Work First and Personal Responsibility Act of 1996

TABLE OF CONTENTS:

Title I: Work-Based Assistance

Subtitle A: Temporary Employment Assistance

Subtitle B: Make Work Pay

Subtitle C: Work First

Subtitle D: Pregnancy and Family Stability

Title II: Child Support Enforcement

Subtitle A: Eligibility for Services; Distribution of

Payments

Subtitle B: Locate and Case Tracking

Subtitle C: Streamlining and Uniformity of Procedures

Subtitle D: Paternity Establishment

Subtitle E: Program Administration and Funding

Subtitle F: Establishment and Modification of Support

Orders

Subtitle G: Enforcement of Support Orders

Subtitle H: Medical Support

Subtitle I: Enhancing Responsibility and Opportunity

for Non-Residential Parents

Subtitle J: Effect of Enactment

Title III: Food Assistance

Subtitle A: Food Stamps

Subtitle B: Child Nutrition

Title IV: Treatment of Aliens

Title V: Supplemental Security Income Reforms

Title VI: Social Services Block Grants

Work First and Personal Responsibility Act of 1996 - Title I: Work-Based Assistance - Subtitle A: Temporary Employment Assistance - Replaces the current Aid to Families with Dependent Children (AFDC) and Job Opportunities and Basic Skills Training (JOBS) programs under parts A and F, respectively, of title IV of the Social Security Act (SSA) with the newly created Federal Temporary Employment Assistance (TEA) and Work First (WF) welfare programs. Authorizes appropriations.

(Sec. 101) Outlines TEA and WF program components, providing for Federal payments to States with approved TEA and WF plans for establishing flexible statewide work-based assistance programs in the State for the following purposes.

Provides under TEA for furnishing certain time-limited, conditional benefits based on work to certain eligible families with needy children (or, at the State's option, any expectant family) entering into a personal responsibility agreement with the State setting forth their particular obligations (such as cooperating with the State in the establishment of the paternity of any child born out-of-wedlock for whom assistance is claimed) in order to receive assistance and services under the TEA plan for caring for their children and securing, preferably, a full-time unsubsidized paid job in the private sector, or public sector or volunteer work if necessary, through the WF program. Grants exemptions from such time-limited benefit provision in certain hardship situations. Provides for certain sanctions for refusing to look for work, accept a bona fide offer of employment, or otherwise comply with the personal responsibility agreement.

Provides under WF, among other things, for connecting appropriate TEA recipients with the private sector labor market and providing them with the education, training, and other services necessary for them to obtain private sector employment.

Gives States the option of: (1) denying TEA to families having additional children while on TEA; and (2) requiring family members to undergo appropriate substance abuse treatment in order to receive TEA.

Denies TEA for fugitive felons and probation and parole violators and for ten years for persons found to have fraudulently misrepresented residence in order to obtain assistance in two or more States. Provides for the exchange of certain TEA program information with law enforcement agencies under specified conditions.

Lists certain requirements for State TEA plans concerning other programs, including that the State plan require that the State have in effect: (1) a plan approved under SSA title IV part D (Child Support and Establishment of Paternity) together with a child support program in substantial compliance with such plan; as well as (2) plans under SSA title IV parts B (Child-Welfare Services) and E (Foster Care and Adoption Assistance) operating in substantial compliance with the requirements of such parts.

Requires State TEA plans to: (1) describe the State efforts to promote family preservation and stability; and (2) require the State to have in effect a plan under its Child Care Development Block Grant Act of 1990 program.

Sets forth rules for the provision of services to Native Americans and refugees.

Outlines program audit, quality assurance, data collection, and reporting requirements, as well as certain study requirements.

Directs the Secretary of Health and Human Services (HHS) to conduct research on alternative approaches to operating welfare programs and related issues, such as strategies for moving welfare recipients into the workforce quickly, reducing teen pregnancies and out-of-wedlock births, and providing adequate child care. Authorizes the Secretary to implement and evaluate a variety of innovative demonstrations related to child support and other children's issues with respect to TEA clients under State plans.

Directs the Bureau of the Census to expand the Survey of Income and Program Participation as necessary to obtain such information as will enable interested persons to evaluate the impact of the changes made by this title on a random national sample of recipients of assistance under State programs funded under this title and other appropriate low-income families. Provides funding for such study.

