding enforcement of statutory rape
laws.
Sec. 907. Provisions to encourage electronic benefit transfer systems.
Sec. 908. Reduction of block grants to States for social services; use
of vouchers.
Sec. 909. Rules relating to denial of earned income credit on basis of
disqualified income.
[[Page H8831]]
Sec. 910. Modification of adjusted gross income definition for earned
income credit.
Sec. 911. Fraud under means-tested welfare and public assistance
programs.
Sec. 912. Abstinence education.
Sec. 913. Change in reference.
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
SEC. 101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful society.
(2) Marriage is an essential institution of a successful
society which promotes the interests of children.
(3) Promotion of responsible fatherhood and motherhood is
integral to successful child rearing and the well-being of
children.
(4) In 1992, only 54 percent of single-parent families with
children had a child support order established and, of that
54 percent, only about one-half received the full amount due.
Of the cases enforced through the public child support
enforcement system, only 18 percent of the caseload has a
collection.
(5) The number of individuals receiving aid to families
with dependent children (in this section referred to as
``AFDC'') has more than tripled since 1965. More than two-
thirds of these recipients are children. Eighty-nine percent
of children receiving AFDC benefits now live in homes in
which no father is present.
(A)(i) The average monthly number of children receiving
AFDC benefits--
(I) was 3,300,000 in 1965;
(II) was 6,200,000 in 1970;
(III) was 7,400,000 in 1980; and
(IV) was 9,300,000 in 1992.
(ii) While the number of children receiving AFDC benefits
increased nearly threefold between 1965 and 1992, the total
number of children in the United States aged 0 to 18 has
declined by 5.5 percent.
(B) The Department of Health and Human Services has
estimated that 12,000,000 children will receive AFDC benefits
within 10 years.
(C) The increase in the number of children receiving public
assistance is closely related to the increase in births to
unmarried women. Between 1970 and 1991, the percentage of
live births to unmarried women increased nearly threefold,
from 10.7 percent to 29.5 percent.
(6) The increase of out-of-wedlock pregnancies and births
is well documented as follows:
(A) It is estimated that the rate of nonmarital teen
pregnancy rose 23 percent from 54 pregnancies per 1,000
unmarried teenagers in 1976 to 66.7 pregnancies in 1991. The
overall rate of nonmarital pregnancy rose 14 percent from
90.8 pregnancies per 1,000 unmarried women in 1980 to 103 in
both 1991 and 1992. In contrast, the overall pregnancy rate
for married couples decreased 7.3 percent between 1980 and
1991, from 126.9 pregnancies per 1,000 married women in 1980
to 117.6 pregnancies in 1991.
(B) The total of all out-of-wedlock births between 1970 and
1991 has risen from 10.7 percent to 29.5 percent and if the
current trend continues, 50 percent of all births by the year
2015 will be out-of-wedlock.
(7) An effective strategy to combat teenage pregnancy must
address the issue of male responsibility, including statutory
rape culpability and prevention. The increase of teenage
pregnancies among the youngest girls is particularly severe
and is linked to predatory sexual practices by men who are
significantly older.
(A) It is estimated that in the late 1980's, the rate for
girls age 14 and under giving birth increased 26 percent.
(B) Data indicates that at least half of the children born
to teenage mothers are fathered by adult men. Available data
suggests that almost 70 percent of births to teenage girls
are fathered by men over age 20.
(C) Surveys of teen mothers have revealed that a majority
of such mothers have histories of sexual and physical abuse,
primarily with older adult men.
(8) The negative consequences of an out-of-wedlock birth on
the mother, the child, the family, and society are well
documented as follows:
(A) Young women 17 and under who give birth outside of
marriage are more likely to go on public assistance and to
spend more years on welfare once enrolled. These combined
effects of ``younger and longer'' increase total AFDC costs
per household by 25 percent to 30 percent for 17-year-olds.
(B) Children born out-of-wedlock have a substantially
higher risk of being born at a very low or moderately low
birth weight.
(C) Children born out-of-wedlock are more likely to
experience low verbal cognitive attainment, as well as more
child abuse, and neglect.
(D) Children born out-of-wedlock were more likely to have
lower cognitive scores, lower educational aspirations, and a
greater likelihood of becoming teenage parents themselves.
(E) Being born out-of-wedlock significantly reduces the
chances of the child growing up to have an intact marriage.
(F) Children born out-of-wedlock are 3 times more likely to
be on welfare when they grow up.
(9) Currently 35 percent of children in single-parent homes
were born out-of-wedlock, nearly the same percentage as that
of children in single-parent homes whose parents are divorced
(37 percent). While many parents find themselves, through
divorce or tragic circumstances beyond their control, facing
the difficult task of raising children alone, nevertheless,
the negative consequences of raising children in single-
parent homes are well documented as follows:
(A) Only 9 percent of married-couple families with children
under 18 years of age have income below the national poverty
level. In contrast, 46 percent of female-headed households
with children under 18 years of age are below the national
poverty level.
(B) Among single-parent families, nearly 1/2 of the
mothers who never married received AFDC while only 1/5 of
divorced mothers received AFDC.
(C) Children born into families receiving welfare
assistance are 3 times more likely to be on welfare when they
reach adulthood than children not born into families
receiving welfare.
(D) Mothers under 20 years of age are at the greatest risk
of bearing low-birth-weight babies.
(E) The younger the single parent mother, the less likely
she is to finish high school.
(F) Young women who have children before finishing high
school are more likely to receive welfare assistance for a
longer period of time.
(G) Between 1985 and 1990, the public cost of births to
teenage mothers under the aid to families with dependent
children program, the food stamp program, and the medicaid
program has been estimated at $120,000,000,000.
(H) The absence of a father in the life of a child has a
negative effect on school performance and peer adjustment.
(I) Children of teenage single parents have lower cognitive
scores, lower educational aspirations, and a greater
likelihood of becoming teenage parents themselves.
(J) Children of single-parent homes are 3 times more likely
to fail and repeat a year in grade school than are children
from intact 2-parent families.
(K) Children from single-parent homes are almost 4 times
more likely to be expelled or suspended from school.
(L) Neighborhoods with larger percentages of youth aged 12
through 20 and areas with higher percentages of single-parent
households have higher rates of violent crime.
(M) Of those youth held for criminal offenses within the
State juvenile justice system, only 29.8 percent lived
primarily in a home with both parents. In contrast to these
incarcerated youth, 73.9 percent of the 62,800,000 children
in the Nation's resident population were living with both
parents.
(10) Therefore, in light of this demonstration of the
crisis in our Nation, it is the sense of the Congress that
prevention of out-of-wedlock pregnancy and reduction in out-
of-wedlock birth are very important Government interests and
the policy contained in part A of title IV of the Social
Security Act (as amended by section 103(a) of this Act) is
intended to address the crisis.
SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this
title an amendment is expressed in terms of an amendment to
or repeal of a section or other provision, the reference
shall be considered to be made to that section or other
provision of the Social Security Act.
SEC. 103. BLOCK GRANTS TO STATES.
(a) In General.--Part A of title IV (42 U.S.C. 601 et seq.)
is amended--
(1) by striking all that precedes section 418 (as added by
section 603(b)(2) of this Act) and inserting the following:
``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
``SEC. 401. PURPOSE.
``(a) In General.--The purpose of this part is to increase
the flexibility of States in operating a program designed
to--
``(1) provide assistance to needy families so that children
may be cared for in their own homes or in the homes of
relatives;
``(2) end the dependence of needy parents on government
benefits by promoting job preparation, work, and marriage;
``(3) prevent and reduce the incidence of out-of-wedlock
pregnancies and establish annual numerical goals for
preventing and reducing the incidence of these pregnancies;
and
``(4) encourage the formation and maintenance of two-parent
families.
``(b) No Individual Entitlement.--This part shall not be
interpreted to entitle any individual or family to assistance
under any State program funded under this part.
``SEC. 402. ELIGIBLE STATES; STATE PLAN.
``(a) In General.--As used in this part, the term `eligible
State' means, with respect to a fiscal year, a State that,
during the 2-year period immediately preceding the fiscal
year, has submitted to the Secretary a plan that the
Secretary has found includes the following:
``(1) Outline of family assistance program.--
``(A) General provisions.--A written document that outlines
how the State intends to do the following:
``(i) Conduct a program, designed to serve all political
subdivisions in the State (not necessarily in a uniform
manner), that provides assistance to needy families with (or
expecting) children and provides parents with job
preparation, work, and support services to enable them to
leave the program and become self-sufficient.
``(ii) Require a parent or caretaker receiving assistance
under the program to engage
[[Page H8832]]
in work (as defined by the State) once the State determines
the parent or caretaker is ready to engage in work, or once
the parent or caretaker has received assistance under the
program for 24 months (whether or not consecutive), whichever
is earlier.
``(iii) Ensure that parents and caretakers receiving
assistance under the program engage in work activities in
accordance with section 407.
``(iv) Take such reasonable steps as the State deems
necessary to restrict the use and disclosure of information
about individuals and families receiving assistance under the
program attributable to funds provided by the Federal
Government.
``(v) Establish goals and take action to prevent and reduce
the incidence of out-of-wedlock pregnancies, with special
emphasis on teenage pregnancies, and establish numerical
goals for reducing the illegitimacy ratio of the State (as
defined in section 403(a)(2)(B)) for calendar years 1996
through 2005.
``(vi) Conduct a program, designed to reach State and local
law enforcement officials, the education system, and relevant
counseling services, that provides education and training on
the problem of statutory rape so that teenage pregnancy
prevention programs may be expanded in scope to include men.
``(B) Special provisions.--
``(i) The document shall indicate whether the State intends
to treat families moving into the State from another State
differently than other families under the program, and if so,
how the State intends to treat such families under the
program.
``(ii) The document shall indicate whether the State
intends to provide assistance under the program to
individuals who are not citizens of the United States, and if
so, shall include an overview of such assistance.
``(iii) The document shall set forth objective criteria for
the delivery of benefits and the determination of eligibility
and for fair and equitable treatment, including an
explanation of how the State will provide opportunities for
recipients who have been adversely affected to be heard in a
State administrative or appeal process.
