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[House Report 105-78]
[From the U.S. Government Publishing Office]

105th Congress                                             Rept. 105-78
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     Part 1
_______________________________________________________________________

 
            WELFARE REFORM TECHNICAL CORRECTIONS ACT OF 1997

                                _______
                                

                 April 28, 1997.--Ordered to be printed

_______________________________________________________________________

    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1048]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 1048) to make technical amendments relating to the 
Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
  I. Introduction....................................................35
          A. Purpose and Scope...................................    35
          B. Background and Need for Legislation.................    36
          C. Legislative History.................................    36
 II. Explanation of Provisions.......................................37
III. Vote of The Committee..........................................107
 IV. Budget Effects of The Bill.....................................108
          A. Committee Estimate of Budgetary Effects.............   108
          B. Statement Regarding New Budget Authority And Tax 
              Expenditures.......................................   108
          C. Cost Estimate Prepared by The Congressional Budget 
              Office.............................................   108
  V. Other Matters Required to Be Discussed Under The Rules of The 
     House..........................................................113
          A. Committee Oversight Findings And Recommendations....   113
          B. Summary of Findings And Recommendations of The 
              Government Reform And Oversight Committee..........   113
          C. Constitutional Authority Statement..................   113
 VI. Changes in Existing Laws Made by The Bill, as Reported.........113

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Welfare Reform Technical Corrections 
Act of 1997''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

    TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE TO NEEDY FAMILIES

Sec. 101. Amendment of the Social Security Act.
Sec. 102. Eligible States; State plan.
Sec. 103. Grants to States.
Sec. 104. Use of grants.
Sec. 105. Mandatory work requirements.
Sec. 106. Prohibitions; requirements.
Sec. 107. Penalties.
Sec. 108. Data collection and reporting.
Sec. 109. Direct funding and administration by Indian Tribes.
Sec. 110. Research, evaluations, and national studies.
Sec. 111. Report on data processing.
Sec. 112. Study on alternative outcomes measures.
Sec. 113. Limitation on payments to the territories.
Sec. 114. Conforming amendments to the Social Security Act.
Sec. 115. Other conforming amendments.
Sec. 116. Modifications to the job opportunities for certain low-income 
individuals program.
Sec. 117. Denial of assistance and benefits for drug-related 
convictions.
Sec. 118. Transition rule.
Sec. 119. Effective dates.

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

            Subtitle A--Conforming and Technical Amendments

Sec. 201. Conforming and technical amendments relating to eligibility 
restrictions.
Sec. 202. Conforming and technical amendments relating to benefits for 
disabled children.
Sec. 203. Additional technical amendments to title II.
Sec. 204. Additional technical amendments to title XVI.
Sec. 205. Additional technical amendments relating to titles II and 
XVI.
Sec. 206. Effective dates.

                   Subtitle B--Additional Amendments

Sec. 211. Technical amendments relating to drug addicts and alcoholics.
Sec. 212. Extension of disability insurance program demonstration 
project authority.
Sec. 213. Perfecting amendments related to withholding from social 
security benefits.
Sec. 214. Treatment of prisoners.
Sec. 215. Social Security Advisory Board personnel.

                        TITLE III--CHILD SUPPORT

Sec. 301. State obligation to provide child support enforcement 
services.
Sec. 302. Distribution of collected support.
Sec. 303. Civil penalties relating to State directory of new hires.
Sec. 304. Federal Parent Locator Service.
Sec. 305. Access to registry data for research purposes.
Sec. 306. Collection and use of social security numbers for use in 
child support enforcement.
Sec. 307. Adoption of uniform State laws.
Sec. 308. State laws providing expedited procedures.
Sec. 309. Voluntary paternity acknowledgment.
Sec. 310. Calculation of paternity establishment percentage.
Sec. 311. Means available for provision of technical assistance and 
operation of Federal Parent Locator Service.
Sec. 312. Authority to collect support from Federal employees.
Sec. 313. Definition of support order.
Sec. 314. State law authorizing suspension of licenses.
Sec. 315. International support enforcement.
Sec. 316. Child support enforcement for Indian Tribes.
Sec. 317. Continuation of rules for distribution of support in the case 
of a title IV-E child.
Sec. 318. Good cause in foster care and food stamp cases.
Sec. 319. Date of collection of support.
Sec. 320. Administrative enforcement in interstate cases.
Sec. 321. Work orders for arrearages.
Sec. 322. Additional technical State plan amendments.
Sec. 323. Federal Case Registry of Child Support Orders.
Sec. 324. Full faith and credit for child support orders.
Sec. 325. Development costs of automated systems.
Sec. 326. Additional technical amendments.
Sec. 327. Effective date.

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

     Subtitle A--Eligibility for Federal, State, and Local Benefits

Sec. 401. Alien eligibility for Federal benefits: limited application 
to medicare and benefits under the Railroad Retirement Act.
Sec. 402. Exceptions to benefit limitations: corrections to reference 
concerning aliens whose deportation is withheld.
Sec. 403. Veterans exception: application of minimum active duty 
service requirement; extension to unremarried surviving spouse; 
expanded definition of veteran.
Sec. 404. Correction of reference concerning Cuban and Haitian 
entrants.
Sec. 405. Notification concerning aliens not lawfully present: 
correction of terminology.
Sec. 406. Freely associated states: contracts and licenses.
Sec. 407. Congressional statement regarding benefits for Hmong and 
other highland Lao veterans.

                     Subtitle B--General Provisions

Sec. 411. Determination of treatment of battered aliens as qualified 
aliens; inclusion of alien child of battered parent as qualified alien.
Sec. 412. Verification of eligibility for benefits.
Sec. 413. Qualifying quarters: disclosure of quarters of coverage 
information; correction to assure that crediting applies to all 
quarters earned by parents before child is 18.
Sec. 414. Statutory construction: benefit eligibility limitations 
applicable only with respect to aliens present in United States.

Subtitle C--Miscellaneous Clerical and Technical Amendments; Effective 
                                  Date

Sec. 421. Correcting miscellaneous clerical and technical errors.
Sec. 422. Effective date.

                       TITLE V--CHILD PROTECTION

Sec. 501. Conforming and technical amendments relating to child 
protection.
Sec. 502. Additional technical amendments relating to child protection.
Sec. 503. Effective date.

                          TITLE VI--CHILD CARE

Sec. 601. Conforming and technical amendments relating to child care.
Sec. 602. Additional conforming and technical amendments.
Sec. 603. Repeals.
Sec. 604. Effective dates.

    TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE TO NEEDY FAMILIES

SEC. 101. AMENDMENT OF THE SOCIAL SECURITY ACT.

  Except as otherwise expressly provided, wherever 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 Social Security Act, and 
if the section or other provision is of part A of title IV of such Act, 
the reference shall be considered to be made to the section or other 
provision as amended by section 103, and as in effect pursuant to 
section 116, of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996.

SEC. 102. ELIGIBLE STATES; STATE PLAN.

  (a) Later Deadline for Submission of State Plans.--Section 402(a) (42 
U.S.C. 602(a)) is amended by striking ``2-year period immediately 
preceding'' and inserting ``27-month period ending with the close of 
the 1st quarter of''.
  (b) Clarification of Scope of Work Provisions.--Section 
402(a)(1)(A)(ii) (42 U.S.C. 602(a)(1)(A)(ii)) is amended by inserting 
``, consistent with section 407(e)(2)'' before the period.
  (c) Correction of Cross-Reference.--Section 402(a)(1)(A)(v) (42 
U.S.C. 602(a)(1)(A)(v)) is amended by striking ``403(a)(2)(B)'' and 
inserting ``403(a)(2)(C)(iii)''.
  (d) Notification of Plan Amendments.--Section 402 (42 U.S.C. 602) is 
amended--
          (1) by redesignating subsection (b) as subsection (c) and 
        inserting after subsection (a) the following:
  ``(b) Plan Amendments.--Within 30 days after a State amends a plan 
submitted pursuant to subsection (a), the State shall notify the 
Secretary of the amendment.''; and
          (2) in subsection (c) (as so redesignated), by inserting ``or 
        plan amendment'' after ``plan''.

SEC. 103. GRANTS TO STATES.

  (a) Bonus for Decrease in Illegitimacy Modified To Take Account of 
Certain Territories.--
          (1) In general.--Section 403(a)(2)(B) (42 U.S.C. 
        603(a)(2)(B)) is amended to read as follows:
                  ``(B) Amount of grant.--
                          ``(i) In general.--If, for a bonus year, none 
                        of the eligible States is Guam, the Virgin 
                        Islands, or American Samoa, then the amount of 
                        the grant shall be--
                                  ``(I) $20,000,000 if there are 5 
                                eligible States; or
                                  ``(II) $25,000,000 if there are fewer 
                                than 5 eligible States.
                          ``(ii) Amount if certain territories are 
                        eligible.--If, for a bonus year, Guam, the 
                        Virgin Islands, or American Samoa is an 
                        eligible State, then the amount of the grant 
                        shall be--
                                  ``(I) in the case of such a 
                                territory, 25 percent of the mandatory 
                                ceiling amount (as defined in section 
                                1108(c)(4)) with respect to the 
                                territory; and
                                  ``(II) in the case of a State that is 
                                not such a territory--
                                          ``(aa) if there are 5 
                                        eligible States other than such 
                                        territories, $20,000,000, minus 
                                        \1/5\ of the total amount of 
                                        the grants payable under this 
                                        paragraph to such territories 
                                        for the bonus year; or
                                          ``(bb) if there are fewer 
                                        than 5 such eligible States, 
                                        $25,000,000, or such lesser 
                                        amount as may be necessary to 
                                        ensure that the total amount of 
                                        grants payable under this 
                                        paragraph for the bonus year 
                                        does not exceed 
                                        $100,000,000.''.
          (2) Certain territories to be ignored in ranking other 
        states.--Section 403(a)(2)(C)(i)(I)(aa) (42 U.S.C. 
        603(a)(2)(C)(i)(I)(aa)) is amended by adding at the end the 
        following: ``In the case of a State that is not a territory 
        specified in subparagraph (B), the comparative magnitude of the 
        decrease for the State shall be determined without regard to 
        the magnitude of the corresponding decrease for any such 
        territory.''.
  (b) Computation of Bonus Based on Ratios of Out-of-Wedlock Births to 
All Births Instead of Numbers of Out-of-Wedlock Births.--Section 
403(a)(2) (42 U.S.C. 603(a)(2)) is amended--
          (1) in the paragraph heading, by inserting ``ratio'' before 
        the period;
          (2) in subparagraph (A), by striking all that follows ``bonus 
        year'' and inserting a period; and
          (3) in subparagraph (C)--
                  (A) in clause (i)--
                          (i) in subclause (I)(aa)--
                                  (I) by striking ``number of out-of-
                                wedlock births that occurred in the 
                                State during'' and inserting 
                                ``illegitimacy ratio of the State 
                                for''; and
                                  (II) by striking ``number of such 
                                births that occurred during'' and 
                                inserting ``illegitimacy ratio of the 
                                State for''; and
                          (ii) in subclause (II)(aa)--
                                  (I) by striking ``number of out-of-
                                wedlock births that occurred in'' each 
                                place such term appears and inserting 
                                ``illegitimacy ratio of''; and
                                  (II) by striking ``calculate the 
                                number of out-of-wedlock births'' and 
                                inserting ``calculate the illegitimacy 
                                ratio''; and
                  (B) by adding at the end the following:
                          ``(iii) Illegitimacy ratio.--The term 
                        `illegitimacy ratio' means, with respect to a 
                        State and a period--
                                  ``(I) the number of out-of-wedlock 
                                births to mothers residing in the State 
                                that occurred during the period; 
                                divided by
                                  ``(II) the number of births to 
                                mothers residing in the State that 
                                occurred during the period.''.
  (c) Use of Calendar Year Data Instead of Fiscal Year Data in 
Calculating Bonus for Decrease in Illegitimacy Ratio.--Section 
403(a)(2)(C) (42 U.S.C. 603(a)(2)(C)) is amended--
          (1) in clause (i)--
                  (A) in subclause (I)(bb)--
                          (i) by striking ``the fiscal year'' and 
                        inserting ``the calendar year for which the 
                        most recent data are available''; and
                          (ii) by striking ``fiscal year 1995'' and 
                        inserting ``calendar year 1995'';
                  (B) in subclause (II), by striking ``fiscal'' each 
                place such term appears and inserting ``calendar''; and
          (2) in clause (ii), by striking ``fiscal years'' and 
        inserting ``calendar years''.
  (d) Correction of Heading.--Section 403(a)(3)(C)(ii) (42 U.S.C. 
603(a)(3)(C)(ii)) is amended in the heading by striking ``1997'' and 
inserting ``1998''.
  (e) Clarification of Contingency Fund Provision.--Section 403(b) (42 
U.S.C. 603(b)) is amended--
          (1) in paragraph (6), by striking ``(5)'' and inserting 
        ``(4)'';
          (2) by striking paragraph (4) and redesignating paragraphs 
        (5) and (6) as paragraphs (4) and (5), respectively; and
          (3) by inserting after paragraph (5) the following:
          ``(6) Annual reconciliation.--
                  ``(A) In general.--Notwithstanding paragraph (3), if 
                the Secretary makes a payment to a State under this 
                subsection in a fiscal year, then the State shall remit 
                to the Secretary, within 1 year after the end of the 
                first subsequent period of 3 consecutive months for 
                which the State is not a needy State, an amount equal 
                to the amount (if any) by which--
                          ``(i) the total amount paid to the State 
                        under paragraph (3) of this subsection in the 
                        fiscal year; exceeds
                          ``(ii) the product of--
                                  ``(I) the Federal medical assistance 
                                percentage for the State (as defined in 
                                section 1905(b), as such section was in 
                                effect on September 30, 1995);
                                  ``(II) the State's reimbursable 
                                expenditures for the fiscal year; and
                                  ``(III) \1/12\ times the number of 
                                months during the fiscal year for which 
                                the Secretary made a payment to the 
                                State under such paragraph (3).
                  ``(B) Definitions.--As used in subparagraph (A):
                          ``(i) Reimbursable expenditures.--The term 
                        `reimbursable expenditures' means, with respect 
                        to a State and a fiscal year, the amount (if 
                        any) by which--
                                  ``(I) countable State expenditures 
                                for the fiscal year; exceeds
                                  ``(II) historic State expenditures 
                                (as defined in section 
                                409(a)(7)(B)(iii)), excluding any 
                                amount expended by the State for child 
                                care under subsection (g) or (i) of 
                                section 402 (as in effect during fiscal 
                                year 1994) for fiscal year 1994.
                          ``(ii) Countable state expenditures.--The 
                        term `countable expenditures' means, with 
                        respect to a State and a fiscal year--
                                  ``(I) the qualified State 
                                expenditures (as defined in section 
                                409(a)(7)(B)(i) (other than the 
                                expenditures described in subclause 
                                (I)(bb) of such section)) under the 
                                State program funded under this part 
                                for the fiscal year; plus
                                  ``(II) any amount paid to the State 
                                under paragraph (3) during the fiscal 
                                year that is expended by the State 
                                under the State program funded under 
                                this part.''.
  (f) Administration of Contingency Fund Transferred to the Secretary 
of HHS.--Section 403(b)(7) (42 U.S.C. 603(b)(7)) is amended to read as 
follows:
          ``(7) State defined.--As used in this subsection, the term 
        `State' means each of the 50 States and the District of 
        Columbia.''.

SEC. 104. USE OF GRANTS.

   Section 404(a)(2) (42 U.S.C. 604(a)(2)) is amended by inserting ``, 
or (at the option of the State) August 21, 1996'' before the period.

SEC. 105. MANDATORY WORK REQUIREMENTS.

  (a) Family With a Disabled Parent Not Treated as a 2-Parent Family.--
Section 407(b)(2) (42 U.S.C. 607(b)(2)) is amended by adding at the end 
the following:
                  ``(C) Family with a disabled parent not treated as a 
                2-parent family.--A family that includes a disabled 
                parent shall not be considered a 2-parent family for 
                purposes of subsections (a) and (b) of this section.''.
  (b) Correction of Heading.--Section 407(b)(3) (42 U.S.C. 607(b)(3)) 
is amended in the heading by inserting ``and not resulting from changes 
in state eligibility criteria'' before the period.
  (c) State Option To Include Individuals Receiving Assistance Under a 
Tribal Work Program in Participation Rate Calculation.--Section 
407(b)(4) (42 U.S.C. 607(b)(4)) is amended--
          (1) in the heading, by inserting ``or tribal work program'' 
        before the period; and
          (2) by inserting ``or under a tribal work program to which 
        funds are provided under this part'' before the period.
  (d) Sharing of 35-Hour Work Requirement Between Parents in 2-Parent 
Families.--Section 407(c)(1)(B) (42 U.S.C. 607(c)(1)(B)) is amended--
          (1) in clause (i)--
                  (A) by striking ``is'' and inserting ``and the other 
                parent in the family are''; and
                  (B) by inserting ``a total of'' before ``at least''; 
                and
          (2) in clause (ii)--
                  (A) by striking ``individual's spouse is'' and 
                inserting ``individual and the other parent in the 
                family are'';
                  (B) by inserting ``for a total of at least 55 hours 
                per week'' before ``during the month''; and
                  (C) by striking ``20'' and inserting ``50''.
  (e) Clarification of Effort Required in Work Activities.--Section 
407(c)(1)(B) (42 U.S.C. 607(c)(1)(B)) is amended by striking ``making 
progress'' each place such term appears and inserting 
``participating''.
  (f) Additional Condition Under Which 12 Weeks of Job Search May Count 
as Work.--Section 407(c)(2)(A)(i) (42 U.S.C. 607(c)(2)(A)(i)) is 
amended byinserting ``or the State is a needy State (within the meaning 
of section 403(b)(6))'' after ``United States''.
  (g) Caretaker Relative of Child Under Age 6 Deemed To Be Meeting Work 
Requirements if Engaged in Work for 20 Hours Per Week.--Section 
407(c)(2)(B) (42 U.S.C. 607(c)(2)(B)) is amended--
          (1) in the heading, by inserting ``or relative'' after 
        ``parent'' each place such term appears; and
          (2) by striking ``in a 1-parent family who is the parent'' 
        and inserting ``who is the only parent or caretaker relative in 
        the family''.
  (h) Extension to Married Teens of Rule That Receipt of Sufficient 
Education Is Enough To Meet Work Participation Requirements.--Section 
407(c)(2)(C) (42 U.S.C. 607(c)(2)(C)) is amended--
          (1) in the heading, by striking ``Teen head of household'' 
        and inserting ``Single teen head of household or married 
        teen''; and
          (2) by striking ``a single'' and inserting ``married or a''.
  (i) Clarification of Number of Hours of Participation in Education 
Directly Related to Employment That Are Required in Order for Single 
Teen Head of Household or Married Teen To Be Deemed To Be Engaged in 
Work.--Section 407(c)(2)(C)(ii) (42 U.S.C. 607(c)(2)(C)(ii)) is amended 
by striking ``at least'' and all that follows through ``subsection'' 
and inserting ``an average of at least 20 hours per week during the 
month''.
  (j) Clarification of Refusal To Work for Purposes of Work Penalties 
for Individuals.--Section 407(e)(2) (42 U.S.C. 607(e)(2)) is amended by 
striking ``work'' and inserting ``engage in work required in accordance 
with this section''.

SEC. 106. PROHIBITIONS; REQUIREMENTS.

  (a) Elimination of Redundant Language; Clarification of Home 
Residence Requirement.--Section 408(a)(1) (42 U.S.C. 608(a)(1)) is 
amended to read as follows:
          ``(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, unless 
        the family includes a minor child who resides with the family 
        (consistent with paragraph (10)) or a pregnant individual.''.
  (b) Clarification of Terminology.--Section 408(a)(3) (42 U.S.C. 
608(a)(3)) is amended--
          (1) by striking ``leaves'' the 1st, 3rd, and 4th places such 
        term appears and inserting ``ceases to receive assistance 
        under''; and
          (2) by striking ``the date the family leaves the program'' 
        the 2nd place such term appears and inserting ``such date''.
  (c) Elimination of Space.--Section 408(a)(5)(A)(ii) (42 U.S.C. 
608(a)(5)(A)(ii)) is amended by striking ``described.-- For'' and 
inserting ``described.--For''.
  (d) Corrections to 5-Year Limit on Assistance.--
          (1) Clarification of limitation on hardship exemption.--
        Section 408(a)(7)(C)(ii) (42 U.S.C. 608(a)(7)(C)(ii)) is 
        amended--
                  (A) by striking ``The number'' and inserting ``The 
                average monthly number''; and
                  (B) by inserting ``during the fiscal year or the 
                immediately preceding fiscal year (but not both), as 
                the State may elect'' before the period.
          (2) Residence exception made more uniform and easier to 
        administer.--Section 408(a)(7)(D) (42 U.S.C. 608(a)(7)(D)) is 
        amended to read as follows:
                  ``(D) Disregard of months of assistance received by 
                adult while living in indian country or an alaskan 
                native village with 50 percent unemployment.--
                          ``(i) In general.--In determining the number 
                        of months for which an adult has received 
                        assistance under a State or tribal program 
                        funded under this part, the State or tribe 
                        shall disregard any month during which the 
                        adult lived in Indian country or an Alaskan 
                        Native village if the most reliable data 
                        available with respect to the month (or a 
                        period including the month) indicate that at 
                        least 50 percent of the adults living in Indian 
                        country or in the village were not employed.
                          ``(ii) Indian country defined.--As used in 
                        clause (i), the term `Indian country' has the 
                        meaning given such term in section 1151 of 
                        title 18, United States Code.''.
  (e) Reinstatement of Deeming and Other Rules Applicable to Aliens Who 
Entered the United States Under Affidavits of Support Formerly Used.--
Section 408 (42 U.S.C. 608) is amended by striking subsection (d) and 
inserting the following:
  ``(d) Special Rules Relating to Treatment of Certain Aliens.--For 
special rules relating to the treatment of certain aliens, see title IV 
of the Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996.
  ``(e) Special Rules Relating to the Treatment of Non-213A Aliens.--
The following rules shall apply if a State elects to take the income or 
resources of any sponsor of a non-213A alien into account in 
determining whether the alien is eligible for assistance under the 
State program funded under this part, or in determining the amount or 
types of such assistance to be provided to the alien:
          ``(1) Deeming of sponsor's income and resources.--For a 
        period of 3 years after a non-213A alien enters the United 
        States:
                  ``(A) Income deeming rule.--The income of any sponsor 
                of the alien and of any spouse of the sponsor is deemed 
                to be income of the alien, to the extent that the total 
                amount of the income exceeds the sum of--
                          ``(i) the lesser of--
                                  ``(I) 20 percent of the total of any 
                                amounts received by the sponsor or any 
                                such spouse in the month as wages or 
                                salary or as net earnings from self-
                                employment, plus the full amount of any 
                                costs incurred by the sponsor and any 
                                such spouse in producing self-
                                employment income in such month; or
                                  ``(II) $175;
                          ``(ii) the cash needs standard established by 
                        the State for purposes of determining 
                        eligibility for assistance under the State 
                        program funded under this part for a family of 
                        the same size and composition as the sponsor 
                        and any other individuals living in the same 
                        household as the sponsor who are claimed by the 
                        sponsor as dependents for purposes of 
                        determining the sponsor's Federal personal 
                        income tax liability but whose needs are not 
                        taken into account in determining whether the 
                        sponsor's family has met the cash needs 
                        standard;
                          ``(iii) any amounts paid by the sponsor or 
                        any such spouse to individuals not living in 
                        the household who are claimed by the sponsor as 
                        dependents for purposes of determining the 
                        sponsor's Federal personal income tax 
                        liability; and
                          ``(iv) any payments of alimony or child 
                        support with respect to individuals not living 
                        in the household.
                  ``(B) Resource deeming rule.--The resources of a 
                sponsor of the alien and of any spouse of the sponsor 
                are deemed to be resources of the alien to the extent 
                that the aggregate value of the resources exceeds 
                $1,500.
                  ``(C) Sponsors of multiple non-213a aliens.--If a 
                person is a sponsor of 2 or more non-213A aliens who 
                are living in the same home, the income and resources 
                of the sponsor and any spouse of the sponsor that would 
                be deemed income and resources of any such alien under 
                subparagraph (A) shall be divided into a number of 
                equal shares equal to the number of such aliens, and 
                the State shall deem the income and resources of each 
                such alien to include 1 such share.
          ``(2) Ineligibility of non-213a aliens sponsored by agencies; 
        exception.--A non-213A alien whose sponsor is or was a public 
        or private agency shall be ineligible for assistance under a 
        State program funded under this part, during a period of 3 
        years after the alien enters the United States, unless the 
        State agency administering the program determines that the 
        sponsor either no longer exists or has become unable to meet 
        the alien's needs.
          ``(3) Information provisions.--
                  ``(A) Duties of non-213a aliens.--A non-213A alien, 
                as a condition of eligibility for assistance under a 
                State program funded under this part during the period 
                of 3 years after the alien enters the United States, 
                shall be required to provide to the State agency 
                administering the program--
                          ``(i) such information and documentation with 
                        respect to the alien's sponsor as may be 
                        necessary in order for the State agency to make 
                        any determination required under this 
                        subsection, and to obtain any cooperation from 
                        the sponsor necessary for any such 
                        determination; and
                          ``(ii) such information and documentation as 
                        the State agency may request and which the 
                        alien or the alien's sponsor provided in 
                        support of the alien's immigration application.
                  ``(B) Duties of federal agencies.--The Secretary 
                shall enter into agreements with the Secretary of State 
                and the Attorney General under which any information 
                available to them and required in order to make any 
                determination under this subsection will be provided by 
                them to the Secretary (who may, in turn, make the 
                information available, upon request, to a concerned 
                State agency).
          ``(4) Non-213a alien defined.--An alien is a non-213A alien 
        for purposes of this subsection if the affidavit of support or 
        similar agreement with respect to the alien that was executed 
        by the sponsor of the alien's entry into the United States was 
        executed other than pursuant to section 213A of the Immigration 
        and Nationality Act.
          ``(5) Inapplicability to alien minor sponsored by a parent.--
        This subsection shall not apply to an alien who is a minor 
        child if the sponsor of the alien or any spouse of the sponsor 
        is a parent of the alien.
          ``(6) Inapplicability to certain categories of aliens.--This 
        subsection shall not apply to an alien who is--
                  ``(A) admitted to the United States as a refugee 
                under section 207 of the Immigration and Nationality 
                Act;
                  ``(B) paroled into the United States under section 
                212(d)(5) of such Act for a period of at least 1 year; 
                or
                  ``(C) granted political asylum by the Attorney 
                General under section 208 of such Act.''.

SEC. 107. PENALTIES.

  (a) States Given More Time To File Quarterly Reports.--Section 
409(a)(2)(A) (42 U.S.C. 609(a)(2)(A)) is amended by striking ``1 
month'' and inserting ``45 days''.
  (b) Treatment of Support Payments Passed Through to Families as 
Qualified State Expenditures.--Section 409(a)(7)(B)(i)(I)(aa) (42 
U.S.C. 609(a)(7)(B)(i)(I)(aa)) is amended by inserting ``, including 
any amount collected by the State as support pursuant to a plan 
approved under part D, on behalf of a family receiving assistance under 
the State program funded under this part, that is distributed to the 
family under section 457(a)(1)(B) and disregarded in determining the 
eligibility of the family for, and the amount of, such assistance'' 
before the period.
  (c) Disregard of Expenditures Made To Replace Penalty Grant 
Reductions.--Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is 
amended by redesignating subclause (III) as subclause (IV) and by 
inserting after subclause (II) the following:
                                  ``(III) Exclusion of amounts expended 
                                to replace penalty grant reductions.--
                                Such term does not include any amount 
                                expended in order to comply with 
                                paragraph (12).''.
  (d) Treatment of Families of Certain Aliens as Eligible Families.--
Section 409(a)(7)(B)(i)(IV) (42 U.S.C. 609(a)(7)(B)(i)(IV)), as so 
redesignated by subsection (c) of this section, is amended--
          (1) by striking ``and families'' and inserting ``families''; 
        and
          (2) by striking ``Act or section 402'' and inserting ``Act, 
        and families of aliens lawfully present in the United States 
        that would be eligible for such assistance but for the 
        application of title IV''.
  (e) Elimination of Meaningless Language.--Section 409(a)(7)(B)(ii) 
(42 U.S.C. 609(a)(7)(B)(ii)) is amended by striking ``reduced (if 
appropriate) in accordance with subparagraph (C)(ii)''.
  (f) Clarification of Source of Data To Be Used in Determining 
Historic State Expenditures.--Section 409(a)(7)(B) (42 U.S.C. 
609(a)(7)(B)) is amended by adding at the end the following:
                          ``(v) Source of data.--In determining 
                        expenditures by a State for fiscal years 1994 
                        and 1995, the Secretary shall use information 
                        which was reported by the State on ACF Form 231 
                        or (in the case of expenditures under part F) 
                        ACF Form 331, available as of the dates 
                        specified in clauses (ii) and (iii) of section 
                        403(a)(1)(D).''.
  (g) Clarification of Expenditures To Be Excluded in Determining 
Historic State Expenditures.--Section 409(a)(7)(B)(iv) (42 U.S.C. 
609(a)(7)(B)(iv)) is amended--
          (1) in subclause (IV), by striking ``under Federal 
        programs'';
          (2) by striking subclause (III) and redesignating subclause 
        (IV) as subclause (III); and
          (3) in the 2nd sentence--
                  (A) by striking ``(IV)'' and inserting ``(III)'';
                  (B) by striking ``an amount equal to''; and
                  (C) by striking ``that equal'' and inserting ``that 
                equals''.
  (h) Conforming Title IV-A Penalties to Title IV-D Performance-Based 
Standards.--Section 409(a)(8) (42 U.S.C. 609(a)(8)) is amended to read 
as follows:
          ``(8) Noncompliance of state child support enforcement 
        program with requirements of part d.--
                  ``(A) In general.--If the Secretary finds, with 
                respect to a State's program under part D, in a fiscal 
                year beginning on or after October 1, 1997--
                          ``(i)(I) on the basis of data submitted by a 
                        State pursuant to section 454(15)(B), or on the 
                        basis of the results of a review conducted 
                        under section 452(a)(4), that the State program 
                        failed to achieve the paternity establishment 
                        percentages (as defined in section 452(g)(2)), 
                        or to meet other performance measures that may 
                        be established by the Secretary;
                          ``(II) on the basis of the results of an 
                        audit or audits conducted under section 
                        452(a)(4)(C)(i) that the State data submitted 
                        pursuant to section 454(15)(B) is incomplete or 
                        unreliable; or
                          ``(III) on the basis of the results of an 
                        audit or audits conducted under section 
                        452(a)(4)(C) that a State failed to 
                        substantially comply with 1 or more of the 
                        requirements of part D; and
                          ``(ii) that, with respect to the succeeding 
                        fiscal year--
                                  ``(I) the State failed to take 
                                sufficient corrective action to achieve 
                                the appropriate performance levels or 
                                compliance as described in subparagraph 
                                (A)(i); or
                                  ``(II) the data submitted by the 
                                State pursuant to section 454(15)(B) is 
                                incomplete or unreliable;
                the amounts otherwise payable to the State under this 
                part for quarters following the end of such succeeding 
                fiscal year, prior to quarters following the end of the 
                first quarter throughout which the State program has 
                achieved the paternity establishment percentages or 
                other performance measures as described in subparagraph 
                (A)(i)(I), or is in substantial compliance with 1 or 
                more of the requirements of part D as described in 
                subparagraph (A)(i)(III), as appropriate, shall be 
                reduced by the percentage specified in subparagraph 
                (B).
                  ``(B) Amount of reductions.--The reductions required 
                under subparagraph (A) shall be--
                          ``(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 
                        finding made pursuant to subparagraph (A); or
                          ``(iii) not less than 3 nor more than 5 
                        percent, if the finding is the 3rd or a 
                        subsequent consecutive such finding.
                  ``(C) Disregard of noncompliance which is of a 
                technical nature.--For purposes of this section and 
                section 452(a)(4), a State determined as a result of an 
                audit--
                          ``(i) to have failed to have substantially 
                        complied with 1 or more of the requirements of 
                        part D shall be determined to have achieved 
                        substantial compliance only if the Secretary 
                        determines that the extent of the noncompliance 
                        is of a technical nature which does not 
                        adversely affect the performance of the State's 
                        program under part D; or
                          ``(ii) to have submitted incomplete or 
                        unreliable data pursuant to section 454(15)(B) 
                        shall be determined to have submitted adequate 
                        data only if the Secretary determines that the 
                        extent of the incompleteness or unreliability 
                        of the data is of a technical nature which does 
                        not adversely affect the determination of the 
                        level of the State's paternity establishment 
                        percentages (as defined under section 
                        452(g)(2)) or other performance measures that 
                        may be established by the Secretary.''.
  (i) Correction of Reference to 5-Year Limit on Assistance.--Section 
409(a)(9) (42 U.S.C. 609(a)(9)) is amended by striking ``408(a)(1)(B)'' 
and inserting ``408(a)(7)''.
  (j) Correction of Errors in Penalty for Failure To Meet Maintenance 
of Effort Requirement Applicable to the Contingency Fund.--Section 
409(a)(10) (42 U.S.C. 609(a)(10)) is amended--
          (1) by striking ``the expenditures under the State program 
        funded under this part for the fiscal year (excluding any 
        amounts made available by the Federal Government)'' and 
        inserting ``the qualified State expenditures (as defined in 
        paragraph (7)(B)(i) (other than the expenditures described in 
        subclause (I)(bb) of that paragraph)) under the State program 
        funded under this part for the fiscal year'';
          (2) by inserting ``excluding any amount expended by the State 
        for child care under subsection (g) or (i) of section 402 (as 
        in effect during fiscal year 1994) for fiscal year 1994,'' 
        after ``(as defined in paragraph (7)(B)(iii) of this 
        subsection),''; and
          (3) by inserting ``that the State has not remitted under 
        section 403(b)(6)'' before the period.
  (k) Penalty for State Failure to Expend Additional State funds to 
Replace Grant Reductions.--Section 409(a)(12) (42 U.S.C. 609(a)(12)) is 
amended--
          (1) in the heading--
                  (A) by striking ``Failure'' and inserting 
                ``Requirement''; and
                  (B) by striking ``reductions'' and inserting 
                ``reductions; penalty for failure to do so''; and
          (2) by inserting ``, and if the State fails to do so, the 
        Secretary may reduce the grant payable to the State under 
        section 403(a)(1) for the fiscal year that follows such 
        succeeding fiscal year by an amount equal to not more than 2 
        percent of the State family assistance grant'' before the 
        period.
  (l) Elimination of Certain Reasonable Cause Exceptions.--Section 
409(b)(2) (42 U.S.C. 609(b)(2)) is amended by striking ``(7) or (8)'' 
and inserting ``(6), (7), (8), (10), or (12)''.
  (m) Clarification of What It Means To Correct a Violation.--Section 
409(c) (42 U.S.C. 609(c)) is amended--
          (1) in each of subparagraphs (A) and (B) of paragraph (1), by 
        inserting ``or discontinue, as appropriate,'' after 
        ``correct'';
          (2) in paragraph (2)--
                  (A) in the heading, by inserting ``or discontinuing'' 
                after ``correcting''; and
                  (B) by inserting ``or discontinues, as appropriate'' 
                after ``corrects''; and
          (3) in paragraph (3)--
                  (A) in the heading, by inserting ``or discontinue'' 
                after ``correct''; and
                  (B) by inserting ``or discontinue, as appropriate,'' 
                before ``the violation''.
  (n) Certain Penalties Not Avoidable Through Corrective Compliance 
Plans.--Section 409(c)(4) (42 U.S.C. 609(c)(4)) is amended to read as 
follows:
          ``(4) Inapplicability to certain penalties.--This subsection 
        shall not apply to the imposition of a penalty against a State 
        under paragraph (6), (7), (8), (10), or (12) of subsection 
        (a).''.

SEC. 108. DATA COLLECTION AND REPORTING.

  Section 411(a) (42 U.S.C. 611(a)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A)--
                          (i) by striking clause (ii) and inserting the 
                        following:
                          ``(ii) Whether a child receiving such 
                        assistance or an adult in the family is 
                        receiving--
                                  ``(I) disability insurance benefits 
                                under section 223;
                                  ``(II) benefits based on disability 
                                under section 202;
                                  ``(III) aid under a State plan 
                                approved under title XIV (as in effect 
                                without regard to the amendment made by 
                                section 301 of the Social Security 
                                Amendments of 1972));
                                  ``(IV) aid or assistance under a 
                                State plan approved under title XVI (as 
                                in effect without regard to such 
                                amendment) by reason of being 
                                permanently and totally disabled; or
                                  ``(V) supplemental security income 
                                benefits under title XVI (as in effect 
                                pursuant to such amendment) by reason 
                                of disability.'';
                          (ii) in clause (iv), by striking ``youngest 
                        child in'' and inserting ``head of'';
                          (iii) in each of clauses (vii) and (viii), by 
                        striking ``status'' and inserting ``level''; 
                        and
                          (iv) by adding at the end the following:
                          ``(xvii) With respect to each individual in 
                        the family who has not attained 20 years of 
                        age, whether the individual is a parent of a 
                        child in the family.''; and
                  (B) in subparagraph (B)--
                          (i) in the heading, by striking ``estimates'' 
                        and inserting ``samples''; and
                          (ii) in clause (i), by striking ``an estimate 
                        which is obtained'' and inserting 
                        ``disaggregated case record information on a 
                        sample of families selected''; and
          (2) by redesignating paragraph (6) as paragraph (7) and 
        inserting after paragraph (5) the following:
          ``(6) Report on families receiving assistance.--The report 
        required by paragraph (1) for a fiscal quarter shall include 
        for each month in the quarter the number of families and 
        individuals receiving assistance under the State program funded 
        under this part (including the number of 2-parent and 1-parent 
        families), and the total dollar value of such assistance 
        received by all families.''.

SEC. 109. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

  (a) Prorating of Tribal Family Assistance Grants.--Section 
412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by inserting ``which 
shall be reduced for a fiscal year, on a pro rata basis for each 
quarter, in the case of a tribal family assistance plan approved during 
a fiscal year for which the plan is to be in effect,'' before ``and 
shall''.
  (b) Tribal Option To Operate Work Activities Program.--Section 
412(a)(2)(A) (42 U.S.C. 612(a)(2)(A)) is amended by striking ``The 
Secretary'' and all that follows through ``2002'' and inserting ``For 
each of fiscal years 1997, 1998, 1999, 2000, 2001, and 2002, the 
Secretary shall pay to each eligible Indian tribe that proposes to 
operate a program described in subparagraph (C)''.
  (c) Discretion of Tribes To Select Population To Be Served by Tribal 
Work Activities Program.--Section 412(a)(2)(C) (42 U.S.C. 612(a)(2)(C)) 
is amended by striking ``members of the Indian tribe'' and inserting 
``such population and such service area or areas as the tribe 
specifies''.
  (d) Reduction of Appropriation for Tribal Work Activities Programs.--
Section 412(a)(2)(D) (42 U.S.C. 612(a)(2)(D)) is amended by striking 
``$7,638,474'' and inserting ``$7,633,287''.
  (e) Availability of Corrective Compliance Plans to Indian Tribes.--
Section 412(f)(1) (42 U.S.C. 612(f)(1)) is amended by striking ``and 
(b)'' and inserting ``(b), and (c)''.
  (f) Eligibility of Tribes for Federal Loans for Welfare Programs.--
Section 412 (42 U.S.C. 612) is amended by redesignating subsections 
(f), (g), and (h) as subsections (g), (h), and (i), respectively, and 
by inserting after subsection (e) the following:
  ``(f) Eligibility for Federal Loans.--Section 406 shall apply to an 
Indian tribe with an approved tribal assistance plan in the same manner 
as such section applies to a State, except that section 406(c) shall be 
applied by substituting `section 412(a)' for `section 403(a)'.''.

SEC. 110. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

  (a) Research.--
          (1) Methods.--Section 413(a) (42 U.S.C. 613(a)) is amended by 
        inserting ``, directly or through grants, contracts, or 
        interagency agreements,'' before ``shall conduct''.
          (2) Correction of cross reference.--Section 413(a) (42 U.S.C. 
        613(a)) is amended by striking ``409'' and inserting ``407''.
  (b) Correction of Erroneously Indented Paragraph.--Section 413(e)(1) 
(42 U.S.C. 613(e)(1)) is amended to read as follows:
          ``(1) In general.--The Secretary shall annually rank States 
        to which grants are made under section 403 based on the 
        following ranking factors:
                  ``(A) 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 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 the year.
                  ``(B) Net changes in the out-of-wedlock ratio.--The 
                difference between the ratio described in subparagraph 
                (A) with respect to a State for the most recent year 
                for which such information is available and the ratio 
                with respect to the State for the immediately preceding 
                year.''.
  (c) Funding of Prior Authorized Demonstrations.--Section 413(h)(1)(D) 
(42 U.S.C. 613(h)(1)(D)) is amended by striking ``September 30, 1995'' 
and inserting ``August 22, 1996''.
  (d) Child Poverty Reports.--
          (1) Delayed due date for initial report.--Section 413(i)(1) 
        (42 U.S.C. 613(i)(1)) is amended by striking ``90 days after 
        the date of the enactment of this part'' and inserting 
        ``November 30, 1997''.
          (2) Modification of factors to be used in establishing 
        methodology for use in determining child poverty rates.--
        Section 413(i)(5) (42 U.S.C. 613(i)(5)) is amended by striking 
        ``the county-by-county'' and inserting ``, to the extent 
        available, county-by-county''.

SEC. 111. REPORT ON DATA PROCESSING.

  Section 106(a)(1) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2164) is 
amended by striking ``(whether in effect before or after October 1, 
1995)''.

SEC. 112. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

  Section 107(a) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2164) is 
amended by striking ``409(a)(7)(C)'' and inserting ``408(a)(7)(C)''.

SEC. 113. LIMITATION ON PAYMENTS TO THE TERRITORIES.

  (a) Certain Payments To Be Disregarded in Determining Limitation.--
Section 1108(a) (42 U.S.C. 1308) is amended to read as follows:
  ``(a) Limitation on Total Payments to Each Territory.--
          ``(1) In general.--Notwithstanding any other provision of 
        this Act (except for paragraph (2) of this subsection), 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.
          ``(2) Certain payments disregarded.--Paragraph (1) of this 
        subsection shall be applied without regard to any payment made 
        under section 403(a)(2), 403(a)(4), 406, or 413(f).''.
  (b) Certain Child Care and Social Services Expenditures by 
Territories Treated as IV-A Expenditures for Purposes of Matching 
Grant.--Section 1108(b)(1)(A) (42 U.S.C. 1308(b)(1)(A)) is amended by 
inserting ``, including any amount paid to the State under part A of 
title IV that is transferred in accordance with section 404(d) and 
expended under the program to which transferred'' before the semicolon.
  (c) Elimination of Duplicative Maintenance of Effort Requirement.--
Section 1108 (42 U.S.C. 1308) is amended by striking subsection (e).

SEC. 114. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

  (a) Amendments to Part D of Title IV.--
          (1) Corrections to determination of paternity establishment 
        percentages.--Section 452 (42 U.S.C. 652) is amended--
                  (A) in subsection (d)(3)(A), by striking all that 
                follows ``for purposes of'' and inserting ``section 
                409(a)(8), to achieve the paternity establishment 
                percentages (as defined under section 452(g)(2)) and 
                other performance measures that may be established by 
                the Secretary, and to submit data under section 
                454(15)(B) that is complete and reliable, and to 
                substantially comply with the requirements of this 
                part; and''; and
                  (B) in subsection (g)(1), by striking ``section 
                403(h)'' and inserting ``section 409(a)(8)''.
          (2) Elimination of obsolete language.--Section 108(c)(8)(C) 
        of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2165) 
        is amended by inserting ``and all that follows through `the 
        best interests of such child to do so' '' before ``and 
        inserting''.
          (3) Insertion of language inadvertently omitted.--Section 
        108(c)(13) of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2166) 
        is amended by inserting ``and inserting `pursuant to section 
        408(a)(3)' '' before the period.
          (4) Elimination of obsolete cross reference.--Section 
        464(a)(1) (42 U.S.C. 664(a)(1)) is amended by striking 
        ``section 402(a)(26)'' and inserting ``section 408(a)(3)''.
  (b) Amendments to Part E of Title IV.--Each of the following is 
amended by striking ``June 1, 1995'' each place such term appears and 
inserting ``July 16, 1996'':
          (1) Section 472(a) (42 U.S.C. 672(a)).
          (2) Section 472(h) (42 U.S.C. 672(h)).
          (3) Section 473(a)(2) (42 U.S.C. 673(a)(2)).
          (4) Section 473(b) (42 U.S.C. 673(b)).

SEC. 115. OTHER CONFORMING AMENDMENTS.

  (a) Elimination of Amendments Included Inadvertently.--Section 110(l) 
of the Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996 (Public Law 104-193; 110 Stat. 2173) is amended--
          (1) by adding ``and'' at the end of paragraph (6); and
          (2) by striking paragraph (7) and redesignating paragraph (8) 
        as paragraph (7).
  (b) Correction of Citation.--Section 109(f) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (Public 
Law 104-193; 110 Stat. 2177) is amended by striking ``93-186'' and 
inserting ``93-86''.
  (c) Correction of Internal Cross Reference.--Section 103(a)(1) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(Public Law 104-193; 110 Stat. 2112) is amended by striking 
``603(b)(2)'' and inserting ``603(b)''.

SEC. 116. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN LOW-INCOME 
                    INDIVIDUALS PROGRAM.

  Section 112(5) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2177) is 
amended in each of subparagraphs (A) and (B) by inserting ``under'' 
after ``funded''.

SEC. 117. DENIAL OF ASSISTANCE AND BENEFITS FOR DRUG-RELATED 
                    CONVICTIONS.

  (a) Extension of Certain Requirements Coordinated With Delayed 
Effective Date for Successor Provisions.--Section 115(d)(2) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(Public Law 104-193; 110 Stat. 2181) is amended by striking 
``convictions'' and inserting ``a conviction if the conviction is for 
conduct''.
  (b) Immediate Effectiveness of Provisions Relating to Research, 
Evaluations, and National Studies.--Section 116(a) of such Act (Public 
Law 104-193; 110 Stat. 2181) is amended by adding at the end the 
following:
          ``(6) Research, evaluations, and national studies.--Section 
        413 of the Social Security Act, as added by the amendment made 
        by section 103(a) of this Act, shall take effect on the date of 
        the enactment of this Act.''.

SEC. 118. TRANSITION RULE.

  Section 116 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2181) is 
amended--
          (1) in subsection (a)(2), by inserting ``(but subject to 
        subsection (b)(1)(A)(ii))'' after ``this section''; and
          (2) in subsection (b)(1)(A)(ii), by striking ``June 30, 
        1997'' and inserting ``the later of June 30, 1997, or the day 
        before the date described in subsection (a)(2)(B) of this 
        section''.

SEC. 119. EFFECTIVE DATES.

  (a) Amendments to Part A of Title IV of the Social Security Act.--The 
amendments made by this title to a provision of part A of title IV of 
the Social Security Act shall take effect as if the amendments had been 
included in section 103(a) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 at the time such section became 
law.
  (b) Amendments to Parts D and E of Title IV of the Social Security 
Act.--The amendments made by section 114 of this Act shall take effect 
as if the amendments had been included in section 108 of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 at the 
time such section 108 became law.
  (c) Amendments to Other Amendatory Provisions.--The amendments made 
by section 115(a) of this Act shall take effect as if the amendments 
had been included in section 110 of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 at the time such section 
110 became law.
  (d) Amendments to Freestanding Provisions of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996.--The 
amendments made by this title to a provision of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 that, as 
of July 1, 1997, will not have become part of another statute shall 
take effect as if the amendments had been included in the provision at 
the time the provision became law.

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

            Subtitle A--Conforming and Technical Amendments

SEC. 201. CONFORMING AND TECHNICAL AMENDMENTS RELATING TO ELIGIBILITY 
                    RESTRICTIONS

  (a) Denial of SSI Benefits for Fugitive Felons and Probation and 
Parole Violators.--Section 1611(e)(6) of the Social Security Act (42 
U.S.C. 1382(e)(6)) is amended by inserting ``and section 1106(c) of 
this Act'' after ``of 1986''.
  (b) Treatment of Prisoners.--Section 1611(e)(1)(I)(i)(II) of the 
Social Security Act (42 U.S.C. 1382(e)(1)(I)(i)(II)) is amended by 
striking ``inmate of the institution'' and all that follows through 
``this subparagraph'' and inserting ``individual who receives in the 
month preceding the first month throughout which such individual is an 
inmate of the jail, prison, penal institution, or correctional facility 
that furnishes information respecting such individual pursuant to 
subclause (I), or is confined in the institution (that so furnishes 
such information) as described in section 202(x)(1)(A)(ii), a benefit 
under this title for such preceding month, and who is determined by the 
Commissioner to be ineligible for benefits under this title by reason 
of confinement based on the information provided by such institution''.
  (c) Correction of Reference.--Section 1611(e)(1)(I)(i)(I) of the 
Social Security Act (42 U.S.C. 1382(e)(1)(I)(i)(I)) is amended by 
striking ``paragraph (1)'' and inserting ``this paragraph''.

SEC. 202. CONFORMING AND TECHNICAL AMENDMENTS RELATING TO BENEFITS FOR 
                    DISABLED CHILDREN.

  (a) Eligibility Redeterminations for Current Recipients.--Section 
211(d)(2)(A) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (42 U.S.C. 1382c note) is amended by 
striking ``1 year'' and inserting ``18 months''.
  (b) Eligibility Redeterminations and Continuing Disability Reviews.--
          (1) Disability eligibility redeterminations required for ssi 
        recipients who attain 18 years of age.--Section 
        1614(a)(3)(H)(iii) of the Social Security Act (42 U.S.C. 
        1382c(a)(3)(H)(iii)) is amended by striking subclauses (I) and 
        (II) and all that follows and inserting the following:
          ``(I) by applying the criteria used in determining initial 
        eligibility for individuals who are age 18 or older; and
          ``(II) either during the 1-year period beginning on the 
        individual's 18th birthday or, in lieu of a continuing 
        disability review, whenever the Commissioner determines that an 
        individual's case is subject to a redetermination under this 
        clause.
With respect to any redetermination under this clause, paragraph (4) 
shall not apply.''.
          (2) Continuing disability review required for low birth 
        weight babies.--Section 1614(a)(3)(H)(iv) of the Social 
        Security Act (42 U.S.C. 1382c(a)(3)(H)(iv)) is amended--
                  (A) in subclause (I), by striking ``Not'' and 
                inserting ``Except as provided in subclause (VI), 
                not''; and
                  (B) by adding at the end the following:
  ``(VI) Subclause (I) shall not apply in the case of an individual 
described in that subclause who, at the time of the individual's 
initial disability determination, the Commissioner determines has an 
impairment that is not expected to improve within 12 months after the 
birth of that individual, and who the Commissioner schedules for a 
continuing disability review at a date that is after the individual 
attains 1 year of age.''.
  (c) Additional Accountability Requirements.--Section 1631(a)(2)(F) of 
the Social Security Act (42 U.S.C. 1383(a)(2)(F)) is amended--
          (1) in clause (ii)(III)(bb), by striking ``the total amount'' 
        and all that follows through ``1613(c)'' and inserting ``in any 
        case in which the individual knowingly misapplies benefits from 
        such an account, the Commissioner shall reduce future benefits 
        payable to such individual (or to such individual and his 
        spouse) by an amount equal to the total amount of such benefits 
        so misapplied''; and
          (2) by striking clause (iii) and inserting the following:
  ``(iii) The representative payee may deposit into the account 
established under clause (i) any other funds representing past due 
benefits under this title to the eligible individual, provided that the 
amount of such past due benefits is equal to or exceeds the maximum 
monthly benefit payable under this title to an eligible individual 
(including State supplementary payments made by the Commissioner 
pursuant to an agreement under section 1616 or section 212(b) of Public 
Law 93-66).''.
  (d) Reduction in Cash Benefits Payable to Institutionalized 
Individuals Whose Medical Costs Are Covered by Private Insurance.--
Section 1611(e) of the Social Security Act (42 U.S.C. 1382(e)) is 
amended--
          (1) in paragraph (1)(B)--
                  (A) in the matter preceding clause (i), by striking 
                ``hospital, extended care facility, nursing home, or 
                intermediate care facility'' and inserting ``medical 
                treatment facility'';
                  (B) in clause (ii)--
                          (i) in the matter preceding subclause (I), by 
                        striking ``hospital, home or''; and
                          (ii) in subclause (I), by striking 
                        ``hospital, home, or'';
                  (C) in clause (iii), by striking ``hospital, home, 
                or''; and
                  (D) in the matter following clause (iii), by striking 
                ``hospital, extended care facility, nursing home, or 
                intermediate care facility which is a `medical 
                institution or nursing facility' within the meaning of 
                section 1917(c)'' and inserting ``medical treatment 
                facility that provides services described in section 
                1917(c)(1)(C)'';
          (2) in paragraph (1)(E)--
                  (A) in clause (i)(II), by striking ``hospital, 
                extended care facility, nursing home, or intermediate 
                care facility'' and inserting ``medical treatment 
                facility''; and
                  (B) in clause (iii), by striking ``hospital, extended 
                care facility, nursing home, or intermediate care 
                facility'' and inserting ``medical treatment 
                facility'';
          (3) in paragraph (1)(G), in the matter preceding clause (i)--
                  (A) by striking ``or which is a hospital, extended 
                care facility, nursing home, or intermediate care'' and 
                inserting ``or is in a medical treatment''; and
                  (B) by inserting ``or, in the case of an individual 
                who is a child under the age of 18, under any health 
                insurance policy issued by a private provider of such 
                insurance'' after ``title XIX''; and
          (4) in paragraph (3)--
                  (A) by striking ``same hospital, home, or facility'' 
                and inserting ``same medical treatment facility''; and
                  (B) by striking ``same such hospital, home, or 
                facility'' and inserting ``same such facility''.
  (e) Correction of U.S.C. Citation.--Section 211(c) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (Public 
Law 104-193; 110 Stat. 2189) is amended by striking ``1382(a)(4)'' and 
inserting ``1382c(a)(4)''.

SEC. 203. ADDITIONAL TECHNICAL AMENDMENTS TO TITLE II.

  Title II of the Social Security Act (42 U.S.C. 401 et seq.) is 
amended--
          (1) in section 205(j)(4)(B)(i), by adding ``and'' at the end; 
        and
          (2) in section 215(i)(2)(D), by striking ``He'' and inserting 
        ``The Commissioner of Social Security''.

SEC. 204. ADDITIONAL TECHNICAL AMENDMENTS TO TITLE XVI.

  Section 1615(d) of the Social Security Act (42 U.S.C. 1382d(d)) is 
amended--
          (1) in the first sentence, by inserting a comma after 
        ``subsection (a)(1)''; and
          (2) in the last sentence, by striking ``him'' and inserting 
        ``the Commissioner''.

SEC. 205. ADDITIONAL TECHNICAL AMENDMENTS RELATING TO TITLES II AND 
                    XVI.

  Section 1110(a)(3) of the Social Security Act (42 U.S.C. 1310(a)(3)) 
is amended--
          (1) by inserting ``(or the Commissioner, with respect to any 
        jointly financed cooperative agreement or grant concerning 
        titles II or XVI)'' after ``Secretary'' the first place it 
        appears; and
          (2) by inserting ``(or the Commissioner, as applicable)'' 
        after ``Secretary'' the second place it appears.

SEC. 206. EFFECTIVE DATES.

  (a) In General.--Except as provided in subsection (b), the amendments 
made by this subtitle shall take effect as if included in the enactment 
of title II of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2185).
  (b) Exception.--The amendments made by section 205 shall take effect 
as if included in the enactment of the Social Security Independence and 
Program Improvements Act of 1994 (Public Law 103-296; 108 Stat. 1464).

