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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1795 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1795

 To amend title IV of the Social Security Act and other provisions to 
 provide reforms to the welfare system in effect in the United States.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 25, 1994

   Mr. Brown (for himself, Mr. Dole, Mr. Packwood, Mr. D'Amato, Mr. 
 Simpson, Mr. Warner, Mr. Gramm, Mr. Stevens, Mr. Cochran, Mr. McCain, 
Mr. Gorton, Mr. Burns, Mr. McConnell, Mr. Murkowski, Mr. Nickles, Mrs. 
 Hutchison, and Mr. Pressler) introduced the following bill; which was 
          read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To amend title IV of the Social Security Act and other provisions to 
 provide reforms to the welfare system in effect in the United States.

    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 ``Welfare Reform Act of 1994''.

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 is as follows:

Sec. 1. Short title.
Sec. 2. References in Act; table of contents.
  TITLE I--APPLICANT JOB SEARCH, VOUCHER PROGRAM, TRANSITION AND WORK 
                             PROGRAM, ETC.

Sec. 101. Applicant job search requirement.
Sec. 102. Employment voucher programs.
Sec. 103. Transition and work components added to jobs program.
Sec. 104. Sanctions for failure to participate in jobs program.
Sec. 105. Persons exempted from participation in jobs program.
Sec. 106. Increase in required jobs participation rates.
Sec. 107. Payments to States.
Sec. 108. Effective date.
        TITLE II--PROVISIONS RELATING TO PATERNITY ESTABLISHMENT

Sec. 201. Reduction of AFDC for parent or guardian of children whose 
                            paternity is not established.
Sec. 202. Earlier paternity establishment efforts by States.
Sec. 203. Increase in paternity establishment percentage.
Sec. 204. Effective date.
                  TITLE III--CHILD SUPPORT ENFORCEMENT

Sec. 301. State information systems.
Sec. 302. National information systems.
Sec. 303. Income withholding.
Sec. 304. Uniform terms in orders.
Sec. 305. Work requirement for noncustodial parents with child support 
                            arrearages.
Sec. 306. Effective date.
         TITLE IV--EXPANSION OF STATUTORY FLEXIBILITY OF STATES

Sec. 401. Option to increase or decrease payments based on preventive 
                            health care and immunizations for children.
Sec. 402. Option to increase or decrease payments based on attendance 
                            at educational institutions and 
                            participation in vocational or technical 
                            training.
Sec. 403. Option to deny AFDC for additional children.
Sec. 404. Option to provide married couple transition benefit.
Sec. 405. Option to treat interstate immigrants under rules of former 
                            State.
Sec. 406. Option to require attendance at parenting and money 
                            management classes.
Sec. 407. Option to deny AFDC eligibility to certain teenagers; 
                            requirement that teenagers eligible for 
                            AFDC live at home.
Sec. 408. Disregard of education and employment training savings for 
                            AFDC eligibility.
Sec. 409. Effective date.
               TITLE V--EXPEDITED STATE WAIVER AUTHORITY

Sec. 501. Interagency Waiver Request Board.
Sec. 502. Application to implement assistance plans.
Sec. 503. Review and approval of applications; waivers.
Sec. 504. Implementation of assistance plans; evaluations.
Sec. 505. Public-private partnership committees.
Sec. 506. Definitions.
Sec. 507. Reports.
Sec. 508. Sunset.
               TITLE VI--WELFARE RESTRICTIONS FOR ALIENS

Sec. 601. Eligibility of certain aliens for certain Federal benefits.
Sec. 602. State AFDC agencies required to provide information on 
                            illegal aliens to the Immigration and 
                            Naturalization Service.
                        TITLE VII--MISCELLANEOUS

Sec. 701. Restriction on payment of benefits to individuals confined by 
                            court order to public institutions pursuant 
                            to verdicts of not guilty by reason of 
                            insanity or other mental disorder.
Sec. 702. AFDC recipients required to undergo necessary substance abuse 
                            treatment as a condition of receiving AFDC.
Sec. 703. Evaluation of education and training programs.
Sec. 704. Fraud and administrative efficiency.
Sec. 705. SSI benefits for drug and alcohol addicts.
Sec. 706. State fraud control programs.

  TITLE I--APPLICANT JOB SEARCH, VOUCHER PROGRAM, TRANSITION AND WORK 
                             PROGRAM, ETC.

SEC. 101. APPLICANT JOB SEARCH REQUIREMENT.

    (a) In General.--Section 402(a) (42 U.S.C. 602(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (44);
            (2) by striking the period at the end of paragraph (45) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (45) the following new 
        paragraph:
            ``(46) provide that--
                    ``(A) an individual applying for aid under the plan 
                shall conduct job search activities, as determined 
                appropriate by the State, while such individual's 
                application for aid is pending; and
                    ``(B) the State agency shall reimburse the 
                applicant for necessary transportation and child care 
                expenses incurred as a result of such activities.''.
    (b) Conforming Amendments.--Section 482(g)(2) (42 U.S.C. 682(g)(2)) 
is amended--
            (1) by striking ``applying for or'' in the matter preceding 
        subparagraph (A); and
            (2) in subparagraph (A)--
                    (A) by striking ``applies for aid'' and inserting 
                ``begins receiving aid''; and
                    (B) by striking ``in making a determination of an 
                individual's eligibility for such aid or''.

SEC. 102. EMPLOYMENT VOUCHER PROGRAMS.

    (a) In General.--Section 402(a) (42 U.S.C. 602(a)), as amended by 
section 101, is amended--
            (1) by striking ``and'' at the end of paragraph (45);
            (2) by striking the period at the end of paragraph (46) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (46) the following new 
        paragraph:
            ``(47) provide that the State has in effect an employment 
        voucher program which meets the requirements of part G.''.
    (b) Voucher Program.--Title IV (42 U.S.C. 601 et seq.) is amended 
by adding at the end the following new part:

                 ``Part G--Employment Voucher Programs

                   ``establishment of state programs

    ``Sec. 491. (a) In General.--As a condition of its participation in 
the program for aid to families with dependent children under part A, 
each State shall establish an employment voucher program (in this part 
referred to as the `program') which meets the requirements of this 
part.
    ``(b) Requirement on Secretary.--The Secretary shall consult with 
the Secretary of Labor and the Secretary of Agriculture on the 
requirements imposed on States under this part and criteria for 
determining whether such requirements are met.

                   ``administration of state programs

    ``Sec. 492. The State agency responsible for the administration of 
the State's program under this part shall be--
            ``(1) a new State agency created by the State, or
            ``(2) a State agency selected by the State from among--
                    ``(A) the State agency that administers or 
                supervises the administration of the State's plan 
                approved under section 402,
                    ``(B) the State agency that administers or 
                supervises the administration of the food stamp program 
                under the Food Stamp Act of 1977, and
                    ``(C) the State department of labor.

                       ``state programs described

    ``Sec. 493. (a) Program Voucher Requirements.--
            ``(1) In general.--The State shall make vouchers in the 
        amount determined under paragraph (2) available to eligible 
        individuals. If an eligible individual obtains employment such 
        vouchers--
                    ``(A) shall be given by such individual to the 
                individual's employer during the first year of 
                employment; and
                    ``(B) shall be in lieu of any benefits described in 
                paragraph (2) which the individual would otherwise be 
                eligible to receive.
            ``(2) Amount of voucher.--The amount of the voucher for an 
        eligible individual is equal to--
                    ``(A) for each month of the first 6 month period of 
                employment, the sum of--
                            ``(i) the monthly amount that would 
                        otherwise be payable as aid to families with 
                        dependent children to the family of such 
                        individual, and
                            ``(ii) the monthly cash value of the food 
                        stamp benefits that would otherwise be 
                        available to such individual's household,
                determined as of the first day of the first full month 
                of the employment of such individual by a qualified 
                employer; and
                    ``(B) for each month of the second 6 month period 
                of employment, 50 percent of the sum of the amounts 
                determined under clauses (i) and (ii) of subparagraph 
                (A).
    ``(b) Eligible Individuals.--For purposes of this part, an 
individual is eligible for a voucher under the State program if such 
individual is eligible for and receiving assistance under--
            ``(1) the aid to families with dependent children program 
        under this title; or
            ``(2) the food stamp program under the Food Stamp Act of 
        1977.
    ``(c) Qualified Employers.--
            ``(1) For purposes of this part, and subject to paragraph 
        (2), an employer is qualified to receive payments under this 
        part for an eligible individual employed by such employer if 
        the employer submits a monthly report to the State agency 
        selected by the State under section 492 (in a form and in such 
        manner as the State agency requires) certifying that--
                    ``(A) the employment of the eligible individual 
                complies with the rules described in subsections (b) 
                and (c) (without regard to the last sentence thereof) 
                of section 484,
                    ``(B) gross wages (as defined in section 209 but 
                without regard to any dollar limitation contained is 
                such section) earned by such eligible individual and 
                paid to such eligible individual by the employer during 
                such month were not less than the greater of--
                            ``(i) 200 percent of the amount of the 
                        voucher of such individual, or
                            ``(ii) the product of the greater of the 
                        Federal minimum wage or the applicable State 
                        minimum wage and the number of hours worked by 
                        such individual, and
                    ``(C) with respect to such wages, the employer was 
                not receiving any wage subsidy under any other 
                provision of Federal law, including part F of this 
                title.

                          ``treatment of wages

    ``Sec. 494. Under the State program wages paid to an eligible 
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 the programs described in paragraphs (1) and (2) of section 493(b) 
during the first year of the individual's employment with the employer.

                   ``provision of program information

    ``Sec. 495. The State agency (directly and through the other State 
agencies described in paragraphs (1) and (2) of section 492) shall 
inform all eligible individuals of the State program and the 
application procedures for such program.

                         ``use of federal funds

    ``Sec. 496. Notwithstanding any other provision of law, for 
purposes of computing the amount of the Federal payment to a State with 
respect to any voucher amount determined under section 493(a)(2), such 
amount shall be treated as if paid to the eligible individual under the 
applicable program.''.
    (c) Conforming Amendments.--
            (1) Food stamp act.--Section 16 of the Food Stamp Act of 
        1977 (7 U.S.C. 2025) is amended by adding at the end the 
        following new subsection:
    ``(l) If a State agency of a State informs the Secretary that an 
individual who is participating in the employment voucher program 
carried out under part G of title IV of the Social Security Act is a 
member of a household that participates in the food stamp program--
            ``(1) the Secretary shall pay to the State an amount equal 
        to the value of the food stamp benefits the household is 
        otherwise eligible to receive under this Act; and
            ``(2) the State shall expend the amount in accordance with 
        such part rather than for food stamp benefits the household 
        would receive but for the operation of this subsection.''.
            (2) Targeted jobs credit.--Section 51(c)(2)(B) of the 
        Internal Revenue Code of 1986 is amended by striking ``482(e)'' 
        and inserting ``482(e) or part G of title IV''.

SEC. 103. TRANSITION AND WORK COMPONENTS ADDED TO JOBS PROGRAM.

    (a) Establishment and Operation of Program.--
            (1) Transition and work components.--Section 482 (42 U.S.C. 
        682) is amended by adding at the end the following new 
        subsection:
    ``(j) Transition and Work Components.--
            ``(1) In general.--The program under this part must 
        include--
                    ``(A) a transition component that--
                            ``(i) must include the job search program 
                        established by the State under subsection (g);
                            ``(ii) must include the employment voucher 
                        program established by the State under part G; 
                        and
                            ``(iii) may include any other service, 
                        activity, or program of the State that is 
                        referred to in subsection (d)(1) (excluding the 
                        programs referred to in subclauses (III) and 
                        (IV) of subsection (d)(1)(A)(ii)); and
                    ``(B) a work component that--
                            ``(i) must include a work supplementation 
                        program operated by the State under subsection 
                        (e);
                            ``(ii) must include a community work 
                        experience program established by the State 
                        under subsection (f);
                            ``(iii) must include the employment voucher 
                        program established by the State under part G; 
                        and
                            ``(iv) may include any other work program 
                        of the State that is approved by the Secretary.
            ``(2) Participation requirements.--
                    ``(A) Transition component.--
                            ``(i) Hours of participation.--Each 
                        individual participating in the transition 
                        component must participate in activities under 
                        such component for an average of not fewer than 
                        20 hours per week.
                            ``(ii) Limit on participation.--
                                    ``(I) In general.--If an individual 
                                has participated in the transition 
                                component for 24 months, aid under the 
                                State plan payable to the family in 
                                which such individual is a member shall 
                                be reduced by the amount allocable to 
                                such individual unless the individual 
                                finds gainful employment or is 
                                participating in the work component of 
                                the program under this part.
                                    ``(II) State option.--At the option 
                                of the State, the number of months of 
                                participation under subclause (I) may 
                                be reduced to a number of months not 
                                less than 12.
                            ``(iii) Satisfaction of requirement.--The 
                        State, in consultation with the Secretary, 
                        shall establish guidelines for determining 
                        whether an individual has satisfied the 
                        requirement under clause (i). In the case of 
                        educational activities, such guidelines shall 
                        provide that an individual who is enrolled 
                        full-time in a program of study at an 
                        educational institution (including a vocational 
                        or technical training school), as determined by 
                        the institution, and is making satisfactory 
                        progress in the program of study, as determined 
                        by the institution, is to be regarded as 
                        satisfying such requirement so long as the 
                        determinations by the institution are made in 
                        accordance with such rules as the Secretary may 
                        prescribe (including rules governing how time 
                        spent in such a program of study is to be 
                        converted into hours of participation in the 
                        transition component).
                    ``(B) Work component.--
                            ``(i) Hours of participation.--At the 
                        option of the State, each individual 
                        participating in the work component must 
                        participate--
                                    ``(I) in work activities for an 
                                average of not fewer than 35 hours per 
                                week; or
                                    ``(II) in work activities for an 
                                average of not fewer than 30 hours per 
                                week and job search activities for an 
                                average of not fewer than 8 hours per 
                                week.
                            ``(ii) Limit on participation.--
                                    ``(I) In general.--If an individual 
                                has participated in the transition 
                                component and the work component for 24 
                                months, at the option of the State, aid 
                                under the State plan payable to the 
                                family in which such individual is a 
                                member may be reduced by the amount 
                                allocable to such individual and the 
                                individual may be prohibited from 
                                further participation.
                                    ``(II) Exception.--Notwithstanding 
                                subclause (I), each individual shall be 
                                permitted to participate in the work 
                                component for at least 12 months 
                                without a reduction in benefits under 
                                subclause (I).
                    ``(C) Eligibility for medicaid.--If aid under the 
                State plan is reduced under subparagraph (A)(ii) or 
                (B)(ii) with respect to an individual, such individual 
                shall, for purposes of medical assistance under the 
                State plan under title XIX, be deemed to be a recipient 
                of aid under such State plan for so long as the family 
                in which such individual is a member is otherwise 
                eligible for aid under such State plan.''.
            (2) Employability plan.--
                    (A) Determination of participation in transition or 
                work component.--Section 482(b)(1)(A) (42 U.S.C. 
                682(b)(1)(A)) is amended by inserting after the first 
                sentence the following new sentence: ``If, based on 
                such assessment, the State agency determines that a 
                participant is employable, such participant shall be 
                assigned to the work component of the program under 
                this part.''.
                    (B) Specification in plan of participation in 
                transition or work component.--The first sentence of 
                section 482(b)(1)(B) (42 U.S.C. 682(b)(1)(B)) is 
                amended to read as follows: ``On the basis of such 
                assessment, the State agency, in consultation with the 
                participant, shall develop an employability plan for 
                the participant which shall specify whether the 
                participant is participating in the transition 
                component or the work component under this part.''.
                    (C) Limit on participation in transition 
                component.--Section 482(b)(1) (42 U.S.C. 682(b)(1)) is 
                amended by inserting the following new sentence after 
                the second sentence in subparagraph (B): ``The plan 
                shall include a statement explaining that participation 
                in the transition component of the program under this 
                part shall be for an average of at least 20 hours per 
                week during a period of up to 24 months and upon the 
                expiration of such period, aid under the State plan may 
                be reduced unless the individual finds gainful 
                employment or is participating in the work component of 
                the program under this part.''.
                    (D) Interim assessment under transition 
                component.--Section 482(b) (42 U.S.C. 682(b)) is 
                amended--
                            (i) by redesignating paragraph (3) as 
                        paragraph (4); and
                            (ii) by inserting after paragraph (2), the 
                        following new paragraph:
    ``(3) After a participant has participated in the transition 
component of the program for a period of 6 months, the State shall make 
an assessment to determine whether the participant is making clear and 
substantial progress toward employment. The State, in consultation with 
the Secretary, shall establish guidelines for making determinations 
under this paragraph.''.
                    (E) Determination of employability.--Section 482(b) 
                (42 U.S.C. 682(b)) is amended--
                            (i) by redesignating paragraph (4) as 
                        paragraph (5); and
                            (ii) by inserting after paragraph (3), the 
                        following new paragraph:
    ``(4) If, at any time during a participant's participation in the 
transition component of the program, the State agency determines that 
such participant is employable, such participant shall be assigned to 
the work component of the program.''.
    (b) Community Work Experience Program Amendments.--Section 
482(f)(1) (42 U.S.C. 682(f)(1)) is amended--
            (1) by striking subparagraph (B);
            (2) by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (B), (C), and (D).
    (c) Work Supplementation Program Amendments.--
            (1) Authority of states to assign participants to unfilled 
        jobs.--Section 484(c) (42 U.S.C. 684(c)) is amended by striking 
        the last sentence.
            (2) Authority of states to use sums that would otherwise be 
        expended for food stamp benefits to provide subsidized jobs for 
        participants.--
                    (A) In general.--Section 482(e)(1) (42 U.S.C. 
                682(e)(1)) is amended--
                            (i) by inserting ``, and the sums that 
                        would otherwise be used to provide participants 
                        in the program under this subsection with food 
                        stamp benefits under the Food Stamp Act of 
                        1977,'' before ``and use''; and
                            (ii) by inserting ``and the food stamp 
                        benefits that would otherwise be so provided to 
                        them'' before the period.
                    (B) Subsidies provided to employers and included in 
                wages of participants; minimum employer contribution.--
                Section 482(e)(3) (42 U.S.C. 682(e)(3)) is amended by 
                adding at the end the following new paragraphs:
    ``(E) Each State operating a work supplementation program under 
this subsection shall enter into an agreement with the employer who is 
to provide an eligible individual with a supplemented job under the 
program, under which--
            ``(i) the State is required to pay the employer an amount 
        specified in the agreement as the subsidized portion of the 
        wages of the eligible individual; and
            ``(ii) the employer is required to pay the eligible 
        individual wages which, when added to an amount that will be 
        payable as aid to families with dependent children to the 
        individual if the individual is paid such wages, are not less 
        than 100 percent of the sum of--
                    ``(I) the amount that would otherwise be payable as 
                aid to families with dependent children to the eligible 
                individual if the State did not have a work 
                supplementation program under this subsection in 
                effect; and
                    ``(II) if the State elects to subsidize jobs for 
                participants in the program through the reservation of 
                sums that would otherwise be used to provide such 
                participants with food stamp benefits under the Food 
                Stamp Act of 1977, the amount paid to the State by the 
                Secretary of Agriculture that represents the cash value 
                of the food stamp benefits for which the household of 
                the eligible individual is a member is eligible under 
                such Act.
    ``(F) For purposes of computing the amount of the Federal payment 
to a State under paragraph (1) or (2) of section 403(a), for 
expenditures incurred in making payments to individuals and employers 
under the State's work supplementation program under this section, the 
State may claim as such expenditures the maximum amount payable to the 
State under paragraph (4) of this subsection.
    ``(G) Notwithstanding paragraph (1), a State may use for any 
purpose the sums reserved under paragraph (1) which are not used to 
subsidize jobs under this subsection attributable to savings achieved 
by operation of subparagraph (E).''.
                    (C) Conforming amendment.--Section 482(e)(3)(A) (42 
                U.S.C. 682(e)(3)(A)) is amended by striking the second 
                sentence.
                    (D) Employment cashout of food stamp benefits.--
                Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 
                2025), as amended by section 102(c), is amended by 
                adding at the end the following new subsection:
    ``(m) If a State agency of a State that makes the election 
described in section 482(e)(3)(E)(ii)(II) of the Social Security Act 
informs the Secretary that an individual who is participating in the 
work supplementation program carried out under section 482(e) of such 
Act is a member of a household that participates in the food stamp 
program and all the members of the household receive benefits under a 
State plan approved under part A of title IV of such Act--
            ``(1) the Secretary shall pay to the State an amount equal 
        to the value of the food stamp benefits the household is 
        eligible to receive under this Act;
            ``(2) the State shall expend the amount in accordance with 
        section 482(e)(3) of the Social Security Act to make a payment 
        to the individual in lieu of food stamp benefits the household 
        would receive but for the operation of this subsection;
            ``(3) for purposes of--
                    ``(A) sections 5 and 8(a) of this Act, the amount 
                shall be excluded from household income and resources; 
                and
                    ``(B) section 8(b) of this Act, the amount shall be 
                considered as the value of an allotment provided to the 
                household; and
            ``(4) the household shall not receive food stamp benefits 
        from the State agency for the period during which the member 
        continues to participate in the work supplementation 
        program.''.

SEC. 104. SANCTIONS FOR FAILURE TO PARTICIPATE IN JOBS PROGRAM.

    (a) In General.--Section 402(a)(19)(G)(ii) (42 U.S.C. 
602(a)(19)(G)(ii)) is amended to read as follows:
                            ``(ii) any sanction described in clause (i) 
                        shall continue--
                                    ``(I) in the case of the 
                                individual's first failure to comply, 
                                until the failure to comply ceases or 3 
                                months (whichever is longer);
                                    ``(II) in the case of the 
                                individual's second failure to comply, 
                                until the failure to comply ceases or 6 
                                months (whichever is longer); and
                                    ``(III) in the case of the 
                                individual's third failure to comply, 
                                until the failure to comply ceases or 
                                12 months (whichever is longer);''.
    (b) Rolling Sanctions.--Section 402(a)(19)(G) (42 U.S.C. 
602(a)(19)(G)) is amended by redesignating clauses (iii) and (iv) as 
subclauses (iv) and (v) and by inserting after clause (ii) the 
following new clause:
                            ``(iii)(I) any first failure to comply 
                        described in clause (ii)(I) that continues for 
                        more than 3 months shall be considered a second 
                        failure to comply described in clause (ii)(II); 
                        and
                            ``(II) any second failure to comply 
                        described in clause (ii)(II) that continues for 
                        more than 6 months shall be considered a third 
                        failure to comply described in clause 
                        (ii)(III);''.
    (c) Representative Payees.--Section 402(a)(19)(G)(i)(I) (42 U.S.C. 
602(a)(19)(G)(i)(I)) is amended by striking ``unless the State agency, 
after making reasonable efforts, is unable to locate an appropriate 
individual to whom such payments can be made'' and inserting ``(in the 
case of an individual's first or second failure to comply, payments in 
such form shall be made only if determined appropriate by the State)''.

SEC. 105. PERSONS EXEMPTED FROM PARTICIPATION IN JOBS PROGRAM.

    (a) In General.--Section 402(a)(19)(C) (42 U.S.C. 602(a)(19)(C)) is 
amended to read as follows:
                    ``(C) that an individual may not be required to 
                participate in the program--
                            ``(i) if the individual is ill, 
                        incapacitated, or of advanced age;
                            ``(ii) if the individual works 35 or more 
                        hours per week;
                            ``(iii) if the individual is a child who is 
                        under age 16 and attends, full-time, an 
                        elementary, secondary, or vocational (or 
                        technical) school;
                            ``(iv) if the individual is providing full-
                        time care for a disabled dependent of the 
                        individual;
                            ``(v) at the option of the State, if the 
                        individual is making progress in a substance 
                        abuse treatment program, unless this clause has 
                        been applied to the individual for 12 months;
                            ``(vi) during the 6-month period after the 
                        individual gives birth to the first child born 
                        to the individual after becoming eligible for 
                        aid under this part;
                            ``(vii) during the 4-month period after the 
                        individual gives birth to the second or 
                        subsequent child born to the individual after 
                        becoming eligible for aid under this part; or
                            ``(viii) if the individual resides in an 
                        area of the State where the program is not 
                        available.''.
    (b) Conforming Amendment.--Section 402(a)(19)(G)(v) (42 U.S.C. 
602(a)(19)(G)(v)), as redesignated by subsection (b)(2), is amended--
                    (A) in the matter preceding subclause (I), by 
                striking ``--'';
                    (B) by striking subclause (I); and
                    (C) in subclause (II), by striking ``(II)''.

SEC. 106. INCREASE IN REQUIRED JOBS PARTICIPATION RATES.

    (a) Increase in Required Jobs Participation Rates.--Section 
403(l)(3) (42 U.S.C. 603(l)(3)) is amended--
            (1) in subparagraph (A)--
                    (A) by amending clauses (i) through (vi) to read as 
                follows:
            ``(i) with respect to all individuals eligible for aid 
        under the State plan who applied for such aid before October 1, 
        1994--
                    ``(I) 7 percent if the preceding fiscal year is 
                1990;
                    ``(II) 7 percent if such year is 1991;
                    ``(III) 11 percent if such year is 1992;
                    ``(IV) 11 percent if such year is 1993;
                    ``(V) 15 percent if such year is 1994;
                    ``(VI) 20 percent if such year is 1995;
                    ``(VII) 20 percent if such year is 1996;
                    ``(VIII) 20 percent if such year is 1997; and
                    ``(IX) 20 percent if such year is 1998;
            ``(ii) with respect to all individuals eligible for aid 
        under the State plan who applied for such aid on or after 
        October 1, 1994, and before October 1, 1998--
                    ``(I) 20 percent if such year is 1995;
                    ``(II) 30 percent if such year is 1996;
                    ``(III) 40 percent if such year is 1997; and
                    ``(IV) 50 percent if such year is 1998; and
            ``(iii) with respect to all individuals eligible for aid 
        under the State plan who applied for such aid on or after 
        October 1, 1998--
                    ``(I) 60 percent if such year is 1999;
                    ``(II) 70 percent if such year is 2000;
                    ``(III) 80 percent if such year is 2001; and
                    ``(IV) 90 percent if such year is 2002.''; and
            (2) in subparagraph (B)(ii)(IV), by striking ``and 1995'' 
        and inserting ``through 2002''.
    (b) Participation Rates of Unemployed Parents.--
            (1) In general.--Section 402(a)(19)(D) (42 U.S.C 
        602(a)(19)(D)) is amended to read as follows:
                    ``(D) that, notwithstanding subparagraph (B), in 
                the case of a family eligible for aid to families with 
                dependent children by reason of the unemployment of the 
                parent who is the principal earner, members of such 
                family shall participate in the program in accordance 
                with section 403(l)(4);''.
            (2) Participation described.--Section 403(l)(4)(A) (42 
        U.S.C. 603(l)(4)(A)) is amended to read as follows:
    ``(4)(A) In the case of any family eligible for aid to families 
with dependent children by reason of the unemployment of the parent who 
is the principal earner, the State--
            ``(i) shall require one parent to participate in the work 
        component of the program, and
            ``(ii) may require one parent to participate in the 
        transition component of the program.
In the case of a parent under age 25 who has not completed high school 
or an equivalent course of education, the State may require such parent 
to participate in educational activities directed at the attainment of 
a high school diploma (or equivalent) or another basic education 
program, in lieu of any requirement under the preceding sentence.''.
            (3) Required participation rates.--Section 403(l)(4)(B) (42 
        U.S.C. 603(l)(4)(B)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``subparagraph (A)'' and inserting ``subparagraph 
                (A)(i)'';
                    (B) in clause (iii), by striking ``and'';
                    (C) in clause (iv), by striking ``each of the 
                fiscal years 1997 and 1998.'' and inserting ``fiscal 
                year 1997; and''; and
                    (D) by adding at the end the following:
            ``(v) 90 percent in the case of the average of each month 
        in fiscal year 1998.''.
            (4) Conforming amendments.--Section 403(l)(4)(D) (42 U.S.C. 
        603(l)(4)(D)) is amended--
                    (A) by striking ``subparagraph (A)'' each place it 
                appears and inserting ``subparagraph (A)(i)''; and
                    (B) by striking ``he'' each place it appears and 
                inserting ``the Secretary''.
            (5) Extension to all states of option to limit afdc-up.--
        Section 407(b)(2)(B) (42 U.S.C. 607(b)(2)(B)) is amended by 
        striking clause (iii).

SEC. 107. PAYMENTS TO STATES.

    Section 403 (42 U.S.C. 603) is amended by adding at the end the 
following new subsection:
    ``(o)(1) Except as provided in paragraph (3), each State which has 
been paid under subsection (l) for a fiscal year an amount equal to the 
limitation determined under subsection (k)(2) for the fiscal year 
shall, in addition to any payment under subsection (a) or (l), be 
entitled to a payment from the Secretary in an amount equal to the sum 
of--
            ``(A) 50 percent of the expenditures of the State for 
        administrative costs incurred in operating the program under 
        part F during the fiscal year (other than personnel costs for 
        staff employed in the operation of the program) with respect to 
        which payment has not been made under subsection (l); and
            ``(B) except as provided in paragraph (2), the greater of 
        70 percent or the Federal medical assistance percentage (as 
        defined in section 1118 in the case of a State to which section 
        1108 applies, or as defined in section 1905(b) in the case of 
        any other State) of the other expenditures of the State 
        incurred in operating the program under part F during the 
        fiscal year with respect to which payment has not been made 
        under subsection (l).
    ``(2)(A) Notwithstanding paragraph (1)(B), the Secretary shall pay 
to a State an amount equal to 50 percent of the expenditures of the 
State incurred in operating the program under part F during a fiscal 
year and with respect to which payment has not been made under 
subsection (l) if the State's participation rate (determined under 
subparagraph (B) of this paragraph) for the immediately preceding 
fiscal year is less than--
            ``(i) 15 percent if the preceding fiscal year is 1994;
            ``(ii) 20 percent if such year is 1995;
            ``(iii) 30 percent if such year is 1996;
            ``(iv) 40 percent if such year is 1997;
            ``(v) 50 percent if such year is 1998;
            ``(vi) 60 percent if such year is 1999;
            ``(vii) 70 percent if such year is 2000;
            ``(viii) 80 percent if such year is 2001; and
            ``(ix) 90 percent if such year is 2002.
    ``(B)(i) The State's participation rate for a fiscal year shall be 
the number, expressed as a percentage, equal to--
            ``(I) the number of individuals who participated in the 
        State's program under part F in the year; divided by
            ``(II) the number of individuals required to participate in 
        the program in the year (including individuals with respect to 
        whom the State has exercised its option to require their 
        participation).
    ``(ii) For purposes of this subparagraph, an individual shall not 
be considered to have satisfactorily participated in the program under 
part F solely by reason of the individual being registered to 
participate in the program.
    ``(C) For purposes of this paragraph, an individual shall be 
considered to have participated in the program under part F if the 
individual has participated in accordance with such requirements, 
consistent with regulations of the Secretary, as the State shall 
establish.
    ``(D)(i) If the Secretary determines that a State has failed to 
achieve the participation rate for any fiscal year specified in 
subparagraph (A), then, subject to clause (ii), the Secretary may 
waive, in whole or in part, the reduction in the payment rate otherwise 
required by such subparagraph (A) if the Secretary finds that the 
State--
            ``(I) is in conformity with section 402(a)(19) and part F;
            ``(II) has made a good faith effort to achieve the 
        applicable participation rate for such fiscal year; and
            ``(III) has submitted a proposal which is likely to achieve 
        the applicable participation rate for the current fiscal year 
        and any succeeding fiscal year so specified.
    ``(ii) The Secretary may not grant a waiver to any State under 
clause (i) for more than 12 months (whether or not consecutive) in any 
48-month period.
    ``(3)(A) For fiscal years 1996, 1997, and 1998, the amount paid to 
a State by the Secretary under paragraph (1) shall not exceed the 
amount that bears the same ratio to the amount specified in 
subparagraph (B) for the fiscal year as the average monthly number of 
adult recipients (as defined in subsection (k)(4)) in the State in the 
preceding fiscal year bears to the average monthly number of such 
recipients in all the States for such preceding year.
    ``(B) The amount specified in this subparagraph is--
            ``(i) $300,000,000 for fiscal year 1996;
            ``(ii) $1,000,000,000 for fiscal year 1997; and
            ``(iii) $1,900,000,000 for fiscal year 1998.''.

SEC. 108. 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 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 II--PROVISIONS RELATING TO PATERNITY ESTABLISHMENT

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

    (a) Families Applying for AFDC.--Section 402(a) (42 U.S.C. 602(a)), 
as amended by sections 101 and 102, is amended--
            (1) by striking ``and'' at the end of paragraph (46);
            (2) by striking the period at the end of paragraph (47) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (47) the following new 
        paragraph:
            ``(48) unless the State has enacted a law exempting itself 
        from the application of this paragraph, provide that--
                    ``(A) except as provided in subparagraph (B), if a 
                family applying for aid under this part includes a 
                child with respect to whom paternity has not been 
                established, aid paid to such family under the State 
                plan for any month shall be reduced by the amount of 
                such aid allocable to the parent or guardian of such 
                child until--
                            ``(i) paternity has been acknowledged by 
                        the father of such child;
                            ``(ii) a paternity suit has been instituted 
                        with respect to such child; or
                            ``(iii) such parent or guardian 
                        demonstrates to the satisfaction of the State 
                        that the father of such child is dead or 
                        missing;
                    ``(B) subparagraph (A) shall not apply if--
                            ``(i) the child was conceived as a result 
                        of rape or incest;
                            ``(ii) the State determines that efforts to 
                        establish paternity would result in physical 
                        danger to a member of the family claiming aid 
                        under this part; or
                            ``(iii) the State, with the approval of the 
                        Secretary, determines that a reduction in such 
                        aid would impose an undue hardship on the 
                        family claiming such aid; and
                    ``(C) if it is determined that the individual named 
                as the father in a paternity suit instituted under 
                clause (ii) of subparagraph (A) is not the father of 
                the child referred to in such subparagraph, aid paid to 
                the child's family under the State plan for any month 
                shall be--
                            ``(i) reduced by the amount of such aid 
                        allocable to the parent or guardian of such 
                        child in accordance with such subparagraph; and
                            ``(ii) made in the form of payments 
                        described in section 406(b)(2).''.
    (b) All Families.--
            (1) In general.--Section 402(a)(48) (42 U.S.C. 602(a)(46)), 
        as added by subsection (a), is amended by striking ``applying 
        for aid under this part''.
            (2) Effective date.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendment made by paragraph (1) shall take 
                effect on the first day of the second 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 determines requires 
                State legislation (other than legislation authorizing 
                or appropriating funds) in order to comply with the 
                amendments made by paragraph (1), 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.

SEC. 202. EARLIER PATERNITY ESTABLISHMENT EFFORTS BY STATES.

    Section 466(a)(5) (42 U.S.C. 666(a)(5)) is amended by adding at the 
end the following new subparagraph:
            ``(I) Procedures under which a pregnant, unmarried woman is 
        provided information regarding potential ineligibility for, or 
        reductions in, benefits under Federal and State programs, 
        including the aid to families with dependent children program 
        under part A, if such woman fails to establish, or cooperate in 
        the establishment of, the paternity of the child.''.

SEC. 203. INCREASE IN PATERNITY ESTABLISHMENT PERCENTAGE.

    Section 452(g)(1) (42 U.S.C. 652(g)(1)), as amended by section 
13721(a) of the Omnibus Budget Reconciliation Act of 1993, is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``on or after October 1, 1994'' and inserting ``after the date 
        of the enactment of the Welfare Reform Act of 1994''; and
            (2) by striking subparagraphs (A) through (E) and inserting 
        the following:
            ``(A) 90 percent;
            ``(B) for a State with a paternity establishment percentage 
        of not less than 50 percent but less than 90 percent for such 
        fiscal year, the paternity establishment percentage of the 
        State for the immediately preceding fiscal year plus 6 
        percentage points; or
            ``(C) for a State with a paternity establishment percentage 
        of less than 50 percent for such fiscal year, the paternity 
        establishment percentage of the State for the immediately 
        preceding fiscal year plus 10 percentage points.''.

SEC. 204. EFFECTIVE DATE.

    (a) In General.--Except as provided in section 201(b) and 
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 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 III--CHILD SUPPORT ENFORCEMENT

SEC. 301. STATE INFORMATION SYSTEMS.

    (a) State Registries of Child Support Orders.--Section 466(a) (42 
U.S.C. 666(a)), as amended by section 13721(b)(3) of the Omnibus Budget 
Reconciliation Act of 1993, is amended by inserting after paragraph 
(11) the following new paragraph:
            ``(12) Procedures under which the State shall designate a 
        public agency 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) (42 U.S.C. 666(a)), as 
        amended by subsection (a), is amended by inserting after 
        paragraph (12) the following new paragraph:
            ``(13)(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 
        regulations promulgated by the Secretary which prohibit the 
        release of any information that 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) (42 U.S.C. 666(a)), 
        as amended by subsection (a) and paragraph (1), is amended by 
        inserting after paragraph (13) the following new paragraph:
            ``(14) 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 regulations 
                promulgated by the Secretary which prohibit the release 
                of any information that 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. 302. NATIONAL INFORMATION SYSTEMS.

    (a) Expansion of Parent Locator Service.--Section 453 (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 2nd sentence 
        the following: ``Information shall not be disclosed to a 
        custodial parent or a noncustodial parent if it is demonstrated 
        to the satisfaction of the State that the disclosure would 
        jeopardize the safety of any individual.'';
            (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 (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 shall promote efforts to locate any 
noncustodial parent who has a legal obligation to provide child support 
(as defined in section 462(b)) or any custodial parent against whom 
visitation rights are being enforced by providing on-line computer 
access to the records of any Federal, State, or other source of child 
support information.''.
    (c) Information Sharing Regulations.--Section 452(a) (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 paragraph (10)(I) 
        and inserting ``; and'';
            (3) by inserting the following new paragraph immediately 
        after paragraph (10)(I):
            ``(11) prescribe regulations governing information sharing 
        among States, within States, and between the States and the 
        Parent Locator Service--
                    ``(A) to require a State that is attempting to 
                locate a noncustodial parent or collect child support--
                            ``(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 or collect the child support, 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 the State does not have 
                                reason to believe that the noncustodial 
                                parent is in another particular State 
                                or States, to broadcast to all States a 
                                request for such information; and
                    ``(B) to ensure that if a State broadcasts a 
                request for information for the purpose of locating a 
                noncustodial parent or collecting child support under 
                subparagraph (A), such State will receive a response to 
                the request in not more than 48 hours.'';
            (4) by moving the last sentence 2 ems to the left; and
            (5) by striking ``such report under subparagraph (A)'' and 
        inserting ``report under paragraph (10)(A)'' in the last 
        sentence.

SEC. 303. INCOME WITHHOLDING.

    (a) State Role.--Section 466(a) (42 U.S.C. 666(a)), as amended by 
subsections (a) and (b) of section 301, is amended by inserting after 
paragraph (14) the following new paragraph:
            ``(15) 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, 
                the amounts collected as child support.
            ``(16) 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 (17), unless the order does 
        not provide for income withholding, and the noncustodial parent 
        and the custodial parent object.
            ``(17) Procedures under which the State shall designate a 
        State agency to use the uniform income withholding order 
        developed under section 452(a)(12) in connection with the 
        State's child support collection efforts.''.
    (b) Uniform Withholding Order.--Section 452(a) (42 U.S.C. 652(a)), 
as amended by section 302(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 amount of income 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 a form which allows 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) (42 U.S.C. 666(b)(1)) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``and in the case of each other 
                individual employed in the State,'' before ``so much''; 
                and
                    (B) by striking ``parent's'' and inserting 
                ``parent's or individual's'';
            (2) in paragraph (6)(C), by inserting ``of this paragraph 
        and paragraph (9)(B) of this subsection'' after ``(A)''; and
            (3) in paragraph (9)--
                    (A) by inserting ``(A)'' after ``(9)''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(B)(i) If an individual or entity engaged in commerce 
        receives an income withholding order developed under section 
        452(a)(12) and issued by a court or State agency of any State 
        with respect to an employee of such individual or entity, such 
        individual or entity shall--
                    ``(I) immediately provide a copy of the order to 
                the employee subject to the order; and
                    ``(II) within 10 days after receipt of the order, 
                withhold income from the employee in the manner 
                described in paragraph (6)(A)(i) of this subsection, 
                notwithstanding paragraph (4) of this subsection.
            ``(ii) Such an order may be served on the individual or 
        entity directly or by first-class mail.
            ``(iii) Any individual or entity who in good faith complies 
        with such an order may not be held liable for wrongful 
        withholding of income from the employee subject to the order.
            ``(iv) The State shall impose a civil fine on any 
        individual or entity which, due to negligence, fails to comply 
        with an order with respect to an employee within 10 days after 
        receipt of such order. Such civil fine shall be in an amount 
        equal to the lesser of--
                    ``(I) average cost of noncompliance (as determined 
                by the State); or
                    ``(II) $25 for each act or omission constituting 
                noncompliance.
            ``(v) Any individual or entity who imposes a fee for the 
        administration of child support income withholding and related 
        reporting of information shall not collect more than the 
        average cost of such administration, as determined by the 
        State.''.

SEC. 304. UNIFORM TERMS IN ORDERS.

    Section 452(a) (42 U.S.C. 652(a)), as amended by sections 302 and 
303, is amended--
            (1) in paragraph (11), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (12), by striking the period at the end of 
        the 2nd sentence and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(13) develop, in conjunction with State executive and 
        judicial organizations, a uniform child support order for use 
        by all State courts which shall include--
                    ``(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. 305. WORK REQUIREMENT FOR NONCUSTODIAL PARENTS WITH CHILD SUPPORT 
              ARREARAGES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 301 and 
303, is amended by inserting after paragraph (17) the following new 
paragraph:
            ``(18) Procedures requiring that--
                    ``(A) upon a determination by the State agency 
                referred to in section 402(a)(3) that the noncustodial 
                parent of any child who is applying for or receiving 
                aid under the State plan approved under part A owes 
                child support (as defined section 462(b)) with respect 
                to the child, is in arrears in the payment of such 
                support in an amount that is not less than twice the 
                amount of the monthly child support obligation, and is 
                not subject to a court-approved plan for payment of 
                such arrearage, the State agency referred to in section 
                402(a)(3) shall send to the noncustodial parent a 
                letter notifying the noncustodial parent that the 
                noncustodial parent--
                            ``(i) is required to pay child support with 
                        respect to the child; and
                            ``(ii) is subject to fines and other 
                        penalties for failure to pay the full amount of 
                        such support in a timely manner; and
                    ``(B) except with respect to a noncustodial parent 
                described in subparagraph (A) who is employed or 
                incapacitated--
                            ``(i) if, by the end of the 30-day period 
                        that begins with the date the letter is sent 
                        pursuant to subparagraph (A), the amount of the 
                        arrearage has not decreased by at least a 
                        percentage amount specified by the State 
                        agency, the State shall seek a court order 
                        requiring the noncustodial parent to 
                        participate in a job search program established 
                        by the State, for not less than 2 weeks and not 
                        more than 4 weeks; and
                            ``(ii) if, by the end of the 30-day period 
                        beginning on the date the order under 
                        subparagraph (B) is entered, the amount of the 
                        arrearage has not decreased by at least a 
                        percentage amount specified by the State 
                        agency, the noncustodial parent shall 
                        participate in a work program established by 
                        the State, for not less than 35 hours per week 
                        (or, if the program also requires job search, 
                        for not less than 32 hours per week).''.

SEC. 306. 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 determines requires State legislation (other than 
legislation authorizing or appropriating funds) in order to comply with 
the amendments made by this section, 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 IV--EXPANSION OF STATUTORY FLEXIBILITY OF STATES

SEC. 401. OPTION TO INCREASE OR DECREASE PAYMENTS BASED ON PREVENTIVE 
              HEALTH CARE AND IMMUNIZATIONS FOR CHILDREN.

    (a) In General.--
            (1) Increase in afdc benefits.--Section 402(a) (42 U.S.C. 
        602(a)), as amended by sections 101, 102, and 201, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (47);
                    (B) by striking the period at the end of paragraph 
                (48) and inserting ``; and''; and
                    (C) by inserting after paragraph (48) the following 
                new paragraph:
            ``(49) unless the State has enacted a law exempting itself 
        from the application of this paragraph, provide that--
                    ``(A) the State shall increase (in accordance with 
                any methodology determined appropriate by the State) 
                the amount paid to a family under this part by up to 
                $50 for any month (but not exceeding $300 in the 
                aggregate) with respect to which the State agency 
                receives written verification from a licensed health 
                care provider (on a form prescribed by the State) that 
                each child in such family who is under the age of 6--
                            ``(i) has received early and periodic 
                        screening, diagnostic, and treatment services 
                        (as defined in section 1905(r)); and
                            ``(ii) has been immunized in accordance 
                        with recommendations issued by the Surgeon 
                        General of the Public Health Service;''.
            (2) Reduction in afdc benefits.--Section 402(a)(49) (42 
        U.S.C. 602(a)(49)), as added by paragraph (1), is amended by 
        adding at the end the following new subparagraph:
                    ``(B) the State shall decrease (in accordance with 
                any methodology determined appropriate by the State) 
                the amount paid to a family under this part by up to 
                $50 for any month with respect to which the State 
                agency fails to receive written verification from a 
                licensed health care provider (on a form prescribed by 
                the State) that each child in such family who is under 
                the age of 6--
                            ``(i) has received early and periodic 
                        screening, diagnostic, and treatment services 
                        (as defined in section 1905(r)); and
                            ``(ii) has been immunized in accordance 
                        with recommendations issued by the Surgeon 
                        General of the Public Health Service; and''.
            (3) Education and outreach activities.--Section 402(a)(49) 
        (42 U.S.C. 602(a)(49)), as added by paragraph (1) and amended 
        by paragraph (2), is amended by adding at the end the following 
        new subparagraph:
                    ``(C) the State will conduct appropriate education 
                and outreach activities designed to--
                            ``(i) increase public awareness of the 
                        importance of preventive health care and 
                        immunizations for pre-school children; and
                            ``(ii) inform the public about--
                                    ``(I) the availability of 
                                preventive health care and immunization 
                                services for pre-school children;
                                    ``(II) any transportation, child 
                                care, or other support services that 
                                may be available to assist parents in 
                                obtaining such services for their 
                                children; and
                                    ``(III) the clinics at which any 
                                child may receive immunizations free or 
                                at a reduced charge.''.
    (b) Issuance of Immunization Recommendations by the Surgeon General 
of the Public Health Service.--After taking into consideration the most 
recent report of the Committee on Infectious Diseases of the American 
Academy of Pediatrics, the Surgeon General of the Public Health Service 
shall issue, and revise from time to time, recommendations for the 
immunization of children under 6 years of age. With respect to each 
recommended immunization, such recommendation shall include--
            (1) contraindications (if any) that should be identified to 
        exempt a child from receiving such immunization, and
            (2) remedial action that may be taken to minimize the 
        adverse effect of failure to administer such immunization to a 
        child at the recommended age.

SEC. 402. OPTION TO INCREASE OR DECREASE PAYMENTS BASED ON ATTENDANCE 
              AT EDUCATIONAL INSTITUTIONS AND PARTICIPATION IN 
              VOCATIONAL OR TECHNICAL TRAINING.

    (a) Increase in AFDC Benefits.--Section 402(a) (42 U.S.C. 602(a)), 
as amended by sections 101, 102, 201, and 401, is amended--
            (1) by striking ``and'' at the end of paragraph (48);
            (2) by striking the period at the end of paragraph (49) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (49) the following new 
        paragraph:
            ``(50) at the option of the State, provide that--
                    ``(A) the aid otherwise payable under the plan to a 
                family may be increased by not more than $75 per month 
                if each member of such family who is attending an 
                educational institution or participating in a course of 
                vocational or technical training has maintained minimum 
                attendance (as defined by the State in consultation 
                with the Secretary) at such institution or in such 
                course during the immediately preceding month; and''.
    (b) Decrease in AFDC Benefits.--Section 402(a)(50) (42 U.S.C. 
602(a)(50)), as added by paragraph (1), is amended by adding at the end 
the following new subparagraph:
                    ``(B) the aid otherwise payable under the plan to a 
                family may be reduced by not more than $75 per month if 
                a member of such family who is attending an educational 
                institution or participating in a course of vocational 
                or technical training fails, without good cause (as 
                defined by the State in consultation with the 
                Secretary), during the immediately preceding month, to 
                maintain minimum attendance (as defined by the State in 
                consultation with the Secretary) at such institution or 
                in such course.''.

SEC. 403. OPTION TO DENY AFDC FOR ADDITIONAL CHILDREN.

    Section 402(a) (42 U.S.C. 602(a)), as amended by sections 101, 102, 
201, 401, and 402, is amended--
            (1) by striking ``and'' at the end of paragraph (49);
            (2) by striking the period at the end of paragraph (50) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (50) the following new 
        paragraph:
            ``(51) at the option of the State, provide that aid under 
        the plan shall not be payable with respect to a child conceived 
        by a recipient of aid under the plan.''.

SEC. 404. OPTION TO PROVIDE MARRIED COUPLE TRANSITION BENEFIT.

    Section 402(a) (42 U.S.C. 602(a)), as amended by sections 101, 102, 
201, 401, 402, and 403, is amended--
            (1) by striking ``and'' at the end of paragraph (50);
            (2) by striking the period at the end of paragraph (51) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (51) the following new 
        paragraph:
            ``(52) at the option of the State, provide that--
                    ``(A) if a recipient of aid under the plan marries 
                an individual who is not a parent of a child of the 
                recipient and (but for this paragraph) the resulting 
                family would have become ineligible for such aid by 
                reason of the marriage, then the family shall remain 
                eligible for aid under the plan, in an amount equal to 
                50 percent of the aid payable to the recipient 
                immediately before the marriage, for a period 
                (specified by the State) of not more than 12 months, 
                but only for so long as the income of the family is 
                less than 150 percent of the income official poverty 
                line (as defined by the Office of Management and 
                Budget, and revised annually in accordance with section 
                673(2) of the Omnibus Budget Reconciliation Act of 
                1981) applicable to a family of the size involved; and
                    ``(B) if a recipient of aid under the plan marries 
                an individual who is not a parent of a child of the 
                recipient and the resulting family would (in the 
                absence of this subparagraph) be eligible for such aid 
                by reason of section 407, then the State may provide 
                aid to the family in accordance with section 407 or 
                subparagraph (A) of this paragraph, but not both.''.

SEC. 405. OPTION TO TREAT INTERSTATE IMMIGRANTS UNDER RULES OF FORMER 
              STATE.

    Section 402(a) (42 U.S.C. 602(a)), as amended by sections 101, 102, 
201, 401, 402, 403, and 404, is amended--
            (1) by striking ``and'' at the end of paragraph (51);
            (2) by striking the period at the end of paragraph (52) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (52) the following new 
        paragraph:
            ``(53) at the option of the State, in the case of a family 
        applying for aid under the State plan that has moved to the 
        State from another jurisdiction of the United States with a 
        State plan approved under this part, and has resided in the 
        State for less than 12 months consecutively (as determined by 
        the State), apply the rules that would have been applied by 
        such other jurisdiction if the family had not moved from such 
        other jurisdiction in determining--
                    ``(A) the eligibility of the family for benefits, 
                and
                    ``(B) the amount of benefits payable to the family 
                under the State plan,
        during the 12 month period beginning on the date the family 
        moved to the State (as determined by the State).''.

SEC. 406. OPTION TO REQUIRE ATTENDANCE AT PARENTING AND MONEY 
              MANAGEMENT CLASSES.

    Section 402(a) (42 U.S.C. 602(a)), as amended by sections 101, 102, 
201, 401, 402, 403, 404, and 405, is amended--
            (1) by striking ``and'' at the end of paragraph (52);
            (2) by striking the period at the end of paragraph (53) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (53) the following new 
        paragraph:
            ``(54) at the option of the State, provide that, as a 
        condition of receiving aid under the State plan, the recipient 
        shall attend parenting and money management classes determined 
        necessary and appropriate by the State.''.

SEC. 407. OPTION TO DENY AFDC ELIGIBILITY TO CERTAIN TEENAGERS; 
              REQUIREMENT THAT TEENAGERS ELIGIBLE FOR AFDC LIVE AT 
              HOME.

    (a) Option to Deny AFDC Eligibility to Certain Teenagers.--Section 
402(a) (42 U.S.C. 602(a)), as amended by sections 101, 102, 201, 401, 
402, 403, 404, 405, and 406 is amended--
            (1) by striking ``and'' at the end of paragraph (53);
            (2) by striking the period at the end of paragraph (54) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (54) the following new 
        paragraph:
            ``(55) at the option of the State, provide that any 
        individual who is under the age of 18 and has never married, 
        and who has a dependent child in his or her care or is 
        pregnant, shall be ineligible for aid to families with 
        dependent children under this part.''.
    (b) Requirement That Teenagers Eligible for AFDC Live at Home.--
Section 402(a)(43) (42 U.S.C. 602(a)(43)) is amended by striking ``at 
the option of the State'' and inserting ``if the State has not opted to 
deny eligibility under paragraph (55)''.
    (c) Continued Eligibility for Medicaid Program.--Section 402 (42 
U.S.C. 602) is amended by inserting the following new subsection after 
subsection (c):
    ``(d) A State that opts to deny eligibility for aid to families 
with dependent children under this part to the individuals described in 
subsection (a)(55) shall provide that such individuals shall be 
considered individuals receiving such aid for purposes of eligibility 
for medical assistance under the State plan approved under title 
XIX.''.
    (d) Use of Savings.--Each State shall use the savings recognized by 
the State under the aid to families with dependent children program 
under title IV of the Social Security Act as a result of the amendments 
made by this section for funding--
            (1) group homes for individuals described in section 
        402(a)(55) of such Act;
            (2) adoption assistance programs; and
            (3) abstinence education programs.

SEC. 408. DISREGARD OF EDUCATION AND EMPLOYMENT TRAINING SAVINGS FOR 
              AFDC ELIGIBILITY.

    (a) Disregard as Resource.--Subparagraph (B) of section 402(a)(7) 
(42 U.S.C. 602(a)(7)) is amended--
            (1) by striking ``or'' before ``(iv)'', and
            (2) by inserting ``, or (v) at the option of the State, any 
        amount up to the amount established by the State in a qualified 
        education account (as defined in section 406(i)(1))'' before 
        ``; and''.
    (b) Disregard as Income.--Subparagraph (A) of section 402(a)(8) (42 
U.S.C. 602(a)(8)) is amended--
            (1) by striking ``and'' at the end of clause (vii), and
            (2) by inserting after clause (viii) the following new 
        clause:
                            ``(ix) shall disregard any qualified 
                        distributions (as defined in section 406(i)(2)) 
                        made from any qualified education account (as 
                        defined in section 406(i)(1)) while the family 
                        is receiving aid to families with dependent 
                        children; and''.
    (c) Qualified Education Accounts.--Section 406 (42 U.S.C. 606) is 
amended by adding at the end the following new subsection:
    ``(i)(1) The term `qualified education account' means a mechanism 
established by the State that allows savings from the earned income of 
a dependent child who is a member of a family receiving aid to families 
with dependent children to be used for qualified distributions.
    ``(2) The term `qualified distributions' means distributions from a 
qualified education account for expenses directly related to the 
attendance at an eligible educational institution by a dependent child 
who is a member of a family receiving aid to families with dependent 
children.
    ``(3) The term `eligible educational institution' means an 
educational institution determined to be eligible by the State under 
guidelines established by the Secretary.''.

SEC. 409. 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 determines requires State legislation (other than 
legislation authorizing or appropriating funds) in order to comply with 
the amendments made by this section, 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 V--EXPEDITED STATE WAIVER AUTHORITY

SEC. 501. INTERAGENCY WAIVER REQUEST BOARD.

    (a) Establishment and Purpose.--In order to provide a focal point 
within the Federal Government for the development and coordination of 
waiver requests designed to improve opportunities for low-income 
individuals and families, there is established an Interagency Waiver 
Request Board.
    (b) Membership.--
            (1) Permanent members.--The Board shall consist of 9 
        permanent members, as follows:
                    (A) The Secretary of Agriculture (or the designee 
                of the Secretary).
                    (B) The Secretary of Health and Human Services (or 
                the designee of the Secretary).
                    (C) The Secretary of Housing and Urban Development 
                (or the designee of the Secretary).
                    (D) The Secretary of Labor (or the designee of the 
                Secretary).
                    (E) The Secretary of Education (or the designee of 
                the Secretary).
                    (F) The Attorney General of the United States (or 
                the designee of the Attorney General).
                    (G) The Secretary of the Interior (or the designee 
                of the Secretary).
                    (H) The Director of the Office of Management and 
                Budget (or the designee of the Director).
                    (I) 1 individual appointed by the President.
            (2) Limited purpose members.--
                    (A) In general.--With respect to an application 
                submitted under this title, the Board shall include the 
                head of each department or agency (or the designee of 
                the head) having responsibility for the administration 
                of a program included in the assistance plan contained 
                in the application.
                    (B) Board of directors of the legal services 
                corporation.--The Board of Directors of the Legal 
                Services Corporation is deemed to be the head of the 
                department or agency having responsibility for the 
                administration of the program of legal assistance to 
                eligible clients and other programs under the Legal 
                Services Corporation Act (42 U.S.C. 2996 et seq.).
    (c) Chairperson.--The member of the Board appointed under 
subsection (b)(1)(I) shall serve as Chairperson of the Board.
    (d) Vacancies.--A vacancy in the position of Chairman shall be 
filled in the manner in which the original appointment was made.
    (e) No Additional Compensation.--The members of the Board may not 
be provided additional pay, allowances, or benefits by reason of their 
service on the Board.
    (f) Powers.--
            (1) Assistance of other federal entities.--A member of the 
        Board shall detail to the Chairperson, on a nonreimbursable 
        basis, such officers and employees of the department or agency 
        headed by the member, and shall make available to the 
        Chairperson such assistance, as the Chairperson may require to 
        carry out the activities of the Chairperson.
            (2) Use of united states mails.--The Chairperson may use 
        the United States mails in the same manner and under the same 
        conditions as other departments and agencies of the United 
        States.
            (3) Acceptance of gifts, bequests, and devises.--The 
        Chairperson may accept, use, and dispose of gifts, bequests, or 
        devises of services or property, both real and personal, for 
        the purpose of aiding or facilitating the work of the 
        Chairperson. Gifts, bequests, or devises of money and proceeds 
        from sales of other property received as gifts, bequests, or 
        devises shall be deposited in the Treasury and shall be 
        available for disbursement upon order of the Chairperson.
    (g) Duty to Provide Technical Assistance.--The Board shall provide 
assistance and technical advice to entities submitting applications 
under section 502 and implementing an assistance plan under an 
application approved under section 503.
    (h) Procedure.--
            (1) Meetings.--The Board shall meet not less than twice 
        annually at the call of the Chairperson, or of at least 3 
        permanent members.
            (2) Notice of decisions.--The Chairperson shall provide the 
        Board with advance notice of any action that the Chairperson 
        intends to take under this title.
            (3) Power of board majority to overrule chairperson.--
        Notwithstanding any other provision of this title, a majority 
        of the members of the Board with respect to a matter may 
        overrule any decision or nullify any action of the Chairperson 
        under this title with respect to the matter.
    (i) Annual Reports.--The Chairperson shall transmit annually to the 
Congress a report containing a detailed statement of the activities of 
the Board during the year covered by the report.

SEC. 502. APPLICATION TO IMPLEMENT ASSISTANCE PLANS.

    Any entity that is receiving or is eligible to receive funds or 
other assistance under an eligible Federal program and desires to 
reform any number of such programs may submit to the Chairperson an 
application that contains the following:
            (1) Assistance plan.--An assistance plan that sets forth 
        the following:
                    (A) Geographic area.--The geographic area to which 
                the plan applies and the rationale for so defining the 
                area.
                    (B) Recipients.--The particular groups of 
                individuals, by age, service needs, economic 
                circumstances, or other defining factors, who are to 
                receive services and benefits under the plan.
                    (C) Objectives and performance criteria.--Specific 
                objectives and criteria for measuring levels of 
                performance, a description of how such objectives and 
                levels of performance are expected to be achieved, a 
                description of how such criteria are to be used to 
                measure performance, and a system for the comprehensive 
                evaluation of the impact of the plan on participants, 
                the community, and program costs.
                    (D) Covered programs.--The eligible Federal 
                programs through which assistance is to be improved in 
                accordance with the plan, and the specific benefits 
                that are to be provided under the plan pursuant to the 
                program or programs, including criteria for determining 
                eligibility for benefits under the plan, the services 
                available, the amounts and form (such as cash, in-kind 
                contributions, or financial instruments) of nonservice 
                benefits.
                    (E) Sources of non-federal funds.--A description of 
                the sources of all non-Federal funds that are to be 
                used to carry out the program or programs referred to 
                in subparagraph (D).
                    (F) Fiscal control and accountability.--Fiscal 
                control and related accountability procedures that are 
                to apply under the plan.
                    (G) Consent of qualified organizations.--Written 
                consent from each qualified organization for which 
                consent is required under section 503(c)(2)(B).
                    (H) Approval of affected state and local public 
                entities.--A written statement, from each State or 
                local public entity to which the Federal funds or 
                assistance would otherwise be provided under the 
                program or programs, that the entity approves of the 
                proposal and will cooperate in the implementation of 
                the proposal by the applicant.
            (2) Assurances.--
                    (A) Provision of plan to affected organs of 
                government in the state.--Assurances that a copy of the 
                plan has been provided to all affected organs of 
                government in the geographic area referred to in 
                paragraph (1)(A).
                    (B) Consultation with public-private partnership 
                committee.--Assurances that a committee established 
                under section 505 has participated in the development 
                of the plan.
            (3) Request for authority to implement plan.--A request 
        that the Chairperson authorize the applicant to implement the 
        plan, and waive the application of any Federal statutory or 
        regulatory requirement to the extent necessary to enable such 
        implementation.
            (4) Other information.--Any other information the 
        Chairperson may require to approve the application.

SEC. 503. REVIEW AND APPROVAL OF APPLICATIONS; WAIVERS.

    (a) Review.--
            (1) In general.--Upon receipt of an application submitted 
        in accordance with section 502, the Chairperson shall--
                    (A) approve or disapprove the application within 90 
                days after such receipt;
                    (B) notify the applicant in writing of such 
                approval or disapproval; and
                    (C) if the application is disapproved, include in 
                the notice of disapproval a written justification of 
                the reasons for such disapproval.
            (2) Deemed approval.--If the Chairperson fails to approve 
        or disapprove the application in accordance with paragraph 
        (1)(A), the application shall be deemed approved.
    (b) Conditional Approval.--The Chairperson may condition approval 
of such an application on the acceptance by the applicant, and by any 
parties whose consent or approval is required under section 502, of 
specified modifications to the application.
    (c) Approval.--
            (1) Requirements.--The Chairperson may approve such an 
        application, subject to paragraph (2), if the Chairperson 
        determines that--
                    (A) the implementation of the assistance plan 
                contained in the application will improve the 
                effectiveness and efficiency of providing benefits 
                under the covered program or programs included in the 
                plan, by reducing administrative rigidity, duplication, 
                and unnecessary expenditures;
                    (B) the applicant has adequately considered, and 
                the application appropriately addresses, the effects 
                that the administration of each covered program 
                included in the plan will have on the administration of 
                any other such program;
                    (C) the applicant has or is developing data bases, 
                planning, and evaluation processes that are adequate 
                for implementing the plan;
                    (D) implementation of the plan will adequately 
                achieve the purposes of this title and of such covered 
                program or programs; and
                    (E) the plan is adequate to ensure that individuals 
                and families that receive benefits under the covered 
                program or programs included in the plan will continue 
                to receive benefits that meet the needs intended to be 
                met under the program or programs.
            (2) Limitations.--The Chairperson may not approve such an 
        application if--
                    (A) implementation of the assistance plan contained 
                in the application would result in an increase in the 
                total amount of obligations or outlays of discretionary 
                appropriations or direct spending under the covered 
                program or programs included in the plan, over the 
                amounts of such obligations and outlays that would 
                occur under the program or programs without 
                implementation of the plan; or
                    (B) if the plan applies to assistance to a 
                qualified organization under an eligible Federal 
                program, the qualified organization does not consent in 
                writing to the receipt of such assistance in accordance 
                with the plan.
            (3) Implementation period.--In approving such an 
        application, the Chairperson shall specify that the assistance 
        plan contained in the application shall be implemented for an 
        initial period of 5 years and may be renewed for subsequent 5-
        year periods.
    (d) Waivers.--
            (1) In general.--Subject to this subsection, the 
        Chairperson may waive any requirement applicable under Federal 
        law to the administration of, or provision of benefits under, 
        any covered program included in an application approved under 
        this title, if the waiver is reasonably necessary for the 
        implementation of the assistance plan contained in the approved 
        application.
            (2) Funding limitation.--This subsection shall not be 
        construed to authorize the Chairperson to waive the application 
        to any entity of a provision of law or regulation applicable to 
        a program if the waiver would result in net payments by the 
        Federal Government to the entity under the program for a fiscal 
        year in excess of the net payments which would otherwise be so 
        made to the entity.
            (3) Civil rights laws excepted.--This subsection shall not 
        be construed to authorize the Chairperson to waive any 
        requirement established by statute or regulation under--
                    (A) title VI of the Civil Rights Act of 1964 (42 
                U.S.C. 2000d et seq.);
                    (B) section 504 of the Rehabilitation Act of 1973 
                (29 U.S.C. 701 et seq.);
                    (C) title IX of the Education Amendments of 1972 
                (86 Stat. 373 et seq.);
                    (D) the Age Discrimination Act of 1975 (42 U.S.C. 
                6101 et seq.); or
                    (E) the Americans With Disabilities Act of 1990.

SEC. 504. IMPLEMENTATION OF ASSISTANCE PLANS; EVALUATIONS.

    (a) In General.--Notwithstanding any other provision of law, 
benefits under any covered program included in an application approved 
under this title shall be paid and administered in the manner specified 
in the approved application.
    (b) Evaluations.--
            (1) In general.--Any entity whose application is approved 
        under this title shall, in accordance with regulations issued 
        by the Chairperson--
                    (A) submit such reports on, and cooperate in such 
                audits of, the implementation of the assistance plan 
                contained in the application; and
                    (B) periodically evaluate the effects that 
                implementation of the plan has had on--
                            (i) individuals who receive benefits under 
                        a covered program included in the plan;
                            (ii) communities where such individuals 
                        live; and
                            (iii) costs of administering the covered 
                        program or programs included in the plan.
            (2) Annual reports.--Not later than 90 days after the end 
        of the 1-year period beginning on the date the application of 
        an entity is approved under this title, and annually thereafter 
        for each year in which the assistance plan is implemented, the 
        entity shall submit to the Chairperson a report on the 
        principal activities and achievements under the assistance plan 
        contained in the application, during the period covered by the 
        report, and, if the application was submitted under section 
        502(a), the report shall compare those achievements to the 
        objectives and performance criteria included in the plan 
        pursuant to section 502(a)(1)(C).
    (c) Final Report.--Not later than 45 days after the end of the 
period for which the Chairperson has initially authorized an entity to 
implement an assistance plan, or at any time that the entity determines 
that the plan has demonstrated its worth and proven to be a superior 
way to provide benefits under the covered program or programs included 
in the plan, the entity shall submit to the Chairperson a final report 
on such implementation, including a full evaluation of the successes 
and shortcomings of the plan and the effects of such implementation on 
individuals who receive benefits under such program or programs.
    (d) Suspension and Termination.--
            (1) In general.--The Chairperson may require an entity to 
        suspend or terminate implementation of part or all of an 
        assistance plan under--
                    (A) any approved application under this title if 
                the Chairperson finds that the applicant has failed to 
                carry out a covered program in accordance with any 
                applicable provision of law or regulation; or
                    (B) an approved application that was submitted 
                under section 502(a), if, after consultation with the 
                head of each Federal agency responsible for 
                administering a covered program included in the 
                approved application, the Chairperson determines that 
                the objectives and performance criteria included in the 
                plan pursuant to section 502(a)(1)(C) have not been 
                met.
            (2) Timing.--In requiring the implementation of an 
        assistance plan to be terminated under paragraph (1), the 
        Chairperson shall allow a reasonable period of time for 
        appropriate Federal, State, and local agencies, and qualified 
        organizations to resume administration of the covered program 
        or programs included in the application that contains the plan.

SEC. 505. PUBLIC-PRIVATE PARTNERSHIP COMMITTEES.

    (a) Establishment.--An entity desiring to submit an application 
under section 502(a) shall establish a Public-Private Partnership 
Committee in accordance with this section.
    (b) Functions.--A Public-Private Partnership Committee shall advise 
an entity in the development and implementation of an assistance plan, 
including with respect to--
            (1) conducting public hearings;
            (2) representing the interest of low-income individuals and 
        families; and
            (3) reviewing and commenting on all community policies, 
        programs, and actions under the plan which affect low-income 
        individuals and families, with the purpose of assuring maximum 
        coordination and responsiveness of the plan in providing 
        benefits under the plan to those individuals and families.
    (c) Membership.--The membership of a Public-Private Partnership 
Committee shall--
            (1) consist of--
                    (A) low-income individuals, who shall--
                            (i) comprise at least \1/3\ of the 
                        membership; and
                            (ii) include minority individuals who are 
                        participants or who qualify to participate in 
                        eligible Federal programs;
                    (B) representatives of low-income individuals and 
                families;
                    (C) persons with leadership experience in the 
                private and voluntary sectors;
                    (D) local elected officials; and
                    (E) the general public; and
            (2) include individuals and representatives of community 
        and business organizations who will help to enhance the 
        leadership role of the entity in developing an assistance plan.

SEC. 506. DEFINITIONS.

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

SEC. 507. REPORTS.

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

SEC. 508. SUNSET.

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

               TITLE VI--WELFARE RESTRICTIONS FOR ALIENS

SEC. 601. ELIGIBILITY OF CERTAIN ALIENS FOR CERTAIN FEDERAL BENEFITS.

    (a) Provisions Relating to Unlawful Aliens.--
            (1) Direct federal financial benefits.--
                    (A) In general.--On and after the date of the 
                enactment of this Act, notwithstanding any other 
                provision of law, no benefits shall be available under 
                the programs described in subparagraph (B) to an 
                unlawful alien (as defined in subsection (c)(2)) except 
                pursuant to a provision of the Immigration and 
                Nationality Act.
                    (B) Programs described.--The programs described in 
                this subparagraph are the following:
                            (i) The aid to families with dependent 
                        children program under title IV of the Social 
                        Security Act.
                            (ii) The medicaid program under title XIX 
                        of the Social Security Act (except for care and 
                        services for the treatment of an emergency 
                        medical condition under section 1903(v) of the 
                        Social Security Act).
                            (iii) The food stamp program under the Food 
                        Stamp Act of 1977.
                            (iv) The supplemental security income 
                        program under title XVI of the Social Security 
                        Act.
                            (v) Any Federal unemployment compensation 
                        program.
            (2) Notification of aliens.--The Federal agency 
        administering a program referred to in paragraph (1)(B) shall, 
        directly or through the States, notify any unlawful alien (as 
        defined in subsection (c)(2)) who is receiving benefits under 
        the program on the date of the enactment of this Act and whose 
        eligibility for the program is or will be terminated by reason 
        of this subsection.
    (b) Provisions Relating to Lawful Aliens.--
            (1) Reporting by federal agencies.--On and after the date 
        of the enactment of this Act, notwithstanding any other 
        provision of law, any lawful alien (as defined in subsection 
        (c)(1)) who receives benefits under a program described in 
        subsection (a)(1)(B) for more than 12 months shall be reported 
        to the Immigration and Naturalization Service and shall be 
        treated as a public charge for purposes of section 241(a)(5) of 
        the Immigration and Nationality Act.
            (2) Attribution of sponsor's income and resources to family 
        preference aliens.--On and after the date of the enactment of 
        this Act, notwithstanding any other provision of law, for 
        purposes of determining eligibility of, and the amount of 
        benefits for, a lawful alien (as defined in subsection (c)(1)) 
        under a program described in subsection (a)(1)(B)--
                    (A) the income and resources of any person who, as 
                a sponsor of such alien's entry into the United States, 
                executed an affidavit of support or similar agreement 
                with respect to such alien, and
                    (B) the income and resources of such sponsor's 
                spouse,
        shall be deemed to be the unearned income and resources of such 
        alien until such time as the alien achieves United States 
        citizenship through naturalization pursuant to chapter 2 of 
        title 3 of the Immigration and Nationality Act.
    (c) Definitions.--For the purposes of this section--
            (1) Lawful alien.--
                    (A) In general.--The term ``lawful alien'' means an 
                individual who is described in subparagraph (B) at the 
                time the individual applies for, receives, or attempts 
                to receive any Federal benefit.
                    (B) Individuals described.--An individual described 
                in this subparagraph is--
                            (i) a national of the United States,
                            (ii) an alien lawfully admitted for 
                        permanent residence,
                            (iii) an asylee,
                            (iv) a refugee,
                            (v) an alien whose deportation has been 
                        withheld under section 243(h) of the 
                        Immigration and Nationality Act, or
                            (vi) a parolee who has been paroled for a 
                        period of 1 year or more.
            (2) Unlawful alien.--The term ``unlawful alien'' means an 
        individual who is not--
                    (A) a United States Citizen; or
                    (B) an individual described in paragraph (1)(B) at 
                the time the individual applies for, receives, or 
                attempts to receive any Federal benefit.

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

    (a) In General.--Section 402(a) (42 U.S.C. 602(a)), as amended by 
sections 101, 102, 201, 401, 402, 403, 404, 405, 406, and 407 is 
amended--
            (1) by striking ``and'' at the end of paragraph (54);
            (2) by striking the period at the end of paragraph (55) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (55) the following new 
        paragraph:
            ``(56) require the State agency to provide to the 
        Immigration and Naturalization Service the name, address, and 
        other identifying information that the agency has with respect 
        to any individual unlawfully in the United States any of whose 
        children is a citizen of the United States.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall take effect on the first 
        day of the first fiscal year beginning after the date of the 
        enactment of this Act.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan approved under section 402(a) of the 
        Social Security Act which the Secretary of Health and Human 
        Services determines requires State legislation (other than 
        legislation appropriating funds) in order for the plan to meet 
        the additional requirement imposed by the amendment made by 
        subsection (a) of this section, the State plan shall not be 
        regarded as failing to comply with the requirements of such 
        section 402(a) solely on the basis of the failure of the plan 
        to meet such additional requirement before the end of the 2-
        year period that begins with the date of the enactment of this 
        Act.

                        TITLE VII--MISCELLANEOUS

SEC. 701. RESTRICTION ON PAYMENT OF BENEFITS TO INDIVIDUALS CONFINED BY 
              COURT ORDER TO PUBLIC INSTITUTIONS PURSUANT TO VERDICTS 
              OF NOT GUILTY BY REASON OF INSANITY OR OTHER MENTAL 
              DISORDER.

    (a) In General.--Section 202(x)(1) (42 U.S.C. 402(x)(1)) is 
amended--
            (1) by inserting ``(A)'' after ``(1)'', and
            (2) by adding at the end the following new subparagraph:
    ``(B) Notwithstanding any other provision of this title, no monthly 
benefits shall be paid under this section or under section 223 to any 
individual for any month during which such individual is confined in 
any public institution by a court order pursuant to a verdict that the 
individual is guilty, but insane, or not guilty of an offense by reason 
of insanity (or by reason of a similar finding, such as a mental 
disease, a mental defect, or mental incompetence).''.
    (b) Conforming Amendments.--
            (1) The heading for section 202(x) (42 U.S.C. 402(x)) is 
        amended by inserting ``and Certain Other Inmates of Public 
        Institutions'' after ``Prisoners''.
            (2) Section 202(x)(3) (42 U.S.C. 402(x)(3)) is amended by 
        striking ``any individual'' and all that follows and inserting 
        ``any individual confined as described in paragraph (1) if the 
        jail, prison, penal institution, correctional facility, or 
        other public institution to which such individual is so 
        confined is under the jurisdiction of such agency and the 
        Secretary requires such information to carry out the provisions 
        of this section.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply with respect to 
        benefits for months beginning on or after the first day of the 
        first fiscal year beginning after the date of the enactment of 
        this Act.
            (2) Special rule regarding payments to institutions.--The 
        amendment made by subsection (a) shall not apply to any payment 
        with respect to any individual, if, as of the date of the 
        enactment of this Act, such payment is made directly to the 
        public institution to compensate such institution for the 
        expense of institutionalizing such individual.

SEC. 702. AFDC RECIPIENTS REQUIRED TO UNDERGO NECESSARY SUBSTANCE ABUSE 
              TREATMENT AS A CONDITION OF RECEIVING AFDC.

    (a) In General.--Section 402(a) (42 U.S.C. 602(a)) is amended by 
inserting after paragraph (34) the following new paragraph:
            ``(35) provide that--
                    ``(A) as a condition of eligibility for aid under 
                the State plan, each applicant or recipient who the 
                State determines is addicted to alcohol or drugs must 
                be required to participate, and must maintain 
                satisfactory participation (as determined by the 
                State), in an appropriate addiction treatment program, 
                and must be required to submit to tests for the 
                presence of alcohol or drugs, without advance notice, 
                during and after such participation;
                    ``(B) each applicant or recipient who fails to 
                comply with any requirement imposed pursuant to 
                subparagraph (A) shall not be eligible for such aid 
                during the 2-year period that begins with such failure 
                to comply, but shall be considered to be receiving such 
                aid for purposes of eligibility for medical assistance 
                under the State plan approved under title XIX; and
                    ``(C) no applicant or recipient shall be considered 
                to have failed to comply with any requirement imposed 
                pursuant to subparagraph (A) if an appropriate 
                addiction treatment program is unavailable to such 
                applicant or recipient under the system established by 
                the State for determining priorities with respect to 
                the availability of treatment services.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall take effect on the first 
        day of the first fiscal year beginning after the date of the 
        enactment of this Act.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan approved under section 402(a) of the 
        Social Security Act which the Secretary of Health and Human 
        Services determines requires State legislation (other than 
        legislation appropriating funds) in order for the plan to meet 
        the additional requirement imposed by the amendment made by 
        subsection (a) of this section, the State plan shall not be 
        regarded as failing to comply with the requirements of such 
        section 402(a) solely on the basis of the failure of the plan 
        to meet such additional requirement before the end of the 2-
        year period that begins with the date of the enactment of this 
        Act.

SEC. 703. EVALUATION OF EDUCATION AND TRAINING PROGRAMS.

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

SEC. 704. FRAUD AND ADMINISTRATIVE EFFICIENCY.

    (a) Demonstration Projects.--
            (1) In general.--The Secretary of Health and Human Services 
        (hereafter referred to in this section as the ``Secretary'') 
        may conduct demonstration projects in several States to 
        determine whether providing benefits based on need through the 
        use of electronic cards and automatic teller machines would 
        reduce administrative costs and fraud.
            (2) Report to the congress.--Within 5 years after the date 
        of the enactment of this Act, the Secretary shall submit to the 
        Congress a report that--
                    (A) summarizes the results of the projects; and
                    (B) makes recommendations with respect to whether 
                and how more States might be required or encouraged to 
                use electronic funds transfer in providing benefits 
                based on need.
    (b) General Requirements on Electronic Benefit Transfer Projects.--
Federal financial participation shall not be available for any 
electronic benefit transfer system developed under a project conducted 
by a State under title IV of the Social Security Act (including the 
demonstration projects conducted under subsection (a)) unless--
            (1) the system is budget neutral to the Federal Government;
            (2) any cost savings associated with the system are shared 
        proportionately by the State and the Federal Government;
            (3) reasonable time frames for development and 
        implementation of the system are provided and such time frames 
        result in minimal disruption to beneficiaries;
            (4) the number of transactions allowed to beneficiaries and 
        service fees charged to beneficiaries for transactions under 
        the system ensure reasonable access to benefits;
            (5) the State has implemented anti-fraud procedures under 
        the system;
            (6) the State has in place procedures which ensure the 
        privacy of beneficiaries receiving benefits under the system;
            (7) payments for any hardware necessary for the system are 
        made by the State;
            (8) if the State adapts the system for use in other Federal 
        or State programs, the State and the Secretary agree on an 
        equitable cost accounting system; and
            (9) the State conducts such evaluations and provides such 
        reports to the Secretary as the Secretary determines 
        appropriate.
    (c) Commission.--
            (1) In general.--Not later than 6 months after the date of 
        the enactment of this Act, the Secretary of Health and Human 
        Services (in this subsection referred to as the ``Secretary'') 
        shall establish a commission (in this subsection referred to as 
        the ``Commission'') composed of heads of executive departments, 
        expert private individuals, and State administrators, to 
        determine the cost and feasibility of creating an interstate 
        system to compare the social security account numbers of all 
        recipients of aid to families with dependent children under 
        State plans approved under part A of title IV of the Social 
        Security Act, so as to identify any such recipients who are 
        receiving such aid from 2 or more States.
            (2) Basic pay.--
                    (A) Rates of pay.--Except as provided in paragraph 
                (2), members of the Commission shall each be paid at a 
                rate not to exceed $200 for each day (including travel 
                time) during which they are engaged in the actual 
                performance of duties of the Commission.
                    (B) Prohibition of compensation of federal 
                employees.--Each member of the Commission who is a 
                full-time officer or employee of the United States may 
                not receive additional pay, allowances, or benefits by 
                reason of their service on the Commission.
            (3) Travel expenses.--Each member of the Commission shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code.
            (4) Staff of federal agencies.--Upon request of the 
        Secretary, the head of any Federal department or agency may 
        detail, on a reimbursable basis, any of the personnel of that 
        department or agency to the Commission to assist it in carrying 
        out its duties under this subsection.
            (5) Obtaining official data.--The Commission may secure 
        directly from any department or agency of the United States 
        information necessary to enable it to carry out this 
        subsection. Upon request of the Secretary, the head of that 
        department or agency shall furnish that information to the 
        Commission.
            (6) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as other 
        departments and agencies of the United States.
            (7) Administrative support services.--Upon request of the 
        Secretary, the Administrator of General Services shall provide 
        to the Commission, on a reimbursable basis, the administrative 
        support services necessary for the Commission to carry out its 
        responsibilities under this subsection.
            (8) Report.--Within 2 years after the date of the enactment 
        of this Act, the Secretary shall submit to the Congress a 
        report that contains the findings of the Commission.
            (9) Termination of commission.--The Commission shall 
        terminate upon submission of the report required by paragraph 
        (8).

SEC. 705. SSI BENEFITS FOR DRUG AND ALCOHOL ADDICTS.

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

SEC. 706. STATE FRAUD CONTROL PROGRAMS.

    (a) Fraud Control Programs Made Mandatory.--Section 402(a)(40) (42 
U.S.C. 602(a)(40)) is amended by striking ``, if the State'' through 
``the State will'' and inserting ``that the State will establish and 
operate a fraud control program under section 416, will''.
    (b) Sanction for Fraud Made Permanent.--Section 416(b) (42 U.S.C. 
616(b)) is amended by striking ``(A) for period of'' through the period 
at the end and inserting ``permanently upon the occasion of any such 
offense.''.
    (c) Conforming Amendments.--Section 416 (42 U.S.C. 616) is 
amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Each State, in the administration of its State plan approved 
under section 402, shall establish and operate a fraud control program 
in accordance with this section.''; and
            (2) in subsection (f), by striking ``which has elected to 
        establish and operate a fraud control program under this 
        section''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the first 
        day of the first fiscal year beginning after the date of the 
        enactment of this Act.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan approved under section 402(a) of the 
        Social Security Act which the Secretary of Health and Human 
        Services determines requires State legislation (other than 
        legislation appropriating funds) in order for the plan to meet 
        the additional requirements imposed by the amendments made by 
        this section, the State plan shall not be regarded as failing 
        to comply with the requirements of such section 402(a) solely 
        on the basis of the failure of the plan to meet such additional 
        requirements before the end of the 2-year period that begins 
        with the date of the enactment of this Act.

                                 <all>

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