Text: H.R.4414 — 103rd Congress (1993-1994)All Information (Except Text)

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Introduced in House (05/12/1994)

 
[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[H.R. 4414 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4414

  To reconnect welfare families to the world of work, make work pay, 
strengthen families, require personal responsibility, and support State 
                              flexibility.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 1994

Mr. McCurdy (for himself, Mr. Wheat, Mr. Clement, Mr. Darden, Mr. Deal, 
 Ms. Long, Mr. Swett, Mr. Tanner, Mr. Johnson of Georgia, Ms. Lambert, 
Mr. Payne of Virginia, Mr. Barlow, Mr. Skelton, Mr. Gordon, Mr. Minge, 
    Mr. Lipinski, Mr. Orton, Mr. Brewster, Mr. Mann, Mr. Klink, Mr. 
  Peterson of Minnesota, Mr. Laughlin, Mr. Rowland, Mr. Pete Geren of 
    Texas, Ms. Kaptur, Mr. Montgomery, Mr. Hayes, and Mr. Taylor of 
Mississippi) introduced the following bill; which was referred jointly 
to the Committees on Ways and Means, Agriculture, Energy and Commerce, 
                 Education and Labor, and the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To reconnect welfare families to the world of work, make work pay, 
strengthen families, require personal responsibility, and support State 
                              flexibility.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Independence for Families Act of 
1994''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
             TITLE I--TIME-LIMITED TRANSITIONAL ASSISTANCE

Sec. 101. Limitation on duration of AFDC benefits.
Sec. 102. Job search requirement.
Sec. 103. Transitional child care benefits for persons who exhaust 
                            AFDC.
Sec. 104. Establishment of Federal data base.
                        TITLE II--MAKE WORK PAY

                        Subtitle A--Health Care

Sec. 201. Transitional medicaid benefits.
                  Subtitle B--Earned Income Tax Credit

Sec. 211. Notice of availability required to be provided to applicants 
                            and former recipients of AFDC, food stamps, 
                            and medicaid.
Sec. 212. Notice of availability of earned income tax credit and 
                            dependent care tax credit to be included on 
                            W-4 form.
                         Subtitle C--Child Care

Sec. 221. Dependent care credit to be refundable; high-income taxpayers 
                            ineligible for credit.
Sec. 222. Increased Federal matching rate for child care costs of the 
                            50 States and the District of Columbia.
Sec. 223. Maintenance of effort.
Sec. 224. Notice of eligibility for transitional child care benefits 
                            required to be provided to applicants for, 
                            and upon termination of, AFDC.
Sec. 225. Extension of eligibility for transitional child care 
                            benefits.
Sec. 226. Increased funding for at-risk child care.
Sec. 227. Authority to use certain child care funds for training.
Sec. 228. Transitional child care for 2-parent families.
Sec. 229. Sense of the Congress regarding the Child Care Development 
                            and Block Grant Act.
Sec. 230. Use of child care funds to create child care jobs for welfare 
                            recipients.
Sec. 230A. Sense of the Congress regarding child care vouchers.
                    Subtitle D--AFDC Work Disregards

Sec. 231. Option to increase disregard of earned income.
Sec. 232. State option to establish voluntary diversion program.
Sec. 233. Elimination of quarters of coverage requirement for married 
                            teens under AFDC-UP program.
                   Subtitle E--AFDC Asset Limitations

Sec. 241. Increase in resource thresholds; separate threshold for 
                            vehicles.
Sec. 242. Limited disregard of amounts saved for postsecondary 
                            education, the purchase of a first car or a 
                            first home, or the establishment or 
                            operation of a microenterprise.
Sec. 243. Treatment of microenterprises.
                   TITLE III--THE WORK FIRST PROGRAM

                            Subtitle A--AFDC

Sec. 301. Work first program.
Sec. 302. Regulations.
Sec. 303. Applicability to States.
                  Subtitle B--Targeted Jobs Tax Credit

Sec. 311. Increase in minimum period of employment required to receive 
                            credit.
 TITLE IV--FAMILY RESPONSIBILITY AND IMPROVED CHILD SUPPORT ENFORCEMENT

Subtitle A--Enhancement of Ability to Identify and Locate Noncustodial 
                                Parents

Sec. 401. Expansion of functions of Federal parent locator service.
Sec. 402. Expansion of data bases accessed by parent locator systems.
Sec. 403. National parent locator network.
Sec. 404. Private access to locate and enforcement services.
                  Subtitle B--Paternity Establishment

Sec. 411. Sense of the Congress.
Sec. 412. Availability of parenting social services for new fathers.
Sec. 413. AFDC benefits conditioned on cooperation in identifying 
                            noncustodial parent.
Sec. 414. Increase in pass-through of collected child support to AFDC 
                            recipients.
  Subtitle C--Improvement of Child Support Order Establishment Process

Sec. 421. National Child Support Guidelines Commission.
                 Subtitle D--Child Support Enforcement

Sec. 431. National reporting of new hires and child support 
                            information.
Sec. 432. Certain benefits subject to garnishment.
Sec. 433. Seizure of lottery winnings, settlements, payouts, awards, 
                            and bequests, and sale of forfeited 
                            property, to pay child support arrearages.
Sec. 434. Reporting of child support arrearages to credit bureaus.
Sec. 435. Liability of grandparents for financial support of children 
                            of their minor children.
Sec. 436. Sense of the Congress regarding programs for noncustodial 
                            parents unable to meet child support 
                            obligations.
              TITLE V--TEEN PREGNANCY AND FAMILY STABILITY

                        Subtitle A--Federal Role

Sec. 501. State option not to deny AFDC for additional children.
Sec. 502. Minors receiving AFDC required to live under responsible 
                            adult supervision.
Sec. 503. Task force to reduce teenage pregnancy.
Sec. 504. Incentive for teen parents to attend school.
Sec. 505. State option to disregard 100-hour rule under AFDC-UP 
                            program.
Sec. 506. State option to disregard 6-month limitation on AFDC-UP 
                            benefits.
Sec. 507. Elimination of quarters of coverage requirement under AFDC-UP 
                            program for families in which both parents 
                            are teens.
                         Subtitle B--State Role

Sec. 511. Teenage pregnancy prevention and family stability.
Sec. 512. Availability of family planning services.
                    TITLE VI--PROGRAM SIMPLIFICATION

                Subtitle A--Increased State Flexibility

Sec. 601. State option to provide AFDC through electronic benefit 
                            transfer systems.
Sec. 602. Deadline for action on application for waiver of requirement 
                            applicable to program of aid to families 
                            with dependent children.
        Subtitle B--Coordination of AFDC and Food Stamp Programs

Sec. 611. Amendments to part A of title IV of the Social Security Act.
Sec. 612. Amendments to the Food Stamp Act of 1977.
                      Subtitle C--Fraud Reduction

Sec. 631. Sense of the Congress in support of the efforts of the 
                            administration to address the problems of 
                            fraud and abuse in the supplemental 
                            security income program.
Sec. 632. Study on feasibility of single tamper-proof identification 
                            card to serve programs under both the 
                            Social Security Act and health reform 
                            legislation.
                          TITLE VII--FINANCING

Subtitle A--Ineligibility of Certain Aliens for Certain Social Services

Sec. 701. Certain aliens ineligible for aid to families with dependent 
                            children.
Sec. 702. Certain aliens ineligible for supplemental security income 
                            benefits.
Sec. 703. Illegal aliens not eligible for earned income tax credit.
Sec. 704. Disqualification of certain aliens to receive food stamp 
                            benefits.
Sec. 705. Certain aliens ineligible for medical assistance under 
                            medicaid.
            Subtitle B--Other Provisions Relating to Aliens

Sec. 711. Sponsor responsibility for costs of general cash public 
                            assistance provided to an alien.
Sec. 712. Enforcement of affidavits of support or financial 
                            responsibility by State and local 
                            governments providing assistance.
Sec. 713. Authority to States and localities to limit assistance to 
                            aliens and to distinguish among classes of 
                            aliens in providing general public 
                            assistance.
Sec. 714. Federal financial assistance to States for assistance to 
                            immigrants.
      Subtitle C--Limitation on Emergency Assistance Expenditures

Sec. 721. Limitation on expenditures for emergency assistance.
         Subtitle D--Family Day Care Homes Program Improvements

Sec. 731. Improvement of operation of family or group day care homes 
                            located in low- and moderate-income areas 
                            under the child and adult care food program 
                            under the National School Lunch Act.
Subtitle E--Collection of Certain State and Local Taxes on Out-of-State 
                                 Sales

Sec. 741. Short title.
Sec. 742. Findings.
Sec. 743. Sense of Congress.
Sec. 744. Authority for collection of sales tax.
Sec. 745. Treatment of local sales taxes.
Sec. 746. Return and remittance requirements.
Sec. 747. Nondiscrimination and exemptions.
Sec. 748. Application of State law.
Sec. 749. Toll-free information service.
Sec. 750. Definitions.
Sec. 751. Effective date.
                       TITLE VIII--EFFECTIVE DATE

Sec. 801. Effective date.

             TITLE I--TIME-LIMITED TRANSITIONAL ASSISTANCE

SEC. 101. LIMITATION ON DURATION OF AFDC BENEFITS.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (44);
            (2) by striking the period at the end of paragraph (45) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (45) the following:
            ``(46) in the case of a State that has exercised the option 
        provided for in paragraph (52), provide that a family shall not 
        be eligible for aid under the State plan if a member of the 
        family is prohibited from participating in the State program 
        established under part F by reason of section 487(c).''.

SEC. 102. JOB SEARCH REQUIREMENT.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)), as amended by section 101 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (45);
            (2) by striking the period at the end of paragraph (46) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (46) the following:
            ``(47) provide that participation in job search activities 
        shall be a condition of eligibility for aid under the State 
        plan, except during any period of unsubsidized full-time 
        employment in the private sector.''.

SEC. 103. TRANSITIONAL CHILD CARE BENEFITS FOR PERSONS WHO EXHAUST 
              AFDC.

    Section 402(g)(1)(A)(ii) of the Social Security Act (42 U.S.C. 
602(g)(1)(A)(ii)) is amended by inserting ``or subsection (a)(46)'' 
before the period.

SEC. 104. ESTABLISHMENT OF FEDERAL DATA BASE.

    Section 402 of the Social Security Act (42 U.S.C. 602) is amended 
by inserting after subsection (c) the following:
    ``(d) The Secretary shall establish and maintain a data base of 
participants in State programs established under parts F and G which 
shall be made available to the States for use in administering 
subsection (a)(46).''.

                        TITLE II--MAKE WORK PAY

                        Subtitle A--Health Care

SEC. 201. TRANSITIONAL MEDICAID BENEFITS.

    (a) Extension of Medicaid Enrollment for Former AFDC Recipients for 
1 Additional Year.--
            (1) In general.--Section 1925(b)(1) of the Social Security 
        Act (42 U.S.C. 1396r-6(b)(1)) is amended by striking the period 
        at the end and inserting the following: ``, and that the State 
        shall offer to each such family the option of extending 
        coverage under this subsection for any of the first 2 
        succeeding 6-month periods, in the same manner and under the 
        same conditions as the option of extending coverage under this 
        subsection for the first succeeding 6-month period.''.
            (2) Conforming amendments.--Section 1925(b) of such Act (42 
        U.S.C. 1396r-6(b)) is amended--
                    (A) in the heading, by striking ``Extension'' and 
                inserting ``Extensions'';
                    (B) in the heading of paragraph (1), by striking 
                ``Requirement'' and inserting ``In general'';
                    (C) in paragraph (2)(B)(ii)--
                            (i) in the heading, by striking ``period'' 
                        and inserting ``periods'', and
                            (ii) by striking ``in the period'' and 
                        inserting ``in each of the 6-month periods'';
                    (D) in paragraph (3)(A), by striking ``the 6-month 
                period'' and inserting ``any 6-month period'';
                    (E) in paragraph (4)(A), by striking ``the 
                extension period'' and inserting ``any extension 
                period''; and
                    (F) in paragraph (5)(D)(i), by striking ``is a 3-
                month period'' and all that follows and inserting the 
                following: ``is, with respect to a particular 6-month 
                additional extension period provided under this 
                subsection, a 3-month period beginning with the 1st or 
                4th month of such extension period.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to calendar quarters beginning on or after October 1, 1996, 
without regard to whether or not final regulations to carry out such 
amendments have been promulgated by such date.

                  Subtitle B--Earned Income Tax Credit

SEC. 211. NOTICE OF AVAILABILITY REQUIRED TO BE PROVIDED TO APPLICANTS 
              AND FORMER RECIPIENTS OF AFDC, FOOD STAMPS, AND MEDICAID.

    (a) AFDC.--Section 402(a) of the Social Security Act (42 U.S.C. 
602(a)), as amended by sections 101 and 102(a) of this Act, is 
amended--
            (1) by striking ``and'' at the end of paragraph (46);
            (2) by striking the period at the end of paragraph (47) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (47) the following:
            ``(48) provide that the State agency must provide written 
        notice of the existence and availability of the earned income 
        credit under section 32 of the Internal Revenue Code of 1986 
        to--
                    ``(A) any individual who applies for aid under the 
                State plan, upon receipt of the application; and
                    ``(B) any individual whose aid under the State plan 
                is terminated, in the notice of termination of 
                benefits.''.
    (b) Food Stamps.--Section 11(e) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(e)) is amended--
            (1) in paragraph (24) by striking ``and'' at the end;
            (2) in paragraph (25) by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after paragraph (25) the following:
            ``(26) that whenever a household applies for food stamp 
        benefits, and whenever such benefits are terminated with 
        respect to a household, the State agency shall provide to each 
        member of such household notice of--
                    ``(A) the existence of the earned income tax credit 
                under section 32 of the Internal Revenue Code of 1986; 
                and
                    ``(B) the fact that such credit may be applicable 
                to such member.''.
    (c) Medicaid.--Section 1902(a) of the Social Security Act (42 
U.S.C. 1396a(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (61);
            (2) by striking the period at the end of paragraph (62) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(63) provide that the State shall provide notice of the 
        existence and availability of the earned income tax credit 
        under section 32 of the Internal Revenue Code of 1986 to each 
        individual applying for medical assistance under the State plan 
        and to each individual whose eligibility for medical assistance 
        under the State plan is terminated.''.

SEC. 212. NOTICE OF AVAILABILITY OF EARNED INCOME TAX CREDIT AND 
              DEPENDENT CARE TAX CREDIT TO BE INCLUDED ON W-4 FORM.

    Section 11114 of the Omnibus Budget Reconciliation Act of 1990 
(relating to program to increase public awareness) is amended by adding 
at the end the following new sentence: ``Such means shall include 
printing a notice of the availability of such credits on the forms used 
by employees to determine the proper number of withholding exemptions 
under chapter 24 of the Internal Revenue Code of 1986.''.

                         Subtitle C--Child Care

SEC. 221. DEPENDENT CARE CREDIT TO BE REFUNDABLE; HIGH-INCOME TAXPAYERS 
              INELIGIBLE FOR CREDIT.

    (a) Credit To Be Refundable.--
            (1) In general.--Section 21 of the Internal Revenue Code of 
        1986 (relating to expenses for household and dependent care 
        services necessary for gainful employment) is hereby moved to 
        subpart C of part IV of subchapter A of chapter 1 of such Code 
        (relating to refundable credits) and inserted after section 34.
            (2) Technical amendments.--
                    (A) Section 35 of such Code is redesignated as 
                section 36.
                    (B) Section 21 of such Code is redesignated as 
                section 35.
                    (C) Paragraph (1) of section 35(a) of such Code (as 
                redesignated by subparagraph (B)) is amended by 
                striking ``this chapter'' and inserting ``this 
                subtitle''.
                    (D) Subparagraph (C) of section 129(a)(2) of such 
                Code is amended by striking ``section 21(e)'' and 
                inserting ``section 35(e)''.
                    (E) Paragraph (2) of section 129(b) of such Code is 
                amended by striking ``section 21(d)(2)'' and inserting 
                ``section 35(d)(2)''.
                    (F) Paragraph (1) of section 129(e) of such Code is 
                amended by striking ``section 21(b)(2)'' and inserting 
                ``section 35(b)(2)''.
                    (G) Subsection (e) of section 213 of such Code is 
                amended by striking ``section 21'' and inserting 
                ``section 35''.
                    (H) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting before the 
                period ``or from section 35 of such Code''.
                    (I) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                striking the item relating to section 35 and inserting 
                the following:
                              ``Sec. 35. Expenses for household and 
                                        dependent care services 
                                        necessary for gainful 
                                        employment.
                              ``Sec. 36. Overpayments of tax.''.
                    (J) The table of sections for subpart A of such 
                part IV is amended by striking the item relating to 
                section 21.
    (b) Higher-Income Taxpayers Ineligible for Credit.--Subsection (a) 
of section 35 of such Code, as redesignated by subsection (a), is 
amended by adding at the end the following new paragraph:
            ``(3) Phaseout of credit for higher-income taxpayers.--The 
        amount of the credit which would (but for this paragraph) be 
        allowed by this section shall be reduced (but not below zero) 
        by an amount which bears the same ratio to such amount of 
        credit as the excess of the taxpayer's adjusted gross income 
        for the taxable year over $110,000 bears to $10,000. Any 
        reduction determined under the preceding sentence which is not 
        a multiple of $10 shall be rounded to the nearest multiple of 
        $10.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 222. INCREASED FEDERAL MATCHING RATE FOR CHILD CARE COSTS OF THE 
              50 STATES AND THE DISTRICT OF COLUMBIA.

    Section 402(g)(3)(A)(i) of the Social Security Act (42 U.S.C. 
602(g)(3)(A)(i)) is amended by striking ``the Federal medical 
assistance percentage (as defined in section 1118)'' and inserting ``80 
percent''.

SEC. 223. MAINTENANCE OF EFFORT.

