Independence for Families Act of 1994

TABLE OF CONTENTS:

Title I: Time-Limited Transitional Assistance

Title II: Make Work Pay

Subtitle A: Health Care

Subtitle B: Earned Income Tax Credit

Subtitle C: Child Care

Subtitle D: AFDC Work Disregards

Subtitle E: AFDC Asset Limitations

Title III: The Work First Program

Subtitle A: AFDC

Subtitle B: Targeted Jobs Tax Credit

Title IV: Family Responsibility and Improved Child Support

Enforcement

Subtitle A: Enhancement of Ability to Identify and Locate

Noncustodial Parents

Subtitle B: Paternity Establishment

Subtitle C: Improvement of Child Support Order

Establishment Process

Subtitle D: Child Support Enforcement

Title V: Teen Pregnancy and Family Stability

Subtitle A: Federal Role

Subtitle B: State Role

Title VI: Program Simplification

Subtitle A: Increased State Flexibility

Subtitle B: Coordination of AFDC and Food Stamp Programs

Subtitle C: Fraud Reduction

Title VII: Financing

Subtitle A: Ineligibility of certain Aliens for certain

Social Services

Subtitle B: Other Provisions Relating to Aliens

Subtitle C: Limitation on Emergency Assistance

Expenditures

Subtitle D: Family Day Care Homes Program Improvements

Subtitle E: Collection of Certain State and Local Taxes

on Out-of-State Sales

Title VIII: Effective Date

Independence for Families Act of 1994 - Title I: Time-Limited Transitional Assistance - Amends part A (Aid to Families with Dependent Children) (AFDC) of title IV of the Social Security Act (SSA) to: (1) require States opting below to have work first programs to make ineligible for AFDC any family with a member who has participated in such work program for two years; (2) condition eligibility for AFDC on participation in job search activities except during unsubsidized full-time private sector employment; (3) provide transitional child care for families cut off AFDC after two years; and (4) direct the Secretary of Health and Human Service (Secretary) to establish a database of work first and community service programs participants for use by States opting to have work first programs.

Title II: Make Work Pay - Amends SSA titles XIX (Medicaid) and IV part A (AFDC), as well as the Internal Revenue Code (IRC) and other specified Federal law, to make various specified changes with regard to, among others, extended Medicaid enrollment for former AFDC recipients, increased AFDC earned income disregards, limited AFDC income and resource disregards of savings for education, first time home or automobile purchase, microenterprise initiatives, increased child care funding and transitional benefits for two parent families, and refundable tax credits for dependent care and other expenses connected with gaining employment in order to enable AFDC recipients to become self-sufficient.

(Sec. 229) Expresses the sense of the Congress that: (1) the Child Care Development and Block Grant Act should be reauthorized to allow States greater flexibility to use their funds to strengthen child care; and (2) States should institute a child care voucher system to enable families on AFDC to purchase child care services, create Consumer Information Centers for providing information on eligible child care providers, and loosen their regulations to allow for reimbursement of certain provider costs.

Title III: The Work First Program - Amends SSA title IV to: (1) replace the current Job Opportunities and Basic Skills Training Program under part F with a new Work First Program that allows participating States to establish work programs similar to those operated by Riverside County, California and the State of Oregon; (2) add a new part G (Community Service Program); (3) include a work supplementation component under each such program that provides for subsidized private sector or State or local government jobs; (4) give States the option of having such programs; and (5) require States exercising such option to provide participants with the necessary case management services to ensure integrated benefits and services provided under such programs.

(Sec. 311) Amends IRC to provide for an increase in the minimum period of employment required to receive a targeted jobs tax credit.

Title IV: Family Responsibility And Improved Child Support Enforcement - Amends SSA title IV parts A and D (Child Support and Establishment of Paternity) to make specified changes with regard to AFDC recipient cooperation in establishing paternity of illegitimate children, locate services for enforcing child support orders, parenting services for new fathers, and distribution of child support proceeds.

(Sec. 411) Expresses the sense of the Congress that: (1) certain actions pursuant to a child support order, such as the denial of visitation rights, should be treated as irrelevant in actions brought to enforce other provisions of the order; (2) the Secretary should investigate accessing certain Federal data banks not linked to the Parent Locator Service; (3) the national network established under this title for handling locate requests should be used to access State records only through the agency administering the State part D plan; (4) social services should be provided in hospitals to women whose pregnancy results from rape or incest; and (5) States should implement methods for verifying locate information and develop programs like the State of Wisconsin's program for noncustodial parents unable to meet support obligations.

(Sec. 421) Establishes the National Child Support Guidelines Commission to: (1) study and develop a national child support guideline if one proves advisable; and (2) submit a report on the study's results to the President and the Congress.

(Sec. 431) Requires the Secretary of the Treasury to establish a system for enabling child support information to be obtained at the workplace via W-4 form reporting by employees.

Amends IRC to require employers to: (1) deduct and withhold child support obligations from employee wages; (2) pay withholdings to the appropriate payee; and (3) include withheld obligations on the employee's W-2 form.

Makes various other specified changes to SSA title IV part D involving: (1) State procedures for comparing information in the national registry of child support orders (NR) established under this title with information obtained above from W-4 form reporting, and for imposing monetary penalties on employees who fail to report support obligations; (2) development of uniform withholding orders; (3) garnishment of certain Federal benefits and seizure of lottery winnings and other payouts to satisfy support arrearages; (4) State reporting of support obligations to credit bureaus; and (5) liability of grandparents for financial support of children of their minor children.

Title V: Teen Pregnancy and Family Stability - Amends SSA title IV part A (AFDC) with respect to Federal and State roles in reducing teenage pregnancy and promoting family stability; by: (1) requiring States to deny AFDC for additional children (except those born as a result of rape or incest) of AFDC families unless the State plan explicitly provides for such additional children; and (2) providing for unmarried minors who are pregnant or who have children to live under adult supervision in order to receive AFDC.

(Sec. 503) Directs the Secretary of Education to establish a task force to reduce teenage pregnancy.

(Sec. 511) Expresses the sense of the Congress that: (1) children should be educated about the risks of early parenthood; (2) reproductive family planning and education should be made available to potential parents; and (3) States should use SSA title XX (Block Grants to States for Social Services) funds to provide comprehensive services to high-risk youth and work with schools for early identification and referral of such children.

Title VI: Program Simplification - Amends SSA titles IV part A and XI, as well as the Food Stamp Act of 1977, to give States increased flexibility in providing AFDC benefits (including restoring those wrongfully terminated) through, among other means, use of electronic benefit transfers, quicker action on waiver requests, and coordination with food stamp rules.

(Sec. 631) Expresses the support of the Congress for certain efforts by the Social Security Administration to reduce fraud and abuse in the Supplemental Security Income (SSI) Program under SSA title XVI.

(Sec. 632) Requires the Secretary to study and report to the Congress on the feasibility of issuing a single counterfeit-resistant ID card to replace the current social security card and any health security card issued under health reform legislation.

Title VII: Financing - Amends the SSA, the IRC, and the Food Stamp Act of 1977 to make certain aliens ineligible for AFDC, SSI, Medicaid, food stamps, and the earned income tax credit.

(Sec. 711) Sets forth special rules concerning aliens and general public assistance.

(Sec. 714) Authorizes appropriations for financial assistance to States for assistance to resident aliens. Specifies the annual allocation of such Federal financial assistance for each State and the District of Columbia through FY 1988.

(Sec. 721) Amends SSA title IV part A (AFDC) to revise: (1) the definition of "emergency assistance to needy families with children"; and (2) the limitation on State expenditures for such assistance.

(Sec. 731) Amends the National School Lunch Act to: (1) modify family and group day care home reimbursement provisions under the child and adult care food program; and (2) provide grants to States for making grants to family and day care homes.

Tax Fairness for Main Street Business Act of 1994 - States that the Congress: (1) recognizes that some States will be adversely affected by provisions of this Act which deny immigrants certain public assistance; (2) pledges to help those States offset the potential cost shift; and (3) encourages States, in authorizing them below to require out-of-State companies to collect sales taxes on certain purchases, to use increased revenues resulting from such collections to offset such cost shift and design assistance programs addressing special needs of immigrants.

(Sec. 744) Authorizes a State or local jurisdiction to require certain out-of-State businesses to collect sales taxes on tangible personal property sold to residents of the State or local jurisdiction.

(Sec. 745) Provides an in-lieu fee rate where local taxes are not uniform.

(Sec. 746) Prohibits a State from requiring out-of-State businesses to file reporting returns more than once every calendar quarter.

(Sec. 749) Requires a State to establish toll-free information services to provide such businesses with necessary forms and instructions.

Title VIII: Effective Date - Sets forth the effective date of this Act.