WELFARE REFORM LAW - H.R. 3734 TITLE IX - MISCELLANEOUS TITLE IX--MISCELLANEOUS SEC. 901. APPROPRIATION BY STATE LEGISLATURES. (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. SEC. 903. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO FUGITIVE FELONS AND PROBATION AND PAROLE VIOLATORS. (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-- `(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. (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 (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 ELECTRONIC BENEFIT TRANSFER SYSTEMS. 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 point-of-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-- (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: `(2) AMOUNTS- The earned income amount and the phaseout amount shall be determined as follows: ------------------------------------------------------------------- [ Headers for tabular data... ] 1) In the case of an eligible individual with: 2) The earned income amount is: 3) The phaseout amount is: ------------------------------------------------------------------- 1) 1 qualifying child 2) $6,330 3) $11,610 1) 2 or more qualifying children 2) $8,890 3) $11,610 1) No qualifying children 2) $4,220 3) $ 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 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. (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 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 Commission for Accreditation of Christian Science Nursing Organizations/Facilities, Inc.' each place it appears. Speaker of the House of Representatives. Vice President of the United States and President of the Senate.