    Section 403 of the Social Security Act (42 U.S.C. 603) is amended 
by adding at the end the following:
    ``(o) Notwithstanding any other provision of this part, the amount 
otherwise payable to a State under this part for a fiscal year shall be 
reduced by the percentage (if any) by which the total expenditures by 
the State under this part for the fiscal year does not exceed the 
average annual expenditures by the State under this part during fiscal 
years 1994, 1995, and 1996.''.

SEC. 224. NOTICE OF ELIGIBILITY FOR TRANSITIONAL CHILD CARE BENEFITS 
              REQUIRED TO BE PROVIDED TO APPLICANTS FOR, AND UPON 
              TERMINATION OF, AFDC.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 101, 102(a), and 211(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (47);
            (2) by striking the period at the end of paragraph (48);
            (3) by inserting after paragraph (48) the following:
            ``(49) provide that the State agency must provide written 
        notice that, upon termination of aid under the State plan, a 
        family may be eligible for child care benefits under section 
        402(g)(1)(A)(ii), to--
                    ``(A) any individual who applies for aid under the 
                State plan, upon receipt of the application; and
                    ``(B) any individual whose aid under the State plan 
                is terminated, in the notice of termination of 
                benefits.''.

SEC. 225. EXTENSION OF ELIGIBILITY FOR TRANSITIONAL CHILD CARE 
              BENEFITS.

    Section 402(g)(1)(A) of the Social Security Act (42 U.S.C. 
602(g)(1)(A)) is amended--
            (1) in clause (iii), by striking ``12'' and inserting 
        ``24''; and
            (2) in clause (iv), by striking ``3 of the 6'' and 
        inserting ``1 of the ``24''.

SEC. 226. INCREASED FUNDING FOR AT-RISK CHILD CARE.

    Section 403(n) of the Social Security Act (42 U.S.C. 603(n)) is 
amended--
            (1) in paragraph (1)(A), by striking ``the Federal medical 
        assistance percentage (as defined in section 1905(b))'' and 
        inserting ``80 percent''; and
            (2) in paragraph (2)(B)--
                    (A) by striking ``and'' at the end of clause (iv); 
                and
                    (B) by striking clause (v) and inserting the 
                following:
            ``(v) $300,000,000 for each of fiscal years 1995, 1996, and 
        1997;
            ``(vi) $500,000,000 for fiscal year 1998;
            ``(vii) $1,000,000,000 for fiscal year 1999;
            ``(viii) $1,500,000,000 for fiscal year 2000; and
            ``(vi) $2,000,000,000 for fiscal year 2001.''.

SEC. 227. AUTHORITY TO USE CERTAIN CHILD CARE FUNDS FOR TRAINING.

    (a) Transitional Child Care Funds.--Section 402(g)(1)(A)(ii) of the 
Social Security Act (42 U.S.C. 602(g)(1)(A)(ii)) is amended by 
inserting ``training or'' before ``employment'' the first place such 
term appears.
    (b) At-Risk Child Care Funds.--Section 402(i)(1)(B) of such Act (42 
U.S.C. 602(i)(1)(B)) is amended by inserting ``or receive training for 
work'' before the semicolon.

SEC. 228. TRANSITIONAL CHILD CARE FOR 2-PARENT FAMILIES.

    Section 402(g)(1)(A)(i) of the Social Security Act (42 U.S.C. 
602(g)(1)(A)(i)) is amended--
            (1) by striking ``and'' at the end of subclause (I);
            (2) by striking the period at the end of subclause (II) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(III) for each 2-parent family with a dependent child 
        requiring such care, if 1 parent in the family is employed and 
        the other parent in the family is not available to provide such 
        care because such other parent is employed or receiving 
        training, to the extent that such care is determined by the 
        State agency to be necessary for either parent to accept 
        employment, remain employed, or receive such training;''.

SEC. 229. SENSE OF THE CONGRESS REGARDING THE CHILD CARE DEVELOPMENT 
              AND BLOCK GRANT ACT.

    It is the sense of the Congress that the Child Care Development and 
Block Grant Act should be reauthorized to allow States greater 
flexibility in the use of their funds to strengthen child care quality 
and to increase supply.

SEC. 230. USE OF CHILD CARE FUNDS TO CREATE CHILD CARE JOBS FOR WELFARE 
              RECIPIENTS.

    Section 402(g)(3) of the Social Security Act (42 U.S.C. 602(g)(3)) 
is amended by adding at the end the following:
    ``(C) Amounts expended by a State with a plan approved under part G 
for the creation of employment in the field of child care (in 
accordance with State licensing requirements) for recipients of aid 
under the State plan approved under this part shall be considered 
amounts expended for child care pursuant to paragraph (1), and 
subparagraph (B) of this paragraph shall not apply to such amounts.''.

SEC. 230A. SENSE OF THE CONGRESS REGARDING CHILD CARE VOUCHERS.

    It is the sense of the Congress that--
            (1) the States should institute a system under which--
                    (A) vouchers are provided to each family eligible 
                for child care services under subsections (g) and (i) 
                of section 402 of the Social Security Act, under 
                programs operated with funds provided under title XX of 
                the Social Security Act, or under the Child Care 
                Development and Block Grant Act, which may be used by 
                the family to purchase child care services;
                    (B) 1 voucher is provided to the family for each 
                child in the family with respect to whom child care 
                services may be provided;
                    (C) the dollar value of each voucher is set at a 
                level that is greater than the dollar value of the 
                dependent care disregard under section 
                402(a)(8)(A)(iii) of the Social Security Act, and is 
                adjusted to reflect regional differences in the kinds 
                and costs of such services;
                    (D) a board consisting of child care providers and 
                representatives from the State agency referred to in 
                section 402(a)(3) of the Social Security Act annually 
                negotiates and determines the dollar value of the child 
                care vouchers to be issued by the State; and
                    (E) the State agency referred to in section 
                402(a)(3) of the Social Security Act monitors the 
                performance of private providers of child care services 
                in the State and the compliance of such providers with 
                the system;
            (2) the States should create a Consumer Information Center 
        responsible for maintaining an updated roster of eligible 
        providers of child care services, and a record of the 
        performance of such providers as evaluated by recipients of 
        such services, which should be published in a brochure that is 
        available to all persons who are eligible to receive such 
        services; and
            (3) the States should loosen their regulations to allow for 
        the reimbursement of the child costs of licensed child care 
        providers and unsolicited or home care child care providers.

                    Subtitle D--AFDC Work Disregards

SEC. 231. OPTION TO INCREASE DISREGARD OF EARNED INCOME.

    Section 402(a)(8)(A) of the Social Security Act (42 U.S.C. 
602(a)(8)(A)) is amended--
            (1) by striking ``and'' at the end of clause (vii); and
            (2) by adding at the end the following:
                    ``(ix) if electing to disregard clauses (ii) and 
                (iv), shall disregard from the earned income of any 
                child, relative, or other individual specified in 
                clause (ii) an amount equal to not less than the first 
                $120 and not more than the first $225 of the total of 
                such earned income not disregarded under any other 
                clause of this subparagraph, plus not more than \1/3\ 
                of the remainder of such earned income; and''.

SEC. 232. STATE OPTION TO ESTABLISH VOLUNTARY DIVERSION PROGRAM.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 101, 102(a), 211(a), and 224 of this Act, is 
amended--
            (1) by striking ``and'' at the end of paragraph (48);
            (2) by striking the period at the end of paragraph (49) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (49) the following:
            ``(50) at the option of the State, and in such part or 
        parts of the State as the State may select, provide that--
                    ``(A) upon the recommendation of the caseworker who 
                is handling the case of a family eligible for aid under 
                the State plan, the State shall, in lieu of any other 
                payment under the State plan to a family during a 3-
                month period, make a lump-sum payment to the family for 
                the 3-month period in an amount equal to 3 times the 
                amount of the monthly benefit to which the family is 
                entitled under the State plan;
                    ``(B) a lump-sum payment pursuant to subparagraph 
                (A) shall not be made more than once to any family; and
                    ``(C) if, during a 3-month period for which the 
                State has made a lump-sum payment to a family pursuant 
                to subparagraph (A), the family applies for and (but 
                for the lump-sum payment) would be eligible for aid 
                under the State plan for a greater monthly benefit than 
                the monthly benefit to which the family was entitled 
                under the State plan at the time of the calculation of 
                the lump sum payment, then, notwithstanding 
                subparagraph (A), the State shall, for that part of the 
                3-month period that remains after the family becomes 
                eligible for the greater monthly benefit, provide 
                monthly benefits to the family in an amount equal to--
                            ``(i) 3 times the amount by which the 
                        greater monthly benefit exceeds the former 
                        monthly benefit; divided by
                            ``(ii) the whole number of months remaining 
                        in the 3-month period.''.

SEC. 233. ELIMINATION OF QUARTERS OF COVERAGE REQUIREMENT FOR MARRIED 
              TEENS UNDER AFDC-UP PROGRAM.

    Section 407(b)(1)(A)(iii)(I) of the Social Security Act (42 U.S.C. 
607(b)(1)(A)(iii)(I)) is amended by inserting ``except in the case of a 
family in which the parents are married and neither parent has attained 
20 years of age,'' after ``(I)''.

                   Subtitle E--AFDC Asset Limitations

SEC. 241. INCREASE IN RESOURCE THRESHOLDS; SEPARATE THRESHOLD FOR 
              VEHICLES.

    Section 402(a)(7)(B) of the Social Security Act (42 U.S.C. 
602(a)(7)(B)) is amended--
            (1) by striking ``$1,000 or such lower amount as the State 
        may determine'' and inserting ``$2,000''; and
            (2) in clause (i), by striking ``such amount as the 
        Secretary may prescribe'' and inserting ``the dollar amount 
        prescribed by the Secretary of Agriculture under section 5(g) 
        of the Food Stamp Act of 1977''.

SEC. 242. LIMITED DISREGARD OF AMOUNTS SAVED FOR POST-SECONDARY 
              EDUCATION, THE PURCHASE OF A FIRST CAR OR A FIRST HOME, 
              OR THE ESTABLISHMENT OR OPERATION OF A MICROENTERPRISE.

    (a) Disregard From Resources.--Section 402(a)(7)(B) of the Social 
Security Act (42 U.S.C. 602(a)(7)(B)) is amended--
            (1) by striking ``or'' before ``(iv)''; and
            (2) by inserting ``, or (v) any amount not exceeding $8,000 
        in 1 qualified asset account (as defined in section 406(i)) of 
        1 member of such family'' before ``; and''.
    (b) Disregard From Income.--
            (1) In general.--Section 402(a)(8)(A) of such Act (42 
        U.S.C. 602(a)(8)(A)), as amended by section 231 of this Act, is 
        amended--
                    (A) by striking ``and'' at the end of clause 
                (viii); and
                    (B) by inserting after clause (ix) the following 
                new clause:
                            ``(x) shall disregard any interest or 
                        income earned on a qualified asset account (as 
                        defined in section 406(i)) and paid into the 
                        account, to the extent that the total amount in 
                        the account, after such payment, does not 
                        exceed $8,000; and''.
            (2) Nonrecurring lump sum exempt from lump sum rule.--
        Section 402(a)(17) of such Act (42 U.S.C. 602(a)(17)) is 
        amended by adding at the end the following: ``; and that this 
        paragraph shall not apply to earned or unearned income received 
        in a month on a nonrecurring basis to the extent that such 
        income is placed in a qualified asset account (as defined in 
        section 406(i)) the total amount in which, after such 
        placement, does not exceed $8,000;''.
            (3) Treatment as income.--Section 402(a)(7) of such Act (42 
        U.S.C. 602(a)(7)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the semicolon at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) shall treat as income any distribution from a 
                qualified asset account (as defined in section 
                406(i)(1)) that is not a qualified distribution (as 
                defined in section 406(i)(2));''.
    (c) Definitions.--Section 406 of such Act (42 U.S.C. 606) is 
amended by adding at the end the following:
    ``(i)(1) The term `qualified asset account' means a mechanism 
approved by the State (such as individual retirement accounts, escrow 
accounts, or savings bonds) that allows savings of an individual 
receiving aid to families with dependent children to be used for a 
purpose described in paragraph (2).
    ``(2) The term `qualified distribution' means a distribution for 
expenses directly related to 1 or more of the following purposes:
            ``(A) The attendance of a member of the family at any 
        postsecondary education program.
            ``(B) The purchase of residential real property for the 
        family that the family intends to occupy, if no member of the 
        family has an ownership interest in such a property.
            ``(C) The purchase of an automobile if no member of the 
        family has an ownership interest in an automobile.
            ``(D) The establishment or operation of a microenterprise 
        owned by a member of the family.
    ``(j) The term `microenterprise' means a commercial enterprise 
which has 5 or fewer employees, 1 or more of whom owns the 
enterprise.''.

SEC. 243. TREATMENT OF MICROENTERPRISES.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)), as amended by sections 101, 102(a), 211(a), 224, and 
232 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (49);
            (2) by striking the period at the end of paragraph (50) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (50) the following:
            ``(51) provide that the State agency--
                    ``(A) shall not include as a resource of the family 
                of which a child referred to in paragraph (7)(A) is a 
                member, for purposes of paragraph (7)(B), the first 
                $8,000 of the net worth (assets reduced by liabilities 
                with respect thereto) of 1 microenterprise (as defined 
                in section 406(j)(1)) owned, in whole or in part, by 
                the child or by a relative or other individual referred 
                to in paragraph (7)(A), for a period not to exceed 2 
                years; and
                    ``(B) shall take into consideration as earned 
                income of the family of which the child is a member, 
                only the net profits (as defined in section 406(j)(2)) 
                of 1 such microenterprise, for a period not to exceed 2 
                years.''.
    (b) Definitions.--Section 406(j) of such Act (42 U.S.C. 606(j)), as 
added by section 242(c) of this Act, is amended--
            (1) by inserting ``(1)'' after ``(j)''; and
            (2) by adding at the end the following:
    ``(2) The term `net profits' means, with respect to a 
microenterprise, the gross receipts of the microenterprise, minus--
            ``(A) payments of principal or interest on a loan to the 
        microenterprise;
            ``(B) transportation expenses incurred in operating the 
        microenterprise;
            ``(C) expenses incurred in maintaining inventory for the 
        microenterprise;
            ``(D) expenditures for the purchase of capital equipment 
        for the microenterprise;
            ``(E) cash retained by the microenterprise for future use;
            ``(F) taxes paid by the microenterprise;
            ``(G) if the microenterprise is covered under a policy of 
        insurance against loss--
                    ``(i) the premiums paid for such insurance; and
                    ``(ii) the losses incurred by the microenterprise 
                that are not reimbursed by the insurer solely by reason 
                of the existence of a deductible with respect to the 
                insurance policy;
            ``(H) the reasonable costs of obtaining and operating 1 
        motor vehicle necessary for the conduct of the microenterprise; 
        and
            ``(I) the other expenses of the microenterprise.''.

                   TITLE III--THE WORK FIRST PROGRAM

                            Subtitle A--AFDC

SEC. 301. WORK FIRST PROGRAM.

    (a) State Plan Requirement.--Section 402(a) of the Social Security 
Act (42 U.S.C. 602(a)), as amended by sections 101, 102(a), 211(a), 
224, 232, and 243(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (50);
            (2) by striking the period at the end of paragraph (51) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (51) the following:
            ``(52) at the option of the State, provide that the State 
        has in effect and operation a work first program that meets the 
        requirements of part F and a community service program that 
        meets the requirements of part G, and must provide to 
        participants in such programs such case management services as 
        are necessary to ensure the integrated provision of benefits 
        and services under such programs.''.
    (b) Establishment and Operation of Program.--Title IV of such Act 
(42 U.S.C. 601 et seq.) is amended by striking part F and inserting the 
following:

                      ``Part F--Work First Program

``SEC. 481. ESTABLISHMENT AND OPERATION OF STATE PROGRAMS.