``(iv) Not later than 1 year after the date of enactment of
this Act, unless the chief executive officer of the State
opts out of this provision by notifying the Secretary, a
State shall, consistent with the exception provided in
section 407(e)(2), require a parent or caretaker receiving
assistance under the program who, after receiving such
assistance for 2 months is not exempt from work requirements
and is not engaged in work, as determined under section
407(c), to participate in community service employment, with
minimum hours per week and tasks to be determined by the
State.
``(2) Certification that the state will operate a child
support enforcement program.--A certification by the chief
executive officer of the State that, during the fiscal year,
the State will operate a child support enforcement program
under the State plan approved under part D.
``(3) Certification that the state will operate a foster
care and adoption assistance program.--A certification by the
chief executive officer of the State that, during the fiscal
year, the State will operate a foster care and adoption
assistance program under the State plan approved under part
E, and that the State will take such actions as are necessary
to ensure that children receiving assistance under such part
are eligible for medical assistance under the State plan
under title XIX.
``(4) Certification of the administration of the program.--
A certification by the chief executive officer of the State
specifying which State agency or agencies will administer and
supervise the program referred to in paragraph (1) for the
fiscal year, which shall include assurances that local
governments and private sector organizations--
``(A) have been consulted regarding the plan and design of
welfare services in the State so that services are provided
in a manner appropriate to local populations; and
``(B) have had at least 45 days to submit comments on the
plan and the design of such services.
``(5) Certification that the state will provide indians
with equitable access to assistance.--A certification by the
chief executive officer of the State that, during the fiscal
year, the State will provide each member of an Indian tribe,
who is domiciled in the State and is not eligible for
assistance under a tribal family assistance plan approved
under section 412, with equitable access to assistance under
the State program funded under this part attributable to
funds provided by the Federal Government.
``(6) Certification of standards and procedures to ensure
against program fraud and abuse.--A certification by the
chief executive officer of the State that the State has
established and is enforcing standards and procedures to
ensure against program fraud and abuse, including standards
and procedures concerning nepotism, conflicts of interest
among individuals responsible for the administration and
supervision of the State program, kickbacks, and the use of
political patronage.
``(7) Optional certification of standards and procedures to
ensure that the state will screen for and identify domestic
violence.--
``(A) In general.--At the option of the State, a
certification by the chief executive officer of the State
that the State has established and is enforcing standards and
procedures to--
``(i) screen and identify individuals receiving assistance
under this part with a history of domestic violence while
maintaining the confidentiality of such individuals;
``(ii) refer such individuals to counseling and supportive
services; and
``(iii) waive, pursuant to a determination of good cause,
other program requirements such as time limits (for so long
as necessary) for individuals receiving assistance, residency
requirements, child support cooperation requirements, and
family cap provisions, in cases where compliance with such
requirements would make it more difficult for individuals
receiving assistance under this part to escape domestic
violence or unfairly penalize such individuals who are or
have been victimized by such violence, or individuals who are
at risk of further domestic violence.
``(B) Domestic violence defined.--For purposes of this
paragraph, the term `domestic violence' has the same meaning
as the term `battered or subjected to extreme cruelty', as
defined in section 408(a)(7)(C)(iii).
``(b) Public Availability of State Plan Summary.--The State
shall make available to the public a summary of any plan
submitted by the State under this section.
``SEC. 403. GRANTS TO STATES.
``(a) Grants.--
``(1) Family assistance grant.--
``(A) In general.--Each eligible State shall be entitled to
receive from the Secretary, for each of fiscal years 1996,
1997, 1998, 1999, 2000, 2001, and 2002, a grant in an amount
equal to the State family assistance grant.
``(B) State family assistance grant defined.--As used in
this part, the term `State family assistance grant' means the
greatest of--
``(i) 1/3 of the total amount required to be paid to the
State under former section 403 (as in effect on September 30,
1995) for fiscal years 1992, 1993, and 1994 (other than with
respect to amounts expended by the State for child care under
subsection (g) or (i) of former section 402 (as so in
effect));
``(ii)(I) the total amount required to be paid to the State
under former section 403 for fiscal year 1994 (other than
with respect to amounts expended by the State for child care
under subsection (g) or (i) of former section 402 (as so in
effect)); plus
``(II) an amount equal to 85 percent of the amount (if any)
by which the total amount required to be paid to the State
under former section 403(a)(5) for emergency assistance for
fiscal year 1995 exceeds the total amount required to be paid
to the State under former section 403(a)(5) for fiscal year
1994, if, during fiscal year 1994 or 1995, the Secretary
approved under former section 402 an amendment to the former
State plan with respect to the provision of emergency
assistance; or
``(iii) 4/3 of the total amount required to be paid to
the State under former section 403 (as in effect on September
30, 1995) for the 1st 3 quarters of fiscal year 1995 (other
than with respect to amounts expended by the State under the
State plan approved under part F (as so in effect) or for
child care under subsection (g) or (i) of former section 402
(as so in effect)), plus the total amount required to be paid
to the State for fiscal year 1995 under former section 403(l)
(as so in effect).
``(C) Total amount required to be paid to the state under
former section 403 defined.--As used in this part, the term
`total amount required to be paid to the State under former
section 403' means, with respect to a fiscal year--
``(i) in the case of a State to which section 1108 does not
apply, the sum of--
``(I) the Federal share of maintenance assistance
expenditures for the fiscal year, before reduction pursuant
to subparagraph (B) or (C) of section 403(b)(2) (as in effect
on September 30, 1995), as reported by the State on ACF Form
231;
``(II) the Federal share of administrative expenditures
(including administrative expenditures for the development of
management information systems) for the fiscal year, as
reported by the State on ACF Form 231;
``(III) the Federal share of emergency assistance
expenditures for the fiscal year, as reported by the State on
ACF Form 231;
``(IV) the Federal share of expenditures for the fiscal
year with respect to child care pursuant to subsections (g)
and (i) of former section 402 (as in effect on September 30,
1995), as reported by the State on ACF Form 231; and
``(V) the Federal obligations made to the State under
section 403 for the fiscal year with respect to the State
program operated under part F (as in effect on September 30,
1995), as determined by the Secretary, including additional
obligations or reductions in obligations made after the close
of the fiscal year; and
``(ii) in the case of a State to which section 1108
applies, the lesser of--
``(I) the sum described in clause (i); or
``(II) the total amount certified by the Secretary under
former section 403 (as in effect during the fiscal year) with
respect to the territory.
``(D) Information to be used in determining amounts.--
``(i) For fiscal years 1992 and 1993.--
``(I) In determining the amounts described in subclauses
(I) through (IV) of subparagraph (C)(i) for any State for
each of fiscal years 1992 and 1993, the Secretary shall use
information available as of April 28, 1995.
``(II) In determining the amount described in subparagraph
(C)(i)(V) for any State for
[[Page H8833]]
each of fiscal years 1992 and 1993, the Secretary shall use
information available as of January 6, 1995.
``(ii) For fiscal year 1994.--In determining the amounts
described in subparagraph (C)(i) for any State for fiscal
year 1994, the Secretary shall use information available as
of April 28, 1995.
``(iii) For fiscal year 1995.--
``(I) In determining the amount described in subparagraph
(B)(ii)(II) for any State for fiscal year 1995, the Secretary
shall use the information which was reported by the States
and estimates made by the States with respect to emergency
assistance expenditures and was available as of August 11,
1995.
``(II) In determining the amounts described in subclauses
(I) through (III) of subparagraph (C)(i) for any State for
fiscal year 1995, the Secretary shall use information
available as of October 2, 1995.
``(III) In determining the amount described in subparagraph
(C)(i)(IV) for any State for fiscal year 1995, the Secretary
shall use information available as of February 28, 1996.
``(IV) In determining the amount described in subparagraph
(C)(i)(V) for any State for fiscal year 1995, the Secretary
shall use information available as of October 5, 1995.
``(E) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1996, 1997, 1998, 1999, 2000,
2001, and 2002 such sums as are necessary for grants under
this paragraph.
``(2) Bonus to reward decrease in illegitimacy.--
``(A) In general.--Each eligible State shall be entitled to
receive from the Secretary a grant for each bonus year for
which the State demonstrates a net decrease in out-of-wedlock
births.
``(B) Amount of grant.--
``(i) If 5 eligible states.--If there are 5 eligible States
for a bonus year, the amount of the grant shall be
$20,000,000.
``(ii) If fewer than 5 eligible states.--If there are fewer
than 5 eligible States for a bonus year, the amount of the
grant shall be $25,000,000.
``(C) Definitions.--As used in this paragraph:
``(i) Eligible state.--
``(I) In general.--The term `eligible State' means a State
that the Secretary determines meets the following
requirements:
``(aa) The State demonstrates that the number of out-of-
wedlock births that occurred in the State during the most
recent 2-year period for which such information is available
decreased as compared to the number of such births that
occurred during the previous 2-year period, and the magnitude
of the decrease for the State for the period is not exceeded
by the magnitude of the corresponding decrease for 5 or more
other States for the period.
``(bb) The rate of induced pregnancy terminations in the
State for the fiscal year is less than the rate of induced
pregnancy terminations in the State for fiscal year 1995.
``(II) Disregard of changes in data due to changed
reporting methods.--In making the determination required by
subclause (I), the Secretary shall disregard--
``(aa) any difference between the number of out-of-wedlock
births that occurred in a State for a fiscal year and the
number of out-of-wedlock births that occurred in a State for
fiscal year 1995 which is attributable to a change in State
methods of reporting data used to calculate the number of
out-of-wedlock births; and
``(bb) any difference between the rate of induced pregnancy
terminations in a State for a fiscal year and such rate for
fiscal year 1995 which is attributable to a change in State
methods of reporting data used to calculate such rate.
``(ii) Bonus year.--The term `bonus year' means fiscal
years 1999, 2000, 2001, and 2002.
``(D) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1999 through 2002, such sums as
are necessary for grants under this paragraph.
