Pub. L. 104-193

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2105

Public Law 104–193
104th Congress
An Act
To provide for reconciliation pursuant to section 201(a)(1) of the concurrent resolution
on the budget for fiscal year 1997.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Personal Responsibility and
Work Opportunity Reconciliation Act of 1996’’.
SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:
TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private organizations.
Sec. 105. Census data on grandparents as primary caregivers for their grandchildren.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and related provisions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant Social Security card required.
Sec. 112. Modifications to the job opportunities for certain low-income individuals
program.
Sec. 113. Secretarial submission of legislative proposal for technical and conforming
amendments.
Sec. 114. Assuring medicaid coverage for low-income families.
Sec. 115. Denial of assistance and benefits for certain drug-related convictions.
Sec. 116. Effective date; transition rule.
TITLE II—SUPPLEMENTAL SECURITY INCOME
Sec. 200. Reference to Social Security Act.
Subtitle A—Eligibility Restrictions
Sec. 201. Denial of SSI benefits for 10 years to individuals found to have fraudulently misrepresented residence in order to obtain benefits simultaneously in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation and parole violators.
Sec. 203. Treatment of prisoners.
Sec. 204. Effective date of application for benefits.
Subtitle B—Benefits for Disabled Children
Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability reviews.

Aug. 22, 1996
[H.R. 3734]
Personal
Responsibility
and Work
Opportunity
Reconciliation
Act of 1996.
42 USC 1305
note.

110 STAT. 2106

PUBLIC LAW 104–193—AUG. 22, 1996

Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized individuals whose
medical costs are covered by private insurance.
Sec. 215. Regulations.
Subtitle C—Additional Enforcement Provision
Sec. 221. Installment payment of large past-due supplemental security income benefits.
Sec. 222. Regulations.
Subtitle D—Studies Regarding Supplemental Security Income Program
Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study by General Accounting Office.
TITLE III—CHILD SUPPORT
Sec. 300. Reference to Social Security Act.
Sec.
Sec.
Sec.
Sec.

301.
302.
303.
304.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

311.
312.
313.
314.
315.
316.
317.

Sec.
Sec.
Sec.
Sec.
Sec.

321.
322.
323.
324.
325.

Subtitle A—Eligibility for Services; Distribution of Payments
State obligation to provide child support enforcement services.
Distribution of child support collections.
Privacy safeguards.
Rights to notification of hearings.
Subtitle B—Locate and Case Tracking
State case registry.
Collection and disbursement of support payments.
State directory of new hires.
Amendments concerning income withholding.
Locator information from interstate networks.
Expansion of the Federal Parent Locator Service.
Collection and use of Social Security numbers for use in child support enforcement.
Subtitle C—Streamlining and Uniformity of Procedures
Adoption of uniform State laws.
Improvements to full faith and credit for child support orders.
Administrative enforcement in interstate cases.
Use of forms in interstate enforcement.
State laws providing expedited procedures.

Subtitle D—Paternity Establishment
Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of part A assistance.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

341.
342.
343.
344.
345.
346.

Subtitle E—Program Administration and Funding
Performance-based incentives and penalties.
Federal and State reviews and audits.
Required reporting procedures.
Automated data processing requirements.
Technical assistance.
Reports and data collection by the Secretary.

Subtitle F—Establishment and Modification of Support Orders
Sec. 351. Simplified process for review and adjustment of child support orders.
Sec. 352. Furnishing consumer reports for certain purposes relating to child support.
Sec. 353. Nonliability for financial institutions providing financial records to State
child support enforcement agencies in child support cases.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

361.
362.
363.
364.
365.
366.
367.
368.

Subtitle G—Enforcement of Support Orders
Internal Revenue Service collection of arrearages.
Authority to collect support from Federal employees.
Enforcement of child support obligations of members of the Armed Forces.
Voiding of fraudulent transfers.
Work requirement for persons owing past-due child support.
Definition of support order.
Reporting arrearages to credit bureaus.
Liens.

PUBLIC LAW 104–193—AUG. 22, 1996
Sec.
Sec.
Sec.
Sec.
Sec.

110 STAT. 2107

369.
370.
371.
372.
373.

State law authorizing suspension of licenses.
Denial of passports for nonpayment of child support.
International support enforcement.
Financial institution data matches.
Enforcement of orders against paternal or maternal grandparents in
cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for the support of a
child.
Sec. 375. Child support enforcement for Indian tribes.
Subtitle H—Medical Support
Sec. 381. Correction to ERISA definition of medical child support order.
Sec. 382. Enforcement of orders for health care coverage.
Subtitle I—Enhancing Responsibility and Opportunity for Non-Residential Parents
Sec. 391. Grants to States for access and visitation programs.
Subtitle J—Effective Dates and Conforming Amendments
Sec. 395. Effective dates and conforming amendments.
TITLE IV—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
Sec. 400. Statements of national policy concerning welfare and immigration.
Subtitle A—Eligibility for Federal Benefits
Sec. 401. Aliens who are not qualified aliens ineligible for Federal public benefits.
Sec. 402. Limited eligibility of qualified aliens for certain Federal programs.
Sec. 403. Five-year limited eligibility of qualified aliens for Federal means-tested
public benefit.
Sec. 404. Notification and information reporting.
Subtitle B—Eligibility for State and Local Public Benefits Programs
Sec. 411. Aliens who are not qualified aliens or nonimmigrants ineligible for State
and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for State public benefits.
Subtitle C—Attribution of Income and Affidavits of Support
Sec. 421. Federal attribution of sponsor’s income and resources to alien.
Sec. 422. Authority for States to provide for attribution of sponsors income and resources to the alien with respect to State programs.
Sec. 423. Requirements for sponsor’s affidavit of support.
Subtitle D—General Provisions
Definitions.
Verification of eligibility for Federal public benefits.
Statutory construction.
Communication between State and local government agencies and the Immigration and Naturalization Service.
Sec. 435. Qualifying quarters.
Sec.
Sec.
Sec.
Sec.

431.
432.
433.
434.

Subtitle E—Conforming Amendments Relating to Assisted Housing
Sec. 441. Conforming amendments relating to assisted housing.
Subtitle F—Earning Income Credit Denied to Unauthorized Employees
Sec. 451. Earned income credit denied to individuals not authorized to be employed
in the United States.
TITLE V—CHILD PROTECTION
Sec. 501. Authority of States to make foster care maintenance payments on behalf
of children in any private child care institution.
Sec. 502. Extension of enhanced match for implementation of statewide automated
child welfare information systems.
Sec. 503. National random sample study of child welfare.
Sec. 504. Redesignation of section 1123.
Sec. 505. Kinship care.
TITLE VI—CHILD CARE
Sec. 601. Short title and references.
Sec. 602. Goals.

110 STAT. 2108

PUBLIC LAW 104–193—AUG. 22, 1996

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

603.
604.
605.
606.
607.
608.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

609.
610.
611.
612.
613.
614.
615.

Authorization of appropriations and entitlement authority.
Lead agency.
Application and plan.
Limitation on State allotments.
Activities to improve the quality of child care.
Repeal of early childhood development and before- and after-school care
requirement.
Administration and enforcement.
Payments.
Annual report and audits.
Report by the Secretary.
Allotments.
Definitions.
Effective date.
TITLE VII—CHILD NUTRITION PROGRAMS

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

701.
702.
703.
704.
705.
706.
707.
708.
709.
710.
711.
712.

Subtitle A—National School Lunch Act
State disbursement to schools.
Nutritional and other program requirements.
Free and reduced price policy statement.
Special assistance.
Miscellaneous provisions and definitions.
Summer food service program for children.
Commodity distribution.
Child and adult care food program.
Pilot projects.
Reduction of paperwork.
Information on income eligibility.
Nutrition guidance for child nutrition programs.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

721.
722.
723.
724.
725.
726.
727.
728.
729.
730.
731.

Subtitle B—Child Nutrition Act of 1966
Special milk program.
Free and reduced price policy statement.
School breakfast program authorization.
State administrative expenses.
Regulations.
Prohibitions.
Miscellaneous provisions and definitions.
Accounts and records.
Special supplemental nutrition program for women, infants, and children.
Cash grants for nutrition education.
Nutrition education and training.

Subtitle C—Miscellaneous Provisions
Sec. 741. Coordination of school lunch, school breakfast, and summer food service
programs.
Sec. 742. Requirements relating to provision of benefits based on citizenship,
alienage, or immigration status under the National School Lunch Act,
the Child Nutrition Act of 1966, and certain other acts.
TITLE VIII—FOOD STAMPS AND COMMODITY DISTRIBUTION
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

801.
802.
803.
804.
805.
806.
807.
808.
809.
810.
811.
812.
813.
814.
815.
816.
817.

Subtitle A—Food Stamp Program
Definition of certification period.
Definition of coupon.
Treatment of children living at home.
Adjustment of thrifty food plan.
Definition of homeless individual.
State option for eligibility standards.
Earnings of students.
Energy assistance.
Deductions from income.
Vehicle allowance.
Vendor payments for transitional housing counted as income.
Simplified calculation of income for the self-employed.
Doubled penalties for violating food stamp program requirements.
Disqualification of convicted individuals.
Disqualification.
Caretaker exemption.
Employment and training.

PUBLIC LAW 104–193—AUG. 22, 1996
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

818.
819.
820.
821.
822.
823.
824.
825.
826.
827.
828.
829.
830.
831.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

832.
833.
834.
835.
836.
837.
838.
839.
840.
841.
842.

110 STAT. 2109

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

846.
847.
848.
849.
850.
851.
852.
853.
854.
855.
856.

Food stamp eligibility.
Comparable treatment for disqualification.
Disqualification for receipt of multiple food stamp benefits.
Disqualification of fleeing felons.
Cooperation with child support agencies.
Disqualification relating to child support arrears.
Work requirement.
Encouragement of electronic benefit transfer systems.
Value of minimum allotment.
Benefits on recertification.
Optional combined allotment for expedited households.
Failure to comply with other means-tested public assistance programs.
Allotments for households residing in centers.
Condition precedent for approval of retail food stores and wholesale food
concerns.
Authority to establish authorization periods.
Information for verifying eligibility for authorization.
Waiting period for stores that fail to meet authorization criteria.
Operation of food stamp offices.
State employee and training standards.
Exchange of law enforcement information.
Expedited coupon service.
Withdrawing fair hearing requests.
Income, eligibility, and immigration status verification systems.
Investigations.
Disqualification of retailers who intentionally submit falsified applications.
Disqualification of retailers who are disqualified under the WIC program.
Collection of overissuances.
Authority to suspend stores violating program requirements pending administrative and judicial review.
Expanded criminal forfeiture for violations.
Limitation on Federal match.
Standards for administration.
Work supplementation or support program.
Waiver authority.
Response to waivers.
Employment initiatives program.
Reauthorization.
Simplified food stamp program.
Study of the use of food stamps to purchase vitamins and minerals.
Deficit reduction.

Sec.
Sec.
Sec.
Sec.

871.
872.
873.
874.

Emergency food assistance program.
Food bank demonstration project.
Hunger prevention programs.
Report on entitlement commodity processing.

Sec. 843.
Sec. 844.
Sec. 845.

Subtitle B—Commodity Distribution Programs

Subtitle C—Electronic Benefit Transfer Systems
Sec. 891. Provisions to encourage electronic benefit transfer systems.
TITLE IX—MISCELLANEOUS
Sec. 901. Appropriation by State legislatures.
Sec. 902. Sanctioning for testing positive for controlled substances.
Sec. 903. Elimination of housing assistance with respect to fugitive felons and probation and parole violators.
Sec. 904. Sense of the Senate regarding the inability of the noncustodial parent to
pay child support.
Sec. 905. Establishing national goals to prevent teenage pregnancies.
Sec. 906. Sense of the Senate regarding enforcement of statutory rape laws.
Sec. 907. Provisions to encourage electronic benefit transfer systems.
Sec. 908. Reduction of block grants to States for social services; use of vouchers.
Sec. 909. Rules relating to denial of earned income credit on basis of disqualified
income.
Sec. 910. Modification of adjusted gross income definition for earned income credit.
Sec. 911. Fraud under means-tested welfare and public assistance programs.
Sec. 912. Abstinence education.
Sec. 913. Change in reference.

110 STAT. 2110

PUBLIC LAW 104–193—AUG. 22, 1996

TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
42 USC 601 note.

SEC. 101. FINDINGS.

The Congress makes the following findings:
(1) Marriage is the foundation of a successful society.
(2) Marriage is an essential institution of a successful
society which promotes the interests of children.
(3) Promotion of responsible fatherhood and motherhood
is integral to successful child rearing and the well-being of
children.
(4) In 1992, only 54 percent of single-parent families with
children had a child support order established and, of that
54 percent, only about one-half received the full amount due.
Of the cases enforced through the public child support enforcement system, only 18 percent of the caseload has a collection.
(5) The number of individuals receiving aid to families
with dependent children (in this section referred to as ‘‘AFDC’’)
has more than tripled since 1965. More than two-thirds of
these recipients are children. Eighty-nine percent of children
receiving AFDC benefits now live in homes in which no father
is present.
(A)(i) The average monthly number of children receiving AFDC benefits—
(I) was 3,300,000 in 1965;
(II) was 6,200,000 in 1970;
(III) was 7,400,000 in 1980; and
(IV) was 9,300,000 in 1992.
(ii) While the number of children receiving AFDC benefits increased nearly threefold between 1965 and 1992,
the total number of children in the United States aged
0 to 18 has declined by 5.5 percent.
(B) The Department of Health and Human Services
has estimated that 12,000,000 children will receive AFDC
benefits within 10 years.
(C) The increase in the number of children receiving
public assistance is closely related to the increase in births
to unmarried women. Between 1970 and 1991, the percentage of live births to unmarried women increased nearly
threefold, from 10.7 percent to 29.5 percent.
(6) The increase of out-of-wedlock pregnancies and births
is well documented as follows:
(A) It is estimated that the rate of nonmarital teen
pregnancy rose 23 percent from 54 pregnancies per 1,000
unmarried teenagers in 1976 to 66.7 pregnancies in 1991.
The overall rate of nonmarital pregnancy rose 14 percent
from 90.8 pregnancies per 1,000 unmarried women in 1980
to 103 in both 1991 and 1992. In contrast, the overall
pregnancy rate for married couples decreased 7.3 percent
between 1980 and 1991, from 126.9 pregnancies per 1,000
married women in 1980 to 117.6 pregnancies in 1991.
(B) The total of all out-of-wedlock births between 1970
and 1991 has risen from 10.7 percent to 29.5 percent and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2111

if the current trend continues, 50 percent of all births
by the year 2015 will be out-of-wedlock.
(7) An effective strategy to combat teenage pregnancy must
address the issue of male responsibility, including statutory
rape culpability and prevention. The increase of teenage pregnancies among the youngest girls is particularly severe and
is linked to predatory sexual practices by men who are significantly older.
(A) It is estimated that in the late 1980’s, the rate
for girls age 14 and under giving birth increased 26 percent.
(B) Data indicates that at least half of the children
born to teenage mothers are fathered by adult men. Available data suggests that almost 70 percent of births to
teenage girls are fathered by men over age 20.
(C) Surveys of teen mothers have revealed that a
majority of such mothers have histories of sexual and physical abuse, primarily with older adult men.
(8) The negative consequences of an out-of-wedlock birth
on the mother, the child, the family, and society are well
documented as follows:
(A) Young women 17 and under who give birth outside
of marriage are more likely to go on public assistance
and to spend more years on welfare once enrolled. These
combined effects of ‘‘younger and longer’’ increase total
AFDC costs per household by 25 percent to 30 percent
for 17-year-olds.
(B) Children born out-of-wedlock have a substantially
higher risk of being born at a very low or moderately
low birth weight.
(C) Children born out-of-wedlock are more likely to
experience low verbal cognitive attainment, as well as more
child abuse, and neglect.
(D) Children born out-of-wedlock were more likely to
have lower cognitive scores, lower educational aspirations,
and a greater likelihood of becoming teenage parents themselves.
(E) Being born out-of-wedlock significantly reduces the
chances of the child growing up to have an intact marriage.
(F) Children born out-of-wedlock are 3 times more
likely to be on welfare when they grow up.
(9) Currently 35 percent of children in single-parent homes
were born out-of-wedlock, nearly the same percentage as that
of children in single-parent homes whose parents are divorced
(37 percent). While many parents find themselves, through
divorce or tragic circumstances beyond their control, facing
the difficult task of raising children alone, nevertheless, the
negative consequences of raising children in single-parent
homes are well documented as follows:
(A) Only 9 percent of married-couple families with
children under 18 years of age have income below the
national poverty level. In contrast, 46 percent of femaleheaded households with children under 18 years of age
are below the national poverty level.
(B) Among single-parent families, nearly 1⁄2 of the
mothers who never married received AFDC while only
1⁄5 of divorced mothers received AFDC.

110 STAT. 2112

PUBLIC LAW 104–193—AUG. 22, 1996
(C) Children born into families receiving welfare assistance are 3 times more likely to be on welfare when they
reach adulthood than children not born into families receiving welfare.
(D) Mothers under 20 years of age are at the greatest
risk of bearing low birth weight babies.
(E) The younger the single-parent mother, the less
likely she is to finish high school.
(F) Young women who have children before finishing
high school are more likely to receive welfare assistance
for a longer period of time.
(G) Between 1985 and 1990, the public cost of births
to teenage mothers under the aid to families with dependent children program, the food stamp program, and the
medicaid program has been estimated at $120,000,000,000.
(H) The absence of a father in the life of a child
has a negative effect on school performance and peer
adjustment.
(I) Children of teenage single parents have lower cognitive scores, lower educational aspirations, and a greater
likelihood of becoming teenage parents themselves.
(J) Children of single-parent homes are 3 times more
likely to fail and repeat a year in grade school than are
children from intact 2-parent families.
(K) Children from single-parent homes are almost 4
times more likely to be expelled or suspended from school.
(L) Neighborhoods with larger percentages of youth
aged 12 through 20 and areas with higher percentages
of single-parent households have higher rates of violent
crime.
(M) Of those youth held for criminal offenses within
the State juvenile justice system, only 29.8 percent lived
primarily in a home with both parents. In contrast to
these incarcerated youth, 73.9 percent of the 62,800,000
children in the Nation’s resident population were living
with both parents.
(10) Therefore, in light of this demonstration of the crisis
in our Nation, it is the sense of the Congress that prevention
of out-of-wedlock pregnancy and reduction in out-of-wedlock
birth are very important Government interests and the policy
contained in part A of title IV of the Social Security Act (as
amended by section 103(a) of this Act) is intended to address
the crisis.

SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.

Except as otherwise specifically provided, wherever in this title
an amendment is expressed in terms of an amendment to or repeal
of a section or other provision, the reference shall be considered
to be made to that section or other provision of the Social Security
Act.
SEC. 103. BLOCK GRANTS TO STATES.

42 USC prec.
601, 601–610,
612, 613, 615–
617.

(a) IN GENERAL.—Part A of title IV (42 U.S.C. 601 et seq.)
is amended—
(1) by striking all that precedes section 418 (as added
by section 603(b)(2) of this Act) and inserting the following:

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2113

‘‘PART A—BLOCK GRANTS TO STATES FOR
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
‘‘SEC. 401. PURPOSE.

42 USC 601.

‘‘(a) IN GENERAL.—The purpose of this part is to increase the
flexibility of States in operating a program designed to—
‘‘(1) provide assistance to needy families so that children
may be cared for in their own homes or in the homes of
relatives;
‘‘(2) end the dependence of needy parents on government
benefits by promoting job preparation, work, and marriage;
‘‘(3) prevent and reduce the incidence of out-of-wedlock
pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and
‘‘(4) encourage the formation and maintenance of two-parent families.
‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part shall not be interpreted to entitle any individual or family to assistance under any
State program funded under this part.
‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.

‘‘(a) IN GENERAL.—As used in this part, the term ‘eligible State’
means, with respect to a fiscal year, a State that, during the
2-year period immediately preceding the fiscal year, has submitted
to the Secretary a plan that the Secretary has found includes
the following:
‘‘(1) OUTLINE OF FAMILY ASSISTANCE PROGRAM.—
‘‘(A) GENERAL PROVISIONS.—A written document that
outlines how the State intends to do the following:
‘‘(i) Conduct a program, designed to serve all political subdivisions in the State (not necessarily in a uniform manner), that provides assistance to needy families with (or expecting) children and provides parents
with job preparation, work, and support services to
enable them to leave the program and become selfsufficient.
‘‘(ii) Require a parent or caretaker receiving assistance under the program to engage in work (as defined
by the State) once the State determines the parent
or caretaker is ready to engage in work, or once the
parent or caretaker has received assistance under the
program for 24 months (whether or not consecutive),
whichever is earlier.
‘‘(iii) Ensure that parents and caretakers receiving
assistance under the program engage in work activities
in accordance with section 407.
‘‘(iv) Take such reasonable steps as the State
deems necessary to restrict the use and disclosure of
information about individuals and families receiving
assistance under the program attributable to funds
provided by the Federal Government.
‘‘(v) Establish goals and take action to prevent
and reduce the incidence of out-of-wedlock pregnancies,
with special emphasis on teenage pregnancies, and
establish numerical goals for reducing the illegitimacy

42 USC 602.

110 STAT. 2114

PUBLIC LAW 104–193—AUG. 22, 1996
ratio of the State (as defined in section 403(a)(2)(B))
for calendar years 1996 through 2005.
‘‘(vi) Conduct a program, designed to reach State
and local law enforcement officials, the education system, and relevant counseling services, that provides
education and training on the problem of statutory
rape so that teenage pregnancy prevention programs
may be expanded in scope to include men.
‘‘(B) SPECIAL PROVISIONS.—
‘‘(i) The document shall indicate whether the State
intends to treat families moving into the State from
another State differently than other families under
the program, and if so, how the State intends to treat
such families under the program.
‘‘(ii) The document shall indicate whether the State
intends to provide assistance under the program to
individuals who are not citizens of the United States,
and if so, shall include an overview of such assistance.
‘‘(iii) The document shall set forth objective criteria
for the delivery of benefits and the determination of
eligibility and for fair and equitable treatment, including an explanation of how the State will provide
opportunities for recipients who have been adversely
affected to be heard in a State administrative or appeal
process.
‘‘(iv) Not later than 1 year after the date of enactment of this Act, unless the chief executive officer
of the State opts out of this provision by notifying
the Secretary, a State shall, consistent with the exception provided in section 407(e)(2), require a parent
or caretaker receiving assistance under the program
who, after receiving such assistance for 2 months is
not exempt from work requirements and is not engaged
in work, as determined under section 407(c), to participate in community service employment, with minimum
hours per week and tasks to be determined by the
State.
‘‘(2) CERTIFICATION THAT THE STATE WILL OPERATE A CHILD
SUPPORT ENFORCEMENT PROGRAM.—A certification by the chief
executive officer of the State that, during the fiscal year, the
State will operate a child support enforcement program under
the State plan approved under part D.
‘‘(3) CERTIFICATION THAT THE STATE WILL OPERATE A FOSTER
CARE AND ADOPTION ASSISTANCE PROGRAM.—A certification by
the chief executive officer of the State that, during the fiscal
year, the State will operate a foster care and adoption assistance program under the State plan approved under part E,
and that the State will take such actions as are necessary
to ensure that children receiving assistance under such part
are eligible for medical assistance under the State plan under
title XIX.
‘‘(4) CERTIFICATION OF THE ADMINISTRATION OF THE PROGRAM.—A certification by the chief executive officer of the State
specifying which State agency or agencies will administer and
supervise the program referred to in paragraph (1) for the
fiscal year, which shall include assurances that local governments and private sector organizations—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2115

‘‘(A) have been consulted regarding the plan and design
of welfare services in the State so that services are provided
in a manner appropriate to local populations; and
‘‘(B) have had at least 45 days to submit comments
on the plan and the design of such services.
‘‘(5) CERTIFICATION THAT THE STATE WILL PROVIDE INDIANS
WITH EQUITABLE ACCESS TO ASSISTANCE.—A certification by the
chief executive officer of the State that, during the fiscal year,
the State will provide each member of an Indian tribe, who
is domiciled in the State and is not eligible for assistance
under a tribal family assistance plan approved under section
412, with equitable access to assistance under the State program funded under this part attributable to funds provided
by the Federal Government.
‘‘(6) CERTIFICATION OF STANDARDS AND PROCEDURES TO
ENSURE AGAINST PROGRAM FRAUD AND ABUSE.—A certification
by the chief executive officer of the State that the State has
established and is enforcing standards and procedures to ensure
against program fraud and abuse, including standards and
procedures concerning nepotism, conflicts of interest among
individuals responsible for the administration and supervision
of the State program, kickbacks, and the use of political
patronage.
‘‘(7) OPTIONAL CERTIFICATION OF STANDARDS AND PROCEDURES TO ENSURE THAT THE STATE WILL SCREEN FOR AND IDENTIFY DOMESTIC VIOLENCE.—
‘‘(A) IN GENERAL.—At the option of the State, a certification by the chief executive officer of the State that the
State has established and is enforcing standards and procedures to—
‘‘(i) screen and identify individuals receiving assistance under this part with a history of domestic violence
while maintaining the confidentiality of such
individuals;
‘‘(ii) refer such individuals to counseling and
supportive services; and
‘‘(iii) waive, pursuant to a determination of good
cause, other program requirements such as time limits
(for so long as necessary) for individuals receiving
assistance, residency requirements, child support
cooperation requirements, and family cap provisions,
in cases where compliance with such requirements
would make it more difficult for individuals receiving
assistance under this part to escape domestic violence
or unfairly penalize such individuals who are or have
been victimized by such violence, or individuals who
are at risk of further domestic violence.
‘‘(B) DOMESTIC VIOLENCE DEFINED.—For purposes of
this paragraph, the term ‘domestic violence’ has the same
meaning as the term ‘battered or subjected to extreme
cruelty’, as defined in section 408(a)(7)(C)(iii).
‘‘(b) PUBLIC AVAILABILITY OF STATE PLAN SUMMARY.—The State
shall make available to the public a summary of any plan submitted
by the State under this section.
‘‘SEC. 403. GRANTS TO STATES.

‘‘(a) GRANTS.—

42 USC 603.

110 STAT. 2116

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(1) FAMILY ASSISTANCE GRANT.—
‘‘(A) IN GENERAL.—Each eligible State shall be entitled
to receive from the Secretary, for each of fiscal years 1996,
1997, 1998, 1999, 2000, 2001, and 2002, a grant in an
amount equal to the State family assistance grant.
‘‘(B) STATE FAMILY ASSISTANCE GRANT DEFINED.—As
used in this part, the term ‘State family assistance grant’
means the greatest of—
‘‘(i) 1⁄3 of the total amount required to be paid
to the State under former section 403 (as in effect
on September 30, 1995) for fiscal years 1992, 1993,
and 1994 (other than with respect to amounts expended
by the State for child care under subsection (g) or
(i) of former section 402 (as so in effect));
‘‘(ii)(I) the total amount required to be paid to
the State under former section 403 for fiscal year 1994
(other than with respect to amounts expended by the
State for child care under subsection (g) or (i) of former
section 402 (as so in effect)); plus
‘‘(II) an amount equal to 85 percent of the amount
(if any) by which the total amount required to be
paid to the State under former section 403(a)(5) for
emergency assistance for fiscal year 1995 exceeds the
total amount required to be paid to the State under
former section 403(a)(5) for fiscal year 1994, if, during
fiscal year 1994 or 1995, the Secretary approved under
former section 402 an amendment to the former State
plan with respect to the provision of emergency assistance; or
‘‘(iii) 4⁄3 of the total amount required to be paid
to the State under former section 403 (as in effect
on September 30, 1995) for the 1st 3 quarters of fiscal
year 1995 (other than with respect to amounts
expended by the State under the State plan approved
under part F (as so in effect) or for child care under
subsection (g) or (i) of former section 402 (as so in
effect)), plus the total amount required to be paid to
the State for fiscal year 1995 under former section
403(l) (as so in effect).
‘‘(C) TOTAL AMOUNT REQUIRED TO BE PAID TO THE STATE
UNDER FORMER SECTION 403 DEFINED.—As used in this part,
the term ‘total amount required to be paid to the State
under former section 403’ means, with respect to a fiscal
year—
‘‘(i) in the case of a State to which section 1108
does not apply, the sum of—
‘‘(I) the Federal share of maintenance assistance expenditures for the fiscal year, before reduction pursuant to subparagraph (B) or (C) of section
403(b)(2) (as in effect on September 30, 1995),
as reported by the State on ACF Form 231;
‘‘(II) the Federal share of administrative
expenditures (including administrative expenditures for the development of management information systems) for the fiscal year, as reported by
the State on ACF Form 231;

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2117

‘‘(III) the Federal share of emergency assistance expenditures for the fiscal year, as reported
by the State on ACF Form 231;
‘‘(IV) the Federal share of expenditures for
the fiscal year with respect to child care pursuant
to subsections (g) and (i) of former section 402
(as in effect on September 30, 1995), as reported
by the State on ACF Form 231; and
‘‘(V) the Federal obligations made to the State
under section 403 for the fiscal year with respect
to the State program operated under part F (as
in effect on September 30, 1995), as determined
by the Secretary, including additional obligations
or reductions in obligations made after the close
of the fiscal year; and
‘‘(ii) in the case of a State to which section 1108
applies, the lesser of—
‘‘(I) the sum described in clause (i); or
‘‘(II) the total amount certified by the Secretary under former section 403 (as in effect during
the fiscal year) with respect to the territory.
‘‘(D) INFORMATION TO BE USED IN DETERMINING
AMOUNTS.—
‘‘(i) FOR FISCAL YEARS 1992 AND 1993.—
‘‘(I) In determining the amounts described in
subclauses (I) through (IV) of subparagraph (C)(i)
for any State for each of fiscal years 1992 and
1993, the Secretary shall use information available
as of April 28, 1995.
‘‘(II) In determining the amount described in
subparagraph (C)(i)(V) for any State for each of
fiscal years 1992 and 1993, the Secretary shall
use information available as of January 6, 1995.
‘‘(ii) FOR FISCAL YEAR 1994.—In determining the
amounts described in subparagraph (C)(i) for any State
for fiscal year 1994, the Secretary shall use information
available as of April 28, 1995.
‘‘(iii) FOR FISCAL YEAR 1995.—
‘‘(I) In determining the amount described in
subparagraph (B)(ii)(II) for any State for fiscal year
1995, the Secretary shall use the information
which was reported by the States and estimates
made by the States with respect to emergency
assistance expenditures and was available as of
August 11, 1995.
‘‘(II) In determining the amounts described in
subclauses (I) through (III) of subparagraph (C)(i)
for any State for fiscal year 1995, the Secretary
shall use information available as of October 2,
1995.
‘‘(III) In determining the amount described in
subparagraph (C)(i)(IV) for any State for fiscal year
1995, the Secretary shall use information available
as of February 28, 1996.
‘‘(IV) In determining the amount described in
subparagraph (C)(i)(V) for any State for fiscal year

110 STAT. 2118

PUBLIC LAW 104–193—AUG. 22, 1996
1995, the Secretary shall use information available
as of October 5, 1995.
‘‘(E) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there
are appropriated for fiscal years 1996, 1997, 1998, 1999,
2000, 2001, and 2002 such sums as are necessary for grants
under this paragraph.
‘‘(2) BONUS TO REWARD DECREASE IN ILLEGITIMACY.—
‘‘(A) IN GENERAL.—Each eligible State shall be entitled
to receive from the Secretary a grant for each bonus year
for which the State demonstrates a net decrease in outof-wedlock births.
‘‘(B) AMOUNT OF GRANT.—
‘‘(i) IF 5 ELIGIBLE STATES.—If there are 5 eligible
States for a bonus year, the amount of the grant shall
be $20,000,000.
‘‘(ii) IF FEWER THAN 5 ELIGIBLE STATES.—If there
are fewer than 5 eligible States for a bonus year,
the amount of the grant shall be $25,000,000.
‘‘(C) DEFINITIONS.—As used in this paragraph:
‘‘(i) ELIGIBLE STATE.—
‘‘(I) IN GENERAL.—The term ‘eligible State’
means a State that the Secretary determines meets
the following requirements:
‘‘(aa) The State demonstrates that the
number of out-of-wedlock births that occurred
in the State during the most recent 2-year
period for which such information is available
decreased as compared to the number of such
births that occurred during the previous 2year period, and the magnitude of the decrease
for the State for the period is not exceeded
by the magnitude of the corresponding
decrease for 5 or more other States for the
period.
‘‘(bb) The rate of induced pregnancy terminations in the State for the fiscal year is less
than the rate of induced pregnancy terminations in the State for fiscal year 1995.
‘‘(II) DISREGARD OF CHANGES IN DATA DUE TO
CHANGED REPORTING METHODS.—In making the
determination required by subclause (I), the Secretary shall disregard—
‘‘(aa) any difference between the number
of out-of-wedlock births that occurred in a
State for a fiscal year and the number of outof-wedlock births that occurred in a State for
fiscal year 1995 which is attributable to a
change in State methods of reporting data
used to calculate the number of out-of-wedlock
births; and
‘‘(bb) any difference between the rate of
induced pregnancy terminations in a State for
a fiscal year and such rate for fiscal year 1995
which is attributable to a change in State
methods of reporting data used to calculate
such rate.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2119

‘‘(ii) BONUS YEAR.—The term ‘bonus year’ means
fiscal years 1999, 2000, 2001, and 2002.
‘‘(D) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there
are appropriated for fiscal years 1999 through 2002, such
sums as are necessary for grants under this paragraph.
‘‘(3) SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN
CERTAIN STATES.—
‘‘(A) IN GENERAL.—Each qualifying State shall, subject
to subparagraph (F), be entitled to receive from the Secretary—
‘‘(i) for fiscal year 1998 a grant in an amount
equal to 2.5 percent of the total amount required to
be paid to the State under former section 403 (as
in effect during fiscal year 1994) for fiscal year 1994;
and
‘‘(ii) for each of fiscal years 1999, 2000, and 2001,
a grant in an amount equal to the sum of—
‘‘(I) the amount (if any) required to be paid
to the State under this paragraph for the immediately preceding fiscal year; and
‘‘(II) 2.5 percent of the sum of—
‘‘(aa) the total amount required to be paid
to the State under former section 403 (as in
effect during fiscal year 1994) for fiscal year
1994; and
‘‘(bb) the amount (if any) required to be
paid to the State under this paragraph for
the fiscal year preceding the fiscal year for
which the grant is to be made.
‘‘(B) PRESERVATION OF GRANT WITHOUT INCREASES FOR
STATES FAILING TO REMAIN QUALIFYING STATES.—Each State
that is not a qualifying State for a fiscal year specified
in subparagraph (A)(ii) but was a qualifying State for a
prior fiscal year shall, subject to subparagraph (F), be
entitled to receive from the Secretary for the specified
fiscal year, a grant in an amount equal to the amount
required to be paid to the State under this paragraph
for the most recent fiscal year for which the State was
a qualifying State.
‘‘(C) QUALIFYING STATE.—
‘‘(i) IN GENERAL.—For purposes of this paragraph,
a State is a qualifying State for a fiscal year if—
‘‘(I) the level of welfare spending per poor person by the State for the immediately preceding
fiscal year is less than the national average level
of State welfare spending per poor person for such
preceding fiscal year; and
‘‘(II) the population growth rate of the State
(as determined by the Bureau of the Census) for
the most recent fiscal year for which information
is available exceeds the average population growth
rate for all States (as so determined) for such
most recent fiscal year.
‘‘(ii) STATE MUST QUALIFY IN FISCAL YEAR 1997.—
Notwithstanding clause (i), a State shall not be a
qualifying State for any fiscal year after 1998 by reason

110 STAT. 2120

PUBLIC LAW 104–193—AUG. 22, 1996
of clause (i) if the State is not a qualifying State
for fiscal year 1998 by reason of clause (i).
‘‘(iii) CERTAIN STATES DEEMED QUALIFYING
STATES.—For purposes of this paragraph, a State is
deemed to be a qualifying State for fiscal years 1998,
1999, 2000, and 2001 if—
‘‘(I) the level of welfare spending per poor person by the State for fiscal year 1994 is less than
35 percent of the national average level of State
welfare spending per poor person for fiscal year
1994; or
‘‘(II) the population of the State increased by
more than 10 percent from April 1, 1990 to July
1, 1994, according to the population estimates in
publication CB94–204 of the Bureau of the Census.
‘‘(D) DEFINITIONS.—As used in this paragraph:
‘‘(i) LEVEL OF WELFARE SPENDING PER POOR PERSON.—The term ‘level of State welfare spending per
poor person’ means, with respect to a State and a
fiscal year—
‘‘(I) the sum of—
‘‘(aa) the total amount required to be paid
to the State under former section 403 (as in
effect during fiscal year 1994) for fiscal year
1994; and
‘‘(bb) the amount (if any) paid to the State
under this paragraph for the immediately
preceding fiscal year; divided by
‘‘(II) the number of individuals, according to
the 1990 decennial census, who were residents
of the State and whose income was below the
poverty line.
‘‘(ii) NATIONAL AVERAGE LEVEL OF STATE WELFARE
SPENDING PER POOR PERSON.—The term ‘national average level of State welfare spending per poor person’
means, with respect to a fiscal year, an amount
equal to—
‘‘(I) the total amount required to be paid to
the States under former section 403 (as in effect
during fiscal year 1994) for fiscal year 1994;
divided by
‘‘(II) the number of individuals, according to
the 1990 decennial census, who were residents
of any State and whose income was below the
poverty line.
‘‘(iii) STATE.—The term ‘State’ means each of the
50 States of the United States and the District of
Columbia.
‘‘(E) APPROPRIATION.—Out of any money in the
Treasury of the United States not otherwise appropriated,
there are appropriated for fiscal years 1998, 1999, 2000,
and 2001 such sums as are necessary for grants under
this paragraph, in a total amount not to exceed
$800,000,000.
‘‘(F) GRANTS REDUCED PRO RATA IF INSUFFICIENT APPROPRIATIONS.—If the amount appropriated pursuant to this
paragraph for a fiscal year is less than the total amount

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2121

of payments otherwise required to be made under this
paragraph for the fiscal year, then the amount otherwise
payable to any State for the fiscal year under this paragraph shall be reduced by a percentage equal to the amount
so appropriated divided by such total amount.
‘‘(G) BUDGET SCORING.—Notwithstanding section
257(b)(2) of the Balanced Budget and Emergency Deficit
Control Act of 1985, the baseline shall assume that no
grant shall be made under this paragraph after fiscal year
2001.
‘‘(4) BONUS TO REWARD HIGH PERFORMANCE STATES.—
‘‘(A) IN GENERAL.—The Secretary shall make a grant
pursuant to this paragraph to each State for each bonus
year for which the State is a high performing State.
‘‘(B) AMOUNT OF GRANT.—
‘‘(i) IN GENERAL.—Subject to clause (ii) of this
subparagraph, the Secretary shall determine the
amount of the grant payable under this paragraph
to a high performing State for a bonus year, which
shall be based on the score assigned to the State under
subparagraph (D)(i) for the fiscal year that immediately
precedes the bonus year.
‘‘(ii) LIMITATION.—The amount payable to a State
under this paragraph for a bonus year shall not exceed
5 percent of the State family assistance grant.
‘‘(C) FORMULA FOR MEASURING STATE PERFORMANCE.—
Not later than 1 year after the date of the enactment
of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the Secretary, in consultation with
the National Governors’ Association and the American Public Welfare Association, shall develop a formula for measuring State performance in operating the State program
funded under this part so as to achieve the goals set
forth in section 401(a).
‘‘(D) SCORING OF STATE PERFORMANCE; SETTING OF
PERFORMANCE THRESHOLDS.—For each bonus year, the Secretary shall—
‘‘(i) use the formula developed under subparagraph
(C) to assign a score to each eligible State for the
fiscal year that immediately precedes the bonus
year; and
‘‘(ii) prescribe a performance threshold in such a
manner so as to ensure that—
‘‘(I) the average annual total amount of grants
to be made under this paragraph for each bonus
year equals $200,000,000; and
‘‘(II) the total amount of grants to be made
under this paragraph for all bonus years equals
$1,000,000,000.
‘‘(E) DEFINITIONS.—As used in this paragraph:
‘‘(i) BONUS YEAR.—The term ‘bonus year’ means
fiscal years 1999, 2000, 2001, 2002, and 2003.
‘‘(ii) HIGH PERFORMING STATE.—The term ‘high
performing State’ means, with respect to a bonus year,
an eligible State whose score assigned pursuant to
subparagraph (D)(i) for the fiscal year immediately
preceding the bonus year equals or exceeds the

110 STAT. 2122

PUBLIC LAW 104–193—AUG. 22, 1996
performance threshold prescribed under subparagraph
(D)(ii) for such preceding fiscal year.
‘‘(F) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there
are appropriated for fiscal years 1999 through 2003
$1,000,000,000 for grants under this paragraph.
‘‘(b) CONTINGENCY FUND.—
‘‘(1) ESTABLISHMENT.—There is hereby established in the
Treasury of the United States a fund which shall be known
as the ‘Contingency Fund for State Welfare Programs’ (in this
section referred to as the ‘Fund’).
‘‘(2) DEPOSITS INTO FUND.—Out of any money in the Treasury of the United States not otherwise appropriated, there
are appropriated for fiscal years 1997, 1998, 1999, 2000, and
2001 such sums as are necessary for payment to the Fund
in a total amount not to exceed $2,000,000,000.
‘‘(3) GRANTS.—
‘‘(A) PROVISIONAL PAYMENTS.—If an eligible State submits to the Secretary a request for funds under this paragraph during an eligible month, the Secretary shall, subject
to this paragraph, pay to the State, from amounts appropriated pursuant to paragraph (2), an amount equal to
the amount of funds so requested.
‘‘(B) PAYMENT PRIORITY.—The Secretary shall make
payments under subparagraph (A) in the order in which
the Secretary receives requests for such payments.
‘‘(C) LIMITATIONS.—
‘‘(i) MONTHLY PAYMENT TO A STATE.—The total
amount paid to a single State under subparagraph
(A) during a month shall not exceed 1⁄12 of 20 percent
of the State family assistance grant.
‘‘(ii) PAYMENTS TO ALL STATES.—The total amount
paid to all States under subparagraph (A) during fiscal
years 1997 through 2001 shall not exceed the total
amount appropriated pursuant to paragraph (2).
‘‘(4) ANNUAL RECONCILIATION.—Notwithstanding paragraph
(3), at the end of each fiscal year, each State shall remit
to the Secretary an amount equal to the amount (if any) by
which the total amount paid to the State under paragraph
(3) during the fiscal year exceeds—
‘‘(A) the Federal medical assistance percentage for the
State for the fiscal year (as defined in section 1905(b),
as in effect on September 30, 1995) of the amount (if
any) by which—
‘‘(i) if the Secretary makes a payment to the State
under section 418(a)(2) in the fiscal year—
‘‘(I) the expenditures under the State program
funded under this part for the fiscal year, excluding any amounts made available by the Federal
Government (except amounts paid to the State
under paragraph (3) during the fiscal year that
have been expended by the State) and any amounts
expended by the State during the fiscal year for
child care; exceeds
‘‘(II) historic State expenditures (as defined
in section 409(a)(7)(B)(iii)), excluding the expenditures by the State for child care under subsection

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2123

(g) or (i) of section 402 (as in effect during fiscal
year 1994) for fiscal year 1994 minus any Federal
payment with respect to such child care expenditures; or
‘‘(ii) if the Secretary does not make a payment
to the State under section 418(a)(2) in the fiscal year—
‘‘(I) the expenditures under the State program
funded under this part for the fiscal year (excluding any amounts made available by the Federal
Government, except amounts paid to the State
under paragraph (3) during the fiscal year that
have been expended by the State); exceeds
‘‘(II) historic State expenditures (as defined
in section 409(a)(7)(B)(iii)); multiplied by
‘‘(B) 1⁄12 times the number of months during the fiscal
year for which the Secretary makes a payment to the
State under this subsection.
‘‘(5) ELIGIBLE MONTH.—As used in paragraph (3)(A), the
term ‘eligible month’ means, with respect to a State, a month
in the 2-month period that begins with any month for which
the State is a needy State.
‘‘(6) NEEDY STATE.—For purposes of paragraph (5), a State
is a needy State for a month if—
‘‘(A) the average rate of—
‘‘(i) total unemployment in such State (seasonally
adjusted) for the period consisting of the most recent
3 months for which data for all States are published
equals or exceeds 6.5 percent; and
‘‘(ii) total unemployment in such State (seasonally
adjusted) for the 3-month period equals or exceeds
110 percent of such average rate for either (or both)
of the corresponding 3-month periods ending in the
2 preceding calendar years; or
‘‘(B) as determined by the Secretary of Agriculture
(in the discretion of the Secretary of Agriculture), the
monthly average number of individuals (as of the last day
of each month) participating in the food stamp program
in the State in the then most recently concluded 3-month
period for which data are available exceeds by not less
than 10 percent the lesser of—
‘‘(i) the monthly average number of individuals
(as of the last day of each month) in the State that
would have participated in the food stamp program
in the corresponding 3-month period in fiscal year 1994
if the amendments made by titles IV and VIII of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout
fiscal year 1994; or
‘‘(ii) the monthly average number of individuals
(as of the last day of each month) in the State that
would have participated in the food stamp program
in the corresponding 3-month period in fiscal year 1995
if the amendments made by titles IV and VIII of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout
fiscal year 1995.
‘‘(7) OTHER TERMS DEFINED.—As used in this subsection:

110 STAT. 2124

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(A) STATE.—The term ‘State’ means each of the 50
States of the United States and the District of Columbia.
‘‘(B) SECRETARY.—The term ‘Secretary’ means the Secretary of the Treasury.
‘‘(8) ANNUAL REPORTS.—The Secretary shall annually report
to the Congress on the status of the Fund.

42 USC 604.

‘‘SEC. 404. USE OF GRANTS.

‘‘(a) GENERAL RULES.—Subject to this part, a State to which
a grant is made under section 403 may use the grant—
‘‘(1) in any manner that is reasonably calculated to accomplish the purpose of this part, including to provide low income
households with assistance in meeting home heating and cooling costs; or
‘‘(2) in any manner that the State was authorized to use
amounts received under part A or F, as such parts were in
effect on September 30, 1995.
‘‘(b) LIMITATION ON USE OF GRANT FOR ADMINISTRATIVE
PURPOSES.—
‘‘(1) LIMITATION.—A State to which a grant is made under
section 403 shall not expend more than 15 percent of the
grant for administrative purposes.
‘‘(2) EXCEPTION.—Paragraph (1) shall not apply to the use
of a grant for information technology and computerization
needed for tracking or monitoring required by or under this
part.
‘‘(c) AUTHORITY TO TREAT INTERSTATE IMMIGRANTS UNDER
RULES OF FORMER STATE.—A State operating a program funded
under this part may apply to a family the rules (including benefit
amounts) of the program funded under this part of another State
if the family has moved to the State from the other State and
has resided in the State for less than 12 months.
‘‘(d) AUTHORITY TO USE PORTION OF GRANT FOR OTHER PURPOSES.—
‘‘(1) IN GENERAL.—A State may use not more than 30
percent of the amount of any grant made to the State under
section 403(a) for a fiscal year to carry out a State program
pursuant to any or all of the following provisions of law:
‘‘(A) Title XX of this Act.
‘‘(B) The Child Care and Development Block Grant
Act of 1990.
‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE TO TITLE XX
PROGRAMS.—Notwithstanding paragraph (1), not more than 1⁄3
of the total amount paid to a State under this part for a
fiscal year that is used to carry out State programs pursuant
to provisions of law specified in paragraph (1) may be used
to carry out State programs pursuant to title XX.
‘‘(3) APPLICABLE RULES.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B) of this paragraph, any amount paid to a State under
this part that is used to carry out a State program pursuant
to a provision of law specified in paragraph (1) shall not
be subject to the requirements of this part, but shall be
subject to the requirements that apply to Federal funds
provided directly under the provision of law to carry out
the program, and the expenditure of any amount so used

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2125

shall not be considered to be an expenditure under this
part.
‘‘(B) EXCEPTION RELATING TO TITLE XX PROGRAMS.—
All amounts paid to a State under this part that are
used to carry out State programs pursuant to title XX
shall be used only for programs and services to children
or their families whose income is less than 200 percent
of the income official poverty line (as defined by the Office
of Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size
involved.
‘‘(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS FOR ASSISTANCE.—A State may reserve amounts paid to the State under this
part for any fiscal year for the purpose of providing, without fiscal
year limitation, assistance under the State program funded under
this part.
‘‘(f) AUTHORITY TO OPERATE EMPLOYMENT PLACEMENT
PROGRAM.—A State to which a grant is made under section 403
may use the grant to make payments (or provide job placement
vouchers) to State-approved public and private job placement agencies that provide employment placement services to individuals
who receive assistance under the State program funded under this
part.
‘‘(g) IMPLEMENTATION OF ELECTRONIC BENEFIT TRANSFER
SYSTEM.—A State to which a grant is made under section 403
is encouraged to implement an electronic benefit transfer system
for providing assistance under the State program funded under
this part, and may use the grant for such purpose.
‘‘(h) USE OF FUNDS FOR INDIVIDUAL DEVELOPMENT ACCOUNTS.—
‘‘(1) IN GENERAL.—A State to which a grant is made under
section 403 may use the grant to carry out a program to
fund individual development accounts (as defined in paragraph
(2)) established by individuals eligible for assistance under
the State program funded under this part.
‘‘(2) INDIVIDUAL DEVELOPMENT ACCOUNTS.—
‘‘(A) ESTABLISHMENT.—Under a State program carried
out under paragraph (1), an individual development
account may be established by or on behalf of an individual
eligible for assistance under the State program operated
under this part for the purpose of enabling the individual
to accumulate funds for a qualified purpose described in
subparagraph (B).
‘‘(B) QUALIFIED PURPOSE.—A qualified purpose
described in this subparagraph is 1 or more of the following,
as provided by the qualified entity providing assistance
to the individual under this subsection:
‘‘(i) POSTSECONDARY EDUCATIONAL EXPENSES.—
Postsecondary educational expenses paid from an
individual development account directly to an eligible
educational institution.
‘‘(ii) FIRST HOME PURCHASE.—Qualified acquisition
costs with respect to a qualified principal residence
for a qualified first-time homebuyer, if paid from an
individual development account directly to the persons
to whom the amounts are due.

110 STAT. 2126

Regulations.

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(iii) BUSINESS CAPITALIZATION.—Amounts paid
from an individual development account directly to
a business capitalization account which is established
in a federally insured financial institution and is
restricted to use solely for qualified business capitalization expenses.
‘‘(C) CONTRIBUTIONS TO BE FROM EARNED INCOME.—
An individual may only contribute to an individual development account such amounts as are derived from earned
income, as defined in section 911(d)(2) of the Internal Revenue Code of 1986.
‘‘(D) WITHDRAWAL OF FUNDS.—The Secretary shall
establish such regulations as may be necessary to ensure
that funds held in an individual development account are
not withdrawn except for 1 or more of the qualified purposes described in subparagraph (B).
‘‘(3) REQUIREMENTS.—
‘‘(A) IN GENERAL.—An individual development account
established under this subsection shall be a trust created
or organized in the United States and funded through
periodic contributions by the establishing individual and
matched by or through a qualified entity for a qualified
purpose (as described in paragraph (2)(B)).
‘‘(B) QUALIFIED ENTITY.—As used in this subsection,
the term ‘qualified entity’ means—
‘‘(i) a not-for-profit organization described in section 501(c)(3) of the Internal Revenue Code of 1986
and exempt from taxation under section 501(a) of such
Code; or
‘‘(ii) a State or local government agency acting
in cooperation with an organization described in
clause (i).
‘‘(4) NO REDUCTION IN BENEFITS.—Notwithstanding any
other provision of Federal law (other than the Internal Revenue
Code of 1986) that requires consideration of 1 or more financial
circumstances of an individual, for the purpose of determining
eligibility to receive, or the amount of, any assistance or benefit
authorized by such law to be provided to or for the benefit
of such individual, funds (including interest accruing) in an
individual development account under this subsection shall be
disregarded for such purpose with respect to any period during
which such individual maintains or makes contributions into
such an account.
‘‘(5) DEFINITIONS.—As used in this subsection—
‘‘(A) ELIGIBLE EDUCATIONAL INSTITUTION.—The term
‘eligible educational institution’ means the following:
‘‘(i) An institution described in section 481(a)(1)
or 1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1088(a)(1) or 1141(a)), as such sections are in
effect on the date of the enactment of this subsection.
‘‘(ii) An area vocational education school (as
defined in subparagraph (C) or (D) of section 521(4)
of the Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2471(4))) which is
in any State (as defined in section 521(33) of such
Act), as such sections are in effect on the date of
the enactment of this subsection.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2127

‘‘(B) POST-SECONDARY EDUCATIONAL EXPENSES.—The
term ‘post-secondary educational expenses’ means—
‘‘(i) tuition and fees required for the enrollment
or attendance of a student at an eligible educational
institution, and
‘‘(ii) fees, books, supplies, and equipment required
for courses of instruction at an eligible educational
institution.
‘‘(C) QUALIFIED ACQUISITION COSTS.—The term ‘qualified acquisition costs’ means the costs of acquiring, constructing, or reconstructing a residence. The term includes
any usual or reasonable settlement, financing, or other
closing costs.
‘‘(D) QUALIFIED BUSINESS.—The term ‘qualified business’ means any business that does not contravene any
law or public policy (as determined by the Secretary).
‘‘(E) QUALIFIED BUSINESS CAPITALIZATION EXPENSES.—
The term ‘qualified business capitalization expenses’ means
qualified expenditures for the capitalization of a qualified
business pursuant to a qualified plan.
‘‘(F) QUALIFIED EXPENDITURES.—The term ‘qualified
expenditures’ means expenditures included in a qualified
plan, including capital, plant, equipment, working capital,
and inventory expenses.
‘‘(G) QUALIFIED FIRST-TIME HOMEBUYER.—
‘‘(i) IN GENERAL.—The term ‘qualified first-time
homebuyer’ means a taxpayer (and, if married, the
taxpayer’s spouse) who has no present ownership
interest in a principal residence during the 3-year
period ending on the date of acquisition of the principal
residence to which this subsection applies.
‘‘(ii) DATE OF ACQUISITION.—The term ‘date of
acquisition’ means the date on which a binding contract
to acquire, construct, or reconstruct the principal residence to which this subparagraph applies is entered
into.
‘‘(H) QUALIFIED PLAN.—The term ‘qualified plan’ means
a business plan which—
‘‘(i) is approved by a financial institution, or by
a nonprofit loan fund having demonstrated fiduciary
integrity,
‘‘(ii) includes a description of services or goods
to be sold, a marketing plan, and projected financial
statements, and
‘‘(iii) may require the eligible individual to obtain
the assistance of an experienced entrepreneurial
advisor.
‘‘(I) QUALIFIED PRINCIPAL RESIDENCE.—The term ‘qualified principal residence’ means a principal residence (within
the meaning of section 1034 of the Internal Revenue Code
of 1986), the qualified acquisition costs of which do not
exceed 100 percent of the average area purchase price
applicable to such residence (determined in accordance with
paragraphs (2) and (3) of section 143(e) of such Code).
‘‘(i) SANCTION WELFARE RECIPIENTS FOR FAILING TO ENSURE
THAT MINOR DEPENDENT CHILDREN ATTEND SCHOOL.—A State to
which a grant is made under section 403 shall not be prohibited

110 STAT. 2128

PUBLIC LAW 104–193—AUG. 22, 1996

from sanctioning a family that includes an adult who has received
assistance under any State program funded under this part attributable to funds provided by the Federal Government or under
the food stamp program, as defined in section 3(h) of the Food
Stamp Act of 1977, if such adult fails to ensure that the minor
dependent children of such adult attend school as required by
the law of the State in which the minor children reside.
‘‘(j) REQUIREMENT FOR HIGH SCHOOL DIPLOMA OR EQUIVALENT.—A State to which a grant is made under section 403 shall
not be prohibited from sanctioning a family that includes an adult
who is older than age 20 and younger than age 51 and who has
received assistance under any State program funded under this
part attributable to funds provided by the Federal Government
or under the food stamp program, as defined in section 3(h) of
the Food Stamp Act of 1977, if such adult does not have, or is
not working toward attaining, a secondary school diploma or its
recognized equivalent unless such adult has been determined in
the judgment of medical, psychiatric, or other appropriate professionals to lack the requisite capacity to complete successfully a
course of study that would lead to a secondary school diploma
or its recognized equivalent.
42 USC 605.

‘‘SEC. 405. ADMINISTRATIVE PROVISIONS.

‘‘(a) QUARTERLY.—The Secretary shall pay each grant payable
to a State under section 403 in quarterly installments, subject
to this section.
‘‘(b) NOTIFICATION.—Not later than 3 months before the payment of any such quarterly installment to a State, the Secretary
shall notify the State of the amount of any reduction determined
under section 412(a)(1)(B) with respect to the State.
‘‘(c) COMPUTATION AND CERTIFICATION OF PAYMENTS TO
STATES.—
‘‘(1) COMPUTATION.—The Secretary shall estimate the
amount to be paid to each eligible State for each quarter
under this part, such estimate to be based on a report filed
by the State containing an estimate by the State of the total
sum to be expended by the State in the quarter under the
State program funded under this part and such other information as the Secretary may find necessary.
‘‘(2) CERTIFICATION.—The Secretary of Health and Human
Services shall certify to the Secretary of the Treasury the
amount estimated under paragraph (1) with respect to a State,
reduced or increased to the extent of any overpayment or underpayment which the Secretary of Health and Human Services
determines was made under this part to the State for any
prior quarter and with respect to which adjustment has not
been made under this paragraph.
‘‘(d) PAYMENT METHOD.—Upon receipt of a certification under
subsection (c)(2) with respect to a State, the Secretary of the Treasury shall, through the Fiscal Service of the Department of the
Treasury and before audit or settlement by the General Accounting
Office, pay to the State, at the time or times fixed by the Secretary
of Health and Human Services, the amount so certified.
42 USC 606.

‘‘SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.

‘‘(a) LOAN AUTHORITY.—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2129

‘‘(1) IN GENERAL.—The Secretary shall make loans to any
loan-eligible State, for a period to maturity of not more than
3 years.
‘‘(2) LOAN-ELIGIBLE STATE.—As used in paragraph (1), the
term ‘loan-eligible State’ means a State against which a penalty
has not been imposed under section 409(a)(1).
‘‘(b) RATE OF INTEREST.—The Secretary shall charge and collect
interest on any loan made under this section at a rate equal
to the current average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity
comparable to the period to maturity of the loan.
‘‘(c) USE OF LOAN.—A State shall use a loan made to the
State under this section only for any purpose for which grant
amounts received by the State under section 403(a) may be used,
including—
‘‘(1) welfare anti-fraud activities; and
‘‘(2) the provision of assistance under the State program
to Indian families that have moved from the service area of
an Indian tribe with a tribal family assistance plan approved
under section 412.
‘‘(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO A STATE.—
The cumulative dollar amount of all loans made to a State under
this section during fiscal years 1997 through 2002 shall not exceed
10 percent of the State family assistance grant.
‘‘(e) LIMITATION ON TOTAL AMOUNT OF OUTSTANDING LOANS.—
The total dollar amount of loans outstanding under this section
may not exceed $1,700,000,000.
‘‘(f) APPROPRIATION.—Out of any money in the Treasury of
the United States not otherwise appropriated, there are appropriated such sums as may be necessary for the cost of loans under
this section.
‘‘SEC. 407. MANDATORY WORK REQUIREMENTS.

42 USC 607.

‘‘(a) PARTICIPATION RATE REQUIREMENTS.—
‘‘(1) ALL FAMILIES.—A State to which a grant is made
under section 403 for a fiscal year shall achieve the minimum
participation rate specified in the following table for the fiscal
year with respect to all families receiving assistance under
the State program funded under this part:
‘‘If the fiscal year is:
1997 ...................................................................................
1998 ...................................................................................
1999 ...................................................................................
2000 ...................................................................................
2001 ...................................................................................
2002 or thereafter ............................................................

The minimum
participation
rate is:
25
30
35
40
45
50.

‘‘(2) 2-PARENT FAMILIES.—A State to which a grant is made
under section 403 for a fiscal year shall achieve the minimum
participation rate specified in the following table for the fiscal
year with respect to 2-parent families receiving assistance
under the State program funded under this part:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1997 ...................................................................................
75
1998 ...................................................................................
75
1999 or thereafter ............................................................
90.

110 STAT. 2130

Regulations.

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(b) CALCULATION OF PARTICIPATION RATES.—
‘‘(1) ALL FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For purposes of subsection (a)(1), the participation rate for all families of a
State for a fiscal year is the average of the participation
rates for all families of the State for each month in the
fiscal year.
‘‘(B) MONTHLY PARTICIPATION RATES.—The participation rate of a State for all families of the State for a
month, expressed as a percentage, is—
‘‘(i) the number of families receiving assistance
under the State program funded under this part that
include an adult or a minor child head of household
who is engaged in work for the month; divided by
‘‘(ii) the amount by which—
‘‘(I) the number of families receiving such
assistance during the month that include an adult
or a minor child head of household receiving such
assistance; exceeds
‘‘(II) the number of families receiving such
assistance that are subject in such month to a
penalty described in subsection (e)(1) but have not
been subject to such penalty for more than 3
months within the preceding 12-month period
(whether or not consecutive).
‘‘(2) 2-PARENT FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For purposes of subsection (a)(2), the participation rate for 2-parent families
of a State for a fiscal year is the average of the participation
rates for 2-parent families of the State for each month
in the fiscal year.
‘‘(B) MONTHLY PARTICIPATION RATES.—The participation rate of a State for 2-parent families of the State
for a month shall be calculated by use of the formula
set forth in paragraph (1)(B), except that in the formula
the term ‘number of 2-parent families’ shall be substituted
for the term ‘number of families’ each place such latter
term appears.
‘‘(3) PRO RATA REDUCTION OF PARTICIPATION RATE DUE TO
CASELOAD REDUCTIONS NOT REQUIRED BY FEDERAL LAW.—
‘‘(A) IN GENERAL.—The Secretary shall prescribe regulations for reducing the minimum participation rate otherwise required by this section for a fiscal year by the number
of percentage points equal to the number of percentage
points (if any) by which—
‘‘(i) the average monthly number of families receiving assistance during the immediately preceding fiscal
year under the State program funded under this part
is less than
‘‘(ii) the average monthly number of families that
received aid under the State plan approved under part
A (as in effect on September 30, 1995) during fiscal
year 1995.
The minimum participation rate shall not be reduced to
the extent that the Secretary determines that the reduction
in the number of families receiving such assistance is
required by Federal law.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2131

‘‘(B) ELIGIBILITY CHANGES NOT COUNTED.—The regulations required by subparagraph (A) shall not take into
account families that are diverted from a State program
funded under this part as a result of differences in eligibility criteria under a State program funded under this
part and eligibility criteria under the State program operated under the State plan approved under part A (as such
plan and such part were in effect on September 30, 1995).
Such regulations shall place the burden on the Secretary
to prove that such families were diverted as a direct result
of differences in such eligibility criteria.
‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS RECEIVING
ASSISTANCE UNDER A TRIBAL FAMILY ASSISTANCE PLAN.—For
purposes of paragraphs (1)(B) and (2)(B), a State may, at its
option, include families in the State that are receiving assistance under a tribal family assistance plan approved under
section 412.
‘‘(5) STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMPTIONS.—For any fiscal year, a State may, at its option, not
require an individual who is a single custodial parent caring
for a child who has not attained 12 months of age to engage
in work, and may disregard such an individual in determining
the participation rates under subsection (a) for not more than
12 months.
‘‘(c) ENGAGED IN WORK.—
‘‘(1) GENERAL RULES.—
‘‘(A) ALL FAMILIES.—For purposes of subsection
(b)(1)(B)(i), a recipient is engaged in work for a month
in a fiscal year if the recipient is participating in work
activities for at least the minimum average number of
hours per week specified in the following table during
the month, not fewer than 20 hours per week of which
are attributable to an activity described in paragraph (1),
(2), (3), (4), (5), (6), (7), (8), or (12) of subsection (d), subject
to this subsection:
The minimum
‘‘If the month is
average number of
in fiscal year:
hours per week is:
1997 ...............................................................................
20
1998 ...............................................................................
20
1999 ...............................................................................
25
2000 or thereafter .........................................................
30.

‘‘(B) 2-PARENT FAMILIES.—For purposes of subsection
(b)(2)(B), an individual is engaged in work for a month
in a fiscal year if—
‘‘(i) the individual is making progress in work
activities for at least 35 hours per week during the
month, not fewer than 30 hours per week of which
are attributable to an activity described in paragraph
(1), (2), (3), (4), (5), (6), (7), (8), or (12) of subsection
(d), subject to this subsection; and
‘‘(ii) if the family of the individual receives federally-funded child care assistance and an adult in the
family is not disabled or caring for a severely disabled
child, the individual’s spouse is making progress in
work activities during the month, not fewer than 20
hours per week of which are attributable to an activity

110 STAT. 2132

PUBLIC LAW 104–193—AUG. 22, 1996
described in paragraph (1), (2), (3), (4), (5), or (7) of
subsection (d).
‘‘(2) LIMITATIONS AND SPECIAL RULES.—
‘‘(A) NUMBER OF WEEKS FOR WHICH JOB SEARCH COUNTS
AS WORK.—
‘‘(i) LIMITATION.—Notwithstanding paragraph (1)
of this subsection, an individual shall not be considered
to be engaged in work by virtue of participation in
an activity described in subsection (d)(6) of a State
program funded under this part, after the individual
has participated in such an activity for 6 weeks (or,
if the unemployment rate of the State is at least 50
percent greater than the unemployment rate of the
United States, 12 weeks), or if the participation is
for a week that immediately follows 4 consecutive
weeks of such participation.
‘‘(ii) LIMITED AUTHORITY TO COUNT LESS THAN FULL
WEEK OF PARTICIPATION.—For purposes of clause (i)
of this subparagraph, on not more than 1 occasion
per individual, the State shall consider participation
of the individual in an activity described in subsection
(d)(6) for 3 or 4 days during a week as a week of
participation in the activity by the individual.
‘‘(B) SINGLE PARENT WITH CHILD UNDER AGE 6 DEEMED
TO BE MEETING WORK PARTICIPATION REQUIREMENTS IF PARENT IS ENGAGED IN WORK FOR 20 HOURS PER WEEK.—For
purposes of determining monthly participation rates under
subsection (b)(1)(B)(i), a recipient in a 1-parent family who
is the parent of a child who has not attained 6 years
of age is deemed to be engaged in work for a month
if the recipient is engaged in work for an average of at
least 20 hours per week during the month.
‘‘(C) TEEN HEAD OF HOUSEHOLD WHO MAINTAINS SATISFACTORY SCHOOL ATTENDANCE DEEMED TO BE MEETING
WORK PARTICIPATION REQUIREMENTS.—For purposes of

determining monthly participation rates under subsection (b)(1)(B)(i), a recipient who is a single head of
household and has not attained 20 years of age is deemed,
subject to subparagraph (D) of this paragraph, to be
engaged in work for a month in a fiscal year if the recipient—
‘‘(i) maintains satisfactory attendance at secondary
school or the equivalent during the month; or
‘‘(ii) participates in education directly related to
employment for at least the minimum average number
of hours per week specified in the table set forth in
paragraph (1)(A) of this subsection.
‘‘(D) NUMBER OF PERSONS THAT MAY BE TREATED AS
ENGAGED IN WORK BY VIRTUE OF PARTICIPATION IN VOCATIONAL EDUCATION ACTIVITIES OR BEING A TEEN HEAD OF
HOUSEHOLD WHO MAINTAINS SATISFACTORY SCHOOL ATTENDANCE.—For purposes of determining monthly participation

rates under paragraphs (1)(B)(i) and (2)(B) of subsection
(b), not more than 20 percent of individuals in all families
and in 2-parent families may be determined to be engaged
in work in the State for a month by reason of participation

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2133

in vocational educational training or deemed to be engaged
in work by reason of subparagraph (C) of this paragraph.
‘‘(d) WORK ACTIVITIES DEFINED.—As used in this section, the
term ‘work activities’ means—
‘‘(1) unsubsidized employment;
‘‘(2) subsidized private sector employment;
‘‘(3) subsidized public sector employment;
‘‘(4) work experience (including work associated with the
refurbishing of publicly assisted housing) if sufficient private
sector employment is not available;
‘‘(5) on-the-job training;
‘‘(6) job search and job readiness assistance;
‘‘(7) community service programs;
‘‘(8) vocational educational training (not to exceed 12
months with respect to any individual);
‘‘(9) job skills training directly related to employment;
‘‘(10) education directly related to employment, in the case
of a recipient who has not received a high school diploma
or a certificate of high school equivalency;
‘‘(11) satisfactory attendance at secondary school or in a
course of study leading to a certificate of general equivalence,
in the case of a recipient who has not completed secondary
school or received such a certificate; and
‘‘(12) the provision of child care services to an individual
who is participating in a community service program.
‘‘(e) PENALTIES AGAINST INDIVIDUALS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
if an individual in a family receiving assistance under the
State program funded under this part refuses to engage in
work required in accordance with this section, the State shall—
‘‘(A) reduce the amount of assistance otherwise payable
to the family pro rata (or more, at the option of the State)
with respect to any period during a month in which the
individual so refuses; or
‘‘(B) terminate such assistance,
subject to such good cause and other exceptions as the State
may establish.
‘‘(2) EXCEPTION.—Notwithstanding paragraph (1), a State
may not reduce or terminate assistance under the State program funded under this part based on a refusal of an individual
to work if the individual is a single custodial parent caring
for a child who has not attained 6 years of age, and the
individual proves that the individual has a demonstrated inability (as determined by the State) to obtain needed child care,
for 1 or more of the following reasons:
‘‘(A) Unavailability of appropriate child care within
a reasonable distance from the individual’s home or work
site.
‘‘(B) Unavailability or unsuitability of informal child
care by a relative or under other arrangements.
‘‘(C) Unavailability of appropriate and affordable formal child care arrangements.
‘‘(f) NONDISPLACEMENT IN WORK ACTIVITIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), an adult in
a family receiving assistance under a State program funded
under this part attributable to funds provided by the Federal

110 STAT. 2134

PUBLIC LAW 104–193—AUG. 22, 1996

Government may fill a vacant employment position in order
to engage in a work activity described in subsection (d).
‘‘(2) NO FILLING OF CERTAIN VACANCIES.—No adult in a
work activity described in subsection (d) which is funded, in
whole or in part, by funds provided by the Federal Government
shall be employed or assigned—
‘‘(A) when any other individual is on layoff from the
same or any substantially equivalent job; or
‘‘(B) if the employer has terminated the employment
of any regular employee or otherwise caused an involuntary
reduction of its workforce in order to fill the vacancy so
created with an adult described in paragraph (1).
‘‘(3) GRIEVANCE PROCEDURE.—A State with a program
funded under this part shall establish and maintain a grievance
procedure for resolving complaints of alleged violations of paragraph (2).
‘‘(4) NO PREEMPTION.—Nothing in this subsection shall preempt or supersede any provision of State or local law that
provides greater protection for employees from displacement.
‘‘(g) SENSE OF THE CONGRESS.—It is the sense of the Congress
that in complying with this section, each State that operates a
program funded under this part is encouraged to assign the highest
priority to requiring adults in 2-parent families and adults in singleparent families that include older preschool or school-age children
to be engaged in work activities.
‘‘(h) SENSE OF THE CONGRESS THAT STATES SHOULD IMPOSE
CERTAIN REQUIREMENTS ON NONCUSTODIAL, NONSUPPORTING MINOR
PARENTS.—It is the sense of the Congress that the States should
require noncustodial, nonsupporting parents who have not attained
18 years of age to fulfill community work obligations and attend
appropriate parenting or money management classes after school.
‘‘(i) REVIEW OF IMPLEMENTATION OF STATE WORK PROGRAMS.—
During fiscal year 1999, the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of
the Senate shall hold hearings and engage in other appropriate
activities to review the implementation of this section by the States,
and shall invite the Governors of the States to testify before them
regarding such implementation. Based on such hearings, such
Committees may introduce such legislation as may be appropriate
to remedy any problems with the State programs operated pursuant
to this section.
42 USC 608.

‘‘SEC. 408. PROHIBITIONS; REQUIREMENTS.