    ``A work first program meets the requirements of this part if the 
program meets the following requirements:
            ``(1) Objective.--The objective of the program is for each 
        program participant to find and hold a full-time unsubsidized 
        paid job, and for this goal to be achieved in a cost-effective 
        fashion.
            ``(2) Method.--The method of the program is to connect 
        recipients of aid to families with dependent children with the 
        private sector labor market as soon as possible and offer them 
        the support and skills necessary to remain in the labor market. 
        Each component of the program should be permeated with an 
        emphasis on employment and with an understanding that minimum 
        wage jobs are a stepping stone to more highly paid employment.
            ``(3) Job creation.--The creation of jobs, with an emphasis 
        on private sector jobs, shall be a component of the program and 
        shall be a priority for each State office with responsibilities 
        under the program.
            ``(4) Use of incentives.--The State shall use incentives to 
        change the culture of each State office with responsibilities 
        under the State plan approved under part A, improve the 
        performance of employees, and ensure that the objective of each 
        employee of each such State office is to find an unsubsidized 
        paid job for each program participant.
            ``(5) Caseworker training.--The State shall provide such 
        training to caseworkers and related personnel (including 
        through the use of incentives) as may be necessary to ensure 
        successful job placements that result in full-time public or 
        private employment (outside the State agencies with 
        responsibilities under part A) for program participants. The 
        State shall reward any caseworker who enters a participation 
        agreement with a program participant that provides for 
        education or training activities as well as work.
            ``(6) Reports.--Each office with responsibility for 
        operating the program shall make monthly statistical reports to 
        the governing body of the State, county, and city in which 
        located, of job placements and the number of program 
        participants who are no longer receiving aid under the State 
        plan approved under part A as a result of participation in the 
        program.
            ``(7) Plan required.--The program is established and 
        operated in accordance with a plan approved by the Secretary as 
        meeting the requirements of this part.
            ``(8) Case management teams.--
                    ``(A) Duties.--The program requires the State to 
                assign to each individual required or allowed to 
                participate in the program a case management team that 
                shall meet with the program participant and develop a 
                participation agreement for the individual.
                    ``(B) Deadline.--
                            ``(i) In general.--The case management team 
                        shall comply with subparagraph (A) with respect 
                        to a program participant within 30 days (or, at 
                        the option of the State, within a period not 
                        exceeding 90 days) after the later of--
                                    ``(I) the date the application of 
                                the program participant for aid under 
                                the State plan approved under part A 
                                was approved; or
                                    ``(II) the date this part first 
                                applies to the State.
                            ``(ii) Repeat participants.--Within 30 days 
                        after the State makes a determination under 
                        section 487(c)(2) to allow an individual to 
                        participate in the program, the case management 
                        team shall meet with the individual and develop 
                        a participation agreement for the individual.
            ``(9) Participation agreements.--The participation 
        agreement for a participant shall--
                    ``(A) contain an individualized comprehensive plan, 
                developed by the team and the participant, to move the 
                participant into a full-time unsubsidized job, through 
                activities under section 482, 483, 484, 485, or 486;
                    ``(B) to the greatest extent possible, be designed 
                to move the participant as quickly as possible into 
                whatever type and amount of work as the participant is 
                capable of handling, and increases the responsibility 
                and amount of work over time until the participant is 
                able to work full-time;
                    ``(C) where necessary, provide for education or 
                training of the participant;
                    ``(D) provide that aid under the State plan is to 
                be paid to the participant based on the number of hours 
                that the participant spends in activities provided for 
                in the agreement;
                    ``(E) provide that the participant shall spend at 
                least 20 hours per week in activities provided for in 
                the agreement;
                    ``(F) provide that the participant shall accept any 
                bona fide offer of unsubsidized full-time employment, 
                unless the participant has good cause for not doing so; 
                and
                    ``(G) at the option of the State, require the 
                participant to undergo appropriate substance abuse 
                treatment.
            ``(10) Options for participants.--The case manager for a 
        program participant shall present the participant with each 
        option offered under the State program through which the 
        participant will, over time, be moved into full-time 
        unsubsidized employment.
            ``(11) One-stop employment shops.--
                    ``(A) In general.--In carrying out the program, the 
                State shall utilize and make available to each program 
                participant, through the establishment and operation or 
                utilization of appropriate Federal or State one-stop 
                employment shops, services under programs carried out 
                under the following provisions of law:
                            ``(i) Part A of title II of the Job 
                        Training Partnership Act (29 U.S.C. 1601 et 
                        seq.) (relating to the adult training program).
                            ``(ii) Part B of title II of such Act (29 
                        U.S.C. 1630 et seq.) (relating to the summer 
                        youth employment and training programs).
                            ``(iii) Part C of title II of such Act (29 
                        U.S.C. 1641 et seq.) (relating to the youth 
                        training program).
                            ``(iv) Title III of such Act (29 U.S.C. 
                        1651 et seq.) (relating to employment and 
                        training assistance for dislocated workers).
                            ``(v) Part B of title IV of such Act (29 
                        U.S.C. 1691 et seq.) (relating to the Job 
                        Corps).
                            ``(vi) The Carl D. Perkins Vocational and 
                        Applied Technology Education Act (20 U.S.C. 
                        2301 et seq.).
                            ``(vii) The Adult Education Act (20 U.S.C. 
                        1201 et seq.).
                            ``(viii) Part B of chapter 1 of title I of 
                        the Elementary and Secondary Education Act of 
                        1965 (20 U.S.C. 2741 et seq.) (relating to Even 
                        Start family literacy programs).
                            ``(ix) Subtitle A of title VII of the 
                        Stewart B. Mckinney Homeless Assistance Act (42 
                        U.S.C. 11421) (relating to adult education for 
                        the homeless).
                            ``(x) Subtitle B of title VII of such Act 
                        (42 U.S.C. 11431 et seq.) (relating to 
                        education for homeless children and youth).
                            ``(xi) Subtitle C of title VII of such Act 
                        (42 U.S.C. 11441) (relating to job training for 
                        the homeless).
                            ``(xii) The School-to-Work Opportunities 
                        Act of 1994.
                            ``(xiii) The National and Community Service 
                        Act of 1990 (42 U.S.C. 12501 et seq.).
                            ``(xiv) The National Skill Standards Act of 
                        1994.
                    ``(B) Coordination.--In utilizing appropriate 
                Federal or State one-stop employment shops described in 
                subparagraph (A), the State shall ensure coordination 
                between the caseworker of each program participant and 
                the administrators of the programs carried out under 
                the provisions of law described in such subparagraph.
            ``(12) Penalties for refusal to work.--The amount of aid 
        otherwise payable under the State plan approved under part A to 
        a family that includes an individual who fails without good 
        cause to comply with a participation agreement signed by the 
        individual shall be reduced for 1 month by 25 percent for each 
        act of noncompliance.
            ``(13) Performance standards.--The State shall (in 
        accordance with regulations prescribed by the Secretary) 
        develop standards to be used to measure the effectiveness of 
        the programs established under this part and part G in moving 
        recipients of aid under the State plan approved under part A 
        into full-time unsubsidized employment.

``SEC. 482. REVAMPED JOBS PROGRAM.

    ``A State that establishes a program under this part may operate a 
program similar to the program known as the `GAIN Program' that has 
been operated by Riverside County, California, under Federal law in 
effect immediately before the date this part first applies to the State 
of California.

``SEC. 483. USE OF PLACEMENT COMPANIES.

    ``(a) In General.--A State that establishes a program under this 
part may enter into contracts with private companies (whether operated 
for profit or not for profit) for the placement of participants in the 
program in positions of full-time employment, preferably in the private 
sector, for wages sufficient to eliminate the need of such participants 
for cash assistance.
    ``(b) Required Contract Terms.--Each contract entered into under 
this section with a company shall meet the following requirements:
            ``(1) Provision of job readiness and support services.--The 
        contract shall require the company to provide, to any program 
        participant who presents to the company a voucher issued under 
        subsection (d) intensive personalized support and job readiness 
        services designed to prepare the individual for employment and 
        ensure the continued success of the individual in employment.
            ``(2) Payments.--
                    ``(A) In general.--The contract shall provide for 
                payments to be made to the company with respect to each 
                program participant who presents to the company a 
                voucher issued under subsection (d).
                    ``(B) Structure.--The contract shall provide for 
                the majority of the amounts to be paid under the 
                contract with respect to a program participant, to be 
                paid after the company has placed the participant in a 
                position of full-time employment and the participant 
                has been employed in the position for such period of 
                not less than 5 months as the State deems appropriate.
    ``(c) Competitive Bidding Required.--Contracts under this section 
shall be awarded only after competitive bidding.
    ``(d) Vouchers.--The State shall issue a voucher to each program 
participant whose participation agreement provides for the use of 
placement companies under this section, indicating that the participant 
is eligible for the services of such a company.

``SEC. 484. TEMPORARY SUBSIDIZED JOB CREATION.

    ``A State that establishes a program under this part may establish 
a program similar to the program known as `JOBS Plus' that has been 
operated by the State of Oregon under Federal law in effect immediately 
before the date this part first applies to the State of Oregon.

``SEC. 485. MICROENTERPRISE.

    ``(a) Grants and Loans to Nonprofit Organizations for the Provision 
of Technical Assistance, Training, and Credit to Low Income 
Entrepreneurs.--A State that establishes a program under this part may 
make grants and loans to nonprofit organizations to provide technical 
assistance, training, and credit to low income entrepreneurs for the 
purpose of establishing microenterprises.
    ``(b) Microenterprise Defined.--For purposes of this subsection, 
the term `microenterprise' means a commercial enterprise which has 5 or 
fewer employees, 1 or more of whom owns the enterprise.

``SEC. 486. WORK SUPPLEMENTATION PROGRAM.

    ``(a) In General.--A State that establishes a program under this 
part may institute a work supplementation program under which the 
State, to the extent it considers appropriate, may reserve the sums 
that would otherwise be payable to participants in the program as aid 
to families with dependent children and use the sums instead for the 
purpose of providing and subsidizing jobs for the participants (as 
described in subsection (c)(3)(A) and (B)), as an alternative to the 
aid to families with dependent children that would otherwise be so 
payable to the participants.
    ``(b) State Flexibility.--
            ``(1) Nothing in this part, or in any State plan approved 
        under part A, shall be construed to prevent a State from 
        operating (on such terms and conditions and in such cases as 
        the State may find to be necessary or appropriate) a work 
        supplementation program in accordance with this section and 
        section 484 (as in effect immediately before the date this part 
        first applies to the State).
            ``(2) Notwithstanding section 402(a)(23) or any other 
        provision of law, a State may adjust the levels of the 
        standards of need under the State plan as the State determines 
        to be necessary and appropriate for carrying out a work 
        supplementation program under this section.
            ``(3) Notwithstanding section 402(a)(1) or any other 
        provision of law, a State operating a work supplementation 
        program under this section may provide that the need standards 
        in effect in those areas of the State in which the program is 
        in operation may be different from the need standards in effect 
        in the areas in which the program is not in operation, and the 
        State may provide that the need standards for categories of 
        recipients may vary among such categories to the extent the 
        State determines to be appropriate on the basis of ability to 
        participate in the work supplementation program.
            ``(4) Notwithstanding any other provision of law, a State 
        may make such further adjustments in the amounts of the aid to 
        families with dependent children paid under the plan to 
        different categories of recipients (as determined under 
        paragraph (3)) in order to offset increases in benefits from 
        needs-related programs (other than the State plan approved 
        under part A) as the State determines to be necessary and 
        appropriate to further the purposes of the work supplementation 
        program.
            ``(5) In determining the amounts to be reserved and used 
        for providing and subsidizing jobs under this section as 
        described in subsection (a), the State may use a sampling 
        methodology.
            ``(6) Notwithstanding section 402(a)(8) or any other 
        provision of law, a State operating a work supplementation 
        program under this section--
                    ``(A) may reduce or eliminate the amount of earned 
                income to be disregarded under the State plan as the 
                State determines to be necessary and appropriate to 
                further the purposes of the work supplementation 
                program; and
                    ``(B) during 1 or more of the first 9 months of an 
                individual's employment pursuant to a program under 
                this part, may apply to the wages of the individual the 
                provisions of subparagraph (A)(iv) of section 402(a)(8) 
                without regard to the provisions of subparagraph 
                (B)(ii)(II) of such section.
    ``(c) Rules Relating to Supplemented Jobs.--
            ``(1) A work supplementation program operated by a State 
        under this section may provide that any individual who is an 
        eligible individual (as determined under paragraph (2)) shall 
        take a supplemented job (as defined in paragraph (3)) to the 
        extent that supplemented jobs are available under the program. 
        Payments by the State to individuals or to employers under the 
        work supplementation program shall be treated as expenditures 
        incurred by the State for aid to families with dependent 
        children except as limited by subsection (d).
            ``(2) For purposes of this section, an eligible individual 
        is an individual who is in a category which the State 
        determines should be eligible to participate in the work 
        supplementation program, and who would, at the time of 
        placement in the job involved, be eligible for aid to families 
        with dependent children under an approved State plan if the 
        State did not have a work supplementation program in effect.
            ``(3) For purposes of this subsection, a supplemented job 
        is--
                    ``(A) a job provided to an eligible individual by 
                the State or local agency administering the State plan 
                under part A; or
                    ``(B) a job provided to an eligible individual by 
                any other employer for which all or part of the wages 
                are paid by the State or local agency.
        A State may provide or subsidize under the program any job 
        which the State determines to be appropriate.
            ``(4) At the option of the State, individuals who hold 
        supplemented jobs under a State's work supplementation program 
        shall be exempt from the retrospective budgeting requirements 
        imposed pursuant to section 402(a)(13)(A)(ii) (and the amount 
        of the aid which is payable to the family of any such 
        individual for any month, or which would be so payable but for 
        the individual's participation in the work supplementation 
        program, shall be determined on the basis of the income and 
        other relevant circumstances in that month).
    ``(d) Cost Limitation.--The amount of the Federal payment to a 
State under section 403 for expenditures incurred in making payments to 
individuals and employers under a work supplementation program under 
this subsection shall not exceed an amount equal to the amount which 
would otherwise be payable under such section if the family of each 
individual employed in the program established in the State under this 
section had received the maximum amount of aid to families with 
dependent children payable under the State plan to such a family with 
no income (without regard to adjustments under subsection (b)) for the 
lesser of--
            ``(1) 9 months; or
            ``(2) the number of months in which the individual was 
        employed in the program.
    ``(e) Rules of Interpretation.--
            ``(1) This section shall not be construed as requiring the 
        State or local agency administering the State plan to provide 
        employee status to an eligible individual to whom the State or 
        local agency provides a job under the work supplementation 
        program (or with respect to whom the State or local agency 
        provides all or part of the wages paid to the individual by 
        another entity under the program), or as requiring any State or 
        local agency to provide that an eligible individual filling a 
        job position provided by another entity under the program be 
        provided employee status by the entity during the first 13 
        weeks the individual fills the position.
            ``(2) Wages paid under a work supplementation program shall 
        be considered to be earned income for purposes of any provision 
        of law.
    ``(f) Preservation of Medicaid Eligibility.--Any State that chooses 
to operate a work supplementation program under this section shall 
provide that any individual who participates in the program, and any 
child or relative of the individual (or other individual living in the 
same household as the individual) who would be eligible for aid to 
families with dependent children under the State plan approved under 
part A if the State did not have a work supplementation program, shall 
be considered individuals receiving aid to families with dependent 
children under the State plan approved under part A for purposes of 
eligibility for medical assistance under the State plan approved under 
title XIX.
    ``(g) Relationship to Work Requirements Imposed Under This Part.--
No individual receiving aid to families with dependent children under a 
State plan shall be excused from any requirement of this part relating 
to work requirements by reason of the fact that the State has a work 
supplementation program, except during periods in which the individual 
is employed under the work supplementation program.

``SEC. 487. PARTICIPATION RULES.

    ``(a) In General.--Except as provided in subsections (b) and (c), a 
State that establishes a program under this part may require any 
individual receiving aid under the State plan approved under part A to 
participate in the program.
    ``(b) Exemptions.--The State may not require an individual to 
participate in the program if the individual--
            ``(1) has not attained 20 years of age, and has attended 
        secondary school or has been engaged in obtaining a certificate 
        of high school equivalency;
            ``(2) has been employed on a part-time basis, and has been 
        participating on a part-time basis in technical or vocational 
        education;
            ``(3) has a serious health condition (as defined in section 
        101(11) of the Family and Medical Leave Act of 1993), or has 
        been caring for a relative who had such a condition;
            ``(4)(A) is incapacitated, but only if the State verifies 
        that a physician or licensed or certified psychologist has 
        determined that the incapacitation is due to a physical or 
        mental impairment that prevents the individual from engaging in 
        employment or training under the program; or
            ``(B) is recuperating from childbirth, and a physician has 
        prescribed that the individual not engage in such employment or 
        training; or
            ``(5)(A) is pregnant, obtains physical custody of a child, 
        or becomes a guardian of a child, during the 3-month period 
        that ends on the date the State may otherwise have required the 
        individual to participate in the program; and
            ``(B) the 12-week period that begins with the first day 
        during the 3-month period that the family member was pregnant, 
        obtained such custody, or became such a guardian has not 
        expired.
    ``(c) 2-Year Limitation on Participation.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        individual may not participate in the State program established 
        under this part if the individual has participated in the 
        program for 24 months after the date the individual first 
        signed a participation agreement under this part.
            ``(2) Authority to allow repeat participation.--
                    ``(A) In general.--Subject to subparagraph (B) of 
                this paragraph, a State may allow an individual who, by 
                reason of paragraph (1), would be prohibited from 
                participating in the State program established under 
                this part to participate in the program for such 
                additional period or periods as the State determines 
                appropriate, if the individual has participated for 36 
                months in the State community service program 
                established under part G.
                    ``(B) Limitation on percentage of repeat 
                participants.--The number of individuals allowed under 
                subparagraph (A) to participate during a program year 
                in a State program established under this part shall 
                not exceed 10 percent of the total number of 
                individuals that the Secretary projects will 
                participate in the program for the program year.

``SEC. 488. PHASE-IN OF PARTICIPATION.

    ``(a) Initial Participants.--Notwithstanding section 487(a), an 
individual may not participate in a program established by a State 
under this part unless the individual--
            ``(1) has not attained 25 years of age; or
            ``(2) was participating in the State program established 
        under part F (as in effect immediately before the date this 
        part first applies to the State) immediately before such date.
    ``(b) Phase-In of Older Participants.--Notwithstanding section 
487(a) and subsection (a) of this section, effective on each October 1 
of each calendar year after 1996, a State that establishes a program 
under this part--
            ``(1) except as provided in paragraph (2) of this 
        subsection, may not allow an individual to participate in the 
        program unless the individual has not attained the age (in 
        years) of 25, plus 2 times the whole number of calendar years 
        that have elapsed since October 1, 1996; and
            ``(2) may include in the program not more than 20 percent 
        of the families receiving aid under the State plan approved 
        under part A in which the caretaker relative has attained 25 
        years of age, with an emphasis on--
                    ``(A) recipients of such aid who have received such 
                aid for any 36 of the preceding 60 months; and
                    ``(B) members of families in which the youngest 
                child is within 2 years of being ineligible for aid to 
                families with dependent children because of age.

                  ``Part G--Community Service Program

``SEC. 491. ESTABLISHMENT AND OPERATION OF PROGRAM.