Makes the HHS Assistant Secretary for Family Support the official responsible for administering these new programs.

(Sec. 103) Amends the Internal Revenue Code (IRC) to provide for the collection of overpayments under the TEA program from Federal tax refunds.

(Sec. 104) Amends SSA title XI to revise the limitations on Federal payments under SSA title IV part A and other specified SSA programs to the Virgin Islands and Guam, and provide for their annual adjustment for inflation according to the consumer price index.

Subtitle B: Make Work Pay - Amends SSA titles XIX (Medicaid) and IV part A (TEA), as well as IRC and the Child Care and Development Block Grant Act of 1990, to make various specified changes with regard to certain program aspects, providing, among other changes, for: (1) a permanent extension of authority for transitional Medicaid benefits for former TEA recipients; and (2) notice of availability of the earned income tax credit to applicants and former recipients of TEA and Medicaid.

(Sec. 113) Amends IRC to require participating residents to receive advanced earned income payments from a responsible State agency pursuant to a State Advance Payment Program in lieu of receiving earned income advance amounts from an employer. Authorizes the Secretary of the Treasury to designate up to four State Advance Payment Demonstrations. Authorizes appropriations.

Subtitle C: Work First - Amends SSA title IV to replace the current JOBS program under part F with a new WF program under which each State that operates a TEA program shall establish a WF program for getting TEA recipients off cash assistance through the use of private placement companies, microenterprise initiatives, and other specified means including subsidized jobs. Allows participating States to establish one of two types of WF programs, with one type similar to the GAIN (welfare reform) Program operated by Riverside County, California, and the other type similar to the JOBS Plus (welfare reform) Program operated by the State of Oregon.

Adds a new part G (Workfare Program) (WP) under SSA title IV under which States establishing a WF program shall establish either a workfare program (with separate community service and subsidized job components) or a job placement voucher program under SSA title IV new part H (Job Placement Voucher Program) (JPVP) in order for TEA recipients eventually to secure full-time unsubsidized employment in the private sector.

Requires States to provide program participants with the necessary case management services to ensure integrated benefits and services provided under such programs.

Expresses the sense of the Congress that: (1) States should target individuals who have not attained 25 years of age for participation in WF programs; and (2) the Congress intends for State activities under the JOBS Plus Program to emphasize the use of the funds that would otherwise be used to provide individuals with TEA to subsidize their wages in temporary jobs.

(Sec. 124) Provides for certain increases in WF, WP, and JPVP funding amounts under specified circumstances.

Subtitle D: Pregnancy and Family Stability - Amends SSA title IV part A with respect to teenage pregnancy and promoting family stability to require generally certain adult supervised living arrangements for any individual under age 18 who has never married and who has a needy child in his or her care (or is pregnant and is eligible for TEA) in order for such individual to receive such assistance (where possible, from his or her parent, legal guardian, or other adult relative on such individual's behalf).

Requires completion of high school or other educational training for certain teenage parents required to participate in WF.

Gives States the option to provide additional specified incentives and penalties to encourage teen parents to complete high school and participate in parenting activities.

(Sec. 132) Amends SSA title XX (Block Grants to States for Social Services) to direct the HHS Secretary to establish a National Clearinghouse on Adolescent Pregnancy Prevention Programs for the collection and provision of programmatic information and technical assistance that relates to adolescent pregnancy prevention programs. Authorizes appropriations.

(Sec. 134) Allows States to use available Federal funds for the establishment, operation, and support of second chance group homes for custodial parents under age 18 (or age 19, at the option of the State) and their children.

Requires that the HHS Secretary, after appropriate consultations, submit recommendations to the Congress with regard to which Federal surplus properties may be used for the establishment of such second chance homes.

Title II: Child Support Enforcement - Subtitle A: Eligibility for Services; Distribution of Payments - Amends part D (Child Support and Establishment of Paternity) of SSA title IV to require State plans for child and spousal support to provide: (1) certain services relating to paternity establishment or enforcement of child support obligations; and (2) continuation of services for families ceasing to receive TEA.

(Sec. 202) Revises payment distribution guidelines for families receiving TEA and other assistance through State agencies.