                   Subtitle B--Additional Amendments

SEC. 211. TECHNICAL AMENDMENTS RELATING TO DRUG ADDICTS AND ALCOHOLICS.

  (a) Clarifications Relating to the Effective Date of the Denial of 
Disability Benefits to Drug Addicts and Alcoholics.--
          (1) Amendments relating to disability benefits under title 
        ii.--Section 105(a)(5) of the Contract with America Advancement 
        Act of 1996 (Public Law 104-121; 110 Stat. 853) is amended--
                  (A) in subparagraph (A), by striking ``by the 
                Commissioner of Social Security'' and ``by the 
                Commissioner''; and
                  (B) by adding at the end the following new 
                subparagraphs:
                  ``(D) For purposes of this paragraph, an individual's 
                claim, with respect to benefits under title II of the 
                Social Security Act based on disability, which has been 
                denied in whole before the date of the enactment of 
                this Act, may not be considered to be finally 
                adjudicated before such date if, on or after such 
                date--
                          ``(i) there is pending a request for either 
                        administrative or judicial review with respect 
                        to such claim, or
                          ``(ii) there is pending, with respect to such 
                        claim, a readjudication by the Commissioner of 
                        Social Security pursuant to relief in a class 
                        action or implementation by the Commissioner of 
                        a court remand order.
                  ``(E) Notwithstanding the provisions of this 
                paragraph, with respect to any individual for whom the 
                Commissioner of Social Security does not perform the 
                entitlement redetermination before the date prescribed 
                in subparagraph (C), the Commissioner shall perform 
                such entitlement redetermination in lieu of a 
                continuing disability review whenever the Commissioner 
                determines that the individual's entitlement is subject 
                to redetermination based on the preceding provisions of 
                this paragraph, and the provisions of section 223(f) of 
                the Social Security Act shall not apply to such 
                redetermination.''.
          (2) Amendments relating to supplemental security income 
        disability benefits under title xvi.--Section 105(b)(5) of such 
        Act (Public Law 104-121; 110 Stat. 853) is amended--
                  (A) in subparagraph (A), by striking ``by the 
                Commissioner of Social Security'' and ``by the 
                Commissioner''; and
                  (B) by redesignating subparagraph (D) as subparagraph 
                (F) and by inserting after subparagraph (C) the 
                following new subparagraphs:
                  ``(D) For purposes of this paragraph, an individual's 
                claim, with respect to supplemental security income 
                benefits under title XVI of the Social Security Act 
                based on disability, which has been denied in whole 
                before the date of the enactment of this Act, may not 
                be considered to be finally adjudicated before such 
                date if, on or after such date--
                          ``(i) there is pending a request for either 
                        administrative or judicial review with respect 
                        to such claim, or
                          ``(ii) there is pending, with respect to such 
                        claim, a readjudication by the Commissioner of 
                        Social Security pursuant to relief in a class 
                        action or implementation by the Commissioner of 
                        a court remand order.
                  ``(E) Notwithstanding the provisions of this 
                paragraph, with respect to any individual for whom the 
                Commissioner does not perform the eligibility 
                redetermination before the date prescribed in 
                subparagraph (C), the Commissioner shall perform such 
                eligibility redetermination in lieu of a continuing 
                disability review whenever the Commissioner determines 
                that the individual's eligibility is subject to 
                redetermination based on the preceding provisions of 
                this paragraph, and the provisions of section 
                1614(a)(4) of the Social Security Act shall not apply 
                to such redetermination.''.
  (b) Corrections to Effective Date of Provisions Concerning 
Representative Payees and Treatment Referrals of Drug Addicts and 
Alcoholics.--
          (1) Amendments relating to title ii disability 
        beneficiaries.--Section 105(a)(5)(B) of such Act (Public Law 
        104-121; 110 Stat. 853) is amended to read as follows:
                  ``(B) The amendments made by paragraphs (2) and (3) 
                shall take effect on July 1, 1996, with respect to any 
                individual--
                          ``(i) whose claim for benefits is finally 
                        adjudicated on or after the date of the 
                        enactment of this Act, or
                          ``(ii) whose entitlement to benefits is based 
                        upon an entitlement redetermination made 
                        pursuant to subparagraph (C).''.
          (2) Amendments relating to supplemental security income 
        recipients.--Section 105(b)(5)(B) of such Act (Public Law 104-
        121; 110 Stat. 853) is amended to read as follows:
                  ``(B) The amendments made by paragraphs (2) and (3) 
                shall take effect on July 1, 1996, with respect to any 
                individual--
                          ``(i) whose claim for benefits is finally 
                        adjudicated on or after the date of the 
                        enactment of this Act, or
                          ``(ii) whose eligibility for benefits is 
                        based upon an eligibility redetermination made 
                        pursuant to subparagraph (C).''.
  (c) Repeal of Obsolete Reporting Requirements.--Subsections (a)(3)(B) 
and (b)(3)(B)(ii) of section 201 of the Social Security Independence 
and Program Improvements Act of 1994 (Public Law 103-296; 108 Stat. 
1497, 1504) are repealed.
  (d) Effective Dates.--
          (1) In general.--The amendments made by subsections (a) and 
        (b) shall take effect as if included in the enactment of 
        section 105 of the Contract with America Advancement Act of 
        1996 (Public Law 104-121; 110 Stat. 852 et seq.).
          (2) Repeals.--The repeals made by subsection (c) shall take 
        effect on the date of the enactment of this Act.

SEC. 212. EXTENSION OF DISABILITY INSURANCE PROGRAM DEMONSTRATION 
                    PROJECT AUTHORITY.

  (a) In General.--Section 505 of the Social Security Disability 
Amendments of 1980 (Public Law 96-265; 94 Stat. 473), as amended by 
section 12101 of the Consolidated Omnibus Budget Reconciliation Act of 
1985 (Public Law 99-272; 100 Stat. 282), section 10103 of the Omnibus 
Budget Reconciliation Act of 1989 (Public Law 101-239; 103 Stat. 2472), 
section 5120(f) of the Omnibus Budget Reconciliation Act of 1990 
(Public Law 101-508; 104 Stat. 1388-282), and section 315 of the Social 
Security Independence and Program Improvements Act of 1994 (Public Law 
103-296; 108 Stat. 1531), is further amended--
          (1) in paragraph (1) of subsection (a), by adding at the end 
        the following new sentence: ``The Commissioner may expand the 
        scope of any such experiment or demonstration project to 
        include any group of applicants for benefits under such program 
        with impairments which may reasonably be presumed to be 
        disabling for purposes of such experiment or demonstration 
        project, and may limit any such experiment or demonstration 
        project to any such group of applicants, subject to the terms 
        of such experiment or demonstration project which shall define 
        the extent of any such presumption.'';
          (2) in paragraph (3) of subsection (a), by striking ``June 
        10, 1996'' and inserting ``June 10, 1999'';
          (3) in paragraph (4) of subsection (a), by inserting ``and on 
        or before October 1, 1998,'' after ``1995,''; and
          (4) in subsection (c), by striking ``October 1, 1996'' and 
        inserting ``October 1, 1999''.
  (b) Effective Date.--The amendments made by subsection (a) shall take 
effect on the date of the enactment of this Act.

SEC. 213. PERFECTING AMENDMENTS RELATED TO WITHHOLDING FROM SOCIAL 
                    SECURITY BENEFITS.

  (a) Inapplicability of Assignment Prohibition.--Section 207 of the 
Social Security Act (42 U.S.C. 407) is amended by adding at the end the 
following new subsection:
  ``(c) Nothing in this section shall be construed to prohibit 
withholding taxes from any benefit under this title, if such 
withholding is done pursuant to a request made in accordance with 
section 3402(p)(1) of the Internal Revenue Code of 1986 by the person 
entitled to such benefit or such persons' representative payee.''.
  (b) Proper Allocation of Costs of Withholding Between the Trust Funds 
and the General Fund.--Section 201(g) of such Act (42 U.S.C. 401(g)) is 
amended--
          (1) by inserting before the period in paragraph (1)(A)(ii) 
        the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits, as described in section 207(c), pursuant to requests 
        by persons entitled to such benefits or such persons' 
        representative payee'';
          (2) by inserting before the period at the end of paragraph 
        (1)(A) the following: ``and the functions of the Social 
        Security Administration in connection with the withholding of 
        taxes from benefits, as described in section 207(c), pursuant 
        to requests by persons entitled to such benefits or such 
        persons' representative payee'';
          (3) in paragraph (1)(B)(i)(I), by striking ``subparagraph 
        (A)),'' and inserting ``subparagraph (A)) and the functions of 
        the Social Security Administration in connection with the 
        withholding of taxes from benefits, as described in section 
        207(c), pursuant to requests by persons entitled to such 
        benefits or such persons' representative payee,'';
          (4) in paragraph (1)(C)(iii), by inserting before the period 
        the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits, as described in section 207(c), pursuant to requests 
        by persons entitled to such benefits or such persons' 
        representative payee'';
          (5) in paragraph (1)(D), by inserting after ``section 232'' 
        the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits as described in section 207(c)''; and
          (6) in paragraph (4), by inserting after the first sentence 
        the following: ``The Board of Trustees of such Trust Funds 
        shall prescribe before January 1, 1998, the method of 
        determining the costs which should be borne by the general fund 
        in the Treasury of carrying out the functions of the Social 
        Security Administration in connection with the withholding of 
        taxes from benefits, as described in section 207(c), pursuant 
        to requests by persons entitled to such benefits or such 
        persons' representative payee.''.
  (c) Effective Date.--The amendments made by subsection (b) shall 
apply to benefits paid on or after the first day of the second month 
beginning after the month in which this Act is enacted.

SEC. 214. TREATMENT OF PRISONERS.

  (a) Implementation of Prohibition Against Payment of Title II 
Benefits to Prisoners.--
          (1) In general.--Section 202(x)(3) of the Social Security Act 
        (42 U.S.C. 402(x)(3)) is amended--
                  (A) by inserting ``(A)'' after ``(3)''; and
                  (B) by adding at the end the following new 
                subparagraph:
  ``(B)(i) The Commissioner shall enter into an agreement, with any 
interested State or local institution comprising a jail, prison, penal 
institution, correctional facility, or other institution a purpose of 
which is to confine individuals as described in paragraph (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 individuals confined in the institution as the Commissioner 
        may require for the purpose of carrying out paragraph (1); and
          ``(II) the Commissioner shall pay to the institution, with 
        respect to information described in subclause (I) concerning 
        each individual who is confined therein as described in 
        paragraph (1)(A), who receives a benefit under this title for 
        the month preceding the first month of such confinement, and 
        whose benefit under this title is determined by the 
        Commissioner to be not payable by reason of confinement based 
        on the information provided by the institution, $400 (subject 
        to reduction under clause (ii)) if the institution furnishes 
        the information to the Commissioner within 30 days after the 
        date such individual's confinement in such institution begins, 
        or $200 (subject to reduction under clause (ii)) if the 
        institution furnishes the information after 30 days after such 
        date but within 90 days after such date.
  ``(ii) The dollar amounts specified in clause (i)(II) shall be 
reduced by 50 percent if the Commissioner is also required to make a 
payment to the institution with respect to the same individual under an 
agreement entered into under section 1611(e)(1)(I).
  ``(iii) There shall be transferred from the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Disability Insurance 
Trust Fund, as appropriate, such sums as may be necessary to enable the 
Commissioner to make payments to institutions required by clause 
(i)(II). Sums so transferred shall be treated as direct spending for 
purposes of the Balanced Budget and Emergency Deficit Control Act of 
1985 and excluded from budget totals in accordance with section 13301 
of the Budget Enforcement Act of 1990.
  ``(iv) The Commissioner is authorized to provide, on a reimbursable 
basis, information obtained pursuant to agreements entered into under 
clause (i) to any agency administering a Federal or federally-assisted 
cash, food, or medical assistance program for eligibility purposes.''.
          (2) Effective date.--The amendments made by this subsection 
        shall apply to individuals whose period of confinement in an 
        institution commences on or after the first day of the fourth 
        month beginning after the month in which this Act is enacted.
  (b) Elimination of Title II Requirement That Confinement Stem From 
Crime Punishable by Imprisonment for More Than 1 Year.--
          (1) In general.--Section 202(x)(1)(A) of such Act (42 U.S.C. 
        402(x)(1)(A)) is amended--
                  (A) in the matter preceding clause (i), by striking 
                ``during'' and inserting ``throughout'';
                  (B) in clause (i), by striking ``an offense 
                punishable by imprisonment for more than 1 year 
                (regardless of the actual sentence imposed)'' and 
                inserting ``a criminal offense''; and
                  (C) in clause (ii)(I), by striking ``an offense 
                punishable by imprisonment for more than 1 year'' and 
                inserting ``a criminal offense''.
          (2) Effective date.--The amendments made by this subsection 
        shall apply to individuals whose period of confinement in an 
        institution commences on or after the first day of the fourth 
        month beginning after the month in which this Act is enacted.
  (c) Inclusion of Title II Issues in Study and Report Requirements 
Relating to Prisoners.--
          (1) In general.--Section 203(b)(1) of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (Public Law 104-193) is amended--
                  (A) in subparagraph (A), by striking ``section 
                1611(e)(1)'' and inserting ``sections 202(x) and 
                1611(e)(1)''; and
                  (B) in subparagraph (B), by striking ``section 
                1611(e)(1)(I)'' and inserting ``section 202(x)(3)(B) or 
                1611(e)(1)(I)''.
          (2) Conforming amendment.--Section 203(c) of such Act is 
        amended by striking ``section 1611(e)(1)(I)'' and all that 
        follows and inserting the following: ``sections 202(x)(3)(B) 
        and 1611(e)(1)(I) of the Social Security Act.''.
          (3) Application.--The amendments made by paragraph (1) shall 
        apply as if included in the enactment of section 203(b) of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996 (Public Law 104-193). The amendment made by paragraph 
        (2) shall apply as if included in the enactment of section 
        203(c) of such Act.
  (d) Conforming Title XVI Amendments.--
          (1) Fifty percent reduction in title xvi payment in case 
        involving comparable title ii payment.--Section 1611(e)(1)(I) 
        of the Social Security Act (42 U.S.C. 1382(e)(1)(I)), as 
        amended by section 201(b) of this Act, is amended further--
                  (A) in clause (i)(II), by inserting ``(subject to 
                reduction under clause (ii))'' after ``$400'' and after 
                ``$200'';
                  (B) by redesignating clauses (ii) and (iii) as 
                clauses (iii) and (iv) respectively; and
                  (C) by inserting after clause (i) the following new 
                clause:
  ``(ii) The dollar amounts specified in clause (i)(II) shall be 
reduced by 50 percent if the Commissioner is also required to make a 
payment to the institution with respect to the same individual under an 
agreement entered into under section 202(x)(3)(B).''.
          (2) Expansion of categories of institutions eligible to enter 
        into agreements with the commissioner.--Section 
        1611(e)(1)(I)(i) of such Act (42 U.S.C. 1382(e)(1)(I)(i)) is 
        amended in the matter preceding subclause (I) by striking 
        ``institution'' and all that follows through ``section 
        202(x)(1)(A),'' and inserting ``institution comprising a jail, 
        prison, penal institution, or correctional facility, or with 
        any other interested State or local institution a purpose of 
        which is to confine individuals as described in section 
        202(x)(1)(A)(ii),''.
          (3) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the enactment of section 
        203(a) of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
        2186). The reference to section 202(x)(1)(A)(ii) of the Social 
        Security Act in section 1611(e)(1)(I)(i) of such Act as amended 
        by paragraph (2) shall be deemed a reference to such section 
        202(x)(1)(A)(ii) as amended by subsection (b)(1)(C).
  (e) Exemption From Computer Matching Requirements.--
          (1) In general.--Section 552a(a)(8)(B) of title 5, United 
        States Code, is amended--
                  (A) by striking ``or'' at the end of clause (v) and 
                inserting a semicolon;
                  (B) by inserting ``or'' at the end of clause (vi); 
                and
                  (C) by inserting after clause (vi) the following new 
                clause:
                          ``(vii) matches performed pursuant to section 
                        202(x), 205(j), 1611(e)(1), or 1631(a)(2) of 
                        the Social Security Act;''.
          (2) Conforming amendment.--Section 1611(e)(1)(I)(iii) of the 
        Social Security Act (42 U.S.C. 1382(e)(1)(I)(iii)), as so 
        redesignated by subsection (d)(1)(B) of this section, is 
        amended--
                  (A) by striking ``(I) The provisions'' and all that 
                follows through ``(II) The Commissioner'' and inserting 
                ``The Commissioner''; and
                  (B) by inserting ``agency administering a'' before 
                ``Federal or federally-assisted''.
          (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.
  (f) Continued Denial of Benefits to Sex Offenders Remaining Confined 
to Public Institutions Upon Completion of Prison Term.--
          (1) In General.--Section 202(x)(1)(A) of the Social Security 
        Act (42 U.S.C. 402(x)(1)(A)) is amended--
                  (A) in clause (i), by striking ``or'' at the end;
                  (B) in clause (ii)(IV), by striking the period and 
                inserting ``, or''; and
                  (C) by adding at the end the following new clause:
          ``(iii) immediately upon completion of confinement as 
        described in clause (i) pursuant to conviction of a criminal 
        offense an element of which is sexual activity, is confined by 
        court order in an institution at public expense pursuant to a 
        finding that the individual is a sexually dangerous person or a 
        sexual predator or a similar finding.''.
          (2) Effective Date.--The amendments made by this subsection 
        shall apply with respect to benefits for months ending after 
        the date of the enactment of this Act.

SEC. 215. SOCIAL SECURITY ADVISORY BOARD PERSONNEL.

  (a) In General.--Section 703(i) of the Social Security Act (42 U.S.C. 
903(i)) is amended--
          (1) in the first sentence, by striking ``, and three'' and 
        all that follows through ``Board,''; and
          (2) in the last sentence, by striking ``clerical''.
  (b) Effective Date.--The amendments made by subsection (a) shall take 
effect as if included in the enactment of section 108 of the Contract 
with America Advancement Act of 1996 (Public Law 104-121; 110 Stat. 
857).

                        TITLE III--CHILD SUPPORT

SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT 
                    SERVICES.

  (a) Individuals Subject to Fee For Child Support Enforcement 
Services.--Section 454(6)(B) of the Social Security Act (42 U.S.C. 
654(6)(B)) is amended by striking ``individuals not receiving 
assistance under any State program funded under part A, which'' and 
inserting ``an individual, other than an individual receiving 
assistance under a State program funded under part A or E, or under a 
State plan approved under title XIX, or who is required by the State to 
cooperate with the State agency administering the program under this 
part pursuant to subsection (l) or (m) of section 6 of the Food Stamp 
Act of 1977, and''.
  (b) Correction of Reference.--Section 464(a)(2)(A) of the Social 
Security Act (42 U.S.C. 654(a)(2)(A)) is amended in the first sentence 
by striking ``section 454(6)'' and inserting ``section 454(4)(A)(ii)''.

SEC. 302. DISTRIBUTION OF COLLECTED SUPPORT.

  (a) Continuation of Assignments.--Section 457(b) of the Social 
Security Act (42 U.S.C. 657(b)) is amended--
          (1) by striking ``which were assigned'' and inserting 
        ``assigned''; and
          (2) by striking ``and which were in effect'' and all that 
        follows and inserting ``and in effect on September 30, 1997 (or 
        such earlier date, on or after August 22, 1996, as the State 
        may choose), shall remain assigned after such date.''.
  (b) State Option for Applicability.--
          (1) In general.--Section 457(a) of the Social Security Act 
        (42 U.S.C. 657(a)) is amended by adding at the end the 
        following:
          ``(6) State option for applicability.--Notwithstanding any 
        other provision of this subsection, a State may elect to apply 
        the rules described in clauses (i)(II), (ii)(II), and (v) of 
        paragraph (2)(B) to support arrearages collected on and after 
        October 1, 1998, and, if the State makes such an election, 
        shall apply the provisions of this section, as in effect and 
        applied on the day before the date of enactment of section 302 
        of the Personal Responsibility and Work Opportunity Act of 1996 
        (Public Law 104-193, 110 Stat. 2200), other than subsection 
        (b)(1) (as so in effect), to amounts collected before October 
        1, 1998.''.
          (2) Conforming amendments.--Section 408(a)(3)(A) of the 
        Social Security Act (42 U.S.C. 608(a)(3)(A)) is amended--
                  (A) in clause (i), by inserting ``(I)'' after 
                ``(i)'';
                  (B) in clause (ii)--
                          (i) by striking ``(ii)'' and inserting 
                        ``(II)''; and
                          (ii) by striking the period and inserting ``; 
                        or''; and
                  (C) by adding at the end, the following:
                          ``(ii) if the State elects to distribute 
                        collections under section 457(a)(6), the date 
                        the family ceases to receive assistance under 
                        the program, if the assignment is executed on 
                        or after October 1, 1998.''.
  (c) Distribution of Collections With Respect to Families Receiving 
Assistance.--Section 457(a)(1) of the Social Security Act (42 U.S.C. 
657(a)(1)) is amended by adding at the end the following flush 
language:
        ``In no event shall the total of the amounts paid to the 
        Federal Government and retained by the State exceed the total 
        of the amounts that have been paid to the family as assistance 
        by the State.''.
  (d) Families Under Certain Agreements.--Section 457(a)(4) of the 
Social Security Act (42 U.S.C. 657(a)(4)) is amended to read as 
follows:
          ``(4) Families under certain agreements.--In the case of an 
        amount collected for a family in accordance with a cooperative 
        agreement under section 454(33), distribute the amount so 
        collected pursuant to the terms of the agreement.''.
  (e) Study and Report.--Section 457(a)(5) of the Social Security Act 
(42 U.S.C. 657(a)(5)) is amended by striking ``1998'' and inserting 
``1999''.
  (f) Corrections of References.--Section 457(a)(2)(B) of the Social 
Security Act (42 U.S.C. 657(a)(2)(B)) is amended--
          (1) in clauses (i)(I) and (ii)(I)--
                  (A) by striking ``(other than subsection (b)(1))'' 
                each place it appears; and
                  (B) by inserting ``(other than subsection (b)(1) (as 
                so in effect))'' after ``1996'' each place it appears; 
                and
          (2) in clause (ii)(II), by striking ``paragraph (4)'' and 
        inserting ``paragraph (5)''.
  (g) Correction of Territorial Match.--Section 457(c)(3)(A) of the 
Social Security Act (42 U.S.C. 657(c)(3)(A)) is amended by striking 
``the Federal medical assistance percentage (as defined in section 
1118)'' and inserting ``75 percent''.
  (h) Definitions.--
          (1) Federal share.--Section 457(c)(2) of the Social Security 
        Act (42 U.S.C. 657(c)(2)) is amended by striking ``collected'' 
        the second place it appears and inserting ``distributed''.
          (2) Federal medical assistance percentage.--Section 
        457(c)(3)(B) of the Social Security Act (42 U.S.C. 
        657(c)(3)(B)) is amended by striking ``as in effect on 
        September 30, 1996'' and inserting ``as such section was in 
        effect on September 30, 1995''.
  (i) Conforming Amendments.--
          (1) Section 464(a)(2)(A) of the Social Security Act (42 
        U.S.C. 664(a)(2)(A)) is amended, in the penultimate sentence, 
        by inserting ``in accordance with section 457'' after ``owed''.
          (2) Section 466(a)(3)(B) of the Social Security Act (42 
        U.S.C. 666(a)(3)(B)) is amended by striking ``457(b)(4) or 
        (d)(3)'' and inserting ``457''.

SEC. 303. CIVIL PENALTIES RELATING TO STATE DIRECTORY OF NEW HIRES.

  Section 453A of the Social Security Act (42 U.S.C. 653a) is amended--
          (1) in subsection (d)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``shall be less than'' and inserting ``shall 
                not exceed''; and
                  (B) in paragraph (1), by striking ``$25'' and 
                inserting ``$25 per failure to meet the requirements of 
                this section with respect to a newly hired employee''; 
                and
          (2) in subsection (g)(2)(B), by striking ``extracts'' and all 
        that follows through ``Labor'' and inserting ``information''.

SEC. 304. FEDERAL PARENT LOCATOR SERVICE.

  (a) In General.--Section 453 of the Social Security Act (42 U.S.C. 
653) is amended--
          (1) in subsection (a)--
                  (A) by inserting ``(1)'' after ``(a)''; and
                  (B) by striking ``to obtain'' and all that follows 
                through the period and inserting ``for the purposes 
                specified in paragraphs (2) and (3).
  ``(2) For the purpose of establishing parentage, establishing, 
setting the amount of, modifying, or enforcing child support 
obligations, the Federal Parent Locator Service shall obtain and 
transmit to any authorized person specified in subsection (c)--
          ``(A) information on, or facilitating the discovery of, the 
        location of any individual--
                  ``(i) who is under an obligation to pay child 
                support;
                  ``(ii) against whom such an obligation is sought; or
                  ``(iii) 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;
          ``(B) 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
          ``(C) information on the type, status, location, and amount 
        of any assets of, or debts owed by or to, any such individual.
  ``(3) For the purpose of enforcing any Federal or State law with 
respect to the unlawful taking or restraint of a child, or making or 
enforcing a child custody or visitation determination, as defined in 
section 463(d)(1), the Federal Parent Locator Service shall be used to 
obtain and transmit the information specified in section 463(c) to the 
authorized persons specified in section 463(d)(2).'';
          (2) by striking subsection (b) and inserting the following:
  ``(b)(1) Upon request, filed in accordance with subsection (d), of 
any authorized person, as defined in subsection (c) for the information 
described in subsection (a)(2), or of any authorized person, as defined 
in section 463(d)(2) for the information described in section 463(c), 
the Secretary shall, notwithstanding any other provision of law, 
provide through the Federal Parent Locator Service such information to 
such person, if such information--
          ``(A) is contained in any files or records maintained by the 
        Secretary or by the Department of Health and Human Services; or
          ``(B) is not contained in such files or records, but can be 
        obtained by the Secretary, under the authority conferred by 
        subsection (e), from any other department, agency, or 
        instrumentality of the United States or of any State,
and is not prohibited from disclosure under paragraph (2).
  ``(2) No information shall be disclosed to any person if the 
disclosure of such information would contravene the national policy or 
security interests of the United States or the confidentiality of 
census data. The Secretary shall give priority to requests made by any 
authorized person described in subsection (c)(1). 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, provided that--
          ``(A) in response to a request from an authorized person (as 
        defined in subsection (c) and section 463(d)(2)), the Secretary 
        shall advise the authorized person that the Secretary has been 
        notified that there is reasonable evidence of domestic violence 
        or child abuse and that information can only be disclosed to a 
        court or an agent of a court pursuant to subparagraph (B); and
          ``(B) information may be disclosed to a court or an agent of 
        a court described in subsection (c)(2) or section 463(d)(2)(B), 
        if--
                  ``(i) upon receipt of information from the Secretary, 
                the court determines whether disclosure to any other 
                person of that information could be harmful to the 
                parent or the child; and
                  ``(ii) if the court determines that disclosure of 
                such information to any other person could be harmful, 
                the court and its agents shall not make any such 
                disclosure.
  ``(3) Information received or transmitted pursuant to this section 
shall be subject to the safeguard provisions contained in section 
454(26).''; and
          (3) in subsection (c)--
                  (A) in paragraph (1), by striking ``or to seek to 
                enforce orders providing child custody or visitation 
                rights''; and
                  (B) in paragraph (2)--
                          (i) by inserting ``or to serve as the 
                        initiating court in an action to seek an 
                        order'' after ``issue an order''; and
                          (ii) by striking ``or to issue an order 
                        against a resident parent for child custody or 
                        visitation rights''.
  (b) Use of the Federal Parent Locator Service.--Section 463 of the 
Social Security Act (42 U.S.C. 663) is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1)--
                          (i) by striking ``any State which is able and 
                        willing to do so,'' and inserting ``every 
                        State''; and
                          (ii) by striking ``such State'' and inserting 
                        ``each State''; and
                  (B) in paragraph (2), by inserting ``or visitation'' 
                after ``custody'';
          (2) in subsection (b)(2), by inserting ``or visitation'' 
        after ``custody'';
          (3) in subsection (d)--
                  (A) in paragraph (1), by inserting ``or visitation'' 
                after ``custody''; and
                  (B) in subparagraphs (A) and (B) of paragraph (2), by 
                inserting ``or visitation'' after ``custody'' each 
                place it appears;
          (4) in subsection (f)(2), by inserting ``or visitation'' 
        after ``custody''; and
          (5) by striking ``noncustodial'' each place it appears.

SEC. 305. ACCESS TO REGISTRY DATA FOR RESEARCH PURPOSES.

  (a) In General.--Section 453(j)(5) of the Social Security Act (42 
U.S.C. 653(j)(5)) is amended by inserting ``data in each component of 
the Federal Parent Locator Service maintained under this section and 
to'' before ``information''.
  (b) Conforming Amendments.--Section 453 of the Social Security Act 
(42 U.S.C. 653) is amended--
          (1) in subsection (j)(3)(B), by striking ``registries'' and 
        inserting ``components''; and
          (2) in subsection (k)(2), by striking ``subsection (j)(3)'' 
        and inserting ``section 453A(g)(2)''.

SEC. 306. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR USE IN 
                    CHILD SUPPORT ENFORCEMENT.

  Section 466(a)(13) of the Social Security Act (42 U.S.C. 666(a)(13)) 
is amended--
          (1) in subparagraph (A)--
                  (A) by striking ``commercial''; and
                  (B) by inserting ``recreational license,'' after 
                ``occupational license,''; and
          (2) in the matter following subparagraph (C), by inserting 
        ``to be used on the face of the document while the social 
        security number is kept on file at the agency'' after ``other 
        than the social security number''.

SEC. 307. ADOPTION OF UNIFORM STATE LAWS.

  Section 466(f) of the Social Security Act (42 U.S.C. 666(f)) is 
amended by striking ``together'' and all that follows and inserting 
``and as in effect on August 22, 1996, including any amendments 
officially adopted as of such date by the National Conference of 
Commissioners on Uniform State Laws.''.

SEC. 308. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

  Section 466(c) of the Social Security Act (42 U.S.C. 666(c)) is 
amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (E), by inserting ``, part E,'' 
                after ``part A''; and
                  (B) in subparagraph (G), by inserting ``any current 
                support obligation and'' after ``to satisfy''; and
          (2) in paragraph (2)(A)--
                  (A) in clause (i), by striking ``the tribunal and''; 
                and
                  (B) in clause (ii)--
                          (i) by striking ``tribunal may'' and 
                        inserting ``court or administrative agency of 
                        competent jurisdiction shall''; and
                          (ii) by striking ``filed with the tribunal'' 
                        and inserting ``filed with the State case 
                        registry''.

SEC. 309. VOLUNTARY PATERNITY ACKNOWLEDGEMENT.

  Section 466(a)(5)(C)(i) of the Social Security Act (42 U.S.C. 
666(a)(5)(C)(i)) is amended by inserting ``, or through the use of 
video or audio equipment,'' after ``orally''.

SEC. 310. CALCULATION OF PATERNITY ESTABLISHMENT PERCENTAGE.

  Section 452(g)(2) of the Social Security Act (42 U.S.C. 652(g)(2)) is 
amended, in the matter following subparagraph (C), by striking 
``subparagraph (A)'' and inserting ``subparagraphs (A) and (B)''.

SEC. 311. MEANS AVAILABLE FOR PROVISION OF TECHNICAL ASSISTANCE AND 
                    OPERATION OF FEDERAL PARENT LOCATOR SERVICE.

  (a) Technical Assistance.--Section 452(j) of the Social Security Act 
(42 U.S.C. 652(j)), is amended, in the matter preceding paragraph (1), 
by striking ``to cover costs incurred by the Secretary'' and inserting 
``which shall be available for use by the Secretary, either directly or 
through grants, contracts, or interagency agreements,''.
  (b) Operation of Federal Parent Locator Service.--
          (1) Means available.--Section 453(o) of the Social Security 
        Act (42 U.S.C. 653(o)) is amended--
                  (A) in the heading, by striking ``Recovery of Costs'' 
                and inserting ``Use of Set-Aside Funds''; and
                  (B) by striking ``to cover costs incurred by the 
                Secretary'' and inserting ``which shall be available 
                for use by the Secretary, either directly or through 
                grants, contracts, or interagency agreements,''.
          (2) Availability of funds.--Section 453(o) of the Social 
        Security Act (42 U.S.C. 653(o)) is amended by adding at the end 
        the following: ``Amounts appropriated under this subsection for 
        each of fiscal years 1997 through 2001 shall remain available 
        until expended.''.

SEC. 312. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

  (a) Response to Notice or Process.--Section 459(c)(2)(C) of the 
Social Security Act (42 U.S.C. 659(c)(2)(C)) is amended by striking 
``respond to the order, process, or interrogatory'' and inserting 
``withhold available sums in response to the order or process, or 
answer the interrogatory''.
  (b) Moneys Subject to Process.--Section 459(h)(1) of the Social 
Security Act (42 U.S.C. 659(h)(1)) is amended--
          (1) in the matter preceding subparagraph (A) and in 
        subparagraph (A)(i), by striking ``paid or'' each place it 
        appears;
          (2) in subparagraph (A)--
                  (A) in clause (ii)(V), by striking ``and'' at the 
                end;
                  (B) in clause (iii)--
                          (i) by inserting ``or payable'' after 
                        ``paid''; and
                          (ii) by striking ``but'' and inserting ``; 
                        and''; and
                  (C) by inserting after clause (iii), the following:
                          ``(iv) benefits paid or payable under the 
                        Railroad Retirement System, but''; and
          (3) in subparagraph (B)--
                  (A) in clause (i), by striking ``or'' at the end;
                  (B) in clause (ii), by striking the period and 
                inserting ``; or''; and
                  (C) by adding at the end the following:
                          ``(iii) of periodic benefits under title 38, 
                        United States Code, except as provided in 
                        subparagraph (A)(ii)(V).''.
  (c) Conforming Amendment.--Section 454(19)(B)(ii) of the Social 
Security Act (42 U.S.C. 654(19)(B)(ii)) is amended by striking 
``section 462(e)'' and inserting ``section 459(i)(5)''.

SEC. 313. DEFINITION OF SUPPORT ORDER.

  Section 453(p) of the Social Security Act (42 U.S.C. 653(p)), is 
amended by striking ``a child and'' and inserting ``of''.

SEC. 314. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

  Section 466(a)(16) of the Social Security Act (42 U.S.C. 666(a)(16)) 
is amended by inserting ``and sporting'' after ``recreational''.

SEC. 315. INTERNATIONAL SUPPORT ENFORCEMENT.

  Section 454(32)(A) of the Social Security Act (42 U.S.C. 654(32)(A)) 
is amended by striking ``section 459A(d)(2)'' and inserting ``section 
459A(d)''.

SEC. 316. CHILD SUPPORT ENFORCEMENT FOR INDIAN TRIBES.

  (a) Cooperative Agreements by Indian Tribes and States for Child 
Support Enforcement.--Section 454(33) of the Social Security Act (42 
U.S.C. 654(33)) is amended--
          (1) by striking ``and enforce support orders, and'' and 
        inserting ``or enforce support orders, or'';
          (2) by striking ``guidelines established by such tribe or 
        organization'' and inserting ``guidelines established or 
        adopted by such tribe or organization'';
          (3) by striking ``funding collected'' and inserting 
        ``collections''; and
          (4) by striking ``such funding'' and inserting ``such 
        collections''.
  (b) Correction of Subsection Designation.--Section 455 of the Social 
Security Act (42 U.S.C. 655), is amended by redesignating subsection 
(b), as added by section 375(b) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Public Law 104-193, 110 Stat. 
2256), as subsection (f).
  (c) Direct Grants to Tribes.--Section 455(f) of the Social Security 
Act (42 U.S.C. 655(f)), as redesignated by subsection (b), is amended 
to read as follows:
  ``(f) The Secretary may make direct payments under this part to an 
Indian tribe or tribal organization that demonstrates to the 
satisfaction of the Secretary that it has the capacity to operate a 
child support enforcement program meeting the objectives of this part, 
including establishment of paternity, establishment, modification, and 
enforcement of support orders, and location of absent parents. The 
Secretary shall promulgate regulations establishing the requirements 
which must be met by an Indian tribe or tribal organization to be 
eligible for a grant under this subsection.''.

SEC. 317. CONTINUATION OF RULES FOR DISTRIBUTION OF SUPPORT IN THE CASE 
                    OF A TITLE IV-E CHILD.

  Section 457 of the Social Security Act (42 U.S.C. 657) is amended--
          (1) in subsection (a), in the matter preceding paragraph (1), 
        by striking ``subsection (e)'' and inserting ``subsections (e) 
        and (f)''; and
          (2) by adding at the end, the following:
  ``(f) Notwithstanding the preceding provisions of this section, 
amounts collected by a State as child support for months in any period 
on behalf of a child for whom a public agency is making foster care 
maintenance payments under part E--
          ``(1) shall be retained by the State to the extent necessary 
        to reimburse it for the foster care maintenance payments made 
        with respect to the child during such period (with appropriate 
        reimbursement of the Federal Government to the extent of its 
        participation in the financing);
          ``(2) shall be paid to the public agency responsible for 
        supervising the placement of the child to the extent that the 
        amounts collected exceed the foster care maintenance payments 
        made with respect to the child during such period but not the 
        amounts required by a court or administrative order to be paid 
        as support on behalf of the child during such period; and the 
        responsible agency may use the payments in the manner it 
        determines will serve the best interests of the child, 
        including setting such payments aside for the child's future 
        needs or making all or a part thereof available to the person 
        responsible for meeting the child's day-to-day needs; and
          ``(3) shall be retained by the State, if any portion of the 
        amounts collected remains after making the payments required 
        under paragraphs (1) and (2), to the extent that such portion 
        is necessary to reimburse the State (with appropriate 
        reimbursement to the Federal Government to the extent of its 
        participation in the financing) for any past foster care 
        maintenance payments (or payments of assistance under the State 
        program funded under part A) which were made with respect to 
        the child (and with respect to which past collections have not 
        previously been retained);
and any balance shall be paid to the State agency responsible for 
supervising the placement of the child, for use by such agency in 
accordance with paragraph (2).''.

SEC. 318. GOOD CAUSE IN FOSTER CARE AND FOOD STAMP CASES.

  (a) State Plan.--Section 454(4)(A)(i) of the Social Security Act (42 
U.S.C. 654(4)(A)(i)) is amended--
          (1) by striking ``or'' before ``(III)''; and
          (2) by inserting ``or (IV) cooperation is required pursuant 
        to section 6(l)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
        2015(l)(1)),'' after ``title XIX,''.
  (b) Conforming Amendments.--Section 454(29) of the Social Security 
Act (42 U.S.C. 654(29)) is amended--
          (1) in subparagraph (A)--
                  (A) in the matter preceding clause (i), by striking 
                ``part A of this title or the State program under title 
                XIX'' and inserting ``part A, the State program under 
                part E, the State program under title XIX, or the food 
                stamp program, as defined under section 3(h) of the 
                Food Stamp Act of 1977 (7 U.S.C. 2012(h)),''; and
                  (B) by striking clauses (i) and (ii) and all that 
                follows through the semicolon and inserting the 
                following:
                          ``(i) in the case of the State program funded 
                        under part A, the State program under part E, 
                        or the State program under title XIX shall, at 
                        the option of the State, be defined, taking 
                        into account the best interests of the child, 
                        and applied in each case, by the State agency 
                        administering such program; and
                          ``(ii) in the case of the food stamp program, 
                        as defined under section 3(h) of the Food Stamp 
                        Act of 1977 (7 U.S.C. 2012(h)), shall be 
                        defined and applied in each case under that 
                        program in accordance with section 6(l)(2) of 
                        the Food Stamp Act of 1977 (7 U.S.C. 
                        2015(l)(2));'';
          (2) in subparagraph (D), by striking ``or the State program 
        under title XIX'' and inserting ``the State program under part 
        E, the State program under title XIX, or the food stamp 
        program, as defined under section 3(h) of the Food Stamp Act of 
        1977 (7 U.S.C. 2012(h))''; and
          (3) in subparagraph (E), by striking ``individual,'' and all 
        that follows through ``XIX,'' and inserting ``individual and 
        the State agency administering the State program funded under 
        part A, the State agency administering the State program under 
        part E, the State agency administering the State program under 
        title XIX, or the State agency administering the food stamp 
        program, as defined under section 3(h) of the Food Stamp Act of 
        1977 (7 U.S.C. 2012(h)),''.

SEC. 319. DATE OF COLLECTION OF SUPPORT.

  Section 454B(c)(1) of the Social Security Act (42 U.S.C. 654B(c)(1)) 
is amended by adding at the end the following: ``The date of collection 
for amounts collected and distributed under this part is the date of 
receipt by the State disbursement unit, except that if current support 
is withheld by an employer in the month when due and is received by the 
State disbursement unit in a month other than the month when due, the 
date of withholding may be deemed to be the date of collection.''.

SEC. 320. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

  (a) Procedures.--Section 466(a)(14) of the Social Security Act (42 
U.S.C. 666(a)(14)) is amended to read as follows:
          ``(14) High-volume, automated administrative enforcement in 
        interstate cases.--
                  ``(A) In general.--Procedures under which--
                          ``(i) the State shall use high-volume 
                        automated administrative enforcement, to the 
                        same extent as used for intrastate cases, in 
                        response to a request made by another State to 
                        enforce support orders, and shall promptly 
                        report the results of such enforcement 
                        procedure to the requesting State;
                          ``(ii) the State may, by electronic or other 
                        means, transmit to another State a request for 
                        assistance in enforcing support orders through 
                        high-volume, automated administrative 
                        enforcement, which request--
                                  ``(I) shall include such information 
                                as will enable the State to which the 
                                request is transmitted to compare the 
                                information about the cases to the 
                                information in the data bases of the 
                                State; and
                                  ``(II) shall constitute a 
                                certification by the requesting State--
                                          ``(aa) of the amount of 
                                        support under an order the 
                                        payment of which is in arrears; 
                                        and
                                          ``(bb) that the requesting 
                                        State has complied with all 
                                        procedural due process 
                                        requirements applicable to each 
                                        case;
                          ``(iii) 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
                          ``(iv) 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.
                  ``(B) High-volume automated administrative 
                enforcement.--In this part, the term `high-volume 
                automated administrative enforcement' means the use of 
                automatic data processing to search various State data 
                bases, including license records, employment service 
                data, and State new hire registries, to determine 
                whether information is available regarding a parent who 
                owes a child support obligation.''.
  (b) Incentive Payments.--Section 458(d) of the Social Security Act 
(42 U.S.C. 658(d)) is amended by inserting ``, including amounts 
collected under section 466(a)(14),'' after ``another State''.

SEC. 321. WORK ORDERS FOR ARREARAGES.

  Section 466(a)(15) of the Social Security Act (42 U.S.C. 666(a)(15)) 
is amended to read as follows:
          ``(15) Procedures to ensure that persons owing overdue 
        support work or have a plan for payment of such support.--
        Procedures under which the State has the authority, in any case 
        in which an individual owes overdue 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--
                  ``(A) 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
                  ``(B) 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.''.

SEC. 322. ADDITIONAL TECHNICAL STATE PLAN AMENDMENTS.

  Section 454 of the Social Security Act (42 U.S.C. 654) is amended--
          (1) in paragraph (8)--
                  (A) in the matter preceding subparagraph (A)--
                          (i) by striking ``noncustodial''; and
                          (ii) by inserting ``, for the purpose of 
                        establishing parentage, establishing, setting 
                        the amount of, modifying, or enforcing child 
                        support obligations, or making or enforcing a 
                        child custody or visitation determination, as 
                        defined in section 463(d)(1)'' after ``provide 
                        that'';
                  (B) in subparagraph (A), by striking the comma and 
                inserting a semicolon;
                  (C) in subparagraph (B), by striking the semicolon 
                and inserting a comma; and
                  (D) by inserting after subparagraph (B), the 
                following flush language:
        ``and shall, subject to the privacy safeguards required under 
        paragraph (26), disclose only the information described in 
        sections 453 and 463 to the authorized persons specified in 
        such sections for the purposes specified in such sections;'';
          (2) in paragraph (17)--
                  (A) by striking ``in the case of a State which has'' 
                and inserting ``provide that the State will have''; and
                  (B) by inserting ``and'' after ``section 453,''; and
          (3) in paragraph (26)--
                  (A) in the matter preceding subparagraph (A), by 
                striking ``will'';
                  (B) in subparagraph (A)--
                          (i) by inserting ``, modify,'' after 
                        ``establish'', the second place it appears; and
                          (ii) by inserting ``, or to make or enforce a 
                        child custody determination'' after 
                        ``support'';
                  (C) in subparagraph (B)--
                          (i) by inserting ``or the child'' after ``1 
                        party'';
                          (ii) by inserting ``or the child'' after 
                        ``former party''; and
                          (iii) by striking ``and'' at the end;
                  (D) in subparagraph (C)--
                          (i) by inserting ``or the child'' after ``1 
                        party'';
                          (ii) by striking ``another party'' and 
                        inserting ``another person'';
                          (iii) by inserting ``to that person'' after 
                        ``release of the information''; and
                          (iv) by striking ``former party'' and 
                        inserting ``party or the child''; and
                  (E) by adding at the end the following:
                  ``(D) in cases in which the prohibitions under 
                subparagraphs (B) and (C) apply, the requirement to 
                notify the Secretary, for purposes of section 
                453(b)(2), that the State has reasonable evidence of 
                domestic violence or child abuse against a party or the 
                child and that the disclosure of such information could 
                be harmful to the party or the child; and
                  ``(E) procedures providing that when the Secretary 
                discloses information about a parent or child to a 
                State court or an agent of a State court described in 
                section 453(c)(2) or 463(d)(2)(B), and advises that 
                court or agent that the Secretary has been notified 
                that there is reasonable evidence of domestic violence 
                or child abuse pursuant to section 453(b)(2), the court 
                shall determine whether disclosure to any other person 
                of information received from the Secretary could be 
                harmful to the parent or child and, if the court 
                determines that disclosure to any other person could be 
                harmful, the court and its agents shall not make any 
                such disclosure;''.

SEC. 323. FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.

  Section 453(h) of the Social Security Act (42 U.S.C. 653(h)) is 
amended--
          (1) in paragraph (1), by inserting ``and order'' after ``with 
        respect to each case''; and
          (2) in paragraph (2)--
                  (A) in the heading, by inserting ``and order'' after 
                ``Case'';
                  (B) by inserting ``or an order'' after ``with respect 
                to a case'' and
                  (C) by inserting ``or order'' after ``and the State 
                or States which have the case''.

SEC. 324. FULL FAITH AND CREDIT FOR CHILD SUPPORT ORDERS.

  Section 1738B(f) of title 28, United States Code, is amended--
          (1) in paragraph (4), by striking ``a court may'' and all 
        that follows and inserting ``a court having jurisdiction over 
        the parties shall issue a child support order, which must be 
        recognized.''; and
          (2) in paragraph (5), by inserting ``under subsection (d)'' 
        after ``jurisdiction''.

SEC. 325. DEVELOPMENT COSTS OF AUTOMATED SYSTEMS.

  (a) Definition of State.--Section 455(a)(3)(B) of the Social Security 
Act (42 U.S.C. 655(a)(3)(B)) is amended--
          (1) in clause (i)--
                  (A) by inserting ``or system described in clause 
                (iii)'' after ``each State''; and
                  (B) by inserting ``or system'' after ``the State''; 
                and
          (2) by adding at the end the following:
  ``(iii) For purposes of clause (i), a system described in this clause 
is a system that has been approved by the Secretary to receive enhanced 
funding pursuant to the Family Support Act of 1988 (Public Law 100-485; 
102 Stat. 2343) for the purpose of developing a system that meets the 
requirements of sections 454(16) (as in effect on and after September 
30, 1995) and 454A, including systems that have received funding for 
such purpose pursuant to a waiver under section 1115(a).''.
  (b) Temporary Limitation On Payments.--Section 344(b)(2) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(42 U.S.C. 655 note) is amended--
          (1) in subparagraph (B)--
                  (A) by inserting ``or a system described in 
                subparagraph (C)'' after ``to a State''; and
                  (B) by inserting ``or system'' after ``for the 
                State''; and
          (2) in subparagraph (C), by striking ``Act,'' and all that 
        follows and inserting ``Act, and among systems that have been 
        approved by the Secretary to receive enhanced funding pursuant 
        to the Family Support Act of 1988 (Public Law 100-485; 102 
        Stat. 2343) for the purpose of developing a system that meets 
        the requirements of sections 454(16) (as in effect on and after 
        September 30, 1995) and 454A, including systems that have 
        received funding for such purpose pursuant to a waiver under 
        section 1115(a), which shall take into account--
                          ``(i) the relative size of such State and 
                        system caseloads under part D of title IV of 
                        the Social Security Act; and
                          ``(ii) the level of automation needed to meet 
                        the automated data processing requirements of 
                        such part.''.

SEC. 326. ADDITIONAL TECHNICAL AMENDMENTS.

  (a) Elimination of Surplusage.--Section 466(c)(1)(F) of the Social 
Security Act (42 U.S.C. 666(c)(1)(F)) is amended by striking ``of 
section 466''.
  (b) Correction of Ambiguous Amendment.--Section 344(a)(1)(F) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(Public Law 104-193; 110 Stat. 2234) is amended by inserting ``the 
first place such term appears'' before ``and all that follows''.
  (c) Correction of Erroneously Drafted Provision.--Section 215 of the 
Department of Health and Human Services Appropriations Act, 1997, (as 
contained in section 101(e) of the Omnibus Consolidated Appropriations 
Act, 1997) is amended to read as follows:
  ``Sec. 215. Sections 452(j) and 453(o) of the Social Security Act (42 
U.S.C. 652(j) and 653(o)), as amended by section 345 of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (Public 
Law 104-193; 110 Stat. 2237) are eachamended by striking `section 
457(a)' and inserting `a plan approved under this part'. Amounts 
available under such sections 452(j) and 453(o) shall be calculated as 
though the amendments made by this section were effective October 1, 
1995.''.
  (d) Elimination of Surplusage.--Section 456(a)(2)(B) of the Social 
Security Act (42 U.S.C. 656(a)(2)(B)) is amended by striking ``, and'' 
and inserting a period.
  (e) Correction of Date.--Section 466(a)(1)(B) of the Social Security 
Act (42 U.S.C. 666(a)(1)(B)) is amended by striking ``October 1, 1996'' 
and inserting ``January 1, 1994''.

SEC. 327. EFFECTIVE DATE.

  (a) In General.--Except as provided in subsection (b), the amendments 
made by this title shall take effect as if included in the enactment of 
title III of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2105).
  (b) Exception.--The amendments made by section 302(b)(2) shall take 
effect as if the amendments had been included in the enactment of 
section 103(a) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2112).

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

              Subtitle A--Eligibility for Federal Benefits

SEC. 401. ALIEN ELIGIBILITY FOR FEDERAL BENEFITS: LIMITED APPLICATION 
                    TO MEDICARE AND BENEFITS UNDER THE RAILROAD 
                    RETIREMENT ACT.

  (a) Limited Application to Medicare.--Section 401(b) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1611(b)) is amended by adding at the end the following:
          ``(3) Subsection (a) shall not apply to any benefit payable 
        under title XVIII of the Social Security Act (relating to the 
        medicare program) to an alien who is lawfully present in the 
        United States as determined by the Attorney General and, with 
        respect to benefits payable under part A of such title, who was 
        authorized to be employed with respect to any wages 
        attributable to employment which are counted for purposes of 
        eligibility for such benefits.''.
  (b) Limited Application to Benefits Under the Railroad Retirement 
Act.--Section 401(b) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(b)) (as amended 
by subsection (a)) is amended by inserting at the end the following:
          ``(4) Subsection (a) shall not apply to any benefit payable 
        under the Railroad Retirement Act of 1974 or the Railroad 
        Unemployment Insurance Act to an alien who is lawfully present 
        in the United States as determined by the Attorney General or 
        to an alien residing outside the United States.''.

SEC. 402. EXCEPTIONS TO BENEFIT LIMITATIONS: CORRECTIONS TO REFERENCE 
                    CONCERNING ALIENS WHOSE DEPORTATION IS WITHHELD.

  Sections 402(a)(2)(A)(iii), 402(b)(2)(A)(iii), 403(b)(1)(C), 
412(b)(1)(C), and 431(b)(5) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(A)(iii), 
1612(b)(2)(A)(iii), 1613(b)(1)(C), 1622(b)(1)(C), and 1641(b)(5)) are 
each amended by striking ``section 243(h) of such Act'' each place it 
appears and inserting ``section 243(h) of such Act (as in effect 
immediately before the effective date of section 307 of division C of 
Public Law 104-208) or section 241(b)(3) of such Act (as amended by 
section 305(a) of division C of Public Law 104-208)''.

SEC. 403. VETERANS EXCEPTION: APPLICATION OF MINIMUM ACTIVE DUTY 
                    SERVICE REQUIREMENT; EXTENSION TO UNREMARRIED 
                    SURVIVING SPOUSE; EXPANDED DEFINITION OF VETERAN.

  (a) Application of Minimum Active Duty Service Requirement.--Sections 
402(a)(2)(C)(i), 402(b)(2)(C)(i), 403(b)(2)(A), and 412(b)(3)(A) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(8 U.S.C. 1612(a)(2)(C)(i), 1612(b)(2)(C)(i), 1613(b)(2)(A), and 
1622(b)(3)(A)) are each amended by inserting ``and who fulfills the 
minimum active-duty service requirements of section 5303A(d) of title 
38, United States Code'' after ``alienage''.
  (b) Exception Applicable to Unremarried Surviving Spouse.--Section 
402(a)(2)(C)(iii), 402(b)(2)(C)(iii), 403(b)(2)(C), and 412(b)(3)(C) of 
the Personal Responsibility and Work Opportunity Reconciliation Act of 
1996 (8 U.S.C. 1612(a)(2)(C)(iii), 1612(b)(2)(C)(iii), 1613(b)(2)(C), 
and 1622(b)(3)(C)) are each amended by inserting before the period ``or 
the unremarried surviving spouse of an individual described in clause 
(i) or (ii) who is deceased if the marriage fulfills the requirements 
of section 1304 of title 38, United States Code''.
  (c) Expanded Definition of Veteran.--Sections 402(a)(2)(C)(i), 
402(b)(2)(C)(i), 403(b)(2)(A), and 412(b)(3)(A) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1612(a)(2)(C)(i), 1612(b)(2)(C)(i), 1613(b)(2)(A), and 
1622(b)(3)(A)) are each amended by inserting ``, 1101, or 1301, or as 
described in section 107'' after ``section 101''.

SEC. 404. CORRECTION OF REFERENCE CONCERNING CUBAN AND HAITIAN 
                    ENTRANTS.

  Section 403(d) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1613(d)) is amended--
          (1) by striking ``section 501 of the Refugee'' and insert 
        ``section 501(a) of the Refugee''; and
          (2) by striking ``section 501(e)(2)'' and inserting ``section 
        501(e)''.

SEC. 405. NOTIFICATION CONCERNING ALIENS NOT LAWFULLY PRESENT: 
                    CORRECTION OF TERMINOLOGY.

  Section 1631(e)(9) of the Social Security Act (42 U.S.C. 1383(e)(9)) 
and section 27 of the United States Housing Act of 1937, as added by 
section 404 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996, are each amended by striking ``unlawfully 
in the United States'' each place it appears and inserting ``not 
lawfully present in the United States''.

SEC. 406. FREELY ASSOCIATED STATES: CONTRACTS AND LICENSES.

  Sections 401(c)(2)(A) and 411(c)(2)(A) of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(c)(2)(A) 
and 1621(c)(2)(A)) are each amended by inserting before the semicolon 
at the end ``, or to a citizen of a freely associated state, if section 
141 of the applicable compact of free association approved in Public 
Law 99-239 or 99-658 (or a successor provision) is in effect''.

SEC. 407. CONGRESSIONAL STATEMENT REGARDING BENEFITS FOR HMONG AND 
                    OTHER HIGHLAND LAO VETERANS.