    ``(a) In General.--A State that establishes a work first program 
under part F shall establish and carry out a community service program 
that meets the requirements of this part.
    ``(b) Objective.--The objective of the community service program is 
for each program participant to find and hold a full-time unsubsidized 
paid job, and for this goal to be achieved in a cost-effective fashion.
    ``(c) Case Management Teams.--The State shall assign to each 
program participant a case management team that shall meet with the 
participant and assist the participant to choose the most suitable 
community service job under subsection (d) and to eventually obtain a 
full-time unsubsidized paid job.
    ``(d) Provision of Community Service Job.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), the State shall provide each participant with a full-time 
        community service job under which the participant works a 
        minimum of 30 hours per week and is paid at a rate equal to--
                    ``(A) the minimum wage rate in effect under section 
                6 of the Fair Labor Standards Act of 1938; or
                    ``(B) the State minimum wage rate, if such rate is 
                equal to or higher than the minimum wage rate described 
                in subparagraph (A).
            ``(2) Exception.--(A) If the participant has obtained 
        unsubsidized part-time employment in the private sector, the 
        State shall provide the participant with a part-time community 
        service job.
            ``(B) If the State provides a participant a part-time 
        community service job under subparagraph (A), such State shall 
        ensure that the total number of hours that the participant 
        works in a week is at least 30 hours.
            ``(3) Waiver.--(A) The State may submit to the Secretary a 
        request for a waiver of the 30-hour per week work requirement 
        described in paragraph (1) if such requirement is too 
        financially burdensome for the State to meet.
            ``(B) Any waiver granted under subparagraph (A) shall 
        require the State--
                    ``(i) to ensure that each participant works part-
                time at the community service job; and
                    ``(ii) to meet such 30-hour per week work 
                requirement by the year 2001.
            ``(4) Wages not considered earned income.--Wages paid under 
        a community service program shall not be considered to be 
        earned income for purposes of any provision of law.
            ``(5) Community service job defined.--For purposes of this 
        section, the term `community service job' means--
                    ``(A) a job provided to a participant by the State 
                administering the State plan under part A; or
                    ``(B) a job provided to a participant by any other 
                employer for which all or part of the wages are paid by 
                the State.
        A State may provide or subsidize under the program any job 
        which the State determines to be appropriate.
    ``(e) Job Search Requirement.--The State shall require each 
participant to spend a minimum of 5 hours per week on activities 
related to securing unsubsidized full-time employment in the private 
sector.
    ``(f) Duration of Participation.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        individual may not participate for more than 3 years in a 
        community service program under this section.
            ``(2) Authority to allow repeated participation.--
                    ``(A) In general.--Subject to subparagraph (B), a 
                State may allow an individual whose participation in 
                the community service program under this section has 
                terminated, or (but for this paragraph) would 
                terminate, to participate in the program for an 
                additional period of time, as determined by the State.
                    ``(B) Limitation on percentage of repeat 
                participants.--The number of individuals allowed under 
                subparagraph (A) to participate during a program year 
                in a State program established under this part shall 
                not exceed 10 percent of the total number of 
                individuals that the Secretary projects will 
                participate in the program for the program year.
    ``(g) Use of Placement Companies.--A State that establishes a 
community service program under this section may enter into contracts 
with private companies (whether operated for profit or not for profit) 
for the placement of participants in the program in positions of full-
time employment, preferably in the private sector, for wages sufficient 
to eliminate the need of such participants for cash assistance in 
accordance with section 483.
    ``(h) Temporary Subsidized Job Creation.--A State that establishes 
a community service program under this part may establish a program 
similar to the program operated by the State of Oregon, which is known 
as `JOBS Plus'.
    ``(i) Work Supplementation Program.--
            ``(1) In general.--A State that establishes a community 
        service program under this section may institute a work 
        supplementation program under which the State, to the extent it 
        considers appropriate, may reserve the sums that would 
        otherwise be payable to participants in the program as a 
        community service minimum wage and use the sums instead for the 
        purpose of providing and subsidizing private sector jobs for 
        the participants.
            ``(2) Employer agreement.--An employer who provides a 
        private sector job to a participant under paragraph (1) shall 
        agree to provide to the participant an amount in wages equal to 
        the poverty threshold for a family of three.
    ``(j) Failure To Comply With Employability Agreement or Other Act 
of Noncompliance.--
            ``(1) In general.--Subject to paragraph (2), if the program 
        participant fails without good cause to comply with an 
        employability agreement signed by the participant, or the 
        participant otherwise engages in any other act of 
        noncompliance, the participant shall be afforded the 
        opportunity to change community service jobs.
            ``(2) Maximum of 3 community service jobs.--A program 
        participant may not receive more than 3 community service jobs 
        under the program.
            ``(3) Determination of act of noncompliance.--For purposes 
        of this subsection, the term `act of noncompliance' shall be 
        determined by the State or the employer and shall include 
        failure by the participant to accept an offer of full-time 
        employment in the private sector without good reason.''.
    (c) Funding.--
            (1) General rule.--Section 403(a) of such Act (42 U.S.C. 
        603(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (3); and
                    (B) by inserting after paragraph (3) the following:
            ``(4) in the case of any State, an amount equal to the sum 
        of 80 percent of the total amount expended during the quarter 
        for the operation and administration of a program under part F, 
        in accordance with the State plan approved under part F, and 80 
        percent of the total amount expended during the quarter for the 
        operation and administration of a community service program 
        under part G, in accordance with the State plan approved under 
        such part G, except that not more than 10 percent of the amount 
        payable to the State under this paragraph for the quarter may 
        be for expenditures made with respect to program participants 
        who are noncustodial parents and not eligible for aid under the 
        State plan; and''.
            (2) Rules applicable to the territories.--Section 403 of 
        such Act (42 U.S.C. 603) is amended by redesignating subsection 
        (b) as subsection (c) and by inserting after subsection (a) the 
        following:
    ``(b)(1) In lieu of any payment under subsection (a), the Secretary 
shall pay to each State with a plan approved under part F and to which 
section 1108 applies, with respect to expenditures by the State to 
carry out a program under part F (including expenditures for child care 
under section 402(g)(1)(A)), an amount equal to--
            ``(A) with respect to so much of such expenditures in a 
        fiscal year as do not exceed the State's expenditures in the 
        fiscal year 1987 with respect to which payments were made to 
        such State from its allotment for such fiscal year pursuant to 
        part C of this title as then in effect, 90 percent; and
            ``(B) with respect to so much of such expenditures in a 
        fiscal year as exceed the amount described in subparagraph 
        (A)--
                    ``(i) 50 percent, in the case of expenditures for 
                administrative costs made by a State in operating such 
                a program for such fiscal year (other than the 
                personnel costs for staff employed full-time in the 
                operation of such program) and the costs of 
                transportation and other work-related supportive 
                services under section 402(g)(2); and
                    ``(ii) the greater of 60 percent or the Federal 
                medical assistance percentage (as defined in section 
                1118), in the case of expenditures made by a State in 
                operating such a program for such fiscal year (other 
                than for costs described in clause (i)).
    ``(2) With respect to the amount for which payment is made to a 
State under paragraph (1)(A), the State's expenditures for the costs of 
operating a program established under part F may be in cash or in kind, 
fairly evaluated.
    ``(3) Not more than 10 percent of the amount payable to a State 
under this subsection for a quarter may be for expenditures made during 
the quarter with respect to program participants who are not eligible 
for aid under the State plan approved under part A.''.
    (d) Enforcement of Performance Standards.--Section 403 of such Act 
(42 U.S.C. 603) is amended by inserting after subsection (c) the 
following:
    ``(d) If the Secretary determines that the programs established by 
a State under parts F and G, as a whole, have failed for a fiscal year 
to meet the performance standards developed by the State under section 
481(13), the Secretary shall, notwithstanding subsection (a)(4) of this 
section, pay to the State an amount equal to the sum of 50 percent of 
the total amount expended during the fiscal year for the operation and 
administration of such programs in accordance with the State plans 
approved under parts F and G.''.
    (e) Conforming Amendments.--
            (1) Section 402(a) of the Social Security Act (42 U.S.C. 
        602(a)) is amended by striking paragraph (19).
            (2) Section 402(e)(2)(C) of such Act (42 U.S.C. 
        602(e)(2)(C)) is amended by striking ``403(b)'' and inserting 
        ``403(c)''.
            (3) Section 403(e) of such Act (42 U.S.C. 603(e)) is 
        amended by striking ``(b)(1)'' and inserting ``(c)(1)''.
            (4) Section 403 of such Act (42 U.S.C. 603) is amended by 
        striking subsections (k) and (l).
            (5) Section 407(b)(1)(B) of such Act (42 U.S.C. 
        607(b)(1)(B)) is amended--
                    (A) by adding ``and'' at the end of clause (iii);
                    (B) by striking ``; and'' at the end of clause (iv) 
                and inserting a period; and
                    (C) by striking clause (v).
            (6) Section 407(b)(2)(B)(ii)(I) of such Act (42 U.S.C. 
        607(b)(2)(B)(ii)(I)) is amended by striking ``under section 
        402(a)(19) or''.
            (7) Section 407(b)(2)(C) of such Act (42 U.S.C. 
        607(b)(2)(C)) is amended by striking ``section 402(a)(19) 
        and''.
            (8) Section 1115(b)(2)(A) of such Act (42 U.S.C. 
        1315(b)(2)(A)) is amended by striking ``, and 402(a)(19) 
        (relating to the work incentive program)''.
            (9) Section 1108 of such Act (42 U.S.C. 1308) is amended--
                    (A) in subsection (a), by striking ``or, in the 
                case of part A of title IV, section 403(k)''; and
                    (B) in subsection (d), by striking ``(exclusive of 
                any amounts on account of services and items to which, 
                in the case of part A of such title, section 403(k) 
                applies)''.
            (10) Section 1902(a)(19)(A)(i)(I) of such Act (42 U.S.C. 
        1396a(a)(19)(A)(i)(I)) is amended by striking ``482(e)(6)'' and 
        inserting ``486(f)''.
            (11) Section 1928(a)(1) of such Act (42 U.S.C. 1396s(a)(1)) 
        is amended by striking ``482(e)(6)'' and inserting ``486(f)''.
    (f) Intent of the Congress.--The Congress intends for State 
activities under section 484 of the Social Security Act (as added by 
the amendment made by section 301(b) of this Act) to emphasize the use 
of the funds that would otherwise be used to provide individuals with 
aid to families with dependent children under part A of title IV of the 
Social Security Act and with food stamp benefits under the Food Stamp 
Act of 1977, to subsidize the wages of such individuals in temporary 
jobs.

SEC. 302. REGULATIONS.

    The Secretary of Health and Human Services shall prescribe such 
regulations as may be necessary to implement the amendments made by 
this title.

SEC. 303. APPLICABILITY TO STATES.

    (a) State Option to Accelerate Applicability.--If a State formally 
notifies the Secretary of Health and Human Services that the State 
desires to accelerate the applicability to the State of the amendments 
made by this title, the amendments shall apply to the State on and 
after such earlier date as the State may select.
    (b) State Option to Delay Applicability Until Waivers Expire.--The 
amendments made by this title shall not apply to a State with respect 
to which there is in effect a waiver issued under section 1115 of the 
Social Security Act for the State program established under part F of 
title IV of such Act, until the waiver expires, if State formally 
notifies the Secretary of Health and Human Services that the State 
desires to so delay such effective date.
    (c) Authority of the Secretary of Health and Human Services to 
Delay Applicability to a State.--If a State formally notifies the 
Secretary of Health and Human Services that the State desires to delay 
the applicability to the State of the amendments made by this title, 
the amendments shall apply to the State on and after any later date 
agreed upon by the Secretary and the State.
    (d) Full Phase-in.--Effective October 1, 2005, section 488 of the 
Social Security Act is hereby repealed.

                  Subtitle B--Targeted Jobs Tax Credit

SEC. 311. INCREASE IN MINIMUM PERIOD OF EMPLOYMENT REQUIRED TO RECEIVE 
              CREDIT.

    (a) In General.--Paragraph (3) of section 51(i) of the Internal 
Revenue Code of 1986 (relating to certain individuals ineligible) is 
amended--
            (1) by striking ``90 days'' and inserting ``180 days'',
            (2) by striking ``14 days'' and inserting ``28 days'',
            (3) by striking ``120 hours'' and inserting ``240 hours'', 
        and
            (4) by striking ``20 hours'' and inserting ``40 hours''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to individuals who begin work for the employer after 
December 31, 1994.

 TITLE IV--FAMILY RESPONSIBILITY AND IMPROVED CHILD SUPPORT ENFORCEMENT

Subtitle A--Enhancement of Ability to Identify and Locate Noncustodial 
                                Parents

SEC. 401. EXPANSION OF FUNCTIONS OF FEDERAL PARENT LOCATOR SERVICE.

    (a) In General.--Section 453 of the Social Security Act (42 U.S.C. 
653) is amended--
            (1) in subsection (a), by striking ``enforcing support 
        obligations against such parent'' and inserting ``establishing 
        parentage, establishing, modifying, and enforcing child support 
        obligations, and enforcing child visitation rights and 
        responsibilities, and which shall use safeguards to prevent the 
        disclosure of information in cases that would jeopardize the 
        safety of the custodial parent or any child of the custodial 
        parent'';
            (2) in subsection (b), by inserting after the 2nd sentence 
        the following: ``Information with respect to an absent parent 
        shall not be disclosed to any person if the disclosure would 
        jeopardize the safety of the custodial parent or any child of 
        the custodial parent. Information with respect to an absent 
        parent shall not be disclosed to any person (other than the 
        custodial parent) unless the custodial parent has been notified 
        in advance of the disclosure.''; and
            (3) in subsection (d), by inserting ``and such reasonable 
        fees'' after ``such documents''.
    (b) Sense of the Congress.--It is the sense of the Congress that--
            (1) the denial of visitation rights under a child support 
        order should be treated as irrelevant in any action brought to 
        enforce the support provisions of the order; and
            (2) the failure to pay child support pursuant to a child 
        support order should be treated as irrelevant in any action 
        brought to enforce visitation rights under the order.

SEC. 402. EXPANSION OF DATA BASES ACCESSED BY PARENT LOCATOR SYSTEMS.

    (a) Additional Information for Federal Parent Locator Service.--
Section 453 of the Social Security Act (42 U.S.C. 653) is amended--
            (1) in subsection (b), by striking ``the most recent 
        address and place of employment'' and inserting ``the most 
        recent residential address, employer name and address, and 
        amounts and nature of income and assets'';
            (2) in subsection (c)(3), by striking ``the resident 
        parent'' and inserting ``either parent''; and
            (3) in subsection (e), by adding at the end the following:
    ``(4) The Secretary of the Treasury shall enter into an agreement 
with the Secretary to provide prompt access by the Secretary (in 
accordance with this subsection and section 6103(l)(6) of the Internal 
Revenue Code of 1986) to the quarterly estimated Federal income tax 
returns filed by individuals with the Internal Revenue Service.''.
    (b) State Information.--Section 466(a) of such Act (42 U.S.C. 
666(a)) is amended by inserting after paragraph (10) the following:
            ``(11) Procedures under which the State child support 
        enforcement agency shall have automated on-line or batch access 
        (or, if necessary, nonautomated access) to information 
        regarding residential addresses, employers and employer 
        addresses, income and assets, and medical insurance benefits 
        with respect to absent parents that is available through any 
        data base maintained by--
                    ``(A) any agency of the State or any political 
                subdivision thereof, that contains information on 
                residential addresses, or on employers and employer 
                addresses, as the State deems appropriate;
                    ``(B) any publicly regulated utility company 
                located in the State; and
                    ``(C) any credit reporting agency located in the 
                State.
    (c) Maintenance of State Child Support Order Registries.--Section 
466(a) of the Social Security Act (42 U.S.C. 666(a)), as amended by 
subsection (b) of this section, is amended by inserting after paragraph 
(11) the following:
            ``(12) Procedures under which the State child support 
        enforcement agency shall--
                    ``(A) maintain a child support order registry which 
                shall include a copy of each child support order, 
                issued or modified in the State after the date that is 
                30 years before the effective date of this paragraph; 
                and
                    ``(B) transmit a copy of each such order 
                electronically to the Office of Child Support 
                Enforcement.''.
    (d) Maintenance of Federal Child Support Order Registry.--Section 
452(a) of such Act (42 U.S.C 652(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of the 2nd sentence 
        of paragraph (10) and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(11) maintain a registry of all child support orders 
        transmitted pursuant to section 466(a)(12)(B).''.
    (e) Sense of the Congress.--It is the sense of the Congress that 
the Secretary of Health and Human Services should investigate, pursuant 
to section 453(e) of the Social Security Act, accessing Federal data 
banks that are not linked to the Parent Locator Service which are more 
than marginally useful in locating absent parents.

SEC. 403. NATIONAL PARENT LOCATOR NETWORK.

    (a) Establishment.--Section 453 of the Social Security Act (42 
U.S.C. 653) is amended by adding at the end the following:
    ``(g) The Secretary shall expand the Parent Locator Service to 
establish a national network based on the comprehensive statewide child 
support enforcement systems developed by the States, to--
            ``(1) allow each State to--
                    ``(A) locate any absent parent who owes child 
                support, for whom a child support obligation is being 
                established, or for whom an order for visitation is 
                being enforced, by--
                            ``(i) accessing the records of other State 
                        agencies and sources of locate information 
                        directly from one computer system to another; 
                        and
                            ``(ii) accessing Federal sources of locate 
                        information in the same fashion;
                    ``(B) access the files of other States to determine 
                whether there are other child support orders and obtain 
                the details of those orders;
                    ``(C) provide for both on-line and batch processing 
                of locate requests, with on-line access restricted to 
                cases in which the information is needed immediately 
                (for such reasons as court appearances) and batch 
                processing used to `troll' data bases to locate 
                individuals or update information periodically; and
                    ``(D) direct locate requests to individual States 
                or Federal agencies, broadcast requests to selected 
                States, or broadcast cases to all States when there is 
                no indication of the source of needed information;
            ``(2) provide for a maximum of 48-hour turnaround time for 
        information to be broadcast and returned to a requesting State;
            ``(3) provide ready access to courts of the information on 
        the network by location of a computer terminal in each court; 
        and
            ``(4) access the registry of child support orders for 
        public and private cases maintained at the State level by the 
        State agencies as described in section 466(a)(12).''.
    (b) Expanded State Interaction With National Network.--Section 
454(16) of such Act (42 U.S.C. 654(16)) is amended--
            (1) by striking ``and (E)'' and inserting ``(E)''; and
            (2) by striking ``enforcement;'' and inserting 
        ``enforcement, and (F) to provide access to the national 
        network developed pursuant to section 453(g);''.
    (c) Sense of the Congress.--It is the sense of the Congress that 
the national network established under section 453(g) of the Social 
Security Act should be used to access State records only through the 
agency that administers the State plan approved under part D of title 
IV of such Act.