‘‘(a) IN GENERAL.—
‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A MINOR
CHILD.—A State to which a grant is made under section 403
shall not use any part of the grant to provide assistance to
a family—
‘‘(A) unless the family includes—
‘‘(i) a minor child who resides with a custodial
parent or other adult caretaker relative of the
child; or
‘‘(ii) a pregnant individual; and
‘‘(B) if the family includes an adult who has received
assistance under any State program funded under this
part attributable to funds provided by the Federal Government, for 60 months (whether or not consecutive) after

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2135

the date the State program funded under this part commences (unless an exception described in subparagraph
(B), (C), or (D) of paragraph (7) applies).
‘‘(2) REDUCTION OR ELIMINATION OF ASSISTANCE FOR NONCOOPERATION IN ESTABLISHING PATERNITY OR OBTAINING CHILD
SUPPORT.—If the agency responsible for administering the State

plan approved under part D determines that an individual
is not cooperating with the State in establishing paternity
or in establishing, modifying, or enforcing a support order with
respect to a child of the individual, and the individual does
not qualify for any good cause or other exception established
by the State pursuant to section 454(29), then the State—
‘‘(A) shall deduct from the assistance that would otherwise be provided to the family of the individual under
the State program funded under this part an amount equal
to not less than 25 percent of the amount of such assistance;
and
‘‘(B) may deny the family any assistance under the
State program.
‘‘(3) NO ASSISTANCE FOR FAMILIES NOT ASSIGNING CERTAIN
SUPPORT RIGHTS TO THE STATE.—
‘‘(A) IN GENERAL.—A State to which a grant is made
under section 403 shall require, as a condition of providing
assistance to a family under the State program funded
under this part, that a member of the family assign to
the State any rights the family member may have (on
behalf of the family member or of any other person for
whom the family member has applied for or is receiving
such assistance) to support from any other person, not
exceeding the total amount of assistance so provided to
the family, which accrue (or have accrued) before the date
the family leaves the program, which assignment, on and
after the date the family leaves the program, shall not
apply with respect to any support (other than support
collected pursuant to section 464) which accrued before
the family received such assistance and which the State
has not collected by—
‘‘(i) September 30, 2000, if the assignment is
executed on or after October 1, 1997, and before October 1, 2000; or
‘‘(ii) the date the family leaves the program, if
the assignment is executed on or after October 1, 2000.
‘‘(B) LIMITATION.—A State to which a grant is made
under section 403 shall not require, as a condition of providing assistance to any family under the State program
funded under this part, that a member of the family assign
to the State any rights to support described in subparagraph (A) which accrue after the date the family leaves
the program.
‘‘(4) NO ASSISTANCE FOR TEENAGE PARENTS WHO DO NOT
ATTEND HIGH SCHOOL OR OTHER EQUIVALENT TRAINING PROGRAM.—A State to which a grant is made under section 403
shall not use any part of the grant to provide assistance to
an individual who has not attained 18 years of age, is not
married, has a minor child at least 12 weeks of age in his
or her care, and has not successfully completed a high-school

110 STAT. 2136

PUBLIC LAW 104–193—AUG. 22, 1996
education (or its equivalent), if the individual does not participate in—
‘‘(A) educational activities directed toward the attainment of a high school diploma or its equivalent; or
‘‘(B) an alternative educational or training program
that has been approved by the State.
‘‘(5) NO ASSISTANCE FOR TEENAGE PARENTS NOT LIVING IN
ADULT-SUPERVISED SETTINGS.—
‘‘(A) IN GENERAL.—
‘‘(i) REQUIREMENT.—Except as provided in
subparagraph (B), a State to which a grant is made
under section 403 shall not use any part of the grant
to provide assistance to an individual described in
clause (ii) of this subparagraph if the individual and
the minor child referred to in clause (ii)(II) do not
reside in a place of residence maintained by a parent,
legal guardian, or other adult relative of the individual
as such parent’s, guardian’s, or adult relative’s own
home.
‘‘(ii) INDIVIDUAL DESCRIBED.— For purposes of
clause (i), an individual described in this clause is
an individual who—
‘‘(I) has not attained 18 years of age; and
‘‘(II) is not married, and has a minor child
in his or her care.
‘‘(B) EXCEPTION.—
‘‘(i) PROVISION OF, OR ASSISTANCE IN LOCATING,
ADULT-SUPERVISED LIVING ARRANGEMENT.—In the case
of an individual who is described in clause (ii), the
State agency referred to in section 402(a)(4) shall provide, or assist the individual in locating, a second
chance home, maternity home, or other appropriate
adult-supervised supportive living arrangement, taking
into consideration the needs and concerns of the
individual, unless the State agency determines that
the individual’s current living arrangement is appropriate, and thereafter shall require that the individual
and the minor child referred to in subparagraph
(A)(ii)(II) reside in such living arrangement as a condition of the continued receipt of assistance under the
State program funded under this part attributable to
funds provided by the Federal Government (or in an
alternative appropriate arrangement, should circumstances change and the current arrangement cease
to be appropriate).
‘‘(ii) INDIVIDUAL DESCRIBED.—For purposes of
clause (i), an individual is described in this
clause if the individual is described in subparagraph
(A)(ii), and—
‘‘(I) the individual has no parent, legal guardian, or other appropriate adult relative described
in subclause (II) of his or her own who is living
or whose whereabouts are known;
‘‘(II) no living parent, legal guardian, or other
appropriate adult relative, who would otherwise
meet applicable State criteria to act as the individual’s legal guardian, of such individual allows the

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2137

individual to live in the home of such parent,
guardian, or relative;
‘‘(III) the State agency determines that—
‘‘(aa) the individual or the minor child
referred to in subparagraph (A)(ii)(II) is being
or has been subjected to serious physical or
emotional harm, sexual abuse, or exploitation
in the residence of the individual’s own parent
or legal guardian; or
‘‘(bb) substantial evidence exists of an act
or failure to act that presents an imminent
or serious harm if the individual and the minor
child lived in the same residence with the
individual’s own parent or legal guardian; or
‘‘(IV) the State agency otherwise determines
that it is in the best interest of the minor child
to waive the requirement of subparagraph (A) with
respect to the individual or the minor child.
‘‘(iii) SECOND-CHANCE HOME.—For purposes of this
subparagraph, the term ‘second-chance home’ means
an entity that provides individuals described in clause
(ii) with a supportive and supervised living arrangement in which such individuals are required to learn
parenting skills, including child development, family
budgeting, health and nutrition, and other skills to
promote their long-term economic independence and
the well-being of their children.
‘‘(6) NO MEDICAL SERVICES.—
‘‘(A) IN GENERAL.—A State to which a grant is made
under section 403 shall not use any part of the grant
to provide medical services.
‘‘(B) EXCEPTION FOR PREPREGNANCY FAMILY PLANNING
SERVICES.—As used in subparagraph (A), the term ‘medical
services’
does
not
include
prepregnancy
family
planning services.
‘‘(7) NO ASSISTANCE FOR MORE THAN 5 YEARS.—
‘‘(A) IN GENERAL.—A State to which a grant is made
under section 403 shall not use any part of the grant
to provide assistance to a family that includes an adult
who has received assistance under any State program
funded under this part attributable to funds provided by
the Federal Government, for 60 months (whether or not
consecutive) after the date the State program funded under
this part commences, subject to this paragraph.
‘‘(B) MINOR CHILD EXCEPTION.—In determining the
number of months for which an individual who is a parent
or pregnant has received assistance under the State program funded under this part, the State shall disregard
any month for which such assistance was provided with
respect to the individual and during which the individual
was—
‘‘(i) a minor child; and
‘‘(ii) not the head of a household or married to
the head of a household.
‘‘(C) HARDSHIP EXCEPTION.—
‘‘(i) IN GENERAL.—The State may exempt a family
from the application of subparagraph (A) by reason

110 STAT. 2138

PUBLIC LAW 104–193—AUG. 22, 1996
of hardship or if the family includes an individual
who has been battered or subjected to extreme cruelty.
‘‘(ii) LIMITATION.—The number of families with
respect to which an exemption made by a State under
clause (i) is in effect for a fiscal year shall not exceed
20 percent of the average monthly number of families
to which assistance is provided under the State program funded under this part.
‘‘(iii) BATTERED OR SUBJECT TO EXTREME CRUELTY
DEFINED.—For purposes of clause (i), an individual has
been battered or subjected to extreme cruelty if the
individual has been subjected to—
‘‘(I) physical acts that resulted in, or threatened to result in, physical injury to the individual;
‘‘(II) sexual abuse;
‘‘(III) sexual activity involving a dependent
child;
‘‘(IV) being forced as the caretaker relative
of a dependent child to engage in nonconsensual
sexual acts or activities;
‘‘(V) threats of, or attempts at, physical or
sexual abuse;
‘‘(VI) mental abuse; or
‘‘(VII) neglect or deprivation of medical care.
‘‘(D) DISREGARD OF MONTHS OF ASSISTANCE RECEIVED
BY ADULT WHILE LIVING ON AN INDIAN RESERVATION OR
IN AN ALASKAN NATIVE VILLAGE WITH 50 PERCENT
UNEMPLOYMENT.—In determining the number of months

for which an adult has received assistance under the State
program funded under this part, the State shall disregard
any month during which the adult lived on an Indian
reservation or in an Alaskan Native village if, during the
month—
‘‘(i) at least 1,000 individuals were living on the
reservation or in the village ; and
‘‘(ii) at least 50 percent of the adults living on
the reservation or in the village were unemployed.
‘‘(E) RULE OF INTERPRETATION.—Subparagraph (A)
shall not be interpreted to require any State to provide
assistance to any individual for any period of time under
the State program funded under this part.
‘‘(F) RULE OF INTERPRETATION.—This part shall not
be interpreted to prohibit any State from expending State
funds not originating with the Federal Government on
benefits for children or families that have become ineligible
for assistance under the State program funded under this
part by reason of subparagraph (A).
‘‘(8) DENIAL OF ASSISTANCE FOR 10 YEARS TO A PERSON
FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE
IN ORDER TO OBTAIN ASSISTANCE IN 2 OR MORE STATES.—A

State to which a grant is made under section 403 shall not
use any part of the grant to provide cash assistance to an
individual during the 10-year period that begins on the date
the individual is convicted in Federal or State court of having
made a fraudulent statement or representation with respect
to the place of residence of the individual in order to receive
assistance simultaneously from 2 or more States under pro-

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2139

grams that are funded under this title, title XIX, or the Food
Stamp Act of 1977, or benefits in 2 or more States under
the supplemental security income program under title XVI.
The preceding sentence shall not apply with respect to a conviction of an individual, for any month beginning after the President of the United States grants a pardon with respect to
the conduct which was the subject of the conviction.
‘‘(9) DENIAL OF ASSISTANCE FOR FUGITIVE FELONS AND
PROBATION AND PAROLE VIOLATORS.—
‘‘(A) IN GENERAL.—A State to which a grant is made
under section 403 shall not use any part of the grant
to provide assistance to any individual who is—
‘‘(i) fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the individual flees, for a crime,
or an attempt to commit a crime, which is a felony
under the laws of the place from which the individual
flees, or which, in the case of the State of New Jersey,
is a high misdemeanor under the laws of such
State; or
‘‘(ii) violating a condition of probation or parole
imposed under Federal or State law.
The preceding sentence shall not apply with respect to
conduct of an individual, for any month beginning after
the President of the United States grants a pardon with
respect to the conduct.
‘‘(B) EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT AGENCIES.—If a State to which a grant is made
under section 403 establishes safeguards against the use
or disclosure of information about applicants or recipients
of assistance under the State program funded under this
part, the safeguards shall not prevent the State agency
administering the program from furnishing a Federal,
State, or local law enforcement officer, upon the request
of the officer, with the current address of any recipient
if the officer furnishes the agency with the name of the
recipient and notifies the agency that—
‘‘(i) the recipient—
‘‘(I) is described in subparagraph (A); or
‘‘(II) has information that is necessary for the
officer to conduct the official duties of the officer;
and
‘‘(ii) the location or apprehension of the recipient
is within such official duties.
‘‘(10) DENIAL OF ASSISTANCE FOR MINOR CHILDREN WHO
ARE ABSENT FROM THE HOME FOR A SIGNIFICANT PERIOD.—
‘‘(A) IN GENERAL.—A State to which a grant is made
under section 403 shall not use any part of the grant
to provide assistance for a minor child who has been,
or is expected by a parent (or other caretaker relative)
of the child to be, absent from the home for a period
of 45 consecutive days or, at the option of the State, such
period of not less than 30 and not more than 180 consecutive days as the State may provide for in the State plan
submitted pursuant to section 402.
‘‘(B) STATE AUTHORITY TO ESTABLISH GOOD CAUSE
EXCEPTIONS.—The State may establish such good cause

110 STAT. 2140

PUBLIC LAW 104–193—AUG. 22, 1996
exceptions to subparagraph (A) as the State considers
appropriate if such exceptions are provided for in the State
plan submitted pursuant to section 402.
‘‘(C) DENIAL OF ASSISTANCE FOR RELATIVE WHO FAILS
TO NOTIFY STATE AGENCY OF ABSENCE OF CHILD.—A State
to which a grant is made under section 403 shall not
use any part of the grant to provide assistance for an
individual who is a parent (or other caretaker relative)
of a minor child and who fails to notify the agency administering the State program funded under this part of the
absence of the minor child from the home for the period
specified in or provided for pursuant to subparagraph (A),
by the end of the 5-day period that begins with the date
that it becomes clear to the parent (or relative) that the
minor child will be absent for such period so specified
or provided for.
‘‘(11) MEDICAL ASSISTANCE REQUIRED TO BE PROVIDED FOR
CERTAIN FAMILIES HAVING EARNINGS FROM EMPLOYMENT OR
CHILD SUPPORT.—
‘‘(A) EARNINGS FROM EMPLOYMENT.—A State to which

a grant is made under section 403 and which has a State
plan approved under title XIX shall provide that in the
case of a family that is treated (under section 1931(b)(1)(A)
for purposes of title XIX) as receiving aid under a State
plan approved under this part (as in effect on July 16,
1996), that would become ineligible for such aid because
of hours of or income from employment of the caretaker
relative (as defined under this part as in effect on such
date) or because of section 402(a)(8)(B)(ii)(II) (as so in
effect), and that was so treated as receiving such aid in
at least 3 of the 6 months immediately preceding the month
in which such ineligibility begins, the family shall remain
eligible for medical assistance under the State’s plan
approved under title XIX for an extended period or periods
as provided in section 1925 or 1902(e)(1) (as applicable),
and that the family will be appropriately notified of such
extension as required by section 1925(a)(2).
‘‘(B) CHILD SUPPORT.—A State to which a grant is
made under section 403 and which has a State plan
approved under title XIX shall provide that in the case
of a family that is treated (under section 1931(b)(1)(A)
for purposes of title XIX) as receiving aid under a State
plan approved under this part (as in effect on July 16,
1996), that would become ineligible for such aid as a result
(wholly or partly) of the collection of child or spousal support under part D and that was so treated as receiving
such aid in at least 3 of the 6 months immediately preceding the month in which such ineligibility begins, the family
shall remain eligible for medical assistance under the
State’s plan approved under title XIX for an extended
period or periods as provided in section 1931(c)(1).
‘‘(b) INDIVIDUAL RESPONSIBILITY PLANS.—
‘‘(1) ASSESSMENT.—The State agency responsible for administering the State program funded under this part shall make
an initial assessment of the skills, prior work experience, and
employability of each recipient of assistance under the program
who—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2141

‘‘(A) has attained 18 years of age; or
‘‘(B) has not completed high school or obtained a certificate of high school equivalency, and is not attending secondary school.
‘‘(2) CONTENTS OF PLANS.—
‘‘(A) IN GENERAL.—On the basis of the assessment
made under subsection (a) with respect to an individual,
the State agency, in consultation with the individual, may
develop an individual responsibility plan for the individual,
which—
‘‘(i) sets forth an employment goal for the individual and a plan for moving the individual immediately
into private sector employment;
‘‘(ii) sets forth the obligations of the individual,
which may include a requirement that the individual
attend school, maintain certain grades and attendance,
keep school age children of the individual in school,
immunize children, attend parenting and money
management classes, or do other things that will help
the individual become and remain employed in the
private sector;
‘‘(iii) to the greatest extent possible is designed
to move the individual into whatever private sector
employment the individual is capable of handling as
quickly as possible, and to increase the responsibility
and amount of work the individual is to handle over
time;
‘‘(iv) describes the services the State will provide
the individual so that the individual will be able to
obtain and keep employment in the private sector,
and describe the job counseling and other services that
will be provided by the State; and
‘‘(v) may require the individual to undergo appropriate substance abuse treatment.
‘‘(B) TIMING.—The State agency may comply with paragraph (1) with respect to an individual—
‘‘(i) within 90 days (or, at the option of the State,
180 days) after the effective date of this part, in the
case of an individual who, as of such effective date,
is a recipient of aid under the State plan approved
under part A (as in effect immediately before such
effective date); or
‘‘(ii) within 30 days (or, at the option of the State,
90 days) after the individual is determined to be
eligible for such assistance, in the case of any other
individual.
‘‘(3) PENALTY FOR NONCOMPLIANCE BY INDIVIDUAL.—In addition to any other penalties required under the State program
funded under this part, the State may reduce, by such amount
as the State considers appropriate, the amount of assistance
otherwise payable under the State program to a family that
includes an individual who fails without good cause to comply
with an individual responsibility plan signed by the individual.
‘‘(4) STATE DISCRETION.—The exercise of the authority of
this subsection shall be within the sole discretion of the State.

110 STAT. 2142

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(c) NONDISCRIMINATION PROVISIONS.—The following provisions
of law shall apply to any program or activity which receives funds
provided under this part:
‘‘(1) The Age Discrimination Act of 1975 (42 U.S.C. 6101
et seq.).
‘‘(2) Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794).
‘‘(3) The Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.).
‘‘(4) Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.).
‘‘(d) ALIENS.—For special rules relating to the treatment of
aliens, see section 402 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
42 USC 609.

‘‘SEC. 409. PENALTIES.

‘‘(a) IN GENERAL.—Subject to this section:
‘‘(1) USE OF GRANT IN VIOLATION OF THIS PART.—
‘‘(A) GENERAL PENALTY.—If an audit conducted under
chapter 75 of title 31, United States Code, finds that an
amount paid to a State under section 403 for a fiscal
year has been used in violation of this part, the Secretary
shall reduce the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year quarter
by the amount so used.
‘‘(B) ENHANCED PENALTY FOR INTENTIONAL VIOLATIONS.—If the State does not prove to the satisfaction of
the Secretary that the State did not intend to use the
amount in violation of this part, the Secretary shall further
reduce the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year quarter
by an amount equal to 5 percent of the State family assistance grant.
‘‘(2) FAILURE TO SUBMIT REQUIRED REPORT.—
‘‘(A) IN GENERAL.—If the Secretary determines that
a State has not, within 1 month after the end of a fiscal
quarter, submitted the report required by section 411(a)
for the quarter, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 4
percent of the State family assistance grant.
‘‘(B) RESCISSION OF PENALTY.—The Secretary shall
rescind a penalty imposed on a State under subparagraph
(A) with respect to a report if the State submits the report
before the end of the fiscal quarter that immediately succeeds the fiscal quarter for which the report was required.
‘‘(3) FAILURE TO SATISFY MINIMUM PARTICIPATION RATES.—
‘‘(A) IN GENERAL.—If the Secretary determines that
a State to which a grant is made under section 403 for
a fiscal year has failed to comply with section 407(a) for
the fiscal year, the Secretary shall reduce the grant payable
to the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to not more
than the applicable percentage of the State family assistance grant.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2143

‘‘(B) APPLICABLE PERCENTAGE DEFINED.—As used in
subparagraph (A), the term ‘applicable percentage’ means,
with respect to a State—
‘‘(i) if a penalty was not imposed on the State
under subparagraph (A) for the immediately preceding
fiscal year, 5 percent; or
‘‘(ii) if a penalty was imposed on the State under
subparagraph (A) for the immediately preceding fiscal
year, the lesser of—
‘‘(I) the percentage by which the grant payable
to the State under section 403(a)(1) was reduced
for such preceding fiscal year, increased by 2
percentage points; or
‘‘(II) 21 percent.
‘‘(C) PENALTY BASED ON SEVERITY OF FAILURE.—The
Secretary shall impose reductions under subparagraph (A)
with respect to a fiscal year based on the degree of noncompliance, and may reduce the penalty if the noncompliance is due to circumstances that caused the State to
become a needy State (as defined in section 403(b)(6)) during the fiscal year.
‘‘(4) FAILURE TO PARTICIPATE IN THE INCOME AND ELIGIBILITY VERIFICATION SYSTEM.—If the Secretary determines that
a State program funded under this part is not participating
during a fiscal year in the income and eligibility verification
system required by section 1137, the Secretary shall reduce
the grant payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount equal to not
more than 2 percent of the State family assistance grant.
‘‘(5) FAILURE TO COMPLY WITH PATERNITY ESTABLISHMENT
AND CHILD SUPPORT ENFORCEMENT
PART D.—Notwithstanding any other

REQUIREMENTS

UNDER

provision of this Act, if
the Secretary determines that the State agency that administers a program funded under this part does not enforce the
penalties requested by the agency administering part D against
recipients of assistance under the State program who fail to
cooperate in establishing paternity or in establishing, modifying, or enforcing a child support order in accordance with
such part and who do not qualify for any good cause or other
exception established by the State under section 454(29), the
Secretary shall reduce the grant payable to the State under
section 403(a)(1) for the immediately succeeding fiscal year
(without regard to this section) by not more than 5 percent.
‘‘(6) FAILURE TO TIMELY REPAY A FEDERAL LOAN FUND FOR
STATE WELFARE PROGRAMS.—If the Secretary determines that
a State has failed to repay any amount borrowed from the
Federal Loan Fund for State Welfare Programs established
under section 406 within the period of maturity applicable
to the loan, plus any interest owed on the loan, the Secretary
shall reduce the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year quarter
(without regard to this section) by the outstanding loan amount,
plus the interest owed on the outstanding amount. The Secretary shall not forgive any outstanding loan amount or interest
owed on the outstanding amount.
‘‘(7) FAILURE OF ANY STATE TO MAINTAIN CERTAIN LEVEL
OF HISTORIC EFFORT.—

110 STAT. 2144

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(A) IN GENERAL.—The Secretary shall reduce the grant
payable to the State under section 403(a)(1) for fiscal year
1998, 1999, 2000, 2001, 2002, or 2003 by the amount (if
any) by which qualified State expenditures for the then
immediately preceding fiscal year are less than the
applicable percentage of historic State expenditures with
respect to such preceding fiscal year.
‘‘(B) DEFINITIONS.—As used in this paragraph:
‘‘(i) QUALIFIED STATE EXPENDITURES.—
‘‘(I) IN GENERAL.—The term ‘qualified State
expenditures’ means, with respect to a State and
a fiscal year, the total expenditures by the State
during the fiscal year, under all State programs,
for any of the following with respect to eligible
families:
‘‘(aa) Cash assistance.
‘‘(bb) Child care assistance.
‘‘(cc) Educational activities designed to
increase self-sufficiency, job training, and
work, excluding any expenditure for public
education in the State except expenditures
which involve the provision of services or
assistance to a member of an eligible family
which is not generally available to persons
who are not members of an eligible family.
‘‘(dd) Administrative costs in connection
with the matters described in items (aa), (bb),
(cc), and (ee), but only to the extent that such
costs do not exceed 15 percent of the total
amount of qualified State expenditures for the
fiscal year.
‘‘(ee) Any other use of funds allowable
under section 404(a)(1).
‘‘(II) EXCLUSION OF TRANSFERS FROM OTHER
STATE AND LOCAL PROGRAMS.—Such term does not
include expenditures under any State or local program during a fiscal year, except to the
extent that—
‘‘(aa) the expenditures exceed the amount
expended under the State or local program
in the fiscal year most recently ending before
the date of the enactment of this part; or
‘‘(bb) the State is entitled to a payment
under former section 403 (as in effect immediately before such date of enactment) with
respect to the expenditures.
‘‘(III) ELIGIBLE FAMILIES.—As used in subclause (I), the term ‘eligible families’ means families eligible for assistance under the State program
funded under this part, and families that would
be eligible for such assistance but for the application of section 408(a)(7) of this Act or section 402
of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
‘‘(ii)
APPLICABLE
PERCENTAGE.—The
term
‘applicable percentage’ means for fiscal years 1997
through 2002, 80 percent (or, if the State meets the

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2145

requirements of section 407(a) for the fiscal year, 75
percent) reduced (if appropriate) in accordance with
subparagraph (C)(ii).
‘‘(iii) HISTORIC STATE EXPENDITURES.—The term
‘historic State expenditures’ means, with respect to
a State, the lesser of—
‘‘(I) the expenditures by the State under parts
A and F (as in effect during fiscal year 1994)
for fiscal year 1994; or
‘‘(II) the amount which bears the same ratio
to the amount described in subclause (I) as—
‘‘(aa) the State family assistance grant,
plus the total amount required to be paid to
the State under former section 403 for fiscal
year 1994 with respect to amounts expended
by the State for child care under subsection
(g) or (i) of section 402 (as in effect during
fiscal year 1994); bears to
‘‘(bb) the total amount required to be paid
to the State under former section 403 (as in
effect during fiscal year 1994) for fiscal
year 1994.
Such term does not include any expenditures under
the State plan approved under part A (as so in effect)
on behalf of individuals covered by a tribal family
assistance plan approved under section 412, as determined by the Secretary.
‘‘(iv) EXPENDITURES BY THE STATE.—The term
‘expenditures by the State’ does not include—
‘‘(I) any expenditures from amounts made
available by the Federal Government;
‘‘(II) any State funds expended for the medicaid program under title XIX;
‘‘(III) any State funds which are used to match
Federal funds; or
‘‘(IV) any State funds which are expended as
a condition of receiving Federal funds under Federal programs other than under this part.
Notwithstanding subclause (IV) of the preceding sentence, such term includes expenditures by a State for
child care in a fiscal year to the extent that the total
amount of such expenditures does not exceed an
amount equal to the amount of State expenditures
in fiscal year 1994 or 1995 (whichever is greater) that
equal the non-Federal share for the programs described
in section 418(a)(1)(A).
‘‘(8) SUBSTANTIAL NONCOMPLIANCE OF STATE CHILD SUPPORT
ENFORCEMENT PROGRAM WITH REQUIREMENTS OF PART D.—
‘‘(A) IN GENERAL.—If a State program operated under
part D is found as a result of a review conducted under
section 452(a)(4) not to have complied substantially with
the requirements of such part for any quarter, and the
Secretary determines that the program is not complying
substantially with such requirements at the time the finding is made, the Secretary shall reduce the grant payable
to the State under section 403(a)(1) for the quarter and
each subsequent quarter that ends before the 1st quarter

110 STAT. 2146

PUBLIC LAW 104–193—AUG. 22, 1996
throughout which the program is found to be in substantial
compliance with such requirements by—
‘‘(i) not less than 1 nor more than 2 percent;
‘‘(ii) not less than 2 nor more than 3 percent,
if the finding is the 2nd consecutive such finding made
as a result of such a review; or
‘‘(iii) not less than 3 nor more than 5 percent,
if the finding is the 3rd or a subsequent consecutive
such finding made as a result of such a review.
‘‘(B) DISREGARD OF NONCOMPLIANCE WHICH IS OF A
TECHNICAL NATURE.—For purposes of subparagraph (A) and
section 452(a)(4), a State which is not in full compliance
with the requirements of this part shall be determined
to be in substantial compliance with such requirements
only if the Secretary determines that any noncompliance
with such requirements is of a technical nature which
does not adversely affect the performance of the State’s
program operated under part D.
‘‘(9) FAILURE TO COMPLY WITH 5-YEAR LIMIT ON ASSISTANCE.—If the Secretary determines that a State has not complied with section 408(a)(1)(B) during a fiscal year, the Secretary shall reduce the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year by an
amount equal to 5 percent of the State family assistance grant.
‘‘(10) FAILURE OF STATE RECEIVING AMOUNTS FROM CONTINGENCY FUND TO MAINTAIN 100 PERCENT OF HISTORIC EFFORT.—
If, at the end of any fiscal year during which amounts from
the Contingency Fund for State Welfare Programs have been
paid to a State, the Secretary finds that the expenditures
under the State program funded under this part for the fiscal
year (excluding any amounts made available by the Federal
Government) are less than 100 percent of historic State
expenditures (as defined in paragraph (7)(B)(iii) of this subsection), the Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the immediately succeeding
fiscal year by the total of the amounts so paid to the State.
‘‘(11) FAILURE TO MAINTAIN ASSISTANCE TO ADULT SINGLE
CUSTODIAL PARENT WHO CANNOT OBTAIN CHILD CARE FOR CHILD
UNDER AGE 6.—
‘‘(A) IN GENERAL.—If the Secretary determines that

a State to which a grant is made under section 403 for
a fiscal year has violated section 407(e)(2) during the fiscal
year, the Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not more than 5
percent of the State family assistance grant.
‘‘(B) PENALTY BASED ON SEVERITY OF FAILURE.—The
Secretary shall impose reductions under subparagraph (A)
with respect to a fiscal year based on the degree of noncompliance.
‘‘(12) FAILURE TO EXPEND ADDITIONAL STATE FUNDS TO
REPLACE GRANT REDUCTIONS.—If the grant payable to a State
under section 403(a)(1) for a fiscal year is reduced by reason
of this subsection, the State shall, during the immediately
succeeding fiscal year, expend under the State program funded
under this part an amount equal to the total amount of such
reductions.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2147

‘‘(b) REASONABLE CAUSE EXCEPTION.—
‘‘(1) IN GENERAL.—The Secretary may not impose a penalty
on a State under subsection (a) with respect to a requirement
if the Secretary determines that the State has reasonable cause
for failing to comply with the requirement.
‘‘(2) EXCEPTION.—Paragraph (1) of this subsection shall
not apply to any penalty under paragraph (7) or (8) of subsection (a).
‘‘(c) CORRECTIVE COMPLIANCE PLAN.—
‘‘(1) IN GENERAL.—
‘‘(A) NOTIFICATION OF VIOLATION.—Before imposing a
penalty against a State under subsection (a) with respect
to a violation of this part, the Secretary shall notify the
State of the violation and allow the State the opportunity
to enter into a corrective compliance plan in accordance
with this subsection which outlines how the State will
correct the violation and how the State will insure continuing compliance with this part.
‘‘(B) 60-DAY PERIOD TO PROPOSE A CORRECTIVE COMPLIANCE PLAN.—During the 60-day period that begins on the
date the State receives a notice provided under subparagraph (A) with respect to a violation, the State may
submit to the Federal Government a corrective compliance
plan to correct the violation.
‘‘(C) CONSULTATION ABOUT MODIFICATIONS.—During
the 60-day period that begins with the date the Secretary
receives a corrective compliance plan submitted by a State
in accordance with subparagraph (B), the Secretary may
consult with the State on modifications to the plan.
‘‘(D) ACCEPTANCE OF PLAN.— A corrective compliance
plan submitted by a State in accordance with subparagraph
(B) is deemed to be accepted by the Secretary if the Secretary does not accept or reject the plan during 60-day
period that begins on the date the plan is submitted.
‘‘(2) EFFECT OF CORRECTING VIOLATION.—The Secretary
may not impose any penalty under subsection (a) with respect
to any violation covered by a State corrective compliance plan
accepted by the Secretary if the State corrects the violation
pursuant to the plan.
‘‘(3) EFFECT OF FAILING TO CORRECT VIOLATION.—The Secretary shall assess some or all of a penalty imposed on a
State under subsection (a) with respect to a violation if
the State does not, in a timely manner, correct the violation
pursuant to a State corrective compliance plan accepted by
the Secretary.
‘‘(4) INAPPLICABILITY TO FAILURE TO TIMELY REPAY A
FEDERAL LOAN FUND FOR A STATE WELFARE PROGRAM.—This
subsection shall not apply to the imposition of a penalty against
a State under subsection (a)(6).
‘‘(d) LIMITATION ON AMOUNT OF PENALTIES.—
‘‘(1) IN GENERAL.—In imposing the penalties described in
subsection (a), the Secretary shall not reduce any quarterly
payment to a State by more than 25 percent.
‘‘(2) CARRYFORWARD OF UNRECOVERED PENALTIES.—To the
extent that paragraph (1) of this subsection prevents the Secretary from recovering during a fiscal year the full amount
of penalties imposed on a State under subsection (a) of this

110 STAT. 2148

PUBLIC LAW 104–193—AUG. 22, 1996
section for a prior fiscal year, the Secretary shall apply any
remaining amount of such penalties to the grant payable to
the State under section 403(a)(1) for the immediately succeeding
fiscal year.

42 USC 610.

‘‘SEC. 410. APPEAL OF ADVERSE DECISION.

‘‘(a) IN GENERAL.—Within 5 days after the date the Secretary
takes any adverse action under this part with respect to a State,
the Secretary shall notify the chief executive officer of the State
of the adverse action, including any action with respect to the
State plan submitted under section 402 or the imposition of a
penalty under section 409.
‘‘(b) ADMINISTRATIVE REVIEW.—
‘‘(1) IN GENERAL.—Within 60 days after the date a State
receives notice under subsection (a) of an adverse action, the
State may appeal the action, in whole or in part, to the Departmental Appeals Board established in the Department of Health
and Human Services (in this section referred to as the ‘Board’)
by filing an appeal with the Board.
‘‘(2) PROCEDURAL RULES.—The Board shall consider an
appeal filed by a State under paragraph (1) on the basis of
such documentation as the State may submit and as the Board
may require to support the final decision of the Board. In
deciding whether to uphold an adverse action or any portion
of such an action, the Board shall conduct a thorough review
of the issues and take into account all relevant evidence. The
Board shall make a final determination with respect to an
appeal filed under paragraph (1) not less than 60 days after
the date the appeal is filed.
‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.—
‘‘(1) IN GENERAL.—Within 90 days after the date of a final
decision by the Board under this section with respect to an
adverse action taken against a State, the State may obtain
judicial review of the final decision (and the findings incorporated into the final decision) by filing an action in—
‘‘(A) the district court of the United States for the
judicial district in which the principal or headquarters
office of the State agency is located; or
‘‘(B) the United States District Court for the District
of Columbia.
‘‘(2) PROCEDURAL RULES.—The district court in which an
action is filed under paragraph (1) shall review the final decision of the Board on the record established in the administrative
proceeding, in accordance with the standards of review prescribed by subparagraphs (A) through (E) of section 706(2)
of title 5, United States Code. The review shall be on the
basis of the documents and supporting data submitted to the
Board.
42 USC 611.

‘‘SEC. 411. DATA COLLECTION AND REPORTING.

‘‘(a) QUARTERLY REPORTS BY STATES.—
‘‘(1) GENERAL REPORTING REQUIREMENT.—
‘‘(A) CONTENTS OF REPORT.—Each eligible State shall
collect on a monthly basis, and report to the Secretary
on a quarterly basis, the following disaggregated case
record information on the families receiving assistance
under the State program funded under this part:
‘‘(i) The county of residence of the family.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2149

‘‘(ii) Whether a child receiving such assistance or
an adult in the family is disabled.
‘‘(iii) The ages of the members of such families.
‘‘(iv) The number of individuals in the family, and
the relation of each family member to the youngest
child in the family.
‘‘(v) The employment status and earnings of the
employed adult in the family.
‘‘(vi) The marital status of the adults in the family,
including whether such adults have never married,
are widowed, or are divorced.
‘‘(vii) The race and educational status of each adult
in the family.
‘‘(viii) The race and educational status of each
child in the family.
‘‘(ix) Whether the family received subsidized housing, medical assistance under the State plan approved
under title XIX, food stamps, or subsidized child care,
and if the latter 2, the amount received.
‘‘(x) The number of months that the family has
received each type of assistance under the program.
‘‘(xi) If the adults participated in, and the number
of hours per week of participation in, the following
activities:
‘‘(I) Education.
‘‘(II) Subsidized private sector employment.
‘‘(III) Unsubsidized employment.
‘‘(IV) Public sector employment, work experience, or community service.
‘‘(V) Job search.
‘‘(VI) Job skills training or on-the-job training.
‘‘(VII) Vocational education.
‘‘(xii) Information necessary to calculate participation rates under section 407.
‘‘(xiii) The type and amount of assistance received
under the program, including the amount of and reason
for any reduction of assistance (including sanctions).
‘‘(xiv) Any amount of unearned income received
by any member of the family.
‘‘(xv) The citizenship of the members of the family.
‘‘(xvi) From a sample of closed cases, whether the
family left the program, and if so, whether the family
left due to—
‘‘(I) employment;
‘‘(II) marriage;
‘‘(III) the prohibition set forth in section
408(a)(7);
‘‘(IV) sanction; or
‘‘(V) State policy.
‘‘(B) USE OF ESTIMATES.—
‘‘(i) AUTHORITY.—A State may comply with
subparagraph (A) by submitting an estimate which
is obtained through the use of scientifically acceptable
sampling methods approved by the Secretary.
‘‘(ii) SAMPLING AND OTHER METHODS.—The Secretary shall provide the States with such case sampling
plans and data collection procedures as the Secretary

110 STAT. 2150

PUBLIC LAW 104–193—AUG. 22, 1996

deems necessary to produce statistically valid estimates of the performance of State programs funded
under this part. The Secretary may develop and implement procedures for verifying the quality of data
submitted by the States.
‘‘(2) REPORT ON USE OF FEDERAL FUNDS TO COVER ADMINISTRATIVE COSTS AND OVERHEAD.—The report required by paragraph (1) for a fiscal quarter shall include a statement of
the percentage of the funds paid to the State under this part
for the quarter that are used to cover administrative costs
or overhead.
‘‘(3) REPORT ON STATE EXPENDITURES ON PROGRAMS FOR
NEEDY FAMILIES.—The report required by paragraph (1) for
a fiscal quarter shall include a statement of the total amount
expended by the State during the quarter on programs for
needy families.
‘‘(4) REPORT ON NONCUSTODIAL PARENTS PARTICIPATING IN
WORK ACTIVITIES.—The report required by paragraph (1) for
a fiscal quarter shall include the number of noncustodial
parents in the State who participated in work activities (as
defined in section 407(d)) during the quarter.
‘‘(5) REPORT ON TRANSITIONAL SERVICES.—The report
required by paragraph (1) for a fiscal quarter shall include
the total amount expended by the State during the quarter
to provide transitional services to a family that has ceased
to receive assistance under this part because of employment,
along with a description of such services.
‘‘(6) REGULATIONS.—The Secretary shall prescribe such
regulations as may be necessary to define the data elements
with respect to which reports are required by this subsection.
‘‘(b) ANNUAL REPORTS TO THE CONGRESS BY THE SECRETARY.—
Not later than 6 months after the end of fiscal year 1997, and
each fiscal year thereafter, the Secretary shall transmit to the
Congress a report describing—
‘‘(1) whether the States are meeting—
‘‘(A) the participation rates described in section
407(a); and
‘‘(B) the objectives of—
‘‘(i) increasing employment and earnings of needy
families, and child support collections; and
‘‘(ii) decreasing out-of-wedlock pregnancies and
child poverty;
‘‘(2) the demographic and financial characteristics of families applying for assistance, families receiving assistance, and
families that become ineligible to receive assistance;
‘‘(3) the characteristics of each State program funded under
this part; and
‘‘(4) the trends in employment and earnings of needy families with minor children living at home.
42 USC 612.

‘‘SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

‘‘(a) GRANTS FOR INDIAN TRIBES.—
‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—
‘‘(A) IN GENERAL.—For each of fiscal years 1997, 1998,
1999, 2000, 2001, and 2002, the Secretary shall pay to
each Indian tribe that has an approved tribal family assistance plan a tribal family assistance grant for the fiscal

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2151

year in an amount equal to the amount determined under
subparagraph (B), and shall reduce the grant payable under
section 403(a)(1) to any State in which lies the service
area or areas of the Indian tribe by that portion of the
amount so determined that is attributable to expenditures
by the State.
‘‘(B) AMOUNT DETERMINED.—
‘‘(i) IN GENERAL.—The amount determined under
this subparagraph is an amount equal to the total
amount of the Federal payments to a State or States
under section 403 (as in effect during such fiscal year)
for fiscal year 1994 attributable to expenditures (other
than child care expenditures) by the State or States
under parts A and F (as so in effect) for fiscal year
1994 for Indian families residing in the service area
or areas identified by the Indian tribe pursuant to
subsection (b)(1)(C) of this section.
‘‘(ii) USE OF STATE SUBMITTED DATA.—
‘‘(I) IN GENERAL.—The Secretary shall use
State submitted data to make each determination
under clause (i).
‘‘(II) DISAGREEMENT WITH DETERMINATION.—
If an Indian tribe or tribal organization disagrees
with State submitted data described under subclause (I), the Indian tribe or tribal organization
may submit to the Secretary such additional
information as may be relevant to making the
determination under clause (i) and the Secretary
may consider such information before making such
determination.
‘‘(2) GRANTS FOR INDIAN TRIBES THAT RECEIVED
JOBS FUNDS.—
‘‘(A) IN GENERAL.—The Secretary shall pay to each
eligible Indian tribe for each of fiscal years 1997, 1998,
1999, 2000, 2001, and 2002 a grant in an amount equal
to the amount received by the Indian tribe in fiscal year
1994 under section 482(i) (as in effect during fiscal
year 1994).
‘‘(B) ELIGIBLE INDIAN TRIBE.—For purposes of subparagraph (A), the term ‘eligible Indian tribe’ means an Indian
tribe or Alaska Native organization that conducted a job
opportunities and basic skills training program in fiscal
year 1995 under section 482(i) (as in effect during fiscal
year 1995).
‘‘(C) USE OF GRANT.—Each Indian tribe to which a
grant is made under this paragraph shall use the grant
for the purpose of operating a program to make work
activities available to members of the Indian tribe.
‘‘(D) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there
are appropriated $7,638,474 for each fiscal year specified
in subparagraph (A) for grants under subparagraph (A).
‘‘(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—
‘‘(1) IN GENERAL.—Any Indian tribe that desires to receive
a tribal family assistance grant shall submit to the Secretary
a 3-year tribal family assistance plan that—

110 STAT. 2152

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(A) outlines the Indian tribe’s approach to providing
welfare-related services for the 3-year period, consistent
with this section;
‘‘(B) specifies whether the welfare-related services provided under the plan will be provided by the Indian tribe
or through agreements, contracts, or compacts with intertribal consortia, States, or other entities;
‘‘(C) identifies the population and service area or areas
to be served by such plan;
‘‘(D) provides that a family receiving assistance under
the plan may not receive duplicative assistance from other
State or tribal programs funded under this part;
‘‘(E) identifies the employment opportunities in or near
the service area or areas of the Indian tribe and the manner
in which the Indian tribe will cooperate and participate
in enhancing such opportunities for recipients of assistance
under the plan consistent with any applicable State standards; and
‘‘(F) applies the fiscal accountability provisions of section 5(f)(1) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450c(f)(1)), relating to the submission of a single-agency audit report required by chapter
75 of title 31, United States Code.
‘‘(2) APPROVAL.—The Secretary shall approve each tribal
family assistance plan submitted in accordance with paragraph
(1).
‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this section shall
preclude the development and submission of a single tribal
family assistance plan by the participating Indian tribes of
an intertribal consortium.
‘‘(c) MINIMUM WORK PARTICIPATION REQUIREMENTS AND TIME
LIMITS.—The Secretary, with the participation of Indian tribes,
shall establish for each Indian tribe receiving a grant under this
section minimum work participation requirements, appropriate time
limits for receipt of welfare-related services under the grant, and
penalties against individuals—
‘‘(1) consistent with the purposes of this section;
‘‘(2) consistent with the economic conditions and resources
available to each tribe; and
‘‘(3) similar to comparable provisions in section 407(e).
‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this section shall
preclude an Indian tribe from seeking emergency assistance from
any Federal loan program or emergency fund.
‘‘(e) ACCOUNTABILITY.—Nothing in this section shall be construed to limit the ability of the Secretary to maintain program
funding accountability consistent with—
‘‘(1) generally accepted accounting principles; and
‘‘(2) the requirements of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450 et seq.).
‘‘(f) PENALTIES.—
‘‘(1) Subsections (a)(1), (a)(6), and (b) of section 409, shall
apply to an Indian tribe with an approved tribal assistance
plan in the same manner as such subsections apply to a State.
‘‘(2) Section 409(a)(3) shall apply to an Indian tribe with
an approved tribal assistance plan by substituting ‘meet minimum work participation requirements established under section
412(c)’ for ‘comply with section 407(a)’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2153

‘‘(g) DATA COLLECTION AND REPORTING.—Section 411 shall
apply to an Indian tribe with an approved tribal family assistance
plan.
‘‘(h) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
this section, and except as provided in paragraph (2), an Indian
tribe in the State of Alaska that receives a tribal family assistance grant under this section shall use the grant to operate
a program in accordance with requirements comparable to the
requirements applicable to the program of the State of Alaska
funded under this part. Comparability of programs shall be
established on the basis of program criteria developed by the
Secretary in consultation with the State of Alaska and such
Indian tribes.
‘‘(2) WAIVER.—An Indian tribe described in paragraph (1)
may apply to the appropriate State authority to receive a waiver
of the requirement of paragraph (1).
‘‘SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

‘‘(a) RESEARCH.—The Secretary shall conduct research on the
benefits, effects, and costs of operating different State programs
funded under this part, including time limits relating to eligibility
for assistance. The research shall include studies on the effects
of different programs and the operation of such programs on welfare
dependency, illegitimacy, teen pregnancy, employment rates, child
well-being, and any other area the Secretary deems appropriate.
The Secretary shall also conduct research on the costs and benefits
of State activities under section 409.
‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVATIVE
APPROACHES TO REDUCING WELFARE DEPENDENCY AND INCREASING
CHILD WELL-BEING.—
‘‘(1) IN GENERAL.—The Secretary may assist States in developing, and shall evaluate, innovative approaches for reducing
welfare dependency and increasing the well-being of minor
children living at home with respect to recipients of assistance
under programs funded under this part. The Secretary may
provide funds for training and technical assistance to carry
out the approaches developed pursuant to this paragraph.
‘‘(2) EVALUATIONS.—In performing the evaluations under
paragraph (1), the Secretary shall, to the maximum extent
feasible, use random assignment as an evaluation methodology.
‘‘(c) DISSEMINATION OF INFORMATION.—The Secretary shall
develop innovative methods of disseminating information on any
research, evaluations, and studies conducted under this section,
including the facilitation of the sharing of information and best
practices among States and localities through the use of computers
and other technologies.
‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF MOST AND
LEAST SUCCESSFUL WORK PROGRAMS.—
‘‘(1) ANNUAL RANKING OF STATES.—The Secretary shall rank
annually the States to which grants are paid under section
403 in the order of their success in placing recipients of assistance under the State program funded under this part into
long-term private sector jobs, reducing the overall welfare caseload, and, when a practicable method for calculating this
information becomes available, diverting individuals from formally applying to the State program and receiving assistance.

42 USC 613.

110 STAT. 2154

PUBLIC LAW 104–193—AUG. 22, 1996

In ranking States under this subsection, the Secretary shall
take into account the average number of minor children living
at home in families in the State that have incomes below
the poverty line and the amount of funding provided each
State for such families.
‘‘(2) ANNUAL REVIEW OF MOST AND LEAST SUCCESSFUL WORK
PROGRAMS.—The Secretary shall review the programs of the
3 States most recently ranked highest under paragraph (1)
and the 3 States most recently ranked lowest under paragraph
(1) that provide parents with work experience, assistance in
finding employment, and other work preparation activities and
support services to enable the families of such parents to leave
the program and become self-sufficient.
‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF ISSUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—
‘‘(1) ANNUAL RANKING OF STATES.—
‘‘(A) IN GENERAL.—The Secretary shall annually rank
States to which grants are made under section 403 based
on the following ranking factors:
‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RATIOS.—The ratio
represented by—
‘‘(I) the total number of out-of-wedlock births
in families receiving assistance under the State
program under this part in the State for the most
recent fiscal year for which information is available; over
‘‘(II) the total number of births in families
receiving assistance under the State program
under this part in the State for such year.
‘‘(ii) NET CHANGES IN THE OUT-OF-WEDLOCK
RATIO.—The difference between the ratio described in
subparagraph (A)(i) with respect to a State for the
most recent fiscal year for which such information
is available and the ratio with respect to the State
for the immediately preceding year.
‘‘(2) ANNUAL REVIEW.—The Secretary shall review the programs of the 5 States most recently ranked highest under
paragraph (1) and the 5 States most recently ranked the lowest
under paragraph (1).
‘‘(f) STATE-INITIATED EVALUATIONS.—A State shall be eligible
to receive funding to evaluate the State program funded under
this part if—
‘‘(1) the State submits a proposal to the Secretary for
the evaluation;
‘‘(2) the Secretary determines that the design and approach
of the evaluation is rigorous and is likely to yield information
that is credible and will be useful to other States; and
‘‘(3) unless otherwise waived by the Secretary, the State
contributes to the cost of the evaluation, from non-Federal
sources, an amount equal to at least 10 percent of the cost
of the evaluation.
‘‘(g) REPORT ON CIRCUMSTANCES OF CERTAIN CHILDREN AND
FAMILIES.—
‘‘(1) IN GENERAL.—Beginning 3 years after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall prepare and submit to the Committees on Ways
and Means and on Economic and Educational Opportunities

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2155

of the House of Representatives and to the Committees on
Finance and on Labor and Resources of the Senate annual
reports that examine in detail the matters described in paragraph (2) with respect to each of the following groups for
the period after such enactment:
‘‘(A) Individuals who were children in families that
have become ineligible for assistance under a State program funded under this part by reason of having reached
a time limit on the provision of such assistance.
‘‘(B) Children born after such date of enactment to
parents who, at the time of such birth, had not attained
20 years of age.
‘‘(C) Individuals who, after such date of enactment,
became parents before attaining 20 years of age.
‘‘(2) MATTERS DESCRIBED.—The matters described in this
paragraph are the following:
‘‘(A) The percentage of each group that has dropped
out of secondary school (or the equivalent), and the percentage of each group at each level of educational attainment.
‘‘(B) The percentage of each group that is employed.
‘‘(C) The percentage of each group that has been convicted of a crime or has been adjudicated as a delinquent.
‘‘(D) The rate at which the members of each group
are born, or have children, out-of-wedlock, and the percentage of each group that is married.
‘‘(E) The percentage of each group that continues to
participate in State programs funded under this part.
‘‘(F) The percentage of each group that has health
insurance provided by a private entity (broken down by
whether the insurance is provided through an employer
or otherwise), the percentage that has health insurance
provided by an agency of government, and the percentage
that does not have health insurance.
‘‘(G) The average income of the families of the members
of each group.
‘‘(H) Such other matters as the Secretary deems appropriate.
‘‘(h) FUNDING OF STUDIES AND DEMONSTRATIONS.—
‘‘(1) IN GENERAL.—Out of any money in the Treasury of
the United States not otherwise appropriated, there are appropriated $15,000,000 for each of fiscal years 1997 through 2002
for the purpose of paying—
‘‘(A) the cost of conducting the research described in
subsection (a);
‘‘(B) the cost of developing and evaluating innovative
approaches for reducing welfare dependency and increasing
the well-being of minor children under subsection (b);
‘‘(C) the Federal share of any State-initiated study
approved under subsection (f); and
‘‘(D) an amount determined by the Secretary to be
necessary to operate and evaluate demonstration projects,
relating to this part, that are in effect or approved under
section 1115 as of September 30, 1995, and are continued
after such date.
‘‘(2) ALLOCATION.—Of the amount appropriated under paragraph (1) for a fiscal year—

110 STAT. 2156

Regulations.

42 USC 614.

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(A) 50 percent shall be allocated for the purposes described in subparagraphs (A) and (B) of paragraph
(1), and
‘‘(B) 50 percent shall be allocated for the purposes
described in subparagraphs (C) and (D) of paragraph (1).
‘‘(3) DEMONSTRATIONS OF INNOVATIVE STRATEGIES.—The
Secretary may implement and evaluate demonstrations of
innovative and promising strategies which—
‘‘(A) provide one-time capital funds to establish,
expand, or replicate programs;
‘‘(B) test performance-based grant-to-loan financing in
which programs meeting performance targets receive
grants while programs not meeting such targets repay
funding on a prorated basis; and
‘‘(C) test strategies in multiple States and types of
communities.
‘‘(i) CHILD POVERTY RATES.—
‘‘(1) IN GENERAL.—Not later than 90 days after the date
of the enactment of this part, and annually thereafter, the
chief executive officer of each State shall submit to the Secretary a statement of the child poverty rate in the State as
of such date of enactment or the date of the most recent
prior statement under this paragraph.
‘‘(2) SUBMISSION OF CORRECTIVE ACTION PLAN.—Not later
than 90 days after the date a State submits a statement under
paragraph (1) which indicates that, as a result of the amendments made by section 103 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, the child poverty
rate of the State has increased by 5 percent or more since
the most recent prior statement under paragraph (1), the State
shall prepare and submit to the Secretary a corrective action
plan in accordance with paragraph (3).
‘‘(3) CONTENTS OF PLAN.—A corrective action plan submitted under paragraph (2) shall outline the manner in which
the State will reduce the child poverty rate in the State. The
plan shall include a description of the actions to be taken
by the State under such plan.
‘‘(4) COMPLIANCE WITH PLAN.—A State that submits a
corrective action plan that the Secretary has found contains
the information required by this subsection shall implement
the corrective action plan until the State determines that the
child poverty rate in the State is less than the lowest child
poverty rate on the basis of which the State was required
to submit the corrective action plan.
‘‘(5) METHODOLOGY.—The Secretary shall prescribe regulations establishing the methodology by which a State shall determine the child poverty rate in the State. The methodology
shall take into account factors including the number of children
who receive free or reduced-price lunches, the number of food
stamp households, and the county-by-county estimates of children in poverty as determined by the Census Bureau.

‘‘SEC. 414. STUDY BY THE CENSUS BUREAU.

‘‘(a) IN GENERAL.—The Bureau of the Census shall continue
to collect data on the 1992 and 1993 panels of the Survey of
Income and Program Participation as necessary to obtain such
information as will enable interested persons to evaluate the impact

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2157

of the amendments made by title I of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 on a random
national sample of recipients of assistance under State programs
funded under this part and (as appropriate) other low-income families, and in doing so, shall pay particular attention to the issues
of out-of-wedlock birth, welfare dependency, the beginning and end
of welfare spells, and the causes of repeat welfare spells, and
shall obtain information about the status of children participating
in such panels.
‘‘(b) APPROPRIATION.—Out of any money in the Treasury of
the United States not otherwise appropriated, there are appropriated $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999,
2000, 2001, and 2002 for payment to the Bureau of the Census
to carry out subsection (a).
‘‘SEC. 415. WAIVERS.

‘‘(a) CONTINUATION OF WAIVERS.—
‘‘(1) WAIVERS IN EFFECT ON DATE OF ENACTMENT OF WELFARE REFORM.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), if any waiver granted to a State under section 1115
of this Act or otherwise which relates to the provision
of assistance under a State plan under this part (as in
effect on September 30, 1996) is in effect as of the date
of the enactment of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, the amendments
made by the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (other than by section 103(c)
of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996) shall not apply with respect to
the State before the expiration (determined without regard
to any extensions) of the waiver to the extent such amendments are inconsistent with the waiver.
‘‘(B) FINANCING LIMITATION.—Notwithstanding any
other provision of law, beginning with fiscal year 1996,
a State operating under a waiver described in subparagraph (A) shall be entitled to payment under section 403
for the fiscal year, in lieu of any other payment provided
for in the waiver.
‘‘(2) WAIVERS GRANTED SUBSEQUENTLY.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), if any waiver granted to a State under section 1115
of this Act or otherwise which relates to the provision
of assistance under a State plan under this part (as in
effect on September 30, 1996) is submitted to the Secretary
before the date of the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996
and approved by the Secretary on or before July 1, 1997,
and the State demonstrates to the satisfaction of the Secretary that the waiver will not result in Federal expenditures under title IV of this Act (as in effect without regard
to the amendments made by the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996) that
are greater than would occur in the absence of the waiver,
the amendments made by the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (other than
by section 103(c) of the Personal Responsibility and Work

42 USC 615.

110 STAT. 2158

PUBLIC LAW 104–193—AUG. 22, 1996

Opportunity Reconciliation Act of 1996) shall not apply
with respect to the State before the expiration (determined
without regard to any extensions) of the waiver to the
extent the amendments made by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 are
inconsistent with the waiver.
‘‘(B) NO EFFECT ON NEW WORK REQUIREMENTS.—Notwithstanding subparagraph (A), a waiver granted under
section 1115 or otherwise which relates to the provision
of assistance under a State program funded under this
part (as in effect on September 30, 1996) shall not affect
the applicability of section 407 to the State.
‘‘(b) STATE OPTION TO TERMINATE WAIVER.—
‘‘(1) IN GENERAL.—A State may terminate a waiver
described in subsection (a) before the expiration of the waiver.
‘‘(2) REPORT.—A State which terminates a waiver under
paragraph (1) shall submit a report to the Secretary summarizing the waiver and any available information concerning the
result or effect of the waiver.
‘‘(3) HOLD HARMLESS PROVISION.—
‘‘(A) IN GENERAL.—Notwithstanding any other provision of law, a State that, not later than the date described
in subparagraph (B) of this paragraph, submits a written
request to terminate a waiver described in subsection (a)
shall be held harmless for accrued cost neutrality liabilities
incurred under the waiver.
‘‘(B) DATE DESCRIBED.—The date described in this
subparagraph is 90 days following the adjournment of the
first regular session of the State legislature that begins
after the date of the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT WAIVERS.—
The Secretary shall encourage any State operating a waiver
described in subsection (a) to continue the waiver and to evaluate,
using random sampling and other characteristics of accepted scientific evaluations, the result or effect of the waiver.
‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A State may elect
to continue 1 or more individual waivers described in subsection (a).
42 USC 616.

‘‘SEC. 416. ADMINISTRATION.

‘‘The programs under this part and part D shall be administered
by an Assistant Secretary for Family Support within the Department of Health and Human Services, who shall be appointed by
the President, by and with the advice and consent of the Senate,
and who shall be in addition to any other Assistant Secretary
of Health and Human Services provided for by law, and the Secretary shall reduce the Federal workforce within the Department
of Health and Human Services by an amount equal to the sum
of 75 percent of the full-time equivalent positions at such Department that relate to any direct spending program, or any program
funded through discretionary spending, that has been converted
into a block grant program under the Personal Responsibility and
Work Opportunity Act of 1996 and the amendments made by such
Act, and by an amount equal to 75 percent of that portion of
the total full-time equivalent departmental management positions
at such Department that bears the same relationship to the amount

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2159

appropriated for any direct spending program, or any program
funded through discretionary spending, that has been converted
into a block grant program under the Personal Responsibility and
Work Opportunity Act of 1996 and the amendments made by such
Act, as such amount relates to the total amount appropriated for
use by such Department, and, notwithstanding any other provision
of law, the Secretary shall take such actions as may be necessary,
including reductions in force actions, consistent with sections 3502
and 3595 of title 5, United States Code, to reduce the full-time
equivalent positions within the Department of Health and Human
Services by 245 full-time equivalent positions related to the program
converted into a block grant under the amendment made by section
2103 of the Personal Responsibility and Work Opportunity Act
of 1996, and by 60 full-time equivalent managerial positions in
the Department.
‘‘SEC. 417. LIMITATION ON FEDERAL AUTHORITY.

42 USC 617.

‘‘No officer or employee of the Federal Government may regulate
the conduct of States under this part or enforce any provision of this part, except to the extent expressly provided in this
part.’’; and
(2) by inserting after such section 418 the following:
‘‘SEC. 419. DEFINITIONS.

‘‘As used in this part:
‘‘(1) ADULT.—The term ‘adult’ means an individual who
is not a minor child.
‘‘(2) MINOR CHILD.—The term ‘minor child’ means an
individual who—
‘‘(A) has not attained 18 years of age; or
‘‘(B) has not attained 19 years of age and is a fulltime student in a secondary school (or in the equivalent
level of vocational or technical training).
‘‘(3) FISCAL YEAR.—The term ‘fiscal year’ means any 12month period ending on September 30 of a calendar year.
‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANIZATION.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the terms ‘Indian’, ‘Indian tribe’, and ‘tribal organization’ have the meaning given such terms by section 4
of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
‘‘(B) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—
The term ‘Indian tribe’ means, with respect to the State
of Alaska, only the Metlakatla Indian Community of the
Annette Islands Reserve and the following Alaska Native
regional nonprofit corporations:
‘‘(i) Arctic Slope Native Association.
‘‘(ii) Kawerak, Inc.
‘‘(iii) Maniilaq Association.
‘‘(iv) Association of Village Council Presidents.
‘‘(v) Tanana Chiefs Conference.
‘‘(vi) Cook Inlet Tribal Council.
‘‘(vii) Bristol Bay Native Association.
‘‘(viii) Aleutian and Pribilof Island Association.
‘‘(ix) Chugachmuit.
‘‘(x) Tlingit Haida Central Council.
‘‘(xi) Kodiak Area Native Association.
‘‘(xii) Copper River Native Association.

42 USC 619.

110 STAT. 2160

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(5) STATE.—Except as otherwise specifically provided, the
term ‘State’ means the 50 States of the United States,
the District of Columbia, the Commonwealth of Puerto Rico,
the United States Virgin Islands, Guam, and American
Samoa.’’.
(b) GRANTS TO OUTLYING AREAS.—Section 1108 (42 U.S.C. 1308)
is amended—
(1) by striking subsections (d) and (e);
(2) by redesignating subsection (c) as subsection (f); and
(3) by striking all that precedes subsection (c) and inserting
the following:
‘‘SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN
ISLANDS, GUAM, AND AMERICAN SAMOA; LIMITATION ON
TOTAL PAYMENTS.

‘‘(a) LIMITATION ON TOTAL PAYMENTS TO EACH TERRITORY.—
Notwithstanding any other provision of this Act, the total amount
certified by the Secretary of Health and Human Services under
titles I, X, XIV, and XVI, under parts A and E of title IV, and
under subsection (b) of this section, for payment to any territory
for a fiscal year shall not exceed the ceiling amount for the territory
for the fiscal year.
‘‘(b) ENTITLEMENT TO MATCHING GRANT.—
‘‘(1) IN GENERAL.—Each territory shall be entitled to receive
from the Secretary for each fiscal year a grant in an amount
equal to 75 percent of the amount (if any) by which—
‘‘(A) the total expenditures of the territory during the
fiscal year under the territory programs funded under parts
A and E of title IV; exceeds
‘‘(B) the sum of—
‘‘(i) the amount of the family assistance grant payable to the territory without regard to section
409; and
‘‘(ii) the total amount expended by the territory
during fiscal year 1995 pursuant to parts A and F
of title IV (as so in effect), other than for child care.
‘‘(2) APPROPRIATION.—Out of any money in the Treasury
of the United States not otherwise appropriated, there are
appropriated for fiscal years 1997 through 2002, such sums
as are necessary for grants under this paragraph.
‘‘(c) DEFINITIONS.—As used in this section:
‘‘(1) TERRITORY.—The term ‘territory’ means Puerto Rico,
the Virgin Islands, Guam, and American Samoa.
‘‘(2) CEILING AMOUNT.—The term ‘ceiling amount’ means,
with respect to a territory and a fiscal year, the mandatory
ceiling amount with respect to the territory, reduced for the
fiscal year in accordance with subsection (e), and reduced by
the amount of any penalty imposed on the territory under
any provision of law specified in subsection (a) during the
fiscal year.
‘‘(3) FAMILY ASSISTANCE GRANT.—The term ‘family assistance grant’ has the meaning given such term by section
403(a)(1)(B).
‘‘(4) MANDATORY CEILING AMOUNT.—The term ‘mandatory
ceiling amount’ means—
‘‘(A) $107,255,000 with respect to Puerto Rico;
‘‘(B) $4,686,000 with respect to Guam;

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2161

‘‘(C) $3,554,000 with respect to the Virgin
Islands; and
‘‘(D) $1,000,000 with respect to American Samoa.
‘‘(5) TOTAL AMOUNT EXPENDED BY THE TERRITORY.—The
term ‘total amount expended by the territory’—
‘‘(A) does not include expenditures during the fiscal
year from amounts made available by the Federal Government; and
‘‘(B) when used with respect to fiscal year 1995, also
does not include—
‘‘(i) expenditures during fiscal year 1995 under
subsection (g) or (i) of section 402 (as in effect on
September 30, 1995); or
‘‘(ii) any expenditures during fiscal year 1995 for
which the territory (but for section 1108, as in effect
on September 30, 1995) would have received
reimbursement from the Federal Government.
‘‘(d) AUTHORITY TO TRANSFER FUNDS TO CERTAIN PROGRAMS.—
A territory to which an amount is paid under subsection (b) of
this section may use the amount in accordance with section 404(d).
‘‘(e) MAINTENANCE OF EFFORT.—The ceiling amount with
respect to a territory shall be reduced for a fiscal year by an
amount equal to the amount (if any) by which—
‘‘(1) the total amount expended by the territory under all
programs of the territory operated pursuant to the provisions
of law specified in subsection (a) (as such provisions were
in effect for fiscal year 1995) for fiscal year 1995; exceeds
‘‘(2) the total amount expended by the territory under all
programs of the territory that are funded under the provisions
of law specified in subsection (a) for the fiscal year that immediately precedes the fiscal year referred to in the matter preceding paragraph (1).’’.
(c) ELIMINATION OF CHILD CARE PROGRAMS UNDER THE SOCIAL
SECURITY ACT.—
(1) AFDC AND TRANSITIONAL CHILD CARE PROGRAMS.—Section 402 (42 U.S.C. 602) is amended by striking subsection (g).
(2) AT-RISK CHILD CARE PROGRAM.—
(A) AUTHORIZATION.—Section 402 (42 U.S.C. 602) is
amended by striking subsection (i).
(B) FUNDING PROVISIONS.—Section 403 (42 U.S.C. 603)
is amended by striking subsection (n).
SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR
PRIVATE ORGANIZATIONS.

(a) IN GENERAL.—
(1) STATE OPTIONS.—A State may—
(A) administer and provide services under the programs described in subparagraphs (A) and (B)(i) of
paragraph (2) through contracts with charitable, religious,
or private organizations; and
(B) provide beneficiaries of assistance under the programs described in subparagraphs (A) and (B)(ii) of paragraph (2) with certificates, vouchers, or other forms of
disbursement which are redeemable with such organizations.

42 USC 604a.

110 STAT. 2162

Contracts.

PUBLIC LAW 104–193—AUG. 22, 1996

(2) PROGRAMS DESCRIBED.—The programs described in this
paragraph are the following programs:
(A) A State program funded under part A of title
IV of the Social Security Act (as amended by section 103(a)
of this Act).
(B) Any other program established or modified under
title I or II of this Act, that—
(i) permits contracts with organizations; or
(ii) permits certificates, vouchers, or other forms
of disbursement to be provided to beneficiaries, as a
means of providing assistance.
(b) RELIGIOUS ORGANIZATIONS.—The purpose of this section
is to allow States to contract with religious organizations, or to
allow religious organizations to accept certificates, vouchers, or
other forms of disbursement under any program described in subsection (a)(2), on the same basis as any other nongovernmental
provider without impairing the religious character of such organizations, and without diminishing the religious freedom of beneficiaries
of assistance funded under such program.
(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANIZATIONS.—
In the event a State exercises its authority under subsection (a),
religious organizations are eligible, on the same basis as any other
private organization, as contractors to provide assistance, or to
accept certificates, vouchers, or other forms of disbursement, under
any program described in subsection (a)(2) so long as the programs
are implemented consistent with the Establishment Clause of the
United States Constitution. Except as provided in subsection (k),
neither the Federal Government nor a State receiving funds under
such programs shall discriminate against an organization which
is or applies to be a contractor to provide assistance, or which
accepts certificates, vouchers, or other forms of disbursement, on
the basis that the organization has a religious character.
(d) RELIGIOUS CHARACTER AND FREEDOM.—
(1) RELIGIOUS ORGANIZATIONS.—A religious organization
with a contract described in subsection (a)(1)(A), or which
accepts certificates, vouchers, or other forms of disbursement
under subsection (a)(1)(B), shall retain its independence from
Federal, State, and local governments, including such organization’s control over the definition, development, practice, and
expression of its religious beliefs.
(2) ADDITIONAL SAFEGUARDS.—Neither the Federal Government nor a State shall require a religious organization to—
(A) alter its form of internal governance; or
(B) remove religious art, icons, scripture, or other
symbols;
in order to be eligible to contract to provide assistance, or
to accept certificates, vouchers, or other forms of disbursement,
funded under a program described in subsection (a)(2).
(e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—
(1) IN GENERAL.—If an individual described in paragraph
(2) has an objection to the religious character of the organization
or institution from which the individual receives, or would
receive, assistance funded under any program described in subsection (a)(2), the State in which the individual resides shall
provide such individual (if otherwise eligible for such assistance) within a reasonable period of time after the date of
such objection with assistance from an alternative provider

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2163

that is accessible to the individual and the value of which
is not less than the value of the assistance which the individual
would have received from such organization.
(2) INDIVIDUAL DESCRIBED.—An individual described in this
paragraph is an individual who receives, applies for, or requests
to apply for, assistance under a program described in subsection
(a)(2).
(f) EMPLOYMENT PRACTICES.—A religious organization’s exemption provided under section 702 of the Civil Rights Act of 1964
(42 U.S.C. 2000e–1a) regarding employment practices shall not
be affected by its participation in, or receipt of funds from, programs
described in subsection (a)(2).
(g) NONDISCRIMINATION AGAINST BENEFICIARIES.—Except as
otherwise provided in law, a religious organization shall not
discriminate against an individual in regard to rendering assistance
funded under any program described in subsection (a)(2) on the
basis of religion, a religious belief, or refusal to actively participate
in a religious practice.
(h) FISCAL ACCOUNTABILITY.—
(1) IN GENERAL.—Except as provided in paragraph (2), any
religious organization contracting to provide assistance funded
under any program described in subsection (a)(2) shall be subject to the same regulations as other contractors to account
in accord with generally accepted auditing principles for the
use of such funds provided under such programs.
(2) LIMITED AUDIT.—If such organization segregates Federal
funds provided under such programs into separate accounts,
then only the financial assistance provided with such funds
shall be subject to audit.
(i) COMPLIANCE.—Any party which seeks to enforce its rights
under this section may assert a civil action for injunctive relief
exclusively in an appropriate State court against the entity or
agency that allegedly commits such violation.
(j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.—
No funds provided directly to institutions or organizations to provide
services and administer programs under subsection (a)(1)(A) shall
be expended for sectarian worship, instruction, or proselytization.
(k) PREEMPTION.—Nothing in this section shall be construed
to preempt any provision of a State constitution or State statute
that prohibits or restricts the expenditure of State funds in or
by religious organizations.
SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS
FOR THEIR GRANDCHILDREN.

(a) IN GENERAL.—Not later than 90 days after the date of
the enactment of this Act, the Secretary of Commerce, in carrying
out section 141 of title 13, United States Code, shall expand the
data collection efforts of the Bureau of the Census (in this section
referred to as the ‘‘Bureau’’) to enable the Bureau to collect statistically significant data, in connection with its decennial census
and its mid-decade census, concerning the growing trend of grandparents who are the primary caregivers for their grandchildren.
(b) EXPANDED CENSUS QUESTION.—In carrying out subsection
(a), the Secretary of Commerce shall expand the Bureau’s census
question that details households which include both grandparents
and their grandchildren. The expanded question shall be formulated
to distinguish between the following households:

13 USC 141 note.

110 STAT. 2164

PUBLIC LAW 104–193—AUG. 22, 1996
(1) A household in which a grandparent temporarily provides a home for a grandchild for a period of weeks or months
during periods of parental distress.
(2) A household in which a grandparent provides a home
for a grandchild and serves as the primary caregiver for the
grandchild.

SEC. 106. REPORT ON DATA PROCESSING.

(a) IN GENERAL.—Within 6 months after the date of the enactment of this Act, the Secretary of Health and Human Services
shall prepare and submit to the Congress a report on—
(1) the status of the automated data processing systems
operated by the States to assist management in the administration of State programs under part A of title IV of the
Social Security Act (whether in effect before or after October
1, 1995); and
(2) what would be required to establish a system capable of—
(A) tracking participants in public programs over
time; and
(B) checking case records of the States to determine
whether individuals are participating in public programs
of 2 or more States.
(b) PREFERRED CONTENTS.—The report required by subsection
(a) should include—
(1) a plan for building on the automated data processing
systems of the States to establish a system with the capabilities
described in subsection (a)(2); and
(2) an estimate of the amount of time required to establish
such a system and of the cost of establishing such a system.
42 USC 613 note.

SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

(a) STUDY.—The Secretary shall, in cooperation with the States,
study and analyze outcomes measures for evaluating the success
of the States in moving individuals out of the welfare system
through employment as an alternative to the minimum participation
rates described in section 407 of the Social Security Act. The study
shall include a determination as to whether such alternative outcomes measures should be applied on a national or a State-byState basis and a preliminary assessment of the effects of section
409(a)(7)(C) of such Act.
(b) REPORT.—Not later than September 30, 1998, the Secretary
shall submit to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of Representatives a report containing the findings of the study required by
subsection (a).
SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

(a) AMENDMENTS TO TITLE II.—
(1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), as
so redesignated by section 321(a)(9)(B) of the Social Security
Independence and Program Improvements Act of 1994, is
amended—
(A) by inserting ‘‘an agency administering a program
funded under part A of title IV or’’ before ‘‘an agency
operating’’; and
(B) by striking ‘‘A or D of title IV of this Act’’ and
inserting ‘‘D of such title’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2165

(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by
inserting ‘‘under a State program funded under’’ before ‘‘part
A of title IV’’.
(b) AMENDMENTS TO PART B OF TITLE IV.—Section 422(b)(2)
(42 U.S.C. 622(b)(2)) is amended—
(1) by striking ‘‘plan approved under part A of this title’’
and inserting ‘‘program funded under part A’’; and
(2) by striking ‘‘part E of this title’’ and inserting ‘‘under
the State plan approved under part E’’.
(c) AMENDMENTS TO PART D OF TITLE IV.—
(1) Section 451 (42 U.S.C. 651) is amended by striking
‘‘aid’’ and inserting ‘‘assistance under a State program funded’’.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is
amended—
(A) by striking ‘‘aid to families with dependent children’’ and inserting ‘‘assistance under a State program
funded under part A’’;
(B) by striking ‘‘such aid’’ and inserting ‘‘such assistance’’; and
(C) by striking ‘‘under section 402(a)(26) or’’ and inserting ‘‘pursuant to section 408(a)(3) or under section’’.
(3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is
amended—
(A) by striking ‘‘aid under a State plan approved’’ and
inserting ‘‘assistance under a State program funded’’; and
(B) by striking ‘‘in accordance with the standards
referred to in section 402(a)(26)(B)(ii)’’ and inserting ‘‘by
the State’’.
(4) Section 452(b) (42 U.S.C. 652(b)) is amended in the
first sentence by striking ‘‘aid under the State plan approved
under part A’’ and inserting ‘‘assistance under the State program funded under part A’’.
(5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is
amended by striking ‘‘1115(c)’’ and inserting ‘‘1115(b)’’.
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 652(g)(2)(A)(ii)(I))
is amended by striking ‘‘aid is being paid under the State’s
plan approved under part A or E’’ and inserting ‘‘assistance
is being provided under the State program funded under
part A’’.
(7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended
in the matter following clause (iii) by striking ‘‘aid was being
paid under the State’s plan approved under part A or E’’
and inserting ‘‘assistance was being provided under the State
program funded under part A’’.
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in
the matter following subparagraph (B)—
(A) by striking ‘‘who is a dependent child’’ and inserting
‘‘with respect to whom assistance is being provided under
the State program funded under part A’’;
(B) by inserting ‘‘by the State’’ after ‘‘found’’; and
(C) by striking ‘‘to have good cause for refusing to
cooperate under section 402(a)(26)’’ and inserting ‘‘to qualify for a good cause or other exception to cooperation pursuant to section 454(29)’’.
(9) Section 452(h) (42 U.S.C. 652(h)) is amended by striking
‘‘under section 402(a)(26)’’ and inserting ‘‘pursuant to section
408(a)(3)’’.