  (a) Findings.--The Congress makes the following findings:
          (1) Hmong and other Highland Lao tribal peoples were 
        recruited, armed, trained, and funded for military operations 
        by the United States Department of Defense, Central 
        Intelligence Agency, Department of State, and Agency for 
        International Development to further United States national 
        security interests during the Vietnam conflict.
          (2) Hmong and other Highland Lao tribal forces sacrificed 
        their own lives and saved the lives of American military 
        personnel by rescuing downed American pilots and aircrews and 
        by engaging and successfully fighting North Vietnamese troops.
          (3) Thousands of Hmong and other Highland Lao veterans who 
        fought in special guerilla units on behalf of the United States 
        during the Vietnam conflict, along with their families, have 
        been lawfully admitted to the United States in recent years.
          (4) The Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (Public Law 104-193), the new 
        national welfare reform law, restricts certain welfare benefits 
        for noncitizens of the United States and the exceptions for 
        noncitizen veterans of the Armed Forces of the United States do 
        not extend to Hmong veterans of the Vietnam conflict era, 
        making Hmong veterans and their families receiving certain 
        welfare benefits subject to restrictions despite their military 
        service on behalf of the United States.
  (b) Congressional Statement.--It is the sense of the Congress that 
Hmong and other Highland Lao veterans who fought on behalf of the Armed 
Forces of the United States during the Vietnam conflict and have 
lawfully been admitted to the United States for permanent residence 
should be considered veterans for purposes of continuing certain 
welfare benefits consistent with the exceptions provided other 
noncitizen veterans under the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996.

                     Subtitle B--General Provisions

SEC. 411. DETERMINATION OF TREATMENT OF BATTERED ALIENS AS QUALIFIED 
                    ALIENS; INCLUSION OF ALIEN CHILD OF BATTERED PARENT 
                    AS QUALIFIED ALIEN.

  (a) Determination of Status by Agency Providing Benefits.--Section 
431 of the Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996 (8 U.S.C. 1641) is amended in subsections (c)(1)(A) and 
(c)(2)(A) by striking ``Attorney General, which opinion is not subject 
to review by any court)'' each place it appears and inserting ``agency 
providing such benefits)''.
  (b) Guidance Issued by Attorney General.--Section 431(c) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(8 U.S.C. 1641(c)) is amended by adding at the end the following new 
undesignated paragraph:
   ``After consultation with the Secretaries of Health and Human 
Services, Agriculture, and Housing and Urban Development, the 
Commissioner of Social Security, and with the heads of such Federal 
agencies administering benefits as the Attorney General considers 
appropriate, the Attorney General shall issue guidance (in the Attorney 
General's sole and unreviewable discretion) for purposes of this 
subsection and section 421(f), concerning the meaning of the terms 
`battery' and `extreme cruelty', and the standards and methods to be 
used for determining whether a substantial connection exists between 
battery or cruelty suffered and an individual's need for benefits under 
a specific Federal, State, or local program.''.
  (c) Inclusion of Alien Child of Battered Parent as Qualified Alien.--
Section 431(c) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1641(c)) is amended--
          (1) at the end of paragraph (1)(B)(iv) by striking ``or'';
          (2) at the end of paragraph (2)(B) by striking the period and 
        inserting ``; or''; and
          (3) by inserting after paragraph (2)(B) and before the last 
        sentence of such subsection the following new paragraph:
          ``(3) an alien child who--
                  ``(A) resides in the same household as a parent who 
                has been battered or subjected to extreme cruelty in 
                the United States by that parent's spouse or by a 
                member of the spouse's family residing in the same 
                household as the parent and the spouse consented or 
                acquiesced to such battery or cruelty, but only if (in 
                the opinion of the agency providing such benefits) 
                there is a substantial connection between such battery 
                or cruelty and the need for the benefits to be 
                provided; and
                  ``(B) who meets the requirement of subparagraph (B) 
                of paragraph (1).''.
  (d) Inclusion of Alien Child of Battered Parent Under Special Rule 
for Attribution of Income.--Section 421(f)(1)(A) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1631(f)(1)(A)) is amended--
          (1) at the end of clause (i) by striking ``or''; and
          (2) by striking ``and the battery or cruelty described in 
        clause (i) or (ii)'' and inserting ``or (iii) the alien is a 
        child whose parent (who resides in the same household as the 
        alien child) has been battered or subjected to extreme cruelty 
        in the United States by that parent's spouse, or by a member of 
        the spouse's family residing in the same household as the 
        parent and the spouse consented to, or acquiesced in, such 
        battery or cruelty, and the battery or cruelty described in 
        clause (i), (ii), or (iii)''.

SEC. 412. VERIFICATION OF ELIGIBILITY FOR BENEFITS.

  (a) Regulations and Guidance.--Section 432(a) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1642(a)) is amended--
          (1) by inserting at the end of paragraph (1) the following: 
        ``Not later than 90 days after the date of the enactment of the 
        Welfare Reform Technical Corrections Act of 1997, the Attorney 
        General of the United States, after consultation with the 
        Secretary of Health and Human Services, shall issue interim 
        verification guidance.''; and
          (2) by adding after paragraph (2) the following new 
        paragraph:
  ``(3) Not later than 90 days after the date of the enactment of the 
Welfare Reform Technical Corrections Act of 1997, the Attorney General 
shall promulgate regulations which set forth the procedures by which a 
State or local government can verify whether an alien applying for a 
State or local public benefit is a qualified alien, a nonimmigrant 
under the Immigration and Nationality Act, or an alien paroled into the 
United States under section 212(d)(5) of the Immigration and 
Nationality Act for less than 1 year, for purposes of determining 
whether the alien is ineligible for benefits under section 411 of this 
Act.''.
  (b) Disclosure of Information for Verification.--Section 384(b) of 
the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 
(division C of Public Law 104-208) is amended by adding after paragraph 
(4) the following new paragraph:
          ``(5) The Attorney General is authorized to disclose 
        information, to Federal, State, and local public and private 
        agencies providing benefits, to be used solely in making 
        determinations of eligibility for benefits pursuant to section 
        431(c) of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996.''.

SEC. 413. QUALIFYING QUARTERS: DISCLOSURE OF QUARTERS OF COVERAGE 
                    INFORMATION; CORRECTION TO ASSURE THAT CREDITING 
                    APPLIES TO ALL QUARTERS EARNED BY PARENTS BEFORE 
                    CHILD IS 18.

  (a) Disclosure of Quarters of Coverage Information.--Section 435 of 
the Personal Responsibility and Work Opportunity Reconciliation Act of 
1996 (8 U.S.C. 1645) is amended by adding at the end the following: 
``Notwithstanding section 6103 of the Internal Revenue Code of 1986, 
the Commissioner of Social Security is authorized to disclose quarters 
of coverage information concerning an alien and an alien's spouse or 
parents to a government agency for the purposes of this title.''.
  (b) Correction to Assure that Crediting Applies to All Quarters 
Earned by Parents Before Child is 18.--Section 435(1) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1645(1)) is amended by striking ``while the alien was under age 
18,'' and inserting ``before the date on which the alien attains age 
18,''.

SEC. 414. STATUTORY CONSTRUCTION: BENEFIT ELIGIBILITY LIMITATIONS 
                    APPLICABLE ONLY WITH RESPECT TO ALIENS PRESENT IN 
                    THE UNITED STATES.

  Section 433 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1643) is amended--
          (1) by redesignated subsections (b) and (c) as subsections 
        (c) and (d); and
          (2) by adding after subsection (a) the following new 
        subsection:
  ``(b) Benefit Eligibility Limitations Applicable Only With Respect to 
Aliens Present in the United States.--Notwithstanding any other 
provision of this title, the limitations on eligibility for benefits 
under this title shall not apply to eligibility for benefits of aliens 
who are not residing, or present, in the United States with respect 
to--
          ``(1) wages, pensions, annuities, and other earned payments 
        to which an alien is entitled resulting from employment by, or 
        on behalf of, a Federal, State, or local government agency 
        which was not prohibited during the period of such employment 
        or service under section 274A or other applicable provision of 
        the Immigration and Nationality Act; or
          ``(2) benefits under laws administered by the Secretary of 
        Veterans Affairs.''.

Subtitle C--Miscellaneous Clerical and Technical Amendments; Effective 
                                  Date

SEC. 421. CORRECTING MISCELLANEOUS CLERICAL AND TECHNICAL ERRORS.

  (a) Information Reporting Under Title IV of the Social Security 
Act.--Effective July 1, 1997, section 408 of the Social Security Act 
(42 U.S.C. 608), as amended by section 103, and as in effect pursuant 
to section 116, of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996, and as amended by section 106(e) of this 
Act, is amended by adding at the end the following new subsection:
  ``(f) State Required To Provide Certain Information.--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 not lawfully present in the United 
States.''.
  (b) Miscellaneous Clerical and Technical Corrections.--
          (1) Section 411(c)(3) of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 (8 U.S.C. 1621(c)(3)) is 
        amended by striking ``4001(c)'' and inserting ``401(c)''.
          (2) Section 422(a) of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 (8 U.S.C. 1632(a)) is 
        amended by striking ``benefits (as defined in section 
        412(c)),'' and inserting ``benefits,''.
          (3) Section 412(b)(1)(C) of the Personal Responsibility and 
        Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
        1622(b)(1)(C)) is amended by striking ``with-holding'' and 
        inserting ``withholding''.
          (4) The subtitle heading for subtitle D of title IV of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996 is amended to read as follows:

                  ``Subtitle D--General Provisions''.

          (5) The subtitle heading for subtitle F of title IV of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996 is amended to read as follows:

 ``Subtitle F--Earned Income Credit Denied to Unauthorized Employees''.

          (6) Section 431(c)(2)(B) of the Personal Responsibility and 
        Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
        1641(c)(2)(B)) is amended by striking ``clause (ii) of 
        subparagraph (A)'' and inserting ``subparagraph (B) of 
        paragraph (1)''.
          (7) Section 431(c)(1)(B) of the Personal Responsibility and 
        Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
        1641(c)(1)(B)) is amended--
                  (A) in clause (iii) by striking ``, or'' and 
                inserting ``(as in effect prior to April 1, 1997),''; 
                and
                  (B) by adding after clause (iv) the following new 
                clause:
                          ``(v) cancellation of removal pursuant to 
                        section 240A(b)(2) of such Act;''.

SEC. 422. EFFECTIVE DATE.

  Except as otherwise provided, the amendments made by this title shall 
be effective as if included in the enactment of title IV of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 
1996.

                       TITLE V--CHILD PROTECTION

SEC. 501. CONFORMING AND TECHNICAL AMENDMENTS RELATING TO CHILD 
                    PROTECTION.

  (a) Methods Permitted for Conduct of Study of Child Welfare.--Section 
429A(a) of the Social Security Act (42 U.S.C. 628b(a)) is amended by 
inserting ``(directly, or by grant, contract, or interagency 
agreement)'' after ``conduct''.
  (b) Redesignation of Paragraph.--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 (17);
          (2) by striking the period at the end of paragraph (18) (as 
        added by section 1808(a) of the Small Business Job Protection 
        Act of 1996 (Public Law 104-188; 110 Stat. 1903)) and inserting 
        ``; and''; and
          (3) by redesignating paragraph (18) (as added by section 
        505(3) of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
        2278)) as paragraph (19).

SEC. 502. ADDITIONAL TECHNICAL AMENDMENTS RELATING TO CHILD PROTECTION.

  (a) Part B Amendments.--
          (1) In general.--Part B of title IV of the Social Security 
        Act (42 U.S.C. 620-635) is amended--
                  (A) in section 422(b)--
                          (i) by striking the period at the end of the 
                        paragraph (9) (as added by section 554(3) of 
                        the Improving America's Schools Act of 1994 
                        (Public Law 103-382; 108 Stat. 4057)) and 
                        inserting a semicolon;
                          (ii) by redesignating paragraph (10) as 
                        paragraph (11); and
                          (iii) by redesignating paragraph (9), as 
                        added by section 202(a)(3) of the Social 
                        Security Act Amendments of 1994 (Public Law 
                        103-432, 108 Stat. 4453), as paragraph (10);
                  (B) in sections 424(b) and 425(a), by striking 
                ``422(b)(9)'' each place it appears and inserting 
                ``422(b)(10)''; and
                  (C) by transferring section 429A (as added by section 
                503 of the Personal Responsibility and Work Opportunity 
                Reconciliation Act of 1996 (Public Law 104-193; 110 
                Stat. 2277)) to the end of subpart 1.
          (2) Clarification of conflicting amendments.--Section 
        204(a)(2) of the Social Security Act Amendments of 1994 (Public 
        Law 103-432; 108 Stat. 4456) is amended by inserting ``(as 
        added by such section 202(a))'' before ``and inserting''.
  (b) Part E Amendments.--Section 472(d) of the Social Security Act (42 
U.S.C. 672(d)) is amended by striking ``422(b)(9)'' and inserting 
``422(b)(10)''.

SEC. 503. EFFECTIVE DATE.

  The amendments made by this title shall take effect as if included in 
the enactment of title V of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
2277).

                          TITLE VI--CHILD CARE

SEC. 601. CONFORMING AND TECHNICAL AMENDMENTS RELATING TO CHILD CARE.

  (a) Funding.--Section 418(a) of the Social Security Act (42 U.S.C. 
618(a)) is amended--
          (1) in paragraph (1)--
                  (A) in the matter preceding subparagraph (A), by 
                inserting ``the greater of'' after ``equal to'';
                  (B) in subparagraph (A)--
                          (i) by striking ``the sum of'';
                          (ii) by striking ``amounts expended'' and 
                        inserting ``expenditures''; and
                          (iii) by striking ``section--'' and all that 
                        follows and inserting ``subsections (g) and (i) 
                        of section 402 (as in effect before October 1, 
                        1995); or'';
                  (C) in subparagraph (B)--
                          (i) by striking ``sections'' and inserting 
                        ``subsections''; and
                          (ii) by striking the semicolon at the end and 
                        inserting a period; and
                  (D) in the matter following subparagraph (B), by 
                striking ``whichever is greater.''; and
          (2) in paragraph (2)--
                  (A) by striking subparagraph (B) and inserting the 
                following:
                  ``(B) Allotments to states.--The total amount 
                available for payments to States under this paragraph, 
                as determined under subparagraph (A), shall be allotted 
                among the States based on the formula used for 
                determining the amount of Federal payments to each 
                State under section 403(n) (as in effect before October 
                1, 1995).'';
                  (B) by striking subparagraph (C) and inserting the 
                following:
                  ``(C) Federal matching of state expenditures 
                exceeding historical expenditures.--The Secretary shall 
                pay to each eligible State for a fiscal year an amount 
                equal to the lesser of the State's allotment under 
                subparagraph (B) or the Federal medical assistance 
                percentage for the State for the fiscal year (as 
                defined in section 1905(b), as such section was in 
                effect on September 30, 1995) of so much of the State's 
                expenditures for child care in that fiscal year as 
                exceed the total amount of expenditures by the State 
                (including expenditures from amounts made available 
                from Federal funds) in fiscal year 1994 or 1995 
                (whichever is greater) for the programs described in 
                paragraph (1)(A).''; and
                  (C) in subparagraph (D)(i)--
                          (i) by striking ``amounts under any grant 
                        awarded'' and inserting ``any amounts 
                        allotted''; and
                          (ii) by striking ``the grant is made'' and 
                        inserting ``such amounts are allotted''.
  (b) Data Used To Determine Historic State Expenditures.--Section 
418(a) of the Social Security Act (42 U.S.C. 618(a)), is amended by 
adding at the end the following:
          ``(5) Data used to determine state and federal shares of 
        expenditures.--In making the determinations concerning 
        expenditures required under paragraphs (1) and (2)(C), the 
        Secretary shall use information that was reported by the State 
        on ACF Form 231 and available as of the applicable dates 
        specified in clauses (i)(I), (ii), and (iii)(III) of section 
        403(a)(1)(D).''.
  (c) Definition of State.--Section 418(d) of the Social Security Act 
(42 U.S.C. 618(d)) is amended by striking ``or'' and inserting ``and''.

SEC. 602. ADDITIONAL CONFORMING AND TECHNICAL AMENDMENTS.

  The Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9858 et seq.) is amended--
          (1) in section 658E(c)(2)(E)(ii), by striking ``tribal 
        organization'' and inserting ``tribal organizations'';
          (2) in section 658K(a)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (B)--
                                  (I) by striking clause (iv) and 
                                inserting the following:
                          ``(iv) whether the head of the family unit is 
                        a single parent;'';
                                  (II) in clause (v)--
                                          (aa) in the matter preceding 
                                        subclause (I), by striking 
                                        ``including the amount obtained 
                                        from (and separately identi- 
                                        fied)--'' and inserting 
                                        ``including--''; and
                                          (bb) by striking subclause 
                                        (II) and inserting the 
                                        following:
                                  ``(II) cash or other assistance 
                                under--
                                          ``(aa) the temporary 
                                        assistance for needy families 
                                        program under part A of title 
                                        IV of the Social Security Act 
                                        (42 U.S.C. 601 et seq.); and
                                          ``(bb) a State program for 
                                        which State spending is counted 
                                        toward the maintenance of 
                                        effort requirement under 
                                        section 409(a)(7) of the Social 
                                        Security Act (42 U.S.C. 
                                        609(a)(7));''; and
                                  (III) in clause (x), by striking 
                                ``week'' and inserting ``month''; and
                          (ii) by striking subparagraph (D) and 
                        inserting the following:
                  ``(D) Use of samples.--
                          ``(i) Authority.--A State may comply with the 
                        requirement to collect the information 
                        described in subparagraph (B) through the use 
                        of disaggregated case record information on a 
                        sample of families selected 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 deems necessary to 
                        produce statistically valid samples of the 
                        information described in subparagraph (B). The 
                        Secretary may develop and implement procedures 
                        for verifying the quality of data submitted by 
                        the States.''; and
                  (B) in paragraph (2)--
                          (i) in the heading, by striking ``Biannual'' 
                        and inserting ``Annual''; and
                          (ii) by striking ``6'' and inserting ``12'';
          (3) in section 658L, by striking ``1997'' and inserting 
        ``1998'';
          (4) in section 658O(c)(6)(C), by striking ``(A)'' and 
        inserting ``(B)''; and
          (5) in section 658P(13), by striking ``or'' and inserting 
        ``and''.

SEC. 603. REPEALS.

  (a) Child Development Associate Scholarship Assistance Act of 1985.--
Title VI of the Human Services Reauthorization Act of 1986 (42 U.S.C. 
10901-10905) is repealed.
  (b) State Dependent Care Development Grants Act.--Subchapter E of 
chapter 8 of subtitle A of title VI of the Omnibus Budget 
Reconciliation Act of 1981 (42 U.S.C. 9871-9877) is repealed.
  (c) Programs of National Significance.--Title X of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8001 et seq.) is amended--
          (1) in section 10413(a), by striking paragraph (4);
          (2) in section 10963(b)(2), by striking subparagraph (G); and
          (3) in section 10974(a)(6), by striking subparagraph (G).
  (d) Native Hawaiian Family-Based Education Centers.--Section 9205 of 
the Native Hawaiian Education Act (20 U.S.C. 7905) is repealed.

SEC. 604. EFFECTIVE DATES.

  (a) In General.--Except as provided in subsection (b), this title and 
the amendments made by this title shall take effect as if included in 
the enactment of title VI of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
2278).
  (b) Exceptions.--The amendment made by section 601(a)(2)(B) and the 
repeal made by section 603(d) shall each take effect on October 1, 
1997.

                            I. INTRODUCTION

                          A. Purpose And Scope

    Last year, Congress passed and President Clinton signed 
legislation (Public Law 104-193) that substantially reformed 
the nation's welfare policy. The scope of the welfare reform 
legislation was exceptionally broad. Most of the social 
programs under the Committee's jurisdiction were amended, often 
substantially. The Aid to Families with Dependent Children 
(AFDC) program was completely eliminated and replaced by the 
Temporary Assistance for Needy Families (TANF) program.
    Because of the broad scope of the original legislation, and 
because other legislation, notably the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 (division C of 
Public Law 104-208), contained provisions affecting the welfare 
reform legislation, it was anticipated that both the 
Administration and Congress would need time to carefully study 
the texts of the various bills and to prepare legislation that 
would correct drafting errors, amend incompatibilities between 
bills, clarify ambiguous language, and make minor changes that 
would better achieve the purposes of the original legislation.
    Thus, the purpose of the technical corrections bill (H.R. 
1048) is to make technical and conforming amendments in the 
welfare reform legislation so that the provisions achieve the 
underlying policy intent of Congress. The technical corrections 
bill contains provisions applying to all the programs amended 
by the welfare reform bill, including: the TANF program, the 
Supplemental Security Income program, the Child Support 
Enforcement program, the adoption and foster care program, 
welfare policy for noncitizens, and child care programs under 
Title IV-A of the Social Security Act.

                 B. Background and Need for Legislation

    Section 113 of last year's welfare reform legislation 
required the Secretary of Health and Human Services and the 
Commissioner of Social Security to submit to the Committee 
within 90 days of enactment a legislative proposal for 
technical and conforming amendments ``to bring the law into 
conformity with the policy embodied'' in the legislation. The 
Committee, in consultation with the Administration and the 
Senate Finance Committee, reviewed the proposal submitted by 
the Secretary last December. The Administration's proposal 
became the basis for the formulation of the technical 
corrections bill.
    In addition to Administration recommendations, the 
Subcommittee solicited suggestions for technical amendments 
from interested individuals and groups. After receiving the 
Administration's proposal in December, the Subcommittee 
reviewed both the Administration's recommendations and scores 
of other proposals on a bipartisan basis. Only those judged to 
be of a technical nature and that were agreed to by both 
Republicans and Democrats in the House and Senate and by the 
Administration were included in the Committee bill.
    More than 200 technical corrections and minor amendments 
comprise the Committee bill. If enacted, the legislation will 
clear up numerous inconsistencies in the statutes, clarify 
statutory language, eliminate conflicting provisions across the 
various titles of the Social Security Act and between the 
Social Security Act and other federal statutes, and create 
minor changes in legislative provisions that will facilitate 
the policy underlying the original legislation.

                         C. Legislative History

Committee bill

    H.R. 1048 was introduced on March 12, 1997 by Chairman Shaw 
and Mr. Levin of the Subcommittee on Human Resources. The full 
Committee on Ways and Means considered the technical 
corrections legislation on April 23, 1997 and ordered it 
favorably reported, as amended, on Wednesday, April 23, 1997. 
The Subcommittee on Human Resources considered H.R. 1048 and 
ordered it favorably reported, as amended, on April 9, 1997.

Legislative hearings

     The Subcommittee on Human Resources of the Committee on 
Ways and Means held a hearing February 26, 1997 on technical 
amendments to the welfare reform law (Public Law 104-193) 
passed in 1996.

                     II. EXPLANATION OF PROVISIONS

   Title I--Block Grants for Temporary Assistance for Needy Families

         1. Amendment of the Social Security Act (Section 101)

Present law

    No provision.

Explanation of provision

     Unless otherwise indicated, the amendments described in 
the technical corrections bill are amendments of the Social 
Security Act as amended by the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996.

Reason for change

     This provision is included to clarify that amendments in 
the technical corrections bill, unless otherwise noted, are 
amendments to the Social Security Act.

Effective date

    Upon enactment of the technical corrections bill.

              2. Eligible States; State Plan (Section 102)

Present law

    States are required to submit a State plan to the Secretary 
every 2 years to be eligible for grants. States must submit 
plans before October 1 of the year in which the plan is due. 
The document must outline how the State intends to conduct its 
benefit program; serve all political subdivisions in the State; 
provide parents with job preparation, work, and support 
services; require parents or caretakers receiving assistance to 
engage in work after, at most, 24 months of benefits; take such 
reasonable steps as the State deems necessary to restrict the 
disclosure of information about individuals and families; 
establish goals and take action to prevent and reduce the 
incidence of nonmarital births; and provide education and 
training programs for public officials on statutory rape. The 
document must also contain several certifications by the 
governor, including that: the State will operate a child 
support enforcement program; the State will operate a foster 
care and adoption program; a given State agency will administer 
and supervise the program; Indians will be provided with 
equitable access to assistance; and the State will have 
standards and procedures to ensure against program fraud and 
abuse. States must also make a summary of the document 
available to the public. (Section 402)

Explanation of provision

    (a) Later Deadline for Submission of State Plans.--Gives 
States an additional quarter to submit their biennial State 
plan.
    (b) Clarification of Scope of Work Provisions.--Requires 
States to describe how they intend to require recipients to 
work (as defined by the State) within 2 years, consistent with 
the exemption for families with children under age 6 that 
cannot find child care.
    (c) Correction of Cross-Reference.--Corrects a cross-
reference to the definition of ``illegitimacy ratio''.
    (d) Notification of Plan Amendments.--Requires States to 
report all changes in their State plans to the Secretary within 
30 days. Also requires States to make available to the public a 
summary of any plan amendment.

Reason for change

    (a) Later Deadline for Submission of State Plans.--In the 
past, many States have needed some extra time to submit plans, 
especially when approval by the State legislature is required. 
Allowing States an extra quarter to submit a biennial plan is a 
reasonable approach to this problem.
    (b) Clarification of Scope of Work Provisions.--The Act did 
not contain a clear provision requiring States to observe the 
exemption for single-parent families with children under age 6 
that cannot find child care when they planned their work 
program for adults who had received benefits for at least 2 
years. This provision ensures that States observe the under-
age-6 exemption.
    (c) Correction of Cross-Reference.--Correcting the cross-
reference promotes internal consistency in the statute and 
improves readability.
    (d) Notification of Plan Amendments.--Congress and the 
public have a right to know how Federal tax dollars are being 
spent. The Act did not require States to inform the Federal 
government of plan changes, nor did it require States to inform 
citizens of program changes. This amendment fixes both 
problems.

Effective date

    August 22, 1996.

                   3. grants to states (section 103)

Present law

    States are provided with entitlement grant funds for the 
fiscal years 1996 through 2002. Each State's grant is based on 
the Federal funds it received under the former programs of Aid 
to Families with Dependent Children, Job Opportunities and 
Basic Skills (JOBS), and Emergency Assistance in 1994, 1995, or 
the average of the years 1992 through 1994. Up to five States 
(defined to include Puerto Rico, Guam, the Virgin Islands and 
American Samoa) are also eligible to receive bonus grants of 
$20 million per year for achieving the largest decreases, 
compared to other States, in the number of out-of-wedlock 
births (according to the most recently available 2-year data) 
while decreasing their abortion rate below the Fiscal Year 1995 
level. (If fewer than five States qualify, the bonus is 
increased to $25 million.) States that have low Federal welfare 
funding per poor person and a population growth rate that is 
above the national average are also entitled to additional 
funding in the years 1998 through 2001. States that achieve 
high performance in meeting the goals of the program--providing 
assistance to needy families with children, ending dependence 
on public welfare benefits, preventing and reducing nonmarital 
births, and encouraging the formation and maintenance of 2-
parent families--are eligible for cash bonuses. The Secretary, 
in consultation with others, is directed to establish a formula 
for measuring performance. Performance scores are to determine 
bonus awards, funded by an entitlement appropriation of $1 
billion for five years, 1999 through 2003. States that have 
high unemployment (at least 6.5 percent and up 10 percent or 
more from the comparable period in at least one of the two 
preceding years) or a substantial increase in food stamp 
recipients (10 percent above same period of Fiscal Year 1994 or 
Fiscal Year 1995, assuming the new law had been in effect 
throughout Fiscal Year 1994) are entitled to matching grants 
out of a contingency fund, provided their State spending under 
the TANF program exceeds 100% of its ``historic'' level. 
Historic spending level is Fiscal Year 1994 State spending on 
AFDC, JOBS, Emergency Assistance, and AFDC-related child care. 
Monthly payments from the contingency fund cannot exceed \1/
12\th of 20 percent of the State TANF grant. (Section 403)

Explanation of provision

     (a) Bonus for Decrease in Illegitimacy Modified to Take 
Account of Certain Territories.--Modifies the bonus for 
reducing illegitimacy for the territories (except Puerto Rico) 
by setting the bonus amount at 25 percent of their public 
assistance funding ceilings; Puerto Rico continues to be 
treated like a State. In years in which Guam, the Virgin 
Islands, or American Samoa earns the illegitimacy reduction 
bonus, up to five States may still receive bonuses in addition 
to the qualifying territories. However, amounts awarded to 
States that qualify for the bonus are adjusted to keep the 
total of all bonuses paid to States and territories at $100 
million. Also provides that the ranking of the States and 
Puerto Rico is not affected by the size of the reduction in 
illegitimacy ratio achieved by one of the three territories.
    (b) Computation of Bonus Based on Ratios of Out-of-Wedlock 
Births to All Births Instead of Numbers of Out-of-Wedlock 
Births.--Changes the basis of the calculation of nonmarital 
births for the illegitimacy reduction bonus from the number of 
nonmarital births to the ratio of nonmarital births to all 
births and in a new clause defines the term ``illegitimacy 
ratio''.
    (c) Use of Calendar Year Data Instead of Fiscal Year Data 
in Calculating Bonus for Decrease in Illegitimacy Ratio.--
Changes the time period for the calculation of the illegitimacy 
reduction bonus from fiscal years to calendar years for which 
the most recent data are available because fiscal year data is 
not available in most States.
    (d) Correction of Heading.--Corrects a heading by changing 
an incorrect reference from ``1997'' to ``1998''.
    (e) Clarification of Contingency Fund Provision.--The 
contingency fund operates in two stages: 1) States get an 
advance payment of 1/12th of 20 percent of their block grant 
every month that they meet the trigger and then for 1 month 
after they no longer meet the trigger; and 2) an annual 
reconciliation is performed in which States are required to 
remit money they did not deserve, usually because either they 
did not achieve the 100 percent maintenance of effort 
requirement or they financed more of the extra spending from 
contingency fund advances than they should have. The primary 
change in the full committee amendment is how the annual 
reconciliation is conducted. Generally, countable expenditures 
are subtracted from historic state expenditures to compute a 
new measure called reimbursable expenditures. Countable 
expenditures are defined as qualified state expenditures (as 
defined in the Act) under the TANF program (minus spending on 
child care) plus expenditures made by States from contingency 
fund monthly advances. Historic state expenditures are the same 
as under the Act except that spending on AFDC-related child 
care is not counted. The amount to which States are entitled 
under the contingency fund equals reimbursable expenditures 
times the State medicaid match rate times the number of months 
in the year during which States were eligible divided by 12. 
This formula provides States with a Federal match on the amount 
of money they spent under the TANF program out of State funds 
that exceed the State's historic State expenditures prorated 
for the number of months during the year the State was eligible 
for contingency payments. This section also contains a slight 
modification of language to clarify that the Medicaid matching 
rate formula itself, and not the values for each State produced 
by the formula, is maintained as it existed on September 30, 
1995.
    (f) Administration of Contingency Fund Transferred to the 
Secretary of HHS.--Under the Act, administration of the 
contingency fund was given to the Secretary of Treasury; this 
amendment transfers administration to the Secretary of HHS.

Reason for change

    (a) Bonus for Decrease in Illegitimacy Modified to Take 
Account of Certain Territories.--This amendment promotes equity 
between the States and territories by allowing territories to 
receive the bonus while still allowing up to five States 
(counting Puerto Rico as a State) to receive the bonus.
    (b) Computation of Bonus Based on Ratios of Out-of-Wedlock 
Births to All Births Instead of Numbers of Out-of-Wedlock 
Births.--Basing the illegitimacy calculation on the number of 
nonmarital births suffers from the flaw that States could 
receive a bonus by virtue of decreased population. Clearly, the 
ratio of illegitimate births to total births is a preferable 
measure because it is relatively independent of population 
changes.
    (c) Use of Calendar Year Data Instead of Fiscal Year Data 
in Calculating Bonus for Decrease in Illegitimacy Ratio.--
Fiscal year data on births are unavailable in most States, 
making the calendar year data the only available source of 
information on births in most States.
    (d) Correction of Heading.--Correcting the heading improves 
the accuracy of the statute and the usefulness of the heading.
    (e) Clarification of Contingency Fund Provision.--The new 
method of calculating the State payment in the annual 
reconciliation was designed by the Committee to reduce 
complexity, eliminate multiple definitions of maintenance of 
effort, and to reduce confusion about the treatment of child 
care expenditures. In addition, because the text of the Act was 
unclear on whether the formula for calculating the Medicaid 
match rate formula itself or the value produced by the formula 
for each State was frozen on September 30, 1995, the amendment 
clarifies that it is the former that is frozen. Thus, the 
specific values produced by the formula can change over time.
    (f) Administration of Contingency Fund Transferred to the 
Secretary of HHS.--Because the Secretary of Health and Human 
Services administers virtually all the other provisions of the 
Act, giving her jurisdiction over the contingency fund promotes 
consistency and facilitates administration and accountability.

Effective date

    August 22, 1996.

                     4. use of grants (section 104)

Present law

    States may use funds from their block grant in any manner 
that is reasonably calculated to assist needy families with 
children, provide parents with job preparation, work and 
support services, reduce welfare dependency, reduce nonmarital 
births, or increase the incidence of children living in 2-
parent families. Funds may also be spent for any purpose that 
was authorized under the former Aid to Families with Dependent 
Children program or the former JOBS program (as they were in 
effect on September 30, 1995). Not more than 15 percent of the 
grant may be used for administration, not including 
expenditures on information technology and computerization 
needed for tracking and monitoring. Under certain 
circumstances, States may transfer up to 30 percent of their 
funds from the block grant to the Title XX block grant and the 
Child Care and Development Block Grant, but no more than 1/3 of 
total transfers may go to the former. (For every $1 that goes 
to Title XX, $2 must go to the child care block grant.) States 
may reserve funds, without fiscal year limitation, for use in 
the future. (Section 404)

Explanation of provision

    This technical correction gives States the option of 
selecting ``September 30, 1995'' or ''August 21, 1996'' in 
order to allow States to use TANF funds for any purpose that 
was authorized between or prior to these two dates.

Reason for change

    The Act allows States to spend funds for any purpose for 
which States could spend funds under the former Aid to Families 
with Dependent Children program as it was in effect on 
September 30, 1995. But some States received waivers under the 
AFDC program between September 30, 1995 and the date of 
enactment of the Act (August 22, 1996). Authority for States to 
spend money for purposes established by these waivers would be 
lost after the waiver expires because of the September 30, 1995 
effective date, unless extended through August 21, 1996 as 
under this technical change.

Effective date

    August 22, 1996.

              5. mandatory work requirements (section 105)

Present law

    States must engage a certain percentage of their caseload 
in ``work activities,'' which are defined. The percentage 
increases from 25 percent in 1997 to 50 percent in 2002; 
similarly, (except for single parents of a child below age 6) 
the hours of work required increase from 20 hours, eventually 
reaching 30 hours per week; in the case of 2-parent families, 
the participation rate is 75 percent in 1997 and 1998 and 90 
percent in 1999 andthereafter and the hourly work requirement 
is 35 hours per week in all years. The required work participation rate 
of a State is to be reduced if the caseload falls below the Fiscal Year 
1995 level (for reasons other than changes in State eligibility rules 
or new Federal requirements). The participation rate is to be decreased 
by the number of percentage points by which the average annual caseload 
declines from the Fiscal Year 1995 level. If a recipient refuses to 
engage in required work, the State is to reduce the family's benefit at 
least pro rata, reducing benefits in proportion to the number of work 
hours that were not fulfilled, or to end assistance. At State option, 
single parents with children under age 1 can be exempted from the work 
requirements (and omitted from the work participation rate 
calculation). Single heads of household who are under age 20 and have 
not completed high school may meet the work requirement by satisfactory 
attendance at secondary school (or equivalent) or, for the number of 
hours shown above, by participating in education directly related to 
employment or the equivalent. States may not reduce the benefits of 
individuals for work refusal if they have a child under age 6 and 
demonstrate that they cannot obtain needed child care for specified 
reasons. Recipients cannot be employed in a position funded in whole or 
part with Federal funds if any other individual is on layoff from the 
same or any substantially equivalent job or 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 
resulting vacancy with a TANF recipient. Job search may be counted as a 
work activity for only 6 weeks (12 weeks if the State's unemployment 
rate is 50% above the U.S. average). (Section 407)

Explanation of provision

    (a) Family with a Disabled Parent Not Treated as a 2-Parent 
Family.--Changes the calculation of participation rates by 
requiring States to count 2-parent families in which one parent 
is disabled as a 1-parent family; these families would be 
subject to the all-family hourly work requirement, not the 
higher 2-family rule, and would be treated as 1-parent families 
in calculating work participation rates.
    (b) Correction of Heading.--Clarifies a heading by adding 
``And Not Resulting from Changes in State Eligibility 
Criteria''.
    (c) State Option to Include Individuals Receiving 
Assistance Under a Tribal Work Program in Participation Rate 
Calculation.--Clarifies that States may exclude Indians who are 
covered by a tribal work program funded under this part from 
their calculation of participation rates.
    (d) Sharing of 35-Hour Work Requirement Between Parents in 
2-Parent Families.--Allows parents in 2-parent families to 
share the 35-hour work requirement. Clarifies that if 2-parent 
families receive child care, parents must work for a combined 
total of 55 hours.
    (e) Clarification of Effort Required in Work Activities.--
For consistency, occurrences of ``making progress'' are 
replaced with ``participating''.
    (f) Additional Condition Under Which 12 Weeks of Job Search 
May Count as Work.--This has the unfortunate characteristic of 
making it harder for States to qualify additional weeks of job 
search during recessions. The amendment adds the food stamp and 
unemployment rate triggers of the contingency fund as optional 
triggers, giving States three potential triggers for counting 
more job search as work.
    (g) Caretaker Relative of Child Under Age 6 Deemed to be 
Meeting Work Requirements if Engaged in Work for 20 Hours per 
Week.--Provides sole caretaker relatives of children under age 
6 with the right to fulfill the work requirement by working 20 
hours per week rather than 25 or 30 hours, as otherwise 
required after 1998.
    (h) Extension to Married Teens of Rule That Receipt of 
Sufficient Education is Enough to Meet Work Participation 
Requirements.--Permits married teens, like unmarried teens, to 
meet the work participation requirement by satisfactory 
attendance at secondary school or by participating in education 
directly related to work.
    (i) Clarification of Number of Hours of Participation in 
Education Directly Related to Employment That are Required in 
Order for Single Teen Head of Household or Married Teen to be 
Deemed to Be Engaged in Work.--Specifies that teen household 
heads (without a high school diploma) may qualify as 
participating in work if they are engaged in educational 
activities directly related to employment for at least an 
average of 20 hours per week.
    (j) Clarification of Refusal to Work for Purposes of Work 
Penalties for Individuals.--Specifies that the exception to the 
penalty for refusal to work (for parents unable to find care 
for a child under age 6) applies to the refusal to engage in 
work required by the law.

Reason for change

    (a) Family with a Disabled Parent Not Treated as a 2-Parent 
Family.--This amendment allows States to accommodate their work 
participation requirement to the needs of disabled parents.
    (b) Correction of Heading.--Providing more information in a 
heading improves the readability of the statute.
    (c) State Option to Include Individuals Receiving 
Assistance Under a Tribal Work Program in Participation Rate 
Calculation.--Given the likelihood of substantially higher 
unemployment on reservations than in the rest of a State, and 
given the lack of authority States have over work programs on 
reservations, States should not be held accountable for work 
rates among tribes that conduct their own work programs.
    (d) Sharing of 35-Hour Work Requirement Between Parents in 
2-Parent Families.--Not only is it reasonable to allow parents 
in 2-parent families to share the 35-hour work requirement, but 
because both parents are gaining work experience as a result of 
their participation, these families may actually have an 
improved chance of finding full-time employment for at least 
one parent. Parents who share the work requirement and also 
receive child care must meet the rule stipulating that if 2-
parent families receive subsidized child care, the second 
parent must work 20 hours. Thus, the combined number of hours 
for parents who share the 35-hour requirement must be 55 hours 
if they receive subsidized child care.
    (e) Clarification of Effort Required in Work Activities.--
This amendment is made to improve clarity and understanding of 
the statute.
    (f) Additional Condition Under Which 12 Weeks of Job Search 
May Count as Work.--The present law has the unfortunate 
characteristic of making it harder for States to qualify for 
additional weeks of job search during recessions. The amendment 
adds the food stamp and unemployment rate triggers of the 
contingency fund as optional triggers, giving States three 
potential triggers for counting more job search as work. This 
provision allows States to avoid relying on the single trigger 
of the total unemployment rate as the only way to qualify for 6 
additional weeks of job search. The original unemployment 
trigger would have made it more difficult for most States to 
use additional weeks of job search during recessions, precisely 
the time when additional job search is most needed.
    (g) Caretaker Relative of Child Under Age 6 Deemed to be 
Meeting Work Requirements if Engaged in Work for 20 Hours per 
Week.--This provision promotes equity of treatment between sole 
caretaker relatives and single parents who are caring for 
children under age 6.
    (h) Extension to Married Teens of Rule That Receipt of 
Sufficient Education is Enough to Meet Work Participation 
Requirements.--This provision promotes equity of treatment 
between unmarried and married teens with regard to the work 
requirement.
    (i) Clarification of Number of Hours of Participation in 
Education Directly Related to Employment That are Required in 
Order for Single Teen Head of Household or Married Teen to be 
Deemed to Be Engaged in Work.--Extending the 20 hour education 
requirement to teen household heads who are in education 
directly related to work promotes equity between this group and 
teen parents who fulfill their work requirement by attending 
public school.
    (j) Clarification of Refusal to Work for Purposes of Work 
Penalties for Individuals.--This amendment is made to improve 
clarity and understanding of the statute.

Effective date

    August 22, 1996

              6. PROHIBITIONS; REQUIREMENTS (SECTION 106)

Present Law

    The Federal statute places several prohibitions and 
requirements on State use of block grant funds. These include 
no assistance for families without minor children (but 
assistance is allowed for a pregnant woman without a child), 
mandatory reduction of at least 25 percent in benefit payments 
to recipients who refuse to cooperate in establishing paternity 
or obtaining child support, refusal of assistance to families 
that do not assign the child's support rights to the State, 
refusal of assistance to unmarried teen parents who do not 
attend high school and live at home or in an adult-supervised 
setting, no spending on medical services (other than pregnancy 
family planning), no assistance to a family with an adult who 
has received TANF aid (as an adult) for five years (with 
hardship/battered person exceptions allowed for up to 20 
percent of the caseload), denial of assistance for 10 years to 
anyone found to have fraudulently misrepresented residence in 
order to obtain assistance in two or more States, denial of 
assistance to fugitive felons and probation and parole 
violators, denial of assistance for minor children who are 
absent from home for a specified period, and requirements to 
provide Medicaid benefits to families that meet the income and 
resource requirements and other eligibility rules of the AFDC 
program, as in effect July 16, 1996 (with provision for raising 
income standards for price inflation). Medicaid transition 
benefits must be given to TANF families that lose cash aid 
because of employment or increased child support collection. In 
computing the 5-year time limit on benefits, months during 
which recipients lived in Indian tribes and Alaskan villages 
with unemployment of over 50 percent do not count toward the 5-
year limit. The provision requires use of Federal data to 
compile the tribal and village unemployment rates. (Section 
408)

Explanation of povision

    (a) Elimination of Redundant Language; Clarification of 
Home Residence Requirement.--The language restricting use of 
TANF funds to families that include a minor child or a pregnant 
individual is modified to eliminate redundant language; in 
addition, language is added to clarify that the minor child 
provision of this section must be read in a manner that is 
consistent with the provision in another section that children 
may be outside the home for limited periods of time.
    (b) Clarification of Terminology.--For purposes of clarity, 
the word ``leave'' [the TANF program] is replaced in several 
places by the phrase ``ceases to receive assistance under'' 
[the TANF program]. Similarly, the phrase ``the date the family 
leaves the program'' is replaced by the phrase ``such date''.
    (c) Elimination of Space.--An inappropriate space is 
omitted from the statute in the section on the 5-Year Limit.
    (d) Corrections to 5-Year Limit on Assistance.--The base 
period for the 20 percent hardship exemption is clarified by 
allowing States to use either the monthly average caseload from 
the immediately preceding fiscal year or the monthly average 
from the current year. In addition, the provision allowing 
exceptions to the 5-year time limit for certain Indians living 
in areas of 50 percent or higher unemployment is clarified, and 
the definition of ``Indian country'' is clarified by adopting 
the definition in Title 18 of the U.S. Code. This provision 
also removes the requirement that only Federal data can be used 
to establish tribal and village unemployment rates.
    (e) Reinstatement of Deeming and Other Rules Applicable to 
Aliens Who Entered the United States Under Affidavits of 
Support Formerly Used.--This amendment restores a variation of 
the deeming rules from prior law for sponsored noncitizens 
already in the U.S. on enactment or arriving prior to the 
implementation of the new affidavits of support. The provision 
makes deeming an option for States, in keeping with their 
option to provide TANF for legal noncitizens in the U.S. as of 
August 22, 1996. If States elect to provide TANF to this group 
and opt to deem sponsors' income, these rules would apply to 
aliens who entered less than 3 years before the date of 
enactment (8/22/96), or who entered after the date of enactment 
but before implementation of the new affidavits of support. In 
the latter case, deeming would not go into effect until the 
expiration of the 5-year ban against participation by new 
immigrants. Both groups are referred to as ``non-213A aliens'' 
because section 213A of the Immigration and Nationality Act 
sets up the rules for deeming for noncitizens arriving under 
the new affidavits of support. For non-213A aliens, deeming is 
continued for 3 years and the provision is updated in keeping 
with the new TANF rules and terminology.

Reason for change

    (a) Elimination of Redundant Language; Clarification of 
Home Residence Requirement.--This change brings the provision 
restricting benefits to a family that does not have a child 
into alignment with another provision of the Act that permits 
children to be temporarily absent from the home for selected 
reasons.
    (b) Clarification of Terminology.--These changes were made 
to bring consistent terminology to the statute.
    (c) Elimination of Space.--This amendment promotes 
consistency in the way the statute is formatted.
    (d) Corrections to 5-Year Limit on Assistance.--The Act did 
not clearly state how the 20 percent hardship exemption was to 
be calculated. This provision corrects this omission by 
allowing States to calculate the exemption based on either the 
previous fiscal year's caseload size or the caseload size in 
the current fiscal year. Provisions affecting Indians are 
clarified to improve the efficacy of this section in its 
application to Indians.
    (e) Reinstatement of Deeming and Other Rules Applicable to 
Aliens Who Entered the United States Under Affidavits of 
Support Formerly Used.--The Act contained neither: (a) 
provisions from previous law that required certain aliens to 
have sponsors who could provide needed support if the alien 
lost a job or otherwise became unable to support herself, nor 
(b) deeming rules under which the income of the sponsor would 
be deemed to be available to the alien for purposes of 
calculating eligibility for public welfare programs. This 
provision allows States to elect whether to deem sponsors' 
income to noncitizens who arrived under the old affidavits of 
support, and restores optional deeming rules closely resembling 
those of former law. These changes are made to reinforce State 
flexibility in providing TANF for current resident (as of 
August 22, 1996) noncitizens, while providing a specific set of 
deeming rules for those States that choose to continue deeming.

Effective Date

    August 22, 1996

                       7. PENALTIES (SECTION 107)

Present law

    States are subject to financial penalties if they violate 
certain provisions of the Federal statute. Violations subject 
to penalties include using grant money for unauthorized 
purposes, failing to submit required data reports, failing to 
meet the work participation standards, failing to participate 
in the Income and Eligibility Verification System, failing to 
penalize recipients who do not cooperate in the paternity 
establishment and child support enforcement requirements of 
Federal law, failing to maintain required levels of spending on 
State programs for eligible families (general maintenance-of-
effort rule), failing to meet the Federal requirements for the 
State child support enforcement program, failing to comply with 
the 5-year time limit on assistance, failing to maintain the 
level of State spending under the TANF program required for 
access to the Contingency Fund (applies only to States that 
receive money from the Contingency Fund), failing to maintain 
assistance for adult single parents who cannot obtain child 
care for children under age 6, and failing to expend State 
funds to replace reductions in the Federal grant that were 
caused by imposition of penalties. Generally, the penalties are 
a fine of between 1 percent and 5 percent of the State's 
Temporary Assistance for Needy Families block grant for each 
violation. Except in two specified cases (failure to meet the 
general maintenance-of-effort spending rule and substantial 
noncompliance with child support enforcement rules), the 
Secretary may not impose a penalty if she determines that the 
State has ``reasonable cause'' for its violation. Except in the 
case of failure to repay a loan, the Secretary must allow a 
State an opportunity to enter into a corrective compliance plan 
before imposing a penalty. (Section 409)

Explanation of provision

    (a) States Given More Time to File Quarterly Reports.--
States are given 45 days rather than 1 month from the end of a 
quarter to file data reports.
    (b) Treatment of Support Payments Passed Through to 
Families as Qualified State Expenditures.--For purposes of 
calculating maintenance of effort, qualified State expenditures 
are defined to include the State share of money collected by 
the State as child support on behalf of a family receiving aid 
under the State TANF program, distributed to the family, and 
disregarded for purposes of TANF eligibility. Only the State 
share of child support collections paid to families receiving 
assistance count toward qualified State expenditures and the 
support payments are counted only if the amount of assistance 
received by the family is not reduced as a result of receiving 
the child support payments.
    (c) Disregard of Expenditures Made to Replace Penalty Grant 
Reductions.--Prohibits States from counting funds used to pay 
for penalties imposed under the TANF block grant as payments 
toward the maintenance of effort requirement.
    (d) Treatment of Families of Certain Aliens as Eligible 
Families.--By correcting a cross reference, clarifies that 
States may count dollars spent on noncitizen families lawfully 
present in the United States, and who would be eligible for 
TANF but for the 5-year prohibition on aid to newly arrived 
noncitizens, toward their maintenance of effort requirement.
    (e) Elimination of Meaningless Language.--The meaningless 
language ``reduced (if appropriate) in accordance with 
subparagraph (C)(ii)'' is dropped.
    (f) Clarification of Source of Data to Be Used in 
Determining Historic State Expenditures.--The Act did not 
specify the source of data to be used in computing the historic 
State expenditures needed to determine maintenance of effort; 
this oversight is corrected by directing HHS to use the same 
data sources as those used to determine the size of each 
State's TANF block grant.
    (g) Clarification of Expenditures to Be Excluded in 
Determining Historic State Expenditures.--Clarifies that State 
funds spent as a condition of receiving other Federal funds may 
not count towards the State maintenance of effort requirement; 
also makes a minor wording change to ensure that State 
expenditures on the JOBS program are included in the 
maintenance of effort baseline, i.e., historic State 
expenditures.
    (h) Conforming Title IV-A Penalties to Title IV-D 
Performance-Based Standards.--Under previous law, the Secretary 
was given authority to reduce IV-A (formerly AFDC, now TANF) 
payments to States that failed to meet the standards of the 
child support enforcement program. The Act substantially 
changed the audit procedures in the child support program in 
order to emphasize performance rather than process measures. 
This technical amendment conforms the penalty provisions in the 
TANF program to the new emphasis on performance rather than 
process measures. More specifically, the Secretary may penalize 
States, with graduated penalties that range between 1 and 5 
percent of the TANF block grant amount, for failing to meet the 
paternity establishment percentages or other performance 
standards of the child support program or for either failing to 
submit required data or for submitting unreliable data to the 
Secretary. Before penalties are imposed, the State has a year 
to correct its failures.
    (i) Correction of Reference to 5-Year Limit on 
Assistance.--A reference to the 5-year time limit is changed so 
that it refers to the correct subparagraph.
    (j) Correction of Errors in Penalty for Failure to Meet 
Maintenance of Effort Requirement Applicable to the Contingency 
Fund.--This change makes the penalty for failure to maintain 
effort for States that access the contingency fund consistent 
with the calculation of contingency fund entitlements. States 
are required to spend with State dollars on their TANF program 
(less child care from State funds) at least what they spent in 
Fiscal Year 1994 on AFDC, Emergency Assistance, and JOBS. If a 
State fails to spend at least the Fiscal Year 1994 level, it is 
penalized an amount equal to the contingency fund dollars it 
received during the fiscal year. The change also eliminates a 
potential ``double penalty,'' by reducing the penalty by the 
amount the State already remitted of contingency fund 
overpayments.
    (k) Penalties for State Failure to Expend Additional State 
Funds to Replace Grant Reductions.--States that do not restore 
with State money any funds that were deducted by the Secretary 
for penalty infractions may be penalized by up to 2 percent of 
the State's block grant amount by the Secretary.
    (l) Elimination of Certain Reasonable Cause Exceptions.--
The Act eliminated the maintenance of effort and child support 
penalties from the reasonable cause exceptions. The former was 
eliminated because Congress did not want exceptions from the 
maintenance of effort penalties, the latter because child 
support has its own penalty and reasonable cause provisions in 
a different section of the Act. This technical amendment also 
disallows reasonable cause exceptions to penalties required for 
failure to repay the loan fund, failure to meet the maintenance 
of effort requirement for the contingency fund, and failure to 
restore penalty payments to the block grant.
    (m) Clarification of What It Means to Correct a 
Violation.--The section on corrective compliance plans 
repeatedly uses the verb ``correct'' to refer to action taken 
by a State to address violations of the Act. However, some 
violations, such as missing a deadline, cannot be 
``corrected''. Use of the word ``discontinued'' raises problems 
because it impliesthat all States need to do when they have 
violated one of the penalty provisions is to discontinue the violation. 
In some cases, the State should make restitution as well as discontinue 
the offense. This amendment replaces ``discontinue'' with ``correct or 
discontinue, as appropriate.''
     (n) Certain Penalties Not Avoidable Through Corrective 
Compliance Plans.--The Act exempted repayment of the loan fund 
from the provision forbidding the Secretary to impose a penalty 
before allowing the State to enter into a corrective compliance 
plan. This amendment makes the corrections (see 107(k) above) 
by denying corrective compliance machinery to failure to meet 
general spending effort, failure to meet child support rules, 
failure to maintain spending effort required for the 
contingency fund, and failure to restore penalty funds to the 
block grant.

Reason for change

    (a) States Given More Time to File Quarterly Reports.--
States were concerned that they would not be able to collect, 
store, and maintain the quality of program data plus prepare 
their data report for submission to Health and Human Services 
in just 30 days following the end of each quarter. Thus, States 
were given an extra 15 days to perform these functions.
    (b) Treatment of Support Payments Passed Through to 
Families as Qualified State Expenditures.--In the case of 
families on welfare, the Act gave States the option of giving 
some or all of the child support payments from the noncustodial 
parent directly to the family. The Act did not, however, 
clarify whether such ``spending'' by the State would count 
toward maintenance of effort. In order to encourage States to 
provide child support to families on welfare, and thereby move 
them toward independence from welfare, States are allowed to 
count the entire amount given to the family toward their 
maintenance of effort requirement. States must ignore such 
payments when benefits from the TANF program are computed. 
(Regardless of the amount passed through to families, States 
are required to pay the Federal share of collections in these 
cases.)
    (c) Disregard of Expenditures Made to Replace Penalty Grant 
Reductions.--States are not allowed to count penalty payments 
toward maintenance of effort because allowing them to do so 
would reduce the deterrent impact of penalties in encouraging 
States not to violate Federal requirements.
    (d) Treatment of Families of Certain Aliens as Eligible 
Families.--The policy adopted by Congress was to allow spending 
on noncitizens otherwise eligible for public assistance (but 
for their noncitizen status, in keeping with the new 5-year 
restrictions on newly-arriving noncitizens) to count toward 
maintenance of effort. The cross-reference that permitted this 
policy was incorrect because it was carried over from a 
previous bill. This amendment brings the cross-reference into 
line with the intended policy.
    (e) Elimination of Meaningless Language.--Eliminating 
meaningless language shortens the statute and makes it more 
readable.
    (f) Clarification of Source of Data to Be Used in 
Determining Historic State Expenditures.--Specifying the source 
of data to be used in computing historic State expenditures 
removes uncertainty about how the computation is to be 
performed.
    (g) Clarification of Expenditures to Be Excluded in 
Determining Historic State Expenditures.--The amendment 
clarifies the definition of ``expenditures by the States'' for 
the purpose of determining whether a State meets the 
maintenance of effort requirements. It eliminates the exclusion 
of ``any State funds which are used to match Federal funds. * * 
*'' That exclusion would have inadvertently eliminated from the 
definition of expenditures by the State those made under prior 
law Title IV-A and Title IV-F programs required to determine 
the FY1994 maintenance of effort threshold. It should be noted 
that the amendment retains language prohibiting a State from 
counting expenditures made as a condition of receiving Federal 
funds other than under TANF. Therefore, matching funds other 
than under TANF cannot count toward a State's meeting the 
maintenance of effort requirement.
    (h) Conforming Title IV-A Penalties to Title IV-D 
Performance-Based Standards.--Conforming the penalty provisions 
in the TANF program to the new emphasis on State child support 
performance reinforces the intent of the new law and creates 
further pressure on States to improve performance in collecting 
child support.
    (i) Correction of Reference to 5-Year Limit on 
Assistance.--Correcting the reference so that it refers to the 
5-year time limit brings the statute into line with 
Congressional intent and makes the statute internally 
consistent.
    (j) Correction of Errors in Penalty for Failure to Meet 
Maintenance of Effort Requirement Applicable to the Contingency 
Fund.--The provisions on the contingency fund in the Grants to 
States section of the Act and the Penalty section of the Act 
were somewhat inconsistent. This amendment removes the 
inconsistencies so that the specific procedures by which the 
contingency fund operates are clarified. In addition, by 
eliminating State spending on child care, the amendment makes 
it somewhat easier for States to qualify for money from the 
contingency fund.
    (k) Penalties for State Failure to Expend Additional State 
Funds to Replace Grant Reductions.--Congress required States to 
restore funds deducted from the Federal block grant to pay 
penalties because Congress did not want States to finance 
penalties with Federal funds. Unless there is a penalty for not 
restoring the funds, States would experience no financial 
consequence if they simply ignored the requirement. Thus, a 
modest penalty was added.
    (l) Elimination of Certain Reasonable Cause Exceptions.--
Disallowing reasonable cause exceptions to penalties imposed 
for failure to repay the loan fund, failure to meet the 
maintenance of effort requirement for the contingency fund, and 
failure to restore penalty payments to the block grant 
clarifies Congressional intent that penalties be imposed for 
these serious offenses without delay or exceptions. In the case 
of the loan fund, disallowing the reasonable cause exception 
also saves money because CBO estimated that States would be 
more likely to withdraw money from the loan fund if the only 
requirement were simply to repay the fund without penalty at a 
later date.
    (m) Clarification of What It Means to Correct a 
Violation.--Requiring States to ``correct a violation'' is 
logically flawed because some violations, such as missing a 
deadline, cannot be fully corrected. The word ``discontinue'' 
is also flawed because in addition to discontinuing violations, 
in many cases it may be appropriate for States to take some 
action to compensate for the violation. Thus, the amendment 
requires that States ``correct or discontinue [violations], as 
appropriate'' thereby leaving discretion for the Secretary to 
require either or both actions, whichever is best suited in 
particular cases.
    (n) Certain Penalties Not Avoidable Through Corrective 
Compliance Plans.--This amendment conforms the corrective 
compliance plan provision with the reasonable cause provision 
outlined in (k) above. Allowing corrective compliance plans but 
not reasonable cause exceptions, or vice versa, in the case of 
any given penalty would be inconsistent.

Effective date

    August 22, 1996.

             8. Data Collection and Reporting (Section 108)

Present law

    States are required to provide the Federal government with 
quarterly statistical reports that contain substantial 
information on families receiving benefits. Both individual 
case records and aggregate data must be reported. States are 
authorized to use statistical samples if their sampling plan 
has been approved by the Secretary. (Section 411)

Explanation of provision

    Several changes are made in this section:
           for data reporting purposes, the term ``disability'' 
        is defined as receiving disability benefits under the 
        Social Security disability program, the Supplemental 
        Security Income program, or under any other Social 
        Security Act program;
           States are required to report the relationship of 
        each member of the family to the head of the family 
        (rather than to the youngest child in the family);
           the term ``educational status'' is replaced with 
        ``educational level'' in two subparagraphs;
          States are required to report whether individuals 
        under age 20 in the family are parents of children in 
        the family; and
          States are required to report total caseload data and 
        the total dollar value of benefits quarterly.

Reason for change

    Operating through the National Governors Association and 
the American Public Welfare Association, States requested that 
Congress modify the data reporting requirements in several 
minor respects. These changes will make it easier for States to 
meet the reporting requirements while sacrificing only a 
minimum amount of program information.

Effective date

    August 22, 1996.

  9. Direct Funding and Administration by Indian Tribes (Section 109)

Present law

     Federally recognized Indian tribes (defined to include 
certain Alaska Native organizations) have the option to design 
and operate their own cash welfare programs for needy children 
using funds subtracted from their State's Temporary Assistance 
for Needy Families grant. The Secretary, with participation of 
the tribe, is to establish work participation rules, time 
limits for benefits, and penalties for each tribal family 
assistance program. The law also appropriates funds equal each 
year to those provided to tribes that operated a JOBS program 
in Fiscal Year 1994. This appropriation, equal to each tribe's 
Fiscal Year 1994 JOBS amount, is in addition to any tribal 
assistance TANF grant. Indian TANF plans are for three years. 
In general, Indian tribes in Alaska must operate plans in 
accordance with rules adopted by the State of Alaska for TANF, 
but waivers are allowed. (Section 412)

Explanation of provision

    (a) Prorating of Tribal Family Assistance Grants.--Provides 
the Secretary with the authority to prorate the family 
assistance grant amount for Indian tribes that qualify for TANF 
funds during the course of a fiscal year. The authority is 
limited, however, in that funding must be prorated on a 
quarterly basis.
    (b) Tribal Option to Operate Work Activities Program.--
Indian tribes that conducted their own programs under the JOBS 
legislation were required to operate a separate program under 
TANF; this amendment makes running a separate program optional 
for qualified tribes.
    (c) Discretion of Tribes to Select Population to be Served 
by Tribal Work Activities Program.--Indian tribes are allowed 
to define the population that will be served under their work 
program.
    (d) Reduction of Appropriation for Tribal Work Activities 
Programs.--The appropriation for work programs by Indian tribes 
is reduced from $7,638,474 to $7,633,287 because one tribe 
included in the original estimate of the appropriation is not 
eligible to receive funds.
    (e) Availability of Corrective Compliance Plans to Indian 
Tribes.--The Secretary is granted the authority to allow 
tribes, like States, to operate under a corrective compliance 
plan outlining how tribes will correct their violations.
    (f) Eligibility of Tribes for Federal Loans for Welfare 
Programs.-- Tribes are made eligible to borrow money from the 
Federal welfare loan fund established by the Act.

Reason for change

    (a) Prorating of Tribal Family Assistance Grants.--This 
amendment permits tribes to join the TANF block grant during 
the course of a year while authorizing the Secretary to prorate 
their TANF amount in proportion to the remaining fraction of a 
year after the tribe joins. The amendment allow tribes to avoid 
waiting up to a year to join the block grant and yet prevent 
overpayments for a partial year of participation.
    (b) Tribal Option to Operate Work Activities Program.--The 
requirement that tribes that conducted their own JOBS program 
also conduct a separate work program under TANF resulted from a 
drafting error. Overturning this requirement provides tribes 
with the flexibility to decide whether to operate their own 
program, an outcome that is consistent with Congressional 
intent to allow maximum flexibility to State and local 
governments.
    (c) Discretion of Tribes to Select Population to be Served 
by Tribal Work Activities Program.--Given the difficult 
employment situation on most Indian reservations, tribes should 
not be required to work with every adult on welfare but rather 
should be encouraged to select the population they think they 
can serve most effectively. Tribes are thereby given the 
flexibility to concentrate their resources where they will do 
the most good.
    (d) Reduction of Appropriation for Tribal Work Activities 
Programs.--This amendment prevents money that will not be spent 
in Fiscal Year 1997 from remaining obligated for the entire 
year.
    (e) Availability of Corrective Compliance Plans to Indian 
Tribes.--Allowing tribes to operate under corrective compliance 
plans promotes equity between States and tribes.
    (f) Eligibility of Tribes for Federal Loans for Welfare 
Programs.--Allowing tribes to participate in the Federal loan 
program promotes equity between States and tribes.

Effective date

    August 22, 1996.

     10. Research, Evaluations, and National Studies (Section 110)

Present law

    The Secretary is directed to conduct research on the 
benefits, effects, and costs ofoperating the different State 
TANF programs. Research is to include studies of the effect of programs 
on-being, and any other area she deems appropriate. The Secretary may 
assist States in developing innovative approaches to reducing welfare 
dependency and increasing child well-being and shall, to the maximum 
extent feasible, use random assignment as a method of evaluation. She 
is to rank the States on success in moving people to work and success 
in reducing out-of-wedlock birth ratios. No later than 90 days after 
enactment, and annually afterward, the chief executive officer of each 
State shall submit a statement of the child poverty rate in the State. 
If the Statement indicates that the child poverty rate has increased by 
5 percent or more as a result of the enactment of TANF, the State must 
prepare a ``corrective action'' plan. This section also provides 
funding for State evaluations of their TANF programs and for 
evaluations of ongoing demonstrations initiated under waivers. (Section 
413)

Explanation of provision

    (a) Research.--Standard language allowing HHS to conduct 
research ``directly or through grants, contracts, or 
interagency agreements'' is inserted in the provision giving 
the Secretary $15 million per year to support research and 
demonstration projects on welfare reform innovations.
    (b) Correction of Erroneously Indented Paragraph.--The 
subparagraphs in this section are redesignated and minor 
changes in wording and placement are made.
    (c) Funding of Prior Authorized Demonstrations.-- The 
research provisions of the Act allowed the Secretary to, among 
other options, support ongoing demonstration projects. The date 
defining ``ongoing'' is changed from ``September 30, 1995'' to 
``August 22, 1996'' to include all demonstrations that were 
approved before enactment.
    (d) Child Poverty Reports.--The due date of the report on 
child poverty from each State is changed from ``90 days after 
the date of the enactment of this part'' to ``November 30, 
1997'' [and annually thereafter]. In addition, because child 
poverty rates are often not available on a county-by-county 
basis, the requirement that States report child poverty data is 
modified to require county-by-county data only ``to the extent 
[it is] available''.

Reason for change

    (a) Research.--This amendment increases both effectiveness 
and efficiency by giving the Secretary the flexibility to 
conduct research directly or through grants, contracts, or 
interagency agreements.
    (b) Correction of Erroneously Indented Paragraph.--Making 
these format changes improves the organizational consistency of 
the statute and its readability.
    (c) Funding of Prior Authorized Demonstrations.--
Congressional intent in designing the research provision was to 
provide the Secretary with the authority to continue any 
ongoing demonstration that in her judgment held promise of 
producing interesting results. By including all the 
demonstrations funded through the date of enactment rather than 
an earlier date, this amendment increases the number of 
demonstrations from which the Secretary can select the most 
promising ones to continue.
    (d) Child Poverty Reports.--Given that States are not 
required to begin their programs until July 1, 1997, requiring 
a child poverty report 90 days after enactment was premature. 
Thus, the due date for the first poverty report was put back 
until November 1997. This amendment also allows States to 
concentrate on designing and implementing their program before 
they begin writing reports. Allowing States to report county-
level child poverty data only to the ``extent available'' 
recognizes the fact that the Census Bureau does not produce 
annual data on the incidence of child poverty by county.

Effective date

    August 22, 1996.

              11. Report on Data Processing (Section 111)

Present law

    The Secretary is required to report to Congress within six 
months of enactment (by February 22, 1997) on (a) the status of 
automatic data processing systems in the States and (b) what 
would be required to track participants over time and to 
determine if persons were enrolled in programs in more than one 
State. (Section 106(a))

Explanation of provision

    An unnecessary reference to provisions ``whether in effect 
before or after October 1, 1995'' is dropped.

Reason for change

    Dropping unnecessary language reduces the length and 
complexity of the statute.

Effective date

    August 22, 1996.

        12. Study on Alternative Outcome Measures (Section 112)

Present law

    The law requires the Secretary to study measures of program 
outcomes as an alternative to minimum work participation rates 
and to report conclusions to Congress by September 30, 1998. 
The study is to determine whether alternative outcomes measures 
should be applied on a national or a State-by-State basis. The 
Secretary is also required to conduct a ``preliminary 
assessment'' of the 5-year time limit on Federal benefits (this 
provision was misdrafted in the original Act). (Section 107(a))

Explanation of provision

    Corrects a reference to a ``preliminary assessment'' 
addressed by the Secretary in a report. As written, the 
preliminary assessment is to be conducted on a provision that 
is not in the Act. The technical amendment changes the 
reference so it correctly refers to the 5-year time limit.

Reason for change

    Congress is interested in learning the impact of time 
limits, including the 5-year Federal limit or such shorter time 
limit as individual States may adopt. Thus, Congress asked the 
Secretary to make a preliminary assessment of various possible 
or actual impacts of time limits and to prepare a report about 
these impacts for Congress. However, the section reference to 
the time limit was incorrect because it was left over from a 
previous version of the bill. This amendment inserts the 
correct cross-reference.

Effective date

    August 22, 1996.

      13. Limitation on Payments to the Territories (Section 113)

Present law

    Total Federal funding to the territories (Puerto Rico, U.S. 
Virgin Islands, and American Samoa) for TANF; foster care and 
adoption assistance; and public assistance programs for needy 
adults who are aged, blind, or disabled is limited to specified 
dollar amounts. These limits were raised effective October 1, 
1996. The territories are entitled to a TANF family assistance 
grant on the same basis as are the States, based on past 
Federal expenditures for AFDC, Emergency Assistance, and JOBS. 
They may transfer TANF funds to the Child Care and Development 
Block Grant (CCDBG) and Title XX on the same basis as permitted 
for the States. Territories may receive TANF funds in addition 
to their family assistance grant on a matching basis to take 
advantage of their increased caps. (Section 1108(a) of the 
Social Security Act)

Explanation of provision

    (a) Certain Payments To Be Disregarded in Determining 
Limitation.--Clarifies that the territories may receive TANF 
bonuses for reducing illegitimacy, high performance bonuses, 
loans, and evaluation funds in addition to the ceiling amount 
they may receive under their TANF program and their adult 
assistance program.
    (b) Certain Child Care and Social Services Expenditures by 
Territories Treated as IV-A Expenditures for Purposes of 
Matching Grant.--Territories are allowed to count funds 
transferred from TANF to the Child Care and Development Block 
Grant and the Title XX Block Grant for purposes of matching 
funds.
    (c) Elimination of Duplicative Maintenance of Effort 
Requirement.--A redundant subsection of the provisions for 
territories is stricken from Title XI of the Social Security 
Act.

Reason for change

    (a) Certain Payments To Be Disregarded in Determining 
Limitation.--Allowing the territories to participate in the 
illegitimacy reduction bonus, the high performance bonus, and 
the other supplemental Federal welfare programs promotes equity 
between the States and territories and also, because of the 
incentive effects of the bonuses, encourages territories to 
adopt more efficient and effective programs.
    (b) Certain Child Care and Social Services Expenditures by 
Territories Treated as IV-A Expenditures for Purposes of 
Matching Grant.--Allowing the flexibility to count transferred 
funds for purposes of obtaining matching grants permits 
territories to design their program in an efficient manner and 
promotes equity between territories and States.
    (c) Elimination of Duplicative Maintenance of Effort 
Requirement.--Eliminating a redundant provision shortens the 
statute and makes it less complex.

Effective date

    August 22, 1996.

   14. Conforming Amendments to the Social Security Act (Section 114)

Present law

    The date of the lookback that freezes eligibility for 
foster care payments based on eligibility for Aid to Families 
with Dependent Children is June 1, 1995. (Section 108)

Explanation of provision

    (a) Amendments to Part D of Title IV.--Three obsolete 
cross-references in the child support enforcement program to 
the TANF program are replaced by cross-references to the 
correct TANF subsections and a cross reference that was omitted 
inadvertently is inserted.
    (b) Amendments to Part E of Title IV.--The lookback date 
for eligibility for foster care and adoption benefits is 
changed from June 1, 1995 to July 16, 1996 to make the date 
consistent with the lookback date for Medicaid. Children from 
families that would have been eligible for AFDC given the 
income and resource standards in place in each State on July 
16, 1996 must be eligible for foster care and adoption 
benefits. Income and resource standards established under 
waivers cannot be used to broaden eligibility.

Reason for change

    (a) Amendments to Part D of Title IV.--Changing incorrect 
cross-references helps create a statute that reflects 
Congressional intent and is internally consistent.
    (b) Amendments to Part E of Title IV.--This change makes 
the lookback provisions easier for States to implement because 
States will be collecting information on families to make 
eligibility determinations for both programs using one rather 
than two dates.

Effective date

    August 22, 1996.

             15. Other Conforming Amendments (Section 115)

Present law

    No provision.

Explanation of provision

    (a) Elimination of Amendments Included Inadvertently.--This 
provision removes unnecessary amendments to the Internal 
Revenue Code that were based on early drafts of the welfare 
reform bill.
    (b) Correction of Citation.--An incorrect cross-reference 
is corrected.
    (c) Correction of Internal Cross Reference.--An incorrect 
subparagraph reference to the child care provision in Title VI 
of the Act is corrected.

Reason for change

    (a) Elimination of Amendments Included Inadvertently.--
Dropping unnecessary amendments to the Internal Revenue Code 
makes the Code shorter and less complex.
    (b) Correction of Citation.--Using correct cross-references 
ensures that Congressional intent is expressed by the statutory 
language and that the statutory provisions are consistent.
    (c) Correction of Internal Cross Reference.--Correcting 
this cross-reference promotes understanding of the statute and 
improves its internal consistency.

Effective date

    August 22, 1996.

  16. Modifications to the Jobs Opportunities for Certain Low-Income 
                   Individuals Program (Section 116)

Present law

    The Family Support Act of 1988 (P.L. 100-485) contained a 
provision allowing States to conduct demonstration projects. 
One of these demonstration projects was intended to expand the 
number of job opportunities available to certain low-income 
individuals. The welfare reform bill made several amendments to 
make the statutory language authorizing the demonstration 
project consistent with the new Temporary Assistance for Needy 
Families block grant.

Explanation of provision

    The technical amendment simply changes terminology to 
correct drafting errors that were made in the welfare reform 
legislation.

Reason for change

    Correcting errors in terminology improves the accuracy and 
readability of the statute.

Effective date

    August 22, 1996.

  17. Denial of Assistance and Benefits for Drug-Related Convictions 
                             (Section 117)

Present law

    States may not provide TANF benefits (or food stamp 
benefits) to a person convicted after enactment for a drug-
related felony. States may opt out of this provision by 
enacting a specific law; they may also limit the period of 
ineligibility by State law. (Section 115(d))

Explanation of provision

    (a) Extension of Certain Requirements Coordinated with 
Delayed Effective Date for Successor Provisions.--The authors 
of the provision disallowing eligibility for TANF and food 
stamp benefits for individuals with drug felony convictions 
intended to avoid the constitutional prohibition on retroactive 
punishment by applying the provision only to convictions that 
occur after the date of enactment of the Act (August 22, 1996). 
But the prohibition should probably apply, not to convictions, 
but to conduct that occurred after the date of enactment of the 
Act. This amendment makes that correction.
    (b) Immediate Effectiveness of Provisions Relating to 
Research, Evaluations, and National Studies.--The provision 
ensures that the funding for research is effective on the date 
of enactment.

Reason for change

    (a) Extension of Certain Requirements Coordinated with 
Delayed Effective Date for Successor Provisions.--As written, 
the drug provision may be unconstitutional because it would 
punish behavior that occurred before the provision was enacted, 
thereby perhaps violating the Constitutional prohibition on ex 
post facto punishment. By applying the penalty only to 
behavior, not convictions, that occurred after passage, the 
likely constitutional problem of retroactive punishment is 
avoided.
    (b) Immediate Effectiveness of Provisions Relating to 
Research, Evaluations, and National Studies.--By making the 
research provisions effective upon enactment, money to support 
ongoing research can be expended immediately.

Effective date

    August 22, 1996.

                   18. Transition Rule (Section 118)

Present law

    Most provisions of Title I of P.L. 104-193 take effect on 
July 1, 1997, or earlier at State option. However, some 
penalties and the requirements for data collection and 
reporting do not take effect for a State until (and apply only 
to conduct that occurs on or after) the later of July 1, 1997, 
or the date that is 6 months after the date when the Secretary 
receives a TANF State plan (which may be as late as January 
1998). The Secretary is provided with a fund of $15 million to 
support research and evaluation of welfare reform programs.

Explanation of provision

    The gap in data reporting for States that did not initiate 
TANF by January 1, 1997 is eliminated. The effective date of 
the research provision is changed to the date of enactment from 
July 1, 1997 because without this change no research could be 
funded until July 1, 1997.

Reason for change

    In writing the new TANF block grant program, Congress made 
every effort to maintain and even expand State data reporting 
about the program. The gap in data reporting for some States 
was the result of a drafting oversight and substantially 
violates Congressional intent. Similarly, Congress intended to 
provide HHS with funds to continue its traditional role of 
sponsoring research that can provide valuable information about 
the impacts of welfare programs. The gap in research money for 
HHS was inadvertent and constitutes a violation of 
Congressional intent.

Effective date

    August 22, 1996.

                   19. Effective Dates (Section 119)

Present law

    No provision.

Explanation of provision

    This provision stipulates that amendments made by this 
title (Title I) of the technical corrections bill take effect 
as if they had been included in the provisions of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 
to which the amendments relate.

Reason for change

    Both Federal and State officials need to know when the 
Federal statutory provisions become effective so they can know 
how much time they have to draft and enact legislation and 
prepare for implementation.

Effective date

    August 22, 1996.

                 Title II--Supplemental Security Income

            Subtitle A--Conforming and Technical Amendments

    1. Conforming and Technical Amendments Relating to Eligibility 
                       Restrictions (Section 201)

Present law

    No individual who is fleeing to avoid prosecution, custody 
or confinement after conviction for a crime (or an attempt to 
commit a crime) that is a felony (or, in New Jersey, a high 
misdemeanor), or who violates probation or parole imposed under 
Federal or State law shall be eligible for SSI benefits. The 
Commissioner is required to furnish Federal, State, or local 
law enforcement officers information on fugitive felons or 
parole violators.
    The Commissioner of SSA is required to enter into an 
agreement with any interested State or local institution 
(defined as a jail, prison, other correctional facility, or 
institution where the individual is confined due to a court 
order) under which the institution shall provide monthly the 
names, Social Security numbers, dates of birth, confinement 
dates, and other identifying information of individuals 
confined in such institutions. The Commissioner must pay to the 
institution for each eligible individual who becomes ineligible 
$400 if the information is provided within 30 days of the 
individual's becoming an inmate. The payment is $200 if the 
information is furnished after 30 days but within 90 days. 
(Section 1611)

Explanation of provision

    (a) Denial of SSI Benefits for Fugitive Felons and 
Probation and Parole Violators.--Allows the Social Security 
Administration (SSA) to charge for the costs of providing 
information on fugitive felons or parole violators.
    (b) Treatment of Prisoners.--P.L. 104-193 included an 
inequity which precludes SSA from paying an institution which 
reports an inmate who is receiving benefits after the inmate 
had been transferred to another institution which did not 
report the inmate. This provision adds a requirement that SSA 
make payments to the institution that reported the inmate's 
presence, allowing for payment to that institution if the 
inmate has been transferred from another facility that did not 
report to SSA. Also clarifies that payment to mental 
institutions will be made only with respect to those inmates 
who are confined by reason of a criminal charge.
    (c) Correction of Reference.--Corrects a cross-reference.

Reason for change

     These changes are designed to improve the efficacy and 
fairness of the provision providing an incentive for 
institutions to report the names of inmates for matching 
against SSA recipient lists. For example, unless changed, under 
the Act the Social Security Administration would be precluded 
from charging for the costs of providing information on 
fugitive felons and parole violators requested by other 
agencies. This amendment allows the SSA to do so. Further, this 
change corrects an inequity in the Act which precludes SSA from 
paying an institution which reports an inmate who is receiving 
an SSI benefit after the inmate had been transferred to another 
institution which did not report the inmate.

Effective date

    August 22, 1996.

    2. Conforming and Technical Amendments Relating to Benefits for 
                    Disabled Children (Section 202)

Present law

    By August 22, 1997 (one year after the date of enactment of 
P.L. 104-193), the Commissioner of SSA is expected to 
redetermine the eligibility of any child receiving SSI benefits 
on August 22, 1996, whose eligibility may be affected by 
changes in childhood disability eligibility criteria including 
the new definition of childhood disability and the elimination 
of the individualized functional assessment. Benefits of 
current recipients will continue until the later of July 1, 
1997 or a redetermination assessment. Should a child be found 
ineligible, benefits will end following redetermination.
    Within 1 year of attainment of age 18, SSA is expected to 
make a medical redetermination of current SSI childhood 
recipients using adult disability eligibility criteria. For low 
birth weight babies, a review must be conducted within 12 
months after the birth of a child whose low birth weight is a 
contributing factor to his or her disability.
    Requires the representative payee (i.e., the parent) of an 
individual under the age of 18 to establish an account in a 
financial institution for the receipt of past-due SSI payments 
if the lump-sum payment amounts to more than 6 times the 
maximum monthly SSI payment (including any State supplement). A 
representative payee may use the funds in the account for 
certain designated expenses. The funds in these accounts are 
not counted as a resource and the interest and other earnings 
on the accounts are not considered income in determining SSI 
eligibility. If individuals misapply funds from their own 
dedicated savings accounts, SSA is required to inform the State 
agency administering the Medicaid program of the transfer.
    Federal law stipulates that when individuals enter a 
hospital or other medical institution for which more than half 
of the bill is paid by the Medicaid program, their maximum 
monthly SSI benefit is reduced to $30 per month. The Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 
added that children in medical institutions whose medical costs 
are covered by private insurance would be treated the same as 
children whose bills are paid by Medicaid (that is, their 
maximum monthly SSI cash benefit would be reduced to $30). This 
personal needs allowance is intended to pay for small personal 
expenses, with the cost of maintenance and medical care 
provided by Medicaid or private insurance.
    Section (e) pertains to the medical improvement standard as 
it applies to individuals under the age of 18.

Explanation of provision

    (a) Eligibility Redeterminations for Current Recipients.--
The Commissioner of SSA is expected to redetermine the 
eligibility of any child receiving SSI benefits on August 22, 
1996, whose eligibility may be affected by changes in childhood 
disability eligibility criteria including the new definition of 
childhood disability and the elimination of the individualized 
functional assessment by February 22, 1998 (18 months after the 
date of enactment of P.L. 104-193).
    (b) Eligibility Redeterminations and Continuing Disability 
Reviews.--As in the change described in 202(a) above, there may 
be some applicable age 18 (or over) recipients discovered after 
the 1-year period. This provision clarifies that SSA has the 
authority to make redeterminations using the adult criteria for 
applicable age 18 (or over) recipients discovered after the 1-
year period. Also clarifies that the provision requiring SSA to 
perform a continuing disability review on children awarded 
benefits due to low-birth weight within 12 months after the 
individual's birth shall not apply to cases in which the 
impairment is not expected to improve within 12 months of the 
child's birth.
    (c) Additional Accountability Requirements.--This provision 
adds furtherrequirements on dedicated savings accounts which 
stipulate that any amount misapplied from an account by individuals who 
are their own payees would reduce those individuals' future benefits by 
an equal amount. Also changes references from ``underpayment'' to 
``past-due benefits'' to avoid unintended effects; clarifies that the 
benefits referred to include Federally-administered State supplementary 
payments. (Under Medicaid law, such a transaction would not require a 
Medicaid sanction and therefore no penalty occurs.)
     (d) Reduction in Cash Benefits Payable to 
Institutionalized Individuals Whose Medical Costs Are Covered 
by Private Insurance.--This section of current law uses 
outdated terminology in referring to certain medical 
facilities. Use of the term ``medical treatment facility'' 
would assure that the $30 payment provision would apply to all 
medical facilities that receive Medicaid reimbursement for 
``costs of care.'' This provision updates language of the 
Social Security Act related to medical institutions to account 
for more recent terminology.
    (e) Correction of U.S.C. Citation.--Corrects a cross-
reference.

Reason for change

    The provision would extend for an additional 6 months, 
until February 22, 1998, the date by which the Commissioner is 
to redetermine the eligibility of any SSI disabled child 
affected by the changes in disabled children's benefits made by 
Public Law 104-193. This 6-month extension of the effective 
date will provide the Commissioner with additional time to 
conduct the reviews required by law. This additional time was, 
in part, necessitated by the Administration's delay in 
releasing implementing regulations. The Committee expects SSA 
to comply with the law and will hold the Commissioner of Social 
Security fully responsible for noncompliance.

Effective date

    August 22, 1996.

      3. Additional Technical Amendments to Title II (Section 203)

Present law

    This section pertains to the definition of ``qualified 
organization,'' that may serve as a representative payee, and 
cost-of-living increases as they apply to Social Security 
benefits.

Explanation of provision

     Makes minor changes in wording to improve clarity.

Reason for change

     Makes minor changes in wording to improve clarity.

Effective date

     August 22, 1996.

 4. Additional Technical Amendments Relating to Title XVI (Section 204)

Present law

    This section pertains to rehabilitation services for blind 
and disabled SSI recipients.

Explanation of provision

     Makes minor changes in wording to improve clarity.

Reason for change

     Makes minor changes in wording to improve clarity.

Effective date

     August 22, 1996.

   5. Additional Technical Amendments Relating to Titles II and XVI 
                             (Section 205)

Present law

    This section refers to cooperative research or 
demonstration projects.

Explanation of provision

    Makes minor changes in wording to improve clarity.

Reason for change

     Makes minor changes in wording to improve clarity.

Effective date

     August 15, 1994.

                    6. Effective dates (Section 206)

Present law

     The date of enactment of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) was 
August 22, 1996; provisions are to become effective within the 
first year after enactment.

Explanation of provision

    With the exception of section 205, provisions are to take 
effect as if they were included in P.L. 104-193. Amendments 
made by section 205 are to take effect as if they were included 
in the ``Social Security Independence and Program Improvements 
Act of 1994'' (enacted August 15, 1994).

Reason for change

    Changes made in this section are considered effective as if 
they had been included in the Personal Responsibility and Work 
Opportunity Reconciliation and Social Security Independence and 
Program Improvements Acts, as appropriate.

Effective date

    August 22, 1996.

                   Subtitle B--Additional Amendments

    7. Technical Amendments Relating to Drug Addicts and Alcoholics 
                             (Section 211)

Present law

     Public Law 104-121 included amendments to the Social 
Security and Supplemental Security Income (SSI) disability 
programs providing that no individual could be considered to be 
disabled if alcoholism or drug addiction would otherwise be a 
contributing factor material to the determination of 
disability. The effective date for all new and pending 
applications was the date of enactment. For those whose claim 
had been finally adjudicated before the date of enactment, the 
amendments would apply commencing with benefits for months 
beginning on or after January 1, 1997. Individuals receiving 
benefits due to drug addiction or alcoholism can reapply for 
benefits based on another impairment. If the individual applied 
within 120 days after the date of enactment, the Commissioner 
is required to complete the entitlement redetermination by 
January 1, 1997.
     Public Law 104-121 provided for the appointment of 
representative payees for recipients allowed benefits due to 
another impairment who also have drug addiction or alcoholism 
conditions, and for the referral of those individuals for 
treatment.
    The provisions apply to individuals who file for benefits 
on or after the date of enactment and applies to current 
beneficiaries on January 1, 1997.
    The Social Security Independence and Program Improvements 
Act of 1994 contained requirements that the Commissioner of 
Social Security report to the Committees on Ways and Means and 
Finance by December 31, 1996, on activities related to the 
monitoring and testing of Social Security beneficiaries on the 
basis of drug addiction or alcoholism and who are required to 
undergo treatment as a condition for receipt of benefits.

Explanation of provision

    (a) Clarifications Relating to the Effective Date of the 
Denial of Disability Benefits to Drug Addicts and Alcoholics.--
The provision clarifies the meaning of the term ``final 
adjudication.'' A claim may not be considered to be finally 
adjudicated if there is a pending request for administrative or 
judicial review or a pending readjudication pursuant to class 
action or court remand. Also clarifies that if the Commissioner 
does not perform the entitlement redetermination before January 
1, 1997, the entitlement redetermination must be performed in 
lieu of a continuing disability review.
    (b) Corrections to Effective Date of Provisions Concerning 
Representative Payees and Treatment Referrals of Drug Addicts 
and Alcoholics.--Corrects an anomaly that currently excludes 
all those allowed benefits (due to another impairment) before 
March 29, 1996, and redetermined before July 1, 1996, from the 
requirement that a representative payee be appointed and that 
the recipient be referred for treatment.
    (c) Repeal of Obsolete Reporting Requirements.--Repeals an 
obsolete requirement that the Social Security Administration 
(SSA) report on the monitoring and testing of drug addicts or 
alcoholics.
    (d) Effective Dates.--The provisions would be effective as 
if included in the ``Contract with America Advancement Act of 
1996,'' Public Law 104-121, except that the repeal of the 
obsolete reporting requirement would be effective upon 
enactment.

Reason for change

    The provision clearly defines ``final adjudication'' to 
avoid any misinterpretation by the courts. At least one court 
has already concluded that it can award benefits through 
January 1, 1997, because the Commissioner's decision denying 
benefits was issued before March 29, 1996.
    As written, current law creates an anomaly, whereby all 
those allowed benefits (due to another impairment) before March 
29, 1996, and redetermined before July 1, 1996, are excluded 
from the requirement that a representative payee be appointed 
and that they be referred for treatment. The provision corrects 
this anomaly.
    Since Public Law 104-121 contained amendments that 
eliminated payment of benefits on the basis of drug addiction 
or alcoholism and the treatment and monitoring requirements, 
the requirement to report on the monitoring and testing 
activities is obsolete.

Effective date

    For subsections (a) and (b), March 29, 1996; for subsection 
(c), date of enactment; and for subsection (d), March 29, 1996 
or date of enactment.

  8. Extension of Disability Insurance Program Demonstration Project 
                        Authority (Section 212)

Present law

    Under authority which expired on June 9, 1996, the 
Commissioner may initiate experiments and demonstration 
projects to test ways to encourage Social Security disability 
insurance (SSDI) beneficiaries to return to work, and may waive 
compliance with certain benefit requirements in connection with 
these projects.

Explanation of provision

    This provision would extend demonstration authority to June 
10, 1999, and would include authority for demonstration 
projects involving applicants as well as recipients.

Reason for change

    By extending and expanding this demonstration authority, 
this provision is designed to aid the development of new 
methods of helping SSDI beneficiaries return to work, a 
significant goal of both the SSDI program and welfare reform in 
general.

Effective date

    Date of enactment.

 9. Perfecting Amendments Related to Withholding from Social Security 
                         Benefits (Section 213)

Present law

    The Social Security Act prohibits the assignment of Social 
Security benefits. The Department of Treasury began withholding 
Federal income taxes from payments made after December 31, 
1996.

Explanation of provision

    (a) Inapplicability of Assignment Prohibition.--The intent 
of the ``Uruguay Round Agreements Act'' was to give U.S. 
taxpayers who receive specified Federal payments (including 
Social Security benefits) the option of requesting that the 
Department of Treasury withhold Federal income taxes from 
payments made after December 31, 1996. Due to a drafting 
oversight, the ``Uruguay Round Agreements Act'' failed to 
override the Social Security Act provision that prohibits the 
assignment of benefits. The provision would amend the Social 
Security Act anti-assignment section to allow provisions in the 
tax code to be implemented.
    (b) Proper Allocation of Costs of Withholding Between the 
Trust Funds and the General Fund.--Allocates funding for SSA to 
administer the tax-withholding provision.
    (c) Effective Date.--The provisions would be effective for 
benefits paid in or after the second month after enactment.

Reason for change

    These provisions amend the Social Security Act so that the 
provisions in the tax code may be implemented, as originally 
intended, and funding may be allocated for SSA to administer 
the tax-withholding provision.

Effective date

    Applies to benefits paid on or after the first day of the 
second month beginning after the month of enactment.

                10. Treatment of Prisoners (Section 214)

Present law

    Prisoners are prohibited from receiving Social Security 
disability benefits while incarcerated if they are convicted of 
any crime punishable by imprisonment of more than one year. 
Federal, State, county or local prisons are required to make 
available, upon written request, the name and Social Security 
number of any individual who is confined in a penal institution 
or correctional facility.
    P.L. 104-193 requires the Commissioner to study the 
desirability, feasibility, and cost of establishing a system 
for courts to directly furnish SSA with information regarding 
court orders affecting SSI recipients, and requiring that State 
and local jails, prisons, and other institutions that enter 
into contracts with the Commissioner furnish the information by 
means of an electronic or similar data exchange system.
    P.L. 104-193 required the Commissioner of SSA to enter into 
an agreement with any interested State or local institution 
(defined as a jail, prison, other correctional facility, or 
institution where the individual is confined due to a court 
order) under which the institution shall provide monthly the 
names, Social Security numbers, dates of birth, confinement 
dates, and other identifying information of incarcerated 
individuals. The Commissioner must pay to the institution for 
each eligible individual who becomes ineligible for SSI $400 if 
the information is provided within 30 days of the individual's 
becoming an inmate. The payment is $200 if the information is 
furnished after 30 days but within 90 days.
    The ``Computer Matching and Privacy Protection Act of 
1988'' does not apply to the information exchanged pursuant to 
these agreements.

Explanation of provision

    (a) Implementation of Prohibition Against Payment of Title 
II Benefits to Prisoners.--Bars payment of Social Security 
benefits to prisoners and to those who are found guilty but 
insane, and is similar to the provisions barring payment of 
Supplemental Security Income benefits to such individuals that 
were included in the House-passed version of the ``Personal 
Responsibility and Work Opportunity Reconciliation Act of 
1996,'' (P.L. 104-193). State and local correctional facilities 
are eligible for payments of $400 (for reports submitted to SSA 
within 30 days) or $200 (for reports within 90 days) of 
incarceration of convicts who were actually receiving Social 
Security benefits. Payments to correctional institutions are 
reduced by 50 percent for multiple reports on the same 
individual who receives both SSI and OASDI benefits. Payments 
made to the correctional institution are made from OASI or DI 
Trust Funds, as appropriate. The Commissioner is authorized to 
provide, on a reimbursable basis, information obtained pursuant 
to these agreements to any Federal or Federally-assisted cash, 
food, or medical assistance program for the purpose of 
determining program eligibility.
    (b) Elimination of Title II Requirement that Confinement 
Stem from Crime Punishable by Imprisonment for More Than 1 
Year.--This provision would replace ``an offense punishable by 
imprisonment for more than 1 year'' with ``a criminal 
offense,'' delete other language, and include benefits payable 
to persons confined, throughout a month, to: (1) a penal 
institution; or (2) another institution if found guilty but 
insane, regardless of the total duration of the confinement.
    (c) Inclusion of Title II Issues in Study and Report 
Requirements Relating to Prisoners.--This provision would 
broaden the study to include prisoners who receive OASDI 
benefits.
    (d) Conforming Title XVI Amendments.--Clarifies that, in 
cases in which an inmate receives benefits under both the SSI 
and Social Security programs, payments to correctional 
facilities would be restricted to $400 or $200, depending on 
when the report is furnished. Also expands the categories of 
institutions eligible to report incarceration of prisoners.
    (e) Exemption from Computer Matching Requirements.--
Simplifies computer matching agreement requirements to 
facilitate the exchange of information between the correctional 
institutions and SSA.
    (f) Continued Denial of Benefits to Sex Offenders Remaining 
Confined to Public Institutions Upon Completion of Prison 
Term.--The bill also prohibits OASDI payments to sex offenders 
who, upon completion of a prison term, remain confined in a 
public institution pursuant to a court finding that they 
continue to be sexually dangerous to others.

Reason for change

    The provision applies the prohibitions against payment of 
benefits to OASDI in the same manner that they apply to SSI 
benefits. Both SSI and OASDI prisoner provisions were included 
in the House-passed version of Public Law 104-193. OASDI 
provisions were not included in the conference report on the 
legislation because of Senate interpretation of procedural 
rules. This language restores the OASDI provisions.
    These provisions provide new financial incentives for State 
and local correctional institutions to report information on 
inmates to the Social Security Administration (SSA) so that 
payment of OASDI benefits to prisoners being supported at 
taxpayer expense are stopped promptly.
    The provision allows SSA to share, and be reimbursed for, 
any information obtained through these agreements that would 
assist other Federal agencies in administering their programs.
    An audit conducted by the SSA Office of Inspector General 
determined that the language in existing law required that for 
each prisoner eligible for benefits, the duration of 
incarceration be determined on a case-by-case basis, based on 
data that can only be obtained from the courts. This was a 
costly, labor-intensive process that impeded timely suspension 
of benefits. As a matter of fairness, benefits would also be 
barred to persons who commit a criminal offense but are found 
guilty by reason of insanity.
    SSA must find better ways to exchange data with courts and 
State and local jails, prisons, and other institutions so that 
prisoners who are being supported at taxpayer expense do not 
also receive Federal benefits. The Subcommittee believes that 
conductingsuch a study, and reporting its findings to Congress, 
will serve as an incentive for correctional institutions to enter into 
reporting agreements.
    Payments to reporting institutions would be restricted to 
$400, even if the prisoner is entitled to both SSI and OASDI 
benefits. Several other features of this provision are 
harmonized with the related SSI provision, and the denial of 
benefits is extended in the case of sex offenders who remain 
confined after completing their prison terms.

Effective date

    Subsection (a) would be effective for confinements 
beginning at least three full months after the date of 
enactment. Subsection (b) would be effective for those 
prisoners whose confinement begins on or after the first day of 
the fourth month after the month of enactment. Subsection (c) 
is effective August 22, 1996. Subsection (d) is effective as if 
included in P.L. 104-193. Subsection (e) is effective upon 
enactment. Subsection (f) applies to benefits for months ending 
after the date of enactment.

       11. Social Security Advisory Board Personnel (Section 215)

Present law

    Mandates the appointment of and salary level for three 
professional staff members of the Social Security Advisory 
Board.

Explanation of provision

    The provision replaces existing language with general 
language which provides for additional personnel as the Board 
determines necessary to carry out its functions.

Reason for change

    This provision allows the Social Security Advisory Board 
the flexibility to determine staffing needs and appropriate 
salary levels.

Effective date

    March 29, 1996.

                        Title III--Child Support

   1. State Obligation to Provide Child Support Enforcement Services 
                             (Section 301)

Present law

    States are required to submit a plan to the Secretary that 
provides a detailed description of 33 specific aspects of their 
child support enforcement program. A mandatory part of the 
State plan is a description of how the State will charge a 
basic fee, not to exceed $25, for families that are not 
receiving public assistance (States are prohibited from 
requiring families receiving public assistance to pay fees). 
Additional fees may include: up to $25 in the case of families 
for whom the State asks the Secretary to intercept tax returns 
to pay arrearages; a fee, not to exceed costs, in the case of a 
family that requires genetic testing; and fees to cover costs 
incurred by the State in excess of the basic $25 registration 
fee. States must provide the same child support services, under 
the same terms, to residents of other States as they provide to 
residents of their own State. (Section 454)

Explanation of provision

    (a) Individuals Subject to Fee for Child Support 
Enforcement Services.--Families receiving benefits from the 
TANF program are exempt from paying the $25 fee. Other sections 
of the Social Security Act also exempt families receiving 
foster care payments under section IV-E and families receiving 
Medicaid under Title XIX from paying the fee. For purposes of 
clarity, this technical amendment mentions both of these 
additional exemptions here. In addition, the food stamp 
amendments in title VIII of the Act gave States the option of 
collecting child support from families receiving food stamp 
benefits. This technical amendment also adds these families to 
the list of families exempt from paying the child support fee.
    (b) Correction of Reference.--This section makes a 
conforming amendment to the child support enforcement section 
of the Social Security Act (Title IV-D) to accommodate the 
change in the fee provision summarized in sec. 301(a) above.

Reason for change

    (a) Individuals Subject to Fee for Child Support 
Enforcement Services.--Congressional policy has always been to 
waive the $25 registration child support fee for families on 
welfare because poor families should be allowed to spend their 
money to meet family needs. This provision restates this policy 
in the child support section of the Social Security Act and, 
because States were given the option of collecting child 
support from families receiving food stamps, extends the waiver 
to these families.
    (b) Correction of Reference.--This conforming amendment 
makes two sections of the child support statute consistent with 
each other.

Effective date

    October 1, 1996.

           2. Distribution of Collected Support (Section 302)

Present law

    Families Receiving Assistance.--States are given the option 
of passing the entire child support payment through to 
families. If a State elects this option, it must pay the 
Federal share of the collection to the Federal government.
    Families that Formerly Received Assistance.--Child support 
payments on current support always go to the family. Payments 
on arrearages that accrued after the family stopped receiving 
cash assistance and that are collected before October 1, 1997 
are to be paid in accordance with the law in effect before 
enactment of P.L. 104-193, which means that these arrearage 
payments generally are to be paid to the State to reimburse it 
for any arrearages owed to it under the AFDC assignment (with 
appropriate reimbursement of the Federal share of the 
collection to the Federal government).
    With respect to arrearages that accrued after the family 
stopped receiving cash assistance that are collected on or 
after October 1, 1997 (or, at the option of the State, before 
such date), the arrearage is to be paid to the family unless it 
is collected through the Federal income tax offset program, in 
which case it is to be paid to the State and the State is to 
pay the Federal share of the collection to the Federal 
government. If any money remains, it is to be paid to the 
family to satisfy arrearages that accrued after the family 
started receiving cash assistance. If there is still money 
remaining, the State retains its share of the amount and pays 
to the Federal government the Federal share of the collection 
(to the extent necessary to reimburse amounts paid to the 
family as cash assistance). If any money still remains, it is 
to be paid to the family.
    Arrearages that accrued before the family started receiving 
cash assistance and that are collected before October 1, 2000 
are to be paid in accordance with the law in effectbefore 
enactment of P.L. 104-193, which means that these arrearages generally 
are paid to the State to reimburse it for any arrearages owed to it 
under the AFDC assignment (with appropriate reimbursement of the 
Federal share of the collection to the Federal government).
     Arrearages that accrued before the family started 
receiving cash assistance and that are collected on or after 
October 1, 2000 (or before such date, at the option of the 
State), are to be paid to the family unless collected through 
the Federal income tax offset program, in which case they are 
to be paid to the State (and the State is to pay the Federal 
share of the collection to the Federal government). If any 
money remains, it is to be paid to the family to satisfy 
arrearages that accrued before the family starting receiving 
cash assistance. If there is still money remaining, the State 
retains its share of the amount and pays to the Federal 
government the Federal share of the collection (to the extent 
necessary to reimburse amounts paid to the family as cash 
assistance). If any money still remains, it is to be paid to 
the family.
     With respect to any arrearages that accrued while the 
family received cash assistance, States are given the option of 
passing the child support arrearage payment through to 
families. If a State elects this option, it must pay the 
Federal share of the collection to the Federal government.
     As noted above, arrearages collected through the Federal 
tax offset program are to be paid to the State (and the State 
is to pay the Federal share of the collection to the Federal 
government). The State may only retain arrearages that have 
been assigned to the State and only up to the amount necessary 
to reimburse amounts paid to the family as cash assistance. If 
the amount collected through the tax offset exceeds the amounts 
retained, the State must distribute the excess to the family.
     Effective October 1, 2000, the State must treat any 
support arrearages collected, except for those through the 
Federal income tax offset program, as accruing in the following 
order: (1) to the period after the family stopped receiving 
cash assistance, (2) to the period before the family received 
cash assistance, and (3) to the period while the family was 
receiving cash assistance.
    Families That Never Received Assistance.--The entire amount 
of the child support collection is distributed to families that 
never received cash assistance.
    Families Under Certain Agreements.--In the case of a family 
receiving cash assistance from an Indian tribe, the child 
support collection is to be distributed according to the 
agreement specified in the Child Support Enforcement State 
plan.
    Study and Report.--By October 1, 1998, the Secretary must 
present a report to the Congress concerning whether the 
distribution of post-assistance and pre-assistance arrearages 
to families have helped families move off and stay off welfare. 
The report also is to discuss the overall impact of P.L. 104-
193 with respect to child support enforcement in moving people 
off welfare and helping them stay off. In addition, information 
from the Secretary's report is to be used, if appropriate, to 
modify policy related to the distribution of child support 
arrearages. (Section 457)

Explanation of provision

    (a) Continuation of Assignments.--The drafting of the 
assignment language in the Act left a gap between August 22, 
1996 and September 30, 1997 during which there would have been 
no assignment rules in some cases. This amendment requires 
States to follow the old assignment rules until the new rules 
begin on October 1, 1997.
    (b) State Option for Applicability.--The Act phases in the 
provision to increase the share of child support collections 
distributed to former welfare mothers; part of the increased 
State payment of child support to mothers who were formerly on 
welfare begins in fiscal year 1998, a second part begins in 
fiscal year 2001. This amendment allows States the option of 
beginning both steps in fiscal year 1999.
    (c) Distribution of Collections with Respect to Families 
Receiving Assistance.--In rewriting the child support 
distribution rules to provide mothers leaving welfare with more 
child support income, Congress retained a provision of previous 
law which stipulates that in no case should the portion of 
child support retained by the State and Federal government 
exceed their share of the amounts paid to families as welfare 
assistance. This amendment simply extends this restriction to 
families receiving TANF benefits.
    (d) Families Under Certain Agreements.--This amendment 
makes provisions for how the new child support distribution 
rules of the Act are applied to Indian tribes; specifically, 
tribes are required to follow the distribution rules spelled 
out in their agreement with their State.
    (e) Study and Report.--The Act required HHS to submit a 
report on the implementation of the new distribution provisions 
on October 1, 1998. However, because much of the information on 
implementation will not be available until after October 1, 
1998, this technical correction gives the Secretary another 
year to complete the report by changing ``[October 1], 1998'' 
to ``[October 1], 1999''.
    (f) Corrections of References.--Reference to an incorrect 
section number is replaced by the correct section number.
    (g) Correction of Territorial Match.--Restores the 75% 
Federal match for the territories that was inadvertently 
dropped during drafting of the Act for the purposes of the 
distribution of child support payments made on behalf of 
families receiving (or who previously received) TANF benefits.
    (h) Definitions.--The official date of a child support 
collection is changed from the date the payment is made by an 
employer or individual to the date the child support agency 
actually receives the payment. The date the Federal matching 
rate formula is permanently defined as the Medicaid formula is 
changed from ``September 30, 1996'' to ``September 30, 1995'' 
to conform this provision to similar provisions found in other 
parts of the statute.
    (i) Conforming Amendments.--Conforming amendments are made 
to other sections of the child support program.

Reason for change

    (a) Continuation of Assignments.--The welfare reform bill, 
which amended the child support distribution rules, 
inadvertently left a gap in time during which there would have 
been no assignment rules in effect in some States. Given the 
vital nature of assignment rules, especially to mothers leaving 
welfare, this amendment fills the gap by requiring certain 
States to follow the old assignment rules until the new rules 
begin on October 1, 1997.
    (b) State Option for Applicability.--States informed the 
Congress that implementing the new distribution rules in two 
phases, though providing States with ample time to absorb the 
potential loss of funds entailed by this policy, would require 
two waves of computer reprogramming and would add complexity to 
State statutes, instruction manuals, and administrative 
procedures. Thus, rather than implement the new rules in two 
phases separated by 3 years, some States preferred to implement 
the new rules in one step at some time during the 3 years 
allowed between phase 1 and phase 2. This amendment provides 
States with this one-step option.
    (c) Distribution of Collections with Respect to Families 
Receiving Assistance.--Under the old Aid to Families with 
Dependent Children program, States were prohibited from 
retaining child support collections that exceeded welfare 
payments to the family in the case of families that had 
received AFDC benefits. This amendment extends this rule to the 
new Temporary Assistance for Needy Families block grant 
program.
    (d) Families Under Certain Agreements.--Because of the 
unique economic circumstances of Indian tribes, especially the 
extreme poverty experience by many Indian families, tribes are 
given the flexibility of negotiating an arrangement with the 
State and the Secretary concerning how child support 
collections from Indians will be distributed to families.
    (e) Study and Report.--Because the first phase of the new 
distribution rules will not be implemented until October 1, 
1998, requiring HHS to submit a report summarizing the impact 
of the new rules on October 1, 1998 the day they are 
implemented--makes little sense. Thus, HHS is given another 
year to write the report.
    (f) Corrections of References.--Correcting cross-references 
promotes accuracy and consistency of statutory language.
    (g) Correction of Territorial Match.--By restoring the 75 
percent Federal child support match for the territories that 
was inadvertently dropped during drafting, this amendment makes 
the statute consistent with Congressional intent as expressed 
in previous legislation.
    (h) Definitions.--For reasons explained in #19 (Date of 
Collection of Support) below, the date of receipt of child 
support is changed from the date of withholding by the employer 
to the date of receipt by the State Disbursement Unit. This 
amendment conforms the Medicaid matching rate used to determine 
the Federal share of collections to the change in definition of 
child support receipt to avoid having States use resources to 
ascertain whether the date a payment was withheld was in the 
same year as the date the payment was received. The definitions 
also change the date the Medicaid matching formula is frozen to 
make the date consistent throughout the statute.
    (i) Conforming Amendments.--These amendments ensure that 
the statute is internally consistent.

Effective date

    August 22, 1996.

 3. Civil Penalties Relating to State Directory of New Hires (Section 
                                  303)

Present law

    States must establish, by October 1, 1997, an automated 
State Directory of New Hires containing the name, address, and 
social security number of every newly-hired employee in the 
State and the name, address, and tax identification number of 
the individual's employer. Employers that have employees in two 
or more States and that transmit reports magnetically or 
electronically may comply by designating one State to which the 
New Hire reports will be submitted. Federal employees must be 
reported to the National Directory of New Hires. Employers may 
fulfill this requirement by simply submitting a copy of the new 
employee's W-4 form. Reports must be made within 20 days after 
the date of hire or, in the case of employers that transmit 
reports magnetically or electronically, by two monthly 
transmissions not less than 12 days nor more than 16 days 
apart. A fine of $25 may be assessed against employers that 
fail to report information on new hires; if States find that 
the employer and employee engaged in a conspiracy to avoid 
fulfilling the reporting requirement, the fine may be up to 
$500. States must enter the new hire information in their 
Directory of New Hires within 5 days of receipt. By May 1, 
1998, States must make automated comparisons, based on social 
security numbers, between their new hire information and 
information in the State Case Registry of Child Support Orders. 
When matches occur and the case requires income withholding, 
the State child support agency must, within 2 days, notify the 
employer of wages to be withheld and where the withheld amount 
must be submitted. States must also report all new hire 
information to the Federal Directory of New Hires within 3 days 
of receipt. (Section 453A)

Explanation of provision

    This technical amendment clarifies that the $25 penalty 
against employers that fail to report new hires applies to each 
individual failure to meet the new hire reporting requirement.

Reason for change

    The welfare reform law was unclear about whether the 
optional penalty of $25 against employers that did not report 
new hire information applied to each individual failure to 
report a newly hired employee. This amendment clarifies the 
ambiguity by stating that States can apply a fine of up $25 to 
each individual instance of a failure to report.

Effective date

    August 22, 1996.

            4. Federal Parent Locator Service (Section 304)

Present law

    The Secretary must establish and operate a Federal Parent 
Locator Service that contains information on, or that 
facilitates the discovery of, the location of individuals who 
are under obligation to pay child support, to provide child 
custody or visitation rights, or against whom such an 
obligation is sought or to whom such an obligation is owed. The 
FPLS must contain information on social security numbers, 
addresses, employer information, wage and income information, 
and information on assets and debts. When a proper request is 
filed by an authorized person, the Secretary must provide the 
information from the FPLS or from the files and records 
maintained by any of the departments and agencies of the 
Federal government or any State. Such departments and agencies 
must respond to requests from the Secretary for information. 
The Secretary may reimburse agencies for costs incurred in 
responding to information requests from the Secretary. (Section 
453) The FPLS can also be used in connection with the 
enforcement of laws regarding parental kidnapping, or making or 
enforcing a child custody determination. (Section 463)

Explanation of provision

    This section is reorganized and rewritten to clarify that 
the State child support agencies are not obligated to provide 
custody and visitation services, but must use the FPLS to 
obtain information on the location of parents for the purposes 
of enforcing State and Federal laws against parental 
kidnapping; establishing parentage; establishing, setting the 
amount of, modifying, or enforcing child support obligations; 
or making or enforcing custody or visitation determinations. 
The Committee bill creates a new set of procedures for ensuring 
that the FPLS is used appropriately to provide information to 
noncustodial parents. The new procedures require changes in the 
statute sections on the State plan, the FPLS, and use of the 
FPLS in connection with child custody or kidnapping. There are 
three steps in the revised procedures. First, in providing 
information to the FPLS, States must include information on 
cases in which they have ``reasonable evidence'' of domestic 
violence or child abuse and in which the State believes the 
disclosure of this information``could be harmful'' to the 
custodial parent or child. Second, if the State has indicated that it 
has reasonable evidence of domestic violence on a given case, and an 
authorized person requests information about the case, the FPLS can 
disclose information about the case only to a court and must include 
both the requested information along with the information that the 
State has reasonable evidence of violence and that harm to the 
custodial parent or child could result from the disclosure of the 
information. Third, the local court must then determine whether the 
disclosure of information will result in harm and if it so judges, must 
not disclose the information. Primarily for application in interstate 
cases, the statute is also amended to provide a court which has the 
authority to serve as the initiating court in an action to seek an 
order with the authority to receive FPLS information. Finally, the 
Committee amendment requires all States to participate in the use of 
the FPLS in connection with enforcement or determination of child 
custody and in cases of parental kidnapping (all States currently 
participate on a voluntary basis).

Reason for change

    If custodial parents refuse to make children available for 
court-ordered visitation, noncustodial parents have argued that 
they should have access to information in the Federal Parent 
Locator Service (FPLS) to locate the custodial parents and 
children. The amendments in this section clarify this issue. 
First, the provision gives both custodial and noncustodial 
parents the right to have access to information in the FPLS for 
the purpose of locating parents or children to enforce State or 
Federal law on taking or restraint of a child or for the 
purpose of making or enforcing a child support order or a 
custody or visitation order. Second, all States are required to 
participate in using the FPLS to locate missing children. 
Third, safeguards are established that require States to notify 
the FPLS that ``reasonable evidence'' of violence or abuse 
exists and that the disclosure of information could be harmful 
to the custodial parent or child. In these cases, a court must 
decide what, if any, information about the custodial parent and 
child can be released. The Committee provision on the use of 
FPLS strikes a balance between the right of noncustodial 
parents to have information about their children and the right 
of custodial parents and children to have protection if there 
is credible evidence of violence.

Effective date

    August 22, 1996.

     5. access to registry data for research purposes (section 305)

Present law

    Amendments made by this section apply to the FPLS explained 
in #4 above. (Section 453)

Explanation of provision

    The Act created or expanded several national data bases of 
child support information including the New Hire Registry and 
the Federal Case Registry. The Act gave the Secretary authority 
to release data from the former but not the latter for 
research. This provision makes data from both registries 
available for research. Language elsewhere in the statute is 
altered slightly to accommodate this change.

Reason for change

    Both child support policy and program administration have 
often been influenced by research. Thus, making data available 
for research often serves the public interest by helping to 
improve programs.

Effective date

    August 22, 1996.

   6. collection and use of social security numbers for use in child 
                   support enforcement (section 306)

Present law

    States must have procedures for recording the Social 
Security numbers of applicants on the application for 
professional licenses, commercial driver's licenses, 
occupational licenses, and marriage licenses. States also must 
record Social Security numbers in the records of divorce 
decrees, child support orders, and paternity determination or 
acknowledgment orders. Individuals who die will have their 
Social Security number placed in the records relating to the 
death and recorded on the death certificate. If the State 
allows the use of a number other than the Social Security 
number for the licenses mentioned above, it must so advise 
applicants. (Section 466)

Explanation of provision

    One type of license covered by the requirement was 
``commercial driver's licenses''. This amendment removes the 
word ``commercial'', thereby requiring States to record social 
security numbers on the applications for all types of driver's 
licenses. Also, the provision adds ``recreational'' licenses to 
the list of licenses for which Social Security numbers must be 
recorded on the license application.

Reason for change

    Congress wants States to have the broadest possible access 
to information about parents who owe child support. Given that 
many parents are located and brought to a court or 
administrative agency to face child support actions through use 
of Social Security numbers, placing Social Security numbers in 
the records of as many State licenses as possible will increase 
the number of parents located and therefore the number of 
children who receive child support payments. At the same time, 
by placing the numbers on the applications rather than the face 
of the license itself, this provision strikes a balance between 
the State need for information and the need for privacy felt by 
many individuals.

Effective date

    October 1, 1996.

            7. adoption of uniform state laws (section 307)

Present law

    One of the requirements of the statutorily prescribed 
procedures section of the statute is that States adopt the 
Uniform Interstate Family Support Act (UIFSA), together with 
any amendments officially adopted before January 1, 1998 by the 
National Conference of Commissioners on Uniform State Laws. 
Developed by the National Conference of Commissioners on 
Uniform State Laws, UIFSA is a series of laws that are designed 
to facilitate the enforcement of interstate child support 
enforcement cases. (Section 466)

Explanation of provision

    This technical provision requires States to adopt any 
amendments made to UIFSA by the Commissioners before August 22, 
1996.

Reason for change

    The specific purpose of UIFSA is to improve interstate 
child support enforcement, widely agreed to be the weakest part 
of the child support system. Program administrators and 
scholars who study child support agree that UIFSA will lead to 
improved interstate child support enforcement. Thus, it is good 
policy to require States to enact as many of the UIFSA 
provisions as possible.

Effective date

    October 1, 1996.

       8. state laws providing expedited procedures (section 308)

Present law

    Federal law requires States to adopt a set of expedited 
child support enforcement procedures. These include procedures 
which give the State agency the authority to take several 
actions to establish paternity or to establish, modify, or 
enforce support orders, without the necessity of obtaining an 
order from any other judicial or administrative tribunal. The 
actions include ordering genetic testing, subpoenaing financial 
or other information, requiring all entities in the State to 
provide information on the employment, compensation, and 
benefits of any individual employed by such entity and 
sanctioning failures to respond, obtaining access to 
information contained in certain records (vital statistics, tax 
and revenue records, records on personal property, employment 
security records, records of agencies administering public 
assistance programs, motor vehicle records, corrections 
records, customer records of public utilities and cable TV 
companies, and information held by financial institutions), 
changing the payee to an appropriate government entity, 
ordering income withholding, securing assets, and increasing 
monthly payments in order to collect past-due support. 
Expedited procedures must also include several rules and 
authorities, applicable with respect to all proceedings to 
establish paternity or to establish, modify, or enforce support 
orders. The rules and authority include procedures under which 
each party to a paternity or child support proceeding is 
required to file certain information; procedures under which, 
in the case of any subsequent child support action between the 
parties, the tribunal may deem due process requirements for 
notice and service of process to be met upon delivery of 
written notice to the most recent residential or employer 
address; and procedures under which the State agency and other 
bodies may exert statewide jurisdiction over the parties and 
that permit the transfer of cases between local jurisdictions 
to retain jurisdiction over the parties. In a section of the 
Act requiring States to have laws allowing them to change 
payees in welfare cases, ``welfare'' was defined with reference 
to Temporary Assistance for Needy Families (TANF) and Medicaid 
but not to the foster care and adoption program in title IV-E 
of the Social Security Act. (Section 466)

Explanation of provision

    This section makes several changes. First, it adds the 
foster care program to the list of welfare programs covered by 
the child support program. Second, the section on locator 
information in the Act provides that due process requirements 
for notice and service of process ``may'' be deemed to have 
been met by the tribunal upon delivery of written notice to the 
most recent address filed by the court by the payee. At the 
request of States, the option is changed to a requirement by 
changing ``may'' to ``shall''. Third, instead of using the term 
``tribunal,'' the phrase ``court or administrative agency of 
competent jurisdiction'' is used. Fourth, information 
pertaining to paternity or child support proceedings is to be 
filed with the State case registry. Fifth, the Act required 
States to seize various assets of obligors who are delinquent 
in making payments. This technical amendment clarifies that 
when assets are seized in a given month, States must pay 
current support before applying the remainder of the seized 
asset to arrearages.

Reason for change

    First, adding foster care to the programs covered by 
specific expedited procedures conforms this section of the 
statute to amendments made elsewhere in order to ensure 
internal consistency in the statute. Second, a major goal of 
the child support provisions of the welfare reform legislation 
was to streamline court procedures and thereby increase 
efficiency. Noncustodial parents responsible for paying child 
support are required to notify child support officials of any 
change of address. Thus, the due process requirement to inform 
parties of hearings and other proceedings should be fulfilled 
if the hearing notice is delivered to the most recent address 
filed by the payee. States are required to adopt this provision 
so they can avoid the delays and expense involved in taking 
several actions, over a period of days or weeks, trying to 
locate payees. Third, the amendment clarifying terminology 
makes this section of the statute consistent with other 
amendments. Fourth, the Act created the case registry of child 
support orders and required States to have procedures to update 
information in the registry. Thus, the registry is the best 
place to find current information or addresses for the purpose 
of sending notices. Fifth, clarifying that States must always 
pay current support before paying arrearages maximizes the 
amount of child support money that goes directly to the family.

Effective date

    October 1, 1996.

          9. Voluntary paternity acknowledgment (section 309)

Present law

    One of the mandatory procedures States must have is a 
program of voluntary paternity acknowledgment in hospitals. As 
part of this program, States must give notice, both orally and 
in writing, of the alternatives to, the legal consequences of, 
and the rights and responsibilities that arise from a legal 
acknowledgment of paternity. (Section 466)

Explanation of provision

    This technical amendment allows States to give the required 
notice of alternatives, legal consequences, and rights and 
responsibilities through the use of video or audio equipment, 
rather than orally (written notice is still required).

Reason for change

    Allowing States to inform parents of the advantages and 
responsibilities of voluntary acknowledgment of paternity 
through the use of video and audio equipment can save staff 
time, save money, and promote effective and detailed 
presentations.

Effective date

    October 1, 1996.

  10. calculation of paternity establishment percentage (section 310)

Present law

    The Secretary must ensure that States achieve specified 
levels of paternity establishment each year. Although States 
must eventually achieve a 90 percent paternity establishment 
rate, they have several years to reach this level. As States 
move toward the 90 percent requirement, a State with an 
establishment rate of not less than 75 percent but less than 90 
percent must exceed the previous year's percentage by 2 
percentage points; States with a percentage of not less than 50 
but less than 75 must exceed the previous year by 3 percentage 
points; States with a percentage of not less than 45 but less 
than 50 must exceed the previous year by 4 percentage points; 
States with a percentage of not less than 40 but less than 45 
must exceed the previous year by 5 percentage points; States 
with a percentage of less than 40 must exceed the previous year 
by 6 percentage points. The State may define its paternity 
establishment percentage with reference either to the child 
support enforcement caseload or to all births in the State. In 
either case, the total number of children must not include any 
child (1) who is a dependent child because of the death of a 
parent unless paternity has been established for such child, or 
(2) whose parent is refusing to cooperate with the IV-D or IV-E 
agency because of good cause. (Section 452)

Explanation of provision

    This amendment clarifies that the children excluded from 
the paternity establishment percentage calculation are excluded 
regardless of whether the State uses the child support 
enforcement caseload as the base or all births in the State as 
the base.

Reason for change

    This amendment clears up potential confusion about the 
policy of allowing child exclusions to apply to both the 
paternity establishment calculation based on the child support 
cases and the calculation based on all births in the State.

Effective date

    August 22, 1996

11. means available for provision of technical assistance and operation 
            of federal Parent Locator Service (Section 311)

Present Law

    The Secretary must provide information dissemination and 
technical assistance to the States, train State and Federal 
staff, conduct staffing studies, and conduct research and 
demonstration projects of regional or national significance 
related to child support enforcement. (Section 452)

Explanation of provision

    (a) Technical Assistance.--This amendment inserts standard 
language giving the Secretary flexibility in how technical 
assistance is provided; i.e., directly by HHS or ``through 
grants, contracts, or interagency agreements''.
    (b) Operation of Federal Parent Locator Service.--A heading 
is changed to make it more descriptive; the standard language 
referred to above in (a) is inserted to provide the Secretary 
flexibility in operating the FPLS; and language is included 
requiring that funds appropriated for the FPLS remain available 
until expended.

Reason for change

    (a) Technical Assistance.--Giving the Secretary the 
authority to provide technical assistance promotes 
effectiveness and efficiency by helping States improve their 
programs.
    (b) Operation of Federal Parent Locator Service.--Giving 
the Secretary the authority to operate the Federal Parent 
Locator Service directly or through grants, contracts, or 
interagency agreements promotes effectiveness and efficiency by 
providing the Secretary with the flexibility to select the best 
qualified unit, agency, or outside contractor to conduct the 
FPLS.

Effective date

    August 22, 1996.

 12. authority to collect support from federal employees (section 312)

Present law

    Money due from or payable by the United States or the 
District of Columbia to any individual is subject to wage 
withholding and any other legal process brought by a State to 
enforce child support. Each Federal agency, including agencies 
of the armed forces, must designate an agent to receive orders 
and accept service of process in child support and alimony 
cases; the name, position, mailing address, and telephone 
number of the agent must be published annually in the Federal 
Register. Upon receiving service, process, or interrogatory 
with respect to child support, the agent must send written 
notice of the service to the affected individual within 15 days 
and respond to the service or order within 30 days. Most forms 
of income and compensation due from the United States are 
subject to garnishment for child support. (Section 459)

Explanation of provision

    (a) Response to Notice or Process.--Slight changes in 
wording are made to clarify the responsibility of Federal 
agencies to withhold money or to answer interrogatories 
regarding child support.
    (b) Moneys Subject to Process.--The language in this 
section of the Act required Federal agencies to subject to 
garnishment wages ``paid or payable'' to employees. Money that 
has already been paid cannot be garnished. Thus, the term 
``paid'' is struck each place it appears.
    (c) Conforming Amendment.--A section reference is 
corrected.

Reason for change

    (a) Response to Notice or Process.--These amendments 
clarify the responsibilities of Federal agencies.
    (b) Moneys Subject to Process.--Removing the word ``paid'' 
in several places eliminates a logical fallacy (that income 
already paid can be withheld) from the statute.
    (c) Conforming Amendment.--The amendment makes the statute 
internally consistent.

Effective date

    August 22, 1996.

             13. Definition of Support Order (Section 313)

Present law

    As described above (see #4), the Secretary is required to 
establish and maintain a Federal Parent Locator Service to 
provide information to States on custodial and noncustodial 
parents. According to this definition, a ``support order'' is a 
judgment, decree, or order, issued by a court or administrative 
agency of competent jurisdiction, for the support and 
maintenance of a child or a child and the parent with whom the 
child lives, which provides for monetary support, health care, 
arrearages, reimbursement, and various penalties and fees of a 
spousal support order in the case of a custodial parent of a 
child receiving child support services from the State.

Explanation of provision

    This amendment modifies the definition of a support order 
to include spousal support that applies to spouses with a child 
even if child support is not part of the order.

Reason for change

    There are relatively few spousal orders in families with 
minor children that do not include support for children. Given 
that the major purpose of the child support program is to 
ensure that children receive child support payments, the 
definition of child support order is expanded to include these 
few cases of spousal orders that do not mention children so 
that States may enforce these orders and thereby help more 
children.

Effective date

    August 22, 1996

     14. State Law Authorizing Suspension of Licenses (Section 314)

Present law

    One of the Federally-required enforcement procedures is 
authority for the State child support enforcement agency 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. 
(Section 466)

Explanation of provision

    This amendment clarifies that recreational licenses include 
sporting licenses.

Reason for change

    This amendment is included because States have reported 
that some courts have questioned whether ``recreational 
licenses'' include ``sporting licenses.'' To remove any doubt 
of Congressional intent, this amendment clarifies that sporting 
licenses are included as one of the types of licenses that 
States must be able to suspend in the case of payees who fail 
to make their child support payments as ordered.

Effective date

    October 1, 1996.

          15. International Support Enforcement (Section 315)

Present law

    As part of its State plan (see #1 above), States must 
respond to requests for child support services from countries 
with whom the U.S. has reciprocal agreements and countries with 
whom the State has a reciprocal agreement. States must respond 
to these requests as if they originated from another State. 
(Section 454)

Explanation of provision

    A section reference is corrected.

Reason for change

    This amendment corrects a section reference to ensure that 
the statute reflects Congressional intent.

Effective date

    October 1, 1996.

     16. Child Support Enforcement for Indian Tribes (Section 316)

Present law

    As part of its State plan (see #1 above), States that 
receive funding for child support programs under the Social 
Security Act and that have Indian country within their borders 
may enter into cooperative agreements with tribal organizations 
if the tribal organization demonstrates that it has an 
established tribal court system with the authority to perform a 
wide variety of child support enforcement activities. (Section 
454)

Explanation of provision

    (a) Cooperative Agreements by Indian Tribes and States for 
Child Support Enforcement.--This section makes minor wording 
changes to clarify the provision allowing Indian tribes to 
operate child support programs.
    (b) Correction of Subsection Designation.--An incorrect 
subsection designation is corrected to ensure that the statute 
reflects Congressional intent.
    (c) Direct Grants to Tribes.--The provision in the Act 
allowing direct Federal funding of tribal child support 
programs requires that tribes be able to meet all State plan 
requirements. This amendment allows direct funding of any tribe 
that can demonstrate to the Secretary that it has the capacity 
to operate a child support program meeting the major objectives 
of the statute including establishment of paternity; 
establishment, modification, and enforcement of support orders; 
and location of absent parents.

Reason for change

    (a) Cooperative Agreements by Indian Tribes and States for 
Child Support Enforcement.--These minor wording changes were 
made to eliminate ambiguity.
    (b) Correction of Subsection Designation.--The cross-
reference is corrected to ensure that the statute reflects 
Congressional intent.
    (c) Direct Grants to Tribes.--Congress is in favor of 
tribes conducting their own child support enforcement programs 
if they can do so effectively. The provision allowing tribes to 
conduct their own program in the Act, however, required tribes 
to meet every State plan requirement before the Secretary could 
authorize a separate program. Since few if any tribes can meet 
this stringent requirement, the provision is amended to allow 
approval by the Secretary if tribes can meet the major 
objectives of the child support program.

Effective date

    October 1, 1996.

17. Continuation of Rules for Distribution of Support in the Case of a 
                     Title IV-E Child (Section 317)

Present law

    As spelled out in detail above (see #2), States must follow 
very specific rules in the distribution of child support 
payments to families, the State child support program, and the 
Federal government. (Section 457)

Explanation of provision

    Language is added to require that the child support 
distribution rules (which specify how collections are to be 
distributed among the family, the State, and the Federal 
government) apply to foster care cases as well as welfare 
cases.

Reason for change

    This amendment corrects an oversight of previous 
legislation by extending the child support distribution rules 
to collections made on behalf of children who received benefits 
from the foster care maintenance program.

Effective date

    August 22, 1996.

    18. Good Cause in Foster Care and Food Stamp Cases (Section 318)

Present law

    As part of its State plan, States must provide child 
support enforcement services to the families of children who 
receive: benefits under the Temporary Assistance for Needy 
Families (TANF) Program (formerly the Aid to Families with 
Dependent Children Program); foster care maintenance payments 
under the Social Security Act; or medical assistance under the 
Medicaid program. However, States must not provide these 
services if there is ``good cause'' (such as family violence or 
potential harm to the child) not to provide such services. The 
specific grounds for good cause exceptions, and the application 
of the exemption in particular cases, may be determined by the 
State agency administering the TANF program, the State agency 
administering the child support program, or the State agency 
administering the Medicaid program. To make such a 
determination, the administering agency may require families to 
provide information and to appear at interviews, hearings, or 
legal proceedings. (Section 454)

Explanation of provision

    This amendment extends the good cause exceptions to food 
stamp recipients and allows the State food stamp agency the 
option of developing, as well as applying in specific cases, 
the good cause exceptions. Legislation under the jurisdiction 
of the Agriculture Committee gives authority to the Secretary 
of Agriculture to develop the criteria for good cause 
exceptions to child support requirements for the Food Stamp 
program. This technical amendment makes the Social Security Act 
consistent with the food stamp legislation by preserving the 
Secretary of Agriculture's authority to set the good cause 
criteria. The State food stamp agency retains the authority to 
apply, at State option, the good cause criteria in specific 
cases. Conforming amendments are also made to clarify that both 
the food stamp and foster care programs are included in the 
good cause exceptions from cooperation in the child support 
program.

Reason for change

    The good cause exceptions, which exempt custodial parents 
from cooperating in child support if there is a threat of harm 
to the custodial parent or children, are an essential part of 
the child support program. To reimburse taxpayers for 
expenditures on food stamp benefits, the welfare reform law 
gave States the option of collecting child support payments 
from the noncustodial parent if the custodial parent and 
children were participating in the food stamp program. This 
amendment simply extends the good cause exceptions that apply 
to the TANF block grant and Medicaid programs to the food stamp 
program.

Effective date

    October 1, 1996.

            19. Date of Collection of Support (Section 319)

Present law

    States must establish and operate a statewide Disbursement 
Unit for the collection and disbursement of child support 
payments. Cases included in the State Disbursement Unit must 
include all cases that are part of the State child support 
program (both welfare and non-welfare cases) and cases not 
being enforced by the State child support program but with an 
order initially issued on or after January 1, 1994 and in which 
the income of the noncustodial parent is subject to wage 
withholding. State Disbursement Units, using automated 
procedures, electronic processes, and computer-driven 
technology to the maximum extent feasible, must: receive 
payments from parents, employers, and other States; make 
payments to custodial parents and other obligees, the State 
child support agency, and agencies of other States; make 
accurate identification of payments; ensure prompt disbursement 
of the custodial parent's share of payments; and furnish 
parents, upon request, with timely information on the current 
status of payments. The Unit must disburse payments from the 
employer or other source within 2 business days after receipt. 
(Section 454B)

Explanation of provision

    The date of receipt of child support is changed from the 
date of withholding by the employer to the date of receipt by 
the State Disbursement Unit. If the disbursement unit receives 
two payments in one month, one of the payments must be treated 
as a payment against arrearages, which may result in a loss of 
current support for a family that formerly received welfare. 
But sometimes the receipt of two payments in one month is 
caused by irregularities in the payroll cycles of particular 
employers. To avoid requiring States to treat these cases as 
arrearage payments, State disbursement units are given the 
authority to deem the date of withholding to be the date of 
collection in appropriate cases.

Reason for change

    Many States have complained that using the date employers 
withhold income as the date of collection imposes unnecessary 
administrative burdens on States because they often must 
research each individual order to determine when the money was 
actually withheld by employers. To address this problem, the 
date of collection is changed from the date employers withhold 
income to the date States actually receive the money. Because 
peculiarities in employer pay schedules sometimes result in 
States receiving two checks in the same month, States are given 
flexibility in deeming payments collected when deducted from 
income by employers to avoid one of the checks being a payment 
against arrearages. Because the custodial parent always 
receives 100 percent of the payment of current support, but 
under most circumstances less than 100 percent of payments on 
arrearages, this flexibility in determining when the payment 
was collected will prevent custodial parents and children from 
losing money.

Effective date

    October 1, 1996.

    20. Administrative Enforcement in Interstate Cases (Section 320)

Present law

    States must have a variety of enforcement provisions and 
procedures in place. One of these procedures is administrative 
enforcement in interstate cases. More specifically, States must 
respond to requests from other States within 5 business days 
and must allow the order to remain an order of the initiating 
State. States must also transmit requests for assistance in 
child support cases to other States and include details that 
will enable the responding State to compare the information 
with information in their State data bases. The requesting 
State's request constitutes a certification of the amount of 
support under the order and the amount in arrears and must 
include an assurance that the State has complied with all 
procedural due process requirements. States must maintain 
records of the number of such requests received from other 
States, the number of cases for which the State collected 
support in response to requests, and the amount of such 
collected support. (Section 466)

Explanation of provision

    (a) Procedures.--The Act required States to ``respond'' to 
requests from another State within 5 days. Because the meaning 
of ``respond'' is unclear, and because responding in 5 days is 
inappropriate in many cases, the amendment clarifies that the 
major responsibilities of the receiving State are to conduct 
``high-volume automated administrative enforcement'' in which 
the request is matched against State databases to determine 
whether information on the location and income of the obligor 
is available in the responding State and to notify the 
requesting State of the results of the search. The provision 
also defines ``high-volume automated administrative 
enforcement'' and requires States to take these actions 
``promptly.''
    (b) Incentive Payments.--A clarification is made in the 
section on incentive payments to ensure that States receive 
Federal incentive funding for enforcing out-of-State child 
support orders.

Reason for change

    (a) Procedures.--Responding to requests from other States 
within 5 days was a flawed provision because the most frequent 
request is to locate an individual owing child support by 
performing ``high-volume automated'' data matches which 
typically cannot be performed within 5 days. The 5 day 
requirement is especially unfortunate because some of the major 
data bases are updated every 90 days and States may want to 
wait several days before performing the search so they can use 
an updated data base. The Committee amendment, therefore, 
requires States to perform the automated matches ``promptly''.
    (b) Incentive Payments.--This amendment clarifies 
Congressional intent to provide States with incentive funding 
for enforcing out-of-State orders.

Effective date

    October 1, 1996.

              21. Work Orders for Arrearages (Section 321)

Present law

    States must have a variety of enforcement provisions and 
procedures in place. One requirement is to have procedures 
under which the State has the authority in cases of past-due 
support to issue an order or to request that a court or an 
administrative process issue an order that requires the 
individual to pay support in accord with an approved plan or be 
subject to mandatory participation in work activities. (Section 
466)

Explanation of provision

    This amendment substitutes the term ``overdue support'' for 
``past-due support.''

Reason for change

    Because the statute currently uses the term ``past-due 
support'' in allowing States to impose work requirements on 
parents who owe child support arrearages, defined as the amount 
of delinquency determined under a court order, it is likely 
that a court order establishing the amount of the arrearage 
would be required before States could impose work orders. To 
avoid this cumbersome procedure, which would probably have the 
effect of minimizing State use of mandatory work for parents 
who owe arrearages, this amendment substitutes the term 
``overdue support'' because it is defined in such a way that 
only the original child support obligation, not the arrearage, 
must be determined by court order.

Effective date

    October 1, 1996.

      22. Additional Technical State Plan Amendments (Section 322)

Present law

    States must submit a State plan to the Secretary explaining 
the details of their child support enforcement program (see #1 
above). Among 33 specific elements of the State plan required 
by the Federal statute are three that are amended by this 
section. First,States must establish a service to locate 
noncustodial parents using several sources of information including the 
Federal Parent Locator Service. Second, States that have an agreement 
to participate in use of the Federal Parent Locator Service to locate 
noncustodial parents for the purpose of enforcing laws on child 
kidnapping or for making or enforcing child custody determinations must 
accept and transmit information authorized under the agreement, must 
impose and collect fees on individuals requesting such information 
sufficient to cover the costs to the State and the Secretary incurred 
in providing the information, and must take several related actions. 
Third, States must have in place several safeguards applicable to the 
handling of confidential information in order to protect the privacy 
rights of parties involved in child support activities. (Section 454)

Explanation of provision

    As explained in detail above (see #4 on the Federal Parent 
Locator Service), the Committee bill revises the FPLS. This 
amendment clarifies the State plan section of the statute to be 
consistent with the FPLS section of the statute by requiring 
States to provide locate information on both custodial and 
noncustodial parents for the purpose of establishing parentage; 
establishing, setting the amount of, modifying, or enforcing 
child support obligations; and making or enforcing child 
custody or visitation determinations (subject to privacy 
safeguards). It also clarifies that only certain types of 
information can be disclosed. Similar and conforming wording 
changes are also made to the privacy subparagraph of the State 
plan section.

Reason for change

    This amendment is a conforming amendment to provision #4 
(see above) which requires States to use information in the 
Federal Parent Locator Service to locate both custodial and 
noncustodial parents for certain purposes.

Effective date

    October 1, 1996.

    23. Federal Case Registry of Child Support Orders (Section 323)

Present law

    As part of the Federal Parent Locator Service (see #4 
above), by October 1, 1998 the Secretary must establish the 
``Federal Case Registry of Child Support Orders''. The Registry 
must contain abstracts of support orders and other information 
on each child support case in the State. (Section 453)

Explanation of provision

    Due to an oversight, the Act implies that only cases that 
are part of the State child support enforcement program must be 
included in the Federal Case Registry. This technical amendment 
clarifies that both child support orders in the State program 
and child support orders that are not part of the State program 
(in other words, all child support orders) be included in the 
Federal Case Registry.

Reason for change

    Congressional intent was to include all child support cases 
in each State's case registry of child support orders as well 
as every child support case in every State in the national 
registry of child support orders. Due to a drafting oversight, 
the Act implies that only cases that are part of the State 
child support enforcement program (perhaps 60 percent of all 
child support cases) must be included in the registries. This 
amendment clarifies Congressional intent by mandating that 
information on all child support cases be placed in the 
registries.

Effective date

    August 22, 1996.

    24. Full Faith and Credit for Child Support Orders (Section 324)

Present law

    Under the full faith and credit requirements, a court of a 
State that no longer has continuing exclusive jurisdiction of a 
child support order may enforce the order with respect to the 
portion of the obligation which has not been modified. (Section 
1738B of the U.S. Code)

Explanation of provision

    This provision clarifies that when two or more courts have 
issued child support orders for the same obligor and child and 
none of the courts would have continuing, exclusive 
jurisdiction, a court with current jurisdiction must issue an 
order and that order must be recognized by all parties.

Reason for change

    A major problem in interstate cases has been that more than 
one child support order, usually issued by courts in different 
States, are in effect simultaneously. As a result, it is often 
unclear which court has jurisdiction. The Uniform Interstate 
Family Support Act (UIFSA) has a provision, which was still 
being discussed at the time the Act was being debated, that 
clarifies which court has jurisdiction when two or more orders 
are in effect simultaneously. This amendment adopts the UIFSA 
provision in order to ensure that all States have the same 
provision requiring States to grant full faith and credit to 
the correct child support order.

Effective date

    August 22, 1996.

        25. Development Costs of Automated Systems (Section 325)

Present law

    The Secretary is required to distribute $400 million among 
the States to pay for the new automated data reporting 
requirements.

Explanation of provision

    (a) Definition of State.--Defines ``State'' to include all 
systems approved by the Secretary to receive advance funding 
pursuant to the Family Support Act of 1988 and systems that 
have received funding under a waiver.
    (b) Temporary Limitation on Payments.--Makes a conforming 
amendment to the funding formula for distributing the $400 
million among the States.

Reason for change

    (a) Definition of State.--The major effect of the new 
definition of ``State'' is that Los Angeles County will be 
treated as a State for purposes of data system funding. The 
Committee made this change because several years ago Los 
Angeles had created its own automated data system at the 
request of the Department of Health and Human Services.Thus, 
not to continue treating Los Angeles as a separate system would be 
unfair.
    (b) Temporary Limitation on Payments.--This conforming 
amendment makes two sections of the child support statute 
consistent thereby avoiding contradictory statutory provisions.

Effective date

    August 22, 1996.

           26. Additional Technical Amendments (Section 326)

Present law

    This section contains the procedures relating to income 
withholding of support payments. (Section 466) This section 
also pertains to the statewide automated data processing and 
information retrieval system. (Section 344 of the Act) The Act 
provided that an amount equal to 1 percent of the amount of 
child support collected on behalf of ''welfare'' cases paid to 
the Federal government be appropriated for technical assistance 
to the States, and that an amount equal to 2 percent of this 
amount be appropriated for operation of the Federal Parent 
Locator Service. (Section 215 of the Department of Labor, HHS, 
and Education and Related Agencies Appropriations Act of 1997) 
This section also pertains to the amount of the child support 
obligation. (Section 456) States are required to establish and 
operate an automated data system containing selected 
information on all newly-hired employees in the State. The term 
employee is defined ``within the meaning of Chapter 24 of the 
Internal Revenue Code of 1986.'' Finally, Federal child support 
law requires States to have a series of provisions and 
procedures that constitute an effective child support 
collection program. One of these mandatory procedures is wage 
withholding.

Explanation of provision

    (a) Elimination of Surplusage.--Three extraneous words 
(``of section 466'') that were erroneously included in the Act 
are eliminated.
    (b) Correction of Ambiguous Amendment.--Words are inserted 
to clarify the location in the statute of an amendment made by 
the Act.
    (c) Correction of Erroneously Drafted Provision.--Corrects 
a reference in the Fiscal Year 1997 Labor-HHS-Education 
appropriations bill for funding for technical assistance to the 
States and operation of the Federal Parent Locator Service. 
These amendments delete references to section 457(c) which 
pertains to the distribution of collected support, and instead 
refer to the child support enforcement program.
    (d) Elimination of Surplusage.--An extraneous ``and'' is 
struck from this section.
    (e) Correction of Date.--The income withholding provision 
of the welfare reform law inadvertently created a new category 
of income withholding cases by requiring income withholding in 
certain cases in which an order was issued before October 1, 
1996. The amendment changes the ``October 1, 1996'' date to 
``January 1, 1994'' .

Reason for change

    (a) Elimination of Surplusage.--Eliminating extraneous 
words shortens the statute and improves its readability.
    (b) Correction of Ambiguous Amendment.--Clarifying the 
precise location in the statute of an amendment improves the 
accuracy of the statute.
    (c) Correction of Erroneously Drafted Provision.--
Correcting section references that are wrong improves the 
accuracy of the statute.
    (d) Elimination of Surplusage.--Eliminating unnecessary 
words shortens the statute and improves its readability.
    (e) Correction of Date.--The ``October 1, 1996'' date 
appears to have been a drafting error. In any case, it was not 
Congressional intent to create a new category of child support 
cases.

Effective date

    Sections (a) and (e) October 1, 1996, other sections August 
22, 1996

                    27. Effective Date (Section 327)

Present law

    No provision.

Explanation of provision

    The amendments made by this title take effect as if they 
had been included in the Act.

Reason for change

    Both Federal and State officials need to know when the 
Federal statutory provisions become effective so they can know 
how much time they have to prepare and pass legislation and 
prepare for implementation.

Effective date

    Upon enactment.

      Title IV--Restricting Welfare and Public Benefits for Aliens

              Subtitle A--Eligibility for Federal Benefits

   1. Alien Eligibility for Federal Benefits: Limited Application to 
 Medicare and Benefits Under the Railroad Retirement Act (Section 401)

Present law

    Noncitizens who are ``non-qualified aliens'' (generally, 
illegal immigrants and nonimmigrants such as students) are 
ineligible for all Federal public benefits, with limited 
exceptions for emergency medical services, emergency disaster 
relief, immunizations and testing and treatment of symptoms of 
communicable diseases, community programs necessary for the 
protection of life or safety, certain housing benefits (only 
for current recipients), licenses and benefits directly related 
to work for which a nonimmigrant has been authorized to enter 
the U.S., and certain Social Security benefits protected by 
treaty or statute. (Section 401 of the Act)

Explanation of provision

    (a) Limited Application to Medicare.--Allows ``non-
qualified'' aliens who earned eligibility for Medicare benefits 
through work in the U.S. to receive them, so long as the alien 
was lawfully present when the work was performed and is 
lawfully present in the U.S. at the time of receipt of the 
benefits.
    (b) Limited Application to Benefits Under the Railroad 
Retirement Act.--Allows individuals who are categorized as 
``non-qualified aliens'' to claim railroad retirement and 
unemployment benefits if they are lawfully present.

Reason for change

    These provisions clarify that, despite general restrictions 
on Federal benefits for ``non-qualified'' aliens, certain 
benefits--specifically Medicare and Railroad Retirement and 
Unemployment Insurance--are to remain available to those who 
earned them through work.

Effective date

    August 22, 1996.

    2. Exceptions to Benefit Limitations: Corrections to Reference 
     Concerning Aliens Whose Deportation is Withheld (Section 402)

Present law

    Various provisions in Title IV of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 
provide exceptions for certain refugees and asylees (including 
aliens whose deportation is withheld) from general rules 
limiting aliens' eligibility for Federal, State, or local 
public benefits. (Sections 402, 403, 412, and 431 of the Act)

Explanation of provision

    Changes a reference and certain effective dates in the law 
concerning aliens whose removal has been withheld due to 
prospective persecution to account for the reorganization of 
the Immigration and Nationality Act by P.L. 104-208.

Reason for change

    Various provisions of Title IV of the welfare reform law 
except certain refugees and asylees from general rules limiting 
aliens' eligibility for Federal, State or local public 
benefits. The reference in these provisions to the statutory 
authority to withhold deportation does not take into account 
amendments to this authority made by the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996, which passed 
and was signed into law after welfare reform. The amendment 
reflects those changes, so that an alien whose deportation is 
withheld under the new provision is treated the same as one 
whose case was adjudicated under the old provision.

Effective date

    August 22, 1996.

   3. Veterans Exception: Application of Minimum Active Duty Service 
   Requirement; Extension to Unremarried Surviving Spouse; Expanded 
                  Definition of Veteran (Section 403)

Present law

    Noncitizens who are veterans, on active duty, or their 
spouses or unmarried dependent children are excepted from 
eligibility restrictions for benefits made under Title IV of 
the Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996. (Sections 402, 403, and 412 of the Act)

Explanation of provision

    (a) Application of Minimum Active Duty Service 
Requirement.--Clarifies the veterans/active duty exception to 
assure that it is limited to individuals who meet the minimum 
service requirements for veterans benefits (typically requiring 
active-duty service of at least 2 years, at least 1 year for 
reservists, or less for those experiencing service-connected 
disabilities).
    (b) Exception Applicable to Unremarried Surviving Spouse.--
The veterans/active duty exception is clarified to expressly 
cover unremarried surviving spouses of noncitizen veterans or 
active duty personnel who would have been excepted had they 
survived. The new exception requires that a marriage meet the 
minimum time requirements that apply to survivors benefits 
under veterans law.
    (c) Expanded Definition of Veteran.--Further clarifies the 
veterans/active duty exception to include two groups currently 
eligible for veterans benefits (those who died on active duty--
therefore making their families eligible--and certain Filipino 
veterans) under the exception for welfare benefits for 
noncitizens.

Reason for change

    Three changes are made to clarify the definition of veteran 
for purposes of exceptions to restrictions made under Title IV 
of the welfare reform bill. Each is made to conform the 
exception with related provisions in veterans law, to ensure 
that noncitizen veterans and families who qualify for veterans 
benefits will continue to qualify for welfare benefits as well. 
First, the same minimum duty requirements are expected of 
noncitizen veterans who claim welfare benefits as currently 
apply for receipt of veterans benefits. Second, the term 
``spouse'' is defined to include unremarried surviving spouses 
of veterans, again in keeping with standards now used in 
veterans law. Finally, two groups--certain Filipino veterans of 
World War II and the families of those who died on active 
duty--that currently qualify for certain veterans benefits 
based on their or their relatives' service are included under 
the coverage of the veterans exception.

Effective date

    August 22, 1996.

   4. Correction of Reference Concerning Cuban and Haitian Entrants 
                             (Section 404)

Present law

    Despite the 5-year restriction on Federal means-tested 
public benefits for qualified aliens who arrive in the U.S. 
after August 22, 1996, special refugee and entrant assistance 
remains available to Cuban and Haitian entrants (as defined in 
the Refugee Education Assistance Act of 1980). (Section 403 of 
the Act)

Explanation of provision

    The amendment makes a reference change to ensure that Cuban 
and Haitian entrants continue to be eligible to receive special 
entrant assistance during the months immediately after their 
entry, consistent with the intent of the Act.

Reason for change

    This reference change is made to ensure that certain Cuban 
and Haitian entrants will continue to qualify for special 
entrant assistance, in accordance with the intent of the Act.

Effective date

    August 22, 1996.

 5. Notification Concerning Aliens Not Lawfully Present: Correction of 
                       Terminology (Section 405)

Present law

    Section 404 of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 requires officials 
administering Temporary Assistance for Needy Families, 
Supplemental Security Income, and public housing programs to 
notify the Immigration and Naturalization Service about 
individuals they know are ``unlawfully in the United States.'' 
(Section 1631 of the Social Security Act and Section 27 of the 
U.S. Housing Act of 1937)

Explanation of provision

    This provision replaces ``unlawfully in the United States'' 
with ``not lawfully present in the United States'' to make the 
language of this section consistent with terminology used 
elsewhere in the statutes.

Reason for change

    This provision makes technical changes to conform the 
language of the welfare law with other statutes.

Effective date

    August 22, 1996.

   6. Freely Associated States: Contracts and Licenses (Section 406)

Present law

    Noncitizens who are ``non-qualified aliens'' (generally, 
illegal immigrants and nonimmigrants such as students) are 
ineligible for all Federal, State, and local public benefits, 
with limited exceptions for emergency medical services, 
emergency disaster relief, immunizations and testing and 
treatment of symptoms of communicable diseases, community 
programs necessary for the protection of life or safety, 
certain housing benefits (only for current recipients), 
licenses and benefits directly related to work for which a 
nonimmigrant has been authorized to enter the U.S., and certain 
Social Security benefits protected by treaty or statute. 
(Sections 401 and 411 of the Act)

Explanation of provision

    This change allows residents of the freely associated 
states (the Marshall Islands, the Federated States of 
Micronesia, and Palau) who are legally in the United States but 
are categorized as ``non-qualified aliens'' to receive Federal, 
State, and local contracts and professional or commercial 
licenses permitting them to work.

Reason for change

    The compacts of free association were intended to foster a 
close relationship between the United States and three Pacific 
island nations (the Marshall Islands, the Federated States of 
Micronesia, and Palau). For the United States, the relationship 
included military use rights and third country denial rights. 
For the freely associated states, the relationship included 
military protection, financial aid, and the right to enter, 
work, live, and be educated in the United States. Thus this 
provision clarifies that, in keeping with these compacts, 
residents of the freely associated states may enter the U.S. 
and pursue work by qualifying for contracts and professional 
and commercial licenses that are otherwise restricted to ``non-
qualified aliens.''

Effective date

    August 22, 1996.

   7. Congressional Statement Regarding Benefits for Hmong and Other 
                  Highland Lao Veterans (Section 407)

Present law

    Noncitizens who are veterans, on active duty, or their 
spouses or unmarried dependent children are excepted from 
eligibility restrictions for benefits made under Title IV of 
the Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996. (Sections 402, 403, and 412 of the Act)

Explanation of provision

    This provision lists several findings by the Congress 
pertaining to Hmong and other Highland Lao tribal peoples who 
fought on behalf of the United States during the Vietnam 
conflict: that they were recruited, armed, and trained by 
agencies of the United States government; that they sacrificed 
their own lives and saved the lives of American forces; that 
many of those who fought on behalf of the United States have 
since been admitted into the United States; and that these 
veterans would not qualify for the veterans exceptions to 
certain restrictions on welfare benefits for noncitizens in 
Title IV of the welfare reform bill. Thus, the provision 
expresses the sense of the Congress that Hmong and other 
Highland Lao veterans should be considered veterans for 
purposes of the veterans exceptions to certain restrictions on 
welfare for noncitizens.

Reason for change

    This provision expresses the sense of the Congress that 
Hmong and other Highland Lao veterans who fought on behalf of 
the United States during the Vietnam conflict should be treated 
like other noncitizen veterans under the welfare reform law, 
continuing benefits for them and their families. This would 
reinforce the intent of the law that welfare benefits are 
generally reserved for citizens and noncitizens who have worked 
or otherwise served our country.

Effective date

    Upon enactment.

                     Subtitle B--General Provisions

 8. Determination of Treatment of Battered Aliens As Qualified Aliens; 
Inclusion of Alien Child of Battered Parent as Qualified Alien (Section 
                                  411)

Present law

    In determining eligibility for Federal, State and local 
benefits, certain aliens who are battered or subjected to 
extreme cruelty by a sponsor or family member are included in 
the definition of ``qualified alien'' for purposes of receiving 
benefits. Further, deeming rules that would otherwise apply are 
waived for at least 12 months in such cases. These special 
rules apply to certain abused aliens themselves and, if they 
are children, to their innocent parents. (Section 431 of the 
Act)

Explanation of provision

    (a) Determination of Status by Agency Providing Benefits.--
To facilitate implementation of the special rules for abused 
aliens, an agency that is providing a benefit, and not the 
Attorney General, is to determine whether individual applicants 
qualify under the special rules.
    (b) Guidance Issued by Attorney General.--Adds the 
requirement that the Attorney General, after consulting with 
the heads of Federal agencies administering benefits, issue 
guidance on terms and methods used in administering this 
exception. Such guidance is to be in the Attorney General's 
sole and unreviewable discretion.
    (c) Inclusion of Alien Child of Battered Parent as 
Qualified Alien.--Because certain benefits depend on the 
eligibility of a child (for example, the former AFDC system and 
the new TANF block grant program), some families headed by a 
mother who had been battered would remain ineligible for 
certain benefits because the present law ``battered'' exception 
does not extend to the child. To allow for benefits in such 
cases, this provision amends the special rule that makes 
certain abused aliens ``qualified aliens'' to include the 
children of parents who have been abused.
    (d) Inclusion of Alien Child of Battered Parent Under 
Special Rule for Attribution of Income.--Similar to (c) above, 
special exceptions to deeming rules included in the immigration 
reform law with regard to battered individuals are applied to 
children of battered individuals.

Reason for change

    These provisions are intended to ease and improve the 
implementation of special exceptions (made in the immigration 
reform law passed after the welfare reform law near the close 
of the 104th Congress) for certain ``battered'' aliens. Thus 
the Attorney General is required, after consulting with other 
agency heads, to issue guidance (in her sole and unreviewable 
discretion) on terms and methods used in administering the 
exception. Agencies experienced in making eligibility 
determinations are to assess both an individual's basic 
eligibility for benefits as well as eligibility under the 
``battered'' exception. In each case the aim is to facilitate 
decision-making and speed the availability of benefits in 
appropriate cases. Further, the alien child of a battered 
individual is included under the scope of this exception, so 
that benefits linked to children, especially Temporary 
Assistance for Needy Families, will remain available for 
children and families in need. Finally, the children of 
battered individuals are excepted from deeming rules that would 
otherwise apply.
    It is useful to note that States may (but are not required 
to) provide exceptions to the 5-year time limit on Federal cash 
welfare assistance for individuals who have been battered or 
subjected to extreme cruelty (States may exempt up to 20 
percent of their caseload from the time limit).

Effective date

    August 22, 1996.

       9. Verification of Eligibility for Benefits (Section 412)

Present law

    The Attorney General must adopt regulations to verify the 
``qualified alien'' status of applicants for Federal benefits 
by no later than February 22, 1998. (Section 432 of the Act)

Explanation of provision

    (a) Regulations and Guidance.--To assist States in 
determining the eligibility of individual aliens for Federal, 
State and local benefits under the new welfare reform and 
immigration laws, this provision directs the Attorney General 
to issue near term-guidance to States (within 90 days of 
enactment of the technical corrections bill) and also to 
provide more thorough regulations by February 22, 1998.
    (b) Disclosure of Information for Verification.--Authorizes 
the disclosure of verification information about those who have 
been battered, including to non-governmental benefit providers, 
assuring that full benefits are made available to those 
eligible for this exception.

Reason for change

    This provision is designed to provide States with early 
Federal guidance on procedures to be used in verifying aliens' 
eligibility for benefits. In addition, to assist in 
administering the exception for certain ``battered'' aliens 
described above, this provision specifies that verification 
information about those who have been battered may be disclosed 
to non-governmental benefits providers, assuring that full 
benefits will be available to all who qualify.

Effective date

    With regard to interim guidance, the Attorney General must 
provide the guidance within 90 days after enactment of the 
technical corrections bill (in addition to issuing final 
regulations by February 22, 1998). Regarding disclosure of 
information, August 22, 1996.

      10. Qualifying Quarters: Disclosure of Quarters of Coverage 
    Information; Correction to Assure That Crediting Applies to All 
      Quarters Earned by Parents Before Child is 18 (Section 413)

Present law

    The welfare reform law excepts from its alienage 
restrictions individuals who have worked for at least 40 
quarters while in the U.S. Under this exception, each quarter 
of work performed by a parent while an alien was under the age 
of 18 is credited to the alien, and each quarter of work 
performed by a spouse of an alien during their marriage is 
credited to the alien. (Section 435 of the Act)

Explanation of provision

    (a) Disclosure of Quarters of Coverage Information.--
Provides explicit authority (notwithstanding restrictions in 
the Internal Revenue Code pertaining to the disclosure of tax 
data) for the Social Security Administration to release 
quarters of work information to State and other Federal 
agencies that need it to administer the ``40 quarters of work'' 
exception.
    (b) Correction to Assure that Crediting Applies to All 
Quarters Earned by Parents Before Child is 18.--Even though the 
Act credits noncitizen children with work performed by their 
parents prior to the child's turning 18, a child would not be 
credited with work performed by a parent prior to the child's 
birth. This provision makes a technical clarification so that 
children are credited with their parents' complete work 
history, not just that part that occurred between the child's 
birth and attaining age 18.

Reason for change

    Two changes are made to clarify Congressional intent in 
this section of the welfare reform law. First, to ensure that 
State and Federal agencies can access reliable data on aliens' 
work histories for purposes of providing exceptions for those 
who have worked at least 40 quarters, the Social Security 
Administration is authorized to release such data to agencies 
despite restrictions in the Internal Revenue Code. Second, 
children are credited with their parents' complete work 
history, not just that part that occurred between the child's 
birth and attaining age 18. This will have the effect of 
excepting from changes all, instead of only some, alien 
children whose parents have already performed at least 40 
quarters of work in the U.S.

Effective date

    August 22, 1996.

11. Statutory Construction: Benefit Eligibility Limitations Applicable 
 Only With Respect to Aliens Present in the United States (Section 414)

Present law

    Noncitizens who are ``non-qualified aliens'' (generally, 
illegal immigrants and nonimmigrants such as students) are 
ineligible for all Federal, State, and local benefits, with 
limited exceptions such as for emergency medical services. 
(Sections 401 and 411 of the Act)

Explanation of provision

    Clarifies that wages, pensions, and other earned payments 
(including veterans benefits) stemming from authorized work are 
not to be restricted for noncitizens living outside of the U.S.

Reason for change

    Without clarification, several government agencies 
expressed concerns that, for example, noncitizen veterans of 
the U.S. armed forces who have since returned to their home 
countries (technically making them ``non-qualified aliens'' 
under the welfare law) could lose access to veterans benefits 
they earned through their service here. Other concerns raised 
involved noncitizens who work or have worked at U.S. embassies 
overseas, who some feared might become ineligible to receive 
salaries or other earned benefits resulting from their work. 
This provision clarifies that in administering all provisions 
of Title IV, and especially Sections 401 and 411 relating to 
benefits for non-qualified aliens, restrictions on public 
benefits do not apply to earned benefits from work by 
noncitizens outside the U.S. or by noncitizens who have since 
left this country and are collecting veteran, pension or other 
benefits based on their prior work in the U.S.

Effective date

    August 22, 1996.

Subtitle C--Miscellaneous Clerical and Technical Amendments; Effective 
                                  Date

  12. Correcting Miscellaneous Clerical and Technical Errors (Section 
                                  421)

Present law

    Items affected by this section concern information 
reporting under Section 408 of the Social Security Act, alien 
eligibility for State and local public benefits, deeming with 
respect to State programs, treatment of battered aliens, and 
subtitle headings. (Sections 411, 412, 422, 431 and subtitles D 
and F of title IV of the Act)

Explanation of provision

    Makes a series of technical changes related to incorrect 
references, restoration of a provision inadvertently removed, 
clarification of changed terminology, and grammatical errors.

Reason for change

    These technical changes are made to correct erroneous 
references and other inadvertent mistakes made in the drafting 
of the Act.

Effective date

    The provision regarding information reporting is effective 
July 1, 1997; other provisions are effective August 22, 1996.

                    13. Effective date (Section 422)

Present law

    Provisions of the Personal Responsibility and Work 
Opportunity Reconciliation Act became effective after August 
22, 1996.

Explanation of provision

    Except as otherwise provided, the technical corrections 
made in this title are to take effect as if included in the 
Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996.

Reason for change

    Except as otherwise provided, the technical corrections 
made in this title are to take effect as if included in the 
Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996, to ease and improve the implementation of various 
provisions of the welfare reform law.

Effective date

    August 22, 1996.

                       Title V--Child Protection

  1. Conforming and Technical Amendments Relating to Child Protection 
                             (Section 501)

Present law

    The Secretary is directed to conduct a national random 
sample study of abused and neglected children; $6 million 
annually in entitlement funding is provided through Fiscal Year 
2002 (Section 429A of the Social Security Act). (Note. The 
Appropriations Committee rescinded the entitlement money for 
Fiscal Year 1996 and Fiscal Year 1997 but included funding for 
the study in Fiscal Year 1997 appropriations for social 
services research.) As a result of two separate laws enacted in 
the 104th Congress, two sections labeled ``471(a)(18)'' appear 
in the Social Security Act. The first provision addresses 
discrimination in foster and adoptive placements; the second 
provision deals with kinship care.

Explanation of provision

    (a) Methods Permitted for Conduct of Study of Child 
Welfare.--Standard language allowing HHS to conduct research 
``directly or through grants, contracts, or interagency 
agreements'' is inserted in the provision that authorizes the 
national study of abuse and neglect.
    (b) Redesignation of Paragraph.--This provision changes the 
designation of the subparagraph on kinship care, which was 
passed as part of welfare reform, from ``18'' to ``19''.

Reason for change

    (a) Methods Permitted for Conduct of Study of Child 
Welfare.--This amendment promotes effectiveness and efficiency 
by allowing the Secretary to conduct the Congressionally-
mandated study of child welfare directly or through grants, 
contract, or interagency agreements.
    (b) Redesignation of Paragraph.--Eliminating duplicate 
subparagraph numbers eliminates confusion in reading the 
statute and in designating cross references.

Effective date

    August 22, 1996.

    2. Additional Technical Amendments Relating to Child Protection 
                             (Section 502)

Present law

    As a result of two separate laws enacted in the 104th 
Congress, two sections labeled ''422(b)(9)'' appear in the 
Social Security Act. The first deals with recruitment of 
ethnically diverse foster families; the second establishes 
various protections for children in foster care.

Explanation of provision

    (a) Part B Amendments.--This provision changes the 
designation of the subparagraph on protection for children in 
foster care from ``9'' to ``10'' and changes a cross reference 
to the new subparagraph ``10''.
    (b) Part E Amendments.--A cross reference to the new 
subparagraph ``10'' is conformed.

Reason for change

    (a) Part B Amendments.--Eliminating duplicate subparagraph 
letters eliminates confusion in reading the statute and in 
designating cross references.
    (b) Part E Amendments.--Same as ``a''.

Effective date

    August 22, 1996.

                    3. effective date (section 503)

Present law

    No provision.

Explanation of provision

    The amendments made by this title take effect as if they 
had been included in the Act.

Reason for change

    Both Federal and State officials need to know when the 
Federal statutory provisions become effective so they can know 
how much time they have to prepare and pass legislation and 
prepare for implementation.

Effective date

    August 22, 1996.

                          Title VI--Child Care

1. conforming and technical amendments relating to child care (section 
                                  601)

Present law

    Each State is entitled to a fixed amount of child care 
funds each year, based on expenditures for child care in 
previous years under programs that have been replaced. 
Remaining entitlement funds are allotted among States, subject 
to matching and maintenance-of-effort requirements, according 
to the number of children in each State under age 13 (Section 
418 of the Social Security Act). ``State'' is defined as the 50 
States or the District of Columbia (Section 418(d) of the 
Social Security Act). The Act does not provide mandatory child 
care funds to the territories.

Explanation of provision

    (a) Funding.-- Makes several changes in the wording of 
headings and text to clarify the provisions on State allotments 
and Federal matching of State expenditures; also clarifies the 
method for reallocating unused child care funds.
    (b) Data Used to Determine Historic State Expenditures.--
The Act created new maintenance of effort requirements, based 
on historic State expenditures for child care, as a condition 
of receiving Federal funds above the general entitlement grant 
based on historic Federal payments. However, the data sources 
to be used in calculating Federal and State expenditures in the 
base years was not specified. This section specifies the 
appropriate data sources.
    (c) Definition of State.--Clarifies that the definition of 
the term ``State'' means the 50 States and the District of 
Columbia.

Reason for change

    (a) Funding.--The changes in wording of statutory headings 
and text make the statute easier to read and less subject to 
misinterpretation.
    (b) Data Used to Determine Historic State Expenditures.--
Specifying the precise sources of data to be used in 
calculating historic State expenditures eliminates confusion in 
achieving an unambiguous definition of this important term.
    (c) Definition of State.--Eliminating grammatically 
confusing language promotes accuracy and improves the 
readability of the statute.

Effective date

    October 1, 1996 except the provision on child care 
allotments among the States which become effective on October 
1, 1997.

    2. additional conforming and technical amendments (section 602)

Present law

    The Secretary is required to develop minimum child care 
standards for Indian tribes and tribal organizations that would 
apply in lieu of State or local requirements. States are 
required to collect and report specified data to the Secretary. 
The Secretary may disapprove the data submitted if the State 
uses sampling methods. States are not allowed to base program 
data that must be reported to the Federal government on 
statistical samples. States are required to submit aggregate 
data to the Secretary every 6 months; the Secretary must report 
to Congress every 2 years, with the first report due in 1997 
(Sections 658E, 658K, 658L, 658O, and 658P of the Child Care 
and Development Block Grant).

Explanation of provision

    A grammatical error is corrected by changing the term 
``tribal organization'' to the term ``tribal organizations.'' 
Several minor changes in data reporting are also made in this 
section including: reporting whether each member of the family 
unit is a single parent; dropping the requirement to report the 
amount of income attributable to several sources and indicating 
simply whether any income derives from each of several sources; 
and requiring States to indicate the amount of income both from 
the State program funded under Part A as well as whether the 
family had income from another State program that counts toward 
the Part A maintenance of effort requirement. States are given 
the authority to use scientific samples if the method of 
sampling is approved by the Secretary.

Reason for change

    The changes in data reporting were made at the request of 
the States through the National Governors Association and the 
American Public Welfare Association. The changes make it easier 
for States to fulfill the Federal data reporting mandate. 
Similarly, use of scientific sampling methods greatly reduces 
State expenses without sacrificing data accuracy or 
reliability.

Effective date

    October 1, 1996.

                        3. repeals (section 603)

Present law

    Child Development Associate Scholarships provide grants to 
States to help low-income individuals obtain the CDA 
credential. State Dependent Care Development Grants are used to 
develop before- and after-school child care programs and 
resource andreferral systems. Title X of the Elementary and 
Secondary Education Act authorizes programs of national significance; 
eligible activities include child care for students participating in 
these programs. Native Hawaiian Family-Based Education Centers conduct 
parent training programs and preschool programs. Of these four 
programs, Native Hawaiian Family-Based Education Centers is the only 
one currently funded.

Explanation of provision

    Four programs--the Child Development Associate Scholarship 
Assistance Act of 1985, the State Dependent Care Development 
Grants Act, the Title X (of the Elementary and Secondary 
Education Act) Programs of National Significance, and the 
Native Hawaiian Family-Based Education Centers--are repealed. 
The latter program is not repealed until fiscal year 1998 
because funding for Fiscal Year 1997 has already been 
appropriated.

Reason for change

    The authority to continue operating several defunct child 
care programs was eliminated in the House-passed version of the 
welfare reform bill. However, the provision was struck in the 
Senate because it violated the Byrd rule. Including the 
provision here eliminates defunct spending authority and 
promotes efficiency by streamlining the number of Federal child 
care programs.

Effective date

    October 1, 1996, except the provision on the Native 
Hawaiian Family-Based Education Centers which becomes effective 
on October 1, 1997.

                    4. effective dates (section 604)

Present law

    No provision.

Explanation of provision

    The amendments made by this title take effect as if they 
had been included in the Act (which made most child care 
provisions effective on October 1, 1996) except that the 
amendments clarifying the State allotments and requiring use of 
the current year rather than the 1995 Medicaid matching rate 
are effective beginning in fiscal year 1998.

Reason for change

    Both Federal and State officials need to know when the 
Federal statutory provisions become effective so they can know 
how much time they have to prepare and pass legislation and 
prepare for implementation.

Effective date

    Upon enactment.

                       III. VOTE OF THE COMMITTEE

    In compliance with clause 2(l)(2)(B) of rule XI of the 
Rules of the House of Representatives, the following statements 
are made concerning the votes of the Committee on Ways and 
Means in its consideration of the bill H.R. 1048.

                       motion to report the bill

    The bill, H.R. 1048, as amended, was ordered favorably 
reported by a rollcall vote of 33 yeas to 0 nays (with a quorum 
being present). The vote was as follows:

                                                                                                                
----------------------------------------------------------------------------------------------------------------
            Representatives                 Yea       Nay            Representatives             Yea       Nay  
----------------------------------------------------------------------------------------------------------------
Mr. Archer.............................        X   ........  Mr. Rangel.....................        X   ........
Mr. Crane..............................        X   ........  Mr. Stark......................        X   ........
Mr. Thomas.............................        X   ........  Mr. Matsui.....................        X   ........
Mr. Shaw...............................        X   ........  Mrs. Kennelly..................        X   ........
Mrs. Johnson...........................        X   ........  Mr. Coyne......................  ........  ........
Mr. Bunning............................        X   ........  Mr. Levin......................        X   ........
Mr. Houghton...........................        X   ........  Mr. Cardin.....................        X   ........
Mr. Herger.............................        X   ........  Mr. McDermott..................  ........  ........
Mr. McCrery............................        X   ........  Mr. Kleczka....................        X   ........
Mr. Camp...............................        X   ........  Mr. Lewis......................        X   ........
Mr. Ramstad............................        X   ........  Mr. Neal.......................        X   ........
Mr. Nussle.............................        X   ........  Mr. McNulty....................        X   ........
Mr. Johnson............................        X   ........  Mr. Jefferson..................        X   ........
Ms. Dunn...............................        X   ........  Mr. Tanner.....................        X   ........
Mr. Collins............................  ........  ........  Mr. Becerra....................        X   ........
Mr. Portman............................  ........  ........  Mrs. Thurman...................        X   ........
Mr. English............................  ........  ........                                                     
Mr. Ensign.............................        X   ........                                                     
Mr. Christensen........................  ........  ........                                                     
Mr. Watkins............................        X   ........                                                     
Mr. Hayworth...........................        X   ........                                                     
Mr. Weller.............................        X   ........                                                     
Mr. Hulshof............................        X   ........                                                     
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL

               A. Committee Estimate of Budgetary Effects

    In compliance with clause 7(a) of rule XIII of the Rules of 
the House of Representatives, the following statement is made: 
The Committee agrees with the estimate prepared by the 
Congressional Budget Office (CBO) which is included below.

    B. Statement Regarding New Budget Authority and Tax Expenditures

    In compliance with clause 2(l)(3)(B) of rule XI of the 
Rules of the House of Representatives, the Committee states 
that the provisions in the Committee bill, if enacted, would 
decrease direct spending by $51 million over the budget period 
Fiscal Years 1997-2002.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 2(l)(3)(C) of rule XI of the 
Rules of the House of Representatives requiring a cost estimate 
prepared by the Congressional Budget Office (CBO), the 
following report prepared by CBO is provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 28, 1997.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1048, a bill to 
make technical amendments relating to the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Sheila 
Dacey, Justin Latus, and Kathy Ruffing for federal costs, and 
Marc Nicole for state and local impacts.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

H.R. 1048--A bill to make technical amendments relating to the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996

                                summary

    H.R. 1048 would make corrections, mostly of a technical or 
clarifying nature, to the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Public Law 104-193) and 
to the Social Security Act. Most of its provisions would have 
no or negligible budgetary effects. The only substantive 
budgetary effects would come from provisions to extend the 
authority of the Commissioner of Social Security to waive 
certain provisions of law for research and demonstration 
purposes, to further restrict the payment of Social Security 
benefits to prisoners, and to change the requirements for 
distributing the proceeds of child support collections.
    H.R. 1048 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act of 1995 (UMRA), but CBO 
estimates that the direct cost of these provisions would not 
exceed the threshold established in the law ($50 million in 
1996, adjusted annually for inflation). The bill contains no 
private-sector mandates as defined in UMRA.

                estimated cost to the federal government

    The estimated budgetary impact of H.R. 1048 is displayed in 
the following table.

                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                                            Outlays by fiscal year in millions of dollars--     
                                                     -----------------------------------------------------------
                                                        1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
                                                 DIRECT SPENDING                                                
                                                                                                                
Spending Under Current Law:                                                                                     
    Child support collections.......................      -841    -1,057    -1,108    -1,110    -1,123    -1,178
    Food stamps.....................................    23,794    24,450    25,884    27,226    28,645    29,417
    Old-age, survivors, and disability insurance....   362,966   380,747   399,470   419,516   440,719   463,650
    Supplemental Security Income....................    27,258    26,135    28,001    32,593    29,733    34,638
                                                     -----------------------------------------------------------
        Total.......................................   413,177   430,275   452,247   478,225   497,974   526,527
Proposed Changes:                                                                                               
    Child support collections.......................     (\1\)       -11         2         5        -1        -1
    Food stamps.....................................     (\1\)         3     (\1\)        -1     (\1\)     (\1\)
    Old-age, survivors, and disability insurance....     (\1\)         6     (\1\)        -6        -9       -10
    Supplemental Security Income....................     (\1\)     (\1\)        -6        -7        -7        -8
                                                     -----------------------------------------------------------
        Total.......................................     (\1\)        -2        -4        -9       -17       -19
Spending Under H.R. 1048:                                                                                       
    Child support collections.......................      -841    -1,068    -1,106    -1,105    -1,124    -1,179
    Food stamps.....................................    23,794    24,453    25,884    27,225    28,645    29,417
    Old-age, survivors, and disability insurance....   362,966   380,753   399,470   419,510   440,710   463,640
    Supplemental Security Income....................    27,258    26,135    27,995    32,586    29,726    34,630
                                                     -----------------------------------------------------------
        Total.......................................   413,177   430,273   452,243   478,216   497,957   526,508
                                                                                                                
                                        AMOUNTS SUBJECT TO APPROPRIATION                                        
                                                                                                                
Administrative expenses of the Social Security                                                                  
 Administration.....................................     (\1\)     (\1\)         9         8         5         6
----------------------------------------------------------------------------------------------------------------
\1\ Less than $500,000.                                                                                         

    The costs of this legislation fall within budget functions 
600 (income security) and 650 (Social Security).

                           basis of estimate

Direct spending

    CBO's estimates assume that the bill would be enacted by 
July 1, 1997. The following sections describe only those 
sections of the bill that are estimated to have significant 
budgetary effects.
    Title II--Supplemental Security Income.--Despite the 
heading, most of the budgetary effects of Title II would occur 
in Social Security rather than in Supplemental Security Income. 
Many of the provisions appeared in H.R. 4039, a technical 
corrections bill that passed the House in September 1996 but 
died at the end of the 104th Congress.
    The Social Security Administration (SSA) has the authority 
to conduct certain research and demonstration (R&D) projects 
that occasionally require waivers of provisions of Title II of 
the Social Security Act. That waiver authority expired on June 
10, 1996. This bill would extend it until June 10, 1999. This 
would be the fifth extension since the waiver authority was 
enacted in 1980. When the waiver authority has been in effect, 
SSA has generally spent between $2 million and $7 million 
annually on the affected R&D projects. Because the proposed 
extension is effectively for two years, CBO judges that it 
would lead to outlays of $14 million, chiefly in fiscal years 
1998 and 1999.
    H.R. 1048 would also strengthen restrictions on the payment 
of Social Security benefits to prisoners. Current law sets 
strict limits on the payment of Supplemental Security Income 
(SSI) benefits to incarcerated people, and somewhat milder 
limits on such payments in the Old-Age, Survivors, and 
Disability Insurance (OASDI) program. SSI recipients who are in 
prison for a full month--regardless of whether they are 
convicted--are to have their benefits suspended while they are 
incarcerated. OASDI recipients who have been convicted of an 
offense carrying a maximum sentence of 1 year or more are to 
have their benefits suspended. Those who are convicted of 
lesser crimes, and those who are in jail awaiting trial, may 
still collect OASDI benefits. Those provisions are enforced 
chiefly by an exchange of computerized data between the Social 
Security Administration and the Federal Bureau of Prisons, 
state prisons, and some county jails. Those agreements are 
voluntary and, until recently, involved no payments to the 
institutions.
    The Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 changed that arrangement by 
directing SSA to pay institutions for reporting information 
that led to the identification of ineligible SSI recipients. 
The payment is $400 if the institution reports information 
within 30 days of confinement, and $200 if the report is made 
30 to 90 days after confinement. The law also exempts matching 
agreements between SSA and correctional institutions from 
certain provisions of the Privacy Act.
    This bill would establish analogous arrangements for the 
OASDI program. It would also drop the requirement that OASDI 
benefits be suspended only if the maximum sentence for the 
offense is 1 year or more. (A conviction would still be 
required; inmates who are in jail while they await trial could 
continue to collect benefits.) CBO estimated the effects of 
this provision, like its predecessor in the welfare reform law, 
by analyzing data from several sources that suggest about 4 
percent to 5 percent of prisoners were receiving Social 
Security, SSI benefits, or both before incarceration. Recent 
reports from SSA's Inspector General suggest that some of those 
prisoners are overlooked under current matching arrangements 
either because their institution has not signed an agreement or 
has not renewed one promptly.
    CBO estimates that, over the 1997-2002 period, the 
provision in H.R. 1048 would lead to payments of $36 million to 
correctional institutions out of the OASDI trust funds and 
benefit savings of $69 million, for a net saving of $33 
million. CBO also expects that the broader arrangement would 
encourage more correctional institutions to submit information, 
and would lead to spillover savings in the SSI program 
amounting to nearly $30 million over the 1997-2002 period. Both 
the payments and the savings in benefits would occur 
automatically, without the need for appropriations. The cost to 
SSA of administering the provision, in contrast, would be 
subject to appropriation and is estimated to total $28 million 
over six years (see below).
    Title III--Child Support.--Section 302(b) of H.R. 1048 
would give states flexibility to decide when to apply new rules 
for distributing past-due child support payments to former 
recipients of public assistance. The provision would allow 
states to delay implementation of some of the new distribution 
rules, creating savings in the near term, while accelerating 
implementation of other changes, creating some offsetting costs 
in later years. In addition, it would allow states to phase in 
the rules a little more slowly, thus creating some very small 
savings after 2000. On balance, CBO estimates a net federal 
savings of $6 million over the 1997-2002 period in child 
support, partially offset by costs of $2 million in Food Stamp 
expenditures.
    When a family stops receiving public assistance, states 
continue to collect and enforce the family's child support 
order. All amounts of child support collected on time are sent 
directly to the family. Under previous law, however, states 
often kept collections of past-due child support to reimburse 
themselves and the federal government for past welfare 
payments.
    Last year's welfare reform law requires states to 
distribute more past-due child support collections to former 
recipients of public assistance than under prior law, reducing 
the amount that the federal and state governments recoup from 
previous benefit payments. Those distribution rules will phase 
in starting in 1998:
          Starting in 1998, states will be required to pay 
        families any collections that are past-due from the 
        period after the family leaves public assistance (post-
        assistance arrears).
          Starting in 2001, states will be required to pay 
        families any collections that are past-due from the 
        period before the family received public assistance 
        (pre-assistance arrears. The requirement applies only 
        to families that begin to receive assistance after 
        1997.
    Section 302(b) would allow states to choose an alternative 
set of distribution rules. Under the alternative, states would 
apply the new rules for both pre- and post-assistance arrears 
starting in 1999, and the new requirement for pre-assistance 
arrears would apply to families that begin to receive public 
assistance in 1999 or thereafter.
    Many states already pay post-assistance arrears to 
families. CBO assumes these states would not exercise the 
option provided by H.R. 1048 because they would incur costs for 
earlier payment of pre-assistance arrears but no offsetting 
savings on payments of post-assistance arrears. This estimate 
assumes that about half of the remaining states, accounting for 
25 percent of child support collections, would choose to 
exercise the option provided by this bill. If more states 
choose to exercise the option, then savings would be greater.
    The provision would create federal savings in 1998 because 
states would not be required to give post-assistance arrears to 
families in that year and could instead keep the collections to 
reimburse themselves and the federal government. CBO estimates 
that the federal government would receive an additional $11 
million in child support collections in 1998. Some families who 
are affected by the new distribution rules receive food stamps. 
In 1998, those families would qualify for an extra $3 million 
in Food Stamp benefits because their child support income would 
be lowered.
    Giving pre-assistance arrears to families beginning in 1999 
instead of 2001 would create federal costs in 1999 and 2000, 
estimated at $2 million and $4 million (net of Food Stamp 
savings) respectively. Finally, the new rules would apply to 
families who begin to receive assistance after 1998 instead of 
1997. This creates small savings, $1 million a year, in 2001 
and 2002.

Amounts subject to appropriation

    CBO judges that the expansion of agreements between the 
Social Security Administration and correctional institutions 
would lead to higher administrative costs, estimated at $28 
million over the 1997-2002 period. CBO assumed that information 
about prison inmates--even if submitted in computerized form--
would ultimately have to be processed by hand before leading to 
a suspension of benefits that such investigations would cost 
about $300each, and that--because jails are high-turnover 
institutions--only about one out of five investigations would result in 
a suspension of benefits.

                      PAY-AS-YOU-GO CONSIDERATIONS

    Section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 sets up pay-as-you-go procedures for 
legislation affecting direct spending or receipts through 1998. 
These procedures exclude any effects on the outlays and 
revenues of the Social Security trust funds (which have their 
own scorecard). For pay-as-you-go purposes, CBO estimates that 
H.R. 1048 would reduce outlays by $8 million in 1998.

        estimated impact on state, local, and tribal governments

    H.R. 1048 contains intergovernmental mandates as defined in 
UMRA. However, CBO estimates that the direct cost of these 
provisions would be negligible and would not exceed the 
threshold established in the law ($50 million in 1996, adjusted 
annually for inflation). The new requirements include 
prohibiting states from collecting certain child support fees, 
requiring the distribution of a certain portion of child 
support collections for foster care recipients, and modifying 
some administrative provisions. The bill also contains several 
provisions that would provide state and local governments with 
additional flexibility that would help them achieve savings to 
offset some of the new costs. The bill would not have any other 
significant effects on the budgets of state, local, or tribal 
governments.

                 estimated impact on the private sector

    The bill contains no private-sector mandates as defined in 
UMRA.
    Estimate prepared by.--Federal Costs: Sheila Dacey, Justin 
Latus, and Kathy Ruffing. Impact on State, Local, and Tribal 
Governments: Marc Nicole. Impact on the Private Sector: Kathryn 
Rarick.
    Estimate approved by.--Paul N. Van de Water, Assistant 
Director for Budget Analysis.

 V. OTHER MATTERS REQUIRED TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the need for this legislation was confirmed by an 
oversight hearing of the Subcommittee on Human Resources. The 
Subcommittee on Human Resources held a hearing on various 
technical corrections to Public Law 104-193, the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996, 
on February 26, 1997.

B. Summary of Findings and Recommendations of the Government Reform and 
                          Oversight Committee

    In compliance with clause 2(l)(3)(D) of rule XI of the 
Rules of the House of Representatives, the Committee states 
that no oversight findings or recommendations have been 
submitted to the Committee on Government Reform and Oversight 
regarding the subject of the bill.

                 C. Constitutional Authority Statement

    With respect to clause 2(l)(4) of rule XI of the Rules of 
the House of Representatives, relating to Constitutional 
Authority, the Committee states that the Committee's action in 
reporting the bill is derived from Article I of the 
Constitution, Section 8 (``The Congress shall have power to lay 
and collect taxes, duties, imposts and excises, to pay the 
debts and to provide for * * * the general Welfare of the 
United States * * *'').

       VI. CHANGES IN EXISTING LAWS MADE BY THE BILL, AS REPORTED

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                          SOCIAL SECURITY ACT

          * * * * * * *

TITLE II--FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE BENEFITS

    federal old-age and survivors insurance trust fund and federal 
                    disability insurance trust fund

  Sec. 201. (a) * * *
          * * * * * * *
  (g)(1)(A) The Managing Trustee of the Trust Funds (which for 
purposes of this paragraph shall include also the Federal 
Hospital Insurance Trust Fund and the Federal Supplementary 
Medical Insurance Trust Fund established by title XVIII) is 
directed to pay from the Trust Funds into the Treasury--
          (i) * * *
          (ii) the amounts estimated (pursuant to the 
        applicable method prescribed under paragraph (4) of 
        this subsection) by the Commissioner of Social Security 
        which will be expended, out of moneys made available 
        for expenditures from the Trust Funds, during such 
        three-month period to cover the cost of carrying out 
        the functions of the Social Security Administration, 
        specified in section 232, which relate to the 
        administration of provisions of the Internal Revenue 
        Code of 1986 other than those referred to in clause (i) 
        and the functions of the Social Security Administration 
        in connection with the withholding of taxes from 
        benefits, as described in section 207(c), pursuant to 
        requests by persons entitled to such benefits or such 
        persons' representative payee.
          * * * * * * *
For purposes of this subparagraph, the term ``continuing 
disability review'' means a review conducted pursuant to 
section 221(i) and a review or disability eligibility 
redetermination conducted to determine the continuing 
disability and eligibility of a recipient of benefits under the 
supplemental security income program under title XVI, including 
any review or redetermination conducted pursuant to section 207 
or 208 of the Social Security Independence and Program 
Improvements Act of 1994 (Public Law 103-296) and the functions 
of the Social Security Administration in connection with the 
withholding of taxes from benefits, as described in section 
207(c), pursuant to requests by persons entitled to such 
benefits or such persons' representative payee.
  (B) After the close of each fiscal year--
          (i) the Commissioner of Social Security shall 
        determine--
                  (I) the portion of the costs, incurred during 
                such fiscal year, of administration of this 
                title, title XVI, and title XVIII for which the 
                Commissioner is responsible and of carrying out 
                the functions of the Social Security 
                Administration, specified in section 232, which 
                relate to the administration of provisions of 
                the Internal Revenue Code of 1986 (other than 
                those referred to in clause (i) of the first 
                sentence of [subparagraph (A)),] subparagraph 
                (A)) and the functions of the Social Security 
                Administration in connection with the 
                withholding of taxes from benefits, as 
                described in section 207(c), pursuant to 
                requests by persons entitled to such benefits 
                or such persons' representative payee, which 
                should have been borne by the general fund of 
                the Treasury.
          * * * * * * *
  (C) After the determinations under subparagraph (B) have been 
made for any fiscal year, the Commissioner of Social Security 
and the Secretary shall each certify to the Managing Trustee 
the amounts, if any, which should be transferred from one to 
any of the other such Trust Funds and the amounts, if any, 
which should be transferred between the Trust Funds (or one of 
the Trust Funds) and the general fund of the Treasury, in order 
to ensure that each of the Trust Funds and the general fund of 
the Treasury have borne their proper share of the costs, 
incurred during such fiscal year, for--
          (i) the parts of the administration of this title, 
        title XVI, and title XVIII for which the Commissioner 
        of Social Security is responsible,
          (ii) the parts of the administration of title XVIII 
        for which the Secretary is responsible, and
          (iii) carrying out the functions of the Social 
        Security Administration, specified in section 232, 
        which relate to the administration of provisions of the 
        Internal Revenue Code of 1986 (other than those 
        referred to in clause (i) of the first sentence of 
        subparagraph (A)) and the functions of the Social 
        Security Administration in connection with the 
        withholding of taxes from benefits, as described in 
        section 207(c), pursuant to requests by persons 
        entitled to such benefits or such persons' 
        representative payee.
The Managing Trustee shall transfer any such amounts in 
accordance with any certification so made.
  (D) The determinations required under subclauses (IV) and (V) 
of subparagraph (B)(i) shall be made in accordance with the 
cost allocation methodology in existence on the date of the 
enactment of the Social Security Independence and Program 
Improvements Act of 1994, until such time as the methodology 
for making the determinations required under such subclauses is 
revised by agreement of the Commissioner and the Secretary, 
except that the determination of the amounts to be borne by the 
general fund of the Treasury with respect to expenditures 
incurred in carrying out the functions of the Social Security 
Administration specified in section 232 and the functions of 
the Social Security Administration in connection with the 
withholding of taxes from benefits as described in section 
207(c) shall be made pursuant to the applicable method 
prescribed under paragraph (4).
          * * * * * * *
  (4) The Commissioner of Social Security shall utilize the 
method prescribed pursuant to this paragraph, as in effect 
immediately before the date of the enactment of the Social 
Security Independence and Program Improvements Act of 1994, for 
determining the costs which should be borne by the general fund 
of the Treasury of carrying out the functions of the 
Commissioner, specified in section 232, which relate to the 
administration of provisions of the Internal Revenue Code of 
1986 (other than those referred to in clause (i) of the first 
sentence of paragraph (1)(A)). The Board of Trustees of such 
Trust Funds shall prescribe before January 1, 1998, the method 
of determining the costs which should be borne by the general 
fund in the Treasury of carrying out the functions of the 
Social Security Administration in connection with the 
withholding of taxes from benefits, as described in section 
207(c), pursuant to requests by persons entitled to such 
benefits or such persons' representative payee. If at any time 
or times thereafter the Boards of Trustees of such Trust Funds 
consider such action advisable, they may modify the method of 
determining such costs.
          * * * * * * *

            old-age and survivors insurance benefit payments

                       Old-Age Insurance Benefits

  Sec. 202. (a) * * *
          * * * * * * *

   Limitation on Payments to Prisoners and Certain Other Inmates of 
                      Publicly Funded Institutions

  (x)(1)(A) Notwithstanding any other provision of this title, 
no monthly benefits shall be paid under this section or under 
section 223 to any individual for any month [during] throughout 
which such individual--
          (i) is confined in a jail, prison, or other penal 
        institution or correctional facility pursuant to his 
        conviction of [an offense punishable by imprisonment 
        for more than 1 year (regardless of the actual sentence 
        imposed)] a criminal offense, [or]
          (ii) is confined by court order in an institution at 
        public expense in connection with--
                  (I) a verdict or finding that the individual 
                is guilty but insane, with respect to [an 
                offense punishable by imprisonment for more 
                than 1 year] a criminal offense,
                  (II) a verdict or finding that the individual 
                is not guilty of such an offense by reason of 
                insanity,
                  (III) a finding that such individual is 
                incompetent to stand trial under an allegation 
                of such an offense, or
                  (IV) a similar verdict or finding with 
                respect to such an offense based on similar 
                factors (such as a mental disease, a mental 
                defect, or mental incompetence)[.], or
          (iii) immediately upon completion of confinement as 
        described in clause (i) pursuant to conviction of a 
        criminal offense an element of which is sexual 
        activity, is confined by court order in an institution 
        at public expense pursuant to a finding that the 
        individual is a sexually dangerous person or a sexual 
        predator or a similar finding.
          * * * * * * *
  (3)(A) Notwithstanding the provisions of section 552a of 
title 5, United States Code, or any other provision of Federal 
or State law, any agency of the United States Government or of 
any State (or political subdivision thereof) shall make 
available to the Commissioner of Social Security, upon written 
request, the name and social security account number of any 
individual who is confined as described in paragraph (1) if the 
confinement is under the jurisdiction of such agency and the 
Commissioner of Social Security requires such information to 
carry out the provisions of this section.
  (B)(i) The Commissioner shall enter into an agreement, with 
any interested State or local institution comprising a jail, 
prison, penal institution, correctional facility, or other 
institution a purpose of which is to confine individuals as 
described in paragraph (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 individuals confined in the institution 
        as the Commissioner may require for the purpose of 
        carrying out paragraph (1); and
          (II) the Commissioner shall pay to the institution, 
        with respect to information described in subclause (I) 
        concerning each individual who is confined therein as 
        described in paragraph (1)(A), who receives a benefit 
        under this title for the month preceding the first 
        month of such confinement, and whose benefit under this 
        title is determined by the Commissioner to be not 
        payable by reason of confinement based on the 
        information provided by the institution, $400 (subject 
        to reduction under clause (ii)) if the institution 
        furnishes the information to the Commissioner within 30 
        days after the date such individual's confinement in 
        such institution begins, or $200 (subject to reduction 
        under clause (ii)) if the institution furnishes the 
        information after 30 days after such date but within 90 
        days after such date.
  (ii) The dollar amounts specified in clause (i)(II) shall be 
reduced by 50 percent if the Commissioner is also required to 
make a payment to the institution with respect to the same 
individual under an agreement entered into under section 
1611(e)(1)(I).
  (iii) There shall be transferred from the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Disability 
Insurance Trust Fund, as appropriate, such sums as may be 
necessary to enable the Commissioner to make payments to 
institutions required by clause (i)(II). Sums so transferred 
shall be treated as direct spending for purposes of the 
Balanced Budget and Emergency Deficit Control Act of 1985 and 
excluded from budget totals in accordance with section 13301 of 
the Budget Enforcement Act of 1990.
  (iv) The Commissioner is authorized to provide, on a 
reimbursable basis, information obtained pursuant to agreements 
entered into under clause (i) to any agency administering a 
Federal or federally-assisted cash, food, or medical assistance 
program for eligibility purposes.

           evidence, procedure, and certification for payment

  Sec. 205. (a) * * *
          * * * * * * *

                         Representative Payees

  (j)(1)(A) * * *
          * * * * * * *
  (4)(A)(i) A qualified organization may collect from an 
individual a monthly fee for expenses (including overhead) 
incurred by such organization in providing services performed 
as such individual's representative payee pursuant to this 
subsection if such fee does not exceed the lesser of--
          (I) * * *
          * * * * * * *
  (B) For purposes of this paragraph, the term ``qualified 
organization'' means any State or local government agency whose 
mission is to carry out income maintenance, social service, or 
health care-related activities, any State or local government 
agency with fiduciary responsibilities, or any community-based 
nonprofit social service agency which is bonded or licensed in 
each State in which it serves as a representative payee, if 
such agency, in accordance with any applicable regulations of 
the Commissioner of Social Security--
          (i) regularly provides services as the representative 
        payee, pursuant to this subsection or section 
        1631(a)(2), concurrently to 5 or more individuals, and
          * * * * * * *

                               assignment

  Sec. 207. (a) * * *
          * * * * * * *
  (c) Nothing in this section shall be construed to prohibit 
withholding taxes from any benefit under this title, if such 
withholding is done pursuant to a request made in accordance 
with section 3402(p)(1) of the Internal Revenue Code of 1986 by 
the person entitled to such benefit or such persons' 
representative payee.
          * * * * * * *

                computation of primary insurance amount

  Sec. 215. For the purposes of this title--

                        Primary Insurance Amount

  (a) * * *
          * * * * * * *

                  Cost-of-Living Increases in Benefits

  (i)(1) For purposes of this subsection--
          (A) * * *
          * * * * * * *
  (2)(A)(i) * * *
          * * * * * * *
  (D) If the Commissioner of Social Security determines that a 
base quarter in a calendar year is also a cost-of-living 
computation quarter, he shall publish in the Federal Register 
within 45 days after the close of such quarter a determination 
that a benefit increase is resultantly required and the 
percentage thereof. [He] The Commissioner of Social Security 
shall also publish in the Federal Register at that time (i) a 
revision of the range of the primary insurance amounts which 
are possible after the application of this subsection based on 
the dollar amount specified in subparagraph (C)(i) of 
subsection (a)(1) (with such revised primary insurance amounts 
constituting the increased amounts determined for purposes of 
such subparagraph (C)(i) under this subsection), or specified 
in subsection (a)(3) as in effect prior to 1979, and (ii) a 
revision of the range of maximum family benefits which 
correspond to such primary insurance amounts (with such maximum 
benefits being effective notwithstanding section 203(a) except 
for paragraph (3)(B) thereof (or paragraph (2) thereof as in 
effect prior to 1979)). Notwithstanding the preceding sentence, 
such revision of maximum family benefits shall be subject to 
paragraph (6) of section 203(a) (as added by section 101(a)(3) 
of the Social Security Disability Amendments of 1980).
          * * * * * * *

TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH 
                CHILDREN AND FOR CHILD-WELFARE SERVICES

          * * * * * * *

   PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
                                FAMILIES

          * * * * * * *

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] 27-month 
period ending with the close of the 1st quarter of 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) * * *
                          (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, 
                        consistent with section 407(e)(2).
          * * * * * * *
                          (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 
                        ratio of the State (as defined in 
                        section [403(a)(2)(B)] 
                        403(a)(2)(C)(iii)) for calendar years 
                        1996 through 2005.
  (b) Plan Amendments.--Within 30 days after a State amends a 
plan submitted pursuant to subsection (a), the State shall 
notify the Secretary of the amendment.
  [(b)] (c) Public Availability of State Plan Summary.--The 
State shall make available to the public a summary of any plan 
or plan amendment submitted by the State under this section.

SEC. 403. GRANTS TO STATES.

  (a) Grants.--
          (1) * * *
          (2) Bonus to reward decrease in illegitimacy ratio.--
                  (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 out-of-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.]
                  (B) Amount of grant.--
                          (i) In general.--If, for a bonus 
                        year, none of the eligible States is 
                        Guam, the Virgin Islands, or American 
                        Samoa, then the amount of the grant 
                        shall be--
                                  (I) $20,000,000 if there are 
                                5 eligible States; or
                                  (II) $25,000,000 if there are 
                                fewer than 5 eligible States.
                          (ii) Amount if certain territories 
                        are eligible.--If, for a bonus year, 
                        Guam, the Virgin Islands, or American 
                        Samoa is an eligible State, then the 
                        amount of the grant shall be--
                                  (I) in the case of such a 
                                territory, 25 percent of the 
                                mandatory ceiling amount (as 
                                defined in section 1108(c)(4)) 
                                with respect to the territory; 
                                and
                                  (II) in the case of a State 
                                that is not such a territory--
                                          (aa) if there are 5 
                                        eligible States other 
                                        than such territories, 
                                        $20,000,000, minus \1/
                                        5\ of the total amount 
                                        of the grants payable 
                                        under this paragraph to 
                                        such territories for 
                                        the bonus year; or
                                          (bb) if there are 
                                        fewer than 5 such 
                                        eligible States, 
                                        $25,000,000, or such 
                                        lesser amount as may be 
                                        necessary to ensure 
                                        that the total amount 
                                        of grants payable under 
                                        this paragraph for the 
                                        bonus year does not 
                                        exceed $100,000,000.
                  (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] illegitimacy 
                                        ratio of the State for 
                                        the most recent 2-year 
                                        period for which such 
                                        information is 
                                        available decreased as 
                                        compared to the [number 
                                        of such births that 
                                        occurred during] 
                                        illegitimacy ratio of 
                                        the State for the 
                                        previous 2-year 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. 
                                        In the case of a State 
                                        that is not a territory 
                                        specified in 
                                        subparagraph (B), the 
                                        comparative magnitude 
                                        of the decrease for the 
                                        State shall be 
                                        determined without 
                                        regard to the magnitude 
                                        of the corresponding 
                                        decrease for any such 
                                        territory.
                                          (bb) The rate of 
                                        induced pregnancy 
                                        terminations in the 
                                        State for [the fiscal 
                                        year] the calendar year 
                                        for which the most 
                                        recent data are 
                                        available is less than 
                                        the rate of induced 
                                        pregnancy terminations 
                                        in the State for 
                                        [fiscal year 1995] 
                                        calendar 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] 
                                        illegitimacy ratio of a 
                                        State for a [fiscal] 
                                        calendar year and the 
                                        [number of out-of-
                                        wedlock births that 
                                        occurred in] 
                                        illegitimacy ratio of a 
                                        State for [fiscal] 
                                        calendar year 1995 
                                        which is attributable 
                                        to a change in State 
                                        methods of reporting 
                                        data used to [calculate 
                                        the number of out-of-
                                        wedlock births] 
                                        calculate the 
                                        illegitimacy ratio; and
                                          (bb) any difference 
                                        between the rate of 
                                        induced pregnancy 
                                        terminations in a State 
                                        for a [fiscal] calendar 
                                        year and such rate for 
                                        [fiscal] calendar year 
                                        1995 which is 
                                        attributable to a 
                                        change in State methods 
                                        of reporting data used 
                                        to calculate such rate.
                          (ii) Bonus year.--The term ``bonus 
                        year'' means [fiscal] calendar years 
                        1999, 2000, 2001, and 2002.
                          (iii) Illegitimacy ratio.--The term 
                        ``illegitimacy ratio'' means, with 
                        respect to a State and a period--
                                  (I) the number of out-of-
                                wedlock births to mothers 
                                residing in the State that 
                                occurred during the period; 
                                divided by
                                  (II) the number of births to 
                                mothers residing in the State 
                                that occurred during the 
                                period.
                  (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) * * *
          * * * * * * *
                  (C) Qualifying state.--
                          (i) * * *
                          (ii) State must qualify in fiscal 
                        year [1997] 1998.--Notwithstanding 
                        clause (i), a State shall not be a 
                        qualifying State for any fiscal year 
                        after 1998 by reason of clause (i) if 
                        the State is not a qualifying State for 
                        fiscal year 1998 by reason of clause 
                        (i).
  (b) Contingency Fund.--
          (1) * * *
          * * * * * * *
          [(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 (g) or (i) of 
                                section 402 (as in effect 
                                during fiscal year 1994) for 
                                fiscal year 1994; or
                          [(ii) if the Secretary does not make 
                        a payment to the State under section 
                        418(a)(2) in the fiscal year--
                                  [(I) the sum of 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 additional 
                                qualified State expenditures, 
                                as defined in section 
                                409(a)(7)(B)(i), for child care 
                                assistance made under the Child 
                                Care and Development Block 
                                Grant Act of 1990; 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)] (4) 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)] (5) Needy state.--For purposes of paragraph 
        [(5)] (4), a State is a needy State for a month if--
                  (A) * * *
          * * * * * * *
          (6) Annual reconciliation.--
                  (A) In general.--Notwithstanding paragraph 
                (3), if the Secretary makes a payment to a 
                State under this subsection in a fiscal year, 
                then the State shall remit to the Secretary, 
                within 1 year after the end of the first 
                subsequent period of 3 consecutive months for 
                which the State is not a needy State, an amount 
                equal to the amount (if any) by which--
                          (i) the total amount paid to the 
                        State under paragraph (3) of this 
                        subsection in the fiscal year; exceeds
                          (ii) the product of--
                                  (I) the Federal medical 
                                assistance percentage for the 
                                State (as defined in section 
                                1905(b), as such section was in 
                                effect on September 30, 1995);
                                  (II) the State's reimbursable 
                                expenditures for the fiscal 
                                year; and
                                  (III) \1/12\ times the number 
                                of months during the fiscal 
                                year for which the Secretary 
                                made a payment to the State 
                                under such paragraph (3).
                  (B) Definitions.--As used in subparagraph 
                (A):
                          (i) Reimbursable expenditures.--The 
                        term ``reimbursable expenditures'' 
                        means, with respect to a State and a 
                        fiscal year, the amount (if any) by 
                        which--
                                  (I) countable State 
                                expenditures for the fiscal 
                                year; exceeds
                                  (II) historic State 
                                expenditures (as defined in 
                                section 409(a)(7)(B)(iii)), 
                                excluding any amount expended 
                                by the State for child care 
                                under subsection (g) or (i) of 
                                section 402 (as in effect 
                                during fiscal year 1994) for 
                                fiscal year 1994.
                          (ii) Countable state expenditures.--
                        The term ``countable expenditures'' 
                        means, with respect to a State and a 
                        fiscal year--
                                  (I) the qualified State 
                                expenditures (as defined in 
                                section 409(a)(7)(B)(i) (other 
                                than the expenditures described 
                                in subclause (I)(bb) of such 
                                section)) under the State 
                                program funded under this part 
                                for the fiscal year; plus
                                  (II) any amount paid to the 
                                State under paragraph (3) 
                                during the fiscal year that is 
                                expended by the State under the 
                                State program funded under this 
                                part.
          [(7) Other terms defined.--As used in this 
        subsection:
                  [(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.]
          (7) State defined.--As used in this subsection, the 
        term ``State'' means each of the 50 States and the 
        District of Columbia.
          (8) Annual reports.--The Secretary shall annually 
        report to the Congress on the status of the Fund.

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) * * *
          (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, or (at the option 
        of the State) August 21, 1996.
          * * * * * * *

SEC. 407. MANDATORY WORK REQUIREMENTS.

  (a) * * *
  (b) Calculation of Participation Rates.--
          (1) * * *
          (2) 2-parent families.--
                  (A) * * *
          * * * * * * *
                  (C) Family with a disabled parent not treated 
                as a 2-parent family.--A family that includes a 
                disabled parent shall not be considered a 2-
                parent family for purposes of subsections (a) 
                and (b) of this section.
          (3) Pro rata reduction of participation rate due to 
        caseload reductions not required by federal law and not 
        resulting from changes in state eligibility criteria.--
                  (A) * * *
          * * * * * * *
          (4) State option to include individuals receiving 
        assistance under a tribal family assistance plan or 
        tribal work program.--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 or under a tribal work program to which 
        funds are provided under this part.
          * * * * * * *
  (c) Engaged in Work.--
          (1) General rules.--
                  (A) * * *
                  (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] and the other parent in the 
                        family are participating in work 
                        activities for a total of 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] individual and the other 
                        parent in the family are participating 
                        in work activities for a total of at 
                        least 55 hours per week during the 
                        month, not fewer than [20] 50 hours per 
                        week of which are attributable to an 
                        activity 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 
                        or the State is a needy State (within 
                        the meaning of section 403(b)(6)), 12 
                        weeks), or if the participation is for 
                        a week that immediately follows 4 
                        consecutive weeks of such 
                        participation.
                  (B) Single parent or relative with child 
                under age 6 deemed to be meeting work 
                participation requirements if parent or 
                relative 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] who is the only parent or 
                caretaker relative in the family 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] Single teen head 
                of household or married teen who maintains 
                satisfactory school attendance deemed to be 
                meeting work participation requirements.--For 
                purposes of determining monthly participation 
                rates under sub-section (b)(1)(B)(i), a 
                recipient who is [a single] married or a 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] an average of at least 20 
                        hours per week during the month.
          * * * * * * *
  (e) Penalties Against Individuals.--
          (1) * * *
          (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] engage in work required in 
        accordance with this section 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.

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 the 
                date the State program funded under this part 
                commences (unless an exception described in 
                subparagraph (B), (C), or (D) of paragraph (7) 
                applies).]
          (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, unless the family includes a 
        minor child who resides with the family (consistent 
        with paragraph (10)) or a pregnant individual.
          * * * * * * *
          (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] ceases to receive 
                assistance under the program, which assignment, 
                on and after [the date the family leaves the 
                program] such date, 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)(I) September 30, 2000, if the 
                        assignment is executed on or after 
                        October 1, 1997, and before October 1, 
                        2000; or
                          [(ii)] (II) the date the family 
                        [leaves] ceases to receive assistance 
                        under the program, if the assignment is 
                        executed on or after October 1, 
                        2000[.]; or
                          (ii) if the State elects to 
                        distribute collections under section 
                        457(a)(6), the date the family ceases 
                        to receive assistance under the 
                        program, if the assignment is executed 
                        on or after October 1, 1998.
                  (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] ceases to receive assistance under the 
                program.
          * * * * * * *
          (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] 
                        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.
          * * * * * * *
                  (C) Hardship exception.--
                          (i) * * *
                          (ii) Limitation.--[The number] The 
                        average monthly 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 during the fiscal year 
                        or the immediately preceding fiscal 
                        year (but not both), as the State may 
                        elect.
                  [(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.]
                  (D) Disregard of months of assistance 
                received by adult while living in indian 
                country or an alaskan native village with 50 
                percent unemployment.--
                          (i) In general.--In determining the 
                        number of months for which an adult has 
                        received assistance under a State or 
                        tribal program funded under this part, 
                        the State or tribe shall disregard any 
                        month during which the adult lived in 
                        Indian country or an Alaskan Native 
                        village if the most reliable data 
                        available with respect to the month (or 
                        a period including the month) indicate 
                        that at least 50 percent of the adults 
                        living in Indian country or in the 
                        village were not employed.
                          (ii) Indian country defined.--As used 
                        in clause (i), the term ``Indian 
                        country'' has the meaning given such 
                        term in section 1151 of title 18, 
                        United States Code.
          * * * * * * *
  [(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.]
  (d) Special Rules Relating to Treatment of Certain Aliens.--
For special rules relating to the treatment of certain aliens, 
see title IV of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996.
  (e) Special Rules Relating to the Treatment of Non-213A 
Aliens.--The following rules shall apply if a State elects to 
take the income or resources of any sponsor of a non-213A alien 
into account in determining whether the alien is eligible for 
assistance under the State program funded under this part, or 
in determining the amount or types of such assistance to be 
provided to the alien:
          (1) Deeming of sponsor's income and resources.--For a 
        period of 3 years after a non-213A alien enters the 
        United States:
                  (A) Income deeming rule.--The income of any 
                sponsor of the alien and of any spouse of the 
                sponsor is deemed to be income of the alien, to 
                the extent that the total amount of the income 
                exceeds the sum of--
                          (i) the lesser of--
                                  (I) 20 percent of the total 
                                of any amounts received by the 
                                sponsor or any such spouse in 
                                the month as wages or salary or 
                                as net earnings from self-
                                employment, plus the full 
                                amount of any costs incurred by 
                                the sponsor and any such spouse 
                                in producing self-employment 
                                income in such month; or
                                  (II) $175;
                          (ii) the cash needs standard 
                        established by the State for purposes 
                        of determining eligibility for 
                        assistance under the State program 
                        funded under this part for a family of 
                        the same size and composition as the 
                        sponsor and any other individuals 
                        living in the same household as the 
                        sponsor who are claimed by the sponsor 
                        as dependents for purposes of 
                        determining the sponsor's Federal 
                        personal income tax liability but whose 
                        needs are not taken into account in 
                        determining whether the sponsor's 
                        family has met the cash needs standard;
                          (iii) any amounts paid by the sponsor 
                        or any such spouse to individuals not 
                        living in the household who are claimed 
                        by the sponsor as dependents for 
                        purposes of determining the sponsor's 
                        Federal personal income tax liability; 
                        and
                          (iv) any payments of alimony or child 
                        support with respect to individuals not 
                        living in the household.
                  (B) Resource deeming rule.--The resources of 
                a sponsor of the alien and of any spouse of the 
                sponsor are deemed to be resources of the alien 
                to the extent that the aggregate value of the 
                resources exceeds $1,500.
                  (C) Sponsors of multiple non-213a aliens.--If 
                a person is a sponsor of 2 or more non-213A 
                aliens who are living in the same home, the 
                income and resources of the sponsor and any 
                spouse of the sponsor that would be deemed 
                income and resources of any such alien under 
                subparagraph (A) shall be divided into a number 
                of equal shares equal to the number of such 
                aliens, and the State shall deem the income and 
                resources of each such alien to include 1 such 
                share.
          (2) Ineligibility of non-213a aliens sponsored by 
        agencies; exception.--A non-213A alien whose sponsor is 
        or was a public or private agency shall be ineligible 
        for assistance under a State program funded under this 
        part, during a period of 3 years after the alien enters 
        the United States, unless the State agency 
        administering the program determines that the sponsor 
        either no longer exists or has become unable to meet 
        the alien's needs.
          (3) Information provisions.--
                  (A) Duties of non-213a aliens.--A non-213A 
                alien, as a condition of eligibility for 
                assistance under a State program funded under 
                this part during the period of 3 years after 
                the alien enters the United States, shall be 
                required to provide to the State agency 
                administering the program--
                          (i) such information and 
                        documentation with respect to the 
                        alien's sponsor as may be necessary in 
                        order for the State agency to make any 
                        determination required under this 
                        subsection, and to obtain any 
                        cooperation from the sponsor necessary 
                        for any such determination; and
                          (ii) such information and 
                        documentation as the State agency may 
                        request and which the alien or the 
                        alien's sponsor provided in support of 
                        the alien's immigration application.
                  (B) Duties of federal agencies.--The 
                Secretary shall enter into agreements with the 
                Secretary of State and the Attorney General 
                under which any information available to them 
                and required in order to make any determination 
                under this subsection will be provided by them 
                to the Secretary (who may, in turn, make the 
                information available, upon request, to a 
                concerned State agency).
          (4) Non-213a alien defined.--An alien is a non-213A 
        alien for purposes of this subsection if the affidavit 
        of support or similar agreement with respect to the 
        alien that was executed by the sponsor of the alien's 
        entry into the United States was executed other than 
        pursuant to section 213A of the Immigration and 
        Nationality Act.
          (5) Inapplicability to alien minor sponsored by a 
        parent.--This subsection shall not apply to an alien 
        who is a minor child if the sponsor of the alien or any 
        spouse of the sponsor is a parent of the alien.
          (6) Inapplicability to certain categories of 
        aliens.--This subsection shall not apply to an alien 
        who is--
                  (A) admitted to the United States as a 
                refugee under section 207 of the Immigration 
                and Nationality Act;
                  (B) paroled into the United States under 
                section 212(d)(5) of such Act for a period of 
                at least 1 year; or
                  (C) granted political asylum by the Attorney 
                General under section 208 of such Act.
  (f) State Required To Provide Certain Information.--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 not lawfully present in the United States.

SEC. 409. PENALTIES.

  (a) In General.--Subject to this section:
          (1) * * *
          (2) Failure to submit required report.--
                  (A) In general.--If the Secretary determines 
                that a State has not, within [1 month] 45 days 
                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.
          * * * * * * *
          (7) Failure of any state to maintain certain level of 
        historic effort.--
                  (A) * * *
                  (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, 
                                        including any amount 
                                        collected by the State 
                                        as support pursuant to 
                                        a plan approved under 
                                        part D, on behalf of a 
                                        family receiving 
                                        assistance under the 
                                        State program funded 
                                        under this part, that 
                                        is distributed to the 
                                        family under section 
                                        457(a)(1)(B) and 
                                        disregarded in 
                                        determining the 
                                        eligibility of the 
                                        family for, and the 
                                        amount of, such 
                                        assistance.
          * * * * * * *
                                  (III) Exclusion of amounts 
                                expended to replace penalty 
                                grant reductions.--Such term 
                                does not include any amount 
                                expended in order to comply 
                                with paragraph (12).
                                  [(III)] (IV) 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] Act, and families 
                                of aliens lawfully present in 
                                the United States that would be 
                                eligible for such assistance 
                                but for the application of 
                                title IV 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 
                        requirements of section 407(a) for the 
                        fiscal year, 75 percent) [reduced (if 
                        appropriate) in accordance with 
                        subparagraph (C)(ii)].
          * * * * * * *
                          (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)] (III) any State funds 
                                which are expended as a 
                                condition of receiving Federal 
                                funds [under Federal programs] 
                                other than under this part.
                        Notwithstanding subclause [(IV)] (III) 
                        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] that equals the non-Federal 
                        share for the programs described in 
                        section 418(a)(1)(A).
                          (v) Source of data.--In determining 
                        expenditures by a State for fiscal 
                        years 1994 and 1995, the Secretary 
                        shall use information which was 
                        reported by the State on ACF Form 231 
                        or (in the case of expenditures under 
                        part F) ACF Form 331, available as of 
                        the dates specified in clauses (ii) and 
                        (iii) of section 403(a)(1)(D).
          [(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 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.]
          (8) Noncompliance of state child support enforcement 
        program with requirements of part d.--
                  (A) In general.--If the Secretary finds, with 
                respect to a State's program under part D, in a 
                fiscal year beginning on or after October 1, 
                1997--
                          (i)(I) on the basis of data submitted 
                        by a State pursuant to section 
                        454(15)(B), or on the basis of the 
                        results of a review conducted under 
                        section 452(a)(4), that the State 
                        program failed to achieve the paternity 
                        establishment percentages (as defined 
                        in section 452(g)(2)), or to meet other 
                        performance measures that may be 
                        established by the Secretary;
                          (II) on the basis of the results of 
                        an audit or audits conducted under 
                        section 452(a)(4)(C)(i) that the State 
                        data submitted pursuant to section 
                        454(15)(B) is incomplete or unreliable; 
                        or
                          (III) on the basis of the results of 
                        an audit or audits conducted under 
                        section 452(a)(4)(C) that a State 
                        failed to substantially comply with 1 
                        or more of the requirements of part D; 
                        and
                          (ii) that, with respect to the 
                        succeeding fiscal year--
                                  (I) the State failed to take 
                                sufficient corrective action to 
                                achieve the appropriate 
                                performance levels or 
                                compliance as described in 
                                subparagraph (A)(i); or
                                  (II) the data submitted by 
                                the State pursuant to section 
                                454(15)(B) is incomplete or 
                                unreliable;
                the amounts otherwise payable to the State 
                under this part for quarters following the end 
                of such succeeding fiscal year, prior to 
                quarters following the end of the first quarter 
                throughout which the State program has achieved 
                the paternity establishment percentages or 
                other performance measures as described in 
                subparagraph (A)(i)(I), or is in substantial 
                compliance with 1 or more of the requirements 
                of part D as described in subparagraph 
                (A)(i)(III), as appropriate, shall be reduced 
                by the percentage specified in subparagraph 
                (B).
                  (B) Amount of reductions.--The reductions 
                required under subparagraph (A) shall be--
                          (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 finding made pursuant to 
                        subparagraph (A); or
                          (iii) not less than 3 nor more than 5 
                        percent, if the finding is the 3rd or a 
                        subsequent consecutive such finding.
                  (C) Disregard of noncompliance which is of a 
                technical nature.--For purposes of this section 
                and section 452(a)(4), a State determined as a 
                result of an audit--
                          (i) to have failed to have 
                        substantially complied with 1 or more 
                        of the requirements of part D shall be 
                        determined to have achieved substantial 
                        compliance only if the Secretary 
                        determines that the extent of the 
                        noncompliance is of a technical nature 
                        which does not adversely affect the 
                        performance of the State's program 
                        under part D; or
                          (ii) to have submitted incomplete or 
                        unreliable data pursuant to section 
                        454(15)(B) shall be determined to have 
                        submitted adequate data only if the 
                        Secretary determines that the extent of 
                        the incompleteness or unreliability of 
                        the data is of a technical nature which 
                        does not adversely affect the 
                        determination of the level of the 
                        State's paternity establishment 
                        percentages (as defined under section 
                        452(g)(2)) or other performance 
                        measures that may be established by the 
                        Secretary.
          (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)] 408(a)(7) 
        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)] the 
        qualified State expenditures (as defined in paragraph 
        (7)(B)(i) (other than the expenditures described in 
        subclause (I)(bb) of that paragraph)) under the State 
        program funded under this part for the fiscal year are 
        less than 100 percent of historic State expenditures 
        (as defined in paragraph (7)(B)(iii) of this 
        subsection), excluding any amount expended by the State 
        for child care under subsection (g) or (i) of section 
        402 (as in effect during fiscal year 1994) for fiscal 
        year 1994, 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 that the State has not 
        remitted under section 403(b)(6).
          * * * * * * *
          (12) [Failure] Requirement to expend additional state 
        funds to replace grant [reductions] reductions; penalty 
        for failure to do so.--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, and if the State 
        fails to do so, the Secretary may reduce the grant 
        payable to the State under section 403(a)(1) for the 
        fiscal year that follows such succeeding fiscal year by 
        an amount equal to not more than 2 percent of the State 
        family assistance grant.
  (b) Reasonable Cause Exception.--
          (1) * * *
          (2) Exception.--Paragraph (1) of this subsection 
        shall not apply to any penalty under paragraph [(7) or 
        (8)] (6), (7), (8), (10), or (12) 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 or discontinue, as appropriate, 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 sub-paragraph (A) with respect 
                to a violation, the State may submit to the 
                Federal Government a corrective compliance plan 
                to correct or discontinue, as appropriate, the 
                violation.
          * * * * * * *
          (2) Effect of correcting or discontinuing 
        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 or discontinues, 
        as appropriate the violation pursuant to the plan.
          (3) Effect of failing to correct or discontinue 
        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 or discontinue, as appropriate, 
        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).]
          (4) Inapplicability to certain penalties.--This 
        subsection shall not apply to the imposition of a 
        penalty against a State under paragraph (6), (7), (8), 
        (10), or (12) of subsection (a).
          * * * * * * *

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.
                          [(ii) Whether a child receiving such 
                        assistance or an adult in the family is 
                        disabled.]
                          (ii) Whether a child receiving such 
                        assistance or an adult in the family is 
                        receiving--
                                  (I) disability insurance 
                                benefits under section 223;
                                  (II) benefits based on 
                                disability under section 202;
                                  (III) aid under a State plan 
                                approved under title XIV (as in 
                                effect without regard to the 
                                amendment made by section 301 
                                of the Social Security 
                                Amendments of 1972);
                                  (IV) aid or assistance under 
                                a State plan approved under 
                                title XVI (as in effect without 
                                regard to such amendment) by 
                                reason of being permanently and 
                                totally disabled; or
                                  (V) supplemental security 
                                income benefits under title XVI 
                                (as in effect pursuant to such 
                                amendment) by reason of 
                                disability.
                          (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] head 
                        of 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] level of each adult in the 
                        family.
                          (viii) The race and educational 
                        [status] level of each child in the 
                        family.
          * * * * * * *
                          (xvii) With respect to each 
                        individual in the family who has not 
                        attained 20 years of age, whether the 
                        individual is a parent of a child in 
                        the family.
                  (B) Use of [estimates] samples.--
                          (i) Authority.--A State may comply 
                        with subparagraph (A) by submitting [an 
                        estimate which is obtained] 
                        disaggregated case record information 
                        on a sample of families selected 
                        through the use of scientifically 
                        acceptable sampling methods approved by 
                        the Secretary.
          * * * * * * *
          (6) Report on families receiving assistance.--The 
        report required by paragraph (1) for a fiscal quarter 
        shall include for each month in the quarter the number 
        of families and individuals receiving assistance under 
        the State program funded under this part (including the 
        number of 2-parent and 1-parent families), and the 
        total dollar value of such assistance received by all 
        families.
          [(6)] (7) 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.
          * * * * * * *

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 
                year in an amount equal to the amount 
                determined under subparagraph (B), which shall 
                be reduced for a fiscal year, on a pro rata 
                basis for each quarter, in the case of a tribal 
                family assistance plan approved during a fiscal 
                year for which the plan is to be in effect, 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.
          * * * * * * *
          (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] 
                For each of fiscal years 1997, 1998, 1999, 
                2000, 2001, and 2002, the Secretary shall pay 
                to each eligible Indian tribe that proposes to 
                operate a program described in subparagraph (C) 
                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).
          * * * * * * *
                  (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] such population 
                and such service area or areas as the tribe 
                specifies.
                  (D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated 
                [$7,638,474] $7,633,287 for each fiscal year 
                specified in subparagraph (A) for grants under 
                subparagraph (A).
          * * * * * * *
  (f) Eligibility for Federal Loans.--Section 406 shall apply 
to an Indian tribe with an approved tribal assistance plan in 
the same manner as such section applies to a State, except that 
section 406(c) shall be applied by substituting ``section 
412(a)'' for ``section 403(a)''.
  [(f)] (g) Penalties.--
          (1) Subsections (a)(1), (a)(6), [and (b)] (b), and 
        (c) 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)''.
  [(g)] (h) Data Collection and Reporting.--Section 411 shall 
apply to an Indian tribe with an approved tribal family 
assistance plan.
  [(h)] (i) 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, directly or through grants, 
contracts, or interagency agreements, 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 welfaredependency, 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] 407.
          * * * * * * *
  (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.]
          (1) In general.--The Secretary shall annually rank 
        States to which grants are made under section 403 based 
        on the following ranking factors:
                  (A) 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 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 the year.
                  (B) Net changes in the out-of-wedlock 
                ratio.--The difference between the ratio 
                described in subparagraph (A) with respect to a 
                State for the most recent year for which such 
                information is available and the ratio with 
                respect to the State for the immediately 
                preceding year.
          * * * * * * *
  (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) * * *
          * * * * * * *
                  (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] August 22, 
                1996, and are continued after such date.
          * * * * * * *
  (i) Child Poverty Rates.--
          (1) In general.--Not later than [90 days after the 
        date of the enactment of this part] November 30, 1997, 
        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.
          * * * * * * *
          (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], to the extent 
        available, county-by-county estimates of children in 
        poverty as determined by the Census Bureau.
          * * * * * * *

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 the 
        greater of--
                  (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] expenditures 
                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] subsections (g) and (i) of 
                        section 402 (as in effect before 
                        October 1, 1995); or
                  (B) the average of the total amounts required 
                to be paid to the State for fiscal years 1992 
                through 1994 under the [sections] subsections 
                referred to in subparagraph (A)[;
        [whichever is greater.].
          (2) Remainder.--
                  (A) * * *
                  [(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).]
                  (B) Allotments to states.--The total amount 
                available for payments to States under this 
                paragraph, as determined under subparagraph 
                (A), shall be allotted among the States based 
                on the formula used for determining the amount 
                of Federal payments to each State under section 
                403(n) (as in effect before October 1, 1995).
                  (C) Federal matching of state expenditures 
                exceeding historical expenditures.--The 
                Secretary shall pay to each eligible State for 
                a fiscal year an amount equal to the lesser of 
                the State's allotment under subparagraph (B) or 
                the Federal medical assistance percentage for 
                the State for the fiscal year (as defined in 
                section 1905(b), as such section was in effect 
                on September 30, 1995) of so much of the 
                State's expenditures for child care in that 
                fiscal year as exceed the total amount of 
                expenditures by the State (including 
                expenditures from amounts made available from 
                Federal funds) in fiscal year 1994 or 1995 
                (whichever is greater) for the programs 
                described in paragraph (1)(A).
                  (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] any amounts allotted 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] such amounts are 
                        allotted, 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''.
          * * * * * * *
          (5) Data used to determine state and federal shares 
        of expenditures.--In making the determinations 
        concerning expenditures required under paragraphs (1) 
        and (2)(C), the Secretary shall use information that 
        was reported by the State on ACF Form 231 and available 
        as of the applicable dates specified in clauses (i)(I), 
        (ii), and (iii)(III) of section 403(a)(1)(D).
          * * * * * * *
  (d) Definition.--As used in this section, the term ``State'' 
means each of the 50 States [or] and the District of Columbia.
          * * * * * * *

                   PART B--CHILD AND FAMILY SERVICES

                   Subpart 1--Child Welfare Services

          * * * * * * *

                 STATE PLANS FOR CHILD WELFARE SERVICES

  Sec. 422. (a) * * *
  (b) Each plan for child welfare services under this subpart 
shall--
          (1) * * *
          * * * * * * *
          (9) provide for the diligent recruitment of potential 
        foster and adoptive families that reflect the ethnic 
        and racial diversity of children in the State for whom 
        foster and adoptive homes are needed[.];
          [(9)] (10) provide assurances that the State--
                  (A) * * *
          * * * * * * *
          [(10)] (11) contain a description, developed after 
        consultation with tribal organizations (as defined in 
        section 4 of the Indian Self-Determination and 
        Education Assistance Act) in the State, of the specific 
        measures taken by the State to comply with the Indian 
        Child Welfare Act.
          * * * * * * *

                              REALLOTMENT

  Sec. 424. (a) * * *
  (b) Exception Relating to Foster Child Protections.--The 
Secretary shall not reallot under subsection (a) of this 
section any amount that is withheld or recovered from a State 
due to the failure of the State to meet the requirements of 
section [422(b)(9)] 422(b)(10).

                              DEFINITIONS

  Sec. 425. (a)(1) For purposes of this title, the term ``child 
welfare services'' means public social services which are 
directed toward the accomplishment of the following purposes: 
(A) protecting and promoting the welfare of all children, 
including handicapped, homeless, dependent, or neglected 
children; (B) preventing or remedying, or assisting in the 
solution of problems which may result in, the neglect, abuse, 
exploitation, or delinquency of children; (C) preventing the 
unnecessary separation of children from their families by 
identifying family problems, assisting families in resolving 
their problems, and preventing breakup of the family where the 
prevention of child removal is desirable and possible; (D) 
restoring to their families children who have been removed, by 
the provision of services to the child and the families; (E) 
placing children in suitable adoptive homes, in cases where 
restoration to the biological family is not possible or 
appropriate; and (F) assuring adequate care of children away 
from their homes, in cases where the child cannot be returned 
home or cannot be placed for adoption.
  (2) Funds expended by a State for any calendar quarter to 
comply with section [422(b)(9)] 422(b)(10) or 476(b), and funds 
expended with respect to nonrecurring costs of adoption 
proceedings in the case of children placed for adoption with 
respect to whom assistance is provided under a State plan for 
adoption assistance approved under part E of this title, shall 
be deemed to have been expended for child welfare services.
          * * * * * * *

SEC. 429A. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.

  (a) In General.--The Secretary shall conduct (directly, or by 
grant, contract, or interagency agreement) 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.
  (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-of-home 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 para-graph (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.

          Subpart 2--Family Preservation and Support Services

          * * * * * * *

[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.
  [(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-of-home 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 para-graph (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.]
          * * * * * * *

          Part D--Child Support and Establishment of Paternity

          * * * * * * *

                        DUTIES OF THE SECRETARY

  Sec. 452. (a) * * *
          * * * * * * *
  (d)(1) * * *
          * * * * * * *
  (3) The Secretary may waive any requirement of paragraph (1) 
or any condition specified under section 454(16) with respect 
to a State if--
          (A) the State demonstrates to the satisfaction of the 
        Secretary that the State has an alternative system or 
        systems that enable the State, for purposes of [section 
        403(h), to be in substantial compliance with other 
        requirements of this part; and] section 409(a)(8), to 
        achieve the paternity establishment percentages (as 
        defined under section 452(g)(2)) and other performance 
        measures that may be established by the Secretary, and 
        to submit data under section 454(15)(B) that is 
        complete and reliable, and to substantially comply with 
        the requirements of this part; and
          * * * * * * *
  (g)(1) A State's program under this part shall be found, for 
purposes of [section 403(h)] section 409(a)(8), not to have 
complied substantially with the requirements of this part 
unless, for any fiscal year beginning on or after October 1, 
1994, its paternity establishment percentage for such fiscal 
year is based on reliable data and (rounded to the nearest 
whole percentage point) equals or exceeds--
          (A) 90 percent;
          * * * * * * *
  (2) For purposes of this section--
          (A) * * *
          * * * * * * *
          (C) the term ``reliable data'' means the most recent 
        data available which are found by the Secretary to be 
        reliable for purposes of this section.
For purposes of [subparagraph (A)] subparagraphs (A) and (B), 
the total number of children shall not include any child who is 
a dependent child by reason of the death of a parent unless 
paternity is established for such child or any child with 
respect to whom an applicant or recipient is found to have good 
cause for refusing to cooperate under section 402(a)(26) or any 
child with respect to whom the State agency administering the 
plan under part E determines (as provided in section 454(4)(B)) 
that it is against the best interests of such child to do so.
          * * * * * * *
  (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 a 
plan approved under this part 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] which 
shall be available for use by the Secretary, either directly or 
through grants, contracts, or interagency agreements, 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
          * * * * * * *

                     FEDERAL PARENT LOCATOR SERVICE

  Sec. 453. (a)(1) The Secretary shall establish and conduct a 
Federal Parent Locator Service, under the direction of the 
designee of the Secretary referred to in section 452(a), which 
shall be used [to obtain and transmit to any authorized person 
(as defined in subsection (c)), for the purpose of establishing 
parentage, establishing, setting the amount of, modifying, or 
enforcing 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.] for the purposes specified in 
        paragraphs (2) and (3).
  (2) For the purpose of establishing parentage, establishing, 
setting the amount of, modifying, or enforcing child support 
obligations, the Federal Parent Locator Service shall obtain 
and transmit to any authorized person specified in subsection 
(c)--
          (A) information on, or facilitating the discovery of, 
        the location of any individual--
                  (i) who is under an obligation to pay child 
                support;
                  (ii) against whom such an obligation is 
                sought; or
                  (iii) 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;
          (B) 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
          (C) information on the type, status, location, and 
        amount of any assets of, or debts owed by or to, any 
        such individual.
  (3) For the purpose of enforcing any Federal or State law 
with respect to the unlawful taking or restraint of a child, or 
making or enforcing a child custody or visitation 
determination, as defined in section 463(d)(1), the Federal 
Parent Locator Service shall be used to obtain and transmit the 
information specified in section 463(c) to the authorized 
persons specified in section 463(d)(2).
  [(b) Upon request, filed in accordance with subsection (d) of 
any authorized person (as defined in subsection (c)) for the 
information described in subsection (a), the Secretary shall, 
notwithstanding any other provision of law, provide through the 
Federal Parent Locator Service such information to such person, 
if such information--
          [(1) is contained in any files or records maintained 
        by the Secretary or by the Department of Health and 
        Human Services; or
          [(2) is not contained in such files or records, but 
        can be obtained by the Secretary, under the authority 
        conferred by subsection (e), from any other department, 
        agency, or instrumentality of the United States or of 
        any State.
No information shall be disclosed to any person if the 
disclosure of such information would contravene the national 
policy or security interests of the United States or the 
confidentiality of census data. The Secretary shall give 
priority to requests made by any authorized person described in 
subsection (c)(1). 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)(1) Upon request, filed in accordance with subsection (d), 
of any authorized person, as defined in subsection (c) for the 
information described in subsection (a)(2), or of any 
authorized person, as defined in section 463(d)(2) for the 
information described in section 463(c), the Secretary shall, 
notwithstanding any other provision of law, provide through the 
Federal Parent Locator Service such information to such person, 
if such information--
          (A) is contained in any files or records maintained 
        by the Secretary or by the Department of Health and 
        Human Services; or
          (B) is not contained in such files or records, but 
        can be obtained by the Secretary, under the authority 
        conferred by subsection (e), from any other department, 
        agency, or instrumentality of the United States or of 
        any State,
and is not prohibited from disclosure under paragraph (2).
  (2) No information shall be disclosed to any person if the 
disclosure of such information would contravene the national 
policy or security interests of the United States or the 
confidentiality of census data. The Secretary shall give 
priority to requests made by any authorized person described in 
subsection (c)(1). 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, provided that--
          (A) in response to a request from an authorized 
        person (as defined in subsection (c) and section 
        463(d)(2)), the Secretary shall advise the authorized 
        person that the Secretary has been notified that there 
        is reasonable evidence of domestic violence or child 
        abuse and that information can only be disclosed to a 
        court or an agent of a court pursuant to subparagraph 
        (B); and
          (B) information may be disclosed to a court or an 
        agent of a court described in subsection (c)(2) or 
        section 463(d)(2)(B), if--
                  (i) upon receipt of information from the 
                Secretary, the court determines whether 
                disclosure to any other person of that 
                information could be harmful to the parent or 
                the child; and
                  (ii) if the court determines that disclosure 
                of such information to any other person could 
                be harmful, the court and its agents shall not 
                make any such disclosure.
  (3) Information received or transmitted pursuant to this 
section shall be subject to the safeguard provisions contained 
in section 454(26).
  (c) As used in subsection (a), the term ``authorized person'' 
means--
          (1) any agent or attorney of any State having in 
        effect a plan approved under this part, who has the 
        duty or authority under such plans to seek to recover 
        any amounts owed as child and spousal support [or to 
        seek to enforce orders providing child custody or 
        visitation rights] (including, when authorized under 
        the State plan, any official of a political 
        subdivision);
          (2) the court which has authority to issue an order 
        or to serve as the initiating court in an action to 
        seek an order against a noncustodial parent for the 
        support and maintenance of a child [or to issue an 
        order against a resident parent for child custody or 
        visitation rights], or any agent of such court;
          * * * * * * *
  (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 and order 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 and order information.--The information 
        referred to in paragraph (1) with respect to a case or 
        an order 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 or order.
          * * * * * * *
  (j) Information Comparisons and Other Disclosures.--
          (1) * * *
          * * * * * * *
          (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] 
                components to such State agencies.
          * * * * * * *
          (5) Research.--The Secretary may provide access to 
        data in each component of the Federal Parent Locator 
        Service maintained under this section and 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) * * *
          (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)] section 
        453A(g)(2), 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).
          * * * * * * *
  (o) [Recovery of Costs] Use of Set-Aside Funds.--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 a plan 
approved under this part 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] which 
shall be available for use by the Secretary, either directly or 
through grants, contracts, or interagency agreements, for 
operation of the Federal Parent Locator Service under this 
section, to the extent such costs are not recovered through 
user fees.Amounts appropriated under this subsection for each 
of fiscal years 1997 through 2001 shall remain available until 
expended.
  (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] of the parent with whom the child is 
living, which provides for monetary support, health care, 
arrearages, or reimbursement, and which may include related 
costs and fees, interest and penalties, income withholding, 
attorneys' fees, and other relief.

SEC. 453A. STATE DIRECTORY OF NEW HIRES.

  (a) * * *
          * * * * * * *
  (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] shall not exceed--
          (1) [$25] $25 per failure to meet the requirements of 
        this section with respect to a newly hired employee; 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.
          * * * * * * *
  (g) Transmission of Information.--
          (1) * * *
          (2) Transmissions to the national directory of new 
        hires.--
                  (A) * * *
                  (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] information 
                concerning the wages and unemployment 
                compensation paid to individuals, by such 
                dates, in such format, and containing such 
                information as the Secretary of Health and 
                Human Services shall specify in regulations.
          * * * * * * *

                STATE PLAN FOR CHILD AND SPOUSAL SUPPORT

  Sec. 454. A State plan for child and spousal support must--
          (1) * * *
          * * * * * * *
          (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, or (IV) cooperation is required 
                        pursuant to section 6(l)(1) of the Food 
                        Stamp Act of 1977 (7 U.S.C. 
                        2015(l)(1)), unless, in accordance with 
                        paragraph (29), good cause or other 
                        exceptions exist;
          * * * * * * *
          (6) provide that--
                  (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;
                  (B) an application fee for furnishing such 
                services shall be imposed on [individuals not 
                receiving assistance under any State program 
                funded under part A, which] an individual, 
                other than an individual receiving assistance 
                under a State program funded under part A or E, 
                or under a State plan approved under title XIX, 
                or who is required by the State to cooperate 
                with the State agency administering the program 
                under this part pursuant to subsection (l) or 
                (m) of section 6 of the Food Stamp Act of 1977, 
                and shall be paid by the individual applying 
                for such services, or recovered from the absent 
                parent, or paid by the State out of its own 
                funds (the payment of which from State funds 
                shall not be considered as an administrative 
                cost of the State for the operation of the 
                plan, and shall be considered income to the 
                program), the amount of which (i) will not 
                exceed $25 (or such higher or lower amount 
                (which shall be uniform for all States) as the 
                Secretary may determine to be appropriate for 
                any fiscal year to reflect increases or 
                decreases in administrative costs), and (ii) 
                may vary among such individuals on the basis of 
                ability to pay (as determined by the State);
          * * * * * * *
          (8) provide that, for the purpose of establishing 
        parentage, establishing, setting the amount of, 
        modifying, or enforcing child support obligations, or 
        making or enforcing a child custody or visitation 
        determination, as defined in section 463(d)(1) the 
        agency administering the plan will establish a service 
        to locate [noncustodial] parents utilizing--
                  (A) all sources of information and available 
                records[,]; and
                  (B) the Federal Parent Locator Service 
                established under section 453[;],
        and shall, subject to the privacy safeguards required 
        under paragraph (26), disclose only the information 
        described in sections 453 and 463 to the authorized 
        persons specified in such sections for the purposes 
        specified in such sections;
          * * * * * * *
          (17) [in the case of a State which has] provide that 
        the State will have in effect an agreement with the 
        Secretary entered into pursuant to section 463 for the 
        use of the Parent Locator Service established under 
        section 453, and provide that the State will accept and 
        transmit to the Secretary requests for information 
        authorized under the provisions of the agreement to be 
        furnished by such Service to authorized persons, will 
        impose and collect (in accordance with regulations of 
        the Secretary) a fee sufficient to cover the costs to 
        the State and to the Secretary incurred by reason of 
        such requests, will transmit to the Secretary from time 
        to time (in accordance with such regulations) so much 
        of the fees collected as are attributable to such costs 
        to the Secretary so incurred, and during the period 
        that such agreement is in effect will otherwise comply 
        with such agreement and regulations of the Secretary 
        with respect thereto;
          * * * * * * *
          (19) provide that the agency administering the plan--
                  (A) * * *
                  (B) shall enforce any such child support 
                obligations which are owed by such an 
                individual but are not being met--
                          (i) * * *
                          (ii) in the absence of such an 
                        agreement, by bringing legal process 
                        (as defined in [section 462(e)] section 
                        459(i)(5) of this Act) to require the 
                        withholding of amounts from such 
                        compensation;
          * * * * * * *
          (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, modify, or enforce support, or 
                to make or enforce a child custody 
                determination;
                  (B) prohibitions against the release of 
                information on the whereabouts of 1 party or 
                the child to another party against whom a 
                protective order with respect to the former 
                party or the child has been entered; [and]
                  (C) prohibitions against the release of 
                information on the whereabouts of 1 party or 
                the child to [another party] another person if 
                the State has reason to believe that the 
                release of the information to that person may 
                result in physical or emotional harm to the 
                [former party] party or the child;
                  (D) in cases in which the prohibitions under 
                subparagraphs (B) and (C) apply, the 
                requirement to notify the Secretary, for 
                purposes of section 453(b)(2), that the State 
                has reasonable evidence of domestic violence or 
                child abuse against a party or the child and 
                that the disclosure of such information could 
                be harmful to the party or the child; and
                  (E) procedures providing that when the 
                Secretary discloses information about a parent 
                or child to a State court or an agent of a 
                State court described in section 453(c)(2) or 
                463(d)(2)(B), and advises that court or agent 
                that the Secretary has been notified that there 
                is reasonable evidence of domestic violence or 
                child abuse pursuant to section 453(b)(2), the 
                court shall determine whether disclosure to any 
                other person of information received from the 
                Secretary could be harmful to the parent or 
                child and, if the court determines that 
                disclosure to any other person could be 
                harmful, the court and its agents shall not 
                make any such disclosure;
          * * * * * * *
          (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 State 
                program under title XIX] part A, the State 
                program under part E, the State program under 
                title XIX, or the food stamp program, as 
                defined under section 3(h) of the Food Stamp 
                Act of 1977 (7 U.S.C. 2012(h)), 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;]
                          (i) in the case of the State program 
                        funded under part A, the State program 
                        under part E, or the State program 
                        under title XIX shall, at the option of 
                        the State, be defined, taking into 
                        account the best interests of the 
                        child, and applied in each case, by the 
                        State agency administering such 
                        program; and
                          (ii) in the case of the food stamp 
                        program, as defined under section 3(h) 
                        of the Food Stamp Act of 1977 (7 U.S.C. 
                        2012(h)), shall be defined and applied 
                        in each case under that program in 
                        accordance with section 6(l)(2) of the 
                        Food Stamp Act of 1977 (7 U.S.C. 
                        2015(l)(2));
          * * * * * * *
                  (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] the State program under part E, the State 
                program under title XIX, or the food stamp 
                program, as defined under section 3(h) of the 
                Food Stamp Act of 1977 (7 U.S.C. 2012(h)); 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,] individual and the State agency 
                administering the State program funded under 
                part A, the State agency administering the 
                State program under part E, the State agency 
                administering the State program under title 
                XIX, or the State agency administering the food 
                stamp program, as defined under section 3(h) of 
                the Food Stamp Act of 1977 (7 U.S.C. 2012(h)), 
                of each such determination, and if 
                noncooperation is determined, the basis 
                therefor;
          * * * * * * *
          (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)] section 459A(d) shall 
        be treated as a request by a State;
          * * * * * * *
          (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] or enforce support orders, or to 
        enter support orders in accordance with child support 
        [guidelines established by such tribe or organization] 
        guidelines established or adopted 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] 
        collections 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] 
        collections in accordance with such agreement.
The State may allow the jurisdiction which makes the collection 
involved to retain any application fee under paragraph (6)(B) 
or any late payment fee under paragraph (21). 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).
          * * * * * * *

SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

  (a) * * *
          * * * * * * *
  (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. The date of collection for 
        amounts collected and distributed under this part is 
        the date of receipt by the State disbursement unit, 
        except that if current support is withheld by an 
        employer in the month when due and is received by the 
        State disbursement unit in a month other than the month 
        when due, the date of withholding may be deemed to be 
        the date of collection.
          * * * * * * *

                           PAYMENTS TO STATES

  Sec. 455. (a)(1) * * *
          * * * * * * *
  (3)(A) * * *
  (B)(i) The Secretary shall pay to each State or system 
described in clause (iii), for each quarter in fiscal years 
1996 through 2001, the percentage specified in clause (ii) of 
so much of the State or system 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.
  (iii) For purposes of clause (i), a system described in this 
clause is a system that has been approved by the Secretary to 
receive enhanced funding pursuant to the Family Support Act of 
1988 (Public Law 100-485; 102 Stat. 2343) for the purpose of 
developing a system that meets the requirements of sections 
454(16) (as in effect on and after September 30, 1995) and 
454A, including systems that have received funding for such 
purpose pursuant to a waiver under section 1115(a).
          * * * * * * *
  [(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).]
  (f) The Secretary may make direct payments under this part to 
an Indian tribe or tribal organization that demonstrates to the 
satisfaction of the Secretary that it has the capacity to 
operate a childsupport enforcement program meeting the 
objectives of this part, including establishment of paternity, 
establishment, modification, and enforcement of support orders, and 
location of absent parents. The Secretary shall promulgate regulations 
establishing the requirements which must be met by an Indian tribe or 
tribal organization to be eligible for a grant under this subsection.

                          SUPPORT OBLIGATIONS

  Sec. 456. (a)(1) * * *
  (2) The amount of such obligation shall be--
          (A) the amount specified in a court order which 
        covers the assigned support rights, or
          (B) if there is no court order, an amount determined 
        by the State in accordance with a formula approved by 
        the Secretary[, and].
          * * * * * * *

SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

  (a) In General.--Subject to [subsection (e)] subsections (e) 
and (f), 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.
        In no event shall the total of the amounts paid to the 
        Federal Government and retained by the State exceed the 
        total of the amounts that have been paid to the family 
        as assistance by the State.
          (2) Families that formerly received assistance.--In 
        the case of a family that formerly received assistance 
        from the State:
                  (A) * * *
                  (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 Work 
                                Opportunity Act Reconciliation 
                                of 1996 (other than subsection 
                                (b)(1) (as so in effect)) 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) * * *
          * * * * * * *
                          (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 (other than subsection 
                                (b)(1) (as so in effect)) 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)] 
                                (5), 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) * * *
          * * * * * * *
          [(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).]
          (4) Families under certain agreements.--In the case 
        of an amount collected for a family in accordance with 
        a cooperative agreement under section 454(33), 
        distribute the amount so collected pursuant to the 
        terms of the agreement.
          (5) Study and report.--Not later than October 1, 
        [1998] 1999, the Secretary shall report to the Congress 
        the Secretary's findings with respect to--
                  (A) * * *
          * * * * * * *
          (6) State option for applicability.--Notwithstanding 
        any other provision of this subsection, a State may 
        elect to apply the rules described in clauses (i)(II), 
        (ii)(II), and (v) of paragraph (2)(B) to support 
        arrearages collected on and after October 1, 1998, and, 
        if the State makes such an election, shall apply the 
        provisions of this section, as in effect and applied on 
        the day before the date of enactment of section 302 of 
        the Personal Responsibility and Work Opportunity Act of 
        1996 (Public Law 104-193, 110 Stat. 2200), other than 
        subsection (b)(1) (as so in effect), to amounts 
        collected before October 1, 1998.
  (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.] and in effect on 
September 30, 1997 (or such earlier date, on or after August 
22, 1996, as the State may choose), shall remain assigned after 
such date.
  (c) Definitions.--As used in subsection (a):
          (1) * * *
          (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] distributed.
          (3) Federal medical assistance percentage.--The term 
        ``Federal medical assistance percentage'' means--
                  (A) [the Federal medical assistance 
                percentage (as defined in section 1118)] 75 
                percent, 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] as such section was in 
                effect on September 30, 1995) in the case of 
                any other State.
          * * * * * * *
  (f) Notwithstanding the preceding provisions of this section, 
amounts collected by a State as child support for months in any 
period on behalf of a child for whom a public agency is making 
foster care maintenance payments under part E--
          (1) shall be retained by the State to the extent 
        necessary to reimburse it for the foster care 
        maintenance payments made with respect to the child 
        during such period (with appropriate reimbursement of 
        the Federal Government to the extent of its 
        participation in the financing);
          (2) shall be paid to the public agency responsible 
        for supervising the placement of the child to the 
        extent that the amounts collected exceed the foster 
        care maintenance payments made with respect to the 
        child during such period but not the amounts required 
        by a court or administrative order to be paid as 
        support on behalf of the child during such period; and 
        the responsible agency may use the payments in the 
        manner it determines will serve the best interests of 
        the child, including setting such payments aside for 
        the child's future needs or making all or a part 
        thereof available to the person responsible for meeting 
        the child's day-to-day needs; and
          (3) shall be retained by the State, if any portion of 
        the amounts collected remains after making the payments 
        required under paragraphs (1) and (2), to the extent 
        that such portion is necessary to reimburse the State 
        (with appropriate reimbursement to the Federal 
        Government to the extent of its participation in the 
        financing) for any past foster care maintenance 
        payments (or payments of assistance under the State 
        program funded under part A) which were made with 
        respect to the child (and with respect to which past 
        collections have not previously been retained);
and any balance shall be paid to the State agency responsible 
for supervising the placement of the child, for use by such 
agency in accordance with paragraph (2).

                      INCENTIVE PAYMENTS TO STATES

  Sec. 458. (a) * * *
          * * * * * * *
  (d) In computing incentive payments under this section, 
support which is collected by one State at the request of 
another State, including amounts collected under section 
466(a)(14), shall be treated as having been collected in full 
by each such State, and any amounts expended by the State in 
carrying out a special project assisted under section 455(e) 
shall be excluded.
          * * * * * * *

SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING, 
                    GARNISHMENT, AND SIMILAR PROCEEDINGS FOR 
                    ENFORCEMENT OF CHILD SUPPORT AND ALIMONY 
                    OBLIGATIONS.

  (a) * * *
          * * * * * * *
  (c) Designation of Agent; Response to Notice or Process--
          (1) * * *
          (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) * * *
          * * * * * * *
                  (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] withhold 
                available sums in response to the order or 
                process, or answer the interrogatory.
          * * * * * * *
  (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) * * *
          * * * * * * *
                                  (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]
                          (iii) worker's compensation benefits 
                        paid or payable under Federal or State 
                        law [but]; and
                          (iv) benefits paid or payable under 
                        the Railroad Retirement System, 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[.]; or
                          (iii) of periodic benefits under 
                        title 38, United States Code, except as 
                        provided in subparagraph (A)(ii)(V).
          * * * * * * *

     USE OF FEDERAL PARENT LOCATOR SERVICE IN CONNECTION WITH THE 
ENFORCEMENT OR DETERMINATION OF CHILD CUSTODY AND IN CASES OF PARENTAL 
                          KIDNAPING OF A CHILD

  Sec. 463. (a) The Secretary shall enter into an agreement 
with [any State which is able and willing to do so,] every 
State under which the services of the Federal Parent Locator 
Service established under section 453 shall be made available 
to [such] each State for the purpose of determining the 
whereabouts of any [noncustodial] parent or child when such 
information is to be used to locate such parent or child for 
the purpose of--
          (1) enforcing any State or Federal law with respect 
        to the unlawful taking or restraint of a child; or
          (2) making or enforcing a child custody or visitation 
        determination.
  (b) An agreement entered into under subsection (a) shall 
provide that the State agency described in section 454 will, 
under procedures prescribed by the Secretary in regulations, 
receive and transmit to the Secretary requests from authorized 
persons for information as to (or useful in determining) the 
whereabouts of any [noncustodial] parent or child when such 
information is to be used to locate such parent or child for 
the purpose of--
          (1) enforcing any State or Federal law with respect 
        to the unlawful taking or restraint of a child; or
          (2) making or enforcing a child custody or visitation 
        determination.
  (c) Information authorized to be provided by the Secretary 
under subsection (a), (b), (e), or (f) shall be subject to the 
same conditions with respect to disclosure as information 
authorized to be provided under section 453, and a request for 
information by the Secretary under this section shall be 
considered to be a request for information under section 453 
which is authorized to be provided under such section. Only 
information as to the most recent address and place of 
employment of any [noncustodial] parent or child shall be 
provided under this section.
  (d) For purposes of this section--
          (1) the term ``custody or visitation determination'' 
        means a judgment, decree, or other order of a court 
        providing for the custody or visitation of a child, and 
        includes permanent and temporary orders, and initial 
        orders and modification;
          (2) the term ``authorized person'' means--
                  (A) any agent or attorney of any State having 
                an agreement under this section, who has the 
                duty or authority under the law of such State 
                to enforce a child custody or visitation 
                determination;
                  (B) any court having jurisdiction to make or 
                enforce such a child custody or visitation 
                determination, or any agent of such court; and
          * * * * * * *
  (f) The Secretary shall enter into an agreement with the 
Attorney General of the United States, under which the services 
of the Federal Parent Locator Service established under section 
453 shall be made available to the Office of Juvenile Justice 
and Delinquency Prevention upon its request to locate any 
parent or child on behalf of such Office for the purpose of--
          (1) enforcing any State or Federal law with respect 
        to the unlawful taking or restraint of a child, or
          (2) making or enforcing a child custody or visitation 
        determination.
The Federal Parent Locator Service shall charge no fees for 
services requested pursuant to this subsection.

        COLLECTION OF PAST-DUE SUPPORT FROM FEDERAL TAX REFUNDS

  Sec. 464. (a)(1) Upon receiving notice from a State agency 
administering a plan approved under this part that a named 
individual owes past-due support which has been assigned to 
such State pursuant to section [402(a)(26)] 408(a)(3) or 
section 471(a)(17), the Secretary of the Treasury shall 
determine whether any amounts, as refunds of Federal taxes 
paid, are payable to such individual (regardless of whether 
such individual filed a tax return as a married or unmarried 
individual). If the Secretary of the Treasury finds that any 
such amount is payable, he shall withhold from such refunds an 
amount equal to the past-due support, shall concurrently send 
notice to such individual that the withholding has been made 
(including in or with such notice a notification to any other 
person who may have filed a joint return with such individual 
of the steps which such other person may take in order to 
secure his or herproper share of the refund), and shall pay 
such amount to the State agency (together with notice of the 
individual's home address) for distribution in accordance with section 
457. This subsection may be executed by the disbursing official of the 
Department of the Treasury.
  (2)(A) Upon receiving notice from a State agency 
administering a plan approved under this part that a named 
individual owes past-due support (as that term is defined for 
purposes of this paragraph under subsection (c)) which such 
State has agreed to collect under section [454(6)] 
454(4)(A)(ii), and that the State agency has sent notice to 
such individual in accordance with paragraph (3)(A), the 
Secretary of the Treasury shall determine whether any amounts, 
as refunds of Federal taxes paid, are payable to such 
individual (regardless of whether such individual filed a tax 
return as a married or unmarried individual). If the Secretary 
of the Treasury finds that any such amount is payable, he shall 
withhold from such refunds an amount equal to such past-due 
support, and shall concurrently send notice to such individual 
that the withholding has been made, including in or with such 
notice a notification to any other person who may have filed a 
joint return with such individual of the steps which such other 
person may take in order to secure his or her proper share of 
the refund. The Secretary of the Treasury shall pay the amount 
withheld to the State agency, and the State shall pay to the 
Secretary of the Treasury any fee imposed by the Secretary of 
the Treasury to cover the costs of the withholding and any 
required notification. The State agency shall, subject to 
paragraph (3)(B), distribute such amount to or on behalf of the 
child to whom the support was owed in accordance with section 
457. This subsection may be executed by the Secretary of the 
Department of the Treasury or his designee.
          * * * * * * *

      REQUIREMENT OF STATUTORILY PRESCRIBED PROCEDURES TO IMPROVE 
               EFFECTIVENESS OF CHILD SUPPORT ENFORCEMENT

  Sec. 466. (a) In order to satisfy section 454(20)(A), each 
State must have in effect laws requiring the use of the 
following procedures, consistent with this section and with 
regulations of the Secretary, to increase the effectiveness of 
the program which the State administers under this part:
          (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] January 1, 1994, if not otherwise subject to 
        withholding under subsection (b), shall become subject 
        to withholding as provided in subsection (b) if 
        arrearages occur, without the need for a judicial or 
        administrative hearing.
          * * * * * * *
          (3) Procedures under which the State child support 
        enforcement agency shall request, and the State shall 
        provide, that for the purpose of enforcing a support 
        order under any State plan approved under this part--
                  (A) * * *
                  (B) the amount by which such refund is 
                reduced shall be distributed in accordance with 
                section [457(b)(4) or (d)(3)] 457 in the case 
                of overdue support assigned to a State pursuant 
                to section 402(a)(26) or 471(a)(17), or, in any 
                other case, shall be distributed, after 
                deduction of any fees imposed by the State to 
                cover the costs of collection, to the child or 
                parent to whom such support is owed; and
          * * * * * * *
          (5) Procedures concerning paternity establishment.--
                  (A) * * *
          * * * * * * *
                  (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, or 
                        through the use of video or audio 
                        equipment, 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.
          * * * * * * *
          (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, recreational license, or marriage 
                license be recorded on the application;
                  (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 
        to be used on the face of the document while the social 
        security number is kept on file at the agency, the 
        State shall so advise any applicants.
          [(14) Administrative enforcement in interstate 
        cases.--Procedures under which--
                  [(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 re-questing 
                        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.
          [(15) Procedures to ensure that persons owing past-
        due 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.]
          (14) High-volume, automated administrative 
        enforcement in interstate cases.--
                  (A) In general.--Procedures under which--
                          (i) the State shall use high-volume 
                        automated administrative enforcement, 
                        to the same extent as used for 
                        intrastate cases, in response to a 
                        request made by another State to 
                        enforce support orders, and shall 
                        promptly report the results of such 
                        enforcement procedure to the requesting 
                        State;
                          (ii) the State may, by electronic or 
                        other means, transmit to another State 
                        a request for assistance in enforcing 
                        support orders through high-volume, 
                        automated administrative enforcement, 
                        which request--
                                  (I) shall include such 
                                information as will enable the 
                                State to which the request is 
                                transmitted to compare the 
                                information about the cases to 
                                the information in the data 
                                bases of the State; and
                                  (II) shall constitute a 
                                certification by the requesting 
                                State--
                                          (aa) of the amount of 
                                        support under an order 
                                        the payment of which is 
                                        in arrears; and
                                          (bb) that the 
                                        requesting State has 
                                        complied with all 
                                        procedural due process 
                                        requirements applicable 
                                        to each case;
                          (iii) 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
                          (iv) 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.
                  (B) High-volume automated administrative 
                enforcement.--In this part, the term ``high-
                volume automated administrative enforcement'' 
                means the use of automatic data processing to 
                search various State data bases, including 
                license records, employment service data, and 
                State new hire registries, to determine whether 
                information is available regarding a parent who 
                owes a child support obligation.
          (15) Procedures to ensure that persons owing overdue 
        support work or have a plan for payment of such 
        support.--Procedures under which the State has the 
        authority, in any case in which an individual owes 
        overdue 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--
                  (A) 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
                  (B) 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.
          (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 and 
        sporting 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.
          * * * * * * *
  (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) * * *
          * * * * * * *
                  (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, part E, 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 any current support obligation and 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.
          (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 proceedings to establish paternity 
        or to establish, modify, or enforce support orders:
                  (A) Locator information; presumptions con-
                cerning 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] court or administrative agency of 
                        competent jurisdiction shall 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] filed with the State 
                        case registry pursuant to clause (i).
          * * * * * * *
  (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.] and as in effect on August 22, 1996, 
including any amendments officially adopted as of such date by 
the National Conference of Commissioners on Uniform State Laws.
          * * * * * * *

    Part E--Federal Payments for Foster Care and Adoption Assistance

          * * * * * * *

           STATE PLAN FOR FOSTER CARE AND ADOPTION ASSISTANCE

  Sec. 471. (a) In order for a State to be eligible for 
payments under this part, it shall have a plan approved by the 
Secretary which--
          (1) * * *
          * * * * * * *
          (17) provides that, where appropriate, all steps will 
        be taken, including cooperative efforts with the State 
        agencies administering the program funded under part A 
        and plan approved under part D, to secure an assignment 
        to the State of any rights to support on behalf of each 
        child receiving foster care maintenance payments under 
        this part; [and]
          (18) not later than January 1, 1997, provides that 
        neither the State nor any other entity in the State 
        that receives funds from the Federal Government and is 
        involved in adoption or foster care placements may--
                  (A) deny to any person the opportunity to 
                become an adoptive or a foster parent, on the 
                basis of the race, color, or national origin of 
                the person, or of the child, involved; or
                  (B) delay or deny the placement of a child 
                for adoption or into foster care, on the basis 
                of the race, color, or national origin of the 
                adoptive or foster parent, or the child, 
                involved[.]; and
          [(18)] (19) 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.
          * * * * * * *

                FOSTER CARE MAINTENANCE PAYMENTS PROGRAM

  Sec. 472. (a) Each State with a plan approved under this part 
shall make foster care maintenance payments (as defined in 
section 475(4)) under this part with respect to a child who 
would have met the requirements of section 406(a) or of section 
407 (as such sections were in effect on [June 1, 1995] July 16, 
1996) but for his removal from the home of a relative 
(specified in section 406(a) (as so in effect)), if--
          (1) the removal from the home occurred pursuant to a 
        voluntary placement agreement entered into by the 
        child's parent or legal guardian, or was the result of 
        a judicial determination to the effect that 
        continuation therein would be contrary to the welfare 
        of such child and (effective October 1, 1983) that 
        reasonable efforts of the type described in section 
        471(a)(15) have been made;
          * * * * * * *
  (d) Notwithstanding any other provision of this title, 
Federal payments may be made under this part with respect to 
amounts expended by any State as foster care maintenance 
payments under this section, in the case of children removed 
from their homes pursuant to voluntary placement agreements as 
described in subsection (a), only if (at the time such amounts 
were expended) the State has fulfilled all of the requirements 
of section [422(b)(9)] 422(b)(10).
          * * * * * * *
  (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] July 16, 1996) and 
deemed to be a recipient 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.
          * * * * * * *

                      ADOPTION ASSISTANCE PROGRAM

  Sec. 473. (a)(1) * * *
  (2) For purposes of paragraph (1)(B)(ii), a child meets the 
requirements of this paragraph if such child--
          (A)(i) at the time adoption proceedings were 
        initiated, met the requirements of section 406(a) or 
        section 407 (as such sections were in effect on [June 
        1, 1995] July 16, 1996) or would have met such 
        requirements except for his removal from the home of a 
        relative (specified in section 406(a) (as so in 
        effect)), either pursuant to a voluntary placement 
        agreement with respect to which Federal payments are 
        provided under section 474 (or 403 (as such section was 
        in effect on [June 1, 1995] July 16, 1996)) or as a 
        result of a judicial determination to the effect that 
        continuation therein would be contrary to the welfare 
        of such child,
          (ii) meets all of the requirements of title XVI with 
        respect to eligibility for supplemental security income 
        benefits, or
          (iii) is 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 
        his or her minor parent as provided in section 
        475(4)(B),
          (B)(i) would have received aid under the State plan 
        approved under section 402 (as in effect on [June 1, 
        1995] July 16, 1996) in or for the month in which such 
        agreement was entered into or court proceedings leading 
        to the removal of such child from the home were 
        initiated, or
          (ii)(I) would have received such aid in or for such 
        month if application had been made therefor, or (II) 
        had been living with a relative specified in section 
        406(a) (as in effect on [June 1, 1995] July 16, 1996) 
        within six months prior to the month in which such 
        agreement was entered into or such proceedings were 
        initiated, and would have received such aid in or for 
        such month if in such month he had been living with 
        such a relative and application therefor had been made, 
        or
          (iii) is a child described in subparagraph (A)(ii) or 
        (A)(iii), and
          (C) has been determined by the State, pursuant to 
        subsection (c) of this section, to be a child with 
        special needs.
  The last sentence of section 472(a) shall apply, for purposes 
of subparagraph (B), in any case where the child is an alien 
described in that sentence.
  (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] July 16, 
1996) 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.
          * * * * * * *

                       TITLE VII--ADMINISTRATION

          * * * * * * *

                     social security advisory board

                         Establishment of Board

  Sec. 703. (a) * * *
          * * * * * * *

                               Personnel

  (i) The Board shall, without regard to the provisions of 
title 5, United States Code, relating to the competitive 
service, appoint a Staff Director[, and three professional 
staff members one of whom shall be appointed from among 
individuals approved by the members of the Board who are not 
members of the political party represented by the majority of 
the Board,] who shall be paid at a rate equivalent to a rate 
established for the Senior Executive Service under section 5382 
of title 5, United States Code. The Board shall appoint such 
additional personnel as the Board determines to be necessary to 
provide adequate [clerical] support for the Board, and may 
compensate such additional personnel without regard to the 
provisions of title 5, United States Code, relating to the 
competitive service.
          * * * * * * *

     TITLE XI--GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE 
                             SIMPLIFICATION

          * * * * * * *

                       Part A--General Provisions

          * * * * * * *

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.]
  (a) Limitation on Total Payments to Each Territory.--
          (1) In general.--Notwithstanding any other provision 
        of this Act (except for paragraph (2) of this 
        subsection), 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.
          (2) Certain payments disregarded.--Paragraph (1) of 
        this subsection shall be applied without regard to any 
        payment made under section 403(a)(2), 403(a)(4), 406, 
        or 413(f).
  (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, including any amount paid to the State 
                under part A of title IV that is transferred in 
                accordance with section 404(d) and expended 
                under the program to which transferred; exceeds
          * * * * * * *
  [(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).]
          * * * * * * *

             cooperative research or demonstration projects

  Sec. 1110. (a)(1) * * *
          * * * * * * *
  (3) Grants and payments under contracts or cooperative 
arrangements under paragraph (1) may be made either in advance 
or by way of reimbursement, as may be determined by the 
Secretary (or the Commissioner, with respect to any jointly 
financed cooperative agreement or grant concerning titles II or 
XVI); and shall be made in such installments and on such 
conditions as the Secretary (or the Commissioner, as 
applicable) finds necessary to carry out the purposes of this 
subsection.
          * * * * * * *

   TITLE XVI--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
                                DISABLED

          * * * * * * *

                   Part A--Determination of Benefits

                 ELIGIBILITY FOR AND AMOUNT OF BENEFITS

                   Definition of Eligible Individual

  Sec. 1611. (a) * * *
          * * * * * * *
  (e)(1)(A) * * *
  (B) In any case where an eligible individual or his eligible 
spouse (if any) is, throughout any month (subject to 
subparagraph (G)), in a [hospital, extended care facility, 
nursing home, or intermediate care facility] medical treatment 
facility receiving payments (with respect to such individual or 
spouse) under a State plan approved under title XIX, or an 
eligible individual is a child described in section 
1614(f)(2)(B), or, in the case of an eligible individual who is 
a child under the age of 18, receiving payments (with respect 
to such individual) under any health insurance policy issued by 
a private provider of such insurance the benefit under this 
title for such individual for such month shall be payable 
(subject to subparagraph (E))--
          (i) at a rate not in excess of $360 per year (reduced 
        by the amount of any income not excluded pursuant to 
        section 1612(b)) in the case of an individual who does 
        not have an eligible spouse;
          (ii) in the case of an individual who has an eligible 
        spouse, if only one of them is in such a [hospital, 
        home or] facility throughout such month, at a rate not 
        in excess of the sum of--
                  (I) the rate of $360 per year (reduced by the 
                amount of any income, not excluded pursuant to 
                section 1612(b), of the one who is in such 
                [hospital, home, or] facility), and
                  (II) the applicable rate specified in 
                subsection (b)(1) (reduced by the amount of any 
                income, not excluded pursuant to section 
                1612(b), of the other); and
          (iii) at a rate not in excess of $720 per year 
        (reduced by the amount of any income not excluded 
        pursuant to section 1612(b)) in the case of an 
        individual who has an eligible spouse, if both of them 
        are in such a [hospital, home, or] facility throughout 
        such month.
For purposes of this subsection, a [hospital, extended care 
facility, nursing home, or intermediate care facility which is 
a ``medical institution or nursing facility'' within the 
meaning of section 1917(c)] medical treatment facility that 
provides services described in section 1917(c)(1)(C) shall be 
considered to be receiving payments with respect to an 
individual under a State plan approved under title XIX during 
any period of ineligibility of such individual provided for 
under the State plan pursuant to section 1917(c).
          * * * * * * *
  (E) Notwithstanding subparagraphs (A) and (B), any individual 
who--
          (i)(I) is an inmate of a public institution, the 
        primary purpose of which is the provision of medical or 
        psychiatric care, throughout any month as described in 
        subparagraph (A), or
          (II) is in a [hospital, extended care facility, 
        nursing home, or intermediate care facility] medical 
        treatment facility throughout any month as described in 
        subparagraph (B),
          (iii) under an agreement of the public institution or 
        the [hospital, extended care facility, nursing home, or 
        intermediate care facility] medical treatment facility 
        is permitted to retain any benefit payable by reason of 
        this subparagraph,
may be an eligible individual or eligible spouse for purposes 
of this title (and entitled to a benefit determined on the 
basis of the rate applicable under subsection (b)) for the 
month referred to in subclause (I) or (II) of clause (i) and, 
if such subclause still applies, for the succeeding month.
          * * * * * * *
  (G) A person may be an eligible individual or eligible spouse 
for purposes of this title, and subparagraphs (A) and (B) shall 
not apply, with respect to any particular month throughout 
which he or she is an inmate of a public institution the 
primary purpose of which is the provision of medical or 
psychiatric care, [or which is a hospital, extended care 
facility, nursing home, or intermediate care] or is in a 
medical treatment facility receiving payments (with respect to 
such individual or spouse) under a State plan approved under 
title XIX or, in the case of an individual who is a child under 
the age of 18, under any health insurance policy issued by a 
private provider of such insurance, if it is determined in 
accordance with subparagraph (H) that--
          (i) such person's stay in that institution or 
        facility (or in that institution or facility and one or 
        more other such institutions or facilities during a 
        continuous period of institutionalization) is likely 
        (as certified by a physician) not to exceed 3 months, 
        and the particular month involved is one of the first 3 
        months throughout which such person is in such an 
        institution or facility during a continuous period of 
        institutionalization; and
          * * * * * * *
  (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),] institution comprising a jail, prison, penal 
institution, or correctional facility, or with any other 
interested State or local institution a purpose of which is to 
confine individuals as described in section 202(x)(1)(A)(ii), 
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)] this paragraph; 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] individual who 
        receives in the month preceding the first month 
        throughout which such individual is an inmate of the 
        jail, prison, penal institution, or correctional 
        facility that furnishes information respecting such 
        individual pursuant to subclause (I), or is confined in 
        the institution (that so furnishes such information) as 
        described in section 202(x)(1)(A)(ii), a benefit under 
        this title for such preceding month, and who is 
        determined by the Commissioner to be ineligible for 
        benefits under this title by reason of confinement 
        based on the information provided by such institution, 
        $400 (subject to reduction under clause (ii)) 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 (subject to reduction under clause 
        (ii)) if the institution furnishes such information 
        after 30 days after such date but within 90 days after 
        such date.
  (ii) The dollar amounts specified in clause (i)(II) shall be 
reduced by 50 percent if the Commissioner is also required to 
make a payment to the institution with respect to the same 
individual under an agreement entered into under section 
202(x)(3)(B).
  [(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] (iii) The Commissioner is authorized 
to provide, on a reimbursable basis, information obtained 
pursuant to agreements entered into under clause (i) to any 
agency administering a Federal or federally-assisted cash, 
food, or medical assistance program for eligibility purposes.
  [(iii)] (iv) 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.
          * * * * * * *
  (3) Notwithstanding anything to the contrary in the criteria 
being used by the Commissioner of Social Security in 
determining when a husband and wife are to be considered two 
eligible individuals for purposes of this title and when they 
are to be considered an eligible individual with an eligible 
spouse, the State agency administering or supervising the 
administration of a State plan under any other program under 
this Act may (in the administration of such plan) treat a 
husband and wife living in the [same hospital, home, or 
facility] same medical treatment facility described in 
paragraph (1)(B) as though they were an eligible individual 
with his or her eligible spouse for purposes of this title 
(rather than two eligible individuals), after they have 
continuously lived in the [same such hospital, home, or 
facility] same such facility for 6 months, if treating such 
husband and wife as two eligible individuals would prevent 
either of them from receiving benefits or assistance under such 
plan or reduce the amount thereof.
          * * * * * * *
  (6) Notwithstanding any other provision of law (other than 
section 6103 of the Internal Revenue Code of 1986 and section 
1106(c) of this Act), 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.
          * * * * * * *

                            MEANING OF TERMS

                  Aged, Blind, or Disabled Individual

  Sec. 1614. (a)(1) * * *
          * * * * * * *
  (3)(A) * * *
          * * * * * * *
  (H)(i) * * *
          * * * * * * *
  (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 1-year period.]
          (I) by applying the criteria used in determining 
        initial eligibility for individuals who are age 18 or 
        older; and
          (II) either during the 1-year period beginning on the 
        individual's 18th birthday or, in lieu of a continuing 
        disability review, whenever the Commissioner determines 
        that an individual's case is subject to a 
        redetermination under this clause.
With respect to any redetermination under this clause, 
paragraph (4) shall not apply.
  (iv)(I) [Not] Except as provided in subclause (VI), 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.
          * * * * * * *
  (VI) Subclause (I) shall not apply in the case of an 
individual described in that subclause who, at the time of the 
individual's initial disability determination, the Commissioner 
determines has an impairment that is not expected to improve 
within 12 months after the birth of that individual, and who 
the Commissioner schedules for a continuing disability review 
at a date that is after the individual attains 1 year of age.
          * * * * * * *

       REHABILITATION SERVICES FOR BLIND AND DISABLED INDIVIDUALS

  Sec. 1615. (a) * * *
          * * * * * * *
  (d) The Commissioner of Social Security is authorized to 
reimburse the State agency administering or supervising the 
administration of a State plan for vocational rehabilitation 
services approved under title I of the Rehabilitation Act of 
1973 for the costs incurred under such plan in the provision of 
rehabilitation services to individuals who are referred for 
such services pursuant to subsection (a)(1), in cases where the 
furnishing of such services results in the performance by such 
individuals of substantial gainful activity for a continuous 
period of nine months, (2) in cases where such individuals 
receive benefits as a result of section 1631(a)(6) (except that 
no reimbursement under this subsection shall be made for 
services furnished to any individual receiving such benefits 
for any period after the close of such individual's ninth 
consecutive month of substantial gainful activity or the close 
of the month with which his or her entitlement to such benefits 
ceases, whichever first occurs), and (3) in cases where such 
individuals, without good cause, refuse to continue to accept 
vocational rehabilitation services or fail to cooperate in such 
a manner as to preclude their successful rehabilitation. The 
determination that the vocational rehabilitation services 
contributed to the successful return of an individual to 
substantial gainful activity, the determination that an 
individual, without good cause, refused to continue to accept 
vocational rehabilitation services or failed to cooperate in 
such a manner as to preclude successful rehabilitation, and the 
determination of the amount of costs to be reimbursed under 
this subsection shall be made by the Commissioner of Social 
Security in accordance with criteria determined by [him] the 
Commissioner in the same manner as under section 222(d)(1).
          * * * * * * *

               Part B--Procedural and General Provisions

                        PAYMENTS AND PROCEDURES

                          Payment of Benefits

  Sec. 1631. (a)(1) Benefits under this title shall be paid at 
such time or times and (subject to paragraph (10)) in such 
installments as will best effectuate the purposes of this 
title, as determined under regulations (and may in any case be 
paid less frequently than monthly where the amount of the 
monthly benefit would not exceed $10).
  (2)(A) * * *
          * * * * * * *
  (F)(i) * * *
  (ii)(I) * * *
          * * * * * * *
  (III) The use of funds from an account established under 
clause (i) in any manner not authorized by this clause--
          (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)] 
        in any case in which the individual knowingly 
        misapplies benefits from such an account, the 
        Commissioner shall reduce future benefits payable to 
        such individual (or to such individual and his spouse) 
        by an amount equal to the total amount of such benefits 
        so misapplied.
  (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.]
  (iii) The representative payee may deposit into the account 
established under clause (i) any other funds representing past 
due benefits under this title to the eligible individual, 
provided that the amount of such past due benefits is equal to 
or exceeds the maximum monthly benefit payable under this title 
to an eligible individual (including State supplementary 
payments made by the Commissioner pursuant to an agreement 
under section 1616 or section 212(b) of Public Law 93-66).
          * * * * * * *
  (e)(1) * * *
          * * * * * * *
  (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] not lawfully present 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] not lawfully present in the United States.
          * * * * * * *
                              ----------                              

PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996

          * * * * * * *

   TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

          * * * * * * *

SEC. 103. BLOCK GRANTS TO STATES.

  (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)] 603(b) of this Act) and 
        inserting the following:

  ``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
                                FAMILIES

``SEC. 401. PURPOSE.

  ``(a) In General.--The purpose of this part is to increase 
the flexibility of States in operating a program designed to--
          ``(1) * * *
          * * * * * * *

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
          * * * * * * *

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-by-State basis and a preliminary 
assessment of the effects of section [409(a)(7)(C)] 
408(a)(7)(C) of such Act.
          * * * * * * *

SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

  (a) * * *
          * * * * * * *
  (c) Amendments to Part D of Title IV.--
          (1) * * *
          * * * * * * *
          (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is 
        amended in the matter following subparagraph (B)--
                  (A) * * *
          * * * * * * *
                  (C) by striking ``to have good cause for 
                refusing to cooperate under section 
                402(a)(26)'' and all that follows through ``the 
                best interests of such child to do so'' and 
                inserting ``to qualify for a good cause or 
                other exception to cooperation pursuant to 
                section 454(29)''.
          * * * * * * *
          (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is 
        amended by striking ``under section 402(a)(26)'' and 
        inserting ``pursuant to section 408(a)(3)''.
          * * * * * * *

SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 AND 
                    RELATED PROVISIONS.

  (a) * * *
          * * * * * * *
  (f) Section 5(h)(1) of the Agriculture and Consumer 
Protection Act of 1973 (Public Law [93-186] 93-86; 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''.
          * * * * * * *

SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

  (a) * * *
          * * * * * * *
  (l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) 
is amended--
          (1) * * *
          * * * * * * *
          (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)''; and
          [(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)] (7) 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''.
          * * * * * * *

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) * * *
          * * * * * * *
          (5) in subsection (c)--
                  (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 under 
                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 under part A of title IV 
                of the Social Security Act'';
          * * * * * * *

SEC. 115. DENIAL OF ASSISTANCE AND BENEFITS FOR CERTAIN DRUG-RELATED 
                    CONVICTIONS.

  (a) * * *
          * * * * * * *
  (d) Limitations.--
          (1) * * *
          (2) Inapplicability to convictions occurring on or 
        before enactment.--Subsection (a) shall not apply to 
        [convictions] a conviction if the conviction is for 
        conduct occurring on or before the date of the 
        enactment of this Act.
          * * * * * * *

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 
        (but subject to subsection (b)(1)(A)(ii)), paragraphs 
        (2), (3), (4), (5), (8), and (10) of section 409(a) and 
        section 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).
          * * * * * * *
          ``(6) Research, evaluations, and national studies.--
        Section 413 of the Social Security Act, as added by the 
        amendment made by section 103(a) of this Act, shall 
        take effect on the date of the enactment of this 
        Act.''.
  (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) * * *
                          (ii) during the period that begins on 
                        the date of such receipt and ends on 
                        [June 30, 1997] the later of June 30, 
                        1997, or the day before the date 
                        described in subsection (a)(2)(B) of 
                        this section, 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)).
          * * * * * * *

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

          * * * * * * *

                  Subtitle A--Eligibility Restrictions

          * * * * * * *

SEC. 203. TREATMENT OF PRISONERS.

  (a) * * *
  (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)] sections 
                202(x) and 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)] section 202(x)(3)(B) or 
                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.
          * * * * * * *
  (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).] sections 202(x)(3)(B) 
and 1611(e)(1)(I) of the Social Security Act.
          * * * * * * *

               Subtitle B--Benefits for Disabled Children

SEC. 211. DEFINITION AND ELIGIBILITY RULES.

  (a) * * *
          * * * * * * *
  (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)] 1382c(a)(4)) is amended--
          (1) * * *
          * * * * * * *
  (d) Effective Dates, Etc.--
          (1) * * *
          (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] 18 months 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) * * *
          * * * * * * *

                        TITLE III--CHILD SUPPORT

          * * * * * * *

             Subtitle E--Program Administration and Funding

          * * * * * * *

SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

  (a) Revised Requirements.--
          (1) In general.--Section 454(16) (42 U.S.C. 654(16)) 
        is amended--
                  (A) * * *
          * * * * * * *
                  (F) by striking ``(including'' the first 
                place such term appears and all that follows 
                and inserting a semicolon.
          * * * * * * *
  (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--
          (1) * * *
          (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 aggregate 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 or a system 
                described in subparagraph (C) under section 
                455(a)(3)(B) of such Act for fiscal years 1996 
                through 2001 shall not exceed the limitation 
                determined for the State or system 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.] Act, and 
                        among systems that have been approved 
                        by the Secretary to receive enhanced 
                        funding pursuant to the Family Support 
                        Act of 1988 (Public Law 100-485; 102 
                        Stat. 2343) for the purpose of 
                        developing a system that meets the 
                        requirements of sections 454(16) (as in 
                        effect on and after September 30, 1995) 
                        and 454A, including systems that have 
                        received funding for such purpose 
                        pursuant to a waiver under section 
                        1115(a), which shall take into 
                        account--
                          (i) the relative size of such State 
                        and system caseloads under part D of 
                        title IV of the Social Security Act; 
                        and
                          (ii) the level of automation needed 
                        to meet the automated data processing 
                        requirements of such part.
          * * * * * * *

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

          * * * * * * *

              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) * * *
          * * * * * * *
          (3) Subsection (a) shall not apply to any benefit 
        payable under title XVIII of the Social Security Act 
        (relating to the medicare program) to an alien who is 
        lawfully present in the United States as determined by 
        the Attorney General and, with respect to benefits 
        payable under part A of such title, who was authorized 
        to be employed with respect to any wages attributable 
        to employment which are counted for purposes of 
        eligibility for such benefits.
          (4) Subsection (a) shall not apply to any benefit 
        payable under the Railroad Retirement Act of 1974 or 
        the Railroad Unemployment Insurance Act to an alien who 
        is lawfully present in the United States as determined 
        by the Attorney General or to an alien residing outside 
        the United States.
  (c) Federal Public Benefit Defined.--
          (1) * * *
          (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 to a citizen of a freely 
                associated state, if section 141 of the 
                applicable compact of free association approved 
                in Public Law 99-239 or 99-658 (or a successor 
                provision) is in effect; or
          * * * * * * *

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 para- graph (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] section 243(h) of such Act (as in 
                        effect immediately before the effective 
                        date of section 307 of division C of 
                        Public Law 104-208) or section 
                        241(b)(3) of such Act (as amended by 
                        section 305(a) of division C of Public 
                        Law 104-208).
          * * * * * * *
                  (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, 1101, or 1301, or as described in 
                        section 107 of title 38, United States 
                        Code) with a discharge characterized as 
                        an honorable discharge and not on 
                        account of alienage and who fulfills 
                        the minimum active-duty service 
                        requirements of section 5303A(d) of 
                        title 38, United States Code,
                          (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) or the 
                        unremarried surviving spouse of an 
                        individual described in clause (i) or 
                        (ii) who is deceased if the marriage 
                        fulfills the requirements of section 
                        1304 of title 38, United States Code.
  (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] section 243(h) of such Act 
                        (as in effect immediately before the 
                        effective date of section 307 of 
                        division C of Public Law 104-208) or 
                        section 241(b)(3) of such Act (as 
                        amended by section 305(a) of division C 
                        of Public Law 104-208) until 5 years 
                        after such withholding.
          * * * * * * *
                  (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, 1101, or 1301, or as described in 
                        section 107 of title 38, United States 
                        Code) with a discharge characterized as 
                        an honorable discharge and not on 
                        account of alienage and who fulfills 
                        the minimum active-duty service 
                        requirements of section 5303A(d) of 
                        title 38, United States Code,
                          (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) or the 
                        unremarried surviving spouse of an 
                        individual described in clause (i) or 
                        (ii) who is deceased if the marriage 
                        fulfills the requirements of section 
                        1304 of title 38, United States Code.
          * * * * * * *

SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR FEDERAL 
                    MEANS-TESTED PUBLIC BENEFIT.

  (a) * * *
  (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] 
                section 243(h) of such Act (as in effect 
                immediately before the effective date of 
                section 307 of division C of Public Law 104-
                208) or section 241(b)(3) of such Act (as 
                amended by section 305(a) of division C of 
                Public Law 104-208).
          (2) Veteran and active duty exception.--An alien who 
        is lawfully residing in any State and is--
                  (A) a veteran (as defined in section 101, 
                1101, or 1301, or as described in section 107 
                of title 38, United States Code) with a 
                discharge characterized as an honorable 
                discharge and not on account of alienage and 
                who fulfills the minimum active-duty service 
                requirements of section 5303A(d) of title 38, 
                United States Code,
                  (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) or the unremarried surviving spouse of 
                an individual described in clause (i) or (ii) 
                who is deceased if the marriage fulfills the 
                requirements of section 1304 of title 38, 
                United States Code.
          * * * * * * *
  (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] section 501(a) of the Refugee 
Education Assistance Act of 1980, for Cuban and Haitian 
entrants as defined in [section 501(e)(2)[ section 501(e) of 
the Refugee Education Assistance Act of 1980.
          * * * * * * *

  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.

  (a) * * *
          * * * * * * *
  (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--
          (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 to a citizen of a freely 
                associated state, if section 141 of the 
                applicable compact of free association approved 
                in Public Law 99-239 or 99-658 (or a successor 
                provision) is in effect; or
          * * * * * * *
          (3) Such term does not include any Federal public 
        benefit under section [4001(c)] 401(c).
          * * * * * * *

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] 
                section 243(h) of such Act (as in effect 
                immediately before the effective date of 
                section 307 of division C of Public Law 104-
                208) or section 241(b)(3) of such Act (as 
                amended by section 305(a) of division C of 
                Public Law 104-208) until 5 years after such 
                [with-holding] withholding.
          * * * * * * *
          (3) Veteran and active duty exception.--An alien who 
        is lawfully residing in any State and is--
                  (A) a veteran (as defined in section 101, 
                1101, or 1301, or as described in section 107 
                of title 38, United States Code) with a 
                discharge characterized as an honorable 
                discharge and not on account of alienage and 
                who fulfills the minimum active-duty service 
                requirements of section 5303A(d) of title 38, 
                United States Code,
                  (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) or the unremarried surviving spouse of 
                an individual described in clause (i) or (ii) 
                who is deceased if the marriage fulfills the 
                requirements of section 1304 of title 38, 
                United States Code.
          * * * * * * *

      Subtitle C--Attribution of Income and Affidavits of Support

SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES TO 
                    ALIEN.

  (a) * * *
          * * * * * * *
  (f) Special Rule for Battered Spouse and Child.--
          (1) In general.--Subject to paragraph (2) and 
        notwithstanding any other provision of this section, 
        subsection (a) shall not apply to benefits--
                  (A) during a 12 month period if the alien 
                demonstrates that (i) the alien has been 
                battered or subjected to extreme cruelty in the 
                United States by a spouse or a parent, or by a 
                member of the spouse or parent's family 
                residing in the same household as the alien and 
                the spouse or parent consented to or acquiesced 
                to such battery or cruelty, [or] (ii) the 
                alien's child has been battered or subjected to 
                extreme cruelty in the United States by the 
                spouse or parent of the alien (without the 
                active participation of the alien in the 
                battery or cruelty), or by a member of the 
                spouse's or parent's family residing in the 
                same household as the alien when the spouse or 
                parent consented or acquiesced to and the alien 
                did not actively participate in such battery or 
                cruelty, [and the battery or cruelty described 
                in clause (i) or (ii)] or (iii) the alien is a 
                child whose parent (who resides in the same 
                household as the alien child) has been battered 
                or subjected to extreme cruelty in the United 
                States by that parent's spouse, or by a member 
                of the spouse's family residing in the same 
                household as the parent and the spouse 
                consented to, or acquiesced in, such battery or 
                cruelty, and the battery or cruelty described 
                in clause (i), (ii), or (iii) (in the opinion 
                of the agency providing such public benefits, 
                which opinion is not subject to review by 
anycourt) has a substantial connection to the need for the public 
benefits applied for; and
          * * * * * * *

SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF SPONSORS 
                    INCOME AND RESOURCES TO THE ALIEN WITH RESPECT TO 
                    STATE PROGRAMS.

  (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)),] benefits, 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 and as amended by section 551(a) of the 
        Illegal Immigration Reform and Immigrant Responsibility 
        Act of 1996) on behalf of such alien, and
          (2) the income and resources of the spouse (if any) 
        of the individual.
          * * * * * * *

                    [Subtitle D--General Provisions]

                     Subtitle D--General Provisions

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) * * *
          * * * * * * *
          (5) an alien whose deportation is being withheld 
        under [section 243(h) of such Act] section 243(h) of 
        such Act (as in effect immediately before the effective 
        date of section 307 of division C of Public Law 104-
        208) or section 241(b)(3) of such Act (as amended by 
        section 305(a) of division C of Public Law 104-208), or
          * * * * * * *
  (c) Treatment of Certain Battered Aliens as Qualified 
Aliens.--For purposes of this title, the term `qualified alien' 
includes--
          (1) an alien who--
                  (A) has been battered or subjected to extreme 
                cruelty in the United States by a spouse or a 
                parent, or by a member of the spouse or 
                parent's family residing in the same household 
                as the alien and the spouse or parent consented 
                to, or acquiesced in, such battery or cruelty, 
                but only if (in the opinion of the [Attorney 
                General, which opinion is not subject to review 
                by any court)] agency providing such benefits) 
                there is a substantial connection between such 
                battery or cruelty and the need for the 
                benefits to be provided; and
                  (B) has been approved or has a petition 
                pending which sets forth a prima facie case 
                for--
                          (i) status as a spouse or a child of 
                        a United States citizen pursuant to 
                        clause (ii), (iii), or (iv) of section 
                        204(a)(1)(A) of the Immigration and 
                        Nationality Act,
                          (ii) classification pursuant to 
                        clause (ii) or (iii) of section 
                        204(a)(1)(B) of the Act,
                          (iii) cancellation of removal under 
                        section 240A of such Act[, or] (as in 
                        effect prior to April 1, 1997),
                          (iv) status as a spouse or child of a 
                        United States citizen pursuant to 
                        clause (i) of section 204(a)(1)(A) of 
                        such Act, or classification pursuant to 
                        clause (i) of section 204(a)(1)(B) of 
                        such Act; [or]
                          (v) cancellation of removal pursuant 
                        to section 240A(b)(2) of such Act;
          (2) an alien--
                  (A) whose child has been battered or 
                subjected to extreme cruelty in the United 
                States by a spouse or a parent of the alien 
                (without the active participation of the alien 
                in the battery or cruelty), or by a member of 
                the spouse or parent's family residing in the 
                same household as the alien and the spouse or 
                parent consented or acquiesced to such battery 
                or cruelty, and the alien did not actively 
                participate in such battery or cruelty, but 
                only if (in the opinion of the [Attorney 
                General, which opinion is not subject to review 
                by any court)] agency providing such benefits) 
                there is a substantial connection between such 
                battery or cruelty and the need for the 
                benefits to be provided; and
                  (B) who meets the requirement of [clause (ii) 
                of subparagraph (A).] subparagraph (B) of 
                paragraph (1); or
          (3) an alien child who--
                  (A) resides in the same household as a parent 
                who has been battered or subjected to extreme 
                cruelty in the United States by that parent's 
                spouse or by a member of the spouse's family 
                residing in the same household as the parent 
                and the spouse consented or acquiesced to such 
                battery or cruelty, but only if (in the opinion 
                of the agency providing such benefits) there is 
                a substantial connection between such battery 
                or cruelty and the need for the benefits to be 
                provided; and
                  (B) who meets the requirement of subparagraph 
                (B) of paragraph (1).
This subsection shall not apply to an alien during any period 
in which the individual responsible for such battery or cruelty 
resides in the same household or family eligibility unit as the 
individual subjected to such battery or cruelty.
  After consultation with the Secretaries of Health and Human 
Services, Agriculture, and Housing and Urban Development, the 
Commissioner of Social Security, and with the heads of such 
Federal agencies administering benefits as the Attorney General 
considers appropriate, the Attorney General shall issue 
guidance (in the Attorney General's sole and unreviewable 
discretion) for purposes of this subsection and section 421(f), 
concerning the meaning of the terms ``battery'' and ``extreme 
cruelty'', and the standards and methods to be used for 
determining whether a substantial connection exists between 
battery or cruelty suffered and an individual's need for 
benefits under a specific Federal, State, or local program.

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

  (a) In General.--(1) 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. Not 
later than 90 days after the date of the enactment of the 
Welfare Reform Technical Corrections Act of 1997, the Attorney 
General of the United States, after consultation with the 
Secretary of Health and Human Services, shall issue interim 
verification guidance.
          * * * * * * *
  (3) Not later than 90 days after the date of the enactment of 
the Welfare Reform Technical Corrections Act of 1997, the 
Attorney General shall promulgate regulations which set forth 
the procedures by which a State or local government can verify 
whether an alien applying for a State or local public benefit 
is a qualified alien, a nonimmigrant under the Immigration and 
Nationality Act, or an alien paroled into the United States 
under section 212(d)(5) of the Immigration and Nationality Act 
for less than 1 year, for purposes of determining whether the 
alien is ineligible for benefits under section 411 of this Act.
          * * * * * * *

SEC. 433. STATUTORY CONSTRUCTION.

  (a) * * *
  (b) Benefit Eligibility Limitations Applicable Only With 
Respect to Aliens Present in the United States.--
Notwithstanding any other provision of this title, the 
limitations on eligibility for benefits under this title shall 
not apply to eligibility for benefits of aliens who are not 
residing, or present, in the United States with respect to--
          (1) wages, pensions, annuities, and other earned 
        payments to which an alien is entitled resulting from 
        employment by, or on behalf of, a Federal, State, or 
        local government agency which was not prohibited during 
        the period of such employment or service under section 
        274A or other applicable provision of the Immigration 
        and Nationality Act; or
          benefits under laws administered by the Secretary of 
        Veterans Affairs.
  [(b)] (c) 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)] (d) 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. 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,] before the date on which the alien 
        attains 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 under section 403) during the period for 
which such qualifying quarter of coverage is so credited. 
Notwithstanding section 6103 of the Internal Revenue Code of 
1986, the Commissioner of Social Security is authorized to 
disclose quarters of coverage information concerning an alien 
and an alien's spouse or parents to a government agency for the 
purposes of this title.
          * * * * * * *

  [Subtitle F--Earned Income Credit Denied to Unauthorized Employees]

   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) * * *
          * * * * * * *
                              ----------                              

    SECTION 105 OF THE CONTRACT WITH AMERICA ADVANCEMENT ACT OF 1996

SEC. 105. DENIAL OF DISABILITY BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.

  (a) Amendments Relating to Title II Disability Benefits.--
          (1) * * *
          * * * * * * *
          (5) Effective dates.--
                  (A) The amendments made by paragraphs (1) and 
                (4) shall apply to any individual who applies 
                for, or whose claim is finally adjudicated [by 
                the Commissioner of Social Security] with 
                respect to, benefits under title II of the 
                Social Security Act based on disability on or 
                after the date of the enactment of this Act, 
                and, in the case of any individual who has 
                applied for, and whose claim has been finally 
                adjudicated [by the Commissioner] with respect 
                to, such benefits before such date of 
                enactment, such amendments shall apply only 
                with respect to such benefits for months 
                beginning on or after January 1, 1997.
                  [(B) The amendments made by paragraphs (2) 
                and (3) shall apply with respect to benefits 
                for which applications are filed after the 
                third month following the month in which this 
                Act is enacted.]
                  (B) The amendments made by paragraphs (2) and 
                (3) shall take effect on July 1, 1996, with 
                respect to any individual--
                          (i) whose claim for benefits is 
                        finally adjudicated on or after the 
                        date of the enactment of this Act, or
                          (ii) whose entitlement to benefits is 
                        based upon an entitlement 
                        redetermination made pursuant to 
                        subparagraph (C).
                  (C) Within 90 days after the date of the 
                enactment of this Act, the Commissioner of 
                Social Security shall notify each individual 
                who is entitled to monthly insurance benefits 
                under title II of the Social Security Act based 
                on disability for the month in which this Act 
                is enacted and whose entitlement to such 
                benefits would terminate by reason of the 
                amendments made by this subsection. If such an 
                individual reapplies for benefits under title 
                II of such Act (as amended by this Act) based 
                on disability within 120 days after the date of 
                the enactment of this Act, the Commissioner of 
                Social Security shall, not later than January 
                1, 1997, complete the entitlement 
                redetermination (including a new medical 
                determination) with respect to such individual 
                pursuant to the procedures of such title.
                  (D) For purposes of this paragraph, an 
                individual's claim, with respect to benefits 
                under title II of the Social Security Act based 
                on disability, which has been denied in whole 
                before the date of the enactment of this Act, 
                may not be considered to be finally adjudicated 
                before such date if, on or after such date--
                          (i) there is pending a request for 
                        either administrative or judicial 
                        review with respect to such claim, or
                          (ii) there is pending, with respect 
                        to such claim, a readjudication by the 
                        Commissioner of Social Security 
                        pursuant to relief in a class action or 
                        implementation by the Commissioner of a 
                        court remand order.
                  (E) Notwithstanding the provisions of this 
                paragraph, with respect to any individual for 
                whom the Commissioner of Social Security does 
                not perform the entitlement redetermination 
                before the date prescribed in subparagraph (C), 
                the Commissioner shall perform such entitlement 
                redetermination in lieu of a continuing 
                disability review whenever the Commissioner 
                determines that the individual's entitlement is 
                subject to redetermination based on the 
                preceding provisions of this paragraph, and the 
                provisions of section 223(f) of the Social 
                Security Act shall not apply to such 
                redetermination.
  (b) Amendments Relating to SSI Benefits.--
          (1) * * *
          * * * * * * *
          (5) Effective dates.--
                  (A) The amendments made by paragraphs (1) and 
                (4) shall apply to any individual who applies 
                for, or whose claim is finally adjudicated [by 
                the Commissioner of Social Security] with 
                respect to, supplemental security income 
                benefits under title XVI of the Social Security 
                Act based on disability on or after the date of 
                the enactment of this Act, and, in the case of 
                any individual who has applied for, and whose 
                claim has been finally adjudicated [by the 
                Commissioner] with respect to, such benefits 
                before such date of enactment, such amendments 
                shall apply only with respect to such benefits 
                for months beginning on or after January 1, 
                1997.
                  [(B) The amendments made by paragraphs (2) 
                and (3) shall apply with respect to 
                supplemental security income benefits under 
                title XVI of the Social Security Act for which 
                applications are filed after the third month 
                following the month in which this Act is 
                enacted.]
                  (B) The amendments made by paragraphs (2) and 
                (3) shall take effect on July 1, 1996, with 
                respect to any individual--
                          (i) whose claim for benefits is 
                        finally adjudicated on or after the 
                        date of the enactment of this Act, or
                          (ii) whose eligibility for benefits 
                        is based upon an eligibility 
                        redetermination made pursuant to 
                        subparagraph (C).
                  (C) Within 90 days after the date of the 
                enactment of this Act, the Commissioner of 
                Social Security shall notify each individual 
                who is eligible for supplemental security 
                income benefits under title XVI of the Social 
                Security Act for the month in which this Act is 
                enacted and whose eligibility for such benefits 
                would terminate by reason of the amendments 
                made by this subsection. If such an individual 
                reapplies for supplemental security income 
                benefits under title XVI of such Act (as 
                amended by this Act) within 120 days after the 
                date of the enactment of this Act, the 
                Commissioner of Social Security shall, not 
                later than January 1, 1997, complete the 
                eligibility redetermination (including a new 
                medical determination) with respect to such 
                individual pursuant to the procedures of such 
                title.
                  (D) For purposes of this paragraph, an 
                individual's claim, with respect to 
                supplemental security income benefits under 
                title XVI of the Social Security Act based on 
                disability, which has been denied in whole 
                before the date of the enactment of this Act, 
                may not be considered to be finally adjudicated 
                before such date if, on or after such date--
                          (i) there is pending a request for 
                        either administrative or judicial 
                        review with respect to such claim, or
                          (ii) there is pending, with respect 
                        to such claim, a readjudication by the 
                        Commissioner of Social Security 
                        pursuant to relief in a class action or 
                        implementation by the Commissioner of a 
                        court remand order.
                  (E) Notwithstanding the provisions of this 
                paragraph, with respect to any individual for 
                whom the Commissioner does not perform the 
                eligibility redetermination before the date 
                prescribed in subparagraph (C), the 
                Commissioner shall perform such eligibility 
                redetermination in lieu of a continuing 
                disability review whenever the Commissioner 
                determines that the individual's eligibility is 
                subject to redetermination based on the 
                preceding provisions of this paragraph, and the 
                provisions of section 1614(a)(4) of the Social 
                Security Act shall not apply to such 
                redetermination.
                  [(D)] (F) For purposes of this paragraph, the 
                phrase ``supplemental security income 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.
          * * * * * * *
                              ----------                              

      SECTION 201 OF THE SOCIAL SECURITY INDEPENDENCE AND PROGRAM 
                        IMPROVEMENTS ACT OF 1994

SEC. 201. RESTRICTIONS ON PAYMENT OF BENEFITS BASED ON DISABILITY TO 
                    SUBSTANCE ABUSERS.

  (a) Amendments Relating to Benefits Based on Disability Under 
Title II of the Social Security Act.--
          (1) * * *
          * * * * * * *
          (3) Nonpayment or termination of benefits.--
                  (A) * * *
                  [(B) Report.--Not later than December 31, 
                1996, the Secretary shall submit to the 
                Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of 
                the Senate a full and complete report on 
theSecretary's activities under paragraph (5) of section 225(c) of the 
Social Security Act (as amended by subparagraph (A)). Such report shall 
include the number and percentage of individuals referred to in such 
paragraph who have not received regular drug testing since the 
effective date of such paragraph.]
          * * * * * * *
  (b) Amendments Relating to Supplemental Security Income 
Benefits Under Title XVI of the Social Security Act.--
          (1) * * *
          * * * * * * *
          (3) Nonpayment or termination of benefits.--
                  (A) * * *
                  (B) Referral, monitoring, and treatment.--
                          (i) In general.--Section 
                        1611(e)(3)(B) of such Act (42
                          [(ii) Report.--Not later than 
                        December 31, 1996, the Secretary shall 
                        submit to the Committee on Ways and 
                        Means of the House of Representatives 
                        and the Committee on Finance of the 
                        Senate a full and complete report on 
                        the Secretary's activities under 
                        section 1611(e)(3)(B) of the Social 
                        Security Act. The report shall include 
                        the number and percentage of 
                        individuals referred to in such 
                        paragraph who have not received regular 
                        drug testing since the effective date 
                        of the amendments made by clause (i) of 
                        this subparagraph.]
          * * * * * * *
                              ----------                              

    SECTION 505 OF THE SOCIAL SECURITY DISABILITY AMENDMENTS OF 1980

                  authority for demonstration projects

  Sec. 505. (a)(1) The Commissioner of Social Security shall 
develop and carry out experiments and demonstration projects 
designed to determine the relative advantages and disadvantages 
of (A) various alternative methods of treating the work 
activity of disabled beneficiaries under the old-age, 
survivors, and disability insurance program, including such 
methods as a reduction in benefits based on earnings, designed 
to encourage the return to work of disabled beneficiaries and 
(B) altering other limitations and conditions applicable to 
such disabled beneficiaries (including, but not limited to, 
lengthening the trial work period, altering the 24-month 
waiting period for medicare benefits, altering the manner in 
which such program is administered, earlier referral of 
beneficiaries for rehabilitation, and greater use of employers 
and others to develop, perform, and otherwise stimulate new 
forms of rehabilitation), to the end that savings will accrue 
to the Trust Funds, or to otherwise promote the objectives or 
facilitate the administration of title II of the Social 
Security Act (subchapter II of this chapter). The Commissioner 
may expand the scope of any such experiment or demonstration 
project to include any group of applicants for benefits under 
such program with impairments which may reasonably be presumed 
to be disabling for purposes of such experiment or 
demonstration project, and may limit any such experiment or 
demonstration project to any such group of applicants, subject 
to the terms of such experiment or demonstration project which 
shall define the extent of any such presumption.
          * * * * * * *
  (3) In the case of any experiment or demonstration project 
under paragraph (1) which is initiated before June 10, [1996] 
1999, the Commissioner may waive compliance with the benefit 
requirements of title II of the Social Security Act (subchapter 
II of this chapter), and the Secretary of Health and Human 
Services may (upon the request of the Commissioner) waive 
compliance with the benefits requirements of title XVIII of 
such Act (subchapter XVIII of this chapter), insofar as is 
necessary for a thorough evaluation of the alternative methods 
under consideration. No such experiment or project shall be 
actually placed in operation unless at least ninety days prior 
thereto a written report, prepared for purposes of notification 
and information only and containing a full and complete 
description thereof, has been transmitted by the Commissioner 
to the Committee on Ways and Means of the House of 
Representatives and to the Committee on Finance of the Senate. 
Periodic reports on the progress of such experiments and 
demonstration projects shall be submitted by the Commissioner 
to such committees. When appropriate, such reports shall 
include detailed recommendations for changes in administration 
or law, or both, to carry out the objectives stated in 
paragraph (1).
  (4) On or before June 9 in 1986 and each of the succeeding 
years through 1995, and on or before October 1, 1998, the 
Commissioner shall submit to the Congress an interim report on 
the progress of the experiments and demonstration projects 
carried out under this subsection together with any related 
data and materials which the Commissioner may consider 
appropriate.
          * * * * * * *
  (c) The Secretary shall submit to the Congress a final report 
with respect to all experiments and demonstration projects 
carried out under this section (other than demonstration 
projects conducted under section 5120 of the Omnibus Budget 
Reconciliation of 1990) no later than October 1, [1996] 1999.
          * * * * * * *
                              ----------                              

              SECTION 552a OF TITLE 5, UNITED STATES CODE

Sec. 552a. Records maintained on individuals

  (a) Definitions.--For purposes of this section--
          (1) * * *
          * * * * * * *
          (8) the term ``matching program''--
                  (A) * * *
          * * * * * * *
                  (B) but does not include--
                          (i) * * *
          * * * * * * *
                          (v) matches--
                                  (I) using records 
                                predominantly relating to 
                                Federal personnel, that are 
                                performed for routine 
                                administrative purposes 
                                (subject to guidance provided 
                                by the Director of the Office 
                                of Management and Budget 
                                pursuant to subsection (v)); or
                                  (II) conducted by an agency 
                                using only records from systems 
                                of records maintained by that 
                                agency;
                        if the purpose of the match is not to 
                        take any adverse financial, personnel, 
                        disciplinary, or other adverse action 
                        against Federal personnel [or];
                          (vi) matches performed for foreign 
                        counterintelligence purposes or to 
                        produce background checks for security 
                        clearances of Federal personnel or 
                        Federal contractor personnel; or
                          (vii) matches performed pursuant to 
                        section 202(x), 205(j), 1611(e)(1), or 
                        1631(a)(2) of the Social Security Act;
          * * * * * * *
                              ----------                              

             SECTION 1738B OF TITLE 28, UNITED STATES CODE

Sec. 1738B. Full faith and credit for child support orders

  (a) * * *
          * * * * * * *
  (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) * * *
          * * * * * * *
          (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 isse a child support 
        order, which must be recognized.] a court having 
        jurisdiction over the parties shall 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 under subsection (d).
          * * * * * * *
                              ----------                              

      SECTION 215 OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES 
                        APPROPRIATIONS ACT, 1997

    [Sec. 215. Section 345 of Public Law 104-193 is amended by 
replacing ``section 457(a)'' wherever it appears with ``a plan 
approved under this part''. Amounts available under such 
section shall be calculated as though such section were 
effective October 1, 1995.]
  Sec. 215. Sections 452(j) and 453(o) of the Social Security 
Act (42 U.S.C. 652(j) and 653(o)), as amended by section 345 of 
the Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996 (Public Law 104-193; 110 Stat. 2237) are each 
amended by striking ``section 457(a)'' and inserting ``a plan 
approved under this part''. Amounts available under such 
sections 452(j) and 453(o) shall be calculated as though the 
amendments made by this section were effective October 1, 1995.
                              ----------                              

          SECTION 27 OF THE UNITED STATES HOUSING ACT OF 1937

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] not lawfully present 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] not lawfully present in the United States.
                              ----------                              

      SECTION 384 OF THE ILLEGAL IMMIGRATION REFORM AND IMMIGRANT 
                       RESPONSIBILITY ACT OF 1996

SEC. 384. PENALTIES FOR DISCLOSURE OF INFORMATION.

  (a)  * * *
  (b) Exceptions.--
          (1) * * *
          * * * * * * *
          (5) The Attorney General is authorized to disclose 
        information, to Federal, State, and local public and 
        private agencies providing benefits, to be used solely 
        in making determinations of eligibility for benefits 
        pursuant to section 431(c) of the Personal 
        Responsibility and Work Opportunity Reconciliation Act 
        of 1996.
          * * * * * * *
                              ----------                              

       SECTION 204 OF THE SOCIAL SECURITY ACT AMENDMENTS OF 1994

SEC. 204. STATES REQUIRED TO REPORT ON MEASURES TAKEN TO COMPLY WITH 
                    THE INDIAN CHILD WELFARE ACT.

  (a) State Plan Requirement.--Section 422(b) (42 U.S.C. 
622(b)), as amended by section 202(a), is amended--
          (1) by striking ``and'' at the end of paragraph (8);
          (2) by striking the period at the end of paragraph 
        (9) (as added by such section 202(a)) and inserting ``; 
        and''; and
          * * * * * * *
                              ----------                              

           CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 1990

SEC. 658A. SHORT TITLE AND GOALS.

  (a) Short Title.--This subchapter may be cited as the ``Child 
Care and Development Block Grant Act of 1990''.
          * * * * * * *

SEC. 658E. APPLICATION AND PLAN.

  (a) * * *
          * * * * * * *
  (c) Requirements of a Plan.--
          (1) Lead agency.--The State plan shall identify the 
        lead agency designated under section 658D.
          (2) Policies and procedures.--The State plan shall:
                  (A) * * *
          * * * * * * *
                  (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 availableresources) 
that shall be applicable to Indian tribes and [tribal organization] 
tribal organizations receiving assistance under this subchapter.
          * * * * * * *

SEC. 658K. REPORTS AND AUDITS.

  (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) * * *
          * * * * * * *
                          [(iv) whether the family includes 
                        only one parent;]
                          (iv) whether the head of the family 
                        unit is a single parent;
                          (v) the sources of family income, 
                        [including the amount obtained from 
                        (and separately identified)--] 
                        including--
                                  (I) employment, including 
                                self-employment;
                                  [(II) cash or other 
                                assistance under part A of 
                                title IV of the Social Security 
                                Act;]
                                  (II) cash or other assistance 
                                under--
                                          (aa) the temporary 
                                        assistance for needy 
                                        families program under 
                                        part A of title IV of 
                                        the Social Security Act 
                                        (42 U.S.C. 601 et 
                                        seq.); and
                                          (bb) a State program 
                                        for which State 
                                        spending is counted 
                                        toward the maintenance 
                                        of effort requirement 
                                        under section 409(a)(7) 
                                        of the Social Security 
                                        Act (42 U.S.C. 
                                        609(a)(7));
                                  (III) housing assistance;
                                  (IV) assistance under the 
                                Food Stamp Act of 1977; and
                                  (V) other assistance 
                                programs;
          * * * * * * *
                          (x) the average hours per [week] 
                        month 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.]
                  (D) Use of samples.--
                          (i) Authority.--A State may comply 
                        with the requirement to collect the 
                        information described in subparagraph 
                        (B) through the use of disaggregated 
                        case record information on a sample of 
                        families selected 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 
                        deems necessary to produce 
                        statistically valid samples of the 
                        information described in subparagraph 
                        (B). The Secretary may develop and 
                        implement procedures for verifying the 
                        quality of data submitted by the 
                        States.
          (2) [Biannual] Annual reports.--Not later than 
        December 31, 1997, and every [6] 12 months thereafter, 
        a State described in paragraph (1)(A) shall prepare and 
        submit to the Secretary a report that includes 
        aggregate data concerning--
                  (A) * * *
          * * * * * * *

SEC. 658L. REPORT BY SECRETARY.

  Not later than July 31, [1997] 1998, and biennially 
thereafter, the Secretary shall prepare and submit to the 
Committee on Economic and Educational Opportunities of the 
House of Representatives and the Committee on Labor and Human 
Resources of the Senate a report that contains a summary and 
analysis of the data and information provided to the Secretary 
in the State reports submitted under section 658K. Such report 
shall include an assessment, and where appropriate, 
recommendations for the Congress concerning efforts that should 
be undertaken to improve the access of the public to quality 
and affordable child care in the United States.
          * * * * * * *

SEC. 658O. AMOUNTS RESERVED; ALLOTMENTS.

  (a) * * *
          * * * * * * *
  (c) Payments for the Benefit of Indian Children.--
          (1) * * *
          * * * * * * *
          (6) Construction or renovation of facilities.--
                  (A) * * *
          * * * * * * *
                  (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)] (B) is 
                being made.
          * * * * * * *

SEC. 658P. DEFINITIONS.

  As used in this subchapter:
          (1) * * *
          * * * * * * *
          (13) State.--The term ``State'' means any of the 
        several States, the District of Columbia, the Virgin 
        Islands of the United States, the Commonwealth of 
        Puerto Rico, Guam, American Samoa, [or] and the 
        Commonwealth of the Northern Mariana Islands.
          * * * * * * *
                              ----------                              

               HUMAN SERVICES REAUTHORIZATION ACT OF 1986

          * * * * * * *

 [TITLE VI--CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP ASSISTANCE PROGRAM

[SEC. 601. SHORT TITLE.

  [This title may be cited as the ``Child Development Associate 
Scholarship Assistance Act of 1985''.

[SEC. 602. GRANTS AUTHORIZED.

  [The Secretary is authorized to make a grant for any fiscal 
year to any State receiving a grant under title XX of the 
Social Security Act for such fiscal year to enable such State 
to award scholarships to eligible individuals within the State 
who are candidates for the Child Development Associate 
credential.

[SEC. 603. APPLICATIONS.

  [(a) Application Required.--A State desiring to participate 
in the grant program established by this title shall submit an 
application to the Secretary in such form as the Secretary may 
require.
  [(b) Contents of Applications.--A State's application shall 
contain appropriate assurances that--
          [(1) scholarship assistance made available with funds 
        provided under this title will be awarded--
                  [(A) only to eligible individuals;
                  [(B) on the basis of the financial need of 
                such individuals; and
                  [(C) in amounts sufficient to cover the cost 
                of application, assessment, and credentialing 
                (including, at the option of the State, any 
                training necessary for credentialing) for the 
                Child Development Associate credential for such 
                individuals;
          [(2) not more than 35 percent of the funds received 
        under this title by a State may be used to provide 
        scholarship assistance under paragraph (1) to cover the 
        cost of training described in paragraph (1)(C); and
          [(3) not more than 10 percent of the funds received 
        by the State under this title will be used for the 
        costs of administering the program established in such 
        State to award such assistance.
  [(c) Equitable Distribution.--In making grants under this 
title, the Secretary shall--
          [(1) distribute such grants equitably among States; 
        and
          [(2) ensure that the needs of rural and urban areas 
        are appropriately addressed.

[SEC. 604. DEFINITIONS.

  [For purposes of this title--
          [(1) the term ``eligible individual'' means a 
        candidate for the Child Development Associate 
        credential whose income does not exceed the 130 percent 
        of the lower living standard income level, by more than 
        50 percent;
          [(2) the term ``lower living standard income level'' 
        means that income level (adjusted for regional, 
        metropolitan, urban, and rural differences and family 
        size) determined annually by the Secretary of Labor and 
        based on the most recent lower living family budget 
        issued by the Secretary of Labor;
          [(3) the term ``Secretary'' means the Secretary of 
        Health and Human Services; and
          [(4) the term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, American Samoa, the Virgin Islands, 
        the Commonwealth of the Northern Mariana Islands, the 
        Marshall Islands, the Federated States of Micronesia, 
        and Palau.

[SEC. 605. ADMINISTRATIVE PROVISIONS.

  [(a) Reporting.--Each State receiving grants under this title 
shall annually submit to the Secretary information on the 
number of eligible individuals assisted under the grant 
program, and their positions and salaries before and after 
receiving the Child Development Associate credential.
  [(b) Payments.--Payments pursuant to grants made under this 
title may be made in installments, and in advance or by way of 
reimbursement, with necessary adjustments on account of 
overpayments or underpayments, as the Secretary may determine.

[SEC. 606. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
title such sums as may be necessary for fiscal year 1995.]
          * * * * * * *
                              ----------                              

               OMNIBUS BUDGET RECONCILIATION ACT OF 1981

                   TITLE VI--HUMAN SERVICES PROGRAMS

  Subtitle A--Authorizations Savings for Fiscal Years 1982, 1983, and 
                                  1984

          * * * * * * *

                 CHAPTER 8--COMMUNITY SERVICES PROGRAMS

          * * * * * * *

    [Subchapter E--Grants to States for Planning and Development of 
             Dependent Care Programs and for Other Purposes

                    [authorization of appropriations

  [Sec. 670A. For the purpose of making allotments to States to 
carry out the activities described in section 670D, there is 
authorized to be appropriated $13,000,000 for fiscal year 1995.

                              [allotments

  [Sec. 670B. (a) From the amounts appropriated under section 
6701A for each fiscal year, the Secretary shall allot to each 
State an amount which bears the same ratio to the total amount 
appropriated under such section for such fiscal year as the 
population of the State bears to the population of all States, 
except that no State may receive less than $50,000 in each 
fiscal year.
  [(b) For the purpose of the exception contained in subsection 
(a), the term ``State'' does not include Guam, American Samoa, 
the Virgin Islands, the Trust Territory of the Pacific Islands, 
and the Commonwealth of the Northern Mariana Islands.

                  [payments under allotments to states

  [Sec. 670C. The Secretary shall make payment, as provided by 
section 6503(a) of title 31, United States Code, to each State 
from its allotment under section 670B from amounts appropriated 
under section 670A.

                           [use of allotments

  [Sec. 670D. (a)(1) Subject to the provisions of subsections 
(c) and (d), amounts paid to a State under section 670C from it 
allotment under section 670B may be used for the planning, 
development, establishment, operation, expansion, or 
improvement by the States, directly or by grant or contract 
with public or private entities, of State and local resource 
and referral systems to provide information concerning the 
availability, types, costs, and locations of dependent care 
services. The information provided by any such system may 
include--
          [(A) the types of dependent care services available, 
        including services provided by individual homes, 
        religious organizations, community organizations, 
        employers, private industry, and public and private 
        institutions;
          [(B) the cost of available dependent care services;
          [(C) the locations in which dependent care services 
        are provided;
          [(D) the forms of transportation available to such 
        locations;
          [(E) the hours during which such dependent care 
        services are available;
          [(F) the dependents eligible to enroll for such 
        dependent care services; and
          [(G) any resource and referral system planned, 
        developed, established, expanded, or improved with 
        amounts paid to a State under this subchapter.
  [(2) The State, with respect to the uses of funds described 
in paragraph (1) of this subsection shall--
          [(A) provide assurances that no information will be 
        included with respect to any dependent care services 
        which are not provided in compliance with the laws of 
        the State and localities in which such services are 
        provided; and
          [(B) provide assurances that the information provided 
        will be the latest information available and will be 
        kept up to date.
  [(b)(1) Subject to the provisions of subsections (c) and (d), 
amounts paid to a State under section 670C from its allotment 
under section 670B may be used for the planning, development, 
establishment, operation, expansion, or improvement by the 
States, directly, or by grant or contract, with public agencies 
or private nonprofit organizations of programs to furnish 
school-age child care services before and after school. Amounts 
so paid to a State and used for the operation of such child 
care services shall be designed to enable children, whose 
families lack adequate financial resources, to participate in 
before or after school child care programs.
  [(2) The State, with respect to the uses of funds described 
in paragraph (1) of this subsection shall--
          [(A) provide assurances, in the case of an applicant 
        that is not a State or local educational agency, that 
        the applicant has or will enter into an agreement with 
        the State or local educational agency, institution of 
        higher education or community center containing 
        provisions for--
                  [(i) the use of facilities for the provision 
                of before or after school child care services 
                (including such use during holidays and 
                vacation periods),
                  [(ii) the restrictions, if any, on the use of 
                such space, and
                  [(iii) the times when the space will be 
                available for the use of the applicant;
          [(B) provide an estimate of the costs of the 
        establishment of the child care service program in the 
        facilities;
          [(C) provide assurances that the parents of school-
        age children will be involved in the development and 
        implementation of the program for which assistance is 
        sought under this Act;
          [(D) provide assurances that the applicant is able 
        and willing to seek to enroll racially, ethnically, and 
        economically diverse school-age children, as well as 
        handicapped school-age children, in the child care 
        service program for which assistance is sought under 
        this Act;
          [(E) provide assurances that the child care program 
        is in compliance with State and local child care 
        licensing laws and regulations governing day care 
        services for school-age children to the extent that 
        such regulations are appropriate to the age group 
        served; and
          [(F) provide such other assurance as the chief 
        executive officer of the State may reasonably require 
        to carry out this Act.
  [(c)(1) Except as provided in paragraph (2), of the allotment 
to each State in each fiscal year--
          [(A) 40 percent shall be available for the activities 
        described in subsection (a); and
          [(B) 60 percent shall be available for the activities 
        described in subsection (b).
  [(2) For any fiscal year the Secretary may waive the 
percentage requirements specified in paragraph (1) on the 
request of a State if such State demonstrates to the 
satisfaction of the Secretary--
          [(A) that the amount of funds available as a result 
        of one of such percentage requirements is not needed in 
        such fiscal year for the activities for which such 
        amount is so made available; and
          [(B) the adequacy of the alternative percentages, 
        relative to need, the State specifies the State will 
        apply with respect to all of the activities referred to 
        in paragraph (1) if such waiver is granted.
  [(d) A State may not use amounts paid to it under this 
subchapter to--
          [(1) make cash payments to intended recipient of 
        dependent care services including child care services;
          [(2) pay for construction or renovation; or
          [(3) satisfy any requirement for the expenditure of 
        non-Federal funds as a condition for the receipt of 
        Federal funds.
  [(e)(1) The Federal share of any project supported under this 
subchapter shall be not more than 75 percent.
  [(2) Not more than 10 percent of the allotment of each State 
under this subchapter may be available for the cost of 
administration.
  [(f) Project supported under this section to plan, develop, 
establish, expand, operate, or improve a State or local 
resource and referral system or before or after school child 
care program shall not duplicate any services which are 
provided before the date of the enactment of this subchapter, 
by the State or locality which will be served by such system.
  [(g) The Secretary may provide technical assistance to States 
in planning and carrying out activities under this subchapter.

        [application and description of activities; requirements

  [Sec. 670E. (a)(1) In order to receive an allotment under 
section 670B, each State shall submit an application to the 
Secretary. Each such application shall be in such form and 
submitted by such date as the Secretary shall require.
  [(2) Each application required under paragraph (1) for an 
allotment under section 670B shall contain assurances that the 
State will meet the requirements of subsection (b).
  [(b) As part of the annual application required by subsection 
(a), the chief executive officer of each State shall--
          [(1) certify that the State agrees to use the funds 
        allotted to it under section 670B in accordance with 
        the requirements of this subchapter; and
          [(2) certify that the State agrees that Federal funds 
        made available under section 670C for any period will 
        be so used as to supplement and increase the level of 
        State, local, and other non-Federal funds that would in 
        the absence of such Federalfunds be made available for 
the programs and activities for which funds are provided under that 
section and will in no event supplant such State, local, and other non-
Federal funds.
The Secretary may not prescribe for a State the manner of 
compliance with the requirements of this subsection.
  [(c)(1) The chief executive officer of a State shall, as part 
of the application required by subsection (a), also prepare and 
furnish the Secretary (in accordance with such form as the 
Secretary shall provide) with a description of the intended use 
of the payments the State will receive under section 670C, 
including information on the programs and activities to be 
supported. The description shall be made public within the 
State in such manner as to facilitate comment from any person 
(including any Federal or other public agency) during 
development of the description and after its transmittal. The 
description shall be revised (consistent with this section) 
until September 30, 1991, as may be necessary to reflect 
substantial changes in the programs and activities assisted by 
the State under this subchapter, and any revision shall be 
subject to the requirements of the preceding sentence.
  [(2) The chief executive officer of each State shall include 
in such a description of--
          [(A) the number of children who participated in 
        before and after school child care programs assisted 
        under this subchapter;
          [(B) the characteristics of the children so served 
        including age levels, handicapped condition, income 
        level of families in such programs;
          [(C) the salary level and benefits paid to employees 
        in such child care programs; and
          [(D) the number of clients served in resource and 
        referral systems assisted under this subchapter, and 
        the types of assistance they requested.
  [(d) Except where inconsistent with the provisions of this 
subchapter, the provisions of section 1903(b), paragraphs (1) 
through (5) of section 1906(a), and sections 1906(b), 1907, 
1908, and 1909 of the Public Health Service Act shall apply to 
this subchapter in the same manner as such provisions apply to 
part A of title XIX of such Act.

                                [report

  [Sec. 670F. Within three years after the date of enactment of 
this subchapter, the Secretary shall prepare and transmit to 
the Senate Committee on Labor and Human Resources and the House 
Committee on Education and Labor a report concerning the 
activities conducted by the States with amounts provided under 
this subchapter.

                              [definitions

  [Sec. 670G. For purposes of this subchapter--
          [(1) the term ``community center'' means facilities 
        operated by nonprofit community-based organizations for 
        the provision of recreational, social, or educational 
        services to the general public;
          [(2) the term ``dependent'' means--
                  [(A) an individual who has not attained the 
                age of 17 years;
                  [(B) an individual who has attained the age 
                of 55 years; or
                  [(C) an individual with a developmental 
                disability;
          [(3) the term ``developmental disability'' has the 
        same meaning as in section 102(7) of the Developmental 
        Disabilities Assistance and Bill of Rights Act;
          [(4) the term ``equipment'' has the same meaning 
        given that term by section 198(a)(8) of the Elementary 
        and Secondary Education Act of 1965;
          [(5) the term ``institution of higher education'' has 
        the same meaning given that term under section 1201(a) 
        of the Higher Education Act of 1965;
          [(6) the term ``local educational agency'' has the 
        same meaning given that term under section 14101 of the 
        Elementary and Secondary Education Act of 1965 of the 
        Elementary and Secondary Education Act of 1965;
          [(7) the term ``school-age children'' means children 
        aged five through thirteen, except that in any State in 
        which by State law children at an earlier age are 
        provided free public education, the age provided in 
        State law shall be substituted for age five;
          [(8) the term ``school facilities'' means classrooms 
        and related facilities used for the provision of 
        education;
          [(9) the term ``Secretary'' means the Secretary of 
        Health and Human Services;
          [(10) the term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, American Samoa, the Virgin Islands, 
        the Federated States of Micronesia, the Republic of the 
        Marshall Islands, Palau, and the Commonwealth of the 
        Northern Mariana Islands; and
          [(11) the term ``State educational agency'' has the 
        meaning given that term under section 14101 of the 
        Elementary and Secondary Education Act of 1965.

                              [short title

  [Sec. 670H. This subchapter may be cited as the ``State 
Dependent Care Development Grants Act''.]
          * * * * * * *
                              ----------                              

             ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965

          * * * * * * *

               TITLE X--PROGRAMS OF NATIONAL SIGNIFICANCE

          * * * * * * *

                       PART D--ARTS IN EDUCATION

          * * * * * * *

    Subpart 2--Cultural Partnerships for At-Risk Children and Youth

          * * * * * * *

SEC. 10413. AUTHORIZED ACTIVITIES.

  (a) In General.--Grants awarded under this subpart may be 
used--
          (1) * * *
          [(4) to provide child care for children of at-risk 
        students who would not otherwise be able to participate 
        in the program;]
          * * * * * * *

              PART J--URBAN AND RURAL EDUCATION ASSISTANCE

          * * * * * * *

            Subpart 1--Urban Education Demonstration Grants

          * * * * * * *

SEC. 10963. URBAN SCHOOL GRANTS.

  (a) * * *
  (b) Authorized Activities.--Funds under this section may be 
used to--
          (1) * * *
          (2) ensure the readiness of all urban public school 
        children for school, such as--
                  (A) * * *
          * * * * * * *
                  [(G) establishment of comprehensive child 
                care centers in public secondary schools for 
                students who are parents and their children; 
                and]
          * * * * * * *

            Subpart 2--Rural Education Demonstration Grants

          * * * * * * *

SEC. 10974. USES OF FUNDS.

  (a) In General.--Grant funds made available under section 
10973 may be used by rural eligible local educational agencies 
to meet the National Education Goals through programs designed 
to--
          (1) * * *
          * * * * * * *
          (6) ensure the readiness of all rural children for 
        school, such as--
                  (A) * * *
          * * * * * * *
                  [(G) establishment of comprehensive child 
                care centers in public secondary schools for 
                student parents and their children; and]
          * * * * * * *
                              ----------                              

           SECTION 9205 OF THE NATIVE HAWAIIAN EDUCATION ACT

[SEC. 9205. NATIVE HAWAIIAN FAMILY-BASED EDUCATION CENTERS.

  [(a) General Authority.--The Secretary is authorized to make 
direct grants, to Native Hawaiian educational organizations or 
educational entities with experience in developing or operating 
Native Hawaiian programs or programs of instruction conducted 
in the Native Hawaiian language, to expand the operation of 
Family-Based Education Centers throughout the Hawaiian Islands. 
The programs of such centers may be conducted in the Hawaiian 
language, the English language, or a combination thereof, and 
shall include--
          [(1) parent-infant programs for prenatal through 
        three-year-olds;
          [(2) preschool programs for four- and five-year-olds;
          [(3) continued research and development; and
          [(4) a long-term followup and assessment program, 
        which may include educational support services for 
        Native Hawaiian language immersion programs or 
        transition to English speaking programs.
  [(b) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(c) Authorization of Appropriations.--In addition to any 
other amount authorized to be appropriated for the centers 
described in subsection (a), there are authorized to be 
appropriated $6,000,000 for fiscal year 1995, and such sums as 
may be necessary for each of the four succeeding fiscal years, 
to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.]

                                
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