(Sec. 203) Requires State plans to establish procedural guidelines for: (1) privacy safeguards regarding paternity and child support actions; and (2) notification to applicants or recipients of all proceedings and orders affecting child support obligations.

Subtitle B: Locate and Case Tracking - Mandates that single statewide automated data systems include a State case registry containing records of: (1) each case in which services are provided by the State agency; and (2) each support order established on or after a specified date. Permits the linking of local registries.

(Sec. 212) Requires State plans to include a centralized, automated unit for the collection and disbursement of support payments. Permits the unit to be established by linking local disbursement units through an automated information network if the Secretary agrees that it will not cost more or take more time to establish or operate than a centralized system.

(Sec. 213) Requires State plans to: (1) provide for a State-operated and automated State Directory of New Hires containing prescribed information furnished by employers on new personnel; and (2) transmit such information to the National Directory of New Hires established under this title.

(Sec. 214) Requires States to have statutorily prescribed procedures: (1) for mandatory income withholding for support payments subject to enforcement; and (2) under which wages of a person with a support obligation imposed by a child support order issued before October 1, 1996, shall become subject to withholding if arrearages occur, without the need for a judicial or administrative hearing. Revises the procedural guidelines for income withholding for child support enforcement.

(Sec. 215) Requires the States to have statutorily prescribed procedures to ensure that Federal and State agencies conducting income-withholding activities have access to State locator systems for motor vehicle or law enforcement purposes.

(Sec. 216) Revises the Federal Parent Locator Service to provide for additional information which may be transmitted to locate individuals and assets for purposes of: (1) establishing parentage; (2) establishing, setting the amount of, modifying, or enforcing child support obligations; and (3) enforcing child custody or visitation orders.

Directs the HHS Secretary to establish in the Federal Parent Locator Service an automated Federal Case Registry of Child Support Orders and an automated National Directory of New Hires.

(Sec. 217) Requires States to have statutorily prescribed procedures requiring recordation on such documents of the Social Security number of: (1) specified driver's, marriage, and occupational, and professional license applicants; (2) individuals subject to certain domestic relations orders; and (3) deceased persons (on death records).

Subtitle C: Streamlining and Uniformity of Procedures - Requires each State to have the Uniform Interstate Family Support Act in effect as of January 1, 1998. Amends the Federal judicial code to revise the procedures for the court to apply when determining which State order to recognize for purposes of continuing, exclusive jurisdiction and enforcement for child support orders.

(Sec. 223) Requires the States to have statutorily prescribed procedures requiring: (1) expedited administrative enforcement in interstate cases and support orders; and (2) expedited administrative and judicial procedures for establishing paternity and enforcing support obligations.

Subtitle D: Paternity Establishment - Revises the guidelines for State laws governing paternity establishment. Requires State procedures under which the name of the father shall be included on the birth certificate only: (1) if the mother and father have signed a voluntary acknowledgment of paternity; or (2) pursuant to a judicial or administrative order.

(Sec. 233) Requires State plans for child and spousal support to provide that the State agency administering the plan will make a determination as to whether a program recipient is cooperating in good faith with State efforts to establish paternity and secure support.

Subtitle E: Program Administration and Funding - Directs the Secretary to develop a new incentive system to replace the current one. Revises the guidelines for Federal performance-based incentive payments to the States for effective child support enforcement programs.

(Sec. 242) Requires a State plan for child and spousal support to include prescribed procedures for State reviews and audits. Revises the guidelines for Federal evaluation and audit of State programs governing paternity, child and spousal support, and parent location.

(Sec. 244) Revises the automated data processing requirements for State plans to mandate a single statewide automated data processing and information retrieval system which can perform specified tasks.

(Sec. 245) Makes funds available to the Secretary for: (1) training of Federal and State staff, research and demonstration programs, and special projects of regional and national significance; and (2) operation of the Federal Parent Locator Service.

Subtitle F: Establishment and Modification of Support Orders - Revises the requirements for State plan procedures for the review and adjustment of support orders.

(Sec. 252) Amends the Fair Credit Reporting Act to authorize a consumer agency to furnish a consumer report: (1) in response to a request by a governmental child support enforcement agency; or (2) to the State administrative agency which sets child support awards.