110 STAT. 2166

PUBLIC LAW 104–193—AUG. 22, 1996

(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by
striking ‘‘aid under part A of this title’’ and inserting ‘‘assistance
under a State program funded under part A’’.
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A)) is amended—
(A) by striking ‘‘under section 402(a)(26)’’ and inserting
‘‘pursuant to section 408(a)(3)’’; and
(B) by striking ‘‘; except that this paragraph shall
not apply to such payments for any month following the
first month in which the amount collected is sufficient
to make such family ineligible for assistance under the
State plan approved under part A;’’ and inserting a comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended
by striking ‘‘aid under a State plan approved’’ and inserting
‘‘assistance under a State program funded’’.
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by
striking ‘‘under section 402(a)(26)’’.
(14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is
amended by striking ‘‘402(a)(26)’’ and inserting ‘‘408(a)(3)’’.
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by
striking ‘‘aid’’ and inserting ‘‘assistance under a State program
funded’’.
(16) Section 469(a) (42 U.S.C. 669(a)) is amended—
(A) by striking ‘‘aid under plans approved’’ and inserting ‘‘assistance under State programs funded’’; and
(B) by striking ‘‘such aid’’ and inserting ‘‘such assistance’’.
(d) AMENDMENTS TO PART E OF TITLE IV.—
(1) Section 470 (42 U.S.C. 670) is amended—
(A) by striking ‘‘would be’’ and inserting ‘‘would have
been’’; and
(B) by inserting ‘‘(as such plan was in effect on June
1, 1995)’’ after ‘‘part A’’.
(2) Section 471(a)(17) (42 U.S.C. 671(a)(17)) is amended
by striking ‘‘plans approved under parts A and D’’ and inserting
‘‘program funded under part A and plan approved under
part D’’.
(3) Section 472(a) (42 U.S.C. 672(a)) is amended—
(A) in the matter preceding paragraph (1)—
(i) by striking ‘‘would meet’’ and inserting ‘‘would
have met’’;
(ii) by inserting ‘‘(as such sections were in effect
on June 1, 1995)’’ after ‘‘407’’; and
(iii) by inserting ‘‘(as so in effect)’’ after
‘‘406(a)’’; and
(B) in paragraph (4)—
(i) in subparagraph (A)—
(I) by inserting ‘‘would have’’ after ‘‘(A)’’; and
(II) by inserting ‘‘(as in effect on June 1, 1995)’’
after ‘‘section 402’’; and
(ii) in subparagraph (B)(ii), by inserting ‘‘(as in
effect on June 1, 1995)’’ after ‘‘406(a)’’.
(4) Section 472(h) (42 U.S.C. 672(h)) is amended to read
as follows:
‘‘(h)(1) For purposes of title XIX, any child with respect to
whom foster care maintenance payments are made under this section is deemed to be a dependent child as defined in section 406
(as in effect as of June 1, 1995) and deemed to be a recipient

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2167

of aid to families with dependent children under part A of this
title (as so in effect). For purposes of title XX, any child with
respect to whom foster care maintenance payments are made under
this section is deemed to be a minor child in a needy family
under a State program funded under part A of this title and
is deemed to be a recipient of assistance under such part.
‘‘(2) For purposes of paragraph (1), a child whose costs in
a foster family home or child care institution are covered by the
foster care maintenance payments being made with respect to the
child’s minor parent, as provided in section 475(4)(B), shall be
considered a child with respect to whom foster care maintenance
payments are made under this section.’’.
(5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is amended—
(A) in subparagraph (A)(i)—
(i) by inserting ‘‘(as such sections were in effect
on June 1, 1995)’’ after ‘‘407’’;
(ii) by inserting ‘‘(as so in effect)’’ after ‘‘specified
in section 406(a)’’; and
(iii) by inserting ‘‘(as such section was in effect
on June 1, 1995)’’ after ‘‘403’’;
(B) in subparagraph (B)(i)—
(i) by inserting ‘‘would have’’ after ‘‘(B)(i)’’; and
(ii) by inserting ‘‘(as in effect on June 1, 1995)’’
after ‘‘section 402’’; and
(C) in subparagraph (B)(ii)(II), by inserting ‘‘(as in
effect on June 1, 1995)’’ after ‘‘406(a)’’.
(6) Section 473(b) (42 U.S.C. 673(b)) is amended to read
as follows:
‘‘(b)(1) For purposes of title XIX, any child who is described
in paragraph (3) is deemed to be a dependent child as defined
in section 406 (as in effect as of June 1, 1995) and deemed to
be a recipient of aid to families with dependent children under
part A of this title (as so in effect) in the State where such child
resides.
‘‘(2) For purposes of title XX, any child who is described in
paragraph (3) is deemed to be a minor child in a needy family
under a State program funded under part A of this title and
deemed to be a recipient of assistance under such part.
‘‘(3) A child described in this paragraph is any child—
‘‘(A)(i) who is a child described in subsection (a)(2), and
‘‘(ii) with respect to whom an adoption assistance agreement is in effect under this section (whether or not adoption
assistance payments are provided under the agreement or are
being made under this section), including any such child who
has been placed for adoption in accordance with applicable
State and local law (whether or not an interlocutory or other
judicial decree of adoption has been issued), or
‘‘(B) with respect to whom foster care maintenance payments are being made under section 472.
‘‘(4) For purposes of paragraphs (1) and (2), a child whose
costs in a foster family home or child-care institution are covered
by the foster care maintenance payments being made with respect
to the child’s minor parent, as provided in section 475(4)(B), shall
be considered a child with respect to whom foster care maintenance
payments are being made under section 472.’’.
(e) REPEAL OF PART F OF TITLE IV.—Part F of title IV (42
U.S.C. 681–687) is repealed.

110 STAT. 2168

PUBLIC LAW 104–193—AUG. 22, 1996

(f) AMENDMENT TO TITLE X.—Section 1002(a)(7) (42 U.S.C.
1202(a)(7)) is amended by striking ‘‘aid to families with dependent
children under the State plan approved under section 402 of this
Act’’ and inserting ‘‘assistance under a State program funded under
part A of title IV’’.
(g) AMENDMENTS TO TITLE XI.—
(1) Section 1109 (42 U.S.C. 1309) is amended by striking
‘‘or part A of title IV,’’.
(2) Section 1115 (42 U.S.C. 1315) is amended—
(A) in subsection (a)(2)—
(i) by inserting ‘‘(A)’’ after ‘‘(2)’’;
(ii) by striking ‘‘403,’’;
(iii) by striking the period at the end and
inserting ‘‘, and’’; and
(iv) by adding at the end the following new
subparagraph:
‘‘(B) costs of such project which would not otherwise be
a permissible use of funds under part A of title IV and which
are not included as part of the costs of projects under section
1110, shall to the extent and for the period prescribed by
the Secretary, be regarded as a permissible use of funds under
such part.’’;
(B) in subsection (c)(3), by striking ‘‘the program of
aid to families with dependent children’’ and inserting ‘‘part
A of such title’’; and
(C) by striking subsection (b) and redesignating subsections (c) and (d) as subsections (b) and (c), respectively.
(3) Section 1116 (42 U.S.C. 1316) is amended—
(A) in each of subsections (a)(1), (b), and (d), by striking
‘‘or part A of title IV,’’; and
(B) in subsection (a)(3), by striking ‘‘404,’’.
(4) Section 1118 (42 U.S.C. 1318) is amended—
(A) by striking ‘‘403(a),’’;
(B) by striking ‘‘and part A of title IV,’’; and
(C) by striking ‘‘, and shall, in the case of American
Samoa, mean 75 per centum with respect to part A of
title IV’’.
(5) Section 1119 (42 U.S.C. 1319) is amended—
(A) by striking ‘‘or part A of title IV’’; and
(B) by striking ‘‘403(a),’’.
(6) Section 1133(a) (42 U.S.C. 1320b–3(a)) is amended by
striking ‘‘or part A of title IV,’’.
(7) Section 1136 (42 U.S.C. 1320b–6) is repealed.
(8) Section 1137 (42 U.S.C. 1320b–7) is amended—
(A) in subsection (b), by striking paragraph (1) and
inserting the following:
‘‘(1) any State program funded under part A of title IV
of this Act;’’; and
(B) in subsection (d)(1)(B)—
(i) by striking ‘‘In this subsection—’’ and all that
follows through ‘‘(ii) in’’ and inserting ‘‘In this subsection, in’’;
(ii) by redesignating subclauses (I), (II), and (III)
as clauses (i), (ii), and (iii); and
(iii) by moving such redesignated material 2 ems
to the left.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2169

(h) AMENDMENT TO TITLE XIV.—Section 1402(a)(7) (42 U.S.C.
1352(a)(7)) is amended by striking ‘‘aid to families with dependent
children under the State plan approved under section 402 of this
Act’’ and inserting ‘‘assistance under a State program funded under
part A of title IV’’.
(i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH RESPECT
TO THE TERRITORIES.—Section 1602(a)(11), as in effect without
regard to the amendment made by section 301 of the Social Security
Amendments of 1972 (42 U.S.C. 1382 note), is amended by striking
‘‘aid under the State plan approved’’ and inserting ‘‘assistance under
a State program funded’’.
(j) AMENDMENT TO TITLE XVI AS IN EFFECT WITH RESPECT
TO THE STATES.—Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is
amended to read as follows: ‘‘(A) a State program funded under
part A of title IV,’’.
(k) AMENDMENT TO TITLE XIX.—Section 1902(j) (42 U.S.C.
1396a(j)) is amended by striking ‘‘1108(c)’’ and inserting ‘‘1108(f)’’.
SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF
1977 AND RELATED PROVISIONS.

(a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)
is amended—
(1) in the second sentence of subsection (a), by striking
‘‘plan approved’’ and all that follows through ‘‘title IV of the
Social Security Act’’ and inserting ‘‘program funded under
part A of title IV of the Social Security Act (42 U.S.C. 601
et seq.)’’;
(2) in subsection (d)—
(A) in paragraph (5), by striking ‘‘assistance to families
with dependent children’’ and inserting ‘‘assistance under
a State program funded’’; and
(B) by striking paragraph (13) and redesignating paragraphs (14), (15), and (16) as paragraphs (13), (14), and
(15), respectively;
(3) in subsection (j), by striking ‘‘plan approved under part
A of title IV of such Act (42 U.S.C. 601 et seq.)’’ and inserting
‘‘program funded under part A of title IV of the Act (42 U.S.C.
601 et seq.)’’; and
(4) by striking subsection (m).
(b) Section 6 of such Act (7 U.S.C. 2015) is amended—
(1) in subsection (c)(5), by striking ‘‘the State plan
approved’’ and inserting ‘‘the State program funded’’; and
(2) in subsection (e)(6), by striking ‘‘aid to families with
dependent children’’ and inserting ‘‘benefits under a State program funded’’.
(c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended
by striking ‘‘State plans under the Aid to Families with Dependent
Children Program under’’ and inserting ‘‘State programs funded
under part A of’’.
(d) Section 17 of such Act (7 U.S.C. 2026) is amended—
(1) in the first sentence of subsection (b)(1)(A), by striking
‘‘to aid to families with dependent children under part A of
title IV of the Social Security Act’’ and inserting ‘‘or are
receiving assistance under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.)’’; and

110 STAT. 2170

PUBLIC LAW 104–193—AUG. 22, 1996

(2) in subsection (b)(3), by adding at the end the following
new subparagraph:
‘‘(I) The Secretary may not grant a waiver under this paragraph
on or after the date of enactment of this subparagraph. Any reference in this paragraph to a provision of title IV of the Social
Security Act shall be deemed to be a reference to such provision
as in effect on the day before such date.’’;
(e) Section 20 of such Act (7 U.S.C. 2029) is amended—
(1) in subsection (a)(2)(B) by striking ‘‘operating—’’ and
all that follows through ‘‘(ii) any other’’ and inserting ‘‘operating
any’’; and
(2) in subsection (b)—
(A) in paragraph (1)—
(i) by striking ‘‘(b)(1) A household’’ and inserting
‘‘(b) A household’’; and
(ii) in subparagraph (B), by striking ‘‘training program’’ and inserting ‘‘activity’’;
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A) through (F)
as paragraphs (1) through (6), respectively.
(f) Section 5(h)(1) of the Agriculture and Consumer Protection
Act of 1973 (Public Law 93–186; 7 U.S.C. 612c note) is amended
by striking ‘‘the program for aid to families with dependent children’’
and inserting ‘‘the State program funded’’.
(g) Section 9 of the National School Lunch Act (42 U.S.C.
1758) is amended—
(1) in subsection (b)—
(A) in paragraph (2)(C)(ii)(II)—
(i) by striking ‘‘program for aid to families with
dependent children’’ and inserting ‘‘State program
funded’’; and
(ii) by inserting before the period at the end the
following: ‘‘that the Secretary determines complies with
standards established by the Secretary that ensure
that the standards under the State program are comparable to or more restrictive than those in effect on
June 1, 1995’’; and
(B) in paragraph (6)—
(i) in subparagraph (A)(ii)—
(I) by striking ‘‘an AFDC assistance unit
(under the aid to families with dependent children
program authorized’’ and inserting ‘‘a family
(under the State program funded’’; and
(II) by striking ‘‘, in a State’’ and all that
follows through ‘‘9902(2)))’’ and inserting ‘‘that the
Secretary determines complies with standards
established by the Secretary that ensure that the
standards under the State program are comparable
to or more restrictive than those in effect on June
1, 1995’’; and
(ii) in subparagraph (B), by striking ‘‘aid to families
with dependent children’’ and inserting ‘‘assistance
under the State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.)
that the Secretary determines complies with standards
established by the Secretary that ensure that the
standards under the State program are comparable

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2171

to or more restrictive than those in effect on June
1, 1995’’; and
(2) in subsection (d)(2)(C)—
(A) by striking ‘‘program for aid to families with
dependent children’’ and inserting ‘‘State program
funded’’; and
(B) by inserting before the period at the end the
following: ‘‘that the Secretary determines complies with
standards established by the Secretary that ensure that
the standards under the State program are comparable
to or more restrictive than those in effect on June 1, 1995’’.
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended—
(1) by striking ‘‘program for aid to families with dependent
children
established’’
and
inserting
‘‘State
program
funded’’; and
(2) by inserting before the semicolon the following: ‘‘that
the Secretary determines complies with standards established
by the Secretary that ensure that the standards under the
State program are comparable to or more restrictive than those
in effect on June 1, 1995’’.
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

(a) Subsection (b) of section 508 of the Unemployment Compensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94–
566; 90 Stat. 2689) is amended to read as follows:
‘‘(b) PROVISION FOR REIMBURSEMENT OF EXPENSES.—For purposes of section 455 of the Social Security Act, expenses incurred
to reimburse State employment offices for furnishing information
requested of such offices—
‘‘(1) pursuant to the third sentence of section 3(a) of the
Act entitled ‘An Act to provide for the establishment of a
national employment system and for cooperation with the
States in the promotion of such system, and for other purposes’,
approved June 6, 1933 (29 U.S.C. 49b(a)), or
‘‘(2) by a State or local agency charged with the duty
of carrying a State plan for child support approved under
part D of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the administration of such State plan.’’.
(b) Section 9121 of the Omnibus Budget Reconciliation Act
of 1987 (42 U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconciliation
Act of 1987 (42 U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Recovery Act
of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC
of certain rental payments for federally assisted housing, is
repealed.
(e) Section 159 of the Tax Equity and Fiscal Responsibility
Act of 1982 (42 U.S.C. 602 note) is repealed.
(f) Section 202(d) of the Social Security Amendments of 1967
(81 Stat. 882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), relating
to demonstration projects to reduce number of AFDC families in
welfare hotels, is amended—

110 STAT. 2172

PUBLIC LAW 104–193—AUG. 22, 1996

(1) in subsection (a), by striking ‘‘aid to families with
dependent children under a State plan approved’’ and inserting
‘‘assistance under a State program funded’’; and
(2) in subsection (c), by striking ‘‘aid to families with
dependent children in the State under a State plan approved’’
and inserting ‘‘assistance in the State under a State program
funded’’.
(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)
is amended—
(1) in section 404C(c)(3) (20 U.S.C. 1070a–23(c)(3)), by striking ‘‘(Aid to Families with Dependent Children)’’; and
(2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by striking
‘‘aid to families with dependent children under a State plan
approved’’ and inserting ‘‘assistance under a State program
funded’’.
(i) The Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2301 et seq.) is amended—
(1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)),
by striking ‘‘The program for aid to dependent children’’ and
inserting ‘‘The State program funded’’;
(2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by
striking ‘‘the program for aid to families with dependent children’’ and inserting ‘‘the State program funded’’; and
(3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)),
by striking ‘‘the program for aid to families with dependent
children’’ and inserting ‘‘the State program funded’’.
(j) The Elementary and Secondary Education Act of 1965 (20
U.S.C. 2701 et seq.) is amended—
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking
‘‘Aid to Families with Dependent Children program’’ and inserting ‘‘State program funded under part A of title IV of the
Social Security Act’’;
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking
‘‘the program of aid to families with dependent children under
a State plan approved under’’ and inserting ‘‘a State program
funded under part A of’’; and
(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))—
(A) in subparagraph (A)(xi), by striking ‘‘Aid to Families with Dependent Children benefits’’ and inserting
‘‘assistance under a State program funded under part A
of title IV of the Social Security Act’’; and
(B) in subparagraph (B)(viii), by striking ‘‘Aid to Families with Dependent Children’’ and inserting ‘‘assistance
under the State program funded under part A of title
IV of the Social Security Act’’.
(k) The 4th proviso of chapter VII of title I of Public Law
99–88 (25 U.S.C. 13d–1) is amended to read as follows: ‘‘Provided
further, That general assistance payments made by the Bureau
of Indian Affairs shall be made—
‘‘(1) after April 29, 1985, and before October 1, 1995, on
the basis of Aid to Families with Dependent Children (AFDC)
standards of need; and
‘‘(2) on and after October 1, 1995, on the basis of standards
of need established under the State program funded under
part A of title IV of the Social Security Act,
except that where a State ratably reduces its AFDC or State program payments, the Bureau shall reduce general assistance pay-

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2173

ments in such State by the same percentage as the State has
reduced the AFDC or State program payment.’’.
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.)
is amended—
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all
that follows ‘‘agency as’’ and inserting ‘‘being eligible for financial assistance under part A of title IV of the Social Security
Act and as having continually received such financial assistance
during the 90-day period which immediately precedes the date
on which such individual is hired by the employer.’’;
(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by striking ‘‘eligibility for aid or services,’’ and all that follows through
‘‘children approved’’ and inserting ‘‘eligibility for assistance,
or the amount of such assistance, under a State program
funded’’;
(3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)),
by striking ‘‘aid to families with dependent children provided
under a State plan approved’’ and inserting ‘‘a State program
funded’’;
(4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))—
(A) by striking ‘‘(c) or (d)’’ each place it appears and
inserting ‘‘(c), (d), or (e)’’; and
(B) by adding at the end of subparagraph (B) the
following new sentence: ‘‘Any return information disclosed
with respect to section 6402(e) shall only be disclosed to
officers and employees of the State agency requesting such
information.’’;
(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the
matter preceding subparagraph (A)—
(A) by striking ‘‘(5), (10)’’ and inserting ‘‘(5)’’; and
(B) by striking ‘‘(9), or (12)’’ and inserting ‘‘(9), (10),
or (12)’’;
(6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by
striking ‘‘(relating to aid to families with dependent children)’’;
(7) in section 6402 (26 U.S.C. 6402)—
(A) in subsection (a), by striking ‘‘(c) and (d)’’ and
inserting ‘‘(c), (d), and (e)’’;
(B) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and
(C) by inserting after subsection (d) the following:
‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE IV–A OF THE
SOCIAL SECURITY ACT.—The amount of any overpayment to be
refunded to the person making the overpayment shall be reduced
(after reductions pursuant to subsections (c) and (d), but before
a credit against future liability for an internal revenue tax) in
accordance with section 405(e) of the Social Security Act (concerning
recovery of overpayments to individuals under State plans approved
under part A of title IV of such Act).’’; and
(8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by
striking ‘‘aid to families with dependent children’’ and inserting
‘‘assistance under a State program funded under part A of
title IV of the Social Security Act’’.
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b))
is amended by striking ‘‘State plan approved under part A of title
IV’’ and inserting ‘‘State program funded under part A of
title IV’’.

110 STAT. 2174

PUBLIC LAW 104–193—AUG. 22, 1996

(n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.)
is amended—
(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by striking ‘‘(42 U.S.C. 601 et seq.)’’;
(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by striking ‘‘State aid to families with dependent children records,’’
and inserting ‘‘records collected under the State program funded
under part A of title IV of the Social Security Act,’’;
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))—
(A) by striking ‘‘the JOBS program’’ and inserting ‘‘the
work activities required under title IV of the Social Security
Act’’; and
(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))—
(A) in paragraph (1)(E), by repealing clause (vi); and
(B) in paragraph (2)(D), by repealing clause (v);
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking
‘‘, including recipients under the JOBS program’’;
(6) in subparagraphs (A) and (B) of section 204(a)(1) (29
U.S.C. 1604(a)(1) (A) and (B)), by striking ‘‘(such as the JOBS
program)’’ each place it appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by striking paragraph (4) and inserting the following:
‘‘(4) the portions of title IV of the Social Security Act
relating to work activities;’’;
(8) in section 253 (29 U.S.C. 1632)—
(A) in subsection (b)(2), by repealing subparagraph (C);
and
(B) in paragraphs (1)(B) and (2)(B) of subsection (c),
by striking ‘‘the JOBS program or’’ each place it appears;
(9) in section 264 (29 U.S.C. 1644)—
(A) in subparagraphs (A) and (B) of subsection (b)(1),
by striking ‘‘(such as the JOBS program)’’ each place it
appears; and
(B) in subparagraphs (A) and (B) of subsection (d)(3),
by striking ‘‘and the JOBS program’’ each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by striking paragraph (6) and inserting the following:
‘‘(6) the portion of title IV of the Social Security Act relating
to work activities;’’;
(11) in the second sentence of section 429(e) (29 U.S.C.
1699(e)), by striking ‘‘and shall be in an amount that does
not exceed the maximum amount that may be provided by
the State pursuant to section 402(g)(1)(C) of the Social Security
Act (42 U.S.C. 602(g)(1)(C))’’;
(12) in section 454(c) (29 U.S.C. 1734(c)), by striking
‘‘JOBS and’’;
(13) in section 455(b) (29 U.S.C. 1735(b)), by striking ‘‘the
JOBS program,’’;
(14) in section 501(1) (29 U.S.C. 1791(1)), by striking ‘‘aid
to families with dependent children under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.)’’ and inserting
‘‘assistance under the State program funded under part A of
title IV of the Social Security Act’’;
(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking
‘‘aid to families with dependent children’’ and inserting ‘‘assistance under the State program funded’’;

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110 STAT. 2175

(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by
striking ‘‘aid to families with dependent children’’ and inserting
‘‘assistance under the State program funded’’; and
(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))—
(A) in clause (v), by striking the semicolon and inserting ‘‘; and’’; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United States Code,
is amended to read as follows:
‘‘(iv) assistance under a State program funded under part
A of title IV of the Social Security Act;’’.
(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to
read as follows:
‘‘(i) assistance under the State program funded
under part A of title IV of the Social Security Act;’’.
(q) Section 303(f)(2) of the Family Support Act of 1988 (42
U.S.C. 602 note) is amended—
(1) by striking ‘‘(A)’’; and
(2) by striking subparagraphs (B) and (C).
(r) The Balanced Budget and Emergency Deficit Control Act
of 1985 (2 U.S.C. 900 et seq.) is amended—
(1) in the first section 255(h) (2 U.S.C. 905(h)), by striking
‘‘Aid to families with dependent children (75–0412–0–1–609);’’
and inserting ‘‘Block grants to States for temporary assistance
for needy families;’’; and
(2) in section 256 (2 U.S.C. 906)—
(A) by striking subsection (k); and
(B) by redesignating subsection (l) as subsection (k).
(s) The Immigration and Nationality Act (8 U.S.C. 1101 et
seq.) is amended—
(1) in section 210(f) (8 U.S.C. 1160(f)), by striking ‘‘aid
under a State plan approved under’’ each place it appears
and inserting ‘‘assistance under a State program funded under’’;
(2) in section 245A(h) (8 U.S.C. 1255a(h))—
(A) in paragraph (1)(A)(i), by striking ‘‘program of aid
to families with dependent children’’ and inserting ‘‘State
program of assistance’’; and
(B) in paragraph (2)(B), by striking ‘‘aid to families
with dependent children’’ and inserting ‘‘assistance under
a State program funded under part A of title IV of the
Social Security Act’’; and
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking
‘‘State plan approved’’ and inserting ‘‘State program funded’’.
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C.
9835(a)(4)(B)(i)) is amended by striking ‘‘program of aid to families
with dependent children under a State plan approved’’ and inserting
‘‘State program of assistance funded’’.
(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter
92; 25 U.S.C. 639) is repealed.
(v) Subparagraph (E) of section 213(d)(6) of the School-ToWork Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended
to read as follows:
‘‘(E) part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) relating to work activities;’’.
(w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code,
is amended by striking ‘‘section 464 or 1137 of the Social Security

110 STAT. 2176

PUBLIC LAW 104–193—AUG. 22, 1996

Act’’ and inserting ‘‘section 404(e), 464, or 1137 of the Social
Security Act’’.
42 USC 405 note.

SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT SOCIAL SECURITY CARD REQUIRED.

(a) DEVELOPMENT.—
(1) IN GENERAL.—The Commissioner of Social Security (in
this section referred to as the ‘‘Commissioner’’) shall, in accordance with this section, develop a prototype of a counterfeitresistant social security card. Such prototype card shall—
(A) be made of a durable, tamper-resistant material
such as plastic or polyester,
(B) employ technologies that provide security features,
such as magnetic stripes, holograms, and integrated
circuits, and
(C) be developed so as to provide individuals with
reliable proof of citizenship or legal resident alien status.
(2) ASSISTANCE BY ATTORNEY GENERAL.—The Attorney General of the United States shall provide such information and
assistance as the Commissioner deems necessary to enable
the Commissioner to comply with this section.
(b) STUDY AND REPORT.—
(1) IN GENERAL.—The Commissioner shall conduct a
study and issue a report to Congress which examines different
methods of improving the social security card application
process.
(2) ELEMENTS OF STUDY.—The study shall include an
evaluation of the cost and work load implications of issuing
a counterfeit-resistant social security card for all individuals
over a 3-, 5-, and 10-year period. The study shall also evaluate
the feasibility and cost implications of imposing a user fee
for replacement cards and cards issued to individuals who
apply for such a card prior to the scheduled 3-, 5-, and 10year phase-in options.
(3) DISTRIBUTION OF REPORT.—The Commissioner shall
submit copies of the report described in this subsection along
with a facsimile of the prototype card as described in subsection
(a) to the Committees on Ways and Means and Judiciary of
the House of Representatives and the Committees on Finance
and Judiciary of the Senate within 1 year after the date of
the enactment of this Act.
SEC. 112. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN
LOW-INCOME INDIVIDUALS PROGRAM.

Section 505 of the Family Support Act of 1988 (42 U.S.C.
1315 note) is amended—
(1) in the heading, by striking ‘‘DEMONSTRATION’’;
(2) by striking ‘‘demonstration’’ each place such term
appears;
(3) in subsection (a), by striking ‘‘in each of fiscal years’’
and all that follows through ‘‘10’’ and inserting ‘‘shall enter
into agreements with’’;
(4) in subsection (b)(3), by striking ‘‘aid to families with
dependent children under part A of title IV of the Social Security Act’’ and inserting ‘‘assistance under the program funded
part A of title IV of the Social Security Act of the State in
which the individual resides’’;
(5) in subsection (c)—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2177

(A) in paragraph (1)(C), by striking ‘‘aid to families
with dependent children under title IV of the Social Security Act’’ and inserting ‘‘assistance under a State program
funded part A of title IV of the Social Security Act’’;
(B) in paragraph (2), by striking ‘‘aid to families with
dependent children under title IV of such Act’’ and inserting
‘‘assistance under a State program funded part A of title
IV of the Social Security Act’’;
(6) in subsection (d), by striking ‘‘job opportunities and
basic skills training program (as provided for under title IV
of the Social Security Act)’’ and inserting ‘‘the State program
funded under part A of title IV of the Social Security
Act’’; and
(7) by striking subsections (e) through (g) and inserting
the following:
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of
conducting projects under this section, there is authorized to be
appropriated an amount not to exceed $25,000,000 for any fiscal
year.’’.
SEC. 113. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR
TECHNICAL AND CONFORMING AMENDMENTS.

Not later than 90 days after the date of the enactment of
this Act, the Secretary of Health and Human Services and the
Commissioner of Social Security, in consultation, as appropriate,
with the heads of other Federal agencies, shall submit to the
appropriate committees of Congress a legislative proposal proposing
such technical and conforming amendments as are necessary to
bring the law into conformity with the policy embodied in this
title.
SEC.

114.

ASSURING MEDICAID
FAMILIES.

COVERAGE

FOR

LOW-INCOME

(a) IN GENERAL.—Title XIX is amended—
(1) by redesignating section 1931 as section 1932; and
(2) by inserting after section 1930 the following new section:
‘‘ASSURING

COVERAGE FOR CERTAIN LOW-INCOME FAMILIES

‘‘SEC. 1931. (a) REFERENCES TO TITLE IV–A ARE REFERENCES
PRE-WELFARE-REFORM PROVISIONS.—Subject to the succeeding
provisions of this section, with respect to a State any reference
in this title (or any other provision of law in relation to the operation
of this title) to a provision of part A of title IV, or a State plan
under such part (or a provision of such a plan), including income
and resource standards and income and resource methodologies
under such part or plan, shall be considered a reference to such
a provision or plan as in effect as of July 16, 1996, with respect
to the State.
‘‘(b) APPLICATION OF PRE-WELFARE-REFORM ELIGIBILITY
CRITERIA.—
‘‘(1) IN GENERAL.—For purposes of this title, subject to
paragraphs (2) and (3), in determining eligibility for medical
assistance—
‘‘(A) an individual shall be treated as receiving aid
or assistance under a State plan approved under part A
of title IV only if the individual meets—

TO

42 USC 1396v.

42 USC 1396u–1.

110 STAT. 2178

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(i) the income and resource standards for determining eligibility under such plan, and
‘‘(ii) the eligibility requirements of such plan under
subsections (a) through (c) of section 406 and section
407(a),
as in effect as of July 16, 1996; and
‘‘(B) the income and resource methodologies under such
plan as of such date shall be used in the determination
of whether any individual meets income and resource
standards under such plan.
‘‘(2) STATE OPTION.—For purposes of applying this section,
a State—
‘‘(A) may lower its income standards applicable with
respect to part A of title IV, but not below the income
standards applicable under its State plan under such part
on May 1, 1988;
‘‘(B) may increase income or resource standards under
the State plan referred to in paragraph (1) over a period
(beginning after July 16, 1996) by a percentage that does
not exceed the percentage increase in the Consumer Price
Index for all urban consumers (all items; United States
city average) over such period; and
‘‘(C) may use income and resource methodologies that
are less restrictive than the methodologies used under the
State plan under such part as of July 16, 1996.
‘‘(3) OPTION TO TERMINATE MEDICAL ASSISTANCE FOR
FAILURE TO MEET WORK REQUIREMENT.—
‘‘(A) INDIVIDUALS RECEIVING CASH ASSISTANCE UNDER
TANF.—In the case of an individual who—
‘‘(i) is receiving cash assistance under a State program funded under part A of title IV,
‘‘(ii) is eligible for medical assistance under this
title on a basis not related to section 1902(l), and
‘‘(iii) has the cash assistance under such program
terminated pursuant to section 407(e)(1)(B) (as in effect
on or after the welfare reform effective date) because
of refusing to work,
the State may terminate such individual’s eligibility for
medical assistance under this title until such time as there
no longer is a basis for the termination of such cash assistance because of such refusal.
‘‘(B) EXCEPTION FOR CHILDREN.—Subparagraph (A)
shall not be construed as permitting a State to terminate
medical assistance for a minor child who is not the head
of a household receiving assistance under a State program
funded under part A of title IV.
‘‘(c) TREATMENT FOR PURPOSES OF TRANSITIONAL COVERAGE
PROVISIONS.—
‘‘(1) TRANSITION IN THE CASE OF CHILD SUPPORT COLLECTIONS.—The provisions of section 406(h) (as in effect on July
16, 1996) shall apply, in relation to this title, with respect
to individuals (and families composed of individuals) who are
described in subsection (b)(1)(A), in the same manner as they
applied before such date with respect to individuals who became
ineligible for aid to families with dependent children as a
result (wholly or partly) of the collection of child or spousal
support under part D of title IV.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2179

‘‘(2) TRANSITION IN THE CASE OF EARNINGS FROM EMPLOYMENT.—For continued medical assistance in the case of individuals (and families composed of individuals) described in subsection (b)(1)(A) who would otherwise become ineligible because
of hours or income from employment, see sections 1925 and
1902(e)(1).
‘‘(d) WAIVERS.—In the case of a waiver of a provision of part
A of title IV in effect with respect to a State as of July 16,
1996, or which is submitted to the Secretary before the date of
the enactment of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 and approved by the Secretary on or
before July 1, 1997, if the waiver affects eligibility of individuals
for medical assistance under this title, such waiver may (but need
not) continue to be applied, at the option of the State, in relation
to this title after the date the waiver would otherwise expire.
‘‘(e) STATE OPTION TO USE 1 APPLICATION FORM.—Nothing
in this section, or part A of title IV, shall be construed as preventing
a State from providing for the same application form for assistance
under a State program funded under part A of title IV (on or
after the welfare reform effective date) and for medical assistance
under this title.
‘‘(f) ADDITIONAL RULES OF CONSTRUCTION.—
‘‘(1) With respect to the reference in section 1902(a)(5)
to a State plan approved under part A of title IV, a State
may treat such reference as a reference either to a State program funded under such part (as in effect on and after the
welfare reform effective date) or to the State plan under this
title.
‘‘(2) Any reference in section 1902(a)(55) to a State plan
approved under part A of title IV shall be deemed a reference
to a State program funded under such part.
‘‘(3) In applying section 1903(f), the applicable income
limitation otherwise determined shall be subject to increase
in the same manner as income or resource standards of a
State may be increased under subsection (b)(2)(B).
‘‘(g) RELATION TO OTHER PROVISIONS.—The provisions of this
section shall apply notwithstanding any other provision of this
Act.
‘‘(h) TRANSITIONAL INCREASED FEDERAL MATCHING RATE FOR
INCREASED ADMINISTRATIVE COSTS.—
‘‘(1) IN GENERAL.—Subject to the succeeding provisions of
this subsection, the Secretary shall provide that with respect
to administrative expenditures described in paragraph (2) the
per centum specified in section 1903(a)(7) shall be increased
to such percentage as the Secretary specifies.
‘‘(2) ADMINISTRATIVE EXPENDITURES DESCRIBED.—The
administrative expenditures described in this paragraph are
expenditures described in section 1903(a)(7) that a State demonstrates to the satisfaction of the Secretary are attributable
to administrative costs of eligibility determinations that (but
for the enactment of this section) would not be incurred.
‘‘(3) LIMITATION.—The total amount of additional Federal
funds that are expended as a result of the application of this
subsection for the period beginning with fiscal year 1997 and
ending with fiscal year 2000 shall not exceed $500,000,000.
In applying this paragraph, the Secretary shall ensure the
equitable distribution of additional funds among the States.

110 STAT. 2180

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(4) TIME LIMITATION.—This subsection shall only apply
with respect to a State for expenditures incurred during the
first 12 calendar quarters in which the State program funded
under part A of title IV (as in effect on and after the welfare
reform effective date) is in effect.
‘‘(i) WELFARE REFORM EFFECTIVE DATE.—In this section, the
term ‘welfare reform effective date’ means the effective date, with
respect to a State, of title I of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (as specified in section
116 of such Act).’’.
(b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C. 1396a(a))
is amended—
(1) by striking ‘‘and’’ at the end of paragraph (61),
(2) by striking the period at the end of paragraph (62)
and inserting ‘‘; and’’, and
(3) by inserting after paragraph (62) the following new
paragraph:
‘‘(63) provide for administration and determinations of eligibility with respect to individuals who are (or seek to be) eligible
for medical assistance based on the application of section 1931.’’.
(c) EXTENSION OF WORK TRANSITION PROVISIONS.—Sections
1902(e)(1)(B) and 1925(f) (42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)) are
each amended by striking ‘‘1998’’ and inserting ‘‘2001’’.
(d) ELIMINATION OF REQUIREMENT OF MINIMUM AFDC PAYMENT
LEVELS.—(1) Section 1902(c) (42 U.S.C. 1396a(c)) is amended by
striking ‘‘if—’’ and all that follows and inserting the following:
‘‘if the State requires individuals described in subsection (l)(1) to
apply for assistance under the State program funded under part
A of title IV as a condition of applying for or receiving medical
assistance under this title.’’.
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by striking
paragraph (9).
42 USC 862a.

SEC. 115. DENIAL OF ASSISTANCE AND BENEFITS FOR CERTAIN DRUGRELATED CONVICTIONS.

(a) IN GENERAL.—An individual convicted (under Federal or
State law) of any offense which is classified as a felony by the
law of the jurisdiction involved and which has as an element the
possession, use, or distribution of a controlled substance (as defined
in section 102(6) of the Controlled Substances Act (21 U.S.C. 802(6)))
shall not be eligible for—
(1) assistance under any State program funded under part
A of title IV of the Social Security Act, or
(2) benefits under the food stamp program (as defined
in section 3(h) of the Food Stamp Act of 1977) or any State
program carried out under the Food Stamp Act of 1977.
(b) EFFECTS ON ASSISTANCE AND BENEFITS FOR OTHERS.—
(1) PROGRAM OF TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES.—The amount of assistance otherwise required to be
provided under a State program funded under part A of title
IV of the Social Security Act to the family members of an
individual to whom subsection (a) applies shall be reduced
by the amount which would have otherwise been made available
to the individual under such part.
(2) BENEFITS UNDER THE FOOD STAMP ACT OF 1977.—The
amount of benefits otherwise required to be provided to a
household under the food stamp program (as defined in section

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2181

3(h) of the Food Stamp Act of 1977), or any State program
carried out under the Food Stamp Act of 1977, shall be determined by considering the individual to whom subsection (a)
applies not to be a member of such household, except that
the income and resources of the individual shall be considered
to be income and resources of the household.
(c) ENFORCEMENT.—A State that has not exercised its authority
under subsection (d)(1)(A) shall require each individual applying
for assistance or benefits referred to in subsection (a), during the
application process, to state, in writing, whether the individual,
or any member of the household of the individual, has been convicted of a crime described in subsection (a).
(d) LIMITATIONS.—
(1) STATE ELECTIONS.—
(A) OPT OUT.—A State may, by specific reference in
a law enacted after the date of the enactment of this
Act, exempt any or all individuals domiciled in the State
from the application of subsection (a).
(B) LIMIT PERIOD OF PROHIBITION.—A State may, by
law enacted after the date of the enactment of this Act,
limit the period for which subsection (a) shall apply to
any or all individuals domiciled in the State.
(2) INAPPLICABILITY TO CONVICTIONS OCCURRING ON OR
BEFORE ENACTMENT.—Subsection (a) shall not apply to convictions occurring on or before the date of the enactment of this
Act.
(e) DEFINITIONS OF STATE.—For purposes of this section, the
term ‘‘State’’ has the meaning given it—
(1) in section 419(5) of the Social Security Act, when referring to assistance provided under a State program funded under
part A of title IV of the Social Security Act, and
(2) in section 3(m) of the Food Stamp Act of 1977, when
referring to the food stamp program (as defined in section
3(h) of the Food Stamp Act of 1977) or any State program
carried out under the Food Stamp Act of 1977.
(f) RULE OF INTERPRETATION.—Nothing in this section shall
be construed to deny the following Federal benefits:
(1) Emergency medical services under title XIX of the Social
Security Act.
(2) Short-term, noncash, in-kind emergency disaster relief.
(3)(A) Public health assistance for immunizations.
(B) Public health assistance for testing and treatment of
communicable diseases if the Secretary of Health and Human
Services determines that it is necessary to prevent the spread
of such disease.
(4) Prenatal care.
(5) Job training programs.
(6) Drug treatment programs.
SEC. 116. EFFECTIVE DATE; TRANSITION RULE.

(a) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as otherwise provided in this title,
this title and the amendments made by this title shall take
effect on July 1, 1997.
(2) DELAYED EFFECTIVE DATE FOR CERTAIN PROVISIONS.—
Notwithstanding any other provision of this section, paragraphs
(2), (3), (4), (5), (8), and (10) of section 409(a) and section

42 USC 601 note.

110 STAT. 2182

PUBLIC LAW 104–193—AUG. 22, 1996

411(a) of the Social Security Act (as added by the amendments
made by section 103(a) of this Act) shall not take effect with
respect to a State until, and shall apply only with respect
to conduct that occurs on or after, the later of—
(A) July 1, 1997; or
(B) the date that is 6 months after the date the Secretary of Health and Human Services receives from the
State a plan described in section 402(a) of the Social Security Act (as added by such amendment).
(3) GRANTS TO OUTLYING AREAS.—The amendments made
by section 103(b) shall take effect on October 1, 1996.
(4) ELIMINATION OF CHILD CARE PROGRAMS.—The amendments made by section 103(c) shall take effect on October
1, 1996.
(5) DEFINITIONS APPLICABLE TO NEW CHILD CARE ENTITLEMENT.—Sections 403(a)(1)(C), 403(a)(1)(D), and 419(4) of the
Social Security Act, as added by the amendments made by
section 103(a) of this Act, shall take effect on October 1, 1996.
(b) TRANSITION RULES.—Effective on the date of the enactment
of this Act:
(1) STATE OPTION TO ACCELERATE EFFECTIVE DATE.—
(A) IN GENERAL.—If the Secretary of Health and
Human Services receives from a State a plan described
in section 402(a) of the Social Security Act (as added
by the amendment made by section 103(a)(1) of this Act),
then—
(i) on and after the date of such receipt—
(I) except as provided in clause (ii), this title
and the amendments made by this title (other
than by section 103(c) of this Act) shall apply
with respect to the State; and
(II) the State shall be considered an eligible
State for purposes of part A of title IV of the
Social Security Act (as in effect pursuant to the
amendments made by such section 103(a)); and
(ii) during the period that begins on the date of
such receipt and ends on June 30, 1997, there shall
remain in effect with respect to the State—
(I) section 403(h) of the Social Security Act
(as in effect on September 30, 1995); and
(II) all State reporting requirements under
parts A and F of title IV of the Social Security
Act (as in effect on September 30, 1995), modified
by the Secretary as appropriate, taking into
account the State program under part A of title
IV of the Social Security Act (as in effect pursuant
to the amendments made by such section 103(a)).
(B) LIMITATIONS ON FEDERAL OBLIGATIONS.—
(i) UNDER AFDC PROGRAM.—The total obligations
of the Federal Government to a State under part A
of title IV of the Social Security Act (as in effect on
September 30, 1995) with respect to expenditures in
fiscal year 1997 shall not exceed an amount equal
to the State family assistance grant.
(ii) UNDER TEMPORARY FAMILY ASSISTANCE PROGRAM.—Notwithstanding section 403(a)(1) of the Social
Security Act (as in effect pursuant to the amendments

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2183

made by section 103(a) of this Act), the total obligations
of the Federal Government to a State under such section 403(a)(1)—
(I) for fiscal year 1996, shall be an amount
equal to—
(aa) the State family assistance grant;
multiplied by
(bb) 1⁄366 of the number of days during
the period that begins on the date the
Secretary of Health and Human Services first
receives from the State a plan described in
section 402(a) of the Social Security Act (as
added by the amendment made by section
103(a)(1) of this Act) and ends on September
30, 1996; and
(II) for fiscal year 1997, shall be an amount
equal to the lesser of—
(aa) the amount (if any) by which the
State family assistance grant exceeds the total
obligations of the Federal Government to the
State under part A of title IV of the Social
Security Act (as in effect on September 30,
1995) with respect to expenditures in fiscal
year 1997; or
(bb) the State family assistance grant,
multiplied by 1⁄365 of the number of days during the period that begins on October 1, 1996,
or the date the Secretary of Health and
Human Services first receives from the State
a plan described in section 402(a) of the Social
Security Act (as added by the amendment
made by section 103(a)(1) of this Act), whichever is later, and ends on September 30, 1997.
(iii) CHILD CARE OBLIGATIONS EXCLUDED IN DETERMINING FEDERAL AFDC OBLIGATIONS.—As used in this
subparagraph, the term ‘‘obligations of the Federal
Government to the State under part A of title IV
of the Social Security Act’’ does not include any obligation of the Federal Government with respect to child
care expenditures by the State.
(C) SUBMISSION OF STATE PLAN FOR FISCAL YEAR 1996
OR 1997 DEEMED ACCEPTANCE OF GRANT LIMITATIONS AND
FORMULA AND TERMINATION OF AFDC ENTITLEMENT.—The

submission of a plan by a State pursuant to subparagraph
(A) is deemed to constitute—
(i) the State’s acceptance of the grant reductions
under subparagraph (B) (including the formula for
computing the amount of the reduction); and
(ii) the termination of any entitlement of any
individual or family to benefits or services under the
State AFDC program.
(D) DEFINITIONS.—As used in this paragraph:
(i) STATE AFDC PROGRAM.—The term ‘‘State AFDC
program’’ means the State program under parts A and
F of title IV of the Social Security Act (as in effect
on September 30, 1995).

110 STAT. 2184

PUBLIC LAW 104–193—AUG. 22, 1996

(ii) STATE.—The term ‘‘State’’ means the 50 States
and the District of Columbia.
(iii) STATE FAMILY ASSISTANCE GRANT.—The term
‘‘State family assistance grant’’ means the State family
assistance grant (as defined in section 403(a)(1)(B) of
the Social Security Act, as added by the amendment
made by section 103(a)(1) of this Act).
(2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The amendments
made by this title shall not apply with respect to—
(A) powers, duties, functions, rights, claims, penalties,
or obligations applicable to aid, assistance, or services
provided before the effective date of this title under the
provisions amended; and
(B) administrative actions and proceedings commenced
before such date, or authorized before such date to be
commenced, under such provisions.
(3) CLOSING OUT ACCOUNT FOR THOSE PROGRAMS TERMINATED OR SUBSTANTIALLY MODIFIED BY THIS TITLE.—In closing
out accounts, Federal and State officials may use scientifically
acceptable statistical sampling techniques. Claims made with
respect to State expenditures under a State plan approved
under part A of title IV of the Social Security Act (as in
effect on September 30, 1995) with respect to assistance or
services provided on or before September 30, 1995, shall be
treated as claims with respect to expenditures during fiscal
year 1995 for purposes of reimbursement even if payment was
made by a State on or after October 1, 1995. Each State
shall complete the filing of all claims under the State plan
(as so in effect) within 2 years after the date of the enactment
of this Act. The head of each Federal department shall—
(A) use the single audit procedure to review and resolve
any claims in connection with the close out of programs
under such State plans; and
(B) reimburse States for any payments made for assistance or services provided during a prior fiscal year from
funds for fiscal year 1995, rather than from funds authorized by this title.
(4) CONTINUANCE IN OFFICE OF ASSISTANT SECRETARY FOR
FAMILY SUPPORT.—The individual who, on the day before the
effective date of this title, is serving as Assistant Secretary
for Family Support within the Department of Health and
Human Services shall, until a successor is appointed to such
position—
(A) continue to serve in such position; and
(B) except as otherwise provided by law—
(i) continue to perform the functions of the Assistant Secretary for Family Support under section 417
of the Social Security Act (as in effect before such
effective date); and
(ii) have the powers and duties of the Assistant
Secretary for Family Support under section 416 of
the Social Security Act (as in effect pursuant to the
amendment made by section 103(a)(1) of this Act).
(c) TERMINATION OF ENTITLEMENT UNDER AFDC PROGRAM.—
Effective October 1, 1996, no individual or family shall be entitled
to any benefits or services under any State plan approved under

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2185

part A or F of title IV of the Social Security Act (as in effect
on September 30, 1995).

TITLE II—SUPPLEMENTAL SECURITY
INCOME
SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.

Except as otherwise specifically provided, wherever in this title
an amendment is expressed in terms of an amendment to or repeal
of a section or other provision, the reference shall be considered
to be made to that section or other provision of the Social Security
Act.

Subtitle A—Eligibility Restrictions
SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS
FOUND TO HAVE FRAUDULENTLY MISREPRESENTED
RESIDENCE IN ORDER TO OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR MORE STATES.

(a) IN GENERAL.—Section 1611(e) (42 U.S.C. 1382(e)), as
amended by section 105(b)(4)(A) of the Contract with America
Advancement Act of 1996, is amended by redesignating paragraph
(5) as paragraph (3) and by adding at the end the following new
paragraph:
‘‘(4)(A) No person shall be considered an eligible individual
or eligible spouse for purposes of this title during the 10-year
period that begins on the date the person is convicted in Federal
or State court of having made a fraudulent statement or representation with respect to the place of residence of the person in order
to receive assistance simultaneously from 2 or more States under
programs that are funded under title IV, title XIX, or the Food
Stamp Act of 1977, or benefits in 2 or more States under the
supplemental security income program under this title.
‘‘(B) As soon as practicable after the conviction of a person
in a Federal or State court as described in subparagraph (A),
an official of such court shall notify the Commissioner of such
conviction.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBATION AND PAROLE VIOLATORS.

(a) IN GENERAL.—Section 1611(e) (42 U.S.C. 1382(e)), as
amended by section 201(a) of this Act, is amended by adding at
the end the following new paragraph:
‘‘(5) No person shall be considered an eligible individual or
eligible spouse for purposes of this title with respect to any month
if during such month the person is—
‘‘(A) fleeing to avoid prosecution, or custody or confinement
after conviction, under the laws of the place from which the
person flees, for a crime, or an attempt to commit a crime,
which is a felony under the laws of the place from which
the person flees, or which, in the case of the State of
New Jersey, is a high misdemeanor under the laws of such
State; or

42 USC 1382
note.

110 STAT. 2186

42 USC 1382
note.

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(B) violating a condition of probation or parole imposed
under Federal or State law.’’.
(b) EXCHANGE OF INFORMATION.—Section 1611(e) (42 U.S.C.
1382(e)), as amended by section 201(a) of this Act and subsection
(a) of this section, is amended by adding at the end the following
new paragraph:
‘‘(6) Notwithstanding any other provision of law (other than
section 6103 of the Internal Revenue Code of 1986), the Commissioner shall furnish any Federal, State, or local law enforcement
officer, upon the written request of the officer, with the current
address, Social Security number, and photograph (if applicable)
of any recipient of benefits under this title, if the officer furnishes
the Commissioner with the name of the recipient, and other
identifying information as reasonably required by the Commissioner
to establish the unique identity of the recipient, and notifies the
Commissioner that—
‘‘(A) the recipient—
‘‘(i) is described in subparagraph (A) or (B) of paragraph (5); and
‘‘(ii) has information that is necessary for the officer
to conduct the officer’s official duties; and
‘‘(B) the location or apprehension of the recipient is within
the officer’s official duties.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 203. TREATMENT OF PRISONERS.

Contracts.

(a) IMPLEMENTATION OF PROHIBITION AGAINST PAYMENT OF
BENEFITS TO PRISONERS.—
(1) IN GENERAL.—Section 1611(e)(1) (42 U.S.C. 1382(e)(1))
is amended by adding at the end the following new subparagraph:
‘‘(I)(i) The Commissioner shall enter into an agreement, with
any interested State or local institution described in clause (i)
or (ii) of section 202(x)(1)(A) the primary purpose of which is to
confine individuals as described in section 202(x)(1)(A), under
which—
‘‘(I) the institution shall provide to the Commissioner, on
a monthly basis and in a manner specified by the Commissioner, the names, social security account numbers, dates
of birth, confinement commencement dates, and, to the extent
available to the institution, such other identifying information
concerning the inmates of the institution as the Commissioner
may require for the purpose of carrying out paragraph (1);
and
‘‘(II) the Commissioner shall pay to any such institution,
with respect to each inmate of the institution who is eligible
for a benefit under this title for the month preceding the
first month throughout which such inmate is in such institution
and becomes ineligible for such benefit as a result of the application of this subparagraph, $400 if the institution furnishes
the information described in subclause (I) to the Commissioner
within 30 days after the date such individual becomes an
inmate of such institution, or $200 if the institution furnishes
such information after 30 days after such date but within
90 days after such date.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2187

‘‘(ii)(I) The provisions of section 552a of title 5, United States
Code, shall not apply to any agreement entered into under clause
(i) or to information exchanged pursuant to such agreement.
‘‘(II) The Commissioner is authorized to provide, on a reimbursable basis, information obtained pursuant to agreements entered
into under clause (i) to any Federal or federally-assisted cash,
food, or medical assistance program for eligibility purposes.
‘‘(iii) Payments to institutions required by clause (i)(II) shall
be made from funds otherwise available for the payment of benefits
under this title and shall be treated as direct spending for purposes
of the Balanced Budget and Emergency Deficit Control Act of 1985.’’.
(2) EFFECTIVE DATE.—The amendment made by this subsection shall apply to individuals whose period of confinement
in an institution commences on or after the first day of the
seventh month beginning after the month in which this Act
is enacted.
(b) STUDY OF OTHER POTENTIAL IMPROVEMENTS IN THE COLLECTION OF INFORMATION RESPECTING PUBLIC INMATES.—
(1) STUDY.—The Commissioner of Social Security shall conduct a study of the desirability, feasibility, and cost of—
(A) establishing a system under which Federal, State,
and local courts would furnish to the Commissioner such
information respecting court orders by which individuals
are confined in jails, prisons, or other public penal, correctional, or medical facilities as the Commissioner may
require for the purpose of carrying out section 1611(e)(1)
of the Social Security Act; and
(B) requiring that State and local jails, prisons, and
other institutions that enter into agreements with the
Commissioner under section 1611(e)(1)(I) of the Social Security Act furnish the information required by such agreements to the Commissioner by means of an electronic or
other sophisticated data exchange system.
(2) REPORT.—Not later than 1 year after the date of the
enactment of this Act, the Commissioner of Social Security
shall submit a report on the results of the study conducted
pursuant to this subsection to the Committee on Finance of
the Senate and the Committee on Ways and Means of the
House of Representatives.
(c) ADDITIONAL REPORT TO CONGRESS.—Not later than October
1, 1998, the Commissioner of Social Security shall provide to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a list of the institutions
that are and are not providing information to the Commissioner
under section 1611(e)(1)(I) of the Social Security Act (as added
by this section).
SEC. 204. EFFECTIVE DATE OF APPLICATION FOR BENEFITS.

(a) IN GENERAL.—Subparagraphs (A) and (B) of section
1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended to read as follows:
‘‘(A) the first day of the month following the date such
application is filed, or
‘‘(B) the first day of the month following the date such
individual becomes eligible for such benefits with respect to
such application.’’.

42 USC 1382
note.

42 USC 1382
note.

42 USC 1382
note.

110 STAT. 2188

PUBLIC LAW 104–193—AUG. 22, 1996

(b) SPECIAL
MENTS.—Section

42 USC 1383.

42 USC 1382
note.

RULE RELATING TO EMERGENCY ADVANCE PAY1631(a)(4)(A) (42 U.S.C. 1383(a)(4)(A)) is

amended—
(1) by inserting ‘‘for the month following the date the
application is filed’’ after ‘‘is presumptively eligible for such
benefits’’; and
(2) by inserting ‘‘, which shall be repaid through proportionate reductions in such benefits over a period of not more
than 6 months’’ before the semicolon.
(c) CONFORMING AMENDMENTS.—
(1) Section 1614(b) (42 U.S.C. 1382c(b)) is amended—
(A) by striking ‘‘or requests’’ and inserting ‘‘, on the
first day of the month following the date the application
is filed, or, in any case in which either spouse requests’’;
and
(B) by striking ‘‘application or’’.
(2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is amended
by inserting ‘‘following the month’’ after ‘‘beginning with the
month’’.
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
shall apply to applications for benefits under title XVI of the
Social Security Act filed on or after the date of the enactment
of this Act, without regard to whether regulations have been
issued to implement such amendments.
(2) BENEFITS UNDER TITLE XVI.—For purposes of this subsection, the term ‘‘benefits under title XVI of the Social Security
Act’’ includes supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the
Social Security Act, and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93–66.

Subtitle B—Benefits for Disabled Children
SEC. 211. DEFINITION AND ELIGIBILITY RULES.

(a) DEFINITION OF CHILDHOOD DISABILITY.—Section 1614(a)(3)
(42 U.S.C. 1382c(a)(3)), as amended by section 105(b)(1) of the
Contract with America Advancement Act of 1996, is amended—
(1) in subparagraph (A), by striking ‘‘An individual’’ and
inserting ‘‘Except as provided in subparagraph (C), an individual’’;
(2) in subparagraph (A), by striking ‘‘(or, in the case of
an individual under the age of 18, if he suffers from any
medically determinable physical or mental impairment of comparable severity)’’;
(3) by redesignating subparagraphs (C) through (I) as subparagraphs (D) through (J), respectively;
(4) by inserting after subparagraph (B) the following new
subparagraph:
‘‘(C)(i) An individual under the age of 18 shall be considered
disabled for the purposes of this title if that individual has a
medically determinable physical or mental impairment, which
results in marked and severe functional limitations, and which
can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than 12
months.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2189

‘‘(ii) Notwithstanding clause (i), no individual under the age
of 18 who engages in substantial gainful activity (determined in
accordance with regulations prescribed pursuant to subparagraph
(E)) may be considered to be disabled.’’; and
(5) in subparagraph (F), as redesignated by paragraph (3),
by striking ‘‘(D)’’ and inserting ‘‘(E)’’.
(b) CHANGES TO CHILDHOOD SSI REGULATIONS.—
(1) MODIFICATION TO MEDICAL CRITERIA FOR EVALUATION
OF MENTAL AND EMOTIONAL DISORDERS.—The Commissioner of
Social Security shall modify sections 112.00C.2. and
112.02B.2.c.(2) of appendix 1 to subpart P of part 404 of title
20, Code of Federal Regulations, to eliminate references to
maladaptive behavior in the domain of personal/behavorial
function.
(2) DISCONTINUANCE OF INDIVIDUALIZED FUNCTIONAL
ASSESSMENT.—The Commissioner of Social Security shall discontinue the individualized functional assessment for children
set forth in sections 416.924d and 416.924e of title 20, Code
of Federal Regulations.
(c) MEDICAL IMPROVEMENT REVIEW STANDARD AS IT APPLIES
TO INDIVIDUALS UNDER THE AGE OF 18.—Section 1614(a)(4) (42
U.S.C. 1382(a)(4)) is amended—
(1) by redesignating subclauses (I) and (II) of clauses (i)
and (ii) of subparagraph (B) as items (aa) and (bb), respectively;
(2) by redesignating clauses (i) and (ii) of subparagraphs
(A) and (B) as subclauses (I) and (II), respectively;
(3) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively;
(4) by inserting before clause (i) (as redesignated by paragraph (3)) the following new subparagraph:
‘‘(A) in the case of an individual who is age 18 or
older—’’;
(5) by inserting after and below subparagraph (A)(iii) (as
so redesignated) the following new subparagraph:
‘‘(B) in the case of an individual who is under the age
of 18—
‘‘(i) substantial evidence which demonstrates that
there has been medical improvement in the individual’s
impairment or combination of impairments, and that such
impairment or combination of impairments no longer
results in marked and severe functional limitations; or
‘‘(ii) substantial evidence which demonstrates that, as
determined on the basis of new or improved diagnostic
techniques or evaluations, the individual’s impairment or
combination of impairments, is not as disabling as it was
considered to be at the time of the most recent prior decision that the individual was under a disability or continued
to be under a disability, and such impairment or combination of impairments does not result in marked and severe
functional limitations; or’’;
(6) by redesignating subparagraph (D) as subparagraph
(C) and by inserting in such subparagraph ‘‘in the case of
any individual,’’ before ‘‘substantial evidence’’; and
(7) in the first sentence following subparagraph (C) (as
redesignated by paragraph (6)), by—
(A) inserting ‘‘(i)’’ before ‘‘to restore’’; and

42 USC 1382c.

110 STAT. 2190

42 USC 1382c
note.

PUBLIC LAW 104–193—AUG. 22, 1996
(B) inserting ‘‘, or (ii) in the case of an individual
under the age of 18, to eliminate or improve the individual’s
impairment or combination of impairments so that it no
longer results in marked and severe functional limitations’’
immediately before the period.
(d) EFFECTIVE DATES, ETC.—
(1) EFFECTIVE DATES.—
(A) SUBSECTIONS (a) AND (b).—
(i) IN GENERAL.—The provisions of, and amendments made by, subsections (a) and (b) of this section
shall apply to any individual who applies for, or whose
claim is finally adjudicated with respect to, benefits
under title XVI of the Social Security Act on or after
the date of the enactment of this Act, without regard
to whether regulations have been issued to implement
such provisions and amendments.
(ii) DETERMINATION OF FINAL ADJUDICATION.—For
purposes of clause (i), no individual’s claim with respect
to such benefits may be considered to be finally adjudicated before such date of enactment if, on or after
such date, there is pending a request for either
administrative or judicial review with respect to such
claim that has been denied in whole, or there is pending, with respect to such claim, readjudication by the
Commissioner of Social Security pursuant to relief in
a class action or implementation by the Commissioner
of a court remand order.
(B) SUBSECTION (c).—The amendments made by subsection (c) of this section shall apply with respect to benefits
under title XVI of the Social Security Act for months beginning on or after the date of the enactment of this Act,
without regard to whether regulations have been issued
to implement such amendments.
(2) APPLICATION TO CURRENT RECIPIENTS.—
(A) ELIGIBILITY REDETERMINATIONS.—During the
period beginning on the date of the enactment of this
Act and ending on the date which is 1 year after such
date of enactment, the Commissioner of Social Security
shall redetermine the eligibility of any individual under
age 18 who is eligible for supplemental security income
benefits by reason of disability under title XVI of the Social
Security Act as of the date of the enactment of this Act
and whose eligibility for such benefits may terminate by
reason of the provisions of, or amendments made by, subsections (a) and (b) of this section. With respect to any
redetermination under this subparagraph—
(i) section 1614(a)(4) of the Social Security Act
(42 U.S.C. 1382c(a)(4)) shall not apply;
(ii) the Commissioner of Social Security shall apply
the eligibility criteria for new applicants for benefits
under title XVI of such Act;
(iii) the Commissioner shall give such redetermination priority over all continuing eligibility reviews and
other reviews under such title; and
(iv) such redetermination shall be counted as a
review or redetermination otherwise required to be
made under section 208 of the Social Security

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2191

Independence and Program Improvements Act of 1994
or any other provision of title XVI of the Social Security
Act.
(B) GRANDFATHER PROVISION.—The provisions of, and
amendments made by, subsections (a) and (b) of this section, and the redetermination under subparagraph (A),
shall only apply with respect to the benefits of an individual
described in subparagraph (A) for months beginning on
or after the later of July 1, 1997, or the date of the redetermination with respect to such individual.
(C) NOTICE.—Not later than January 1, 1997, the
Commissioner of Social Security shall notify an individual
described in subparagraph (A) of the provisions of this
paragraph.
(3) REPORT.—The Commissioner of Social Security shall
report to the Congress regarding the progress made in
implementing the provisions of, and amendments made by,
this section on child disability evaluations not later than 180
days after the date of the enactment of this Act.
(4) REGULATIONS.—Notwithstanding any other provision of
law, the Commissioner of Social Security shall submit for review
to the committees of jurisdiction in the Congress any final
regulation pertaining to the eligibility of individuals under
age 18 for benefits under title XVI of the Social Security Act
at least 45 days before the effective date of such regulation.
The submission under this paragraph shall include supporting
documentation providing a cost analysis, workload impact, and
projections as to how the regulation will effect the future number of recipients under such title.
(5) CAP ADJUSTMENT FOR SSI ADMINISTRATIVE WORK
REQUIRED BY WELFARE REFORM.—
(A) AUTHORIZATION.—For the additional costs of
continuing disability reviews and redeterminations under
title XVI of the Social Security Act, there is hereby authorized to be appropriated to the Social Security Administration, in addition to amounts authorized under section
201(g)(1)(A) of the Social Security Act, $150,000,000 in
fiscal year 1997 and $100,000,000 in fiscal year 1998.
(B) CAP ADJUSTMENT.—Section 251(b)(2)(H) of the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended by section 103(b) of the Contract with America
Advancement Act of 1996, is amended—
(i) in clause (i)—
(I) in subclause (II) by—
(aa) striking ‘‘$25,000,000’’ and inserting
‘‘$175,000,000’’; and
(bb) striking ‘‘$160,000,000’’ and inserting
‘‘$310,000,000’’; and
(II) in subclause (III) by—
(aa) striking ‘‘$145,000,000’’ and inserting
‘‘$245,000,000’’; and
(bb) striking ‘‘$370,000,000’’ and inserting
‘‘$470,000,000’’; and
(ii) by amending clause (ii)(I) to read as follows:
‘‘(I) the term ‘continuing disability reviews’ means
reviews or redeterminations as defined under section
201(g)(1)(A) of the Social Security Act and reviews

2 USC 901.

110 STAT. 2192

PUBLIC LAW 104–193—AUG. 22, 1996
and redeterminations authorized under section 211 of
the Personal Responsibility and Work Opportunity Reconciliation Act of 1996;’’.
(C) ADJUSTMENTS.—Section 606(e)(1)(B) of the
Congressional Budget Act of 1974 is amended by adding
at the end the following new sentences: ‘‘If the adjustments
referred to in the preceding sentence are made for an
appropriations measure that is not enacted into law, then
the Chairman of the Committee on the Budget of the
House of Representatives shall, as soon as practicable,
reverse those adjustments. The Chairman of the Committee
on the Budget of the House of Representatives shall submit
any adjustments made under this subparagraph to the
House of Representatives and have such adjustments published in the Congressional Record.’’.
(D) CONFORMING AMENDMENT.—Section 103(d)(1) of the
Contract with America Advancement Act of 1996 (42 U.S.C.
401 note) is amended by striking ‘‘medicaid programs.’’
and inserting ‘‘medicaid programs, except that the amounts
appropriated pursuant to the authorization and discretionary spending allowance provisions in section
211(d)(2)(5) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 shall be used only for
continuing disability reviews and redeterminations under
title XVI of the Social Security Act.’’.
(6) BENEFITS UNDER TITLE XVI.—For purposes of this subsection, the term ‘‘benefits under title XVI of the Social Security
Act’’ includes supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the
Social Security Act, and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93–66.

2 USC 665e.

Ante, p. 850.

SEC.

212.

ELIGIBILITY REDETERMINATIONS
DISABILITY REVIEWS.

AND

CONTINUING

(a) CONTINUING DISABILITY REVIEWS RELATING TO CERTAIN
CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as
redesignated by section 211(a)(3) of this Act, is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and
(2) by adding at the end the following new clause:
‘‘(ii)(I) Not less frequently than once every 3 years, the Commissioner shall review in accordance with paragraph (4) the continued
eligibility for benefits under this title of each individual who has
not attained 18 years of age and is eligible for such benefits by
reason of an impairment (or combination of impairments) which
is likely to improve (or, at the option of the Commissioner,
which is unlikely to improve).
‘‘(II) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of review,
evidence demonstrating that the recipient is, and has been, receiving treatment, to the extent considered medically necessary and
available, of the condition which was the basis for providing benefits
under this title.
‘‘(III) If the representative payee refuses to comply without
good cause with the requirements of subclause (II), the Commissioner of Social Security shall, if the Commissioner determines
it is in the best interest of the individual, promptly suspend payment of benefits to the representative payee, and provide for pay-

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2193

ment of benefits to an alternative representative payee of the
individual or, if the interest of the individual under this title would
be served thereby, to the individual.
‘‘(IV) Subclause (II) shall not apply to the representative payee
of any individual with respect to whom the Commissioner determines such application would be inappropriate or unnecessary.
In making such determination, the Commissioner shall take into
consideration the nature of the individual’s impairment (or combination of impairments). Section 1631(c) shall not apply to a finding
by the Commissioner that the requirements of subclause (II) should
not apply to an individual’s representative payee.’’.
(b) DISABILITY ELIGIBILITY REDETERMINATIONS REQUIRED FOR
SSI RECIPIENTS WHO ATTAIN 18 YEARS OF AGE.—
(1) IN GENERAL.—Section 1614(a)(3)(H) (42 U.S.C.
1382c(a)(3)(H)), as amended by subsection (a) of this section,
is amended by adding at the end the following new clause:
‘‘(iii) If an individual is eligible for benefits under this title
by reason of disability for the month preceding the month in which
the individual attains the age of 18 years, the Commissioner shall
redetermine such eligibility—
‘‘(I) during the 1-year period beginning on the individual’s
18th birthday; and
‘‘(II) by applying the criteria used in determining the initial
eligibility for applicants who are age 18 or older.
With respect to a redetermination under this clause, paragraph
(4) shall not apply and such redetermination shall be considered
a substitute for a review or redetermination otherwise required
under any other provision of this subparagraph during that 1year period.’’.
(2) CONFORMING REPEAL.—Section 207 of the Social Security Independence and Program Improvements Act of 1994 (42
U.S.C. 1382 note; 108 Stat. 1516) is hereby repealed.
(c) CONTINUING DISABILITY REVIEW REQUIRED FOR LOW BIRTH
WEIGHT BABIES.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)),
as amended by subsections (a) and (b) of this section, is amended
by adding at the end the following new clause:
‘‘(iv)(I) Not later than 12 months after the birth of an individual,
the Commissioner shall review in accordance with paragraph (4)
the continuing eligibility for benefits under this title by reason
of disability of such individual whose low birth weight is a contributing factor material to the Commissioner’s determination that the
individual is disabled.
‘‘(II) A review under subclause (I) shall be considered a substitute for a review otherwise required under any other provision
of this subparagraph during that 12-month period.
‘‘(III) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of review,
evidence demonstrating that the recipient is, and has been, receiving treatment, to the extent considered medically necessary and
available, of the condition which was the basis for providing benefits
under this title.
‘‘(IV) If the representative payee refuses to comply without
good cause with the requirements of subclause (III), the Commissioner of Social Security shall, if the Commissioner determines
it is in the best interest of the individual, promptly suspend payment of benefits to the representative payee, and provide for
payment of benefits to an alternative representative payee of the

110 STAT. 2194

42 USC 1382c
note.

PUBLIC LAW 104–193—AUG. 22, 1996

individual or, if the interest of the individual under this title would
be served thereby, to the individual.
‘‘(V) Subclause (III) shall not apply to the representative payee
of any individual with respect to whom the Commissioner determines such application would be inappropriate or unnecessary.
In making such determination, the Commissioner shall take into
consideration the nature of the individual’s impairment (or combination of impairments). Section 1631(c) shall not apply to a finding
by the Commissioner that the requirements of subclause (III) should
not apply to an individual’s representative payee.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to benefits for months beginning on or after the date
of the enactment of this Act, without regard to whether regulations
have been issued to implement such amendments.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

(a) REQUIREMENT TO ESTABLISH ACCOUNT.—Section 1631(a)(2)
(42 U.S.C. 1383(a)(2)) is amended—
(1) by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively; and
(2) by inserting after subparagraph (E) the following new
subparagraph:
‘‘(F)(i)(I) Each representative payee of an eligible individual
under the age of 18 who is eligible for the payment of benefits
described in subclause (II) shall establish on behalf of such individual an account in a financial institution into which such benefits
shall be paid, and shall thereafter maintain such account for use
in accordance with clause (ii).
‘‘(II) Benefits described in this subclause are past-due monthly
benefits under this title (which, for purposes of this subclause,
include State supplementary payments made by the Commissioner
pursuant to an agreement under section 1616 or section 212(b)
of Public Law 93–66) in an amount (after any withholding by
the Commissioner for reimbursement to a State for interim assistance under subsection (g)) that exceeds the product of—
‘‘(aa) 6, and
‘‘(bb) the maximum monthly benefit payable under this
title to an eligible individual.
‘‘(ii)(I) A representative payee shall use funds in the account
established under clause (i) to pay for allowable expenses described
in subclause (II).
‘‘(II) An allowable expense described in this subclause is an
expense for—
‘‘(aa) education or job skills training;
‘‘(bb) personal needs assistance;
‘‘(cc) special equipment;
‘‘(dd) housing modification;
‘‘(ee) medical treatment;
‘‘(ff) therapy or rehabilitation; or
‘‘(gg) any other item or service that the Commissioner
determines to be appropriate;
provided that such expense benefits such individual and, in the
case of an expense described in item (bb), (cc), (dd), (ff), or (gg),
is related to the impairment (or combination of impairments) of
such individual.
‘‘(III) The use of funds from an account established under
clause (i) in any manner not authorized by this clause—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2195

‘‘(aa) by a representative payee shall be considered a
misapplication of benefits for all purposes of this paragraph,
and any representative payee who knowingly misapplies benefits from such an account shall be liable to the Commissioner
in an amount equal to the total amount of such benefits; and
‘‘(bb) by an eligible individual who is his or her own payee
shall be considered a misapplication of benefits for all purposes
of this paragraph and the total amount of such benefits so
used shall be considered to be the uncompensated value of
a disposed resource and shall be subject to the provisions of
section 1613(c).
‘‘(IV) This clause shall continue to apply to funds in the account
after the child has reached age 18, regardless of whether benefits
are paid directly to the beneficiary or through a representative
payee.
‘‘(iii) The representative payee may deposit into the account
established pursuant to clause (i)—
‘‘(I) past-due benefits payable to the eligible individual
in an amount less than that specified in clause (i)(II), and
‘‘(II) any other funds representing an underpayment under
this title to such individual, provided that the amount of such
underpayment is equal to or exceeds the maximum monthly
benefit payable under this title to an eligible individual.
‘‘(iv) The Commissioner of Social Security shall establish a
system for accountability monitoring whereby such representative
payee shall report, at such time and in such manner as the Commissioner shall require, on activity respecting funds in the account
established pursuant to clause (i).’’.
(b) EXCLUSION FROM RESOURCES.—Section 1613(a) (42 U.S.C.
1382b(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (10);
(2) by striking the period at the end of paragraph (11)
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (11) the following new
paragraph:
‘‘(12) any account, including accrued interest or other earnings thereon, established and maintained in accordance with
section 1631(a)(2)(F).’’.
(c) EXCLUSION FROM INCOME.—Section 1612(b) (42 U.S.C.
1382a(b)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (19);
(2) by striking the period at the end of paragraph (20)
and inserting ‘‘; and’’; and
(3) by adding at the end the following new paragraph:
‘‘(21) the interest or other earnings on any account established and maintained in accordance with section
1631(a)(2)(F).’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to payments made after the date of the enactment
of this Act.
SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITUTIONALIZED INDIVIDUALS WHOSE MEDICAL COSTS ARE
COVERED BY PRIVATE INSURANCE.

(a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B))
is amended by inserting ‘‘or, in the case of an eligible individual
who is a child under the age of 18, receiving payments (with

42 USC 1382a
note.

110 STAT. 2196

PUBLIC LAW 104–193—AUG. 22, 1996

42 USC 1382
note.

respect to such individual) under any health insurance policy issued
by a private provider of such insurance’’ after ‘‘section
1614(f)(2)(B),’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to benefits for months beginning 90 or more days
after the date of the enactment of this Act, without regard to
whether regulations have been issued to implement such amendments.

42 USC 1382
note.

SEC. 215. REGULATIONS.

Within 3 months after the date of the enactment of this Act,
the Commissioner of Social Security shall prescribe such regulations
as may be necessary to implement the amendments made by this
subtitle.

Subtitle C—Additional Enforcement
Provision
SEC. 221. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLEMENTAL SECURITY INCOME BENEFITS.

(a) IN GENERAL.—Section 1631(a) (42 U.S.C. 1383) is amended
by adding at the end the following new paragraph:
‘‘(10)(A) If an individual is eligible for past-due monthly benefits
under this title in an amount that (after any withholding for
reimbursement to a State for interim assistance under subsection
(g)) equals or exceeds the product of—
‘‘(i) 12, and
‘‘(ii) the maximum monthly benefit payable under this title
to an eligible individual (or, if appropriate, to an eligible individual and eligible spouse),
then the payment of such past-due benefits (after any such
reimbursement to a State) shall be made in installments as provided
in subparagraph (B).
‘‘(B)(i) The payment of past-due benefits subject to this subparagraph shall be made in not to exceed 3 installments that are
made at 6-month intervals.
‘‘(ii) Except as provided in clause (iii), the amount of each
of the first and second installments may not exceed an amount
equal to the product of clauses (i) and (ii) of subparagraph (A).
‘‘(iii) In the case of an individual who has—
‘‘(I) outstanding debt attributable to—
‘‘(aa) food,
‘‘(bb) clothing,
‘‘(cc) shelter, or
‘‘(dd) medically necessary services, supplies or equipment, or medicine; or
‘‘(II) current expenses or expenses anticipated in the near
term attributable to—
‘‘(aa) medically necessary services, supplies or equipment, or medicine, or
‘‘(bb) the purchase of a home, and
such debt or expenses are not subject to reimbursement by a public
assistance program, the Secretary under title XVIII, a State plan
approved under title XIX, or any private entity legally liable to
provide payment pursuant to an insurance policy, pre-paid plan,
or other arrangement, the limitation specified in clause (ii) may

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2197

be exceeded by an amount equal to the total of such debt and
expenses.
‘‘(C) This paragraph shall not apply to any individual who,
at the time of the Commissioner’s determination that such individual is eligible for the payment of past-due monthly benefits under
this title—
‘‘(i) is afflicted with a medically determinable impairment
that is expected to result in death within 12 months; or
‘‘(ii) is ineligible for benefits under this title and the
Commissioner determines that such individual is likely to
remain ineligible for the next 12 months.
‘‘(D) For purposes of this paragraph, the term ‘benefits under
this title’ includes supplementary payments pursuant to an agreement for Federal administration under section 1616(a), and payments pursuant to an agreement entered into under section 212(b)
of Public Law 93–66.’’.
(b) CONFORMING AMENDMENT.—Section 1631(a)(1) (42 U.S.C.
1383(a)(1)) is amended by inserting ‘‘(subject to paragraph (10))’’
immediately before ‘‘in such installments’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
are effective with respect to past-due benefits payable under
title XVI of the Social Security Act after the third month
following the month in which this Act is enacted.
(2) BENEFITS PAYABLE UNDER TITLE XVI.—For purposes of
this subsection, the term ‘‘benefits payable under title XVI
of the Social Security Act’’ includes supplementary payments
pursuant to an agreement for Federal administration under
section 1616(a) of the Social Security Act, and payments pursuant to an agreement entered into under section 212(b) of Public
Law 93–66.
SEC. 222. REGULATIONS.