SEC. 404. PRIVATE ACCESS TO LOCATE AND ENFORCEMENT SERVICES.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by section 402 of this Act, is amended by inserting after 
paragraph (12) the following:
            ``(13)(A) Procedures under which private attorneys and pro 
        se obligees must be given access to State locate resources and 
        through enforcement techniques of the State child support 
        enforcement agency, for the purpose of establishing, modifying, 
        and enforcing child support, visitation, and parentage orders, 
        in accordance with safeguards established--
                    ``(i) to provide the custodial parent advance 
                notice of any release of information with respect to a 
                noncustodial parent; and
                    ``(ii) to prevent release of information with 
                respect to a noncustodial parent if the release may 
                jeopardize the safety of the noncustodial parent, the 
                custodial parent, or any child of either parent; and
            ``(B) The procedures described in subparagraph (A) must 
        require the State--
                    ``(i) to develop and publish guidelines 
                implementing the safeguards described in subparagraph 
                (A); and
                    ``(ii) if the State provides for reasonable fees 
                for the access referred to in subparagraph (A), to 
                establish such fees in accordance with guidelines 
                developed and published by the State that set schedules 
                for such fees.''.

                  Subtitle B--Paternity Establishment

SEC. 411. SENSE OF THE CONGRESS.

    It is the sense of the Congress that social services should be 
provided in hospitals to women who have become pregnant as a result of 
rape or incest.

SEC. 412. AVAILABILITY OF PARENTING SOCIAL SERVICES FOR NEW FATHERS.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 402 and 404 of this Act, is amended by inserting 
after paragraph (13) the following:
            ``(14) Procedures for providing new fathers with positive 
        parenting counseling that stresses the importance of paying 
        child support in a timely manner, in accordance with 
        regulations prescribed by the Secretary.''.

SEC. 413. AFDC BENEFITS CONDITIONED ON COOPERATION IN IDENTIFYING 
              NONCUSTODIAL PARENT.

    (a) In General.--Section 402(a)(26)(B) of the Social Security Act 
(42 U.S.C. 602(a)(26)(B)) is amended--
            (1) in clause (i), by inserting ``unless (in accordance 
        with regulations prescribed by the Secretary, the State finds 
        that the child was born as a result of rape or incest), or 
        unless the applicant or recipient reasonably believes that such 
        cooperation would endanger herself or her child and 
        demonstrates such belief through such documentation as a police 
        report, a restraining order, or an affidavit from a social 
        service provider, except that, if there is no such 
        documentation, the State shall provide the applicant or 
        recipient with information about available social service 
        agencies that will evaluate claims of prior or potential 
        harm,'' after the comma;
            (2) by inserting ``and, in either case, such cooperation 
        shall include the provision of the full name, the last known 
        telephone number and address, the name of the last known 
        employer, the name of the closest living relative (or, if there 
        is no known relative, an acquaintance), and the social security 
        account number of any noncustodial parent of such child, and 
        the name of any State in which any such noncustodial parent was 
        known to be licensed to operate a motor vehicle,'' before 
        ``unless'' the 1st place such term appears; and
            (3) by inserting ``, except that the applicant or recipient 
        shall not be found to have such good cause unless the applicant 
        or recipient demonstrates that the applicant or recipient 
        failed to obtain such information despite an earnest attempt to 
        do so'' before the 1st semicolon.
    (b) Sense of the Congress.--It is the sense of the Congress that 
States should implement methods for the immediate verification of 
information provided by applicants and recipients of aid to families 
with dependent children that might serve to identify and locate 
noncustodial parents of the children with respect to whom such aid is 
claimed.

SEC. 414. INCREASE IN PASS-THROUGH OF COLLECTED CHILD SUPPORT TO AFDC 
              RECIPIENTS.

    (a) In General.--Section 457(b)(1) of the Social Security Act (42 
U.S.C. 657(b)(1)) is amended by striking ``$50'' each place such term 
appears and inserting ``$100''.
    (b) Conforming Amendment.--Section 402(a)(8)(A)(vi) of such Act (42 
U.S.C. 602(a)(8)(A)(vi)) is amended by striking ``$50'' each place such 
term appears and inserting ``$100''.

  Subtitle C--Improvement of Child Support Order Establishment Process

SEC. 421. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``National Child Support Guidelines Commission'' (in this 
section referred to as the ``Commission'').
    (b) General Duties.--The Commission shall convene a conference to 
study the desirability of a national child support guideline, and if 
such guideline is advisable, the Commission shall develop for 
congressional consideration a national child support guideline that is 
based on the conference's study of various guideline models, the 
deficiencies of such models, and any needed improvements, taking into 
consideration differences in the cost of living in different areas of 
the United States. In developing such guideline, the Commission shall 
consider indexing the guideline to the cost of living, specifying 
minimum (rather than maximum) amounts, or using other methodologies to 
reflect such differences.
    (c) Membership.--
            (1) Number; appointment.--
                    (A) In general.--The Commission shall be composed 
                of 9 individuals appointed jointly by the Secretary of 
                Health and Human Services and the Congress, not later 
                than January 15, 1995.
                    (B) Qualifications of members.--Members of the 
                Commission shall be appointed from among those who are 
                able to provide expertise and experience in the 
                evaluation and development of child support guidelines.
            (2) Terms of office.--Each member shall be appointed for a 
        term of 2 years. A vacancy in the Commission shall be filled in 
        the manner in which the original appointment was made.
    (d) Commission Powers, Compensation, Access to Information, and 
Supervision.--The first sentence of subparagraph (C), the first and 
third sentences of subparagraph (D), subparagraph (F) (except with 
respect to the conduct of medical studies), clauses (ii) and (iii) of 
subparagraph (G), and subparagraph (H) of section 1886(e)(6) of the 
Social Security Act shall apply to the Commission in the same manner in 
which such provisions apply to the Prospective Payment Assessment 
Commission.
    (e) Report.--Not later than 2 years after the appointment of 
members, the Commission shall submit to the President, the Committee on 
Ways and Means of the House of Representatives, and the Committee on 
Finance of the Senate, a report on the results of the study described 
in subsection (b) and the final assessment by the Commission of issues 
relating to a national child support guideline.
    (f) Termination.--The Commission shall terminate upon the 
submission of the report described in subsection (e).

                 Subtitle D--Child Support Enforcement

SEC. 431. NATIONAL REPORTING OF NEW HIRES AND CHILD SUPPORT 
              INFORMATION.

    (a) Federal Implementation of System.--
            (1) In general.--The Secretary of the Treasury, in 
        consultation with the Secretary of Labor, shall establish a 
        system of reporting of new employees by requiring employers to 
        provide a copy of every new employee's W-4 form to the 
        employment security agency of the State in which the employment 
        is located.
            (2) Expanded use of form.--The Secretary of the Treasury 
        shall modify the W-4 form to be completed by a new employee to 
        enable the employee to indicate on the form--
                    (A) whether the employee owes child support, and if 
                so--
                            (i) to whom the support is payable and the 
                        amount of the support payable; and
                            (ii) whether the support is to be paid 
                        through wage withholding; and
                    (B) whether health care insurance is available to 
                the new employee, and, if so, whether the new employee 
                has obtained such insurance for the dependent children 
                of the new employee.
            (3) Employer withholding obligation.--
                    (A) In general.--Subtitle C of the Internal Revenue 
                Code of 1986 (relating to employment taxes) is amended 
                by inserting after chapter 24 the following new 
                chapter:

  ``CHAPTER 24A--COLLECTION OF CHILD SUPPORT OBLIGATIONS AT SOURCE ON 
                                 WAGES

                              ``Sec. 3411. Child support obligations 
                                        collected at source.

``SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT SOURCE.

    ``(a) Requirement of Withholding.--Every employer making payment of 
wages shall deduct and withhold upon such wages a specified child 
support obligation amount.
    ``(b) Specified Child Support Obligation Amount.--For purposes of 
this chapter, the specified child support obligation amount with 
respect to any employee shall be determined based on--
            ``(1) information provided by the employee, or (if an 
        agency of the State in which the employer is located notifies 
        the employer that such information is inaccurate) information 
        provided by the agency; and
            ``(2) information contained in any wage withholding order 
        received by the employer from any State.
    ``(c) Liability for Payment.--The employer shall be liable for the 
payment of the specified child support obligation amount to the payee 
identified by the employee.
    ``(d) Special Rules.--For purposes of this chapter (and so much of 
subtitle F as relates to this chapter), any specified child support 
obligation amount shall be treated as if it were a tax withheld under 
chapter 24 and rules similar to the rules of such chapter shall 
apply.''.
                    (B) Clerical amendment.--The table of chapters of 
                subtitle C of the Internal Revenue Code of 1986 is 
                amended by inserting after the item relating to chapter 
                24 the following new item:
                              ``Chapter 24A. Child support obligations 
                                        collected at source.''.
            (4) Withheld child support obligations reported on w-2 
        forms.--Subsection (a) of section 6051 of the Internal Revenue 
        Code of 1986 (relating to receipts for employees) is amended by 
        striking ``and'' at the end of paragraph (8), by striking the 
        period at the end of paragraph (9) and inserting ``, and'', and 
        by inserting after paragraph (9) the following new paragraph:
            ``(10) the total amount of specified child support 
        obligations withheld under section 3411.''.
    (b) State Implementation of System.--Section 466(a) of the Social 
Security Act (42 U.S.C. 666(a)), as amended by sections 402, 404, and 
412 of this Act, is amended by inserting after paragraph (14) the 
following:
            ``(15) Procedures under which the State shall--
                    ``(A) use the Parent Locator Service established 
                under section 453 to access information in the national 
                registry of child support orders maintained pursuant to 
                section 452(a)(11) with respect to new employee, 
                compare such information with the information reported 
                on W-4 forms of new employees, and identify child 
                support obligations not reported on such forms;
                    ``(B) if child support information from the W-4 
                form of a new employee agrees with information with 
                respect to the new employee in the national registry of 
                child support orders maintained pursuant to section 
                452(a)(11), notify the individual owed the support (or 
                the individual's designee) of such information;
                    ``(C) notify an employer of any new employee who 
                has not reported on the W-4 form a child support 
                obligation of the new employee, using the wage 
                withholding order developed under section 452(a)(12);
                    ``(D) impose monetary penalties on--
                            ``(i) any individual who owes child support 
                        and fails to report the obligation to provide 
                        the support on a Federal income tax W-4 form at 
                        time of employment;
                            ``(ii) any employer who fails to forward a 
                        W-4 form for a new employee to the State 
                        employment security agency within 10 calendar 
                        days of the date of the first payroll from 
                        which the new employee is paid; and
                            ``(iii) any employer who fails to withhold 
                        from the pay of any new employee who reports a 
                        child support obligation on a W-4 form an 
                        amount equal to the support owed, or fails to 
                        pay to the individual owed the obligation the 
                        amount so withheld, within 10 calendar days of 
                        the date of the payroll, using electronic funds 
                        transfer, if possible, unless otherwise 
                        notified by a State agency;
                    ``(E) provide the services described in this 
                paragraph to any individual owed child support who 
                applies for assistance under the State plan; and
                    ``(F) on request of another State, broadcast over 
                the Parent Locator Service to such other State child 
                support information from W-4 forms that have been sent 
                to the State employment security agency.''.
    (c) Uniform Withholding Order.--Section 452(a) of the Social 
Security Act (42 U.S.C. 652(a)), as amended by section 402(d) of this 
Act, is amended--
            (1) by striking ``and'' at the end of paragraph (10);
            (2) by striking the period at the end of paragraph (11) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (11) the following:
            ``(12) develop a uniform order to be used in all cases in 
        which income is to be withheld for the payment of child 
        support, which shall contain the name of the individual whose 
        income is to be withheld, the number of children covered by the 
        order, and the individual or State to whom the withheld income 
        is to be paid, and be generic to allow for the service of the 
        order on all sources of income.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1995.

SEC. 432. CERTAIN BENEFITS SUBJECT TO GARNISHMENT.

    (a) Federal Death Benefits, Black Lung Benefits, and Veterans 
Benefits.--Section 462(f)(2) of the Social Security Act (42 U.S.C. 
662(f)(2)) is amended by striking ``(not including'' and all that 
follows through ``compensation)''.
    (b) Workers' Compensation.--Section 462(f) of such Act (42 U.S.C. 
662(f)) is amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``, or''; and
            (3) by adding at the end the following:
            ``(3) workers' compensation benefits.''.

SEC. 433. SEIZURE OF LOTTERY WINNINGS, SETTLEMENTS, PAYOUTS, AWARDS, 
              AND BEQUESTS, AND SALE OF FORFEITED PROPERTY, TO PAY 
              CHILD SUPPORT ARREARAGES.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 402, 404, 412, and 431(b) of this Act, is amended 
by inserting after paragraph (15) the following:
            ``(16) Procedures, in addition to other income withholding 
        procedures, under which a lien is imposed against property with 
        the following effect:
                    ``(A) The distributor of the winnings from a State 
                lottery or State-sanctioned or tribal-sanctioned 
                gambling house or casino shall--
                            ``(i) suspend payment of the winnings from 
                        the person otherwise entitled to the payment 
                        until an inquiry is made to and a response is 
                        received from the State child support 
                        enforcement agency as to whether the person 
                        owes a child support arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(B) The person required to make a payment under a 
                policy of insurance or a settlement of a claim made 
                with respect to the policy shall--
                            ``(i) suspend the payment until an inquiry 
                        is made to and a response received from the 
                        agency as to whether the person otherwise 
                        entitled to the payment owes a child support 
                        arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(C) The payor of any amount pursuant to an award, 
                judgment, or settlement in any action brought in 
                Federal or State court shall--
                            ``(i) suspend the payment of the amount 
                        until an inquiry is made to and a response is 
                        received from the agency as to whether the 
                        person otherwise entitled to the payment owes a 
                        child support arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(D) If the State seizes property forfeited to the 
                State by an individual by reason of a criminal 
                conviction, the State shall--
                            ``(i) hold the property until an inquiry is 
                        made to and a response is received from the 
                        agency as to whether the individual owes a 
                        child support arrearage; and
                            ``(ii) if there is such an arrearage, sell 
                        the property and, after satisfying the claims 
                        of all other private or public claimants to the 
                        property and deducting from the proceeds of the 
                        sale the attendant costs (such as for towing, 
                        storage, and the sale), pay the lesser of the 
                        remaining proceeds or the amount of the 
                        arrearage directly to the agency for 
                        distribution.
                    ``(E) Any person required to make a payment in 
                respect of a decedent shall--
                            ``(i) suspend the payment until an inquiry 
                        is made to and a response received from the 
                        agency as to whether the person otherwise 
                        entitled to the payment owes a child support 
                        arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.''.

SEC. 434. REPORTING OF CHILD SUPPORT ARREARAGES TO CREDIT BUREAUS.

    Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended--
            (1) by inserting ``(A)'' after ``(7)'';
            (2) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively; and
            (3) by adding after and below the end the following:
            ``(B) Procedures requiring any court or administrative 
        agency of the State, at the time the court or agency issues or 
        modifies a child support order, to report to each consumer 
        reporting agency (as so defined)--
                    ``(i) the name of the individual on whom the order 
                imposes an obligation to pay child support pursuant to 
                the order; and
                    ``(ii) the amount of the obligation.''.

SEC. 435. LIABILITY OF GRANDPARENTS FOR FINANCIAL SUPPORT OF CHILDREN 
              OF THEIR MINOR CHILDREN.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 402, 404, 412, 431(b), and 433 of this Act, is 
amended by inserting after paragraph (16) the following:
            ``(17) Procedures under which each parent of an individual 
        who has not attained 18 years of age is liable for the 
        financial support of any child of the individual to the extent 
        that the individual is unable to provide such support. The 
        preceding sentence shall not apply to the State if the State 
        plan explicitly provides for such inapplicability.''.

SEC. 436. SENSE OF THE CONGRESS REGARDING PROGRAMS FOR NONCUSTODIAL 
              PARENTS UNABLE TO MEET CHILD SUPPORT OBLIGATIONS.

    It is the sense of the Congress that the States should develop 
programs, such as the program of the State of Wisconsin known as the 
``Children's First Program'', that are designed to work with 
noncustodial parents who are unable to meet their child support 
obligations.

              TITLE V--TEEN PREGNANCY AND FAMILY STABILITY

                        Subtitle A--Federal Role

SEC. 501. STATE OPTION NOT TO DENY AFDC FOR ADDITIONAL CHILDREN.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 101, 102(a), 211(a), 224, 232, 243(a), and 301(a) 
of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (51);
            (2) by striking the period at the end of paragraph (52) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (52) the following:
            ``(53)(A) provide that, notwithstanding paragraph (7)(A), 
        the needs of a child shall not be taken into account in making 
        the determination under paragraph (7) with respect to the 
        family of the child if the child was born (other than as a 
        result of rape or incest) to a member of the family--
                    ``(i) while the family was a recipient of aid under 
                the State plan; or
                    ``(ii) during the 6-month period ending with the 
                date the family applied for such aid; except that
            ``(B) subparagraph (A) shall not apply to the State if the 
        State plan explicitly provides for such inapplicability.''.

SEC. 502. MINORS RECEIVING AFDC REQUIRED TO LIVE UNDER RESPONSIBLE 
              ADULT SUPERVISION.

    Section 402(a)(43) of the Social Security Act (42 U.S.C. 
602(a)(43)) is amended--
            (1) by striking ``at the option of the State,''; and
            (2) by striking ``18'' and inserting ``19''.

SEC. 503. TASK FORCE TO REDUCE TEENAGE PREGNANCY.

    The Secretary of Education, in conjunction with the Secretary of 
Health and Human Services, shall establish a task force to--
            (1) educate children regarding the risks involved in 
        choosing parenthood at an early age;
            (2) ensure that every potential parent is given the 
        opportunity to avoid unintended births through reproductive 
        family planning and education;
            (3) encourage States to use funds received under title XX 
        of the Social Security Act for comprehensive services to youth 
        in high risk areas through community organizations, and 
        schools; and
            (4) encourage States to work with schools for the early 
        identification and referral of children at risk for parenthood 
        at an early age.