(Sec. 253) Shields a depository institution from Federal or State liability for disclosing any financial record of an individual to a State child support enforcement agency. Prohibits such agency from disclosing such a financial record except for the purpose of, and to the extent necessary in, establishing, modifying, or enforcing a child support obligation. Sets forth civil penalties for any person knowingly or negligently violating such prohibition.

Subtitle G: Enforcement of Support Orders - Amends Internal Revenue Code procedural guidelines for the collection of arrearages to provide that no additional fee may be assessed for adjustments to a previously certified amount.

(Sec. 262) Amends part D (Child Support and Establishment of Paternity) of SSA title IV to revise procedural guidelines for: (1) consent by the United States to income withholding, garnishment, and similar proceedings for enforcement of child support and alimony obligations of current and retired Federal employees; and (2) enforcement of child support obligations of members of the Armed Forces.

(Sec. 264) Requires a State plan for child and spousal support to have in effect the Uniform Fraudulent Conveyance Act of 1981, the Uniform Fraudulent Transfer Act of 1984, or a similar law, as well as certain procedures governing the voiding of fraudulent transfers by a child support debtor.

(Sec. 265) Requires a State plan for child and spousal support to include specified procedures: (1) to ensure that persons owing past-due support work or participate in work activities the court deems appropriate; (2) to report to credit bureaus the name of the parent in arrears for child support; (3) to provide for liens against real and personal property for the support arrearages of a non-custodial parent; and (4) to implement the restriction of driver's, professional, occupational, and recreational licenses of individuals owing support arrearages.

(Sec. 270) Requires the Secretary of State to deny, revoke, or limit a passport upon certification of nonpayment of child support.

(Sec. 271) Authorizes the Secretary of State to negotiate reciprocal agreements with foreign nations: (1) regarding international enforcement of child support obligations; and (2) designating the Department of Health and Human Services as the central authority for such enforcement.

(Sec. 272) Requires States to have statutorily prescribed procedures under which a State agency shall enter agreements with financial institutions doing business within the State to develop and operate a data match system to provide identifying information for each absent parent targeted by the State who maintains an account at the institution, and to encumber or surrender such parent's assets at the institution pursuant to a lien or levy.

(Sec. 273) Requires States to have statutorily prescribed procedures under which child support orders relating to the child of minor parents, where the custodial parents are receiving assistance, are enforceable against the child's paternal or maternal grandparents.

(Sec. 274) Amends Federal bankruptcy law and the Social Security Act to declare a debt for child support nondischargeable in bankruptcy.

Subtitle H: Medical Support - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to include within the definition of medical child support order an order issued through a State administrative process.

(Sec. 277) Amends part D of SSA title IV to mandate statutorily prescribed procedures under which all enforced child support orders shall include a provision for the health care coverage of the child.

Subtitle I: Enhancing Responsibility and Opportunity for Non-Residential Parents - Amends part D of SSA title IV to prescribe guidelines under which the Administration for Children and Families shall make grants to enable States to establish and administer access and visitation programs to facilitate absent parents' access to their children.

Subtitle J: Effect of Enactment - Sets forth effective dates and conforming amendments.

Title III: Food Assistance - Subtitle A: Food Stamps - Food Stamp Act Amendments of 1996 - Amends the Food Stamp Act of 1977 to repeal the current exclusion and include in an eligible household children under age 22 who are themselves parents living with their children or married and living with their spouses.

(Sec. 312) Revises the formula for annual adjustment of the cost of the diet in the thrifty food plan.

(Sec. 313) Lowers from 21 to 18 the age of a child whose income is excluded from calculation of household income.

(Sec. 314) Replaces the current exclusion from household income of governmental energy assistance payments (thus including them in such income) with exclusion of a one-time payment or allowance for weatherization or emergency repair or replacement of an unsafe or inoperative furnace or other heating or cooling device.

(Sec. 315) Revises the standard deduction from household income, applying it to all households, but in different specified amounts for the 48 contiguous States and the District of Columbia, Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

(Sec. 316) Allows a State agency to make a standard utility allowance mandatory for all households with qualifying utility costs if it develops certain cost standards which will not result in increased program costs.

(Sec. 317) Revises the indexation of the vehicle asset limitation.