``(3) Supplemental grant for population increases in
certain states.--
``(A) In general.--Each qualifying State shall, subject to
subparagraph (F), be entitled to receive from the Secretary--
``(i) for fiscal year 1998 a grant in an amount equal to
2.5 percent of the total amount required to be paid to the
State under former section 403 (as in effect during fiscal
year 1994) for fiscal year 1994; and
``(ii) for each of fiscal years 1999, 2000, and 2001, a
grant in an amount equal to the sum of--
``(I) the amount (if any) required to be paid to the State
under this paragraph for the immediately preceding fiscal
year; and
``(II) 2.5 percent of the sum of--
``(aa) the total amount required to be paid to the State
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994; and
``(bb) the amount (if any) required to be paid to the State
under this paragraph for the fiscal year preceding the fiscal
year for which the grant is to be made.
``(B) Preservation of grant without increases for states
failing to remain qualifying states.--Each State that is not
a qualifying State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State for a prior
fiscal year shall, subject to subparagraph (F), be entitled
to receive from the Secretary for the specified fiscal year,
a grant in an amount equal to the amount required to be paid
to the State under this paragraph for the most recent fiscal
year for which the State was a qualifying State.
``(C) Qualifying state.--
``(i) In general.--For purposes of this paragraph, a State
is a qualifying State for a fiscal year if--
``(I) the level of welfare spending per poor person by the
State for the immediately preceding fiscal year is less than
the national average level of State welfare spending per poor
person for such preceding fiscal year; and
``(II) the population growth rate of the State (as
determined by the Bureau of the Census) for the most recent
fiscal year for which information is available exceeds the
average population growth rate for all States (as so
determined) for such most recent fiscal year.
``(ii) State must qualify in fiscal year 1997.--
Notwithstanding clause (i), a State shall not be a qualifying
State for any fiscal year after 1998 by reason of clause (i)
if the State is not a qualifying State for fiscal year 1998
by reason of clause (i).
``(iii) Certain states deemed qualifying states.--For
purposes of this paragraph, a State is deemed to be a
qualifying State for fiscal years 1998, 1999, 2000, and 2001
if--
``(I) the level of welfare spending per poor person by the
State for fiscal year 1994 is less than 35 percent of the
national average level of State welfare spending per poor
person for fiscal year 1994; or
``(II) the population of the State increased by more than
10 percent from April 1, 1990 to July 1, 1994, according to
the population estimates in publication CB94-204 of the
Bureau of the Census.
``(D) Definitions.--As used in this paragraph:
``(i) Level of welfare spending per poor person.--The term
`level of State welfare spending per poor person' means, with
respect to a State and a fiscal year--
``(I) the sum of--
``(aa) the total amount required to be paid to the State
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994; and
``(bb) the amount (if any) paid to the State under this
paragraph for the immediately preceding fiscal year; divided
by
``(II) the number of individuals, according to the 1990
decennial census, who were residents of the State and whose
income was below the poverty line.
``(ii) National average level of state welfare spending per
poor person.--The term `national average level of State
welfare spending per poor person' means, with respect to a
fiscal year, an amount equal to--
``(I) the total amount required to be paid to the States
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994; divided by
``(II) the number of individuals, according to the 1990
decennial census, who were residents of any State and whose
income was below the poverty line.
``(iii) State.--The term `State' means each of the 50
States of the United States and the District of Columbia.
``(E) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1998, 1999, 2000, and 2001 such
sums as are necessary for grants under this paragraph, in a
total amount not to exceed $800,000,000.
``(F) Grants reduced pro rata if insufficient
appropriations.--If the amount appropriated pursuant to this
paragraph for a fiscal year is less than the total amount of
payments otherwise required to be made under this paragraph
for the fiscal year, then the amount otherwise payable to any
State for the fiscal year under this paragraph shall be
reduced by a percentage equal to the amount so appropriated
divided by such total amount.
``(G) Budget scoring.--Notwithstanding section 257(b)(2) of
the Balanced Budget and Emergency Deficit Control Act of
1985, the baseline shall assume that no grant shall be made
under this paragraph after fiscal year 2001.
``(4) Bonus to reward high performance states.--
``(A) In general.--The Secretary shall make a grant
pursuant to this paragraph to each State for each bonus year
for which the State is a high performing State.
``(B) Amount of grant.--
``(i) In general.--Subject to clause (ii) of this
subparagraph, the Secretary shall determine the amount of the
grant payable under this paragraph to a high performing State
for a bonus year, which shall be based on the score assigned
to the State under subparagraph (D)(i) for the fiscal year
that immediately precedes the bonus year.
``(ii) Limitation.--The amount payable to a State under
this paragraph for a bonus year shall not exceed 5 percent of
the State family assistance grant.
``(C) Formula for measuring state performance.--Not later
than 1 year after the date of the enactment of the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996, the Secretary, in consultation with the National
Governors' Association and the American Public Welfare
Association, shall develop a formula for measuring State
performance in operating the State program funded under this
part so as to achieve the goals set forth in section 401(a).
``(D) Scoring of state performance; setting of performance
thresholds.--For each bonus year, the Secretary shall--
[[Page H8834]]
``(i) use the formula developed under subparagraph (C) to
assign a score to each eligible State for the fiscal year
that immediately precedes the bonus year; and
``(ii) prescribe a performance threshold in such a manner
so as to ensure that--
``(I) the average annual total amount of grants to be made
under this paragraph for each bonus year equals $200,000,000;
and
``(II) the total amount of grants to be made under this
paragraph for all bonus years equals $1,000,000,000.
``(E) Definitions.--As used in this paragraph:
``(i) Bonus year.--The term `bonus year' means fiscal years
1999, 2000, 2001, 2002, and 2003.
``(ii) High performing state.--The term `high performing
State' means, with respect a bonus year, an eligible State
whose score assigned pursuant to subparagraph (D)(i) for the
fiscal year immediately preceding the bonus year equals or
exceeds the performance threshold prescribed under
subparagraph (D)(ii) for such preceding fiscal year.
``(F) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1999 through 2003
$1,000,000,000 for grants under this paragraph.
``(b) Contingency Fund.--
``(1) Establishment.--There is hereby established in the
Treasury of the United States a fund which shall be known as
the `Contingency Fund for State Welfare Programs' (in this
section referred to as the `Fund').
``(2) Deposits into fund.--Out of any money in the Treasury
of the United States not otherwise appropriated, there are
appropriated for fiscal years 1997, 1998, 1999, 2000, and
2001 such sums as are necessary for payment to the Fund in a
total amount not to exceed $2,000,000,000.
``(3) Grants.--
``(A) Provisional payments.--If an eligible State submits
to the Secretary a request for funds under this paragraph
during an eligible month, the Secretary shall, subject to
this paragraph, pay to the State, from amounts appropriated
pursuant to paragraph (2), an amount equal to the amount of
funds so requested.
``(B) Payment priority.--The Secretary shall make payments
under subparagraph (A) in the order in which the Secretary
receives requests for such payments.
``(C) Limitations.--
``(i) Monthly payment to a state.--The total amount paid to
a single State under subparagraph (A) during a month shall
not exceed 1/12 of 20 percent of the State family
assistance grant.
``(ii) Payments to all states.--The total amount paid to
all States under subparagraph (A) during fiscal years 1997
through 2001 shall not exceed the total amount appropriated
pursuant to paragraph (2).
``(4) Annual reconciliation.--Notwithstanding paragraph
(3), at the end of each fiscal year, each State shall remit
to the Secretary an amount equal to the amount (if any) by
which the total amount paid to the State under paragraph (3)
during the fiscal year exceeds--
``(A) the Federal medical assistance percentage for the
State for the fiscal year (as defined in section 1905(b), as
in effect on September 30, 1995) of the amount (if any) by
which--
``(i) if the Secretary makes a payment to the State under
section 418(a)(2) in the fiscal year--
``(I) the expenditures under the State program funded under
this part for the fiscal year, excluding any amounts made
available by the Federal Government (except amounts paid to
the State under paragraph (3) during the fiscal year that
have been expended by the State) and any amounts expended by
the State during the fiscal year for child care; exceeds
``(II) historic State expenditures (as defined in section
409(a)(7)(B)(iii)), excluding the expenditures by the State
for child care under subsection (g) or (i) of section 402 (as
in effect during fiscal year 1994) for fiscal year 1994 minus
any Federal payment with respect to such child care
expenditures; or
``(ii) if the Secretary does not make a payment to the
State under section 418(a)(2) in the fiscal year--
``(I) the expenditures under the State program funded under
this part for the fiscal year (excluding any amounts made
available by the Federal Government, except amounts paid to
the State under paragraph (3) during the fiscal year that
have been expended by the State); exceeds
``(II) historic State expenditures (as defined in section
409(a)(7)(B)(iii)); multiplied by
``(B) 1/12 times the number of months during the fiscal
year for which the Secretary makes a payment to the State
under this subsection.
``(5) Eligible month.--As used in paragraph (3)(A), the
term `eligible month' means, with respect to a State, a month
in the 2-month period that begins with any month for which
the State is a needy State.
``(6) Needy state.--For purposes of paragraph (5), a State
is a needy State for a month if--
``(A) the average rate of--
``(i) total unemployment in such State (seasonally
adjusted) for the period consisting of the most recent 3
months for which data for all States are published equals or
exceeds 6.5 percent; and
``(ii) total unemployment in such State (seasonally
adjusted) for the 3-month period equals or exceeds 110
percent of such average rate for either (or both) of the
corresponding 3-month periods ending in the 2 preceding
calendar years; or
``(B) as determined by the Secretary of Agriculture (in the
discretion of the Secretary of Agriculture), the monthly
average number of individuals (as of the last day of each
month) participating in the food stamp program in the State
in the then most recently concluded 3-month period for which
data are available exceeds by not less than 10 percent the
lesser of--
``(i) the monthly average number of individuals (as of the
last day of each month) in the State that would have
participated in the food stamp program in the corresponding
3-month period in fiscal year 1994 if the amendments made by
titles IV and VIII of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 had been in effect
throughout fiscal year 1994; or
``(ii) the monthly average number of individuals (as of the
last day of each month) in the State that would have
participated in the food stamp program in the corresponding
3-month period in fiscal year 1995 if the amendments made by
titles IV and VIII of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 had been in effect
throughout fiscal year 1995.
