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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3734 Engrossed in House (EH)]

  2d Session

                               H. R. 3734

_______________________________________________________________________

                                 AN ACT

   To provide for reconciliation pursuant to section 201(a)(1) of the 
       concurrent resolution on the budget for fiscal year 1997.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
104th CONGRESS
  2d Session
                                H. R. 3734

_______________________________________________________________________

                                 AN ACT

 
   To provide for reconciliation pursuant to section 201(a)(1) of the 
       concurrent resolution on the budget for fiscal year 1997.

    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 Reconciliation Act of 
1996''.

SEC. 2. TABLE OF TITLES.

    The table of titles of this Act is as follows:

Title I--Committee on Agriculture
Title II--Committee on Commerce
Title III--Committee on Economic and Educational Opportunities
Title IV--Committee on Ways and Means

                   TITLE I--COMMITTEE ON AGRICULTURE

SEC. 1001. SHORT TITLE.

    This title may be cited as the ``Food Stamp Reform and Commodity 
Distribution Act of 1996''.

SEC. 1002. TABLE OF CONTENTS.

    The table of contents of this title is as follows:

Sec. 1001. Short title.
Sec. 1002. Table of contents.
                     Subtitle A--Food Stamp Program

Sec. 1011. Definition of certification period.
Sec. 1012. Definition of coupon.
Sec. 1013. Treatment of children living at home.
Sec. 1014. Optional additional criteria for separate household 
                            determinations.
Sec. 1015. Adjustment of thrifty food plan.
Sec. 1016. Definition of homeless individual.
Sec. 1017. State option for eligibility standards.
Sec. 1018. Earnings of students.
Sec. 1019. Energy assistance.
Sec. 1020. Deductions from income.
Sec. 1021. Vehicle allowance.
Sec. 1022. Vendor payments for transitional housing counted as income.
Sec. 1023. Doubled penalties for violating food stamp program 
                            requirements.
Sec. 1024. Disqualification of convicted individuals.
Sec. 1025. Disqualification.
Sec. 1026. Caretaker exemption.
Sec. 1027. Employment and training.
Sec. 1028. Comparable treatment for disqualification.
Sec. 1029. Disqualification for receipt of multiple food stamp 
                            benefits.
Sec. 1030. Disqualification of fleeing felons.
Sec. 1031. Cooperation with child support agencies.
Sec. 1032. Disqualification relating to child support arrears.
Sec. 1033. Work requirement.
Sec. 1034. Encourage electronic benefit transfer systems.
Sec. 1035. Value of minimum allotment.
Sec. 1036. Benefits on recertification.
Sec. 1037. Optional combined allotment for expedited households.
Sec. 1038. Failure to comply with other means-tested public assistance 
                            programs.
Sec. 1039. Allotments for households residing in centers.
Sec. 1040. Condition precedent for approval of retail food stores and 
                            wholesale food concerns.
Sec. 1041. Authority to establish authorization periods.
Sec. 1042. Information for verifying eligibility for authorization.
Sec. 1043. Waiting period for stores that fail to meet authorization 
                            criteria.
Sec. 1044. Operation of food stamp offices.
Sec. 1045. State employee and training standards.
Sec. 1046. Exchange of law enforcement information.
Sec. 1047. Expedited coupon service.
Sec. 1048. Withdrawing fair hearing requests.
Sec. 1049. Income, eligibility, and immigration status verification 
                            systems.
Sec. 1050. Disqualification of retailers who intentionally submit 
                            falsified applications.
Sec. 1051. Disqualification of retailers who are disqualified under the 
                            WIC program.
Sec. 1052. Collection of overissuances.
Sec. 1053. Authority to suspend stores violating program requirements 
                            pending administrative and judicial review.
Sec. 1054. Expanded criminal forfeiture for violations.
Sec. 1055. Limitation of Federal match.
Sec. 1056. Standards for administration.
Sec. 1057. Work supplementation or support program.
Sec. 1058. Waiver authority.
Sec. 1059. Response to waivers.
Sec. 1060. Employment initiatives program.
Sec. 1061. Reauthorization.
Sec. 1062. Simplified food stamp program.
Sec. 1063. State food assistance block grant.
Sec. 1064. A study of the use of food stamps to purchase vitamins and 
                            minerals.
Sec. 1065. Investigations.
Sec. 1066. Food stamp eligibility.
Sec. 1067. Report by the Secretary.
Sec. 1068. Deficit reduction.
              Subtitle B--Commodity Distribution Programs

Sec. 1071. Emergency food assistance program.
Sec. 1072. Food bank demonstration project.
Sec. 1073. Hunger prevention programs.
Sec. 1074. Report on entitlement commodity processing.
            Subtitle C--Electronic Benefit Transfer Systems

Sec. 1091. Provisions to encourage electronic benefit transfer systems.

                     Subtitle A--Food Stamp Program

SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.

    Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is 
amended by striking ``Except as provided'' and all that follows and 
inserting the following: ``The certification period shall not exceed 12 
months, except that the certification period may be up to 24 months if 
all adult household members are elderly or disabled. A State agency 
shall have at least 1 contact with each certified household every 12 
months.''.

SEC. 1012. DEFINITION OF COUPON.

    Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C. 2012(d)) is 
amended by striking ``or type of certificate'' and inserting ``type of 
certificate, authorization card, cash or check issued in lieu of a 
coupon, or an access device, including an electronic benefit transfer 
card or personal identification number,''.

SEC. 1013. TREATMENT OF CHILDREN LIVING AT HOME.

    The second sentence of section 3(i) of the Food Stamp Act of 1977 
(7 U.S.C. 2012(i)) is amended by striking ``(who are not themselves 
parents living with their children or married and living with their 
spouses)''.

SEC. 1014. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSEHOLD 
              DETERMINATIONS.

    Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 2012(i)) is 
amended by inserting after the third sentence the following: 
``Notwithstanding the preceding sentences, a State may establish 
criteria that prescribe when individuals who live together, and who 
would be allowed to participate as separate households under the 
preceding sentences, shall be considered a single household, without 
regard to the common purchase of food and preparation of meals.''.

SEC. 1015. ADJUSTMENT OF THRIFTY FOOD PLAN.

    The second sentence of section 3(o) of the Food Stamp Act of 1977 
(7 U.S.C. 2012(o)) is amended--
            (1) by striking ``shall (1) make'' and inserting the 
        following: ``shall--
            ``(1) make'';
            (2) by striking ``scale, (2) make'' and inserting ``scale;
            ``(2) make'';
            (3) by striking ``Alaska, (3) make'' and inserting the 
        following: ``Alaska;
            ``(3) make''; and
            (4) by striking ``Columbia, (4) through'' and all that 
        follows through the end of the subsection and inserting the 
        following: ``Columbia; and
            ``(4) on October 1, 1996, and each October 1 thereafter, 
        adjust the cost of the diet to reflect the cost of the diet, in 
        the preceding June, and round the result to the nearest lower 
        dollar increment for each household size, except that on 
October 1, 1996, the Secretary may not reduce the cost of the diet in 
effect on September 30, 1996.''.

SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.

    Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C. 
2012(s)(2)(C)) is amended by inserting ``for not more than 90 days'' 
after ``temporary accommodation''.

SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.

    Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is 
amended by striking ``(b) The Secretary'' and inserting the following:
    ``(b) Eligibility Standards.--Except as otherwise provided in this 
Act, the Secretary''.

SEC. 1018. EARNINGS OF STUDENTS.

    Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)(7)) 
is amended by striking ``21'' and inserting ``19''.

SEC. 1019. ENERGY ASSISTANCE.

    (a) In General.--Section 5(d) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(d)) is amended by striking paragraph (11) and inserting the 
following: ``(11) a 1-time payment or allowance made under a Federal or 
State law for the costs of weatherization or emergency repair or 
replacement of an unsafe or inoperative furnace or other heating or 
cooling device,''.
    (b) Conforming Amendments.--
            (1) Section 5(k) of the Act (7 U.S.C. 2014(k)) is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``plan 
                        for aid to families with dependent children 
                        approved'' and inserting ``program funded''; 
                        and
                            (ii) in subparagraph (B), by striking ``, 
                        not including energy or utility-cost 
                        assistance,'';
                    (B) in paragraph (2), by striking subparagraph (C) 
                and inserting the following:
            ``(C) a payment or allowance described in subsection 
        (d)(11);''; and
                    (C) by adding at the end the following:
            ``(4) Third party energy assistance payments.--
                    ``(A) Energy assistance payments.--For purposes of 
                subsection (d)(1), a payment made under a Federal or 
                State law to provide energy assistance to a household 
                shall be considered money payable directly to the 
                household.
                    ``(B) Energy assistance expenses.--For purposes of 
                subsection (e)(7), an expense paid on behalf of a 
                household under a Federal or State law to provide 
                energy assistance shall be considered an out-of-pocket 
                expense incurred and paid by the household.''.
            (2) Section 2605(f) of the Low-Income Home Energy 
        Assistance Act of 1981 (42 U.S.C. 8624(f)) is amended--
                    (A) by striking ``(f)(1) Notwithstanding'' and 
                inserting ``(f) Notwithstanding'';
                    (B) in paragraph (1), by striking ``food stamps,''; 
                and
                    (C) by striking paragraph (2).

SEC. 1020. DEDUCTIONS FROM INCOME.

    (a) In General.--Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 
2014) is amended by striking subsection (e) and inserting the 
following:
    ``(e) Deductions From Income.--
            ``(1) Standard deduction.--The Secretary shall allow a 
        standard deduction for each household in the 48 contiguous 
        States and the District of Columbia, Alaska, Hawaii, Guam, and 
        the Virgin Islands of the United States of $134, $229, $189, 
        $269, and $118, respectively.
            ``(2) Earned income deduction.--
                    ``(A) Definition of earned income.--In this 
                paragraph, the term `earned income' does not include 
                income excluded by subsection (d) or any portion of 
                income earned under a work supplementation or support 
                program, as defined under section 16(b), that is 
                attributable to public assistance.
                    ``(B) Deduction.--Except as provided in 
                subparagraph (C), a household with earned income shall 
                be allowed a deduction of 20 percent of all 
earned income to compensate for taxes, other mandatory deductions from 
salary, and work expenses.
                    ``(C) Exception.--The deduction described in 
                subparagraph (B) shall not be allowed with respect to 
                determining an overissuance due to the failure of a 
                household to report earned income in a timely manner.
            ``(3) Dependent care deduction.--
                    ``(A) In general.--A household shall be entitled, 
                with respect to expenses (other than excluded expenses 
                described in subparagraph (B)) for dependent care, to a 
                dependent care deduction, the maximum allowable level 
                of which shall be $200 per month for each dependent 
                child under 2 years of age and $175 per month for each 
                other dependent, for the actual cost of payments 
                necessary for the care of a dependent if the care 
                enables a household member to accept or continue 
                employment, or training or education that is 
                preparatory for employment.
                    ``(B) Excluded expenses.--The excluded expenses 
                referred to in subparagraph (A) are--
                            ``(i) expenses paid on behalf of the 
                        household by a third party;
                            ``(ii) amounts made available and excluded 
                        for the expenses referred to in subparagraph 
                        (A) under subsection (d)(3); and
                            ``(iii) expenses that are paid under 
                        section 6(d)(4).
            ``(4) Deduction for child support payments.--
                    ``(A) In general.--A household shall be entitled to 
                a deduction for child support payments made by a 
                household member to or for an individual who is not a 
                member of the household if the household member is 
                legally obligated to make the payments.
                    ``(B) Methods for determining amount.--The 
                Secretary may prescribe by regulation the methods, 
                including calculation on a retrospective basis, that a 
                State agency shall use to determine the amount of the 
                deduction for child support payments.
            ``(5) Homeless shelter allowance.--A State agency may 
        develop a standard homeless shelter allowance, which shall not 
        exceed $143 per month, for such expenses as may reasonably be 
        expected to be incurred by households in which all members are 
        homeless individuals but are not receiving free shelter 
        throughout the month. A State agency that develops the 
        allowance may use the allowance in determining eligibility and 
        allotments for the households, except that the State agency may 
        prohibit the use of the allowance for households with extremely 
        low shelter costs.
            ``(6) Excess medical expense deduction.--
                    ``(A) In general.--A household containing an 
                elderly or disabled member shall be entitled, with 
                respect to expenses other than expenses paid on behalf 
                of the household by a third party, to an excess medical 
                expense deduction for the portion of the actual costs 
                of allowable medical expenses, incurred by the elderly 
                or disabled member, exclusive of special diets, that 
                exceeds $35 per month.
                    ``(B) Method of claiming deduction.--
                            ``(i) In general.--A State agency shall 
                        offer an eligible household under subparagraph 
                        (A) a method of claiming a deduction for 
                        recurring medical expenses that are initially 
                        verified under the excess medical expense 
                        deduction in lieu of submitting information or 
                        verification on actual expenses on a monthly 
                        basis.
                            ``(ii) Method.--The method described in 
                        clause (i) shall--
                                    ``(I) be designed to minimize the 
                                burden for the eligible elderly or 
                                disabled household member choosing to 
                                deduct the recurrent medical expenses 
                                of the member pursuant to the method;
                                    ``(II) rely on reasonable estimates 
                                of the expected medical expenses of the 
                                member for the certification period 
                                (including changes that can be 
                                reasonably anticipated based on 
                                available information about the medical 
                                condition of the member, public or 
                                private medical insurance coverage, and 
                                the current verified medical expenses 
                                incurred by the member); and
                                    ``(III) not require further 
                                reporting or verification of a change 
                                in medical expenses if such a change 
                                has been anticipated for the 
                                certification period.
            ``(7) Excess shelter expense deduction.--
                    ``(A) In general.--A household shall be entitled, 
                with respect to expenses other than expenses paid on 
                behalf of the household by a third party, to an excess 
                shelter expense deduction to the extent that the 
                monthly amount expended by a household for shelter 
                exceeds an amount equal to 50 percent of monthly 
                household income after all other applicable deductions 
                have been allowed.
                    ``(B) Maximum amount of deduction.--In the case of 
                a household that does not contain an elderly or 
                disabled individual, the excess shelter expense 
                deduction shall not exceed--
                            ``(i) in the 48 contiguous States and the 
                        District of Columbia, $247 per month; and
                            ``(ii) in Alaska, Hawaii, Guam, and the 
                        Virgin Islands of the United States, $429, 
                        $353, $300, and $182 per month, respectively.
                    ``(C) Standard utility allowance.--
                            ``(i) In general.--In computing the excess 
                        shelter expense deduction, a State agency may 
                        use a standard utility allowance in accordance 
                        with regulations promulgated by the Secretary, 
                        except that a State agency may use an allowance 
                        that does not fluctuate within a year to 
                        reflect seasonal variations.
                            ``(ii) Restrictions on heating and cooling 
                        expenses.--An allowance for a heating or 
                        cooling expense may not be used in the case of 
                        a household that--
                                    ``(I) does not incur a heating or 
                                cooling expense, as the case may be;
                                    ``(II) does incur a heating or 
                                cooling expense but is located in a 
                                public housing unit that has central 
                                utility meters and charges households, 
                                with regard to the expense, only for 
                                excess utility costs; or
                                    ``(III) shares the expense with, 
                                and lives with, another individual not 
                                participating in the food stamp 
                                program, another household 
                                participating in the food stamp 
                                program, or both, unless the allowance 
                                is prorated between the household and 
                                the other individual, household, or 
                                both.
                            ``(iii) Mandatory allowance.--
                                    ``(I) In general.--A State agency 
                                may make the use of a standard utility 
                                allowance mandatory for all households 
                                with qualifying utility costs if--
                                            ``(aa) the State agency has 
                                        developed 1 or more standards 
                                        that include the cost of 
                                        heating and cooling and 1 or 
                                        more standards that do not 
                                        include the cost of heating and 
                                        cooling; and
                                            ``(bb) the Secretary finds 
                                        that the standards will not 
                                        result in an increased cost to 
                                        the Secretary.
                                    ``(II) Household election.--A State 
                                agency that has not made the use of a 
                                standard utility allowance mandatory 
                                under subclause (I) shall allow a 
                                household to switch, at the end of a 
certification period, between the standard utility allowance and a 
deduction based on the actual utility costs of the household.
                            ``(iv) Availability of allowance to 
                        recipients of energy assistance.--
                                    ``(I) In general.--Subject to 
                                subclause (II), if a State agency 
                                elects to use a standard utility 
                                allowance that reflects heating or 
                                cooling costs, the standard utility 
                                allowance shall be made available to 
                                households receiving a payment, or on 
                                behalf of which a payment is made, 
                                under the Low-Income Home Energy 
                                Assistance Act of 1981 (42 U.S.C. 8621 
                                et seq.) or other similar energy 
                                assistance program, if the household 
                                still incurs out-of-pocket heating or 
                                cooling expenses in excess of any 
                                assistance paid on behalf of the 
                                household to an energy provider.
                                    ``(II) Separate allowance.--A State 
                                agency may use a separate standard 
                                utility allowance for households on 
                                behalf of which a payment described in 
                                subclause (I) is made, but may not be 
                                required to do so.
                                    ``(III) States not electing to use 
                                separate allowance.--A State agency 
                                that does not elect to use a separate 
                                allowance but makes a single standard 
                                utility allowance available to 
                                households incurring heating or cooling 
                                expenses (other than a household 
                                described in subclause (I) or (II) of 
                                subparagraph (C)(ii)) may not be 
                                required to reduce the allowance due to 
                                the provision (directly or indirectly) 
                                of assistance under the Low-Income Home 
                                Energy Assistance Act of 1981 (42 
                                U.S.C. 8621 et seq.).
                                    ``(IV) Proration of assistance.--
                                For the purpose of the food stamp 
                                program, assistance provided under the 
                                Low-Income Home Energy Assistance Act 
                                of 1981 (42 U.S.C. 8621 et seq.) shall 
                                be considered to be prorated over the 
                                entire heating or cooling season for 
                                which the assistance was provided.''.
    (b) Conforming Amendment.--Section 11(e)(3) of the Act (7 U.S.C. 
2020(e)(3)) is amended by striking ``Under rules prescribed'' and all 
that follows through ``verifies higher expenses;''.

SEC. 1021. VEHICLE ALLOWANCE.

    Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is 
amended by striking paragraph (2) and inserting the following:
            ``(2) Included assets.--
                    ``(A) In general.--Subject to the other provisions 
                of this paragraph, the Secretary shall, in prescribing 
                inclusions in, and exclusions from, financial 
                resources, follow the regulations in force as of June 
                1, 1982 (other than those relating to licensed vehicles 
                and inaccessible resources).
                    ``(B) Additional included assets.--The Secretary 
                shall include in financial resources--
                            ``(i) any boat, snowmobile, or airplane 
                        used for recreational purposes;
                            ``(ii) any vacation home;
                            ``(iii) any mobile home used primarily for 
                        vacation purposes;
                            ``(iv) subject to subparagraph (C), any 
                        licensed vehicle that is used for household 
                        transportation or to obtain or continue 
                        employment to the extent that the fair market 
                        value of the vehicle exceeds $4,600; and
                            ``(v) any savings or retirement account 
                        (including an individual account), regardless 
                        of whether there is a penalty for early 
                        withdrawal.
                    ``(C) Excluded vehicles.--A vehicle (and any other 
                property, real or personal, to the extent the property 
                is directly related to the maintenance or use of the 
                vehicle) shall not be included in financial resources 
                under this paragraph if the vehicle is--
                            ``(i) used to produce earned income;
                            ``(ii) necessary for the transportation of 
                        a physically disabled household member; or
                            ``(iii) depended on by a household to carry 
                        fuel for heating or water for home use and 
                        provides the primary source of fuel or water, 
                        respectively, for the household.''.

SEC. 1022. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED AS INCOME.

    Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2014(k)(2)) 
is amended--
            (1) by striking subparagraph (F); and
            (2) by redesignating subparagraphs (G) and (H) as 
        subparagraphs (F) and (G), respectively.

SEC. 1023. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM 
              REQUIREMENTS.

    Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2015(b)(1)) 
is amended--
            (1) in clause (i), by striking ``six months'' and inserting 
        ``1 year''; and
            (2) in clause (ii), by striking ``1 year'' and inserting 
        ``2 years''.

SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

    Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(b)(1)(iii)) is amended--
            (1) in subclause (II), by striking ``or'' at the end;
            (2) in subclause (III), by striking the period at the end 
        and inserting ``; or''; and
            (3) by inserting after subclause (III) the following:
                    ``(IV) a conviction of an offense under subsection 
                (b) or (c) of section 15 involving an item covered by 
                subsection (b) or (c) of section 15 having a value of 
                $500 or more.''.

SEC. 1025. DISQUALIFICATION.

    (a) In General.--Section 6(d) of the Food Stamp Act of 1977 (7 
U.S.C. 2015(d)) is amended by striking ``(d)(1) Unless otherwise 
exempted by the provisions'' and all that follows through the end of 
paragraph (1) and inserting the following:
    ``(d) Conditions of Participation.--
            ``(1) Work requirements.--
                    ``(A) In general.--No physically and mentally fit 
                individual over the age of 15 and under the age of 60 
                shall be eligible to participate in the food stamp 
                program if the individual--
                            ``(i) refuses, at the time of application 
                        and every 12 months thereafter, to register for 
                        employment in a manner prescribed by the 
                        Secretary;
                            ``(ii) refuses without good cause to 
                        participate in an employment and training 
                        program under paragraph (4), to the extent 
                        required by the State agency;
                            ``(iii) refuses without good cause to 
                        accept an offer of employment, at a site or 
                        plant not subject to a strike or lockout at the 
                        time of the refusal, at a wage not less than 
                        the higher of--
                                    ``(I) the applicable Federal or 
                                State minimum wage; or
                                    ``(II) 80 percent of the wage that 
                                would have governed had the minimum 
                                hourly rate under section 6(a)(1) of 
                                the Fair Labor Standards Act of 1938 
                                (29 U.S.C. 206(a)(1)) been applicable 
                                to the offer of employment;
                            ``(iv) refuses without good cause to 
                        provide a State agency with sufficient 
                        information to allow the State agency to 
                        determine the employment status or the job 
                        availability of the individual;
                            ``(v) voluntarily and without good cause--
                                    ``(I) quits a job; or
                                    ``(II) reduces work effort and, 
                                after the reduction, the individual is 
                                working less than 30 hours per week; or
                            ``(vi) fails to comply with section 20.
                    ``(B) Household ineligibility.--If an individual 
                who is the head of a household becomes ineligible to 
                participate in the food stamp program under 
                subparagraph (A), the household shall, at the option of 
                the State agency, become ineligible to participate in 
                the food stamp program for a period, determined by the 
                State agency, that does not exceed the lesser of--
                            ``(i) the duration of the ineligibility of 
                        the individual determined under subparagraph 
                        (C); or
                            ``(ii) 180 days.
                    ``(C) Duration of ineligibility.--
                            ``(i) First violation.--The first time that 
                        an individual becomes ineligible to participate 
                        in the food stamp program under subparagraph 
                        (A), the individual shall remain ineligible 
                        until the later of--
                                    ``(I) the date the individual 
                                becomes eligible under subparagraph 
                                (A);
                                    ``(II) the date that is 1 month 
                                after the date the individual became 
                                ineligible; or
                                    ``(III) a date determined by the 
                                State agency that is not later than 3 
                                months after the date the individual 
                                became ineligible.
                            ``(ii) Second violation.--The second time 
                        that an individual becomes ineligible to 
                        participate in the food stamp program under 
                        subparagraph (A), the individual shall remain 
                        ineligible until the later of--
                                    ``(I) the date the individual 
                                becomes eligible under subparagraph 
                                (A);
                                    ``(II) the date that is 3 months 
                                after the date the individual became 
                                ineligible; or
                                    ``(III) a date determined by the 
                                State agency that is not later than 6 
                                months after the date the individual 
                                became ineligible.
                            ``(iii) Third or subsequent violation.--The 
                        third or subsequent time that an individual 
                        becomes ineligible to participate in the food 
                        stamp program under subparagraph (A), the 
                        individual shall remain ineligible until the 
                        later of--
                                    ``(I) the date the individual 
                                becomes eligible under subparagraph 
                                (A);
                                    ``(II) the date that is 6 months 
                                after the date the individual became 
                                ineligible;
                                    ``(III) a date determined by the 
                                State agency; or
                                    ``(IV) at the option of the State 
                                agency, permanently.
                    ``(D) Administration.--
                            ``(i) Good cause.--The Secretary shall 
                        determine the meaning of good cause for the 
                        purpose of this paragraph.
                            ``(ii) Voluntary quit.--The Secretary shall 
                        determine the meaning of voluntarily quitting 
                        and reducing work effort for the purpose of 
                        this paragraph.
                            ``(iii) Determination by state agency.--
                                    ``(I) In general.--Subject to 
                                subclause (II) and clauses (i) and 
                                (ii), a State agency shall determine--
                                            ``(aa) the meaning of any 
                                        term in subparagraph (A);
                                            ``(bb) the procedures for 
                                        determining whether an 
                                        individual is in compliance 
                                        with a requirement under 
                                        subparagraph (A); and
                                            ``(cc) whether an 
                                        individual is in compliance 
                                        with a requirement under 
                                        subparagraph (A).
                                    ``(II) Not less restrictive.--A 
                                State agency may not determine a 
                                meaning, procedure, or determination 
                                under subclause (I) to be less 
                                restrictive than a comparable meaning, 
                                procedure, or determination under a 
                                State program funded under part A of 
                                title IV of the Social Security Act (42 
                                U.S.C. 601 et seq.).
                            ``(iv) Strike against the government.--For 
                        the purpose of subparagraph (A)(v), an employee 
                        of the Federal Government, a State, or a 
                        political subdivision of a State, who is 
                        dismissed for participating in a strike against 
                        the Federal Government, the State, or the 
                        political subdivision of the State shall be 
                        considered to have voluntarily quit without 
                        good cause.
                            ``(v) Selecting a head of household.--
                                    ``(I) In general.--For the purpose 
                                of this paragraph, the State agency 
                                shall allow the household to select any 
                                adult parent of a child in the 
                                household as the head of the household 
                                if all adult household members making 
                                application under the food stamp 
                                program agree to the selection.
                                    ``(II) Time for making 
                                designation.--A household may designate 
                                the head of the household under 
                                subclause (I) each time the household 
                                is certified for participation in the 
                                food stamp program, but may not change 
                                the designation during a certification 
                                period unless there is a change in the 
                                composition of the household.
                            ``(vi) Change in head of household.--If the 
                        head of a household leaves the household during 
                        a period in which the household is ineligible 
                        to participate in the food stamp program under 
                        subparagraph (B)--
                                    ``(I) the household shall, if 
                                otherwise eligible, become eligible to 
                                participate in the food stamp program; 
                                and
                                    ``(II) if the head of the household 
                                becomes the head of another household, 
                                the household that becomes headed by 
                                the individual shall become ineligible 
                                to participate in the food stamp 
                                program for the remaining period of 
                                ineligibility.''.
    (b) Conforming Amendment.--
            (1) The second sentence of section 17(b)(2) of the Act (7 
        U.S.C. 2026(b)(2)) is amended by striking ``6(d)(1)(i)'' and 
        inserting ``6(d)(1)(A)(i)''.
            (2) Section 20 of the Act (7 U.S.C. 2029) is amended by 
        striking subsection (f) and inserting the following:
    ``(f) Disqualification.--An individual or a household may become 
ineligible under section 6(d)(1) to participate in the food stamp 
program for failing to comply with this section.''.