Within 3 months after the date of the enactment of this Act,
the Commissioner of Social Security shall prescribe such regulations
as may be necessary to implement the amendments made by this
subtitle.

42 USC 1383
note.

42 USC 1383
note.

Subtitle D—Studies Regarding
Supplemental Security Income Program
SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY
INCOME PROGRAM.

Title XVI (42 U.S.C. 1381 et seq.), as amended by section
105(b)(3) of the Contract with America Advancement Act of 1996,
is amended by adding at the end the following new section:
‘‘ANNUAL

REPORT ON PROGRAM

‘‘SEC. 1637. (a) Not later than May 30 of each year, the Commissioner of Social Security shall prepare and deliver a report annually
to the President and the Congress regarding the program under
this title, including—
‘‘(1) a comprehensive description of the program;
‘‘(2) historical and current data on allowances and denials,
including number of applications and allowance rates for initial

42 USC 1383f.

110 STAT. 2198

PUBLIC LAW 104–193—AUG. 22, 1996

determinations, reconsideration determinations, administrative
law judge hearings, appeals council reviews, and Federal court
decisions;
‘‘(3) historical and current data on characteristics of recipients and program costs, by recipient group (aged, blind, disabled
adults, and disabled children);
‘‘(4) historical and current data on prior enrollment by
recipients in public benefit programs, including State programs
funded under part A of title IV of the Social Security Act
and State general assistance programs;
‘‘(5) projections of future number of recipients and program
costs, through at least 25 years;
‘‘(6) number of redeterminations and continuing disability reviews, and the outcomes of such redeterminations
and reviews;
‘‘(7) data on the utilization of work incentives;
‘‘(8) detailed information on administrative and other program operation costs;
‘‘(9) summaries of relevant research undertaken by the
Social Security Administration, or by other researchers;
‘‘(10) State supplementation program operations;
‘‘(11) a historical summary of statutory changes to this
title; and
‘‘(12) such other information as the Commissioner deems
useful.
‘‘(b) Each member of the Social Security Advisory Board shall
be permitted to provide an individual report, or a joint report
if agreed, of views of the program under this title, to be included
in the annual report required under this section.’’.
42 USC 1382
note.

SEC. 232. STUDY BY GENERAL ACCOUNTING OFFICE.

Not later than January 1, 1999, the Comptroller General of
the United States shall study and report on—
(1) the impact of the amendments made by, and the provisions of, this title on the supplemental security income program
under title XVI of the Social Security Act; and
(2) extra expenses incurred by families of children receiving
benefits under such title that are not covered by other Federal,
State, or local programs.

TITLE III—CHILD SUPPORT
SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.

Except as otherwise specifically provided, wherever in this
title an amendment is expressed in terms of an amendment to
or repeal of a section or other provision, the reference shall be
considered to be made to that section or other provision of the
Social Security Act.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2199

Subtitle A—Eligibility for Services;
Distribution of Payments
SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT SERVICES.

(a) STATE PLAN REQUIREMENTS.—Section 454 (42 U.S.C. 654)
is amended—
(1) by striking paragraph (4) and inserting the following
new paragraph:
‘‘(4) provide that the State will—
‘‘(A) provide services relating to the establishment of
paternity or the establishment, modification, or enforcement of child support obligations, as appropriate, under
the plan with respect to—
‘‘(i) each child for whom (I) assistance is provided
under the State program funded under part A of this
title, (II) benefits or services for foster care maintenance are provided under the State program funded
under part E of this title, or (III) medical assistance
is provided under the State plan approved under title
XIX, unless, in accordance with paragraph (29), good
cause or other exceptions exist;
‘‘(ii) any other child, if an individual applies for
such services with respect to the child; and
‘‘(B) enforce any support obligation established with
respect to—
‘‘(i) a child with respect to whom the State provides
services under the plan; or
‘‘(ii) the custodial parent of such a child;’’; and
(2) in paragraph (6)—
(A) by striking ‘‘provide that’’ and inserting ‘‘provide
that—’’;
(B) by striking subparagraph (A) and inserting the
following new subparagraph:
‘‘(A) services under the plan shall be made available
to residents of other States on the same terms as to residents of the State submitting the plan;’’;
(C) in subparagraph (B), by inserting ‘‘on individuals
not receiving assistance under any State program funded
under part A’’ after ‘‘such services shall be imposed’’;
(D) in each of subparagraphs (B), (C), (D), and (E)—
(i) by indenting the subparagraph in the same
manner as, and aligning the left margin of the subparagraph with the left margin of, the matter inserted
by subparagraph (B) of this paragraph; and
(ii) by striking the final comma and inserting a
semicolon; and
(E) in subparagraph (E), by indenting each of clauses
(i) and (ii) 2 additional ems.
(b) CONTINUATION OF SERVICES FOR FAMILIES CEASING TO
RECEIVE ASSISTANCE UNDER THE STATE PROGRAM FUNDED UNDER
PART A.—Section 454 (42 U.S.C. 654) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (23);
(2) by striking the period at the end of paragraph (24)
and inserting ‘‘; and’’; and

110 STAT. 2200

PUBLIC LAW 104–193—AUG. 22, 1996
(3) by adding after paragraph (24) the following new paragraph:
‘‘(25) provide that if a family with respect to which services
are provided under the plan ceases to receive assistance under
the State program funded under part A, the State shall provide
appropriate notice to the family and continue to provide such
services, subject to the same conditions and on the same basis
as in the case of other individuals to whom services are furnished under the plan, except that an application or other
request to continue services shall not be required of such a
family and paragraph (6)(B) shall not apply to the family.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 452(b) (42 U.S.C. 652(b)) is amended by striking
‘‘454(6)’’ and inserting ‘‘454(4)’’.
(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended
by striking ‘‘454(6)’’ each place it appears and inserting
‘‘454(4)(A)(ii)’’.
(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended
by striking ‘‘in the case of overdue support which a State
has agreed to collect under section 454(6)’’ and inserting ‘‘in
any other case’’.
(4) Section 466(e) (42 U.S.C. 666(e)) is amended by striking
‘‘paragraph (4) or (6) of section 454’’ and inserting ‘‘section
454(4)’’.

SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

(a) IN GENERAL.—Section 457 (42 U.S.C. 657) is amended to
read as follows:
‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

‘‘(a) IN GENERAL.—Subject to subsection (e), an amount collected
on behalf of a family as support by a State pursuant to a plan
approved under this part shall be distributed as follows:
‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the case of a
family receiving assistance from the State, the State shall—
‘‘(A) pay to the Federal Government the Federal share
of the amount so collected; and
‘‘(B) retain, or distribute to the family, the State share
of the amount so collected.
‘‘(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE.—In
the case of a family that formerly received assistance
from the State:
‘‘(A) CURRENT SUPPORT PAYMENTS.—To the extent that
the amount so collected does not exceed the amount
required to be paid to the family for the month in which
collected, the State shall distribute the amount so collected
to the family.
‘‘(B) PAYMENTS OF ARREARAGES.—To the extent that
the amount so collected exceeds the amount required to
be paid to the family for the month in which collected,
the State shall distribute the amount so collected as follows:
‘‘(i) DISTRIBUTION OF ARREARAGES THAT ACCRUED
AFTER THE FAMILY CEASED TO RECEIVE ASSISTANCE.—
‘‘(I) PRE-OCTOBER 1997.—Except as provided in
subclause (II), the provisions of this section (other
than subsection (b)(1)) as in effect and applied
on the day before the date of the enactment of
section 302 of the Personal Responsibility and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2201

Work Opportunity Act Reconciliation of 1996 shall
apply with respect to the distribution of support
arrearages that—
‘‘(aa) accrued after the family ceased to
receive assistance, and
‘‘(bb) are collected before October 1, 1997.
‘‘(II) POST-SEPTEMBER 1997.—With respect to
the amount so collected on or after October 1,
1997 (or before such date, at the option of the
State)—
‘‘(aa) IN GENERAL.—The State shall first
distribute the amount so collected (other than
any amount described in clause (iv)) to the
family to the extent necessary to satisfy any
support arrearages with respect to the family
that accrued after the family ceased to receive
assistance from the State.
‘‘(bb) REIMBURSEMENT OF GOVERNMENTS
FOR ASSISTANCE PROVIDED TO THE FAMILY.—
After the application of division (aa) and
clause (ii)(II)(aa) with respect to the amount
so collected, the State shall retain the State
share of the amount so collected, and pay to
the Federal Government the Federal share (as
defined in subsection (c)(2)) of the amount so
collected, but only to the extent necessary to
reimburse amounts paid to the family as
assistance by the State.
‘‘(cc) DISTRIBUTION OF THE REMAINDER TO
THE FAMILY.—To the extent that neither division (aa) nor division (bb) applies to the
amount so collected, the State shall distribute
the amount to the family.
‘‘(ii) DISTRIBUTION OF ARREARAGES THAT ACCRUED
BEFORE THE FAMILY RECEIVED ASSISTANCE.—
‘‘(I) PRE-OCTOBER 2000.—Except as provided in
subclause (II), the provisions of this section (other
than subsection (b)(1)) as in effect and applied
on the day before the date of the enactment of
section 302 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 shall
apply with respect to the distribution of support
arrearages that—
‘‘(aa) accrued before the family received
assistance, and
‘‘(bb) are collected before October 1, 2000.
‘‘(II) POST-SEPTEMBER 2000.—Unless, based on
the report required by paragraph (4), the Congress
determines otherwise, with respect to the amount
so collected on or after October 1, 2000 (or before
such date, at the option of the State)—
‘‘(aa) IN GENERAL.—The State shall first
distribute the amount so collected (other than
any amount described in clause (iv)) to the
family to the extent necessary to satisfy any
support arrearages with respect to the family

110 STAT. 2202

PUBLIC LAW 104–193—AUG. 22, 1996
that accrued before the family received assistance from the State.
‘‘(bb) REIMBURSEMENT OF GOVERNMENTS
FOR ASSISTANCE PROVIDED TO THE FAMILY.—
After the application of clause (i)(II)(aa) and
division (aa) with respect to the amount so
collected, the State shall retain the State share
of the amount so collected, and pay to the
Federal Government the Federal share (as
defined in subsection (c)(2)) of the amount so
collected, but only to the extent necessary to
reimburse amounts paid to the family as
assistance by the State.
‘‘(cc) DISTRIBUTION OF THE REMAINDER TO
THE FAMILY.—To the extent that neither division (aa) nor division (bb) applies to the
amount so collected, the State shall distribute
the amount to the family.
‘‘(iii) DISTRIBUTION OF ARREARAGES THAT ACCRUED
WHILE THE FAMILY RECEIVED ASSISTANCE.—In the case
of a family described in this subparagraph, the provisions of paragraph (1) shall apply with respect to the
distribution of support arrearages that accrued while
the family received assistance.
‘‘(iv) AMOUNTS COLLECTED PURSUANT TO SECTION
464.—Notwithstanding any other provision of this section, any amount of support collected pursuant to
section 464 shall be retained by the State to the extent
past-due support has been assigned to the State as
a condition of receiving assistance from the State, up
to the amount necessary to reimburse the State for
amounts paid to the family as assistance by the State.
The State shall pay to the Federal Government the
Federal share of the amounts so retained. To the extent
the amount collected pursuant to section 464 exceeds
the amount so retained, the State shall distribute the
excess to the family.
‘‘(v) ORDERING RULES FOR DISTRIBUTIONS.—For
purposes of this subparagraph, unless an earlier effective date is required by this section, effective October
1, 2000, the State shall treat any support arrearages
collected, except for amounts collected pursuant to section 464, as accruing in the following order:
‘‘(I) To the period after the family ceased to
receive assistance.
‘‘(II) To the period before the family received
assistance.
‘‘(III) To the period while the family was
receiving assistance.
‘‘(3) FAMILIES THAT NEVER RECEIVED ASSISTANCE.—In the
case of any other family, the State shall distribute the amount
so collected to the family.
‘‘(4) FAMILIES UNDER CERTAIN AGREEMENTS.—In the case
of a family receiving assistance from an Indian tribe, distribute
the amount so collected pursuant to an agreement entered
into pursuant to a State plan under section 454(33).

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2203

‘‘(5) STUDY AND REPORT.—Not later than October 1, 1998,
the Secretary shall report to the Congress the Secretary’s findings with respect to—
‘‘(A) whether the distribution of post-assistance arrearages to families has been effective in moving people off
of welfare and keeping them off of welfare;
‘‘(B) whether early implementation of a pre-assistance
arrearage program by some States has been effective in
moving people off of welfare and keeping them off of welfare;
‘‘(C) what the overall impact has been of the amendments made by the Personal Responsibility and Work
Opportunity Act of 1996 with respect to child support
enforcement in moving people off of welfare and keeping
them off of welfare; and
‘‘(D) based on the information and data the Secretary
has obtained, what changes, if any, should be made in
the policies related to the distribution of child support
arrearages.
‘‘(b) CONTINUATION OF ASSIGNMENTS.—Any rights to support
obligations, which were assigned to a State as a condition of receiving assistance from the State under part A and which were in
effect on the day before the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996, shall remain
assigned after such date.
‘‘(c) DEFINITIONS.—As used in subsection (a):
‘‘(1) ASSISTANCE.—The term ‘assistance from the State’
means—
‘‘(A) assistance under the State program funded under
part A or under the State plan approved under part A
of this title (as in effect on the day before the date of
the enactment of the Personal Responsibility and Work
Opportunity Act of 1996); and
‘‘(B) foster care maintenance payments under the State
plan approved under part E of this title.
‘‘(2) FEDERAL SHARE.—The term ‘Federal share’ means that
portion of the amount collected resulting from the application
of the Federal medical assistance percentage in effect for the
fiscal year in which the amount is collected.
‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENTAGE.—The term
‘Federal medical assistance percentage’ means—
‘‘(A) the Federal medical assistance percentage (as
defined in section 1118), in the case of Puerto Rico, the
Virgin Islands, Guam, and American Samoa; or
‘‘(B) the Federal medical assistance percentage (as
defined in section 1905(b), as in effect on September 30,
1996) in the case of any other State.
‘‘(4) STATE SHARE.—The term ‘State share’ means 100 percent minus the Federal share.
‘‘(d) HOLD HARMLESS PROVISION.—If the amounts collected
which could be retained by the State in the fiscal year (to the
extent necessary to reimburse the State for amounts paid to families
as assistance by the State) are less than the State share of the
amounts collected in fiscal year 1995 (determined in accordance
with section 457 as in effect on the day before the date of the
enactment of the Personal Responsibility and Work Opportunity

110 STAT. 2204

42 USC 657 note.

PUBLIC LAW 104–193—AUG. 22, 1996

Act of 1996), the State share for the fiscal year shall be an amount
equal to the State share in fiscal year 1995.
‘‘(e) GAP PAYMENTS NOT SUBJECT TO DISTRIBUTION UNDER THIS
SECTION.—At State option, this section shall not apply to any
amount collected on behalf of a family as support by the State
(and paid to the family in addition to the amount of assistance
otherwise payable to the family) pursuant to a plan approved under
this part if such amount would have been paid to the family
by the State under section 402(a)(28), as in effect and applied
on the day before the date of the enactment of section 302 of
the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996. For purposes of subsection (d), the State share of
such amount paid to the family shall be considered amounts which
could be retained by the State if such payments were reported
by the State as part of the State share of amounts collected in
fiscal year 1995.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by
striking ‘‘section 457(b)(4) or (d)(3)’’ and inserting ‘‘section 457’’.
(2) Section 454 (42 U.S.C. 654) is amended—
(A) in paragraph (11)—
(i) by striking ‘‘(11)’’ and inserting ‘‘(11)(A)’’; and
(ii) by inserting after the semicolon ‘‘and’’; and
(B) by redesignating paragraph (12) as subparagraph
(B) of paragraph (11).
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2),
the amendments made by this section shall be effective on
October 1, 1996, or earlier at the State’s option.
(2) CONFORMING AMENDMENTS.—The amendments made by
subsection (b)(2) shall become effective on the date of the enactment of this Act.
SEC. 303. PRIVACY SAFEGUARDS.

(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by section 301(b) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (24);
(2) by striking the period at the end of paragraph (25)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (25) the following new paragraph:
‘‘(26) will have in effect safeguards, applicable to all confidential information handled by the State agency, that are
designed to protect the privacy rights of the parties, including—
‘‘(A) safeguards against unauthorized use or disclosure
of information relating to proceedings or actions to establish
paternity, or to establish or enforce support;
‘‘(B) prohibitions against the release of information
on the whereabouts of 1 party to another party against
whom a protective order with respect to the former party
has been entered; and
‘‘(C) prohibitions against the release of information
on the whereabouts of 1 party to another party if the
State has reason to believe that the release of the information may result in physical or emotional harm to the former
party.’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2205

(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall become effective on October 1, 1997.

42 USC 654 note.

SEC. 304. RIGHTS TO NOTIFICATION OF HEARINGS.

(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as amended
by section 302(b)(2) of this Act, is amended by inserting after
paragraph (11) the following new paragraph:
‘‘(12) provide for the establishment of procedures to require
the State to provide individuals who are applying for or receiving services under the State plan, or who are parties to cases
in which services are being provided under the State plan—
‘‘(A) with notice of all proceedings in which support
obligations might be established or modified; and
‘‘(B) with a copy of any order establishing or modifying
a child support obligation, or (in the case of a petition
for modification) a notice of determination that there should
be no change in the amount of the child support award,
within 14 days after issuance of such order or determination;’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall become effective on October 1, 1997.

Subtitle B—Locate and Case Tracking
SEC. 311. STATE CASE REGISTRY.

Section 454A, as added by section 344(a)(2) of this Act, is
amended by adding at the end the following new subsections:
‘‘(e) STATE CASE REGISTRY.—
‘‘(1) CONTENTS.—The automated system required by this
section shall include a registry (which shall be known as the
‘State case registry’) that contains records with respect to—
‘‘(A) each case in which services are being provided
by the State agency under the State plan approved under
this part; and
‘‘(B) each support order established or modified in the
State on or after October 1, 1998.
‘‘(2) LINKING OF LOCAL REGISTRIES.—The State case registry
may be established by linking local case registries of support
orders through an automated information network, subject to
this section.
‘‘(3) USE OF STANDARDIZED DATA ELEMENTS.—Such records
shall use standardized data elements for both parents (such
as names, social security numbers and other uniform identification numbers, dates of birth, and case identification numbers),
and contain such other information (such as on case status)
as the Secretary may require.
‘‘(4) PAYMENT RECORDS.—Each case record in the State
case registry with respect to which services are being provided
under the State plan approved under this part and with respect
to which a support order has been established shall include
a record of—
‘‘(A) the amount of monthly (or other periodic) support
owed under the order, and other amounts (including arrearages, interest or late payment penalties, and fees) due
or overdue under the order;

42 USC 654 note.

110 STAT. 2206

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(B) any amount described in subparagraph (A) that
has been collected;
‘‘(C) the distribution of such collected amounts;
‘‘(D) the birth date of any child for whom the order
requires the provision of support; and
‘‘(E) the amount of any lien imposed with respect to
the order pursuant to section 466(a)(4).
‘‘(5) UPDATING AND MONITORING.—The State agency operating the automated system required by this section shall
promptly establish and update, maintain, and regularly monitor, case records in the State case registry with respect to
which services are being provided under the State plan
approved under this part, on the basis of—
‘‘(A) information on administrative actions and
administrative and judicial proceedings and orders relating
to paternity and support;
‘‘(B) information obtained from comparison with
Federal, State, or local sources of information;
‘‘(C) information on support collections and distributions; and
‘‘(D) any other relevant information.
‘‘(f) INFORMATION COMPARISONS AND OTHER DISCLOSURES OF
INFORMATION.—The State shall use the automated system required
by this section to extract information from (at such times, and
in such standardized format or formats, as may be required by
the Secretary), to share and compare information with, and to
receive information from, other data bases and information comparison services, in order to obtain (or provide) information necessary
to enable the State agency (or the Secretary or other State or
Federal agencies) to carry out this part, subject to section 6103
of the Internal Revenue Code of 1986. Such information comparison
activities shall include the following:
‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.—
Furnishing to the Federal Case Registry of Child Support
Orders established under section 453(h) (and update as necessary, with information including notice of expiration of orders)
the minimum amount of information on child support cases
recorded in the State case registry that is necessary to operate
the registry (as specified by the Secretary in regulations).
‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—Exchanging
information with the Federal Parent Locator Service for the
purposes specified in section 453.
‘‘(3) TEMPORARY FAMILY ASSISTANCE AND MEDICAID
AGENCIES.—Exchanging information with State agencies (of the
State and of other States) administering programs funded under
part A, programs operated under a State plan approved under
title XIX, and other programs designated by the Secretary,
as necessary to perform State agency responsibilities under
this part and under such programs.
‘‘(4) INTRASTATE AND INTERSTATE INFORMATION COMPARISONS.—Exchanging information with other agencies of the
State, agencies of other States, and interstate information networks, as necessary and appropriate to carry out (or assist
other States to carry out) the purposes of this part.’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2207

SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by sections 301(b) and 303(a) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (25);
(2) by striking the period at the end of paragraph (26)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (26) the following new paragraph:
‘‘(27) provide that, on and after October 1, 1998, the State
agency will—
‘‘(A) operate a State disbursement unit in accordance
with section 454B; and
‘‘(B) have sufficient State staff (consisting of State
employees) and (at State option) contractors reporting
directly to the State agency to—
‘‘(i) monitor and enforce support collections
through the unit in cases being enforced by the State
pursuant to section 454(4) (including carrying out the
automated data processing responsibilities described
in section 454A(g)); and
‘‘(ii) take the actions described in section 466(c)(1)
in appropriate cases.’’.
(b) ESTABLISHMENT OF STATE DISBURSEMENT UNIT.—Part D
of title IV (42 U.S.C. 651–669), as amended by section 344(a)(2)
of this Act, is amended by inserting after section 454A the following
new section:
‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

‘‘(a) STATE DISBURSEMENT UNIT.—
‘‘(1) IN GENERAL.—In order for a State to meet the requirements of this section, the State agency must establish and
operate a unit (which shall be known as the ‘State disbursement
unit’) for the collection and disbursement of payments under
support orders—
‘‘(A) in all cases being enforced by the State pursuant
to section 454(4); and
‘‘(B) in all cases not being enforced by the State under
this part in which the support order is initially issued
in the State on or after January 1, 1994, and in which
the income of the noncustodial parent is subject to
withholding pursuant to section 466(a)(8)(B).
‘‘(2) OPERATION.—The State disbursement unit shall be
operated—
‘‘(A) directly by the State agency (or 2 or more State
agencies under a regional cooperative agreement), or (to
the extent appropriate) by a contractor responsible directly
to the State agency; and
‘‘(B) except in cases described in paragraph (1)(B), in
coordination with the automated system established by
the State pursuant to section 454A.
‘‘(3) LINKING OF LOCAL DISBURSEMENT UNITS.—The State
disbursement unit may be established by linking local disbursement units through an automated information network, subject
to this section, if the Secretary agrees that the system will
not cost more nor take more time to establish or operate than

42 USC 654b.

110 STAT. 2208

PUBLIC LAW 104–193—AUG. 22, 1996

a centralized system. In addition, employers shall be given
1 location to which income withholding is sent.
‘‘(b) REQUIRED PROCEDURES.—The State disbursement unit
shall use automated procedures, electronic processes, and computerdriven technology to the maximum extent feasible, efficient, and
economical, for the collection and disbursement of support payments, including procedures—
‘‘(1) for receipt of payments from parents, employers, and
other States, and for disbursements to custodial parents and
other obligees, the State agency, and the agencies of other
States;
‘‘(2) for accurate identification of payments;
‘‘(3) to ensure prompt disbursement of the custodial parent’s
share of any payment; and
‘‘(4) to furnish to any parent, upon request, timely information on the current status of support payments under an order
requiring payments to be made by or to the parent, except
that in cases described in subsection (a)(1)(B), the State
disbursement unit shall not be required to convert and maintain
in automated form records of payments kept pursuant to section
466(a)(8)(B)(iii) before the effective date of this section.
‘‘(c) TIMING OF DISBURSEMENTS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the State disbursement unit shall distribute all amounts payable under section 457(a) within 2 business days after receipt
from the employer or other source of periodic income, if sufficient information identifying the payee is provided.
‘‘(2) PERMISSIVE RETENTION OF ARREARAGES.—The State
disbursement unit may delay the distribution of collections
toward arrearages until the resolution of any timely appeal
with respect to such arrearages.
‘‘(d) BUSINESS DAY DEFINED.—As used in this section, the term
‘business day’ means a day on which State offices are open for
regular business.’’.
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as added by
section 344(a)(2) and as amended by section 311 of this Act, is
amended by adding at the end the following new subsection:
‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT PAYMENTS.—
‘‘(1) IN GENERAL.—The State shall use the automated system required by this section, to the maximum extent feasible,
to assist and facilitate the collection and disbursement of support payments through the State disbursement unit operated
under section 454B, through the performance of functions,
including, at a minimum—
‘‘(A) transmission of orders and notices to employers
(and other debtors) for the withholding of income—
‘‘(i) within 2 business days after receipt of notice
of, and the income source subject to, such withholding
from a court, another State, an employer, the Federal
Parent Locator Service, or another source recognized
by the State; and
‘‘(ii) using uniform formats prescribed by the Secretary;
‘‘(B) ongoing monitoring to promptly identify failures
to make timely payment of support; and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2209

‘‘(C) automatic use of enforcement procedures (including procedures authorized pursuant to section 466(c)) if
payments are not timely made.
‘‘(2) BUSINESS DAY DEFINED.—As used in paragraph (1),
the term ‘business day’ means a day on which State offices
are open for regular business.’’.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall become effective on
October 1, 1998.
(2) LIMITED EXCEPTION TO UNIT HANDLING PAYMENTS.—
Notwithstanding section 454B(b)(1) of the Social Security Act,
as added by this section, any State which, as of the date
of the enactment of this Act, processes the receipt of child
support payments through local courts may, at the option of
the State, continue to process through September 30, 1999,
such payments through such courts as processed such payments
on or before such date of enactment.

42 USC 654b
note.

SEC. 313. STATE DIRECTORY OF NEW HIRES.

(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by sections 301(b), 303(a), and 312(a) of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph (26);
(2) by striking the period at the end of paragraph (27)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (27) the following new paragraph:
‘‘(28) provide that, on and after October 1, 1997, the State
will operate a State Directory of New Hires in accordance
with section 453A.’’.
(b) STATE DIRECTORY OF NEW HIRES.—Part D of title IV (42
U.S.C. 651–669) is amended by inserting after section 453 the
following new section:
‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) REQUIREMENT FOR STATES THAT HAVE NO DIRECTORY.—Except as provided in subparagraph (B), not later
than October 1, 1997, each State shall establish an automated directory (to be known as the ‘State Directory of
New Hires’) which shall contain information supplied in
accordance with subsection (b) by employers on each newly
hired employee.
‘‘(B) STATES WITH NEW HIRE REPORTING LAW IN EXISTENCE.—A State which has a new hire reporting law in
existence on the date of the enactment of this section
may continue to operate under the State law, but the
State must meet the requirements of subsection (g)(2) not
later than October 1, 1997, and the requirements of this
section (other than subsection (g)(2)) not later than October
1, 1998.
‘‘(2) DEFINITIONS.—As used in this section:
‘‘(A) EMPLOYEE.—The term ‘employee’—
‘‘(i) means an individual who is an employee within
the meaning of chapter 24 of the Internal Revenue
Code of 1986; and

42 USC 653a.

110 STAT. 2210

Notification.

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(ii) does not include an employee of a Federal
or State agency performing intelligence or counterintelligence functions, if the head of such agency has determined that reporting pursuant to paragraph (1) with
respect to the employee could endanger the safety of
the employee or compromise an ongoing investigation
or intelligence mission.
‘‘(B) EMPLOYER.—
‘‘(i) IN GENERAL.—The term ‘employer’ has the
meaning given such term in section 3401(d) of the
Internal Revenue Code of 1986 and includes any
governmental entity and any labor organization.
‘‘(ii) LABOR ORGANIZATION.—The term ‘labor
organization’ shall have the meaning given such term
in section 2(5) of the National Labor Relations Act,
and includes any entity (also known as a ‘hiring hall’)
which is used by the organization and an employer
to carry out requirements described in section 8(f)(3)
of such Act of an agreement between the organization
and the employer.
‘‘(b) EMPLOYER INFORMATION.—
‘‘(1) REPORTING REQUIREMENT.—
‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), each employer shall furnish to the
Directory of New Hires of the State in which a newly
hired employee works, a report that contains the name,
address, and social security number of the employee, and
the name and address of, and identifying number assigned
under section 6109 of the Internal Revenue Code of 1986
to, the employer.
‘‘(B) MULTISTATE EMPLOYERS.—An employer that has
employees who are employed in 2 or more States and
that transmits reports magnetically or electronically may
comply with subparagraph (A) by designating 1 State in
which such employer has employees to which the employer
will transmit the report described in subparagraph (A),
and transmitting such report to such State. Any employer
that transmits reports pursuant to this subparagraph shall
notify the Secretary in writing as to which State such
employer designates for the purpose of sending reports.
‘‘(C) FEDERAL GOVERNMENT EMPLOYERS.—Any department, agency, or instrumentality of the United States shall
comply with subparagraph (A) by transmitting the report
described in subparagraph (A) to the National Directory
of New Hires established pursuant to section 453.
‘‘(2) TIMING OF REPORT.—Each State may provide the time
within which the report required by paragraph (1) shall be
made with respect to an employee, but such report shall
be made—
‘‘(A) not later than 20 days after the date the employer
hires the employee; or
‘‘(B) in the case of an employer transmitting reports
magnetically or electronically, by 2 monthly transmissions
(if necessary) not less than 12 days nor more than 16
days apart.
‘‘(c) REPORTING FORMAT AND METHOD.—Each report required
by subsection (b) shall be made on a W–4 form or, at the option

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2211

of the employer, an equivalent form, and may be transmitted by
1st class mail, magnetically, or electronically.
‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EMPLOYERS.—
The State shall have the option to set a State civil money penalty
which shall be less than—
‘‘(1) $25; or
‘‘(2) $500 if, under State law, the failure is the result
of a conspiracy between the employer and the employee to
not supply the required report or to supply a false or incomplete
report.
‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Information shall be
entered into the data base maintained by the State Directory of
New Hires within 5 business days of receipt from an employer
pursuant to subsection (b).
‘‘(f) INFORMATION COMPARISONS.—
‘‘(1) IN GENERAL.—Not later than May 1, 1998, an agency
designated by the State shall, directly or by contract, conduct
automated comparisons of the social security numbers reported
by employers pursuant to subsection (b) and the social security
numbers appearing in the records of the State case registry
for cases being enforced under the State plan.
‘‘(2) NOTICE OF MATCH.—When an information comparison
conducted under paragraph (1) reveals a match with respect
to the social security number of an individual required to provide support under a support order, the State Directory of
New Hires shall provide the agency administering the State
plan approved under this part of the appropriate State with
the name, address, and social security number of the employee
to whom the social security number is assigned, and the name
and address of, and identifying number assigned under section
6109 of the Internal Revenue Code of 1986 to, the employer.
‘‘(g) TRANSMISSION OF INFORMATION.—
‘‘(1) TRANSMISSION OF WAGE WITHHOLDING NOTICES TO
EMPLOYERS.—Within 2 business days after the date information
regarding a newly hired employee is entered into the State
Directory of New Hires, the State agency enforcing the employee’s child support obligation shall transmit a notice to the
employer of the employee directing the employer to withhold
from the income of the employee an amount equal to the
monthly (or other periodic) child support obligation (including
any past due support obligation) of the employee, unless the
employee’s income is not subject to withholding pursuant to
section 466(b)(3).
‘‘(2) TRANSMISSIONS TO THE NATIONAL DIRECTORY OF NEW
HIRES.—
‘‘(A) NEW HIRE INFORMATION.—Within 3 business days
after the date information regarding a newly hired
employee is entered into the State Directory of New Hires,
the State Directory of New Hires shall furnish the information to the National Directory of New Hires.
‘‘(B) WAGE AND UNEMPLOYMENT COMPENSATION
INFORMATION.—The State Directory of New Hires shall,
on a quarterly basis, furnish to the National Directory
of New Hires extracts of the reports required under section
303(a)(6) to be made to the Secretary of Labor concerning
the wages and unemployment compensation paid to individuals, by such dates, in such format, and containing such

Regulations.

110 STAT. 2212

PUBLIC LAW 104–193—AUG. 22, 1996

information as the Secretary of Health and Human Services
shall specify in regulations.
‘‘(3) BUSINESS DAY DEFINED.—As used in this subsection,
the term ‘business day’ means a day on which State offices
are open for regular business.
‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—
‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—The agency
administering the State plan approved under this part shall
use information received pursuant to subsection (f)(2) to locate
individuals for purposes of establishing paternity and establishing, modifying, and enforcing child support obligations, and
may disclose such information to any agent of the agency that
is under contract with the agency to carry out such purposes.
‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN PROGRAMS.—
A State agency responsible for administering a program specified in section 1137(b) shall have access to information reported
by employers pursuant to subsection (b) of this section for
purposes of verifying eligibility for the program.
‘‘(3) ADMINISTRATION OF EMPLOYMENT SECURITY AND
WORKERS’ COMPENSATION.—State agencies operating employment security and workers’ compensation programs shall have
access to information reported by employers pursuant to subsection (b) for the purposes of administering such programs.’’.
(c) QUARTERLY WAGE REPORTING.—Section 1137(a)(3) (42
U.S.C. 1320b–7(a)(3)) is amended—
(1) by inserting ‘‘(including State and local governmental
entities and labor organizations (as defined in section
453A(a)(2)(B)(iii))’’ after ‘‘employers’’; and
(2) by inserting ‘‘, and except that no report shall be filed
with respect to an employee of a State or local agency performing intelligence or counterintelligence functions, if the head
of such agency has determined that filing such a report could
endanger the safety of the employee or compromise an ongoing
investigation or intelligence mission’’ after ‘‘paragraph (2)’’.
(d) DISCLOSURE TO CERTAIN AGENTS.—Section 303(e) (42 U.S.C.
503(e)) is amended by adding at the end the following:
‘‘(5) A State or local child support enforcement agency may
disclose to any agent of the agency that is under contract with
the agency to carry out the purposes described in paragraph (1)(B)
wage information that is disclosed to an officer or employee of
the agency under paragraph (1)(A). Any agent of a State or local
child support agency that receives wage information under this
paragraph shall comply with the safeguards established pursuant
to paragraph (1)(B).’’.
SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.

(a) MANDATORY INCOME WITHHOLDING.—
(1) IN GENERAL.—Section 466(a)(1) (42 U.S.C. 666(a)(1))
is amended to read as follows:
‘‘(1)(A) Procedures described in subsection (b) for the
withholding from income of amounts payable as support in
cases subject to enforcement under the State plan.
‘‘(B) Procedures under which the income of a person with
a support obligation imposed by a support order issued (or
modified) in the State before October 1, 1996, if not otherwise
subject to withholding under subsection (b), shall become subject to withholding as provided in subsection (b) if arrearages

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2213

occur, without the need for a judicial or administrative hearing.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 466(b) (42 U.S.C. 666(b)) is amended in
the matter preceding paragraph (1), by striking ‘‘subsection
(a)(1)’’ and inserting ‘‘subsection (a)(1)(A)’’.
(B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended
to read as follows:
‘‘(4)(A) Such withholding must be carried out in full compliance with all procedural due process requirements of the State,
and the State must send notice to each noncustodial parent
to whom paragraph (1) applies—
‘‘(i) that the withholding has commenced; and
‘‘(ii) of the procedures to follow if the noncustodial
parent desires to contest such withholding on the grounds
that the withholding or the amount withheld is improper
due to a mistake of fact.
‘‘(B) The notice under subparagraph (A) of this paragraph
shall include the information provided to the employer under
paragraph (6)(A).’’.
(C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended
by striking all that follows ‘‘administered by’’ and inserting
‘‘the State through the State disbursement unit established
pursuant to section 454B, in accordance with the requirements of section 454B.’’.
(D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is
amended—
(i) in clause (i), by striking ‘‘to the appropriate
agency’’ and all that follows and inserting ‘‘to the State
disbursement unit within 7 business days after the
date the amount would (but for this subsection) have
been paid or credited to the employee, for distribution
in accordance with this part. The employer shall withhold funds as directed in the notice, except that when
an employer receives an income withholding order
issued by another State, the employer shall apply the
income withholding law of the state of the obligor’s
principal place of employment in determining—
‘‘(I) the employer’s fee for processing an income
withholding order;
‘‘(II) the maximum amount permitted to be withheld
from the obligor’s income;
‘‘(III) the time periods within which the employer must
implement the income withholding order and forward the
child support payment;
‘‘(IV) the priorities for withholding and allocating
income withheld for multiple child support obligees; and
‘‘(V) any withholding terms or conditions not specified
in the order.
An employer who complies with an income withholding notice
that is regular on its face shall not be subject to civil liability
to any individual or agency for conduct in compliance with
the notice.’’;
(ii) in clause (ii), by inserting ‘‘be in a standard
format prescribed by the Secretary, and’’ after
‘‘shall’’; and
(iii) by adding at the end the following new clause:

Notice.

110 STAT. 2214

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(iii) As used in this subparagraph, the term ‘business
day’ means a day on which State offices are open for regular
business.’’.
(E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is
amended by striking ‘‘any employer’’ and all that follows
and inserting ‘‘any employer who—
‘‘(i) discharges from employment, refuses to employ,
or takes disciplinary action against any noncustodial parent
subject to income withholding required by this subsection
because of the existence of such withholding and the obligations or additional obligations which it imposes upon the
employer; or
‘‘(ii) fails to withhold support from income or to pay
such amounts to the State disbursement unit in accordance
with this subsection.’’.
(F) Section 466(b) (42 U.S.C. 666(b)) is amended by
adding at the end the following new paragraph:
‘‘(11) Procedures under which the agency administering
the State plan approved under this part may execute a
withholding order without advance notice to the obligor, including issuing the withholding order through electronic means.’’.
(b) DEFINITION OF INCOME.—
(1) IN GENERAL.—Section 466(b)(8) (42 U.S.C. 666(b)(8))
is amended to read as follows:
‘‘(8) For purposes of subsection (a) and this subsection,
the term ‘income’ means any periodic form of payment due
to an individual, regardless of source, including wages, salaries,
commissions, bonuses, worker’s compensation, disability, payments pursuant to a pension or retirement program, and
interest.’’.
(2) CONFORMING AMENDMENTS.—
(A) Subsections (a)(8)(A), (a)(8)(B)(i), (b)(3)(A), (b)(3)(B),
(b)(6)(A)(i), and (b)(6)(C), and (b)(7) of section 466 (42 U.S.C.
666(a)(8)(A), (a)(8)(B)(i), (b)(3)(A), (b)(3)(B), (b)(6)(A)(i), and
(b)(6)(C), and (b)(7)) are each amended by striking ‘‘wages’’
each place such term appears and inserting ‘‘income’’.
(B) Section 466(b)(1) (42 U.S.C. 666(b)(1)) is amended
by striking ‘‘wages (as defined by the State for purposes
of this section)’’ and inserting ‘‘income’’.
(c) CONFORMING AMENDMENT.—Section 466(c) (42 U.S.C. 666(c))
is repealed.
SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

Section 466(a) (42 U.S.C. 666(a)) is amended by inserting after
paragraph (11) the following new paragraph:
‘‘(12) LOCATOR INFORMATION FROM INTERSTATE NETWORKS.—Procedures to ensure that all Federal and State agencies conducting activities under this part have access to any
system used by the State to locate an individual for purposes
relating to motor vehicles or law enforcement.’’.
SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.

(a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS AND
ASSETS.—Section 453 (42 U.S.C. 653) is amended—
(1) in subsection (a), by striking all that follows ‘‘subsection
(c))’’ and inserting ‘‘, for the purpose of establishing parentage,
establishing, setting the amount of, modifying, or enforcing

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2215

child support obligations, or enforcing child custody or visitation
orders—
‘‘(1) information on, or facilitating the discovery of, the
location of any individual—
‘‘(A) who is under an obligation to pay child support
or provide child custody or visitation rights;
‘‘(B) against whom such an obligation is sought;
‘‘(C) to whom such an obligation is owed,
including the individual’s social security number (or numbers),
most recent address, and the name, address, and employer
identification number of the individual’s employer;
‘‘(2) information on the individual’s wages (or other income)
from, and benefits of, employment (including rights to or enrollment in group health care coverage); and
‘‘(3) information on the type, status, location, and amount
of any assets of, or debts owed by or to, any such individual.’’; and
(2) in subsection (b)—
(A) in the matter preceding paragraph (1), by striking
‘‘social security’’ and all that follows through ‘‘absent parent’’ and inserting ‘‘information described in subsection
(a)’’; and
(B) in the flush paragraph at the end, by adding the
following: ‘‘No information shall be disclosed to any person
if the State has notified the Secretary that the State has
reasonable evidence of domestic violence or child abuse
and the disclosure of such information could be harmful
to the custodial parent or the child of such parent. Information received or transmitted pursuant to this section shall
be subject to the safeguard provisions contained in section
454(26).’’.
(b) AUTHORIZED PERSON FOR INFORMATION REGARDING
VISITATION RIGHTS.—Section 453(c) (42 U.S.C. 653(c)) is amended—
(1) in paragraph (1), by striking ‘‘support’’ and inserting
‘‘support or to seek to enforce orders providing child custody
or visitation rights’’; and
(2) in paragraph (2), by striking ‘‘, or any agent of such
court; and’’ and inserting ‘‘or to issue an order against a resident
parent for child custody or visitation rights, or any agent of
such court;’’.
(c) REIMBURSEMENT FOR INFORMATION FROM FEDERAL
AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in
the 4th sentence by inserting ‘‘in an amount which the Secretary
determines to be reasonable payment for the information exchange
(which amount shall not include payment for the costs of obtaining,
compiling, or maintaining the information)’’ before the period.
(d) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES.—Section
453 (42 U.S.C. 653) is amended by adding at the end the following
new subsection:
‘‘(g) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES.—The
Secretary may reimburse Federal and State agencies for the costs
incurred by such entities in furnishing information requested by
the Secretary under this section in an amount which the Secretary
determines to be reasonable payment for the information exchange
(which amount shall not include payment for the costs of obtaining,
compiling, or maintaining the information).’’.
(e) CONFORMING AMENDMENTS.—

110 STAT. 2216

Establishment.

Establishment.

PUBLIC LAW 104–193—AUG. 22, 1996

(1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and
463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), and
663(f)) are each amended by inserting ‘‘Federal’’ before ‘‘Parent’’
each place such term appears.
(2) Section 453 (42 U.S.C. 653) is amended in the heading
by adding ‘‘FEDERAL’’ before ‘‘PARENT’’.
(f) NEW COMPONENTS.—Section 453 (42 U.S.C. 653), as
amended by subsection (d) of this section, is amended by adding
at the end the following new subsections:
‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.—
‘‘(1) IN GENERAL.—Not later than October 1, 1998, in order
to assist States in administering programs under State plans
approved under this part and programs funded under part
A, and for the other purposes specified in this section, the
Secretary shall establish and maintain in the Federal Parent
Locator Service an automated registry (which shall be known
as the ‘Federal Case Registry of Child Support Orders’), which
shall contain abstracts of support orders and other information
described in paragraph (2) with respect to each case in each
State case registry maintained pursuant to section 454A(e),
as furnished (and regularly updated), pursuant to section
454A(f), by State agencies administering programs under this
part.
‘‘(2) CASE INFORMATION.—The information referred to in
paragraph (1) with respect to a case shall be such information
as the Secretary may specify in regulations (including the
names, social security numbers or other uniform identification
numbers, and State case identification numbers) to identify
the individuals who owe or are owed support (or with respect
to or on behalf of whom support obligations are sought to
be established), and the State or States which have the case.
‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—
‘‘(1) IN GENERAL.—In order to assist States in administering
programs under State plans approved under this part and
programs funded under part A, and for the other purposes
specified in this section, the Secretary shall, not later than
October 1, 1997, establish and maintain in the Federal Parent
Locator Service an automated directory to be known as the
National Directory of New Hires, which shall contain the
information supplied pursuant to section 453A(g)(2).
‘‘(2) ENTRY OF DATA.—Information shall be entered into
the data base maintained by the National Directory of New
Hires within 2 business days of receipt pursuant to section
453A(g)(2).
‘‘(3) ADMINISTRATION OF FEDERAL TAX LAWS.—The Secretary
of the Treasury shall have access to the information in the
National Directory of New Hires for purposes of administering
section 32 of the Internal Revenue Code of 1986, or the advance
payment of the earned income tax credit under section 3507
of such Code, and verifying a claim with respect to employment
in a tax return.
‘‘(4) LIST OF MULTISTATE EMPLOYERS.—The Secretary shall
maintain within the National Directory of New Hires a list
of multistate employers that report information regarding
newly hired employees pursuant to section 453A(b)(1)(B), and
the State which each such employer has designated to receive
such information.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2217

‘‘(j) INFORMATION COMPARISONS AND OTHER DISCLOSURES.—
‘‘(1) VERIFICATION BY SOCIAL SECURITY ADMINISTRATION.—
‘‘(A) IN GENERAL.—The Secretary shall transmit
information on individuals and employers maintained
under this section to the Social Security Administration
to the extent necessary for verification in accordance with
subparagraph (B).
‘‘(B) VERIFICATION BY SSA.—The Social Security
Administration shall verify the accuracy of, correct, or supply to the extent possible, and report to the Secretary,
the following information supplied by the Secretary pursuant to subparagraph (A):
‘‘(i) The name, social security number, and birth
date of each such individual.
‘‘(ii) The employer identification number of each
such employer.
‘‘(2) INFORMATION COMPARISONS.—For the purpose of locating individuals in a paternity establishment case or a case
involving the establishment, modification, or enforcement of
a support order, the Secretary shall—
‘‘(A) compare information in the National Directory
of New Hires against information in the support case
abstracts in the Federal Case Registry of Child Support
Orders not less often than every 2 business days; and
‘‘(B) within 2 business days after such a comparison
reveals a match with respect to an individual, report the
information to the State agency responsible for the case.
‘‘(3) INFORMATION COMPARISONS AND DISCLOSURES OF
INFORMATION IN ALL REGISTRIES FOR TITLE IV PROGRAM PURPOSES.—To the extent and with the frequency that the Secretary determines to be effective in assisting States to carry
out their responsibilities under programs operated under this
part and programs funded under part A, the Secretary shall—
‘‘(A) compare the information in each component of
the Federal Parent Locator Service maintained under this
section against the information in each other such component (other than the comparison required by paragraph
(2)), and report instances in which such a comparison
reveals a match with respect to an individual to State
agencies operating such programs; and
‘‘(B) disclose information in such registries to such
State agencies.
‘‘(4) PROVISION OF NEW HIRE INFORMATION TO THE SOCIAL
SECURITY ADMINISTRATION.—The National Directory of New
Hires shall provide the Commissioner of Social Security with
all information in the National Directory.
‘‘(5) RESEARCH.—The Secretary may provide access to
information reported by employers pursuant to section 453A(b)
for research purposes found by the Secretary to be likely to
contribute to achieving the purposes of part A or this part,
but without personal identifiers.
‘‘(k) FEES.—
‘‘(1) FOR SSA VERIFICATION.—The Secretary shall reimburse
the Commissioner of Social Security, at a rate negotiated
between the Secretary and the Commissioner, for the costs
incurred by the Commissioner in performing the verification
services described in subsection (j).

Reports.

Reports.

110 STAT. 2218

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(2) FOR INFORMATION FROM STATE DIRECTORIES OF NEW
HIRES.—The Secretary shall reimburse costs incurred by State

directories of new hires in furnishing information as required
by subsection (j)(3), at rates which the Secretary determines
to be reasonable (which rates shall not include payment for
the costs of obtaining, compiling, or maintaining such information).
‘‘(3) FOR INFORMATION FURNISHED TO STATE AND FEDERAL
AGENCIES.—A State or Federal agency that receives information
from the Secretary pursuant to this section shall reimburse
the Secretary for costs incurred by the Secretary in furnishing
the information, at rates which the Secretary determines to
be reasonable (which rates shall include payment for the costs
of obtaining, verifying, maintaining, and comparing the
information).
‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—Information in the
Federal Parent Locator Service, and information resulting from
comparisons using such information, shall not be used or disclosed
except as expressly provided in this section, subject to section
6103 of the Internal Revenue Code of 1986.
‘‘(m) INFORMATION INTEGRITY AND SECURITY.—The Secretary
shall establish and implement safeguards with respect to the entities established under this section designed to—
‘‘(1) ensure the accuracy and completeness of information
in the Federal Parent Locator Service; and
‘‘(2) restrict access to confidential information in the
Federal Parent Locator Service to authorized persons, and
restrict use of such information to authorized purposes.
‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each department,
agency, and instrumentality of the United States shall on a quarterly basis report to the Federal Parent Locator Service the name
and social security number of each employee and the wages paid
to the employee during the previous quarter, except that such
a report shall not be filed with respect to an employee of a department, agency, or instrumentality performing intelligence or counterintelligence functions, if the head of such department, agency, or
instrumentality has determined that filing such a report could
endanger the safety of the employee or compromise an ongoing
investigation or intelligence mission.’’.
(g) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV OF THE SOCIAL SECURITY ACT.—
(A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended
to read as follows:
‘‘(B) the Federal Parent Locator Service established
under section 453;’’.
(B) Section 454(13) (42 U.S.C.654(13)) is amended by
inserting ‘‘and provide that information requests by parents
who are residents of other States be treated with the same
priority as requests by parents who are residents of the
State submitting the plan’’ before the semicolon.
(2) TO FEDERAL UNEMPLOYMENT TAX ACT.—Section
3304(a)(16) of the Internal Revenue Code of 1986 is amended—
(A) by striking ‘‘Secretary of Health, Education, and
Welfare’’ each place such term appears and inserting ‘‘Secretary of Health and Human Services’’;
(B) in subparagraph (B), by striking ‘‘such information’’
and all that follows and inserting ‘‘information furnished

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2219

under subparagraph (A) or (B) is used only for the purposes
authorized under such subparagraph;’’;
(C) by striking ‘‘and’’ at the end of subparagraph (A);
(D) by redesignating subparagraph (B) as subparagraph (C); and
(E) by inserting after subparagraph (A) the following
new subparagraph:
‘‘(B) wage and unemployment compensation information
contained in the records of such agency shall be furnished
to the Secretary of Health and Human Services (in accordance
with regulations promulgated by such Secretary) as necessary
for the purposes of the National Directory of New Hires established under section 453(i) of the Social Security Act, and’’.
(3) TO STATE GRANT PROGRAM UNDER TITLE III OF THE
SOCIAL SECURITY ACT.—Subsection (h) of section 303 (42 U.S.C.
503) is amended to read as follows:
‘‘(h)(1) The State agency charged with the administration of
the State law shall, on a reimbursable basis—
‘‘(A) disclose quarterly, to the Secretary of Health and
Human Services, wage and claim information, as required
pursuant to section 453(i)(1), contained in the records of such
agency;
‘‘(B) ensure that information provided pursuant to subparagraph (A) meets such standards relating to correctness and
verification as the Secretary of Health and Human Services,
with the concurrence of the Secretary of Labor, may find necessary; and
‘‘(C) establish such safeguards as the Secretary of Labor
determines are necessary to insure that information disclosed
under subparagraph (A) is used only for purposes of section
453(i)(1) in carrying out the child support enforcement program
under title IV.
‘‘(2) Whenever the Secretary of Labor, after reasonable notice
and opportunity for hearing to the State agency charged with the
administration of the State law, finds that there is a failure to
comply substantially with the requirements of paragraph (1), the
Secretary of Labor shall notify such State agency that further
payments will not be made to the State until the Secretary of
Labor is satisfied that there is no longer any such failure. Until
the Secretary of Labor is so satisfied, the Secretary shall make
no future certification to the Secretary of the Treasury with respect
to the State.
‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘wage information’ means information regarding wages paid to an individual, the social security account
number of such individual, and the name, address, State, and
the Federal employer identification number of the employer
paying such wages to such individual; and
‘‘(B) the term ‘claim information’ means information regarding whether an individual is receiving, has received, or has
made application for, unemployment compensation, the amount
of any such compensation being received (or to be received
by such individual), and the individual’s current (or most
recent) home address.’’.
(4) DISCLOSURE OF CERTAIN INFORMATION TO AGENTS OF
CHILD SUPPORT ENFORCEMENT AGENCIES.—

Regulations.

Notification.

110 STAT. 2220

42 USC 653 note.

PUBLIC LAW 104–193—AUG. 22, 1996

(A) IN GENERAL.—Paragraph (6) of section 6103(l) of
the Internal Revenue Code of 1986 (relating to disclosure
of return information to Federal, State, and local child
support enforcement agencies) is amended by redesignating
subparagraph (B) as subparagraph (C) and by inserting
after subparagraph (A) the following new subparagraph:
‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—The following
information disclosed to any child support enforcement
agency under subparagraph (A) with respect to any individual with respect to whom child support obligations are
sought to be established or enforced may be disclosed by
such agency to any agent of such agency which is under
contract with such agency to carry out the purposes
described in subparagraph (C):
‘‘(i) The address and social security account number (or numbers) of such individual.
‘‘(ii) The amount of any reduction under section
6402(c) (relating to offset of past-due support against
overpayments) in any overpayment otherwise payable
to such individual.’’.
(B) CONFORMING AMENDMENTS.—
(i) Paragraph (3) of section 6103(a) of such Code
is amended by striking ‘‘(l)(12)’’ and inserting ‘‘paragraph (6) or (12) of subsection (l)’’.
(ii) Subparagraph (C) of section 6103(l)(6) of such
Code, as redesignated by subsection (a), is amended
to read as follows:
‘‘(C) RESTRICTION ON DISCLOSURE.—Information may
be disclosed under this paragraph only for purposes of,
and to the extent necessary in, establishing and collecting
child support obligations from, and locating, individuals
owing such obligations.’’.
(iii) The material following subparagraph (F) of
section 6103(p)(4) of such Code is amended by striking
‘‘subsection (l)(12)(B)’’ and inserting ‘‘paragraph (6)(A)
or (12)(B) of subsection (l)’’.
(h) REQUIREMENT FOR COOPERATION.—The Secretary of Labor
and the Secretary of Health and Human Services shall work jointly
to develop cost-effective and efficient methods of accessing the
information in the various State directories of new hires and the
National Directory of New Hires as established pursuant to the
amendments made by this subtitle. In developing these methods
the Secretaries shall take into account the impact, including costs,
on the States, and shall also consider the need to insure the proper
and authorized use of wage record information.
SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR
USE IN CHILD SUPPORT ENFORCEMENT.

Section 466(a) (42 U.S.C. 666(a)), as amended by section 315
of this Act, is amended by inserting after paragraph (12) the following new paragraph:
‘‘(13) RECORDING OF SOCIAL SECURITY NUMBERS IN CERTAIN
FAMILY MATTERS.—Procedures requiring that the social security
number of—
‘‘(A) any applicant for a professional license, commercial driver’s license, occupational license, or marriage
license be recorded on the application;

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2221

‘‘(B) any individual who is subject to a divorce decree,
support order, or paternity determination or acknowledgment be placed in the records relating to the matter; and
‘‘(C) any individual who has died be placed in the
records relating to the death and be recorded on the death
certificate.
For purposes of subparagraph (A), if a State allows the use
of a number other than the social security number, the State
shall so advise any applicants.’’.

Subtitle C—Streamlining and Uniformity
of Procedures
SEC. 321. ADOPTION OF UNIFORM STATE LAWS.

Section 466 (42 U.S.C. 666) is amended by adding at the end
the following new subsection:
‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT ACT.—In order to
satisfy section 454(20)(A), on and after January 1, 1998, each State
must have in effect the Uniform Interstate Family Support Act,
as approved by the American Bar Association on February 9, 1993,
together with any amendments officially adopted before January
1, 1998 by the National Conference of Commissioners on Uniform
State Laws.’’.
SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD
SUPPORT ORDERS.

Section 1738B of title 28, United States Code, is amended—
(1) in subsection (a)(2), by striking ‘‘subsection (e)’’ and
inserting ‘‘subsections (e), (f), and (i)’’;
(2) in subsection (b), by inserting after the 2nd undesignated paragraph the following:
‘‘ ‘child’s home State’ means the State in which a child lived
with a parent or a person acting as parent for at least 6 consecutive
months immediately preceding the time of filing of a petition or
comparable pleading for support and, if a child is less than 6
months old, the State in which the child lived from birth with
any of them. A period of temporary absence of any of them is
counted as part of the 6-month period.’’;
(3) in subsection (c), by inserting ‘‘by a court of a State’’
before ‘‘is made’’;
(4) in subsection (c)(1), by inserting ‘‘and subsections (e),
(f), and (g)’’ after ‘‘located’’;
(5) in subsection (d)—
(A) by inserting ‘‘individual’’ before ‘‘contestant’’; and
(B) by striking ‘‘subsection (e)’’ and inserting ‘‘subsections (e) and (f)’’;
(6) in subsection (e), by striking ‘‘make a modification of
a child support order with respect to a child that is made’’
and inserting ‘‘modify a child support order issued’’;
(7) in subsection (e)(1), by inserting ‘‘pursuant to subsection
(i)’’ before the semicolon;
(8) in subsection (e)(2)—
(A) by inserting ‘‘individual’’ before ‘‘contestant’’ each
place such term appears; and
(B) by striking ‘‘to that court’s making the modification
and assuming’’ and inserting ‘‘with the State of continuing,

110 STAT. 2222

Courts.

PUBLIC LAW 104–193—AUG. 22, 1996

exclusive jurisdiction for a court of another State to modify
the order and assume’’;
(9) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively;
(10) by inserting after subsection (e) the following new
subsection:
‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—If 1 or more
child support orders have been issued with regard to an obligor
and a child, a court shall apply the following rules in determining
which order to recognize for purposes of continuing, exclusive jurisdiction and enforcement:
‘‘(1) If only 1 court has issued a child support order, the
order of that court must be recognized.
‘‘(2) If 2 or more courts have issued child support orders
for the same obligor and child, and only 1 of the courts would
have continuing, exclusive jurisdiction under this section, the
order of that court must be recognized.
‘‘(3) If 2 or more courts have issued child support orders
for the same obligor and child, and more than 1 of the courts
would have continuing, exclusive jurisdiction under this section,
an order issued by a court in the current home State of the
child must be recognized, but if an order has not been issued
in the current home State of the child, the order most recently
issued must be recognized.
‘‘(4) If 2 or more courts have issued child support orders
for the same obligor and child, and none of the courts would
have continuing, exclusive jurisdiction under this section, a
court may issue a child support order, which must be recognized.
‘‘(5) The court that has issued an order recognized under
this subsection is the court having continuing, exclusive jurisdiction.’’;
(11) in subsection (g) (as so redesignated)—
(A) by striking ‘‘PRIOR’’ and inserting ‘‘MODIFIED’’; and
(B) by striking ‘‘subsection (e)’’ and inserting ‘‘subsections (e) and (f)’’;
(12) in subsection (h) (as so redesignated)—
(A) in paragraph (2), by inserting ‘‘including the duration of current payments and other obligations of support’’
before the comma; and
(B) in paragraph (3), by inserting ‘‘arrears under’’ after
‘‘enforce’’; and
(13) by adding at the end the following new subsection:
‘‘(i) REGISTRATION FOR MODIFICATION.—If there is no individual
contestant or child residing in the issuing State, the party or
support enforcement agency seeking to modify, or to modify and
enforce, a child support order issued in another State shall register
that order in a State with jurisdiction over the nonmovant for
the purpose of modification.’’.
SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315
and 317 of this Act, is amended by inserting after paragraph (13)
the following new paragraph:
‘‘(14) ADMINISTRATIVE ENFORCEMENT IN INTERSTATE
CASES.—Procedures under which—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2223

‘‘(A)(i) the State shall respond within 5 business days
to a request made by another State to enforce a support
order; and
‘‘(ii) the term ‘business day’ means a day on which
State offices are open for regular business;
‘‘(B) the State may, by electronic or other means, transmit to another State a request for assistance in a case
involving the enforcement of a support order, which
request—
‘‘(i) shall include such information as will enable
the State to which the request is transmitted to compare the information about the case to the information
in the data bases of the State; and
‘‘(ii) shall constitute a certification by the requesting State—
‘‘(I) of the amount of support under the order
the payment of which is in arrears; and
‘‘(II) that the requesting State has complied
with all procedural due process requirements
applicable to the case;
‘‘(C) if the State provides assistance to another State
pursuant to this paragraph with respect to a case, neither
State shall consider the case to be transferred to the caseload of such other State; and
‘‘(D) the State shall maintain records of—
‘‘(i) the number of such requests for assistance
received by the State;
‘‘(ii) the number of cases for which the State collected support in response to such a request; and
‘‘(iii) the amount of such collected support.’’.
SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

(a) PROMULGATION.—Section 452(a) (42 U.S.C. 652(a)) is
amended—
(1) by striking ‘‘and’’ at the end of paragraph (9);
(2) by striking the period at the end of paragraph (10)
(as amended by section 346(a) of this Act) and inserting ‘‘;
and’’; and
(3) by adding at the end the following new paragraph:
‘‘(11) not later than October 1, 1996, after consulting with
the State directors of programs under this part, promulgate
forms to be used by States in interstate cases for—
‘‘(A) collection of child support through income
withholding;
‘‘(B) imposition of liens; and
‘‘(C) administrative subpoenas.’’.
(b) USE BY STATES.—Section 454(9) (42 U.S.C. 654(9)) is
amended—
(1) by striking ‘‘and’’ at the end of subparagraph (C);
(2) by inserting ‘‘and’’ at the end of subparagraph
(D); and
(3) by adding at the end the following new subparagraph:
‘‘(E) not later than March 1, 1997, in using the forms
promulgated pursuant to section 452(a)(11) for income
withholding, imposition of liens, and issuance of administrative subpoenas in interstate child support cases;’’.

Records.

110 STAT. 2224

PUBLIC LAW 104–193—AUG. 22, 1996

SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

(a) STATE LAW REQUIREMENTS.—Section 466 (42 U.S.C. 666),
as amended by section 314 of this Act, is amended—
(1) in subsection (a)(2), by striking the first sentence and
inserting the following: ‘‘Expedited administrative and judicial
procedures (including the procedures specified in subsection
(c)) for establishing paternity and for establishing, modifying,
and enforcing support obligations.’’; and
(2) by inserting after subsection (b) the following new subsection:
‘‘(c) EXPEDITED PROCEDURES.—The procedures specified in this
subsection are the following:
‘‘(1) ADMINISTRATIVE ACTION BY STATE AGENCY.—Procedures
which give the State agency the authority to take the following
actions relating to establishment of paternity or to establishment, modification, or enforcement of support orders, without
the necessity of obtaining an order from any other judicial
or administrative tribunal, and to recognize and enforce the
authority of State agencies of other States to take the following
actions:
‘‘(A) GENETIC TESTING.—To order genetic testing for
the purpose of paternity establishment as provided in section 466(a)(5).
‘‘(B) FINANCIAL OR OTHER INFORMATION.—To subpoena
any financial or other information needed to establish,
modify, or enforce a support order, and to impose penalties
for failure to respond to such a subpoena.
‘‘(C) RESPONSE TO STATE AGENCY REQUEST.—To require
all entities in the State (including for-profit, nonprofit,
and governmental employers) to provide promptly, in
response to a request by the State agency of that or any
other State administering a program under this part,
information on the employment, compensation, and benefits
of any individual employed by such entity as an employee
or contractor, and to sanction failure to respond to any
such request.
‘‘(D) ACCESS TO INFORMATION CONTAINED IN CERTAIN
RECORDS.—To obtain access, subject to safeguards on privacy and information security, and subject to the nonliability of entities that afford such access under this subparagraph, to information contained in the following records
(including automated access, in the case of records maintained in automated data bases):
‘‘(i) Records of other State and local government
agencies, including—
‘‘(I) vital statistics (including records of marriage, birth, and divorce);
‘‘(II) State and local tax and revenue records
(including information on residence address,
employer, income and assets);
‘‘(III) records concerning real and titled personal property;
‘‘(IV) records of occupational and professional
licenses, and records concerning the ownership and
control of corporations, partnerships, and other
business entities;
‘‘(V) employment security records;

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2225

‘‘(VI) records of agencies administering public
assistance programs;
‘‘(VII) records of the motor vehicle department; and
‘‘(VIII) corrections records.
‘‘(ii) Certain records held by private entities with
respect to individuals who owe or are owed support
(or against or with respect to whom a support obligation is sought), consisting of—
‘‘(I) the names and addresses of such individuals and the names and addresses of the
employers of such individuals, as appearing in customer records of public utilities and cable television companies, pursuant to an administrative
subpoena authorized by subparagraph (B); and
‘‘(II) information (including information on
assets and liabilities) on such individuals held by
financial institutions.
‘‘(E) CHANGE IN PAYEE.—In cases in which support
is subject to an assignment in order to comply with a
requirement imposed pursuant to part A or section 1912,
or to a requirement to pay through the State disbursement
unit established pursuant to section 454B, upon providing
notice to obligor and obligee, to direct the obligor or other
payor to change the payee to the appropriate government
entity.
‘‘(F) INCOME WITHHOLDING.—To order income withholding in accordance with subsections (a)(1)(A) and (b) of section 466.
‘‘(G) SECURING ASSETS.—In cases in which there is
a support arrearage, to secure assets to satisfy the arrearage by—
‘‘(i) intercepting or seizing periodic or lump-sum
payments from—
‘‘(I) a State or local agency, including
unemployment compensation, workers’ compensation, and other benefits; and
‘‘(II) judgments, settlements, and lotteries;
‘‘(ii) attaching and seizing assets of the obligor
held in financial institutions;
‘‘(iii) attaching public and private retirement
funds; and
‘‘(iv) imposing liens in accordance with subsection
(a)(4) and, in appropriate cases, to force sale of property
and distribution of proceeds.
‘‘(H) INCREASE MONTHLY PAYMENTS.—For the purpose
of securing overdue support, to increase the amount of
monthly support payments to include amounts for arrearages, subject to such conditions or limitations as the State
may provide.
Such procedures shall be subject to due process safeguards,
including (as appropriate) requirements for notice, opportunity
to contest the action, and opportunity for an appeal on the
record to an independent administrative or judicial tribunal.
‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—The expedited
procedures required under subsection (a)(2) shall include the
following rules and authority, applicable with respect to all

110 STAT. 2226

PUBLIC LAW 104–193—AUG. 22, 1996

proceedings to establish paternity or to establish, modify, or
enforce support orders:
‘‘(A) LOCATOR INFORMATION; PRESUMPTIONS CONCERNING NOTICE.—Procedures under which—
‘‘(i) each party to any paternity or child support
proceeding is required (subject to privacy safeguards)
to file with the tribunal and the State case registry
upon entry of an order, and to update as appropriate,
information on location and identity of the party,
including Social Security number, residential and mailing addresses, telephone number, driver’s license number, and name, address, and telephone number of
employer; and
‘‘(ii) in any subsequent child support enforcement
action between the parties, upon sufficient showing
that diligent effort has been made to ascertain the
location of such a party, the tribunal may deem State
due process requirements for notice and service of process to be met with respect to the party, upon delivery
of written notice to the most recent residential or
employer address filed with the tribunal pursuant to
clause (i).
‘‘(B) STATEWIDE JURISDICTION.—Procedures under
which—
‘‘(i) the State agency and any administrative or
judicial tribunal with authority to hear child support
and paternity cases exerts statewide jurisdiction over
the parties; and
‘‘(ii) in a State in which orders are issued by courts
or administrative tribunals, a case may be transferred
between local jurisdictions in the State without need
for any additional filing by the petitioner, or service
of process upon the respondent, to retain jurisdiction
over the parties.
‘‘(3) COORDINATION WITH ERISA.—Notwithstanding subsection (d) of section 514 of the Employee Retirement Income
Security Act of 1974 (relating to effect on other laws), nothing
in this subsection shall be construed to alter, amend, modify,
invalidate, impair, or supersede subsections (a), (b), and (c)
of such section 514 as it applies with respect to any procedure
referred to in paragraph (1) and any expedited procedure
referred to in paragraph (2), except to the extent that such
procedure would be consistent with the requirements of section
206(d)(3) of such Act (relating to qualified domestic relations
orders) or the requirements of section 609(a) of such Act (relating to qualified medical child support orders) if the reference
in such section 206(d)(3) to a domestic relations order and
the reference in such section 609(a) to a medical child support
order were a reference to a support order referred to in paragraphs (1) and (2) relating to the same matters, respectively.’’.
(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—Section 454A,
as added by section 344(a)(2) and as amended by sections 311
and 312(c) of this Act, is amended by adding at the end the following
new subsection:
‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—The automated
system required by this section shall be used, to the maximum

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2227

extent feasible, to implement the expedited administrative procedures required by section 466(c).’’.

Subtitle D—Paternity Establishment
SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

(a) STATE LAWS REQUIRED.—Section 466(a)(5) (42 U.S.C.
666(a)(5)) is amended to read as follows:
‘‘(5)
PROCEDURES
CONCERNING
PATERNITY
ESTABLISHMENT.—
‘‘(A) ESTABLISHMENT PROCESS AVAILABLE FROM BIRTH
UNTIL AGE 18.—
‘‘(i) Procedures which permit the establishment of
the paternity of a child at any time before the child
attains 18 years of age.
‘‘(ii) As of August 16, 1984, clause (i) shall also
apply to a child for whom paternity has not been
established or for whom a paternity action was brought
but dismissed because a statute of limitations of less
than 18 years was then in effect in the State.
‘‘(B) PROCEDURES CONCERNING GENETIC TESTING.—
‘‘(i) GENETIC TESTING REQUIRED IN CERTAIN CONTESTED CASES.—Procedures under which the State is
required, in a contested paternity case (unless otherwise barred by State law) to require the child and
all other parties (other than individuals found under
section 454(29) to have good cause and other exceptions
for refusing to cooperate) to submit to genetic tests
upon the request of any such party, if the request
is supported by a sworn statement by the party—
‘‘(I) alleging paternity, and setting forth facts
establishing a reasonable possibility of the requisite sexual contact between the parties; or
‘‘(II) denying paternity, and setting forth facts
establishing a reasonable possibility of the nonexistence of sexual contact between the parties.
‘‘(ii) OTHER REQUIREMENTS.—Procedures which
require the State agency, in any case in which the
agency orders genetic testing—
‘‘(I) to pay costs of such tests, subject to
recoupment (if the State so elects) from the alleged
father if paternity is established; and
‘‘(II) to obtain additional testing in any case
if an original test result is contested, upon request
and advance payment by the contestant.
‘‘(C) VOLUNTARY PATERNITY ACKNOWLEDGMENT.—
‘‘(i) SIMPLE CIVIL PROCESS.—Procedures for a simple civil process for voluntarily acknowledging paternity under which the State must provide that, before
a mother and a putative father can sign an acknowledgment of paternity, the mother and the putative father
must be given notice, orally and in writing, of the
alternatives to, the legal consequences of, and the
rights (including, if 1 parent is a minor, any rights
afforded due to minority status) and responsibilities
that arise from, signing the acknowledgment.

110 STAT. 2228

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(ii) HOSPITAL-BASED PROGRAM.—Such procedures
must include a hospital-based program for the voluntary acknowledgment of paternity focusing on the
period immediately before or after the birth of a child.
‘‘(iii) PATERNITY ESTABLISHMENT SERVICES.—
‘‘(I) STATE-OFFERED SERVICES.—Such procedures must require the State agency responsible
for maintaining birth records to offer voluntary
paternity establishment services.
‘‘(II) REGULATIONS.—
‘‘(aa) SERVICES OFFERED BY HOSPITALS AND
BIRTH RECORD AGENCIES.—The Secretary shall
prescribe regulations governing voluntary
paternity establishment services offered by
hospitals and birth record agencies.
‘‘(bb) SERVICES OFFERED BY OTHER
ENTITIES.—The Secretary shall prescribe regulations specifying the types of other entities
that may offer voluntary paternity establishment services, and governing the provision of
such services, which shall include a requirement that such an entity must use the same
notice provisions used by, use the same materials used by, provide the personnel providing
such services with the same training provided
by, and evaluate the provision of such services
in the same manner as the provision of such
services is evaluated by, voluntary paternity
establishment programs of hospitals and birth
record agencies.
‘‘(iv) USE OF PATERNITY ACKNOWLEDGMENT
AFFIDAVIT.—Such procedures must require the State
to develop and use an affidavit for the voluntary
acknowledgment of paternity which includes the minimum requirements of the affidavit specified by the
Secretary under section 452(a)(7) for the voluntary
acknowledgment of paternity, and to give full faith
and credit to such an affidavit signed in any other
State according to its procedures.
‘‘(D) STATUS OF SIGNED PATERNITY ACKNOWLEDGMENT.—
‘‘(i) INCLUSION IN BIRTH RECORDS.—Procedures
under which the name of the father shall be included
on the record of birth of the child of unmarried parents
only if—
‘‘(I) the father and mother have signed a voluntary acknowledgment of paternity; or
‘‘(II) a court or an administrative agency of
competent jurisdiction has issued an adjudication
of paternity.
Nothing in this clause shall preclude a State agency
from obtaining an admission of paternity from the
father for submission in a judicial or administrative
proceeding, or prohibit the issuance of an order in
a judicial or administrative proceeding which bases
a legal finding of paternity on an admission of paternity

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2229

by the father and any other additional showing
required by State law.
‘‘(ii) LEGAL FINDING OF PATERNITY.—Procedures
under which a signed voluntary acknowledgment of
paternity is considered a legal finding of paternity,
subject to the right of any signatory to rescind the
acknowledgment within the earlier of—
‘‘(I) 60 days; or
‘‘(II) the date of an administrative or judicial
proceeding relating to the child (including a
proceeding to establish a support order) in which
the signatory is a party.
‘‘(iii) CONTEST.—Procedures under which, after the
60-day period referred to in clause (ii), a signed voluntary acknowledgment of paternity may be challenged
in court only on the basis of fraud, duress, or material
mistake of fact, with the burden of proof upon the
challenger, and under which the legal responsibilities
(including child support obligations) of any signatory
arising from the acknowledgment may not be suspended during the challenge, except for good cause
shown.
‘‘(E) BAR ON ACKNOWLEDGMENT RATIFICATION PROCEEDINGS.—Procedures under which judicial or administrative proceedings are not required or permitted to ratify
an unchallenged acknowledgment of paternity.
‘‘(F) ADMISSIBILITY OF GENETIC TESTING RESULTS.—
Procedures—
‘‘(i) requiring the admission into evidence, for purposes of establishing paternity, of the results of any
genetic test that is—
‘‘(I) of a type generally acknowledged as reliable by accreditation bodies designated by the Secretary; and
‘‘(II) performed by a laboratory approved by
such an accreditation body;
‘‘(ii) requiring an objection to genetic testing
results to be made in writing not later than a specified
number of days before any hearing at which the results
may be introduced into evidence (or, at State option,
not later than a specified number of days after receipt
of the results); and
‘‘(iii) making the test results admissible as evidence of paternity without the need for foundation
testimony or other proof of authenticity or accuracy,
unless objection is made.
‘‘(G) PRESUMPTION OF PATERNITY IN CERTAIN CASES.—
Procedures which create a rebuttable or, at the option
of the State, conclusive presumption of paternity upon
genetic testing results indicating a threshold probability
that the alleged father is the father of the child.
‘‘(H) DEFAULT ORDERS.—Procedures requiring a default
order to be entered in a paternity case upon a showing
of service of process on the defendant and any additional
showing required by State law.