SEC. 504. INCENTIVE FOR TEEN PARENTS TO ATTEND SCHOOL.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 101, 102(a), 211(a), 224, 232, 243(a), 301(a), and 
501 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (52);
            (2) by striking the period at the end of paragraph (53) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (53) the following:
            ``(54) provide that the amount of aid otherwise payable 
        under the plan for a month to a family that includes a parent 
        who has not attained 20 years of age and has not completed 
        secondary school (or received a certificate of high school 
        equivalency) shall be--
                    ``(A) reduced by 25 percent if, during the 
                immediately preceding month, the parent has failed 
                without good cause (as defined by the State in 
                consultation with the Secretary) to maintain minimum 
                attendance (as defined by the State in consultation 
                with the Secretary) at an educational institution; or
                    ``(B) increased by 25 percent if, during the 
                immediately preceding month, the parent has maintained 
                minimum attendance (as defined by the State in 
                consultation with the Secretary) at an educational 
                institution.''.

SEC. 505. STATE OPTION TO DISREGARD 100-HOUR RULE UNDER AFDC-UP 
              PROGRAM.

    Section 407(a) of the Social Security Act (42 U.S.C. 607(a)) is 
amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:
    ``(2) A standard prescribed pursuant to paragraph (1) that imposes 
a limit on the amount of time during which a parent who is the 
principal earner in a family in which both parents are married may be 
employed during a month shall not apply to a State if the State plan 
under this part explicitly provides for such inapplicability.''.

SEC. 506. STATE OPTION TO DISREGARD 6-MONTH LIMITATION ON AFDC-UP 
              BENEFITS.

    Section 407(b)(2)(B) of the Social Security Act (42 U.S.C. 
607(b)(2)(B)) is amended by adding at the end the following:
    ``(iv) A regulation prescribed by the Secretary that limits the 
length of time with respect to which a family of a dependent child in 
which both parents are married may receive aid to families with 
dependent children by reason of this section shall not apply to a State 
if the State plan under this part explicitly provides for such 
inapplicability.''.

SEC. 507. ELIMINATION OF QUARTERS OF COVERAGE REQUIREMENT UNDER AFDC-UP 
              PROGRAM FOR FAMILIES IN WHICH BOTH PARENTS ARE TEENS.

    Section 407(b)(1)(A)(iii) of the Social Security Act (42 U.S.C. 
607(b)(1)(A)(iii)) is amended by striking ``(iii)(I)'' and inserting 
``(iii) neither of the child's parents have attained 20 years of age, 
and (I)''.

                         Subtitle B--State Role

SEC. 511. TEENAGE PREGNANCY PREVENTION AND FAMILY STABILITY.

    (a) Findings.--The Congress finds that--
            (1) long-term welfare dependency is increasing driven by 
        illegitimate births;
            (2) too many teens are becoming parents and too few are 
        able to responsibly care for and nurture their children;
            (3) new research has shown that spending time in a single-
        parent family puts children at substantially increased risk of 
        dropping out of high school, having a child out-of-wedlock, or 
        being neither in school nor at work; and
            (4) between 1986 and 1991, the rate of births to teens aged 
        15 to 19 rose 24 percent, from 50.2 to 62.1 births per 1,000 
        females.
    (b) Sense of the Congress.--It is the sense of the Congress that--
            (1) children should be educated about the risks involved in 
        choosing parenthood at an early age;
            (2) reproductive family planning and education should be 
        made available to every potential parent so as to give such 
        parents the opportunity to avoid unintended births;
            (3) States should use funds provided under title XX of the 
        Social Security Act to provide comprehensive services to youth 
        in high risk neighborhoods, through community organizations, 
        churches, and schools; and
            (4) States should work with schools for the early 
        identification and referral of children at risk for parenthood 
        at an early age.

SEC. 512. AVAILABILITY OF FAMILY PLANNING SERVICES.

    Section 402(a)(15)(A) of the Social Security Act (42 U.S.C. 
602(a)(15)(A)) is amended by striking ``out of wedlock''.

                    TITLE VI--PROGRAM SIMPLIFICATION

                Subtitle A--Increased State Flexibility

SEC. 601. STATE OPTION TO PROVIDE AFDC THROUGH ELECTRONIC BENEFIT 
              TRANSFER SYSTEMS.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 101, 102(a), 211(a), 224, 232, 243(a), 301(a), 501, 
and 504 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (53);
            (2) by striking the period at the end of paragraph (54) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (54) the following:
            ``(55) at the option of the State, provide for the payment 
        of aid under the State plan through the use of electronic 
        benefit transfer systems.''.

SEC. 602. DEADLINE FOR ACTION ON APPLICATION FOR WAIVER OF REQUIREMENT 
              APPLICABLE TO PROGRAM OF AID TO FAMILIES WITH DEPENDENT 
              CHILDREN.

    Section 1115 of the Social Security Act (42 U.S.C. 1315) is amended 
by adding at the end the following:
    ``(e) The Secretary shall approve or deny an application for a 
waiver under this section with respect to a requirement of section 402, 
not later than 90 days after the Secretary receives the application, 
unless otherwise agreed upon by the Secretary and the applicant.''.

        Subtitle B--Coordination of AFDC and Food Stamp Programs

SEC. 611. AMENDMENTS TO PART A OF TITLE IV OF THE SOCIAL SECURITY ACT.

    (a) State Option to Use Income and Eligibility Verification 
System.--Section 1137(b) of the Social Security Act (42 U.S.C. 1320b-
7(b)) is amended--
            (1) by striking paragraphs (1) and (4), and redesignating 
        paragraphs (2), (3), and (5) as paragraphs (1), (2), and (3), 
        respectively; and
            (2) in paragraph (2) (as so redesignated), by adding ``or'' 
        at the end.
    (b) State Option to use Retrospective Budgeting Without Monthly 
Reporting.--Section 402(a)(13) of such Act (42 U.S.C. 602(a)(13)) is 
amended--
            (1) by striking all that precedes subparagraph (A) and 
        inserting the following:
            ``(13) provide, at the option of the State and with respect 
        to such category or categories as the State may select and 
        identify in the State plan, that--''; and
            (2) in each of subparagraphs (A) and (B), by striking ``, 
        in the case of families who are required to report monthly to 
        the State agency pursuant to paragraph (14)''.
    (c) Exclusion From Income of All Income of Dependent Child who is a 
Student.--Section 402(a)(8)(A)(i) of such Act (42 U.S.C. 
602(a)(8)(A)(i)) is amended--
            (1) by striking ``earned''; and
            (2) by inserting ``applying for or'' before ``receiving''.
    (d) Exclusion From Income of Energy Assistance Payments Based on 
Need.--Section 402(a)(8)(A) of such Act (42 U.S.C. 602(a)(8)(A)), as 
amended by sections 231 and 242(b)(1) of this Act, is amended--
            (1) by striking ``and'' at the end of clause (ix); and
            (2) by adding at the end the following:
                    ``(xi) shall disregard any energy or utility-cost 
                assistance payment based on need, that is paid to any 
                member of the family under--
                            ``(I) a State or local general assistance 
                        program; or
                            ``(II) another basic assistance program 
                        comparable to general assistance (as determined 
                        by the Secretary); and''.
    (e) Applicability to AFDC of Future Income Exclusions Under Food 
Stamp Program.--Section 402(a)(8)(A) of such Act (42 U.S.C. 
602(a)(8)(A)), as amended by sections 231 and 242(b)(1) of this Act and 
by subsection (d) of this section, is amended--
            (1) by striking ``and'' at the end of clause (x); and
            (2) by adding at the end the following:
                    ``(xii) shall disregard from the income of any 
                child, relative, or other individual described in 
                clause (ii) applying for aid under the State plan, any 
                child, relative, or other individual so described 
                receiving such aid, or both, any funds that a Federal 
                statute (enacted after the date of the enactment of 
                this clause) excludes from income for purposes of 
                determining eligibility for benefits under the food 
                stamp program under the Food Stamp Act of 1977, the 
                level of benefits under the program, or both, 
                respectively.''.
    (f) Exclusion of Earnings From State Training Programs Under the 
Job Training Partnership Act.--Section 402(a)(8)(A)(v) of such Act (42 
U.S.C. 602(a)(8)(A)(v)) is amended to read as follows:
                    ``(v) with respect to earned income from an on-the-
                job training program under section 204(b)(1)(C) or 
                264(c)(1)(A) of the Job Training Partnership Act--
                            ``(I) shall disregard such earned income 
                        received by any dependent child applying for or 
                        receiving aid to families with dependent 
                        children; and
                            ``(II) notwithstanding section 142(b) of 
                        the Job Training Partnership Act, shall not 
                        disregard such earned income received by any 
                        other individual (living in the same home as 
                        the dependent child) whose needs are taken into 
                        account in making such determination;''.
    (g) Use of Food Stamp Program Lump-Sum Payment Rule.--Section 
402(a)(17) of such Act (42 U.S.C. 602(a)(17)) is amended by inserting 
``(excluding income tax refunds, rebates, or credits, cash donations 
based on need that are received from 1 or more private nonprofit 
charitable organizations, but not in excess of $300 in the aggregate in 
a quarter, retroactive lump-sum social security or railroad retirement 
pension payments and retroactive lump-sum insurance settlements)'' 
after ``unearned income''.
    (h) Periodic Reviews.--Section 402(a) of such Act (42 U.S.C. 
602(a)), as amended by sections 101, 102(a), 211(a), 224, 232, 243(a), 
301(a), 501, 504, and 601 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (54);
            (2) by striking the period at the end of paragraph (55) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (55) the following:
            ``(56) provide that the State shall, not less frequently 
        than annually review each determination made under the State 
        plan with respect to the eligibility of each recipient of aid 
        under the State plan;''.
    (i) Exclusion From Resources of Essential Employment-Related 
Property.--Section 402(a)(7)(B) of such Act (42 U.S.C. 602(a)(7)(B)), 
as amended by section 242(a) of this Act, is amended--
            (1) by striking ``or'' at the end of clause (iv); and
            (2) by inserting ``, or (vi) the value of real and tangible 
        personal property (other than currency, commercial paper, and 
        similar property) of a family member that is essential to the 
        employment or self-employment of the member, until the 
        expiration of the 1-year period beginning on the date the 
        member ceases to be so employed or so self-employed'' before 
        the semicolon.
    (j) Exclusion From Resources of Equity in Certain Income-Producing 
Real Property.--Section 402(a)(7)(B) of such Act (42 U.S.C. 
602(a)(7)(B)), as amended by section 242(a) of this Act and by 
subsection (i) of this section, is amended--
            (1) by striking ``or'' at the end of clause (v); and
            (2) by inserting ``, or (vii) the equity of any member of 
        the family in real property to which 1 or more members of the 
        family have sole and clear title, that the State agency 
        determines is producing income consistent with the fair market 
        value of the property'' before the semicolon.
    (k) Exclusion From Resources of Life Insurance Policies.--Section 
402(a)(7)(B) of such Act (42 U.S.C. 602(a)(7)(B)), as amended by 
section 242(a) of this Act and by subsections (i) and (j) of this 
section, is amended--
            (1) by striking ``or'' at the end of clause (vi); and
            (2) by inserting ``, or (viii) any life insurance policy'' 
        before the semicolon.
    (l) Exclusion From Resources of Real Property That the Family Is 
Making a Good Faith Effort to Sell.--Section 402(a)(7)(B)(iii) of such 
Act (42 U.S.C. 602(a)(7)(B)(iii)) is amended--
            (1) by striking ``for such period or periods of time as the 
        Secretary may prescribe''; and
            (2) by striking ``any such period'' and inserting ``any 
        period during which the family is making such an effort''.
    (m) Prompt Restoration of Benefits Wrongfully Denied.--Section 
402(a) of such Act (42 U.S.C. 602(a)), as amended by sections 101, 
102(a), 211(a), 224, 232, 243(a), 301(a), 501, 504, and 601 of this Act 
and by subsection (h) of this section, is amended--
            (1) by striking ``and'' at the end of paragraph (55);
            (2) by striking the period at the end of paragraph (56) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (56) the following:
            ``(57) provide that, upon receipt of a request from a 
        family for the payment of any amount of aid under the State 
        plan the payment of which to the family has been wrongfully 
        denied or terminated, the State shall promptly pay the amount 
        to the family if the wrongful denial or termination occurred 
        not more than 1 year before the date of the request or the date 
        the State agency is notified or otherwise discovers the 
        wrongful denial or termination.''.

SEC. 612. AMENDMENTS TO THE FOOD STAMP ACT OF 1977.

    (a) Certification Period.--(1) Section 3(c) of the Food Stamp Act 
of 1977 (7 U.S.C. 2012(c)) is amended to read as follows:
    ``(c) `Certification period' means the period specified by the 
State agency for which households shall be eligible to receive 
authorization cards, except that such period shall be--
            ``(1) 24 months for households in which all adult members 
        are elderly or disabled; and
            ``(2) not more than 12 months for all other households.''.
    (2) Section 6(c)(1)(C) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(c)(1)(C)) is amended--
            (A) in clause (ii) by adding ``and'' at the end;
            (B) in clause (iii) by striking ``; and'' at the end and 
        inserting a period; and
            (C) by striking clause (iv).
    (b) Exclusion of Certain JTPA Income.--Section 5(d) of the Food 
Stamp Act of 1977 (7 U.S.C. 2014(d)) is amended--
            (1) by striking ``and (16)'' and inserting ``(16)''; and
            (2) by inserting before the period the following:
``, and (17) income received under the Job Training Partnership Act by 
a household member who is less than 19 years of age''.
    (c) Exclusion of Educational Assistance From Income.--Section 
5(d)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)(3)) is amended 
to read as follows: ``(3) all educational loans on which payment is 
deferred (including any loan origination fees or insurance premiums 
associated with such loans), grants, scholarships, fellowships, 
veterans' educational benefits, and the like awarded to a household 
member enrolled at a recognized institution of post-secondary 
education, at a school for the handicapped, in a vocational education 
program, or in a program that provides for completion of a secondary 
school diploma or obtaining the equivalent thereof,''.
    (d) Limitation on Additional Earned Income Deduction.--The 3rd 
sentence of section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(e)) is amended by striking ``that a household'' and all that 
follows through ``report'', and inserting ``determining an overissuance 
due to the failure of a household to report earned income''.
    (e) Shelter Expense Deduction.--Section 5(e) of the Food Stamp Act 
of 1977 (7 U.S.C. 2014(e)) is amended--
            (1) by amending paragraph (2) of the 4th sentence to read 
        as follows:``(2) a shelter expense deduction for the monthly 
        amount expended by a household for shelter'';
            (2) by striking the 5th and 6th sentences and inserting the 
        following:``In computing the shelter expense deduction, a State 
        may use a standard shelter expense deduction based on the 
        actual shelter expenses incurred monthly by all households in 
        the State in the preceding year, except that the shelter 
        expense deduction shall be the actual shelter expense incurred 
        monthly by a household if such household is located in public 
        housing or verifies that it incurred shelter expenses monthly 
        in excess of the amount of such standard shelter expense.'';
            (3) in the 7th sentence by striking ``excess''; and
            (4) in the last sentence by striking ``excess''.
    (f) Repeal of Excess Medical Expense Deduction.--Section 5(e) of 
the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) is amended--
            (1) in the 15th sentence--
                    (A) by striking subparagraph (A); and
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively; and
            (2) by striking the 16th and 17th sentences.
    (g) Exclusion of Essential Employment-Related Property.--Section 
5(g)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(3)) is amended 
to read as follows:
    ``(3) The value of real and tangible personal property (other than 
currency, commercial paper, and similar property) of a household member 
that is essential to the employment or self-employment of such member 
shall be excluded by the Secretary from financial resources until the 
expiration of the 1-year period beginning on the date such member 
ceases to be so employed or so self-employed.''.
    (h) Exclusion of Life Insurance Policies.--Section 5(g) of the Food 
Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by adding at the end 
the following:
    ``(6) The Secretary shall exclude from financial resources the cash 
value of any life insurance policy owned by a member of a household.''.
    (i) In-Tandem Exclusions From Income.--Section 5 of the Food Stamp 
Act of 1977 (7 U.S.C. 2014) is amended by adding at the end the 
following:
    ``(n) Whenever a Federal statute enacted after the date of the 
enactment of this Act excludes funds from income for purposes of 
determining eligibility, benefit levels, or both under State plans 
approved under part A of title IV of the Social Security Act, then such 
funds shall be excluded from income for purposes of determining 
eligibility, benefit levels, or both, respectively, under the food 
stamp program of households all of whose members receive benefits under 
a State plan approved under part A of title IV of the Social Security 
Act.''.
    (j) Removal of Disqualification of Students Receiving General 
Assistance.--Section 6(e) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(e)) is amended--
            (1) in paragraph (7) by striking ``or'' at the end;
            (2) in paragraph (8) by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(9) is receiving general assistance under a State or 
        local program.''.
    (k) Application of Amendments.--The amendments made by this section 
shall not apply with respect to certification periods beginning before 
the effective date of this section.

                      Subtitle C--Fraud Reduction

SEC. 631. SENSE OF THE CONGRESS IN SUPPORT OF THE EFFORTS OF THE 
              ADMINISTRATION TO ADDRESS THE PROBLEMS OF FRAUD AND ABUSE 
              IN THE SUPPLEMENTAL SECURITY INCOME PROGRAM.