(Sec. 318) Terminates the exclusion from household income (thus including) third-party vendor payments for transitional housing.

(Sec. 319) Revises eligibility disqualification penalties for noncompliance with work requirements.

(Sec. 320) Authorizes States to require cooperation with child support enforcement agencies as a criterion for food stamp eligibility.

(Sec. 321) Mandates a ten-year ineligibility for any individual found to have made a fraudulent statement or representation as to identity or place of residence in order to receive multiple food stamp benefits simultaneously.

(Sec. 322) Specifies additional work requirements for able-bodied food stamp recipients.

(Sec. 323) Authorizes State food stamp disqualification of a household member also disqualified from another means-tested public assistance program for failure to perform an action required for such program under Federal, State, or local law.

(Sec. 324) Repeals annual minimum benefit adjustments and, with respect to the prorating of benefits for the first month after a period of nonparticipation following the end of a previous certification, the limitation to such periods of more than one month.

(Sec. 326) Prohibits an increased food stamp allotment for any period for which a household's benefits are reduced under a Federal, State, or local law relating to a welfare or public assistance program because of a penalty or for failure to perform an action required under the law or program.

(Sec. 327) Declares that State agencies, in determining household eligibility, shall not be required to use certain income and eligibility or immigration status verification systems established under the Social Security Act.

(Sec. 328) Revises requirements for the collection of overissuances of food stamp coupons.

(Sec. 329) Authorizes a State to elect to carry out (statewide or in a political subdivision) a Simplified Food Stamp Program, meeting specified requirements, for families receiving assistance under a State TEA program.

(Sec. 330) Reauthorizes appropriations for the food stamp program through FY 2002.

(Sec. 341) Treats electronic benefit transfer cards and personal identification (PIN) numbers as coupons.

(Sec. 344) Increases penalties for specified program violations.

(Sec. 345) Allows State agencies the option, with respect to the caretaker exemption from work requirements, to lower the age of the dependent involved from six years to one year if adequate child care is not available.

(Sec. 346) Revises requirements for employment and training programs.

(Sec. 347) Disqualifies fleeing felons and probation or parole violators from food stamp program participation.

(Sec. 348) Requires State agencies to implement electronic benefit transfer systems.

(Sec. 349) Requires State agencies to make certain information available, upon request, to Federal, State, or local law enforcement officers with respect to fleeing felons or probation or parole violators.

(Sec. 350) Increases from five days to seven the deadline for delivery of coupons after the date of household application. Repeals five-day delivery mandates with respect to homeless households and specified others.

(Sec. 361) Sets a 12-month maximum certification period, unless all adult household members are elderly or disabled, in which case it shall be 24 months. Requires State agency contact with each certified household at least once every 12 months.

(Sec. 362) Allows a State agency to combine allotments for expedited service households.

(Sec. 363) Revises: (1) the provision of allotments for households residing in drug or alcoholic treatment centers; and (2) requirements for the operation of food stamp offices.

(Sec. 365) Repeals the requirement for State employee training.

(Sec. 366) Permits household oral withdrawals of fair hearing requests.

(Sec. 371) Revises requirements for approval of retail food stores and wholesale food concerns to: (1) require the Secretary of Health and Human Services (HHS) to establish specific authorization periods for coupon or electronic benefit redemption; and (2) permit regulations to require such stores and concerns to authorize the Secretary to verify all relevant tax filings and obtain corroborating documentation from other sources.

(Sec. 373) Establishes a minimum six-month waiting period before disqualified stores and food concerns may reapply for program participation.

(Sec. 374) Requires HHS regulations providing for disqualification of retailers who: (1) intentionally submit falsified applications; or (2) are disqualified under the special supplemental nutrition program for women, infants, and children (WIC).

(Sec. 376) Makes the permanent disqualification of a store or concern effective as of receipt of the notice of disqualification. Shields the Secretary from liability for the value of any sales lost during the disqualification period should the disqualification be reversed through administrative or judicial review.

(Sec. 377) Provides for civil and criminal forfeitures for violations of the Food Stamp Act of 1977.

(Sec. 378) Amends the Social Security Act and the Internal Revenue Code to authorize the sharing of information provided by stores and concerns with State law enforcement and investigative officers and employees as well as with State WIC agencies.