``(7) Other terms defined.--As used in this subsection:
``(A) State.--The term `State' means each of the 50 States
of the United States and the District of Columbia.
``(B) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(8) Annual reports.--The Secretary shall annually report
to the Congress on the status of the Fund.
``SEC. 404. USE OF GRANTS.
``(a) General Rules.--Subject to this part, a State to
which a grant is made under section 403 may use the grant--
``(1) in any manner that is reasonably calculated to
accomplish the purpose of this part, including to provide low
income households with assistance in meeting home heating and
cooling costs; or
``(2) in any manner that the State was authorized to use
amounts received under part A or F, as such parts were in
effect on September 30, 1995.
``(b) Limitation on Use of Grant for Administrative
Purposes.--
``(1) Limitation.--A State to which a grant is made under
section 403 shall not expend more than 15 percent of the
grant for administrative purposes.
``(2) Exception.--Paragraph (1) shall not apply to the use
of a grant for information technology and computerization
needed for tracking or monitoring required by or under this
part.
``(c) Authority to Treat Interstate Immigrants Under Rules
of Former State.--A State operating a program funded under
this part may apply to a family the rules (including benefit
amounts) of the program funded under this part of another
State if the family has moved to the State from the other
State and has resided in the State for less than 12 months.
``(d) Authority to Use Portion of Grant for Other
Purposes.--
``(1) In general.--A State may use not more than 30 percent
of the amount of any grant made to the State under section
403(a) for a fiscal year to carry out a State program
pursuant to any or all of the following provisions of law:
``(A) Title XX of this Act.
``(B) The Child Care and Development Block Grant Act of
1990.
``(2) Limitation on amount transferable to title xx
programs.--Notwithstanding paragraph (1), not more than 1/3
of the total amount paid to a State under this part for a
fiscal year that is used to carry out State programs pursuant
to provisions of law specified in paragraph (1) may be used
to carry out State programs pursuant to title XX.
``(3) Applicable rules.--
``(A) In general.--Except as provided in subparagraph (B)
of this paragraph, any amount paid to a State under this part
that is used to carry out a State program pursuant to a
provision of law specified in paragraph (1) shall not be
subject to the requirements of this part, but shall be
subject to the requirements that apply to Federal funds
provided directly under the provision of law to carry out the
program, and the expenditure of any amount so used shall not
be considered to be an expenditure under this part.
``(B) Exception relating to title xx programs.--All amounts
paid to a State under this part that are used to carry out
State programs pursuant to title XX shall be used only for
programs and services to children or their families whose
income is less than 200 percent of the income official
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section
673(2) of the Omnibus Budget Reconciliation Act of 1981)
applicable to a family of the size involved.
``(e) Authority to Reserve Certain Amounts for
Assistance.--A State may reserve amounts paid to the State
under this part for any fiscal year for the purpose of
providing, without fiscal year limitation, assistance under
the State program funded under this part.
``(f) Authority to Operate Employment Placement Program.--A
State to which a grant is made under section 403 may use the
grant to make payments (or provide job
[[Page H8835]]
placement vouchers) to State-approved public and private job
placement agencies that provide employment placement services
to individuals who receive assistance under the State program
funded under this part.
``(g) Implementation of Electronic Benefit Transfer
System.--A State to which a grant is made under section 403
is encouraged to implement an electronic benefit transfer
system for providing assistance under the State program
funded under this part, and may use the grant for such
purpose.
``(h) Use of Funds for Individual Development Accounts.--
``(1) In general.--A State to which a grant is made under
section 403 may use the grant to carry out a program to fund
individual development accounts (as defined in paragraph (2))
established by individuals eligible for assistance under the
State program funded under this part.
``(2) Indi
Major Actions:
All articles in House section
CONFERENCE REPORT ON H.R. 3734, PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996
(House of Representatives - July 30, 1996)
Text of this article available as:
[Pages H8829-H8958]
CONFERENCE REPORT ON H.R. 3734, PERSONAL RESPONSIBILITY AND WORK
OPPORTUNITY RECONCILIATION ACT OF 1996
Mr. KASICH submitted the following conference report and statement on
the bill (H.R. 3734) to provide for reconciliation pursuant to section
201(a)(1) of the concurrent resolution on the budget for fiscal year
1997:
Conference Report (H. Rept. 104-725)
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
3734), to provide for reconciliation pursuant to section
201(a)(1) of the concurrent resolution on the budget for
fiscal year 1997, having met, after full and free conference,
have agreed to recommend and do recommend to their respective
Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Personal Responsibility and
Work Opportunity Reconciliation Act of 1996''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private
organizations.
Sec. 105. Census data on grandparents as primary caregivers for their
grandchildren.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and
related provisions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant social
security card required.
Sec. 112. Modifications to the job opportunities for certain low-income
individuals program.
Sec. 113. Secretarial submission of legislative proposal for technical
and conforming amendments.
Sec. 114. Assuring medicaid coverage for low-income families.
Sec. 115. Denial of assistance and benefits for certain drug-related
convictions.
Sec. 116. Effective date; transition rule.
TITLE II--SUPPLEMENTAL SECURITY INCOME
Sec. 200. Reference to Social Security Act.
Subtitle A--Eligibility Restrictions
Sec. 201. Denial of SSI benefits for 10 years to individuals found to
have fraudulently misrepresented residence in order to
obtain benefits simultaneously in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation and
parole violators.
Sec. 203. Treatment of prisoners.
Sec. 204. Effective date of application for benefits.
Subtitle B--Benefits for Disabled Children
Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability
reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized
individuals whose medical costs are covered by private
insurance.
Sec. 215. Regulations.
Subtitle C--Additional Enforcement Provision
Sec. 221. Installment payment of large past-due supplemental security
income benefits.
Sec. 222. Regulations.
Subtitle D--Studies Regarding Supplemental Security Income Program
Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study by General Accounting Office.
TITLE III--CHILD SUPPORT
Sec. 300. Reference to Social Security Act.
Subtitle A--Eligibility for Services; Distribution of Payments
Sec. 301. State obligation to provide child support enforcement
services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification of hearings.
Subtitle B--Locate and Case Tracking
Sec. 311. State case registry.
Sec. 312. Collection and disbursement of support payments.
Sec. 313. State directory of new hires.
Sec. 314. Amendments concerning income withholding.
Sec. 315. Locator information from interstate networks.
Sec. 316. Expansion of the Federal parent locator service.
Sec. 317. Collection and use of social security numbers for use in
child support enforcement.
Subtitle C--Streamlining and Uniformity of Procedures
Sec. 321. Adoption of uniform State laws.
Sec. 322. Improvements to full faith and credit for child support
orders.
Sec. 323. Administrative enforcement in interstate cases.
Sec. 324. Use of forms in interstate enforcement.
Sec. 325. State laws providing expedited procedures.
Subtitle D--Paternity Establishment
Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of part A
assistance.
Subtitle E--Program Administration and Funding
Sec. 341. Performance-based incentives and penalties.
Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.
Subtitle F--Establishment and Modification of Support Orders
Sec. 351. Simplified process for review and adjustment of child support
orders.
Sec. 352. Furnishing consumer reports for certain purposes relating to
child support.
Sec. 353. Nonliability for financial institutions providing financial
records to State child support enforcement agencies in
child support cases.
Subtitle G--Enforcement of Support Orders
Sec. 361. Internal Revenue Service collection of arrearages.
Sec. 362. Authority to collect support from Federal employees.
Sec. 363. Enforcement of child support obligations of members of the
Armed Forces.
Sec. 364. Voiding of fraudulent transfers.
Sec. 365. Work requirement for persons owing past-due child support.
Sec. 366. Definition of support order.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Liens.
Sec. 369. State law authorizing suspension of licenses.
Sec. 370. Denial of passports for nonpayment of child support.
Sec. 371. International support enforcement.
Sec. 372. Financial institution data matches.
Sec. 373. Enforcement of orders against paternal or maternal
grandparents in cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for the
support of a child.
Sec. 375. Child support enforcement for Indian tribes.
Subtitle H--Medical Support
Sec. 381. Correction to ERISA definition of medical child support
order.
Sec. 382. Enforcement of orders for health care coverage.
Subtitle I--Enhancing Responsibility and Opportunity for Non-
Residential Parents
Sec. 391. Grants to States for access and visitation programs.
Subtitle J--Effective Dates and Conforming Amendments
Sec. 395. Effective dates and conforming amendments.
TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
Sec. 400. Statements of national policy concerning welfare and
immigration.
Subtitle A--Eligibility for Federal Benefits
Sec. 401. Aliens who are not qualified aliens ineligible for Federal
public benefits.
[[Page H8830]]
Sec. 402. Limited eligibility of qualified aliens for certain Federal
programs.
Sec. 403. Five-year limited eligibility of qualified aliens for Federal
means-tested public benefit.
Sec. 404. Notification and information reporting.
Subtitle B--Eligibility for State and Local Public Benefits Programs
Sec. 411. Aliens who are not qualified aliens or nonimmigrants
ineligible for State and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for
State public benefits.
Subtitle C--Attribution of Income and Affidavits of Support
Sec. 421. Federal attribution of sponsor's income and resources to
alien.
Sec. 422. Authority for States to provide for attribution of sponsors
income and resources to the alien with respect to State
programs.
Sec. 423. Requirements for sponsor's affidavit of support.
Subtitle D--General Provisions
Sec. 431. Definitions.
Sec. 432. Verification of eligibility for Federal public
benefits.
Sec. 433. Statutory construction.
Sec. 434. Communication between State and local government
agencies and the Immigration and Naturalization
Service.
Sec. 435. Qualifying quarters.
Subtitle E--Conforming Amendments Relating to Assisted Housing
Sec. 441. Conforming amendments relating to assisted
housing.
Subtitle F--Earning Income Credit Denied to Unauthorized Employees
Sec. 451. Earned income credit denied to individuals not
authorized to be employed in the United States.