110 STAT. 2230

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(I) NO RIGHT TO JURY TRIAL.—Procedures providing
that the parties to an action to establish paternity are
not entitled to a trial by jury.
‘‘(J) TEMPORARY SUPPORT ORDER BASED ON PROBABLE
PATERNITY IN CONTESTED CASES.—Procedures which require
that a temporary order be issued, upon motion by a party,
requiring the provision of child support pending an
administrative or judicial determination of parentage, if
there is clear and convincing evidence of paternity (on
the basis of genetic tests or other evidence).
‘‘(K) PROOF OF CERTAIN SUPPORT AND PATERNITY
ESTABLISHMENT COSTS.—Procedures under which bills for
pregnancy, childbirth, and genetic testing are admissible
as evidence without requiring third-party foundation testimony, and shall constitute prima facie evidence of amounts
incurred for such services or for testing on behalf of the
child.
‘‘(L) STANDING OF PUTATIVE FATHERS.—Procedures
ensuring that the putative father has a reasonable opportunity to initiate a paternity action.
‘‘(M) FILING OF ACKNOWLEDGMENTS AND ADJUDICATIONS
IN STATE REGISTRY OF BIRTH RECORDS.—Procedures under
which voluntary acknowledgments and adjudications of
paternity by judicial or administrative processes are filed
with the State registry of birth records for comparison
with information in the State case registry.’’.
(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ‘‘, and
specify the minimum requirements of an affidavit to be used for
the voluntary acknowledgment of paternity which shall include
the Social Security number of each parent and, after consultation
with the States, other common elements as determined by such
designee’’ before the semicolon.
(c) CONFORMING AMENDMENT.—Section 468 (42 U.S.C. 668) is
amended by striking ‘‘a simple civil process for voluntarily acknowledging paternity and’’.
SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

Section 454(23) (42 U.S.C. 654(23)) is amended by inserting
‘‘and will publicize the availability and encourage the use of procedures for voluntary establishment of paternity and child support
by means the State deems appropriate’’ before the semicolon.
SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF
PART A ASSISTANCE.

Section 454 (42 U.S.C. 654), as amended by sections 301(b),
303(a), 312(a), and 313(a) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (27);
(2) by striking the period at the end of paragraph (28)
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (28) the following new
paragraph:
‘‘(29) provide that the State agency responsible for administering the State plan—
‘‘(A) shall make the determination (and redetermination at appropriate intervals) as to whether an individual
who has applied for or is receiving assistance under the
State program funded under part A of this title or the

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2231

State program under title XIX is cooperating in good faith
with the State in establishing the paternity of, or in
establishing, modifying, or enforcing a support order for,
any child of the individual by providing the State agency
with the name of, and such other information as the State
agency may require with respect to, the noncustodial parent
of the child, subject to good cause and other exceptions
which—
‘‘(i) shall be defined, taking into account the best
interests of the child, and
‘‘(ii) shall be applied in each case,
by, at the option of the State, the State agency administering the State program under part A, this part, or title
XIX;
‘‘(B) shall require the individual to supply additional
necessary information and appear at interviews, hearings,
and legal proceedings;
‘‘(C) shall require the individual and the child to submit
to genetic tests pursuant to judicial or administrative order;
‘‘(D) may request that the individual sign a voluntary
acknowledgment of paternity, after notice of the rights
and consequences of such an acknowledgment, but may
not require the individual to sign an acknowledgment or
otherwise relinquish the right to genetic tests as a condition
of cooperation and eligibility for assistance under the State
program funded under part A, or the State program under
title XIX; and
‘‘(E) shall promptly notify the individual, the State
agency administering the State program funded under part
A, and the State agency administering the State program
under title XIX, of each such determination, and if noncooperation is determined, the basis therefor.’’.

Notification.

Subtitle E—Program Administration and
Funding
SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

(a) DEVELOPMENT OF NEW SYSTEM.—The Secretary of Health
and Human Services, in consultation with State directors of programs under part D of title IV of the Social Security Act, shall
develop a new incentive system to replace, in a revenue neutral
manner, the system under section 458 of such Act. The new system
shall provide additional payments to any State based on such
State’s performance under such a program. Not later than March
1, 1997, the Secretary shall report on the new system to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate.
(b) CONFORMING AMENDMENTS TO PRESENT SYSTEM.—Section
458 (42 U.S.C. 658) is amended—
(1) in subsection (a), by striking ‘‘aid to families with
dependent children under a State plan approved under part
A of this title’’ and inserting ‘‘assistance under a program
funded under part A’’;
(2) in subsection (b)(1)(A), by striking ‘‘section 402(a)(26)’’
and inserting ‘‘section 408(a)(4)’’;
(3) in subsections (b) and (c)—

42 USC 658 note.

Reports.

110 STAT. 2232

PUBLIC LAW 104–193—AUG. 22, 1996

(A) by striking ‘‘AFDC collections’’ each place it appears
and inserting ‘‘title IV–A collections’’, and
(B) by striking ‘‘non-AFDC collections’’ each place it
appears and inserting ‘‘non-title IV–A collections’’; and
(4) in subsection (c), by striking ‘‘combined AFDC/nonAFDC administrative costs’’ both places it appears and inserting
‘‘combined title IV–A/non-title IV–A administrative costs’’.
(c) CALCULATION OF PATERNITY ESTABLISHMENT PERCENTAGE.—
(1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is amended
by striking ‘‘75’’ and inserting ‘‘90’’.
(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended—
(A) by redesignating subparagraphs (B) through (E)
as subparagraphs (C) through (F), respectively, and by
inserting after subparagraph (A) the following new
subparagraph:
‘‘(B) for a State with a paternity establishment percentage
of not less than 75 percent but less than 90 percent for such
fiscal year, the paternity establishment percentage of the State
for the immediately preceding fiscal year plus 2 percentage
points;’’; and
(B) by adding at the end the following new flush
sentence:
‘‘In determining compliance under this section, a State may use
as its paternity establishment percentage either the State’s IV–
D paternity establishment percentage (as defined in paragraph
(2)(A)) or the State’s statewide paternity establishment percentage
(as defined in paragraph (2)(B)).’’.
(3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i)—
(I) by striking ‘‘paternity establishment
percentage’’ and inserting ‘‘IV–D paternity
establishment percentage’’; and
(II) by striking ‘‘(or all States, as the case
may be)’’; and
(ii) by striking ‘‘and’’ at the end; and
(B) by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the
following new subparagraph:
‘‘(B) the term ‘statewide paternity establishment percentage’ means, with respect to a State for a fiscal year, the ratio
(expressed as a percentage) that the total number of minor
children—
‘‘(i) who have been born out of wedlock, and
‘‘(ii) the paternity of whom has been established or
acknowledged during the fiscal year,
bears to the total number of children born out of wedlock
during the preceding fiscal year; and’’.
(4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended—
(A) by striking subparagraph (A) and redesignating
subparagraphs (B) and (C) as subparagraphs (A) and (B),
respectively; and
(B) in subparagraph (A) (as so redesignated), by striking ‘‘the percentage of children born out-of-wedlock in a
State’’ and inserting ‘‘the percentage of children in a State
who are born out of wedlock or for whom support has
not been established’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2233

(d) EFFECTIVE DATES.—
(1) INCENTIVE ADJUSTMENTS.—
(A) IN GENERAL.—The system developed under subsection (a) and the amendments made by subsection (b)
shall become effective on October 1, 1999, except to the
extent provided in subparagraph (B).
(B) APPLICATION OF SECTION 458.—Section 458 of the
Social Security Act, as in effect on the day before the
date of the enactment of this section, shall be effective
for purposes of incentive payments to States for fiscal years
before fiscal year 2000.
(2) PENALTY REDUCTIONS.—The amendments made by subsection (c) shall become effective with respect to calendar quarters beginning on or after the date of the enactment of
this Act.
SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.

(a) STATE AGENCY ACTIVITIES.—Section 454 (42 U.S.C. 654)
is amended—
(1) in paragraph (14), by striking ‘‘(14)’’ and inserting
‘‘(14)(A)’’;
(2) by redesignating paragraph (15) as subparagraph (B)
of paragraph (14); and
(3) by inserting after paragraph (14) the following new
paragraph:
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and reports to
the Secretary on the State program operated under the
State plan approved under this part, including such
information as may be necessary to measure State compliance with Federal requirements for expedited procedures,
using such standards and procedures as are required by
the Secretary, under which the State agency will determine
the extent to which the program is operated in compliance
with this part; and
‘‘(B) a process of extracting from the automated data
processing system required by paragraph (16) and
transmitting to the Secretary data and calculations
concerning the levels of accomplishment (and rates of
improvement) with respect to applicable performance
indicators (including paternity establishment percentages)
to the extent necessary for purposes of sections 452(g)
and 458;’’.
(b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42 U.S.C. 652(a)(4))
is amended to read as follows:
‘‘(4)(A) review data and calculations transmitted by State
agencies pursuant to section 454(15)(B) on State program
accomplishments with respect to performance indicators for
purposes of subsection (g) of this section and section 458;
‘‘(B) review annual reports submitted pursuant to section
454(15)(A) and, as appropriate, provide to the State comments,
recommendations for additional or alternative corrective
actions, and technical assistance; and
‘‘(C) conduct audits, in accordance with the Government
auditing standards of the Comptroller General of the United
States—

42 USC 658 note.

42 USC 652 note.

110 STAT. 2234

42 USC 652 note.

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(i) at least once every 3 years (or more frequently,
in the case of a State which fails to meet the requirements
of this part concerning performance standards and reliability of program data) to assess the completeness, reliability,
and security of the data and the accuracy of the reporting
systems used in calculating performance indicators under
subsection (g) of this section and section 458;
‘‘(ii) of the adequacy of financial management of the
State program operated under the State plan approved
under this part, including assessments of—
‘‘(I) whether Federal and other funds made available to carry out the State program are being appropriately expended, and are properly and fully
accounted for; and
‘‘(II) whether collections and disbursements of support payments are carried out correctly and are fully
accounted for; and
‘‘(iii) for such other purposes as the Secretary may
find necessary;’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall be effective with respect to calendar quarters beginning 12
months or more after the date of the enactment of this Act.
SEC. 343. REQUIRED REPORTING PROCEDURES.

(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C. 652(a)(5)) is
amended by inserting ‘‘, and establish procedures to be followed
by States for collecting and reporting information required to be
provided under this part, and establish uniform definitions (including those necessary to enable the measurement of State compliance
with the requirements of this part relating to expedited processes)
to be applied in following such procedures’’ before the semicolon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by sections 301(b), 303(a), 312(a), 313(a), and 333
of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (28);
(2) by striking the period at the end of paragraph (29)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (29) the following new paragraph:
‘‘(30) provide that the State shall use the definitions established under section 452(a)(5) in collecting and reporting
information as required under this part.’’.
SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

(a) REVISED REQUIREMENTS.—
(1) IN GENERAL.—Section 454(16) (42 U.S.C. 654(16)) is
amended—
(A) by striking ‘‘, at the option of the State,’’;
(B) by inserting ‘‘and operation by the State agency’’
after ‘‘for the establishment’’;
(C) by inserting ‘‘meeting the requirements of section
454A’’ after ‘‘information retrieval system’’;
(D) by striking ‘‘in the State and localities thereof,
so as (A)’’ and inserting ‘‘so as’’;
(E) by striking ‘‘(i)’’; and
(F) by striking ‘‘(including’’ and all that follows and
inserting a semicolon.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2235

(2) AUTOMATED DATA PROCESSING.—Part D of title IV (42
U.S.C. 651–669) is amended by inserting after section 454
the following new section:
‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

‘‘(a) IN GENERAL.—In order for a State to meet the requirements
of this section, the State agency administering the State program
under this part shall have in operation a single statewide automated
data processing and information retrieval system which has the
capability to perform the tasks specified in this section with the
frequency and in the manner required by or under this part.
‘‘(b) PROGRAM MANAGEMENT.—The automated system required
by this section shall perform such functions as the Secretary may
specify relating to management of the State program under this
part, including—
‘‘(1) controlling and accounting for use of Federal, State,
and local funds in carrying out the program; and
‘‘(2) maintaining the data necessary to meet Federal reporting requirements under this part on a timely basis.
‘‘(c) CALCULATION OF PERFORMANCE INDICATORS.—In order to
enable the Secretary to determine the incentive payments and
penalty adjustments required by sections 452(g) and 458, the State
agency shall—
‘‘(1) use the automated system—
‘‘(A) to maintain the requisite data on State performance with respect to paternity establishment and child
support enforcement in the State; and
‘‘(B) to calculate the paternity establishment percentage for the State for each fiscal year; and
‘‘(2) have in place systems controls to ensure the completeness and reliability of, and ready access to, the data
described in paragraph (1)(A), and the accuracy of the calculations described in paragraph (1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The State agency
shall have in effect safeguards on the integrity, accuracy, and
completeness of, access to, and use of data in the automated system
required by this section, which shall include the following (in addition to such other safeguards as the Secretary may specify in
regulations):
‘‘(1) POLICIES RESTRICTING ACCESS.—Written policies
concerning access to data by State agency personnel, and sharing of data with other persons, which—
‘‘(A) permit access to and use of data only to the
extent necessary to carry out the State program under
this part; and
‘‘(B) specify the data which may be used for particular
program purposes, and the personnel permitted access to
such data.
‘‘(2) SYSTEMS CONTROLS.—Systems controls (such as passwords or blocking of fields) to ensure strict adherence to the
policies described in paragraph (1).
‘‘(3) MONITORING OF ACCESS.—Routine monitoring of access
to and use of the automated system, through methods such
as audit trails and feedback mechanisms, to guard against
and promptly identify unauthorized access or use.
‘‘(4) TRAINING AND INFORMATION.—Procedures to ensure
that all personnel (including State and local agency staff and

42 USC 654a.

110 STAT. 2236

42 USC 654a
note.

42 USC 655 note.

PUBLIC LAW 104–193—AUG. 22, 1996

contractors) who may have access to or be required to use
confidential program data are informed of applicable requirements and penalties (including those in section 6103 of the
Internal Revenue Code of 1986), and are adequately trained
in security procedures.
‘‘(5) PENALTIES.—Administrative penalties (up to and
including dismissal from employment) for unauthorized access
to, or disclosure or use of, confidential data.’’.
(3) REGULATIONS.—The Secretary of Health and Human
Services shall prescribe final regulations for implementation
of section 454A of the Social Security Act not later than 2
years after the date of the enactment of this Act.
(4) IMPLEMENTATION TIMETABLE.—Section 454(24) (42
U.S.C. 654(24)), as amended by section 303(a)(1) of this Act,
is amended to read as follows:
‘‘(24) provide that the State will have in effect an automated
data processing and information retrieval system—
‘‘(A) by October 1, 1997, which meets all requirements of this part which were enacted on or before the
date of enactment of the Family Support Act of 1988,
and
‘‘(B) by October 1, 2000, which meets all requirements of this part enacted on or before the date of the
enactment of the Personal Responsibility and Work Opportunity Act of 1996, except that such deadline shall be
extended by 1 day for each day (if any) by which the
Secretary fails to meet the deadline imposed by section
344(a)(3) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996;’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DEVELOPMENT COSTS
OF AUTOMATED SYSTEMS.—
(1) IN GENERAL.—Section 455(a) (42 U.S.C. 655(a)) is
amended—
(A) in paragraph (1)(B)—
(i) by striking ‘‘90 percent’’ and inserting ‘‘the percent specified in paragraph (3)’’;
(ii) by striking ‘‘so much of’’; and
(iii) by striking ‘‘which the Secretary’’ and all that
follows and inserting ‘‘, and’’; and
(B) by adding at the end the following new paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for each quarter
in fiscal years 1996 and 1997, 90 percent of so much of the State
expenditures described in paragraph (1)(B) as the Secretary finds
are for a system meeting the requirements specified in section
454(16) (as in effect on September 30, 1995) but limited to the
amount approved for States in the advance planning documents
of such States submitted on or before September 30, 1995.
‘‘(B)(i) The Secretary shall pay to each State, for each quarter
in fiscal years 1996 through 2001, the percentage specified in clause
(ii) of so much of the State expenditures described in paragraph
(1)(B) as the Secretary finds are for a system meeting the requirements of sections 454(16) and 454A.
‘‘(ii) The percentage specified in this clause is 80 percent.’’.
(2) TEMPORARY LIMITATION ON PAYMENTS UNDER SPECIAL
FEDERAL MATCHING RATE.—
(A) IN GENERAL.—The Secretary of Health and Human
Services may not pay more than $400,000,000 in the aggre-

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2237

gate under section 455(a)(3)(B) of the Social Security Act
for fiscal years 1996 through 2001.
(B) ALLOCATION OF LIMITATION AMONG STATES.—The
total amount payable to a State under section 455(a)(3)(B)
of such Act for fiscal years 1996 through 2001 shall not
exceed the limitation determined for the State by the Secretary of Health and Human Services in regulations.
(C) ALLOCATION FORMULA.—The regulations referred
to in subparagraph (B) shall prescribe a formula for allocating the amount specified in subparagraph (A) among States
with plans approved under part D of title IV of the Social
Security Act, which shall take into account—
(i) the relative size of State caseloads under such
part; and
(ii) the level of automation needed to meet the
automated data processing requirements of such part.
(c) CONFORMING AMENDMENT.—Section 123(c) of the Family
Support Act of 1988 (102 Stat. 2352; Public Law 100–485) is
repealed.
SEC. 345. TECHNICAL ASSISTANCE.

(a) FOR TRAINING OF FEDERAL AND STATE STAFF, RESEARCH
AND DEMONSTRATION PROGRAMS, AND SPECIAL PROJECTS OF
REGIONAL OR NATIONAL SIGNIFICANCE.—Section 452 (42 U.S.C. 652)
is amended by adding at the end the following new subsection:
‘‘(j) Out of any money in the Treasury of the United States
not otherwise appropriated, there is hereby appropriated to the
Secretary for each fiscal year an amount equal to 1 percent of
the total amount paid to the Federal Government pursuant to
section 457(a) during the immediately preceding fiscal year (as
determined on the basis of the most recent reliable data available
to the Secretary as of the end of the third calendar quarter following
the end of such preceding fiscal year), to cover costs incurred
by the Secretary for—
‘‘(1) information dissemination and technical assistance to
States, training of State and Federal staff, staffing studies,
and related activities needed to improve programs under this
part (including technical assistance concerning State automated
systems required by this part); and
‘‘(2) research, demonstration, and special projects of
regional or national significance relating to the operation of
State programs under this part.
The amount appropriated under this subsection shall remain available until expended.’’.
(b) OPERATION OF FEDERAL PARENT LOCATOR SERVICE.—Section
453 (42 U.S.C. 653), as amended by section 316 of this Act, is
amended by adding at the end the following new subsection:
‘‘(o) RECOVERY OF COSTS.—Out of any money in the Treasury
of the United States not otherwise appropriated, there is hereby
appropriated to the Secretary for each fiscal year an amount equal
to 2 percent of the total amount paid to the Federal Government
pursuant to section 457(a) during the immediately preceding fiscal
year (as determined on the basis of the most recent reliable data
available to the Secretary as of the end of the third calendar
quarter following the end of such preceding fiscal year), to cover
costs incurred by the Secretary for operation of the Federal Parent

42 USC 655, 655
note.

110 STAT. 2238

PUBLIC LAW 104–193—AUG. 22, 1996

Locator Service under this section, to the extent such costs are
not recovered through user fees.’’.
SEC. 346. REPORTS AND DATA COLLECTION BY THE SECRETARY.

(a) ANNUAL REPORT TO CONGRESS.—
(1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is
amended—
(A) by striking ‘‘this part;’’ and inserting ‘‘this part,
including—’’; and
(B) by adding at the end the following new clauses:
‘‘(i) the total amount of child support payments
collected as a result of services furnished during the
fiscal year to individuals receiving services under this
part;
‘‘(ii) the cost to the States and to the Federal
Government of so furnishing the services; and
‘‘(iii) the number of cases involving families—
‘‘(I) who became ineligible for assistance under
State programs funded under part A during a
month in the fiscal year; and
‘‘(II) with respect to whom a child support
payment was received in the month;’’.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is
amended—
(A) in the matter preceding clause (i)—
(i) by striking ‘‘with the data required under each
clause being separately stated for cases’’ and inserting
‘‘separately stated for cases’’;
(ii) by striking ‘‘cases where the child was formerly
receiving’’ and inserting ‘‘or formerly received’’;
(iii) by inserting ‘‘or 1912’’ after ‘‘471(a)(17)’’; and
(iv) by inserting ‘‘for’’ before ‘‘all other’’;
(B) in each of clauses (i) and (ii), by striking ‘‘, and
the total amount of such obligations’’;
(C) in clause (iii), by striking ‘‘described in’’ and all
that follows and inserting ‘‘in which support was collected
during the fiscal year;’’;
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause (vii), and
inserting after clause (iii) the following new clauses:
‘‘(iv) the total amount of support collected during
such fiscal year and distributed as current support;
‘‘(v) the total amount of support collected during
such fiscal year and distributed as arrearages;
‘‘(vi) the total amount of support due and unpaid
for all fiscal years; and’’.
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is
amended by striking ‘‘on the use of Federal courts and’’.
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended—
(A) in subparagraph (H), by striking ‘‘and’’;
(B) in subparagraph (I), by striking the period and
inserting ‘‘; and’’; and
(C) by inserting after subparagraph (I) the following
new subparagraph:
‘‘(J) compliance, by State, with the standards established pursuant to subsections (h) and (i).’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2239

(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended
by striking all that follows subparagraph (J), as added by
paragraph (4).
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall be effective with respect to fiscal year 1997 and succeeding
fiscal years.

Subtitle F—Establishment and
Modification of Support Orders
SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF
CHILD SUPPORT ORDERS.

Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read
as follows:
‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT ORDERS UPON
REQUEST.—
‘‘(A) 3-YEAR CYCLE.—
‘‘(i) IN GENERAL.—Procedures under which every
3 years (or such shorter cycle as the State may determine), upon the request of either parent, or, if there
is an assignment under part A, upon the request of
the State agency under the State plan or of either
parent, the State shall with respect to a support order
being enforced under this part, taking into account
the best interests of the child involved—
‘‘(I) review and, if appropriate, adjust the order
in accordance with the guidelines established
pursuant to section 467(a) if the amount of the
child support award under the order differs from
the amount that would be awarded in accordance
with the guidelines;
‘‘(II) apply a cost-of-living adjustment to the
order in accordance with a formula developed by
the State; or
‘‘(III) use automated methods (including automated comparisons with wage or State income tax
data) to identify orders eligible for review, conduct
the review, identify orders eligible for adjustment,
and apply the appropriate adjustment to the orders
eligible for adjustment under any threshold that
may be established by the State.
‘‘(ii) OPPORTUNITY TO REQUEST REVIEW OF ADJUSTMENT.—If the State elects to conduct the review under
subclause (II) or (III) of clause (i), procedures which
permit either party to contest the adjustment, within
30 days after the date of the notice of the adjustment,
by making a request for review and, if appropriate,
adjustment of the order in accordance with the child
support guidelines established pursuant to section
467(a).
‘‘(iii) NO PROOF OF CHANGE IN CIRCUMSTANCES
NECESSARY IN 3-YEAR CYCLE REVIEW.—Procedures
which provide that any adjustment under clause (i)
shall be made without a requirement for proof or showing of a change in circumstances.

110 STAT. 2240

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(B) PROOF OF SUBSTANTIAL CHANGE IN CIRCUMSTANCES
NECESSARY IN REQUEST FOR REVIEW OUTSIDE 3-YEAR
CYCLE.—Procedures under which, in the case of a request
for a review, and if appropriate, an adjustment outside
the 3-year cycle (or such shorter cycle as the State may
determine) under clause (i), the State shall review and,
if the requesting party demonstrates a substantial change
in circumstances, adjust the order in accordance with the
guidelines established pursuant to section 467(a).
‘‘(C) NOTICE OF RIGHT TO REVIEW.—Procedures which
require the State to provide notice not less than once
every 3 years to the parents subject to the order informing
the parents of their right to request the State to review
and, if appropriate, adjust the order pursuant to this paragraph. The notice may be included in the order.’’.

SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES
RELATING TO CHILD SUPPORT.

Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b)
is amended by adding at the end the following new paragraphs:
‘‘(4) In response to a request by the head of a State or local
child support enforcement agency (or a State or local government
official authorized by the head of such an agency), if the person
making the request certifies to the consumer reporting agency
that—
‘‘(A) the consumer report is needed for the purpose of
establishing an individual’s capacity to make child support
payments or determining the appropriate level of such payments;
‘‘(B) the paternity of the consumer for the child to which
the obligation relates has been established or acknowledged
by the consumer in accordance with State laws under which
the obligation arises (if required by those laws);
‘‘(C) the person has provided at least 10 days’ prior notice
to the consumer whose report is requested, by certified or
registered mail to the last known address of the consumer,
that the report will be requested; and
‘‘(D) the consumer report will be kept confidential, will
be used solely for a purpose described in subparagraph (A),
and will not be used in connection with any other civil, administrative, or criminal proceeding, or for any other purpose.
‘‘(5) To an agency administering a State plan under section
454 of the Social Security Act (42 U.S.C. 654) for use to set an
initial or modified child support award.’’.
SEC. 353. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING
FINANCIAL RECORDS TO STATE CHILD SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.

Part D of title IV (42 U.S.C. 651–669) is amended by adding
at the end the following:
44 USC 649s.

‘‘SEC. 469A. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING
FINANCIAL RECORDS TO STATE CHILD SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.

‘‘(a) IN GENERAL.—Notwithstanding any other provision of
Federal or State law, a financial institution shall not be liable
under any Federal or State law to any person for disclosing any
financial record of an individual to a State child support enforce-

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2241

ment agency attempting to establish, modify, or enforce a child
support obligation of such individual.
‘‘(b) PROHIBITION OF DISCLOSURE OF FINANCIAL RECORD
OBTAINED BY STATE CHILD SUPPORT ENFORCEMENT AGENCY.—A
State child support enforcement agency which obtains a financial
record of an individual from a financial institution pursuant to
subsection (a) may disclose such financial record only for the purpose of, and to the extent necessary in, establishing, modifying,
or enforcing a child support obligation of such individual.
‘‘(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLOSURE.—
‘‘(1) DISCLOSURE BY STATE OFFICER OR EMPLOYEE.—If any
person knowingly, or by reason of negligence, discloses a financial record of an individual in violation of subsection (b), such
individual may bring a civil action for damages against such
person in a district court of the United States.
‘‘(2) NO LIABILITY FOR GOOD FAITH BUT ERRONEOUS
INTERPRETATION.—No liability shall arise under this subsection
with respect to any disclosure which results from a good faith,
but erroneous, interpretation of subsection (b).
‘‘(3) DAMAGES.—In any action brought under paragraph
(1), upon a finding of liability on the part of the defendant,
the defendant shall be liable to the plaintiff in an amount
equal to the sum of—
‘‘(A) the greater of—
‘‘(i) $1,000 for each act of unauthorized disclosure
of a financial record with respect to which such defendant is found liable; or
‘‘(ii) the sum of—
‘‘(I) the actual damages sustained by the
plaintiff as a result of such unauthorized disclosure; plus
‘‘(II) in the case of a willful disclosure or a
disclosure which is the result of gross negligence,
punitive damages; plus
‘‘(B) the costs (including attorney’s fees) of the action.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) FINANCIAL INSTITUTION.—The term ‘financial institution’ means—
‘‘(A) a depository institution, as defined in section 3(c)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
‘‘(B) an institution-affiliated party, as defined in section
3(u) of such Act (12 U.S.C. 1813(u));
‘‘(C) any Federal credit union or State credit union,
as defined in section 101 of the Federal Credit Union
Act (12 U.S.C. 1752), including an institution-affiliated
party of such a credit union, as defined in section 206(r)
of such Act (12 U.S.C. 1786(r)); and
‘‘(D) any benefit association, insurance company, safe
deposit company, money-market mutual fund, or similar
entity authorized to do business in the State.
‘‘(2) FINANCIAL RECORD.—The term ‘financial record’ has
the meaning given such term in section 1101 of the Right
to Financial Privacy Act of 1978 (12 U.S.C. 3401).’’.

110 STAT. 2242

PUBLIC LAW 104–193—AUG. 22, 1996

Subtitle G—Enforcement of Support
Orders
SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

26 USC 6305
note.

(a) COLLECTION OF FEES.—Section 6305(a) of the Internal Revenue Code of 1986 (relating to collection of certain liability) is
amended—
(1) by striking ‘‘and’’ at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4)
and inserting ‘‘, and’’;
(3) by adding at the end the following new paragraph:
‘‘(5) no additional fee may be assessed for adjustments
to an amount previously certified pursuant to such section
452(b) with respect to the same obligor.’’; and
(4) by striking ‘‘Secretary of Health, Education, and Welfare’’ each place it appears and inserting ‘‘Secretary of Health
and Human Services’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall become effective October 1, 1997.
SEC.

362.

AUTHORITY TO
EMPLOYEES.

COLLECT

SUPPORT

FROM

FEDERAL

(a) CONSOLIDATION AND STREAMLINING OF AUTHORITIES.—Section 459 (42 U.S.C. 659) is amended to read as follows:
‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING, GARNISHMENT, AND SIMILAR PROCEEDINGS FOR
ENFORCEMENT OF CHILD SUPPORT AND ALIMONY
OBLIGATIONS.

‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Notwithstanding
any other provision of law (including section 207 of this Act and
section 5301 of title 38, United States Code), effective January
1, 1975, moneys (the entitlement to which is based upon remuneration for employment) due from, or payable by, the United States
or the District of Columbia (including any agency, subdivision,
or instrumentality thereof) to any individual, including members
of the Armed Forces of the United States, shall be subject, in
like manner and to the same extent as if the United States or
the District of Columbia were a private person, to withholding
in accordance with State law enacted pursuant to subsections (a)(1)
and (b) of section 466 and regulations of the Secretary under such
subsections, and to any other legal process brought, by a State
agency administering a program under a State plan approved under
this part or by an individual obligee, to enforce the legal obligation
of the individual to provide child support or alimony.
‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO PRIVATE PERSON.—With respect to notice to withhold income pursuant to subsection (a)(1) or (b) of section 466, or any other order or process
to enforce support obligations against an individual (if the order
or process contains or is accompanied by sufficient data to permit
prompt identification of the individual and the moneys involved),
each governmental entity specified in subsection (a) shall be subject
to the same requirements as would apply if the entity were a
private person, except as otherwise provided in this section.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2243

‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE OR
PROCESS—
‘‘(1) DESIGNATION OF AGENT.—The head of each agency
subject to this section shall—
‘‘(A) designate an agent or agents to receive orders
and accept service of process in matters relating to child
support or alimony; and
‘‘(B) annually publish in the Federal Register the designation of the agent or agents, identified by title or position, mailing address, and telephone number.
‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an agent designated pursuant to paragraph (1) of this subsection receives
notice pursuant to State procedures in effect pursuant to subsection (a)(1) or (b) of section 466, or is effectively served
with any order, process, or interrogatory, with respect to an
individual’s child support or alimony payment obligations, the
agent shall—
‘‘(A) as soon as possible (but not later than 15 days)
thereafter, send written notice of the notice or service
(together with a copy of the notice or service) to the individual at the duty station or last-known home address of
the individual;
‘‘(B) within 30 days (or such longer period as may
be prescribed by applicable State law) after receipt of a
notice pursuant to such State procedures, comply with all
applicable provisions of section 466; and
‘‘(C) within 30 days (or such longer period as may
be prescribed by applicable State law) after effective service
of any other such order, process, or interrogatory, respond
to the order, process, or interrogatory.
‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity specified
in subsection (a) receives notice or is served with process, as provided in this section, concerning amounts owed by an individual
to more than 1 person—
‘‘(1) support collection under section 466(b) must be given
priority over any other process, as provided in section 466(b)(7);
‘‘(2) allocation of moneys due or payable to an individual
among claimants under section 466(b) shall be governed by
section 466(b) and the regulations prescribed under such section; and
‘‘(3) such moneys as remain after compliance with paragraphs (1) and (2) shall be available to satisfy any other such
processes on a first-come, first-served basis, with any such
process being satisfied out of such moneys as remain after
the satisfaction of all such processes which have been previously
served.
‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A governmental
entity that is affected by legal process served for the enforcement
of an individual’s child support or alimony payment obligations
shall not be required to vary its normal pay and disbursement
cycle in order to comply with the legal process.
‘‘(f) RELIEF FROM LIABILITY.—
‘‘(1) Neither the United States, nor the government of the
District of Columbia, nor any disbursing officer shall be liable
with respect to any payment made from moneys due or payable
from the United States to any individual pursuant to legal
process regular on its face, if the payment is made in accordance

Federal Register,
publication.

110 STAT. 2244

PUBLIC LAW 104–193—AUG. 22, 1996

with this section and the regulations issued to carry out this
section.
‘‘(2) No Federal employee whose duties include taking
actions necessary to comply with the requirements of subsection
(a) with regard to any individual shall be subject under any
law to any disciplinary action or civil or criminal liability or
penalty for, or on account of, any disclosure of information
made by the employee in connection with the carrying out
of such actions.
‘‘(g) REGULATIONS.—Authority to promulgate regulations for the
implementation of this section shall, insofar as this section applies
to moneys due from (or payable by)—
‘‘(1) the United States (other than the legislative or judicial
branches of the Federal Government) or the government of
the District of Columbia, be vested in the President (or the
designee of the President);
‘‘(2) the legislative branch of the Federal Government, be
vested jointly in the President pro tempore of the Senate and
the Speaker of the House of Representatives (or their designees), and
‘‘(3) the judicial branch of the Federal Government, be
vested in the Chief Justice of the United States (or the designee
of the Chief Justice).
‘‘(h) MONEYS SUBJECT TO PROCESS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), moneys paid
or payable to an individual which are considered to be based
upon remuneration for employment, for purposes of this
section—
‘‘(A) consist of—
‘‘(i) compensation paid or payable for personal
services of the individual, whether the compensation
is denominated as wages, salary, commission, bonus,
pay, allowances, or otherwise (including severance pay,
sick pay, and incentive pay);
‘‘(ii) periodic benefits (including a periodic benefit
as defined in section 228(h)(3)) or other payments—
‘‘(I) under the insurance system established
by title II;
‘‘(II) under any other system or fund established by the United States which provides for
the payment of pensions, retirement or retired pay,
annuities, dependents’ or survivors’ benefits, or
similar amounts payable on account of personal
services performed by the individual or any other
individual;
‘‘(III) as compensation for death under any
Federal program;
‘‘(IV) under any Federal program established
to provide ‘black lung’ benefits; or
‘‘(V) by the Secretary of Veterans Affairs as
compensation for a service-connected disability
paid by the Secretary to a former member of the
Armed Forces who is in receipt of retired or
retainer pay if the former member has waived
a portion of the retired or retainer pay in order
to receive such compensation; and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2245

‘‘(iii) worker’s compensation benefits paid under
Federal or State law but
‘‘(B) do not include any payment—
‘‘(i) by way of reimbursement or otherwise, to
defray expenses incurred by the individual in carrying
out duties associated with the employment of the
individual; or
‘‘(ii) as allowances for members of the uniformed
services payable pursuant to chapter 7 of title 37,
United States Code, as prescribed by the Secretaries
concerned (defined by section 101(5) of such title) as
necessary for the efficient performance of duty.
‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In determining the
amount of any moneys due from, or payable by, the United
States to any individual, there shall be excluded amounts
which—
‘‘(A) are owed by the individual to the United States;
‘‘(B) are required by law to be, and are, deducted
from the remuneration or other payment involved, including Federal employment taxes, and fines and forfeitures
ordered by court-martial;
‘‘(C) are properly withheld for Federal, State, or local
income tax purposes, if the withholding of the amounts
is authorized or required by law and if amounts withheld
are not greater than would be the case if the individual
claimed all dependents to which he was entitled (the
withholding of additional amounts pursuant to section
3402(i) of the Internal Revenue Code of 1986 may be permitted only when the individual presents evidence of a
tax obligation which supports the additional withholding);
‘‘(D) are deducted as health insurance premiums;
‘‘(E) are deducted as normal retirement contributions
(not including amounts deducted for supplementary coverage); or
‘‘(F) are deducted as normal life insurance premiums
from salary or other remuneration for employment (not
including amounts deducted for supplementary coverage).
‘‘(i) DEFINITIONS.—For purposes of this section—
‘‘(1) UNITED STATES.—The term ‘United States’ includes
any department, agency, or instrumentality of the legislative,
judicial, or executive branch of the Federal Government, the
United States Postal Service, the Postal Rate Commission, any
Federal corporation created by an Act of Congress that is wholly
owned by the Federal Government, and the governments of
the territories and possessions of the United States.
‘‘(2) CHILD SUPPORT.—The term ‘child support’, when used
in reference to the legal obligations of an individual to provide
such support, means amounts required to be paid under a
judgment, decree, or order, whether temporary, final, or subject
to modification, issued by a court or an administrative agency
of competent jurisdiction, for the support and maintenance
of a child, including a child who has attained the age of majority
under the law of the issuing State, or a child and the parent
with whom the child is living, which provides for monetary
support, health care, arrearages or reimbursement, and which
may include other related costs and fees, interest and penalties,
income withholding, attorney’s fees, and other relief.

110 STAT. 2246

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(3) ALIMONY.—
‘‘(A) IN GENERAL.—The term ‘alimony’, when used in
reference to the legal obligations of an individual to provide
the same, means periodic payments of funds for the support
and maintenance of the spouse (or former spouse) of the
individual, and (subject to and in accordance with State
law) includes separate maintenance, alimony pendente lite,
maintenance, and spousal support, and includes attorney’s
fees, interest, and court costs when and to the extent
that the same are expressly made recoverable as such
pursuant to a decree, order, or judgment issued in accordance with applicable State law by a court of competent
jurisdiction.
‘‘(B) EXCEPTIONS.—Such term does not include—
‘‘(i) any child support; or
‘‘(ii) any payment or transfer of property or its
value by an individual to the spouse or a former spouse
of the individual in compliance with any community
property settlement, equitable distribution of property,
or other division of property between spouses or former
spouses.
‘‘(4) PRIVATE PERSON.—The term ‘private person’ means
a person who does not have sovereign or other special immunity
or privilege which causes the person not to be subject to legal
process.
‘‘(5) LEGAL PROCESS.—The term ‘legal process’ means any
writ, order, summons, or other similar process in the nature
of garnishment—
‘‘(A) which is issued by—
‘‘(i) a court or an administrative agency of competent jurisdiction in any State, territory, or possession
of the United States;
‘‘(ii) a court or an administrative agency of competent jurisdiction in any foreign country with which
the United States has entered into an agreement which
requires the United States to honor the process; or
‘‘(iii) an authorized official pursuant to an order
of such a court or an administrative agency of competent jurisdiction or pursuant to State or local law;
and
‘‘(B) which is directed to, and the purpose of which
is to compel, a governmental entity which holds moneys
which are otherwise payable to an individual to make
a payment from the moneys to another party in order
to satisfy a legal obligation of the individual to provide
child support or make alimony payments.’’.
(b) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV.—Sections 461 and 462 (42
U.S.C. 661 and 662) are repealed.
(2) TO TITLE 5, UNITED STATES CODE.—Section 5520a of
title 5, United States Code, is amended, in subsections (h)(2)
and (i), by striking ‘‘sections 459, 461, and 462 of the Social
Security Act (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘section 459 of the Social Security Act (42 U.S.C. 659)’’.
(c) MILITARY RETIRED AND RETAINER PAY.—
(1) DEFINITION OF COURT.—Section 1408(a)(1) of title 10,
United States Code, is amended—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2247

(A) by striking ‘‘and’’ at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph
(C) and inserting ‘‘; and’’; and
(C) by adding after subparagraph (C) the following
new subparagraph:
‘‘(D) any administrative or judicial tribunal of a State
competent to enter orders for support or maintenance
(including a State agency administering a program under
a State plan approved under part D of title IV of the
Social Security Act), and, for purposes of this subparagraph,
the term ‘State’ includes the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
and American Samoa.’’.
(2) DEFINITION OF COURT ORDER.—Section 1408(a)(2) of
such title is amended—
(A) by inserting ‘‘or a support order, as defined in
section 453(p) of the Social Security Act (42 U.S.C. 653(p)),’’
before ‘‘which—’’;
(B) in subparagraph (B)(i), by striking ‘‘(as defined
in section 462(b) of the Social Security Act (42 U.S.C.
662(b)))’’ and inserting ‘‘(as defined in section 459(i)(2) of
the Social Security Act (42 U.S.C. 659(i)(2)))’’; and
(C) in subparagraph (B)(ii), by striking ‘‘(as defined
in section 462(c) of the Social Security Act (42 U.S.C.
662(c)))’’ and inserting ‘‘(as defined in section 459(i)(3) of
the Social Security Act (42 U.S.C. 659(i)(3)))’’.
(3) PUBLIC PAYEE.—Section 1408(d) of such title is
amended—
(A) in the heading, by inserting ‘‘(OR FOR BENEFIT
OF)’’ before ‘‘SPOUSE OR’’; and
(B) in paragraph (1), in the first sentence, by inserting
‘‘(or for the benefit of such spouse or former spouse to
a State disbursement unit established pursuant to section
454B of the Social Security Act or other public payee designated by a State, in accordance with part D of title
IV of the Social Security Act, as directed by court order,
or as otherwise directed in accordance with such part D)’’
before ‘‘in an amount sufficient’’.
(4) RELATIONSHIP TO PART D OF TITLE IV.—Section 1408
of such title is amended by adding at the end the following
new subsection:
‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case involving an
order providing for payment of child support (as defined in section
459(i)(2) of the Social Security Act) by a member who has never
been married to the other parent of the child, the provisions of
this section shall not apply, and the case shall be subject to the
provisions of section 459 of such Act.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall become effective 6 months after the date of the enactment
of this Act.

42 USC 659 note.

SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF
MEMBERS OF THE ARMED FORCES.

(a) AVAILABILITY OF LOCATOR INFORMATION.—
(1) MAINTENANCE OF ADDRESS INFORMATION.—The Secretary of Defense shall establish a centralized personnel locator
service that includes the address of each member of the Armed

10 USC 113 note.

110 STAT. 2248

10 USC 704 note.

PUBLIC LAW 104–193—AUG. 22, 1996

Forces under the jurisdiction of the Secretary. Upon request
of the Secretary of Transportation, addresses for members of
the Coast Guard shall be included in the centralized personnel
locator service.
(2) TYPE OF ADDRESS.—
(A) RESIDENTIAL ADDRESS.—Except as provided in
subparagraph (B), the address for a member of the Armed
Forces shown in the locator service shall be the residential
address of that member.
(B) DUTY ADDRESS.—The address for a member of the
Armed Forces shown in the locator service shall be the
duty address of that member in the case of a member—
(i) who is permanently assigned overseas, to a
vessel, or to a routinely deployable unit; or
(ii) with respect to whom the Secretary concerned
makes a determination that the member’s residential
address should not be disclosed due to national security
or safety concerns.
(3) UPDATING OF LOCATOR INFORMATION.—Within 30 days
after a member listed in the locator service establishes a new
residential address (or a new duty address, in the case of
a member covered by paragraph (2)(B)), the Secretary concerned
shall update the locator service to indicate the new address
of the member.
(4) AVAILABILITY OF INFORMATION.—The Secretary of
Defense shall make information regarding the address of a
member of the Armed Forces listed in the locator service available, on request, to the Federal Parent Locator Service established under section 453 of the Social Security Act.
(b) FACILITATING GRANTING OF LEAVE FOR ATTENDANCE AT
HEARINGS.—
(1) REGULATIONS.—The Secretary of each military department, and the Secretary of Transportation with respect to the
Coast Guard when it is not operating as a service in the
Navy, shall prescribe regulations to facilitate the granting of
leave to a member of the Armed Forces under the jurisdiction
of that Secretary in a case in which—
(A) the leave is needed for the member to attend a
hearing described in paragraph (2);
(B) the member is not serving in or with a unit
deployed in a contingency operation (as defined in section
101 of title 10, United States Code); and
(C) the exigencies of military service (as determined
by the Secretary concerned) do not otherwise require that
such leave not be granted.
(2) COVERED HEARINGS.—Paragraph (1) applies to a hearing
that is conducted by a court or pursuant to an administrative
process established under State law, in connection with a civil
action—
(A) to determine whether a member of the Armed
Forces is a natural parent of a child; or
(B) to determine an obligation of a member of the
Armed Forces to provide child support.
(3) DEFINITIONS.—For purposes of this subsection—
(A) The term ‘‘court’’ has the meaning given that term
in section 1408(a) of title 10, United States Code.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2249

(B) The term ‘‘child support’’ has the meaning given
such term in section 459(i) of the Social Security Act (42
U.S.C. 659(i)).
(c) PAYMENT OF MILITARY RETIRED PAY IN COMPLIANCE WITH
CHILD SUPPORT ORDERS.—
(1) DATE OF CERTIFICATION OF COURT ORDER.—Section
1408 of title 10, United States Code, as amended by section
362(c)(4) of this Act, is amended—
(A) by redesignating subsections (i) and (j) as subsections (j) and (k), respectively; and
(B) by inserting after subsection (h) the following new
subsection:
‘‘(i) CERTIFICATION DATE.—It is not necessary that the
date of a certification of the authenticity or completeness of a
copy of a court order for child support received by the Secretary
concerned for the purposes of this section be recent in relation
to the date of receipt by the Secretary.’’.
(2) PAYMENTS CONSISTENT WITH ASSIGNMENTS OF RIGHTS
TO STATES.—Section 1408(d)(1) of such title is amended by
inserting after the first sentence the following new sentence:
‘‘In the case of a spouse or former spouse who, pursuant to
section 408(a)(3) of the Social Security Act (42 U.S.C. 608(a)(4)),
assigns to a State the rights of the spouse or former spouse
to receive support, the Secretary concerned may make the
child support payments referred to in the preceding sentence
to that State in amounts consistent with that assignment of
rights.’’.
(3) ARREARAGES OWED BY MEMBERS OF THE UNIFORMED
SERVICES.—Section 1408(d) of such title is amended by adding
at the end the following new paragraph:
‘‘(6) In the case of a court order for which effective service
is made on the Secretary concerned on or after the date of the
enactment of this paragraph and which provides for payments
from the disposable retired pay of a member to satisfy the amount
of child support set forth in the order, the authority provided
in paragraph (1) to make payments from the disposable retired
pay of a member to satisfy the amount of child support set forth
in a court order shall apply to payment of any amount of child
support arrearages set forth in that order as well as to amounts
of child support that currently become due.’’.
(4) PAYROLL DEDUCTIONS.—The Secretary of Defense shall
begin payroll deductions within 30 days after receiving notice
of withholding, or for the first pay period that begins after
such 30-day period.
SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.

Section 466 (42 U.S.C. 666), as amended by section 321 of
this Act, is amended by adding at the end the following new
subsection:
‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In order to
satisfy section 454(20)(A), each State must have in effect—
‘‘(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
‘‘(B) the Uniform Fraudulent Transfer Act of 1984; or
‘‘(C) another law, specifying indicia of fraud which create
a prima facie case that a debtor transferred income or property
to avoid payment to a child support creditor, which the

10 USC 1408
note.

110 STAT. 2250

PUBLIC LAW 104–193—AUG. 22, 1996
Secretary finds affords comparable rights to child support creditors; and
‘‘(2) procedures under which, in any case in which the
State knows of a transfer by a child support debtor with respect
to which such a prima facie case is established, the State
must—
‘‘(A) seek to void such transfer; or
‘‘(B) obtain a settlement in the best interests of the
child support creditor.’’.

SEC. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD
SUPPORT.

(a) IN GENERAL.—Section 466(a) (42 U.S.C. 666(a)), as amended
by sections 315, 317, and 323 of this Act, is amended by inserting
after paragraph (14) the following new paragraph:
‘‘(15) PROCEDURES TO ENSURE THAT PERSONS OWING PASTDUE SUPPORT WORK OR HAVE A PLAN FOR PAYMENT OF SUCH
SUPPORT.—
‘‘(A) IN GENERAL.—Procedures under which the State

has the authority, in any case in which an individual
owes past-due support with respect to a child receiving
assistance under a State program funded under part A,
to issue an order or to request that a court or an administrative process established pursuant to State law issue
an order that requires the individual to—
‘‘(i) pay such support in accordance with a plan
approved by the court, or, at the option of the State,
a plan approved by the State agency administering
the State program under this part; or
‘‘(ii) if the individual is subject to such a plan
and is not incapacitated, participate in such work
activities (as defined in section 407(d)) as the court,
or, at the option of the State, the State agency administering the State program under this part, deems
appropriate.
‘‘(B) PAST-DUE SUPPORT DEFINED.—For purposes of
subparagraph (A), the term ‘past-due support’ means the
amount of a delinquency, determined under a court order,
or an order of an administrative process established under
State law, for support and maintenance of a child, or of
a child and the parent with whom the child is living.’’.
(b) CONFORMING AMENDMENT.—The flush paragraph at the end
of section 466(a) (42 U.S.C. 666(a)) is amended by striking ‘‘and
(7)’’ and inserting ‘‘(7), and (15)’’.
SEC. 366. DEFINITION OF SUPPORT ORDER.

Section 453 (42 U.S.C. 653) as amended by sections 316 and
345(b) of this Act, is amended by adding at the end the following
new subsection:
‘‘(p) SUPPORT ORDER DEFINED.—As used in this part, the term
‘support order’ means a judgment, decree, or order, whether temporary, final, or subject to modification, issued by a court or an
administrative agency of competent jurisdiction, for the support
and maintenance of a child, including a child who has attained
the age of majority under the law of the issuing State, or a child
and the parent with whom the child is living, which provides
for monetary support, health care, arrearages, or reimbursement,

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2251

and which may include related costs and fees, interest and penalties,
income withholding, attorneys’ fees, and other relief.’’.
SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as
follows:
‘‘(7) REPORTING ARREARAGES TO CREDIT BUREAUS.—
‘‘(A) IN GENERAL.—Procedures (subject to safeguards
pursuant to subparagraph (B)) requiring the State to report
periodically to consumer reporting agencies (as defined in
section 603(f) of the Fair Credit Reporting Act (15 U.S.C.
1681a(f)) the name of any noncustodial parent who is delinquent in the payment of support, and the amount of overdue support owed by such parent.
‘‘(B) SAFEGUARDS.—Procedures ensuring that, in carrying out subparagraph (A), information with respect to a
noncustodial parent is reported—
‘‘(i) only after such parent has been afforded all
due process required under State law, including notice
and a reasonable opportunity to contest the accuracy
of such information; and
‘‘(ii) only to an entity that has furnished evidence
satisfactory to the State that the entity is a consumer
reporting agency (as so defined).’’.
SEC. 368. LIENS.

Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read
as follows:
‘‘(4) LIENS.—Procedures under which—
‘‘(A) liens arise by operation of law against real and
personal property for amounts of overdue support owed
by a noncustodial parent who resides or owns property
in the State; and
‘‘(B) the State accords full faith and credit to liens
described in subparagraph (A) arising in another State,
when the State agency, party, or other entity seeking to
enforce such a lien complies with the procedural rules
relating to recording or serving liens that arise within
the State, except that such rules may not require judicial
notice or hearing prior to the enforcement of such a lien.’’.
SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,
317, 323, and 365 of this Act, is amended by inserting after paragraph (15) the following:
‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND LICENSES.—
Procedures under which the State has (and uses in appropriate
cases) authority to withhold or suspend, or to restrict the use
of driver’s licenses, professional and occupational licenses, and
recreational licenses of individuals owing overdue support or
failing, after receiving appropriate notice, to comply with
subpoenas or warrants relating to paternity or child support
proceedings.’’.
SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD
SUPPORT.

(a) HHS CERTIFICATION PROCEDURE.—

110 STAT. 2252

42 USC 652 note.

PUBLIC LAW 104–193—AUG. 22, 1996

(1) SECRETARIAL RESPONSIBILITY.—Section 452 (42 U.S.C.
652), as amended by section 345 of this Act, is amended by
adding at the end the following new subsection:
‘‘(k)(1) If the Secretary receives a certification by a State agency
in accordance with the requirements of section 454(31) that an
individual owes arrearages of child support in an amount exceeding
$5,000, the Secretary shall transmit such certification to the Secretary of State for action (with respect to denial, revocation, or
limitation of passports) pursuant to paragraph (2).
‘‘(2) The Secretary of State shall, upon certification by the
Secretary transmitted under paragraph (1), refuse to issue a passport to such individual, and may revoke, restrict, or limit a passport
issued previously to such individual.
‘‘(3) The Secretary and the Secretary of State shall not be
liable to an individual for any action with respect to a certification
by a State agency under this section.’’.
(2) STATE AGENCY RESPONSIBILITY.—Section 454 (42 U.S.C.
654), as amended by sections 301(b), 303(a), 312(b), 313(a),
333, and 343(b) of this Act, is amended—
(A) by striking ‘‘and’’ at the end of paragraph (29);
(B) by striking the period at the end of paragraph
(30) and inserting ‘‘; and’’; and
(C) by adding after paragraph (30) the following new
paragraph:
‘‘(31) provide that the State agency will have in effect
a procedure for certifying to the Secretary, for purposes of
the procedure under section 452(k), determinations that individuals owe arrearages of child support in an amount exceeding
$5,000, under which procedure—
‘‘(A) each individual concerned is afforded notice of
such determination and the consequences thereof, and an
opportunity to contest the determination; and
‘‘(B) the certification by the State agency is furnished
to the Secretary in such format, and accompanied by such
supporting documentation, as the Secretary may require.’’.
(b) EFFECTIVE DATE.—This section and the amendments made
by this section shall become effective October 1, 1997.
SEC. 371. INTERNATIONAL SUPPORT ENFORCEMENT.

(a) AUTHORITY FOR INTERNATIONAL AGREEMENTS.—Part D of
title IV, as amended by section 362(a) of this Act, is amended
by adding after section 459 the following new section:
42 USC 659a.

‘‘SEC. 459A. INTERNATIONAL SUPPORT ENFORCEMENT.

‘‘(a) AUTHORITY FOR DECLARATIONS.—
‘‘(1) DECLARATION.—The Secretary of State, with the
concurrence of the Secretary of Health and Human Services,
is authorized to declare any foreign country (or a political
subdivision thereof) to be a foreign reciprocating country if
the foreign country has established, or undertakes to establish,
procedures for the establishment and enforcement of duties
of support owed to obligees who are residents of the United
States, and such procedures are substantially in conformity
with the standards prescribed under subsection (b).
‘‘(2) REVOCATION.—A declaration with respect to a foreign
country made pursuant to paragraph (1) may be revoked if
the Secretaries of State and Health and Human Services determine that—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2253

‘‘(A) the procedures established by the foreign country
regarding the establishment and enforcement of duties of
support have been so changed, or the foreign country’s
implementation of such procedures is so unsatisfactory,
that such procedures do not meet the criteria for such
a declaration; or
‘‘(B) continued operation of the declaration is not
consistent with the purposes of this part.
‘‘(3) FORM OF DECLARATION.—A declaration under paragraph (1) may be made in the form of an international agreement, in connection with an international agreement or corresponding foreign declaration, or on a unilateral basis.
‘‘(b) STANDARDS FOR FOREIGN SUPPORT ENFORCEMENT
PROCEDURES.—
‘‘(1) MANDATORY ELEMENTS.—Support enforcement procedures of a foreign country which may be the subject of a
declaration pursuant to subsection (a)(1) shall include the following elements:
‘‘(A) The foreign country (or political subdivision
thereof) has in effect procedures, available to residents
of the United States—
‘‘(i) for establishment of paternity, and for
establishment of orders of support for children and
custodial parents; and
‘‘(ii) for enforcement of orders to provide support
to children and custodial parents, including procedures
for collection and appropriate distribution of support
payments under such orders.
‘‘(B) The procedures described in subparagraph (A),
including legal and administrative assistance, are provided
to residents of the United States at no cost.
‘‘(C) An agency of the foreign country is designated
as a Central Authority responsible for—
‘‘(i) facilitating support enforcement in cases
involving residents of the foreign country and residents
of the United States; and
‘‘(ii) ensuring compliance with the standards established pursuant to this subsection.
‘‘(2) ADDITIONAL ELEMENTS.—The Secretary of Health and
Human Services and the Secretary of State, in consultation
with the States, may establish such additional standards as
may be considered necessary to further the purposes of this
section.
‘‘(c) DESIGNATION OF UNITED STATES CENTRAL AUTHORITY.—
It shall be the responsibility of the Secretary of Health and Human
Services to facilitate support enforcement in cases involving residents of the United States and residents of foreign countries that
are the subject of a declaration under this section, by activities
including—
‘‘(1) development of uniform forms and procedures for use
in such cases;
‘‘(2) notification of foreign reciprocating countries of the
State of residence of individuals sought for support enforcement
purposes, on the basis of information provided by the Federal
Parent Locator Service; and
‘‘(3) such other oversight, assistance, and coordination
activities as the Secretary may find necessary and appropriate.

110 STAT. 2254

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(d) EFFECT ON OTHER LAWS.—States may enter into reciprocal
arrangements for the establishment and enforcement of support
obligations with foreign countries that are not the subject of a
declaration pursuant to subsection (a), to the extent consistent
with Federal law.’’.
(b) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by sections 301(b), 303(a), 312(b), 313(a), 333, 343(b),
and 370(a)(2) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (30);
(2) by striking the period at the end of paragraph (31)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (31) the following new paragraph:
‘‘(32)(A) provide that any request for services under this
part by a foreign reciprocating country or a foreign country
with which the State has an arrangement described in section
459A(d)(2) shall be treated as a request by a State;
‘‘(B) provide, at State option, notwithstanding paragraph
(4) or any other provision of this part, for services under the
plan for enforcement of a spousal support order not described
in paragraph (4)(B) entered by such a country (or subdivision);
and
‘‘(C) provide that no applications will be required from,
and no costs will be assessed for such services against, the
foreign reciprocating country or foreign obligee (but costs may
at State option be assessed against the obligor).’’.
SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.

Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,
317, 323, 365, and 369 of this Act, is amended by inserting after
paragraph (16) the following new paragraph:
‘‘(17) FINANCIAL INSTITUTION DATA MATCHES.—
‘‘(A) IN GENERAL.—Procedures under which the State
agency shall enter into agreements with financial institutions doing business in the State—
‘‘(i) to develop and operate, in coordination with
such financial institutions, a data match system, using
automated data exchanges to the maximum extent feasible, in which each such financial institution is
required to provide for each calendar quarter the name,
record address, social security number or other taxpayer identification number, and other identifying
information for each noncustodial parent who maintains an account at such institution and who owes
past-due support, as identified by the State by name
and social security number or other taxpayer identification number; and
‘‘(ii) in response to a notice of lien or levy, encumber or surrender, as the case may be, assets held
by such institution on behalf of any noncustodial parent
who is subject to a child support lien pursuant to
paragraph (4).
‘‘(B) REASONABLE FEES.—The State agency may pay
a reasonable fee to a financial institution for conducting
the data match provided for in subparagraph (A)(i), not
to exceed the actual costs incurred by such financial
institution.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2255

‘‘(C) LIABILITY.—A financial institution shall not be
liable under any Federal or State law to any person—
‘‘(i) for any disclosure of information to the State
agency under subparagraph (A)(i);
‘‘(ii) for encumbering or surrendering any assets
held by such financial institution in response to a
notice of lien or levy issued by the State agency as
provided for in subparagraph (A)(ii); or
‘‘(iii) for any other action taken in good faith to
comply with the requirements of subparagraph (A).
‘‘(D) DEFINITIONS.—For purposes of this paragraph—
‘‘(i) FINANCIAL INSTITUTION.—The term ‘financial
institution’ has the meaning given to such term by
section 469A(d)(1).
‘‘(ii) ACCOUNT.—The term ‘account’ means a
demand deposit account, checking or negotiable withdrawal order account, savings account, time deposit
account, or money-market mutual fund account.’’.
SEC.

373.

ENFORCEMENT OF ORDERS AGAINST PATERNAL OR
MATERNAL GRANDPARENTS IN CASES OF MINOR
PARENTS.

Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,
317, 323, 365, 369, and 372 of this Act, is amended by inserting
after paragraph (17) the following new paragraph:
‘‘(18) ENFORCEMENT OF ORDERS AGAINST PATERNAL OR
MATERNAL GRANDPARENTS.—Procedures under which, at the
State’s option, any child support order enforced under this
part with respect to a child of minor parents, if the custodial
parent of such child is receiving assistance under the State
program under part A, shall be enforceable, jointly and severally, against the parents of the noncustodial parent of such
child.’’.
SEC. 374. NONDISCHARGEABILITY IN BANKRUPTCY OF CERTAIN
DEBTS FOR THE SUPPORT OF A CHILD.

(a) AMENDMENT TO TITLE 11 OF THE UNITED STATES CODE.—
Section 523(a) of title 11, United States Code, is amended—
(1) by striking ‘‘or’’ at the end of paragraph (16);
(2) by striking the period at the end of paragraph (17)
and inserting ‘‘; or’’;
(3) by adding at the end the following:
‘‘(18) owed under State law to a State or municipality
that is—
‘‘(A) in the nature of support, and
‘‘(B) enforceable under part D of title IV of the Social
Security Act (42 U.S.C. 601 et seq.).’’; and
(4) in paragraph (5), by striking ‘‘section 402(a)(26)’’ and
inserting ‘‘section 408(a)(3)’’.
(b) AMENDMENT TO THE SOCIAL SECURITY ACT.—Section 456(b)
(42 U.S.C. 656(b)) is amended to read as follows:
‘‘(b) NONDISCHARGEABILITY.—A debt (as defined in section 101
of title 11 of the United States Code) owed under State law to
a State (as defined in such section) or municipality (as defined
in such section) that is in the nature of support and that is enforceable under this part is not released by a discharge in bankruptcy
under title 11 of the United States Code.’’.

110 STAT. 2256
11 USC 523 note.

PUBLIC LAW 104–193—AUG. 22, 1996

(c) APPLICATION OF AMENDMENTS.—The amendments made by
this section shall apply only with respect to cases commenced under
title 11 of the United States Code after the date of the enactment
of this Act.
SEC. 375. CHILD SUPPORT ENFORCEMENT FOR INDIAN TRIBES.

(a) CHILD SUPPORT ENFORCEMENT AGREEMENTS.—Section 454
(42 U.S.C. 654), as amended by sections 301(b), 303(a), 312(b),
313(a), 333, 343(b), 370(a)(2), and 371(b) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (31);
(2) by striking the period at the end of paragraph (32)
and inserting ‘‘; and’’;
(3) by adding after paragraph (32) the following new paragraph:
‘‘(33) provide that a State that receives funding pursuant
to section 428 and that has within its borders Indian country
(as defined in section 1151 of title 18, United States Code)
may enter into cooperative agreements with an Indian tribe
or tribal organization (as defined in subsections (e) and (l)
of section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)), if the Indian tribe or tribal
organization demonstrates that such tribe or organization has
an established tribal court system or a Court of Indian Offenses
with the authority to establish paternity, establish, modify,
and enforce support orders, and to enter support orders in
accordance with child support guidelines established by such
tribe or organization, under which the State and tribe or
organization shall provide for the cooperative delivery of child
support enforcement services in Indian country and for the
forwarding of all funding collected pursuant to the functions
performed by the tribe or organization to the State agency,
or conversely, by the State agency to the tribe or organization,
which shall distribute such funding in accordance with such
agreement.’’; and
(4) by adding at the end the following new sentence: ‘‘Nothing in paragraph (33) shall void any provision of any cooperative
agreement entered into before the date of the enactment of
such paragraph, nor shall such paragraph deprive any State
of jurisdiction over Indian country (as so defined) that is lawfully exercised under section 402 of the Act entitled ‘An Act
to prescribe penalties for certain acts of violence or intimidation,
and for other purposes’, approved April 11, 1968 (25 U.S.C.
1322).’’.
(b) DIRECT FEDERAL FUNDING TO INDIAN TRIBES AND TRIBAL
ORGANIZATIONS.—Section 455 (42 U.S.C. 655) is amended by adding
at the end the following new subsection:
‘‘(b) The Secretary may, in appropriate cases, make direct payments under this part to an Indian tribe or tribal organization
which has an approved child support enforcement plan under this
title. In determining whether such payments are appropriate, the
Secretary shall, at a minimum, consider whether services are being
provided to eligible Indian recipients by the State agency through
an agreement entered into pursuant to section 454(34).’’.
(c) COOPERATIVE ENFORCEMENT AGREEMENTS.—Paragraph (7)
of section 454 (42 U.S.C. 654) is amended by inserting ‘‘and Indian
tribes or tribal organizations (as defined in subsections (e) and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2257

(l) of section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b))’’ after ‘‘law enforcement officials’’.
(d) CONFORMING AMENDMENT.—Subsection (c) of section 428
(42 U.S.C. 628) is amended to read as follows:
‘‘(c) For purposes of this section, the terms ‘Indian tribe’ and
‘tribal organization’ shall have the meanings given such terms
by subsections (e) and (l) of section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b), respectively.’’.

Native
Americans.

Subtitle H—Medical Support
SEC. 381. CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD
SUPPORT ORDER.

(a) IN GENERAL.—Section 609(a)(2)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is
amended—
(1) by striking ‘‘issued by a court of competent jurisdiction’’;
(2) by striking the period at the end of clause (ii) and
inserting a comma; and
(3) by adding, after and below clause (ii), the following:
‘‘if such judgment, decree, or order (I) is issued by a court
of competent jurisdiction or (II) is issued through an
administrative process established under State law and
has the force and effect of law under applicable State
law.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
(2) PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1,
1997.—Any amendment to a plan required to be made by an
amendment made by this section shall not be required to be
made before the 1st plan year beginning on or after January
1, 1997, if—
(A) during the period after the date before the date
of the enactment of this Act and before such 1st plan
year, the plan is operated in accordance with the requirements of the amendments made by this section; and
(B) such plan amendment applies retroactively to the
period after the date before the date of the enactment
of this Act and before such 1st plan year.
A plan shall not be treated as failing to be operated in accordance with the provisions of the plan merely because it operates
in accordance with this paragraph.
SEC. 382. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.

Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,
317, 323, 365, 369, 372, and 373 of this Act, is amended by inserting
after paragraph (18) the following new paragraph:
‘‘(19) HEALTH CARE COVERAGE.—Procedures under which
all child support orders enforced pursuant to this part shall
include a provision for the health care coverage of the child,
and in the case in which a noncustodial parent provides such
coverage and changes employment, and the new employer provides health care coverage, the State agency shall transfer
notice of the provision to the employer, which notice shall

29 USC 1169
note.

110 STAT. 2258

PUBLIC LAW 104–193—AUG. 22, 1996
operate to enroll the child in the noncustodial parent’s health
plan, unless the noncustodial parent contests the notice.’’.

Subtitle I—Enhancing Responsibility and
Opportunity for Non-Residential Parents
SEC. 391. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

Part D of title IV (42 U.S.C. 651–669), as amended by section
353 of this Act, is amended by adding at the end the following
new section:
42 USC 669B.

‘‘SEC. 469B. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

‘‘(a) IN GENERAL.—The Administration for Children and Families shall make grants under this section to enable States to establish and administer programs to support and facilitate noncustodial
parents’ access to and visitation of their children, by means of
activities including mediation (both voluntary and mandatory),
counseling, education, development of parenting plans, visitation
enforcement (including monitoring, supervision and neutral dropoff and pickup), and development of guidelines for visitation and
alternative custody arrangements.
‘‘(b) AMOUNT OF GRANT.—The amount of the grant to be made
to a State under this section for a fiscal year shall be an amount
equal to the lesser of—
‘‘(1) 90 percent of State expenditures during the fiscal
year for activities described in subsection (a); or
‘‘(2) the allotment of the State under subsection (c) for
the fiscal year.
‘‘(c) ALLOTMENTS TO STATES.—
‘‘(1) IN GENERAL.—The allotment of a State for a fiscal
year is the amount that bears the same ratio to $10,000,000
for grants under this section for the fiscal year as the number
of children in the State living with only 1 biological parent
bears to the total number of such children in all States.
‘‘(2) MINIMUM ALLOTMENT.—The Administration for Children and Families shall adjust allotments to States under paragraph (1) as necessary to ensure that no State is allotted
less than—
‘‘(A) $50,000 for fiscal year 1997 or 1998; or
‘‘(B) $100,000 for any succeeding fiscal year.
‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES FOR SIMILAR
ACTIVITIES.—A State to which a grant is made under this section
may not use the grant to supplant expenditures by the State for
activities specified in subsection (a), but shall use the grant to
supplement such expenditures at a level at least equal to the
level of such expenditures for fiscal year 1995.
‘‘(e) STATE ADMINISTRATION.—Each State to which a grant is
made under this section—
‘‘(1) may administer State programs funded with the grant,
directly or through grants to or contracts with courts, local
public agencies, or nonprofit private entities;
‘‘(2) shall not be required to operate such programs on
a statewide basis; and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2259

‘‘(3) shall monitor, evaluate, and report on such programs
in accordance with regulations prescribed by the Secretary.’’.

Subtitle J—Effective Dates and
Conforming Amendments
SEC. 395. EFFECTIVE DATES AND CONFORMING AMENDMENTS.

(a) IN GENERAL.—Except as otherwise specifically provided (but
subject to subsections (b) and (c))—
(1) the provisions of this title requiring the enactment
or amendment of State laws under section 466 of the Social
Security Act, or revision of State plans under section 454 of
such Act, shall be effective with respect to periods beginning
on and after October 1, 1996; and
(2) all other provisions of this title shall become effective
upon the date of the enactment of this Act.
(b) GRACE PERIOD FOR STATE LAW CHANGES.—The provisions
of this title shall become effective with respect to a State on the
later of—
(1) the date specified in this title, or
(2) the effective date of laws enacted by the legislature
of such State implementing such provisions,
but in no event later than the 1st day of the 1st calendar quarter
beginning after the close of the 1st regular session of the State
legislature that begins after the date of the enactment of this
Act. For purposes of the previous sentence, in the case of a State
that has a 2-year legislative session, each year of such session
shall be deemed to be a separate regular session of the State
legislature.
(c) GRACE PERIOD FOR STATE CONSTITUTIONAL AMENDMENT.—
A State shall not be found out of compliance with any requirement
enacted by this title if the State is unable to so comply without
amending the State constitution until the earlier of—
(1) 1 year after the effective date of the necessary State
constitutional amendment; or
(2) 5 years after the date of the enactment of this Act.
(d) CONFORMING AMENDMENTS.—
(1) The following provisions are amended by striking
‘‘absent’’ each place it appears and inserting ‘‘noncustodial’’:
(A) Section 451 (42 U.S.C. 651).
(B) Subsections (a)(1), (a)(8), (a)(10)(E), (a)(10)(F), (f),
and (h) of section 452 (42 U.S.C. 652).
(C) Section 453(f) (42 U.S.C. 653(f)).
(D) Paragraphs (8), (13), and (21)(A) of section 454
(42 U.S.C. 654).
(E) Section 455(e)(1) (42 U.S.C. 655(e)(1)).
(F) Section 458(a) (42 U.S.C. 658(a)).
(G) Subsections (a), (b), and (c) of section 463
(42 U.S.C. 663).
(H) Subsections (a)(3)(A), (a)(3)(C), (a)(6), and
(a)(8)(B)(ii), the last sentence of subsection (a), and subsections (b)(1), (b)(3)(B), (b)(3)(B)(i), (b)(6)(A)(i), (b)(9), and
(e) of section 466 (42 U.S.C. 666).
(2) The following provisions are amended by striking ‘‘an
absent’’ each place it appears and inserting ‘‘a noncustodial’’:

42 USC 654 note.

42 USC 654 note.

42 USC 654 note.

110 STAT. 2260

PUBLIC LAW 104–193—AUG. 22, 1996
(A) Paragraphs (2) and (3) of section 453(c)
(42 U.S.C. 653(c)).
(B) Subparagraphs (B) and (C) of section 454(9) (42
U.S.C. 654(9)).
(C) Section 456(a)(3) (42 U.S.C. 656(a)(3)).
(D) Subsections (a)(3)(A), (a)(6), (a)(8)(B)(i), (b)(3)(A),
and (b)(3)(B) of section 466 (42 U.S.C. 666).
(E) Paragraphs (2) and (4) of section 469(b) (42 U.S.C.
669(b)).

TITLE IV—RESTRICTING WELFARE AND
PUBLIC BENEFITS FOR ALIENS
8 USC 1601.

SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE
AND IMMIGRATION.

The Congress makes the following statements concerning
national policy with respect to welfare and immigration:
(1) Self-sufficiency has been a basic principle of United
States immigration law since this country’s earliest immigration statutes.
(2) It continues to be the immigration policy of the United
States that—
(A) aliens within the Nation’s borders not depend on
public resources to meet their needs, but rather rely
on their own capabilities and the resources of their families,
their sponsors, and private organizations, and
(B) the availability of public benefits not constitute
an incentive for immigration to the United States.
(3) Despite the principle of self-sufficiency, aliens have
been applying for and receiving public benefits from Federal,
State, and local governments at increasing rates.
(4) Current eligibility rules for public assistance and
unenforceable financial support agreements have proved wholly
incapable of assuring that individual aliens not burden the
public benefits system.
(5) It is a compelling government interest to enact new
rules for eligibility and sponsorship agreements in order to
assure that aliens be self-reliant in accordance with national
immigration policy.
(6) It is a compelling government interest to remove the
incentive for illegal immigration provided by the availability
of public benefits.
(7) With respect to the State authority to make determinations concerning the eligibility of qualified aliens for public
benefits in this title, a State that chooses to follow the Federal
classification in determining the eligibility of such aliens for
public assistance shall be considered to have chosen the least
restrictive means available for achieving the compelling governmental interest of assuring that aliens be self-reliant in accordance with national immigration policy.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2261

Subtitle A—Eligibility for Federal Benefits
SEC. 401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR
FEDERAL PUBLIC BENEFITS.

