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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 834 Introduced in Senate (IS)]

  1st Session
                                 S. 834

To restore the American family, reduce illegitimacy, and reduce welfare 
                              dependence.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                 May 19 (legislative day, May 15), 1995

 Mr. Faircloth (for himself, Mr. Dole, Mr. Lott, Mr. Brown, Mr. Burns, 
Mr. Craig, Mr. Hatch, Mr. Helms, Mr. Kempthorne, Mr. McConnell, and Mr. 
   Thurmond) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To restore the American family, reduce illegitimacy, and reduce welfare 
                              dependence.
    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 ``Real Welfare Reform Act of 1995''.

SEC. 2. REFERENCES IN ACT; TABLE OF CONTENTS.

    (a) Amendments to Social Security Act.--Except as otherwise 
specifically provided, whenever in this Act an amendment is expressed 
in terms of an amendment to or repeal of a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Social Security Act.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. References in act; table of contents.
             TITLE I--WELFARE SPENDING CAP AND BLOCK GRANTS

      Subtitle A--Capping the Aggregate Growth of Welfare Spending

Sec. 101. Cap on growth of Federal spending on certain welfare 
                            programs.
Sec. 102. Savings from welfare spending limits to be used for deficit 
                            reduction.
                Subtitle B--Welfare Block Grant Program

Sec. 111. Establishment of welfare block grant program.
Sec. 112. Repeal of certain welfare programs.
Sec. 113. Rainy day fund.
Sec. 114. No limitation on use of non-Federal funds.
Sec. 115. Substantial noncompliance.
Sec. 116. Reporting requirements.
Sec. 117. Eligibility under the medicaid program.
  TITLE II--WORK PROGRAM-RELATED REQUIREMENTS ON STATES IN EXPENDING 
                       CERTAIN BLOCK GRANT FUNDS

Sec. 201. Definitions.
         Subtitle A--Workfare and Dependency Reduction Program

Sec. 211. Purpose of program.
Sec. 212. Requirement to operate a workfare and dependency reduction 
                            program.
Sec. 213. Program participation requirements.
Sec. 214. Community work service program.
Sec. 215. Benefits to wages program.
Sec. 216. Penalties relating to noncustodial parents.
Sec. 217. Work requirements eliminated for groups which no longer 
                            receive benefits.
   Subtitle B--Work Requirement for Food Stamp Equivalent Households

Sec. 221. Work requirement for able-bodied nonparents in food stamp 
                            equivalent households.
Sec. 222. Work requirements eliminated for groups which no longer 
                            receive benefits.
              Subtitle C--Evaluation of Training Programs

Sec. 231. Evaluation of training programs.
                     TITLE III--PROMOTING FAMILIES

Sec. 301. Sense of the Congress.
     Subtitle A--Eligibility for Certain Welfare Block Grant Funds

Sec. 311. Denial of certain assistance for certain young unwed parents 
                            and their children.
Sec. 312. Benefit provisions regarding additional children.
Sec. 313. Provisions relating to paternity establishment.
Subtitle B--Additional Earned Income Tax Credit for Married Individuals

Sec. 321. Additional earned income credit for married individuals.
             Subtitle C--Expansion of Abstinence Education

Sec. 331. Abstinence education grants.
                       TITLE IV--RECOMMENDATIONS

Sec. 401. Educational activities for custodial parents under 19 years 
                            of age.
Sec. 402. Recommendation that certain applicants for assistance conduct 
                            job search activities.
Sec. 403. Reduction of benefits to families who also receive housing 
                            assistance.
                   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. Improvements in paternity establishment.
Sec. 507. Waiver of fee for certain individuals receiving child support 
                            collection or paternity determination 
                            services.
Sec. 508. Effective date.
                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Repeal of the Davis-Bacon Act.
Sec. 602. Elimination of medicaid benefits with respect to fugitive 
                            felons and probation and parole violators.
Sec. 603. Restriction of certain legal challenges.
Sec. 604. Commodity distribution in lieu of vouchers under the WIC 
                            program.
               TITLE VII--SEVERABILITY AND EFFECTIVE DATE

Sec. 701. Severability.
Sec. 702. Effective date.
             TITLE I--WELFARE SPENDING CAP AND BLOCK GRANTS

      Subtitle A--Capping the Aggregate Growth of Welfare Spending

SEC. 101. CAP ON GROWTH OF FEDERAL SPENDING ON CERTAIN WELFARE 
              PROGRAMS.

    (a) Restrictions on Spending.--The total amount of Federal spending 
for the programs listed in subsection (b) shall not exceed--
            (1) in fiscal year 1996, an amount equal to--
                    (A) the sum of--
                            (i) the total Federal spending for fiscal 
                        year 1995 for the programs repealed or 
                        terminated in section 112;
                            (ii) the total Federal spending for fiscal 
                        year 1995 for the refundable portion of the 
                        earned income credit under section 32 of the 
                        Internal Revenue Code of 1986;
                            (iii) the total Federal spending for fiscal 
                        year 1995 for the head start programs carried 
                        out under the Head Start Act;
                            (iv) the total Federal spending for fiscal 
                        year 1995 for cash, medical, and social 
                        services assistance furnished to refugees and 
                        entrants under title IV of the Immigration and 
                        Nationality Act and section 501 of the Refugee 
                        Education Assistance Act of 1980; and
                            (v) the special supplemental food program 
                        for women, infants, and children carried out 
                        under section 17 of the Child Nutrition Act of 
                        1966; minus
                    (B) the total estimated Federal amount for fiscal 
                year 1996 that the Congressional Budget Office 
                estimates--
                            (i) would have been spent had section 
                        111(c)(2) (relating to prohibition on aid to 
                        noncitizens) not been enacted; and
                            (ii) would have been spent had section 221 
                        (relating to work requirement for able-bodied 
                        nonparents in food stamp equivalent households) 
                        not been enacted; and
            (2) in fiscal year 1997 and each fiscal year thereafter, an 
        amount equal to the sum of--
                    (A) the total Federal spending permitted under this 
                subsection for the preceding fiscal year; and
                    (B) 3 percent of such spending.
    (b) Programs Subject to Spending Limit.--The programs listed in 
this subsection are the following:
            (1) The welfare block grant program established under 
        section 111.
            (2) The refundable portion of the earned income credit 
        under section 32 of the Internal Revenue Code of 1986.
            (3) The head start programs carried out under the Head 
        Start Act.
            (4) The cash, medical, and social services assistance 
        programs for refugees and entrants under title IV of the 
        Immigration and Nationality Act and section 501 of the Refugee 
        Education Assistance Act of 1980.
            (5) The special supplemental food program for women, 
        infants, and children carried out under section 17 of the Child 
        Nutrition Act of 1966.
The adjustment in allocation based on the statewide illegitimacy ratio 
described in section 111(a)(3)(B) and the supplemental payment 
described in section 215(g) shall not be treated as part of the welfare 
block grant program described in paragraph (1).
    (c) Reconciliation of Growth Limits.--
            (1) Allocations.--The joint explanatory statement 
        accompanying a conference report on a concurrent resolution on 
        the budget described in section 301 of the Congressional Budget 
        Act of 1974 for a fiscal year shall include allocations to each 
        committee based on the spending cap imposed by subsection (a) 
        for such fiscal year.
            (2) Reconciliation directives.--The reconciliation 
        directives described in section 310 of the Congressional Budget 
        Act of 1974 shall specify reductions for each committee 
        necessary to comply with the spending caps imposed by 
        subsection (a) for such fiscal year.
            (3) Consultation with committees.--In conducting any 
        activities required under paragraphs (1) and (2), the 
        Committees on the Budget of the House of Representatives and 
        the Senate shall consult with the following committees of 
        Congress:
                    (A) The Committee on Ways and Means of the House of 
                Representatives.
                    (B) The Committee on Finance of the Senate.
                    (C) The Committee on Agriculture of the House of 
                Representatives.
                    (D) The Committee on Agriculture, Nutrition, and 
                Forestry of the Senate.
                    (E) The Committee on Economic and Educational 
                Opportunities of the House of Representatives.
                    (F) The Committee on Labor and Human Resources of 
                the Senate.
                    (G) The Committee on Banking and Financial Services 
                of the House of Representatives.
                    (H) The Committee on Banking, Housing, and Urban 
                Affairs of the Senate.
                    (I) The Committee on Commerce of the House of 
                Representatives.
    (d) Refundable Portion of EITC.--For purposes of this title, the 
refundable portion of the earned income credit under section 32 of the 
Internal Revenue Code of 1986 is the amount treated as an overpayment 
of tax under section 6401(b)(1) of such Code which is allocable to such 
credit.

SEC. 102. SAVINGS FROM WELFARE SPENDING LIMITS TO BE USED FOR DEFICIT 
              REDUCTION.

    (a) Deficit Reduction.--All savings to the Federal Government 
resulting from the spending cap imposed under section 101 shall be used 
for deficit reduction. Such savings shall not be used to fund increased 
spending under any programs that are not subject to the spending cap.
    (b) Adjustment of Discretionary Caps.--Not later than 5 days after 
the date of enactment of this Act, the President shall increase the 
discretionary spending limits under section 601 of the Congressional 
Budget Act of 1974 for the budget year and any outyear affected to 
reflect the net increase in such limits resulting from the cap imposed 
by section 101.

                Subtitle B--Welfare Block Grant Program

SEC. 111. ESTABLISHMENT OF WELFARE BLOCK GRANT PROGRAM.