    The Congress hereby expresses support for the efforts of the Social 
Security Administration to reduce fraud and abuse in the supplemental 
security income program under title XVI of the Social Security Act by 
implementing a structured approach to disability decisionmaking that 
takes into consideration the large number of disability claims received 
while providing a basis for consistent, equitable decisionmaking by 
claims adjudicators at each level, that provides for the following:
            (1) A simplification of the monetary guidelines for 
        determining whether an individual (except those filing for 
        benefits based on blindness) is engaging in substantial gainful 
        activity.
            (2) The replacement of a threshold severity requirement for 
        determining whether a claimant has a medically determinable 
        impairment with a threshold inquiry as to whether the claimant 
        has a medically determinable physical or mental impairment that 
        can be demonstrated by acceptable clinical and laboratory 
        diagnostic techniques.
            (3) The comparison of an impairment referred to in 
        paragraph (2) with an index of disabling impairments that 
        contains fewer impairments, has less detail and complexity, and 
        does not rely on the concept of ``medical equivalence''.
            (4)(A) The consideration of whether an individual has the 
        ability to perform substantial gainful activity despite any 
        functional loss caused by a medically determinable physical or 
        mental impairment.
            (B) The definition of the physical and mental requirements 
        of substantial gainful activity.
            (C) The objective measurement, to the extent possible, of 
        whether an individual meets such requirements.
            (D) The development, with the assistance of the medical 
        community and other outside experts from disability programs, 
        of standardized criteria which can be used to measure an 
        individual's functional ability.
            (E) The assumption by the Social Security Administration of 
        primary responsibility for documenting functional ability using 
        the standardized measurement criteria, with the goal of 
        developing functional assessment instruments that are 
        standardized, accurately measure an individual's functional 
        abilities, and are universally accepted by the public, the 
        advocacy community, and health care professionals.
            (F) The use of the results of the standardized functional 
        measurement with a new standard to describe basic physical and 
        mental demands of a baseline of work that represents 
        substantial gainful activity and that exists in significant 
        numbers in the national economy.
            (5)(A) An evaluation of whether a child is engaging in 
        substantial gainful activity, whether a child has a medically 
        determinable physical or mental impairment that will meet the 
        duration requirement, and whether a child has an impairment 
        that meets the criteria in the index of disabling impairments.
            (B) The development, with the assistance of the medical 
        community and educational experts, of standardized criteria 
        which can be used to measure a child's functional ability to 
        perform a baseline of functions that are comparable to the 
        baseline of occupational demands for an adult.
            (C) The conduct of research to specifically identify a 
        skill acquisition threshold to measure broad areas required to 
        develop the ability to perform substantial gainful activity.

SEC. 632. STUDY ON FEASIBILITY OF SINGLE TAMPER-PROOF IDENTIFICATION 
              CARD TO SERVE PROGRAMS UNDER BOTH THE SOCIAL SECURITY ACT 
              AND HEALTH REFORM LEGISLATION.

    (a) Study.--As soon as practicable after the date of the enactment 
of this Act, the Secretary of Health and Human Services shall conduct a 
study of the feasibility of issuing, in counterfeit-resistant form, a 
single identification card which would combine the features of the 
social security card now issued pursuant to section 205 of the Social 
Security Act and any health security card which may be provided for in 
health reform legislation enacted in the 103d Congress. In such study, 
the Secretary shall devote particular consideration to--
            (1) employment in such card of finger-print identification, 
        bar code validation, a photograph, a hologram, or any other 
        identifiable feature,
            (2) the efficiencies and economies which may be achieved by 
        combining the features of the social security card as currently 
        issued and the features of any health security card which might 
        be issued under health reform legislation, and
            (3) any costs and risks which might result from combining 
        such features in a single identification card and possible 
        means of alleviating any such costs and risks.
    (b) Report.--The Secretary of Health and Human Services shall, not 
later than 1 year after the date of the enactment of this Act, transmit 
a report to each House of the Congress setting forth the Secretary's 
findings from the study conducted pursuant to subsection (a). Such 
report may include such recommendations for administrative or 
legislative changes as the Secretary considers appropriate.

                          TITLE VII--FINANCING

Subtitle A--Ineligibility of Certain Aliens for Certain Social Services

SEC. 701. CERTAIN ALIENS INELIGIBLE FOR AID TO FAMILIES WITH DEPENDENT 
              CHILDREN.

    (a) In General.--Section 402(a)(33) of the Social Security Act (42 
U.S.C. 602(a)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively;
            (2) by inserting ``(A)'' after ``(33)'';
            (3) by adding ``and'' at the end; and
            (4) by adding after and below the end the following:
            ``(B) provide that--
                    ``(i) notwithstanding subparagraph (A), an alien 
                otherwise eligible for aid under the State plan shall 
                not be eligible for such aid--
                            ``(I) after the 6-year period that begins 
                        with the date the alien is admitted to the 
                        United States, in the case of an alien who has 
                        qualified for entry pursuant to section 207 of 
                        the Immigration and Nationality Act; or
                            ``(II) after the 6-year period that begins 
                        with the date the alien is granted asylum, in 
                        the case of an alien who has applied for asylum 
                        under section 208 of the Immigration and 
                        Nationality Act; and
                    ``(ii) clause (i) shall not apply to an alien who 
                has attained 75 years of age and has resided in the 
                United States for at least 5 years.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1995.

SEC. 702. CERTAIN ALIENS INELIGIBLE FOR SUPPLEMENTAL SECURITY INCOME 
              BENEFITS.

    (a) In General.--Section 1614(a) of the Social Security Act (42 
U.S.C. 1382c(a)) is amended by adding at the end the following:
    ``(5)(A) Notwithstanding any other provision of this title, an 
alien otherwise eligible for benefits under this title shall not be 
eligible for such benefits--
            ``(i) after the 6-year period that begins with the date the 
        alien is admitted to the United States, in the case of an alien 
        who has qualified for entry pursuant to section 207 of the 
        Immigration and Nationality Act; or
            ``(ii) after the 6-year period that begins with the date 
        the alien is granted asylum, in the case of an alien who has 
        applied for asylum under section 208 of the Immigration and 
        Nationality Act.
    ``(B) Subparagraph (A) shall not apply to an alien who has attained 
75 years of age and has resided in the United States for at least 5 
years.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1995.

SEC. 703. ILLEGAL ALIENS NOT ELIGIBLE FOR EARNED INCOME TAX CREDIT.

    (a) In General.--Paragraph (1) of section 32(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(E) Exception for individuals not lawfully 
                admitted.--The term `eligible individual' shall not 
                include any alien unless such alien is lawfully present 
                in the United States (or has been granted asylum in the 
                United States) and, under the provisions of the 
                Immigration and Nationality Act governing such alien's 
                presence in the United States, is permitted to be 
                employed.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 704. DISQUALIFICATION OF CERTAIN ALIENS TO RECEIVE FOOD STAMP 
              BENEFITS.

    (a) Amendment.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015) is amended by adding at the end the following:
    ``(i)(1) Except as provided in paragraph (2), an alien who is 
otherwise eligible to participate in the food stamp program shall not 
be eligible to participate in the food stamp program--
            ``(A) after the expiration of the 6-year period beginning 
        on the date such alien is admitted to the United States, in the 
        case of an alien who has qualified for entry pursuant to 
        section 207 of the Immigration and Nationality Act; and
            ``(B) after the expiration of the 6-year period beginning 
        on the date such alien is granted asylum, in the case of an 
        alien who has applied for asylum under section 208 of the 
        Immigration and Nationality Act.
    ``(2) Paragraph (1) shall not apply with respect to an alien who is 
75 years of age or older and has resided in the United States for at 
least 5 years.''.
    (b) Effective Date; Application of Amendment.--The amendment made 
by subsection (a) shall take effect on October 1, 1995 and shall not 
apply with respect to certification periods beginning before such date.

SEC. 705. CERTAIN ALIENS INELIGIBLE FOR MEDICAL ASSISTANCE UNDER 
              MEDICAID.

    (a) In General.--Section 1903(v) of the Social Security Act (42 
U.S.C. 1396b(v)(1)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``paragraph (2)'' and inserting 
                ``paragraphs (2) and (3)'', and
                    (B) by striking ``who is not lawfully admitted'' 
                and all that follows and inserting a period;
            (2) in paragraph (2), by striking ``described in paragraph 
        (1)''; and
            (3) by adding at the end the following new paragraph:
    ``(4) The limitation on payments provided under paragraph (1) shall 
not apply with respect to medical assistance furnished to an alien--
            ``(A) who is 75 years of age or older and has resided in 
        the United States for at least 5 years; and
            ``(B)(i) in the case of an alien who has qualified for 
        entry pursuant to section 207 of the Immigration and 
        Nationality Act, during the 6-year period beginning on the date 
        such alien is admitted to the United States; or
            ``(ii) in the case of an alien who has applied for asylum 
        under section 208 of the Immigration and Nationality Act, 
        during the 6-year period beginning on the date the alien is 
        granted asylum.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to medical assistance furnished during quarters beginning on or 
after October 1, 1995, without regard to whether or not regulations to 
carry out such amendments have been promulgated by such date.

            Subtitle B--Other Provisions Relating to Aliens

SEC. 711. SPONSOR RESPONSIBILITY FOR COSTS OF GENERAL CASH PUBLIC 
              ASSISTANCE PROVIDED TO AN ALIEN.

    An affidavit of support or similar document of financial 
responsibility with respect to the admission into the United States of 
an alien under the Immigration and Nationality Act shall provide that 
the sponsor shall be liable for any costs incurred by any State or a 
political subdivision of a State for general cash public assistance 
provided to such alien until the date on which the alien becomes a 
citizen of the United States.

SEC. 712. ENFORCEMENT OF AFFIDAVITS OF SUPPORT OR FINANCIAL 
              RESPONSIBILITY BY STATE AND LOCAL GOVERNMENTS PROVIDING 
              ASSISTANCE.

    An affidavit of support or document of financial responsibility 
referred to in section 711 may be enforced with respect to an alien 
against the alien's sponsor in a civil suit brought by the Attorney 
General or a State or political subdivision of a State in the United 
States district court for the district in which the sponsor resides for 
the recovery of any costs incurred by any State or political 
subdivision of a State for general cash public assistance provided to 
such alien for which the sponsor agreed to be liable under such an 
affidavit or document. A sponsor or the sponsor's estate shall not be 
liable under such an affidavit or document if the sponsor dies or is 
adjudicated a bankrupt under title 11, United States Code.

SEC. 713. AUTHORITY TO STATES AND LOCALITIES TO LIMIT ASSISTANCE TO 
              ALIENS AND TO DISTINGUISH AMONG CLASSES OF ALIENS IN 
              PROVIDING GENERAL PUBLIC ASSISTANCE.

    (a) In General.--Subject to subsection (b) and notwithstanding any 
other provision of law, a State or local government may prohibit or 
otherwise limit or restrict the eligibility of aliens or classes of 
aliens for programs of general public assistance furnished under the 
law of the State or a political subdivision of a State.
    (b) Limitation.--The authority under subsection (a) may be 
exercised only to the extent that any prohibitions, limitations, or 
restrictions are not inconsistent with the eligibility requirements for 
comparable Federal programs or are less restrictive. For the purposes 
of this section, attribution to an alien of a sponsor's income and 
resources for purposes of determining the eligibility for and amount of 
benefits of an alien shall be considered less restrictive than a 
prohibition of eligibility.

SEC. 714. FEDERAL FINANCIAL ASSISTANCE TO STATES FOR ASSISTANCE TO 
              IMMIGRANTS.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated for each of the fiscal years 1995, 1996, 1997, and 1998 
$250,000,000 for financial assistance to States for State discretionary 
programs of assistance to aliens lawfully admitted for permanent 
residence under the Immigration and Nationality Act.
    (b) Allocation of Funds.--Subject to subsection (c), for each 
fiscal year funds appropriated under subsection (a) shall be allocated 
as follows:
            (1) California--$107,114,100.
            (2) New York--$37,886,750.
            (3) Florida--$23,852,725.
            (4) Texas--$17,796,225.
            (5) New Jersey--$8,146,075.
            (6) Illinois--$8,083,875.
            (7) Massachusetts--$7,406,850.
            (8) Washington--$4,212,100.
            (9) Pennsylvania--$3,663,175.
            (10) Maryland--$2,832,450.
            (11) Michigan--$2,521,400.
            (12) Virginia--$2,364,025.
            (13) Arizona--$2,221,325.
            (14) Minnesota--$1,924,900.
            (15) Ohio--$1,771,200.
            (16) Hawaii--$1,569,925.
            (17) Colorado--$1,493,075.
            (18) Connecticut--$1,485,750.
            (19) Wisconsin--$1,467,450.
            (20) Oregon--$1,332,050.
            (21) Georgia--$1,273,500.
            (22) Rhode Island--$1,028,300.
            (23) New Mexico--$966,100.
            (24) Louisiana--$955,125.
            (25) Nevada--$720,925.
            (26) North Carolina--$640,400.
            (27) Missouri--$530,625.
            (28) Kansas--$457,425.
            (29) Oklahoma--$373,250.
            (30) Utah--$384,225.
            (31) Iowa--$373,250.
            (32) Tennessee--$347,650.
            (33) Indiana--$340,325.
            (34) District of Columbia--$329,350.
            (35) Alaska--$230,525.
            (36) South Carolina--$230,525.
            (37) Kentucky--$208,575.
            (38) Maine--$204,925.
            (39) Alabama--$186,625.
            (40) Nebraska--$164,675.
            (41) Mississippi--$157,350.
            (42) Delaware--$124,400.
            (43) Arkansas--$113,425.
            (44) Idaho--$106,125.
            (45) New Hampshire--$102,450.
            (46) West Virginia--$69,525.
            (47) South Dakota--$62,200.
            (48) Vermont--$43,900.
            (49) Montana--$43,900.
            (50) North Dakota--$36,575.
            (51) Wyoming--22,710.
    (c) Insufficient Appropriations.--If for any fiscal year sums 
appropriated under subsection (a) are not sufficient to pay the 
allocations under subsection (b) each allocated amount under subsection 
(b) shall be ratably reduced.

      Subtitle C--Limitation on Emergency Assistance Expenditures

SEC. 721. LIMITATION ON EXPENDITURES FOR EMERGENCY ASSISTANCE.

    (a) In General.--Section 403(a)(5) of the Social Security Act (42 
U.S.C. 602(a)(5)) is amended to read as follows:
            ``(5) in the case of any State, an amount equal to the 
        lesser of--
                    ``(A) 50 percent of the total amount expended under 
                the State plan during such quarter as emergency 
                assistance to needy families with children; or
                    ``(B) the greater of--
                            ``(i) the total amount expended under the 
                        State plan during the fiscal year that 
                        immediately precedes the fiscal year in which 
                        the quarter occurs; multiplied by
                                    ``(I) 4 percent, if the national 
                                unemployment rate for the United States 
                                (as determined by the Secretary of 
                                Labor) for the 3rd or 4th quarter of 
                                the immediately preceding fiscal year 
                                is at least 7 percent; or
                                    ``(II) 3 percent, otherwise; or
                            ``(ii) the total amount expended under the 
                        State plan during fiscal year 1993 as emergency 
                        assistance to needy families with children.''.
    (b) Authority of States To Define Emergency Assistance.--Section 
406(e)(1) of such Act (42 U.S.C. 606(e)(1)) is amended to read as 
follows:
    ``(e)(1)(A) The term `emergency assistance to needy families with 
children' means emergency assistance furnished by an eligible State 
with respect to an eligible needy child to avoid destitution of the 
child or to provide living arrangements in a home for the child.
    ``(B) As used in this paragraph:
            ``(i) The term `emergency assistance' means emergency 
        assistance as provided for in the State plan approved under 
        section 402 of an eligible State, but shall not include care 
        for an eligible needy child or other member of the household in 
        which the child is living to the extent that the child or other 
        member is entitled to such care as medical assistance under the 
        State plan under title XIX.
            ``(ii) The term `eligible needy child' means a needy 
        child--
                    ``(I) who has not attained 21 years of age;
                    ``(II) who is or (within such period as the 
                Secretary may specify) has been living with any 
                relative specified in subsection (a)(1) in a place of 
                residence maintained by 1 or more of such relatives as 
                the home of the relative or relatives;
                    ``(III) who is without available resources; and
                    ``(IV) whose requirement for emergency assistance 
                did not arise because the child or relative refused 
                without good cause to accept employment or training for 
                employment.
            ``(iii) The term ``eligible State'' means a State whose 
        State plan approved under section 402 includes provision for 
        emergency assistance.''.

         Subtitle D--Family Day Care Homes Program Improvements

SEC. 731. IMPROVEMENT OF OPERATION OF FAMILY OR GROUP DAY CARE HOMES 
              LOCATED IN LOW- AND MODERATE-INCOME AREAS UNDER THE CHILD 
              AND ADULT CARE FOOD PROGRAM UNDER THE NATIONAL SCHOOL 
              LUNCH ACT.

    (a) In General.--Section 17(f)(3)(A) of the National School Lunch 
Act (42 U.S.C. 1766(f)(3)(A)) is amended to read as follows:
    ``(A)(i) Institutions that participate in the program under this 
section as family or group day care home sponsoring organizations shall 
be provided, for payment to such homes, a reimbursement factor in 
accordance with this subparagraph for the cost of obtaining and 
preparing food and prescribed labor costs, involved in providing meals 
under this section.
    ``(ii)(I) A low- or moderate-income family or group day care home 
shall be provided a reimbursement factor without a requirement for 
documentation of the costs described in clause (i), except that 
reimbursement shall not be provided under this clause for meals or 
supplements served to the children of a person acting as a family or 
group day care home provider unless such children meet the eligibility 
standards for free or reduced price meals under section 9 of this Act. 
The reimbursement factors applied to such a home shall be the factors 
in effect on the date of enactment of the Self-Sufficient and 
Independence Act of 1994. The reimbursement factors under this 
subparagraph shall be adjusted on July 1 of each year to reflect 
changes in the Consumer Price Index for food away from home for the 
most recent 12-month period for which such data are available. The 
reimbursement factors under this subparagraph shall be rounded to the 
nearest one-fourth cent.
    ``(II) For purposes of this clause, the term `low- or moderate-
income family or group day care home' means--
            ``(aa) a family or group day care home that is located in a 
        census tract area in which at least 40 percent of the children 
        residing in such area are members of households whose incomes 
        meet the eligibility standards for free or reduced price meals 
        under section 9 of this Act, as determined by the family or 
        group day care home sponsoring organization using census tract 
        data provided to such organization by the State agency in 
        accordance with subparagraph (B)(i);
            ``(bb) a family or group day care home that is located in 
        an area served by a school in which at least 40 percent of the 
        total number of children enrolled are certified to receive free 
        or reduced price meals under this Act or the Child Nutrition 
        Act of 1966 (42 U.S.C. 1771 et seq.), as determined by the 
        family or group day care home sponsoring organization using 
        data provided to such organization by the State agency in 
        accordance with subparagraph (B)(ii); or
            ``(cc) a family or group day care home that is operated by 
        a provider whose household meets the eligibility standards for 
        free or reduced price meals under section 9 of this Act.
    ``(iii)(I) Except as provided for in subclause (II), with respect 
to meals or supplements served under this clause by a family or group 
day care home that does not meet the criteria set forth in clause 
(ii)(II), the reimbursement factors shall be--
            ``(aa) $1.2675 for lunches and suppers;
            ``(bb) $.5375 for breakfasts; and
            ``(cc) $.25 for supplements.
Such factors shall be adjusted on July 1, 1995, and each July 1 
thereafter to reflect changes in the Consumer Price Index for food away 
from home for the most recent 12-month period for which such data are 
available. The reimbursement factors under this clause shall be rounded 
to the nearest one-fourth cent. A family or group day care home shall 
be provided a reimbursement factor under this subclause without a 
requirement for documentation of the costs described in clause (i), 
except that reimbursement shall not be provided under this clause for 
meals or supplements served to the children of a person acting as a 
family or group day care home provider unless such children meet the 
eligibility standards for free or reduced price meals under section 9 
of this Act.
    ``(II) A family or group day care home that does not meet the 
criteria set forth in clause (ii)(II), may elect to be provided a 
reimbursement factor determined in accordance with the following 
requirements:
            ``(aa) With respect to meals or supplements served under 
        this subsection to children who are members of households whose 
        incomes meet the eligibility standards for free or reduced 
        price meals under section 9 of this Act, the family or group 
        day care home shall be provided reimbursement factors set by 
        the Secretary in accordance with subclause (ii)(I).
            ``(bb) With respect to meals or supplements served under 
        this subsection to children who are members of households whose 
        incomes do not meet such eligibility standards, the family or 
        group day care home shall be provided a reimbursement factor in 
        accordance with subclause (I).
    ``(III) A family or group day care home electing to use the 
procedures under subclause (II) may consider a child with a parent 
participating in the work first program established under part F of 
title IV of the Social Security Act, the community service program 
established under section 489 of such Act, the transitional child care 
program under title IV of such Act, the at-risk child care program 
under title IV of such Act, or a State child care program with an 
income eligibility limit that does not exceed the eligibility standard 
for free or reduced price meals under section 9 of this Act, to be a 
child who is a member of a household whose income meets the eligibility 
standards under section 9 of this Act. A family or group day care home 
may elect to receive the reimbursement factors prescribed under clause 
(ii)(I) solely for such children if it does not wish to have income 
statements collected from parents.
    ``(IV) The Secretary shall prescribe simplified meal counting and 
reporting procedures for use by family and group day care homes that 
elect to use the procedures under clause (iii)(II) and by family and 
group day care home sponsoring organizations that serve such homes. 
Such procedures may include the following:
            ``(aa) Setting an annual percentage for each such home of 
        the number of meals served that are to be reimbursed in 
        accordance with the reimbursement factors prescribed under 
        clause (ii)(I) and an annual percentage of the number of meals 
        served that are to be reimbursed in accordance with the 
        reimbursement factors prescribed under clause (ii)(II), based 
        on the incomes of children enrolled in the home in a specified 
        month or other period.
            ``(bb) Setting blended reimbursement factors for a home 
        annually based on the incomes of children enrolled in the home 
        in a specified month or period.
            ``(cc) Placing a home into one of several reimbursement 
        categories annually based on the percentage of children in the 
        home whose households have incomes that meet the eligibility 
        standards under section 9 of this Act.
            ``(dd) Such other simplified procedures as the Secretary 
        may prescribe.''.
    (b) Provision of Data to Family or Group Day Care Homes.--Section 
17(f)(3) of such Act (42 U.S.C. 1766(f)(3)) is amended--
            (1) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (D) and (E), respectively; and
            (2) by inserting after subparagraph (A) (as amended by 
        subsection (a)) the following new subparagraph:
    ``(B)(i) The Secretary shall provide to each State agency 
administering a child and adult care food program under this section 
data from the most recent decennial census for which such data are 
available showing which census tracts in the State meet the 
requirements of subparagraph (A)(ii)(II)(aa). The State agency shall 
provide such data to family or group day care home sponsoring 
organizations located in the State.
    ``(ii) Each State agency administering a child and adult care food 
program under this section shall annually provide to family or group 
day care home sponsoring organizations located in the State a list of 
all schools in the State in which at least 40 percent of the children 
are enrolled are certified to receive free or reduced price meals under 
this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.). 
The Secretary shall direct State agencies administering the school 
lunch program under this Act and the school breakfast program under the 
Child Nutrition Act of 1966 to collect this information annually and to 
provide it on a timely basis to the State agency administering the 
program under this section.''.
    (c) Grants to States To Provide Assistance to Family or Group Day 
Care Homes.--Section 17(f)(3) of such Act (42 U.S.C. 1766(f)(3)) is 
amended by inserting after subparagraph (B) (as added by subsection 
(b)(2)) the following new subparagraph:
    ``(C)(i) From amounts appropriated to carry out this section, the 
Secretary shall reserve $2,000,000 in fiscal year 1995 and $5,000,000 
in fiscal year 1996 to provide grants to States for the purpose of 
providing grants to family and day care home sponsoring organizations 
and other appropriate organizations to secure and provide training, 
materials, automated data processing assistance, and other assistance 
for the staff of such sponsoring organizations and for family and group 
day care homes in order to assist in the implementation of the 
requirements contained in subparagraph (A).
    ``(ii) From amounts appropriated to carry out this section, the 
Secretary shall reserve $5,000,000 in fiscal year 1997 and in each 
fiscal year thereafter to provide grants to States for the purpose of 
making grants to family or group day care home sponsoring organizations 
and other appropriate organizations to assist low- or moderate-income 
family or group day care homes (as such term is defined in subparagraph 
(A)(ii)(II)) become licensed or registered for the program under this 
section or overcome other barriers to the program.''.
    (d) Effective Dates.--(1) The amendments made by subsections (a) 
and (b) shall take effect on July 1, 1996.
    (2) The amendments made by subsection (c) shall take effect on the 
date of the enactment of this Act.

Subtitle E--Collection of Certain State and Local Taxes on Out-of-State 
                                 Sales

SEC. 741. SHORT TITLE.

    This subtitle may be cited as the ``Tax Fairness for Main Street 
Business Act of 1994''.

SEC. 742. FINDINGS.

    The Congress finds that--
            (1) sales by out-of-State firms already are subject to 
        State and local sales taxes, but State and local governments 
        are unable to compel out-of-State firms to collect and remit 
        such taxes,
            (2) small businesses, which are compelled to collect State 
        and local sales taxes, are subject to unfair competition when 
        out-of-State firms cannot be compelled to collect and remit 
        such taxes on their sales to residents of the State,
            (3) State and local governments provide a number of 
        resources to out-of-State firms including government services 
        relating to mail delivery, communications, bank and court 
        systems, and disposal of tons of catalogs,
            (4) the inability of State and local governments to require 
        out-of-State firms to collect and remit sales taxes deprives 
        State and local governments of needed revenue and forces such 
        State and local governments to raise taxes on taxpayers, 
        including small businesses, in such State,
            (5) the Supreme Court ruled in Quill v. North Dakota, 112 
        U.S. 1904 (1992) that the due process clause of the 
        Constitution does not prohibit a State government from imposing 
        personal jurisdiction and tax obligations on out-of-State firms 
        that purposefully solicit sales from residents therein, and 
        that the Congress has the power to authorize State governments 
        to require out-of-State firms to collect State and local sales 
        taxes, and
            (6) as a matter of federalism, the Federal Government has a 
        duty to assist State and local governments in collecting sales 
        taxes on sales from out-of-State firms.

SEC. 743. SENSE OF CONGRESS.

    Congress recognizes that some States will be adversely affected by 
the provisions of this Act which deny immigrants certain public 
assistance and pledges to help those States offset the potential cost 
shift. In authorizing States to require out-of-State companies to 
collect sales taxes on mail order purchases, Congress encourages States 
to use increased revenues resulting from such collections to offset 
such cost shift and to design assistance programs that address the 
special needs of immigrants entering this country.

SEC. 744. AUTHORITY FOR COLLECTION OF SALES TAX.

    (a) In General.--A State is authorized to require a person who is 
subject to the personal jurisdiction of the State to collect and remit 
a State sales tax, a local sales tax, or both, with respect to tangible 
personal property if--
            (1) the destination of the tangible personal property is in 
        the State,
            (2) during the 1-year period ending on September 30 of the 
        calendar year preceding the calendar year in which the taxable 
        event occurs, the person has gross receipts from sales of such 
        tangible personal property--
                    (A) in the United States exceeding $3,000,000, or
                    (B) in the State exceeding $100,000, and
            (3) the State, on behalf of its local jurisdictions, 
        collects and administers all local sales taxes imposed pursuant 
        to this subtitle.
    (b) States Must Collect Local Sales Taxes.--A State in which both 
State and local sales taxes are imposed may not require State sales 
taxes to be collected and remitted under subsection (a) unless the 
State also requires the local sales taxes to be collected and remitted 
under subsection (a).
    (c) Aggregation Rules.--All persons that would be treated as a 
single employer under section 52 (a) or (b) of the Internal Revenue 
Code of 1986 shall be treated as one person for purposes of subsection 
(a).
    (d) Destination.--For purposes of subsection (a), the destination 
of tangible personal property is the State or local jurisdiction which 
is the final location to which the seller ships or delivers the 
property, or to which the seller causes the property to be shipped or 
delivered, regardless of the means of shipment or delivery or the 
location of the buyer.

SEC. 745. TREATMENT OF LOCAL SALES TAXES.

    (a) Uniform Local Sales Taxes.--
            (1) In general.--Sales taxes imposed by local jurisdictions 
        of a State shall be deemed to be uniform for purposes of this 
        subtitle and shall be collected under this subtitle in the same 
        manner as State sales taxes if--
                    (A) such local sales taxes are imposed at the same 
                rate and on identical transactions in all geographic 
                areas in the State, and
                    (B) such local sales taxes imposed on sales by out-
                of-State persons are collected and administered by the 
                State.
            (2) Application to border jurisdiction tax rates.--A State 
        shall not be treated as failing to meet the requirements of 
        paragraph (1)(A) if, with respect to a local jurisdiction which 
        borders on another State, such State or local jurisdiction--
                    (A) either reduces or increases the local sales tax 
                in order to achieve a rate of tax equal to that imposed 
                by the bordering State on identical transactions, or
                    (B) exempts from the tax transactions which are 
                exempt from tax in the bordering State.
    (b) Nonuniform Local Sales Taxes.--
            (1) In general.--Nonuniform local sales taxes required to 
        be collected pursuant to this subtitle shall be collected under 
        one of the options provided under paragraph (2).
            (2) Election.--For purposes of paragraph (1), any person 
        required under authority of this subtitle to collect nonuniform 
        local sales taxes shall elect to collect either--
                    (A) all nonuniform local sales taxes applicable to 
                transactions in the State, or
                    (B) a fee (at the rate determined under paragraph 
                (3)) which shall be in lieu of the nonuniform local 
                sales taxes described in subparagraph (A).
        Such election shall require the person to use the method 
        elected for all transactions in the State while the election is 
        in effect.
            (3) Rate of in-lieu fee.--For purposes of paragraph (2)(B), 
        the rate of the in-lieu fee for any calendar year shall be an 
        amount equal to the product of--
                    (A) the amount determined by dividing total 
                nonuniform local sales tax revenues collected in the 
                State for the most recently completed State fiscal year 
                for which data is available by total State sales tax 
                revenues for the same year, and
                    (B) the State sales tax rate.
        Such amount shall be rounded to the nearest 0.25 percent.
            (4) Nonuniform local sales taxes.--For purposes of this 
        subtitle, nonuniform local sales taxes are local sales taxes 
        which do not meet the requirements of subsection (a).
    (c) Distribution of Local Sales Taxes.--
            (1) In general.--A State shall distribute to local 
        jurisdictions a portion of the amounts collected pursuant to 
        this subtitle determined on the basis of--
                    (A) in the case of uniform local sales taxes, the 
                proportion which each local jurisdiction receives of 
                uniform local sales taxes not collected pursuant to 
                this subtitle,
                    (B) in the case of in-lieu fees, as described in 
                subsection (b)(2)(B), the proportion which each local 
                jurisdiction's nonuniform local sales tax receipts 
                bears to the total nonuniform local sales tax receipts 
                in the State, and
                    (C) in the case of any nonuniform local sales tax 
                collected pursuant to this subtitle, the geographical 
                location of the transaction on which the tax was 
                imposed.
        The amounts determined under subparagraphs (A) and (B) shall be 
        calculated on the basis of data for the most recently completed 
        State fiscal year for which the data is available.
            (2) Timing.--Amounts described in paragraph (1) (B) or (C) 
        shall be distributed by a State to its local jurisdictions in 
        accordance with State timetables for distributing local sales 
        taxes, but not less frequently than every calendar quarter. 
        Amounts described in paragraph (1)(A) shall be distributed by a 
        State as provided under State law.
            (3) Transition rule.--If, upon the effective date of this 
        subtitle, a State has a State law in effect providing a method 
        for distributing local sales taxes other than the method under 
        this subsection, then this subsection shall not apply to that 
        State until the 91st day following the adjournment sine die of 
        that State's next regular legislative session which convenes 
        after the effective date of this subtitle (or such earlier date 
        as State law may provide). Local sales taxes collected pursuant 
        to this subtitle prior to the application of this subsection 
        shall be distributed as provided by State law.

SEC. 746. RETURN AND REMITTANCE REQUIREMENTS.

    (a) In General.--A State may not require any person subject to this 
subtitle--
            (1) to file a return reporting the amount of any tax 
        collected or required to be collected under this subtitle, or 
        to remit the receipts of such tax, more frequently than once 
        with respect to sales in a calendar quarter, or
            (2) to file the initial such return, or to make the initial 
        such remittance, before the 90th day after the person's first 
        taxable transaction under this subtitle.
    (b) Local Taxes.--The provisions of subsection (a) shall also apply 
to any person required by a State acting under authority of this 
subtitle to collect a local sales tax or in-lieu fee.

SEC. 747. NONDISCRIMINATION AND EXEMPTIONS.

    A State shall not have power under this subtitle to require any 
person not located in the State or local jurisdiction to collect and 
remit a State or local sales tax if a person located in the State or 
local jurisdiction would have been exempt from or otherwise not subject 
to such State or local sales tax under similar circumstances.

SEC. 748. APPLICATION OF STATE LAW.

    (a) Persons Required To Collect State or Local Sales Tax.--Any 
person required by section 744 to collect a State or local sales tax 
shall be subject to the laws of such State relating to such sales tax 
to the extent that such laws are consistent with the limitations 
contained in this subtitle.
    (b) Limitations.--Except as provided in subsection (a), nothing in 
this subtitle shall be construed to permit a State--
            (1) to license or regulate any person,
            (2) to require any person to qualify to transact intrastate 
        business, or
            (3) to subject any person to State taxes not related to the 
        sales of tangible personnel property.
    (c) Preemption.--Except as otherwise provided in this subtitle, 
this subtitle shall not be construed to preempt or limit any power 
exercised or to be exercised by a State or local jurisdiction under the 
law of such State or local jurisdiction or under any other Federal law.

SEC. 749. TOLL-FREE INFORMATION SERVICE.

    A State shall not have power under this subtitle to require any 
person to collect a State or local sales tax on any sale unless, at the 
time of such sale, such State has a toll-free telephone service 
available to provide such person information relating to collection of 
such State or local sales tax. Such information shall include, at a 
minimum, all applicable tax rates, return and remittance addresses and 
deadlines, and penalty and interest information. As part of the 
service, the State shall also provide all necessary forms and 
instructions at no cost to any person using the service. The State 
shall prominently display the toll-free telephone number on all 
correspondence with any person using the service. This service may be 
provided jointly with other States.

SEC. 750. DEFINITIONS.

    For the purposes of this subtitle--
            (1) the term ``compensating use tax'' means a tax imposed 
        on or incident to the use, storage, consumption, distribution, 
        or other use within a State or local jurisdiction or other area 
        of a State, of tangible personal property;
            (2) the term ``local sales tax'' means a sales tax imposed 
        in a local jurisdiction or area of a State and includes, but is 
        not limited to--
                    (A) a sales tax or in-lieu fee imposed in a local 
                jurisdiction or area of a State by the State on behalf 
                of such jurisdiction or area, and
                    (B) a sales tax imposed by a local jurisdiction or 
                other State-authorized entity pursuant to the authority 
                of State law, local law, or both;
            (3) the term ``person'' means an individual, a trust, 
        estate, partnership, society, association, company or 
        corporation, including a limited liability company, whether or 
        not acting in a fiduciary or representative capacity, and any 
        combination of the foregoing;
            (4) the term ``sales tax'' means a tax, including a 
        compensating use tax, that is--
                    (A) imposed on or incident to the sale, purchase, 
                storage, consumption, distribution, or other use of 
                tangible personal property as may be defined or 
                specified under the laws imposing such tax, and
                    (B) measured by the amount of the sales price, 
                cost, charge or other value of or for such property; 
                and
            (5) the term ``State'' means any of the several States of 
        the United States, the District of Columbia, the Commonwealth 
        of Puerto Rico, and any territory or possession of the United 
        States.

SEC. 751. EFFECTIVE DATE.

    This subtitle shall take effect 180 days after the date of the 
enactment of this subtitle. In no event shall this subtitle apply to 
any sale occurring before such effective date.

                       TITLE VIII--EFFECTIVE DATE

SEC. 801. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act shall take effect on October 1, 1996.

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