(a) IN GENERAL.—Notwithstanding any other provision of law
and except as provided in subsection (b), an alien who is not
a qualified alien (as defined in section 431) is not eligible for
any Federal public benefit (as defined in subsection (c)).
(b) EXCEPTIONS.—
(1) Subsection (a) shall not apply with respect to the following Federal public benefits:
(A) Medical assistance under title XIX of the Social
Security Act (or any successor program to such title) for
care and services that are necessary for the treatment
of an emergency medical condition (as defined in section
1903(v)(3) of such Act) of the alien involved and are not
related to an organ transplant procedure, if the alien
involved otherwise meets the eligibility requirements for
medical assistance under the State plan approved under
such title (other than the requirement of the receipt of
aid or assistance under title IV of such Act, supplemental
security income benefits under title XVI of such Act, or
a State supplementary payment).
(B) Short-term, non-cash, in-kind emergency disaster
relief.
(C) Public health assistance (not including any assistance under title XIX of the Social Security Act) for
immunizations with respect to immunizable diseases and
for testing and treatment of symptoms of communicable
diseases whether or not such symptoms are caused by
a communicable disease.
(D) Programs, services, or assistance (such as soup
kitchens, crisis counseling and intervention, and short-term
shelter) specified by the Attorney General, in the Attorney
General’s sole and unreviewable discretion after consultation with appropriate Federal agencies and departments,
which (i) deliver in-kind services at the community level,
including through public or private nonprofit agencies; (ii)
do not condition the provision of assistance, the amount
of assistance provided, or the cost of assistance provided
on the individual recipient’s income or resources; and (iii)
are necessary for the protection of life or safety.
(E) Programs for housing or community development
assistance or financial assistance administered by the Secretary of Housing and Urban Development, any program
under title V of the Housing Act of 1949, or any assistance
under section 306C of the Consolidated Farm and Rural
Development Act, to the extent that the alien is receiving
such a benefit on the date of the enactment of this Act.
(2) Subsection (a) shall not apply to any benefit payable
under title II of the Social Security Act to an alien who is
lawfully present in the United States as determined by the
Attorney General, to any benefit if nonpayment of such benefit
would contravene an international agreement described in section 233 of the Social Security Act, to any benefit if nonpayment
would be contrary to section 202(t) of the Social Security Act,

8 USC 1611.

110 STAT. 2262

PUBLIC LAW 104–193—AUG. 22, 1996
or to any benefit payable under title II of the Social Security
Act to which entitlement is based on an application filed in
or before the month in which this Act becomes law.
(c) FEDERAL PUBLIC BENEFIT DEFINED.—
(1) Except as provided in paragraph (2), for purposes of
this title the term ‘‘Federal public benefit’’ means—
(A) any grant, contract, loan, professional license, or
commercial license provided by an agency of the United
States or by appropriated funds of the United States; and
(B) any retirement, welfare, health, disability, public
or assisted housing, postsecondary education, food assistance, unemployment benefit, or any other similar benefit
for which payments or assistance are provided to an
individual, household, or family eligibility unit by an
agency of the United States or by appropriated funds of
the United States.
(2) Such term shall not apply—
(A) to any contract, professional license, or commercial
license for a nonimmigrant whose visa for entry is related
to such employment in the United States; or
(B) with respect to benefits for an alien who as a
work authorized nonimmigrant or as an alien lawfully
admitted for permanent residence under the Immigration
and Nationality Act qualified for such benefits and for
whom the United States under reciprocal treaty agreements is required to pay benefits, as determined by the
Attorney General, after consultation with the Secretary
of State.

8 USC 1612.

SEC. 402. LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR CERTAIN
FEDERAL PROGRAMS.

(a) LIMITED ELIGIBILITY FOR SPECIFIED FEDERAL PROGRAMS.—
(1) IN GENERAL.—Notwithstanding any other provision of
law and except as provided in paragraph (2), an alien who
is a qualified alien (as defined in section 431) is not eligible
for any specified Federal program (as defined in paragraph (3)).
(2) EXCEPTIONS.—
(A) TIME-LIMITED EXCEPTION FOR REFUGEES AND
ASYLEES.—Paragraph (1) shall not apply to an alien until
5 years after the date—
(i) an alien is admitted to the United States as
a refugee under section 207 of the Immigration and
Nationality Act;
(ii) an alien is granted asylum under section 208
of such Act; or
(iii) an alien’s deportation is withheld under section 243(h) of such Act.
(B) CERTAIN PERMANENT RESIDENT ALIENS.—Paragraph
(1) shall not apply to an alien who—
(i) is lawfully admitted to the United States for
permanent residence under the Immigration and
Nationality Act; and
(ii)(I) has worked 40 qualifying quarters of coverage as defined under title II of the Social Security
Act or can be credited with such qualifying quarters
as provided under section 435, and (II) in the case

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2263

of any such qualifying quarter creditable for any period
beginning after December 31, 1996, did not receive
any Federal means-tested public benefit (as provided
under section 403) during any such period.
(C) VETERAN AND ACTIVE DUTY EXCEPTION.—Paragraph
(1) shall not apply to an alien who is lawfully residing
in any State and is—
(i) a veteran (as defined in section 101 of title
38, United States Code) with a discharge characterized
as an honorable discharge and not on account of
alienage,
(ii) on active duty (other than active duty for
training) in the Armed Forces of the United States,
or
(iii) the spouse or unmarried dependent child of
an individual described in clause (i) or (ii).
(D) TRANSITION FOR ALIENS CURRENTLY RECEIVING
BENEFITS.—
(i) SSI.—
(I) IN GENERAL.—With respect to the specified
Federal program described in paragraph (3)(A),
during the period beginning on the date of the
enactment of this Act and ending on the date
which is 1 year after such date of enactment, the
Commissioner of Social Security shall redetermine
the eligibility of any individual who is receiving
benefits under such program as of the date of
the enactment of this Act and whose eligibility
for such benefits may terminate by reason of the
provisions of this subsection.
(II) REDETERMINATION CRITERIA.— With
respect to any redetermination under subclause
(I), the Commissioner of Social Security shall apply
the eligibility criteria for new applicants for benefits under such program.
(III) GRANDFATHER PROVISION.—The provisions of this subsection and the redetermination
under subclause (I), shall only apply with respect
to the benefits of an individual described in subclause (I) for months beginning on or after the
date of the redetermination with respect to such
individual.
(IV) NOTICE.—Not later than March 31, 1997,
the Commissioner of Social Security shall notify
an individual described in subclause (I) of the
provisions of this clause.
(ii) FOOD STAMPS.—
(I) IN GENERAL.—With respect to the specified
Federal program described in paragraph (3)(B),
during the period beginning on the date of enactment of this Act and ending on the date which
is 1 year after the date of enactment, the State
agency shall, at the time of the recertification,
recertify the eligibility of any individual who is
receiving benefits under such program as of the
date of enactment of this Act and whose eligibility

110 STAT. 2264

PUBLIC LAW 104–193—AUG. 22, 1996

for such benefits may terminate by reason of the
provisions of this subsection.
(II) RECERTIFICATION CRITERIA.—With respect
to any recertification under subclause (I), the State
agency shall apply the eligibility criteria for
applicants for benefits under such program.
(III) GRANDFATHER PROVISION.—The provisions of this subsection and the recertification
under subclause (I) shall only apply with respect
to the eligibility of an alien for a program for
months beginning on or after the date of recertification, if on the date of enactment of this Act
the alien is lawfully residing in any State and
is receiving benefits under such program on such
date of enactment.
(3) SPECIFIED FEDERAL PROGRAM DEFINED.—For purposes
of this title, the term ‘‘specified Federal program’’ means
any of the following:
(A) SSI.—The supplemental security income program
under title XVI of the Social Security Act, including supplementary payments pursuant to an agreement for Federal
administration under section 1616(a) of the Social Security
Act and payments pursuant to an agreement entered into
under section 212(b) of Public Law 93–66.
(B) FOOD STAMPS.—The food stamp program as defined
in section 3(h) of the Food Stamp Act of 1977.
(b)
LIMITED
ELIGIBILITY
FOR
DESIGNATED
FEDERAL
PROGRAMS.—
(1) IN GENERAL.—Notwithstanding any other provision of
law and except as provided in section 403 and paragraph (2),
a State is authorized to determine the eligibility of an alien
who is a qualified alien (as defined in section 431) for any
designated Federal program (as defined in paragraph (3)).
(2) EXCEPTIONS.—Qualified aliens under this paragraph
shall be eligible for any designated Federal program.
(A) TIME-LIMITED EXCEPTION FOR REFUGEES AND
ASYLEES.—
(i) An alien who is admitted to the United States
as a refugee under section 207 of the Immigration
and Nationality Act until 5 years after the date of
an alien’s entry into the United States.
(ii) An alien who is granted asylum under section
208 of such Act until 5 years after the date of such
grant of asylum.
(iii) An alien whose deportation is being withheld
under section 243(h) of such Act until 5 years after
such withholding.
(B) CERTAIN PERMANENT RESIDENT ALIENS.—An
alien who—
(i) is lawfully admitted to the United States for
permanent residence under the Immigration and
Nationality Act; and
(ii)(I) has worked 40 qualifying quarters of coverage as defined under title II of the Social Security
Act or can be credited with such qualifying quarters
as provided under section 435, and (II) in the case
of any such qualifying quarter creditable for any period

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2265

beginning after December 31, 1996, did not receive
any Federal means-tested public benefit (as provided
under section 403) during any such period.
(C) VETERAN AND ACTIVE DUTY EXCEPTION.—An alien
who is lawfully residing in any State and is—
(i) a veteran (as defined in section 101 of title
38, United States Code) with a discharge characterized
as an honorable discharge and not on account of
alienage,
(ii) on active duty (other than active duty for
training) in the Armed Forces of the United States,
or
(iii) the spouse or unmarried dependent child of
an individual described in clause (i) or (ii).
(D) TRANSITION FOR THOSE CURRENTLY RECEIVING
BENEFITS.—An alien who on the date of the enactment
of this Act is lawfully residing in any State and is receiving
benefits under such program on the date of the enactment
of this Act shall continue to be eligible to receive such
benefits until January 1, 1997.
(3) DESIGNATED FEDERAL PROGRAM DEFINED.—For purposes
of this title, the term ‘‘designated Federal program’’ means
any of the following:
(A) TEMPORARY ASSISTANCE FOR NEEDY FAMILIES.—The
program of block grants to States for temporary assistance
for needy families under part A of title IV of the Social
Security Act.
(B) SOCIAL SERVICES BLOCK GRANT.—The program of
block grants to States for social services under title XX
of the Social Security Act.
(C) MEDICAID.—A State plan approved under title XIX
of the Social Security Act, other than medical assistance
described in section 401(b)(1)(A).
SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR
FEDERAL MEANS-TESTED PUBLIC BENEFIT.

(a) IN GENERAL.—Notwithstanding any other provision of law
and except as provided in subsections (b), (c), and (d), an alien
who is a qualified alien (as defined in section 431) and who enters
the United States on or after the date of the enactment of this
Act is not eligible for any Federal means-tested public benefit
for a period of 5 years beginning on the date of the alien’s entry
into the United States with a status within the meaning of the
term ‘‘qualified alien’’.
(b) EXCEPTIONS.—The limitation under subsection (a) shall not
apply to the following aliens:
(1) EXCEPTION FOR REFUGEES AND ASYLEES.—
(A) An alien who is admitted to the United States
as a refugee under section 207 of the Immigration and
Nationality Act.
(B) An alien who is granted asylum under section
208 of such Act.
(C) An alien whose deportation is being withheld under
section 243(h) of such Act.
(2) VETERAN AND ACTIVE DUTY EXCEPTION.—An alien who
is lawfully residing in any State and is—

8 USC 1613.

110 STAT. 2266

PUBLIC LAW 104–193—AUG. 22, 1996

(A) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as an
honorable discharge and not on account of alienage,
(B) on active duty (other than active duty for training)
in the Armed Forces of the United States, or
(C) the spouse or unmarried dependent child of an
individual described in subparagraph (A) or (B).
(c) APPLICATION OF TERM FEDERAL MEANS-TESTED PUBLIC
BENEFIT.—
(1) The limitation under subsection (a) shall not apply
to assistance or benefits under paragraph (2).
(2) Assistance and benefits under this paragraph are as
follows:
(A) Medical assistance described in section 401(b)(1)(A).
(B) Short-term, non-cash, in-kind emergency disaster
relief.
(C) Assistance or benefits under the National School
Lunch Act.
(D) Assistance or benefits under the Child Nutrition
Act of 1966.
(E) Public health assistance (not including any assistance under title XIX of the Social Security Act) for
immunizations with respect to immunizable diseases and
for testing and treatment of symptoms of communicable
diseases whether or not such symptoms are caused by
a communicable disease.
(F) Payments for foster care and adoption assistance
under parts B and E of title IV of the Social Security
Act for a parent or a child who would, in the absence
of subsection (a), be eligible to have such payments made
on the child’s behalf under such part, but only if the foster
or adoptive parent (or parents) of such child is a qualified
alien (as defined in section 431).
(G) Programs, services, or assistance (such as soup
kitchens, crisis counseling and intervention, and short-term
shelter) specified by the Attorney General, in the Attorney
General’s sole and unreviewable discretion after consultation with appropriate Federal agencies and departments,
which (i) deliver in-kind services at the community level,
including through public or private nonprofit agencies; (ii)
do not condition the provision of assistance, the amount
of assistance provided, or the cost of assistance provided
on the individual recipient’s income or resources; and (iii)
are necessary for the protection of life or safety.
(H) Programs of student assistance under titles IV,
V, IX, and X of the Higher Education Act of 1965, and
titles III, VII, and VIII of the Public Health Service Act.
(I) Means-tested programs under the Elementary and
Secondary Education Act of 1965.
(J) Benefits under the Head Start Act.
(K) Benefits under the Job Training Partnership Act.
(d) SPECIAL RULE FOR REFUGEE AND ENTRANT ASSISTANCE FOR
CUBAN AND HAITIAN ENTRANTS.—The limitation under subsection
(a) shall not apply to refugee and entrant assistance activities,
authorized by title IV of the Immigration and Nationality Act
and section 501 of the Refugee Education Assistance Act of 1980,

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2267

for Cuban and Haitian entrants as defined in section 501(e)(2)
of the Refugee Education Assistance Act of 1980.
SEC. 404. NOTIFICATION AND INFORMATION REPORTING.

8 USC 1614.

(a) NOTIFICATION.—Each Federal agency that administers a
program to which section 401, 402, or 403 applies shall, directly
or through the States, post information and provide general notification to the public and to program recipients of the changes regarding
eligibility for any such program pursuant to this subtitle.
(b) INFORMATION REPORTING UNDER TITLE IV OF THE SOCIAL
SECURITY ACT.—Part A of title IV of the Social Security Act is
amended by inserting the following new section after section 411:
‘‘SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFORMATION.

42 USC 611a.

‘‘Each State to which a grant is made under section 403 shall,
at least 4 times annually and upon request of the Immigration
and Naturalization Service, furnish the Immigration and Naturalization Service with the name and address of, and other identifying information on, any individual who the State knows is unlawfully in the United States.’’.
(c) SSI.—Section 1631(e) of such Act (42 U.S.C. 1383(e)) is
amended—
(1) by redesignating the paragraphs (6) and (7) inserted
by sections 206(d)(2) and 206(f)(1) of the Social Security
Independence and Programs Improvement Act of 1994 (Public
Law 103–296; 108 Stat. 1514, 1515) as paragraphs (7) and
(8), respectively; and
(2) by adding at the end the following new paragraph:
‘‘(9) Notwithstanding any other provision of law, the Commissioner shall, at least 4 times annually and upon request of the
Immigration and Naturalization Service (hereafter in this paragraph referred to as the ‘Service’), furnish the Service with the
name and address of, and other identifying information on, any
individual who the Commissioner knows is unlawfully in the United
States, and shall ensure that each agreement entered into under
section 1616(a) with a State provides that the State shall furnish
such information at such times with respect to any individual
who the State knows is unlawfully in the United States.’’.
(d) INFORMATION REPORTING FOR HOUSING PROGRAMS.—Title
I of the United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) is amended by adding at the end the following new section:
‘‘SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND
OTHER AGENCIES.

‘‘Notwithstanding any other provision of law, the Secretary
shall, at least 4 times annually and upon request of the Immigration
and Naturalization Service (hereafter in this section referred to
as the ‘Service’), furnish the Service with the name and address
of, and other identifying information on, any individual who the
Secretary knows is unlawfully in the United States, and shall
ensure that each contract for assistance entered into under section
6 or 8 of this Act with a public housing agency provides that
the public housing agency shall furnish such information at such
times with respect to any individual who the public housing agency
knows is unlawfully in the United States.’’.

42 USC 1437y.

110 STAT. 2268

PUBLIC LAW 104–193—AUG. 22, 1996

Subtitle B—Eligibility for State and Local
Public Benefits Programs
8 USC 1621.

SEC. 411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR NONIMMIGRANTS INELIGIBLE FOR STATE AND LOCAL PUBLIC BENEFITS.

(a) IN GENERAL.—Notwithstanding any other provision of law
and except as provided in subsections (b) and (d), an alien who
is not—
(1) a qualified alien (as defined in section 431),
(2) a nonimmigrant under the Immigration and Nationality
Act, or
(3) an alien who is paroled into the United States under
section 212(d)(5) of such Act for less than one year,
is not eligible for any State or local public benefit (as defined
in subsection (c)).
(b) EXCEPTIONS.—Subsection (a) shall not apply with respect
to the following State or local public benefits:
(1) Assistance for health care items and services that are
necessary for the treatment of an emergency medical condition
(as defined in section 1903(v)(3) of the Social Security Act)
of the alien involved and are not related to an organ transplant
procedure.
(2) Short-term, non-cash, in-kind emergency disaster relief.
(3) Public health assistance for immunizations with respect
to immunizable diseases and for testing and treatment of symptoms of communicable diseases whether or not such symptoms
are caused by a communicable disease.
(4) Programs, services, or assistance (such as soup kitchens,
crisis counseling and intervention, and short-term shelter)
specified by the Attorney General, in the Attorney General’s
sole and unreviewable discretion after consultation with appropriate Federal agencies and departments, which (A) deliver
in-kind services at the community level, including through public or private nonprofit agencies; (B) do not condition the provision of assistance, the amount of assistance provided, or the
cost of assistance provided on the individual recipient’s income
or resources; and (C) are necessary for the protection of life
or safety.
(c) STATE OR LOCAL PUBLIC BENEFIT DEFINED.—
(1) Except as provided in paragraphs (2) and (3), for purposes of this subtitle the term ‘‘State or local public benefit’’
means—
(A) any grant, contract, loan, professional license, or
commercial license provided by an agency of a
State or local government or by appropriated funds of a
State or local government; and
(B) any retirement, welfare, health, disability, public
or assisted housing, postsecondary education, food assistance, unemployment benefit, or any other similar benefit
for which payments or assistance are provided to an
individual, household, or family eligibility unit by an
agency of a State or local government or by appropriated
funds of a State or local government.
(2) Such term shall not apply—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2269

(A) to any contract, professional license, or commercial
license for a nonimmigrant whose visa for entry is related
to such employment in the United States; or
(B) with respect to benefits for an alien who as a
work authorized nonimmigrant or as an alien lawfully
admitted for permanent residence under the Immigration
and Nationality Act qualified for such benefits and for
whom the United States under reciprocal treaty agreements is required to pay benefits, as determined by the
Secretary of State, after consultation with the Attorney
General.
(3) Such term does not include any Federal public benefit
under section 4001(c).
(d) STATE AUTHORITY TO PROVIDE FOR ELIGIBILITY OF ILLEGAL
ALIENS FOR STATE AND LOCAL PUBLIC BENEFITS.—A State may
provide that an alien who is not lawfully present in the United
States is eligible for any State or local public benefit for which
such alien would otherwise be ineligible under subsection (a) only
through the enactment of a State law after the date of the enactment of this Act which affirmatively provides for such eligibility.
SEC. 412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF QUALIFIED
ALIENS FOR STATE PUBLIC BENEFITS.

(a) IN GENERAL.—Notwithstanding any other provision of law
and except as provided in subsection (b), a State is authorized
to determine the eligibility for any State public benefits of an
alien who is a qualified alien (as defined in section 431), a nonimmigrant under the Immigration and Nationality Act, or an alien
who is paroled into the United States under section 212(d)(5) of
such Act for less than one year.
(b) EXCEPTIONS.—Qualified aliens under this subsection shall
be eligible for any State public benefits.
(1) TIME-LIMITED EXCEPTION FOR REFUGEES AND ASYLEES.—
(A) An alien who is admitted to the United States
as a refugee under section 207 of the Immigration and
Nationality Act until 5 years after the date of an alien’s
entry into the United States.
(B) An alien who is granted asylum under section
208 of such Act until 5 years after the date of such grant
of asylum.
(C) An alien whose deportation is being withheld under
section 243(h) of such Act until 5 years after such withholding.
(2) CERTAIN PERMANENT RESIDENT ALIENS.—An alien who—
(A) is lawfully admitted to the United States for permanent residence under the Immigration and Nationality
Act; and
(B)(i) has worked 40 qualifying quarters of coverage
as defined under title II of the Social Security Act or
can be credited with such qualifying quarters as provided
under section 435, and (ii) in the case of any such qualifying
quarter creditable for any period beginning after December
31, 1996, did not receive any Federal means-tested public
benefit (as provided under section 403) during any such
period.
(3) VETERAN AND ACTIVE DUTY EXCEPTION.—An alien who
is lawfully residing in any State and is—

8 USC 1622.

110 STAT. 2270

PUBLIC LAW 104–193—AUG. 22, 1996
(A) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as an
honorable discharge and not on account of alienage,
(B) on active duty (other than active duty for training)
in the Armed Forces of the United States, or
(C) the spouse or unmarried dependent child of an
individual described in subparagraph (A) or (B).
(4) TRANSITION FOR THOSE CURRENTLY RECEIVING BENEFITS.—An alien who on the date of the enactment of this Act
is lawfully residing in any State and is receiving benefits on
the date of the enactment of this Act shall continue to be
eligible to receive such benefits until January 1, 1997.

Subtitle C—Attribution of Income and
Affidavits of Support
8 USC 1631.

SEC.

421.

FEDERAL ATTRIBUTION
RESOURCES TO ALIEN.

OF

SPONSOR’S

INCOME

AND

(a) IN GENERAL.—Notwithstanding any other provision of law,
in determining the eligibility and the amount of benefits of an
alien for any Federal means-tested public benefits program (as
provided under section 403), the income and resources of the alien
shall be deemed to include the following:
(1) The income and resources of any person who executed
an affidavit of support pursuant to section 213A of the Immigration and Nationality Act (as added by section 423) on behalf
of such alien.
(2) The income and resources of the spouse (if any) of
the person.
(b) DURATION OF ATTRIBUTION PERIOD.—Subsection (a) shall
apply with respect to an alien until such time as the alien—
(1) achieves United States citizenship through naturalization pursuant to chapter 2 of title III of the Immigration and
Nationality Act; or
(2)(A) has worked 40 qualifying quarters of coverage as
defined under title II of the Social Security Act or can be
credited with such qualifying quarters as provided under section
435, and (B) in the case of any such qualifying quarter creditable for any period beginning after December 31, 1996, did
not receive any Federal means-tested public benefit (as provided
under section 403) during any such period.
(c) REVIEW OF INCOME AND RESOURCES OF ALIEN UPON REAPPLICATION.—Whenever an alien is required to reapply for benefits
under any Federal means-tested public benefits program, the
applicable agency shall review the income and resources attributed
to the alien under subsection (a).
(d) APPLICATION.—
(1) If on the date of the enactment of this Act, a Federal
means-tested public benefits program attributes a sponsor’s
income and resources to an alien in determining the alien’s
eligibility and the amount of benefits for an alien, this section
shall apply to any such determination beginning on the day
after the date of the enactment of this Act.
(2) If on the date of the enactment of this Act, a Federal
means-tested public benefits program does not attribute a sponsor’s income and resources to an alien in determining the

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2271

alien’s eligibility and the amount of benefits for an alien, this
section shall apply to any such determination beginning 180
days after the date of the enactment of this Act.
SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION
OF SPONSORS INCOME AND RESOURCES TO THE ALIEN
WITH RESPECT TO STATE PROGRAMS.

8 USC 1632.

(a) OPTIONAL APPLICATION TO STATE PROGRAMS.—Except as
provided in subsection (b), in determining the eligibility and the
amount of benefits of an alien for any State public benefits (as
defined in section 412(c)), the State or political subdivision that
offers the benefits is authorized to provide that the income and
resources of the alien shall be deemed to include—
(1) the income and resources of any individual who executed
an affidavit of support pursuant to section 213A of the Immigration and Nationality Act (as added by section 423) on behalf
of such alien, and
(2) the income and resources of the spouse (if any) of
the individual.
(b) EXCEPTIONS.—Subsection (a) shall not apply with respect
to the following State public benefits:
(1) Assistance described in section 411(b)(1).
(2) Short-term, non-cash, in-kind emergency disaster relief.
(3) Programs comparable to assistance or benefits under
the National School Lunch Act.
(4) Programs comparable to assistance or benefits under
the Child Nutrition Act of 1966.
(5) Public health assistance for immunizations with respect
to immunizable diseases and for testing and treatment of symptoms of communicable diseases whether or not such symptoms
are caused by a communicable disease.
(6) Payments for foster care and adoption assistance.
(7) Programs, services, or assistance (such as soup kitchens,
crisis counseling and intervention, and short-term shelter)
specified by the Attorney General of a State, after consultation
with appropriate agencies and departments, which (A) deliver
in-kind services at the community level, including through public or private nonprofit agencies; (B) do not condition the provision of assistance, the amount of assistance provided, or
the cost of assistance provided on the individual recipient’s
income or resources; and (C) are necessary for the protection
of life or safety.
SEC. 423. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT.

(a) IN GENERAL.—Title II of the Immigration and Nationality
Act is amended by inserting after section 213 the following new
section:
‘‘REQUIREMENTS

FOR SPONSOR’S AFFIDAVIT OF SUPPORT

‘‘SEC. 213A. (a) ENFORCEABILITY.—(1) No affidavit of support
may be accepted by the Attorney General or by any consular officer
to establish that an alien is not excludable as a public charge
under section 212(a)(4) unless such affidavit is executed as a
contract—
‘‘(A) which is legally enforceable against the sponsor by
the sponsored alien, the Federal Government, and by any State
(or any political subdivision of such State) which provides any

8 USC 1183a.

110 STAT. 2272

PUBLIC LAW 104–193—AUG. 22, 1996

means-tested public benefits program, but not later than 10
years after the alien last receives any such benefit;
‘‘(B) in which the sponsor agrees to financially support
the alien, so that the alien will not become a public
charge; and
‘‘(C) in which the sponsor agrees to submit to the jurisdiction of any Federal or State court for the purpose of actions
brought under subsection (e)(2).
‘‘(2) A contract under paragraph (1) shall be enforceable with
respect to benefits provided to the alien until such time as the
alien achieves United States citizenship through naturalization
pursuant to chapter 2 of title III.
‘‘(b) FORMS.—Not later than 90 days after the date of enactment
of this section, the Attorney General, in consultation with the
Secretary of State and the Secretary of Health and Human Services,
shall formulate an affidavit of support consistent with the provisions
of this section.
‘‘(c) REMEDIES.—Remedies available to enforce an affidavit of
support under this section include any or all of the remedies
described in section 3201, 3203, 3204, or 3205 of title 28, United
States Code, as well as an order for specific performance and
payment of legal fees and other costs of collection, and include
corresponding remedies available under State law. A Federal agency
may seek to collect amounts owed under this section in accordance
with the provisions of subchapter II of chapter 37 of title 31,
United States Code.
‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—
‘‘(1) IN GENERAL.—The sponsor shall notify the Attorney
General and the State in which the sponsored alien is currently
resident within 30 days of any change of address of the sponsor
during the period specified in subsection (a)(2).
‘‘(2) PENALTY.—Any person subject to the requirement of
paragraph (1) who fails to satisfy such requirement shall be
subject to a civil penalty of—
‘‘(A) not less than $250 or more than $2,000, or
‘‘(B) if such failure occurs with knowledge that the
alien has received any means-tested public benefit, not
less than $2,000 or more than $5,000.
‘‘(e) REIMBURSEMENT OF GOVERNMENT EXPENSES.—(1)(A) Upon
notification that a sponsored alien has received any benefit under
any means-tested public benefits program, the appropriate Federal,
State, or local official shall request reimbursement by the sponsor
in the amount of such assistance.
‘‘(B) The Attorney General, in consultation with the Secretary
of Health and Human Services, shall prescribe such regulations
as may be necessary to carry out subparagraph (A).
‘‘(2) If within 45 days after requesting reimbursement, the
appropriate Federal, State, or local agency has not received a
response from the sponsor indicating a willingness to commence
payments, an action may be brought against the sponsor pursuant
to the affidavit of support.
‘‘(3) If the sponsor fails to abide by the repayment terms established by such agency, the agency may, within 60 days of such
failure, bring an action against the sponsor pursuant to the affidavit
of support.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2273

‘‘(4) No cause of action may be brought under this subsection
later than 10 years after the alien last received any benefit under
any means-tested public benefits program.
‘‘(5) If, pursuant to the terms of this subsection, a Federal,
State, or local agency requests reimbursement from the sponsor
in the amount of assistance provided, or brings an action against
the sponsor pursuant to the affidavit of support, the appropriate
agency may appoint or hire an individual or other person to act
on behalf of such agency acting under the authority of law for
purposes of collecting any moneys owed. Nothing in this subsection
shall preclude any appropriate Federal, State, or local agency from
directly requesting reimbursement from a sponsor for the amount
of assistance provided, or from bringing an action against a sponsor
pursuant to an affidavit of support.
‘‘(f) DEFINITIONS.—For the purposes of this section—
‘‘(1) SPONSOR.—The term ‘sponsor’ means an individual who—
‘‘(A) is a citizen or national of the United States or
an alien who is lawfully admitted to the United States
for permanent residence;
‘‘(B) is 18 years of age or over;
‘‘(C) is domiciled in any of the 50 States or the District
of Columbia; and
‘‘(D) is the person petitioning for the admission of
the alien under section 204.’’.
(b) CLERICAL AMENDMENT.—The table of contents of such Act
is amended by inserting after the item relating to section 213
the following:
‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.

(c) EFFECTIVE DATE.—Subsection (a) of section 213A of the
Immigration and Nationality Act, as inserted by subsection (a)
of this section, shall apply to affidavits of support executed on
or after a date specified by the Attorney General, which date
shall be not earlier than 60 days (and not later than 90 days)
after the date the Attorney General formulates the form for such
affidavits under subsection (b) of such section.
(d) BENEFITS NOT SUBJECT TO REIMBURSEMENT.—Requirements
for reimbursement by a sponsor for benefits provided to a sponsored
alien pursuant to an affidavit of support under section 213A of
the Immigration and Nationality Act shall not apply with respect
to the following:
(1) Medical assistance described in section 401(b)(1)(A) or
assistance described in section 411(b)(1).
(2) Short-term, non-cash, in-kind emergency disaster relief.
(3) Assistance or benefits under the National School
Lunch Act.
(4) Assistance or benefits under the Child Nutrition Act
of 1966.
(5) Public health assistance for immunizations (not including any assistance under title XIX of the Social Security Act)
with respect to immunizable diseases and for testing and treatment of symptoms of communicable diseases whether or not
such symptoms are caused by a communicable disease.
(6) Payments for foster care and adoption assistance under
parts B and E of title IV of the Social Security Act for a
parent or a child, but only if the foster or adoptive parent

8 USC 1138a
note.

8 USC 1138a
note.

110 STAT. 2274

PUBLIC LAW 104–193—AUG. 22, 1996
(or parents) of such child is a qualified alien (as defined in
section 431).
(7) Programs, services, or assistance (such as soup kitchens,
crisis counseling and intervention, and short-term shelter)
specified by the Attorney General, in the Attorney General’s
sole and unreviewable discretion after consultation with appropriate Federal agencies and departments, which (A) deliver
in-kind services at the community level, including through public or private nonprofit agencies; (B) do not condition the provision of assistance, the amount of assistance provided, or
the cost of assistance provided on the individual recipient’s
income or resources; and (C) are necessary for the protection
of life or safety.
(8) Programs of student assistance under titles IV, V, IX,
and X of the Higher Education Act of 1965, and titles III,
VII, and VIII of the Public Health Service Act.
(9) Benefits under the Head Start Act.
(10) Means-tested programs under the Elementary and
Secondary Education Act of 1965.
(11) Benefits under the Job Training Partnership Act.
Subtitle D—General Provisions

8 USC 1641.

SEC. 431. DEFINITIONS.

(a) IN GENERAL.—Except as otherwise provided in this title,
the terms used in this title have the same meaning given such
terms in section 101(a) of the Immigration and Nationality Act.
(b) QUALIFIED ALIEN.—For purposes of this title, the term
‘‘qualified alien’’ means an alien who, at the time the alien applies
for, receives, or attempts to receive a Federal public benefit, is—
(1) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act,
(2) an alien who is granted asylum under section 208
of such Act,
(3) a refugee who is admitted to the United States under
section 207 of such Act,
(4) an alien who is paroled into the United States under
section 212(d)(5) of such Act for a period of at least 1 year,
(5) an alien whose deportation is being withheld under
section 243(h) of such Act, or
(6) an alien who is granted conditional entry pursuant
to section 203(a)(7) of such Act as in effect prior to April
1, 1980.
8 USC 1642.

SEC. 432. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC
BENEFITS.

(a) IN GENERAL.—Not later than 18 months after the date
of the enactment of this Act, the Attorney General of the United
States, after consultation with the Secretary of Health and Human
Services, shall promulgate regulations requiring verification that
a person applying for a Federal public benefit (as defined in section
401(c)), to which the limitation under section 401 applies, is a
qualified alien and is eligible to receive such benefit. Such regulations shall, to the extent feasible, require that information requested
and exchanged be similar in form and manner to information
requested and exchanged under section 1137 of the Social Security
Act.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2275

(b) STATE COMPLIANCE.—Not later than 24 months after the
date the regulations described in subsection (a) are adopted, a
State that administers a program that provides a Federal public
benefit shall have in effect a verification system that complies
with the regulations.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to carry out
the purpose of this section.
SEC. 433. STATUTORY CONSTRUCTION.

8 USC 1643.

(a) LIMITATION.—
(1) Nothing in this title may be construed as an entitlement
or a determination of an individual’s eligibility or fulfillment
of the requisite requirements for any Federal, State, or local
governmental program, assistance, or benefits. For purposes
of this title, eligibility relates only to the general issue of
eligibility or ineligibility on the basis of alienage.
(2) Nothing in this title may be construed as addressing
alien eligibility for a basic public education as determined by
the Supreme Court of the United States under Plyler v. Doe
(457 U.S. 202)(1982).
(b) NOT APPLICABLE TO FOREIGN ASSISTANCE.—This title does
not apply to any Federal, State, or local governmental program,
assistance, or benefits provided to an alien under any program
of foreign assistance as determined by the Secretary of State in
consultation with the Attorney General.
(c) SEVERABILITY.—If any provision of this title or the application of such provision to any person or circumstance is held to
be unconstitutional, the remainder of this title and the application
of the provisions of such to any person or circumstance shall not
be affected thereby.
SEC. 434. COMMUNICATION BETWEEN STATE AND LOCAL GOVERNMENT
AGENCIES
AND
THE
IMMIGRATION
AND
NATURALIZATION SERVICE.

8 USC 1644.

Notwithstanding any other provision of Federal, State, or local
law, no State or local government entity may be prohibited, or
in any way restricted, from sending to or receiving from
the Immigration and Naturalization Service information regarding
the immigration status, lawful or unlawful, of an alien in the
United States.
SEC. 435. QUALIFYING QUARTERS.

For purposes of this title, in determining the number of qualifying quarters of coverage under title II of the Social Security Act
an alien shall be credited with—
(1) all of the qualifying quarters of coverage as defined
under title II of the Social Security Act worked by a parent
of such alien while the alien was under age 18, and
(2) all of the qualifying quarters worked by a spouse of
such alien during their marriage and the alien remains married
to such spouse or such spouse is deceased.
No such qualifying quarter of coverage that is creditable under
title II of the Social Security Act for any period beginning after
December 31, 1996, may be credited to an alien under paragraph
(1) or (2) if the parent or spouse (as the case may be) of such
alien received any Federal means-tested public benefit (as provided

8 USC 1645.

110 STAT. 2276

PUBLIC LAW 104–193—AUG. 22, 1996

under section 403) during the period for which such qualifying
quarter of coverage is so credited.

Subtitle E—Conforming Amendments
Relating to Assisted Housing
SEC.

441.

CONFORMING
HOUSING.

AMENDMENTS

RELATING

TO

ASSISTED

(a) LIMITATIONS ON ASSISTANCE.—Section 214 of the Housing
and Community Development Act of 1980 (42 U.S.C. 1436a) is
amended—
(1) by striking ‘‘Secretary of Housing and Urban Development’’ each place it appears and inserting ‘‘applicable
Secretary’’;
(2) in subsection (b), by inserting after ‘‘National Housing
Act,’’ the following: ‘‘the direct loan program under section
502 of the Housing Act of 1949 or section 502(c)(5)(D), 504,
521(a)(2)(A), or 542 of such Act, subtitle A of title III of the
Cranston-Gonzalez National Affordable Housing Act,’’;
(3) in paragraphs (2) through (6) of subsection (d), by
striking ‘‘Secretary’’ each place it appears and inserting
‘‘applicable Secretary’’;
(4) in subsection (d), in the matter following paragraph
(6), by striking ‘‘the term ‘Secretary’’’ and inserting ‘‘the term
‘applicable Secretary’’’; and
(5) by adding at the end the following new subsection:
‘‘(h) For purposes of this section, the term ‘applicable Secretary’
means—
‘‘(1) the Secretary of Housing and Urban Development,
with respect to financial assistance administered by such Secretary and financial assistance under subtitle A of title III
of the Cranston-Gonzalez National Affordable Housing Act; and
‘‘(2) the Secretary of Agriculture, with respect to financial
assistance administered by such Secretary.’’.
(b) CONFORMING AMENDMENTS.—Section 501(h) of the Housing
Act of 1949 (42 U.S.C. 1471(h)) is amended—
(1) by striking ‘‘(1)’’;
(2) by striking ‘‘by the Secretary of Housing and Urban
Development’’; and
(3) by striking paragraph (2).
Subtitle F—Earned Income Credit Denied to Unauthorized
Employees
SEC. 451. EARNED INCOME CREDIT DENIED TO INDIVIDUALS NOT
AUTHORIZED TO BE EMPLOYED IN THE UNITED STATES.

(a) IN GENERAL.—Section 32(c)(1) of the Internal Revenue Code
of 1986 (relating to individuals eligible to claim the earned income
credit) is amended by adding at the end the following new subparagraph:
‘‘(F) IDENTIFICATION NUMBER REQUIREMENT.—The term
‘eligible individual’ does not include any individual who
does not include on the return of tax for the taxable year—
‘‘(i) such individual’s taxpayer identification
number, and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2277

‘‘(ii) if the individual is married (within the meaning of section 7703), the taxpayer identification number
of such individual’s spouse.’’.
(b) SPECIAL IDENTIFICATION NUMBER.—Section 32 of such Code
is amended by adding at the end the following new subsection:
‘‘(l) IDENTIFICATION NUMBERS.—Solely for purposes of subsections (c)(1)(F) and (c)(3)(D), a taxpayer identification number
means a social security number issued to an individual by the
Social Security Administration (other than a social security number
issued pursuant to clause (II) (or that portion of clause (III) that
relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security
Act).’’.
(c) EXTENSION OF PROCEDURES APPLICABLE TO MATHEMATICAL
OR CLERICAL ERRORS.—Section 6213(g)(2) of such Code (relating
to the definition of mathematical or clerical errors) is amended
by striking ‘‘and’’ at the end of subparagraph (D), by striking
the period at the end of subparagraph (E) and inserting a comma,
and by inserting after subparagraph (E) the following new subparagraphs:
‘‘(F) an omission of a correct taxpayer identification
number required under section 32 (relating to the earned
income credit) to be included on a return, and
‘‘(G) an entry on a return claiming the credit under
section 32 with respect to net earnings from self-employment described in section 32(c)(2)(A) to the extent the
tax imposed by section 1401 (relating to self-employment
tax) on such net earnings has not been paid.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to returns the due date for which (without
regard to extensions) is more than 30 days after the date of the
enactment of this Act.

26 USC 32 note.

TITLE V—CHILD PROTECTION
SEC. 501. AUTHORITY OF STATES TO MAKE FOSTER CARE MAINTENANCE PAYMENTS ON BEHALF OF CHILDREN IN ANY
PRIVATE CHILD CARE INSTITUTION.

Section 472(c)(2) of the Social Security Act (42 U.S.C. 672(c)(2))
is amended by striking ‘‘nonprofit’’.
SEC. 502. EXTENSION OF ENHANCED MATCH FOR IMPLEMENTATION
OF STATEWIDE AUTOMATED CHILD WELFARE INFORMATION SYSTEMS.

Section 13713(b)(2) of the Omnibus Budget Reconciliation Act
of 1993 (42 U.S.C. 674 note; 107 Stat. 657) is amended by striking
‘‘1996’’ and inserting ‘‘1997’’.
SEC. 503. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.

Part B of title IV of the Social Security Act (42 U.S.C. 620–
628a) is amended by adding at the end the following:
‘‘SEC. 429A. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.

‘‘(a) IN GENERAL.—The Secretary shall conduct a national study
based on random samples of children who are at risk of child
abuse or neglect, or are determined by States to have been abused
or neglected.

42 USC 628b.

110 STAT. 2278

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(b) REQUIREMENTS.—The study required by subsection (a)
shall—
‘‘(1) have a longitudinal component; and
‘‘(2) yield data reliable at the State level for as many
States as the Secretary determines is feasible.
‘‘(c) PREFERRED CONTENTS.—In conducting the study required
by subsection (a), the Secretary should—
‘‘(1) carefully consider selecting the sample from cases of
confirmed abuse or neglect; and
‘‘(2) follow each case for several years while obtaining
information on, among other things—
‘‘(A) the type of abuse or neglect involved;
‘‘(B) the frequency of contact with State or local
agencies;
‘‘(C) whether the child involved has been separated
from the family, and, if so, under what circumstances;
‘‘(D) the number, type, and characteristics of out-ofhome placements of the child; and
‘‘(E) the average duration of each placement.
‘‘(d) REPORTS.—
‘‘(1) IN GENERAL.—From time to time, the Secretary shall
prepare reports summarizing the results of the study required
by subsection (a).
‘‘(2) AVAILABILITY.—The Secretary shall make available to
the public any report prepared under paragraph (1), in writing
or in the form of an electronic data tape.
‘‘(3) AUTHORITY TO CHARGE FEE.—The Secretary may charge
and collect a fee for the furnishing of reports under paragraph (2).
‘‘(e) APPROPRIATION.—Out of any money in the Treasury of
the United States not otherwise appropriated, there are appropriated to the Secretary for each of fiscal years 1996 through
2002 $6,000,000 to carry out this section.’’.
SEC. 504. REDESIGNATION OF SECTION 1123.
42 USC 1320a–
2a.

The Social Security Act is amended by redesignating section 1123, the second place it appears (42 U.S.C. 1320a–1a), as
section 1123A.
SEC. 505. KINSHIP CARE.

Section 471(a) of the Social Security Act (42 U.S.C. 671(a))
is amended—
(1) by striking ‘‘and’’ at the end of paragraph (16);
(2) by striking the period at the end of paragraph (17)
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(18) provides that the State shall consider giving preference to an adult relative over a non-related caregiver when
determining a placement for a child, provided that the relative
caregiver meets all relevant State child protection standards.’’.
Child Care and
Development
Block Grant
Amendments of
1996.
42 USC 9801
note.

TITLE VI—CHILD CARE
SEC. 601. SHORT TITLE AND REFERENCES.

(a) SHORT TITLE.—This title may be cited as the ‘‘Child Care
and Development Block Grant Amendments of 1996’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2279

(b) REFERENCES.—Except as otherwise expressly provided,
whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858 et seq.).
SEC. 602. GOALS.

Section 658A (42 U.S.C. 9801 note) is amended—
(1) in the section heading by inserting ‘‘AND GOALS’’ after
‘‘TITLE’’;
(2) by inserting ‘‘(a) SHORT TITLE.—’’ before ‘‘This’’; and
(3) by adding at the end the following:
‘‘(b) GOALS.—The goals of this subchapter are—
‘‘(1) to allow each State maximum flexibility in developing
child care programs and policies that best suit the needs of
children and parents within such State;
‘‘(2) to promote parental choice to empower working parents
to make their own decisions on the child care that best suits
their family’s needs;
‘‘(3) to encourage States to provide consumer education
information to help parents make informed choices about child
care;
‘‘(4) to assist States to provide child care to parents trying
to achieve independence from public assistance; and
‘‘(5) to assist States in implementing the health, safety,
licensing, and registration standards established in State regulations.’’.

42 USC 9801
note.
42 USC 9858
note.

SEC. 603. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT
AUTHORITY.

(a) IN GENERAL.—Section 658B (42 U.S.C. 9858) is amended
to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

‘‘There is authorized to be appropriated to carry out this subchapter $1,000,000,000 for each of the fiscal years 1996 through
2002.’’.
(b) SOCIAL SECURITY ACT.—Part A of title IV of the Social
Security Act (42 U.S.C. 601–617) is amended by adding at the
end the following new section:
‘‘SEC. 418. FUNDING FOR CHILD CARE.

‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—
‘‘(1) GENERAL ENTITLEMENT.—Subject to the amount appropriated under paragraph (3), each State shall, for the purpose
of providing child care assistance, be entitled to payments
under a grant under this subsection for a fiscal year in an
amount equal to—
‘‘(A) the sum of the total amount required to be paid
to the State under section 403 for fiscal year 1994 or
1995 (whichever is greater) with respect to amounts
expended for child care under section—
‘‘(i) 402(g) of this Act (as such section was in effect
before October 1, 1995); and
‘‘(ii) 402(i) of this Act (as so in effect); or

42 USC 618.

110 STAT. 2280

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(B) the average of the total amounts required to be
paid to the State for fiscal years 1992 through 1994 under
the sections referred to in subparagraph (A);
whichever is greater.
‘‘(2) REMAINDER.—
‘‘(A) GRANTS.—The Secretary shall use any amounts
appropriated for a fiscal year under paragraph (3), and
remaining after the reservation described in paragraph
(4) and after grants are awarded under paragraph (1),
to make grants to States under this paragraph.
‘‘(B) AMOUNT.—Subject to subparagraph (C), the
amount of a grant awarded to a State for a fiscal year
under this paragraph shall be based on the formula used
for determining the amount of Federal payments to the
State under section 403(n) (as such section was in effect
before October 1, 1995).
‘‘(C) MATCHING REQUIREMENT.—The Secretary shall
pay to each eligible State in a fiscal year an amount,
under a grant under subparagraph (A), equal to the Federal
medical assistance percentage for such State for fiscal year
1995 (as defined in section 1905(b)) of so much of the
expenditures by the State for child care in such year as
exceed the State set-aside for such State under paragraph
(1)(A) for such year and the amount of State expenditures
in fiscal year 1994 or 1995 (whichever is greater) that
equal the non-Federal share for the programs described
in subparagraph (A) of paragraph (1).
‘‘(D) REDISTRIBUTION.—
‘‘(i) IN GENERAL.—With respect to any fiscal year,
if the Secretary determines (in accordance with clause
(ii)) that amounts under any grant awarded to a State
under this paragraph for such fiscal year will not be
used by such State during such fiscal year for carrying
out the purpose for which the grant is made, the Secretary shall make such amounts available in the subsequent fiscal year for carrying out such purpose to one
or more States which apply for such funds to the
extent the Secretary determines that such States will
be able to use such additional amounts for carrying
out such purpose. Such available amounts shall be
redistributed to a State pursuant to section 403(n)
(as such section was in effect before October 1, 1995)
by substituting ‘the number of children residing in
all States applying for such funds’ for ‘the number
of children residing in the United States in the second
preceding fiscal year’.
‘‘(ii) TIME OF DETERMINATION AND DISTRIBUTION.—
The determination of the Secretary under clause (i)
for a fiscal year shall be made not later than the
end of the first quarter of the subsequent fiscal year.
The redistribution of amounts under clause (i) shall
be made as close as practicable to the date on which
such determination is made. Any amount made available to a State from an appropriation for a fiscal year
in accordance with this subparagraph shall, for purposes of this part, be regarded as part of such State’s

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2281

payment (as determined under this subsection) for the
fiscal year in which the redistribution is made.
‘‘(3) APPROPRIATION.—For grants under this section, there
are appropriated—
‘‘(A) $1,967,000,000 for fiscal year 1997;
‘‘(B) $2,067,000,000 for fiscal year 1998;
‘‘(C) $2,167,000,000 for fiscal year 1999;
‘‘(D) $2,367,000,000 for fiscal year 2000;
‘‘(E) $2,567,000,000 for fiscal year 2001; and
‘‘(F) $2,717,000,000 for fiscal year 2002.
‘‘(4) INDIAN TRIBES.—The Secretary shall reserve not less
than 1 percent, and not more than 2 percent, of the aggregate
amount appropriated to carry out this section in each fiscal
year for payments to Indian tribes and tribal organizations.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN GENERAL.—Amounts received by a State under this
section shall only be used to provide child care assistance.
Amounts received by a State under a grant under subsection
(a)(1) shall be available for use by the State without fiscal
year limitation.
‘‘(2) USE FOR CERTAIN POPULATIONS.—A State shall ensure
that not less than 70 percent of the total amount of funds
received by the State in a fiscal year under this section are
used to provide child care assistance to families who are receiving assistance under a State program under this part, families
who are attempting through work activities to transition off
of such assistance program, and families who are at risk of
becoming dependent on such assistance program.
‘‘(c) APPLICATION OF CHILD CARE AND DEVELOPMENT BLOCK
GRANT ACT of 1990.—Notwithstanding any other provision of law,
amounts provided to a State under this section shall be transferred
to the lead agency under the Child Care and Development Block
Grant Act of 1990, integrated by the State into the programs
established by the State under such Act, and be subject to requirements and limitations of such Act.
‘‘(d) DEFINITION.—As used in this section, the term ‘State’
means each of the 50 States or the District of Columbia.’’.
SEC. 604. LEAD AGENCY.

Section 658D(b) (42 U.S.C. 9858b(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking ‘‘State’’ the first
place that such appears and inserting ‘‘governmental or
nongovernmental’’; and
(B) in subparagraph (C), by inserting ‘‘with sufficient
time and Statewide distribution of the notice of such hearing,’’ after ‘‘hearing in the State’’; and
(2) in paragraph (2), by striking the second sentence.
SEC. 605. APPLICATION AND PLAN.

Section 658E (42 U.S.C. 9858c) is amended—
(1) in subsection (b)—
(A) by striking ‘‘implemented—’’ and all that follows
through ‘‘(2)’’ and inserting ‘‘implemented’’; and
(B) by striking ‘‘for subsequent State plans’’;
(2) in subsection (c)—
(A) in paragraph (2)—
(i) in subparagraph (A)—

110 STAT. 2282

PUBLIC LAW 104–193—AUG. 22, 1996
(I) in clause (i) by striking ‘‘, other than
through assistance provided under paragraph
(3)(C),’’; and
(II) by striking ‘‘except’’ and all that follows
through ‘‘1992’’, and inserting ‘‘and provide a
detailed description of the procedures the State
will implement to carry out the requirements of
this subparagraph’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘Provide assurances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the period at the end
‘‘and provide a detailed description of such procedures’’;
(iii) in subparagraph (C)—
(I) by striking ‘‘Provide assurances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the period at the end
‘‘and provide a detailed description of how such
record is maintained and is made available’’;
(iv) by amending subparagraph (D) to read as
follows:
‘‘(D) CONSUMER EDUCATION INFORMATION.—Certify that
the State will collect and disseminate to parents of eligible
children and the general public, consumer education
information that will promote informed child care choices.’’;
(v) in subparagraph (E), to read as follows:
‘‘(E) COMPLIANCE WITH STATE LICENSING REQUIREMENTS.—
‘‘(i) IN GENERAL.—Certify that the State has in
effect licensing requirements applicable to child care
services provided within the State, and provide a
detailed description of such requirements and of how
such requirements are effectively enforced. Nothing
in the preceding sentence shall be construed to require
that licensing requirements be applied to specific types
of providers of child care services.
‘‘(ii) INDIAN TRIBES AND TRIBAL ORGANIZATIONS.—
In lieu of any licensing and regulatory requirements
applicable under State and local law, the Secretary,
in consultation with Indian tribes and tribal organizations, shall develop minimum child care standards
(that appropriately reflect tribal needs and available
resources) that shall be applicable to Indian tribes
and tribal organization receiving assistance under this
subchapter.’’;
(vi) in subparagraph (F) by striking ‘‘Provide assurances’’ and inserting ‘‘Certify’’;
(vii) in subparagraph (G) by striking ‘‘Provide
assurances’’ and inserting ‘‘Certify’’; and
(viii) by striking subparagraphs (H), (I), and (J)
and inserting the following:
‘‘(H) MEETING THE NEEDS OF CERTAIN POPULATIONS.—
Demonstrate the manner in which the State will meet
the specific child care needs of families who are receiving
assistance under a State program under part A of title
IV of the Social Security Act, families who are attempting

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2283

through work activities to transition off of such assistance
program, and families that are at risk of becoming dependent on such assistance program.’’;
(B) in paragraph (3)—
(i) in subparagraph (A), by striking ‘‘(B) and (C)’’
and inserting ‘‘(B) through (D)’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘.—Subject to the reservation
contained in subparagraph (C), the’’ and inserting
‘‘AND RELATED ACTIVITIES.—The’’;
(II) in clause (i) by striking ‘‘; and’’ at the
end and inserting a period;
(III) by striking ‘‘for—’’ and all that follows
through ‘‘section 658E(c)(2)(A)’’ and inserting ‘‘for
child care services on a sliding fee scale basis,
activities that improve the quality or availability
of such services, and any other activity that the
State deems appropriate to realize any of the goals
specified in paragraphs (2) through (5) of section
658A(b)’’; and
(IV) by striking clause (ii);
(iii) by amending subparagraph (C) to read as
follows:
‘‘(C) LIMITATION ON ADMINISTRATIVE COSTS.—Not more
than 5 percent of the aggregate amount of funds available
to the State to carry out this subchapter by a State in
each fiscal year may be expended for administrative costs
incurred by such State to carry out all of its functions
and duties under this subchapter. As used in the preceding
sentence, the term ‘administrative costs’ shall not include
the costs of providing direct services.’’; and
(iv) by adding at the end thereof the following:
‘‘(D) ASSISTANCE FOR CERTAIN FAMILIES.—A State shall
ensure that a substantial portion of the amounts available
(after the State has complied with the requirement of section 418(b)(2) of the Social Security Act with respect to
each of the fiscal years 1997 through 2002) to the State
to carry out activities under this subchapter in each fiscal
year is used to provide assistance to low-income working
families other than families described in paragraph (2)(H).’’;
and
(C) in paragraph (4)(A)—
(i) by striking ‘‘provide assurances’’ and inserting
‘‘certify’’;
(ii) in the first sentence by inserting ‘‘and shall
provide a summary of the facts relied on by the State
to determine that such rates are sufficient to ensure
such access’’ before the period; and
(iii) by striking the last sentence.
SEC. 606. LIMITATION ON STATE ALLOTMENTS.

Section 658F(b)(1) (42 U.S.C. 9858d(b)(1)) is amended by
striking ‘‘No’’ and inserting ‘‘Except as provided for in section
658O(c)(6), no’’.
SEC. 607. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

Section 658G (42 U.S.C. 9858e) is amended to read as follows:

110 STAT. 2284
42 USC 9858e.

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

‘‘A State that receives funds to carry out this subchapter for
a fiscal year, shall use not less than 4 percent of the amount
of such funds for activities that are designed to provide comprehensive consumer education to parents and the public, activities that
increase parental choice, and activities designed to improve the
quality and availability of child care (such as resource and referral
services).’’.
SEC. 608. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFOREAND AFTER-SCHOOL CARE REQUIREMENT.

Section 658H (42 U.S.C. 9858f) is repealed.
SEC. 609. ADMINISTRATION AND ENFORCEMENT.

Section 658I(b) (42 U.S.C. 9858g(b)) is amended—
(1) in paragraph (1), by striking ‘‘, and shall have’’ and
all that follows through ‘‘(2)’’; and
(2) in the matter following clause (ii) of paragraph (2)(A),
by striking ‘‘finding and that’’ and all that follows through
the period and inserting ‘‘finding and shall require that the
State reimburse the Secretary for any funds that were improperly expended for purposes prohibited or not authorized by
this subchapter, that the Secretary deduct from the administrative portion of the State allotment for the following fiscal year
an amount that is less than or equal to any improperly
expended funds, or a combination of such options.’’.
SEC. 610. PAYMENTS.

Section 658J(c) (42 U.S.C. 9858h(c)) is amended—
(1) by striking ‘‘expended’’ and inserting ‘‘obligated’’; and
(2) by striking ‘‘3 fiscal years’’ and inserting ‘‘fiscal year’’.
SEC. 611. ANNUAL REPORT AND AUDITS.

Section 658K (42 U.S.C. 9858i) is amended—
(1) in the section heading by striking ‘‘ANNUAL REPORT’’
and inserting ‘‘REPORTS’’;
(2) in subsection (a), to read as follows:
‘‘(a) REPORTS.—
‘‘(1) COLLECTION OF INFORMATION BY STATES.—
‘‘(A) IN GENERAL.—A State that receives funds to carry
out this subchapter shall collect the information described
in subparagraph (B) on a monthly basis.
‘‘(B)
REQUIRED
INFORMATION.—The
information
required under this subparagraph shall include, with
respect to a family unit receiving assistance under this
subchapter information concerning—
‘‘(i) family income;
‘‘(ii) county of residence;
‘‘(iii) the gender, race, and age of children receiving
such assistance;
‘‘(iv) whether the family includes only one parent;
‘‘(v) the sources of family income, including the
amount obtained from (and separately identified)—
‘‘(I) employment, including self-employment;
‘‘(II) cash or other assistance under part A
of title IV of the Social Security Act;
‘‘(III) housing assistance;

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2285

‘‘(IV) assistance under the Food Stamp Act
of 1977; and
‘‘(V) other assistance programs;
‘‘(vi) the number of months the family has received
benefits;
‘‘(vii) the type of child care in which the child
was enrolled (such as family child care, home care,
or center-based child care);
‘‘(viii) whether the child care provider involved
was a relative;
‘‘(ix) the cost of child care for such families; and
‘‘(x) the average hours per week of such care;
during the period for which such information is required
to be submitted.
‘‘(C) SUBMISSION TO SECRETARY.—A State described in
subparagraph (A) shall, on a quarterly basis, submit the
information required to be collected under subparagraph
(B) to the Secretary.
‘‘(D) SAMPLING.—The Secretary may disapprove the
information collected by a State under this paragraph if
the State uses sampling methods to collect such information.
‘‘(2) BIANNUAL REPORTS.—Not later than December 31,
1997, and every 6 months thereafter, a State described in
paragraph (1)(A) shall prepare and submit to the Secretary
a report that includes aggregate data concerning—
‘‘(A) the number of child care providers that received
funding under this subchapter as separately identified
based on the types of providers listed in section 658P(5);
‘‘(B) the monthly cost of child care services, and the
portion of such cost that is paid for with assistance provided
under this subchapter, listed by the type of child care
services provided;
‘‘(C) the number of payments made by the State
through vouchers, contracts, cash, and disregards under
public benefit programs, listed by the type of child care
services provided;
‘‘(D) the manner in which consumer education information was provided to parents and the number of parents
to whom such information was provided; and
‘‘(E) the total number (without duplication) of children
and families served under this subchapter;
during the period for which such report is required to be submitted.’’; and
(2) in subsection (b)—
(A) in paragraph (1) by striking ‘‘a application’’ and
inserting ‘‘an application’’;
(B) in paragraph (2) by striking ‘‘any agency administering activities that receive’’ and inserting ‘‘the State
that receives’’; and
(C) in paragraph (4) by striking ‘‘entitles’’ and inserting
‘‘entitled’’.
SEC. 612. REPORT BY THE SECRETARY.

Section 658L (42 U.S.C. 9858j) is amended—
(1) by striking ‘‘1993’’ and inserting ‘‘1997’’;
(2) by striking ‘‘annually’’ and inserting ‘‘biennially’’; and

110 STAT. 2286

PUBLIC LAW 104–193—AUG. 22, 1996
(3) by striking ‘‘Education and Labor’’ and inserting
‘‘Economic and Educational Opportunities’’.

SEC. 613. ALLOTMENTS.

Section 658O (42 U.S.C. 9858m) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘POSSESSIONS’’ and inserting
‘‘POSSESSIONS’’;
(ii) by inserting ‘‘and’’ after ‘‘States,’’; and
(iii) by striking ‘‘, and the Trust Territory of the
Pacific Islands’’; and
(B) in paragraph (2), by striking ‘‘more than 3 percent’’
and inserting ‘‘less than 1 percent, and not more than
2 percent,’’;
(2) in subsection (c)—
(A) in paragraph (5) by striking ‘‘our’’ and inserting
‘‘out’’; and
(B) by adding at the end thereof the following new
paragraph:
‘‘(6) CONSTRUCTION OR RENOVATION OF FACILITIES.—
‘‘(A) REQUEST FOR USE OF FUNDS.—An Indian tribe
or tribal organization may submit to the Secretary a
request to use amounts provided under this subsection
for construction or renovation purposes.
‘‘(B) DETERMINATION.—With respect to a request
submitted under subparagraph (A), and except as provided
in subparagraph (C), upon a determination by the Secretary
that adequate facilities are not otherwise available to an
Indian tribe or tribal organization to enable such tribe
or organization to carry out child care programs in accordance with this subchapter, and that the lack of such facilities will inhibit the operation of such programs in the
future, the Secretary may permit the tribe or organization
to use assistance provided under this subsection to make
payments for the construction or renovation of facilities
that will be used to carry out such programs.
‘‘(C) LIMITATION.—The Secretary may not permit an
Indian tribe or tribal organization to use amounts provided
under this subsection for construction or renovation if such
use will result in a decrease in the level of child care
services provided by the tribe or organization as compared
to the level of such services provided by the tribe or
organization in the fiscal year preceding the year for which
the determination under subparagraph (A) is being made.
‘‘(D) UNIFORM PROCEDURES.—The Secretary shall
develop and implement uniform procedures for the solicitation and consideration of requests under this paragraph.’’;
and
(3) in subsection (e), by adding at the end thereof the
following new paragraph:
‘‘(4) INDIAN TRIBES OR TRIBAL ORGANIZATIONS.—Any portion
of a grant or contract made to an Indian tribe or tribal organization under subsection (c) that the Secretary determines is not
being used in a manner consistent with the provision of this
subchapter in the period for which the grant or contract is
made available, shall be allotted by the Secretary to other

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2287

tribes or organizations that have submitted applications under
subsection (c) in accordance with their respective needs.’’.
SEC. 614. DEFINITIONS.

Section 658P (42 U.S.C. 9858n) is amended—
(1) in paragraph (2), in the first sentence by inserting
‘‘or as a deposit for child care services if such a deposit is
required of other children being cared for by the provider’’
after ‘‘child care services’’; and
(2) by striking paragraph (3);
(3) in paragraph (4)(B), by striking ‘‘75 percent’’ and
inserting ‘‘85 percent’’;
(4) in paragraph (5)(B)—
(A) by inserting ‘‘great grandchild, sibling (if such
provider lives in a separate residence),’’ after ‘‘grandchild,’’;
(B) by striking ‘‘is registered and’’; and
(C) by striking ‘‘State’’ and inserting ‘‘applicable’’.
(5) by striking paragraph (10);
(6) in paragraph (13)—
(A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and
(B) by striking ‘‘, and the Trust Territory of the Pacific
Islands’’;
(7) in paragraph (14)—
(A) by striking ‘‘The term’’ and inserting the following:
‘‘(A) IN GENERAL.—The term’’; and
(B) by adding at the end thereof the following new
subparagraph:
‘‘(B) OTHER ORGANIZATIONS.—Such term includes a
Native Hawaiian Organization, as defined in section
4009(4) of the Augustus F. Hawkins-Robert T. Stafford
Elementary and Secondary School Improvement Amendments of 1988 (20 U.S.C. 4909(4)) and a private nonprofit
organization established for the purpose of serving youth
who are Indians or Native Hawaiians.’’.
SEC. 615. EFFECTIVE DATE.

(a) IN GENERAL.—Except as provided in subsection (b), this
title and the amendments made by this title shall take effect
on October 1, 1996.
(b) EXCEPTION.—The amendment made by section 603(a) shall
take effect on the date of enactment of this Act.

TITLE VII—CHILD NUTRITION
PROGRAMS
Subtitle A—National School Lunch Act
SEC. 701. STATE DISBURSEMENT TO SCHOOLS.

(a) IN GENERAL.—Section 8 of the National School Lunch Act
(42 U.S.C. 1757) is amended—
(1) in the third sentence, by striking ‘‘Nothing’’ and all
that follows through ‘‘educational agency to’’ and inserting ‘‘The
State educational agency may’’;
(2) by striking the fourth and fifth sentences;

42 USC 9858
note.

110 STAT. 2288

PUBLIC LAW 104–193—AUG. 22, 1996

(3) by redesignating the first through seventh sentences,
as amended by paragraph (2), as subsections (a) through (g),
respectively;
(4) in subsection (b), as redesignated by paragraph (3),
by striking ‘‘the preceding sentence’’ and inserting ‘‘subsection
(a)’’; and
(5) in subsection (d), as redesignated by paragraph (3),
by striking ‘‘Such food costs’’ and inserting ‘‘Use of funds paid
to States’’.
(b) DEFINITION OF CHILD.—Section 12(d) of the National School
Lunch Act (42 U.S.C. 1760(d)) is amended by adding at the end
the following:
‘‘(9) CHILD.—
‘‘(A) IN GENERAL.—The term ‘child’ includes an individual, regardless of age, who—
‘‘(i) is determined by a State educational agency,
in accordance with regulations prescribed by the Secretary, to have one or more mental or physical disabilities; and
‘‘(ii) is attending any institution, as defined in
section 17(a), or any nonresidential public or nonprofit
private school of high school grade or under, for the
purpose of participating in a school program established for individuals with mental or physical disabilities.
‘‘(B) RELATIONSHIP TO CHILD AND ADULT CARE FOOD
PROGRAM.—No institution that is not otherwise eligible
to participate in the program under section 17 shall be
considered eligible because of this paragraph.’’.
SEC. 702. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

(a) NUTRITIONAL STANDARDS.—Section 9(a) of the National
School Lunch Act (42 U.S.C. 1758(a)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘(2)(A) Lunches’’ and inserting ‘‘(2)
Lunches’’;
(B) by striking subparagraph (B); and
(C) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively;
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as paragraph (3).
(b) UTILIZATION OF AGRICULTURAL COMMODITIES.—Section 9(c)
of the National School Lunch Act (42 U.S.C. 1758(c)) is amended—
(1) in the fifth sentence, by striking ‘‘of the provisions
of law referred to in the preceding sentence’’ and inserting
‘‘provision of law’’; and
(2) by striking the second, fourth, and sixth sentences.
(c) NUTRITIONAL INFORMATION.—Section 9(f) of the National
School Lunch Act (42 U.S.C. 1758(f)) is amended—
(1) by striking paragraph (1);
(2) by striking ‘‘(2)’’;
(3) by redesignating subparagraphs (A) through (D) as
paragraphs (1) through (4), respectively;
(4) by striking paragraph (1), as redesignated by paragraph
(3), and inserting the following:
‘‘(1) NUTRITIONAL REQUIREMENTS.—Except as provided in
paragraph (2), not later than the first day of the 1996–1997

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2289

school year, schools that are participating in the school lunch
or school breakfast program shall serve lunches and breakfasts
under the program that—
‘‘(A) are consistent with the goals of the most recent
Dietary Guidelines for Americans published under section
301 of the National Nutrition Monitoring and Related
Research Act of 1990 (7 U.S.C. 5341); and
‘‘(B) provide, on the average over each week, at least—
‘‘(i) with respect to school lunches, 1⁄3 of the daily
recommended dietary allowance established by the
Food and Nutrition Board of the National Research
Council of the National Academy of Sciences; and
‘‘(ii) with respect to school breakfasts, 1⁄4 of the
daily recommended dietary allowance established by
the Food and Nutrition Board of the National Research
Council of the National Academy of Sciences.’’;
(5) in paragraph (3), as redesignated by paragraph (3)—
(A) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and
(B) in subparagraph (A), as so redesignated, by
redesignating subclauses (I) and (II) as clauses (i) and
(ii), respectively; and
(6) in paragraph (4), as redesignated by paragraph (3)—
(A) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively;
(B) in subparagraph (A), as redesignated by subparagraph (A), by redesignating subclauses (I) and (II) as
clauses (i) and (ii), respectively; and
(C) in subparagraph (A)(ii), as redesignated by
subparagraph (B), by striking ‘‘subparagraph (C)’’ and
inserting ‘‘paragraph (3)’’.
(d) USE OF RESOURCES.—Section 9 of the National School Lunch
Act (42 U.S.C. 1758) is amended by striking subsection (h).
SEC. 703. FREE AND REDUCED PRICE POLICY STATEMENT.

Section 9(b)(2) of the National School Lunch Act (42 U.S.C.
1758(b)(2)) is amended by adding at the end the following:
‘‘(D) FREE AND REDUCED PRICE POLICY STATEMENT.—
After the initial submission, a school food authority shall
not be required to submit a free and reduced price policy
statement to a State educational agency under this Act
unless there is a substantive change in the free and reduced
price policy of the school food authority. A routine change
in the policy of a school food authority, such as an annual
adjustment of the income eligibility guidelines for free and
reduced price meals, shall not be sufficient cause for requiring the school food authority to submit a policy statement.’’.
SEC. 704. SPECIAL ASSISTANCE.

(a) EXTENSION OF PAYMENT PERIOD.—Section 11(a)(1)(D)(i) of
the National School Lunch Act (42 U.S.C. 1759a(a)(1)(D)(i)) is
amended by striking ‘‘, on the date of enactment of this subparagraph,’’.
(b) ROUNDING RULE FOR LUNCH, BREAKFAST, AND SUPPLEMENT
RATES.—
(1) IN GENERAL.—The third sentence of section 11(a)(3)(B)
of the National School Lunch Act (42 U.S.C. 1759a(a)(3)(B))
is amended by adding before the period at the end the following:

110 STAT. 2290

42 USC 1759a
note.

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘, except that adjustments to payment rates for meals and
supplements served to individuals not determined to be eligible
for free or reduced price meals and supplements shall be computed to the nearest lower cent increment and based on the
unrounded amount for the preceding 12-month period’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall become effective on July 1, 1997.
(c) APPLICABILITY OF OTHER PROVISIONS.—Section 11 of the
National School Lunch Act (42 U.S.C. 1759a) is amended—
(1) by striking subsection (d);
(2) in subsection (e)(2)—
(A) by striking ‘‘The’’ and inserting ‘‘On request of
the Secretary, the’’; and
(B) by striking ‘‘each month’’; and
(3) by redesignating subsections (e) and (f), as so amended,
as subsections (d) and (e), respectively.
SEC. 705. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

(a) ACCOUNTS AND RECORDS.—The second sentence of section
12(a) of the National School Lunch Act (42 U.S.C. 1760(a)) is
amended by striking ‘‘at all times be available’’ and inserting ‘‘be
available at any reasonable time’’.
(b) RESTRICTION ON REQUIREMENTS.—Section 12(c) of the
National School Lunch Act (42 U.S.C. 1760(c)) is amended by striking ‘‘neither the Secretary nor the State shall’’ and inserting ‘‘the
Secretary shall not’’.
(c) DEFINITIONS.—Section 12(d) of the National School Lunch
Act (42 U.S.C. 1760(d)), as amended by section 701(b), is amended—
(1) in paragraph (1), by striking ‘‘the Trust Territory of
the Pacific Islands’’ and inserting ‘‘the Commonwealth of the
Northern Mariana Islands’’;
(2) by striking paragraphs (3) and (4); and
(3) by redesignating paragraphs (1), (2), and (5) through
(9) as paragraphs (6), (7), (3), (4), (2), (5), and (1), respectively,
and rearranging the paragraphs so as to appear in numerical
order.
(d) ADJUSTMENTS TO NATIONAL AVERAGE PAYMENT RATES.—
Section 12(f) of the National School Lunch Act (42 U.S.C. 1760(f))
is amended by striking ‘‘the Trust Territory of the Pacific Islands,’’.
(e) EXPEDITED RULEMAKING.—Section 12(k) of the National
School Lunch Act (42 U.S.C. 1760(k)) is amended—
(1) by striking paragraphs (1), (2), and (5);
(2) by redesignating paragraphs (3) and (4) as paragraphs
(1) and (2), respectively; and
(3) in paragraph (1), as redesignated by paragraph (2),
by striking ‘‘Guidelines’’ and inserting ‘‘guidelines contained
in the most recent ‘Dietary Guidelines for Americans’ that
is published under section 301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341)’’.
(f) WAIVER.—Section 12(l) of the National School Lunch Act
(42 U.S.C. 1760(l)) is amended—
(1) in paragraph (2)(A)—
(A) in clause (iii), by adding ‘‘and’’ at the end;
(B) in clause (iv), by striking the semicolon at the
end and inserting a period; and
(C) by striking clauses (v) through (vii);
(2) in paragraph (3)—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2291

(A) in subparagraph (A), by striking ‘‘(A)’’; and
(B) by striking subparagraphs (B) through (D);
(3) in paragraph (4)—
(A) in the matter preceding subparagraph (A), by striking ‘‘of any requirement relating’’ and inserting ‘‘that
increases Federal costs or that relates’’;
(B) by striking subparagraph (D);
(C) by redesignating subparagraphs (E) through (N)
as subparagraphs (D) through (M), respectively; and
(D) in subparagraph (L), as redesignated by subparagraph (C), by striking ‘‘and’’ at the end and inserting ‘‘or’’;
and
(4) in paragraph (6)—
(A) by striking ‘‘(A)(i)’’ and all that follows through
‘‘(B)’’; and
(B) by redesignating clauses (i) through (iv) as subparagraphs (A) through (D), respectively.
SEC. 706. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

(a) ESTABLISHMENT OF PROGRAM.—Section 13(a) of the National
School Lunch Act (42 U.S.C. 1761(a)) is amended—
(1) in paragraph (1)—
(A) in the first sentence, by striking ‘‘initiate, maintain,
and expand’’ and inserting ‘‘initiate and maintain’’; and
(B) in subparagraph (E) of the second sentence, by
striking ‘‘the Trust Territory of the Pacific Islands,’’; and
(2) in paragraph (7)(A), by striking ‘‘Except as provided
in subparagraph (C), private’’ and inserting ‘‘Private’’.
(b) SERVICE INSTITUTIONS.—Section 13(b) of the National School
Lunch Act (42 U.S.C. 1761(b)) is amended by striking ‘‘(b)(1)’’ and
all that follows through the end of paragraph (1) and inserting
the following:
‘‘(b) SERVICE INSTITUTIONS.—
‘‘(1) PAYMENTS.—
‘‘(A) IN GENERAL.—Except as otherwise provided in
this paragraph, payments to service institutions shall equal
the full cost of food service operations (which cost shall
include the costs of obtaining, preparing, and serving food,
but shall not include administrative costs).
‘‘(B) MAXIMUM AMOUNTS.—Subject to subparagraph (C),
payments to any institution under subparagraph (A) shall
not exceed—
‘‘(i) $1.97 for each lunch and supper served;
‘‘(ii) $1.13 for each breakfast served; and
‘‘(iii) 46 cents for each meal supplement served.
‘‘(C) ADJUSTMENTS.—Amounts specified in subparagraph (B) shall be adjusted on January 1, 1997, and each
January 1 thereafter, to the nearest lower cent increment
to reflect changes for the 12-month period ending the
preceding November 30 in the series for food away from
home of the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of
the Department of Labor. Each adjustment shall be based
on the unrounded adjustment for the prior 12-month
period.’’.