    (a) Grants Authorized.--
            (1) In general.--For fiscal year 1996 and each fiscal year 
        thereafter, the Secretary of Health and Human Services shall 
        make grants to the States in accordance with this section.
            (2) Limit on total amount of grants.--
                    (A) In general.--The aggregate amount of grants 
                made to States under this section for a fiscal year 
                shall not exceed the total Federal spending permitted 
                under section 101(a) for the fiscal year reduced by the 
                sum of the amount to be expended by the Federal 
                Government for the fiscal year, as estimated by the 
                Congressional Budget Office, for--
                            (i) the refundable portion of the earned 
                        income credit under section 32 of the Internal 
                        Revenue Code of 1986;
                            (ii) the head start programs carried out 
                        under the Head Start Act;
                            (iii) cash, medical, and social services 
                        assistance furnished to refugees and entrants 
                        under title IV of the Immigration and 
                        Nationality Act and section 501 of the Refugee 
                        Education Assistance Act of 1980; and
                            (iv) the special supplemental food program 
                        for women, infants, and children carried out 
                        under section 17 of the Child Nutrition Act of 
                        1966.
                    (B) Adjustments.--If the programs listed in clause 
                (i) or (ii) of subparagraph (A) is amended by law after 
                the Congressional Budget Office has completed the 
                estimates required under such subparagraph, the 
                aggregate amount of grants made to States under this 
                section (as determined under subparagraph (A)) shall be 
                reduced by the amount by which the total Federal 
                spending on such programs, as amended, will exceed the 
                amount determined under such estimates.
            (3) Allocation to the states.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a State shall, subject to appropriations Acts, 
                receive a grant under this section for a fiscal year 
                equal to the amount which bears the same ratio to the 
                total amount appropriated for grants under this section 
                for the fiscal year as the total amount of Federal 
                funds received by the State and residents of the State 
                under the programs repealed or terminated in section 
                112 for fiscal year 1995 bears to the total amount of 
                Federal funds received by all States and the residents 
                of all States under the programs repealed or terminated 
                in section 112 for fiscal year 1995.
                    (B) Adjustment in allocation based on statewide 
                illegitimacy ratio.--
                            (i) In general.--Subject to appropriations 
                        Acts, beginning in fiscal year 1997 and each 
                        fiscal year thereafter, the grant amount 
                        otherwise determined under this paragraph for 
                        the applicable fiscal year for a State shall--
                                    (I) be increased by 4 percent if 
                                the adjusted illegitimacy ratio in the 
                                State for the applicable fiscal year is 
                                at least 2 percentage points less than 
                                the illegitimacy ratio in the State for 
                                fiscal year 1995;
                                    (II) be increased by 2 percent if 
                                the adjusted illegitimacy ratio in the 
                                State for the applicable fiscal year is 
                                between 0.5 percentage point and 2 
                                percentage points less than the 
                                illegitimacy ratio for fiscal year 
                                1995; or
                                    (III) be decreased by 2 percent if 
                                the adjusted illegitimacy ratio in the 
                                State for the applicable fiscal year is 
                                at least 2 full percentage points more 
                                than the illegitimacy ratio in the 
                                State for fiscal year 1995.
                            (ii) Adjusted illegitimacy ratio.--For 
                        purposes of clause (i), the adjusted 
                        illegitimacy ratio for an applicable fiscal 
                        year is the ratio, expressed as a percentage, 
                        equal to--
                                    (I) the sum of--
                                            (aa) the total number of 
                                        out-of-wedlock births that 
                                        occurred in the State (as 
                                        determined by the Secretary) 
                                        during the most recent fiscal 
                                        year for which information is 
                                        available, and
                                            (bb) the amount (if any) by 
                                        which the number of abortions 
                                        performed in the State during 
                                        the most recent fiscal year for 
                                        which information is available 
                                        exceeds the number of abortions 
                                        performed in the State during 
                                        the fiscal year that precedes 
                                        such most recent fiscal year; 
                                        divided by
                                    (II) the total number of births in 
                                the State (as determined by the 
                                Secretary) in the most recent fiscal 
                                year for which information is 
                                available.
                            (iii) Illegitimacy ratio for fiscal year 
                        1995.--For purposes of clause (i), the 
                        illegitimacy ratio for fiscal year 1995 is the 
                        ratio, expressed as a percentage, equal to--
                                    (I) the total number of out-of-
                                wedlock births that occurred in the 
                                State (as determined by the Secretary) 
                                during fiscal year 1995; divided by
                                    (II) the total number of births in 
                                the State (as determined by the 
                                Secretary) during fiscal year 1995.
                            (iv) Determination of number of 
                        abortions.--Each State receiving a grant under 
                        this section shall establish and operate a 
                        system for determining the total number of 
                        abortions performed in the State.
                            (v) Determination of the secretary.--The 
                        Secretary shall not adjust the grant amount 
                        under this subparagraph if the Secretary 
                        determines that the adjusted illegitimacy ratio 
                        determined for an applicable fiscal year 
                        differs from the adjusted illegitimacy ratio 
                        determined during a prior year due to a change 
                        in data reporting methods by the State.
                            (vi) Limitation.--The grant amount received 
                        by a State under this paragraph shall not be 
                        adjusted under this subparagraph if the most 
                        recent information relating to out-of-wedlock 
                        births, total births,
                         and abortions that is available in the State 
for determining the adjusted illegitimacy ratio for an applicable 
fiscal year is for a fiscal year prior to fiscal year 1996.
                            (vii)  Authorization of appropriations.--
                        There are authorized to be appropriated such 
                        sums as may be necessary to carry out the 
                        purposes of this subparagraph.
    (b) Use of Funds.--
            (1) In general.--A State shall use the amounts received 
        under this section to--
                    (A) provide aid to low-income households located in 
                the State; and
                    (B) provide--
                            (i) such services and activities as the 
                        State deems appropriate to discourage out-of-
                        wedlock pregnancies; and
                            (ii) care for children born out-of-wedlock.
            (2) Provision of aid.--
                    (A) Low-income households.--Except as provided in 
                subsection (c), a State shall have the authority to 
                provide aid to low-income households in any manner 
                determined appropriate by the State, including the 
                authority to determine--
                            (i) the type of benefits constituting such 
                        aid;
                            (ii) the level of benefits constituting 
                        such aid; and
                            (iii) the eligibility criteria for such 
                        aid.
                    (B) Activities to discourage out-of-wedlock 
                pregnancies and provision of care for children born 
                out-of-wedlock.--Except as provided subsection (c), a 
                State shall have the authority to provide the services, 
                activities, and care described in paragraph (1)(B), in 
                any manner determined appropriate by the State, 
                including--
                            (i) establishing or expanding programs to 
                        reduce out-of-wedlock pregnancies;
                            (ii) programs to promote adoption; and
                            (iii) the establishment and operation of 
                        closely supervised residential group homes for 
                        unwed mothers and their children.
            (3) Definition of low-income household.--For purposes of 
        this section, the term ``low-income household'' means a 
        household with an annual income that is less than 175 percent 
        of the Federal poverty income guidelines issued by the 
        Department of Health and Human Services for a household of the 
        same size.
    (c) Special Rules Regarding Use of Funds.--
            (1) No funds used for abortion.--A State shall not use 
        grant funds received under this section for making abortion 
        available as a method of family planning or for any counseling 
        or advising with respect to abortion.
            (2) Requirements relating to aid for noncitizens.--A State 
        shall not use grant funds received under this section for 
        providing aid to an individual who is not a United States 
        citizen.
            (3) Civil rights laws.--A State shall not violate any 
        requirement established by statute or regulation under the 
        following Acts in providing aid using grant funds received 
        under this section:
                    (A) Title VI of the Civil Rights Act of 1965.
                    (B) Section 504 of the Rehabilitation Act of 1973.
                    (C) Title IX of the Education Amendments of 1972.
                    (D) The Age Discrimination Act of 1975.
                    (E) The Americans With Disabilities Act of 1990.
            (4) Child support and paternity establishment.--A State 
        receiving grant funds under this section shall conduct child 
        support and paternity establishment activities in accordance 
        with part D of title IV of the Social Security Act.
            (5) No litigation.--A State shall not use grant funds 
        received under this section for litigation or the provision of 
        legal services.
            (6) Aid denied to fugitive felons and probation or parole 
        violators.--
                    (A) In general.--A State shall not use grant funds 
                received under this section for providing aid to an 
                individual during any period during which the 
                individual--
                            (i) is taking an action described in 
                        section 1073(1) of title 18, United States 
                        Code, or
                            (ii) is violating a condition of probation 
                        or parole imposed under Federal or State law.
                    (B) Exchange of information with law enforcement 
                agencies.--A State receiving grant funds under this 
                section shall furnish to a Federal, State, or local law 
                enforcement officer, upon such officer's request, the 
                current address of any individual receiving aid under 
                this section if the officer furnishes the State with 
                such individual's name and notifies the State that--
                            (i) such individual--
                                    (I) is taking an action described 
                                in section 1073(1) of title 18, United 
                                States Code or violating a condition of 
                                probation or parole imposed under 
                                Federal or State law; or
                                    (II) has information that is 
                                necessary for the officer to conduct 
                                the officer's official duties;
                            (ii) the location or apprehension of such 
                        recipient is within the officer's official 
                        duties; and
                            (iii) the request is made in the proper 
                        exercise of those duties.
    (d) Distribution of Food Commodities.--
            (1) In general.--To the extent that the State expends grant 
        funds received under this subtitle to provide food assistance, 
        the Congress strongly encourages State governments--
                    (A) to provide such assistance through the direct 
                distribution of a nutritionally balanced selection of 
                food commodities directly purchased by the State; and
                    (B) not to provide such assistance through cash 
                aid, food coupons, or the electronic transfer of funds.
            (2) Assistance by federal government.--The Department of 
        Agriculture may assist State governments in the purchase of 
        food commodities for purposes of subsection (a) by--
                    (A) entering into agreements with individual States 
                for the purchase of food commodities;
                    (B) serving as a bulk purchaser of food commodities 
                that will be provided to States in accordance with any 
                agreements reached with individual States; and
                    (C) receiving reimbursement from the applicable 
                State for such purchases.
            (3) Distribution by participants in work programs.--Each 
        State that distributes commodities to households under this 
        subsection is encouraged to utilize members of households who 
        are participating in work programs in accordance with title II 
        of this Act to assist in the distribution of such commodities.
    (e) Special Provisions Relating To Use of Funds With Respect to 
Certain Populations.--A State shall comply with the provisions of title 
II and subtitle A of title III with respect to providing certain 
categories of aid to certain individuals in low-income households.
    (f) Treatment of Interstate Immigrants.--It is the sense of the 
Congress that a State may provide a lower level of aid to low-income 
households to an interstate immigrant than the State provides to a 
long-term resident of the State.
    (g) No Entitlement To Receive Aid.--An individual shall not be 
entitled to receive aid out of grant funds received by a State under 
this section.
    (h) Definition of State.--
            (1) In general.--For purposes of this section, the term 
        ``State'' means each of the several States of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and Indian 
        tribes.
            (2) Indian tribe.--For purposes of paragraph (1), the term 
        ``Indian tribe'' means any Indian tribe, band, nation, or other 
        organized group or community, including any Alaska Native 
        village or regional or village corporation as defined in or 
        established pursuant to the Alaska Native Claims Settlement Act 
        (43 U.S.C. 1601 et seq.) which is recognized as eligible for 
        the special programs and services provided by the United States 
        to Indians because of their status as Indians.

SEC. 112. REPEAL OF CERTAIN WELFARE PROGRAMS.

    (a) Repeals.--
            (1) Cash aid.--
                    (A) Part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.) (relating to the program of aid 
                to families with dependent children and emergency 
                assistance to needy families with children), other than 
                section 402(g), is repealed.
                    (B) Part B of title IV of the Social Security Act 
                (42 U.S.C. 620 et seq.) (relating to child and family 
                services) is repealed.
                    (C) Title XVI of the Social Security Act (42 U.S.C. 
                1381 et seq.) (relating to the supplemental security 
                income program) is repealed.
                    (D) Part E of title IV of the Social Security Act 
                (42 U.S.C. 670 et seq.) (relating to the foster care 
                and adoption assistance program) is repealed.
                    (E) Notwithstanding the Act of November 2, 1921 (42 
                Stat. 208, chapter 115; 25 U.S.C. 13) (popularly known 
                as the ``Snyder Act''), or any other provision of law, 
                the Bureau of Indian Affairs shall not provide BIA 
                general assistance (as defined in section 20.1(m) of 
                title 25, Code of Federal Regulations) (relating to 
                general assistance in the form of direct financial 
                assistance to Indians) pursuant to a program under part 
                20 of such title, or by any other regulation or order.
            (2) Medical aid.--
                    (A) The Indian Health Care Improvement Act (25 
                U.S.C. 1601 et seq.) (relating to Indian health 
                services) is repealed.
                    (B) Title V of the Social Security Act (42 U.S.C. 
                701 et seq.) (relating to the Maternal and Child Health 
                Services Block Grant Program) is repealed.
                    (C) Section 329 of the Public Health Service Act 
                (42 U.S.C. 254b) (relating to migrant health centers) 
                is repealed.
                    (D) Section 330 of the Public Health Service Act 
                (42 U.S.C. 254c) (relating to community health centers) 
                is repealed.
            (3) Food aid.--
                    (A) The Food Stamp Act of 1977 (7 U.S.C. 2011 et 
                seq.) (relating to the food stamp program and the needy 
                families food distribution program) is repealed.
                    (B) The National School Lunch Act (42 U.S.C. 1751 
                et seq.) (relating to the school lunch program, the 
                child and adult care food program, and the summer food 
                service program) is repealed.
                    (C) The Emergency Food Assistance Act of 1983 
                (Public Law 98-8; 7 U.S.C. 612c note) (relating to the 
                emergency food assistance program) is repealed.
                    (D) Part C of title III of the Older Americans Act 
                of 1965 (42 U.S.C. 3030e et seq.) (relating to 
                nutrition services) is repealed.
                    (E) The Child Nutrition Act of 1966 (42 U.S.C. 1771 
                et seq.) (relating to the school breakfast program and 
                the special milk program) is repealed.
                    (F) The Agriculture and Consumer Protection Act of 
                1973 (Public Law 93-86; 7 U.S.C. 612c note) (relating 
                to the commodity supplemental food program for children 
                and elderly persons) is repealed.
            (4) Housing assistance.--
                    (A) Public housing, section 8 programs, assisted 
                housing, and indian housing.--The United States Housing 
                Act of 1937 (42 U.S.C. 1437 et seq.) (relating to 
                public housing, section 8 programs, assisted housing, 
                and Indian housing) is repealed.
                    (B) Rural housing assistance.--
                            (i) Section 502 of the Housing Act of 1949 
                        (42 U.S.C. 1472) (relating to rural housing 
                        loans for low-income families) is repealed.
                            (ii) Section 504 of the Housing Act of 1949 
                        (42 U.S.C. 1474) (relating to rural housing 
                        repair loan grants for very low-income rural 
                        homeowners) is repealed.
                            (iii) Section 514 of the Housing Act of 
                        1949 (42 U.S.C. 1484) (relating to farm labor 
                        housing loans) is repealed.
                            (iv) Section 515 of the Housing Act of 1949 
                        (42 U.S.C. 1485) (relating to rural rental 
                        housing loans) is repealed.
                            (v) Section 516 of the Housing Act of 1949 
                        (42 U.S.C. 1486) (relating to farm labor 
                        housing assistance) is repealed.
                            (vi) Section 521 of the Housing Act of 1949 
                        (42 U.S.C. 1490a) (relating to rural rental 
                        assistance) is repealed.
                            (vii) Section 523 of the Housing Act of 
                        1949 (42 U.S.C. 1490c) (relating to rural 
                        housing mutual and self-help technical 
                        assistance grants) is repealed.
                            (viii) Section 533 of the Housing Act of 
                        1949 (42 U.S.C. 1490m) (relating to rural 
                        housing preservation grants) is repealed.
                    (C) Other housing assistance.--
                            (i) Section 235 of the National Housing Act 
                        (12 U.S.C. 1715z) (relating to homeownership 
                        assistance for lower income families) is 
                        repealed.
                            (ii) Section 236 of the National Housing 
                        Act (12 U.S.C. 1715z-1) (relating to interest 
                        reduction payments) is repealed.
                            (iii) Section 101 of the Housing and Urban 
                        Development Act of 1965 (12 U.S.C. 1701s) 
                        (relating to rent supplements) is repealed.
                            (iv) Part 256 of title 25, Code of Federal 
                        Regulations (relating to Indian housing 
                        improvement grants) is repealed.
            (5) Energy aid.--
                    (A) The Low-Income Home Energy Assistance Act of 
                1981 (42 U.S.C. 8621 et seq.) (relating to home energy 
                assistance activities) is repealed.
                    (B) Part A of title IV of the Energy Conservation 
                and Production Act (42 U.S.C. 6861 et seq.) (relating 
                to weatherization assistance for low-income persons) is 
                repealed.
            (6) Education aid.--
                    (A) Subpart 1 of part A of title IV of the Higher 
                Education Act of 1965 (20 U.S.C. 1070a et seq.) 
                (relating to Federal Pell Grants) is repealed.
                    (B) Part A of title I of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6311 et 
                seq.) (relating to grants for improving basic programs 
                operated by local educational agencies) is repealed.
                    (C) Subpart 3 of part A of title IV of the Higher 
                Education Act of 1965 (20 U.S.C. 1070b et seq.) 
                (relating to Federal Supplemental Educational 
                Opportunity Grants) is repealed.
                    (D) Part C of title I of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6391 et 
                seq.) (relating to the education of migratory children) 
                is repealed.
                    (E) Chapter 1 of subpart 2 of part A of title IV of 
                the Higher Education Act of 1965 (20 U.S.C. 1070a-11 et 
                seq.) (relating to Federal TRIO programs) is repealed.
                    (F) Subpart 4 of part A of title IV of the Higher 
                Education Act of 1965 (20 U.S.C. 1070c et seq.) 
                (relating to Grants to States for State Student 
                Incentives) is repealed.
                    (G) Part A of title IX of the Higher Education Act 
                of 1965 (20 U.S.C. 1134a et seq.) (relating to Grants 
                to Institutions and Consortia to Encourage Women and 
                Minority Participation in Graduate Education) is 
                repealed.
            (7) Jobs and training aid.--
                    (A) Part A of title II of the Job Training 
                Partnership Act (29 U.S.C. 1601 et seq.) (relating to 
                an adult training program) is repealed.
                    (B) Part B of title II of the Job Training 
                Partnership Act (29 U.S.C. 1630 et seq.) (relating to a 
                summer youth employment and training program) is 
                repealed.
                    (C) Part B of title IV of the Job Training 
                Partnership Act (29 U.S.C. 1691 et seq.) (relating to 
                the Job Corps) is repealed.
                    (D) Title V of the Older Americans Act of 1965 (42 
                U.S.C. 3056 et seq.) (relating to an older American 
                community service employment program) is repealed.
                    (E) Part F of title IV of the Social Security Act 
                (42 U.S.C. 681 et seq.) (relating to the JOBS program) 
                is repealed.
                    (F) Part B of title II of the Domestic Volunteer 
                Service Act of 1973 (42 U.S.C. 5011) (relating to a 
                Foster Grandparent Program) is repealed.
                    (G) Part C of title II of the Domestic Volunteer 
                Service Act of 1973 (42 U.S.C. 5013) (relating to a 
                Senior Companion Program) is repealed.
                    (H) Part A of title IV of the Job Training 
                Partnership Act (29 U.S.C. 1671 et seq.) (relating to 
                employment and training programs for Native Americans 
                and migrant and seasonal farmworkers) is repealed.
                    (I) The Secretary of Labor may not, during fiscal 
                year 1996, or any fiscal year thereafter, conduct or 
                fund any employment and training program for Native 
                Americans (as such term is used under section 401 of 
                the Job Training Partnership Act (29 U.S.C. 1671)) that 
                is a program covered under item 16-0174-0-1-504 of the 
                budget of the President for fiscal year 1996 submitted 
                to the Congress pursuant to section 1108 of title 31, 
                United States Code.
            (8) Social services.--
                    (A) Title XX of the Social Security Act (42 U.S.C. 
                1397 et seq.) (relating to the Social Services Block 
                Grant) is repealed.
                    (B) The Community Services Block Grant Act (42 
                U.S.C. 9901 et seq.) (relating to community service 
                block grant programs) is repealed.
                    (C) The Legal Service Corporation Act (42 U.S.C. 
                2996 et seq.) (relating to legal assistance in 
                noncriminal proceedings or matters to persons 
                financially unable to afford legal assistance) is 
                repealed.
                    (D) Title III of the Stewart B. McKinney Homeless 
                Assistance Act (42 U.S.C. 11331 et seq.) (relating to 
                an emergency food and shelter program) is repealed.
                    (E) Title X of the Public Health Service Act (42 
                U.S.C. 300 et seq.) (relating to population research 
                and voluntary family planning programs) is repealed.
                    (F) The Domestic Volunteer Service Act of 1973 (42 
                U.S.C. 4950 et seq.) (relating to volunteer service 
                activities), other than parts B and C of title II of 
                such Act, is repealed.
                    (G) Part B of title III of the Older Americans Act 
                of 1965 (42 U.S.C. 3030d) (relating to supportive 
                services and senior centers) is repealed.
                    (H) Section 402(g) of the Social Security Act (42 
                U.S.C. 602(g)) (relating to day care assistance) is 
                repealed.
    (9) Assistance to low-income communities.--
                    (A) Title I of the Housing and Community 
                Development Act of 1974 (42 U.S.C. 5301 et seq.) 
                (relating to the community development block grants and 
                urban development action grants) is repealed.
                    (B) The Public Works and Economic Development Act 
                of 1965 (42 U.S.C. 3121 et seq.) (relating to the 
                Economic Development Administration) is repealed.
                    (C) The Appalachian Regional Development Act of 
                1965 (40 U.S.C. App.) (relating to the Appalachian 
                regional development program) is repealed.
                    (D) Section 204 of the Immigration Reform and 
                Control Act of 1986 (8 U.S.C. 1255a note) (relating to 
                State legalization impact assistance grants) is 
                repealed.
    (b) References in Other Laws.--Except as otherwise specifically 
provided in this Act, any reference in any law, regulation, document, 
paper, or other record of the United States to any provision that has 
been repealed by reason of the amendments made in subsection (a) shall, 
unless the context otherwise requires, be considered to be a reference 
to such provision, as in effect immediately before the date of the 
enactment of this Act.
    (c) Secretarial Submission of Legislative Proposal for Technical 
and Conforming Amendments.--The Secretary of Health and Human Services, 
the Secretary of Agriculture, the Secretary of Housing and Urban 
Development, the Secretary of Energy, the Secretary of Education, and 
the Secretary of Labor shall, within 90 days after the date of 
enactment of this Act, submit to the appropriate committees of 
Congress, a legislative proposal providing for such technical and 
conforming amendments in the law as are required by the provisions of 
this section.

SEC. 113. RAINY DAY FUND.

    A State that receives a grant under this subtitle for a fiscal year 
may expend such grant funds (in accordance with this subtitle) in such 
fiscal year or in any succeeding fiscal year.

SEC. 114. NO LIMITATION ON USE OF NON-FEDERAL FUNDS.

    Nothing in this Act shall be construed as limiting a State from 
expending non-Federal funds in any manner that the State deems 
appropriate.
SEC. 115. SUBSTANTIAL NONCOMPLIANCE.

    If the Secretary of Health and Human Services (hereafter in this 
section referred to as the ``Secretary'') determines that a State is in 
substantial noncompliance with the requirements of this subtitle in a 
fiscal year, the Secretary shall reduce the amount to be paid to such 
State under this subtitle for the succeeding fiscal year by an amount 
equal to one-half of the amount that the State received in the fiscal 
year in which the State failed to substantially comply.

SEC. 116. REPORTING REQUIREMENTS.

    Not later than January 1, 1997, and each January 1 thereafter, each 
State receiving a grant under this subtitle shall submit to the 
Secretary a report including--
            (1) an accurate estimate of total State expenditures on all 
        State programs providing means-tested assistance in the 
        preceding fiscal year; and
            (2) the average monthly number of individuals in the State 
        receiving assistance under one or more of the following 
        programs in the preceding fiscal year:
                    (A) The medicaid program operated in accordance 
                with the State plan approved under title XIX of the 
                Social Security Act.
                    (B) Any program operated by the State that uses 
                grant funds received by the State under this subtitle.
                    (C) Any other means-tested program operated by the 
                State that receives Federal or State funds.

SEC. 117. ELIGIBILITY UNDER THE MEDICAID PROGRAM.

    (a) In General.--Section 1902(a)(10)(A)(i)(I) of the Social 
Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(I)) is amended to read as 
follows:
                                    ``(I)(aa) who are receiving aid or 
                                assistance under any plan of the State 
                                approved under title I, X, or XIV, or
                                    ``(bb) who would be eligible to 
                                receive aid or assistance under the 
                                State's plan under title XVI or part A 
                                or E of title IV, as approved on the 
                                day before the date of the enactment of 
                                the Real Welfare Reform Act of 1995, if 
                                such plan were in effect,''.
    (b) State Waiver.--A State may request a waiver from the Secretary 
of Health and Human Services to simplify the medicaid program 
eligibility criteria set forth in section 1902(a)(10)(A)(i)(I)(bb) of 
the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(I)(bb)). The 
Secretary shall review any such waiver request and grant approval only 
if Federal expenditures under the medicaid program will not be 
increased as a result of such approval.
  TITLE II--WORK PROGRAM-RELATED REQUIREMENTS ON STATES IN EXPENDING 
                       CERTAIN BLOCK GRANT FUNDS

SEC. 201. DEFINITIONS.

    For purposes of this title and titles III and IV:
            (1) AFDC equivalent dependent child.--The term ``AFDC 
        equivalent dependent child'' means a dependent child member of 
        a family that would have been eligible to receive aid to 
        families with dependent children under the State plan under 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.) (as in effect on the day before the date of the enactment 
        of this Act).
            (2) AFDC equivalent family.--The term ``AFDC equivalent 
        family'' means a family that would have been eligible to 
        receive aid to families with dependent children under the State 
        plan under part A of title IV of the Social Security Act (42 
        U.S.C. 601 et seq.) (as in effect on the day before the date of 
        the enactment of this Act).
            (3) AFDC-UP equivalent family.--The term ``AFDC-UP 
        equivalent family'' means a family that would have been 
        eligible to receive aid to families with dependent children 
        under the State plan under part A of title IV of the Social 
        Security Act (42 U.S.C. 601 et seq.) (as in effect on the day 
        before the date of the enactment of this Act) by reason of the 
        unemployment of the parent who is the principal earner.
            (4) Direct food assistance.--The term ``direct food 
        assistance''--
                    (A) includes--
                            (i) cash aid intended for the purchase of 
                        food;
                            (ii) food coupons; and
                            (iii) electronic transfer of funds; and
                    (B) does not include--
                            (i) any food assistance provided to a child 
                        in connection with school attendance; or
                            (ii) directly distributed food commodities.
            (5) Food stamp equivalent household.--The term ``food stamp 
        equivalent household'' means a household that would have been 
        eligible to receive food stamps under the food stamp program 
        established under section 4 of the Food Stamp Act of 1977 (42 
        U.S.C. 2013) (as in effect on the day before the date of the 
        enactment of this Act).
            (6) Public housing equivalent family.--The term ``public 
        housing equivalent family'' means a family that would have been 
        eligible to receive assistance under title I of the United 
        States Housing Act of 1937 (42 U.S.C. 1437 et seq.) (as in 
        effect on the day before the date of the enactment of this 
        Act).
            (7) SSI equivalent individual.--The term ``SSI equivalent 
        individual'' means an individual who would have been eligible 
        to receive supplemental security income under title XVI of the 
        Social Security Act (42 U.S.C. 1381 et seq.) (as in effect on 
        the day before the date of the enactment of this Act).

         Subtitle A--Workfare and Dependency Reduction Program

SEC. 211. PURPOSE OF PROGRAM.

    It is the purpose of a program operated in accordance with this 
subtitle to reduce welfare dependence and ensure that individuals who 
are receiving welfare assistance contribute services to their 
communities in exchange for such assistance.

SEC. 212. REQUIREMENT TO OPERATE A WORKFARE AND DEPENDENCY REDUCTION 
              PROGRAM.

    (a) AFDC Equivalent Populations.--
            (1) Establishment of program.--If a State uses grant funds 
        received under subtitle B of title I of this Act to provide 
        direct cash assistance to a population that is described under 
        subparagraph (A) or (B) of paragraph (2), the State shall 
        establish and operate a workfare and dependency reduction 
        program (in this subtitle referred to as the ``program'') in 
        accordance with this subtitle, and shall apply the requirements 
        of this subtitle with respect to each such population.
            (2) Populations described.--The populations described in 
        this paragraph are--
                    (A) parents in an AFDC-UP equivalent family; and
                    (B) adult recipients in a single adult AFDC 
                equivalent family.
            (3) Definitions.--For purposes of this subtitle:
                    (A) Adult recipient.--
                            (i) In general.--Except as provided in 
                        clause (ii), the term ``adult recipient'' means 
                        an individual who is a member of a single adult 
                        AFDC equivalent family.
                            (ii) Individuals excluded.--The term 
                        ``adult recipient'' shall not include--
                                    (I) a dependent child (unless such 
                                child is the custodial parent of 
                                another dependent child); or
                                    (II) any parent who is described in 
                                paragraph (2)(A).
                    (B) Single-adult afdc equivalent family.--The term 
                ``single-adult AFDC equivalent family'' means an AFDC 
                equivalent family which includes one adult recipient 
                and at least one dependent child.
    (b) Noncustodial Parents.--
            (1) Establishment of program.--If a State uses grant funds 
        received under subtitle B of title I of this Act to provide 
        direct cash or food assistance to a population of AFDC 
        equivalent dependent children, the State shall establish and 
        operate a program in accordance with this subtitle, and shall 
        apply the requirements of this subtitle with respect to the 
        population described in paragraph (2).
            (2) Noncustodial parent population.--The population 
        described in this paragraph is the population of individuals--
                    (A) who are the noncustodial parents of AFDC 
                equivalent dependent children;
                    (B) who reside in the State;
                    (C) whose place of residence or employment is known 
                by the State; and
                    (D) who are known by the State to have failed to 
                pay required child support on behalf of such a child.

SEC. 213. PROGRAM PARTICIPATION REQUIREMENTS.

    (a) Participation Requirements for Unemployed Parents.--
            (1) Participation requirement for individuals.--
                    (A) In general.--In the case of any AFDC-UP 
                equivalent family, the State shall require one parent 
                to participate in one or a combination of the 
                activities described in subparagraph (B) for at least 
                40 hours per week.
                    (B) Activities described.--The activities described 
                in this subparagraph include--
                            (i) the community work service program 
                        described in section 214;
                            (ii) the benefits to wages program 
                        described in section 215;
                            (iii) nonsubsidized employment as described 
                        in subsection (c)(5)(B); and
                            (iv) supervised job search for not more 
                        than 8 hours per week.
            (2) Participation rate requirement for states.--With 
        respect to individuals described in paragraph (1), each State 
        shall maintain a participation rate (as determined under 
        subsection (d)(1)) of 95 percent for quarters during fiscal 
        year 1996 and each fiscal year thereafter.
    (b) Participation Requirement for Certain Noncustodial Parents.--
            (1) Participation requirement for individuals.--
                    (A) In general.--A State shall require any 
                individual described in section 212(b)(2) to 
                participate in a State community work service program 
                described in section 214 in accordance with 
                subparagraph (B).
                    (B) Participation requirements.--If an individual 
                described in section 212(b)(2)--
                            (i) is employed, such individual shall be 
                        required to work under the State community work 
                        service program for not less than 16 hours per 
                        week; or
                            (ii) is unemployed, such individual shall 
                        be required to--
                                    (I) work under the State community 
                                work service program for not less than 
                                24 hours per week; and
                                    (II) conduct job search activities 
                                for not less than 16 hours per week.
            (2) Participation requirement for states.--With respect to 
        individuals described in paragraph (1), each State shall 
        maintain a participation rate (as determined under subsection 
        (d)(2)) of 50 percent for quarters during fiscal year 1996 and 
        each fiscal year thereafter.
    (c) Participation Requirement for Adult Recipients in Single-Adult 
Families.--
            (1) Participation requirement for individuals.--Except as 
        provided in subsection (a), the State shall require each 
        individual described in section 212(a)(2)(B) to participate 
        in--
                    (A) the State community work service program 
                described in section 214 for not less than 30 hours per 
                week;
                    (B) the benefits to wages program described in 
                section 215 for not less than 30 hours per week; or
                    (C) any combination of the community work service 
                program described in section 214, the benefits to wages 
                program described in section 215, or nonsubsidized 
                employment described in paragraph (5)(B) for not less 
                than 30 hours per week.
            (2) Participation requirement on states.--With respect to 
        individuals described in paragraph (1), each State shall 
        maintain a participation rate (as determined under subsection 
        (d)(3)) of--
                    (A) 25 percent for calendar quarters during fiscal 
                years 1996 and 1997; and
                    (B) 50 percent for calendar quarters during fiscal 
                year 1998 and each fiscal year thereafter.
            (3) Work priority for families with older children.--
                    (A) In general.--If a single-adult family includes 
                at least one dependent child under age 5, the adult 
                recipient in such family shall not be required to 
                participate in the program under paragraph (1) unless 
                at least 80 percent of all adult recipients in single-
                adult families which do not include children under age 
                5 are participating in the program. The previous 
                sentence shall not apply with respect to an individual 
                to whom the State has applied educational requirements 
                in accordance with the recommendation under section 
                401.
                    (B) Family status.--Beginning on the date which is 
                10 months after the date of the enactment of this Act, 
                a family that has received direct cash or food 
                assistance from grant funds received by the State under 
                subtitle B of title I of this Act and which after the 
                date which is 10 months after the date of the enactment 
                of this Act is classified by a State as a single-adult 
                family that does not include any children under age 5 
                shall continue to be so classified regardless of 
                whether an additional child under age 5 becomes a 
                member of the family.
            (4) State option to provide educational activities or job 
        skills training program.--A State may require not more than 30 
        percent of the adult recipients required to participate in the 
        program under paragraph (2), on average during any quarter, to 
        engage in educational or job skills training.
            (5) Nonsubsidized employment countable as participation.--
                    (A) In general.--An adult recipient may satisfy 
                part or all of the 30-hour per week work requirement 
                under paragraph (1)(A) by working in nonsubsidized 
                employment.
                    (B) Nonsubsidized employment.--For purposes of 
                subparagraph (A), the term ``nonsubsidized employment'' 
                means employment with a private employer for wages.
    (d) Determination of Participation Rates.--
            (1) Unemployed parents.--A State's participation rate for 
        purposes of subsection (a)(2) shall be the number, expressed as 
        a percentage, equal to--
                    (A) the average weekly number of individuals 
                described in subsection (a)(1) who participated in the 
                program under this subtitle during such quarter, 
                divided by
                    (B) the average weekly number of AFDC-UP equivalent 
                families who received direct cash assistance from grant 
                funds received by the State under subtitle B of title I 
                of this Act during such quarter.
            (2) Noncustodial parents.--A State's participation rate for 
        purposes of subsection (b)(2) shall be the number, expressed as 
        a percentage, equal to--
                    (A) the average weekly number of individuals 
                described in subsection (b)(1) who participated in the 
                program under this subtitle during such quarter, 
                divided by
                    (B) the average weekly number of individuals 
                described in section 212(b)(2) who are the parents of 
                AFDC equivalent children who received direct cash or 
                food assistance from grant funds received by the State 
                under subtitle B of title I of this Act during such 
                quarter.
            (3) Adult recipients in single-adult families.--
                    (A) In general.--A State's participation rate for 
                purposes of subsection (c)(2) shall be the number, 
                expressed as a percentage, equal to the sum of--
                            (i) the percentage determined under 
                        subparagraph (B), and
                            (ii) in calendar quarters beginning in 
                        fiscal year 1997 and each calendar quarter 
                        thereafter, the percentage determined under 
                        subparagraph (C).
                    (B) Participation in program.--The percentage 
                determined under this subparagraph is the number, 
                expressed as a percentage, equal to--
                            (i) the average weekly number of 
                        individuals described in subsection (c)(1) who 
                        participated in the program under this subtitle 
                        during such quarter, divided by
                            (ii) the average weekly number of adult 
                        recipients in single adult AFDC equivalent 
                        families who received direct cash assistance 
                        from grant funds received by the State under 
                        subtitle B of title I of this Act.
                    (C) Reduction in caseload.--
                            (i) In general.--The percentage determined 
                        under this subparagraph is the number, 
                        expressed as a percentage, equal to 100 percent 
                        minus the reduction percentage determined under 
                        clause (ii).
                            (ii) Reduction percentage.--The reduction 
                        percentage determined under this clause is the 
                        number, expressed as a percentage, equal to--
                                    (I) the average weekly number of 
                                single-adult AFDC equivalent families 
                                who received direct cash assistance 
                                from grant funds received by the State 
                                under subtitle B of title I of this Act 
                                during such quarter, divided by
                                    (II) the average weekly number of 
                                single-adult AFDC equivalent families 
                                who received aid to families with 
                                dependent children under the State plan 
                                under title IV of the Social Security 
                                Act in the 24-month period ending on 
                                the day before the date of the 
                                enactment of this Act.
                            (iii) No penalty for increase in 
                        caseload.--Notwithstanding any other provision 
                        of this paragraph, if the number described 
                        under subclause (I) of clause (ii) is greater 
                        than the number described in subclause (II) of 
                        such clause, the percentage under this 
                        subparagraph shall be zero.
                            (iv) Certain reduction in caseload not 
                        counted.--Notwithstanding any other provision 
                        of this paragraph, a State's reduction 
                        percentage determined under clause (ii) shall 
                        not take into account any difference between 
                        the number determined under subclause (I) of 
                        such clause and the number determined under 
                        subclause (II) of such clause if such 
                        difference is attributable to--
                                    (I) the application of section 311 
                                to certain AFDC equivalent families; or
                                    (II) any other provision of Federal 
                                law which has the effect of making an 
                                AFDC equivalent family ineligible for 
                                direct cash assistance from grant funds 
                                received by the State under subtitle B 
                                of title I of this Act.

SEC. 214. COMMUNITY WORK SERVICE PROGRAM.

    (a) In General.--Each State that is required to operate a workfare 
and dependency reduction program under this subtitle shall establish a 
community work service program.
    (b) Program Described.--An individual participating in a State 
community work service program shall--
            (1) work for a public or nonprofit private sector 
        organization performing such tasks as determined appropriate by 
        such organization; or
            (2) perform work which serves the general public interest 
        in a for-profit private sector organization.
    (c) Benefits Based on Performance.--If an individual fails to meet 
the participation requirements imposed on such individual under section 
213 with respect to a State community work service program due to an 
unexcused absence, the amount of direct cash and food assistance from 
grant funds received by the State under subtitle B of title I of this 
Act under the program to be received by the family of the individual 
participating in the program shall be reduced at least pro rata by the 
number of hours of uncompleted work or job search under such program.
    (d) Job Search.--At the option of the State, an individual 
participating in the State community work service program may satisfy 
the applicable participation requirement under subsections (a)(1), 
(b)(1), or (c)(1) of section 213 during the 6-week period beginning on 
the date that an individual begins participation in the program if the 
individual engages in intensive supervised job search or supervised 
activities to improve job search and job readiness skills during such 
period.
    (e) Encouragement To Provide Child Care Services.--An individual 
participating in a State community work service program may satisfy the 
applicable participation requirement under subsection (c)(1)(A) of 
section 213 if such individual provides child care services to other 
individuals participating in the program in the manner, and for the 
period of time each week, determined appropriate by the State.
    (f) Modification to Payment Schedule for Participants.--States are 
encouraged to provide payments of aid under the program to the family 
of an individual participating in a State community work service 
program on a biweekly basis.

SEC. 215. BENEFITS TO WAGES PROGRAM.

    (a) In General.--Each State that is required to operate a workfare 
and dependency reduction program under this subtitle shall establish a 
benefits to wages program in accordance with this section.
    (b) Program Described.--
            (1) In general.--Under a State benefits to wages program, 
        an individual described in paragraph (2) shall work for a 
        qualified employer (as defined in subsection (d)) and the State 
        shall pay a wage subsidy in the amount determined by the State 
        to such employer on behalf of such individual. Such wage 
        subsidy shall be in lieu of all or part of any direct cash 
        assistance and food assistance that the individual would 
        receive from grant funds received by the State under subtitle B 
        of title I of this Act which the individual would otherwise be 
        eligible to receive.
            (2) Individual described.--An individual described in this 
        paragraph is an individual who--
                    (A) is a parent in an AFDC-UP equivalent family 
                (described in section 211(a)(2)(A)); or
                    (B) is an adult recipient in a single adult AFDC 
                equivalent family (described in section 211(a)(2)(B)).
    (c) Wage Subsidy.--
            (1) Amount.--The amount of the wage subsidy for an 
        individual for a month shall be any amount determined 
        appropriate by the State.
            (2) Use of block grant funds.--The wage subsidy may be paid 
        from the grant funds received by the State under subtitle B of 
        title I of this Act.
    (d) Qualified Employer.--
            (1) In general.--For purposes of this section, an employer 
        is qualified to receive a wage subsidy under this subsection 
        if--
                    (A) the employer is a public or private entity; and
                    (B) the employer is approved by the State to 
                participate in its benefits to wages program.
            (2) Wage amount.--A qualified employer shall pay an 
        individual participating in the benefits to wages program an 
        amount equal to the sum of--
                    (A) the wage subsidy determined under subsection 
                (c); and
                    (B) at the option of the employer, an additional 
                amount to be determined by the employer.
    (e) Treatment of Wages.--Under the State benefits to wages program, 
wages paid to an individual by a qualified employer shall be considered 
earned income for purposes of any provision of law, except that such 
wages shall not be taken into account in determining the eligibility of 
such individual for medical assistance under a State plan under title 
XIX (42 U.S.C. 1396 et seq.).
    (f) Individual Option To Use Vouchers.--
            (1) In general.--
                    (A) Option permitted.--If an unemployed parent 
                described in section 211(a)(2)(A) or an adult parent in 
                a single adult family described in section 211(a)(2)(B) 
                is required by a State to participate in the State 
                benefits to wages program such individual shall have an 
                option to participate in such program using a voucher 
                (in the amount determined under subparagraph (B)) that 
                is payable to an employer selected by the individual 
                which employs the individual.
                    (B) Amount of voucher.--For purposes of 
                subparagraph (A), the amount of a voucher shall be an 
                amount equivalent to the amount of the wage subsidy 
                described in subsection (c).
            (2) State option regarding placement of individuals in 
        benefits to wages program.--States are encouraged to conduct a 
        job placement program under which the State contracts with 
        private entities to place individuals described in paragraph 
        (1) with qualified employers under the benefits to wages 
        program.
    (g) Supplemental Payment.--
            (1) In general.--The Secretary of Health and Human Services 
        shall, subject to appropriations Acts, make quarterly payments 
        to in the amount determined under paragraph (2) to each State 
        operating a benefits to wages program in accordance with this 
        subsection.
            (2) Amount determined.--The amount determined under this 
        paragraph is a dollar amount equal to the product of--
                    (A) the average quarterly number of individuals 
                enrolled in the State's benefits to wages program; and
                    (B) $100.
            (3) Used for low-income assistance.--A State shall use any 
        payment received under this subsection to provide aid to low-
        income households (as defined in section 111(b)(2)).
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary to carry out 
        the provisions of this subsection.
    (h) Amendments Regarding Earned Income Tax Credit.--
            (1) In general.--Subsection (e) of section 3507 of the 
        Internal Revenue Code of 1986 (relating to earned income 
        eligibility certificates) is amended by adding at the end the 
        following new paragraph:
            ``(6) Special rule with respect to certain employees.--An 
        employer shall obtain an earned income eligibility certificate 
        from each employee who is employed by such employer under the 
        benefits to wages program operated in accordance with section 
        215 of the Real Welfare Reform Act of 1995.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to taxable years beginning after December 31, 1995.

SEC. 216. PENALTIES RELATING TO NONCUSTODIAL PARENTS.
    (a) Penalty for Certain Noncustodial Parents.--
            (1) In general.--If an individual described in section 
        213(b)(1) knowingly and willfully fails to participate in a 
        State community work service program in accordance with such 
        section, such individual shall be subject to imprisonment in 
        accordance with State law.
            (2) State assurances.--Each State operating a program under 
        this subtitle shall provide assurances satisfactory to the 
        Secretary of Health and Human Services that the State has in 
        effect laws providing for the imprisonment of any individual 
        who fails to comply with section 213(b)(1) for a term 
        determined appropriate by the State.
    (b) No Penalties Against Family for Noncompliance of Noncustodial 
Parent.--No penalty shall be imposed under section 214(e) against a 
family receiving direct cash assistance from grant funds received by 
the State under subtitle B of title I of this Act in the case of a 
noncustodial parent's failure to comply with section 213(b).

SEC. 217. WORK REQUIREMENTS ELIMINATED FOR GROUPS WHICH NO LONGER 
              RECEIVE BENEFITS.

    (a) In General.--If a State ceases to provide direct cash 
assistance to a subgroup of a population that is described in section 
211(a)(2), the State shall not be required to apply the requirements of 
this subtitle to such subgroup.
    (b) Noncustodial Parents.--If a State ceases to provide direct cash 
assistance to a subgroup of a population that is described in section 
201(1), the State shall not be required to apply the requirements of 
the subtitle with respect to the applicable subgroups of the population 
described in section 211(b)(2).
   Subtitle B--Work Requirement for Food Stamp Equivalent Households

SEC. 221. WORK REQUIREMENT FOR ABLE-BODIED NONPARENTS IN FOOD STAMP 
              EQUIVALENT HOUSEHOLDS.

    (a) In General.--If a State uses grant funds received under 
subtitle B of title I of this Act to provide direct food assistance 
during a fiscal year to a population of food stamp equivalent 
households, the State shall require members of such a population to 
perform successfully at least 32 hours of work per month on behalf of a 
State or a political subdivision of a State through a program 
established by the State or political subdivision prior to the 
furnishing of direct food assistance for such month.
    (b) Exemptions From Requirement.--A member of a population 
described in subsection (a) shall be exempt from the requirements of 
subsection (a) if the member is--
            (1) a parent residing with a dependent child under 18 years 
        of age;
            (2) a member of a household with responsibility for the 
        care of an incapacitated person;
            (3) mentally or physically unfit;
            (4) under 18 years of age; or
            (5) 63 years of age or older.

SEC. 222. WORK REQUIREMENTS ELIMINATED FOR GROUPS WHICH NO LONGER 
              RECEIVE BENEFITS.

    If a State ceases to provide direct food assistance to a subgroup 
of a population that is a subgroup of the food stamp equivalent 
household population, the State shall not be required to apply the 
requirements of this subtitle with respect to such subgroup.

              Subtitle C--Evaluation of Training Programs

SEC. 231. EVALUATION OF TRAINING PROGRAMS.

    A State that uses grant funds received under subtitle B of title I 
of this Act to provide assistance to low-income households shall 
conduct ongoing evaluations of job training programs. Such evaluations 
shall--
            (1) be conducted through experiments using control groups 
        chosen by scientific random assignment; and
            (2) determine whether job training programs effectively 
        raise the hourly wage rates of individuals receiving training 
        through such programs.

                     TITLE III--PROMOTING FAMILIES

SEC. 301. SENSE OF THE CONGRESS.

    It is the sense of the Congress that--
            (1) marriage is the foundation of a successful society;
            (2) marriage is an essential social institution which 
        promotes the interests of children and society at large;
            (3) the negative consequences of an out-of-wedlock birth on 
        the child, the mother, and society are well documented as 
        follows:
                    (A) the illegitimacy rate among black Americans was 
                26 percent in 1965, but today the rate is 68 percent 
                and climbing;
                    (B) the illegitimacy rate among white Americans has 
                risen tenfold, from 2.29 percent in 1960 to 22 percent 
                today;
                    (C) the total of all out-of-wedlock births between 
                1970 and 1991 has risen from 10 percent to 30 percent 
                and if the current trend continues, 50 percent of all 
                births by the year 2015 will be out-of-wedlock;
                    (D) 82 percent of illegitimate births among whites 
                are to women with a high school education or less;
                    (E) the one-parent family is six times more likely 
                to be poor than the two-parent family;
                    (F) children born into families receiving welfare 
                assistance are three times more likely to be on welfare 
                when they reach adulthood;
                    (G) teenage single parent mothering is the single 
                biggest contributor to low birth weight babies;
                    (H) children born out-of-wedlock are more likely to 
                experience low verbal cognitive attainment, child 
                abuse, and neglect;
                    (I) young people from single parent or stepparent 
                families are two-to-three times more likely to have 
                emotional or behavioral problems than those from intact 
                families;
                    (J) young white women who were raised in a single 
                parent family are 164 percent more likely to have 
                children out-of-wedlock, 111 percent more likely to 
                become parents as teenagers, and 92 percent more likely 
                to have their marriages end in divorce;
                    (K) the younger the single parent mother, the less 
                likely she is to finish high school;
                    (L) young women who have children before finishing 
                high school are more likely to receive welfare 
                assistance for a longer period of time;
                    (M) between 1985 and 1990, the public cost of 
                births to teenage mothers under the aid to families 
                with dependent children program, the food stamp 
                program, and the medicaid program has been estimated at 
                $120,000,000,000;
                    (N) the absence of a father in the life of a child 
                has a negative effect on school performance and peer 
                adjustment;
                    (O) the likelihood that a young black man will 
                engage in criminal activities doubles if he is raised 
                without a father and triples if he lives in a 
                neighborhood with a high concentration of single parent 
                families; and
                    (P) the greater the incidence of single parent 
                families in a neighborhood, the higher the incidence of 
                violent crime and burglary; and
            (4) in light of this demonstration of the crisis in our 
        Nation, the reduction of out-of-wedlock births is an important 
        government interest and the policy contained in provisions of 
        this title addresses the crisis.

     Subtitle A--Eligibility for Certain Welfare Block Grant Funds

SEC. 311. DENIAL OF CERTAIN ASSISTANCE FOR CERTAIN YOUNG UNWED PARENTS 
              AND THEIR CHILDREN.

    (a) Denial of Certain Assistance.--
            (1) In general.--Except as provided in subsection (b), if a 
        child is born to an individual who is a member of the 
        population described in paragraph (2), a State shall not 
        provide direct cash assistance, direct food assistance, or 
        direct housing assistance from grant funds received by the 
        State under subtitle B of title I of this Act with respect to 
        the child, the custodial parent of the child, and subsequent 
        children born out-of-wedlock to the custodial parent of the 
        child.
            (2) Population described.--The population described in this 
        paragraph is the population of individuals who are unmarried 
        and who have not exceeded age 21 (or another age that is 
        greater than 21, as determined appropriate by the State).
    (b) Exceptions.--Subsection (a) shall not apply--
            (1) if, after the birth of the child--
                    (A) the custodian of the child marries an 
                individual who assumes lawful paternity or permanent 
                legal guardianship and financial responsibility for the 
                child; or
                    (B) the child is legally adopted;
            (2) if the parents of the dependent child were married 
        during the 10-month period preceding the birth of the child and 
        1 parent died prior to the birth of the child; or
            (3) with respect to the child after the child has attained 
        age 18.
    (c) Effective Date.--This section shall apply with respect to 
children born on or after the date that is 1 year after the date of the 
enactment of this Act.

SEC. 312. BENEFIT PROVISIONS REGARDING ADDITIONAL CHILDREN.

    (a) Elimination of Certain Assistance to Certain Individuals.--If a 
State provides direct cash assistance or food assistance to a 
population of AFDC equivalent families from grant funds received by the 
State under subtitle B of title I of this Act, such assistance shall 
not be payable with respect to a child in such population if the 
custodial parent of the child was, at the time of the child's birth--
            (1) a recipient of such assistance; or
            (2) an individual who received such assistance anytime 
        during the 10-month period ending with the birth of the child.
    (b) Exception.--Subsection (a) shall not apply with respect to a 
child after the child has attained age 18.
    (c) Effective Date.--This section shall apply with respect to 
children born on or after the date that is 1 year after the date of the 
enactment of this Act.

SEC. 313. PROVISIONS RELATING TO PATERNITY ESTABLISHMENT.

    (a) In General.--
            (1) Paternity not established.--Except as provided in 
        subsection (b), if a State provides the assistance described in 
        paragraph (2), the State shall provide that if a family 
        applying for such assistance includes a child who has not 
        attained age 18 and who was born on or after January 1, 1995, 
        with respect to whom paternity has not been established, such 
        assistance shall not be available for--
                    (A) such child (until the child attains age 18); 
                and
                    (B) the parent or caretaker relative of such child 
                if the parent or caretaker relative of such child is 
                not the parent or caretaker relative of another child 
                for whom aid is available.
            (2) Assistance described.--The assistance described in this 
        paragraph is direct cash assistance, direct food assistance, or 
        direct housing assistance from grant funds received by the 
        State under subtitle B of title I of this Act.
    (b) Exceptions.--Notwithstanding subsection (a)--
            (1) the State may use grant funds received by the State 
        under subtitle B of title I of this Act to provide direct cash 
        assistance, direct food assistance, and direct housing 
        assistance to a dependent child who is up to 6 months of age 
        for whom paternity has not been established if the parent or 
        caretaker relative of the child provides the name, address, and 
        such other identifying information as the State may require of 
        an individual who may be the father of the child; and
            (2) the State may exempt up to 15 percent of all families 
        in the population described in subsection (a) applying for 
        direct cash assistance, direct food assistance, and direct 
        housing assistance from grant funds received by the State under 
        subtitle B of title I of this Act which include a child who was 
        born on or after January 1, 1995, and with respect to whom 
        paternity has not been established, from the reduction imposed 
        under subsection (a).
    (c) Provision of Aid in Violation of Paternity Establishment 
Requirements.--If a State expends funds in violation of the 
requirements of subsection (a) in any fiscal year but such expenditures 
do not constitute a failure to comply substantially with the 
requirements of this Act, the Secretary of Health and Human Services 
shall reduce the amount to be paid to such State under subtitle B of 
title I of this Act for the succeeding fiscal year by an amount equal 
to the amount of funds misused by such State.

Subtitle B--Additional Earned Income Tax Credit for Married Individuals

SEC. 321. ADDITIONAL EARNED INCOME CREDIT FOR MARRIED INDIVIDUALS.

    (a) In General.--Paragraph (1) of section 32(a) of the Internal 
Revenue Code of 1986 (relating to earned income credit) is amended to 
read as follows:
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by this subtitle for the taxable year 
        an amount equal to the sum of--
                    ``(A) in the case of an eligible individual, an 
                amount equal to the credit percentage of so much of the 
                taxpayer's earned income for the
                 taxable year as does not exceed the earned income 
amount, and
                    ``(B) in the case of an eligible married 
                individual, the applicable percentage of $1,000.''
    (b) Applicable Percentage.--Section 32(b) of the Internal Revenue 
Code of 1986 (relating to percentages and amounts) is amended by adding 
at the end the following new paragraph:
            ``(3) Applicable percentage.--The applicable percentage for 
        any taxable year is equal to 100 percent reduced (but not below 
        zero percent) by 10 percentage points for each $1,000 (or 
        fraction thereof) by which the taxpayer's earned income for 
        such taxable year exceeds $16,000.''
    (c) Eligible Married Individuals.--Section 32(c) of the Internal 
Revenue Code of 1986 (relating to definitions and special rules) is 
amended by adding at the end the following new paragraph:
            ``(4) Eligible married individual.--The term `eligible 
        married individual' means an eligible individual (determined 
        without regard to paragraph (1)(A)(ii))--
                    ``(A) who is married (as defined in section 7703) 
                and who has lived together with the individual's spouse 
                at all times during such marriage during the taxable 
                year, and
                    ``(B) has earned income for the taxable year of at 
                least $8,500.''
    (d) Conforming Amendments.--
            (1) Section 32(a)(2) of the Internal Revenue Code of 1986 
        is amended by striking ``paragraph (1)'' and inserting 
        ``paragraph (1)(A)''.
            (2) Section 32(i) of such Code is amended to read as 
        follows:
    ``(i) Inflation Adjustments.--
            ``(1) In general.--In the case of any taxable year 
        beginning after the applicable calendar year, each dollar 
        amount referred to in paragraph (2)(B) shall be increased by an 
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3), for the calendar year in which 
                the taxable year begins, by substituting for `calendar 
                year 1992' in subparagraph (B) thereof--
                            ``(i) `calendar year 1993' in the case of 
                        the dollar amounts referred to in paragraph 
                        (2)(B)(i), and
                            ``(ii) `calendar year 1995' in the case of 
                        the dollar amounts referred to in paragraph 
                        (2)(B)(ii).
            ``(2) Definitions, etc.--For purposes of paragraph (1)--
                    ``(A) Applicable calendar year.--The term 
                `applicable calendar year' means--
                            ``(i) 1994 in the case of the dollar 
                        amounts referred to in paragraph (2)(B)(i), and
                            ``(ii) 1996 in the case of the dollar 
                        amounts referred to in paragraph (2)(B)(ii).
                    ``(B) Dollar amounts.--The dollar amounts referred 
                to in this subparagraph are--
                            ``(i) each dollar amount contained in 
                        subsection (b)(2)(A), and
                            ``(ii) the $16,000 amount contained in 
                        subsection (b)(3) and the dollar amount 
                        contained in subsection (c)(4)(B).
            ``(3) Rounding.--If any dollar amount after being increased 
        under paragraph (1) is not a multiple of $10, such dollar 
        amount shall be rounded to the nearest multiple of $10 (or, if 
        such dollar amount is a multiple of $5, such dollar amount 
        shall be increased to the next higher multiple of $10).''
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

             Subtitle C--Expansion of Abstinence Education

SEC. 331. ABSTINENCE EDUCATION GRANTS.

    (a) Educational Programs.--
            (1) In general.--The Secretary of Health and Human Services 
        shall make grants to States and public and private entities for 
        the purpose of establishing educational programs beginning in 
        the sixth grade or later that emphasize the social, 
        psychological, and health gains to be derived by abstaining 
        from sexual activity while unmarried.
            (2) At-risk programs.--In establishing programs in 
        accordance with paragraph (1), States are encouraged to 
        experiment with programs which provide young women at high risk 
        of teenage pregnancy with rewards for avoiding pregnancy.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated $100,000,000 in fiscal year 1996, and $100,000,000 in each 
fiscal year thereafter to carry out the provisions of this section.
                       TITLE IV--RECOMMENDATIONS

SEC. 401. EDUCATIONAL ACTIVITIES FOR CUSTODIAL PARENTS UNDER 19 YEARS 
              OF AGE.

    (a) In General.--The Congress recommends that if a State provides 
direct cash assistance to an individual described in subsection (b) 
from grant funds received by the State under subtitle B of title I of 
this Act--
            (1) the State require such individual to participate in an 
        educational activity; and
            (2) at the State's option, the State may require--
                    (A) the individual described in subsection (b) to 
                participate in educational activities directed toward 
                the attainment of a high school diploma or its 
                equivalent on a full-time basis (as defined by the 
                educational provider); or
                    (B) the individual described in subsection (b) to 
                participate in training or work activities (in lieu of 
                the educational activities referred to in paragraph 
                (1)) if such parent fails to make good progress in 
                successfully completing such educational activities, or 
                if it is determined (prior to any assignment of the 
                individual to such educational activities) pursuant to 
                an educational assessment that participation in such 
                educational activities is inappropriate for such 
                parent.
    (b) Individual Described.--An individual described in this 
subsection is an individual who--
            (1) is a member of an AFDC equivalent family;
            (2) is a custodial parent;
            (3) has not attained 19 years of age; and
            (4) has not successfully completed a high school education 
        (or its equivalent).

SEC. 402. RECOMMENDATION THAT CERTAIN APPLICANTS FOR ASSISTANCE CONDUCT 
              JOB SEARCH ACTIVITIES.

    (a) Delay in Benefit for Certain Families.--
            (1) In general.--The Congress recommends that if a State 
        provides direct cash assistance to a family described in 
        paragraph (2) from grant funds received by the State under 
        subtitle B of title I of this Act, such family not receive such 
        assistance until any member of the family who has attained age 
        18 has conducted job search activities determined appropriate 
        by the State for a 1-month period beginning on the date that 
        the family applies for direct cash assistance.
            (2) Family described.--A family described in this paragraph 
        is a family that--
                    (A) is an AFDC equivalent family;
                    (B) has sufficient liquid assets (as determined by 
                the State) to meet the basic needs of the family for 
                the 1-month period referred to in paragraph (1); and
                    (C) does not include any children under 5 years of 
                age.
    (b) Job Search Requirement for Certain Individuals.--
            (1) In general.--The Congress recommends that if a State 
        provides direct cash assistance to a family described in 
        paragraph (2) from grant funds received by the State under 
        subtitle B of title I of this Act, the State require a member 
        of the family who has attained age 18 to conduct job search 
        activities (as determined appropriate by the State) during the 
        first 1-month period in which the family receives such aid.
            (2) Family described.--A family described in this 
        subsection is a family--
                    (A) that is an AFDC equivalent family that is not 
                described in subsection (a)(2); and
                    (B) does not include any children under 5 years of 
                age.
SEC. 403. REDUCTION OF BENEFITS TO FAMILIES WHO ALSO RECEIVE HOUSING 
              ASSISTANCE.

    (a) In General.--The Congress recommends that if a State provides 
direct cash assistance to an AFDC equivalent family from grant funds 
received by the State under subtitle B of title I of this Act, the 
State, in determining eligibility for such assistance, consider as 
income of the family applying to receive such assistance, any rent or 
housing subsidy provided to such family by the State, to the extent 
that the value of such subsidy is equivalent to the amount for housing 
included in the maximum amount that would be payable by the State to a 
family of the same composition with no other income.
    (b) Reduction of Payments to Families Who Receive Public Housing 
Benefits.--The Congress recommends that if a State provides direct cash 
assistance to an AFDC equivalent family from grant funds received by 
the State under subtitle B of title I of this Act, the State reduce by 
25 percent each month the payment of such direct cash assistance to any 
family that occupies a unit in housing that is subsidized by the State.
                   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, at the time such obligation first arises or 
                is modified, on a W-4 form that the employee is 
                otherwise required to file with the employer--
                            (i) the existence of the obligation;
                            (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)(13)(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 annually 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)(13)(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) not later than the later of--
                            (i) 15 days after receipt of such 
                        information; or
                            (ii) the date the employee next receives 
                        wages or other compensation from the employer,
                forward the information to the agency designated 
                pursuant to section 466(a)(12)(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)(14) 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 (11) the 
following new paragraphs:
            ``(12) 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 Real 
                Welfare Reform Act of 1995 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); and
                    ``(B) determine whether or not the information 
                described in subparagraph (A) 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)(14), and--
                            ``(i) if the information is confirmed by 
                        the information on file in the registry, notify 
                        any individual (or such individual's designee) 
                        who resides in the State and to whom the 
                        employee has a legal obligation to provide 
                        child support, 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); 
                        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)(14) of the States in which 
                        the obligation is most likely to have been 
                        imposed.
            ``(13) Procedures under which the State shall--
                    ``(A) designate at least 1 industry, for purposes 
                of section 501(a)(2)(B) of the Real Welfare Reform Act 
                of 1995, 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), is amended by inserting after paragraph (13) the following new 
paragraph:
            ``(14) Procedures requiring the State agency designated 
        pursuant to paragraph (17) 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) and 
        subsection (a) of this section, is amended by inserting after 
        paragraph (14) the following new paragraph:
            ``(15)(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 the Social 
        Security Act (42 U.S.C. 666(a)), as amended by section 501(b), 
        subsection (a) of this section, and paragraph (1) of this 
        subsection, is amended by inserting after paragraph (15) the 
        following new paragraph:
            ``(16) 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''; and
                    (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 second 
        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 the 
Social Security Act (42 U.S.C. 653) is amended by adding at the end the 
following new subsection:
    ``(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 
        Interstate Locate Network through a computer terminal located 
        in the court.''.
    (c) Information Sharing Regulations.--Section 452(a) of the Social 
Security 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 second 
        sentence of paragraph (10) and inserting ``; and''; and
            (3) by inserting after paragraph (10) the following new 
        paragraph:
            ``(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; and
                            ``(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 to 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) and 502, is amended by 
inserting after paragraph (16) the following new paragraphs:
            ``(17) 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.
            ``(18) 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 (19), unless the order does 
        not provide for income withholding, and the noncustodial parent 
        and the custodial parent object.
            ``(19) 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 (17) 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 the Social 
Security Act (42 U.S.C. 652(a)), as amended by section 503(c), 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 new 
        paragraph:
            ``(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--
                    ``(A) 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
                    ``(B) be in the form necessary 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 the Social Security Act (42 U.S.C. 666(b)) 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 ``and paragraph 
        (9)(B)'' after ``(A)''; and
            (3) in paragraph (9)--
                    (A) by inserting ``(A)'' after ``(9)''; and
                    (B) by adding at the end the following:
            ``(B)(i) As a condition of doing business in the State, any 
        individual or entity engaged in commerce in the State shall, 
        upon receipt of a valid income withholding order for any of its 
        employees--
                    ``(I) immediately provide a copy of the order to 
                the employee subject to the order; and
                    ``(II) notwithstanding paragraph (4), withhold, 
                within 10 days after receipt of the order, income from 
                the employee in the manner described in paragraph 
                (6)(A)(i).
            ``(ii) A valid income withholding order may be served on 
        the individual or entity directly or by first-class mail.
            ``(iii) Any individual or entity who complies with a valid 
        income withholding 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 a valid income withholding 
        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.
            ``(vi) For purposes of this subparagraph, a valid income 
        withholding order is a withholding order developed under 
        section 452(a)(12) that has been issued by a court or agency of 
        a State and is regular on its face.''.

SEC. 505. UNIFORM TERMS IN ORDERS.

    Section 452(a) of the Social Security Act (42 U.S.C. 652(a)), as 
amended by sections 503(c) and 504(b), 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 second sentence and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(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)(14)--
                    ``(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;
                    ``(J) the identification (FIPS code, name, and 
                address) of the court that issued the order;
                    ``(K) any information on health care support 
                required by the order; and
                    ``(L) the party to contact if additional 
                information is obtained.''.

SEC. 506. IMPROVEMENTS IN PATERNITY ESTABLISHMENT.

    Section 466(a)(5)(C) of the Social Security Act (42 U.S.C. 
666(a)(5)(C)) is amended to read as follows:
            ``(C) Procedures under which--
                    ``(i) the opportunity to establish paternity 
                voluntarily and by simple affidavit is available to the 
                unmarried parents of a child at the time of the child's 
                birth by requiring hospitals and birthing facilities to 
                make explanatory materials and forms available to the 
                parents as part of the birth certificate process;
                    ``(ii) a simple, civil consent procedure is 
                available at any time for individuals who agree to 
                acknowledge parentage of a child;
                    ``(iii) an acknowledgment of parentage may be 
                incorporated in a witnessed, written statement that 
                includes a statement that--
                            ``(I) the individual signing such statement 
                        understands the consequences of acknowledging 
                        paternity;
                            ``(II) such individual is signing the 
                        statement voluntarily;
                            ``(III) such individual does not object to 
                        the court entering an order for parentage, 
                        based on the acknowledgment, without notice 
                        prior to the entry of the order and without the 
                        requirement of pleadings, service, summons, 
                        testimony, or a hearing; and
                            ``(IV) such individual understands that 
                        signing such statement may create an obligation 
                        to provide child support; and
                    ``(iv) if under State law a court order is required 
                to establish paternity, an acknowledgment of parentage 
                as provided for under clause (iii) shall be filed with 
                a State court of appropriate jurisdiction within 10 
                days and a paternity order based on such acknowledgment 
                shall be established without the requirement of 
                pleadings, service, summons, testimony, or a 
                hearing.''.

SEC. 507. WAIVER OF FEE FOR CERTAIN INDIVIDUALS RECEIVING CHILD SUPPORT 
              COLLECTION OR PATERNITY DETERMINATION SERVICES.

    Section 454 of the Social Security Act (42 U.S.C. 654) is amended--
            (1) in paragraph (23), by striking ``and'' at the end;
            (2) in paragraph (24), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (24) the following new 
        paragraph:
            ``(25) notwithstanding subparagraphs (B), (C), and (D) of 
        paragraph (6), provide that no fee shall be imposed for child 
        support collection or paternity determination services provided 
        with respect to an individual who is denied aid to low-income 
        households located in a State as a result of the requirements 
        of the Real Welfare Reform Act of 1995.''.
SEC. 508. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title shall take effect on the first day of the 
first fiscal year beginning after the date of the enactment of this 
Act.
    (b) Delay if State Legislation Required.--In the case of a State 
which the Secretary of Health and Human Services determines requires 
State legislation (other than legislation authorizing or appropriating 
funds) in order to comply with the amendments made by this title, the 
State shall not be regarded as failing to comply with such amendments 
solely on the basis of its failure to meet the requirements of such 
amendments before the first day of the first calendar quarter beginning 
after the close of the first regular session of the State legislature 
that begins after the date of the enactment of this Act. For purposes 
of the preceding sentence, in the case of a State that has a 2-year 
legislative session, each year of such session shall be deemed to be a 
separate regular session of the State legislature.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. REPEAL OF THE DAVIS-BACON ACT.

    (a) In General.--The Act of March 31, 1931 (commonly known as the 
Davis-Bacon Act; 40 U.S.C. 276a et seq.), is repealed.
    (b) Reduction in Budget Caps.--
            (1) Discretionary spending.--Upon the enactment of this 
        section, the Director of the Office of Management and Budget 
        shall make downward adjustments in the discretionary spending 
        limits (new budget authority and outlays), as adjusted, set 
        forth in section 601(a)(2) of the Congressional Budget Act of 
        1974 for each of fiscal years 1996 through 2000, by an amount 
        equal to the discretionary savings resulting from the enactment 
        of this section attributable to each such fiscal year.
            (2) Section 602 allocations.--
                    (A) House appropriations committee.--The 
                allocations in effect under section 602(a)(1) of the 
                Congressional Budget Act of 1974 for fiscal year 1996 
                for the Committee on Appropriations of the House of 
                Representatives are reduced by the amount of 
                discretionary savings in outlays and budget authority 
                determined under paragraph (1).
                    (B) Senate appropriations committee.--The 
                allocations in effect under section 602(a)(2) of the 
                Congressional Budget Act of 1974 for fiscal year 1996 
                for the Committee on Appropriations of the Senate are 
                reduced by the amount of discretionary savings in 
                outlays and budget authority determined under paragraph 
                (1).
                    (C) Suballocations.--Each Committee on 
                Appropriations is authorized and directed to 
                immediately adjust its suballocations among its 
                subcommittees for fiscal year 1996 to reflect the lower 
                allocations provided by this paragraph in a manner that 
                accurately reflects the changes in law made by this Act 
                and promptly report to its House of Congress 
                suballocations revised under this paragraph.
                    (D) Effect.--The allocations and suballocations as 
                adjusted by this paragraph shall be deemed to be 
                allocations made under section 602(a)(1) and 
                suballocations made under section 602(b)(1) of the 
                Congressional Budget Act of 1974.
            (3) Section 601.--Section 601(a)(2) of the Congressional 
        Budget Act of 1974 is amended by inserting ``or as adjusted 
        pursuant to subsection (b) of section 601 of the Real Welfare 
        Reform Act of 1995'' before the period at the end.
SEC. 602. ELIMINATION OF MEDICAID BENEFITS WITH RESPECT TO FUGITIVE 
              FELONS AND PROBATION AND PAROLE VIOLATORS.

    (a) Ineligibility for Medical Assistance.--Section 1902(a) (42 
U.S.C. 1396a(a)) of the Social Security Act is amended--
            (1) by striking ``and'' at the end of paragraph (61);
            (2) by striking the period at the end of paragraph (62) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(63) provide that no medical assistance shall be 
        available under the plan to any individual during any period 
        during which the individual--
                    ``(A) is taking an action described in section 
                1073(1) of title 18, United States Code, or
                    ``(B) is violating a condition of probation or 
                parole imposed under Federal or State law.''.
    (b) Exchange of Information With Law Enforcement Agencies.--Section 
1902(a)(7) of the Social Security Act (42 U.S.C. 1396a(a)(7)) is 
amended by inserting the following after the semicolon: ``but such 
safeguards shall not prevent the State agency from furnishing a 
Federal, State, or local law enforcement officer, upon such officer's 
request, with the current address of any recipient if the officer 
furnishes the agency with such recipient's name and notifies the agency 
that--
                    ``(A) such recipient--
                            ``(i) is taking an action described in 
                        section 1073(1) of title 18, United States Code 
                        or violating a condition of probation or parole 
                        imposed under Federal or State law; or
                            ``(ii) has information that is necessary 
                        for the officer to conduct the officer's 
                        official duties;
                    ``(B) the location or apprehension of such 
                recipient is within the officer's official duties; and
                    ``(C) the request is made in the proper exercise of 
                those duties;''.

SEC. 603. RESTRICTION OF CERTAIN LEGAL CHALLENGES.

    (a) In General.--No legal aid organization or other entity that 
provides legal services and which receives Federal funds or IOLTA funds 
may challenge (or act as an attorney on behalf of any party who seeks 
to challenge) in any legal proceeding--
            (1) the legal validity--
                    (A) under the United States Constitution--
                            (i) of this Act or any regulations 
                        promulgated under this Act; and
                            (ii) of any law or regulation enacted or 
                        promulgated by a State pursuant to this Act;
                    (B) under this Act or any regulation adopted under 
                this Act of any State law or regulation; and
                    (C) under any State Constitution of any law or 
                regulation enacted or promulgated by a State pursuant 
                to this Act; and
            (2) the conflict--
                    (A) of this Act or any regulations promulgated 
                under this Act with any other law or regulation of the 
                United States; and
                    (B) of any law or regulation enacted or promulgated 
                by a State pursuant to this Act with any law or 
                regulation of the United States.
    (b) IOLTA Funds Defined.--For purposes of this section, the term 
``IOLTA funds'' means interest on lawyers trust account funds that--
            (1) are generated when attorneys are required by State 
        court or State bar rules to deposit otherwise noninterest-
        bearing client funds into an interest-bearing account while 
        awaiting the outcome of a legal proceeding; and
            (2) are pooled and distributed by a subdivision of a State 
        bar association or the State court system to organizations 
        selected by the State courts administration.
    (c) Legal Proceeding Defined.--For purposes of this section, the 
term ``legal proceeding'' includes--
            (1) a proceeding--
                    (A) in a court of the United States;
                    (B) in a court of a State; and
                    (C) in an administrative hearing in a Federal or 
                State agency; and
            (2) any activities related to the commencement of a 
        proceeding described in subparagraph (A).

SEC. 604. COMMODITY DISTRIBUTION IN LIEU OF VOUCHERS UNDER THE WIC 
              PROGRAM.

    Section 17(f) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(f)) is amended by adding at the end the following:
    ``(25)(A) In this paragraph, the term `poverty line' means 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 Community Services Block Grant Act (42 U.S.C. 9902(2))) applicable 
to a family of the size involved.
    ``(B) If a State agency elects to provide supplemental foods to 
participants under the program in the form of commodities (rather than 
vouchers), the State agency may use any savings derived from providing 
supplemental foods in the form of commodities (rather than vouchers) to 
provide assistance or services under any law to individuals who have an 
income that is less than 175 percent of the poverty line.
    ``(C) The Secretary shall ensure that the amount of funds allocated 
to a State agency described in subparagraph (B) for a fiscal year to 
carry out the program authorized by this section is not reduced because 
the State agency elects to provide supplemental foods in the form of 
commodities.''.

               TITLE VII--SEVERABILITY AND EFFECTIVE DATE

SEC. 701. SEVERABILITY.

    If any provision of this Act, an amendment made by this Act, or the 
application of such provision or amendment to any person or 
circumstance is held to be unconstitutional, the remainder of this Act, 
the amendments made by this Act, and the application of the provisions 
of such to any person or circumstance shall not be affected thereby.

SEC. 702. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act shall take effect on October 1, 1995.
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