Subtitle B: Child Nutrition - Amends the National School Lunch Act to set forth separate formulae for the reimbursement rates for two specified tiers of family or group day care homes. Provides for grants to States for such homes and State and Federal data sharing with their sponsoring organizations.

(Sec. 392) Revises requirements for annual adjustment of reimbursement rates.

(Sec. 393) Repeals the mandate and authority for grants for start-up and expansions costs.

(Sec. 394) Authorizes appropriations under the National School Lunch Act for FY 1997 through 2002.

(Sec. 395) Reduces from 12 percent to eight percent the minimum amount of food assistance that shall be in the form of commodity assistance, including cash in lieu of commodities and procurement administrative costs.

Title IV: Treatment of Aliens - Amends the Social Security Act, as amended by this Act, to restrict TEA, supplemental security income (SSI), and Medicaid eligibility to U.S. citizens or nationals and legal immigrants (qualified aliens).

(Sec. 402) Deems the income of a sponsor to be available to a qualified alien, with specified exceptions, until naturalization.

(Sec. 403) Continues the liability of a qualified alien and sponsor for overissuances of TEA, SSI, and food stamp assistance beyond naturalization.

(Sec. 404) Amends the Immigration and Nationality Act to grant the Attorney General discretionary authority to admit an excludable alien who has received a guarantee of financial responsibility (affidavit of support) from a sponsor according to specified requirements.

Title V: Supplemental Security Income Reforms - Revises the disabled child eligibility rules under the SSA title XVI Supplemental Security Income (SSI) program to require marked and severe functional limitations in an eligible individual.

(Sec. 501) Directs the Commissioner of Social Security to discontinue the use of individualized functional assessments for children. Requires the Commissioner to redetermine the eligibility of any individual under age 18 who is eligible for SSI benefits based on a disability as of the date of the enactment of this Act, and whose eligibility for such benefits may terminate by reason of this title.

(Sec. 502) Requires the Commissioner to review, at least once every three years, the continued SSI eligibility 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 may improve (or, which is unlikely to improve, at the Commissioner's option). Requires a parent or guardian of a recipient whose case is so reviewed to present evidence demonstrating that the recipient has been receiving treatment, to the extent considered medically necessary and available, of the condition which was the basis for providing SSI benefits.

Provides that if an individual is eligible for SSI benefits by reason of disability for the month preceding the month in which the individual attains age 18, the Commissioner shall redetermine such eligibility: (1) during the one year period beginning on the individual's 18th birthday; and (2) by applying the criteria used in determining the initial eligibility for applicants who have attained age 18.

Outlines specific requirements governing: (1) continuing disability reviews for low birth weight babies; and (2) benefit payments through representative payees to dedicated savings accounts for specified purposes with respect to a child or an individual for whom such an account was established prior to his or her attainment of age 18.

(Sec. 504) Amends the SSI program to: (1) deny SSI by reason of disability to drug addicts and alcoholics; (2) deny SSI benefits for ten years to individuals found to have fraudulently misrepresented residence in order to obtain benefits simultaneously in two or more States; (3) deny SSI benefits for fugitive felons and probation and parole violators; (6) provide for exchange of certain SSI information with law enforcement agencies under specified conditions; (7) set forth rules governing the installment payment of large past-due SSI benefits; and (8) provide for a reduction in cash SSI benefits payable to institutionalized individuals whose medical costs are covered by private insurance.

Provides certain supplemental funding to specified State and Tribal programs funded under the Public Health Service Act for alcohol and substance abuse treatment.

(Sec. 507) Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to provide for an allowance under the discretionary spending limits for increased expenditures for continuing disability reviews and disability eligibility redeterminations, and for administrative expenses to implement the changes to the SSI program by this Act.

Amends the Congressional Budget and Impoundment Control Act of 1974 to provide for similar adjustments with respect to such reviews and eligibility redeterminations.

(Sec. 508) Provides for installment payment of large past-due SSI benefits.

(Sec. 509) Amends SSA title XI to provide for the recovery of SSI overpayments from social security benefits.

Title VI: Social Services Block Grants - Amends SSA title XX to provide for a reduction in funding under such title for block grants to States for social services.