110 STAT. 2292

PUBLIC LAW 104–193—AUG. 22, 1996

(c) ADMINISTRATION OF SERVICE INSTITUTIONS.—Section 13(b)(2)
of the National School Lunch Act (42 U.S.C. 1761(b)(2)) is
amended—
(1) in the first sentence, by striking ‘‘four meals’’ and inserting ‘‘3 meals, or 2 meals and 1 supplement,’’; and
(2) by striking the second sentence.
(d) REIMBURSEMENTS.—Section 13(c)(2) of the National School
Lunch Act (42 U.S.C. 1761(c)(2)) is amended—
(1) by striking subparagraphs (A), (C), (D), and (E);
(2) by striking ‘‘(B)’’;
(3) by striking ‘‘, and such higher education institutions,’’; and
(4) by striking ‘‘without application’’ and inserting ‘‘on
showing residence in areas in which poor economic conditions
exist or on the basis of income eligibility statements for children
enrolled in the program’’.
(e) ADVANCE PROGRAM PAYMENTS.—Section 13(e)(1) of the
National School Lunch Act (42 U.S.C. 1761(e)(1)) is amended—
(1) by striking ‘‘institution: Provided, That (A) the’’ and
inserting ‘‘institution. The’’;
(2) by inserting ‘‘(excluding a school)’’ after ‘‘any service
institution’’; and
(3) by striking ‘‘responsibilities, and (B) no’’ and inserting
‘‘responsibilities. No’’.
(f) FOOD REQUIREMENTS.—Section 13(f) of the National School
Lunch Act (42 U.S.C. 1761(f)) is amended—
(1) by redesignating the first through seventh sentences
as paragraphs (1) through (7), respectively;
(2) by striking paragraph (3), as redesignated by paragraph (1);
(3) in paragraph (4), as redesignated by paragraph (1),
by striking ‘‘the first sentence’’ and inserting ‘‘paragraph (1)’’;
(4) in subparagraph (B) of paragraph (6), as redesignated by paragraph (1), by striking ‘‘that bacteria levels’’
and all that follows through the period at the end and inserting
‘‘conformance with standards set by local health authorities.’’;
and
(5) by redesignating paragraphs (4) through (7), as redesignated by paragraph (1), as paragraphs (3) through (6), respectively.
(g) PERMITTING OFFER VERSUS SERVE.—Section 13(f) of the
National School Lunch Act (42 U.S.C. 1761(f)), as amended by
subsection (f), is amended by adding at the end the following:
‘‘(7) OFFER VERSUS SERVE.—A school food authority participating as a service institution may permit a child attending
a site on school premises operated directly by the authority
to refuse one or more items of a meal that the child does
not intend to consume, under rules that the school uses for
school meals programs. A refusal of an offered food item shall
not affect the amount of payments made under this section
to a school for the meal.’’.
(h) RECORDS.—The second sentence of section 13(m) of the
National School Lunch Act (42 U.S.C. 1761(m)) is amended by
striking ‘‘at all times be available’’ and inserting ‘‘be available
at any reasonable time’’.
(i) REMOVING MANDATORY NOTICE TO INSTITUTIONS.—Section
13(n)(2) of the National School Lunch Act (42 U.S.C. 1761(n)(2))

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2293

is amended by striking ‘‘, and its plans and schedule for informing
service institutions of the availability of the program’’.
(j) PLAN.—Section 13(n) of the National School Lunch Act (42
U.S.C. 1761(n)), as amended by subsection (i), is amended—
(1) in paragraph (2), by striking ‘‘, including the State’s
methods of assessing need’’;
(2) by striking paragraph (3);
(3) in paragraph (4), by striking ‘‘and schedule’’; and
(4) by redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively.
(k) MONITORING AND TRAINING.—Section 13(q) of the National
School Lunch Act (42 U.S.C. 1761(q)) is amended—
(1) by striking paragraphs (2) and (4);
(2) in paragraph (3), by striking ‘‘paragraphs (1) and (2)
of this subsection’’ and inserting ‘‘paragraph (1)’’; and
(3) by redesignating paragraph (3) as paragraph (2).
(l) EXPIRED PROGRAM.—Section 13 of the National School Lunch
Act (42 U.S.C. 1761) is amended—
(1) by striking subsection (p); and
(2) by redesignating subsections (q) and (r) as subsections
(p) and (q), respectively.
(m) EFFECTIVE DATE.—The amendments made by subsection
(b) shall become effective on January 1, 1997.
SEC. 707. COMMODITY DISTRIBUTION.

(a) CEREAL AND SHORTENING IN COMMODITY DONATIONS.—Section 14(b) of the National School Lunch Act (42 U.S.C. 1762a(b))
is amended—
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively.
(b) STATE ADVISORY COUNCIL.—Section 14(e) of the National
School Lunch Act (42 U.S.C. 1762a(e)) is amended to read as follows:
‘‘(e) Each State agency that receives food assistance payments
under this section for any school year shall consult with representatives of schools in the State that participate in the school lunch
program with respect to the needs of such schools relating to the
manner of selection and distribution of commodity assistance for
such program.’’.
(c) CASH COMPENSATION FOR PILOT PROJECT SCHOOLS.—Section
14(g) of the National School Lunch Act (42 U.S.C. 1762a(g)) is
amended by striking paragraph (3).
SEC. 708. CHILD AND ADULT CARE FOOD PROGRAM.

(a) ESTABLISHMENT OF PROGRAM.—Section 17 of the National
School Lunch Act (42 U.S.C. 1766) is amended in the first sentence
of subsection (a), by striking ‘‘initiate, maintain, and expand’’ and
inserting ‘‘initiate and maintain’’.
(b) PAYMENTS TO SPONSOR EMPLOYEES.—Paragraph (2) of the
last sentence of section 17(a) of the National School Lunch Act
(42 U.S.C. 1766(a)) is amended—
(1) in subparagraph (B), by striking ‘‘and’’ at the end;
(2) in subparagraph (C), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) in the case of a family or group day care home
sponsoring organization that employs more than one
employee, the organization does not base payments to an

42 USC 1761
note.

110 STAT. 2294

PUBLIC LAW 104–193—AUG. 22, 1996

employee of the organization on the number of family or
group day care homes recruited.’’.
(c) TECHNICAL ASSISTANCE.—The last sentence of section
17(d)(1) of the National School Lunch Act (42 U.S.C. 1766(d)(1))
is amended by striking ‘‘, and shall provide technical assistance’’
and all that follows through ‘‘its application’’.
(d) REIMBURSEMENT OF CHILD CARE INSTITUTIONS.—Section
17(f)(2)(B) of the National School Lunch Act (42 U.S.C. 1766(f)(2)(B))
is amended by striking ‘‘two meals and two supplements or three
meals and one supplement’’ and inserting ‘‘2 meals and 1 supplement’’.
(e) IMPROVED TARGETING OF DAY CARE HOME REIMBURSEMENTS.—
(1) RESTRUCTURED DAY CARE HOME REIMBURSEMENTS.—Section 17(f)(3) of the National School Lunch Act (42 U.S.C.
1766(f)(3)) is amended by striking ‘‘(3)(A) Institutions’’ and all
that follows through the end of subparagraph (A) and inserting
the following:
‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP DAY CARE HOME
SPONSORING ORGANIZATIONS.—
‘‘(A) REIMBURSEMENT FACTOR.—
‘‘(i) IN GENERAL.—An institution that participates
in the program under this section as a family or group
day care home sponsoring organization shall be provided, for payment to a home sponsored by the
organization, reimbursement factors 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) TIER I FAMILY OR GROUP DAY CARE HOMES.—
‘‘(I) DEFINITION OF TIER I FAMILY OR GROUP
DAY CARE HOME.—In this paragraph, the term ‘tier
I family or group day care home’ means—
‘‘(aa) a family or group day care home
that is located in a geographic area, as defined
by the Secretary based on census data, in
which at least 50 percent of the children residing in the area are members of households
whose incomes meet the income eligibility
guidelines for free or reduced price meals
under section 9;
‘‘(bb) a family or group day care home
that is located in an area served by a school
enrolling elementary students in which at
least 50 percent of the total number of children
enrolled are certified eligible to receive free
or reduced price school meals under this Act
or the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.); or
‘‘(cc) a family or group day care home
that is operated by a provider whose household
meets the income eligibility guidelines for free
or reduced price meals under section 9 and
whose income is verified by the sponsoring
organization of the home under regulations
established by the Secretary.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2295

‘‘(II) REIMBURSEMENT.—Except as provided in
subclause (III), a tier I family or group day care
home shall be provided reimbursement factors
under this clause without a requirement for documentation of the costs described in clause (i),
except that reimbursement shall not be provided
under this subclause for meals or supplements
served to the children of a person acting as a
family or group day care home provider unless
the children meet the income eligibility guidelines
for free or reduced price meals under section 9.
‘‘(III) FACTORS.—Except as provided in subclause (IV), the reimbursement factors applied to
a home referred to in subclause (II) shall be the
factors in effect on July 1, 1996.
‘‘(IV) ADJUSTMENTS.—The reimbursement factors under this subparagraph shall be adjusted
on July 1, 1997, and each July 1 thereafter, to
reflect changes in the Consumer Price Index for
food at home for the most recent 12-month period
for which the data are available. The reimbursement factors under this subparagraph shall be
rounded to the nearest lower cent increment and
based on the unrounded adjustment in effect on
June 30 of the preceding school year.
‘‘(iii) TIER II FAMILY OR GROUP DAY CARE HOMES.—
‘‘(I) IN GENERAL.—
‘‘(aa) FACTORS.—Except as provided 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)(I), the
reimbursement factors shall be 95 cents for
lunches and suppers, 27 cents for breakfasts,
and 13 cents for supplements.
‘‘(bb) ADJUSTMENTS.—The factors shall be
adjusted on July 1, 1997, and each July 1
thereafter, to reflect changes in the Consumer
Price Index for food at home for the most
recent 12-month period for which the data
are available. The reimbursement factors
under this item shall be rounded down to the
nearest lower cent increment and based on
the unrounded adjustment for the preceding
12-month period.
‘‘(cc) REIMBURSEMENT.—A family or group
day care home shall be provided reimbursement factors under this subclause without a
requirement for documentation of the costs
described in clause (i), except that reimbursement shall not be provided under this subclause for meals or supplements served to the
children of a person acting as a family or
group day care home provider unless
the children meet the income eligibility guidelines for free or reduced price meals under
section 9.

110 STAT. 2296

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(II) OTHER FACTORS.—A family or group day
care home that does not meet the criteria set forth
in clause (ii)(I) may elect to be provided reimbursement factors determined in accordance with the
following requirements:
‘‘(aa) CHILDREN ELIGIBLE FOR FREE OR
REDUCED PRICE MEALS.—In the case of meals
or supplements served under this subsection
to children who are members of households
whose incomes meet the income eligibility
guidelines for free or reduced price meals
under section 9, the family or group day care
home shall be provided reimbursement factors
set by the Secretary in accordance with clause
(ii)(III).
‘‘(bb) INELIGIBLE CHILDREN.—In the case
of meals or supplements served under this
subsection to children who are members of
households whose incomes do not meet the
income eligibility guidelines, the family or
group day care home shall be provided
reimbursement factors in accordance with subclause (I).
‘‘(III) INFORMATION AND DETERMINATIONS.—
‘‘(aa) IN GENERAL.—If a family or group
day care home elects to claim the factors
described in subclause (II), the family or group
day care home sponsoring organization serving
the home shall collect the necessary income
information, as determined by the Secretary,
from any parent or other caretaker to make
the determinations specified in subclause (II)
and shall make the determinations in accordance with rules prescribed by the Secretary.
‘‘(bb) CATEGORICAL ELIGIBILITY.—In making a determination under item (aa), a family
or group day care home sponsoring organization may consider a child participating in or
subsidized under, or a child with a parent
participating in or subsidized under, a federally or State supported child care or other
benefit program with an income eligibility
limit that does not exceed the eligibility standard for free or reduced price meals under section 9 to be a child who is a member of a
household whose income meets the income
eligibility guidelines under section 9.
‘‘(cc) FACTORS FOR CHILDREN ONLY.—A
family or group day care home may elect to
receive the reimbursement factors prescribed
under clause (ii)(III) solely for the children
participating in a program referred to in item
(bb) if the home elects not to have income
statements collected from parents or other
caretakers.
‘‘(IV) SIMPLIFIED MEAL COUNTING AND REPORTING PROCEDURES.—The Secretary shall prescribe

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2297

simplified meal counting and reporting procedures
for use by a family or group day care home that
elects to claim the factors under subclause (II)
and by a family or group day care home sponsoring
organization that sponsors the home. The procedures the Secretary prescribes may include 1 or
more of the following:
‘‘(aa) Setting an annual percentage for
each home of the number of meals served that
are to be reimbursed in accordance with the
reimbursement factors prescribed under clause
(ii)(III) and an annual percentage of the number of meals served that are to be reimbursed
in accordance with the reimbursement factors
prescribed under subclause (I), based on the
family income of children enrolled in the home
in a specified month or other period.
‘‘(bb) Placing a home into 1 of 2 or more
reimbursement categories annually based on
the percentage of children in the home whose
households have incomes that meet the income
eligibility guidelines under section 9, with each
such reimbursement category carrying a set
of reimbursement factors such as the factors
prescribed under clause (ii)(III) or subclause
(I) or factors established within the range of
factors prescribed under clause (ii)(III) and
subclause (I).
‘‘(cc) Such other simplified procedures as
the Secretary may prescribe.
‘‘(V) MINIMUM VERIFICATION REQUIREMENTS.—
The Secretary may establish any minimum verification requirements that are necessary to carry
out this clause.’’.
(2) GRANTS TO STATES TO PROVIDE ASSISTANCE TO FAMILY
OR GROUP DAY CARE HOMES.—Section 17(f)(3) of the National
School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by adding
at the end the following:
‘‘(D) GRANTS TO STATES TO PROVIDE ASSISTANCE TO
FAMILY OR GROUP DAY CARE HOMES.—
‘‘(i) IN GENERAL.—
‘‘(I) RESERVATION.—From amounts made available to carry out this section, the Secretary shall
reserve $5,000,000 of the amount made available
for fiscal year 1997.
‘‘(II) PURPOSE.—The Secretary shall use the
funds made available under subclause (I) to provide grants to States for the purpose of providing—
‘‘(aa) assistance, including grants, to family and day care home sponsoring organizations and other appropriate organizations, in
securing and providing training, materials,
automated data processing assistance, and
other assistance for the staff of the sponsoring
organizations; and
‘‘(bb) training and other assistance to
family and group day care homes in the

110 STAT. 2298

PUBLIC LAW 104–193—AUG. 22, 1996
implementation of the amendment to subparagraph (A) made by section 708(e)(1) of the
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996.
‘‘(ii) ALLOCATION.—The Secretary shall allocate
from the funds reserved under clause (i)(I)—
‘‘(I) $30,000 in base funding to each
State; and
‘‘(II) any remaining amount among the States,
based on the number of family day care homes
participating in the program in a State during
fiscal year 1995 as a percentage of the number
of all family day care homes participating in the
program during fiscal year 1995.
‘‘(iii) RETENTION OF FUNDS.—Of the amount of
funds made available to a State for fiscal year 1997
under clause (i), the State may retain not to exceed
30 percent of the amount to carry out this subparagraph.
‘‘(iv) ADDITIONAL PAYMENTS.—Any payments
received under this subparagraph shall be in addition
to payments that a State receives under subparagraph
(A).’’.
(3) PROVISION OF DATA.—Section 17(f)(3) of the National
School Lunch Act (42 U.S.C. 1766(f)(3)), as amended by paragraph (2), is amended by adding at the end the following:
‘‘(E) PROVISION OF DATA TO FAMILY OR GROUP DAY
CARE HOME SPONSORING ORGANIZATIONS.—
‘‘(i) CENSUS DATA.—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 survey or other appropriate census survey for which the data are available
showing which areas in the State meet the requirements of subparagraph (A)(ii)(I)(aa). The State agency
shall provide the data to family or group day care
home sponsoring organizations located in the State.
‘‘(ii) SCHOOL DATA.—
‘‘(I) IN GENERAL.—A State agency administering the school lunch program under this Act or
the school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
shall provide to approved family or group day care
home sponsoring organizations a list of schools
serving elementary school children in the State
in which not less than 1⁄2 of the children enrolled
are certified to receive free or reduced price meals.
The State agency shall collect the data necessary
to create the list annually and provide the list
on a timely basis to any approved family or group
day care home sponsoring organization that
requests the list.
‘‘(II) USE OF DATA FROM PRECEDING SCHOOL
YEAR.—In determining for a fiscal year or other
annual period whether a home qualifies as a tier
I family or group day care home under subparagraph (A)(ii)(I), the State agency administering the

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2299

program under this section, and a family or group
day care home sponsoring organization, shall use
the most current available data at the time of
the determination.
‘‘(iii) DURATION OF DETERMINATION.—For purposes
of this section, a determination that a family or group
day care home is located in an area that qualifies
the home as a tier I family or group day care home
(as the term is defined in subparagraph (A)(ii)(I)), shall
be in effect for 3 years (unless the determination is
made on the basis of census data, in which case the
determination shall remain in effect until more recent
census data are available) unless the State agency
determines that the area in which the home is located
no longer qualifies the home as a tier I family or
group day care home.’’.
(4) CONFORMING AMENDMENTS.—Section 17(c) of the
National School Lunch Act (42 U.S.C. 1766(c)) is amended
by inserting ‘‘except as provided in subsection (f)(3),’’ after
‘‘For purposes of this section,’’ each place it appears in paragraphs (1), (2), and (3).
(f) REIMBURSEMENT.—Section 17(f) of the National School
Lunch Act (42 U.S.C. 1766(f)) is amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking the third and
fourth sentences; and
(B) in subparagraph (C)(ii), by striking ‘‘conduct outreach’’ and all that follows through ‘‘may become’’ and
inserting ‘‘assist unlicensed family or group day care homes
in becoming’’; and
(2) in the first sentence of paragraph (4), by striking ‘‘shall’’
and inserting ‘‘may’’.
(g) NUTRITIONAL REQUIREMENTS.—Section 17(g)(1) of the
National School Lunch Act (42 U.S.C. 1766(g)(1)) is amended—
(1) in subparagraph (A), by striking the second
sentence; and
(2) in subparagraph (B), by striking the second sentence.
(h) ELIMINATION OF STATE PAPERWORK AND OUTREACH
BURDEN.—Section 17 of the National School Lunch Act (42 U.S.C.
1766) is amended by striking subsection (k) and inserting the following:
‘‘(k) TRAINING AND TECHNICAL ASSISTANCE.—A State participating in the program established under this section shall provide
sufficient training, technical assistance, and monitoring to facilitate
effective operation of the program. The Secretary shall assist the
State in developing plans to fulfill the requirements of this subsection.’’.
(i) RECORDS.—The second sentence of section 17(m) of the
National School Lunch Act (42 U.S.C. 1766(m)) is amended by
striking ‘‘at all times’’ and inserting ‘‘at any reasonable time’’.
(j) UNNEEDED PROVISION.—Section 17 of the National School
Lunch Act is amended by striking subsection (q).
(k) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall become effective on
the date of enactment of this Act.

42 USC 1766.
42 USC 1766
note.

110 STAT. 2300

PUBLIC LAW 104–193—AUG. 22, 1996
(2) IMPROVED TARGETING OF DAY CARE HOME REIMBURSEMENTS.—The amendments made by paragraphs (1) and (4) of

42 USC 1766
note.

42 USC 1766
note.

subsection (e) shall become effective on July 1, 1997.
(3) REGULATIONS.—
(A) INTERIM REGULATIONS.—Not later than January
1, 1997, the Secretary of Agriculture shall issue interim
regulations to implement—
(i) the amendments made by paragraphs (1), (3),
and (4) of subsection (e); and
(ii) section 17(f)(3)(C) of the National School Lunch
Act (42 U.S.C. 1766(f)(3)(C)).
(B) FINAL REGULATIONS.—Not later than July 1, 1997,
the Secretary of Agriculture shall issue final regulations
to implement the provisions of law referred to in subparagraph (A).
(l) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM PARTICIPATION AND FAMILY DAY CARE LICENSING.—
(1) IN GENERAL.—The Secretary of Agriculture, in conjunction with the Secretary of Health and Human Services, shall
study the impact of the amendments made by this
section on—
(A) the number of family day care homes participating
in the child and adult care food program established under
section 17 of the National School Lunch Act (42 U.S.C.
1766);
(B) the number of day care home sponsoring organizations participating in the program;
(C) the number of day care homes that are licensed,
certified, registered, or approved by each State in accordance with regulations issued by the Secretary;
(D) the rate of growth of the numbers referred to
in subparagraphs (A) through (C);
(E) the nutritional adequacy and quality of meals
served in family day care homes that—
(i) received reimbursement under the program
prior to the amendments made by this section but
do not receive reimbursement after the amendments
made by this section; or
(ii) received full reimbursement under the program
prior to the amendments made by this section but
do not receive full reimbursement after the amendments made by this section; and
(F) the proportion of low-income children participating
in the program prior to the amendments made by this
section and the proportion of low-income children participating in the program after the amendments made by
this section.
(2) REQUIRED DATA.—Each State agency participating in
the child and adult care food program under section 17 of
the National School Lunch Act (42 U.S.C. 1766) shall submit
to the Secretary of Agriculture data on—
(A) the number of family day care homes participating
in the program on June 30, 1997, and June 30, 1998;
(B) the number of family day care homes licensed,
certified, registered, or approved for service on June 30,
1997, and June 30, 1998; and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2301

(C) such other data as the Secretary may require to
carry out this subsection.
(3) SUBMISSION OF REPORT.—Not later than 2 years after
the date of enactment of this section, the Secretary of Agriculture shall submit the study required under this subsection
to the Committee on Economic and Educational Opportunities
of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
SEC. 709. PILOT PROJECTS.

(a) UNIVERSAL FREE PILOT.—Section 18(d) of the National
School Lunch Act (42 U.S.C. 1769(d)) is amended—
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.
(b) DEMONSTRATION PROJECT OUTSIDE SCHOOL HOURS.—Section 18(e) of the National School Lunch Act (42 U.S.C. 1769(e))
is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘(A)’’; and
(ii) by striking ‘‘shall’’ and inserting ‘‘may’’; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (5) and inserting the following:
‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this subsection such
sums as are necessary for each of fiscal years 1997 and 1998.’’.
SEC. 710. REDUCTION OF PAPERWORK.

Section 19 of the National School Lunch Act (42 U.S.C. 1769a)
is repealed.
SEC. 711. INFORMATION ON INCOME ELIGIBILITY.

Section 23 of the National School Lunch Act (42 U.S.C. 1769d)
is repealed.
SEC. 712. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.

Section 24 of the National School Lunch Act (42 U.S.C. 1769e)
is repealed.

Subtitle B—Child Nutrition Act of 1966
SEC. 721. SPECIAL MILK PROGRAM.

Section 3(a)(3) of the Child Nutrition Act of 1966 (42 U.S.C.
1772(a)(3)) is amended by striking ‘‘the Trust Territory of the Pacific
Islands’’ and inserting ‘‘the Commonwealth of the Northern Mariana
Islands’’.
SEC. 722. FREE AND REDUCED PRICE POLICY STATEMENT.

Section 4(b)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1773(b)(1)) is amended by adding at the end the following:
‘‘(E) FREE AND REDUCED PRICE POLICY STATEMENT.—
After the initial submission, a school food authority shall
not be required to submit a free and reduced price policy
statement to a State educational agency under this Act
unless there is a substantive change in the free and reduced
price policy of the school food authority. A routine change

110 STAT. 2302

PUBLIC LAW 104–193—AUG. 22, 1996
in the policy of a school food authority, such as an annual
adjustment of the income eligibility guidelines for free and
reduced price meals, shall not be sufficient cause for requiring the school food authority to submit a policy statement.’’.

SEC. 723. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

(a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD
TION.—Section 4(e)(1)(B) of the Child Nutrition Act of

42 USC 1773
note.

PREPARA1966 (42
U.S.C. 1773(e)(1)(B)) is amended by striking the second sentence.
(b) EXPANSION OF PROGRAM; STARTUP AND EXPANSION COSTS.—
(1) IN GENERAL.—Section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773) is amended by striking subsections (f)
and (g).
(2) EFFECTIVE DATE.—The amendments made by paragraph
(1) shall become effective on October 1, 1996.
SEC. 724. STATE ADMINISTRATIVE EXPENSES.

(a) USE OF FUNDS FOR COMMODITY DISTRIBUTION ADMINISTRASTUDIES.—Section 7 of the Child Nutrition Act of 1966 (42
U.S.C. 1776) is amended—
(1) by striking subsections (e) and (h); and
(2) by redesignating subsections (f), (g), and (i) as subsections (e), (f), and (g), respectively.
(b) APPROVAL OF CHANGES.—Section 7(e) of the Child Nutrition
Act of 1966 (42 U.S.C. 1776(e)), as so redesignated, is amended—
(1) by striking ‘‘each year an annual plan’’ and inserting
‘‘the initial fiscal year a plan’’; and
(2) by adding at the end the following: ‘‘After submitting
the initial plan, a State shall be required to submit to the
Secretary for approval only a substantive change in the plan.’’.
TION;

SEC. 725. REGULATIONS.

Section 10(b) of the Child Nutrition Act of 1966 (42 U.S.C.
1779(b)) is amended—
(1) in paragraph (1), by striking ‘‘(1)’’; and
(2) by striking paragraphs (2) through (4).
SEC. 726. PROHIBITIONS.

Section 11(a) of the Child Nutrition Act of 1966 (42 U.S.C.
1780(a)) is amended by striking ‘‘neither the Secretary nor the
State shall’’ and inserting ‘‘the Secretary shall not’’.
SEC. 727. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784)
is amended—
(1) in paragraph (1), by striking ‘‘the Trust Territory of
the Pacific Islands’’ and inserting ‘‘the Commonwealth of the
Northern Mariana Islands’’; and
(2) in the first sentence of paragraph (3)—
(A) in subparagraph (A), by inserting ‘‘and’’ at the
end; and
(B) by striking ‘‘, and (C)’’ and all that follows through
‘‘Governor of Puerto Rico’’.
SEC. 728. ACCOUNTS AND RECORDS.

The second sentence of section 16(a) of the Child Nutrition
Act of 1966 (42 U.S.C. 1785(a)) is amended by striking ‘‘at all
times be available’’ and inserting ‘‘be available at any reasonable
time’’.

PUBLIC LAW 104–193—AUG. 22, 1996
SEC.

729.

SPECIAL SUPPLEMENTAL NUTRITION
WOMEN, INFANTS, AND CHILDREN.

PROGRAM

110 STAT. 2303
FOR

(a) DEFINITIONS.—Section 17(b) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(b)) is amended—
(1) in paragraph (15)(B)(iii), by inserting ‘‘of not more than
365 days’’ after ‘‘accommodation’’; and
(2) in paragraph (16)—
(A) in subparagraph (A), by adding ‘‘and’’ at the
end; and
(B) in subparagraph (B), by striking ‘‘; and’’ and inserting a period; and
(C) by striking subparagraph (C).
(b) SECRETARY’S PROMOTION OF WIC.—Section 17(c) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(c)) is amended by striking
paragraph (5).
(c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)) is amended by striking paragraph (4).
(d) NUTRITION EDUCATION.—Section 17(e) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(e)) is amended—
(1) in paragraph (2), by striking the third sentence;
(2) in paragraph (4)—
(A) in the matter preceding subparagraph (A), by striking ‘‘shall’’;
(B) by striking subparagraph (A);
(C) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively;
(D) in subparagraph (A), as so redesignated—
(i) by inserting ‘‘shall’’ before ‘‘provide’’; and
(ii) by striking ‘‘and’’ at the end;
(E) in subparagraph (B), as so redesignated—
(i) by inserting ‘‘shall’’ before ‘‘provide’’; and
(ii) by striking the period at the end and inserting
‘‘; and’’; and
(F) by adding at the end the following:
‘‘(C) may provide a local agency with materials describing
other programs for which a participant in the program may
be eligible.’’;
(3) in paragraph (5), by striking ‘‘The State agency shall
ensure that each’’ and inserting ‘‘Each’’; and
(4) by striking paragraph (6).
(e) STATE PLAN.—Section 17(f) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(f)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘annually to the Secretary, by a
date specified by the Secretary, a’’ and inserting ‘‘to
the Secretary, by a date specified by the Secretary,
an initial’’; and
(ii) by adding at the end the following: ‘‘After
submitting the initial plan, a State shall be required
to submit to the Secretary for approval only a substantive change in the plan.’’;
(B) in subparagraph (C)—
(i) by striking clause (iii) and inserting the
following:

110 STAT. 2304

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(iii) a plan to coordinate operations under the program
with other services or programs that may benefit participants
in, and applicants for, the program;’’;
(ii) in clause (vi), by inserting after ‘‘in the State’’
the following: ‘‘(including a plan to improve access
to the program for participants and prospective
applicants who are employed, or who reside in rural
areas)’’;
(iii) in clause (vii), by striking ‘‘to provide program
benefits’’ and all that follows through ‘‘emphasis on’’
and inserting ‘‘for’’;
(iv) by striking clauses (ix), (x), and (xii);
(v) in clause (xiii), by striking ‘‘may require’’ and
inserting ‘‘may reasonably require’’;
(vi) by redesignating clauses (xi) and (xiii), as so
amended, as clauses (ix) and (x), respectively; and
(vii) in clause (ix), as so redesignated, by adding
‘‘and’’ at the end;
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as subparagraph (D);
(2) by striking paragraphs (6) and (22);
(3) in the second sentence of paragraph (5), by striking
‘‘at all times be available’’ and inserting ‘‘be available at any
reasonable time’’;
(4) in paragraph (9)(B), by striking the second sentence;
(5) in the first sentence of paragraph (11), by striking
‘‘, including standards that will ensure sufficient State agency
staff’’;
(6) in paragraph (12), by striking the third sentence;
(7) in paragraph (14), by striking ‘‘shall’’ and inserting
‘‘may’’;
(8) in paragraph (17), by striking ‘‘and to accommodate’’
and all that follows through ‘‘facilities’’;
(9) in paragraph (19), by striking ‘‘shall’’ and inserting
‘‘may’’; and
(10) by redesignating paragraphs (7) through (21) as paragraphs (6) through (20), and paragraphs (23) and (24) as paragraphs (21) and (22), respectively.
(f) INFORMATION.—Section 17(g) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(g)) is amended—
(1) in paragraph (5), by striking ‘‘the report required under
subsection (d)(4)’’ and inserting ‘‘reports on program participant
characteristics’’; and
(2) by striking paragraph (6).
(g) PROCUREMENT OF INFANT FORMULA.—
(1) IN GENERAL.—Section 17(h) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(h)) is amended—
(A) in paragraph (4)(E), by striking ‘‘and, on’’ and all
that follows through ‘‘(d)(4)’’; and
(B) in paragraph (8)—
(i) by striking subparagraphs (A), (C), and (M);
(ii) in subparagraph (G)—
(I) in clause (i), by striking ‘‘(i)’’; and
(II) by striking clauses (ii) through (ix);

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2305

(iii) in subparagraph (I), by striking ‘‘Secretary—’’ and all that follows through ‘‘(v) may’’ and
inserting ‘‘Secretary may’’;
(iv) by redesignating subparagraphs (B) and (D)
through (L) as subparagraphs (A) and (B) through
(J), respectively;
(v) in subparagraph (A)(i), as so redesignated, by
striking ‘‘subparagraphs (C), (D), and (E)(iii), in carrying out subparagraph (A),’’ and inserting ‘‘subparagraphs (B) and (C)(iii),’’;
(vi) in subparagraph (B)(i), as so redesignated, by
striking ‘‘subparagraph (B)’’ each place it appears and
inserting ‘‘subparagraph (A)’’; and
(vii) in subparagraph (C)(iii), as so redesignated,
by striking ‘‘subparagraph (B)’’ and inserting ‘‘subparagraph (A)’’.
(2) APPLICATION.—The amendments made by paragraph
(1) shall not apply to a contract for the procurement of infant
formula under section 17(h)(8) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(h)(8)) that is in effect on the date of
enactment of this subsection.
(h) NATIONAL ADVISORY COUNCIL ON MATERNAL, INFANT, AND
FETAL NUTRITION.—Section 17(k)(3) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(k)(3)) is amended by striking ‘‘Secretary shall
designate’’ and inserting ‘‘Council shall elect’’.
(i) COMPLETED STUDY; COMMUNITY COLLEGE DEMONSTRATION;
GRANTS FOR INFORMATION AND DATA SYSTEM.—Section 17 of the
Child Nutrition Act of 1966 (42 U.S.C. 1786) is amended by striking
subsections (n), (o), and (p).
(j) DISQUALIFICATION OF VENDORS WHO ARE DISQUALIFIED
UNDER THE FOOD STAMP PROGRAM.—Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786), as amended by subsection (i),
is amended by adding at the end the following:
‘‘(n) DISQUALIFICATION OF VENDORS WHO ARE DISQUALIFIED
UNDER THE FOOD STAMP PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall issue regulations
providing criteria for the disqualification under this section
of an approved vendor that is disqualified from accepting benefits under the food stamp program established under the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
‘‘(2) TERMS.—A disqualification under paragraph (1)—
‘‘(A) shall be for the same period as the disqualification
from the program referred to in paragraph (1);
‘‘(B) may begin at a later date than the disqualification
from the program referred to in paragraph (1); and
‘‘(C) shall not be subject to judicial or administrative
review.’’.
SEC. 730. CASH GRANTS FOR NUTRITION EDUCATION.

Section 18 of the Child Nutrition Act of 1966 (42 U.S.C. 1787)
is repealed.
SEC. 731. NUTRITION EDUCATION AND TRAINING.

(a) FINDINGS.—Section 19 of the Child Nutrition Act of 1966
(42 U.S.C. 1788) is amended—
(1) in subsection (a), by striking ‘‘that—’’ and all that
follows through the period at the end and inserting ‘‘that effective dissemination of scientifically valid information to children

42 USC 1786
note.

Regulations.

110 STAT. 2306

PUBLIC LAW 104–193—AUG. 22, 1996

participating or eligible to participate in the school lunch and
related child nutrition programs should be encouraged.’’; and
(2) in subsection (b), by striking ‘‘encourage’’ and all that
follows through ‘‘establishing’’ and inserting ‘‘establish’’.
(b) USE OF FUNDS.—Section 19(f) of the Child Nutrition Act
of 1966 (42 U.S.C. 1788(f)) is amended—
(1) in paragraph (1)—
(A) by striking subparagraph (B); and
(B) in subparagraph (A)—
(i) by striking ‘‘(A)’’;
(ii) by striking clauses (ix) through (xix);
(iii) by redesignating clauses (i) through (viii) and
(xx) as subparagraphs (A) through (H) and (I), respectively;
(iv) in subparagraph (I), as so redesignated, by
striking the period at the end and inserting ‘‘; and’’;
and
(v) by adding at the end the following:
‘‘(J) other appropriate related activities, as determined by
the State.’’;
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as paragraph (2).
(c) ACCOUNTS, RECORDS, AND REPORTS.—The second sentence
of section 19(g)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1788(g)(1)) is amended by striking ‘‘at all times be available’’ and
inserting ‘‘be available at any reasonable time’’.
(d) STATE COORDINATORS FOR NUTRITION; STATE PLAN.—Section
19(h) of the Child Nutrition Act of 1966 (42 U.S.C. 1788(h)) is
amended—
(1) in the second sentence of paragraph (1)—
(A) by striking ‘‘as provided in paragraph (2) of this
subsection’’; and
(B) by striking ‘‘as provided in paragraph (3) of this
subsection’’;
(2) in paragraph (2), by striking the second and third
sentences; and
(3) by striking paragraph (3).
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 19(i) of the
Child Nutrition Act of 1966 (42 U.S.C. 1788(i)) is amended—
(1) in the first sentence of paragraph (2)(A), by striking
‘‘and each succeeding fiscal year’’;
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—
‘‘(A) IN GENERAL.—There are authorized to be appropriated to carry out this section $10,000,000 for each of
fiscal years 1997 through 2002.
‘‘(B) GRANTS.—
‘‘(i) IN GENERAL.—Grants to each State from the
amounts made available under subparagraph (A) shall
be based on a rate of 50 cents for each child enrolled
in schools or institutions within the State, except that
no State shall receive an amount less than $75,000
per fiscal year.
‘‘(ii) INSUFFICIENT FUNDS.—If the amount made
available for any fiscal year is insufficient to pay the

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2307

amount to which each State is entitled under clause
(i), the amount of each grant shall be ratably reduced.’’.
(f) ASSESSMENT.—Section 19 of the Child Nutrition Act of 1966
(42 U.S.C. 1788) is amended by striking subsection (j).
(g) EFFECTIVE DATE.—The amendments made by subsection
(e) shall become effective on October 1, 1996.

42 USC 1788
note.

Subtitle C—Miscellaneous Provisions
SEC. 741. COORDINATION OF SCHOOL LUNCH, SCHOOL BREAKFAST,
AND SUMMER FOOD SERVICE PROGRAMS.

42 USC 1751
note.

(a) COORDINATION.—
(1) IN GENERAL.—The Secretary of Agriculture shall develop
proposed changes to the regulations under the school lunch
program under the National School Lunch Act (42 U.S.C. 1751
et seq.), the summer food service program under section 13
of that Act (42 U.S.C. 1761), and the school breakfast program
under section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773), for the purpose of simplifying and coordinating those
programs into a comprehensive meal program.
(2) CONSULTATION.—In developing proposed changes to the
regulations under paragraph (1), the Secretary of Agriculture
shall consult with local, State, and regional administrators
of the programs described in such paragraph.
(b) REPORT.—Not later than November 1, 1997, the Secretary
of Agriculture shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Economic
and Educational Opportunities of the House of Representatives
a report containing the proposed changes developed under subsection (a).
SEC. 742. REQUIREMENTS RELATING TO PROVISION OF BENEFITS
BASED ON CITIZENSHIP, ALIENAGE, OR IMMIGRATION
STATUS UNDER THE NATIONAL SCHOOL LUNCH ACT, THE
CHILD NUTRITION ACT OF 1966, AND CERTAIN OTHER
ACTS.

(a) SCHOOL LUNCH AND BREAKFAST PROGRAMS.—Notwithstanding any other provision of this Act, an individual who is eligible
to receive free public education benefits under State or local law
shall not be ineligible to receive benefits provided under the school
lunch program under the National School Lunch Act (42 U.S.C.
1751 et seq.) or the school breakfast program under section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773) on the basis
of citizenship, alienage, or immigration status.
(b) OTHER PROGRAMS.—
(1) IN GENERAL.—Nothing in this Act shall prohibit or
require a State to provide to an individual who is not a citizen
or a qualified alien, as defined in section 431(b), benefits under
programs established under the provisions of law described
in paragraph (2).
(2) PROVISIONS OF LAW DESCRIBED.—The provisions of law
described in this paragraph are the following:
(A) Programs (other than the school lunch program
and the school breakfast program) under the National
School Lunch Act (42 U.S.C. 1751 et seq.) and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).

8 USC 1615.

110 STAT. 2308

PUBLIC LAW 104–193—AUG. 22, 1996
(B) Section 4 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note).
(C) The Emergency Food Assistance Act of 1983 (7
U.S.C 612c note).
(D) The food distribution program on Indian reservations established under section 4(b) of the Food Stamp
Act of 1977 (7 U.S.C 2013(b)).

TITLE VIII—FOOD STAMPS AND
COMMODITY DISTRIBUTION
Subtitle A—Food Stamp Program
SEC. 801. DEFINITION OF CERTIFICATION PERIOD.

Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c))
is amended by striking ‘‘Except as provided’’ and all that follows
and inserting the following: ‘‘The certification period shall not
exceed 12 months, except that the certification period may be up
to 24 months if all adult household members are elderly or disabled.
A State agency shall have at least 1 contact with each certified
household every 12 months.’’.
SEC. 802. DEFINITION OF COUPON.

Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C. 2012(d))
is amended by striking ‘‘or type of certificate’’ and inserting ‘‘type
of certificate, authorization card, cash or check issued in lieu of
a coupon, or access device, including an electronic benefit transfer
card or personal identification number,’’.
SEC. 803. TREATMENT OF CHILDREN LIVING AT HOME.

The second sentence of section 3(i) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(i)) is amended by striking ‘‘(who are not
themselves parents living with their children or married and living
with their spouses)’’.
SEC. 804. ADJUSTMENT OF THRIFTY FOOD PLAN.

The second sentence of section 3(o) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(o)) is amended—
(1) by striking ‘‘shall (1) make’’ and inserting the following:
‘‘shall—
‘‘(1) make’’;
(2) by striking ‘‘scale, (2) make’’ and inserting the following:
‘‘scale;
‘‘(2) make’’;
(3) by striking ‘‘Alaska, (3) make’’ and inserting the
following: ‘‘Alaska;
‘‘(3) make’’; and
(4) by striking ‘‘Columbia, (4) through’’ and all that follows
through the end of the subsection and inserting the following:
‘‘Columbia; and
‘‘(4) on October 1, 1996, and each October 1 thereafter,
adjust the cost of the diet to reflect the cost of the diet in
the preceding June, and round the result to the nearest lower
dollar increment for each household size, except that on October
1, 1996, the Secretary may not reduce the cost of the diet
in effect on September 30, 1996.’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2309

SEC. 805. DEFINITION OF HOMELESS INDIVIDUAL.

Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C.
2012(s)(2)(C)) is amended by inserting ‘‘for not more than 90 days’’
after ‘‘temporary accommodation’’.
SEC. 806. STATE OPTION FOR ELIGIBILITY STANDARDS.

Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d))
is amended by striking ‘‘(b) The Secretary’’ and inserting the
following:
‘‘(b) ELIGIBILITY STANDARDS.—Except as otherwise provided in
this Act, the Secretary’’.
SEC. 807. EARNINGS OF STUDENTS.

Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)(7)) is amended by striking ‘‘21’’ and inserting ‘‘17’’.
SEC. 808. ENERGY ASSISTANCE.

(a) IN GENERAL.—Section 5(d) of the Food Stamp Act of 1977
(7 U.S.C. 2014(d)) is amended by striking paragraph (11) and inserting the following: ‘‘(11)(A) any payments or allowances made for
the purpose of providing energy assistance under any Federal law
(other than part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.)), or (B) a 1-time payment or allowance made under
a Federal or State law for the costs of weatherization or emergency
repair or replacement of an unsafe or inoperative furnace or other
heating or cooling device,’’.
(b) CONFORMING AMENDMENTS.—Section 5(k) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(k)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking ‘‘plan for aid to
families with dependent children approved’’ and inserting
‘‘program funded’’; and
(B) in subparagraph (B), by striking ‘‘, not including
energy or utility-cost assistance,’’;
(2) in paragraph (2), by striking subparagraph (C) and
inserting the following:
‘‘(C) a payment or allowance described in subsection
(d)(11);’’; and
(3) by adding at the end the following:
‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAYMENTS.—
‘‘(A) ENERGY ASSISTANCE PAYMENTS.—For purposes of
subsection (d)(1), a payment made under a State law (other
than a law referred to in paragraph (2)(H)) to provide
energy assistance to a household shall be considered money
payable directly to the household.
‘‘(B) ENERGY ASSISTANCE EXPENSES.—For purposes of
subsection (e)(7), an expense paid on behalf of a household
under a State law to provide energy assistance shall be
considered an out-of-pocket expense incurred and paid by
the household.’’.
SEC. 809. DEDUCTIONS FROM INCOME.

(a) IN GENERAL.—Section 5 of the Food Stamp Act of 1977
(7 U.S.C. 2014) is amended by striking subsection (e) and inserting
the following:
‘‘(e) DEDUCTIONS FROM INCOME.—
‘‘(1) STANDARD DEDUCTION.—The Secretary shall allow a
standard deduction for each household in the 48 contiguous

110 STAT. 2310

PUBLIC LAW 104–193—AUG. 22, 1996
States and the District of Columbia, Alaska, Hawaii, Guam,
and the Virgin Islands of the United States of $134, $229,
$189, $269, and $118, respectively.
‘‘(2) EARNED INCOME DEDUCTION.—
‘‘(A) DEFINITION OF EARNED INCOME.—In this paragraph, the term ‘earned income’ does not include—
‘‘(i) income excluded by subsection (d); or
‘‘(ii) any portion of income earned under a work
supplementation or support program, as defined under
section 16(b), that is attributable to public assistance.
‘‘(B) DEDUCTION.—Except as provided in subparagraph
(C), a household with earned income shall be allowed a
deduction of 20 percent of all earned income to compensate
for taxes, other mandatory deductions from salary, and
work expenses.
‘‘(C) EXCEPTION.—The deduction described in subparagraph (B) shall not be allowed with respect to determining
an overissuance due to the failure of a household to report
earned income in a timely manner.
‘‘(3) DEPENDENT CARE DEDUCTION.—
‘‘(A) IN GENERAL.—A household shall be entitled, with
respect to expenses (other than excluded expenses described
in subparagraph (B)) for dependent care, to a dependent
care deduction, the maximum allowable level of which shall
be $200 per month for each dependent child under 2 years
of age and $175 per month for each other dependent, for
the actual cost of payments necessary for the care of a
dependent if the care enables a household member to accept
or continue employment, or training or education that is
preparatory for employment.
‘‘(B) EXCLUDED EXPENSES.—The excluded expenses
referred to in subparagraph (A) are—
‘‘(i) expenses paid on behalf of the household by
a third party;
‘‘(ii) amounts made available and excluded, for the
expenses referred to in subparagraph (A), under subsection (d)(3); and
‘‘(iii) expenses that are paid under section 6(d)(4).
‘‘(4) DEDUCTION FOR CHILD SUPPORT PAYMENTS.—
‘‘(A) IN GENERAL.—A household shall be entitled to
a deduction for child support payments made by a household member to or for an individual who is not a member
of the household if the household member is legally obligated to make the payments.
‘‘(B) METHODS FOR DETERMINING AMOUNT.—The Secretary may prescribe by regulation the methods, including
calculation on a retrospective basis, that a State agency
shall use to determine the amount of the deduction for
child support payments.
‘‘(5) HOMELESS SHELTER ALLOWANCE.—Under rules prescribed by the Secretary, a State agency may develop a standard
homeless shelter allowance, which shall not exceed $143 per
month, for such expenses as may reasonably be expected to
be incurred by households in which all members are homeless
individuals but are not receiving free shelter throughout the
month. A State agency that develops the allowance may use
the allowance in determining eligibility and allotments for the

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2311

households. The State agency may make a household with
extremely low shelter costs ineligible for the allowance.
‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—
‘‘(A) IN GENERAL.—A household containing an elderly
or disabled member shall be entitled, with respect to
expenses other than expenses paid on behalf of the household by a third party, to an excess medical expense deduction for the portion of the actual costs of allowable medical
expenses, incurred by the elderly or disabled member,
exclusive of special diets, that exceeds $35 per month.
‘‘(B) METHOD OF CLAIMING DEDUCTION.—
‘‘(i) IN GENERAL.—A State agency shall offer an
eligible household under subparagraph (A) a method
of claiming a deduction for recurring medical expenses
that are initially verified under the excess medical
expense deduction in lieu of submitting information
on, or verification of, actual expenses on a monthly
basis.
‘‘(ii) METHOD.—The method described in clause (i)
shall—
‘‘(I) be designed to minimize the burden for
the eligible elderly or disabled household member
choosing to deduct the recurrent medical expenses
of the member pursuant to the method;
‘‘(II) rely on reasonable estimates of the
expected medical expenses of the member for the
certification period (including changes that can be
reasonably anticipated based on available information about the medical condition of the member,
public or private medical insurance coverage, and
the current verified medical expenses incurred by
the member); and
‘‘(III) not require further reporting or verification of a change in medical expenses if such a
change has been anticipated for the certification
period.
‘‘(7) EXCESS SHELTER EXPENSE DEDUCTION.—
‘‘(A) IN GENERAL.—A household shall be entitled, with
respect to expenses other than expenses paid on behalf
of the household by a third party, to an excess shelter
expense deduction to the extent that the monthly amount
expended by a household for shelter exceeds an amount
equal to 50 percent of monthly household income after
all other applicable deductions have been allowed.
‘‘(B) MAXIMUM AMOUNT OF DEDUCTION.—In the case
of a household that does not contain an elderly or disabled
individual, in the 48 contiguous States and the District
of Columbia, Alaska, Hawaii, Guam, and the Virgin Islands
of the United States, the excess shelter expense deduction
shall not exceed—
‘‘(i) for the period beginning on the date of enactment of this subparagraph and ending on December
31, 1996, $247, $429, $353, $300, and $182 per month,
respectively;
‘‘(ii) for the period beginning on January 1, 1997,
and ending on September 30, 1998, $250, $434, $357,
$304, and $184 per month, respectively;

110 STAT. 2312

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(iii) for fiscal years 1999 and 2000, $275, $478,
$393, $334, and $203 per month, respectively; and
‘‘(iv) for fiscal year 2001 and each subsequent fiscal
year, $300, $521, $429, $364, and $221 per month,
respectively.
‘‘(C) STANDARD UTILITY ALLOWANCE.—
‘‘(i) IN GENERAL.—In computing the excess shelter
expense deduction, a State agency may use a standard
utility allowance in accordance with regulations
promulgated by the Secretary, except that a State
agency may use an allowance that does not fluctuate
within a year to reflect seasonal variations.
‘‘(ii) RESTRICTIONS ON HEATING AND COOLING
EXPENSES.—An allowance for a heating or cooling
expense may not be used in the case of a household
that—
‘‘(I) does not incur a heating or cooling
expense, as the case may be;
‘‘(II) does incur a heating or cooling expense
but is located in a public housing unit that has
central utility meters and charges households,
with regard to the expense, only for excess utility
costs; or
‘‘(III) shares the expense with, and lives with,
another individual not participating in the food
stamp program, another household participating
in the food stamp program, or both, unless the
allowance is prorated between the household and
the other individual, household, or both.
‘‘(iii) MANDATORY ALLOWANCE.—
‘‘(I) IN GENERAL.—A State agency may make
the use of a standard utility allowance mandatory
for all households with qualifying utility costs if—
‘‘(aa) the State agency has developed 1
or more standards that include the cost of
heating and cooling and 1 or more standards
that do not include the cost of heating and
cooling; and
‘‘(bb) the Secretary finds that the standards will not result in an increased cost to
the Secretary.
‘‘(II) HOUSEHOLD ELECTION.—A State agency
that has not made the use of a standard utility
allowance mandatory under subclause (I) shall
allow a household to switch, at the end of a certification period, between the standard utility allowance and a deduction based on the actual utility
costs of the household.
‘‘(iv) AVAILABILITY OF ALLOWANCE TO RECIPIENTS
OF ENERGY ASSISTANCE.—
‘‘(I) IN GENERAL.—Subject to subclause (II),
if a State agency elects to use a standard utility
allowance that reflects heating or cooling costs,
the standard utility allowance shall be made available to households receiving a payment, or on
behalf of which a payment is made, under the
Low-Income Home Energy Assistance Act of 1981

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2313

(42 U.S.C. 8621 et seq.) or other similar energy
assistance program, if the household still incurs
out-of-pocket heating or cooling expenses in excess
of any assistance paid on behalf of the household
to an energy provider.
‘‘(II) SEPARATE ALLOWANCE.—A State agency
may use a separate standard utility allowance for
households on behalf of which a payment described
in subclause (I) is made, but may not be required
to do so.
‘‘(III) STATES NOT ELECTING TO USE SEPARATE
ALLOWANCE.—A State agency that does not elect
to use a separate allowance but makes a single
standard utility allowance available to households
incurring heating or cooling expenses (other than
a household described in subclause (I) or (II) of
clause (ii)) may not be required to reduce the allowance due to the provision (directly or indirectly)
of assistance under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621 et seq.).
‘‘(IV) PRORATION OF ASSISTANCE.—For the purpose of the food stamp program, assistance provided under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) shall
be considered to be prorated over the entire heating or cooling season for which the assistance was
provided.’’.
(b) CONFORMING AMENDMENT.—Section 11(e)(3) of the Food
Stamp Act of 1977 (7 U.S.C. 2020(e)(3)) is amended by striking
‘‘. Under rules prescribed’’ and all that follows through ‘‘verifies
higher expenses’’.
SEC. 810. VEHICLE ALLOWANCE.

Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g))
is amended by striking paragraph (2) and inserting the following:
‘‘(2) INCLUDED ASSETS.—
‘‘(A) IN GENERAL.—Subject to the other provisions of
this paragraph, the Secretary shall, in prescribing inclusions in, and exclusions from, financial resources, follow
the regulations in force as of June 1, 1982 (other than
those relating to licensed vehicles and inaccessible
resources).
‘‘(B) ADDITIONAL INCLUDED ASSETS.—The Secretary
shall include in financial resources—
‘‘(i) any boat, snowmobile, or airplane used for
recreational purposes;
‘‘(ii) any vacation home;
‘‘(iii) any mobile home used primarily for vacation
purposes;
‘‘(iv) subject to subparagraph (C), any licensed
vehicle that is used for household transportation or
to obtain or continue employment to the extent that
the fair market value of the vehicle exceeds $4,600
through September 30, 1996, and $4,650 beginning
October 1, 1996; and

110 STAT. 2314

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(v) any savings or retirement account (including
an individual account), regardless of whether there
is a penalty for early withdrawal.
‘‘(C) EXCLUDED VEHICLES.—A vehicle (and any other
property, real or personal, to the extent the property is
directly related to the maintenance or use of the vehicle)
shall not be included in financial resources under this
paragraph if the vehicle is—
‘‘(i) used to produce earned income;
‘‘(ii) necessary for the transportation of a physically
disabled household member; or
‘‘(iii) depended on by a household to carry fuel
for heating or water for home use and provides the
primary source of fuel or water, respectively, for the
household.’’.

SEC. 811. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED
AS INCOME.

Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2014(k)(2)) is amended—
(1) by striking subparagraph (F); and
(2) by redesignating subparagraphs (G) and (H) as subparagraphs (F) and (G), respectively.
SEC. 812. SIMPLIFIED CALCULATION OF INCOME FOR THE SELFEMPLOYED.

Regulations.

Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014),
as amended by title I, is amended by adding at the end the
following:
‘‘(m) SIMPLIFIED CALCULATION OF INCOME FOR THE SELFEMPLOYED.—
‘‘(1) IN GENERAL.—Not later than 1 year after the date
of enactment of this subsection, the Secretary shall establish
a procedure by which a State may submit a method, designed
to not increase Federal costs, for the approval of the Secretary,
that the Secretary determines will produce a reasonable estimate of income excluded under subsection (d)(9) in lieu of
calculating the actual cost of producing self-employment
income.
‘‘(2) INCLUSIVE OF ALL TYPES OF INCOME OR LIMITED TYPES
OF INCOME.—The method submitted by a State under paragraph
(1) may allow a State to estimate income for all types of
self-employment income or may be limited to 1 or more types
of self-employment income.
‘‘(3) DIFFERENCES FOR DIFFERENT TYPES OF INCOME.—The
method submitted by a State under paragraph (1) may differ
for different types of self-employment income.’’.
SEC. 813. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM REQUIREMENTS.

Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)) is amended—
(1) in clause (i), by striking ‘‘six months’’ and inserting
‘‘1 year’’; and
(2) in clause (ii), by striking ‘‘1 year’’ and inserting ‘‘2
years’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2315

SEC. 814. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)(iii)) is amended—
(1) in subclause (II), by striking ‘‘or’’ at the end;
(2) in subclause (III), by striking the period at the end
and inserting ‘‘; or’’; and
(3) by inserting after subclause (III) the following:
‘‘(IV) a conviction of an offense under subsection (b)
or (c) of section 15 involving an item covered by subsection
(b) or (c) of section 15 having a value of $500 or more.’’.
SEC. 815. DISQUALIFICATION.

(a) IN GENERAL.—Section 6(d) of the Food Stamp Act of 1977
(7 U.S.C. 2015(d)) is amended by striking ‘‘(d)(1) Unless otherwise
exempted by the provisions’’ and all that follows through the end
of paragraph (1) and inserting the following:
‘‘(d) CONDITIONS OF PARTICIPATION.—
‘‘(1) WORK REQUIREMENTS.—
‘‘(A) IN GENERAL.—No physically and mentally fit
individual over the age of 15 and under the age of 60
shall be eligible to participate in the food stamp program
if the individual—
‘‘(i) refuses, at the time of application and every
12 months thereafter, to register for employment in
a manner prescribed by the Secretary;
‘‘(ii) refuses without good cause to participate in
an employment and training program established
under paragraph (4), to the extent required by the
State agency;
‘‘(iii) refuses without good cause to accept an offer
of employment, at a site or plant not subject to a
strike or lockout at the time of the refusal, at a wage
not less than the higher of—
‘‘(I) the applicable Federal or State minimum
wage; or
‘‘(II) 80 percent of the wage that would have
governed had the minimum hourly rate under section 6(a)(1) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206(a)(1)) been applicable to the
offer of employment;
‘‘(iv) refuses without good cause to provide a State
agency with sufficient information to allow the State
agency to determine the employment status or the
job availability of the individual;
‘‘(v) voluntarily and without good cause—
‘‘(I) quits a job; or
‘‘(II) reduces work effort and, after the reduction, the individual is working less than 30 hours
per week; or
‘‘(vi) fails to comply with section 20.
‘‘(B) HOUSEHOLD INELIGIBILITY.—If an individual who
is the head of a household becomes ineligible to participate
in the food stamp program under subparagraph (A), the
household shall, at the option of the State agency, become
ineligible to participate in the food stamp program for
a period, determined by the State agency, that does not
exceed the lesser of—

110 STAT. 2316

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(i) the duration of the ineligibility of the individual
determined under subparagraph (C); or
‘‘(ii) 180 days.
‘‘(C) DURATION OF INELIGIBILITY.—
‘‘(i) FIRST VIOLATION.—The first time that an
individual becomes ineligible to participate in the food
stamp program under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual becomes eligible
under subparagraph (A);
‘‘(II) the date that is 1 month after the date
the individual became ineligible; or
‘‘(III) a date determined by the State agency
that is not later than 3 months after the date
the individual became ineligible.
‘‘(ii) SECOND VIOLATION.—The second time that an
individual becomes ineligible to participate in the food
stamp program under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual becomes eligible
under subparagraph (A);
‘‘(II) the date that is 3 months after the date
the individual became ineligible; or
‘‘(III) a date determined by the State agency
that is not later than 6 months after the date
the individual became ineligible.
‘‘(iii) THIRD OR SUBSEQUENT VIOLATION.—The third
or subsequent time that an individual becomes ineligible to participate in the food stamp program under
subparagraph (A), the individual shall remain ineligible until the later of—
‘‘(I) the date the individual becomes eligible
under subparagraph (A);
‘‘(II) the date that is 6 months after the date
the individual became ineligible;
‘‘(III) a date determined by the State
agency; or
‘‘(IV) at the option of the State agency,
permanently.
‘‘(D) ADMINISTRATION.—
‘‘(i) GOOD CAUSE.—The Secretary shall determine
the meaning of good cause for the purpose of this
paragraph.
‘‘(ii) VOLUNTARY QUIT.—The Secretary shall determine the meaning of voluntarily quitting and reducing
work effort for the purpose of this paragraph.
‘‘(iii) DETERMINATION BY STATE AGENCY.—
‘‘(I) IN GENERAL.—Subject to subclause (II) and
clauses (i) and (ii), a State agency shall determine—
‘‘(aa) the meaning of any term used in
subparagraph (A);
‘‘(bb) the procedures for determining
whether an individual is in compliance with
a requirement under subparagraph (A); and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2317

‘‘(cc) whether an individual is in compliance with a requirement under subparagraph (A).
‘‘(II) NOT LESS RESTRICTIVE.—A State agency
may not use a meaning, procedure, or determination under subclause (I) that is less restrictive
on individuals receiving benefits under this Act
than a comparable meaning, procedure, or determination under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C.
601 et seq.).
‘‘(iv) STRIKE AGAINST THE GOVERNMENT.—For the
purpose of subparagraph (A)(v), an employee of the
Federal Government, a State, or a political subdivision
of a State, who is dismissed for participating in a
strike against the Federal Government, the State, or
the political subdivision of the State shall be considered
to have voluntarily quit without good cause.
‘‘(v) SELECTING A HEAD OF HOUSEHOLD.—
‘‘(I) IN GENERAL.—For purposes of this paragraph, the State agency shall allow the household
to select any adult parent of a child in the household as the head of the household if all adult
household members making application under the
food stamp program agree to the selection.
‘‘(II) TIME FOR MAKING DESIGNATION.—A
household may designate the head of the household
under subclause (I) each time the household is
certified for participation in the food stamp program, but may not change the designation during
a certification period unless there is a change in
the composition of the household.
‘‘(vi) CHANGE IN HEAD OF HOUSEHOLD.—If the head
of a household leaves the household during a period
in which the household is ineligible to participate in
the food stamp program under subparagraph (B)—
‘‘(I) the household shall, if otherwise eligible,
become eligible to participate in the food stamp
program; and
‘‘(II) if the head of the household becomes the
head of another household, the household that
becomes headed by the individual shall become
ineligible to participate in the food stamp program
for the remaining period of ineligibility.’’.
(b) CONFORMING AMENDMENT.—
(1) The second sentence of section 17(b)(2) of the Food
Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is amended by striking
‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.
(2) Section 20 of the Food Stamp Act of 1977 (7 U.S.C.
2029) is amended by striking subsection (f) and inserting the
following:
‘‘(f) DISQUALIFICATION.—An individual or a household may
become ineligible under section 6(d)(1) to participate in the food
stamp program for failing to comply with this section.’’.

110 STAT. 2318

PUBLIC LAW 104–193—AUG. 22, 1996

SEC. 816. CARETAKER EXEMPTION.

Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(2)) is amended by adding at the end the following: ‘‘A
State that requested a waiver to lower the age specified in subparagraph (B) and had the waiver denied by the Secretary as of August
1, 1996, may, for a period of not more than 3 years, lower the
age of a dependent child that qualifies a parent or other member
of a household for an exemption under subparagraph (B) to between
1 and 6 years of age.’’.
SEC. 817. EMPLOYMENT AND TRAINING.

(a) IN GENERAL.—Section 6(d)(4) of the Food Stamp Act of
1977 (7 U.S.C. 2015(d)(4)) is amended—
(1) by striking ‘‘(4)(A) Not later than April 1, 1987, each’’
and inserting the following:
‘‘(4) EMPLOYMENT AND TRAINING.—
‘‘(A) IN GENERAL.—
‘‘(i) IMPLEMENTATION.—Each’’;
(2) in subparagraph (A)—
(A) by inserting ‘‘work,’’ after ‘‘skills, training,’’; and
(B) by adding at the end the following:
‘‘(ii)
STATEWIDE
WORKFORCE
DEVELOPMENT
SYSTEM.—Each component of an employment and training program carried out under this paragraph shall
be delivered through a statewide workforce development system, unless the component is not available
locally through such a system.’’;
(3) in subparagraph (B)—
(A) in the matter preceding clause (i), by striking the
colon at the end and inserting the following: ‘‘, except
that the State agency shall retain the option to apply
employment requirements prescribed under this subparagraph to a program applicant at the time of application:’’;
(B) in clause (i), by striking ‘‘with terms and conditions’’
and all that follows through ‘‘time of application’’; and
(C) in clause (iv)—
(i) by striking subclauses (I) and (II); and
(ii) by redesignating subclauses (III) and (IV) as
subclauses (I) and (II), respectively;
(4) in subparagraph (D)—
(A) in clause (i), by striking ‘‘to which the application’’
and all that follows through ‘‘30 days or less’’;
(B) in clause (ii), by striking ‘‘but with respect’’ and
all that follows through ‘‘child care’’; and
(C) in clause (iii), by striking ‘‘, on the basis of’’ and
all that follows through ‘‘clause (ii)’’ and inserting ‘‘the
exemption continues to be valid’’;
(5) in subparagraph (E), by striking the third sentence;
(6) in subparagraph (G)—
(A) by striking ‘‘(G)(i) The State’’ and inserting ‘‘(G)
The State’’; and
(B) by striking clause (ii);
(7) in subparagraph (H), by striking ‘‘(H)(i) The Secretary’’
and all that follows through ‘‘(ii) Federal funds’’ and inserting
‘‘(H) Federal funds’’;
(8) in subparagraph (I)(i)(II), by striking ‘‘, or was in operation,’’ and all that follows through ‘‘Social Security Act’’ and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2319

inserting the following: ‘‘), except that no such payment or
reimbursement shall exceed the applicable local market rate’’;
(9)(A) by striking subparagraphs (K) and (L) and inserting
the following:
‘‘(K) LIMITATION ON FUNDING.—Notwithstanding any
other provision of this paragraph, the amount of funds
a State agency uses to carry out this paragraph (including
funds used to carry out subparagraph (I)) for participants
who are receiving benefits under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) shall not exceed the amount of funds
the State agency used in fiscal year 1995 to carry
out this paragraph for participants who were receiving
benefits in fiscal year 1995 under a State program funded
under part A of title IV of the Act (42 U.S.C. 601 et
seq.).’’; and
(B) by redesignating subparagraphs (M) and (N) as subparagraphs (L) and (M), respectively; and
(10) in subparagraph (L), as so redesignated—
(A) by striking ‘‘(L)(i) The Secretary’’ and inserting
‘‘(L) The Secretary’’; and
(B) by striking clause (ii).
(b) FUNDING.—Section 16(h) of the Food Stamp Act of 1977
(7 U.S.C. 2025(h)) is amended by striking ‘‘(h)(1)(A) The Secretary’’
and all that follows through the end of paragraph (1) and inserting
the following:
‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employment and training
programs, the Secretary shall reserve for allocation to State
agencies from funds made available for each fiscal year
under section 18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $75,000,000;
‘‘(ii) for fiscal year 1997, $79,000,000;
‘‘(iii) for fiscal year 1998, $81,000,000;
‘‘(iv) for fiscal year 1999, $84,000,000;
‘‘(v) for fiscal year 2000, $86,000,000;
‘‘(vi) for fiscal year 2001, $88,000,000; and
‘‘(vii) for fiscal year 2002, $90,000,000.
‘‘(B) ALLOCATION.—The Secretary shall allocate the
amounts reserved under subparagraph (A) among the State
agencies using a reasonable formula (as determined by
the Secretary) that gives consideration to the population
in each State affected by section 6(o).
‘‘(C) REALLOCATION.—
‘‘(i) NOTIFICATION.—A State agency shall promptly
notify the Secretary if the State agency determines
that the State agency will not expend all of the funds
allocated to the State agency under subparagraph (B).
‘‘(ii) REALLOCATION.—On notification under clause
(i), the Secretary shall reallocate the funds that the
State agency will not expend as the Secretary considers
appropriate and equitable.
‘‘(D) MINIMUM ALLOCATION.—Notwithstanding subparagraphs (A) through (C), the Secretary shall ensure
that each State agency operating an employment and train-

110 STAT. 2320

PUBLIC LAW 104–193—AUG. 22, 1996

ing program shall receive not less than $50,000 for each
fiscal year.’’.
(c) ADDITIONAL MATCHING FUNDS.—Section 16(h)(2) of the Food
Stamp Act of 1977 (7 U.S.C. 2025(h)(2)) is amended by inserting
before the period at the end the following: ‘‘, including the costs
for case management and casework to facilitate the transition from
economic dependency to self-sufficiency through work’’.
(d) REPORTS.—Section 16(h) of the Food Stamp Act of 1977
(7 U.S.C. 2025(h)) is amended—
(1) in paragraph (5)—
(A) by striking ‘‘(5)(A) The Secretary’’ and inserting
‘‘(5) The Secretary’’; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (6).
SEC. 818. FOOD STAMP ELIGIBILITY.

The third sentence of section 6(f) of the Food Stamp Act of
1977 (7 U.S.C. 2015(f)) is amended by inserting ‘‘, at State option,’’
after ‘‘less’’.
SEC. 819. COMPARABLE TREATMENT FOR DISQUALIFICATION.

(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977
(7 U.S.C. 2015) is amended by adding at the end the following:
‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICATION.—
‘‘(1) IN GENERAL.—If a disqualification is imposed on a
member of a household for a failure of the member to perform
an action required under a Federal, State, or local law relating
to a means-tested public assistance program, the State agency
may impose the same disqualification on the member of the
household under the food stamp program.
‘‘(2) RULES AND PROCEDURES.—If a disqualification is
imposed under paragraph (1) for a failure of an individual
to perform an action required under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.), the State agency
may use the rules and procedures that apply under part A
of title IV of the Act to impose the same disqualification under
the food stamp program.
‘‘(3) APPLICATION AFTER DISQUALIFICATION PERIOD.—A
member of a household disqualified under paragraph (1) may,
after the disqualification period has expired, apply for benefits
under this Act and shall be treated as a new applicant, except
that a prior disqualification under subsection (d) shall be considered in determining eligibility.’’.
(b) STATE PLAN PROVISIONS.—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 a semicolon; and
(3) by adding at the end the following:
‘‘(26) the guidelines the State agency uses in carrying out
section 6(i); and’’.
(c) CONFORMING AMENDMENT.—Section 6(d)(2)(A) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(d)(2)(A)) is amended by striking
‘‘that is comparable to a requirement of paragraph (1)’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2321

SEC. 820. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD
STAMP BENEFITS.

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 819, is amended by adding at the end
the following:
‘‘(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP
BENEFITS.—An individual shall be ineligible to participate in the
food stamp program as a member of any household for a 10year period if the individual is found by a State agency to have
made, or is convicted in a Federal or State court of having made,
a fraudulent statement or representation with respect to the identity or place of residence of the individual in order to receive
multiple benefits simultaneously under the food stamp program.’’.
SEC. 821. DISQUALIFICATION OF FLEEING FELONS.

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 820, is amended by adding at the end
the following:
‘‘(k) DISQUALIFICATION OF FLEEING FELONS.—No member of
a household who is otherwise eligible to participate in the food
stamp program shall be eligible to participate in the program as
a member of that or any other household during any period during
which the individual is—
‘‘(1) fleeing to avoid prosecution, or custody or confinement
after conviction, under the law of the place from which the
individual is fleeing, for a crime, or attempt to commit a crime,
that is a felony under the law of the place from which the
individual is fleeing or that, in the case of New Jersey, is
a high misdemeanor under the law of New Jersey; or
‘‘(2) violating a condition of probation or parole imposed
under a Federal or State law.’’.
SEC. 822. COOPERATION WITH CHILD SUPPORT AGENCIES.

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 821, is amended by adding at the end
the following:
‘‘(l) CUSTODIAL PARENT’S COOPERATION WITH CHILD SUPPORT
AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State agency, subject
to paragraphs (2) and (3), no natural or adoptive parent or
other individual (collectively referred to in this subsection as
‘the individual’) who is living with and exercising parental
control over a child under the age of 18 who has an absent
parent shall be eligible to participate in the food stamp program
unless the individual cooperates with the State agency administering the program established under part D of title IV of
the Social Security Act (42 U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the child (if the
child is born out of wedlock); and
‘‘(B) in obtaining support for—
‘‘(i) the child; or
‘‘(ii) the individual and the child.
‘‘(2) GOOD CAUSE FOR NONCOOPERATION.—Paragraph (1)
shall not apply to the individual if good cause is found for
refusing to cooperate, as determined by the State agency in
accordance with standards prescribed by the Secretary in consultation with the Secretary of Health and Human Services.

Regulations.

110 STAT. 2322

PUBLIC LAW 104–193—AUG. 22, 1996

The standards shall take into consideration circumstances
under which cooperation may be against the best interests
of the child.
‘‘(3) FEES.—Paragraph (1) shall not require the payment
of a fee or other cost for services provided under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.).
‘‘(m) NONCUSTODIAL PARENT’S COOPERATION WITH CHILD SUPPORT AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State agency, subject
to paragraphs (2) and (3), a putative or identified noncustodial
parent of a child under the age of 18 (referred to in this
subsection as ‘the individual’) shall not be eligible to participate
in the food stamp program if the individual refuses to cooperate
with the State agency administering the program established
under part D of title IV of the Social Security Act (42 U.S.C.
651 et seq.)—
‘‘(A) in establishing the paternity of the child (if the
child is born out of wedlock); and
‘‘(B) in providing support for the child.
‘‘(2) REFUSAL TO COOPERATE.—
‘‘(A) GUIDELINES.—The Secretary, in consultation with
the Secretary of Health and Human Services, shall develop
guidelines on what constitutes a refusal to cooperate under
paragraph (1).
‘‘(B) PROCEDURES.—The State agency shall develop
procedures, using guidelines developed under subparagraph
(A), for determining whether an individual is refusing to
cooperate under paragraph (1).
‘‘(3) FEES.—Paragraph (1) shall not require the payment
of a fee or other cost for services provided under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.).
‘‘(4) PRIVACY.—The State agency shall provide safeguards
to restrict the use of information collected by a State agency
administering the program established under part D of title
IV of the Social Security Act (42 U.S.C. 651 et seq.) to purposes
for which the information is collected.’’.
SEC. 823. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 822, is amended by adding at the end
the following:
‘‘(n) DISQUALIFICATION FOR CHILD SUPPORT ARREARS.—
‘‘(1) IN GENERAL.—At the option of a State agency, no
individual shall be eligible to participate in the food stamp
program as a member of any household during any month
that the individual is delinquent in any payment due under
a court order for the support of a child of the individual.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply if—
‘‘(A) a court is allowing the individual to delay payment; or
‘‘(B) the individual is complying with a payment plan
approved by a court or the State agency designated under
part D of title IV of the Social Security Act (42 U.S.C.
651 et seq.) to provide support for the child of the
individual.’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2323

SEC. 824. WORK REQUIREMENT.

(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977
(7 U.S.C. 2015), as amended by section 823, is amended by adding
at the end the following:
‘‘(o) WORK REQUIREMENT.—
‘‘(1) DEFINITION OF WORK PROGRAM.—In this subsection,
the term ‘work program’ means—
‘‘(A) a program under the Job Training Partnership
Act (29 U.S.C. 1501 et seq.);
‘‘(B) a program under section 236 of the Trade Act
of 1974 (19 U.S.C. 2296); and
‘‘(C) a program of employment and training operated
or supervised by a State or political subdivision of a State
that meets standards approved by the Governor of the
State, including a program under subsection (d)(4), other
than a job search program or a job search training program.
‘‘(2) WORK REQUIREMENT.—Subject to the other provisions
of this subsection, no individual shall be eligible to participate
in the food stamp program as a member of any household
if, during the preceding 36-month period, the individual
received food stamp benefits for not less than 3 months
(consecutive or otherwise) during which the individual did not—
‘‘(A) work 20 hours or more per week, averaged
monthly;
‘‘(B) participate in and comply with the requirements
of a work program for 20 hours or more per week, as
determined by the State agency;
‘‘(C) participate in and comply with the requirements
of a program under section 20 or a comparable program
established by a State or political subdivision of a
State; or
‘‘(D) receive benefits pursuant to paragraph (3), (4),
or (5).
‘‘(3) EXCEPTION.—Paragraph (2) shall not apply to an
individual if the individual is—
‘‘(A) under 18 or over 50 years of age;
‘‘(B) medically certified as physically or mentally unfit
for employment;
‘‘(C) a parent or other member of a household with
responsibility for a dependent child;
‘‘(D) otherwise exempt under subsection (d)(2); or
‘‘(E) a pregnant woman.
‘‘(4) WAIVER.—
‘‘(A) IN GENERAL.—On the request of a State agency,
the Secretary may waive the applicability of paragraph
(2) to any group of individuals in the State if the Secretary
makes a determination that the area in which the individuals reside—
‘‘(i) has an unemployment rate of over 10 percent; or
‘‘(ii) does not have a sufficient number of jobs
to provide employment for the individuals.
‘‘(B) REPORT.—The Secretary shall report the basis for
a waiver under subparagraph (A) to the Committee on
Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate.

110 STAT. 2324

7 USC 2015 note.

PUBLIC LAW 104–193—AUG. 22, 1996

‘‘(5) SUBSEQUENT ELIGIBILITY.—
‘‘(A) REGAINING ELIGIBILITY.—An individual denied
eligibility under paragraph (2) shall regain eligibility to
participate in the food stamp program if, during a 30day period, the individual—
‘‘(i) works 80 or more hours;
‘‘(ii) participates in and complies with the requirements of a work program for 80 or more hours, as
determined by a State agency; or
‘‘(iii) participates in and complies with the requirements of a program under section 20 or a comparable
program established by a State or political subdivision
of a State.
‘‘(B) MAINTAINING ELIGIBILITY.—An individual who
regains eligibility under subparagraph (A) shall remain
eligible as long as the individual meets the requirements
of subparagraph (A), (B), or (C) of paragraph (2).
‘‘(C) LOSS OF EMPLOYMENT.—
‘‘(i) IN GENERAL.—An individual who regained eligibility under subparagraph (A) and who no longer meets
the requirements of subparagraph (A), (B), or (C) of
paragraph (2) shall remain eligible for a consecutive
3-month period, beginning on the date the individual
first notifies the State agency that the individual no
longer meets the requirements of subparagraph (A),
(B), or (C) of paragraph (2).
‘‘(ii) LIMITATION.—An individual shall not receive
any benefits pursuant to clause (i) for more than a
single 3-month period in any 36-month period.
‘‘(6) OTHER PROGRAM RULES.—Nothing in this subsection
shall make an individual eligible for benefits under this Act
if the individual is not otherwise eligible for benefits under
the other provisions of this Act.’’.
(b) TRANSITION PROVISION.—The term ‘‘preceding 36-month
period’’ in section 6(o) of the Food Stamp Act of 1977, as added
by subsection (a), does not include, with respect to a State, any
period before the earlier of—
(1) the date the State notifies recipients of food stamp
benefits of the application of section 6(o); or
(2) the date that is 3 months after the date of enactment
of this Act.
SEC. 825. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER
SYSTEMS.

(a) IN GENERAL.—Section 7(i) of the Food Stamp Act of 1977
(7 U.S.C. 2016(i)) is amended—
(1) by striking ‘‘(i)(1)(A) Any State’’ and all that follows
through the end of paragraph (1) and inserting the following:
‘‘(i) ELECTRONIC BENEFIT TRANSFERS.—
‘‘(1) IN GENERAL.—
‘‘(A) IMPLEMENTATION.—Not later than October 1, 2002,
each State agency shall implement an electronic benefit
transfer system under which household benefits determined
under section 8(a) or 26 are issued from and stored in
a central databank, unless the Secretary provides a waiver
for a State agency that faces unusual barriers to
implementing an electronic benefit transfer system.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2325

‘‘(B) TIMELY IMPLEMENTATION.—Each State agency is
encouraged to implement an electronic benefit transfer system under subparagraph (A) as soon as practicable.
‘‘(C) STATE FLEXIBILITY.—Subject to paragraph (2), a
State agency may procure and implement an electronic
benefit transfer system under the terms, conditions, and
design that the State agency considers appropriate.
‘‘(D) OPERATION.—An electronic benefit transfer system
should take into account generally accepted standard
operating rules based on—
‘‘(i) commercial electronic funds transfer technology;
‘‘(ii) the need to permit interstate operation and
law enforcement monitoring; and
‘‘(iii) the need to permit monitoring and investigations by authorized law enforcement agencies.’’;
(2) in paragraph (2)—
(A) by striking ‘‘effective no later than April 1, 1992,’’;
(B) in subparagraph (A)—
(i) by striking ‘‘, in any 1 year,’’; and
(ii) by striking ‘‘on-line’’;
(C) by striking subparagraph (D) and inserting the
following:
‘‘(D)(i) measures to maximize the security of a system
using the most recent technology available that the State
agency considers appropriate and cost effective and which
may include personal identification numbers, photographic
identification on electronic benefit transfer cards, and other
measures to protect against fraud and abuse; and
‘‘(ii) effective not later than 2 years after the date
of enactment of this clause, to the extent practicable, measures that permit a system to differentiate items of food
that may be acquired with an allotment from items of
food that may not be acquired with an allotment;’’;
(D) in subparagraph (G), by striking ‘‘and’’ at the end;
(E) in subparagraph (H), by striking the period at
the end and inserting ‘‘; and’’; and
(F) by adding at the end the following:
‘‘(I) procurement standards.’’; and
(3) by adding at the end the following:
‘‘(7) REPLACEMENT OF BENEFITS.—Regulations issued by
the Secretary regarding the replacement of benefits and liability
for replacement of benefits under an electronic benefit transfer
system shall be similar to the regulations in effect for a paperbased food stamp issuance system.
‘‘(8) REPLACEMENT CARD FEE.—A State agency may collect
a charge for replacement of an electronic benefit transfer card
by reducing the monthly allotment of the household receiving
the replacement card.
‘‘(9) OPTIONAL PHOTOGRAPHIC IDENTIFICATION.—
‘‘(A) IN GENERAL.—A State agency may require that
an electronic benefit card contain a photograph of 1 or
more members of a household.
‘‘(B) OTHER AUTHORIZED USERS.—If a State agency
requires a photograph on an electronic benefit card under
subparagraph (A), the State agency shall establish procedures to ensure that any other appropriate member of

Effective date.

Regulations.

110 STAT. 2326

PUBLIC LAW 104–193—AUG. 22, 1996

the household or any authorized representative of the
household may utilize the card.
‘‘(10) APPLICABLE LAW.—Disclosures, protections, responsibilities, and remedies established by the Federal Reserve
Board under section 904 of the Electronic Fund Transfer Act
(15 U.S.C. 1693b) shall not apply to benefits under this Act
delivered through any electronic benefit transfer system.
‘‘(11) APPLICATION OF ANTI-TYING RESTRICTIONS TO ELECTRONIC BENEFIT TRANSFER SYSTEMS.—
‘‘(A) DEFINITIONS.—In this paragraph:
‘‘(i) AFFILIATE.—The term ‘affiliate’ has the meaning provided the term in section 2(k) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(k)).
‘‘(ii) COMPANY.—The term ‘company’ has the meaning provided the term in section 106(a) of the Bank
Holding Company Act Amendments of 1970 (12 U.S.C.
1971), but shall not include a bank, a bank holding
company, or any subsidiary of a bank holding company.
‘‘(iii) ELECTRONIC BENEFIT TRANSFER SERVICE.—
The term ‘electronic benefit transfer service’ means
the processing of electronic transfers of household
benefits, determined under section 8(a) or 26, if the
benefits are—
‘‘(I) issued from and stored in a central
databank;
‘‘(II) electronically accessed by household members at the point of sale; and
‘‘(III) provided by a Federal or State government.
‘‘(iv) POINT-OF-SALE SERVICE.—The term ‘point-ofsale service’ means any product or service related to
the electronic authorization and processing of payments for merchandise at a retail food store, including
credit or debit card services, automated teller
machines, point-of-sale terminals, or access to on-line
systems.
‘‘(B) RESTRICTIONS.—A company may not sell or provide
electronic benefit transfer services, or fix or vary the consideration for electronic benefit transfer services, on the condition or requirement that the customer—
‘‘(i) obtain some additional point-of-sale service
from the company or an affiliate of the company; or
‘‘(ii) not obtain some additional point-of-sale service
from a competitor of the company or competitor of
any affiliate of the company.
‘‘(C) CONSULTATION WITH THE FEDERAL RESERVE
BOARD.—Before promulgating regulations or interpretations of regulations to carry out this paragraph, the Secretary shall consult with the Board of Governors of the
Federal Reserve System.’’.
(b) SENSE OF CONGRESS.—It is the sense of Congress that
a State that operates an electronic benefit transfer system under
the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should operate
the system in a manner that is compatible with electronic benefit
transfer systems operated by other States.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2327

SEC. 826. VALUE OF MINIMUM ALLOTMENT.

The proviso in section 8(a) of the Food Stamp Act of 1977
(7 U.S.C. 2017(a)) is amended by striking ‘‘, and shall be adjusted’’
and all that follows through ‘‘$5’’.
SEC. 827. BENEFITS ON RECERTIFICATION.

Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C.
2017(c)(2)(B)) is amended by striking ‘‘of more than one month’’.
SEC. 828. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS.

Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c))
is amended by striking paragraph (3) and inserting the following:
‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED
HOUSEHOLDS.—A State agency may provide to an eligible household applying after the 15th day of a month, in lieu of the
initial allotment of the household and the regular allotment
of the household for the following month, an allotment that
is equal to the total amount of the initial allotment and the
first regular allotment. The allotment shall be provided in
accordance with section 11(e)(3) in the case of a household
that is not entitled to expedited service and in accordance
with paragraphs (3) and (9) of section 11(e) in the case of
a household that is entitled to expedited service.’’.
SEC. 829. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC
ASSISTANCE PROGRAMS.

Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017)
is amended by striking subsection (d) and inserting the following:
‘‘(d) REDUCTION OF PUBLIC ASSISTANCE BENEFITS.—
‘‘(1) IN GENERAL.—If the benefits of a household are reduced
under a Federal, State, or local law relating to a means-tested
public assistance program for the failure of a member of the
household to perform an action required under the law or
program, for the duration of the reduction—
‘‘(A) the household may not receive an increased allotment as the result of a decrease in the income of the
household to the extent that the decrease is the result
of the reduction; and
‘‘(B) the State agency may reduce the allotment of
the household by not more than 25 percent.
‘‘(2) RULES AND PROCEDURES.—If the allotment of a household is reduced under this subsection for a failure to perform
an action required under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.), the State agency may use the
rules and procedures that apply under part A of title IV of
the Act to reduce the allotment under the food stamp program.’’.
SEC. 830. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.

Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017)
is amended by adding at the end the following:
‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.—
‘‘(1) IN GENERAL.—In the case of an individual who resides
in a center for the purpose of a drug or alcoholic treatment
program described in the last sentence of section 3(i), a State
agency may provide an allotment for the individual to—
‘‘(A) the center as an authorized representative of the
individual for a period that is less than 1 month; and

110 STAT. 2328

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(B) the individual, if the individual leaves the center.
‘‘(2) DIRECT PAYMENT.—A State agency may require an
individual referred to in paragraph (1) to designate the center
in which the individual resides as the authorized representative
of the individual for the purpose of receiving an allotment.’’.

SEC. 831. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.

Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)(1)) is amended by adding at the end the following: ‘‘No
retail food store or wholesale food concern of a type determined
by the Secretary, based on factors that include size, location,
and type of items sold, shall be approved to be authorized or
reauthorized for participation in the food stamp program unless
an authorized employee of the Department of Agriculture, a designee of the Secretary, or, if practicable, an official of the State
or local government designated by the Secretary has visited the
store or concern for the purpose of determining whether the store
or concern should be approved or reauthorized, as appropriate.’’.
SEC. 832. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a))
is amended by adding at the end the following:
‘‘(3) AUTHORIZATION PERIODS.—The Secretary shall establish specific time periods during which authorization to accept
and redeem coupons, or to redeem benefits through an electronic benefit transfer system, shall be valid under the food
stamp program.’’.
SEC.

833.

INFORMATION FOR
AUTHORIZATION.

VERIFYING

ELIGIBILITY

FOR

Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 2018(c))
is amended—
(1) in the first sentence, by inserting ‘‘, which may include
relevant income and sales tax filing documents,’’ after ‘‘submit
information’’; and
(2) by inserting after the first sentence the following: ‘‘The
regulations may require retail food stores and wholesale food
concerns to provide written authorization for the Secretary
to verify all relevant tax filings with appropriate agencies and
to obtain corroborating documentation from other sources so
that the accuracy of information provided by the stores and
concerns may be verified.’’.
SEC. 834. WAITING PERIOD FOR STORES THAT FAIL TO MEET
AUTHORIZATION CRITERIA.

Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 2018(d))
is amended by adding at the end the following: ‘‘A retail food
store or wholesale food concern that is denied approval to accept
and redeem coupons because the store or concern does not meet
criteria for approval established by the Secretary may not, for
at least 6 months, submit a new application to participate in the
program. The Secretary may establish a longer time period under
the preceding sentence, including permanent disqualification, that
reflects the severity of the basis of the denial.’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2329

SEC. 835. OPERATION OF FOOD STAMP OFFICES.

Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020),
as amended by sections 809(b) and 819(b), is amended—
(1) in subsection (e)—
(A) by striking paragraph (2) and inserting the
following:
‘‘(2)(A) that the State agency shall establish procedures
governing the operation of food stamp offices that the State
agency determines best serve households in the State, including
households with special needs, such as households with elderly
or disabled members, households in rural areas with low-income
members, homeless individuals, households residing on reservations, and households in areas in which a substantial number
of members of low-income households speak a language other
than English.
‘‘(B) In carrying out subparagraph (A), a State agency—
‘‘(i) shall provide timely, accurate, and fair service to
applicants for, and participants in, the food stamp program;
‘‘(ii) shall develop an application containing the
information necessary to comply with this Act;
‘‘(iii) shall permit an applicant household to apply to
participate in the program on the same day that the household first contacts a food stamp office in person during
office hours;
‘‘(iv) shall consider an application that contains the
name, address, and signature of the applicant to be filed
on the date the applicant submits the application;
‘‘(v) shall require that an adult representative of each
applicant household certify in writing, under penalty of
perjury, that—
‘‘(I) the information contained in the application
is true; and
‘‘(II) all members of the household are citizens
or are aliens eligible to receive food stamps under
section 6(f);
‘‘(vi) shall provide a method of certifying and issuing
coupons to eligible homeless individuals, to ensure that
participation in the food stamp program is limited to
eligible households; and
‘‘(vii) may establish operating procedures that vary
for local food stamp offices to reflect regional and local
differences within the State.
‘‘(C) Nothing in this Act shall prohibit the use of signatures
provided and maintained electronically, storage of records using
automated retrieval systems only, or any other feature of a
State agency’s application system that does not rely exclusively
on the collection and retention of paper applications or other
records.
‘‘(D) The signature of any adult under this paragraph shall
be considered sufficient to comply with any provision of Federal
law requiring a household member to sign an application or
statement;’’;
(B) in paragraph (3)—
(i) by striking ‘‘shall—’’ and all that follows through
‘‘provide each’’ and inserting ‘‘shall provide each’’; and
(ii) by striking ‘‘(B) assist’’ and all that follows
through ‘‘representative of the State agency;’’;

Regulations.

110 STAT. 2330

PUBLIC LAW 104–193—AUG. 22, 1996
(C) by striking paragraphs (14) and (25);
(D)(i) by redesignating paragraphs (15) through (24)
as paragraphs (14) through (23), respectively; and
(ii) by redesignating paragraph (26), as paragraph
(24); and
(2) in subsection (i)—
(A) by striking ‘‘(i) Notwithstanding’’ and all that follows through ‘‘(2)’’ and inserting the following:
‘‘(i) APPLICATION AND DENIAL PROCEDURES.—
‘‘(1) APPLICATION PROCEDURES.—Notwithstanding any other
provision of law,’’; and
(B) by striking ‘‘; (3) households’’ and all that follows
through ‘‘title IV of the Social Security Act. No’’ and inserting a period and the following:
‘‘(2) DENIAL AND TERMINATION.—Except in a case of
disqualification as a penalty for failure to comply with a public
assistance program rule or regulation, no’’.

SEC. 836. STATE EMPLOYEE AND TRAINING STANDARDS.

Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(6)) is amended—
(1) by striking ‘‘that (A) the’’ and inserting ‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘Act; (B) the’’ and inserting ‘‘Act; and
‘‘(B) the’’;
(3) in subparagraph (B), by striking ‘‘United States Civil
Service Commission’’ and inserting ‘‘Office of Personnel
Management’’; and
(4) by striking subparagraphs (C) through (E).
SEC. 837. EXCHANGE OF LAW ENFORCEMENT INFORMATION.

Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(8)) is amended—
(1) by striking ‘‘that (A) such’’ and inserting the following: ‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘law, (B) notwithstanding’’ and inserting
the following: ‘‘law;
‘‘(B) notwithstanding’’;
(3) by striking ‘‘Act, and (C) such’’ and inserting the following: ‘‘Act;
‘‘(C) the’’; and
(4) by adding at the end the following:
‘‘(D) notwithstanding any other provision of law, the
address, social security number, and, if available, photograph of any member of a household shall be made available, on request, to any Federal, State, or local law enforcement officer if the officer furnishes the State agency with
the name of the member and notifies the agency that—
‘‘(i) the member—
‘‘(I) is fleeing to avoid prosecution, or custody
or confinement after conviction, for a crime (or
attempt to commit a crime) that, under the law
of the place the member is fleeing, is a felony
(or, in the case of New Jersey, a high misdemeanor), or is violating a condition of probation
or parole imposed under Federal or State
law; or

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2331

‘‘(II) has information that is necessary for the
officer to conduct an official duty related to subclause (I);
‘‘(ii) locating or apprehending the member is an
official duty; and
‘‘(iii) the request is being made in the proper exercise of an official duty; and
‘‘(E) the safeguards shall not prevent compliance with
paragraph (16);’’.
SEC. 838. EXPEDITED COUPON SERVICE.

Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(9)) is amended—
(1) in subparagraph (A), by striking ‘‘five days’’ and inserting ‘‘7 days’’;
(2) by striking subparagraph (B);
(3) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C);
(4) in subparagraph (B), as redesignated by paragraph
(3), by striking ‘‘five days’’ and inserting ‘‘7 days’’; and
(5) in subparagraph (C), as redesignated by paragraph
(3), by striking ‘‘, (B), or (C)’’ and inserting ‘‘or (B)’’.
SEC. 839. WITHDRAWING FAIR HEARING REQUESTS.

Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(10)) is amended by inserting before the semicolon at the
end a period and the following: ‘‘At the option of a State, at any
time prior to a fair hearing determination under this paragraph,
a household may withdraw, orally or in writing, a request by
the household for the fair hearing. If the withdrawal request is
an oral request, the State agency shall provide a written notice
to the household confirming the withdrawal request and providing
the household with an opportunity to request a hearing’’.

Notice.

SEC. 840. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICATION SYSTEMS.

Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020)
is amended—
(1) in subsection (e)(18), as redesignated by section
835(1)(D)—
(A) by striking ‘‘that information is’’ and inserting ‘‘at
the option of the State agency, that information may be’’;
and
(B) by striking ‘‘shall be requested’’ and inserting ‘‘may
be requested’’; and
(2) by adding at the end the following:
‘‘(p) STATE VERIFICATION OPTION.—Notwithstanding any other
provision of law, in carrying out the food stamp program, a State
agency shall not be required to use an income and eligibility or
an immigration status verification system established under section
1137 of the Social Security Act (42 U.S.C. 1320b–7).’’.
SEC. 841. INVESTIGATIONS.

Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C. 2021(a))
is amended by adding at the end the following: ‘‘Regulations issued
pursuant to this Act shall provide criteria for the finding of a
violation and the suspension or disqualification of a retail food
store or wholesale food concern on the basis of evidence that may

Regulations.

110 STAT. 2332

PUBLIC LAW 104–193—AUG. 22, 1996

include facts established through on-site investigations, inconsistent
redemption data, or evidence obtained through a transaction report
under an electronic benefit transfer system.’’.
SEC. 842. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY
SUBMIT FALSIFIED APPLICATIONS.

Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C. 2021(b))
is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the end;
(2) in paragraph (3), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(4) for a reasonable period of time to be determined by
the Secretary, including permanent disqualification, on the
knowing submission of an application for the approval or
reauthorization to accept and redeem coupons that contains
false information about a substantive matter that was a part
of the application.’’.
SEC. 843. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED
UNDER THE WIC PROGRAM.

Regulations.

Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021)
is amended by adding at the end the following:
‘‘(g) DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED
UNDER THE WIC PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall issue regulations
providing criteria for the disqualification under this Act of
an approved retail food store or a wholesale food concern that
is disqualified from accepting benefits under the special supplemental nutrition program for women, infants, and children
established under section 17 of the Child Nutrition Act of
1966 (7 U.S.C. 1786).
‘‘(2) TERMS.—A disqualification under paragraph (1)—
‘‘(A) shall be for the same length of time as the disqualification from the program referred to in paragraph (1);
‘‘(B) may begin at a later date than the disqualification
from the program referred to in paragraph (1); and
‘‘(C) notwithstanding section 14, shall not be subject
to judicial or administrative review.’’.
SEC. 844. COLLECTION OF OVERISSUANCES.

(a) COLLECTION OF OVERISSUANCES.—Section 13 of the Food
Stamp Act of 1977 (7 U.S.C. 2022) is amended—
(1) by striking subsection (b) and inserting the following:
‘‘(b) COLLECTION OF OVERISSUANCES.—
‘‘(1) IN GENERAL.—Except as otherwise provided in this
subsection, a State agency shall collect any overissuance of
coupons issued to a household by—
‘‘(A) reducing the allotment of the household;
‘‘(B) withholding amounts from unemployment compensation from a member of the household under subsection (c);
‘‘(C) recovering from Federal pay or a Federal income
tax refund under subsection (d); or
‘‘(D) any other means.
‘‘(2) COST EFFECTIVENESS.—Paragraph (1) shall not apply
if the State agency demonstrates to the satisfaction of the

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2333

Secretary that all of the means referred to in paragraph (1)
are not cost effective.
‘‘(3) MAXIMUM REDUCTION ABSENT FRAUD.—If a household
received an overissuance of coupons without any member of
the household being found ineligible to participate in the program under section 6(b)(1) and a State agency elects to reduce
the allotment of the household under paragraph (1)(A), the
State agency shall not reduce the monthly allotment of the
household under paragraph (1)(A) by an amount in excess
of the greater of—
‘‘(A) 10 percent of the monthly allotment of the household; or
‘‘(B) $10.
‘‘(4) PROCEDURES.—A State agency shall collect an overissuance of coupons issued to a household under paragraph (1)
in accordance with the requirements established by the State
agency for providing notice, electing a means of payment, and
establishing a time schedule for payment.’’; and
(2) in subsection (d)—
(A) by striking ‘‘as determined under subsection (b)
and except for claims arising from an error of the State
agency,’’ and inserting ‘‘, as determined under subsection
(b)(1),’’; and
(B) by inserting before the period at the end the following: ‘‘or a Federal income tax refund as authorized by
section 3720A of title 31, United States Code’’.
(b) CONFORMING AMENDMENTS.—Section 11(e)(8)(C) of the Food
Stamp Act of 1977 (7 U.S.C. 2020(e)(8)(C)) is amended—
(1) by striking ‘‘and excluding claims’’ and all that follows
through ‘‘such section’’; and
(2) by inserting before the semicolon at the end the
following: ‘‘or a Federal income tax refund as authorized by
section 3720A of title 31, United States Code’’.
(c) RETENTION RATE.—The proviso of the first sentence of section 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)) is
amended by striking ‘‘25 percent during the period beginning
October 1, 1990’’ and all that follows through ‘‘section 13(b)(2)
which arise’’ and inserting ‘‘35 percent of the value of all funds
or allotments recovered or collected pursuant to sections 6(b)
and 13(c) and 20 percent of the value of any other funds or allotments recovered or collected, except the value of funds or allotments
recovered or collected that arise’’.
SEC. 845. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM
REQUIREMENTS
PENDING
ADMINISTRATIVE
AND
JUDICIAL REVIEW.

Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a))
is amended—
(1) by redesignating the first through seventeenth sentences as paragraphs (1) through (17), respectively; and
(2) by adding at the end the following:
‘‘(18) SUSPENSION OF STORES PENDING REVIEW.—Notwithstanding any other provision of this subsection, any permanent
disqualification of a retail food store or wholesale food concern
under paragraph (3) or (4) of section 12(b) shall be effective
from the date of receipt of the notice of disqualification. If
the disqualification is reversed through administrative or

Effective date.

110 STAT. 2334

PUBLIC LAW 104–193—AUG. 22, 1996
judicial review, the Secretary shall not be liable for the value
of any sales lost during the disqualification period.’’.

SEC. 846. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.

(a) FORFEITURE OF ITEMS EXCHANGED IN FOOD STAMP
TRAFFICKING.—The first sentence of section 15(g) of the Food Stamp
Act of 1977 (7 U.S.C. 2024(g)) is amended by striking ‘‘or intended
to be furnished’’.
(b) CRIMINAL FORFEITURE.—Section 15 of the Food Stamp Act
of 1977 (7 U.S.C. 2024) is amended by adding at the end the
following:
‘‘(h) CRIMINAL FORFEITURE.—
‘‘(1) IN GENERAL.—In imposing a sentence on a person
convicted of an offense in violation of subsection (b) or (c),
a court shall order, in addition to any other sentence imposed
under this section, that the person forfeit to the United States
all property described in paragraph (2).
‘‘(2) PROPERTY SUBJECT TO FORFEITURE.—All property, real
and personal, used in a transaction or attempted transaction,
to commit, or to facilitate the commission of, a violation (other
than a misdemeanor) of subsection (b) or (c), or proceeds traceable to a violation of subsection (b) or (c), shall be subject
to forfeiture to the United States under paragraph (1).
‘‘(3) INTEREST OF OWNER.—No interest in property shall
be forfeited under this subsection as the result of any act
or omission established by the owner of the interest to have
been committed or omitted without the knowledge or consent
of the owner.
‘‘(4) PROCEEDS.—The proceeds from any sale of forfeited
property and any monies forfeited under this subsection shall
be used—
‘‘(A) first, to reimburse the Department of Justice for
the costs incurred by the Department to initiate and complete the forfeiture proceeding;
‘‘(B) second, to reimburse the Department of Agriculture Office of Inspector General for any costs the Office
incurred in the law enforcement effort resulting in the
forfeiture;
‘‘(C) third, to reimburse any Federal or State law
enforcement agency for any costs incurred in the
law enforcement effort resulting in the forfeiture; and
‘‘(D) fourth, by the Secretary to carry out the approval,
reauthorization, and compliance investigations of retail
stores and wholesale food concerns under section 9.’’.
SEC. 847. LIMITATION ON FEDERAL MATCH.

Section 16(a)(4) of the Food Stamp Act of 1977 (7 U.S.C.
2025(a)(4)) is amended by inserting after the comma at the end
the following: ‘‘but not including recruitment activities,’’.
SEC. 848. STANDARDS FOR ADMINISTRATION.

(a) IN GENERAL.—Section 16 of the Food Stamp Act of 1977
(7 U.S.C. 2025) is amended by striking subsection (b).
(b) CONFORMING AMENDMENTS.—
(1) The first sentence of section 11(g) of the Food Stamp
Act of 1977 (7 U.S.C. 2020(g)) is amended by striking ‘‘the
Secretary’s standards for the efficient and effective administration of the program established under section 16(b)(1) or’’.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2335

(2) Section 16(c)(1)(B) of the Food Stamp Act of 1977 (7
U.S.C. 2025(c)(1)(B)) is amended by striking ‘‘pursuant to subsection (b)’’.
SEC. 849. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025),
as amended by section 848(a), is amended by inserting after subsection (a) the following:
‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PROGRAM.—
‘‘(1) DEFINITION OF WORK SUPPLEMENTATION OR SUPPORT
PROGRAM.—In this subsection, the term ‘work supplementation
or support program’ means a program under which, as determined by the Secretary, public assistance (including any benefits provided under a program established by the State and
the food stamp program) is provided to an employer to be
used for hiring and employing a public assistance recipient
who was not employed by the employer at the time the public
assistance recipient entered the program.
‘‘(2) PROGRAM.—A State agency may elect to use an amount
equal to the allotment that would otherwise be issued to a
household under the food stamp program, but for the operation
of this subsection, for the purpose of subsidizing or supporting
a job under a work supplementation or support program established by the State.
‘‘(3) PROCEDURE.—If a State agency makes an election
under paragraph (2) and identifies each household that participates in the food stamp program that contains an individual
who is participating in the work supplementation or support
program—
‘‘(A) the Secretary shall pay to the State agency an
amount equal to the value of the allotment that the household would be eligible to receive but for the operation
of this subsection;
‘‘(B) the State agency shall expend the amount received
under subparagraph (A) in accordance with the work
supplementation or support program in lieu of providing
the allotment that the household would receive but for
the operation of this subsection;
‘‘(C) for purposes of—
‘‘(i) sections 5 and 8(a), the amount received under
this subsection shall be excluded from household
income and resources; and
‘‘(ii) section 8(b), the amount received under this
subsection shall be considered to be the value of an
allotment provided to the household; and
‘‘(D) the household shall not receive an allotment from
the State agency for the period during which the member
continues to participate in the work supplementation or
support program.
‘‘(4) OTHER WORK REQUIREMENTS.—No individual shall be
excused, by reason of the fact that a State has a work
supplementation or support program, from any work requirement under section 6(d), except during the periods in which
the individual is employed under the work supplementation
or support program.
‘‘(5) LENGTH OF PARTICIPATION.—A State agency shall
provide a description of how the public assistance recipients

110 STAT. 2336

PUBLIC LAW 104–193—AUG. 22, 1996
in the program shall, within a specific period of time, be moved
from supplemented or supported employment to employment
that is not supplemented or supported.
‘‘(6) DISPLACEMENT.—A work supplementation or support
program shall not displace the employment of individuals who
are not supplemented or supported.’’.

SEC. 850. WAIVER AUTHORITY.

Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)) is amended—
(1) by redesignating subparagraph (B) as subparagraph
(C); and
(2) in subparagraph (A)—
(A) in the first sentence, by striking ‘‘benefits to eligible
households, including’’ and inserting the following: ‘‘benefits
to eligible households, and may waive any requirement
of this Act to the extent necessary for the project to be
conducted.
‘‘(B) PROJECT REQUIREMENTS.—
‘‘(i) PROGRAM GOAL.—The Secretary may not conduct a project under subparagraph (A) unless—
‘‘(I) the project is consistent with the goal of
the food stamp program of providing food assistance to raise levels of nutrition among low-income
individuals; and
‘‘(II) the project includes an evaluation to
determine the effects of the project.
‘‘(ii) PERMISSIBLE PROJECTS.—The Secretary may
conduct a project under subparagraph (A) to—
‘‘(I) improve program administration;
‘‘(II) increase the self-sufficiency of food stamp
recipients;
‘‘(III) test innovative welfare reform strategies; or
‘‘(IV) allow greater conformity with the rules
of other programs than would be allowed but for
this paragraph.
‘‘(iii) RESTRICTIONS ON PERMISSIBLE PROJECTS.—
If the Secretary finds that a project under subparagraph (A) would reduce benefits by more than 20 percent for more than 5 percent of households in the
area subject to the project (not including any household
whose benefits are reduced due to a failure to comply
with work or other conduct requirements), the project—
‘‘(I) may not include more than 15 percent
of the State’s food stamp households; and
‘‘(II) shall continue for not more than 5 years
after the date of implementation, unless the Secretary approves an extension requested by the
State agency at any time.
‘‘(iv) IMPERMISSIBLE PROJECTS.—The Secretary
may not conduct a project under subparagraph (A)
that—
‘‘(I) involves the payment of the value of an
allotment in the form of cash, unless the project
was approved prior to the date of enactment of
this subparagraph;

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2337

‘‘(II) has the effect of substantially transferring
funds made available under this Act to services
or benefits provided primarily through another
public assistance program, or using the funds for
any purpose other than the purchase of food, program administration, or an employment or training program;
‘‘(III) is inconsistent with—
‘‘(aa) the last 2 sentences of section 3(i);
‘‘(bb) the last sentence of section 5(a),
insofar as a waiver denies assistance to an
otherwise eligible household or individual if
the household or individual has not failed to
comply with any work, behavioral, or other
conduct requirement under this or another
program;
‘‘(cc) section 5(c)(2);
‘‘(dd) paragraph (2)(B), (4)(F)(i), or (4)(K)
of section 6(d);
‘‘(ee) section 8(b);
‘‘(ff) section 11(e)(2)(B);
‘‘(gg) the time standard under section
11(e)(3);
‘‘(hh) subsection (a), (c), (g), (h)(2), or (h)(3)
of section 16;
‘‘(ii) this paragraph; or
‘‘(jj) subsection (a)(1) or (g)(1) of section 20;
‘‘(IV) modifies the operation of section 5 so
as to have the effect of—
‘‘(aa) increasing the shelter deduction to
households with no out-of-pocket housing costs
or housing costs that consume a low percentage of the household’s income; or
‘‘(bb) absolving a State from acting with
reasonable promptness on substantial reported
changes in income or household size (except
that this subclause shall not apply with regard
to changes related to food stamp deductions);
‘‘(V) is not limited to a specific time
period; or
‘‘(VI) waives a provision of section 26.
‘‘(v) ADDITIONAL INCLUDED PROJECTS.—A pilot or
experimental project may include’’;
(B) by striking ‘‘to aid to families with dependent children under part A of title IV of the Social Security Act’’
and inserting ‘‘are receiving assistance under a State program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.)’’; and
(C) by striking ‘‘coupons. The Secretary’’ and all that
follows through ‘‘Any pilot’’ and inserting the following:
‘‘coupons.
‘‘(vi) CASH PAYMENT PILOT PROJECTS.—Any pilot’’.

110 STAT. 2338

PUBLIC LAW 104–193—AUG. 22, 1996

SEC. 851. RESPONSE TO WAIVERS.

Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)), as amended by section 850, is amended by adding
at the end the following:
‘‘(D) RESPONSE TO WAIVERS.—
‘‘(i) RESPONSE.—Not later than 60 days after the
date of receiving a request for a waiver under subparagraph (A), the Secretary shall provide a response that—
‘‘(I) approves the waiver request;
‘‘(II) denies the waiver request and describes
any modification needed for approval of the waiver
request;
‘‘(III) denies the waiver request and describes
the grounds for the denial; or
‘‘(IV) requests clarification of the waiver
request.
‘‘(ii) FAILURE TO RESPOND.—If the Secretary does
not provide a response in accordance with clause (i),
the waiver shall be considered approved, unless the
approval is specifically prohibited by this Act.
‘‘(iii) NOTICE OF DENIAL.—On denial of a waiver
request under clause (i)(III), the Secretary shall provide a copy of the waiver request and a description
of the reasons for the denial to the Committee on
Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of
the Senate.’’.
SEC. 852. EMPLOYMENT INITIATIVES PROGRAM.

Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026)
is amended by striking subsection (d) and inserting the following:
‘‘(d) EMPLOYMENT INITIATIVES PROGRAM.—
‘‘(1) ELECTION TO PARTICIPATE.—
‘‘(A) IN GENERAL.—Subject to the other provisions of
this subsection, a State may elect to carry out an employment initiatives program under this subsection.
‘‘(B) REQUIREMENT.—A State shall be eligible to carry
out an employment initiatives program under this subsection only if not less than 50 percent of the households
in the State that received food stamp benefits during the
summer of 1993 also received benefits under a State program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) during the summer of 1993.
‘‘(2) PROCEDURE.—
‘‘(A) IN GENERAL.—A State that has elected to carry
out an employment initiatives program under paragraph
(1) may use amounts equal to the food stamp allotments
that would otherwise be issued to a household under the
food stamp program, but for the operation of this subsection, to provide cash benefits in lieu of the food stamp
allotments to the household if the household is eligible
under paragraph (3).
‘‘(B) PAYMENT.—The Secretary shall pay to each State
that has elected to carry out an employment initiatives
program under paragraph (1) an amount equal to the value
of the allotment that each household participating in the

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2339

program in the State would be eligible to receive under
this Act but for the operation of this subsection.
‘‘(C) OTHER PROVISIONS.—For purposes of the food
stamp program (other than this subsection)—
‘‘(i) cash assistance under this subsection shall
be considered to be an allotment; and
‘‘(ii) each household receiving cash benefits under
this subsection shall not receive any other food stamp
benefit during the period for which the cash assistance
is provided.
‘‘(D) ADDITIONAL PAYMENTS.—Each State that has
elected to carry out an employment initiatives program
under paragraph (1) shall—
‘‘(i) increase the cash benefits provided to each
household participating in the program in the State
under this subsection to compensate for any State or
local sales tax that may be collected on purchases
of food by the household, unless the Secretary determines on the basis of information provided by the
State that the increase is unnecessary on the basis
of the limited nature of the items subject to the State
or local sales tax; and
‘‘(ii) pay the cost of any increase in cash benefits
required by clause (i).
‘‘(3) ELIGIBILITY.—A household shall be eligible to receive
cash benefits under paragraph (2) if an adult member of the
household—
‘‘(A) has worked in unsubsidized employment for not
less than the preceding 90 days;
‘‘(B) has earned not less than $350 per month from
the employment referred to in subparagraph (A) for not
less than the preceding 90 days;
‘‘(C)(i) is receiving benefits under a State program
funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.); or
‘‘(ii) was receiving benefits under a State program
funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) at the time the member first
received cash benefits under this subsection and is no
longer eligible for the State program because of earned
income;
‘‘(D) is continuing to earn not less than $350 per month
from the employment referred to in subparagraph (A); and
‘‘(E) elects to receive cash benefits in lieu of food stamp
benefits under this subsection.
‘‘(4) EVALUATION.—A State that operates a program under
this subsection for 2 years shall provide to the Secretary a
written evaluation of the impact of cash assistance under this
subsection. The State agency, with the concurrence of the Secretary, shall determine the content of the evaluation.’’.
SEC. 853. REAUTHORIZATION.

The first sentence of section 18(a)(1) of the Food Stamp Act
of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking ‘‘1991 through
1997’’ and inserting ‘‘1996 through 2002’’.

110 STAT. 2340

PUBLIC LAW 104–193—AUG. 22, 1996

SEC. 854. SIMPLIFIED FOOD STAMP PROGRAM.

(a) IN GENERAL.—The Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.) is amended by adding at the end the following:
7 USC 2035.

‘‘SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM.

‘‘(a) DEFINITION OF FEDERAL COSTS.—In this section, the term
‘Federal costs’ does not include any Federal costs incurred under
section 17.
‘‘(b) ELECTION.—Subject to subsection (d), a State may elect
to carry out a Simplified Food Stamp Program (referred to in
this section as a ‘Program’), statewide or in a political subdivision
of the State, in accordance with this section.
‘‘(c) OPERATION OF PROGRAM.—If a State elects to carry out
a Program, within the State or a political subdivision of the State—
‘‘(1) a household in which no members receive assistance
under a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) may not participate in the Program;
‘‘(2) a household in which all members receive assistance
under a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) shall automatically be eligible to participate in the Program;
‘‘(3) if approved by the Secretary, a household in which
1 or more members but not all members receive assistance
under a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) may be eligible
to participate in the Program; and
‘‘(4) subject to subsection (f), benefits under the Program
shall be determined under rules and procedures established
by the State under—
‘‘(A) a State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.);
‘‘(B) the food stamp program; or
‘‘(C) a combination of a State program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.) and the food stamp program.
‘‘(d) APPROVAL OF PROGRAM.—
‘‘(1) STATE PLAN.—A State agency may not operate a Program unless the Secretary approves a State plan for the operation of the Program under paragraph (2).
‘‘(2) APPROVAL OF PLAN.—The Secretary shall approve any
State plan to carry out a Program if the Secretary determines
that the plan—
‘‘(A) complies with this section; and
‘‘(B) contains sufficient documentation that the plan
will not increase Federal costs for any fiscal year.
‘‘(e) INCREASED FEDERAL COSTS.—
‘‘(1) DETERMINATION.—
‘‘(A) IN GENERAL.—The Secretary shall determine
whether a Program being carried out by a State agency
is increasing Federal costs under this Act.
‘‘(B) NO EXCLUDED HOUSEHOLDS.—In making a determination under subparagraph (A), the Secretary shall not
require the State agency to collect or report any information
on households not included in the Program.
‘‘(C) ALTERNATIVE ACCOUNTING PERIODS.—The Secretary may approve the request of a State agency to apply

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2341

alternative accounting periods to determine if Federal costs
do not exceed the Federal costs had the State agency not
elected to carry out the Program.
‘‘(2) NOTIFICATION.—If the Secretary determines that the
Program has increased Federal costs under this Act for any
fiscal year or any portion of any fiscal year, the Secretary
shall notify the State not later than 30 days after the Secretary
makes the determination under paragraph (1).
‘‘(3) ENFORCEMENT.—
‘‘(A) CORRECTIVE ACTION.—Not later than 90 days after
the date of a notification under paragraph (2), the State
shall submit a plan for approval by the Secretary for
prompt corrective action that is designed to prevent the
Program from increasing Federal costs under this Act.
‘‘(B) TERMINATION.—If the State does not submit a
plan under subparagraph (A) or carry out a plan approved
by the Secretary, the Secretary shall terminate the
approval of the State agency operating the Program and
the State agency shall be ineligible to operate a future
Program.
‘‘(f) RULES AND PROCEDURES.—
‘‘(1) IN GENERAL.—In operating a Program, a State or political subdivision of a State may follow the rules and procedures
established by the State or political subdivision under a State
program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) or under the food stamp program.
‘‘(2) STANDARDIZED DEDUCTIONS.—In operating a Program,
a State or political subdivision of a State may standardize
the deductions provided under section 5(e). In developing the
standardized deduction, the State shall consider the work
expenses, dependent care costs, and shelter costs of participating households.
‘‘(3) REQUIREMENTS.—In operating a Program, a State or
political subdivision shall comply with the requirements of—
‘‘(A) subsections (a) through (g) of section 7;
‘‘(B) section 8(a) (except that the income of a household
may be determined under a State program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.));
‘‘(C) subsection (b) and (d) of section 8;
‘‘(D) subsections (a), (c), (d), and (n) of section 11;
‘‘(E) paragraphs (8), (12), (16), (18), (20), (24), and
(25) of section 11(e);
‘‘(F) section 11(e)(10) (or a comparable requirement
established by the State under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.)); and
‘‘(G) section 16.
‘‘(4) LIMITATION ON ELIGIBILITY.—Notwithstanding any
other provision of this section, a household may not receive
benefits under this section as a result of the eligibility of
the household under a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et seq.),
unless the Secretary determines that any household with
income above 130 percent of the poverty guidelines is not
eligible for the program.’’.

110 STAT. 2342

PUBLIC LAW 104–193—AUG. 22, 1996

(b) STATE PLAN PROVISIONS.—Section 11(e) of the Food Stamp
Act of 1977 (7 U.S.C. 2020(e)), as amended by sections 819(b)
and 835, is amended by adding at the end the following:
‘‘(25) if a State elects to carry out a Simplified Food Stamp
Program under section 26, the plans of the State agency for
operating the program, including—
‘‘(A) the rules and procedures to be followed by the
State agency to determine food stamp benefits;
‘‘(B) how the State agency will address the needs of
households that experience high shelter costs in relation
to the incomes of the households; and
‘‘(C) a description of the method by which the State
agency will carry out a quality control system under section
16(c).’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017), as amended by section 830, is amended—
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as subsection (e).
(2) Section 17 of the Food Stamp Act of 1977 (7 U.S.C.
2026) is amended—
(A) by striking subsection (i); and
(B) by redesignating subsections (j) through (l) as subsections (i) through (k), respectively.
7 USC 2026 note.

SEC. 855. STUDY OF THE USE OF FOOD STAMPS TO PURCHASE
VITAMINS AND MINERALS.

(a) IN GENERAL.—The Secretary of Agriculture, in consultation
with the National Academy of Sciences and the Center for Disease
Control and Prevention, shall conduct a study on the use of food
stamps provided under the Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.) to purchase vitamins and minerals.
(b) ANALYSIS.—The study shall include—
(1) an analysis of scientific findings on the efficacy of and
need for vitamins and minerals, including—
(A) the adequacy of vitamin and mineral intakes in
low-income populations, as shown by research and surveys
conducted prior to the study; and
(B) the potential value of nutritional supplements in
filling nutrient gaps that may exist in the United States
population as a whole or in vulnerable subgroups in the
population;
(2) the impact of nutritional improvements (including vitamin or mineral supplementation) on the health status and
health care costs of women of childbearing age, pregnant or
lactating women, and the elderly;
(3) the cost of commercially available vitamin and mineral
supplements;
(4) the purchasing habits of low-income populations with
regard to vitamins and minerals;
(5) the impact of using food stamps to purchase vitamins
and minerals on the food purchases of low-income households; and
(6) the economic impact on the production of agricultural
commodities of using food stamps to purchase vitamins and
minerals.

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2343

(c) REPORT.—Not later than December 15, 1998, the Secretary
shall report the results of the study to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
SEC. 856. DEFICIT REDUCTION.

It is the sense of the Committee on Agriculture of the House
of Representatives that reductions in outlays resulting from this
title shall not be taken into account for purposes of section 252
of the Balanced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 902).

Subtitle B—Commodity Distribution
Programs
SEC. 871. EMERGENCY FOOD ASSISTANCE PROGRAM.

(a) DEFINITIONS.—Section 201A of the Emergency Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended
to read as follows:
‘‘SEC. 201A. DEFINITIONS.

‘‘In this Act:
‘‘(1) ADDITIONAL COMMODITIES.—The term ‘additional
commodities’ means commodities made available under section
214 in addition to the commodities made available under sections 202 and 203D.
‘‘(2) AVERAGE MONTHLY NUMBER OF UNEMPLOYED
PERSONS.—The term ‘average monthly number of unemployed
persons’ means the average monthly number of unemployed
persons in each State during the most recent fiscal year for
which information concerning the number of unemployed persons is available, as determined by the Bureau of Labor Statistics of the Department of Labor.
‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term ‘eligible recipient agency’ means a public or nonprofit organization that—
‘‘(A) administers—
‘‘(i) an emergency feeding organization;
‘‘(ii) a charitable institution (including a hospital
and a retirement home, but excluding a penal institution) to the extent that the institution serves needy
persons;
‘‘(iii) a summer camp for children, or a child nutrition program providing food service;
‘‘(iv) a nutrition project operating under the Older
Americans Act of 1965 (42 U.S.C. 3001 et seq.), including a project that operates a congregate nutrition site
and a project that provides home-delivered meals; or
‘‘(v) a disaster relief program;
‘‘(B) has been designated by the appropriate State
agency, or by the Secretary; and
‘‘(C) has been approved by the Secretary for participation in the program established under this Act.
‘‘(4) EMERGENCY FEEDING ORGANIZATION.—The term ‘emergency feeding organization’ means a public or nonprofit
organization that administers activities and projects (including

110 STAT. 2344

PUBLIC LAW 104–193—AUG. 22, 1996

the activities and projects of a charitable institution, a food
bank, a food pantry, a hunger relief center, a soup kitchen,
or a similar public or private nonprofit eligible recipient agency)
providing nutrition assistance to relieve situations of emergency
and distress through the provision of food to needy persons,
including low-income and unemployed persons.
‘‘(5) FOOD BANK.—The term ‘food bank’ means a public
or charitable institution that maintains an established operation involving the provision of food or edible commodities,
or the products of food or edible commodities, to food pantries,
soup kitchens, hunger relief centers, or other food or feeding
centers that, as an integral part of their normal activities,
provide meals or food to feed needy persons on a regular basis.
‘‘(6) FOOD PANTRY.—The term ‘food pantry’ means a public
or private nonprofit organization that distributes food to lowincome and unemployed households, including food from sources
other than the Department of Agriculture, to relieve situations
of emergency and distress.
‘‘(7) POVERTY LINE.—The term ‘poverty line’ has the meaning provided in section 673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2)).
‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’ means a public or charitable institution that, as an integral part of the
normal activities of the institution, maintains an established
feeding operation to provide food to needy homeless persons
on a regular basis.
‘‘(9) TOTAL VALUE OF ADDITIONAL COMMODITIES.—The term
‘total value of additional commodities’ means the actual cost
of all additional commodities that are paid by the Secretary
(including the distribution and processing costs incurred by
the Secretary).
‘‘(10) VALUE OF ADDITIONAL COMMODITIES ALLOCATED TO
EACH STATE.—The term ‘value of additional commodities allocated to each State’ means the actual cost of additional commodities allocated to each State that are paid by the Secretary
(including the distribution and processing costs incurred by
the Secretary).’’.
(b) STATE PLAN.—Section 202A of the Emergency Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended
to read as follows:
‘‘SEC. 202A. STATE PLAN.

‘‘(a) IN GENERAL.—To receive commodities under this Act, a
State shall submit a plan of operation and administration every
4 years to the Secretary for approval. The plan may be amended
at any time, with the approval of the Secretary.
‘‘(b) REQUIREMENTS.—Each plan shall—
‘‘(1) designate the State agency responsible for distributing
the commodities received under this Act;
‘‘(2) set forth a plan of operation and administration to
expeditiously distribute commodities under this Act;
‘‘(3) set forth the standards of eligibility for recipient agencies; and
‘‘(4) set forth the standards of eligibility for individual
or household recipients of commodities, which shall require—
‘‘(A) individuals or households to be comprised of needy
persons; and

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2345

‘‘(B) individual or household members to be residing
in the geographic location served by the distributing agency
at the time of applying for assistance.
‘‘(c) STATE ADVISORY BOARD.—The Secretary shall encourage
each State receiving commodities under this Act to establish a
State advisory board consisting of representatives of all entities
in the State, both public and private, interested in the distribution
of commodities received under this Act.’’.
(c) AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATIVE
FUNDS.—Section 204(a)(1) of the Emergency Food Assistance Act
of 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended—
(1) in the first sentence, by striking ‘‘for State and local’’
and all that follows through ‘‘under this title’’ and inserting
‘‘to pay for the direct and indirect administrative costs of the
States related to the processing, transporting, and distributing
to eligible recipient agencies of commodities provided by the
Secretary under this Act and commodities secured from other
sources’’; and
(2) by striking the fourth sentence.
(d) DELIVERY OF COMMODITIES.—Section 214 of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note)
is amended—
(1) by striking subsections (a) through (e) and (j);
(2) by redesignating subsections (f) through (i) as subsections (a) through (d), respectively;
(3) in subsection (b), as redesignated by paragraph (2)—
(A) in the first sentence, by striking ‘‘subsection (f)
or subsection (j) if applicable,’’ and inserting ‘‘subsection
(a),’’; and
(B) in the second sentence, by striking ‘‘subsection
(f)’’ and inserting ‘‘subsection (a)’’;
(4) by striking subsection (c), as redesignated by paragraph
(2), and inserting the following:
‘‘(c) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Commodities made available for each
fiscal year under this section shall be delivered at reasonable
intervals to States based on the grants calculated under subsection (a), or reallocated under subsection (b), before December
31 of the following fiscal year.
‘‘(2) ENTITLEMENT.—Each State shall be entitled to receive
the value of additional commodities determined under subsection (a).’’; and
(5) in subsection (d), as redesignated by paragraph (2),
by striking ‘‘or reduce’’ and all that follows through ‘‘each
fiscal year’’.
(e) TECHNICAL AMENDMENTS.—The Emergency Food Assistance
Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended—
(1) in the first sentence of section 203B(a), by striking
‘‘203 and 203A of this Act’’ and inserting ‘‘203A’’;
(2) in section 204(a), by striking ‘‘title’’ each place it appears
and inserting ‘‘Act’’;
(3) in the first sentence of section 210(e), by striking
‘‘(except as otherwise provided for in section 214(j))’’; and
(4) by striking section 212.
(f) REPORT ON EFAP.—Section 1571 of the Food Security Act
of 1985 (Public Law 99–198; 7 U.S.C. 612c note) is repealed.

110 STAT. 2346

PUBLIC LAW 104–193—AUG. 22, 1996

(g) AVAILABILITY OF COMMODITIES UNDER THE FOOD STAMP
PROGRAM.—The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.),
as amended by section 854(a), is amended by adding at the end
the following:
7 USC 2036.

7 USC 612c note.

‘‘SEC. 27. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD
ASSISTANCE PROGRAM.

‘‘(a) PURCHASE OF COMMODITIES.—From amounts made available to carry out this Act, for each of fiscal years 1997 through
2002, the Secretary shall purchase $100,000,000 of a variety of
nutritious and useful commodities of the types that the Secretary
has the authority to acquire through the Commodity Credit Corporation or under section 32 of the Act entitled ‘An Act to amend
the Agricultural Adjustment Act, and for other purposes’, approved
August 24, 1935 (7 U.S.C. 612c), and distribute the commodities
to States for distribution in accordance with section 214 of the
Emergency Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note).
‘‘(b) BASIS FOR COMMODITY PURCHASES.—In purchasing
commodities under subsection (a), the Secretary shall, to the extent
practicable and appropriate, make purchases based on—
‘‘(1) agricultural market conditions;
‘‘(2) preferences and needs of States and distributing
agencies; and
‘‘(3) preferences of recipients.’’.
(h) EFFECTIVE DATE.—The amendments made by subsection
(d) shall become effective on October 1, 1996.
SEC. 872. FOOD BANK DEMONSTRATION PROJECT.

Section 3 of the Charitable Assistance and Food Bank Act
of 1987 (Public Law 100–232; 7 U.S.C. 612c note) is repealed.
SEC. 873. HUNGER PREVENTION PROGRAMS.

The Hunger Prevention Act of 1988 (Public Law 100–435; 7
U.S.C. 612c note) is amended—
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
SEC. 874. REPORT ON ENTITLEMENT COMMODITY PROCESSING.

Section 1773 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101–624; 7 U.S.C. 612c note) is amended
by striking subsection (f).

Subtitle C—Electronic Benefit Transfer
Systems
SEC.

891.

PROVISIONS TO ENCOURAGE
TRANSFER SYSTEMS.

ELECTRONIC

BENEFIT

Section 904 of the Electronic Fund Transfer Act (15 U.S.C.
1693b) is amended—
(1) by striking ‘‘(d) In the event that’’ and inserting ‘‘(d)
APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN
FINANCIAL INSTITUTIONS.—
‘‘(1) IN GENERAL.—If’’; and
(2) by adding at the end the following:

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2347

‘‘(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT
TRANSFER SYSTEMS.—
‘‘(A) DEFINITION OF ELECTRONIC BENEFIT TRANSFER
SYSTEM.—In this paragraph, the term ‘electronic benefit
transfer system’—
‘‘(i) means a system under which a government
agency distributes needs-tested benefits by establishing
accounts that may be accessed by recipients electronically, such as through automated teller machines or
point-of-sale terminals; and
‘‘(ii) does not include employment-related payments, including salaries and pension, retirement, or
unemployment benefits established by a Federal, State,
or local government agency.
‘‘(B) EXEMPTION GENERALLY.—The disclosures, protections, responsibilities, and remedies established under this
title, and any regulation prescribed or order issued by
the Board in accordance with this title, shall not apply
to any electronic benefit transfer system established under
State or local law or administered by a State or local
government.
‘‘(C) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT’S
ACCOUNT.—Subparagraph (B) shall not apply with respect
to any electronic funds transfer under an electronic benefit
transfer system for a deposit directly into a consumer
account held by the recipient of the benefit.
‘‘(D) RULE OF CONSTRUCTION.—No provision of this
paragraph—
‘‘(i) affects or alters the protections otherwise
applicable with respect to benefits established by any
other provision Federal, State, or local law; or
‘‘(ii) otherwise supersedes the application of any
State or local law.’’.

TITLE IX—MISCELLANEOUS
SEC. 901. APPROPRIATION BY STATE LEGISLATURES.

42 USC 601 note.

(a) IN GENERAL.—Any funds received by a State under the
provisions of law specified in subsection (b) shall be subject to
appropriation by the State legislature, consistent with the terms
and conditions required under such provisions of law.
(b) PROVISIONS OF LAW.—The provisions of law specified in
this subsection are the following:
(1) Part A of title IV of the Social Security Act (relating
to block grants for temporary assistance for needy families).
(2) The Child Care and Development Block Grant Act of
1990 (relating to block grants for child care).
SEC. 902. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED
SUBSTANCES.

Notwithstanding any other provision of law, States shall not
be prohibited by the Federal Government from testing welfare
recipients for use of controlled substances nor from sanctioning
welfare recipients who test positive for use of controlled substances.

21 USC 862b.

110 STAT. 2348

PUBLIC LAW 104–193—AUG. 22, 1996

SEC. 903. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO
FUGITIVE FELONS AND PROBATION AND PAROLE
VIOLATORS.

42 USC 1437d.

42 USC 1437f.

42 USC 1437z.

(a) ELIGIBILITY FOR ASSISTANCE.—The United States Housing
Act of 1937 (42 U.S.C. 1437 et seq.) is amended—
(1) in section 6(l)—
(A) in paragraph (5), by striking ‘‘and’’ at the end;
(B) in paragraph (6), by striking the period at the
end and inserting ‘‘; and’’; and
(C) by inserting immediately after paragraph (6) the
following new paragraph:
‘‘(7) provide that it shall be cause for immediate termination
of the tenancy of a public housing tenant if such tenant—
‘‘(A) is fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the place
from which the individual flees, for a crime, or attempt
to commit a crime, which is a felony under the laws of
the
place
from
which
the
individual
flees, or which, in the case of the State of New Jersey,
is a high misdemeanor under the laws of such State; or
‘‘(2) is violating a condition of probation or parole imposed
under Federal or State law.’’; and
(2) in section 8(d)(1)(B)—
(A) in clause (iii), by striking ‘‘and’’ at the end;
(B) in clause (iv), by striking the period at the end
and inserting ‘‘; and’’; and
(C) by adding after clause (iv) the following new clause:
‘‘(v) it shall be cause for termination of the tenancy
of a tenant if such tenant—
‘‘(I) is fleeing to avoid prosecution, or custody
or confinement after conviction, under the laws
of the place from which the individual flees, for
a crime, or attempt to commit a crime, which
is a felony under the laws of the place from which
the individual flees, or which, in the case of the
State of New Jersey, is a high misdemeanor under
the laws of such State; or
‘‘(II) is violating a condition of probation or
parole imposed under Federal or State law;’’.
(b) PROVISION OF INFORMATION TO LAW ENFORCEMENT AGENCIES.—Title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.) is amended by adding at the end the following:
‘‘SEC. 27. EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT
AGENCIES.

‘‘Notwithstanding any other provision of law, each public housing agency that enters into a contract for assistance under section
6 or 8 of this Act with the Secretary shall furnish any Federal,
State, or local law enforcement officer, upon the request of the
officer, with the current address, Social Security number, and photograph (if applicable) of any recipient of assistance under this Act,
if the officer—
‘‘(1) furnishes the public housing agency with the name
of the recipient; and
‘‘(2) notifies the agency that—
‘‘(A) such recipient—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2349

‘‘(i) is fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the individual flees, for a crime,
or attempt to commit a crime, which is a felony under
the laws of the place from which the individual flees,
or which, in the case of the State of New Jersey,
is a high misdemeanor under the laws of such State;
or
‘‘(ii) is violating a condition of probation or parole
imposed under Federal or State law; or
‘‘(iii) has information that is necessary for the officer to conduct the officer’s official duties;
‘‘(B) the location or apprehension of the recipient is
within such officer’s official duties; and
‘‘(C) the request is made in the proper exercise of
the officer’s official duties.’’.
SEC. 904. SENSE OF THE SENATE REGARDING THE INABILITY OF THE
NONCUSTODIAL PARENT TO PAY CHILD SUPPORT.

It is the sense of the Senate that—
(a) States should diligently continue their efforts to enforce
child support payments by the non-custodial parent to the
custodial parent, regardless of the employment status or location of the non-custodial parent; and
(b) States are encouraged to pursue pilot programs in which
the parents of a non-adult, non-custodial parent who refuses
to or is unable to pay child support must—
(1) pay or contribute to the child support owed by
the non-custodial parent; or
(2) otherwise fulfill all financial obligations and meet
all conditions imposed on the non-custodial parent, such
as participation in a work program or other related activity.
SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEENAGE
PREGNANCIES.

42 USC 710 note.

(a) IN GENERAL.—Not later than January 1, 1997, the Secretary
of Health and Human Services shall establish and implement a
strategy for—
(1) preventing out-of-wedlock teenage pregnancies, and
(2) assuring that at least 25 percent of the communities
in the United States have teenage pregnancy prevention programs in place.
(b) REPORT.—Not later than June 30, 1998, and annually thereafter, the Secretary shall report to the Congress with respect to
the progress that has been made in meeting the goals described
in paragraphs (1) and (2) of subsection (a).
SEC. 906. SENSE OF THE SENATE REGARDING ENFORCEMENT OF
STATUTORY RAPE LAWS.

(a) SENSE OF THE SENATE.—It is the sense of the Senate that
States and local jurisdictions should aggressively enforce statutory
rape laws.
(b) JUSTICE DEPARTMENT PROGRAM ON STATUTORY RAPE.—Not
later than January 1, 1997, the Attorney General shall establish
and implement a program that—
(1) studies the linkage between statutory rape and teenage
pregnancy, particularly by predatory older men committing
repeat offenses; and

42 USC 14016.

Establishment.

110 STAT. 2350

PUBLIC LAW 104–193—AUG. 22, 1996

(2) educates State and local criminal law enforcement officials on the prevention and prosecution of statutory rape, focusing in particular on the commission of statutory rape by predatory older men committing repeat offenses, and any links to
teenage pregnancy.
(c) VIOLENCE AGAINST WOMEN INITIATIVE.—The Attorney
General shall ensure that the Department of Justice’s Violence
Against Women initiative addresses the issue of statutory rape,
particularly the commission of statutory rape by predatory older
men committing repeat offenses.
SEC.

907.

PROVISIONS TO ENCOURAGE
TRANSFER SYSTEMS.

ELECTRONIC

BENEFIT

Section 904 of the Electronic Fund Transfer Act (15 U.S.C.
1693b) is amended—
(1) by striking ‘‘(d) In the event’’ and inserting ‘‘(d)
APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN
FINANCIAL INSTITUTIONS.—
‘‘(1) IN GENERAL.—In the event’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT
TRANSFER PROGRAMS.—
‘‘(A) EXEMPTION GENERALLY.—The disclosures, protections, responsibilities, and remedies established under this
title, and any regulation prescribed or order issued by
the Board in accordance with this title, shall not apply
to any electronic benefit transfer program established
under State or local law or administered by a State or
local government.
‘‘(B) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT’S
ACCOUNT.—Subparagraph (A) shall not apply with respect
to any electronic funds transfer under an electronic benefit
transfer program for deposits directly into a consumer
account held by the recipient of the benefit.
‘‘(C) RULE OF CONSTRUCTION.—No provision of this
paragraph may be construed as—
‘‘(i) affecting or altering the protections otherwise
applicable with respect to benefits established by Federal, State, or local law; or
‘‘(ii) otherwise superseding the application of any
State or local law.
‘‘(D) ELECTRONIC BENEFIT TRANSFER PROGRAM
DEFINED.—For purposes of this paragraph, the term ‘electronic benefit transfer program’—
‘‘(i) means a program under which a government
agency distributes needs-tested benefits by establishing
accounts to be accessed by recipients electronically,
such as through automated teller machines, or pointof-sale terminals; and
‘‘(ii) does not include employment-related payments, including salaries and pension, retirement, or
unemployment benefits established by Federal, State,
or local governments.’’.
SEC. 908. REDUCTION OF BLOCK GRANTS TO STATES FOR SOCIAL
SERVICES; USE OF VOUCHERS.

(a) REDUCTION OF GRANTS.—Section 2003(c) of the Social Security Act (42 U.S.C. 1397b(c)) is amended—

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2351

(1) by striking ‘‘and’’ at the end of paragraph (4); and
(2) by striking paragraph (5) and inserting the following:
‘‘(5) $2,800,000,000 for each of the fiscal years 1990 through
1995;
‘‘(6) $2,381,000,000 for the fiscal year 1996;
‘‘(7) $2,380,000,000 for each of the fiscal years 1997 through
2002; and
‘‘(8) $2,800,000,000 for the fiscal year 2003 and each
succeeding fiscal year.’’.
(b) AUTHORITY TO USE VOUCHERS.—Section 2002 of such Act
(42 U.S.C. 1937a) is amended by adding at the end the following:
‘‘(f) A State may use funds provided under this title to provide
vouchers, for services directed at the goals set forth in section
2001, to families, including—
‘‘(1) families who have become ineligible for assistance
under a State program funded under part A of title IV
by reason of a durational limit on the provision of such assistance; and
‘‘(2) families denied cash assistance under the State program funded under part A of title IV for a child who is born
to a member of the family who is—
‘‘(A) a recipient of assistance under the program; or
‘‘(B) a person who received such assistance at any
time during the 10-month period ending with the birth
of the child.’’.
SEC. 909. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT
ON BASIS OF DISQUALIFIED INCOME.

(a) REDUCTION IN DISQUALIFIED INCOME THRESHOLD.—
(1) IN GENERAL.—Paragraph (1) of section 32(i) of the
Internal Revenue Code of 1986 (relating to denial of credit
for individuals having excessive investment income) is amended
by striking ‘‘$2,350’’ and inserting ‘‘$2,200’’.
(2) ADJUSTMENT FOR INFLATION.—Subsection (j) of section
32 of such Code is amended to read as follows:
‘‘(j) INFLATION ADJUSTMENTS.—
‘‘(1) IN GENERAL.—In the case of any taxable year beginning
after 1996, each of the dollar amounts in subsections (b)(2)
and (i)(1) shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting ‘calendar year
1995’ for ‘calendar year 1992’ in subparagraph (B) thereof.
‘‘(2) ROUNDING.—
‘‘(A) IN GENERAL.—If any dollar amount in subsection
(b)(2), after being increased under paragraph (1), is not
a multiple of $10, such dollar amount shall be rounded
to the nearest multiple of $10.
‘‘(B) DISQUALIFIED INCOME THRESHOLD AMOUNT.—If the
dollar amount in subsection (i)(1), after being increased
under paragraph (1), is not a multiple of $50, such amount
shall be rounded to the next lowest multiple of $50.’’.
(3) CONFORMING AMENDMENT.—Paragraph (2) of section
32(b) of such Code is amended to read as follows:

42 USC 1397a.

110 STAT. 2352

PUBLIC LAW 104–193—AUG. 22, 1996
‘‘(2) AMOUNTS.—The earned income amount and the phaseout amount shall be determined as follows:

In the case of an eligible individual with:

26 USC 32 note.

The earned income
amount is:

The phaseout
amount is:

1 qualifying child .......
$6,330
$11,610
2 or more qualifying
$8,890
$11,610
children.
No qualifying children
$4,220
$ 5,280’’.
(b) DEFINITION OF DISQUALIFIED INCOME.—Paragraph (2) of
section 32(i) of such Code (defining disqualified income) is amended
by striking ‘‘and’’ at the end of subparagraph (B), by striking the
period at the end of subparagraph (C) and inserting a comma,
and by adding at the end the following new subparagraphs:
‘‘(D) the capital gain net income (as defined in section
1222) of the taxpayer for such taxable year, and
‘‘(E) the excess (if any) of—
‘‘(i) the aggregate income from all passive activities
for the taxable year (determined without regard to
any amount included in earned income under subsection (c)(2) or described in a preceding subparagraph), over
‘‘(ii) the aggregate losses from all passive activities
for the taxable year (as so determined).
For purposes of subparagraph (E), the term ‘passive activity’
has the meaning given such term by section 469.’’.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 1995.
(2) ADVANCE PAYMENT INDIVIDUALS.—In the case of any
individual who on or before June 26, 1996, has in effect an
earned income eligibility certificate for the individual’s taxable
year beginning in 1996, the amendments made by this section
shall apply to taxable years beginning after December 31, 1996.
SEC. 910. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION
FOR EARNED INCOME CREDIT.

(a) IN GENERAL.—Subsections (a)(2)(B), (c)(1)(C), and (f)(2)(B)
of section 32 of the Internal Revenue Code of 1986 are each amended
by striking ‘‘adjusted gross income’’ each place it appears and inserting ‘‘modified adjusted gross income’’.
(b) MODIFIED ADJUSTED GROSS INCOME DEFINED.—Section 32(c)
of such Code (relating to definitions and special rules) is amended
by adding at the end the following new paragraph:
‘‘(5) MODIFIED ADJUSTED GROSS INCOME.—
‘‘(A) IN GENERAL.—The term ‘modified adjusted gross
income’ means adjusted gross income determined without
regard to the amounts described in subparagraph (B).
‘‘(B) CERTAIN AMOUNTS DISREGARDED.—An amount is
described in this subparagraph if it is—
‘‘(i) the amount of losses from sales or exchanges
of capital assets in excess of gains from such sales

PUBLIC LAW 104–193—AUG. 22, 1996

110 STAT. 2353

or exchanges to the extent such amount does not exceed
the amount under section 1211(b)(1),
‘‘(ii) the net loss from estates and trusts,
‘‘(iii) the excess (if any) of amounts described in
subsection (i)(2)(C)(ii) over the amounts described in
subsection (i)(2)(C)(i) (relating to nonbusiness rents
and royalties), and
‘‘(iv) 50 percent of the net loss from the carrying
on of trades or businesses, computed separately with
respect to—
‘‘(I) trades or businesses (other than farming)
conducted as sole proprietorships,
‘‘(II) trades or businesses of farming conducted
as sole proprietorships, and
‘‘(III) other trades or businesses.
For purposes of clause (iv), there shall not be taken into
account items which are attributable to a trade or business
which consists of the performance of services by the taxpayer as an employee.’’.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 1995.
(2) ADVANCE PAYMENT INDIVIDUALS.—In the case of any
individual who on or before June 26, 1996, has in effect an
earned income eligibility certificate for the individual’s taxable
year beginning in 1996, the amendments made by this section
shall apply to taxable years beginning after December 31, 1996.
SEC. 911. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC
ASSISTANCE PROGRAMS.

26 USC 32 note.

42 USC 608a.

(a) IN GENERAL.—If an individual’s benefits under a Federal,
State, or local law relating to a means-tested welfare or a public
assistance program are reduced because of an act of fraud by
the individual under the law or program, the individual may not,
for the duration of the reduction, receive an increased benefit under
any other means-tested welfare or public assistance program for
which Federal funds are appropriated as a result of a decrease
in the income of the individual (determined under the applicable
program) attributable to such reduction.
(b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS FOR WHICH
FEDERAL FUNDS ARE APPROPRIATED.—For purposes of subsection
(a), the term ‘‘means-tested welfare or public assistance program
for which Federal funds are appropriated’’ includes the food stamp
program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.), any program of public or assisted housing under title I of
the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.),
and any State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
SEC. 912. ABSTINENCE EDUCATION.

Title V of the Social Security Act (42 U.S.C. 701 et seq.)
is amended by adding at the end the following section:
‘‘SEPARATE

PROGRAM FOR ABSTINENCE EDUCATION

‘‘SEC. 510. (a) For the purpose described in subsection (b),
the Secretary shall, for fiscal year 1998 and each subsequent fiscal

42 USC 710.

110 STAT. 2354

Appropriation
authorization.
Effective date.
Effective date.

PUBLIC LAW 104–193—AUG. 22, 1996

year, allot to each State which has transmitted an application
for the fiscal year under section 505(a) an amount equal to the
product of—
‘‘(1) the amount appropriated in subsection (d) for the fiscal
year; and
‘‘(2) the percentage determined for the State under section
502(c)(1)(B)(ii).
‘‘(b)(1) The purpose of an allotment under subsection (a) to
a State is to enable the State to provide abstinence education,
and at the option of the State, where appropriate, mentoring, counseling, and adult supervision to promote abstinence from sexual
activity, with a focus on those groups which are most likely to
bear children out-of-wedlock.
‘‘(2) For purposes of this section, the term ‘abstinence education’
means an educational or motivational program which—
‘‘(A) has as its exclusive purpose, teaching the social,
psychological, and health gains to be realized by abstaining
from sexual activity;
‘‘(B) teaches abstinence from sexual activity outside
marriage as the expected standard for all school age children;
‘‘(C) teaches that abstinence from sexual activity is
the only certain way to avoid out-of-wedlock pregnancy,
sexually transmitted diseases, and other associated health
problems;
‘‘(D) teaches that a mutually faithful monogamous relationship in context of marriage is the expected standard
of human sexual activity;
‘‘(E) teaches that sexual activity outside of the context
of marriage is likely to have harmful psychological and
physical effects;
‘‘(F) teaches that bearing children out-of-wedlock is
likely to have harmful consequences for the child, the
child’s parents, and society;
‘‘(G) teaches young people how to reject sexual
advances and how alcohol and drug use increases vulnerability to sexual advances; and
‘‘(H) teaches the importance of attaining self-sufficiency
before engaging in sexual activity.
‘‘(c)(1) Sections 503, 507, and 508 apply to allotments under
subsection (a) to the same extent and in the same manner as
such sections apply to allotments under section 502(c).
‘‘(2) Sections 505 and 506 apply to allotments under subsection
(a) to the extent determined by the Secretary to be appropriate.
‘‘(d) For the purpose of allotments under subsection (a), there
is appropriated, out of any money in the Treasury not otherwise
appropriated, an additional $50,000,000 for each of the fiscal years
1998 through 2002. The appropriation under the preceding sentence
for a fiscal year is made on October 1 of the fiscal year.’’.
SEC. 913. CHANGE IN REFERENCE.

Effective January 1, 1997, the third sentence of section 1902(a)
and section 1908(e)(1) of the Social Security Act (42 U.S.C. 1396a(a),
1396g–1(e)(1)) are each amended by striking ‘‘The First Church
of Christ, Scientist, Boston, Massachusetts’’ and inserting ‘‘The

PUBLIC LAW 104–193—AUG. 22, 1996
Commission for Accreditation of Christian Science
Organizations/Facilities, Inc.’’ each place it appears.

110 STAT. 2355
Nursing

Approved August 22, 1996.

LEGISLATIVE HISTORY—H.R. 3734 (S. 1956):
HOUSE REPORTS: Nos. 104–651 (Comm. on the Budget) and 104–725 (Comm. of
Conference).
CONGRESSIONAL RECORD, Vol. 142 (1996):
July 17, 18, considered and passed House.
July 18, 19, 22, 23, considered and passed Senate, amended, in lieu of
S. 1956.
July 31, House agreed to conference report.
Aug. 1, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
Aug. 22, Presidential remarks and statement.

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