SEC. 1026. CARETAKER EXEMPTION.

    Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)) 
is amended by striking subparagraph (B) and inserting the following: 
``(B) a parent or other member of a household with responsibility for 
the care of (i) a dependent child under the age of 6 or any lower age 
designated by the State agency that is not under the age of 1, or (ii) 
an incapacitated person;''.

SEC. 1027. EMPLOYMENT AND TRAINING.

    (a) In General.--Section 6(d)(4) of the Food Stamp Act of 1977 (7 
U.S.C. 2015(d)(4)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``Not later than April 1, 1987, 
                each'' and inserting ``Each'';
                    (B) by inserting ``work,'' after ``skills, 
                training,''; and
                    (C) by adding at the end the following: ``Each 
                component of an employment and training program carried 
out under this paragraph shall be delivered through a statewide 
workforce development system, unless the component is not available 
locally through the statewide workforce development system.'';
            (2) in subparagraph (B)--
                    (A) in the matter preceding clause (i), by striking 
                the colon at the end and inserting the following: ``, 
                except that the State agency shall retain the option to 
                apply employment requirements prescribed under this 
                subparagraph to a program applicant at the time of 
                application:'';
                    (B) in clause (i), by striking ``with terms and 
                conditions'' and all that follows through ``time of 
                application''; and
                    (C) in clause (iv)--
                            (i) by striking subclauses (I) and (II); 
                        and
                            (ii) by redesignating subclauses (III) and 
                        (IV) as subclauses (I) and (II), respectively;
            (3) in subparagraph (D)--
                    (A) in clause (i), by striking ``to which the 
                application'' and all that follows through ``30 days or 
                less'';
                    (B) in clause (ii), by striking ``but with 
                respect'' and all that follows through ``child care''; 
                and
                    (C) in clause (iii), by striking ``, on the basis 
                of'' and all that follows through ``clause (ii)'' and 
                inserting ``the exemption continues to be valid'';
            (4) in subparagraph (E), by striking the third sentence;
            (5) in subparagraph (G)--
                    (A) by striking ``(G)(i) The State'' and inserting 
                ``(G) The State''; and
                    (B) by striking clause (ii);
            (6) in subparagraph (H), by striking ``(H)(i) The 
        Secretary'' and all that follows through ``(ii) Federal funds'' 
        and inserting ``(H) Federal funds'';
            (7) in subparagraph (I)(i)(II), by striking ``, or was in 
        operation,'' and all that follows through ``Social Security 
        Act'' and inserting the following: ``), except that no such 
        payment or reimbursement shall exceed the applicable local 
        market rate'';
            (8)(A) by striking subparagraphs (K) and (L) and inserting 
        the following:
                    ``(K) Limitation on funding.--Notwithstanding any 
                other provision of this paragraph, the amount of funds 
                a State agency uses to carry out this paragraph 
                (including under subparagraph (I)) for participants who 
                are receiving benefits under a State program funded 
                under part A of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.) shall not exceed the amount of 
                funds the State agency used in fiscal year 1995 to 
                carry out this paragraph for participants who were 
                receiving benefits in fiscal year 1995 under a State 
                program funded under part A of title IV of the Act (42 
                U.S.C. 601 et seq.).''; and
            (B) by redesignating subparagraphs (M) and (N) as 
        subparagraphs (L) and (M), respectively; and
            (9) in subparagraph (L), as redesignated by paragraph 
        (8)(B)--
                    (A) by striking ``(L)(i) The Secretary'' and 
                inserting ``(L) The Secretary''; and
                    (B) by striking clause (ii).
    (b) Funding.--Section 16(h) of the Act (7 U.S.C. 2025(h)) is 
amended by striking ``(h)(1)(A) The Secretary'' and all that follows 
through the end of paragraph (1) and inserting the following:
    ``(h) Funding of Employment and Training Programs.--
            ``(1) In general.--
                    ``(A) Amounts.--To carry out employment and 
                training programs, the Secretary shall reserve for 
                allocation to State agencies from funds made available 
                for each fiscal year under section 18(a)(1) the amount 
                of--
                            ``(i) for fiscal year 1996, $75,000,000;
                            ``(ii) for fiscal year 1997, $79,000,000;
                            ``(iii) for fiscal year 1998, $81,000,000;
                            ``(iv) for fiscal year 1999, $84,000,000;
                            ``(v) for fiscal year 2000, $86,000,000;
                            ``(vi) for fiscal year 2001, $88,000,000; 
                        and
                            ``(vii) for fiscal year 2002, $90,000,000.
                    ``(B) Allocation.--The Secretary shall allocate the 
                amounts reserved under subparagraph (A) among the State 
                agencies using a reasonable formula (as determined by 
                the Secretary) that gives consideration to the 
                population in each State affected by section 6(o).
                    ``(C) Reallocation.--
                            ``(i) Notification.--A State agency shall 
                        promptly notify the Secretary if the State 
                        agency determines that the State agency will 
                        not expend all of the funds allocated to the 
                        State agency under subparagraph (B).
                            ``(ii) Reallocation.--On notification under 
                        clause (i), the Secretary shall reallocate the 
                        funds that the State agency will not expend as 
                        the Secretary considers appropriate and 
                        equitable.
                    ``(D) Minimum allocation.--Notwithstanding 
                subparagraphs (A) through (C), the Secretary shall 
                ensure that each State agency operating an employment 
                and training program shall receive not less than 
                $50,000 in each fiscal year.''.
    (c) Additional Matching Funds.--Section 16(h)(2) of the Act (7 
U.S.C. 2025(h)(2)) is amended by inserting before the period at the end 
the following: ``, including the costs for case management and casework 
to facilitate the transition from economic dependency to self-
sufficiency through work''.
    (d) Reports.--Section 16(h) of the Act (7 U.S.C. 2025(h)) is 
amended--
            (1) in paragraph (5)--
                    (A) by striking ``(5)(A) The Secretary'' and 
                inserting ``(5) The Secretary''; and
                    (B) by striking subparagraph (B); and
            (2) by striking paragraph (6).

SEC. 1028. COMPARABLE TREATMENT FOR DISQUALIFICATION.

    (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015) is amended by adding at the end the following:
    ``(i) Comparable Treatment for Disqualification.--
            ``(1) In general.--If a disqualification is imposed on a 
        member of a household for a failure of the member to perform an 
        action required under a Federal, State, or local law relating 
        to a means-tested public assistance program, the State agency 
        may impose the same disqualification on the member of the 
        household under the food stamp program.
            ``(2) Rules and procedures.--If a disqualification is 
        imposed under paragraph (1) for a failure of an individual to 
        perform an action required under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.), the State agency 
        may use the rules and procedures that apply under part A of 
        title IV of the Act to impose the same disqualification under 
        the food stamp program.
            ``(3) Application after disqualification period.--A member 
        of a household disqualified under paragraph (1) may, after the 
        disqualification period has expired, apply for benefits under 
        this Act and shall be treated as a new applicant, except that a 
        prior disqualification under subsection (d) shall be considered 
        in determining eligibility.''.
    (b) State Plan Provisions.--Section 11(e) of the Act (7 U.S.C. 
2020(e)) is amended--
            (1) in paragraph (24), by striking ``and'' at the end;
            (2) in paragraph (25), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(26) the guidelines the State agency uses in carrying out 
        section 6(i); and''.
    (c) Conforming Amendment.--Section 6(d)(2)(A) of the Act (7 U.S.C. 
2015(d)(2)(A)) is amended by striking ``that is comparable to a 
requirement of paragraph (1)''.

SEC. 1029. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP 
              BENEFITS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by section 1028, is amended by adding at the end the following:
    ``(j) Disqualification for Receipt of Multiple Food Stamp 
Benefits.--An individual shall be ineligible to participate in the food 
stamp program as a member of any household for a 10-year period if the 
individual is found by a State agency to have made, or is convicted in 
a Federal or State court of having made, a fraudulent statement or 
representation with respect to the identity or place of residence of 
the individual in order to receive multiple benefits simultaneously 
under the food stamp program.''.

SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by sections 1028 and 1029, is amended by adding at the end the 
following:
    ``(k) Disqualification of Fleeing Felons.--No member of a household 
who is otherwise eligible to participate in the food stamp program 
shall be eligible to participate in the program as a member of that or 
any other household during any period during which the individual is--
            ``(1) fleeing to avoid prosecution, or custody or 
        confinement after conviction, under the law of the place from 
        which the individual is fleeing, for a crime, or attempt to 
        commit a crime, that is a felony under the law of the place 
        from which the individual is fleeing or that, in the case of 
        New Jersey, is a high misdemeanor under the law of New Jersey; 
        or
            ``(2) violating a condition of probation or parole imposed 
        under a Federal or State law.''.

SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by sections 1028 through 1030, is amended by adding at the end the 
following:
    ``(l) Custodial Parent's Cooperation With Child Support Agencies.--
            ``(1) In general.--At the option of a State agency, subject 
        to paragraphs (2) and (3), no natural or adoptive parent or 
        other individual (collectively referred to in this subsection 
        as `the individual') who is living with and exercising parental 
        control over a child under the age of 18 who has an absent 
        parent shall be eligible to participate in the food stamp 
        program unless the individual cooperates with the State agency 
        administering the program established under part D of title IV 
        of the Social Security Act (42 U.S.C. 651 et seq.)--
                    ``(A) in establishing the paternity of the child 
                (if the child is born out of wedlock); and
                    ``(B) in obtaining support for--
                            ``(i) the child; or
                            ``(ii) the individual and the child.
            ``(2) Good cause for noncooperation.--Paragraph (1) shall 
        not apply to the individual if good cause is found for refusing 
        to cooperate, as determined by the State agency in accordance 
        with standards prescribed by the Secretary in consultation with 
        the Secretary of Health and Human Services. The standards shall 
        take into consideration circumstances under which cooperation 
        may be against the best interests of the child.
            ``(3) Fees.--Paragraph (1) shall not require the payment of 
        a fee or other cost for services provided under part D of title 
        IV of the Social Security Act (42 U.S.C. 651 et seq.).
    ``(m) Noncustodial Parent's Cooperation With Child Support 
Agencies.--
            ``(1) In general.--At the option of a State agency, subject 
        to paragraphs (2) and (3), a putative or identified 
        noncustodial parent of a child under the age of 18 (referred to 
        in this subsection as `the individual') shall not be eligible 
        to participate in the food stamp program if the individual 
        refuses to cooperate with the State agency administering the 
        program established under part D of title IV of the Social 
        Security Act (42 U.S.C. 651 et seq.)--
                    ``(A) in establishing the paternity of the child 
                (if the child is born out of wedlock); and
                    ``(B) in providing support for the child.
            ``(2) Refusal to cooperate.--
                    ``(A) Guidelines.--The Secretary, in consultation 
                with the Secretary of Health and Human Services, shall 
                develop guidelines on what constitutes a refusal to 
                cooperate under paragraph (1).
                    ``(B) Procedures.--The State agency shall develop 
                procedures, using guidelines developed under 
                subparagraph (A), for determining whether an individual 
                is refusing to cooperate under paragraph (1).
            ``(3) Fees.--Paragraph (1) shall not require the payment of 
        a fee or other cost for services provided under part D of title 
        IV of the Social Security Act (42 U.S.C. 651 et seq.).
            ``(4) Privacy.--The State agency shall provide safeguards 
        to restrict the use of information collected by a State agency 
        administering the program established under part D of title IV 
        of the Social Security Act (42 U.S.C. 651 et seq.) to purposes 
        for which the information is collected.''.

SEC. 1032. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by sections 1028 through 1031, is amended by adding at the end the 
following:
    ``(n) Disqualification for Child Support Arrears.--
            ``(1) In general.--At the option of the State agency, no 
        individual shall be eligible to participate in the food stamp 
        program as a member of any household during any month that the 
        individual is delinquent in any payment due under a court order 
        for the support of a child of the individual.
            ``(2) Exceptions.--Paragraph (1) shall not apply if--
                    ``(A) a court is allowing the individual to delay 
                payment; or
                    ``(B) the individual is complying with a payment 
                plan approved by a court or the State agency designated 
                under part D of title IV of the Social Security Act (42 
                U.S.C. 651 et seq.) to provide support for the child of 
                the individual.''.

SEC. 1033. WORK REQUIREMENT.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by sections 1028 through 1032, is amended by adding at the end the 
following:
    ``(o) Work Requirement.--
            ``(1) Definition of work program.--In this subsection, the 
        term `work program' means--
                    ``(A) a program under the Job Training Partnership 
                Act (29 U.S.C. 1501 et seq.);
                    ``(B) a program under section 236 of the Trade Act 
                of 1974 (19 U.S.C. 2296); or
                    ``(C) a program of employment and training operated 
                or supervised by a State or political subdivision of a 
                State that meets standards approved by the Governor of 
                the State, including a program under section 6(d)(4), 
                other than a job search program or a job search 
                training program.
            ``(2) Work requirement.--Subject to the other provisions of 
        this subsection, no individual shall be eligible to participate 
        in the food stamp program as a member of any household if the 
        individual received after the effective date of this subsection 
        food stamp benefits for not less than 3 months during which the 
        individual did not--
                    ``(A) work 20 hours or more per week, averaged 
                monthly; or
                    ``(B) participate in and comply with the 
                requirements of a work program for 20 hours or more per 
                week, as determined by the State agency; or
                    ``(C) participate in a program under section 20 or 
                a comparable program established by a State or 
                political subdivision of a State.
            ``(3) Exception.--Paragraph (2) shall not apply to an 
        individual if the individual is--
                    ``(A) under 18 or over 50 years of age;
                    ``(B) medically certified as physically or mentally 
                unfit for employment;
                    ``(C) a parent or other member of a household with 
                responsibility for a dependent child;
                    ``(D) otherwise exempt under section 6(d)(2); or
                    ``(E) a pregnant woman.
            ``(4) Waiver.--
                    ``(A) In general.--On the request of a State 
                agency, the Secretary may waive the applicability of 
                paragraph (2) to any group of individuals in the State 
                if the Secretary makes a determination that the area in 
                which the individuals reside--
                            ``(i) has an unemployment rate of over 10 
                        percent; or
                            ``(ii) does not have a sufficient number of 
                        jobs to provide employment for the individuals.
                    ``(B) Report.--The Secretary shall report the basis 
                for a waiver under subparagraph (A) to the Committee on 
                Agriculture of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate.
            ``(5) Subsequent eligibility.--Paragraph (2) shall cease to 
        apply to an individual if, during a 30-day period, the 
        individual--
                    ``(A) works 80 or more hours;
                    ``(B) participates in and complies with the 
                requirements of a work program for 80 or more hours, as 
                determined by a State agency; or
                    ``(C) participates in a program under section 20 or 
                a comparable program established by a State or 
                political subdivision of a State.

SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    (a) In General.--Section 7(i) of the Food Stamp Act of 1977 (7 
U.S.C. 2016(i)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Electronic benefit transfers.--
                    ``(A) Implementation.--Each State agency shall 
                implement an electronic benefit transfer system 
in which household benefits determined under section 8(a) or 26 are 
issued from and stored in a central databank before October 1, 2002, 
unless the Secretary provides a waiver for a State agency that faces 
unusual barriers to implementing an electronic benefit transfer system.
                    ``(B) Timely implementation.--State agencies are 
                encouraged to implement an electronic benefit transfer 
                system under subparagraph (A) as soon as practicable.
                    ``(C) State flexibility.--Subject to paragraph (2), 
                a State agency may procure and implement an electronic 
                benefit transfer system under the terms, conditions, 
                and design that the State agency considers appropriate.
                    ``(D) Operation.--An electronic benefit transfer 
                system should take into account generally accepted 
                standard operating rules based on--
                            ``(i) commercial electronic funds transfer 
                        technology;
                            ``(ii) the need to permit interstate 
                        operation and law enforcement monitoring; and
                            ``(iii) the need to permit monitoring and 
                        investigations by authorized law enforcement 
                        agencies.'';
            (2) in paragraph (2)--
                    (A) by striking ``effective no later than April 1, 
                1992,'';
                    (B) in subparagraph (A)--
                            (i) by striking ``, in any 1 year,''; and
                            (ii) by striking ``on-line'';
                    (C) by striking subparagraph (D) and inserting the 
                following:
            ``(D)(i) measures to maximize the security of a system 
        using the most recent technology available that the State 
        agency considers appropriate and cost effective and which may 
        include personal identification numbers, photographic 
        identification on electronic benefit transfer cards, and other 
        measures to protect against fraud and abuse; and
            ``(ii) effective not later than 2 years after the effective 
        date of this clause, to the extent practicable, measures that 
        permit a system to differentiate items of food that may be 
        acquired with an allotment from items of food that may not be 
        acquired with an allotment.'';
                    (D) in subparagraph (G), by striking ``and'' at the 
                end;
                    (E) in subparagraph (H), by striking the period at 
                the end and inserting ``; and''; and
                    (F) by adding at the end the following:
            ``(I) procurement standards.''; and
            (3) by adding at the end the following:
            ``(7) Replacement of benefits.--Regulations issued by the 
        Secretary regarding the replacement of benefits and liability 
        for replacement of benefits under an electronic benefit 
        transfer system shall be similar to the regulations in effect 
        for a paper food stamp issuance system.
            ``(8) Replacement card fee.--A State agency may collect a 
        charge for replacement of an electronic benefit transfer card 
        by reducing the monthly allotment of the household receiving 
        the replacement card.
            ``(9) Optional photographic identification.--
                    ``(A) In general.--A State agency may require that 
                an electronic benefit card contain a photograph of 1 or 
                more members of a household.
                    ``(B) Other authorized users.--If a State agency 
                requires a photograph on an electronic benefit card 
                under subparagraph (A), the State agency shall 
                establish procedures to ensure that any other 
                appropriate member of the household or any authorized 
                representative of the household may utilize the card.
            ``(10) Application of anti-tying restrictions to electronic 
        benefit transfer systems.--
                    ``(A) In general.--A company shall not sell or 
                provide electronic benefit transfer services, or fix or 
                vary the consideration for such services, on the 
                condition or requirement that the customer--
                            ``(i) obtain some additional point-of-sale 
                        service from the company or any affiliate of 
                        the company; or
                            ``(ii) not obtain some additional point-of-
                        sale service from a competitor of the company 
                        or competitor of any affiliate of the company.
                    ``(B) Definitions.--In this paragraph--
                            ``(i) Affiliate.--The term `affiliate' 
                        shall have the same meaning as in section 2(k) 
                        of the Bank Holding Company Act.
                            ``(ii) Company.--The term `company' shall 
                        have the same meaning as in section 106(a) of 
                        the Bank Holding Company Act Amendments of 
                        1970, but shall not include a bank, bank 
                        holding company, or any subsidiary of a bank 
                        holding company.
                            ``(iii) Electronic benefit transfer 
                        service.--The term `electronic benefit transfer 
                        service' means the processing of electronic 
                        transfers of household benefits determined 
                        under section 8(a) or 26 where the benefits 
                        are--
                                    ``(I) issued from and stored in a 
                                central databank;
                                    ``(II) electronically accessed by 
                                household members at the point of sale; 
                                and
                                    ``(III) provided by a Federal or 
                                state government.
                            ``(iv) Point-of-sale service.--The term 
                        `point-of-sale service' means any product or 
                        service related to the electronic authorization 
                        and processing of payments for merchandise at a 
                        retail food store, including but not limited to 
                        credit or debit card services, automated teller 
                        machines, point-of-sale terminals, or access to 
                        on-line systems.
                    ``(C) Consultation with the federal reserve 
                board.--Before promulgating regulations or 
                interpretations of regulations to carry out this 
                paragraph, the Secretary shall consult with the Board 
                of Governors of the Federal Reserve System.''.
    (b) Sense of Congress.--It is the sense of Congress that a State 
that operates an electronic benefit transfer system under the Food 
Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should operate the system in 
a manner that is compatible with electronic benefit transfer systems 
operated by other States.

SEC. 1035. VALUE OF MINIMUM ALLOTMENT.

    The proviso in section 8(a) of the Food Stamp Act of 1977 (7 U.S.C. 
2017(a)) is amended by striking ``, and shall be adjusted'' and all 
that follows through ``$5''.

SEC. 1036. BENEFITS ON RECERTIFICATION.

    Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2017(c)(2)(B)) is amended by striking ``of more than one month''.

SEC. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS.

    Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c)) is 
amended by striking paragraph (3) and inserting the following:
            ``(3) Optional combined allotment for expedited 
        households.--A State agency may provide to an eligible 
        household applying after the 15th day of a month, in lieu of 
        the initial allotment of the household and the regular 
        allotment of the household for the following month, an 
        allotment that is equal to the total amount of the initial 
        allotment and the first regular allotment. The allotment shall 
        be provided in accordance with section 11(e)(3) in the case of 
        a household that is not entitled to expedited service and in 
        accordance with paragraphs (3) and (9) of section 11(e) in the 
        case of a household that is entitled to expedited service.''.

SEC. 1038. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC ASSISTANCE 
              PROGRAMS.

    Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended 
by striking subsection (d) and inserting the following:
    ``(d) Reduction of Public Assistance Benefits.--
            ``(1) In general.--If the benefits of a household are 
        reduced under a Federal, State, or local law relating to a 
        means-tested public assistance program for the failure of a 
        member of the household to perform an action required under the 
        law or program, for the duration of the reduction--
                    ``(A) the household may not receive an increased 
                allotment as the result of a decrease in the income of 
                the household to the extent that the decrease is the 
                result of the reduction; and
                    ``(B) the State agency may reduce the allotment of 
                the household by not more than 25 percent.
            ``(2) Rules and procedures.--If the allotment of a 
        household is reduced under this subsection for a failure to 
        perform an action required under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.), the State agency 
        may use the rules and procedures that apply under part A of 
        title IV of the Act to reduce the allotment under the food 
        stamp program.''.

SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.

    Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended 
by adding at the end the following:
    ``(f) Allotments for Households Residing in Centers.--
            ``(1) In general.--In the case of an individual who resides 
        in a center for the purpose of a drug or alcoholic treatment 
        program described in the last sentence of section 3(i), a State 
        agency may provide an allotment for the individual to--
                    ``(A) the center as an authorized representative of 
                the individual for a period that is less than 1 month; 
                and
                    ``(B) the individual, if the individual leaves the 
                center.
            ``(2) Direct payment.--A State agency may require an 
        individual referred to in paragraph (1) to designate the center 
        in which the individual resides as the authorized 
        representative of the individual for the purpose of receiving 
        an allotment.''.

SEC. 1040. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD STORES AND 
              WHOLESALE FOOD CONCERNS.

    Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)(1)) 
is amended by adding at the end the following: ``No retail food store 
or wholesale food concern of a type determined by the Secretary, based 
on factors that include size, location, and type of items sold, shall 
be approved to be authorized or reauthorized for participation in the 
food stamp program unless an authorized employee of the Department of 
Agriculture, a designee of the Secretary, or, if practicable, an 
official of the State or local government designated by the Secretary 
has visited the store or concern for the purpose of determining whether 
the store or concern should be approved or reauthorized, as 
appropriate.''.

SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

    Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)) is 
amended by adding at the end the following:
            ``(3) Authorization periods.--The Secretary shall establish 
        specific time periods during which authorization to accept and 
        redeem coupons, or to redeem benefits through an electronic 
        benefit transfer system, shall be valid under the food stamp 
        program.''.

SEC. 1042. INFORMATION FOR VERIFYING ELIGIBILITY FOR AUTHORIZATION.

    Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 2018(c)) is 
amended--
            (1) in the first sentence, by inserting ``, which may 
        include relevant income and sales tax filing documents,'' after 
        ``submit information''; and
            (2) by inserting after the first sentence the following: 
        ``The regulations may require retail food stores and wholesale 
food concerns to provide written authorization for the Secretary to 
verify all relevant tax filings with appropriate agencies and to obtain 
corroborating documentation from other sources so that the accuracy of 
information provided by the stores and concerns may be verified.''.

SEC. 1043. WAITING PERIOD FOR STORES THAT FAIL TO MEET AUTHORIZATION 
              CRITERIA.

    Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 2018(d)) is 
amended by adding at the end the following: ``A retail food store or 
wholesale food concern that is denied approval to accept and redeem 
coupons because the store or concern does not meet criteria for 
approval established by the Secretary may not, for at least 6 months, 
submit a new application to participate in the program. The Secretary 
may establish a longer time period under the preceding sentence, 
including permanent disqualification, that reflects the severity of the 
basis of the denial.''.

SEC. 1044. OPERATION OF FOOD STAMP OFFICES.

    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020), as 
amended by sections 1020(b) and 1028(b), is amended--
            (1) in subsection (e)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2)(A) that the State agency shall establish procedures 
        governing the operation of food stamp offices that the State 
        agency determines best serve households in the State, including 
        households with special needs, such as households with elderly 
        or disabled members, households in rural areas with low-income 
        members, homeless individuals, households residing on 
        reservations, and households in areas in which a substantial 
        number of members of low-income households speak a language 
        other than English;
            ``(B) that in carrying out subparagraph (A), a State 
        agency--
                    ``(i) shall provide timely, accurate, and fair 
                service to applicants for, and participants in, the 
                food stamp program;
                    ``(ii) shall develop an application containing the 
                information necessary to comply with this Act;
                    ``(iii) shall permit an applicant household to 
                apply to participate in the program on the same day 
                that the household first contacts a food stamp office 
                in person during office hours;
                    ``(iv) shall consider an application that contains 
                the name, address, and signature of the applicant to be 
                filed on the date the applicant submits the 
                application;
                    ``(v) shall require that an adult representative of 
                each applicant household certify in writing, under 
                penalty of perjury, that--
                            ``(I) the information contained in the 
                        application is true; and
                            ``(II) all members of the household are 
                        citizens or are aliens eligible to receive food 
                        stamps under section 6(f);
                    ``(vi) shall provide a method of certifying and 
                issuing coupons to eligible homeless individuals, to 
                ensure that participation in the food stamp program is 
                limited to eligible households; and
                    ``(vii) may establish operating procedures that 
                vary for local food stamp offices to reflect regional 
                and local differences within the State;
            ``(C) that nothing in this Act shall prohibit the use of 
        signatures provided and maintained electronically, storage of 
        records using automated retrieval systems only, or any other 
        feature of a State agency's application system that does not 
        rely exclusively on the collection and retention of paper 
        applications or other records;
            ``(D) that the signature of any adult under this paragraph 
        shall be considered sufficient to comply with any provision of 
        Federal law requiring a household member to sign an application 
        or statement;'';
                    (B) in paragraph (3), as amended by section 
                1020(b)--
                            (i) by striking ``shall--'' and all that 
                        follows through ``provide each'' and inserting 
                        ``shall provide each''; and
                            (ii) by striking ``(B) assist'' and all 
                        that follows through ``representative of the 
                        State agency;'';
                    (C) by striking paragraphs (14) and (25);
                    (D)(i) by redesignating paragraphs (15) through 
                (24) as paragraphs (14) through (23), respectively; and
                    (ii) by redesignating paragraph (26), as added by 
                section 1028(b), as paragraph (24); and
            (2) in subsection (i)--
                    (A) by striking ``(i) Notwithstanding'' and all 
                that follows through ``(2)'' and inserting the 
                following:
    ``(i) Application and Denial Procedures.--
            ``(1) Application procedures.--Notwithstanding any other 
        provision of law,''; and
                    (B) by striking ``; (3) households'' and all that 
                follows through ``title IV of the Social Security Act. 
                No'' and inserting a period and the following:
            ``(2) Denial and termination.--Other than in a case of 
        disqualification as a penalty for failure to comply with a 
        public assistance program rule or regulation, no''.

SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.

    Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(6)) is amended--
            (1) by striking ``that (A) the'' and inserting ``that--
                    ``(A) the'';
            (2) by striking ``Act; (B) the'' and inserting ``Act; and
                    ``(B) the'';
            (3) in subparagraph (B), by striking ``United States Civil 
        Service Commission'' and inserting ``Office of Personnel 
        Management''; and
            (4) by striking subparagraphs (C) through (E).

SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMATION.

    Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(8)) is amended--
            (1) by striking ``that (A) such'' and inserting the 
        following: ``that--
                    ``(A) the'';
            (2) by striking ``law, (B) notwithstanding'' and inserting 
        the following: ``law;
                    ``(B) notwithstanding'';
            (3) by striking ``Act, and (C) such'' and inserting the 
        following: ``Act;
                    ``(C) the''; and
            (4) by adding at the end the following:
                    ``(D) notwithstanding any other provision of law, 
                the address, social security number, and, if available, 
                photograph of any member of a household shall be made 
                available, on request, to any Federal, State, or local 
                law enforcement officer if the officer furnishes the 
                State agency with the name of the member and notifies 
                the agency that--
                            ``(i) the member--
                                    ``(I) is fleeing to avoid 
                                prosecution, or custody or confinement 
                                after conviction, for a crime (or 
                                attempt to commit a crime) that, under 
                                the law of the place the member is 
                                fleeing, is a felony (or, in the case 
                                of New Jersey, a high misdemeanor), or 
                                is violating a condition of probation 
                                or parole imposed under Federal or 
                                State law; or
                                    ``(II) has information that is 
                                necessary for the officer to conduct an 
                                official duty related to subclause (I);
                            ``(ii) locating or apprehending the member 
                        is an official duty; and
                            ``(iii) the request is being made in the 
                        proper exercise of an official duty; and
                    ``(E) the safeguards shall not prevent compliance 
                with paragraph (16);''.

SEC. 1047. EXPEDITED COUPON SERVICE.

    Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(9)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``five days'' and inserting ``7 
                days''; and
                    (B) by inserting ``and'' at the end;
            (2) by striking subparagraphs (B) and (C);
            (3) by redesignating subparagraph (D) as subparagraph (B); 
        and
            (4) in subparagraph (B), as redesignated by paragraph (3), 
        by striking ``, (B), or (C)''.

SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.

    Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(10)) is amended by inserting before the semicolon at the end a 
period and the following: ``At the option of a State, at any time prior 
to a fair hearing determination under this paragraph, a household may 
withdraw, orally or in writing, a request by the household for the fair 
hearing. If the withdrawal request is an oral request, the State agency 
shall provide a written notice to the household confirming the 
withdrawal request and providing the household with an opportunity to 
request a hearing''.

SEC. 1049. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICATION 
              SYSTEMS.

    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is 
amended--
            (1) in subsection (e)(18), as redesignated by section 
        1044(1)(D)--
                    (A) by striking ``that information is'' and 
                inserting ``at the option of the State agency, that 
                information may be''; and
                    (B) by striking ``shall be requested'' and 
                inserting ``may be requested''; and
            (2) by adding at the end the following:
    ``(p) State Verification Option.--Notwithstanding any other 
provision of law, in carrying out the food stamp program, a State 
agency shall not be required to use an income and eligibility or an 
immigration status verification system established under section 1137 
of the Social Security Act (42 U.S.C. 1320b-7).''.

SEC. 1050. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY SUBMIT 
              FALSIFIED APPLICATIONS.

    Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C. 2021(b)) is 
amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) for a reasonable period of time to be determined by 
        the Secretary, including permanent disqualification, on the 
        knowing submission of an application for the approval or 
        reauthorization to accept and redeem coupons that contains 
        false information about a substantive matter that was a part of 
        the application.''.

SEC. 1051. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE 
              WIC PROGRAM.

    Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is amended 
by adding at the end the following:
    ``(g) Disqualification of Retailers Who Are Disqualified Under the 
WIC Program.--
            ``(1) In general.--The Secretary shall issue regulations 
        providing criteria for the disqualification under this Act of 
        an approved retail food store and a wholesale food concern that 
        is disqualified from accepting benefits under the special 
        supplemental nutrition program for women, infants, and children 
        established under section 17 of the Child Nutrition Act of 1966 
        (7 U.S.C. 1786).
            ``(2) Terms.--A disqualification under paragraph (1)--
                    ``(A) shall be for the same length of time as the 
                disqualification from the program referred to in 
                paragraph (1);
                    ``(B) may begin at a later date than the 
                disqualification from the program referred to in 
                paragraph (1); and
                    ``(C) notwithstanding section 14, shall not be 
                subject to judicial or administrative review.''.

SEC. 1052. COLLECTION OF OVERISSUANCES.

    (a) Collection of Overissuances.--Section 13 of the Food Stamp Act 
of 1977 (7 U.S.C. 2022) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Collection of Overissuances.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, a State agency shall collect any overissuance of 
        coupons issued to a household by--
                    ``(A) reducing the allotment of the household;
                    ``(B) withholding amounts from unemployment 
                compensation from a member of the household under 
                subsection (c);
                    ``(C) recovering from Federal pay or a Federal 
                income tax refund under subsection (d); or
                    ``(D) any other means.
            ``(2) Cost effectiveness.--Paragraph (1) shall not apply if 
        the State agency demonstrates to the satisfaction of the 
        Secretary that all of the means referred to in paragraph (1) 
        are not cost effective.
            ``(3) Maximum reduction absent fraud.--If a household 
        received an overissuance of coupons without any member of the 
        household being found ineligible to participate in the program 
        under section 6(b)(1) and a State agency elects to reduce the 
        allotment of the household under paragraph (1)(A), the State 
        agency shall not reduce the monthly allotment of the household 
        under paragraph (1)(A) by an amount in excess of the greater 
        of--
                    ``(A) 10 percent of the monthly allotment of the 
                household; or
                    ``(B) $10.
            ``(4) Procedures.--A State agency shall collect an 
        overissuance of coupons issued to a household under paragraph 
        (1) in accordance with the requirements established by the 
        State agency for providing notice, electing a means of payment, 
        and establishing a time schedule for payment.''; and
            (2) in subsection (d)--
                    (A) by striking ``as determined under subsection 
                (b) and except for claims arising from an error of the 
                State agency,'' and inserting ``, as determined under 
                subsection (b)(1),''; and
                    (B) by inserting before the period at the end the 
                following: ``or a Federal income tax refund as 
                authorized by section 3720A of title 31, United States 
                Code''.
    (b) Conforming Amendments.--Section 11(e)(8) of the Act (7 U.S.C. 
2020(e)(8)) is amended--
            (1) by striking ``and excluding claims'' and all that 
        follows through ``such section''; and
            (2) by inserting before the semicolon at the end the 
        following: ``or a Federal income tax refund as authorized by 
        section 3720A of title 31, United States Code''.
    (c) Retention Rate.--Section 16(a) of the Act (7 U.S.C. 2025(a)) is 
amended by striking ``25 percent during the period beginning October 1, 
1990'' and all that follows through ``error of a State agency'' and 
inserting the following: ``25 percent of the overissuances collected by 
the State agency under section 13, except those overissuances arising 
from an error of the State agency''.

SEC. 1053. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM REQUIREMENTS 
              PENDING ADMINISTRATIVE AND JUDICIAL REVIEW.

    Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a)) is 
amended--
            (1) by redesignating the first through seventeenth 
        sentences as paragraphs (1) through (17), respectively; and
            (2) by adding at the end the following:
            ``(18) Suspension of stores pending review.--
        Notwithstanding any other provision of this subsection, any 
        permanent disqualification of a retail food store or wholesale 
        food concern under paragraph (3) or (4) of section 12(b) shall 
        be effective from the date of receipt of the notice of 
        disqualification. If the disqualification is reversed through 
        administrative or judicial review, the Secretary shall not be 
        liable for the value of any sales lost during the 
        disqualification period.''.

SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.

    (a) Forfeiture of Items Exchanged in Food Stamp Trafficking.--The 
first sentence of section 15(g) of the Food Stamp Act of 1977 (7 U.S.C. 
2024(g)) is amended by striking ``or intended to be furnished''.
    (b) Criminal Forfeiture.--Section 15 of the Act (7 U.S.C. 2024) is 
amended by adding at the end the following:
    ``(h) Criminal Forfeiture.--
            ``(1) In general.--In imposing a sentence on a person 
        convicted of an offense in violation of subsection (b) or (c), 
        a court shall order, in addition to any other sentence imposed 
        under this subsection, that the person forfeit to the United 
        States all property described in paragraph (2).
            ``(2) Property subject to forfeiture.--All property, real 
        and personal, used in a transaction or attempted transaction, 
        to commit, or to facilitate the commission of, a violation 
        (other than a misdemeanor) of subsection (b) or (c), or 
        proceeds traceable to a violation of subsection (b) or (c), 
        shall be subject to forfeiture to the United States under 
        paragraph (1).
            ``(3) Interest of owner.--No interest in property shall be 
        forfeited under this subsection as the result of any act or 
        omission established by the owner of the interest to have been 
        committed or omitted without the knowledge or consent of the 
        owner.
            ``(4) Proceeds.--The proceeds from any sale of forfeited 
        property and any monies forfeited under this subsection shall 
        be used--
                    ``(A) first, to reimburse the Department of Justice 
                for the costs incurred by the Department to initiate 
                and complete the forfeiture proceeding;
                    ``(B) second, to reimburse the Department of 
                Agriculture Office of Inspector General for any costs 
                the Office incurred in the law enforcement effort 
                resulting in the forfeiture;
                    ``(C) third, to reimburse any Federal or State law 
                enforcement agency for any costs incurred in the law 
                enforcement effort resulting in the forfeiture; and
                    ``(D) fourth, by the Secretary to carry out the 
                approval, reauthorization, and compliance 
                investigations of retail stores and wholesale food 
                concerns under section 9.''.

SEC. 1055. LIMITATION OF FEDERAL MATCH.

    Section 16(a)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
2025(a)(4)) is amended by inserting after the comma at the end the 
following: ``but not including recruitment activities,''.

SEC. 1056. STANDARDS FOR ADMINISTRATION.

    (a) In General.--Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 
2025) is amended by striking subsection (b).
    (b) Conforming Amendments.--
            (1) The first sentence of section 11(g) of the Act (7 
        U.S.C. 2020(g)) is amended by striking ``the Secretary's 
        standards for the efficient and effective administration of the 
        program established under section 16(b)(1) or''.
            (2) Section 16(c)(1)(B) of the Act (7 U.S.C. 2025(c)(1)(B)) 
        is amended by striking ``pursuant to subsection (b)''.

SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

    Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025), as 
amended by section 1056(a), is amended by inserting after subsection 
(a) the following:
    ``(b) Work Supplementation or Support Program.--
            ``(1) Definition of work supplementation or support 
        program.--In this subsection, the term `work supplementation or 
        support program' means a program under which, as determined by 
        the Secretary, public assistance (including any benefits 
        provided under a program established by the State and the food 
        stamp program) is provided to an employer to be used for hiring 
        and employing a public assistance recipient who was not 
        employed by the employer at the time the public assistance 
        recipient entered the program.
            ``(2) Program.--A State agency may elect to use an amount 
        equal to the allotment that would otherwise be issued to a 
        household under the food stamp program, but for the operation 
        of this subsection, for the purpose of subsidizing or 
        supporting a job under a work supplementation or support 
        program established by the State.
            ``(3) Procedure.--If a State agency makes an election under 
        paragraph (2) and identifies each household that participates 
        in the food stamp program that contains an individual who is 
        participating in the work supplementation or support program--
                    ``(A) the Secretary shall pay to the State agency 
                an amount equal to the value of the allotment that the 
                household would be eligible to receive but for the 
                operation of this subsection;
                    ``(B) the State agency shall expend the amount 
                received under subparagraph (A) in accordance with the 
                work supplementation or support program in lieu of 
                providing the allotment that the household would 
                receive but for the operation of this subsection;
                    ``(C) for purposes of--
                            ``(i) sections 5 and 8(a), the amount 
                        received under this subsection shall be 
                        excluded from household income and resources; 
                        and
                            ``(ii) section 8(b), the amount received 
                        under this subsection shall be considered to be 
                        the value of an allotment provided to the 
                        household; and
                    ``(D) the household shall not receive an allotment 
                from the State agency for the period during which the 
                member continues to participate in the work 
                supplementation or support program.
            ``(4) Other work requirements.--No individual shall be 
        excused, by reason of the fact that a State has a work 
        supplementation or support program, from any work requirement 
        under section 6(d), except during the periods in which the 
        individual is employed under the work supplementation or 
        support program.
            ``(5) Length of participation.--A State agency shall 
        provide a description of how the public assistance recipients 
        in the program shall, within a specific period of time, be 
        moved from supplemented or supported employment to employment 
        that is not supplemented or supported.
            ``(6) Displacement.--A work supplementation or support 
        program shall not displace the employment of individuals who 
        are not supplemented or supported.''.

SEC. 1058. WAIVER AUTHORITY.

    Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (2) in subparagraph (A)--
                    (A) by striking the second sentence; and
                    (B) by striking ``benefits to eligible households, 
                including'' and inserting the following: ``benefits to 
                eligible households, and may waive any requirement of 
                this Act to the extent necessary for the project to be 
                conducted.
                    ``(B) Project requirements.--
                            ``(i) Program goal.--The Secretary may not 
                        conduct a project under subparagraph (A) unless 
                        the project is consistent with the goal of the 
                        food stamp program of providing food assistance 
                        to raise levels of nutrition among low-income 
                        individuals.
                            ``(ii) Permissible projects.--The Secretary 
                        may conduct a project under subparagraph (A) 
                        to--
                                    ``(I) improve program 
                                administration;
                                    ``(II) increase the self-
                                sufficiency of food stamp recipients;
                                    ``(III) test innovative welfare 
                                reform strategies; and
                                    ``(IV) allow greater conformity 
                                with the rules of other programs than 
                                would be allowed but for this 
                                paragraph.
                            ``(iii) Impermissible projects.--The 
                        Secretary may not conduct a project under 
                        subparagraph (A) that--
                                    ``(I) involves the payment of the 
                                value of an allotment in the form of 
                                cash, unless the project was approved 
                                prior to the date of enactment of this 
                                subparagraph;
                                    ``(II) substantially transfers 
                                funds made available under this Act to 
                                services or benefits provided primarily 
                                through another public assistance 
                                program; or
                                    ``(III) is not limited to a 
                                specific time period.
                            ``(iv) Additional included projects.--Pilot 
                        or experimental projects may include''.

SEC. 1059. RESPONSE TO WAIVERS.

    Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)), as amended by section 1058, is amended by adding at the 
end the following:
                    ``(D) Response to waivers.--
                            ``(i) Response.--Not later than 60 days 
                        after the date of receiving a request for a 
                        waiver under subparagraph (A), the Secretary 
                        shall provide a response that--
                                    ``(I) approves the waiver request;
                                    ``(II) denies the waiver request 
                                and explains any modification needed 
                                for approval of the waiver request;
                                    ``(III) denies the waiver request 
                                and explains the grounds for the 
                                denial; or
                                    ``(IV) requests clarification of 
                                the waiver request.
                            ``(ii) Failure to respond.--If the 
                        Secretary does not provide a response in 
                        accordance with clause (i), the waiver shall be 
                        considered approved, unless the approval is 
                        specifically prohibited by this Act.
                            ``(iii) Notice of denial.--On denial of a 
                        waiver request under clause (i)(III), the 
                        Secretary shall provide a copy of the waiver 
                        request and a description of the reasons for 
                        the denial to the Committee on Agriculture of 
                        the House of Representatives and the Committee 
                        on Agriculture, Nutrition, and Forestry of the 
                        Senate.''.

SEC. 1060. EMPLOYMENT INITIATIVES PROGRAM.

    Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended 
by striking subsection (d) and inserting the following:
    ``(d) Employment Initiatives Program.--
            ``(1) Election to participate.--
                    ``(A) In general.--Subject to the other provisions 
                of this subsection, a State may elect to carry out an 
                employment initiatives program under this subsection.
                    ``(B) Requirement.--A State shall be eligible to 
                carry out an employment initiatives program under 
this subsection only if not less than 50 percent of the households that 
received food stamp benefits during the summer of 1993 also received 
benefits under a State program funded under part A of title IV of the 
Social Security Act (42 U.S.C. 601 et seq.) during the summer of 1993.
            ``(2) Procedure.--
                    ``(A) In general.--A State that has elected to 
                carry out an employment initiatives program under 
                paragraph (1) may use amounts equal to the food stamp 
                allotments that would otherwise be issued to a 
                household under the food stamp program, but for the 
                operation of this subsection, to provide cash benefits 
                in lieu of the food stamp allotments to the household 
                if the household is eligible under paragraph (3).
                    ``(B) Payment.--The Secretary shall pay to each 
                State that has elected to carry out an employment 
                initiatives program under paragraph (1) an amount equal 
                to the value of the allotment that each household would 
                be eligible to receive under this Act but for the 
                operation of this subsection.
                    ``(C) Other provisions.--For purposes of the food 
                stamp program (other than this subsection)--
                            ``(i) cash assistance under this subsection 
                        shall be considered to be an allotment; and
                            ``(ii) each household receiving cash 
                        benefits under this subsection shall not 
                        receive any other food stamp benefit for the 
                        period for which the cash assistance is 
                        provided.
                    ``(D) Additional payments.--Each State that has 
                elected to carry out an employment initiatives program 
                under paragraph (1) shall--
                            ``(i) increase the cash benefits provided 
                        to each household under this subsection to 
                        compensate for any State or local sales tax 
                        that may be collected on purchases of food by 
                        any household receiving cash benefits under 
                        this subsection, unless the Secretary 
                        determines on the basis of information provided 
                        by the State that the increase is unnecessary 
                        on the basis of the limited nature of the items 
                        subject to the State or local sales tax; and
                            ``(ii) pay the cost of any increase in cash 
                        benefits required by clause (i).
            ``(3) Eligibility.--A household shall be eligible to 
        receive cash benefits under paragraph (2) if an adult member of 
        the household--
                    ``(A) has worked in unsubsidized employment for not 
                less than the preceding 90 days;
                    ``(B) has earned not less than $350 per month from 
                the employment referred to in subparagraph (A) for not 
                less than the preceding 90 days;
                    ``(C)(i) is receiving benefits under a State 
                program funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.); or
                    ``(ii) was receiving benefits under a State program 
                funded under part A of title IV of the Social Security 
                Act (42 U.S.C. 601 et seq.) at the time the member 
                first received cash benefits under this subsection and 
                is no longer eligible for the State program because of 
                earned income;
                    ``(D) is continuing to earn not less than $350 per 
                month from the employment referred to in subparagraph 
                (A); and
                    ``(E) elects to receive cash benefits in lieu of 
                food stamp benefits under this subsection.
            ``(4) Evaluation.--A State that operates a program under 
        this subsection for 2 years shall provide to the Secretary a 
        written evaluation of the impact of cash assistance under this 
        subsection. The State agency, with the concurrence of the 
        Secretary, shall determine the content of the evaluation.''.

SEC. 1061. REAUTHORIZATION.

    The first sentence of section 18(a)(1) of the Food Stamp Act of 
1977 (7 U.S.C. 2027(a)(1)) is amended by striking ``1991 through 1997'' 
and inserting ``1996 through 2002''.

SEC. 1062. SIMPLIFIED FOOD STAMP PROGRAM.

    (a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) 
is amended by adding at the end the following:

``SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM.

    ``(a) Definition of Federal Costs.--In this section, the term 
`Federal costs' does not include any Federal costs incurred under 
section 17.
    ``(b) Election.--Subject to subsection (d), a State may elect to 
carry out a Simplified Food Stamp Program (referred to in this section 
as a `Program'), statewide or in a political subdivision of the State, 
in accordance with this section.
    ``(c) Operation of Program.--If a State elects to carry out a 
Program, within the State or a political subdivision of the State--
            ``(1) a household in which all members receive assistance 
        under a State program funded under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.) shall automatically 
        be eligible to participate in the Program; and
            ``(2) subject to subsection (f), benefits under the Program 
        shall be determined under rules and procedures established by 
        the State under--
                    ``(A) a State program funded under part A of title 
                IV of the Social Security Act (42 U.S.C. 601 et seq.);
                    ``(B) the food stamp program (other than section 
                27); or
                    ``(C) a combination of a State program funded under 
                part A of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.) and the food stamp program (other 
                than section 27).
    ``(d) Approval of Program.--
            ``(1) State plan.--A State agency may not operate a Program 
        unless the Secretary approves a State plan for the operation of 
        the Program under paragraph (2).
            ``(2) Approval of plan.--The Secretary shall approve any 
        State plan to carry out a Program if the Secretary determines 
        that the plan--
                    ``(A) complies with this section; and
                    ``(B) contains sufficient documentation that the 
                plan will not increase Federal costs for any fiscal 
                year.
    ``(e) Increased Federal Costs.--
            ``(1) Determination.--During each fiscal year and not later 
        than 90 days after the end of each fiscal year, the Secretary 
        shall determine whether a Program being carried out by a State 
        agency is increasing Federal costs under this Act above the 
        Federal costs incurred under the food stamp program in 
        operation in the State or political subdivision of the State 
        for the fiscal year prior to the implementation of the Program, 
        adjusted for any changes in--
                    ``(A) participation;
                    ``(B) the income of participants in the food stamp 
                program that is not attributable to public assistance; 
                and
                    ``(C) the thrifty food plan under section 3(o).
            ``(2) Notification.--If the Secretary determines that the 
        Program has increased Federal costs under this Act for any 
        fiscal year or any portion of any fiscal year, the Secretary 
        shall notify the State not later than 30 days after the 
        Secretary makes the determination under paragraph (1).
            ``(3) Enforcement.--
                    ``(A) Corrective action.--Not later than 90 days 
                after the date of a notification under paragraph (2), 
                the State shall submit a plan for approval by the 
                Secretary for prompt corrective action that is designed 
                to prevent the Program from increasing Federal costs 
                under this Act.
                    ``(B) Termination.--If the State does not submit a 
                plan under subparagraph (A) or carry out a plan 
                approved by the Secretary, the Secretary shall 
                terminate the approval of the State agency operating 
                the Program and the State agency shall be ineligible to 
                operate a future Program.
    ``(f) Rules and Procedures.--
            ``(1) In general.--In operating a Program, a State or 
        political subdivision of a State may follow the rules and 
        procedures established by the State or political subdivision 
        under a State program funded under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.) or under the food 
        stamp program.
            ``(2) Standardized deductions.--In operating a Program, a 
        State or political subdivision of a State may standardize the 
        deductions provided under section 5(e). In developing the 
        standardized deduction, the State shall consider the work 
        expenses, dependent care costs, and shelter costs of 
        participating households.
            ``(3) Requirements.--In operating a Program, a State or 
        political subdivision shall comply with the requirements of--
                    ``(A) subsections (a) through (g) of section 7;
                    ``(B) section 8(a) (except that the income of a 
                household may be determined under a State program 
                funded under part A of title IV of the Social Security 
                Act (42 U.S.C. 601 et seq.));
                    ``(C) subsection (b) and (d) of section 8;
                    ``(D) subsections (a), (c), (d), and (n) of section 
                11;
                    ``(E) paragraphs (8), (12), (16), (18), (20), (24), 
                and (25) of section 11(e);
                    ``(F) section 11(e)(10) (or a comparable 
                requirement established by the State under a State 
                program funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.)); and
                    ``(G) section 16.
            ``(4) Limitation on eligibility.--Notwithstanding any other 
        provision of this section, a household may not receive benefits 
        under this section as a result of the eligibility of the 
        household under a State program funded under part A of title IV 
        of the Social Security Act (42 U.S.C. 601 et seq.), unless the 
        Secretary determines that any household with income above 130 
        percent of the poverty guidelines is not eligible for the 
        program.''.
    (b) State Plan Provisions.--Section 11(e) of the Act (7 U.S.C. 
2020(e)), as amended by sections 1020(b), 1028(b), and 1044, is amended 
by adding at the end the following:
            ``(25) if a State elects to carry out a Simplified Food 
        Stamp Program under section 26, the plans of the State agency 
        for operating the program, including--
                    ``(A) the rules and procedures to be followed by 
                the State agency to determine food stamp benefits;
                    ``(B) how the State agency will address the needs 
                of households that experience high shelter costs in 
                relation to the incomes of the households; and
                    ``(C) a description of the method by which the 
                State agency will carry out a quality control system 
                under section 16(c).''.
    (c) Conforming Amendments.--
            (1) Section 8 of the Act (7 U.S.C. 2017), as amended by 
        section 1039, is amended--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e).
            (2) Section 17 of the Act (7 U.S.C. 2026) is amended--
                    (A) by striking subsection (i); and
                    (B) by redesignating subsections (j) through (l) as 
                subsections (i) through (k), respectively.

SEC. 1063. STATE FOOD ASSISTANCE BLOCK GRANT.

    (a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et 
seq.), as amended by section 1062, is amended by adding at the end the 
following:

``SEC. 27. STATE FOOD ASSISTANCE BLOCK GRANT.

    ``(a) Definitions.--In this section:
            ``(1) Food assistance.--The term `food assistance' means 
        assistance that may be used only to obtain food, as defined in 
        section 3(g).
            ``(2) State.--The term `State' means each of the 50 States, 
        the District of Columbia, Guam, and the Virgin Islands of the 
        United States.
    ``(b) Establishment.--The Secretary shall establish a program to 
make grants to States in accordance with this section to provide--
            ``(1) food assistance to needy individuals and families 
        residing in the State; and
            ``(2) funds for administrative costs incurred in providing 
        the assistance.
    ``(c) Election.--
            ``(1) In general.--A State may annually elect to 
        participate in the program established under subsection (b) if 
        the State--
                    ``(A) has fully implemented an electronic benefit 
                transfer system that operates in the entire State;
                    ``(B) has a payment error rate under section 16(c) 
                that is not more than 6 percent as announced most 
                recently by the Secretary; or
                    ``(C) has a payment error rate in excess of 6 
                percent and agrees to contribute non-Federal funds for 
                the fiscal year of the grant, for benefits and 
                administration of the State's food assistance program, 
                the amount determined under paragraph (2).
            ``(2) State mandatory contributions.--
                    ``(A) In general.--In the case of a State that 
                elects to participate in the program under paragraph 
                (1)(C), the State shall agree to contribute, for a 
                fiscal year, an amount equal to--
                            ``(i) the benefits issued in the State; 
                        multiplied by
                            ``(ii) the payment error rate of the State; 
                        minus
                    ``(B)(i) the benefits issued in the State; 
                multiplied by
                    ``(ii) 6 percent.
                    ``(B) Determination.--Notwithstanding sections 13 
                and 14, the calculation of the contribution shall be 
                based solely on the determination of the Secretary of 
                the payment error rate.
                    ``(C) Data.--For purposes of implementing 
                subparagraph (A) for a fiscal year, the Secretary shall 
                use the data for the most recent fiscal year available.
            ``(3) Election limitation.--
                    ``(A) Re-entering food stamp program.--A State that 
                elects to participate in the program under paragraph 
                (1) may in a subsequent year decline to elect to 
                participate in the program and instead participate in 
                the food stamp program in accordance with the other 
                sections of this Act.
                    ``(B) Limitation.--Subsequent to re-entering the 
                food stamp program under subparagraph (A), the State 
                shall only be eligible to participate in the food stamp 
                program in accordance with the other sections of this 
                Act and shall not be eligible to elect to participate 
                in the program established under subsection (b).
            ``(4) Program exclusive.--
                    ``(A) In general.--A State that is participating in 
                the program established under subsection (b) shall not 
                be subject to, or receive any benefit under, this Act 
                except as provided in this section.
                    ``(B) Contract with federal government.--Nothing in 
                this section shall prohibit a State from contracting 
                with the Federal Government for the provision of 
                services or materials necessary to carry out a program 
                under this section.
    ``(d) Lead Agency.--A State desiring to receive a grant under this 
section shall designate, in an application submitted to the Secretary 
under subsection (e)(1), an appropriate State agency responsible for 
the administration of the program under this section as the lead 
agency.
    ``(e) Application and Plan.--
            ``(1) Application.--To be eligible to receive assistance 
        under this section, a State shall prepare and submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary shall by 
        regulation require, including--
                    ``(A) an assurance that the State will comply with 
                the requirements of this section;
                    ``(B) a State plan that meets the requirements of 
                paragraph (3); and
                    ``(C) an assurance that the State will comply with 
                the requirements of the State plan under paragraph (3).
            ``(2) Annual plan.--The State plan contained in the 
        application under paragraph (1) shall be submitted for approval 
        annually.
            ``(3) Requirements of plan.--
                    ``(A) Lead agency.--The State plan shall identify 
                the lead agency.
                    ``(B) Use of block grant funds.--The State plan 
                shall provide that the State shall use the amounts 
                provided to the State for each fiscal year under this 
                section--
                            ``(i) to provide food assistance to needy 
                        individuals and families residing in the State, 
                        other than residents of institutions who are 
                        ineligible for food stamps under section 3(i); 
                        and
                            ``(ii) to pay administrative costs incurred 
                        in providing the assistance.
                    ``(C) Groups served.--The State plan shall describe 
                how and to what extent the program will serve specific 
                groups of individuals and families and how the 
                treatment will differ from treatment under the food 
                stamp program under the other sections of this Act of 
                the individuals and families, including--
                            ``(i) elderly individuals and families;
                            ``(ii) migrants or seasonal farmworkers;
                            ``(iii) homeless individuals and families;
                            ``(iv) individuals and families who live in 
                        institutions eligible under section 3(i);
                            ``(v) individuals and families with 
                        earnings; and
                            ``(vi) members of Indian tribes or tribal 
                        organizations.
                    ``(D) Assistance for entire state.--The State plan 
                shall provide that benefits under this section shall be 
                available throughout the entire State.
                    ``(E) Notice and hearings.--The State plan shall 
                provide that an individual or family who applies for, 
                or receives, assistance under this section shall be 
                provided with notice of, and an opportunity for a 
                hearing on, any action under this section that 
                adversely affects the individual or family.
                    ``(F) Assessment of Needs.--The State plan shall 
                assess the food and nutrition needs of needy persons 
                residing in the State.
                    ``(G) Eligibility standards.--The State plan shall 
                describe the income, resource, and other eligibility 
                standards that are established for the receipt of 
                assistance under this section.
                    ``(H) Disqualification of fleeing felons.--The 
                State plan shall provide for the disqualification of 
                any individual who would be disqualified from 
                participating in the food stamp program under section 
                6(k).
                    ``(I) Receiving benefits in more than 1 
                jurisdiction.--The State plan shall establish a system 
                for the exchange of information with other States to 
                verify the identity and receipt of benefits by 
                recipients.
                    ``(J) Privacy.--The State plan shall provide for 
                safeguarding and restricting the use and disclosure 
of information about any individual or family receiving assistance 
under this section.
                    ``(K) Other information.--The State plan shall 
                contain such other information as may be required by 
                the Secretary.
            ``(4) Approval of application and plan.--The Secretary 
        shall approve an application and State plan that satisfies the 
        requirements of this section.
    ``(f) No Individual or Family Entitlement to Assistance.--Nothing 
in this section--
            ``(1) entitles any individual or family to assistance under 
        this section; or
            ``(2) limits the right of a State to impose additional 
        limitations or conditions on assistance under this section.
    ``(g) Benefits for Aliens.--
            ``(1) Eligibility.--No individual who is an alien shall be 
        eligible to receive benefits under a State plan approved under 
        subsection (e)(4) if the individual is not eligible to 
        participate in the food stamp program due to the alien status 
        of the individual.
            ``(2) Income.--The State plan shall provide that the income 
        of an alien shall be determined in accordance with section 
        5(i).
    ``(h) Employment and Training.--
            ``(1) Work requirements.--No individual or household shall 
        be eligible to receive benefits under a State plan funded under 
        this section if the individual or household is not eligible to 
        participate in the food stamp program under subsection (d) or 
        (o) of section 6.
            ``(2) Work programs.--Each State shall implement an 
        employment and training program in accordance with the terms 
        and conditions of section 6(d)(4) for individuals under the 
        program and shall be eligible to receive funding under section 
        16(h).
    ``(i) Enforcement.--
            ``(1) Review of compliance with state plan.--The Secretary 
        shall review and monitor State compliance with this section and 
        the State plan approved under subsection (e)(4).
            ``(2) Noncompliance.--
                    ``(A) In general.--If the Secretary, after 
                reasonable notice to a State and opportunity for a 
                hearing, finds that--
                            ``(i) there has been a failure by the State 
                        to comply substantially with any provision or 
                        requirement set forth in the State plan 
                        approved under subsection (e)(4); or
                            ``(ii) in the operation of any program or 
                        activity for which assistance is provided under 
                        this section, there is a failure by the State 
                        to comply substantially with any provision of 
                        this section;
                the Secretary shall notify the State of the finding and 
                that no further grants will be made to the State under 
                this section (or, in the case of noncompliance in the 
                operation of a program or activity, that no further 
                grants to the State will be made with respect to the 
                program or activity) until the Secretary is satisfied 
                that there is no longer any failure to comply or that 
                the noncompliance will be promptly corrected.
                    ``(B) Other penalties.--In the case of a finding of 
                noncompliance made pursuant to subparagraph (A), the 
                Secretary may, in addition to, or in lieu of, imposing 
                the penalties described in subparagraph (A), impose 
                other appropriate penalties, including recoupment of 
                money improperly expended for purposes prohibited or 
                not authorized by this section and disqualification 
                from the receipt of financial assistance under this 
                section.
                    ``(C) Notice.--The notice required under 
                subparagraph (A) shall include a specific 
                identification of any additional penalty being imposed 
                under subparagraph (B).
            ``(3) Issuance of regulations.--The Secretary shall 
        establish by regulation procedures for--
                    ``(A) receiving, processing, and determining the 
                validity of complaints made to the Secretary concerning 
                any failure of a State to comply with the State plan or 
                any requirement of this section; and
                    ``(B) imposing penalties under this section.
    ``(j) Grant.--
            ``(1) In general.--For each fiscal year, the Secretary 
        shall pay to a State that has an application approved by the 
        Secretary under subsection (e)(4) an amount that is equal to 
        the grant of the State under subsection (m) for the fiscal 
        year.
            ``(2) Method of grant.--The Secretary shall make a grant to 
        a State for a fiscal year under this section by issuing 1 or 
        more letters of credit for the fiscal year, with necessary 
        adjustments on account of overpayments or underpayments, as 
        determined by the Secretary.
            ``(3) Spending of grants by state.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a grant to a State determined under 
                subsection (m)(1) for a fiscal year may be expended by 
                the State only in the fiscal year.
                    ``(B) Carryover.--The State may reserve up to 10 
                percent of a grant determined under subsection (m)(1) 
                for a fiscal year to provide assistance under this 
                section in subsequent fiscal years, except that the 
                reserved funds may not exceed 30 percent of the total 
                grant received under this section for a fiscal year.
            ``(4) Food assistance and administrative expenditures.--In 
        each fiscal year, not more than 6 percent of the Federal and 
        State funds required to be expended by a State under this 
        section shall be used for administrative expenses.
            ``(5) Provision of food assistance.--A State may provide 
        food assistance under this section in any manner determined 
        appropriate by the State, such as electronic benefit transfer 
        limited to food purchases, coupons limited to food purchases, 
        or direct provision of commodities.
    ``(k) Quality Control.--Each State participating in the program 
established under this section shall maintain a system in accordance 
with, and shall be subject to section 16(c), including sanctions and 
eligibility for incentive payment under section 16(c), adjusted for 
State specific characteristics under regulations issued by the 
Secretary.
    ``(l) Nondiscrimination.--
            ``(1) In general.--The Secretary shall not provide 
        financial assistance for any program, project, or activity 
        under this section if any person with responsibilities for the 
        operation of the program, project, or activity discriminates 
        with respect to the program, project, or activity because of 
        race, religion, color, national origin, sex, or disability.
            ``(2) Enforcement.--The powers, remedies, and procedures 
        set forth in title VI of the Civil Rights Act of 1964 (42 
        U.S.C. 2000d et seq.) may be used by the Secretary to enforce 
        paragraph (1).
    ``(m) Grant Calculation.--
            ``(1) State grant.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), from the amounts made available under 
                section 18 for each fiscal year, the Secretary shall 
                provide a grant to each State participating in the 
                program established under this section an amount that 
                is equal to the sum of--
                            ``(i) the greater of, as determined by the 
                        Secretary--
                                    ``(I) the total dollar value of all 
                                benefits issued under the food stamp 
                                program established under this Act by 
                                the State during fiscal year 1994; or
                                    ``(II) the average per fiscal year 
                                of the total dollar value of all 
                                benefits issued under the food stamp 
                                program by the State during each of 
                                fiscal years 1992 through 1994; and
                            ``(ii) the greater of, as determined by the 
                        Secretary--
                                    ``(I) the total amount received by 
                                the State for administrative costs 
                                under section 16(a) (not including any 
                                adjustment under section 16(c)) for 
                                fiscal year 1994; or
                                    ``(II) the average per fiscal year 
                                of the total amount received by the 
                                State for administrative costs under 
                                section 16(a) (not including any 
                                adjustment under section 16(c)) for 
                                each of fiscal years 1992 through 1994.
                    ``(B) Insufficient funds.--If the Secretary finds 
                that the total amount of grants to which States would 
                otherwise be entitled for a fiscal year under 
                subparagraph (A) will exceed the amount of funds that 
                will be made available to provide the grants for the 
                fiscal year, the Secretary shall reduce the grants made 
                to States under this subsection, on a pro rata basis, 
                to the extent necessary.
            ``(2) Reduction.--The Secretary shall reduce the grant of a 
        State by the amount a State has agreed to contribute under 
        subsection (c)(1)(C).''.
    (b) Employment and Training Funding.--Section 16(h) of the Act (7 
U.S.C. 2025(a)), as amended by section 1027(d)(2), is amended by adding 
at the end the following:
            ``(6) Block grant states.--Each State electing to operate a 
        program under section 27 shall--
                    ``(A) receive the greater of--
                            ``(i) the total dollar value of the funds 
                        received under paragraph (1) by the State 
                        during fiscal year 1994; or
                            ``(ii) the average per fiscal year of the 
                        total dollar value of all funds received under 
                        paragraph (1) by the State during each of 
                        fiscal years 1992 through 1994; and
                    ``(B) be eligible to receive funds under paragraph 
                (2), within the limitations in section 6(d)(4)(K).''.
    (c) Research On Optional State Food Assistance Block Grant.--
Section 17 of the Act (7 U.S.C. 2026), as amended by section 
1062(c)(2), is amended by adding at the end the following:
    ``(l) Research On Optional State Food Assistance Block Grant.--The 
Secretary may conduct research on the effects and costs of a State 
program carried out under section 27.''.

SEC. 1064. A STUDY OF THE USE OF FOOD STAMPS TO PURCHASE VITAMINS AND 
              MINERALS.

    The Secretary of Agriculture shall, in consultation with the 
National Academy of Sciences and the Center for Disease Control and 
Prevention, conduct a study of the use of food stamps to purchase 
vitamins and minerals. The study shall include an analysis of 
scientific findings on the efficacy of and need for vitamins and 
minerals, including the adequacy of vitamin and mineral intake in low 
income populations, as shown by existing research and surveys, and the 
potential value of nutritional supplements in filling nutrient gaps 
that may exist in the population as a whole or in vulnerable subgroups 
in the U.S. population; the impact of nutritional improvements 
(including vitamin or mineral supplementation) on health status and 
health care costs for women of childbearing age, pregnant or lactating 
women, and the elderly; the cost of vitamin and mineral supplements 
commercially available; the purchasing habits of low income populations 
with regard to vitamins and minerals; the impact on the food purchases 
of low income households; and the economic impact on agricultural 
commodities. The Secretary shall report the results of the study to the 
Committee on Agriculture of the U.S. House of Representatives not later 
than December 15, 1996.''.

SEC. 1065. INVESTIGATIONS.

    Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C. 2021(a)) is 
amended by adding at the end the following:
``Regulations issued pursuant to this Act shall provide criteria for 
the finding of violations and the suspension or disqualification of a 
retail food store or wholesale food concern on the basis of evidence 
which may include, but is not limited to, facts established through on-
site investigations, inconsistent redemption data or evidence obtained 
through transaction reports under electronic benefit transfer 
systems.''.

SEC. 1066. FOOD STAMP ELIGIBILITY.

    Section 6(f) of the Food Stamp Act of 1977 (7 U.S.C. 2015(f)) is 
amended by striking the third sentence and inserting the following:
``The State agency shall, at its option, consider either all income and 
financial resources of the individual rendered ineligible to 
participate in the food stamp program under this subsection, or such 
income, less a pro rata share, and the financial resources of the 
ineligible individual, to determine the eligibility and the value of 
the allotment of the household of which such individual is a member.''.

SEC. 1067. REPORT BY THE SECRETARY.

    The Secretary of Agriculture may report to the Committee on 
Agriculture of the House of Representatives, not later than January 1, 
2000, on the effect of the food stamp reforms in the Welfare and 
Medicaid Reform Act of 1996 and the ability of State and local 
governments to deal with people in poverty. The report must answer the 
question: ``Did people become more personally responsible and were work 
opportunities provided such that poverty in America is better 
managed?''.

SEC. 1068. DEFICIT REDUCTION.

    It is the sense of the Committee on Agriculture of the House of 
Representatives that reductions in outlays resulting from this title 
shall not be taken into account for purposes of section 552 of the 
Balanced Budget and Emergency Deficit Control Act of 1985.

              Subtitle B--Commodity Distribution Programs

SEC. 1071. EMERGENCY FOOD ASSISTANCE PROGRAM.

    (a) Definitions.--Section 201A of the Emergency Food Assistance Act 
of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended to read as 
follows:

``SEC. 201A. DEFINITIONS.

    ``In this Act:
            ``(1) Additional commodities.--The term `additional 
        commodities' means commodities made available under section 214 
        in addition to the commodities made available under sections 
        202 and 203D.
            ``(2) Average monthly number of unemployed persons.--The 
        term `average monthly number of unemployed persons' means the 
        average monthly number of unemployed persons in each State in 
        the most recent fiscal year for which information concerning 
        the number of unemployed persons is available, as determined by 
        the Bureau of Labor Statistics of the Department of Labor.
            ``(3) Eligible recipient agency.--The term `eligible 
        recipient agency' means a public or nonprofit organization--
                    ``(A) that administers--
                            ``(i) an emergency feeding organization;
                            ``(ii) a charitable institution (including 
                        a hospital and a retirement home, but excluding 
                        a penal institution) to the extent that the 
                        institution serves needy persons;
                            ``(iii) a summer camp for children, or a 
                        child nutrition program providing food service;
                            ``(iv) a nutrition project operating under 
                        the Older Americans Act of 1965 (42 U.S.C. 3001 
                        et seq.), including a project that operates a 
                        congregate nutrition site and a project that 
                        provides home-delivered meals; or
                            ``(v) a disaster relief program;
                    ``(B) that has been designated by the appropriate 
                State agency, or by the Secretary; and
                    ``(C) that has been approved by the Secretary for 
                participation in the program established under this 
                Act.
            ``(4) Emergency feeding organization.--The term `emergency 
        feeding organization' means a public or nonprofit organization 
        that administers activities and projects (including the 
        activities and projects of a charitable institution, a food 
        bank, a food pantry, a hunger relief center, a soup kitchen, or 
a similar public or private nonprofit eligible recipient agency) 
providing nutrition assistance to relieve situations of emergency and 
distress through the provision of food to needy persons, including low-
income and unemployed persons.
            ``(5) Food bank.--The term `food bank' means a public or 
        charitable institution that maintains an established operation 
        involving the provision of food or edible commodities, or the 
        products of food or edible commodities, to food pantries, soup 
        kitchens, hunger relief centers, or other food or feeding 
        centers that, as an integral part of their normal activities, 
        provide meals or food to feed needy persons on a regular basis.
            ``(6) Food pantry.--The term `food pantry' means a public 
        or private nonprofit organization that distributes food to low-
        income and unemployed households, including food from sources 
        other than the Department of Agriculture, to relieve situations 
        of emergency and distress.
            ``(7) Poverty line.--The term `poverty line' has the same 
        meaning given the term in section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)).
            ``(8) Soup kitchen.--The term `soup kitchen' means a public 
        or charitable institution that, as an integral part of the 
        normal activities of the institution, maintains an established 
        feeding operation to provide food to needy homeless persons on 
        a regular basis.
            ``(9) Total value of additional commodities.--The term 
        `total value of additional commodities' means the actual cost 
        of all additional commodities made available under section 214 
        that are paid by the Secretary (including the distribution and 
        processing costs incurred by the Secretary).
            ``(10) Value of additional commodities allocated to each 
        state.--The term `value of additional commodities allocated to 
        each State' means the actual cost of additional commodities 
        made available under section 214 and allocated to each State 
        that are paid by the Secretary (including the distribution and 
        processing costs incurred by the Secretary).''.
    (b) State Plan.--Section 202A of the Act (7 U.S.C. 612c note) is 
amended to read as follows:

``SEC. 202A. STATE PLAN.

    ``(a) In General.--To receive commodities under this Act, a State 
shall submit a plan of operation and administration every 4 years to 
the Secretary for approval. The plan may be amended at any time, with 
the approval of the Secretary.
    ``(b) Requirements.--Each plan shall--
            ``(1) designate the State agency responsible for 
        distributing the commodities received under this Act;
            ``(2) set forth a plan of operation and administration to 
        expeditiously distribute commodities under this Act;
            ``(3) set forth the standards of eligibility for recipient 
        agencies; and
            ``(4) set forth the standards of eligibility for individual 
        or household recipients of commodities, which shall require--
                    ``(A) individuals or households to be comprised of 
                needy persons; and
                    ``(B) individual or household members to be 
                residing in the geographic location served by the 
                distributing agency at the time of applying for 
                assistance.
    ``(c) State Advisory Board.--The Secretary shall encourage each 
State receiving commodities under this Act to establish a State 
advisory board consisting of representatives of all interested 
entities, both public and private, in the distribution of commodities 
received under this Act in the State.''.
    (c) Authorization of Appropriations for Administrative Funds.--
Section 204(a)(1) of the Act (7 U.S.C. 612c note) is amended--
            (1) in the first sentence by striking ``for State and 
        local'' and all that follows through ``under this title'' and 
        inserting ``to pay for the direct and indirect administrative 
        costs of the State related to the processing, transporting, and 
        distributing to eligible recipient agencies of commodities 
provided by the Secretary under this Act and commodities secured from 
other sources''; and
            (2) by striking the fourth sentence.
    (d) Delivery of Commodities.--Section 214 of the Act (7 U.S.C. 612c 
note) is amended--
            (1) by striking subsections (a) through (e) and (j);
            (2) by redesignating subsections (f) through (i) as 
        subsections (a) through (d), respectively;
            (3) in subsection (b), as redesignated by paragraph (2)--
                    (A) in the first sentence, by striking ``subsection 
                (f) or subsection (j) if applicable,'' and inserting 
                ``subsection (a)''; and
                    (B) in the second sentence, by striking 
                ``subsection (f)'' and inserting ``subsection (a)'';
            (4) by striking subsection (c), as redesignated by 
        paragraph (2), and inserting the following:
    ``(c) Administration.--
            ``(1) In general.--Commodities made available for each 
        fiscal year under this section shall be delivered at reasonable 
        intervals to States based on the grants calculated under 
        subsection (a), or reallocated under subsection (b), before 
        December 31 of the following fiscal year.
            ``(2) Entitlement.--Each State shall be entitled to receive 
        the value of additional commodities determined under subsection 
        (a).''; and
            (5) in subsection (d), as redesignated by paragraph (2), by 
        striking ``or reduce'' and all that follows through ``each 
        fiscal year''.
    (e) Technical Amendments.--The Act (7 U.S.C. 612c note) is 
amended--
            (1) in the first sentence of section 203B(a), by striking 
        ``203 and 203A of this Act'' and inserting ``203A'';
            (2) in section 204(a), by striking ``title'' each place it 
        appears and inserting ``Act'';
            (3) in the first sentence of section 210(e), by striking 
        ``(except as otherwise provided for in section 214(j))''; and
            (4) by striking section 212.
    (f) Report on EFAP.--Section 1571 of the Food Security Act of 1985 
(Public Law 99-198; 7 U.S.C. 612c note) is repealed.
    (g) Availability of Commodities Under the Food Stamp Program.--The 
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended by sections 
1062 and 1063, is amended by adding at the end the following:

``SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
              ASSISTANCE PROGRAM.

    ``(a) Purchase of Commodities.--From amounts appropriated under 
this Act, for each of fiscal years 1997 through 2002, the Secretary 
shall purchase $300,000,000 of a variety of nutritious and useful 
commodities of the types that the Secretary has the authority to 
acquire through the Commodity Credit Corporation or under section 32 of 
the Act entitled `An Act to amend the Agricultural Adjustment Act, and 
for other purposes', approved August 24, 1935 (7 U.S.C. 612c), and 
distribute the commodities to States for distribution in accordance 
with section 214 of the Emergency Food Assistance Act of 1983 (Public 
Law 98-8; 7 U.S.C. 612c note).
    ``(b) Basis for Commodity Purchases.--In purchasing commodities 
under subsection (a), the Secretary shall, to the extent practicable 
and appropriate, make purchases based on--
            ``(1) agricultural market conditions;
            ``(2) preferences and needs of States and distributing 
        agencies; and
            ``(3) preferences of recipients.''.
    (h) Effective Date.--The amendments made by subsection (d) shall 
become effective on October 1, 1996.

SEC. 1072. FOOD BANK DEMONSTRATION PROJECT.

    Section 3 of the Charitable Assistance and Food Bank Act of 1987 
(Public Law 100-232; 7 U.S.C. 612c note) is repealed.

SEC. 1073. HUNGER PREVENTION PROGRAMS.

    The Hunger Prevention Act of 1988 (Public Law 100-435; 7 U.S.C. 
612c note) is amended--
            (1) by striking section 110;
            (2) by striking subtitle C of title II; and
            (3) by striking section 502.

SEC. 1074. REPORT ON ENTITLEMENT COMMODITY PROCESSING.

    Section 1773 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 7 U.S.C. 612c note) is amended by striking 
subsection (f).

            Subtitle C--Electronic Benefit Transfer Systems

SEC. 1091. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) 
is amended--
            (1) by striking ``(d) In the event'' and inserting ``(d) 
        Applicability to Service Providers Other Than Certain Financial 
        Institutions.--
            ``(1) In general.--In the event''; and
            (2) by adding at the end the following new paragraph:
            ``(2) State and local government electronic benefit 
        transfer programs.--
                    ``(A) Exemption generally.--The disclosures, 
                protections, responsibilities, and remedies established 
                under this title, and any regulation prescribed or 
                order issued by the Board in accordance with this 
                title, shall not apply to any electronic benefit 
                transfer program established under State or local law 
                or administered by a State or local government.
                    ``(B) Exception for direct deposit into recipient's 
                account.--Subparagraph (A) shall not apply with respect 
                to any electronic funds transfer under an electronic 
                benefit transfer program for deposits directly into a 
                consumer account held by the recipient of the benefit.
                    ``(C) Rule of construction.--No provision of this 
                paragraph may be construed as--
                            ``(i) affecting or altering the protections 
                        otherwise applicable with respect to benefits 
                        established by Federal, State, or local law; or
                            ``(ii) otherwise superseding the 
                        application of any State or local law.
                    ``(D) Electronic benefit transfer program 
                defined.--For purposes of this paragraph, the term 
                `electronic benefit transfer program'--
                            ``(i) means a program under which a 
                        government agency distributes needs-tested 
                        benefits by establishing accounts to be 
                        accessed by recipients electronically, such as 
                        through automated teller machines, or point-of-
                        sale terminals; and
                            ``(ii) does not include employment-related 
                        payments, including salaries and pension, 
                        retirement, or unemployment benefits 
                        established by Federal, State, or local 
                        governments.''.

                    TITLE II--COMMITTEE ON COMMERCE

SEC. 2000. TABLE OF CONTENTS.

    The table of contents of this title is as follows:

Sec. 2000. Table of contents.
  Subtitle A--Involvement of Commerce Committee in Federal Government 
                          Position Reductions

Sec. 2001. Involvement of Commerce Committee in Federal government 
                            position reductions.
           Subtitle B--Restricting Public Benefits for Aliens

              Chapter 1--Eligibility for Federal Benefits

Sec. 2101. Aliens who are not qualified aliens ineligible for Federal 
                            public benefits.
Sec. 2102. Five-year limited eligibility of qualified aliens for 
                            Federal means-tested public benefit.
Sec. 2103. Notification.
                     Chapter 2--General Provisions

Sec. 2111. Definitions.
Sec. 2112. Verification of eligibility for Federal public benefits.
                     Subtitle C--Energy Assistance

Sec. 2201. Energy assistance.
                    Subtitle D--Abstinence Education

Sec. 2301. Abstinence education.

  Subtitle A--Involvement of Commerce Committee in Federal Government 
                          Position Reductions

SEC. 2001. INVOLVEMENT OF COMMERCE COMMITTEE IN FEDERAL GOVERNMENT 
              POSITION REDUCTIONS.

    In any provision of law that provides for consultation with (or a 
report to) a relevant committee of Congress respecting reductions in 
Federal Government positions, a reference to the Committee on Commerce 
of the House of Representatives shall be deemed to have been made in 
relation to matters within the jurisdiction of such Committee.

           Subtitle B--Restricting Public Benefits for Aliens

              CHAPTER 1--ELIGIBILITY FOR FEDERAL BENEFITS

SEC. 2101. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR FEDERAL 
              PUBLIC BENEFITS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), an alien who is not a qualified 
alien (as defined in section 2111) is not eligible for any Federal 
public benefit (as defined in subsection (c)).
    (b) Exceptions.--Subsection (a) shall not apply with respect to the 
following Federal public benefits:
            (1) Emergency medical services under title XIX of the 
        Social Security Act.
            (2)(A) Public health assistance for immunizations.
            (B) Public health assistance for testing and treatment of a 
        serious communicable disease if the Secretary of Health and 
        Human Services determines that it is necessary to prevent the 
        spread of such disease.
    (c) Federal Public Benefit Defined.--
            (1) Except as provided in paragraph (2), for purposes of 
        this part, the term ``Federal public benefit'' means--
                    (A) any grant, contract, loan, professional 
                license, or commercial license provided by an agency of 
                the United States or by appropriated funds of the 
                United States; and
                    (B) any retirement, welfare, health, disability, or 
                any other similar benefit for which payments or 
                assistance are provided to an individual, household, or 
                family eligibility unit by an agency of the United 
                States or by appropriated funds of the United States,
        but only if such grant, contract, loan, or license under 
        subparagraph (A) or program providing benefits under 
        subparagraph (B) is under the jurisdiction of the Committee on 
        Commerce of the House of Representatives.
            (2) Such term shall not apply--
                    (A) to any contract, professional license, or 
                commercial license for a nonimmigrant whose visa for 
                entry is related to such employment in the United 
                States; or
                    (B) with respect to benefits for an alien who as a 
                work authorized nonimmigrant or as an alien lawfully 
                admitted for permanent residence under the Immigration 
                and Nationality Act qualified for such benefits and for 
                whom the United States under reciprocal treaty 
                agreements is required to pay benefits, as determined 
                by the Attorney General, after consultation with the 
                Secretary of State.

SEC. 2102. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR 
              FEDERAL MEANS-TESTED PUBLIC BENEFIT.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), an alien who is a qualified alien 
(as defined in section 2111) and who enters the United States on or 
after the date of the enactment of this Act is not eligible for any 
Federal means-tested public benefit (as defined in subsection (c)) for 
a period of five years beginning on the date of the alien's entry into 
the United States with a status within the meaning of the term 
``qualified alien''.
    (b) Exceptions.--The limitation under subsection (a) shall not 
apply to the following aliens:
            (1) Exception for refugees and asylees.--
                    (A) An alien who is admitted to the United States 
                as a refugee under section 207 of the Immigration and 
                Nationality Act.
                    (B) An alien who is granted asylum under section 
                208 of such Act.
                    (C) An alien whose deportation is being withheld 
                under section 243(h) of such Act.
            (2) Veteran and active duty exception.--An alien who is 
        lawfully residing in any State and is--
                    (A) a veteran (as defined in section 101 of title 
                38, United States Code) with a discharge characterized 
                as an honorable discharge and not on account of 
                alienage,
                    (B) on active duty (other than active duty for 
                training) in the Armed Forces of the United States, or
                    (C) the spouse or unmarried dependent child of an 
                individual described in subparagraph (A) or (B).
    (c) Federal Means-Tested Public Benefit Defined.--
            (1) Except as provided in paragraph (2), for purposes of 
        this part, the term ``Federal means-tested public benefit'' 
        means a Federal public benefit described in section 2101(c) in 
        which the eligibility of an individual, household, or family 
        eligibility unit for benefits, or the amount of such benefits, 
        or both are determined on the basis of income, resources, or 
        financial need of the individual, household, or unit.
            (2) Such term does not include the following:
                    (A) Emergency medical services under title XIX of 
                the Social Security Act.
                    (B)(i) Public health assistance for immunizations.
                    (ii) Public health assistance for testing and 
                treatment of a serious communicable disease if the 
                Secretary of Health and Human Services determines that 
                it is necessary to prevent the spread of such disease.

SEC. 2103. NOTIFICATION.

    Each Federal agency that administers a program to which section 
2101 or 2102 applies shall, directly or through the States, post 
information and provide general notification to the public and to 
program recipients of the changes regarding eligibility for any such 
program pursuant to this subpart.

                     CHAPTER 2--GENERAL PROVISIONS

SEC. 2111. DEFINITIONS.

    (a) In General.--Except as otherwise provided in this part, the 
terms used in this part have the same meaning given such terms in 
section 101(a) of the Immigration and Nationality Act.
    (b) Qualified Alien.--For purposes of this part, the term 
``qualified alien'' means an alien who, at the time the alien applies 
for, receives, or attempts to receive a Federal public benefit, is--
            (1) an alien who is lawfully admitted for permanent 
        residence under the Immigration and Nationality Act,
            (2) an alien who is granted asylum under section 208 of 
        such Act,
            (3) a refugee who is admitted to the United States under 
        section 207 of such Act,
            (4) an alien who is paroled into the United States under 
        section 212(d)(5) of such Act for a period of at least 1 year,
            (5) an alien whose deportation is being withheld under 
        section 243(h) of such Act, or
            (6) an alien who is granted conditional entry pursuant to 
        section 203(a)(7) of such Act as in effect prior to April 1, 
        1980.

SEC. 2112. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC BENEFITS.

    (a) In General.--Not later than 18 months after the date of the 
enactment of this Act, the Attorney General of the United States, after 
consultation with the Secretary of Health and Human Services, shall 
promulgate regulations requiring verification that a person applying 
for a Federal public benefit (as defined in section 2101(c)), to which 
the limitation under section 2101 applies, is a qualified alien and is 
eligible to receive such benefit. Such regulations shall, to the extent 
feasible, require that information requested and exchanged be similar 
in form and manner to information requested and exchanged under section 
1137 of the Social Security Act.
    (b) State Compliance.--Not later than 24 months after the date the 
regulations described in subsection (a) are adopted, a State that 
administers a program that provides a Federal public benefit shall have 
in effect a verification system that complies with the regulations.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purpose of 
this section.

                     Subtitle C--Energy Assistance

SEC. 2201. ENERGY ASSISTANCE.

    Section 2605(f) of the Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8624(f)) is amended--
            (1) by striking ``(f)(1) Notwithstanding'' and inserting 
        ``(f) Notwithstanding''; and
            (2) by striking paragraph (2).

                    Subtitle D--Abstinence Education

SEC. 2301. ABSTINENCE EDUCATION.

    (a) Increases in Funding.--Section 501(a) of the Social Security 
Act (42 U.S.C. 701(a)) is amended in the matter preceding paragraph (1) 
by striking ``Fiscal year 1990 and each fiscal year thereafter'' and 
inserting ``Fiscal years 1990 through 1995 and $761,000,000 for fiscal 
year 1996 and each fiscal year thereafter''.
    (b) Abstinence Education.--Section 501(a)(1) of such Act (42 U.S.C. 
701(a)(1)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by adding ``and'' at the end; and
            (3) by adding at the end the following new subparagraph:
                    ``(E) to provide abstinence education, and at the 
                option of the State, where appropriate, mentoring, 
                counseling, and adult supervision to promote abstinence 
                from sexual activity, with a focus on those groups 
                which are most likely to bear children out-of-
                wedlock.''.
    (c) Abstinence Education Defined.--Section 501(b) of such Act (42 
U.S.C. 701(b)) is amended by adding at the end the following new 
paragraph:
            ``(5) Abstinence education.--For purposes of this 
        subsection, the term `abstinence education' means an 
        educational or motivational program which--
                    ``(A) has as its exclusive purpose, teaching the 
                social, psychological, and health gains to be realized 
                by abstaining from sexual activity;
                    ``(B) teaches abstinence from sexual activity 
                outside marriage as the expected standard for all 
                school age children;
                    ``(C) teaches that abstinence from sexual activity 
                is the only certain way to avoid out-of-wedlock 
                pregnancy, sexually transmitted diseases, and other 
                associated health problems;
                    ``(D) teaches that a mutually faithful monogamous 
                relationship in context of marriage is the expected 
                standard of human sexual activity;
                    ``(E) teaches that sexual activity outside of the 
                context of marriage is likely to have harmful 
                psychological and physical effects;
                    ``(F) teaches that bearing children out-of-wedlock 
                is likely to have harmful consequences for the child, 
                the child's parents, and society;
                    ``(G) teaches young people how to reject sexual 
                advances and how alcohol and drug use increases 
                vulnerability to sexual advances; and
                    ``(H) teaches the importance of attaining self-
                sufficiency before engaging in sexual activity.''.
    (d) Set-Aside.--
            (1) In general.--Section 502(c) of such Act (42 U.S.C. 
        702(c)) is amended in the matter preceding paragraph (1) by 
        striking ``From'' and inserting ``Except as provided in 
        subsection (e), from''.
            (2) Set-aside.--Section 502 of such Act (42 U.S.C. 702) is 
        amended by adding at the end the following new subsection:
    ``(e) Of the amounts appropriated under section 501(a) for any 
fiscal year, the Secretary shall set aside $75,000,000 for abstinence 
education in accordance with section 501(a)(1)(E).''.

     TITLE III--COMMITTEE ON ECONOMIC AND EDUCATIONAL OPPORTUNITIES

SEC. 3001. SHORT TITLE.

    This title may be cited as the ``Personal Responsibility and Work 
Opportunity Act of 1996''.

SEC. 3002. TABLE OF CONTENTS.

    The table of contents of this title is as follows:

Sec. 3001. Short title.
Sec. 3002. Table of contents.
                         Subtitle A--Child Care

Sec. 3101. Short title and references.
Sec. 3102. Goals.
Sec. 3103. Authorization of appropriations and entitlement authority.
Sec. 3104. Lead agency.
Sec. 3105. Application and plan.
Sec. 3106. Limitation on State allotments.
Sec. 3107. Activities to improve the quality of child care.
Sec. 3108. Repeal of early childhood development and before- and after-
                            school care requirement.
Sec. 3109. Administration and enforcement.
Sec. 3110. Payments.
Sec. 3111. Annual report and audits.
Sec. 3112. Report by the Secretary.
Sec. 3113. Allotments.
Sec. 3114. Definitions.
Sec. 3115. Repeals.
Sec. 3116. Effective date.
                  Subtitle B--Child Nutrition Programs

                  Chapter 1--National School Lunch Act

Sec. 3201. State disbursement to schools.
Sec. 3202. Nutritional and other program requirements.
Sec. 3203. Free and reduced price policy statement.
Sec. 3204. Special assistance.
Sec. 3205. Miscellaneous provisions and definitions.
Sec. 3206. Summer food service program for children.
Sec. 3207. Commodity distribution.
Sec. 3208. Child care food program.
Sec. 3209. Pilot projects.
Sec. 3210. Reduction of paperwork.
Sec. 3211. Information on income eligibility.
Sec. 3212. Nutrition guidance for child nutrition programs.
Sec. 3213. Information clearinghouse.
                 Chapter 2--Child Nutrition Act of 1966

Sec. 3221. Special milk program.
Sec. 3222. Free and reduced price policy statement.
Sec. 3223. School breakfast program authorization.
Sec. 3224. State administrative expenses.
Sec. 3225. Regulations.
Sec. 3226. Prohibitions.
Sec. 3227. Miscellaneous provisions and definitions.
Sec. 3228. Accounts and records.
Sec. 3229. Special supplemental nutrition program for women, infants, 
                            and children.
Sec. 3230. Cash grants for nutrition education.
Sec. 3231. Nutrition education and training.
                  Chapter 3--Miscellaneous Provisions

Sec. 3241. Coordination of school lunch, school breakfast, and summer 
                            food service programs.
                     Subtitle C--Related Provisions

Sec. 3301. Requirement that data relating to the incidence of poverty 
                            in the United States be published at least 
                            every 2 years.
Sec. 3302. Sense of the Congress.
Sec. 3303. Legislative accountability.

                         Subtitle A--Child Care

SEC. 3101. SHORT TITLE AND REFERENCES.

    (a) Short Title.--This subtitle may be cited as the ``Child Care 
and Development Block Grant Amendments of 1996''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this subtitle an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et 
seq.).

SEC. 3102. GOALS.

    Section 658A (42 U.S.C. 9801 note) is amended--
            (1) in the section heading by inserting ``and goals'' after 
        ``title'';
            (2) by inserting ``(a) Short Title.--'' before ``This''; 
        and
            (3) by adding at the end the following:
    ``(b) Goals.--The goals of this subchapter are--
            ``(1) to allow each State maximum flexibility in developing 
        child care programs and policies that best suit the needs of 
        children and parents within such State;
            ``(2) to promote parental choice to empower working parents 
        to make their own decisions on the child care that best suits 
        their family's needs;
            ``(3) to encourage States to provide consumer education 
        information to help parents make informed choices about child 
        care;
            ``(4) to assist States to provide child care to parents 
        trying to achieve independence from public assistance; and
            ``(5) to assist States in implementing the health, safety, 
        licensing, and registration standards established in State 
        regulations.''.

SEC. 3103. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT AUTHORITY.

    (a) In General.--Section 658B (42 U.S.C. 9858) is amended to read 
as follows:

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this 
subchapter $1,000,000,000 for each of the fiscal years 1996 through 
2002.''.
    (b) Social Security Act.--Part A of title IV of the Social Security 
Act (42 U.S.C. 601-617) is amended by adding at the end the following 
new section:

``SEC. 418. FUNDING FOR CHILD CARE.

    ``(a) General Child Care Entitlement.--
            ``(1) General entitlement.--Subject to the amount 
        appropriated under paragraph (3), each State shall, for the 
        purpose of providing child care assistance, be entitled to 
        payments under a grant under this subsection for a fiscal year 
        in an amount equal to--
                    ``(A) the sum of the total amount required to be 
                paid to the State under section 403 for fiscal year 
                1994 or 1995 (whichever is greater) with respect to 
                amounts expended for child care under section--
                            ``(i) 402(g) of this Act (as such section 
                        was in effect before October 1, 1995); and
                            ``(ii) 402(i) of this Act (as so in 
                        effect); or
                    ``(B) the average of the total amounts required to 
                be paid to the State for fiscal years 1992 through 1994 
                under the sections referred to in subparagraph (A);
        whichever is greater.
            ``(2) Remainder.--
                    ``(A) Grants.--The Secretary shall use any amounts 
                appropriated for a fiscal year under paragraph (3), and 
                remaining after the reservation described in paragraph 
                (4) and after grants are awarded under paragraph (1), 
                to make grants to States under this paragraph.
                    ``(B) Amount.--Subject to subparagraph (C), the 
                amount of a grant awarded to a State for a fiscal year 
                under this paragraph shall be based on the formula used 
                for determining the amount of Federal payments to the 
                State under section 403(n) (as such section was in 
                effect before October 1, 1995).
                    ``(C) Matching requirement.--The Secretary shall 
                pay to each eligible State in a fiscal year an amount, 
                under a grant under subparagraph (A), equal to the 
                Federal medical assistance percentage for such State 
                for fiscal year 1995 (as defined in section 1905(b)) of 
                so much of the expenditures by the State for child care 
                in such year as exceed the State set-aside for such 
                State under paragraph (1)(A) for such year and the 
                amount of State expenditures in fiscal year 1994 or 
                1995 (whichever is greater) that equal the non-Federal 
                share for the programs described in subparagraph (A) of 
                paragraph (1).
                    ``(D) Redistribution.--
                            ``(i) In general.--With respect to any 
                        fiscal year, if the Secretary determines (in 
                        accordance with clause (ii)) that amounts under 
                        any grant awarded to a State under this 
                        paragraph for such fiscal year will not be used 
by such State during such fiscal year for carrying out the purpose for 
which the grant is made, the Secretary shall make such amounts 
available in the subsequent fiscal year for carrying out such purpose 
to 1 or more States which apply for such funds to the extent the 
Secretary determines that such States will be able to use such 
additional amounts for carrying out such purpose. Such available 
amounts shall be redistributed to a State pursuant to section 402(i) 
(as such section was in effect before October 1, 1995) by substituting 
`the number of children residing in all States applying for such funds' 
for `the number of children residing in the United States in the second 
preceding fiscal year'.
                            ``(ii) Time of determination and 
                        distribution.--The determination of the 
                        Secretary under clause (i) for a fiscal year 
                        shall be made not later than the end of the 
                        first quarter of the subsequent fiscal year. 
                        The redistribution of amounts under clause (i) 
                        shall be made as close as practicable to the 
                        date on which such determination is made. Any 
                        amount made available to a State from an 
                        appropriation for a fiscal year in accordance 
                        with this subparagraph shall, for purposes of 
                        this part, be regarded as part of such State's 
                        payment (as determined under this subsection) 
                        for the fiscal year in which the redistribution 
                        is made.
            ``(3) Appropriation.--For grants under this section, there 
        are appropriated--
                    ``(A) $1,967,000,000 for fiscal year 1997;
                    ``(B) $2,067,000,000 for fiscal year 1998;
                    ``(C) $2,167,000,000 for fiscal year 1999;
                    ``(D) $2,367,000,000 for fiscal year 2000;
                    ``(E) $2,567,000,000 for fiscal year 2001; and
                    ``(F) $2,717,000,000 for fiscal year 2002.
            ``(4) Indian tribes.--The Secretary shall reserve not more 
        than 1 percent of the aggregate amount appropriated to carry 
        out this section in each fiscal year for payments to Indian 
        tribes and tribal organizations.
    ``(b) Use of Funds.--
            ``(1) In general.--Amounts received by a State under this 
        section shall only be used to provide child care assistance. 
        Amounts received by a State under a grant under subsection 
        (a)(1) shall be available for use by the State without fiscal 
        year limitation.
            ``(2) Use for certain populations.--A State shall ensure 
        that not less than 70 percent of the total amount of funds 
        received by the State in a fiscal year under this section are 
        used to provide child care assistance to families who are 
        receiving assistance under a State program under this part, 
        families who are attempting through work activities to 
        transition off of such assistance program, and families who are 
        at risk of becoming dependent on such assistance program.
    ``(c) Application of Child Care and Development Block Grant Act of 
1990.--Notwithstanding any other provision of law, amounts provided to 
a State under this section shall be transferred to the lead agency 
under the Child Care and Development Block Grant Act of 1990, 
integrated by the State into the programs established by the State 
under such Act, and be subject to requirements and limitations of such 
Act.
    ``(d) Definition.--As used in this section, the term `State' means 
each of the 50 States or the District of Columbia.''.

SEC. 3104. LEAD AGENCY.

    Section 658D(b) (42 U.S.C. 9858b(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``State'' the 
                first place that such appears and inserting 
                ``governmental or nongovernmental''; and
                    (B) in subparagraph (C), by inserting ``with 
                sufficient time and Statewide distribution of the 
                notice of such hearing,'' after ``hearing in the 
                State''; and
            (2) in paragraph (2), by striking the second sentence.

SEC. 3105. APPLICATION AND PLAN.

    Section 658E (42 U.S.C. 9858c) is amended--
            (1) in subsection (b)--
                    (A) by striking ``implemented--'' and all that 
                follows through ``(2)'' and inserting ``implemented''; 
                and
                    (B) by striking ``for subsequent State plans'';
            (2) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i) by striking ``, 
                                other than through assistance provided 
                                under paragraph (3)(C),''; and
                                    (II) by striking ``except'' and all 
                                that follows through ``1992'', and 
                                inserting ``and provide a detailed 
                                description of the procedures the State 
                                will implement to carry out the 
                                requirements of this subparagraph'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``Provide 
                                assurances'' and inserting ``Certify''; 
                                and
                                    (II) by inserting before the period 
                                at the end ``and provide a detailed 
                                description of such procedures'';
                            (iii) in subparagraph (C)--
                                    (I) by striking ``Provide 
                                assurances'' and inserting ``Certify''; 
                                and
                                    (II) by inserting before the period 
                                at the end ``and provide a detailed 
                                description of how such record is 
                                maintained and is made available'';
                            (iv) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) Consumer education information.--Certify that 
                the State will collect and disseminate to parents of 
                eligible children and the general public, consumer 
                education information that will promote informed child 
                care choices.'';
                            (v) in subparagraph (E), to read as 
                        follows:
                    ``(E) Compliance with state licensing 
                requirements.--
                            ``(i) In general.--Certify that the State 
                        has in effect licensing requirements applicable 
                        to child care services provided within the 
                        State, and provide a detailed description of 
                        such requirements and of how such requirements 
                        are effectively enforced. Nothing in the 
                        preceding sentence shall be construed to 
                        require that licensing requirements be applied 
                        to specific types of providers of child care 
                        services.
                            ``(ii) Indian tribes and tribal 
                        organizations.--In lieu of any licensing and 
                        regulatory requirements applicable under State 
                        and local law, the Secretary, in consultation 
                        with Indian tribes and tribal organizations, 
                        shall develop minimum child care standards 
                        (that appropriately reflect tribal needs and 
                        available resources) that shall be applicable 
                        to Indian tribes and tribal organization 
                        receiving assistance under this subchapter.'';
                            (vi) in subparagraph (G) by striking 
                        ``Provide assurances'' and inserting 
                        ``Certify''; and
                            (vii) by striking subparagraphs (H), (I), 
                        and (J) and inserting the following:
                    ``(H) Meeting the needs of certain populations.--
                Demonstrate the manner in which the State will meet the 
                specific child care needs of families who are receiving 
                assistance under a State program under part A of title 
                IV of the Social Security Act, families who are 
                attempting through work activities to transition off of 
                such assistance program, and families that are at risk 
of becoming dependent on such assistance program.'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), by striking ``(B) 
                        and (C)'' and inserting ``(B) through (D)'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``.--Subject to the 
                                reservation contained in subparagraph 
                                (C), the'' and inserting ``and related 
                                activities.--The'';
                                    (II) in clause (i) by striking ``; 
                                and'' at the end and inserting a 
                                period;
                                    (III) by striking ``for--'' and all 
                                that follows through ``section 
                                658E(c)(2)(A)'' and inserting ``for 
                                child care services on sliding fee 
                                scale basis, activities that improve 
                                the quality or availability of such 
                                services, and any other activity that 
                                the State deems appropriate to realize 
                                any of the goals specified in 
                                paragraphs (2) through (5) of section 
                                658A(b)''; and
                                    (IV) by striking clause (ii);
                            (iii) by amending subparagraph (C) to read 
                        as follows:
                    ``(C) Limitation on administrative costs.--Not more 
                than 5 percent of the aggregate amount of funds 
                available to the State to carry out this subchapter by 
                a State in each fiscal year may be expended for 
                administrative costs incurred by such State to carry 
                out all of its functions and duties under this 
                subchapter. As used in the preceding sentence, the term 
                `administrative costs' shall not include the costs of 
                providing direct services.''; and
                            (iv) by adding at the end thereof the 
                        following:
                    ``(D) Assistance for certain families.--A State 
                shall ensure that a substantial portion of the amounts 
                available (after the State has complied with the 
                requirement of section 418(b)(2) of the Social Security 
                Act with respect to each of the fiscal years 1997 
                through 2002) to the State to carry out activities 
                under this subchapter in each fiscal year is used to 
                provide assistance to low-income working families other 
                than families described in paragraph (2)(H).''; and
                    (C) in paragraph (4)(A)--
                            (i) by striking ``provide assurances'' and 
                        inserting ``certify'';
                            (ii) in the first sentence by inserting 
                        ``and shall provide a summary of the facts 
                        relied on by the State to determine that such 
                        rates are sufficient to ensure such access'' 
                        before the period; and
                            (iii) by striking the last sentence.

SEC. 3106. LIMITATION ON STATE ALLOTMENTS.

    Section 658F(b)(1) (42 U.S.C. 9858d(b)(1)) is amended by striking 
``No'' and inserting ``Except as provided for in section 658O(c)(6), 
no''.

SEC. 3107. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

    Section 658G (42 U.S.C. 9858e) is amended to read as follows:

``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

    ``A State that receives funds to carry out this subchapter for a 
fiscal year, shall use not less than 4 percent of the amount of such 
funds for activities that are designed to provide comprehensive 
consumer education to parents and the public, activities that increase 
parental choice, and activities designed to improve the quality and 
availability of child care (such as resource and referral services).''.

SEC. 3108. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE- AND AFTER-
              SCHOOL CARE REQUIREMENT.

    Section 658H (42 U.S.C. 9858f) is repealed.

SEC. 3109. ADMINISTRATION AND ENFORCEMENT.

    Section 658I(b) (42 U.S.C. 9858g(b)) is amended--
            (1) in paragraph (1), by striking ``, and shall have'' and 
        all that follows through ``(2)''; and
            (2) in the matter following clause (ii) of paragraph 
        (2)(A), by striking ``finding and that'' and all that follows 
        through the period and inserting ``finding and shall require 
        that the State reimburse the Secretary for any funds that were 
        improperly expended for purposes prohibited or not authorized 
        by this subchapter, that the Secretary deduct from the 
        administrative portion of the State allotment for the following 
        fiscal year an amount that is less than or equal to any 
        improperly expended funds, or a combination of such options.''.

SEC. 3110. PAYMENTS.

    Section 658J(c) (42 U.S.C. 9858h(c)) is amended by striking 
``expended'' and inserting ``obligated''.

SEC. 3111. ANNUAL REPORT AND AUDITS.

    Section 658K (42 U.S.C. 9858i) is amended--
            (1) in the section heading by striking ``annual report'' 
        and inserting ``reports'';
            (2) in subsection (a), to read as follows:
    ``(a) Reports.--
            ``(1) Collection of information by states.--
                    ``(A) In general.--A State that receives funds to 
                carry out this subchapter shall collect the information 
                described in subparagraph (B) on a monthly basis.
                    ``(B) Required information.--The information 
                required under this subparagraph shall include, with 
                respect to a family unit receiving assistance under 
                this subchapter information concerning--
                            ``(i) family income;
                            ``(ii) county of residence;
                            ``(iii) the gender, race, and age of 
                        children receiving such assistance;
                            ``(iv) whether the family includes only 1 
                        parent;
                            ``(v) the sources of family income, 
                        including the amount obtained from (and 
                        separately identified)--
                                    ``(I) employment, including self-
                                employment;
                                    ``(II) cash or other assistance 
                                under part A of title IV of the Social 
                                Security Act;
                                    ``(III) housing assistance;
                                    ``(IV) assistance under the Food 
                                Stamp Act of 1977; and
                                    ``(V) other assistance programs;
                            ``(vi) the number of months the family has 
                        received benefits;
                            ``(vii) the type of child care in which the 
                        child was enrolled (such as family child care, 
                        home care, or center-based child care);
                            ``(viii) whether the child care provider 
                        involved was a relative;
                            ``(ix) the cost of child care for such 
                        families; and
                            ``(x) the average hours per week of such 
                        care;
                during the period for which such information is 
                required to be submitted.
                    ``(C) Submission to secretary.--A State described 
                in subparagraph (A) shall, on a quarterly basis, submit 
                the information required to be collected under 
                subparagraph (B) to the Secretary.
                    ``(D) Sampling.--The Secretary may disapprove the 
                information collected by a State under this paragraph 
                if the State uses sampling methods to collect such 
                information.
            ``(2) Biannual reports.--Not later than December 31, 1997, 
        and every 6 months thereafter, a State described in paragraph 
        (1)(A) shall prepare and submit to the Secretary a report that 
        includes aggregate data concerning--
                    ``(A) the number of child care providers that 
                received funding under this subchapter as separately 
                identified based on the types of providers listed in 
                section 658P(5);
                    ``(B) the monthly cost of child care services, and 
                the portion of such cost that is paid for with 
                assistance provided under this subchapter, listed by 
                the type of child care services provided;
                    ``(C) the number of payments made by the State 
                through vouchers, contracts, cash, and disregards under 
                public benefit programs, listed by the type of child 
                care services provided;
                    ``(D) the manner in which consumer education 
                information was provided to parents and the number of 
                parents to whom such information was provided; and
                    ``(E) the total number (without duplication) of 
                children and families served under this subchapter;
        during the period for which such report is required to be 
        submitted.''; and
            (2) in subsection (b)--
                    (A) in paragraph (1) by striking ``a application'' 
                and inserting ``an application'';
                    (B) in paragraph (2) by striking ``any agency 
                administering activities that receive'' and inserting 
                ``the State that receives''; and
                    (C) in paragraph (4) by striking ``entitles'' and 
                inserting ``entitled''.

SEC. 3112. REPORT BY THE SECRETARY.

    Section 658L (42 U.S.C. 9858j) is amended--
            (1) by striking ``1993'' and inserting ``1997'';
            (2) by striking ``annually'' and inserting ``biennially''; 
        and
            (3) by striking ``Education and Labor'' and inserting 
        ``Economic and Educational Opportunities''.

SEC. 3113. ALLOTMENTS.

    Section 658O (42 U.S.C. 9858m) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)
                            (i) by striking ``Possessions'' and 
                        inserting ``possessions'';
                            (ii) by inserting ``and'' after 
                        ``States,''; and
                            (iii) by striking ``, and the Trust 
                        Territory of the Pacific Islands''; and
                    (B) in paragraph (2), by striking ``3 percent'' and 
                inserting ``1 percent'';
            (2) in subsection (c)--
                    (A) in paragraph (5) by striking ``our'' and 
                inserting ``out''; and
                    (B) by adding at the end thereof the following new 
                paragraph:
            ``(6) Construction or renovation of facilities.--
                    ``(A) Request for use of funds.--An Indian tribe or 
                tribal organization may submit to the Secretary a 
                request to use amounts provided under this subsection 
                for construction or renovation purposes.
                    ``(B) Determination.--With respect to a request 
                submitted under subparagraph (A), and except as 
                provided in subparagraph (C), upon a determination by 
                the Secretary that adequate facilities are not 
                otherwise available to an Indian tribe or tribal 
                organization to enable such tribe or organization to 
                carry out child care programs in accordance with this 
                subchapter, and that the lack of such facilities will 
                inhibit the operation of such programs in the future, 
                the Secretary may permit the tribe or organization to 
                use assistance provided under this subsection to make 
                payments for the construction or renovation of 
                facilities that will be used to carry out such 
                programs.
                    ``(C) Limitation.--The Secretary may not permit an 
                Indian tribe or tribal organization to use amounts 
                provided under this subsection for construction or 
                renovation if such use will result in a decrease in the 
                level of child care services provided by the tribe or 
                organization as compared to the level of such services 
                provided by the tribe or organization in the fiscal 
                year preceding the year for which the determination 
                under subparagraph (A) is being made.
                    ``(D) Uniform procedures.--The Secretary shall 
                develop and implement uniform procedures for the 
                solicitation and consideration of requests under this 
                paragraph.''; and
            (3) in subsection (e), by adding at the end thereof the 
        following new paragraph:
            ``(4) Indian tribes or tribal organizations.--Any portion 
        of a grant or contract made to an Indian tribe or tribal 
        organization under subsection (c) that the Secretary determines 
        is not being used in a manner consistent with the provision of 
        this subchapter in the period for which the grant or contract 
        is made available, shall be allotted by the Secretary to other 
        tribes or organizations that have submitted applications under 
        subsection (c) in accordance with their respective needs.''.

SEC. 3114. DEFINITIONS.

    Section 658P (42 U.S.C. 9858n) is amended--
            (1) in paragraph (2), in the first sentence by inserting 
        ``or as a deposit for child care services if such a deposit is 
        required of other children being cared for by the provider'' 
        after ``child care services''; and
            (2) by striking paragraph (3);
            (3) in paragraph (4)(B), by striking ``75 percent'' and 
        inserting ``85 percent'';
            (4) in paragraph (5)(B)--
                    (A) by inserting ``great grandchild, sibling (if 
                such provider lives in a separate residence),'' after 
                ``grandchild,'';
                    (B) by striking ``is registered and''; and
                    (C) by striking ``State'' and inserting 
                ``applicable''.
            (5) by striking paragraph (10);
            (6) in paragraph (13)--
                    (A) by inserting ``or'' after ``Samoa,''; and
                    (B) by striking ``, and the Trust Territory of the 
                Pacific Islands'';
            (7) in paragraph (14)--
                    (A) by striking ``The term'' and inserting the 
                following:
                    ``(A) In general.--The term''; and
                    (B) by adding at the end thereof the following new 
                subparagraph:
                    ``(B) Other organizations.--Such term includes a 
                Native Hawaiian Organization, as defined in section 
                4009(4) of the Augustus F. Hawkins-Robert T. Stafford 
                Elementary and Secondary School Improvement Amendments 
                of 1988 (20 U.S.C. 4909(4)) and a private nonprofit 
                organization established for the purpose of serving 
                youth who are Indians or Native Hawaiians.''.

SEC. 3115. REPEALS.

    (a) Child Development Associate Scholarship Assistance Act of 
1985.--Title VI of the Human Services Reauthorization Act of 1986 (42 
U.S.C. 10901-10905) is repealed.
    (b) State Dependent Care Development Grants Act.--Subchapter E of 
chapter 8 of subtitle A of title VI of the Omnibus Budget 
Reconciliation Act of 1981 (42 U.S.C. 9871-9877) is repealed.
    (c) Programs of National Significance.--Title X of the Elementary 
and Secondary Education Act of 1965, as amended by Public Law 103-382 
(108 Stat. 3809 et seq.), is amended--
            (1) in section 10413(a) by striking paragraph (4),
            (2) in section 10963(b)(2) by striking subparagraph (G), 
        and
            (3) in section 10974(a)(6) by striking subparagraph (G).
    (d) Native Hawaiian Family-Based Education Centers.--Section 9205 
of the Native Hawaiian Education Act (Public Law 103-382; 108 Stat. 
3794) is repealed.
    (e) Certain Child Care Programs Under the Social Security Act.--
            (1) AFDC and transitional child care programs.--Section 402 
        of the Social Security Act (42 U.S.C. 602) is amended by 
        striking subsection (g).
            (2) At-risk child care program.--
                    (A) Authorization.--Section 402 of the Social 
                Security Act (42 U.S.C. 602) is amended by striking 
                subsection (i).
                    (B) Funding provisions.--Section 403 of the Social 
                Security Act (42 U.S.C. 603) is amended by striking 
                subsection (n).

SEC. 3116. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this 
subtitle and the amendments made by this subtitle shall take effect on 
October 1, 1996.
    (b) Exception.--The amendment made by section 3303(a) shall take 
effect on the date of enactment of this Act.

                  Subtitle B--Child Nutrition Programs

                  CHAPTER 1--NATIONAL SCHOOL LUNCH ACT

SEC. 3201. STATE DISBURSEMENT TO SCHOOLS.

    (a) In General.--Section 8 of the National School Lunch Act (42 
U.S.C. 1757) is amended--
            (1) in the third sentence, by striking ``Nothing'' and all 
        that follows through ``educational agency to'' and inserting 
        ``The State educational agency may'';
            (2) by striking the fourth and fifth sentences;
            (3) by redesignating the first through sixth sentences, as 
        amended by paragraph (1), as subsections (a) through (f), 
        respectively;
            (4) in subsection (b), as redesignated by paragraph (3), by 
        striking ``the preceding sentence'' and inserting ``subsection 
        (a)''; and
            (5) in subsection (d), as redesignated by paragraph (3), by 
        striking ``Such food costs'' and inserting ``Use of funds paid 
        to States''.
    (b) Definition of Child.--Section 12(d) of the Act (42 U.S.C. 
1760(d)) is amended by adding at the end the following:
            ``(9) `child' includes an individual, regardless of age, 
        who--
                    ``(A) is determined by a State educational agency, 
                in accordance with regulations prescribed by the 
                Secretary, to have 1 or more mental or physical 
                disabilities; and
                    ``(B) is attending any institution, as defined in 
                section 17(a), or any nonresidential public or 
                nonprofit private school of high school grade or under, 
                for the purpose of participating in a school program 
                established for individuals with mental or physical 
                disabilities.
        No institution that is not otherwise eligible to participate in 
        the program under section 17 shall be considered eligible 
        because of this paragraph.''.

SEC. 3202. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

    (a) Nutritional Standards.--Section 9(a) of the National School 
Lunch Act (42 U.S.C. 1758(a)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``(2)(A) Lunches'' and inserting 
                ``(2) Lunches'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively;
            (2) by striking paragraph (3); and
            (3) by redesignating paragraph (4) as paragraph (3).
    (b) Eligibility Guidelines.--Section 9(b) of the Act is amended--
            (1) in paragraph (2)--
                    (A) by striking subparagraph (A); and
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively;
            (2) in paragraph (5), by striking the third sentence; and
            (3) in paragraph (6), by striking ``paragraph (2)(C)'' and 
        inserting ``paragraph (2)(B)''.
    (c) Utilization of Agricultural Commodities.--Section 9(c) of the 
Act is amended by striking the second, fourth, and sixth sentences.
    (d) Conforming Amendment.--The last sentence of section 9(d)(1) of 
the Act is amended by striking ``subsection (b)(2)(C)'' and inserting 
``subsection (b)(2)(B)''.
    (e) Nutritional Information.--Section 9(f) of the Act is amended--
            (1) by striking paragraph (1);
            (2) by striking ``(2)'';
            (3) by redesignating subparagraphs (A) through (D) as 
        paragraphs (1) through (4), respectively;
            (4) by striking paragraph (1), as redesignated by paragraph 
        (3), and inserting the following:
            ``(1) Nutritional requirements.--Except as provided in 
        paragraph (2), not later than the first day of the 1996-1997 
        school year, schools that are participating in the school lunch 
        or school breakfast program shall serve lunches and breakfasts 
        under the program that--
                    ``(A) are consistent with the goals of the most 
                recent Dietary Guidelines for Americans published under 
                section 301 of the National Nutrition Monitoring and 
                Related Research Act of 1990 (7 U.S.C. 5341); and
                    ``(B) provide, on the average over each week, at 
                least--
                            ``(i) with respect to school lunches, \1/3\ 
                        of the daily recommended dietary allowance 
                        established by the Food and Nutrition Board of 
                        the National Research Council of the National 
                        Academy of Sciences; and
                            ``(ii) with respect to school breakfasts, 
                        \1/4\ of the daily recommended dietary 
                        allowance established by the Food and Nutrition 
                        Board of the National Research Council of the 
                        National Academy of Sciences.'';
            (5) in paragraph (3), as redesignated by paragraph (3)--
                    (A) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively; and
                    (B) in subparagraph (A), as so redesignated, by 
                redesignating subclauses (I) and (II) as clauses (i) 
                and (ii), respectively; and
            (6) in paragraph (4), as redesignated by paragraph (3)--
                    (A) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively;
                    (B) in subparagraph (A) (as redesignated by 
                subparagraph (A)), by redesignating subclauses (I) and 
                (II) as clauses (i) and (ii), respectively; and
                    (C) in subparagraph (A)(ii) (as redesignated by 
                subparagraph (B)), by striking ``subparagraph (C)'' and 
                inserting ``paragraph (3)''.
    (f) Use of Resources.--Section 9 of the Act is amended by striking 
subsection (h).

SEC. 3203. FREE AND REDUCED PRICE POLICY STATEMENT.

    Section 9(b)(2) of the National School Lunch Act (42 U.S.C. 
1758(b)(2)), as amended by section 3202(b)(1), is further amended by 
adding at the end the following:
                    ``(C) Free and reduced price policy statement.--
                After the initial submission, a school shall not be 
                required to submit a free and reduced price policy 
                statement to a State educational agency under this Act 
                unless there is a substantive change in the free and 
                reduced price policy of the school. A routine change in 
                the policy of a school, such as an annual adjustment of 
                the income eligibility guidelines for free and reduced 
                price meals, shall not be sufficient cause for 
                requiring the school to submit a policy statement.''.

SEC. 3204. SPECIAL ASSISTANCE.

    (a) Extension of Payment Period.--Section 11(a)(1)(D)(i) of the 
National School Lunch Act (42 U.S.C. 1759a(a)(1)(D)(i)) is amended by 
striking ``, on the date of enactment of this subparagraph,''.
    (b) Applicability of Other Provisions.--Section 11 of the Act is 
amended--
            (1) by striking subsection (d);
            (2) in subsection (e)(2)--
                    (A) by striking ``The'' and inserting ``On request 
                of the Secretary, the''; and
                    (B) by striking ``each month''; and
            (3) by redesignating subsections (e) and (f), as so 
        amended, as subsections (d) and (e), respectively.

SEC. 3205. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

    (a) Accounts and Records.--Section 12(a) of the National School 
Lunch Act (42 U.S.C. 1760(a)) is amended by striking ``at all times be 
available'' and inserting ``be available at any reasonable time''.
    (b) Restriction on Requirements.--Section 12(c) of the Act is 
amended by striking ``neither the Secretary nor the State shall'' and 
inserting ``the Secretary shall not''.
    (c) Definitions.--Section 12(d) of the Act, as amended by section 
3201(b), is further amended--
            (1) in paragraph (1), by striking ``the Trust Territory of 
        the Pacific Islands'' and inserting ``the Commonwealth of the 
        Northern Mariana Islands'';
            (2) by striking paragraphs (3) and (4); and
            (3) by redesignating paragraphs (1), (2), and (5) through 
        (9) as paragraphs (6), (7), (3), (4), (2), (5), and (1), 
        respectively, and rearranging the paragraphs so as to appear in 
        numerical order.
    (d) Adjustments to National Average Payment Rates.--Section 12(f) 
of the Act is amended by striking ``the Trust Territory of the Pacific 
Islands,''.
    (e) Expedited Rulemaking.--Section 12(k) of the Act is amended--
            (1) by striking paragraphs (1), (2), and (5); and
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (1) and (2), respectively.
    (f) Waiver.--Section 12(l) of the Act is amended--
            (1) in paragraph (2)(A)--
                    (A) in clause (iii), by adding ``and'' at the end;
                    (B) in clause (iv), by striking the semicolon at 
                the end and inserting a period; and
                    (C) by striking clauses (v) through (vii);
            (2) in paragraph (3)--
                    (A) by striking ``(A)''; and
                    (B) by striking subparagraphs (B) through (D);
            (3) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``of any requirement relating'' and inserting 
                ``that increases Federal costs or that relates'';
                    (B) by striking subparagraph (D);
                    (C) by redesignating subparagraphs (E) through (N) 
                as subparagraphs (D) through (M), respectively; and
                    (D) in subparagraph (L), as redesignated by 
                subparagraph (C), by striking ``and'' at the end and 
                inserting ``or''; and
            (4) in paragraph (6)--
                    (A) by striking ``(A)(i)'' and all that follows 
                through ``(B)''; and
                    (B) by redesignating clauses (i) through (iv) as 
                subparagraphs (A) through (D), respectively.
    (g) Food and Nutrition Projects.--Section 12 of the Act is amended 
by striking subsection (m).

SEC. 3206. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Establishment of Program.--Section 13(a) of the National School 
Lunch Act (42 U.S.C. 1761(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``initiate, 
                maintain, and expand'' and inserting ``initiate and 
                maintain''; and
                    (B) in subparagraph (E) of the second sentence, by 
                striking ``the Trust Territory of the Pacific 
                Islands,''; and
            (2) in paragraph (7)(A), by striking ``Except as provided 
        in subparagraph (C), private'' and inserting ``Private''.
    (b) Service Institutions.--Section 13(b) of the Act is amended by 
striking ``(b)(1)'' and all that follows through the end of paragraph 
(1) and inserting the following:
    ``(b) Service Institutions.--
            ``(1) Payments.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, payments to service institutions shall 
                equal the full cost of food service operations (which 
                cost shall include the costs of obtaining, preparing, 
                and serving food, but shall not include administrative 
                costs).
                    ``(B) Maximum amounts.--Subject to subparagraph 
                (C), payments to any institution under subparagraph (A) 
                shall not exceed--
                            ``(i) $1.82 for each lunch and supper 
                        served;
                            ``(ii) $1.13 for each breakfast served; and
                            ``(iii) 46 cents for each meal supplement 
                        served.
                    ``(C) Adjustments.--Amounts specified in 
                subparagraph (B) shall be adjusted on January 1, 1997, 
                and each January 1 thereafter, to the nearest lower 
                cent increment in accordance with the changes for the 
                12-month period ending the preceding November 30 in the 
                series for food away from home of the Consumer Price 
                Index for All Urban Consumers published by the Bureau 
                of Labor Statistics of the Department of Labor. Each 
                adjustment shall be based on the unrounded adjustment 
                for the prior 12-month period.''.
    (c) Administration of Service Institutions.--Section 13(b)(2) of 
the Act is amended--
            (1) in the first sentence, by striking ``four meals'' and 
        inserting ``3 meals, or 2 meals and 1 supplement,''; and
            (2) by striking the second sentence.
    (d) Reimbursements.--Section 13(c)(2) of the Act is amended--
            (1) by striking subparagraph (A);
            (2) in subparagraph (B)--
                    (A) in the first sentence--
                            (i) by striking ``, and such higher 
                        education institutions,''; and
                            (ii) by striking ``without application'' 
                        and inserting ``upon showing residence in areas 
                        in which poor economic conditions exist or on 
                        the basis of income eligibility statements for 
                        children enrolled in the program''; and
                    (B) by adding at the end the following: ``The 
                higher education institutions referred to in the 
                preceding sentence shall be eligible to participate in 
                the program under this paragraph without 
                application.'';
            (3) in subparagraph (C)(ii), by striking ``severe need''; 
        and
            (4) by redesignating subparagraphs (B) through (E), as so 
        amended, as subparagraphs (A) through (D), respectively.
    (e) Advance Program Payments.--Section 13(e)(1) of the Act is 
amended--
            (1) by striking ``institution: Provided, That (A) the'' and 
        inserting ``institution. The'';
            (2) by inserting ``(excluding a school)'' after ``any 
        service institution''; and
            (3) by striking ``responsibilities, and (B) no'' and 
        inserting ``responsibilities. No''.
    (f) Food Requirements.--Section 13(f) of the Act is amended--
            (1) by redesignating the first through seventh sentences as 
        paragraphs (1) through (7), respectively;
            (2) by striking paragraph (3), as redesignated by paragraph 
        (1);
            (3) in paragraph (4), as redesignated by paragraph (1), by 
        striking ``the first sentence'' and inserting ``paragraph 
        (1)'';
            (4) in paragraph (6), as redesignated by paragraph (1), by 
        striking ``that bacteria levels'' and all that follows through 
        the period at the end and inserting ``conformance with 
        standards set by local health authorities.''; and
            (5) by redesignating paragraphs (4) through (7), as 
        redesignated by paragraph (1), as paragraphs (3) through (6), 
        respectively.
    (g) Permitting Offer Versus Serve.--Section 13(f) of the Act, as 
amended by subsection (f), is further amended by adding at the end the 
following:
            ``(7) Offer versus serve.--A school food authority 
        participating as a service institution may permit a child 
        attending a site on school premises operated directly by the 
        authority to refuse not more than 1 item of a meal that the 
        child does not intend to consume. A refusal of an offered food 
        item shall not affect the amount of payments made under this 
        section to a school for the meal.''.
    (h) Food Service Management Companies.--Section 13(l) of the Act is 
amended--
            (1) by striking paragraph (4);
            (2) in paragraph (5), by striking the first sentence; and
            (3) by redesignating paragraph (5), as so amended, as 
        paragraph (4).
    (i) Records.--The second sentence of section 13(m) of the Act is 
amended by striking ``at all times be available'' and inserting ``be 
available at any reasonable time''.
    (j) Removing Mandatory Notice to Institutions.--Section 13(n)(2) of 
the Act is amended by striking ``, and its plans and schedule for 
informing service institutions of the availability of the program''.
    (k) Plan.--Section 13(n) of the Act is amended--
            (1) in paragraph (2), by striking ``, including the State's 
        methods of assessing need'';
            (2) by striking paragraph (3);
            (3) in paragraph (4), by striking ``and schedule''; and
            (4) by redesignating paragraphs (4) through (7), as so 
        amended, as paragraphs (3) through (6), respectively.
    (l) Monitoring and Training.--Section 13(q) of the Act is amended--
            (1) by striking paragraphs (2) and (4);
            (2) in paragraph (3), by striking ``paragraphs (1) and (2) 
        of this subsection'' and inserting ``paragraph (1)''; and
            (3) by redesignating paragraph (3), as so amended, as 
        paragraph (2).
    (m) Expired Program.--Section 13 of the Act is amended--
            (1) by striking subsection (p); and
            (2) by redesignating subsections (q) and (r), as so 
        amended, as subsections (p) and (q), respectively.
    (n) Effective Date.--The amendments made by subsection (b) shall 
become effective on January 1, 1997.

SEC. 3207. COMMODITY DISTRIBUTION.

    (a) Cereal and Shortening in Commodity Donations.--Section 14(b) of 
the National School Lunch Act (42 U.S.C. 1762a(b)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively.
    (b) Impact Study and Purchasing Procedures.--Section 14(d) of the 
Act is amended by striking the second and third sentences.
    (c) Cash Compensation for Pilot Project Schools.--Section 14(g) of 
the Act is amended by striking paragraph (3).
    (d) State Advisory Council.--Section 14 is amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsections (f) and (g), as so 
        amended, as subsections (e) and (f), respectively.

SEC. 3208. CHILD CARE FOOD PROGRAM.

    (a) Establishment of Program.--Section 17 of the National School 
Lunch Act (42 U.S.C. 1766) is amended--
            (1) in the section heading, by striking ``and adult''; and
            (2) in the first sentence of subsection (a), by striking 
        ``initiate, maintain, and expand'' and inserting ``initiate and 
        maintain''.
    (b) Payments to Sponsor Employees.--Paragraph (2) of the last 
sentence of section 17(a) of the Act (42 U.S.C. 1766(a)) is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) in the case of a family or group day care 
                home sponsoring organization that employs more than 1 
                employee, the organization does not base payments to an 
                employee of the organization on the number of family or 
                group day care homes recruited.''.
    (c) Technical Assistance.--The last sentence of section 17(d)(1) of 
the Act is amended by striking ``, and shall provide technical 
assistance'' and all that follows through ``its application''.
    (d) Reimbursement of Child Care Institutions.--Section 17(f)(2)(B) 
of the Act (42 U.S.C. 1766(f)(2)(B)) is amended by striking ``two meals 
and two supplements or three meals and one supplement'' and inserting 
``two meals and one supplement''.
    (e) Improved Targeting of Day Care Home Reimbursements.--
            (1) Restructured day care home reimbursements.--Section 
        17(f)(3) of the Act is amended by striking ``(3)(A) 
        Institutions'' and all that follows through the end of 
        subparagraph (A) and inserting the following:
            ``(3) Reimbursement of family or group day care home 
        sponsoring organizations.--
                    ``(A) Reimbursement factor.--
                            ``(i) In general.--An institution that 
                        participates in the program under this section 
                        as a family or group day care home sponsoring 
                        organization shall be provided, for payment to 
                        a home sponsored by the organization, 
                        reimbursement factors in accordance with this 
                        subparagraph for the cost of obtaining and 
                        preparing food and prescribed labor costs 
                        involved in providing meals under this section.
                            ``(ii) Tier i family or group day care 
                        homes.--
                                    ``(I) Definition.--In this 
                                paragraph, the term `tier I family or 
                                group day care home' means--
                                            ``(aa) a family or group 
                                        day care home that is located 
                                        in a geographic area, as 
                                        defined by the Secretary based 
                                        on census data, in which at 
                                        least 50 percent of the 
                                        children residing in the area 
                                        are members of households whose 
                                        incomes meet the income 
                                        eligibility guidelines for free 
                                        or reduced price meals under 
                                        section 9;
                                            ``(bb) a family or group 
                                        day care home that is located 
                                        in an area served by a school 
                                        enrolling elementary students 
                                        in which at least 50 percent of 
                                        the total number of children 
                                        enrolled are certified eligible 
                                        to receive free or reduced 
                                        price school meals under this 
                                        Act or the Child Nutrition Act 
                                        of 1966 (42 U.S.C. 1771 et 
                                        seq.); or
                                            ``(cc) a family or group 
                                        day care home that is operated 
                                        by a provider whose household 
                                        meets the income eligibility 
                                        guidelines for free or reduced 
                                        price meals under section 9 and 
                                        whose income is verified by the 
                                        sponsoring organization of the 
                                        home under regulations 
                                        established by the Secretary.
                                    ``(II) Reimbursement.--Except as 
                                provided in subclause (III), a tier I 
                                family or group day care home shall be 
                                provided reimbursement factors under 
                                this clause without a requirement for 
                                documentation of the costs described in 
                                clause (i), except that reimbursement 
                                shall not be provided under this 
                                subclause for meals or supplements 
                                served to the children of a person 
                                acting as a family or group day care 
                                home provider unless the children meet 
                                the income eligibility guidelines for 
                                free or reduced price meals under 
                                section 9.
                                    ``(III) Factors.--Except as 
                                provided in subclause (IV), the 
                                reimbursement factors applied to a home 
                                referred to in subclause (II) shall be 
                                the factors in effect on July 1, 1996.
                                    ``(IV) Adjustments.--The 
                                reimbursement factors under this 
                                subparagraph shall be adjusted on July 
                                1, 1997, and each July 1 thereafter, to 
                                reflect changes in the Consumer Price 
                                Index for food at home for the most 
                                recent 12-month period for which the 
                                data are available. The reimbursement 
                                factors under this subparagraph shall 
                                be rounded to the nearest lower cent 
                                increment and based on the unrounded 
                                adjustment in effect on June 30 of the 
                                preceding school year.
                            ``(iii) Tier ii family or group day care 
                        homes.--
                                    ``(I) In general.--
                                            ``(aa) Factors.--Except as 
                                        provided in subclause (II), 
                                        with respect to meals or 
                                        supplements served under this 
                                        clause by a family or group day 
                                        care home that does not meet 
                                        the criteria set forth in 
                                        clause (ii)(I), the 
                                        reimbursement factors shall be 
                                        90 cents for lunches and 
                                        suppers, 25 cents for 
                                        breakfasts, and 10 cents for 
                                        supplements.
                                            ``(bb) Adjustments.--The 
                                        factors shall be adjusted on 
                                        July 1, 1997, and each July 1 
                                        thereafter, to reflect changes 
                                        in the Consumer Price Index for 
                                        food at home for the most 
                                        recent 12-month period for 
                                        which the data are available. 
                                        The reimbursement factors under 
                                        this item shall be rounded down 
                                        to the nearest lower cent 
                                        increment and based on the 
                                        unrounded adjustment for the 
                                        preceding 12-month period.
                                            ``(cc) Reimbursement.--A 
                                        family or group day care home 
                                        shall be provided reimbursement 
                                        factors under this subclause 
                                        without a requirement for 
                                        documentation of the costs 
                                        described in clause (i), except 
                                        that reimbursement shall not be 
                                        provided under this subclause 
                                        for meals or supplements served 
                                        to the children of a person 
                                        acting as a family or group day 
                                        care home provider unless the 
                                        children meet the income 
                                        eligibility guidelines for free 
                                        or reduced price meals under 
                                        section 9.
                                    ``(II) Other factors.--A family or 
                                group day care home that does not meet 
                                the criteria set forth in clause 
                                (ii)(I) may elect to be provided 
                                reimbursement factors determined in 
                                accordance with the following 
                                requirements:
                                            ``(aa) Children eligible 
                                        for free or reduced price 
                                        meals.--In the case of meals or 
                                        supplements served under this 
                                        subsection to children who are 
                                        members of households whose 
                                        incomes meet the income 
                                        eligibility guidelines for free 
                                        or reduced price meals under 
                                        section 9, the family or group 
                                        day care home shall be 
provided reimbursement factors set by the Secretary in accordance with 
clause (ii)(III).
                                            ``(bb) Ineligible 
                                        children.--In the case of meals 
                                        or supplements served under 
                                        this subsection to children who 
                                        are members of households whose 
                                        incomes do not meet the income 
                                        eligibility guidelines, the 
                                        family or group day care home 
                                        shall be provided reimbursement 
                                        factors in accordance with 
                                        subclause (I).
                                    ``(III) Information and 
                                determinations.--
                                            ``(aa) In general.--If a 
                                        family or group day care home 
                                        elects to claim the factors 
                                        described in subclause (II), 
                                        the family or group day care 
                                        home sponsoring organization 
                                        serving the home shall collect 
                                        the necessary income 
                                        information, as determined by 
                                        the Secretary, from any parent 
                                        or other caretaker to make the 
                                        determinations specified in 
                                        subclause (II) and shall make 
                                        the determinations in 
                                        accordance with rules 
                                        prescribed by the Secretary.
                                            ``(bb) Categorical 
                                        eligibility.--In making a 
                                        determination under item (aa), 
                                        a family or group day care home 
                                        sponsoring organization may 
                                        consider a child participating 
                                        in or subsidized under, or a 
                                        child with a parent 
                                        participating in or subsidized 
                                        under, a federally or State 
                                        supported child care or other 
                                        benefit program with an income 
                                        eligibility limit that does not 
                                        exceed the eligibility standard 
                                        for free or reduced price meals 
                                        under section 9 to be a child 
                                        who is a member of a household 
                                        whose income meets the income 
                                        eligibility guidelines under 
                                        section 9.
                                            ``(cc) Factors for children 
                                        only.--A family or group day 
                                        care home may elect to receive 
                                        the reimbursement factors 
                                        prescribed under clause 
                                        (ii)(III) solely for the 
                                        children participating in a 
                                        program referred to in item 
                                        (bb) if the home elects not to 
                                        have income statements 
                                        collected from parents or other 
                                        caretakers.
                                    ``(IV) Simplified meal counting and 
                                reporting procedures.--The Secretary 
                                shall prescribe simplified meal 
                                counting and reporting procedures for 
                                use by a family or group day care home 
                                that elects to claim the factors under 
                                subclause (II) and by a family or group 
                                day care home sponsoring organization 
                                that sponsors the home. The procedures 
                                the Secretary prescribes may include 1 
                                or more of the following:
                                            ``(aa) Setting an annual 
                                        percentage for each home of the 
                                        number of meals served that are 
                                        to be reimbursed in accordance 
                                        with the reimbursement factors 
                                        prescribed under clause 
                                        (ii)(III) and an annual 
                                        percentage of the number of 
                                        meals served that are to be 
                                        reimbursed in accordance with 
                                        the reimbursement factors 
                                        prescribed under subclause (I), 
                                        based on the family income of 
                                        children enrolled in the home 
                                        in a specified month or other 
                                        period.
                                            ``(bb) Placing a home into 
                                        1 of 2 or more reimbursement 
                                        categories annually based on 
                                        the percentage of children in 
                                        the home whose households have 
                                        incomes that meet the income 
                                        eligibility guidelines under 
                                        section 9, with each such 
                                        reimbursement category carrying 
                                        a set of reimbursement factors 
                                        such as the factors prescribed 
                                        under clause (ii)(III) or 
subclause (I) or factors established within the range of factors 
prescribed under clause (ii)(III) and subclause (I).
                                            ``(cc) Such other 
                                        simplified procedures as the 
                                        Secretary may prescribe.
                                    ``(V) Minimum verification 
                                requirements.--The Secretary may 
                                establish any necessary minimum 
                                verification requirements.''.
            (2) Grants to states to provide assistance to family or 
        group day care homes.--Section 17(f)(3) of the Act is amended 
        by adding at the end the following:
                    ``(D) Grants to states to provide assistance to 
                family or group day care homes.--
                            ``(i) In general.--
                                    ``(I) Reservation.--From amounts 
                                made available to carry out this 
                                section, the Secretary shall reserve 
                                $5,000,000 of the amount made available 
                                for fiscal year 1997.
                                    ``(II) Purpose.--The Secretary 
                                shall use the funds made available 
                                under subclause (I) to provide grants 
                                to States for the purpose of 
                                providing--
                                            ``(aa) assistance, 
                                        including grants, to family and 
                                        day care home sponsoring 
                                        organizations and other 
                                        appropriate organizations, in 
                                        securing and providing 
                                        training, materials, automated 
                                        data processing assistance, and 
                                        other assistance for the staff 
                                        of the sponsoring 
                                        organizations; and
                                            ``(bb) training and other 
                                        assistance to family and group 
                                        day care homes in the 
                                        implementation of the amendment 
                                        to subparagraph (A) made by 
                                        section 3208(e)(1) of the 
                                        Personal Responsibility and 
                                        Work Opportunity Act of 1996.
                            ``(ii) Allocation.--The Secretary shall 
                        allocate from the funds reserved under clause 
                        (i)(I)--
                                    ``(I) $30,000 in base funding to 
                                each State; and
                                    ``(II) any remaining amount among 
                                the States, based on the number of 
                                family day care homes participating in 
                                the program in a State during fiscal 
                                year 1995 as a percentage of the number 
                                of all family day care homes 
                                participating in the program during 
                                fiscal year 1995.
                            ``(iii) Retention of funds.--Of the amount 
                        of funds made available to a State for fiscal 
                        year 1997 under clause (i), the State may 
                        retain not to exceed 30 percent of the amount 
                        to carry out this subparagraph.
                            ``(iv) Additional payments.--Any payments 
                        received under this subparagraph shall be in 
                        addition to payments that a State receives 
                        under subparagraph (A).''.
            (3) Provision of data.--Section 17(f)(3) of the Act, as 
        amended by paragraph (2), is further amended by adding at the 
        end the following:
                    ``(E) Provision of data to family or group day care 
                home sponsoring organizations.--
                            ``(i) Census data.--The Secretary shall 
                        provide to each State agency administering a 
                        child care food program under this section data 
                        from the most recent decennial census survey or 
                        other appropriate census survey for which the 
                        data are available showing which areas in the 
                        State meet the requirements of subparagraph 
                        (A)(ii)(I)(aa). The State agency shall provide 
                        the data to family or group day care home 
                        sponsoring organizations located in the State.
                            ``(ii) School data.--
                                    ``(I) In general.--A State agency 
                                administering the school lunch program 
                                under this Act or the school breakfast 
program under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
shall provide to approved family or group day care home sponsoring 
organizations a list of schools serving elementary school children in 
the State in which not less than \1/2\ of the children enrolled are 
certified to receive free or reduced price meals. The State agency 
shall collect the data necessary to create the list annually and 
provide the list on a timely basis to any approved family or group day 
care home sponsoring organization that requests the list.
                                    ``(II) Use of data from preceding 
                                school year.--In determining for a 
                                fiscal year or other annual period 
                                whether a home qualifies as a tier I 
                                family or group day care home under 
                                subparagraph (A)(ii)(I), the State 
                                agency administering the program under 
                                this section, and a family or group day 
                                care home sponsoring organization, 
                                shall use the most current available 
                                data at the time of the determination.
                            ``(iii) Duration of determination.--For 
                        purposes of this section, a determination that 
                        a family or group day care home is located in 
                        an area that qualifies the home as a tier I 
                        family or group day care home (as the term is 
                        defined in subparagraph (A)(ii)(I)), shall be 
                        in effect for 3 years (unless the determination 
                        is made on the basis of census data, in which 
                        case the determination shall remain in effect 
                        until more recent census data are available) 
                        unless the State agency determines that the 
                        area in which the home is located no longer 
                        qualifies the home as a tier I family or group 
                        day care home.''.
            (4) Conforming amendments.--Section 17(c) of the Act is 
        amended by inserting ``except as provided in subsection 
        (f)(3),'' after ``For purposes of this section,'' each place it 
        appears in paragraphs (1), (2), and (3).
    (f) Reimbursement.--Section 17(f) of the Act is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (B), by striking the third and 
                fourth sentences; and
                    (B) in subparagraph (C)--
                            (i) by striking ``(i)'' and
                            (ii) by striking clause (ii); and
            (2) in paragraph (4), by striking ``shall'' and inserting 
        ``may'' in the first sentence.
    (g) Nutritional Requirements.--Section 17(g)(1) of the Act is 
amended--
            (1) in subparagraph (A), by striking the second sentence; 
        and
            (2) in subparagraph (B), by striking the second sentence.
    (h) Elimination of State Paperwork and Outreach Burden.--Section 17 
of the Act is amended by striking subsection (k) and inserting the 
following:
    ``(k) Training and Technical Assistance.--A State participating in 
the program established under this section shall provide sufficient 
training, technical assistance, and monitoring to facilitate effective 
operation of the program. The Secretary shall assist the State in 
developing plans to fulfill the requirements of this subsection.''.
    (i) Records.--The second sentence of section 17(m) of the Act is 
amended by striking ``at all times'' and inserting ``at any reasonable 
time''.
    (j) Modification of Adult Care Food Program.--Section 17(o) of the 
Act is amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking ``adult day care centers'' and 
                inserting ``day care centers for chronically impaired 
                disabled persons''; and
                    (B) by striking ``to persons 60 years of age or 
                older or''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``adult day care center'' 
                        and inserting ``day care center for chronically 
                        impaired disabled persons''; and
                            (ii) in clause (i)--
                                    (I) by striking ``adult'';
                                    (II) by striking ``adults'' and 
                                inserting ``persons''; and
                                    (III) by striking ``or persons 60 
                                years of age or older''; and
                    (B) in subparagraph (B), by striking ``adult day 
                care services'' and inserting ``day care services for 
                chronically impaired disabled persons''.
    (k) Unneeded Provision.--Section 17 of the Act is amended by 
striking subsection (q).
    (l) Conforming Amendments.--
            (1) Section 17B(f) of the Act (42 U.S.C. 1766b(f)) is 
        amended--
                    (A) in the subsection heading, by striking ``and 
                Adult''; and
                    (B) in paragraph (1), by striking ``and adult''.
            (2) Section 18(e)(3)(B) of the Act (42 U.S.C. 
        1769(e)(3)(B)) is amended by striking ``and adult''.
            (3) Section 25(b)(1)(C) of the Act (42 U.S.C. 
        1769f(b)(1)(C)) is amended by striking ``and adult''.
            (4) Section 3(1) of the Healthy Meals for Healthy Americans 
        Act of 1994 (Public Law 103-448) is amended by striking ``and 
        adult''.
    (m) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall become effective on the 
        date of enactment of this Act.
            (2) Improved targeting of day care home reimbursements.--
        The amendments made by paragraphs (1) and (4) of subsection (e) 
        shall become effective on July 1, 1997.
            (3) Regulations.--
                    (A) Interim regulations.--Not later than January 1, 
                1997, the Secretary shall issue interim regulations to 
                implement--
                            (i) the amendments made by paragraphs (1), 
                        (3), and (4) of subsection (e); and
                            (ii) section 17(f)(3)(C) of the National 
                        School Lunch Act (42 U.S.C. 1766(f)(3)(C)).
                    (B) Final regulations.--Not later than July 1, 
                1997, the Secretary shall issue final regulations to 
                implement the provisions of law referred to in 
                subparagraph (A).
    (n) Study of Impact of Amendments on Program Participation and 
Family Day Care Licensing.--
            (1) In general.--The Secretary of Agriculture, in 
        conjunction with the Secretary of Health and Human Services, 
        shall study the impact of the amendments made by this section 
        on--
                    (A) the number of family day care homes 
                participating in the child care food program 
                established under section 17 of the National School 
                Lunch Act (42 U.S.C. 1766);
                    (B) the number of day care home sponsoring 
                organizations participating in the program;
                    (C) the number of day care homes that are licensed, 
                certified, registered, or approved by each State in 
                accordance with regulations issued by the Secretary;
                    (D) the rate of growth of the numbers referred to 
                in subparagraphs (A) through (C);
                    (E) the nutritional adequacy and quality of meals 
                served in family day care homes that--
                            (i) received reimbursement under the 
                        program prior to the amendments made by this 
                        section but do not receive reimbursement after 
                        the amendments made by this section; or
                            (ii) received full reimbursement under the 
                        program prior to the amendments made by this 
                        section but do not receive full reimbursement 
                        after the amendments made by this section; and
                    (F) the proportion of low-income children 
                participating in the program prior to the amendments 
                made by this section and the proportion of low-income 
                children participating in the program after the 
                amendments made by this section.
            (2) Required data.--Each State agency participating in the 
        child care food program under section 17 of the National School 
        Lunch Act (42 U.S.C. 1766) shall submit to the Secretary data 
        on--
                    (A) the number of family day care homes 
                participating in the program on June 30, 1997, and June 
                30, 1998;
                    (B) the number of family day care homes licensed, 
                certified, registered, or approved for service on June 
                30, 1997, and June 30, 1998; and
                    (C) such other data as the Secretary may require to 
                carry out this subsection.
            (3) Submission of report.--Not later than 2 years after the 
        effective date of this section, the Secretary shall submit the 
        study required under this subsection to the Committee on 
        Economic and Educational Opportunities of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate.

SEC. 3209. PILOT PROJECTS.

    (a) Universal Free Pilot.--Section 18(d) of the National School 
Lunch Act (42 U.S.C. 1769(d)) is amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively.
    (b) Demo Project Outside School Hours.--Section 18(e) of the Act is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``(A)''; and
                            (ii) by striking ``shall'' and inserting 
                        ``may''; and
                    (B) by striking subparagraph (B); and
            (2) by striking paragraph (5) and inserting the following:
            ``(5) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection such 
        sums as are necessary for each of fiscal years 1997 and 
        1998.''.
    (c) Eliminating Projects.--Section 18 of the Act is amended--
            (1) by striking subsections (a) and (g) through (i); and
            (2) by redesignating subsections (b) through (f), as so 
        amended, as subsections (a) through (e), respectively.
    (d) Conforming Amendment.--Section 17B(d)(1)(A) of the Act (42 
U.S.C. 1766b(d)(1)(A)) is amended by striking ``18(c)'' and inserting 
``18(b)''.

SEC. 3210. REDUCTION OF PAPERWORK.

    Section 19 of the National School Lunch Act (42 U.S.C. 1769a) is 
repealed.

SEC. 3211. INFORMATION ON INCOME ELIGIBILITY.

    Section 23 of the National School Lunch Act (42 U.S.C. 1769d) is 
repealed.

SEC. 3212. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.

    Section 24 of the National School Lunch Act (42 U.S.C. 1769e) is 
repealed.

SEC. 3213. INFORMATION CLEARINGHOUSE.

    Section 26 of the National School Lunch Act (42 U.S.C. 1769g) is 
repealed.

                 CHAPTER 2--CHILD NUTRITION ACT OF 1966

SEC. 3221. SPECIAL MILK PROGRAM.

    Section 3(a)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
1772(a)(3)) is amended by striking ``the Trust Territory of the Pacific 
Islands'' and inserting ``the Commonwealth of the Northern Mariana 
Islands''.

SEC. 3222. FREE AND REDUCED PRICE POLICY STATEMENT.

    Section 4(b)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 
1773(b)(1)) is amended by adding at the end the following:
                    ``(E) Free and reduced price policy statement.--
                After the initial submission, a school shall not be 
                required to submit a free and reduced price policy 
                statement to a State educational agency under this Act 
                unless there is a substantive change in the free and 
                reduced price policy of the school. A routine change in 
                the policy of a school, such as an annual adjustment of 
                the income eligibility guidelines for free and reduced 
                price meals, shall not be sufficient cause for 
                requiring the school to submit a policy statement.''.

SEC. 3223. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

    (a) Training and Technical Assistance in Food Preparation.--Section 
4(e)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(e)(1)) is 
amended--
            (1) in subparagraph (A), by striking ``(A)''; and
            (2) by striking subparagraph (B).
    (b) Expansion of Program; Startup and Expansion Costs.--
            (1) In general.--Section 4 of the Act is amended by 
        striking subsections (f) and (g).
            (2) Effective date.--The amendments made by paragraph (1) 
        shall become effective on October 1, 1996.

SEC. 3224. STATE ADMINISTRATIVE EXPENSES.

    (a) Use of Funds for Commodity Distribution Administration; 
Studies.--Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) 
is amended--
            (1) by striking subsections (e) and (h); and
            (2) by redesignating subsections (f), (g), and (i) as 
        subsections (e), (f), and (g), respectively.
    (b) Approval of Changes.--Section 7(e) of the Act, as so 
redesignated, is amended--
            (1) by striking ``each year an annual plan'' and inserting 
        ``the initial fiscal year a plan''; and
            (2) by adding at the end the following: ``After submitting 
        the initial plan, a State shall only be required to submit to 
        the Secretary for approval a substantive change in the plan.''.

SEC. 3225. REGULATIONS.

    Section 10(b) of the Child Nutrition Act of 1966 (42 U.S.C. 
1779(b)) is amended--
            (1) in paragraph (1), by striking ``(1)''; and
            (2) by striking paragraphs (2) through (4).

SEC. 3226. PROHIBITIONS.

    Section 11(a) of the Child Nutrition Act of 1966 (42 U.S.C. 
1780(a)) is amended by striking ``neither the Secretary nor the State 
shall'' and inserting ``the Secretary shall not''.

SEC. 3227. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

    Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784) is 
amended--
            (1) in paragraph (1), by striking ``the Trust Territory of 
        the Pacific Islands'' and inserting ``the Commonwealth of the 
        Northern Mariana Islands''; and
            (2) in the first sentence of paragraph (3)--
                    (A) in subparagraph (A), by inserting ``and'' at 
                the end; and
                    (B) by striking ``, and (C)'' and all that follows 
                through ``Governor of Puerto Rico''.

SEC. 3228. ACCOUNTS AND RECORDS.

    The second sentence of section 16(a) of the Child Nutrition Act of 
1966 (42 U.S.C. 1785(a)) is amended by striking ``at all times be 
available'' and inserting ``be available at any reasonable time''.

SEC. 3229. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, 
              AND CHILDREN.

    (a) Definitions.--Section 17(b) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(b)) is amended--
            (1) in paragraph (15)(B)(iii), by inserting ``of not more 
        than 365 days'' after ``accommodation''; and
            (2) in paragraph (16)--
                    (A) in subparagraph (A), by adding ``and'' at the 
                end; and
                    (B) in subparagraph (B), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (C).
    (b) Secretary's Promotion of WIC.--Section 17(c) of the Act is 
amended by striking paragraph (5).
    (c) Eligible Participants.--Section 17(d) of the Act is amended by 
striking paragraph (4).
    (d) Nutrition Education and Drug Abuse Education.--Section 17(e) of 
the Act is amended--
            (1) in the first sentence of paragraph (1), by striking 
        ``shall ensure'' and all that follows through ``is provided'' 
        and inserting ``shall provide nutrition education and may 
        provide drug abuse education'';
            (2) in paragraph (2), by striking the third sentence;
            (3) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``shall'';
                    (B) by striking subparagraph (A);
                    (C) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively;
                    (D) in subparagraphs (A) and (B) (as redesignated), 
                by inserting ``shall'' before ``provide'' each place it 
                appears;
                    (E) in subparagraph (A) (as redesignated), by 
                striking ``and'' at the end;
                    (F) in subparagraph (B) (as redesignated), by 
                striking the period and inserting ``; and''; and
                    (G) by adding at the end the following:
            ``(C) may provide a local agency with materials describing 
        other programs for which participants in the program may be 
        eligible.'';
            (4) in paragraph (5), by striking ``The State'' and all 
        that follows through ``local agency shall'' and inserting 
        ``Each local agency shall''; and
            (5) by striking paragraph (6).
    (e) State Plan.--Section 17(f) of the Act is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``annually to the 
                        Secretary, by a date specified by the 
                        Secretary, a'' and inserting ``to the 
                        Secretary, by a date specified by the 
                        Secretary, an initial''; and
                            (ii) by adding at the end the following: 
                        ``After submitting the initial plan, a State 
                        shall only be required to submit to the 
                        Secretary for approval a substantive change in 
                        the plan.'';
                    (B) in subparagraph (C)--
                            (i) by striking clause (iii) and inserting 
                        the following:
            ``(iii) a plan to coordinate operations under the program 
        with other services or programs that may benefit participants 
        in, and applicants for, the program;'';
                            (ii) in clause (vi), by inserting after 
                        ``in the State'' the following: ``(including a 
                        plan to improve access to the program for 
                        participants and prospective applicants who are 
                        employed, or who reside in rural areas)'';
                            (iii) in clause (vii), by striking ``to 
                        provide program benefits'' and all that follows 
                        through ``emphasis on'' and inserting ``for'';
                            (iv) by striking clauses (ix), (x), and 
                        (xii);
                            (v) in clause (xiii), by striking ``may 
                        require'' and inserting ``may reasonably 
                        require''; and
                            (vi) by redesignating clauses (xi) and 
                        (xiii), as so amended, as clauses (ix) and (x), 
                        respectively;
                    (C) by striking subparagraph (D); and
                    (D) by redesignating subparagraph (E) as 
                subparagraph (D);
            (2) by striking paragraphs (2), (6), (8), and (22);
            (3) in the second sentence of paragraph (5), by striking 
        ``at all times be available'' and inserting ``be available at 
        any reasonable time'';
            (4) in paragraph (9)(B), by striking the second sentence;
            (5) in the first sentence of paragraph (11), by striking 
        ``, including standards that will ensure sufficient State 
        agency staff'';
            (6) in paragraph (12), by striking the third sentence;
            (7) in paragraph (14), by striking ``shall'' and inserting 
        ``may'';
            (8) in paragraph (17), by striking ``and to accommodate'' 
        and all that follows through ``facilities'';
            (9) in paragraph (19), by striking ``shall'' and inserting 
        ``may''; and
            (10) by redesignating paragraphs (3), (4), (5), (7), (9) 
        through (19), (20), (21), (23), and (24), as so amended, as 
        paragraphs (2), (3), (4), (5), (6) through (16), (17), (18), 
        (19), and (20), respectively.
    (f) Information.--Section 17(g) of the Act is amended--
            (1) in paragraph (5), by striking ``the report required 
        under subsection (d)(4)'' and inserting ``reports on program 
        participant characteristics''; and
            (2) by striking paragraph (6).
    (g) Procurement of Infant Formula.--
            (1) In general.--Section 17(h) of the Act is amended--
                    (A) in paragraph (4)(E), by striking ``and, on'' 
                and all that follows through ``(d)(4)'';
                    (B) in paragraph (8)--
                            (i) by striking subparagraphs (A), (C), and 
                        (M);
                            (ii) in subparagraph (G)--
                                    (I) in clause (i), by striking 
                                ``(i)''; and
                                    (II) by striking clauses (ii) 
                                through (ix);
                            (iii) in subparagraph (I), by striking 
                        ``Secretary--'' and all that follows through 
                        ``(v) may'' and inserting ``Secretary may'';
                            (iv) by redesignating subparagraphs (B) and 
                        (D) through (L) as subparagraphs (A) and (B) 
                        through (J), respectively;
                            (v) in subparagraph (A)(i), as so 
                        redesignated, by striking ``subparagraphs (C), 
                        (D), and (E)(iii), in carrying out subparagraph 
                        (A),'' and inserting ``subparagraphs (B) and 
                        (C)(iii),'';
                            (vi) in subparagraph (B)(i), as so 
                        redesignated, by striking ``subparagraph (B)'' 
                        each place it appears and inserting 
                        ``subparagraph (A)''; and
                            (vii) in subparagraph (C)(iii), as so 
                        redesignated, by striking ``subparagraph (B)'' 
                        and inserting ``subparagraph (A)''; and
                    (C) in paragraph (10)(B)--
                            (i) in clause (i), by striking the 
                        semicolon and inserting ``; and'';
                            (ii) in clause (ii), by striking ``; and'' 
                        and inserting a period; and
                            (iii) by striking clause (iii).
            (2) Application.--The amendments made by paragraph (1) 
        shall not apply to a contract for the procurement of infant 
        formula under section 17(h)(8) of the Act that is in effect on 
        the effective date of this subsection.
    (h) National Advisory Council on Maternal, Infant, and Fetal 
Nutrition.--Section 17(k)(3) of the Act is amended by striking 
``Secretary shall designate'' and inserting ``Council shall elect''.
    (i) Completed Study; Community College Demonstration; Grants for 
Information and Data System.--Section 17 of the Act is amended by 
striking subsections (n), (o), and (p).
    (j) Disqualification of Vendors Who Are Disqualified Under the Food 
Stamp Program.--Section 17 of the Act, as so amended, is further 
amended by adding at the end the following:
    ``(n) Disqualification of Vendors Who Are Disqualified Under the 
Food Stamp Program.--
            ``(1) In general.--The Secretary shall issue regulations 
        providing criteria for the disqualification under this section 
        of an approved vendor that is disqualified from accepting 
        benefits under the food stamp program established under the 
        Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
            ``(2) Terms.--A disqualification under paragraph (1)--
                    ``(A) shall be for the same period as the 
                disqualification from the program referred to in 
                paragraph (1);
                    ``(B) may begin at a later date than the 
                disqualification from the program referred to in 
                paragraph (1); and
                    ``(C) shall not be subject to judicial or 
                administrative review.''.

SEC. 3230. CASH GRANTS FOR NUTRITION EDUCATION.

    Section 18 of the Child Nutrition Act of 1966 (42 U.S.C. 1787) is 
repealed.

SEC. 3231. NUTRITION EDUCATION AND TRAINING.

    (a) Findings.--Section 19 of the Child Nutrition Act of 1966 (42 
U.S.C. 1788) is amended--
            (1) in subsection (a), by striking ``that--'' and all that 
        follows through the period at the end and inserting ``that 
        effective dissemination of scientifically valid information to 
        children participating or eligible to participate in the school 
        lunch and related child nutrition programs should be 
        encouraged.''; and
            (2) in subsection (b), by striking ``encourage'' and all 
        that follows through ``establishing'' and inserting 
        ``establish''.
    (b) Use of Funds.--Section 19(f) of the Act is amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (B); and
                    (B) in subparagraph (A)--
                            (i) by striking ``(A)'';
                            (ii) by striking clauses (ix) through 
                        (xix);
                            (iii) by redesignating clauses (i) through 
                        (viii) and (xx) as subparagraphs (A) through 
                        (H) and (I), respectively;
                            (iv) in subparagraph (I), as so 
                        redesignated, by striking the period at the end 
                        and inserting ``; and''; and
                            (v) by adding at the end the following:
            ``(J) other appropriate related activities, as determined 
        by the State.'';
            (2) by striking paragraphs (2) and (4); and
            (3) by redesignating paragraph (3) as paragraph (2).
    (c) Accounts, Records, and Reports.--The second sentence of section 
19(g)(1) of the Act is amended by striking ``at all times be 
available'' and inserting ``be available at any reasonable time''.
    (d) State Coordinators for Nutrition; State Plan.--Section 19(h) of 
the Act is amended--
            (1) in the second sentence of paragraph (1)--
                    (A) by striking ``as provided in paragraph (2) of 
                this subsection''; and
                    (B) by striking ``as provided in paragraph (3) of 
                this subsection'';
            (2) in paragraph (2), by striking the second and third 
        sentences; and
            (3) by striking paragraph (3).
    (e) Authorization of Appropriations.--Section 19(i) of the Act is 
amended--
            (1) in the first sentence of paragraph (2)(A), by striking 
        ``and each succeeding fiscal year'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (3) by inserting after paragraph (2) the following:
            ``(3) Fiscal years 1997 through 2002.--
                    ``(A) In general.--There are authorized to be 
                appropriated to carry out this section $10,000,000 for 
                each of fiscal years 1997 through 2002.
                    ``(B) Grants.--
                            ``(i) In general.--Grants to each State 
                        from the amounts made available under 
                        subparagraph (A) shall be based on a rate of 50 
                        cents for each child enrolled in schools or 
                        institutions within the State, except that no 
                        State shall receive an amount less than $75,000 
                        per fiscal year.
                            ``(ii) Insufficient funds.--If the amount 
                        made available for any fiscal year is 
                        insufficient to pay the amount to which each 
                        State is entitled under clause (i), the amount 
                        of each grant shall be ratably reduced.''.
    (f) Assessment.--Section 19 of the Act is amended by striking 
subsection (j).
    (g) Effective Date.--The amendments made by subsection (e) shall 
become effective on October 1, 1996.

                  CHAPTER 3--MISCELLANEOUS PROVISIONS

SEC. 3241. COORDINATION OF SCHOOL LUNCH, SCHOOL BREAKFAST, AND SUMMER 
              FOOD SERVICE PROGRAMS.

    (a) Coordination.--
            (1) In general.--The Secretary of Agriculture shall develop 
        proposed changes to the regulations under the school lunch 
        program under the National School Lunch Act, the summer food 
        service program under section 13 of that Act, and the school 
        breakfast program under section 4 of the Child Nutrition Act of 
        1966, for the purpose of simplifying and coordinating those 
        programs into a comprehensive meal program.
            (2) Consultation.--In developing proposed changes to the 
        regulations under paragraph (1), the Secretary of Agriculture 
        shall consult with local, State, and regional administrators of 
        the programs described in such paragraph.
    (b) Report.--Not later than November 1, 1997, the Secretary of 
Agriculture shall submit to the Committee on Agriculture, Nutrition, 
and Forestry of the Senate and the Committee on Economic and 
Educational Opportunities of the House of Representatives a report 
containing the proposed changes developed under subsection (a).

                     Subtitle C--Related Provisions

SEC. 3301. REQUIREMENT THAT DATA RELATING TO THE INCIDENCE OF POVERTY 
              IN THE UNITED STATES BE PUBLISHED AT LEAST EVERY 2 YEARS.

    (a) In General.--The Secretary shall, to the extent feasible, 
produce and publish for each State, county, and local unit of general 
purpose government for which data have been compiled in the then most 
recent census of population under section 141(a) of title 13, United 
States Code, and for each school district, data relating to the 
incidence of poverty. Such data may be produced by means of sampling, 
estimation, or any other method that the Secretary determines will 
produce current, comprehensive, and reliable data.
    (b) Content; Frequency.--Data under this section--
            (1) shall include--
                    (A) for each school district, the number of 
                children age 5 to 17, inclusive, in families below the 
                poverty level; and
                    (B) for each State and county referred to in 
                subsection (a), the number of individuals age 65 or 
                older below the poverty level; and
            (2) shall be published--
                    (A) for each State, county, and local unit of 
                general purpose government referred to in subsection 
                (a), in 1997 and at least every second year thereafter; 
                and
                    (B) for each school district, in 1999 and at least 
                every second year thereafter.
    (c) Authority To Aggregate.--
            (1) In general.--If reliable data could not otherwise be 
        produced, the Secretary may, for purposes of subsection 
        (b)(1)(A), aggregate school districts, but only to the extent 
        necessary to achieve reliability.
            (2) Information relating to use of authority.--Any data 
        produced under this subsection shall be appropriately 
        identified and shall be accompanied by a detailed explanation 
        as to how and why aggregation was used (including the measures 
        taken to minimize any such aggregation).
    (d) Report To Be Submitted Whenever Data Is Not Timely Published.--
If the Secretary is unable to produce and publish the data required 
under this section for any State, county, local unit of general purpose 
government, or school district in any year specified in subsection 
(b)(2), a report shall be submitted by the Secretary to the President 
of the Senate and the Speaker of the House of Representatives, not 
later than 90 days before the start of the following year, enumerating 
each government or school district excluded and giving the reasons for 
the exclusion.
    (e) Criteria Relating to Poverty.--In carrying out this section, 
the Secretary shall use the same criteria relating to poverty as were 
used in the then most recent census of population under section 141(a) 
of title 13, United States Code (subject to such periodic adjustments 
as may be necessary to compensate for inflation and other similar 
factors).
    (f) Consultation.--The Secretary shall consult with the Secretary 
of Education in carrying out the requirements of this section relating 
to school districts.
    (g) Definition.--For the purpose of this section, the term 
``Secretary'' means the Secretary of Health and Human Services.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $1,500,000 for each of fiscal 
years 1997 through 2000.

SEC. 3302. SENSE OF THE CONGRESS.

    It is the sense of the Congress that this title, and the amendments 
made by this title, should not result in an increase in the number of 
children who are hungry, homeless, poor, or medically uninsured.

SEC. 3303. LEGISLATIVE ACCOUNTABILITY.

    In the event that this title, or the amendments made by this title, 
results in an increase in the number of children in the United States 
who are hungry, homeless, poor, or medically uninsured by the end of 
the fiscal year 1997, the Congress--
            (1) shall revisit the provisions of this title, or the 
        amendments made by this title, which caused such increase; and
            (2) shall, as soon as practicable thereafter, pass 
        legislation that stops the continuation of such increase.

                 TITLE IV--COMMITTEE ON WAYS AND MEANS

SEC. 4001. SHORT TITLE.

    This title may be cited as the ``Personal Responsibility and Work 
Opportunity Act of 1996''.

SEC. 4002. TABLE OF CONTENTS.

    The table of contents of this title is as follows:

Sec. 4001. Short title.
Sec. 4002. Table of contents.
  Subtitle A--Block Grants for Temporary Assistance for Needy Families

Sec. 4101. Findings.
Sec. 4102. Reference to Social Security Act.
Sec. 4103. Block grants to States.
Sec. 4104. Services provided by charitable, religious, or private 
                            organizations.
Sec. 4105. Census data on grandparents as primary caregivers for their 
                            grandchildren.
Sec. 4106. Report on data processing.
Sec. 4107. Study on alternative outcomes measures.
Sec. 4108. Conforming amendments to the Social Security Act.
Sec. 4109. Conforming amendments to the Food Stamp Act of 1977 and 
                            related provisions.
Sec. 4110. Conforming amendments to other laws.
Sec. 4111. Development of prototype of counterfeit-resistant social 
                            security card required.
Sec. 4112. Disclosure of receipt of Federal funds.
Sec. 4113. Modifications to the job opportunities for certain low-
                            income individuals program.
Sec. 4114. Secretarial submission of legislative proposal for technical 
                            and conforming amendments.
Sec. 4115. Conforming amendments to medicaid program.
Sec. 4116. Effective date; transition rule.
                Subtitle B--Supplemental Security Income

Sec. 4200. Reference to Social Security Act.
                  Chapter 1--Eligibility Restrictions

Sec. 4201. Denial of SSI benefits for 10 years to individuals found to 
                            have fraudulently misrepresented residence 
                            in order to obtain benefits simultaneously 
                            in 2 or more States.
Sec. 4202. Denial of SSI benefits for fugitive felons and probation and 
                            parole violators.
Sec. 4203. Treatment of prisoners.
Sec. 4204. Effective date of application for benefits.
               Chapter 2--Benefits For Disabled Children

Sec. 4211. Definition and eligibility rules.
Sec. 4212. Eligibility redeterminations and continuing disability 
                            reviews.
Sec. 4213. Additional accountability requirements.
Sec. 4214. Reduction in cash benefits payable to institutionalized 
                            individuals whose medical costs are covered 
                            by private insurance.
Sec. 4215. Regulations.
              Chapter 3--Additional Enforcement Provisions

Sec. 4221. Installment payment of large past-due supplemental security 
                            income benefits.
Sec. 4222. Recovery of supplemental security income overpayments from 
                            social security benefits.
Sec. 4223. Regulations.
               Chapter 4--State Supplementation Programs

Sec. 4225. Repeal of maintenance of effort requirements applicable to 
                            optional State programs for supplementation 
                            of SSI benefits.
   Chapter 5--Studies Regarding Supplemental Security Income Program

Sec. 4231. Annual report on the supplemental security income program.
Sec. 4232. Study of disability determination process.
Sec. 4233. Study by General Accounting Office.
       Chapter 6--National Commission on the Future of Disability

Sec. 4241. Establishment.
Sec. 4242. Duties of the commission.
Sec. 4243. Membership.
Sec. 4244. Staff and support services.
Sec. 4245. Powers of commission.
Sec. 4246. Reports.
Sec. 4247. Termination.
Sec. 4248. Authorization of appropriations.
                       Subtitle C--Child Support

Sec. 4300. Reference to Social Security Act.
     Chapter 1--Eligibility For Services; Distribution of Payments

Sec. 4301. State obligation to provide child support enforcement 
                            services.
Sec. 4302. Distribution of child support collections.
Sec. 4303. Privacy safeguards.
Sec. 4304. Rights to notification of hearings.
                  Chapter 2--Locate And Case Tracking

Sec. 4311. State case registry.
Sec. 4312. Collection and disbursement of support payments.
Sec. 4313. State directory of new hires.
Sec. 4314. Amendments concerning income withholding.
Sec. 4315. Locator information from interstate networks.
Sec. 4316. Expansion of the Federal Parent Locator Service.
Sec. 4317. Collection and use of social security numbers for use in 
                            child support enforcement.
          Chapter 3--Streamlining And Uniformity of Procedures

Sec. 4321. Adoption of uniform State laws.
Sec. 4322. Improvements to full faith and credit for child support 
                            orders.
Sec. 4323. Administrative enforcement in interstate cases.
Sec. 4324. Use of forms in interstate enforcement.
Sec. 4325. State laws providing expedited procedures.
                   Chapter 4--Paternity Establishment

Sec. 4331. State laws concerning paternity establishment.
Sec. 4332. Outreach for voluntary paternity establishment.
Sec. 4333. Cooperation by applicants for and recipients of part A 
                            assistance.
             Chapter 5--Program Administration and Funding

Sec. 4341. Performance-based incentives and penalties.
Sec. 4342. Federal and State reviews and audits.
Sec. 4343. Required reporting procedures.
Sec. 4344. Automated data processing requirements.
Sec. 4345. Technical assistance.
Sec. 4346. Reports and data collection by the Secretary.
Sec. 4347. Child support delinquency penalty.
      Chapter 6--Establishment And Modification of Support Orders

Sec. 4351. Simplified process for review and adjustment of child 
                            support orders.
Sec. 4352. Furnishing consumer reports for certain purposes relating to 
                            child support.
Sec. 4353. Nonliability for financial institutions providing financial 
                            records to State child support enforcement 
                            agencies in child support cases.
                Chapter 7--Enforcement Of Support Orders

Sec. 4361. Internal Revenue Service collection of arrearages.
Sec. 4362. Authority to collect support from Federal employees.
Sec. 4363. Enforcement of child support obligations of members of the 
                            Armed Forces.
Sec. 4364. Voiding of fraudulent transfers.
Sec. 4365. Work requirement for persons owing past-due child support.
Sec. 4366. Definition of support order.
Sec. 4367. Reporting arrearages to credit bureaus.
Sec. 4368. Liens.
Sec. 4369. State law authorizing suspension of licenses.
Sec. 4370. Denial of passports for nonpayment of child support.
Sec. 4371. International support enforcement.
Sec. 4372. Financial institution data matches.
Sec. 4373. Enforcement of orders against paternal or maternal 
                            grandparents in cases of minor parents.
Sec. 4374. Nondischargeability in bankruptcy of certain debts for the 
                            support of a child.
                       Chapter 8--Medical Support

Sec. 4376. Correction to ERISA definition of medical child support 
                            order.
Sec. 4377. Enforcement of orders for health care coverage.
Chapter 9--Enhancing Responsibility and Opportunity for Non-residential 
                                Parents

Sec. 4381. Grants to States for access and visitation programs.
         Chapter 10--Effective Dates and Conforming Amendments

Sec. 4391. Effective dates and conforming amendments.
     Subtitle D--Restricting Welfare and Public Benefits for Aliens

Sec. 4400. Statements of national policy concerning welfare and 
                            immigration.
              Chapter 1--Eligibility For Federal Benefits

Sec. 4401. Aliens who are not qualified aliens ineligible for Federal 
                            public benefits.
Sec. 4402. Limited eligibility of qualified aliens for certain Federal 
                            programs.
Sec. 4403. Five-year limited eligibility of qualified aliens for 
                            Federal means-tested public benefit.
Sec. 4404. Notification and information reporting.
  Chapter 2--Eligibility For State and Local Public Benefits Programs

Sec. 4411. Aliens who are not qualified aliens or nonimmigrants 
                            ineligible for State and local public 
                            benefits.
Sec. 4412. State authority to limit eligibility of qualified aliens for 
                            State public benefits.
       Chapter 3--Attribution Of Income and Affidavits of Support

Sec. 4421. Federal attribution of sponsor's income and resources to 
                            alien.
Sec. 4422. Authority for States to provide for attribution of sponsors 
                            income and resources to the alien with 
                            respect to State programs.
Sec. 4423. Requirements for sponsor's affidavit of support.
                     Chapter 4--General Provisions

Sec. 4431. Definitions.
Sec. 4432. Verification of eligibility for Federal public benefits.
Sec. 4433. Statutory construction.
Sec. 4434. Communication between State and local government agencies 
                            and the Immigration and Naturalization 
                            Service.
Sec. 4435. Qualifying quarters.
     Chapter 5--Conforming Amendments Relating to Assisted Housing

Sec. 4441. Conforming amendments relating to assisted housing.
    Chapter 6--Earned Income Credit Denied to Unauthorized Employees

Sec. 4451. Earned income credit denied to individuals not authorized to 
                            be employed in the United States.
                  Subtitle E--Reform of Public Housing

Sec. 4601. Fraud under means-tested welfare and public assistance 
                            programs.
  Subtitle F--Child Protection Block Grant Programs and Foster Care, 
          Adoption Assistance, and Independent Living Programs

   Chapter 1--Child Protection Block Grant Program and Foster Care, 
  subchapter a--block grants to states for the protection of children
Sec. 4701. Establishment of program.
subchapter b--foster care, adoption assistance, and independent living 
                                programs
Sec. 4711. Conforming subchapter c--miscellaneousle IV.
Sec. 4721. Secretarial submission of legislative proposal for technical 
                            and conforming amendments.
Sec. 4722. Sense of the Congress regarding timely adoption of children.
Sec. 4723. Removal of barriers to interethnic adoption.
Sec. 4724. Effective date; transition rules.
            Chapter 2--Child And Family Services Block Grant

Sec. 4751. Child and family services block grant.
Sec. 4752. Reauthorizations.
Sec. 4753. Repeals.
         Subtitle G--Reductions in Federal Government Positions

Sec. 4801. Reductions.
Sec. 4802. Reductions in Federal bureaucracy.
Sec. 4803. Reducing personnel in Washington, D.C. area.
                       Subtitle H--Miscellaneous

Sec. 4901. Appropriation by State legislatures.
Sec. 4902. Sanctioning for testing positive for controlled substances.
Sec. 4903. Reduction in block grants to States for social services.

  Subtitle A--Block Grants for Temporary Assistance for Needy Families

SEC. 4101. FINDINGS.

    The Congress makes the following findings:
            (1) Marriage is the foundation of a successful society.
            (2) Marriage is an essential institution of a successful 
        society which promotes the interests of children.
            (3) Promotion of responsible fatherhood and motherhood is 
        integral to successful child rearing and the well-being of 
        children.
            (4) In 1992, only 54 percent of single-parent families with 
        children had a child support order established and, of that 54 
        percent, only about one-half received the full amount due. Of 
        the cases enforced through the public child support enforcement 
        system, only 18 percent of the caseload has a collection.
            (5) The number of individuals receiving aid to families 
        with dependent children (in this section referred to as 
        ``AFDC'') has more than tripled since 1965. More than two-
        thirds of these recipients are children. Eighty-nine percent of 
        children receiving AFDC benefits now live in homes in which no 
        father is present.
                    (A)(i) The average monthly number of children 
                receiving AFDC benefits--
                            (I) was 3,300,000 in 1965;
                            (II) was 6,200,000 in 1970;
                            (III) was 7,400,000 in 1980; and
                            (IV) was 9,300,000 in 1992.
                    (ii) While the number of children receiving AFDC 
                benefits increased nearly threefold between 1965 and 
                1992, the total number of children in the United States 
                aged 0 to 18 has declined by 5.5 percent.
                    (B) The Department of Health and Human Services has 
                estimated that 12,000,000 children will receive AFDC 
                benefits within 10 years.
                    (C) The increase in the number of children 
                receiving public assistance is closely related to the 
                increase in births to unmarried women. Between 1970 and 
                1991, the percentage of live births to unmarried women 
                increased nearly threefold, from 10.7 percent to 29.5 
                percent.
            (6) The increase of out-of-wedlock pregnancies and births 
        is well documented as follows:
                    (A) It is estimated that the rate of nonmarital 
                teen pregnancy rose 23 percent from 54 pregnancies per 
                1,000 unmarried teenagers in 1976 to 66.7 pregnancies 
                in 1991. The overall rate of nonmarital pregnancy rose 
                14 percent from 90.8 pregnancies per 1,000 unmarried 
                women in 1980 to 103 in both 1991 and 1992. In 
                contrast, the overall pregnancy rate for married 
                couples decreased 7.3 percent between 1980 and 1991, 
                from 126.9 pregnancies per 1,000 married women in 1980 
                to 117.6 pregnancies in 1991.
                    (B) The total of all out-of-wedlock births between 
                1970 and 1991 has risen from 10.7 percent to 29.5 
                percent and if the current trend continues, 50 percent 
                of all births by the year 2015 will be out-of-wedlock.
            (7) The negative consequences of an out-of-wedlock birth on 
        the mother, the child, the family, and society are well 
        documented as follows:
                    (A) Young women 17 and under who give birth outside 
                of marriage are more likely to go on public assistance 
                and to spend more years on welfare once enrolled. These 
                combined effects of ``younger and longer'' increase 
                total AFDC costs per household by 25 percent to 30 
                percent for 17-year-olds.
                    (B) Children born out-of-wedlock have a 
                substantially higher risk of being born at a very low 
                or moderately low birth weight.
                    (C) Children born out-of-wedlock are more likely to 
                experience low verbal cognitive attainment, as well as 
                more child abuse, and neglect.
                    (D) Children born out-of-wedlock were more likely 
                to have lower cognitive scores, lower educational 
                aspirations, and a greater likelihood of becoming 
                teenage parents themselves.
                    (E) Being born out-of-wedlock significantly reduces 
                the chances of the child growing up to have an intact 
                marriage.
                    (F) Children born out-of-wedlock are 3 times more 
                likely to be on welfare when they grow up.
            (8) Currently 35 percent of children in single-parent homes 
        were born out-of-wedlock, nearly the same percentage as that of 
        children in single-parent homes whose parents are divorced (37 
        percent). While many parents find themselves, through divorce 
        or tragic circumstances beyond their control, facing the 
        difficult task of raising children alone, nevertheless, the 
        negative consequences of raising children in single-parent 
        homes are well documented as follows:
                    (A) Only 9 percent of married-couple families with 
                children under 18 years of age have income below the 
                national poverty level. In contrast, 46 percent of 
                female-headed households with children under 18 years 
                of age are below the national poverty level.
                    (B) