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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3500 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3500

    To amend title IV of the Social Security Act to provide welfare 
families with the education, training, job search, and work experience 
needed to prepare them to leave welfare within 2 years, to increase the 
    rate of paternity establishment for children receiving welfare 
   benefits, to provide States with greater flexibility in providing 
welfare, to authorize States to conduct demonstration projects to test 
the effectiveness of policies designed to help people leave welfare and 
    increase their financial security, to strengthen child support 
   enforcement, and to eliminate welfare payments for most groups of 
                              noncitizens.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 10, 1993

  Mr. Michel (for himself, Mr. Gingrich, Mr. Santorum, Mr. DeLay, Mr. 
 Shaw, Mrs. Johnson of Connecticut, Mr. Grandy, Mr. Camp, Mr. Castle, 
     Mr. Herger, Mr. Hutchinson, Mr. Inglis of South Carolina, Mr. 
   Knollenberg, Mr. Kolbe, Mrs. Roukema, Mr. Allard, Mr. Archer, Mr. 
  Armey, Mr. Bachus of Alabama, Mr. Baker of California, Mr. Baker of 
  Louisiana, Mr. Ballenger, Mr. Barrett of Nebraska, Mr. Bartlett of 
Maryland, Mr. Barton of Texas, Mr. Bateman, Mrs. Bentley, Mr. Bereuter, 
  Mr. Bilirakis, Mr. Bliley, Mr. Blute, Mr. Boehner, Mr. Bonilla, Mr. 
 Bunning, Mr. Burton of Indiana, Mr. Buyer, Mr. Callahan, Mr. Calvert, 
 Mr. Canady, Mr. Clinger, Mr. Coble, Mr. Collins of Georgia, Mr. Cox, 
 Mr. Crane, Mr. Crapo, Mr. Cunningham, Mr. Dickey, Mr. Doolittle, Mr. 
Dornan, Mr. Dreier, Mr. Duncan, Ms. Dunn, Mr. Emerson, Mr. Everett, Mr. 
Ewing, Mr. Fawell, Mr. Fields of Texas, Mrs. Fowler, Mr. Franks of New 
Jersey, Mr. Franks of Connecticut, Mr. Gallegly, Mr. Gallo, Mr. Gekas, 
 Mr. Gilchrest, Mr. Gilman, Mr. Goodlatte, Mr. Goodling, Mr. Goss, Mr. 
   Grams, Mr. Greenwood, Mr. Gunderson, Mr. Hancock, Mr. Hansen, Mr. 
Hastert, Mr. Hefley, Mr. Hobson, Mr. Hoekstra, Mr. Hoke, Mr. Horn, Mr. 
Houghton, Mr. Huffington, Mr. Hunter, Mr. Hyde, Mr. Inhofe, Mr. Istook, 
Mr. Sam Johnson of Texas, Mr. Kasich, Mr. Kim, Mr. King, Mr. Kingston, 
    Mr. Klug, Mr. Kyl, Mr. Lazio, Mr. Leach, Mr. Levy, Mr. Lewis of 
   California, Mr. Lewis of Florida, Mr. Lightfoot, Mr. Linder, Mr. 
Livingston, Mr. McCandless, Mr. McCollum, Mr. McCrery, Mr. McDade, Mr. 
   McHugh, Mr. McInnis, Mr. McKeon, Mr. McMillan, Mr. Machtley, Mr. 
 Manzullo, Mr. Mica, Mr. Miller of Florida, Mr. Moorhead, Mr. Nussle, 
 Mr. Oxley, Mr. Packard, Mr. Paxon, Mr. Petri, Mr. Pombo, Mr. Porter, 
 Mr. Portman, Ms. Pryce of Ohio, Mr. Quillen, Mr. Quinn, Mr. Ramstad, 
   Mr. Ravenel, Mr. Regula, Mr. Ridge, Mr. Roberts, Mr. Rogers, Mr. 
    Rohrabacher, Mr. Roth, Mr. Royce, Mr. Saxton, Mr. Schaefer, Mr. 
Sensenbrenner, Mr. Shuster, Mr. Skeen, Mr. Smith of Texas, Mr. Smith of 
 Michigan, Mr. Smith of Oregon, Mr. Solomon, Mr. Spence, Mr. Stearns, 
Mr. Stump, Mr. Sundquist, Mr. Talent, Mr. Taylor of North Carolina, Mr. 
Thomas of Wyoming, Mr. Thomas of California, Mr. Torkildsen, Mr. Upton, 
Mr. Walker, Mr. Walsh, Mr. Weldon, Mr. Wolf, Mr. Young of Florida, Mr. 
 Young of Alaska, Mr. Zeliff, and Mr. Zimmer) introduced the following 
 bill; which was referred jointly to the Committees on Ways and Means, 
Education and Labor, Energy and Commerce, Agriculture, Banking, Finance 
   and Urban Affairs, the Judiciary, Government Operations, and Rules

                             August 8, 1994

         Additional sponsors: Mr. Myers of Indiana and Mr. Fish

_______________________________________________________________________

                                 A BILL

 
    To amend title IV of the Social Security Act to provide welfare 
families with the education, training, job search, and work experience 
needed to prepare them to leave welfare within 2 years, to increase the 
    rate of paternity establishment for children receiving welfare 
   benefits, to provide States with greater flexibility in providing 
welfare, to authorize States to conduct demonstration projects to test 
the effectiveness of policies designed to help people leave welfare and 
    increase their financial security, to strengthen child support 
   enforcement, and to eliminate welfare payments for most groups of 
                              noncitizens.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Responsibility and Empowerment 
Support Program Providing Employment, Child Care, and Training Act''.

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--AFDC TRANSITION AND WORK PROGRAM

Sec. 101. AFDC transition and work program.
Sec. 102. Community work experience program amendments.
Sec. 103. Work supplementation program amendments.
Sec. 104. Effective date; regulations.
                   TITLE II--PATERNITY ESTABLISHMENT

Sec. 201. Reduction or denial of AFDC for children whose paternity is 
                            not established.
Sec. 202. Teens receiving AFDC required to live at home.
Sec. 203. Earlier paternity establishment efforts by States.
Sec. 204. Increase in paternity establishment percentage.
Sec. 205. Effective date.
        TITLE III--EXPANSION OF STATUTORY FLEXIBILITY OF STATES

Sec. 301. Option to convert AFDC into a block grant program.
Sec. 302. Option to deny AFDC if either parent is a minor.
Sec. 303. Option to treat interstate immigrants under rules of former 
                            State.
Sec. 304. Option to impose penalty for failure to attend school.
Sec. 305. Option to deny AFDC for additional children.
Sec. 306. Option to modify certain AFDC income disregard rules.
Sec. 307. Option to provide married couple transition benefit.
Sec. 308. Option to disregard income and resources designated for 
                            education, training, and employability, or 
                            related to self-employment.
Sec. 309. Option to require attendance at parenting and money managment 
                            classes, and prior approval of any action 
                            that would result in a change of school for 
                            a dependent child.
Sec. 310. Effective date.
           TITLE IV--EXPANSION OF STATE AND LOCAL FLEXIBILITY

Sec. 401. Interagency Waiver Request Board.
Sec. 402. Application to implement assistance plans.
Sec. 403. Review and approval of applications; waivers.
Sec. 404. Implementation of assistance plans; evaluations.
Sec. 405. Public-Private Partnership Committees.
Sec. 406. Definitions.
Sec. 407. Reports.
Sec. 408. Sunset.
                   TITLE V--CHILD SUPPORT ENFORCEMENT

Sec. 501. National reporting of information relating to child support 
                            with respect to certain employees.
Sec. 502. State information systems.
Sec. 503. National information systems.
Sec. 504. Income withholding.
Sec. 505. Uniform terms in orders.
Sec. 506. Work requirement for noncustodial parents with child support 
                            arrearages.
               TITLE VI--WELFARE RESTRICTIONS FOR ALIENS

Sec. 601. Ineligibility of aliens for public welfare assistance.
Sec. 602. State AFDC agencies required to provide information on 
                            illegal aliens to the Immigration and 
                            Naturalization Service.
                  TITLE VII--CONTROLLING WELFARE COSTS

Sec. 701. Caps on certain means-tested programs.
Sec. 702. Sequestration of Federal spending to enforce spending caps on 
                            means-tested programs.
   TITLE VIII--CONSOLIDATED BLOCK GRANT TO STATES FOR FOOD ASSISTANCE

Sec. 801. Food assistance block grant program.
Sec. 802. Availability of Federal coupon program to States.
Sec. 803. Authority to sell Federal surplus commodities.
Sec. 804. Definitions.
Sec. 805. Repealers and amendments.
Sec. 806. Effective date; application of repealers and amendments.
                        TITLE IX--MISCELLANEOUS

Sec. 901. AFDC recipients required to undergo necessary substance abuse 
                            treatment as a condition of receiving AFDC.
Sec. 902. SSI benefits for drug and alcohol addicts.
Sec. 903. Evaluation of education and training programs.
Sec. 904. Job search required while AFDC application is pending.
Sec. 905. Fraud and administrative efficiency.
Sec. 906. Public housing rent reform.
Sec. 907. Required immunizations for children.

               TITLE I--AFDC TRANSITION AND WORK PROGRAM

SEC. 101. AFDC TRANSITION AND WORK PROGRAM.

    (a) Purpose.--Section 481(a) of the Social Security Act (42 U.S.C. 
681(a)) is amended by striking all that follows ``and'' and inserting 
``work experience needed to prepare them for a life without welfare.''.
    (b) Establishment and Operation of Program.--
            (1) Transition and work components.--Section 482 of such 
        Act (42 U.S.C. 682) is amended by adding at the end the 
        following:
    ``(j) The program under this part must include--
            ``(1) a transition component that--
                    ``(A) must include the job search program 
                established by the State under subsection (g); and
                    ``(B) may include any other service, activity, or 
                program of the State that is referred to in subsection 
                (d)(1); and
            ``(2) a work component that may include--
                    ``(A) a work supplementation program operated by 
                the State under subsection (e);
                    ``(B) a community work experience program 
                established by the State under subsection (f); or
                    ``(C) any other work program of the State that is 
                approved by the Secretary.''.
            (2) Participation requirements.--Section 402(a)(19) of such 
        Act (42 U.S.C. 602(a)(19)) is amended by adding at the end the 
        following:
                    ``(I)(i) as used in this subparagraph, the term 
                `qualified individual' means--
                            ``(I) all individuals eligible for aid 
                        under the plan who applied for such aid on or 
                        after October 1, 1994, and are not described in 
                        subparagraph (C); and
                            ``(II) on and after October 1, 1998, all 
                        individuals eligible for aid under the plan who 
                        are not described in subparagraph (C);
                    ``(ii)(I) each qualified individual must 
                participate in the transition component of the program 
                of the State under part F, except that--
                            ``(aa) a qualified individual may not be 
                        required (but may be allowed) to participate in 
                        the transition component if, on the basis of 
                        demographic criteria, the State finds that it 
                        is unlikely that the individual will be a 
                        recipient of aid under the plan during a 
                        significant length of time;
                            ``(bb) a qualified individual may not 
                        participate in the transition component if the 
                        individual has elected to participate in the 
                        work component; and
                            ``(cc) a qualified individual may not 
                        participate in the transition component after 
                        the first 24 months (or, at the option of the 
                        State with respect to some or all qualified 
                        individuals based on their desire to work or on 
                        their readiness for employment, any period of 
                        lesser duration) for which the individual is a 
                        qualified individual; and
                            ``(dd) the State may, at its option, exempt 
                        a qualified individual, during 12 of the first 
                        24 months for which an individual is a 
                        qualified individual, from any requirement to 
                        participate in the transition component if the 
                        individual is described in paragraph (35)(A) 
                        and is in compliance with paragraph (35)(A);
                    ``(II)(aa) each qualified individual participating 
                in the transition component must participate in 
                activities under such component for an average of not 
                fewer than 10 hours per week during the first 24 months 
                of such participation;
                    ``(bb) the State, in consultation with the 
                Secretary, must establish guidelines by which 
                determinations under item (aa) will be made, and which, 
                in the case of educational activities, must provide 
                that an individual who is enrolled full-time in a 
                program of study at an educational institution 
                (including a vocational or technical training school), 
                as determined by the institution, and is making 
                satisfactory progress in the program of study, as 
                determined by the institution, is to be regarded as 
                participating in the transition component, in 
                accordance with such rules as the Secretary may 
                prescribe (including rules governing how time spent in 
                such a program of study is to be converted into hours 
                of participation in the transition component);
                    ``(iii)(I) if a qualified individual (other than a 
                qualified individual who is a member of a family 
                receiving aid under the plan by reason of section 407) 
                is not participating in the transition component of the 
                program, the State must require the qualified 
                individual to participate in the work component of the 
                program for 35 hours per week (or 30 hours per week, if 
                the State requires the participant to engage in a job 
                search program established by the State under section 
                482(g));
                    ``(II) in the case of a family which has received 
                aid under the plan by reason of section 407--
                            ``(aa) the State must require at least 1 
                        parent in the family to participate in the work 
                        component by engaging in work activities for 32 
                        hours per week and by engaging in job search 
                        activities for 8 hours per week;
                            ``(bb) the State must combine the aid 
                        payable to the family under the plan, and any 
                        food stamp benefits payable under the Food 
                        Stamp Act of 1977 to a household that includes 
                        a member of the family, into a single cash 
                        payment to the family, which shall be reduced 
                        pro rata with respect to any period for which 
                        the family has not complied with item (aa); and
                    ``(III) any qualified individual participating in 
                the work component, may, with the approval of the 
                State, discontinue participation in the work component 
                and begin or resume participation in the transition 
                component, subject to clause (ii)(I)(cc);
                    ``(iv) each qualified individual must cooperate 
                with the State in developing a plan which--
                            ``(I) describes the respective 
                        responsibilities of the State and of the 
                        individual under the program with the goal of 
                        preparing the individual for work; and
                            ``(II) includes a written statement 
                        informing the individual that, upon completion 
                        of the transition component of the program, aid 
                        under the State plan under this part will be 
                        discontinued unless the individual finds 
                        gainful employment or is participating in the 
                        work component of the program;
                    ``(v) if the State determines that a qualified 
                individual has failed to comply with any requirement 
                imposed under this subparagraph--
                            ``(I) in the case of the 1st such failure, 
                        the State shall reduce the amount of aid 
                        otherwise payable under this part to the family 
                        of the individual by an amount equal to 25 
                        percent of the sum of such otherwise payable 
                        amount and any food stamp benefits payable 
                        under the Food Stamp Act of 1977 to a household 
                        that includes a member of the family, and shall 
                        apply such reduction until the failure to 
                        comply ceases;
                            ``(II) in the case of the 2nd such failure 
                        or a 1st such failure that continues for more 
                        than 1 calendar month, the State shall reduce 
                        the amount of aid otherwise payable under this 
                        part to the family of the individual by an 
                        amount equal to 25 percent of the sum of such 
                        otherwise payable amount and any food stamp 
                        benefits payable under the Food Stamp Act of 
                        1977 to a household that includes a member of 
                        the family, and shall apply such reduction 
                        until the failure to comply ceases;
                            ``(III) in the case of the 3rd such 
                        failure, the family of the individual shall not 
                        be eligible for aid under the State plan under 
                        this part, notwithstanding any other provision 
                        of this part; and
                            ``(IV) any 1st such failure that continues 
                        for more than 1 calendar month shall be 
                        considered the 2nd such failure, and any 2nd 
                        such failure that continues for more than 3 
                        calendar months shall be considered the 3rd 
                        such failure;
                    ``(vi) at the option of the State, the State may 
                impose a rule under which the family of an individual 
                shall not be eligible for aid under the State plan 
                under this part, notwithstanding any other provision of 
                this part, after the individual has been required to 
                participate in the work component of the program for a 
                period (determined by the State) of not less than 3 
                years; and
                    ``(vii) if a family becomes ineligible for aid 
                under the State plan under this part by reason of 
                clause (v)(II) or (vi), the family shall, for purposes 
                of medical assistance under the State plan under title 
                XIX, be deemed to be a recipient of aid under the State 
                plan under this part for so long as the family is 
                otherwise eligible for aid under the State plan under 
                this part.''.
            (3) Persons exempted from participation.--Section 
        402(a)(19)(C) of such Act (42 U.S.C. 602(a)(19)(C)) is amended 
        by striking all that follows ``--'' and inserting the 
        following:
                    ``(C) that an individual may not be required to 
                participate in the program--
                            ``(i) if the individual is incapacitated;
                            ``(ii) if the individual works 30 or more 
                        hours per week;
                            ``(iii) if the individual attends, full-
                        time, an elementary, secondary, or vocational 
                        (or technical) school;
                            ``(iv) if the individual is the parent of a 
                        child who was returned to the home of the 
                        individual during the preceding 2 months after 
                        having been removed from the home;
                            ``(v) if the individual is providing full-
                        time care for a disabled dependent of the 
                        individual;
                            ``(vi) at the option of the State, if the 
                        individual is making progress in a substance 
                        abuse treatment program, unless this clause has 
                        been applied to the individual for 12 months;
                            ``(vii) during such 6-month period as the 
                        individual may select, in which the individual 
                        gives birth to the first child born to the 
                        individual after becoming eligible for aid 
                        under this part; or
                            ``(viii) during such 4-month period as the 
                        individual may select, in which the individual 
                        gives birth to the second or subsequent child 
                        born to the individual after becoming eligible 
                        for aid under this part;''.
            (4) Extension to all states of option to limit afdc-up.--
        Section 407(b)(2)(B) of such Act (42 U.S.C. 607(b)(2)(B)) is 
        amended by striking clause (iii).
            (5) Increase in required jobs participation rates.--Section 
        403(l)(3) of such Act (42 U.S.C. 603(l)(3)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking all that follows ``--'' and 
                        inserting the following:
            ``(i) with respect to all individuals eligible for aid 
        under the State plan who applied for such aid before October 1, 
        1994, and are not described in section 402(a)(19)(C)--
                    ``(I) 7 percent if the preceding fiscal year is 
                1990;
                    ``(II) 7 percent if such year is 1991;
                    ``(III) 11 percent if such year is 1992;
                    ``(IV) 11 percent if such year is 1993;
                    ``(V) 15 percent if such year is 1994;
                    ``(VI) 20 percent if such year is 1995;
                    ``(VII) 20 percent if such year is 1996;
                    ``(VIII) 20 percent if such year is 1997; and
                    ``(IX) 20 percent if such year is 1998;
            ``(ii) with respect to all individuals eligible for aid 
        under the State plan who applied for such aid on or after 
        October 1, 1994, and are not described in section 
        402(a)(19)(C)--
                    ``(I) 30 percent if such year is 1996;
                    ``(II) 40 percent if such year is 1997; and
                    ``(III) 50 percent if such year is 1998; and
            ``(iii) with respect to all individuals eligible for aid 
        under the State plan who are not described in section 
        402(a)(19)(C)--
                    ``(I) 60 percent if such year is 1999;
                    ``(II) 70 percent if such year is 2000;
                    ``(III) 80 percent if such year is 2001; and
                    ``(IV) 90 percent if such year is 2002.''; and
                    (B) in subparagraph (B)(ii)(IV), by striking ``and 
                1995'' and inserting ``through 2002''.
            (6) Increase in required work program participation rates 
        of unemployed parents.--Section 403(l)(4)(B) of such Act (42 
        U.S.C. 603(l)(4)(B)) is amended--
                    (A) in clause (iii), by striking ``and'';
                    (B) in clause (iv), by striking ``each of the 
                fiscal years 1997 and 1998.'' and inserting ``fiscal 
                year 1997; and''; and
                    (C) by adding at the end the following:
            ``(v) 90 percent in the case of the average of each month 
        in fiscal year 1998.''.
    (c) Payments to States.--Section 403 of such Act (42 U.S.C. 603) is 
amended by adding at the end the following:
    ``(o)(1) Each State which has been paid under subsection (l) of 
this section for any fiscal year an amount equal to the limitation 
determined under subsection (k)(2) of this section for the fiscal year 
shall be entitled to payments under paragraph (4) of this subsection 
for the fiscal year in an amount equal to the lesser of--
            ``(A) the sum of the applicable percentages (specified in 
        such paragraph (4)) of its expenditures to carry out the 
        program of the State under part F (subject to limitations 
        prescribed by or pursuant to such part or such paragraph (4) on 
        expenditures that may be included for purposes of determining 
        payment under such paragraph (4)); or
            ``(B) the limitation determined under paragraph (2) of this 
        subsection with respect to the State for the fiscal year.
    ``(2) The limitation determined under this paragraph with respect 
to a State for any fiscal year is the amount that bears the same ratio 
to the amount specified in paragraph (3) of this subsection for the 
fiscal year as the average monthly number of adult recipients (as 
defined in subsection (k)(4)) in the State in the preceding fiscal year 
bears to the average monthly number of such recipients in all the 
States for such preceding year.
    ``(3) The amount specified in this paragraph is--
            ``(A) $300,000,000 for fiscal year 1996;
            ``(B) $1,000,000,000 for fiscal year 1997; and
            ``(C) $1,900,000,000 for fiscal year 1998.
    ``(4) Each State which has been paid under subsection (l) of this 
section for a fiscal year an amount equal to the limitation determined 
under subsection (k)(2) of this section for the fiscal year shall, in 
addition to any payment under subsection (a) or (l) of this section, be 
entitled to payment from the Secretary of an amount equal to--
            ``(A) 50 percent of the expenditures of the State for 
        administrative costs incurred in operating the program under 
        part F during the fiscal year (other than personnel costs for 
        staff employed in the operation of the program) with respect to 
        which payment has not been made under subsection (l); and
            ``(B) the greater of 70 percent or the Federal medical 
        assistance percentage (as defined in section 1118 in the case 
        of a State to which section 1108 applies, or as defined in 
        section 1905(b) in the case of any other State) of the other 
        expenditures of the State incurred in operating the program 
        during the fiscal year with respect to which payment has not 
        been made under subsection (l).
    ``(5)(A) Notwithstanding paragraph (4) of this subsection, the 
Secretary shall pay to a State an amount equal to 50 percent of the 
expenditures of the State incurred in operating the program under part 
F during a fiscal year and with respect to which payment has not been 
made under subsection (l) if the State's participation rate (determined 
under subparagraph (B) of this paragraph) for the immediately preceding 
fiscal year is less than--
            ``(i) 15 percent if the preceding fiscal year is 1994;
            ``(ii) 20 percent if such year is 1995;
            ``(iii) 30 percent if such year is 1996;
            ``(iv) 40 percent if such year is 1997;
            ``(v) 50 percent if such year is 1998;
            ``(vi) 60 percent if such year is 1999;
            ``(vii) 70 percent if such year is 2000;
            ``(viii) 80 percent if such year is 2001; and
            ``(ix) 90 percent if such year is 2002.
    ``(B)(i) The State's participation rate for a fiscal year shall be 
the number, expressed as a percentage, equal to--
            ``(I) the number of individuals who participated in the 
        State's program under part F in the year; divided by
            ``(II) the number of individuals required to participate in 
        the program in the year (including individuals with respect to 
        whom the State has exercised its option to require their 
        participation).
    ``(ii) For purposes of this subparagraph, an individual shall not 
be considered to have satisfactorily participated in the program under 
part F solely by reason of the individual being registered to 
participate in the program.
    ``(C) For purposes of this paragraph, an individual shall be 
considered to have participated in the program under part F if the 
individual has participated in accordance with such requirements, 
consistent with regulations of the Secretary, as the State shall 
establish.
    ``(D)(i) If the Secretary determines that a State has failed to 
achieve the participation rate for any fiscal year specified in 
subparagraph (A) of this paragraph, then, subject to clause (ii), the 
Secretary may waive, in whole or in part, the reduction in the payment 
rate otherwise required by such subparagraph (A) if the Secretary finds 
that the State--
            ``(I) is in conformity with section 402(a)(19) and part F;
            ``(II) has made a good faith effort to achieve the 
        participation rate; and
            ``(III) has submitted a proposal which is likely to achieve 
        the applicable participation rates for the current fiscal year 
        and any succeeding fiscal year so specified.
    ``(ii) The Secretary may not grant a waiver to any State under 
clause (i) for more than 12 months (whether or not consecutive) in any 
48-month period.''.
    (d) Conforming Amendment.--Section 403(l)(3)(D) of such Act (42 
U.S.C. 603(l)(3)(D)) is amended--
            (1) by inserting ``(i)'' after (D)'';
            (2) by inserting ``who is eligible for aid under the State 
        plan, who applied for such aid on or after October 1, 1994, and 
        who is not described in section 402(a)(19)(C)'' after ``an 
        individual''; and
            (3) by adding at the end the following:
    ``(ii) For purposes of this paragraph, an individual who is 
eligible for aid under the State plan, who applied for such aid before 
October 1, 1994, and is not described in section 402(a)(19)(C) shall 
not be determined to have participated in the program under part F for 
a week, if such individual has participated in such program for less 
than 10 hours during the week.''.
    (e) Sense of the Congress.--Each State that operates a program 
under section 402(a)(19), and part F of title IV, of the Social 
Security Act is encouraged to begin with families that include older 
preschool or school-age children.

SEC. 102. COMMUNITY WORK EXPERIENCE PROGRAM AMENDMENTS.

    Section 482(f)(1)(B) of the Social Security Act (42 U.S.C. 
682(f)(1)(B)) is amended--
            (1) in clause (i)--
                    (A) by inserting ``(I)'' after ``(B)(i)''; and
                    (B) by striking ``(as determined by the State)'' 
                and inserting ``in the transition component of the 
                program under this part who is required to participate 
                in the program established under this subsection''; and
                    (C) by adding at the end the following:
    ``(II) Each participant in the work component of the program under 
this part who is required to participate in the program established 
under this subsection must be required to work for exactly 35 hours per 
week (or 30 hours per week, if the State requires the participant to 
engage in a job search program established by the State under 
subsection (g)).''; and
            (2) in clause (ii), by inserting ``who is a participant in 
        the transition component of the program under this part'' after 
        ``an individual''.

SEC. 103. WORK SUPPLEMENTATION PROGRAM AMENDMENTS.

    (a) Authority of States To Assign Participants to Unfilled Jobs.--
Section 484(c) of the Social Security Act (42 U.S.C. 684(c)) is amended 
by striking the last sentence.
    (b) Authority of States To Use Sums That Would Otherwise Be 
Expended for Food Stamp Benefits To Provide Subsidized Jobs for 
Participants.--
            (1) In general.--Section 482(e)(1) of such Act (42 U.S.C. 
        682(e)(1)) is amended--
                    (A) by inserting ``, and the sums that would 
                otherwise be used to provide participants in the 
                program under this subsection with food stamp benefits 
                under the Food Stamp Act of 1977,'' before ``and use''; 
                and
                    (B) by inserting ``and the food stamp benefits that 
                would otherwise be so provided to them'' before the 
                period.
            (2) Subsidies provided to employers and included in wages 
        of participants; minimum employer contribution.--Section 
        482(e)(3) of such Act (42 U.S.C. 682(e)(3)) is amended by 
        adding at the end the following:
    ``(E) Each State operating a work supplementation program under 
this subsection shall enter into an agreement with the employer who is 
to provide an eligible individual with a supplemented job under the 
program, under which--
            ``(i) the State is required to pay the employer an amount 
        specified in the agreement as the subsidized portion of the 
        wages of the eligible individual; and
            ``(ii) the employer is required to pay the eligible 
        individual wages which, when added to an amount that will be 
        payable as aid to families with dependent children to the 
        individual if the individual is paid such wages, are not less 
        than 100 percent of the sum of--
                    ``(I) the amount that would otherwise be payable as 
                aid to families with dependent children to the eligible 
                individual if the State did not have a work 
                supplementation program under this subsection in 
                effect; and
                    ``(II) if the State elects to subsidize jobs for 
                participants in the program through the reservation of 
                sums that would otherwise be used to provide such 
                participants with food stamp benefits under the Food 
                Stamp Act of 1977, the amount paid to the State by the 
                Secretary of Agriculture that represents the cash value 
                of the food stamp benefits for which the household of 
                the eligible individual is a member is eligible under 
                such Act.
    ``(F) For purposes of computing the amount of the Federal payment 
to a State under paragraph (1) or (2) of section 403(a), for 
expenditures incurred in making payments to individuals and employers 
under the State's work supplementation program under this section, the 
State may claim as such expenditures the maximum amount payable to the 
State under paragraph (4) of this subsection.
    ``(G) Notwithstanding paragraph (1), a State may use for any 
purpose the sums reserved under paragraph (1) which are not used to 
subsidize jobs under this subsection attributable to savings achieved 
by operation of subparagraph (E).''.
            (3) Conforming amendment.--Section 482(e)(3)(A) of such Act 
        (42 U.S.C. 682(e)(3)(A)) is amended by striking the 2nd 
        sentence.
            (4) Employment cashout of food stamp benefits.--Section 16 
        of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended by 
        adding at the end the following:
    ``(l) If a State agency of a State that makes the election 
described in section 482(e)(3)(E)(ii)(II) of the Social Security Act 
informs the Secretary that an individual who is participating in the 
work supplementation program carried out under section 482(e) of such 
Act is a member of a household that participates in the food stamp 
program and all the members of the household receive benefits under a 
State plan approved under part A of title IV of such Act--
            ``(1) the Secretary shall pay to the State an amount equal 
        to the value of the food stamp benefits the household is 
        eligible to receive under this Act;
            ``(2) the State shall expend the amount in accordance with 
        section 482(e)(3) of the Social Security Act to make a payment 
        to the individual in lieu of food stamp benefits the household 
        would receive but for the operation of this subsection;
            ``(3) for purposes of--
                    ``(A) sections 5 and 8(a) of this Act, the amount 
                shall be excluded from household income and resources; 
                and
                    ``(B) section 8(b) of this Act, the amount shall be 
                considered as the value of an allotment provided to the 
                household; and
            ``(4) the household shall not receive food stamp benefits 
        from the State agency for the period during which the member 
        continues to participate in the work supplementation 
        program.''.

SEC. 104. EFFECTIVE DATE; REGULATIONS.

    (a) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this title shall take effect on October 1, 
        1994.
            (2) State option for early applicability.--If a State 
        formally notifies the Secretary of Health and Human Services of 
        its desire to operate a program under section 402(a)(19) and 
        part F of title IV of the Social Security Act (as amended by 
        this title), during any period which begins after the date of 
        the enactment of this Act and ends on September 30, 1994, with 
        respect to 1 or more groups of individuals selected by the 
        State who are eligible for aid under the State plan approved 
        under section 402 of the Social Security Act, and makes such 
        changes in the plan as are required in order to so operate the 
        program (except that, in lieu of the definition contained in 
        section 402(a)(19)(I)(i) of the Social Security Act, there is 
        substituted a definition which describes such group or groups) 
        then--
                    (A) section 402(a)(19)(I) of the Social Security 
                Act (with such substituted definition) shall apply to 
                the State during the period; and
                    (B) section 403(o)(4)(B) of the Social Security Act 
                shall be applied to the State for the first 12 months 
                of such period by substituting ``85 percent'' for ``the 
                greater of 70 percent or the Federal medical assistance 
                percentage (as defined in section 1118 in the case of a 
                State to which section 1108 applies, or as defined in 
                section 1905(b) in the case of any other State)''.
    (b) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
prescribe such regulations as may be necessary to enable States to 
establish and operate programs pursuant to the amendments made by this 
title.

                   TITLE II--PATERNTIY ESTABLISHMENT

SEC. 201. REDUCTION OR DENIAL OF AFDC FOR CHILDREN WHOSE PATERNITY IS 
              NOT ESTABLISHED.

    (a) Families Applying for AFDC.--
            (1) In general.--Section 402(a) of the Social Security Act 
        (42 U.S.C. 602(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (44);
                    (B) by striking the period at the end of paragraph 
                (45) and inserting ``; and''; and
                    (C) by inserting after paragraph (45) the 
                following:
            ``(46) unless the State has enacted a law exempting itself 
        from the application of this paragraph, provide that--
                    ``(A) except as provided in subparagraph (B), aid 
                under the State plan shall not be payable to a family 
                applying for such aid with respect to a dependent child 
                whose paternity has not been established, unless--
                            ``(i) the child was conceived as a result 
                        of rape or incest; or
                            ``(ii) the State determines that efforts to 
                        establish such paternity would result in 
                        physical danger to the relative claiming such 
                        aid;
                    ``(B) if the paternity of a dependent child has not 
                been established, the relative claiming such aid 
                alleges that any of not more than 3 named individuals 
                may be the father of the child and provides the address 
                of each of the named individuals or of the immediate 
                relatives of each of the named individuals, and the 
                State has not disproved the allegation, then--
                            ``(i) aid under the State plan shall be 
                        payable to the family in the amount payable 
                        family whose size is determined without regard 
                        to the dependent child; and
                            ``(ii) the entire family shall be eligible 
                        for medical assistance under the State plan 
                        approved under title XIX; and
                    ``(C) the relative claiming such aid shall have the 
                burden of proving any allegation of paternity of a 
                dependent child by an individual who is deceased, in 
                accordance with procedures established by the State in 
                consultation with the Secretary.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on October 1, 1993, and shall apply to 
        payments under part A of title IV of the Social Security Act 
        for calendar quarters beginning on or after such date.
    (b) All Families.--
            (1) In general.--Section 402(a)(46) of such Act (42 U.S.C. 
        602(a)(46)), as added by subsection (a) of this section, is 
        amended by striking ``applying for such aid''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 1994, and shall apply to 
        payments under part A of title IV of the Social Security Act 
        for calendar quarters beginning on or after such date.

SEC. 202. TEENS RECEIVING AFDC REQUIRED TO LIVE AT HOME.

    Section 402(a)(43) of the Social Security Act (42 U.S.C. 
602(a)(43)) is amended--
            (1) by striking ``at the option of the State,''; and
            (2) by striking ``18'' and inserting ``19''.

SEC. 203. EARLIER PATERNITY ESTABLISHMENT EFFORTS BY STATES.

    (a) In General.--Section 466(a)(5)(C) of the Social Security Act 
(42 U.S.C. 666(a)(5)(C)) is amended by redesignating clauses (i) and 
(ii) as clauses (ii) and (iii) and by inserting before clause (ii) (as 
so redesignated) the following: ``(i) a requirement that, as soon as an 
officer or employee of the State becomes aware, in the performance of 
official duties, of a pregnant, unmarried individual, the officer or 
employee (I) inform the individual, orally and in writing, that she 
will be ineligible for aid under the State plan under part A unless she 
informs the State of the identity of the prospective father and, after 
the child is born, cooperates in establishing the paternity of the 
child, and (II) encourage the individual to urge the prospective father 
to acknowledge paternity,''.
    (b) Conforming Amendments.--Section 466(a)(5) of such Act (42 
U.S.C. 666(a)(5)) is amended in each of subparagraphs (D) and (E) by 
striking ``(C)(ii)'' and inserting ``(C)(iii)''.
    (c) Sense of the Congress.--The Congress encourages the States to 
develop procedures in public hospitals and clinics to facilitate the 
acknowledgement of paternity.

SEC. 204. INCREASE IN PATERNITY ESTABLISHMENT PERCENTAGE.

    Section 452(g)(1) of the Social Security Act (42 U.S.C. 652(g)(1)) 
is amended by striking all that follows ``--'' and inserting the 
following:
            ``(A) 90 percent;
            ``(B) for a State with a paternity establishment percentage 
        of not less than 50 percent but less than 90 percent for such 
        fiscal year, the paternity establishment percentage of the 
        State for the immediately preceding fiscal year plus 6 
        percentage points; or
            ``(C) for a State with a paternity establishment percentage 
        of less than 50 percent for such fiscal year, the paternity 
        establishment percentage of the State for the immediately 
        preceding fiscal year plus 10 percentage points.''.

SEC. 205. EFFECTIVE DATE.

    Except as provided in section 201, the amendments made by this 
title shall take effect on October 1, 1993, and shall apply to payments 
under part A of title IV of the Social Security Act for calendar 
quarters ending beginning on or after such date.

        TITLE III--EXPANSION OF STATUTORY FLEXIBILITY OF STATES

SEC. 301. OPTION TO CONVERT AFDC INTO A BLOCK GRANT PROGRAM.

    Section 403 of the Social Security Act (42 U.S.C. 603) is amended 
by inserting after subsection (b) the following:
    ``(c)(1) Any State may elect to receive payments under this 
subsection in lieu of receiving payments under the other subsections of 
this section.
    ``(2) If a State makes an election under paragraph (1), then, in 
lieu of any payment under any other subsection of this section, the 
Secretary shall make payments to the State under this subsection for 
each fiscal year in an amount equal to 103 percent of the total amount 
to which the State was entitled under this section for fiscal year 
1992, subject to paragraph (5).
    ``(3) Each State to which an amount is paid under paragraph (2) for 
a fiscal year shall expend the amount to carry out any program 
established by the State to provide benefits to needy families with 
dependent children.
    ``(4) Within 3 months after the end of each fiscal year, each State 
that has made an election under paragraph (1) shall submit to the 
Secretary a report that accounts for all expenditures of amounts paid 
to the State under this subsection for the fiscal year.
    ``(5) The Secretary shall reduce by 20 percent the amount that 
would otherwise be payable to a State under this subsection for a 
fiscal year if the Secretary finds that the State has expended any 
amount provided under this subsection for any purpose other than to 
carry out a program of cash benefits to needy families with children.
    ``(6) The regulations issued with respect to State plans and the 
operation of State programs under this part (other than under this 
subsection) shall not apply to any State that makes an election under 
paragraph (1).''.

SEC. 302. OPTION TO DENY AFDC IF EITHER PARENT IS A MINOR.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)), as amended by section 201(a)(1) of this Act, is 
amended--
            (1) by striking ``and'' at the end of paragraph (45);
            (2) by striking the period at the end of paragraph (46) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (46) the following:
            ``(47) unless the State has enacted a law exempting itself 
        from the application of this paragraph, provide that aid under 
        the plan shall not be payable with respect to a child if either 
        parent of the child is a minor (as defined by the State).''.
    (b) Availability of AFDC-UP Benefits.--Section 407(b)(1)(A) of such 
Act (42 U.S.C. 607(b)(1)(A)) is amended by inserting ``, 
notwithstanding section 402(a)(50),'' before ``when--''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1993, and shall apply with respect to applications 
for aid under a State plan approved under part A of title IV of the 
Social Security Act that are made on or after such date.

SEC. 303. OPTION TO TREAT INTERSTATE IMMIGRANTS UNDER RULES OF FORMER 
              STATE.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 201(a)(1) and 302 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (46);
            (2) by striking the period at the end of paragraph (47) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (47) the following:
            ``(48) at the option of the State, in the case of a family 
        applying for aid under the State plan that has moved to the 
        State from another jurisdiction of the United States with a 
        State plan approved under this part, and has resided in the 
        State for less than 12 months consecutively, apply the rules 
        that would have been applied by such other jurisdiction if the 
        family had not moved from such other jurisdiction, in 
        determining the eligibility of the family for benefits, and the 
        amount of benefits payable to the family, under the State 
        plan.''.

SEC. 304. OPTION TO IMPOSE PENALTY FOR FAILURE TO ATTEND SCHOOL.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 201(a)(1), 302, and 303 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (47);
            (2) by striking the period at the end of paragraph (48) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (48) the following:
            ``(49) at the option of the State, provide that the aid 
        otherwise payable under the plan to a family may be reduced by 
        not more than $75 per month for each parent under 21 years of 
        age who has not completed secondary school (or the equivalent) 
        and each dependent child in the family who, during the 
        immediately preceding month, has failed, without good cause (as 
        defined by the State in consultation with the Secretary), to 
        maintain minimum attendance (as defined by the State in 
        consultation with the Secretary) at an educational 
        institution.''.

SEC. 305. OPTION TO DENY AFDC FOR ADDITIONAL CHILDREN.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 201(a)(1), 302, 303, and 304 of this Act, is 
amended--
            (1) by striking ``and'' at the end of paragraph (48);
            (2) by striking the period at the end of paragraph (49) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (49) the following:
            ``(50) unless the State has enacted a law exempting itself 
        from the application of this paragraph, provide that aid under 
        the plan shall not be payable with respect to a child born to--
                    ``(A) a recipient of aid under the plan; or
                    ``(B) an individual who received such aid at any 
                time during the 10-month period ending with the birth 
                of the child.''.

SEC. 306. OPTION TO MODIFY CERTAIN AFDC INCOME DISREGARD RULES.

    Section 402(a)(8)(B) of the Social Security Act (42 U.S.C. 
602(a)(8)(B)) is amended--
            (1) by striking ``and'' at the end of clause (i); and
            (2) by adding at the end the following:
                    ``(iii) notwithstanding clauses (ii) and (iv) of 
                subparagraph (A) and clause (ii) of this subparagraph, 
                may disregard earned income of any child or relative 
                receiving aid to families with dependent children, or 
                of any other individual (living in the same home as 
                such relative and child) whose needs as taken into 
                account in making the determination under paragraph 
                (7), in accordance with any combination of rules which 
                (as determined by the State in accordance with 
                regulations prescribed by the Secretary) is at least as 
                favorable to the recipient of such aid as the 
                combination of rules contained in such clauses, but not 
                more favorable to the recipient than a rule providing 
                for the disregard of the first $200 of the total of 
                such earned income for such month plus \1/2\ of the 
                remainder thereof; and''.

SEC. 307. OPTION TO PROVIDE MARRIED COUPLE TRANSITION BENEFIT.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)), as amended by sections 201(a)(1), 302, 303, 304, and 
305 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (49);
            (2) by striking the period at the end of paragraph (50) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (50) the following:
            ``(51) at the option of the State, provide that--
                    ``(A) if a recipient of aid under the plan marries 
                an individual who is not a parent of a child of the 
                recipient and (but for this paragraph) the resulting 
                family would have become ineligible for such aid by 
                reason of the marriage, then the family shall remain 
                eligible for aid under the plan, in an amount equal to 
                50 percent of the aid payable to the recipient 
                immediately before the marriage, for a period 
                (specified by the State) of not more than 12 months, 
                but only for so long as the income of the family is 
                less than 150 percent of the income official poverty 
                line (as defined by the Office of Management and 
                Budget, and revised annually in accordance with section 
                673(2) of the Omnibus Budget Reconciliation Act of 
                1981) applicable to a family of the size involved; and
                    ``(B) if a recipient of aid under the plan marries 
                an individual who is not a parent of a child of the 
                recipient and the resulting family would (in the 
                absence of this subparagraph) be eligible for such aid 
                by reason of section 407, then the State may provide 
                aid to the family in accordance with section 407 or 
                subparagraph (A) of this paragraph, but not both.''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply only with respect to individuals who first become recipients of 
aid under State plans approved under part A of title IV of the Social 
Security Act on or after October 1, 1993.

SEC. 308. OPTION TO DISREGARD INCOME AND RESOURCES DESIGNATED FOR 
              EDUCATION, TRAINING, AND EMPLOYABILITY, OR RELATED TO 
              SELF-EMPLOYMENT.

    (a) Resource Disregards.--Section 402(a)(7)(B) of the Social 
Security Act (42 U.S.C. 602(a)(7)(B)) is amended--
            (1) by striking ``or'' before ``(iv)''; and
            (2) by inserting ``(v) at the option of the State, in the 
        case of a family receiving aid under the State plan (and a 
        family not receiving such aid but which received such aid in at 
        least 1 of the preceding 4 months or became ineligible for such 
        aid during the preceding 12 months because of excessive 
        earnings), any amount (determined by the State) not to exceed 
        $10,000 in a qualified asset account (as defined in section 
        406(i)) of the family, or (vi) at the option of the State, the 
        first $10,000 of the net worth (assets reduced by liabilities 
        with respect thereto) of all microenterprises (as defined in 
        section 406(j)(1)) owned, in whole or in part, by such child, 
        relative, or other individual, for a period not to exceed 2 
        years'' before ``; and''.
    (b) Disregard of Income From Qualified Asset Accounts.--Section 
402(a)(8)(A) of such Act (42 U.S.C. 602(a)(8)(A)) is amended--
            (1) by striking ``and'' at the end of clause (vii); and
            (2) by inserting after clause (viii) the following new 
        clause:
                            ``(ix) at the option of the State, may 
                        disregard any interest or income earned on a 
                        qualified asset account (as defined in section 
                        406(i)), and any qualified distribution (as 
                        defined in section 406(i)(2)) from a qualified 
                        asset account (as defined in section 
                        406(i)(1)); and''.
    (c) Nonrecurring Lump Sum Exempt From Lump Sum Rule.--Section 
402(a)(17) of such Act (42 U.S.C. 602(a)(17)) is amended by adding at 
the end the following: ``; and, at the option of the State, that this 
paragraph shall not apply to earned or unearned income received in a 
month on a nonrecurring basis to the extent that such income is placed 
in a qualified asset account (as defined in section 406(i)) the total 
amounts in which, after such placement, does not exceed $10,000;''.
    (d) Only Net Profits of Microenterprise Treated as Income.--Section 
402(a)(7) of such Act (42 U.S.C. 602(a)(7)), as amended by subsection 
(a) of this section, is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the semicolon at the end of subparagraph 
        (C) and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) at the option of the State, may take into 
                consideration as earned income of the family of which 
                the child is a member, only the net profits (as defined 
                in section 406(j)(2)) of microenterprises (as defined 
                in section 406(j)(1)) owned, in whole or in part, by 
                such child, relative, or other individual, for a period 
                not to exceed 2 years.''.
    (e) Definitions.--Section 406 of such Act (42 U.S.C. 606) is 
amended by adding at the end the following:
    ``(i)(1) The term `qualified asset account' means a mechanism 
approved by the State (such as individual retirement accounts, escrow 
accounts, or savings bonds) that allows savings of a family receiving 
aid to families with dependent children to be used for qualified 
distributions.
    ``(2) The term `qualified distribution' means a distribution from a 
qualified asset account for expenses directly related to 1 or more of 
the following purposes:
            ``(A) The attendance of a member of the family at any 
        education or training program.
            ``(B) The improvement of the employability (including self-
        employment) of a member of the family (such as through the 
        purchase of an automobile).
            ``(C) The purchase of a home for the family.
            ``(D) A change of the family residence.
    ``(j)(1) The term `microenterprise' means a commercial enterprise 
which has 5 or fewer employees, 1 or more of whom owns the enterprise.
    ``(2) The term `net profits' means, with respect to a 
microenterprise, the gross receipts of the business, minus--
            ``(A) payments of principal or interest on a loan to the 
        microenterprise;
            ``(B) transportation expenses;
            ``(C) inventory costs;
            ``(D) expenditures to purchase capital equipment;
            ``(E) cash retained by the microenterprise for future use 
        by the business;
            ``(F) taxes paid by reason of the business;
            ``(G) if the business is covered under a policy of 
        insurance against loss--
                    ``(i) the premiums paid for such insurance; and
                    ``(ii) the losses incurred by the business that are 
                not reimbursed by the insurer solely by reason of the 
                existence of a deductible with respect to the insurance 
                policy;
            ``(H) the reasonable costs of obtaining 1 motor vehicle 
        necessary for the conduct of the business; and
            ``(I) the other expenses of the business.''.

SEC. 309. OPTION TO REQUIRE ATTENDANCE AT PARENTING AND MONEY 
              MANAGEMENT CLASSES, AND PRIOR APPROVAL OF ANY ACTION THAT 
              WOULD RESULT IN A CHANGE OF SCHOOL FOR A DEPENDENT CHILD.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)), as amended by sections 201(a)(1), 302, 303, 304, 305, 
and 307 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (50);
            (2) by striking the period at the end of paragraph (51) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (51) the following:
            ``(52) at the option of the State, provide that, as a 
        condition of receiving aid under the State plan, the receipient 
        must attend parenting and money management classes, and must 
        receive the permission of the State agency before taking any 
        action that would require a change in the educational 
        institution attended by a dependent child of the recipient.''.

SEC. 310. EFFECTIVE DATE.

    The amendments made by this title shall take effect on October 1, 
1993, and shall apply to payments under part A of title IV of the 
Social Security Act for calendar quarters beginning on or after such 
date.

           TITLE IV--EXPANSION OF STATE AND LOCAL FLEXIBILITY

SEC. 401. INTERAGENCY WAIVER REQUEST BOARD.

    (a) Establishment and Purpose.--In order to provide a focal point 
within the Federal Government for the development and coordination of 
waiver requests designed to improve opportunities for low-income 
individuals and families, there is established an Interagency Waiver 
Request Board.
    (b) Membership.--
            (1) Permanent members.--The Board shall consist of 9 
        permanent members, as follows:
                    (A) The Secretary of Agriculture (or the designee 
                of the Secretary).
                    (B) The Secretary of Health and Human Services (or 
                the designee of the Secretary).
                    (C) The Secretary of Housing and Urban Development 
                (or the designee of the Secretary).
                    (D) The Secretary of Labor (or the designee of the 
                Secretary).
                    (E) The Secretary of Education (or the designee of 
                the Secretary).
                    (F) The Attorney General of the United States (or 
                the designee of the Attorney General).
                    (G) The Secretary of the Interior (or the designee 
                of the Secretary).
                    (H) The Director of the Office of Management and 
                Budget (or the designee of the Director).
                    (I) 1 individual appointed by the President.
            (2) Limited purpose members.--
                    (A) In general.--With respect to an application 
                submitted under this title, the Board shall include the 
                head of each department or agency (or the designee of 
                the head) having responsibility for the administration 
                of a program included in the assistance plan contained 
                in the application.
                    (B) Board of directors of the legal services 
                corporation.--The Board of Directors of the Legal 
                Services Corporation is deemed to be the head of the 
                department or agency having responsibility for the 
                administration of the program of legal assistance to 
                eligible clients and other programs under the Legal 
                Services Corporation Act (42 U.S.C. 2996 et seq.).
    (c) Chairperson.--The member of the Board appointed under 
subsection (b)(1)(I) shall serve as Chairperson of the Board.
    (d) Vacancies.--A vacancy in the position of Chairman shall be 
filled in the manner in which the original appointment was made.
    (e) No Additional Compensation.--The members of the Board may not 
be provided additional pay, allowances, or benefits by reason of their 
service on the Board.
    (f) Powers.--
            (1) Assistance of other federal entities.--A member of the 
        Board shall detail to the Chairperson, on a nonreimbursable 
        basis, such officers and employees of the department or agency 
        headed by the member, and shall make available to the 
        Chairperson such assistance, as the Chairperson may require to 
        carry out the activities of the Chairperson.
            (2) Use of united states mails.--The Chairperson may use 
        the United States mails in the same manner and under the same 
        conditions as other departments and agencies of the United 
        States.
            (3) Acceptance of gifts, bequests, and devises.--The 
        Chairperson may accept, use, and dispose of gifts, bequests, or 
        devises of services or property, both real and personal, for 
        the purpose of aiding or facilitating the work of the 
        Chairperson. Gifts, bequests, or devises of money and proceeds 
        from sales of other property received as gifts, bequests, or 
        devises shall be deposited in the Treasury and shall be 
        available for disbursement upon order of the Chairperson.
    (g) Procedure.--
            (1) Meetings.--The Board shall meet not less than twice 
        annually at the call of the Chairperson, or of at least 3 
        permanent members.
            (2) Notice of decisions.--The Chairperson shall provide the 
        Board with advance notice of any action that the Chairperson 
        intends to take under this title.
            (3) Power of board majority to overrule chairperson.--
        Notwithstanding any other provision of this title, a majority 
        of the members of the Board with respect to a matter may 
        overrule any decision or nullify any action of the Chairperson 
        under this title with respect to the matter.
    (h) Annual Reports.--The Chairperson shall transmit annually to the 
Congress a report containing a detailed statement of the activities of 
the Board during the year covered by the report.

SEC. 402. APPLICATION TO IMPLEMENT ASSISTANCE PLANS.

    (a) In General.--Any entity that is receiving or is eligible to 
receive funds or other assistance under an eligible Federal program and 
desires to reform any number of such programs may submit to the 
Chairperson an application that contains the following:
            (1) Assistance plan.--An assistance plan that sets forth 
        the following:
                    (A) Geographic area.--The geographic area to which 
                the plan applies and the rationale for so defining the 
                area.
                    (B) Recipients.--The particular groups of 
                individuals, by age, service needs, economic 
                circumstances, or other defining factors, who are to 
                receive services and benefits under the plan.
                    (C) Objectives and performance criteria.--Specific 
                objectives and criteria for measuring levels of 
                performance, a description of how such objectives and 
                levels of performance are expected to be achieved, a 
                description of how such criteria are to be used to 
                measure performance, and a system for the comprehensive 
                evaluation of the impact of the plan on participants, 
                the community, and program costs.
                    (D) Covered programs.--The eligible Federal 
                programs through which assistance is to be improved in 
                accordance with the plan, and the specific benefits 
                that are to be provided under the plan pursuant to the 
                program or programs, including criteria for determining 
                eligibility for benefits under the plan, the services 
                available, the amounts and form (such as cash, in-kind 
                contributions, or financial instruments) of non-service 
                benefits.
                    (E) Sources of non-federal funds.--A description of 
                the sources of all non-Federal funds that are to be 
                used to carry out the program or programs referred to 
                in subparagraph (D).
                    (F) Fiscal control and accountability.--Fiscal 
                control and related accountability procedures that are 
                to apply under the plan.
                    (G) Consent of qualified organizations.--Written 
                consent from each qualified organization for which 
                consent is required under section 403(e)(2)(B).
                    (H) Approval of affected state and local public 
                entities.--A written statement, from each State or 
                local public entity to which the Federal funds or 
                assistance would otherwise be provided under the 
                program or programs, that the entity approves of the 
                proposal and will cooperate in the implementation of 
                the proposal by the applicant.
            (2) Assurances.--
                    (A) Provision of plan to affected organs of 
                government in the state.--Assurances that a copy of the 
                plan has been provided to all affected organs of 
                government in the geographic area referred to in 
                paragraph (1)(A).
                    (B) Consultation with public-private partnership 
                committee.--Assurances that a committee established 
                under section 405 has participated in the development 
                of the plan.
            (3) Request for authority to implement plan.--A request 
        that the Chairperson authorize the applicant to implement the 
        plan, and waive the application of any Federal statutory or 
        regulatory requirement to the extent necessary to enable such 
        implementation.
            (4) Other information.--Any other information the 
        Chairperson may require to approve the application.
    (b) Option to Submit Streamlined Application to Implement 
Assistance Plan Reforming 3 or Fewer Programs.--Any entity that is 
receiving or is eligible to receive funds or other assistance under an 
eligible Federal program and desires to reform 3 or fewer such programs 
may submit to the Chairperson an application that contains the 
following:
            (1) Assistance plan.--An assistance plan that sets forth 
        the eligible Federal programs through which assistance is to be 
        improved in accordance with the plan.
            (2) Approval of affected entities.--A written statement, 
        from each non-Federal officer or entity to which the Federal 
        funds or assistance would otherwise be provided (either 
        directly or through intervening levels of grantees or other 
        recipients) under the program or programs, that such other 
        officer or entity approves of the plan and will cooperate in 
        the implementation of the plan by the entity.
            (3) Provisions of law to be waived.--A list of the 
        provisions of law or regulation which prevent the entity from 
        implementing the plan.
            (4) Request for authority to implement plan.--A request 
        that the Chairperson authorize the applicant to implement the 
        plan, and waive the application of any Federal statutory or 
        regulatory requirement to the extent necessary to enable such 
        implementation.

SEC. 403. REVIEW AND APPROVAL OF APPLICATIONS; WAIVERS.

    (a) Review.--Upon receipt of an application submitted in accordance 
with section 402, the Chairperson shall--
            (1) approve or disapprove the application within 90 days 
        after such receipt;
            (2) notify the applicant in writing of such approval or 
        disapproval; and
            (3) if the application is disapproved, include in the 
        notice of disapproval a written justification of the reasons 
        therefor.
    (b) Conditional Approval.--The Chairperson may condition approval 
of such an application on the acceptance by the applicant, and by any 
parties whose consent or approval is required under section 402, of 
specified modifications to the application.
    (c) Approval.--
            (1) Requirements.--The Chairperson may approve such an 
        application, subject to paragraph (2), if the Chairperson 
        determines that--
                    (A) the implementation of the assistance plan 
                contained in the application will improve the 
                effectiveness and efficiency of providing benefits 
                under the covered program or programs included in the 
                plan, by reducing administrative rigidity, duplication, 
                and unnecessary expenditures;
                    (B) the applicant has adequately considered, and 
                the application appropriately addresses, the effects 
                that the administration of each covered program 
                included in the plan will have on the administration of 
                any other such program;
                    (C) the applicant has or is developing data bases, 
                planning, and evaluation processes that are adequate 
                for implementing the plan;
                    (D) implementation of the plan will adequately 
                achieve the purposes of this title and of such covered 
                program or programs; and
                    (E) the plan is adequate to ensure that individuals 
                and families that receive benefits under the covered 
                program or programs included in the plan will continue 
                to receive benefits that meet the needs intended to be 
                met under the program or programs.
            (2) Limitations.--The Chairperson may not approve such an 
        application if--
                    (A) implementation of the assistance plan contained 
                in the application would result in an increase in the 
                total amount of obligations or outlays of discretionary 
                appropriations or direct spending under the covered 
                program or programs included in the plan, over the 
                amounts of such obligations and outlays that would 
                occur under the program or programs without 
                implementation of the plan; or
                    (B) if the plan applies to assistance to a 
                qualified organization under an eligible Federal 
                program, the qualified organization does not consent in 
                writing to the receipt of such assistance in accordance 
                with the plan.
            (3) Implementation period.--In approving such an 
        application, the Chairperson shall specify the period during 
        which the assistance plan contained in the application may be 
        implemented.
    (d) Waivers.--
            (1) In general.--Subject to this subsection, the 
        Chairperson may waive any requirement applicable under Federal 
        law to the administration of, or provision of benefits under, 
        any covered program included in an application approved under 
        this title, if the waiver is reasonably necessary for the 
        implementation of the assistance plan contained in the approved 
        application.
            (2) Funding limitation.--This subsection shall not be 
        construed to authorize the Chairperson to waive the application 
        to any entity of a provision of law or regulation applicable to 
        a program if the waiver would result in net payments by the 
        Federal Government to the entity under the program for a fiscal 
        year in excess of the net payments which would otherwise be so 
        made to the entity.
            (3) Civil rights laws excepted.--This subsection shall not 
        be construed to authorize the Chairperson to waive any 
        requirement established by statute or regulation under--
                    (A) title VI of the Civil Rights Act of 1964 (42 
                U.S.C. 2000d et seq.);
                    (B) section 504 of the Rehabilitation Act of 1973 
                (29 U.S.C. 701 et seq.);
                    (C) title IX of the Education Amendments of 1972 
                (86 Stat. 373 et seq.);
                    (D) the Age Discrimination Act of 1975 (42 U.S.C. 
                6101 et seq.); or
                    (E) the Americans With Disabilities Act of 1990.

SEC. 404. IMPLEMENTATION OF ASSISTANCE PLANS; EVALUATIONS.

    (a) In General.--Notwithstanding any other provision of law, 
benefits under any covered program included in an application approved 
under this title shall be paid and administered in the manner specified 
in the approved application.
    (b) Evaluations.--
            (1) In general.--Any entity whose application is approved 
        under this title shall, in accordance with regulations issued 
        by the Chairperson--
                    (A) submit such reports on, and cooperate in such 
                audits of, the implementation of the assistance plan 
                contained in the application; and
                    (B) periodically evaluate the effects that 
                implementation of the plan has had on--
                            (i) individuals who receive benefits under 
                        a covered program included in the plan;
                            (ii) communities where such individuals 
                        live; and
                            (iii) costs of administering the covered 
                        program or programs included in the plan.
            (2) Annual reports.--Not later than 90 days after the end 
        of the 1-year period beginning on the date the application of 
        an entity is approved under this title, and annually 
        thereafter, the entity shall submit to the Chairperson a report 
        on the principal activities and achievements under the 
        assistance plan contained in the application, during the period 
        covered by the report, and, if the application was submitted 
        under section 402(a), the report shall compare those 
        achievements to the objectives and performance criteria 
        included in the plan pursuant to section 402(a)(1)(C).
    (c) Final Report.--Not later than 45 days after the end of the 
period for which the Chairperson has initially authorized an entity to 
implement an assistance plan, or at any time that the entity determines 
that the plan has demonstrated its worth and proven to be a superior 
way to provide benefits under the covered program or programs included 
in the plan, the entity shall submit to the Chairperson a final report 
on such implementation, including a full evaluation of the successes 
and shortcomings of the plan and the effects of such implementation on 
individuals who receive benefits under such program or programs.
    (d) Extension of Plans.--The Chairperson may extend, for such 
period as may be appropriate, the period for which an entity may 
implement an approved assistance plan, based on the report of the 
entity under subsection (c).
    (e) Suspension and Termination.--
            (1) In general.--The Chairperson may require an entity to 
        suspend or terminate implementation of part or all of an 
        assistance plan under--
                    (A) any approved application under this title if 
                the Chairperson finds that the applicant has failed to 
                carry out a covered program in accordance with any 
                applicable provision of law or regulation; or
                    (B) an approved application that was submitted 
                under section 402(a), if, after consultation with the 
                head of each Federal agency responsible for 
                administering a covered program included in the 
                approved application, the Chairperson determines that 
                the objectives and performance criteria included in the 
                plan pursuant to section 402(a)(1)(C) have not been 
                met.
            (2) Timing.--In requiring the implementation of an 
        assistance plan to be terminated under paragraph (1), the 
        Chairperson shall allow a reasonable period of time for 
        appropriate Federal, State, and local agencies, and qualified 
        organizations to resume administration of the covered program 
        or programs included in the application that contains the plan.

SEC. 405. PUBLIC-PRIVATE PARTNERSHIP COMMITTEES.

    (a) Establishment.--An entity desiring to submit an application 
under section 402(a) shall establish a Public-Private Partnership 
Committee in accordance with this section.
    (b) Functions.--A Public-Private Partnership Committee shall advise 
an entity in the development and implementation of an assistance plan, 
including with respect to--
            (1) conducting public hearings;
            (2) representing the interest of low-income individuals and 
        families; and
            (3) reviewing and commenting on all community policies, 
        programs, and actions under the plan which affect low-income 
        individuals and families, with the purpose of assuring maximum 
        coordination and responsiveness of the plan in providing 
        benefits under the plan to those individuals and families.
    (c) Membership.--The membership of a Public-Private Partnership 
Committee shall--
            (1) consist of--
                    (A) low-income individuals, who shall--
                            (i) comprise at least \1/3\ of the 
                        membership; and
                            (ii) include minority individuals who are 
                        participants or who qualify to participate in 
                        eligible Federal programs;
                    (B) representatives of low-income individuals and 
                families;
                    (C) persons with leadership experience in the 
                private and voluntary sectors;
                    (D) local elected officials; and
                    (E) the general public; and
            (2) include individuals and representatives of community 
        and business organizations who will help to enhance the 
        leadership role of the entity in developing an assistance plan.

SEC. 406. DEFINITIONS.

    As used in this title:
            (1) Assistance plan.--The term ``assistance plan'' means a 
        plan for improving the provision of assistance under 1 or more 
        eligible Federal programs.
            (2) Board.--The term ``Board'' means the Interagency Waiver 
        Request Board established by section 401.
            (3) Chairperson.--The term ``Chairperson'' means the 
        Chairperson of the Board.
            (4) Covered program.--The term ``covered program'' means, 
        with respect to an assistance plan, the eligible Federal 
        programs included in the plan.
            (5) Eligible federal program.--The term ``eligible Federal 
        program'' means any Federal program which, directly or 
        indirectly, provides cash assistance to individuals, or under 
        which assistance is available for--
                    (A) education;
                    (B) employment training;
                    (C) health;
                    (D) housing;
                    (E) nutrition; or
                    (F) other social services.
            (6) Qualified organization.--The term ``qualified 
        organization'' means any private, not-for-profit organization 
        that is exempt from taxation under section 501(c)(3) of the 
        Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)).
            (7) State.--
                    (A) In general.--The term ``State'' means the 50 
                States, the District of Columbia, Puerto Rico, American 
                Samoa, Guam, and the Virgin Islands.
                    (B) Indian tribes.--In the case of an eligible 
                Federal program under which assistance is provided with 
                respect to an Indian tribe, the Indian tribal 
                organization is deemed to be a State.

SEC. 407. REPORTS.

    (a) In General.--The Comptroller General of the United States shall 
submit to the Congress 2 reports that--
            (1) describe the extent to which assistance plans have been 
        implemented in accordance with this title;
            (2) evaluate the effectiveness of covered Federal 
        assistance programs included in such plans; and
            (3) include recommendations with respect to whether to 
        continue activities under this title.
    (b) Timing.--The Comptroller General shall submit a report under 
subsection (a) not later than 3 years after the date of the enactment 
of this Act, and another such report not later than 6 years after such 
date of enactment.

SEC. 408. SUNSET.

    Any authority provided under this title shall expire 7 years after 
the date of the enactment of this Act.

                   TITLE V--CHILD SUPPORT ENFORCEMENT

SEC. 501. NATIONAL REPORTING OF INFORMATION RELATING TO CHILD SUPPORT 
              WITH RESPECT TO CERTAIN EMPLOYEES.

    (a) Modified W-4 Reporting.--
            (1) Establishment of reporting system.--The Secretary of 
        the Treasury, in consultation with the Secretary of Labor, 
        shall establish a system for the reporting of information 
        relating to child support obligations of employees, that meets 
        the requirements of this subsection.
            (2) Employee obligations.--
                    (A) Employees subject to child support wage 
                withholding.--The system shall require each employee 
                who owes a qualified child support obligation to 
                indicate on a W-4 form that the employee is otherwise 
                required to file with the employer--
                                    (i) the existence of the 
                                obligation; and
                                    (ii) the amount of the obligation;
                                    (iii) the name and address of the 
                                person to whom the obligation is owed; 
                                and
                                    (iv) whether health care insurance 
                                is available through the employer to 
                                the family of the employee.
                    (B) Employees in designated industries.--The system 
                shall require each employee, who is employed in a State 
                in an industry that the State has designated pursuant 
                to section 466(a)(12)(A) of the Social Security Act as 
                one with respect to which universal employment 
                reporting would improve child support enforcement in a 
                cost-effective manner, to file with the employer a W-4 
                form indicating--
                            (i) whether the employee owes a qualified 
                        child support obligation; and
                            (ii) if so--
                                    (I) the amount of the obligation;
                                    (II) the name and address of the 
                                person to whom the obligation is owed; 
                                and
                                    (III) whether health care insurance 
                                is available through the employer to 
                                the family of the employee.
                    (C) One-time updating of w-4 information of all 
                employees.--The system shall require each employee to 
                file with the employer, during a period that the State 
                in which the employee is employed has prescribed 
                pursuant to section 466(a)(12)(B) of the Social 
                Security Act, a W-4 form indicating--
                            (i) whether the employee owes a qualified 
                        child support obligation; and
                            (ii) if so--
                                    (I) the amount of each such 
                                obligation;
                                    (II) the name and address of each 
                                person to whom the obligation is owed; 
                                and
                                    (III) whether health care insurance 
                                is available through the employer to 
                                the family of the employee.
                    (D) Qualified child support obligation.--As used in 
                this subsection, the term ``qualified child support 
                obligation'' means a legal obligation to provide child 
                support (as defined in section 462(b) of the Social 
                Security Act) which is to be collected, in whole or in 
                part, through wage withholding pursuant to an order 
                issued by a court of any State or an order of an 
                administrative process established under the law of any 
                State.
            (3) Employer obligations.--Each employer who receives 
        information from an employee pursuant to paragraph (2) of this 
        subsection shall--
                    (A) within 10 days after such receipt, forward the 
                information to the agency, designated pursuant to 
                section 466(a)(11)(A) of the Social Security Act, of 
                the State in which the employee is employed by the 
                employer; and
                    (B) withhold from the income of the employee the 
                amount indicated on the W-4 form (or, if the employer 
                has received from the State a notice that the amount is 
                incorrect, such other amount as the State indicates is 
                to be so withheld), in the manner described in section 
                466(b)(6)(A)(i) of such Act.
            (4) New hires in certain states excepted.--This subsection 
        shall not apply with respect to the employment in a State of 
        any employee not described in paragraph (2)(B) if the Secretary 
        of Health and Human Services determines that the State--
                    (A) requires all employers in the State to report 
                to the State all basic employment information on new 
                hires;
                    (B) requires such information to be compared with 
                information in the State registry of child support 
                orders established pursuant to section 466(a)(13) of 
                the Social Security Act and with requests from other 
                States for information on the location of noncustodial 
                parents;
                    (C) maintains updated employment information on all 
                individuals employed in the State in a manner that 
                enables the State to effectively respond to such 
                requests; and
                    (D) requires all employers in the State, on receipt 
                of a notice from the State that an employee owes a 
                qualified child support obligation, to begin 
                withholding from the income of the employee the amount 
                of the obligation, in the manner described in section 
                466(b)(6)(A)(i) of the Social Security Act.
    (b) State Role.--Section 466(a) of the Social Security Act (42 
U.S.C. 666(a)) is amended by inserting after paragraph (10) the 
following:
            ``(11) Procedures under which the State shall designate a 
        public agency to--
                    ``(A) maintain the information provided by 
                employers pursuant to section 501(a)(3) of the 
                Responsibility and Empowerment Support Program 
                Providing Employment, Child Care, and Training Act in 
                accordance with regulations prescribed by the Secretary 
                which allow other States easy access to the information 
                through the Interstate Locate Network established under 
                section 453(g) of this Act; and
                    ``(B) determine whether or not the information 
                described in subparagraph (A) of this paragraph 
                provided by an employer with respect to an employee is 
                accurate by comparing the information with the 
                information on file in the State registry of child 
                support orders established pursuant to section 
                466(a)(13) of this Act, and--
                            ``(i) if the information is confirmed by 
                        the information on file in the registry, notify 
                        any individual who resides in the State and to 
                        whom the employee has a legal obligation to 
                        provide child support (or such individual's 
                        designee) of such information;
                            ``(ii) if the information is not so 
                        confirmed due to a discrepancy between the 
                        information and a copy of a child support order 
                        in the registry, notify the employer of the 
                        discrepancy and the correct information using 
                        the order developed under section 452(a)(12) of 
                        this Act; or
                            ``(iii) if the information is not so 
                        confirmed because the registry does not contain 
                        a copy of an order that imposes a child support 
                        obligation on the employee, search the child 
                        support order registries established pursuant 
                        to section 466(a)(13) of this Act of the States 
                        in which the obligation is most likely to have 
                        been imposed.
            ``(12) Procedures under which the State shall--
                    ``(A) designate at least 1 industry, for purposes 
                of section 501(a)(2)(B) of the Responsibility and 
                Empowerment Support Program Providing Employment, Child 
                Care, and Training Act, as an industry with respect to 
                which universal employment reporting would improve 
                child support enforcement in a cost-effective manner;
                    ``(B) prescribe the period during which individuals 
                employed in the State are to be required to file with 
                their employers updated W-4 forms as required by 
                section 501(a)(2)(C) of such Act; and
                    ``(C) impose a fine--
                            ``(i) against any individual employed in 
                        the State who is required by section 501(a)(2) 
                        of such Act to file a W-4 form with any 
                        employer of the individual and fails to do so; 
                        and
                            ``(ii) in an amount equal to the average 
                        cost of noncompliance (as determined by the 
                        State) or $25, whichever is the lesser, on any 
                        employer who fails to comply with section 
                        501(a)(3) of such Act for any month.''.

SEC. 502. STATE INFORMATION SYSTEMS.

    (a) State Registries of Child Support Orders.--Section 466(a) of 
the Social Security Act (42 U.S.C. 666(a)), as amended by section 
501(b) of this Act, is amended by inserting after paragraph (12) the 
following:
            ``(13) Procedures requiring the State agency designated 
        pursuant to paragraph (16) to maintain a child support order 
        registry, which must include--
                    ``(A) a copy of each child support order being 
                enforced under the State plan; and
                    ``(B) at the request of an individual who has or is 
                owed a legal obligation to provide child support 
                (within the meaning of section 462(b)), a copy of the 
                order that imposes the obligation.''.
    (b) Accessibility of State Information Related to Child Support.--
            (1) To other states.--Section 466(a) of the Social Security 
        Act (42 U.S.C. 666(a)), as amended by section 501(b)(1) of this 
        Act and subsection (a) of this section, is amended by inserting 
        after paragraph (13) the following:
            ``(14)(A) Procedures requiring all records of the State to 
        which the agency administering the plan has access and 
        determines may be useful in locating noncustodial parents or 
        collecting child support to be made accessible to any agency of 
        any State for such purpose, through the Interstate Locate 
        Network established under section 453(g), in accordance with 
        safeguards established to prevent release of information if the 
        release might jeopardize the safety of any individual.
            ``(B) The State may impose reasonable fees for access to 
        State records provided pursuant to subparagraph (A).''.
            (2) To private parties.--Section 466(a) of such Act (42 
        U.S.C. 666(a)), as amended by section 501(b)(1) of this Act, 
        subsection (a) of this section, and paragraph (1) of this 
        subsection, is amended by inserting after paragraph (14) the 
        following:
            ``(15) Procedures under which--
                    ``(A) noncustodial parents (and their designees) 
                must be given access to State parent locator services, 
                to aid in the establishment or enforcement of 
                visitation rights, in accordance with safeguards 
                established to prevent release of information if the 
                release might jeopardize the safety of any individual; 
                and
                    ``(B) custodial parents (and their designees) must 
                be given access to State parent locator services to aid 
                in the establishment and enforcement of child support 
                obligations against noncustodial parents.''.

SEC. 503. NATIONAL INFORMATION SYSTEMS.

    (a) Expansion of Parent Locator Service.--Section 453 of the Social 
Security Act (42 U.S.C. 653) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``transmit'';
                    (B) by striking ``enforcing support obligations 
                against such parent'' and inserting ``establishing 
                parentage, establishing, modifying, and enforcing child 
                support obligations, and (2) to any noncustodial parent 
                (or the designee of the noncustodial parent) 
                information as to the whereabouts of the custodial 
                parent when such information is to be used to locate 
                such parent for the purpose of enforcing child 
                visitation rights and obligations'';
            (2) in subsection (b), by inserting after the 2nd sentence 
        the following: ``Information shall not be disclosed to a 
        custodial parent or a noncustodial parent if the disclosure 
        would jeopardize the safety of the child or either of such 
        parents.'';
            (3) in subsection (d), by inserting ``and such reasonable 
        fees'' after ``such documents''; and
            (4) by striking ``absent parent'' each place such term 
        appears and inserting ``noncustodial parent''.
    (b) Establishment of Interstate Locate Network.--Section 453 of 
such Act (42 U.S.C. 653) is amended by adding at the end the following:
    ``(g) The Secretary shall establish an Interstate Locate Network 
linking the Parent Locator Service and all State databases relating to 
child support enforcement, which--
            ``(1) any State may use to--
                    ``(A) locate any noncustodial parent who has a 
                legal obligation to provide child support (as defined 
                in section 462(b)), with respect to whom such an 
                obligation is being sought, or against whom visitation 
                rights are being enforced, by accessing the records of 
                any Federal, State, or other source of locate or child 
                support information, directly from one computer system 
                to another; or
                    ``(B) direct a locate request to another State or a 
                Federal agency, or, if the source of locate information 
                is unknown, broadcast such a request to selected States 
                or to all States;
            ``(2) allows on-line and batch processing of locate 
        requests, with on-line access restricted to cases in which the 
        information is needed immediately (such as for court 
        appearances), and batch processing used to `troll' data bases 
        to locate individuals or update information periodically; and
            ``(3) enables courts to access information on the Network 
        through a computer terminal located in the court.''.
    (c) Information Sharing Regulations.--Section 452(a) of such Act 
(42 U.S.C. 652(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of the 2nd sentence 
        of paragraph (10) and inserting ``; and''; and
            (3) by inserting after paragraph (10) the following:
            ``(11) prescribe regulations governing information sharing 
        among States, within States, and between the States and the 
        Parent Locator Service--
                    ``(A) to ensure that a State may broadcast a 
                request for information for the purpose of locating a 
                noncustodial parent or collecting child support, and 
                receive a response to the request in not more than 48 
                hours; and
                    ``(B) to require a State that is attempting to 
                locate a noncustodial parent--
                            ``(i) to compare all outstanding cases with 
                        information in the employment records of the 
                        State;
                            ``(ii) if, after complying with clause (i), 
                        the State is unable to locate the noncustodial 
                        parent, then--
                                    ``(I) if the State has reason to 
                                believe that the noncustodial parent is 
                                in another particular State or States, 
                                to request such State or States for 
                                information on the noncustodial parent; 
                                and
                                    ``(II) if not, to broadcast all 
                                States a request for such 
                                information.''.

SEC. 504. INCOME WITHHOLDING.

    (a) State Role.--Section 466(a) of the Social Security Act (42 
U.S.C. 666(a)), as amended by sections 501(b)(1) and 502 of this Act, 
is amended by inserting after paragraph (15) the following:
            ``(16) Procedures under which the State shall designate a 
        public agency to--
                    ``(A) collect child support pursuant to the State 
                plan; and
                    ``(B) distribute, in accordance with section 457, 
                and with all due deliberate speed, the amounts 
                collected as child support.
            ``(17) Procedures under which the State shall require any 
        court of the State that establishes or modifies a child support 
        order to transmit a copy of the order to the State agency 
        designated pursuant to paragraph (18), unless the order does 
        not provide for income withholding, and the noncustodial parent 
        and the custodial parent object.
            ``(18) Procedures under which the State shall designate a 
        State agency to use the uniform income withholding order 
        developed under section 452(a)(12) to notify the agency 
        administering the State plan, any employer of an individual 
        required to pay child support through income withholding 
        pursuant to an order issued or modified in the State, and the 
        agency designated pursuant to paragraph (16) of this subsection 
        of each State in which such an employer is located, of--
                    ``(A) the identity of the individual;
                    ``(B) the amount to be withheld; and
                    ``(C) the State agency to which the withheld amount 
                is to be paid.''.
    (b) Uniform Withholding Order.--Section 452(a) of such Act (42 
U.S.C. 652(a)), as amended by section 503(c) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (10);
            (2) by striking the period at the end of paragraph (11) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (11) the following:
            ``(12) develop a uniform order to be used in all cases in 
        which income is to be withheld for the payment of child 
        support, which shall contain the name of the individual whose 
        income is to be withheld, the number of children covered by the 
        order, and the individual or State to whom the withheld income 
        is to be paid, and be generic to allow for the service of the 
        order on all sources of income.''.
    (c) States Required to Have Laws Requiring Employers to Withhold 
Child Support Pursuant to Uniform Income Withholding Orders.--Section 
466(b) of such Act (42 U.S.C. 666(b)(1)) is amended--
            (1) in paragraph (1), by inserting ``and in the case of 
        each individual employed in the State,'' before ``so much'';
            (2) in paragraph (6)(C), by inserting ``of this paragraph 
        and paragraph (9)(B) of this subsection'' after ``(A)''; and
            (3) in paragraph (9)--
                    (A) by inserting ``(A)'' after ``(9)''; and
                    (B) by adding at the end the following:
            ``(B)(i) Any individual or entity engaged in commerce, as a 
        condition of doing business in the State, on receipt of an 
        income withholding order developed under section 452(a)(12) 
        with respect to an employee of the individual or entity, that 
        is regular on its face and has been issued by a court or State 
        agency of any State, shall--
                    ``(I) immediately provide a copy of the order to 
                the employee subject to the order; and
                    ``(II) within 10 days after receipt of the order, 
                withhold income from the employee in the manner 
                described in paragraph (6)(A)(i) of this subsection, 
                notwithstanding paragraph (4) of this subsection.
            ``(ii) Such an order may be served on the individual or 
        entity directly or by first-class mail.
            ``(iii) Any individual or entity who complies with such an 
        order may not be held liable for wrongful withholding of income 
        from the employee subject to the order.
            ``(iv) The State shall impose a civil fine in an amount 
        equal to the average cost of noncompliance (as determined by 
        the State) or $25, whichever is the lesser, on any such 
        individual or entity who receives such an order with respect to 
        an employee of the individual or entity, and who, due to 
        negligence, fails to comply with the order within 10 days after 
        receipt.
            ``(v) Any individual or entity who imposes a fee for the 
        administration of child support income withholding and related 
        reporting of information shall not collect more than the 
        average cost of such administration, as determined by the 
        State.''.

SEC. 505. UNIFORM TERMS IN ORDERS.

    (a) In General.--Section 452(a) of the Social Security Act (42 
U.S.C. 652(a)), as amended by sections 503(c) and 504(b) of this Act, 
is amended--
            (1) in paragraph (11), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (12), by striking the period at the end of 
        the 2nd sentence and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(13) develop, in conjunction with State executive and 
        judicial organizations, a uniform abstract of a child support 
        order, for use by all State courts to record, with respect to 
        each child support order in the child support order registry 
        established under section 466(a)(12)--
                    ``(A) the date support payments are to begin under 
                the order;
                    ``(B) the circumstances upon which support payments 
                are to end under the order;
                    ``(C) the amount of child support payable pursuant 
                to the order expressed as a sum certain to be paid on a 
                monthly basis, arrearages expressed as a sum certain as 
                of a certain date, and any payback schedule for the 
                arrearages;
                    ``(D) whether the order awards support in a lump 
                sum (nonallocated) or per child;
                    ``(E) if the award is in a lump sum, the event 
                causing a change in the support award and the amount of 
                any change;
                    ``(F) other expenses covered by the order;
                    ``(G) the names of the parents subject to the 
                order;
                    ``(H) the social security account numbers of the 
                parents;
                    ``(I) the name, date of birth, and social security 
                account number (if any) of each child covered by the 
                order;
                    ``(K) the identification (FIPS code, name, and 
                address) of the court that issued the order;
                    ``(L) any information on health care support 
                required by the order; and
                    ``(M) the party to contact if additional 
                information is obtained.''.

SEC. 506. WORK REQUIREMENT FOR NONCUSTODIAL PARENTS WITH CHILD SUPPORT 
              ARREARAGES.

    (a) In General.--Section 466(a) of the Social Security Act (42 
U.S.C. 666(a)), as amended by sections 501(b)(1), 502, and 504(a) of 
this Act, is amended by inserting after paragraph (18) the following:
            ``(19) Procedures requiring that--
                    ``(A) upon a determination by the State agency 
                referred to in section 402(a)(3) that the noncustodial 
                parent of any child who is applying for or receiving 
                aid under the State plan approved under part A owes 
                child support (as defined in section 462(b)) with 
                respect to the child, is in arrears in the payment of 
                such support in an amount that is not less than twice 
                the amount of the monthly child support obligation, is 
                not incapacitated, and is not subject to a court-
                approved plan for payment of such arrearage, the State 
                agency referred to in section 402(a)(3) send to the 
                noncustodial parent a letter notifying the noncustodial 
                parent that the noncustodial parent--
                            ``(i) is required to pay child support with 
                        respect to the child; and
                            ``(ii) is subject to fines and other 
                        penalties for failure to pay the full amount of 
                        such support in a timely manner; and
                    ``(B) if, by the end of the 30-day period that 
                begins with the date the letter is sent pursuant to 
                subparagraph (A), the amount of the arrearage has not 
                decreased by at least a percentage amount specified by 
                the State agency, the State seek a court order 
                requiring the noncustodial parent--
                            ``(i) to participate in a job search 
                        program established by the State, for not less 
                        than 2 weeks and not more than 4 weeks; and
                            ``(ii) if, by the end of the 30-day period 
                        beginning on the date the order is entered, the 
                        amount of the arrearage has not decreased by at 
                        least a percentage amount specified by the 
                        State agency, to participate in a work program 
                        established by the State, for not less than 35 
                        hours per week (or, if the program also 
                        requires job search, for not less than 30 hours 
                        per week).''.

               TITLE VI--WELFARE RESTRICTIONS FOR ALIENS

SEC. 601. INELIGIBILITY OF ALIENS FOR PUBLIC WELFARE ASSISTANCE.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsections (b) and (c), no alien shall be 
eligible for any program referred to in subsection (d).
    (b) Exceptions.--
            (1) Refugee exception.--Subsection (a) shall not apply to 
        an alien admitted to the United States as a refugee under 
        section 207 of the Immigration and Nationality Act until 6 
        years after the date of such alien's arrival into the United 
        States.
            (2) Aged exception.--Subsection (a) shall not apply to an 
        alien who--
                    (A) has been lawfully admitted to the United States 
                for permanent residence;
                    (B) is over 75 years of age; and
                    (C) has resided in the United States for at least 5 
                years.
            (3) Current resident exception.--Subsection (a) shall not 
        apply to the eligibility of an alien for a program referred to 
        in subsection (d) until 1 year after the date of the enactment 
        of this Act if, on such date of enactment, the alien is 
        residing in the United States and is eligible for the program.
    (c) Programs For Which Aliens May Be Eligible.--The limitation 
under subsection (a) shall not apply to the following programs: Medical 
assistance with respect to emergency services (as defined for purposes 
of section 1916(a)(2)(D) of the Social Security Act).
    (d) Programs For Which Aliens Are Ineligible.--The programs 
referred to in this subsection are the following:
            (1) The program of medical assistance under title XIX of 
        the Social Security Act, except emergency services as provided 
        in subsection (c).
            (2) The Maternal and Child Health Services Block Grant 
        Program under title V of the Social Security Act.
            (3) The program established in section 330 of the Public 
        Health Service Act (relating to community health centers).
            (4) The program established in section 1001 of the Public 
        Health Service Act (relating to family planning methods and 
        services).
            (5) The program established in section 329 of the Public 
        Health Service Act (relating to migrant health centers).
            (6) The program of aid and services to needy families with 
        children under part A of title IV of the Social Security Act.
            (7) The child welfare services program under part B of 
        title IV of the Social Security Act.
            (8) The supplemental security income program under title 
        XVI of the Social Security Act.
            (9) The program of foster care and adoption assistance 
        under part E of title IV of the Social Security Act.
            (10) The food stamp program, as defined in section 3(h) of 
        the Food Stamp Act of 1977 (7 U.S.C. 2012(h)).
            (11) The school lunch program carried out under the 
        National School Lunch Act (42 U.S.C. 1751 et seq.).
            (12) The special supplemental food program for women, 
        infants, and children carried out under section 17 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786).
            (13) The nutrition programs carried out under part C of 
        title III of the Older Americans Act of 1965 (42 U.S.C. 3030e 
        et seq.).
            (14) The school breakfast program carried out under section 
        4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
            (15) The child and adult care food program carried out 
        under section 17 of the National School Lunch Act (42 U.S.C. 
        1766).
            (16) The Emergency Food Assistance Act of 1983 (7 U.S.C. 
        612c note).
            (17) The summer food service program for children carried 
        out under section 13 of the National School Lunch Act (42 
        U.S.C. 1761).
            (18) The commodity supplemental food program authorized by 
        section 4(a) of the Agriculture and Consumer Protection Act of 
        1973 (7 U.S.C. 612c note).
            (19) The special milk program carried out under section 3 
        of the Child Nutrition Act of 1966 (42 U.S.C. 1772).
            (20) The program of rental assistance on behalf of low-
        income families provided under section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f).
            (21) The program of assistance to public housing under 
        title I of the United States Housing Act of 1937 (42 U.S.C. 
        1437 et seq.).
            (22) The loan program under section 502 of the Housing Act 
        of 1949 (42 U.S.C. 1472).
            (23) The program of interest reduction payments pursuant to 
        contracts entered into by the Secretary of Housing and Urban 
        Development under section 236 of the National Housing Act (12 
        U.S.C. 1715z-1).
            (24) The program of loans for rental and cooperative 
        housing under section 515 of the Housing Act of 1949 (42 U.S.C. 
        1485).
            (25) The program of rental assistance payments pursuant to 
        contracts entered into under section 521(a)(2)(A) of the 
        Housing Act of 1949 (42 U.S.C. 1490a(a)(2)(A)).
            (26) The program of assistance payments on behalf of 
        homeowners under section 235 of the National Housing Act (12 
        U.S.C. 1715z).
            (27) The program of rent supplement payments on behalf of 
        qualified tenants pursuant to contracts entered into under 
        section 101 of the Housing and Urban Development Act of 1965 
        (12 U.S.C. 1701s).
            (28) The loan and grant programs under section 504 of the 
        Housing Act of 1949 (42 U.S.C. 1474) for repairs and 
        improvements to rural dwellings.
            (29) The loan and assistance programs under sections 514 
        and 516 of the Housing Act of 1949 (42 U.S.C. 1484, 1486) for 
        housing for farm labor.
            (30) The program of grants for preservation and 
        rehabilitation of housing under section 533 of the Housing Act 
        of 1949 (42 U.S.C. 1490m).
            (31) The program of grants and loans for mutual and self-
        help housing and technical assistance under section 523 of the 
        Housing Act of 1949 (42 U.S.C. 1490c).
            (32) The program of site loans under section 524 of the 
        Housing Act of 1949 (42 U.S.C. 1490d).
            (33) The program under part B of title IV of the Higher 
        Education Act of 1965.
            (34) The program under subpart 1 of part A of title IV of 
        the Higher Education Act of 1965.
            (35) The program under part C of title IV of the Higher 
        Education Act of 1965.
            (36) The program under subpart 3 of part A of title IV of 
        the Higher Education Act of 1965.
            (37) The program under part E of title IV of the Higher 
        Education Act of 1965.
            (38) The program under subpart 4 of part A of title IV of 
        the Higher Education Act of 1965.
            (39) The program under title IX of the Higher Education Act 
        of 1965.
            (40) The program under subpart 5 of part A of title IV of 
        the Higher Education Act of 1965.
            (41) The programs established in sections 338A and 338B of 
        the Public Health Service Act and the programs established in 
        part A of title VII of such Act (relating to loans and 
        scholarships for education in the health professions).
            (42) The program established in section 317(j)(1) of the 
        Public Health Service Act (relating to grants for immunizations 
        against vaccine-preventable diseases).
            (43) The program established in section 317A of the Public 
        Health Service Act (relating to grants for screening, 
        referrals, and education regarding lead poisoning in infants 
        and children).
            (44) The program established in part A of title XIX of the 
        Public Health Service Act (relating to block grants for 
        preventive health and health services).
            (45) The programs established in subparts I and II of part 
        B of title XIX of the Public Health Service Act.
            (46)(A) The program of training for disadvantaged adults 
        and youth under part A of title II of the Job Training 
        Partnership Act (29 U.S.C. 1601 et seq.), as in effect before 
        July 1, 1993.
            (B)(i) The program of training for disadvantaged adults 
        under part A of title II of the Job Training Partnership Act 
        (29 U.S.C. 1601 et seq.), as in effect on and after July 1, 
        1993.
            (ii) The program of training for disadvantaged youth under 
        part C of title II of the Job Training Partnership Act (29 
        U.S.C. 1641 et seq.), as in effect on and after July 1, 1993.
            (47) The Job Corps program under part B of title IV of the 
        Job Training Partnership Act (29 U.S.C. 1692 et seq.).
            (48) The summer youth employment and training programs 
        under part B of title II of the Job Training Partnership Act 
        (29 U.S.C. 1630 et seq.).
            (49) The programs carried out under the Older American 
        Community Service Employment Act (42 U.S.C. 3001 et seq.).
            (50) The programs under title III of the Older Americans 
        Act of 1965.
            (51) The programs carried out under part B of title II of 
        the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5011-
        5012).
            (52) The programs carried out under part C of title II of 
        the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5013).
            (53) The program under the Low-Income Energy Assistance Act 
        of 1981 (42 U.S.C. 8621 et seq.).
            (54) The weatherization assistance program under title IV 
        of the Energy Conservation and Production Act (42 U.S.C. 6851).
            (55) The program of block grants to States for social 
        services under title XX of the Social Security Act.
            (56) The programs carried out under the Community Services 
        Block Grant Act (42 U.S.C. 9901 et seq.).
            (57) The program of legal assistance to eligible clients 
        and other programs under the Legal Services Corporation Act (42 
        U.S.C. 2996 et seq.).
            (58) The program for emergency food and shelter grants 
        under title III of the Stewart B. McKinney Homeless Assistance 
        Act (42 U.S.C. 11331 et seq.).
            (59) The programs carried out under the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.).
            (60) A State program for providing child care under section 
        402(i) of the Social Security Act.
            (61) The program of State legalization impact-assistance 
        grants (SLIAG) under section 204 of the Immigration Reform and 
        Control Act of 1986.
    (e) Notification of Aliens.--Any Federal agency that administers a 
program referred to in subsection (d) shall, directly or through the 
States, notify each alien receiving benefits under the program whose 
eligibility for the program is or will be terminated by reason of this 
section.

SEC. 602. STATE AFDC AGENCIES REQUIRED TO PROVIDE INFORMATION ON 
              ILLEGAL ALIENS TO THE IMMIGRATION AND NATURALIZATION 
              SERVICE.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 201(a)(1), 302, 303, 304, 305, 307, and 309(a) of 
this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (51);
            (2) by striking the period at the end of paragraph (52) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (52) the following:
            ``(53) require the State agency to provide to the 
        Immigration and Naturalization Service the name, address, and 
        other identifying information that the agency has with respect 
        to any individual unlawfully in the United States any of whose 
        children is a citizen of the United States.''.

                  TITLE VII--CONTROLLING WELFARE COSTS

SEC. 701. CAPS ON CERTAIN MEANS-TESTED PROGRAMS.

    (a) Content of Budget Resolutions.--Section 301(a) of the 
Congressional Budget Act of 1974 is amended by adding at the end the 
following new sentence: ``The concurrent resolution shall also include 
an aggregate outlay figure for all covered means-tested programs and an 
outlay limit for each such means-tested program that restricts the 
aggregate rate of growth, adjusted for inflation, for all such means-
tested programs to 2 percent per fiscal year. Inflation shall be 
measured by the average of the estimated consumer price index for all 
urban consumers for a fiscal year divided by the average index for the 
prior fiscal year.''.
    (b) Committee Allocations.--(1) Section 602(a)(1)(A) of the 
Congressional Budget Act of 1974 is amended by striking ``and'' at the 
end of clause (ii), by striking the semicolon and inserting ``, and'' 
at the end of clause (iii), and by adding after clause (iii) the 
following new clause:
                            ``(iv) total outlays for all covered means-
                        tested programs (as defined by section 253A of 
                        the Balanced Budget and Emergency Deficit 
                        Control Act of 1985);''.
    (2) Section 602(a)(2) of the Congressional Budget Act of 1974 is 
amended by striking ``and'' at the end of subparagraph (B), by 
inserting ``and'' at the end of subparagraph (C), and by adding after 
subparagraph (C) the following new subparagraph:
                    ``(D) total outlays for all covered means-tested 
                programs (as defined by section 253A of the Balanced 
                Budget and Emergency Deficit Control Act of 1985);''.
    (c) President's Budget.--Section 1105(a) of title 31, United States 
Code, is amended by adding at the end the following new paragraph:
            ``(29) an aggregate outlay figure for all covered means-
        tested programs (as defined by section 253A of the Balanced 
        Budget and Emergency Deficit Control Act of 1985) and an outlay 
        limit for each such means-tested program that restricts the 
        aggregate rate of growth, adjusted for inflation, for all such 
        means-tested programs to 2 percent per fiscal year.''.

SEC. 702. SEQUESTRATION OF FEDERAL SPENDING TO ENFORCE SPENDING CAPS ON 
              MEANS-TESTED PROGRAMS.

    (a) Sequestration To Enforce Spending Caps on Means-Tested 
Programs.--Part C of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by adding after section 253 the following new 
section:

``SEC. 253A. SEQUESTRATION TO ENFORCE SPENDING CAPS ON MEANS-TESTED 
              PROGRAMS.

    ``(a) Sequestration.--
            ``(1) In general.--Within 15 days after Congress adjourns 
        to end a session, and on the same day as a sequestration (if 
        any) under sections 251, 252, and 253, but after any 
        sequestration required by those sections, following the 
        procedures set forth under section 252 there shall be a 
        sequestration of all accounts for covered means-tested programs 
        to achieve reductions in the fiscal year 1994, 1995, 1996, 
        1997, or 1998 outlays, as the case may be, sufficient to 
        eliminate a budget-year breach (if any) of the aggregate 
        spending cap on covered means-tested programs for that fiscal 
        year as calculated under paragraph (2).
            ``(2) Computation of aggregate spending cap on covered 
        means-tested programs.--Within 5 days after Congress adjourns 
        to end a session, OMB shall calculate an aggregate outlay 
        figure for all covered means-tested programs and an outlay 
        limit for each such means-tested program that restricts the 
        aggregate rate of growth, adjusted for inflation, for all such 
        means-tested programs to 2 percent per fiscal year. Inflation 
        shall be measured by the average of the estimated consumer 
        price index for all urban consumers for a fiscal year divided 
        by the average index for the prior fiscal year.''.
    ``(b) Applicability.--Following the procedures set forth under 
section 252, each account for a covered means-tested program shall be 
reduced by a dollar amount calculated by multiplying the level of 
budgetary resources in that account at that time by the uniform 
percentage necessary to carry out subsection (a).
    ``(c) Definition.--As used in this section, the term `covered 
means-tested program' refers to the following:
            ``(1) Payments to States under the program of aid to 
        families with dependent children under part A of title IV of 
        the Social Security Act.
            ``(2) The program of supplemental security income benefits 
        under title XVI of the Social Security Act.
            ``(3) The food stamp program.
            ``(4) The rental assistance program under section 8 of the 
        United States Housing Act of 1937.
            ``(5) Assistance for public housing under the United States 
        Housing Act of 1937.
            ``(6) The earned income tax credit.
    ``(d) OMB Report.--On the date specified in subsection (a), OMB 
shall issue a special sequestration report that sets forth the 
sequestration percentage necessary to achieve the required reduction in 
accounts under this section.
    ``(e) Presidential Order.--On the date specified in subsection (a), 
the President shall issue an order fully implementing without change 
all sequestrations required by the OMB calculations set forth in that 
report. This order shall be effective on issuance.''.
    (b) Scorekeeping.--None of the changes in receipts and direct 
spending resulting from this Act shall be entered on the paygo 
scorecard under section 252 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 and none of the savings in fiscal year 1994 
discretionary outlays made by this Act shall be counted for the 
purposes of section 251 of that Act.

   TITLE VIII--CONSOLIDATED BLOCK GRANT TO STATES FOR FOOD ASSISTANCE

SEC. 801. FOOD ASSISTANCE BLOCK GRANT PROGRAM.

    (a) Authority To Make Block Grants.--The Secretary of Agriculture 
shall make grants in accordance with this section to States to provide 
food assistance to individuals who are economically disadvantaged and 
to individuals who are members of economically disadvantaged families.
    (b) Distribution of Funds.--
            (1) Allotments to states.--Subject to paragraph (2), the 
        funds appropriated to carry out this section for any fiscal 
        year shall be allotted among the States as follows:
                    (A) Of the aggregate amount to be distributed under 
                this section, .21 percent shall be reserved for grants 
                to Guam, the Virgin Islands of the United States, 
                American Samoa, the Commonwealth of the Northern 
                Mariana Islands, the Republic of the Marshall Islands, 
                the Federated States of Micronesia, Palau.
                    (B) Of the aggregate amount to be distributed under 
                this section, .24 percent shall be reserved for grants 
                to tribal organizations that have governmental 
                jurisdiction over geographically defined areas and 
                shall be allocated equitably by the Secretary among 
                such organizations.
                    (C) The remainder of such aggregate amount shall be 
                allocated among the remaining States. The amount 
                allocated to each of the remaining States shall bear 
                the same proportion to such remainder as the number of 
                resident individuals in such State who are economically 
                disadvantaged separately or as members of economically 
                disadvantaged families bears to the aggregate number of 
                resident individuals in all such remaining States who 
                are economically disadvantaged separately or as members 
                of economically disadvantaged families.
            (2) Limitation.--After September 30, 1995, the aggregate 
        amount allotted under paragraph (1) for any fiscal year shall 
        not exceed the aggregate amount allotted under paragraph (1) 
        for the then preceding fiscal year adjusted by the Secretary to 
        reflect--
                    (A) the percentage change in population during the 
                1-year period ending June 30 of such preceding fiscal 
                year, determined on the basis of the most current 
                information available in the Current Population 
                Reports, P25 series (as adjusted to include overseas 
                members of the armed forces of the United States), 
                published by the Bureau of the Census, and
                    (B) the percentage change in the food at home 
                component of the Consumer Price Index For All Urban 
                Consumers for the 1-year period ending May 31 of such 
                preceding fiscal year,
    (b) Eligibility To Receive Grants.--To be eligible to receive a 
grant in the amount allotted to a State for a fiscal year, such State 
shall submit to the Secretary an application in such form, and 
containing such information and assurances as the Secretary may require 
by rule, including--
            (1) an assurance that such grant will be expended by the 
        State to provide food assistance to resident individuals in 
        such State who are economically disadvantaged separately or as 
        members of economically disadvantaged families,
            (2) not more than 5 percent of such grant will be expended 
        by the State for administrative costs incurred to provide 
        assistance under this section,
            (3) not less than 12 percent of each grant received from 
        funds allotted for fiscal years 1995 through 1999 will be 
        expended to provide food assistance and nutrition education to 
        pregnant women, postpartum women, breastfeeding women, infants, 
        and young children, and
            (4) not less than 20 percent of each grant received from 
        funds allotted for fiscal years 1995 through 1999 will be 
        expended to provide--
                    (A) nonprofit school breakfast programs for 
                students from economically disadvantaged families,
                    (B) milk in nonprofit schools and in nonprofit 
                nursery schools, child care centers, settlement houses, 
                summer camps, and similar institutions devoted to the 
                care and training of children, to children from 
                economically disadvantaged families,
                    (C) nonprofit school lunch programs for students 
                from economically disadvantaged families,
                    (D) expanded food service programs in institutions 
                providing child care for children from economically 
                disadvantaged families, and
                    (E) summer food service programs carried out by 
                nonprofit food authorities, local governments, 
                nonprofit higher education insititutions participating 
                in the National Youth Sports Program, and residential 
                nonprofit summer camps, to provide meals to children 
                from economically disadvantaged families.
    (c) Authority To Reduce Certain Grants Requirements.--At the 
request of a State for a particular fiscal year, the Secretary may 
reduce a percentage requirement specified in paragraph (3) or (4) of 
subsection (b) if the Secretary determines that the purpose described 
in such paragraph will be adequately carried out by such State without 
expending the full amount of funds required by such paragraph.
    (d) Authorization of Appropriations.--(1) There are authorized to 
be appropriated to carry out this section $35,600,000,000 for fiscal 
year 1995 and such sums as may be necessary for fiscal years 1996, 
1997, 1998, and 1999.
    (2) For the purpose of affording adequate notice of funding 
available under this section, an appropriation to carry out this 
section is authorized to be included in an appropriation Act for the 
fiscal year preceding the fiscal year for which such appropriation is 
available for obligation.

SEC. 802. AVAILABILITY OF FEDERAL COUPON SYSTEM TO STATES.

    (a) Issuance, Purchase, and Use of Coupons.--The Secretary shall 
issue, and make available for purchase by States, coupons for the 
retail purchase of food from retail food stores that are approved in 
accordance with subsection (b). Coupons issued, purchased, and used as 
provided in this section shall be redeemable at face value by the 
Secretary through the facilities of the Treasury of the United States. 
The purchase price of each coupon issued under this subsection shall be 
the face value of such coupon.
    (b) Approval of Retail Food Stores and Wholesale Food Concerns.--
(1) Regulations issued pursuant to this section shall provide for the 
submission of applications for approval by retail food stores and 
wholesale food concerns which desire to be authorized to accept and 
redeem coupons under this section. In determining the qualifications of 
applicants, there shall be considered among such other factors as may 
be appropriate, the following:
            (A) The nature and extent of the food business conducted by 
        the applicant.
            (B) The volume of coupon business which may reasonably be 
        expected to be conducted by the applicant food store or 
        wholesale food concern.
            (C) The business integrity and reputation of the applicant.
Approval of an applicant shall be evidenced by the issuance to such 
applicant of a nontransferable certificate of approval. The Secretary 
is authorized to issue regulations providing for a periodic 
reauthorization of retail food stores and wholesale food concerns.
    (2) A buyer or transferee (other than a bona fide buyer or 
transferee) of a retail food store or wholesale food concern that has 
been disqualified under subsection (d) may not accept or redeem coupons 
until the Secretary receives full payment of any penalty imposed on 
such store or concern.
    (3) Regulations issued pursuant to this section shall require an 
applicant retail food store or wholesale food concern to submit 
information which will permit a determination to be made as to whether 
such applicant qualifies, or continues to qualify, for approval under 
this section or the regulations issued pursuant to this section. 
Regulations issued pursuant to this section shall provide for 
safeguards which limit the use or disclosure of information obtained 
under the authority granted by this subsection to purposes directly 
connected with administration and enforcement of this section or the 
regulations issued pursuant to this section, except that such 
information may be disclosed to and used by States that purchase such 
coupons.
    (4) Any retail food store or wholesale food concern which has 
failed upon application to receive approval to participate in the food 
stamp program may obtain a hearing on such refusal as provided in 
subsection (f).
    (c) Redemption of Coupons.--Regulations issued under this section 
shall provide for the redemption of coupons accepted by retail food 
stores through approved wholesale food concerns or through financial 
institutions which are insured by the Federal Deposit Insurance 
Corporation, or which are insured under the Federal Credit Union Act 
(12 U.S.C. 1751 et seq.) and have retail food stores or wholesale food 
concerns in their field of membership, with the cooperation of the 
Treasury Department, except that retail food stores defined in section 
804(9)(D) shall be authorized to redeem their members' food coupons 
prior to receipt by the members of the food so purchased, and publicly 
operated community mental health centers or private nonprofit 
organizations or institutions which serve meals to narcotics addicts or 
alcoholics in drug addiction or alcoholic treatment and rehabilitation 
programs, public and private nonprofit shelters that prepare and serve 
meals for battered women and children, public or private nonprofit 
group living arrangements that serve meals to disabled or blind 
residents, and public or private nonprofit establishments, or public or 
private nonprofit shelters that feed individuals who do not reside in 
permanent dwellings and individuals who have no fixed mailing addresses 
shall not be authorized to redeem coupons through financial 
institutions which are insured by the Federal Deposit Insurance 
Corporation or the Federal Credit Union Act. No financial institution 
may impose on or collect from a retail food store a fee or other charge 
for the redemption of coupons that are submitted to the financial 
institution in a manner consistent with the requirements, other than 
any requirements relating to cancellation of coupons, for the 
presentation of coupons by financial institutions to the Federal 
Reserve banks.
    (d) Civil Money Penalties and Disqualification of Retail Food 
Stores and Wholesale Food Concerns.--(1) Any approved retail food store 
or wholesale food concern may be disqualified for a specified period of 
time from further participation in the coupon program under this 
section, or subjected to a civil money penalty of up to $10,000 for 
each violation if the Secretary determines that its disqualification 
would cause hardship to individuals who receive coupons, on a finding, 
made as specified in the regulations, that such store or concern has 
violated this section or the regulations issued pursuant to this 
section.
    (2) Disqualification under paragraph (1) shall be--
            (A) for a reasonable period of time, of no less than 6 
        months nor more than 5 years, upon the first occasion of 
        disqualification;
            (B) for a reasonable period of time, of no less than 12 
        months nor more than 10 years, upon the second occasion of 
        disqualification; and
            (C) permanent upon--
                    (i) the third occasion of disqualification,
                    (ii) the first occasion or any subsequent occasion 
                of a disqualification based on the purchase of coupons 
                or trafficking in coupons by a retail food store or 
                wholesale food concern, except that the Secretary shall 
                have the discretion to impose a civil money penalty of 
                up to $20,000 for each violation (except that the 
                amount of civil money penalties imposed for violations 
                occurring during a single investigation may not exceed 
                $40,000) in lieu of disqualification under this 
                subparagraph, for such purchase of coupons or 
                trafficking in coupons that constitutes a violation of 
                this section or the regulations issued pursuant to this 
                section, if the Secretary determines that there is 
                substantial evidence (including evidence that neither 
                the ownership nor management of the store or food 
                concern was aware of, approved, benefited from, or was 
                involved in the conduct or approval of the violation) 
                that such store or food concern had an effective policy 
                and program in effect to prevent violations of this 
                section and such regulations, or
                    (iii) a finding of the sale of firearms, 
                ammunition, explosives, or controlled substance (as 
                defined in section 802 of title 21, United States Code) 
                for coupons, except that the Secretary shall have the 
                discretion to impose a civil money penalty of up to 
                $20,000 for each violation (except that the amount of 
                civil money penalties imposed for violations occurring 
                during a single investigation may not exceed $40,000) 
                in lieu of disqualification under this subparagraph if 
                the Secretary determines that there is substantial 
                evidence (including evidence that neither the ownership 
                nor management of the store or food concern was aware 
                of, approved, benefited from, or was involved in the 
                conduct or approval of the violation) that the store or 
                food concern had an effective policy and program in 
                effect to prevent violations of this section.
    (3) The action of disqualification or the imposition of a civil 
money penalty shall be subject to review as provided in subsection (f).
    (4) As a condition of authorization to accept and redeem coupons 
issued under subsection (a), the Secretary may require a retail food 
store or wholesale food concern which has been disqualified or 
subjected to a civil penalty pursuant to paragraph (1) to furnish a 
bond to cover the value of coupons which such store or concern may in 
the future accept and redeem in violation of this section. The 
Secretary shall, by regulation, prescribe the amount, terms, and 
conditions of such bond. If the Secretary finds that such store or 
concern has accepted and redeemed coupons in violation of this section 
after furnishing such bond, such store or concern shall forfeit to the 
Secretary an amount of such bond which is equal to the value of coupons 
accepted and redeemed by such store or concern in violation of this 
section. Such store or concern may obtain a hearing on such forfeiture 
pursuant to subsection (f).
    (5)(A) In the event any retail food store or wholesale food concern 
that has been disqualified under paragraph (1) is sold or the ownership 
thereof is otherwise transferred to a purchaser or transferee, the 
person or persons who sell or otherwise transfer ownership of the 
retail food store or wholesale food concern shall be subjected to a 
civil money penalty in an amount established by the Secretary through 
regulations to reflect that portion of the disqualification period that 
has not yet expired. If the retail food store or wholesale food concern 
has been disqualified permanently, the civil money penalty shall be 
double the penalty for a ten-year disqualification period, as 
calculated under regulations issued by the Secretary. The 
disqualification period imposed under paragraph (2) shall continue in 
effect as to the person or persons who sell or otherwise transfer 
ownership of the retail food store or wholesale food concern 
notwithstanding the imposition of a civil money penalty under this 
paragraph.
    (B) At any time after a civil money penalty imposed under 
subparagraph (A) has become final under subsection (f)(1), the 
Secretary may request the Attorney General to institute a civil action 
against the person or persons subject to the penalty in a district 
court of the United States for any district in which such person or 
persons are found, reside, or transact business to collect the penalty 
and such court shall have jurisdiction to hear and decide such action. 
In such action, the validity and amount of such penalty shall not be 
subject to review.
    (C) The Secretary may impose a fine against any retail food store 
or wholesale food concern that accepts coupons that are not accompanied 
by the corresponding book cover, other than the denomination of coupons 
used for making change as specified in regulations issued under this 
section. The amount of any such fine shall be established by the 
Secretary and may be assessed and collected in accordance with 
regulations issued under this section separately or in combination with 
any fiscal claim established by the Secretary. The Attorney General of 
the United States may institute judicial action in any court of 
competent jurisdiction against the store or concern to collect the 
fine.
    (6) The Secretary may impose a fine against any person not approved 
by the Secretary to accept and redeem coupons who violates this section 
or a regulation issued under this section, including violations 
concerning the acceptance of coupons. The amount of any such fine shall 
be established by the Secretary and may be assessed and collected in 
accordance with regulations issued under this section separately or in 
combination with any fiscal claim established by the Secretary. The 
Attorney General of the United States may institute judicial action in 
any court of competent jurisdiction against the person to collect the 
fine.
    (e) Collection and Disposition of Claims.--The Secretary shall have 
the power to determine the amount of and settle and adjust any claim 
and to compromise or deny all or part of any such claim or claims 
arising under this section or the regulations issued pursuant to this 
section, including, but not limited to, claims arising from fraudulent 
and nonfraudulent overissuances to recipients, including the power to 
waive claims if the Secretary determines that to do so would serve the 
purposes of this section. Such powers with respect to claims against 
recipients may be delegated by the Secretary to State agencies.
    (f) Administrative and Judicial Review.--(1) Whenever--
            (A) an application of a retail food store or wholesale food 
        concern for approval to accept and redeem coupons issued under 
        subsection (a) is denied pursuant to this section,
            (B) a retail food store or wholesale food concern is 
        disqualified or subjected to a civil money penalty under 
        subsection (d),
            (C) all or part of any claim of a retail food store or 
        wholesale food concern is denied under subsection (e), or
            (D) a claim against a State is stated pursuant to 
        subsection (e),
notice of such administrative action shall be issued to the retail food 
store, wholesale food concern, or State involved. Such notice shall be 
delivered by certified mail or personal service. If such store, 
concern, or State is aggrieved by such action, it may, in accordance 
with regulations promulgated under this section, within 10 days of the 
date of delivery of such notice, file a written request for an 
opportunity to submit information in support of its position to such 
person or persons as the regulations may designate. If such a request 
is not made or if such store, concern, or State fails to submit 
information in support of its position after filing a request, the 
administrative determination shall be final. If such request is made by 
such store, concern, or State such information as may be submitted by 
such store, concern, or State as well as such other information as may 
be available, shall be reviewed by the person or persons designated by 
the Secretary, who shall, subject to the right of judicial review 
hereinafter provided, make a determination which shall be final and 
which shall take effect 30 days after the date of the delivery or 
service of such final notice of determination. If such store, concern, 
or State feels aggrieved by such final determination, it may obtain 
judicial review thereof by filing a complaint against the United States 
in the United States court for the district in which it resides or is 
engaged in business, or, in the case of a retail food store or 
wholesale food concern, in any court of record of the State having 
competent jurisdiction, within 30 days after the date of delivery or 
service of the final notice of determination upon it, requesting the 
court to set aside such determination. The copy of the summons and 
complaint required to be delivered to the official or agency whose 
order is being attacked shall be sent to the Secretary or such person 
or persons as the Secretary may designate to receive service of 
process. The suit in the United States district court or State court 
shall be a trial de novo by the court in which the court shall 
determine the validity of the questioned administrative action in 
issue. If the court determines that such administrative action is 
invalid, it shall enter such judgment or order as it determines is in 
accordance with the law and the evidence. During the pendency of such 
judicial review, or any appeal therefrom, the administrative action 
under review shall be and remain in full force and effect, unless on 
application to the court on not less than ten days' notice, and after 
hearing thereon and a consideration by the court of the applicant's 
likelihood of prevailing on the merits and of irreparable injury, the 
court temporarily stays such administrative action pending disposition 
of such trial or appeal.
    (g) Violations and Enforcement.--(1) Subject to paragraph (2), 
whoever knowingly uses, transfers, acquires, alters, or possesses 
coupons in any manner contrary to this section or the regulations 
issued pursuant to this section shall, if such coupons are of a value 
of $5,000 or more, be guilty of a felony and shall be fined not more 
than $250,000 or imprisoned for not more than 20 years, or both, and 
shall, if such coupons are of a value of $100 or more, but less than 
$5,000, be guilty of a felony and shall, upon the first conviction 
thereof, be fined not more than $10,000 or imprisoned for not more than 
5 years, or both, and, upon the second and any subsequent conviction 
thereof, shall be imprisoned for not less than 6 months nor more than 5 
years and may also be fined not more than $10,000 or, if such coupons 
are of a value of less than $100, shall be guilty of a misdemeanor, 
and, upon the first conviction thereof, shall be fined not more than 
$1,000 or imprisoned for not more than one year, or both, and upon the 
second and any subsequent conviction thereof, shall be imprisoned for 
not more than one year and may also be fined not more than $1,000.
    (2) In the case of any individual convicted of an offense under 
paragraph (1), the court may permit such individual to perform work 
approved by the court for the purpose of providing restitution for 
losses incurred by the United States and the State as a result of the 
offense for which such individual was convicted. If the court permits 
such individual to perform such work and such individual agrees 
thereto, the court shall withhold the imposition of the sentence on the 
condition that such individual perform the assigned work. Upon the 
successful completion of the assigned work the court may suspend such 
sentence.
    (3) Whoever presents, or causes to be presented, coupons for 
payment or redemption of the value of $100 or more, knowing the same to 
have been received, transferred, or used in any manner in violation of 
this section or the regulations issued under to this section, shall be 
guilty of a felony and, upon the first conviction thereof, shall be 
fined not more than $20,000 or imprisoned for not more than 5 years, or 
both, and, upon the second and any subsequent conviction thereof, shall 
be imprisoned for not less than one year nor more than 5 years and may 
also be fined not more than $20,000, or, if such coupons are of a value 
of less than $100, shall be guilty of a misdemeanor and, upon the first 
conviction thereof, shall be fined not more than $1,000 or imprisoned 
for not more than one year, or both, and, upon the second and any 
subsequent conviction thereof, shall be imprisoned for not more than 
one year and may also be fined not more than $1,000.

SEC. 803. AUTHORITY TO SELL FEDERAL SURPLUS COMMODITIES.

    Notwithstanding any other provision of law, the Secretary of 
Agriculture and the Commodity Credit Corporation may sell surplus 
commodities and surplus foodstuffs to the States to provide food 
assistance to individuals who are economically disadvantaged and to 
individuals who are members of economically disadvantaged families.

SEC. 804. DEFINITIONS.

    For purposes of this title--
            (1) the term ``breastfeeding woman'' means women up to 1 
        year postpartum who are breastfeeding their infants,
            (2) the term ``coupon'' means any coupon, stamp, or type of 
        certificate, but does not include currency,
            (3) the term ``economically disadvantaged'' means an 
        individual or a family, as the case may be, whose income does 
        not exceed the most recent lower living standard income level 
        published by the Department of Labor,
            (4) the term ``elderly or disabled individual'' means an 
        individual who--
                    (A) is 60 years of age or older,
                    (B)(i) receives supplemental security income 
                benefits under title XVI of the Social Security Act (42 
                U.S.C. 1381 et seq.), or Federally or State 
                administered supplemental benefits of the type 
                described in section 212(a) of Public Law 93-66 (42 
                U.S.C. 1382 note), or
                    (ii) receives Federally or State administered 
                supplemental assistance of the type described in 
                section 1616(a) of the Social Security Act (42 U.S.C. 
                1382e(a)), interim assistance pending receipt of 
                supplemental security income, disability-related 
                medical assistance under title XIX of the Social 
                Security Act (42 U.S.C. 1396 et seq.), or disability-
                based State general assistance benefits, if the 
                Secretary determines that such benefits are conditioned 
                on meeting disability or blindness criteria at least as 
                stringent as those used under title XVI of the Social 
                Security Act,
                    (C) receives disability or blindness payments under 
                title I, II, X, XIV, or XVI of the Social Security Act 
                (42 U.S.C. 301 et seq.) or receives disability 
                retirement benefits from a governmental agency because 
                of a disability considered permanent under section 
                221(i) of the Social Security Act (42 U.S.C. 421(i)),
                    (D) is a veteran who--
                            (i) has a service-connected or non-service-
                        connected disability which is rated as total 
                        under title 38, United States Code, or
                            (ii) is considered in need of regular aid 
                        and attendance or permanently housebound under 
                        such title,
                    (E) is a surviving spouse of a veteran and--
                            (i) is considered in need of regular aid 
                        and attendance or permanently housebound under 
                        title 38, United States Code, or
                            (ii) is entitled to compensation for a 
                        service-connected death or pension benefits for 
                        a non-service-connected death under title 38, 
                        United States Code, and has a disability 
                        considered permanent under section 221(i) of 
                        the Social Security Act (42 U.S.C. 421(i)),
                    (F) is a child of a veteran and--
                            (i) is considered permanently incapable of 
                        self-support under section 414 of title 38, 
                        United States Code, or
                            (ii) is entitled to compensation for a 
                        service-connected death or pension benefits for 
                        a non-service-connected death under title 38, 
                        United States Code, and has a disability 
                        considered permanent under section 221(i) of 
                        the Social Security Act (42 U.S.C. 421(i)), or
                    (G) is an individual receiving an annuity under 
                section 2(a)(1)(iv) or 2(a)(1)(v) of the Railroad 
                Retirement Act of 1974 (45 U.S.C. 231a(a)(1)(iv) or 
                231a(a)(1)(v)), if the individual's service as an 
                employee under the Railroad Retirement Act of 1974, 
                after December 31, 1936, had been included in the term 
                ``employment'' as defined in the Social Security Act 
                (42 U.S.C. 301 et seq.), and if an application for 
                disability benefits had been filed,
            (5) the term ``food'' means, for purposes of section 3 
        only--
                    (A) any food or food product for home consumption 
                except alcoholic beverages, tobacco, and hot foods or 
                hot food products ready for immediate consumption other 
                than those authorized pursuant to subparagraphs (C), 
                (D), (E), (G), (H), and (I),
                    (B) seeds and plants for use in gardens to produce 
                food for the personal consumption of the eligible 
                individuals,
                    (C) in the case of those persons who are 60 years 
                of age or over or who receive supplemental security 
                income benefits or disability or blindness payments 
                under title I, II, X, XIV, or XVI of the Social 
                Security Act (42 U.S.C. 1381 et seq.), and their 
                spouses, meals prepared by and served in senior 
                citizens' centers, apartment buildings occupied 
                primarily by such persons, public or private nonprofit 
                establishments (eating or otherwise) that feed such 
                persons, private establishments that contract with the 
                appropriate agency of the State to offer meals for such 
                persons at concessional prices, and meals prepared for 
                and served to residents of federally subsidized housing 
                for the elderly,
                    (D) in the case of persons 60 years of age or over 
                and persons who are physically or mentally handicapped 
                or otherwise so disabled that they are unable 
                adequately to prepare all of their meals, meals 
                prepared for and delivered to them (and their spouses) 
                at their home by a public or private nonprofit 
                organization or by a private establishment that 
                contracts with the appropriate State agency to perform 
                such services at concessional prices,
                    (E) in the case of narcotics addicts or alcoholics, 
                and their children, served by drug addiction or 
                alcoholic treatment and rehabilitation programs, meals 
                prepared and served under such programs,
                    (F) in the case of eligible individuals living in 
                Alaska, equipment for procuring food by hunting and 
                fishing, such as nets, hooks, rods, harpoons, and 
                knives (but not equipment for purposes of 
                transportation, clothing, or shelter, and not firearms, 
                ammunition, and explosives) if the Secretary determines 
                that such individuals are located in an area of the 
                State where it is extremely difficult to reach stores 
                selling food and that such individuals depend to a 
                substantial extent upon hunting and fishing for 
                subsistence,
                    (G) in the case of disabled or blind recipients of 
                benefits under title I, II, X, XIV, or XVI of the 
                Social Security Act, or are individuals described in 
                subparagraphs (B) through (G) of paragraph (4), who are 
                residents in a public or private nonprofit group living 
                arrangement that serves no more than 16 residents and 
                is certified by the appropriate State agency or 
                agencies under regulations issued under section 1616(e) 
                of the Social Security Act or under standards 
                determined by the Secretary to be comparable to 
                standards implemented by appropriate State agencies 
                under such section (42 U.S.C. 1382e(e)), meals prepared 
                and served under such arrangement,
                    (H) in the case of women and children temporarily 
                residing in public or private nonprofit shelters for 
                battered women and children, meals prepared and served, 
                by such shelters, and
                    (I) in the case of individuals that do not reside 
                in permanent dwellings and individuals that have no 
                fixed mailing addresses, meals prepared for and served 
                by a public or private nonprofit establishment 
                (approved by an appropriate State or local agency) that 
                feeds such individuals and by private establishments 
                that contract with the appropriate agency of the State 
                to offer meals for such individuals at concessional 
                prices,
            (6) the term ``infants'' means individuals under 1 year of 
        age,
            (7) the term ``postpartum women'' means women during the 
        180-day period after the end of their pregnancy,
            (8) the term ``pregnant women'' means women who have one or 
        more fetuses in utero,
            (9) the term ``retail food store'' means--
                    (A) an establishment or recognized department 
                thereof or house-to-house trade route, over 50 percent 
                of whose food sales volume, as determined by visual 
                inspection, sales records, purchase records, or other 
                inventory or accounting recordkeeping methods that are 
                customary or reasonable in the retail food industry, 
                consists of staple food items for home preparation and 
                consumption, such as meat, poultry, fish, bread, 
                cereals, vegetables, fruits, dairy products, and the 
                like, but not including accessory food items, such as 
                coffee, tea, cocoa, carbonated and uncarbonated drinks, 
                candy, condiments, and spices,
                    (B) an establishment, organization, program, or 
                group living arrangement referred to in subparagraph 
                (C), (D), (E), (G), (H), or (I) of paragraph (5),
                    (C) a store purveying the hunting and fishing 
                equipment described in paragraph (5)(F), or
                    (D) any private nonprofit cooperative food 
                purchasing venture, including those in which the 
                members pay for food purchased prior to the receipt of 
                such food,
            (10) the term ``school'' means an elementary, intermediate, 
        or secondary school,
            (11) the term ``Secretary'' means the Secretary of 
        Agriculture,
            (12) the term ``State'' means any of the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, 
        Guam, the Virgin Islands of the United States, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, the Republic 
        of the Marshall Islands, the Federated States of Micronesia, 
        Palau, or a tribal organization that exercises governmental 
        jurisdiction over a geographically defined area,
            (13) the term ``tribal organization'' has the meaning given 
        it in section 4(l) of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b(l)), and
            (14) the term ``young children'' means individuals who are 
        not less than 1 year of age and not more than 5 years of age.

SEC. 805. REPEALERS; AMENDMENTS.

    (a) Repealers.--The following Acts are repealed:
            (1) The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
            (2) The Child Nutrition Act (42 U.S.C. 1771 et seq.).
            (3) The National School Lunch Act (42 U.S.C. 1751 et seq.)
            (4) The Emergency Food Assistance Act of 1983 (7 U.S.C. 
        612c note).
            (5) The Hunger Prevention Act of 1988 (Public Law 100-435; 
        102 Stat. 1645).
            (6) The Commodity Distribution Reform Act and WIC 
        Amendments of 1987 (Public Law 100-237; 101 Stat. 1733).
            (7) The Child Nutrition and WIC Reauthorization Act of 1989 
        (Public Law 101-147; 103 Stat. 877).
    (b) Amendments.--
            (1) The Older Americans Act of 1965 (42 U.S.C. 3030a et 
        seq.) is amended by striking sections 303(b) and 311, and part 
        C of title III.
            (2) Section 32 of the Act of August 24, 1935 (Public Law 
        320; 7 U.S.C. 612C) is amended--
                    (A) in the first undesignated paragraph--
                            (i) by striking ``30 per centum'' and 
                        inserting ``1.5 per centum'', and
                            (ii) by striking ``; (2)'' and all that 
                        follows through ``Agriculture;'', and
                    (B) by striking the last sentence.
            (3) The Agriculture and Consumer Protection Act of 1973 (7 
        U.S.C. 612c note) is amended by striking sections 4 and 5.
            (4) The Agriculture and Food Act of 1981 (7 U.S.C. 1431) is 
        amended by striking section 1114.
            (5) Section 402 of the Mutual Security Act of 1954 (22 
        U.S.C. 1922) is amended by striking the last sentence.
            (6) The Act of September 6, 1958 (Public Law 83-931; 7 
        U.S.C. 1431b) is amended by striking section 9.
            (7) The Agricultural Act of 1965 (7 U.S.C. 1446a-1) is 
        amended by striking section 709.

SEC. 806. EFFECTIVE DATE; APPLICATION OF REPEALERS AND AMENDMENTS.

    (a) Effective Dates.--
            (1) General effective date.--Except as provided in 
        subsection (b), this title and the amendments made by this 
        title shall take effect on the date of the enactment of this 
        Act.
            (2) Special effective date.--The repeals made by section 
        805 shall not take effect until the first day of the first 
        fiscal year for which funds are appropriated more than 180 days 
        in advance of such fiscal year to carry out section 801.
    (b) Application of Repealers and Amendments.--The repeals and 
amendments made by section 805 shall not apply with respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to financial assistance provided 
        under the Acts repealed before the effective date of such 
        section, and
            (2) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such Acts.

                        TITLE IX--MISCELLANEOUS

SEC. 901. AFDC RECIPIENTS REQUIRED TO UNDERGO NECESSARY SUBSTANCE ABUSE 
              TREATMENT AS A CONDITION OF RECEIVING AFDC.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)) is amended by inserting after paragraph (34) the 
following:
            ``(35) provide that--
                    ``(A) as a condition of eligibility for aid under 
                the State plan, each applicant or recipient who the 
                State determines is addicted to alcohol or drugs must 
                be required to agree to participate, and must maintain 
                satisfactory participation (as determined by the 
                State), in an appropriate addiction treatment program 
                (if available), and must be required to agree to submit 
                to tests for the presence of alcohol or drugs, without 
                advance notice, during and after such participation; 
                and
                    ``(B) each applicant or recipient who fails to 
                comply with any requirement imposed pursuant to 
                subparagraph (A) shall not be eligible for such aid 
                during the 2-year period that begins with such failure 
                to comply, but shall be considered to be receiving such 
                aid for purposes of eligibility for medical assistance 
                under the State plan approved under title XIX.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall take effect on the date 
        of the enactment of this Act, and shall apply to payments under 
        part A of title IV of the Social Security Act for calendar 
        quarters ending after such date.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan approved under section 402(a) of the 
        Social Security Act which the Secretary of Health and Human 
        Services determines requires State legislation (other than 
        legislation appropriating funds) in order for the plan to meet 
        the additional requirement imposed by the amendment made by 
        subsection (a) of this section, the State plan shall not be 
        regarded as failing to comply with the requirements of such 
        section 402(a) solely on the basis of the failure of the plan 
        to meet such additional requirement before the end of the 2-
        year period that begins with the date of the enactment of this 
        Act.

SEC. 902. SSI BENEFITS FOR DRUG AND ALCOHOL ADDICTS.

    (a) In General.--Section 1614(a) of the Social Security Act (42 
U.S.C. 1382c(a)) is amended by adding at the end the following:
    ``(5)(A) The Secretary shall identify all recipients of benefits 
under this title by reason of disability whose disability is a result 
of addiction to illegal drugs.
    ``(B) The Secretary shall periodically, on a random basis, test 
each recipient identified under subparagraph (A) to determine whether 
the recipient is using illegal drugs.
    ``(C) Notwithstanding any other provision of this title, any 
individual who is determined under subparagraph (B) to be using illegal 
drugs, or who refuses to submit to testing as provided for under 
subparagraph (B), shall not be eligible for benefits under this 
title.''.
    (b) Representative Payee Reforms.--
            (1) Authority of government agencies to become paid 
        representative payees.--Section 1631(a)(2)(D)(ii) of such Act 
        (42 U.S.C. 1383(a)(2)(D)(ii)) is amended by adding at the end 
        the following: ``The term `qualified organization' also 
        includes any government agency that meets the requirements of 
        items (aa) and (bb) of subclause (II).''.
            (2) Maximum fee payable to representative payees.--Section 
        1631(a)(2)(D)(i) of such Act (42 U.S.C. 1383(a)(2)(D)(i)) is 
        amended by striking ``the lesser of--'' and all that follows 
        and inserting ``10 percent of the monthly benefit involved.''.

SEC. 903. EVALUATION OF EDUCATION AND TRAINING PROGRAMS.

    (a) In General.--The Secretary of Health and Human Services shall 
conduct research projects to examine the impact of education and 
training programs on the ability of individuals to end participation in 
the program of aid to families with dependent children under part A of 
title IV of the Social Security Act, expenditures under such program, 
wage rates, employment histories, and the resumption of participation 
in such program of individuals who had ended such participation. The 
Secretary shall collect information with respect to any individual 
during a period of not less than 5 years.
    (b) Special Rule.--At least 1 research project conducted under 
subsection (a) shall involve the random assignment of adult recipients 
of aid to families with dependent children under part A of title IV of 
the Social Security Act among--
            (1) a group that is not required to participate in any 
        special activity;
            (2) a group that is required to participate in education or 
        job training programs; and
            (3) a group that is required to participate in a job search 
        program, or in a job search and a work program.

SEC. 904. JOB SEARCH REQUIRED WHILE AFDC APPLICATION IS PENDING.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 201(a)(1), 302, 303, 304, 305, 307, 309(a), and 602 
of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (52);
            (2) by striking the period at the end of paragraph (53) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (53) the following:
            ``(54) unless the State has enacted a law exempting itself 
        from the application of this paragraph, provide that--
                    ``(A) each applicant for aid under the State plan 
                must participate in job search activities while the 
                application is pending; and
                    ``(B) the State agency must reimburse the applicant 
                for necessary transportation and child care expenses 
                incurred as a result of such participation.''.

SEC. 905. FRAUD AND ADMINISTRATIVE EFFICIENCY.

    (a) Demonstration Projects.--
            (1) In general.--The Secretary of Health and Human Services 
        may conduct demonstration projects in several States to 
        determine whether providing benefits based on need through the 
        use of electronic cards and automatic teller machines would 
        reduce administrative costs and fraud.
            (2) Report to the congress.--Within 5 years after the date 
        of the enactment of this Act, the Secretary shall submit to the 
        Congress a report that--
                    (A) summarizes the results of the projects; and
                    (B) makes recommendations with respect to whether 
                and how more States might be required or encouraged to 
                use electronic funds transfer in providing benefits 
                based on need.
    (b) Commission.--
            (1) In general.--The Secretary of Health and Human Services 
        (in this subsection referred to as the ``Secretary'') shall 
        establish a commission (in this subsection referred to as the 
        ``Commission'') composed of heads of executive departments, 
        expert private individuals, and State administrators, to 
        determine the cost and feasibility of creating an interstate 
        system to compare the social security account numbers of all 
        recipients of aid to families with dependent children under 
        State plans approved under part A of title IV of the Social 
        Security Act, so as to identify any such recipients who are 
        receiving such aid from 2 or more States.
            (2) Basic pay.--
                    (A) Rates of pay.--Except as provided in paragraph 
                (2), members of the Commission shall each be paid at a 
                rate not to exceed $200 for each day (including travel 
                time) during which they are engaged in the actual 
                performance of duties of the Commission.
                    (B) Prohibition of compensation of federal 
                employees.--Each member of the Commission who is a 
                full-time officer or employee of the United States may 
                not receive additional pay, allowances, or benefits by 
                reason of their service on the Commission.
            (3) Travel expenses.--Each member of the Commission shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code.
            (4) Staff of federal agencies.--Upon request of the 
        Secretary, the head of any Federal department or agency may 
        detail, on a reimbursable basis, any of the personnel of that 
        department or agency to the Commission to assist it in carrying 
        out its duties under this subsection.
            (5) Obtaining official data.--The Commission may secure 
        directly from any department or agency of the United States 
        information necessary to enable it to carry out this 
        subsection. Upon request of the Secretary, the head of that 
        department or agency shall furnish that information to the 
        Commission.
            (6) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as other 
        departments and agencies of the United States.
            (7) Administrative support services.--Upon request of the 
        Secretary, the Administrator of General Services shall provide 
        to the Commission, on a reimbursable basis, the administrative 
        support services necessary for the Commission to carry out its 
        responsibilities under this subsection.
            (8) Report.--Within 2 years after the date of the enactment 
        of this Act, the Secretary shall submit to the Congress a 
        report that contains the findings of the Commission.
            (9) Termination of commission.--The Commission shall 
        terminate upon submission of the report required by paragraph 
        (8).

SEC. 906. PUBLIC HOUSING RENT REFORM.

    (a) Short Title.--This section may be cited as the ``Public Housing 
Rent Reform and Empowerment Act''.
    (b) Determination of Income and Rent Charges.--
            (1) Exclusion from income of taxes on earnings.--Section 
        3(b)(5) of the United States Housing Act of 1937 (42 U.S.C. 
        1437a(b)(5)) is amended--
                    (A) by redesignating subparagraphs (A) through (G) 
                as subparagraphs (B) through (H), respectively; and
                    (B) by inserting before subparagraph (B) (as so 
                redesignated by subparagraph (A) of this paragraph) the 
                following new subparagraph:
                    ``(A) with respect only to families residing in 
                public housing, the amount of any Federal, State, and 
                local income taxes paid on earned income by members of 
                the family and the amount paid on earned income by 
                members of the family for the taxes imposed under 
                sections 3101 and 3201(a) of the Internal Revenue Code 
                of 1986;''.
            (2) PHA option to exclude earned income.--Section 3(b)(5) 
        of the United States Housing Act of 1937 (42 U.S.C. 
        1437a(b)(5)) is amended by adding at the end the following new 
        flush sentence:
``At the option of a public housing agency, the agency may (for all 
families residing in public housing administered by the agency) exclude 
from consideration as income for purposes of determining any limitation 
on the amount of rent paid by a family, all or part of any increases in 
the earned income of a family that results from the employment of a 
previously unemployed family member; except that such increases in 
earned income may be excluded only during the 2-year period beginning 
on the employment of the family member.''.
            (3) Applicability to Indian Public Housing.--In accordance 
        with section 201(b)(2) of the United States Housing Act of 
        1937, the provisions of this subsection shall apply to public 
        housing developed or operated pursuant to a contract between 
        the Secretary and an Indian housing authority.
    (c) Public Housing Authority Market Rent Demonstration.--
            (1) Authority.--At the request of a public housing agency 
        or resident management corporation, the Secretary of Housing 
        and Urban Development may authorize the agency or corporation 
        to carry out a demonstration program under this subsection to 
        determine the feasibility and desirability of providing public 
        housing agencies and resident management corporations the 
        authority to establish policies for the operation, maintenance, 
        management, and development (including modernization) of public 
        housing projects administered by the agency, without regard to 
        the requirements under the United States Housing Act of 1937 
        applicable to public housing. In establishing such policies, 
        public housing agencies and resident management corporations 
        shall be subject to the provisions of any applicable State and 
        local laws.
            (2) Required findings.--The Secretary may authorize a 
        public housing agency or resident management corporation to 
        carry out a demonstration program under this subsection only if 
        the Secretary determines, with respect to the particular 
        demonstration program, that--
                    (A) the program is likely to assist in promoting 
                the objectives of the United States Housing Act of 
                1937, encourage resident empowerment, and reduce 
                poverty in public housing by improving the means by 
                which economic self-sufficiency may be achieved;
                    (B) the program, taken as a whole, will not result 
                in higher costs to the Federal Government than would be 
                incurred absent the program;
                    (C) the results of the program will be evaluated 
                and reported to the Secretary by independent entities;
                    (D) no fewer very low-income families will be 
                assisted under the program than would otherwise have 
                been assisted; and
                    (E) the program is consistent with the Fair Housing 
                Act, title VI of the Civil Rights Act of 1964, section 
                504 of the Rehabilitation Act of 1973, and the Age 
                Discrimination Act of 1975.
            (3) Exceptions to provisions of united states housing act 
        of 1937.--
                    (A) Mandatory.--Notwithstanding any other provision 
                of law, during the period of the demonstration program 
                (pursuant to subsection (i)) section 3(a) of the United 
                States Housing Act of 1937 (relating to rental amounts 
                for dwelling units in public housing projects), 
                sections 3(b) (4) and (5) of such Act (relating to 
                determination of income and adjusted income), and 
                section 16 of such Act (relating to income eligibility) 
                shall not apply to any public housing projects involved 
                in a demonstration program under this subsection or any 
                families residing in such projects. Each public housing 
                authority and resident management corporation carrying 
                out a demonstration program under this subsection shall 
                establish rents for dwelling units in projects involved 
                in the demonstration program at the discretion of the 
                agency or corporation.
                    (B) Discretionary.--The Secretary may exempt a 
                public housing agency or resident management 
                corporation carrying out a demonstration program under 
                this subsection from any other requirements of the 
                United States Housing Act of 1937, and modify the 
                requirements of such sections and other provisions with 
                respect to such agencies, that the Secretary determines 
                are not consistent with the purposes of a demonstration 
                program.
            (4) Income eligibility.--Not less than 30 percent of the 
        total number of dwelling units in public housing projects 
        involved in a demonstration program carried out under this 
        subsection by a public housing agency or resident management 
        corporation shall be available for leasing only to very low-
        income families.
            (5) Effect on operating subsidies.--Notwithstanding any 
        requirement pursuant to section 9 of the United States Housing 
        Act of 1937, the amount of annual contributions provided for a 
        fiscal year under such section to any public housing agency or 
        resident management corporation carrying out a demonstration 
        program in such fiscal year may not exceed the amount of such 
        annual contributions provided under such section to the agency 
        or corporation for the last fiscal year concluding before the 
        commencement of the demonstration program by the agency or 
        corporation, as adjusted for inflation (as determined by the 
        Secretary).
            (6) Treatment of families unable to pay rental charges in 
        public housing.--
                    (A) Authority to provide section 8 assistance.--
                Notwithstanding any other provision of law, in 
                connection with carrying out a demonstration program 
                under this subsection a public housing agency may 
                provide assistance under section 8 of the United States 
                Housing Act of 1937 (to the extent sufficient amounts 
                for such assistance are available to such agency) on 
                behalf of any family that (A) resides in a dwelling 
                unit in a public housing project involved in the 
                demonstration program upon the commencement of the 
                demonstration, (B) is otherwise eligible for such 
                assistance, and (C) under section 3(a)(1) of such Act 
                would pay as rent for a dwelling unit assisted under 
                such section an amount that is less than the rental 
                charge for the public housing dwelling unit under the 
                demonstration program. Any such assistance provided for 
                such family shall be subject to the provisions of 
                section 3(a)(1) or 8(o) of such Act, as applicable.
                    (B) Use.--Such assistance may be used in connection 
                with the rental of a public housing dwelling unit or 
                any other dwelling unit eligible for rental using such 
                assistance.
                    (C) Preference.--Notwithstanding any other 
                provision of law, a public housing agency carrying out 
                a demonstration program under this subsection may give 
                preference in providing assistance under such section 8 
                to families described in subparagraph (A) of this 
                paragraph.
            (7) Scope of demonstrations.--In authorizing public housing 
        agencies and resident management corporations to carry out 
        demonstration programs under this subsection, the Secretary 
        shall provide that the demonstration is carried out with 
        respect to one or more specific public housing projects.
            (8) Number of demonstrations.--The Secretary may authorize 
        not more than 50 public housing agencies or resident management 
        corporations to carry out demonstration programs under this 
        subsection.
            (9) Duration.--A public housing agency or resident 
        management corporation authorized to carry out a demonstration 
        program under this subsection may carry out the demonstration 
        for a period, determined by the agency or corporation, of not 
        more than 5 years.
            (10) Limitation.--The number and duration of demonstration 
        programs authorized by the Secretary may not exceed the number 
        and duration necessary to achieve the objectives of this 
        subsection.
            (11) Additional requirements.--In authorizing a 
        demonstration program under this subsection, the Secretary may 
        impose such requirements on the program as the Secretary 
        considers to be appropriate to further its purposes.
            (12) Reports.--
                    (A) To secretary.--Each public housing agency and 
                resident management corporation carrying out a 
                demonstration program under this subsection shall 
                submit a report to the Secretary regarding the 
                demonstration for each year in which the demonstration 
                is carried out, as shall be required by the Secretary.
                    (B) To congress.--Not later than 6 years after the 
                date of the enactment of this Act, the Secretary shall 
                submit a report to the Congress describing and 
                evaluating the demonstration programs carried out under 
                this subsection.
            (13) Definitions.--For purposes of this subsection:
                    (A) Public housing.--The terms ``public housing'' 
                and ``project'' have the meanings given such terms in 
                section 3(b) of the United States Housing Act of 1937.
                    (B) Public housing agency.--The terms ``public 
                housing agency'' and ``agency'' have the meanings given 
                the term ``public housing agency'' in section 3(b) of 
                the United States Housing Act of 1937.
                    (C) Resident management corporation.--The terms 
                ``resident management corporation'' and ``corporation'' 
                mean a resident management corporation established in 
                accordance with requirements of the Secretary under 
                section 20 of the United States Housing Act of 1937.
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of Housing and Urban Development.
                    (E) Very low-income families.--The term ``very low-
                income families'' has the meaning given the term in 
                section 3(b) of the United States Housing Act of 1937.
            (14) Applicability to indian housing.--In accordance with 
        section 201(b)(2) of the United States Housing Act of 1937, the 
        provisions of this subsection shall apply to public housing 
        developed or operated pursuant to a contract between the 
        Secretary and an Indian housing authority.
    (d) Regulations.--The Secretary may issue any regulations necessary 
to carry out this section and the amendments made by this section.
    (e) Budget Compliance and Effective Date.--
            (1) Budget compliance.--Notwithstanding subsection (b), 
        this section and the amendments made by this section shall be 
        effective only to the extent approved, or in such amounts as 
        are provided, in appropriation Acts.
            (2) Effective date.--The provisions of this section shall 
        take effect and the amendments under this section shall be made 
        on October 1, 1995.

SEC. 907. REQUIRED IMMUNIZATIONS FOR CHILDREN.

    (a) AFDC Benefits Denied for Children Who Have Not Received 
Preventive Health Care or Immunizations.--
            (1) In general.--Section 402(a) of the Social Security Act 
        (42 U.S.C. 602(a)), as amended by sections 201(a)(1), 302, 303, 
        304, 305, 307, 309(a), 602, and 904 of this Act, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (53);
                    (B) by striking the period at the end of paragraph 
                (54) and inserting ``; and''; and
                    (C) by inserting after paragraph (54) the 
                following:
            ``(55) provide that--
                    ``(A) aid under the plan shall not be payable with 
                respect to any child who has not attained the age of 6 
                years, unless the State agency has received from 1 or 
                more physicians written verification (on a form 
                prescribed by the State)--
                            ``(i) that the child has been examined by a 
                        physician not less frequently than--
                                    ``(I) in the case of a child who 
                                has not attained the age of 19 months, 
                                every 6 months since the child was 
                                born; and
                                    ``(II) in the case of any other 
                                child, every 6 months until the child 
                                attained the age of 19 months, and 
                                every year thereafter;
                            ``(ii) that the child has been immunized in 
                        accordance with recommendations issued by the 
                        Surgeon General of the Public Health Service; 
                        and
                            ``(iii) of any contraindication which 
                        exempts the child from receiving an 
                        immunization;
                    ``(B) the State will conduct appropriate education 
                and outreach activities designed to--
                            ``(i) increase public awareness of the 
                        importance of preventive health care and 
                        immunizations for pre-school children; and
                            ``(ii) inform the public about--
                                    ``(I) the availability of 
                                preventive health care and immunization 
                                services for pre-school children;
                                    ``(II) any transportation, child 
                                care, or other support services that 
                                may be available to assist parents in 
                                obtaining such services for their 
                                children; and
                                    ``(III) the clinics at which any 
                                child may receive immunizations free or 
                                at a reduced charge.''.
            (2) Applicability.--The amendments made by paragraph (1) 
        shall apply to--
                    (A) payments to individuals under State plan 
                approved under part A of title IV of the Social 
                Security Act, for months beginning on or after October 
                1, 1995; and
                    (B) payments to States under such part for calendar 
                quarters beginning on or after October 1, 1995.
    (b) Amendments to the Child Care and Development Block Grant.--
            (1) In general.--Section 658E(2) of the Child Care and 
        Development Block Grant Act (42 U.S.C. 9858c(2)) is amended--
                    (A) in subparagraph (F)--
                            (i) in clause (ii) by striking ``and'' at 
                        the end;
                            (ii) in clause (iii) by striking the period 
                        at the end and inserting ``; and'';
                            (iii) by inserting after subclause (III), 
                        as so redesignated, the following:
                            ``(iv) a requirement that such providers 
                        require with respect to each child who receives 
                        child care services from any of such providers 
                        that certificates signed by a physician who 
                        verifies that such child has been immunized in 
                        accordance with recommendations issued by the 
                        Surgeon General of the Public Health Service be 
                        submitted, at required intervals and in 
                        accordance with rules issued by the Secretary, 
                        to the child care provider involved.''; and
                            (iv) by striking the last sentence; and
                    (B) in subparagraph (G)--
                            (i) by inserting ``(i)'' before 
                        ``Provide''; and
                            (ii) by adding at the end the following:
                    ``(ii) For the purpose of enforcing the requirement 
                described in subparagraph (F)(iv), such procedures 
                shall ensure that each of such providers gives to 
                parents of each child who receives child care services 
                from the provider involved written notice of--
                            ``(I) each immunization requirement 
                        applicable to such child;
                            ``(II) an opportunity of not less than 30 
                        days, and not more than 45 days, to correct the 
                        failure to satisfy such requirement; and
                            ``(III) the fact that child care services 
                        for such child will be terminated for failure 
                        to satisfy such requirement before the 
                        expiration of the 45-day period beginning on 
                        the date such notice is received.''.
            (2) Applicability.--The amendments made by paragraph (1) 
        shall not apply with respect to fiscal years beginning before 
        October 1, 1995.
    (c) Issuance of Immunization Recommendations by the Surgeon General 
of the Public Health Service.--After taking into consideration the then 
most recent report of the Committee on Infectious Diseases of the 
American Academy of Pediatrics, the Surgeon General of the Public 
Health Service shall issue, and revise from time to time, 
recommendations for the immunization of children under 6 years of age. 
With respect to each recommended immunization, such recommendation 
shall include--
            (1) contraindications (if any) that should be identified to 
        exempt a child from receiving such immunization, and
            (2) remedial action that may be taken to minimize the 
        adverse effect of failure to administer such immunization to a 
        child at the recommended age.

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