TITLE V--CHILD PROTECTION
Sec. 501. Authority of States to make foster care
maintenance payments on behalf of children in any
private child care institution.
Sec. 502. Extension of enhanced match for implementation of
statewide automated child welfare information systems.
Sec. 503. National random sample study of child welfare.
Sec. 504. Redesignation of section 1123.
Sec. 505. Kinship care.
TITLE VI--CHILD CARE
Sec. 601. Short title and references.
Sec. 602. Goals.
Sec. 603. Authorization of appropriations and entitlement authority.
Sec. 604. Lead agency.
Sec. 605. Application and plan.
Sec. 606. Limitation on State allotments.
Sec. 607. Activities to improve the quality of child care.
Sec. 608. Repeal of early childhood development and before- and after-
school care requirement.
Sec. 609. Administration and enforcement.
Sec. 610. Payments.
Sec. 611. Annual report and audits.
Sec. 612. Report by the Secretary.
Sec. 613. Allotments.
Sec. 614. Definitions.
Sec. 615. Effective date.
TITLE VII--CHILD NUTRITION PROGRAMS
Subtitle A--National School Lunch Act
Sec. 701. State disbursement to schools.
Sec. 702. Nutritional and other program requirements.
Sec. 703. Free and reduced price policy statement.
Sec. 704. Special assistance.
Sec. 705. Miscellaneous provisions and definitions.
Sec. 706. Summer food service program for children.
Sec. 707. Commodity distribution.
Sec. 708. Child and adult care food program.
Sec. 709. Pilot projects.
Sec. 710. Reduction of paperwork.
Sec. 711. Information on income eligibility.
Sec. 712. Nutrition guidance for child nutrition programs.
Subtitle B--Child Nutrition Act of 1966
Sec. 721. Special milk program.
Sec. 722. Free and reduced price policy statement.
Sec. 723. School breakfast program authorization.
Sec. 724. State administrative expenses.
Sec. 725. Regulations.
Sec. 726. Prohibitions.
Sec. 727. Miscellaneous provisions and definitions.
Sec. 728. Accounts and records.
Sec. 729. Special supplemental nutrition program for women, infants,
and children.
Sec. 730. Cash grants for nutrition education.
Sec. 731. Nutrition education and training.
Subtitle C--Miscellaneous Provisions
Sec. 741. Coordination of school lunch, school breakfast, and summer
food service programs.
Sec. 742. Requirements relating to provision of benefits based on
citizenship, alienage, or immigration status under the
National School Lunch Act, the Child Nutrition Act of
1966, and certain other acts.
TITLE VIII--FOOD STAMPS AND COMMODITY DISTRIBUTION
Subtitle A--Food Stamp Program
Sec. 801. Definition of certification period.
Sec. 802. Definition of coupon.
Sec. 803. Treatment of children living at home.
Sec. 804. Adjustment of thrifty food plan.
Sec. 805. Definition of homeless individual.
Sec. 806. State option for eligibility standards.
Sec. 807. Earnings of students.
Sec. 808. Energy assistance.
Sec. 809. Deductions from income.
Sec. 810. Vehicle allowance.
Sec. 811. Vendor payments for transitional housing counted as income.
Sec. 812. Simplified calculation of income for the self-employed.
Sec. 813. Doubled penalties for violating food stamp program
requirements.
Sec. 814. Disqualification of convicted individuals.
Sec. 815. Disqualification.
Sec. 816. Caretaker exemption.
Sec. 817. Employment and training.
Sec. 818. Food stamp eligibility.
Sec. 819. Comparable treatment for disqualification.
Sec. 820. Disqualification for receipt of multiple food stamp benefits.
Sec. 821. Disqualification of fleeing felons.
Sec. 822. Cooperation with child support agencies.
Sec. 823. Disqualification relating to child support arrears.
Sec. 824. Work requirement.
Sec. 825. Encouragement of electronic benefit transfer systems.
Sec. 826. Value of minimum allotment.
Sec. 827. Benefits on recertification.
Sec. 828. Optional combined allotment for expedited households.
Sec. 829. Failure to comply with other means-tested public assistance
programs.
Sec. 830. Allotments for households residing in centers.
Sec. 831. Condition precedent for approval of retail food stores and
wholesale food concerns.
Sec. 832. Authority to establish authorization periods.
Sec. 833. Information for verifying eligibility for authorization.
Sec. 834. Waiting period for stores that fail to meet authorization
criteria.
Sec. 835. Operation of food stamp offices.
Sec. 836. State employee and training standards.
Sec. 837. Exchange of law enforcement information.
Sec. 838. Expedited coupon service.
Sec. 839. Withdrawing fair hearing requests.
Sec. 840. Income, eligibility, and immigration status verification
systems.
Sec. 841. Investigations.
Sec. 842. Disqualification of retailers who intentionally submit
falsified applications.
Sec. 843. Disqualification of retailers who are disqualified under the
WIC program.
Sec. 844. Collection of overissuances.
Sec. 845. Authority to suspend stores violating program requirements
pending administrative and judicial review.
Sec. 846. Expanded criminal forfeiture for violations.
Sec. 847. Limitation on Federal match.
Sec. 848. Standards for administration.
Sec. 849. Work supplementation or support program.
Sec. 850. Waiver authority.
Sec. 851. Response to waivers.
Sec. 852. Employment initiatives program.
Sec. 853. Reauthorization.
Sec. 854. Simplified food stamp program.
Sec. 855. Study of the use of food stamps to purchase vitamins and
minerals.
Sec. 856. Deficit reduction.
Subtitle B--Commodity Distribution Programs
Sec. 871. Emergency food assistance program.
Sec. 872. Food bank demonstration project.
Sec. 873. Hunger prevention programs.
Sec. 874. Report on entitlement commodity processing.
Subtitle C--Electronic Benefit Transfer Systems
Sec. 891. Provisions to encourage electronic benefit transfer systems.
TITLE IX--MISCELLANEOUS
Sec. 901. Appropriation by State legislatures.
Sec. 902. Sanctioning for testing positive for controlled substances.
Sec. 903. Elimination of housing assistance with respect to fugitive
felons and probation and parole violators.
Sec. 904. Sense of the Senate regarding the inability of the
noncustodial parent to pay child support.
Sec. 905. Establishing national goals to prevent teenage pregnancies.
Sec. 906. Sense of the Senate regarding enforcement of statutory rape
laws.
Sec. 907. Provisions to encourage electronic benefit transfer systems.
Sec. 908. Reduction of block grants to States for social services; use
of vouchers.
Sec. 909. Rules relating to denial of earned income credit on basis of
disqualified income.
[[Page H8831]]
Sec. 910. Modification of adjusted gross income definition for earned
income credit.
Sec. 911. Fraud under means-tested welfare and public assistance
programs.
Sec. 912. Abstinence education.
Sec. 913. Change in reference.
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
SEC. 101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful society.
(2) Marriage is an essential institution of a successful
society which promotes the interests of children.
(3) Promotion of responsible fatherhood and motherhood is
integral to successful child rearing and the well-being of
children.
(4) In 1992, only 54 percent of single-parent families with
children had a child support order established and, of that
54 percent, only about one-half received the full amount due.
Of the cases enforced through the public child support
enforcement system, only 18 percent of the caseload has a
collection.
(5) The number of individuals receiving aid to families
with dependent children (in this section referred to as
``AFDC'') has more than tripled since 1965. More than two-
thirds of these recipients are children. Eighty-nine percent
of children receiving AFDC benefits now live in homes in
which no father is present.
(A)(i) The average monthly number of children receiving
AFDC benefits--
(I) was 3,300,000 in 1965;
(II) was 6,200,000 in 1970;
(III) was 7,400,000 in 1980; and
(IV) was 9,300,000 in 1992.
(ii) While the number of children receiving AFDC benefits
increased nearly threefold between 1965 and 1992, the total
number of children in the United States aged 0 to 18 has
declined by 5.5 percent.
(B) The Department of Health and Human Services has
estimated that 12,000,000 children will receive AFDC benefits
within 10 years.
(C) The increase in the number of children receiving public
assistance is closely related to the increase in births to
unmarried women. Between 1970 and 1991, the percentage of
live births to unmarried women increased nearly threefold,
from 10.7 percent to 29.5 percent.
(6) The increase of out-of-wedlock pregnancies and births
is well documented as follows:
(A) It is estimated that the rate of nonmarital teen
pregnancy rose 23 percent from 54 pregnancies per 1,000
unmarried teenagers in 1976 to 66.7 pregnancies in 1991. The
overall rate of nonmarital pregnancy rose 14 percent from
90.8 pregnancies per 1,000 unmarried women in 1980 to 103 in
both 1991 and 1992. In contrast, the overall pregnancy rate
for married couples decreased 7.3 percent between 1980 and
1991, from 126.9 pregnancies per 1,000 married women in 1980
to 117.6 pregnancies in 1991.
(B) The total of all out-of-wedlock births between 1970 and
1991 has risen from 10.7 percent to 29.5 percent and if the
current trend continues, 50 percent of all births by the year
2015 will be out-of-wedlock.
(7) An effective strategy to combat teenage pregnancy must
address the issue of male responsibility, including statutory
rape culpability and prevention. The increase of teenage
pregnancies among the youngest girls is particularly severe
and is linked to predatory sexual practices by men who are
significantly older.
(A) It is estimated that in the late 1980's, the rate for
girls age 14 and under giving birth increased 26 percent.
(B) Data indicates that at least half of the children born
to teenage mothers are fathered by adult men. Available data
suggests that almost 70 percent of births to teenage girls
are fathered by men over age 20.
(C) Surveys of teen mothers have revealed that a majority
of such mothers have histories of sexual and physical abuse,
primarily with older adult men.
(8) The negative consequences of an out-of-wedlock birth on
the mother, the child, the family, and society are well
documented as follows:
(A) Young women 17 and under who give birth outside of
marriage are more likely to go on public assistance and to
spend more years on welfare once enrolled. These combined
effects of ``younger and longer'' increase total AFDC costs
per household by 25 percent to 30 percent for 17-year-olds.
(B) Children born out-of-wedlock have a substantially
higher risk of being born at a very low or moderately low
birth weight.
(C) Children born out-of-wedlock are more likely to
experience low verbal cognitive attainment, as well as more
child abuse, and neglect.
(D) Children born out-of-wedlock were more likely to have
lower cognitive scores, lower educational aspirations, and a
greater likelihood of becoming teenage parents themselves.
(E) Being born out-of-wedlock significantly reduces the
chances of the child growing up to have an intact marriage.
(F) Children born out-of-wedlock are 3 times more likely to
be on welfare when they grow up.
(9) Currently 35 percent of children in single-parent homes
were born out-of-wedlock, nearly the same percentage as that
of children in single-parent homes whose parents are divorced
(37 percent). While many parents find themselves, through
divorce or tragic circumstances beyond their control, facing
the difficult task of raising children alone, nevertheless,
the negative consequences of raising children in single-
parent homes are well documented as follows:
(A) Only 9 percent of married-couple families with children
under 18 years of age have income below the national poverty
level. In contrast, 46 percent of female-headed households
with children under 18 years of age are below the national
poverty level.
(B) Among single-parent families, nearly 1/2 of the
mothers who never married received AFDC while only 1/5 of
divorced mothers received AFDC.
(C) Children born into families receiving welfare
assistance are 3 times more likely to be on welfare when they
reach adulthood than children not born into families
receiving welfare.
(D) Mothers under 20 years of age are at the greatest risk
of bearing low-birth-weight babies.
(E) The younger the single parent mother, the less likely
she is to finish high school.
(F) Young women who have children before finishing high
school are more likely to receive welfare assistance for a
longer period of time.
(G) Between 1985 and 1990, the public cost of births to
teenage mothers under the aid to families with dependent
children program, the food stamp program, and the medicaid
program has been estimated at $120,000,000,000.
(H) The absence of a father in the life of a child has a
negative effect on school performance and peer adjustment.
(I) Children of teenage single parents have lower cognitive
scores, lower educational aspirations, and a greater
likelihood of becoming teenage parents themselves.
(J) Children of single-parent homes are 3 times more likely
to fail and repeat a year in grade school than are children
from intact 2-parent families.
(K) Children from single-parent homes are almost 4 times
more likely to be expelled or suspended from school.
(L) Neighborhoods with larger percentages of youth aged 12
through 20 and areas with higher percentages of single-parent
households have higher rates of violent crime.
(M) Of those youth held for criminal offenses within the
State juvenile justice system, only 29.8 percent lived
primarily in a home with both parents. In contrast to these
incarcerated youth, 73.9 percent of the 62,800,000 children
in the Nation's resident population were living with both
parents.
(10) Therefore, in light of this demonstration of the
crisis in our Nation, it is the sense of the Congress that
prevention of out-of-wedlock pregnancy and reduction in out-
of-wedlock birth are very important Government interests and
the policy contained in part A of title IV of the Social
Security Act (as amended by section 103(a) of this Act) is
intended to address the crisis.
SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this
title an amendment is expressed in terms of an amendment to
or repeal of a section or other provision, the reference
shall be considered to be made to that section or other
provision of the Social Security Act.
SEC. 103. BLOCK GRANTS TO STATES.
(a) In General.--Part A of title IV (42 U.S.C. 601 et seq.)
is amended--
(1) by striking all that precedes section 418 (as added by
section 603(b)(2) of this Act) and inserting the following:
``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
``SEC. 401. PURPOSE.
``(a) In General.--The purpose of this part is to increase
the flexibility of States in operating a program designed
to--
``(1) provide assistance to needy families so that children
may be cared for in their own homes or in the homes of
relatives;
``(2) end the dependence of needy parents on government
benefits by promoting job preparation, work, and marriage;
``(3) prevent and reduce the incidence of out-of-wedlock
pregnancies and establish annual numerical goals for
preventing and reducing the incidence of these pregnancies;
and
``(4) encourage the formation and maintenance of two-parent
families.
``(b) No Individual Entitlement.--This part shall not be
interpreted to entitle any individual or family to assistance
under any State program funded under this part.
``SEC. 402. ELIGIBLE STATES; STATE PLAN.
``(a) In General.--As used in this part, the term `eligible
State' means, with respect to a fiscal year, a State that,
during the 2-year period immediately preceding the fiscal
year, has submitted to the Secretary a plan that the
Secretary has found includes the following:
``(1) Outline of family assistance program.--
``(A) General provisions.--A written document that outlines
how the State intends to do the following:
``(i) Conduct a program, designed to serve all political
subdivisions in the State (not necessarily in a uniform
manner), that provides assistance to needy families with (or
expecting) children and provides parents with job
preparation, work, and support services to enable them to
leave the program and become self-sufficient.
``(ii) Require a parent or caretaker receiving assistance
under the program to engage
[[Page H8832]]
in work (as defined by the State) once the State determines
the parent or caretaker is ready to engage in work, or once
the parent or caretaker has received assistance under the
program for 24 months (whether or not consecutive), whichever
is earlier.
``(iii) Ensure that parents and caretakers receiving
assistance under the program engage in work activities in
accordance with section 407.
``(iv) Take such reasonable steps as the State deems
necessary to restrict the use and disclosure of information
about individuals and families receiving assistance under the
program attributable to funds provided by the Federal
Government.
``(v) Establish goals and take action to prevent and reduce
the incidence of out-of-wedlock pregnancies, with special
emphasis on teenage pregnancies, and establish numerical
goals for reducing the illegitimacy ratio of the State (as
defined in section 403(a)(2)(B)) for calendar years 1996
through 2005.
``(vi) Conduct a program, designed to reach State and local
law enforcement officials, the education system, and relevant
counseling services, that provides education and training on
the problem of statutory rape so that teenage pregnancy
prevention programs may be expanded in scope to include men.
``(B) Special provisions.--
``(i) The document shall indicate whether the State intends
to treat families moving into the State from another State
differently than other families under the program, and if so,
how the State intends to treat such families under the
program.
``(ii) The document shall indicate whether the State
intends to provide assistance under the program to
individuals who are not citizens of the United States, and if
so, shall include an overview of such assistance.
``(iii) The document shall set forth objective criteria for
the delivery of benefits and the determination of eligibility
and for fair and equitable treatment, including an
explanation of how the State will provide opportunities for
recipients who have been adversely affected to be heard in a
State administrative or appeal process.
``(iv) Not later than 1 year after the date of enactment of
this Act, unless the chief executive officer of the State
opts out of this provision by notifying the Secretary, a
State shall, consistent with the exception provided in
section 407(e)(2), require a parent or caretaker receiving
assistance under the program who, after receiving such
assistance for 2 months is not exempt from work requirements
and is not engaged in work, as determined under section
407(c), to participate in community service employment, with
minimum hours per week and tasks to be determined by the
State.
``(2) Certification that the state will operate a child
support enforcement program.--A certification by the chief
executive officer of the State that, during the fiscal year,
the State will operate a child support enforcement program
under the State plan approved under part D.
``(3) Certification that the state will operate a foster
care and adoption assistance program.--A certification by the
chief executive officer of the State that, during the fiscal
year, the State will operate a foster care and adoption
assistance program under the State plan approved under part
E, and that the State will take such actions as are necessary
to ensure that children receiving assistance under such part
are eligible for medical assistance under the State plan
under title XIX.
``(4) Certification of the administration of the program.--
A certification by the chief executive officer of the State
specifying which State agency or agencies will administer and
supervise the program referred to in paragraph (1) for the
fiscal year, which shall include assurances that local
governments and private sector organizations--
``(A) have been consulted regarding the plan and design of
welfare services in the State so that services are provided
in a manner appropriate to local populations; and
``(B) have had at least 45 days to submit comments on the
plan and the design of such services.
``(5) Certification that the state will provide indians
with equitable access to assistance.--A certification by the
chief executive officer of the State that, during the fiscal
year, the State will provide each member of an Indian tribe,
who is domiciled in the State and is not eligible for
assistance under a tribal family assistance plan approved
under section 412, with equitable access to assistance under
the State program funded under this part attributable to
funds provided by the Federal Government.
``(6) Certification of standards and procedures to ensure
against program fraud and abuse.--A certification by the
chief executive officer of the State that the State has
established and is enforcing standards and procedures to
ensure against program fraud and abuse, including standards
and procedures concerning nepotism, conflicts of interest
among individuals responsible for the administration and
supervision of the State program, kickbacks, and the use of
political patronage.
``(7) Optional certification of standards and procedures to
ensure that the state will screen for and identify domestic
violence.--
``(A) In general.--At the option of the State, a
certification by the chief executive officer of the State
that the State has established and is enforcing standards and
procedures to--
``(i) screen and identify individuals receiving assistance
under this part with a history of domestic violence while
maintaining the confidentiality of such individuals;
``(ii) refer such individuals to counseling and supportive
services; and
``(iii) waive, pursuant to a determination of good cause,
other program requirements such as time limits (for so long
as necessary) for individuals receiving assistance, residency
requirements, child support cooperation requirements, and
family cap provisions, in cases where compliance with such
requirements would make it more difficult for individuals
receiving assistance under this part to escape domestic
violence or unfairly penalize such individuals who are or
have been victimized by such violence, or individuals who are
at risk of further domestic violence.
``(B) Domestic violence defined.--For purposes of this
paragraph, the term `domestic violence' has the same meaning
as the term `battered or subjected to extreme cruelty', as
defined in section 408(a)(7)(C)(iii).
``(b) Public Availability of State Plan Summary.--The State
shall make available to the public a summary of any plan
submitted by the State under this section.
``SEC. 403. GRANTS TO STATES.
``(a) Grants.--
``(1) Family assistance grant.--
``(A) In general.--Each eligible State shall be entitled to
receive from the Secretary, for each of fiscal years 1996,
1997, 1998, 1999, 2000, 2001, and 2002, a grant in an amount
equal to the State family assistance grant.
``(B) State family assistance grant defined.--As used in
this part, the term `State family assistance grant' means the
greatest of--
``(i) 1/3 of the total amount required to be paid to the
State under former section 403 (as in effect on September 30,
1995) for fiscal years 1992, 1993, and 1994 (other than with
respect to amounts expended by the State for child care under
subsection (g) or (i) of former section 402 (as so in
effect));
``(ii)(I) the total amount required to be paid to the State
under former section 403 for fiscal year 1994 (other than
with respect to amounts expended by the State for child care
under subsection (g) or (i) of former section 402 (as so in
effect)); plus
``(II) an amount equal to 85 percent of the amount (if any)
by which the total amount required to be paid to the State
under former section 403(a)(5) for emergency assistance for
fiscal year 1995 exceeds the total amount required to be paid
to the State under former section 403(a)(5) for fiscal year
1994, if, during fiscal year 1994 or 1995, the Secretary
approved under former section 402 an amendment to the former
State plan with respect to the provision of emergency
assistance; or
``(iii) 4/3 of the total amount required to be paid to
the State under former section 403 (as in effect on September
30, 1995) for the 1st 3 quarters of fiscal year 1995 (other
than with respect to amounts expended by the State under the
State plan approved under part F (as so in effect) or for
child care under subsection (g) or (i) of former section 402
(as so in effect)), plus the total amount required to be paid
to the State for fiscal year 1995 under former section 403(l)
(as so in effect).
``(C) Total amount required to be paid to the state under
former section 403 defined.--As used in this part, the term
`total amount required to be paid to the State under former
section 403' means, with respect to a fiscal year--
``(i) in the case of a State to which section 1108 does not
apply, the sum of--
``(I) the Federal share of maintenance assistance
expenditures for the fiscal year, before reduction pursuant
to subparagraph (B) or (C) of section 403(b)(2) (as in effect
on September 30, 1995), as reported by the State on ACF Form
231;
``(II) the Federal share of administrative expenditures
(including administrative expenditures for the development of
management information systems) for the fiscal year, as
reported by the State on ACF Form 231;
``(III) the Federal share of emergency assistance
expenditures for the fiscal year, as reported by the State on
ACF Form 231;
``(IV) the Federal share of expenditures for the fiscal
year with respect to child care pursuant to subsections (g)
and (i) of former section 402 (as in effect on September 30,
1995), as reported by the State on ACF Form 231; and
``(V) the Federal obligations made to the State under
section 403 for the fiscal year with respect to the State
program operated under part F (as in effect on September 30,
1995), as determined by the Secretary, including additional
obligations or reductions in obligations made after the close
of the fiscal year; and
``(ii) in the case of a State to which section 1108
applies, the lesser of--
``(I) the sum described in clause (i); or
``(II) the total amount certified by the Secretary under
former section 403 (as in effect during the fiscal year) with
respect to the territory.
``(D) Information to be used in determining amounts.--
``(i) For fiscal years 1992 and 1993.--
``(I) In determining the amounts described in subclauses
(I) through (IV) of subparagraph (C)(i) for any State for
each of fiscal years 1992 and 1993, the Secretary shall use
information available as of April 28, 1995.
``(II) In determining the amount described in subparagraph
(C)(i)(V) for any State for
[[Page H8833]]
each of fiscal years 1992 and 1993, the Secretary shall use
information available as of January 6, 1995.
``(ii) For fiscal year 1994.--In determining the amounts
described in subparagraph (C)(i) for any State for fiscal
year 1994, the Secretary shall use information available as
of April 28, 1995.
``(iii) For fiscal year 1995.--
``(I) In determining the amount described in subparagraph
(B)(ii)(II) for any State for fiscal year 1995, the Secretary
shall use the information which was reported by the States
and estimates made by the States with respect to emergency
assistance expenditures and was available as of August 11,
1995.
``(II) In determining the amounts described in subclauses
(I) through (III) of subparagraph (C)(i) for any State for
fiscal year 1995, the Secretary shall use information
available as of October 2, 1995.
``(III) In determining the amount described in subparagraph
(C)(i)(IV) for any State for fiscal year 1995, the Secretary
shall use information available as of February 28, 1996.
``(IV) In determining the amount described in subparagraph
(C)(i)(V) for any State for fiscal year 1995, the Secretary
shall use information available as of October 5, 1995.
``(E) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1996, 1997, 1998, 1999, 2000,
2001, and 2002 such sums as are necessary for grants under
this paragraph.
``(2) Bonus to reward decrease in illegitimacy.--
``(A) In general.--Each eligible State shall be entitled to
receive from the Secretary a grant for each bonus year for
which the State demonstrates a net decrease in out-of-wedlock
births.
``(B) Amount of grant.--
``(i) If 5 eligible states.--If there are 5 eligible States
for a bonus year, the amount of the grant shall be
$20,000,000.
``(ii) If fewer than 5 eligible states.--If there are fewer
than 5 eligible States for a bonus year, the amount of the
grant shall be $25,000,000.
``(C) Definitions.--As used in this paragraph:
``(i) Eligible state.--
``(I) In general.--The term `eligible State' means a State
that the Secretary determines meets the following
requirements:
``(aa) The State demonstrates that the number of out-of-
wedlock births that occurred in the State during the most
recent 2-year period for which such information is available
decreased as compared to the number of such births that
occurred during the previous 2-year period, and the magnitude
of the decrease for the State for the period is not exceeded
by the magnitude of the corresponding decrease for 5 or more
other States for the period.
``(bb) The rate of induced pregnancy terminations in the
State for the fiscal year is less than the rate of induced
pregnancy terminations in the State for fiscal year 1995.
``(II) Disregard of changes in data due to changed
reporting methods.--In making the determination required by
subclause (I), the Secretary shall disregard--
``(aa) any difference between the number of out-of-wedlock
births that occurred in a State for a fiscal year and the
number of out-of-wedlock births that occurred in a State for
fiscal year 1995 which is attributable to a change in State
methods of reporting data used to calculate the number of
out-of-wedlock births; and
``(bb) any difference between the rate of induced pregnancy
terminations in a State for a fiscal year and such rate for
fiscal year 1995 which is attributable to a change in State
methods of reporting data used to calculate such rate.
``(ii) Bonus year.--The term `bonus year' means fiscal
years 1999, 2000, 2001, and 2002.
``(D) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1999 through 2002, such sums as
are necessary for grants under this paragraph.
``(3) Supplemental grant for population increases in
certain states.--
``(A) In general.--Each qualifying State shall, subject to
subparagraph (F), be entitled to receive from the Secretary--
``(i) for fiscal year 1998 a grant in an amount equal to
2.5 percent of the total amount required to be paid to the
State under former section 403 (as in effect during fiscal
year 1994) for fiscal year 1994; and
``(ii) for each of fiscal years 1999, 2000, and 2001, a
grant in an amount equal to the sum of--
``(I) the amount (if any) required to be paid to the State
under this paragraph for the immediately preceding fiscal
year; and
``(II) 2.5 percent of the sum of--
``(aa) the total amount required to be paid to the State
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994; and
``(bb) the amount (if any) required to be paid to the State
under this paragraph for the fiscal year preceding the fiscal
year for which the grant is to be made.
``(B) Preservation of grant without increases for states
failing to remain qualifying states.--Each State that is not
a qualifying State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State for a prior
fiscal year shall, subject to subparagraph (F), be entitled
to receive from the Secretary for the specified fiscal year,
a grant in an amount equal to the amount required to be paid
to the State under this paragraph for the most recent fiscal
year for which the State was a qualifying State.
``(C) Qualifying state.--
``(i) In general.--For purposes of this paragraph, a State
is a qualifying State for a fiscal year if--
``(I) the level of welfare spending per poor person by the
State for the immediately preceding fiscal year is less than
the national average level of State welfare spending per poor
person for such preceding fiscal year; and
``(II) the population growth rate of the State (as
determined by the Bureau of the Census) for the most recent
fiscal year for which information is available exceeds the
average population growth rate for all States (as so
determined) for such most recent fiscal year.
``(ii) State must qualify in fiscal year 1997.--
Notwithstanding clause (i), a State shall not be a qualifying
State for any fiscal year after 1998 by reason of clause (i)
if the State is not a qualifying State for fiscal year 1998
by reason of clause (i).
``(iii) Certain states deemed qualifying states.--For
purposes of this paragraph, a State is deemed to be a
qualifying State for fiscal years 1998, 1999, 2000, and 2001
if--
``(I) the level of welfare spending per poor person by the
State for fiscal year 1994 is less than 35 percent of the
national average level of State welfare spending per poor
person for fiscal year 1994; or
``(II) the population of the State increased by more than
10 percent from April 1, 1990 to July 1, 1994, according to
the population estimates in publication CB94-204 of the
Bureau of the Census.
``(D) Definitions.--As used in this paragraph:
``(i) Level of welfare spending per poor person.--The term
`level of State welfare spending per poor person' means, with
respect to a State and a fiscal year--
``(I) the sum of--
``(aa) the total amount required to be paid to the State
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994; and
``(bb) the amount (if any) paid to the State under this
paragraph for the immediately preceding fiscal year; divided
by
``(II) the number of individuals, according to the 1990
decennial census, who were residents of the State and whose
income was below the poverty line.
``(ii) National average level of state welfare spending per
poor person.--The term `national average level of State
welfare spending per poor person' means, with respect to a
fiscal year, an amount equal to--
``(I) the total amount required to be paid to the States
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994; divided by
``(II) the number of individuals, according to the 1990
decennial census, who were residents of any State and whose
income was below the poverty line.
``(iii) State.--The term `State' means each of the 50
States of the United States and the District of Columbia.
``(E) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1998, 1999, 2000, and 2001 such
sums as are necessary for grants under this paragraph, in a
total amount not to exceed $800,000,000.
``(F) Grants reduced pro rata if insufficient
appropriations.--If the amount appropriated pursuant to this
paragraph for a fiscal year is less than the total amount of
payments otherwise required to be made under this paragraph
for the fiscal year, then the amount otherwise payable to any
State for the fiscal year under this paragraph shall be
reduced by a percentage equal to the amount so appropriated
divided by such total amount.
``(G) Budget scoring.--Notwithstanding section 257(b)(2) of
the Balanced Budget and Emergency Deficit Control Act of
1985, the baseline shall assume that no grant shall be made
under this paragraph after fiscal year 2001.
``(4) Bonus to reward high performance states.--
``(A) In general.--The Secretary shall make a grant
pursuant to this paragraph to each State for each bonus year
for which the State is a high performing State.
``(B) Amount of grant.--
``(i) In general.--Subject to clause (ii) of this
subparagraph, the Secretary shall determine the amount of the
grant payable under this paragraph to a high performing State
for a bonus year, which shall be based on the score assigned
to the State under subparagraph (D)(i) for the fiscal year
that immediately precedes the bonus year.
``(ii) Limitation.--The amount payable to a State under
this paragraph for a bonus year shall not exceed 5 percent of
the State family assistance grant.
``(C) Formula for measuring state performance.--Not later
than 1 year after the date of the enactment of the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996, the Secretary, in consultation with the National
Governors' Association and the American Public Welfare
Association, shall develop a formula for measuring State
performance in operating the State program funded under this
part so as to achieve the goals set forth in section 401(a).
``(D) Scoring of state performance; setting of performance
thresholds.--For each bonus year, the Secretary shall--
[[Page H8834]]
``(i) use the formula developed under subparagraph (C) to
assign a score to each eligible State for the fiscal year
that immediately precedes the bonus year; and
``(ii) prescribe a performance threshold in such a manner
so as to ensure that--
``(I) the average annual total amount of grants to be made
under this paragraph for each bonus year equals $200,000,000;
and
``(II) the total amount of grants to be made under this
paragraph for all bonus years equals $1,000,000,000.
``(E) Definitions.--As used in this paragraph:
``(i) Bonus year.--The term `bonus year' means fiscal years
1999, 2000, 2001, 2002, and 2003.
``(ii) High performing state.--The term `high performing
State' means, with respect a bonus year, an eligible State
whose score assigned pursuant to subparagraph (D)(i) for the
fiscal year immediately preceding the bonus year equals or
exceeds the performance threshold prescribed under
subparagraph (D)(ii) for such preceding fiscal year.
``(F) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1999 through 2003
$1,000,000,000 for grants under this paragraph.
``(b) Contingency Fund.--
``(1) Establishment.--There is hereby established in the
Treasury of the United States a fund which shall be known as
the `Contingency Fund for State Welfare Programs' (in this
section referred to as the `Fund').
``(2) Deposits into fund.--Out of any money in the Treasury
of the United States not otherwise appropriated, there are
appropriated for fiscal years 1997, 1998, 1999, 2000, and
2001 such sums as are necessary for payment to the Fund in a
total amount not to exceed $2,000,000,000.
``(3) Grants.--
``(A) Provisional payments.--If an eligible State submits
to the Secretary a request for funds under this paragraph
during an eligible month, the Secretary shall, subject to
this paragraph, pay to the State, from amounts appropriated
pursuant to paragraph (2), an amount equal to the amount of
funds so requested.
``(B) Payment priority.--The Secretary shall make payments
under subparagraph (A) in the order in which the Secretary
receives requests for such payments.
``(C) Limitations.--
``(i) Monthly payment to a state.--The total amount paid to
a single State under subparagraph (A) during a month shall
not exceed 1/12 of 20 percent of the State family
assistance grant.
``(ii) Payments to all states.--The total amount paid to
all States under subparagraph (A) during fiscal years 1997
through 2001 shall not exceed the total amount appropriated
pursuant to paragraph (2).
``(4) Annual reconciliation.--Notwithstanding paragraph
(3), at the end of each fiscal year, each State shall remit
to the Secretary an amount equal to the amount (if any) by
which the total amount paid to the State under paragraph (3)
during the fiscal year exceeds--
``(A) the Federal medical assistance percentage for the
State for the fiscal year (as defined in section 1905(b), as
in effect on September 30, 1995) of the amount (if any) by
which--
``(i) if the Secretary makes a payment to the State under
section 418(a)(2) in the fiscal year--
``(I) the expenditures under the State program funded under
this part for the fiscal year, excluding any amounts made
available by the Federal Government (except amounts paid to
the State under paragraph (3) during the fiscal year that
have been expended by the State) and any amounts expended by
the State during the fiscal year for child care; exceeds
``(II) historic State expenditures (as defined in section
409(a)(7)(B)(iii)), excluding the expenditures by the State
for child care under subsection (g) or (i) of section 402 (as
in effect during fiscal year 1994) for fiscal year 1994 minus
any Federal payment with respect to such child care
expenditures; or
``(ii) if the Secretary does not make a payment to the
State under section 418(a)(2) in the fiscal year--
``(I) the expenditures under the State program funded under
this part for the fiscal year (excluding any amounts made
available by the Federal Government, except amounts paid to
the State under paragraph (3) during the fiscal year that
have been expended by the State); exceeds
``(II) historic State expenditures (as defined in section
409(a)(7)(B)(iii)); multiplied by
``(B) 1/12 times the number of months during the fiscal
year for which the Secretary makes a payment to the State
under this subsection.
``(5) Eligible month.--As used in paragraph (3)(A), the
term `eligible month' means, with respect to a State, a month
in the 2-month period that begins with any month for which
the State is a needy State.
``(6) Needy state.--For purposes of paragraph (5), a State
is a needy State for a month if--
``(A) the average rate of--
``(i) total unemployment in such State (seasonally
adjusted) for the period consisting of the most recent 3
months for which data for all States are published equals or
exceeds 6.5 percent; and
``(ii) total unemployment in such State (seasonally
adjusted) for the 3-month period equals or exceeds 110
percent of such average rate for either (or both) of the
corresponding 3-month periods ending in the 2 preceding
calendar years; or
``(B) as determined by the Secretary of Agriculture (in the
discretion of the Secretary of Agriculture), the monthly
average number of individuals (as of the last day of each
month) participating in the food stamp program in the State
in the then most recently concluded 3-month period for which
data are available exceeds by not less than 10 percent the
lesser of--
``(i) the monthly average number of individuals (as of the
last day of each month) in the State that would have
participated in the food stamp program in the corresponding
3-month period in fiscal year 1994 if the amendments made by
titles IV and VIII of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 had been in effect
throughout fiscal year 1994; or
``(ii) the monthly average number of individuals (as of the
last day of each month) in the State that would have
participated in the food stamp program in the corresponding
3-month period in fiscal year 1995 if the amendments made by
titles IV and VIII of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 had been in effect
throughout fiscal year 1995.
``(7) Other terms defined.--As used in this subsection:
``(A) State.--The term `State' means each of the 50 States
of the United States and the District of Columbia.
``(B) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(8) Annual reports.--The Secretary shall annually report
to the Congress on the status of the Fund.
``SEC. 404. USE OF GRANTS.
``(a) General Rules.--Subject to this part, a State to
which a grant is made under section 403 may use the grant--
``(1) in any manner that is reasonably calculated to
accomplish the purpose of this part, including to provide low
income households with assistance in meeting home heating and
cooling costs; or
``(2) in any manner that the State was authorized to use
amounts received under part A or F, as such parts were in
effect on September 30, 1995.
``(b) Limitation on Use of Grant for Administrative
Purposes.--
``(1) Limitation.--A State to which a grant is made under
section 403 shall not expend more than 15 percent of the
grant for administrative purposes.
``(2) Exception.--Paragraph (1) shall not apply to the use
of a grant for information technology and computerization
needed for tracking or monitoring required by or under this
part.
``(c) Authority to Treat Interstate Immigrants Under Rules
of Former State.--A State operating a program funded under
this part may apply to a family the rules (including benefit
amounts) of the program funded under this part of another
State if the family has moved to the State from the other
State and has resided in the State for less than 12 months.
``(d) Authority to Use Portion of Grant for Other
Purposes.--
``(1) In general.--A State may use not more than 30 percent
of the amount of any grant made to the State under section
403(a) for a fiscal year to carry out a State program
pursuant to any or all of the following provisions of law:
``(A) Title XX of this Act.
``(B) The Child Care and Development Block Grant Act of
1990.
``(2) Limitation on amount transferable to title xx
programs.--Notwithstanding paragraph (1), not more than 1/3
of the total amount paid to a State under this part for a
fiscal year that is used to carry out State programs pursuant
to provisions of law specified in paragraph (1) may be used
to carry out State programs pursuant to title XX.
``(3) Applicable rules.--
``(A) In general.--Except as provided in subparagraph (B)
of this paragraph, any amount paid to a State under this part
that is used to carry out a State program pursuant to a
provision of law specified in paragraph (1) shall not be
subject to the requirements of this part, but shall be
subject to the requirements that apply to Federal funds
provided directly under the provision of law to carry out the
program, and the expenditure of any amount so used shall not
be considered to be an expenditure under this part.
``(B) Exception relating to title xx programs.--All amounts
paid to a State under this part that are used to carry out
State programs pursuant to title XX shall be used only for
programs and services to children or their families whose
income is less than 200 percent of the income official
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section
673(2) of the Omnibus Budget Reconciliation Act of 1981)
applicable to a family of the size involved.
``(e) Authority to Reserve Certain Amounts for
Assistance.--A State may reserve amounts paid to the State
under this part for any fiscal year for the purpose of
providing, without fiscal year limitation, assistance under
the State program funded under this part.
``(f) Authority to Operate Employment Placement Program.--A
State to which a grant is made under section 403 may use the
grant to make payments (or provide job
[[Page H8835]]
placement vouchers) to State-approved public and private job
placement agencies that provide employment placement services
to individuals who receive assistance under the State program
funded under this part.
``(g) Implementation of Electronic Benefit Transfer
System.--A State to which a grant is made under section 403
is encouraged to implement an electronic benefit transfer
system for providing assistance under the State program
funded under this part, and may use the grant for such
purpose.
``(h) Use of Funds for Individual Development Accounts.--
``(1) In general.--A State to which a grant is made under
section 403 may use the grant to carry out a program to fund
individual development accounts (as defined in paragraph (2))
established by individuals eligible for assistance under the
State program funded under this part.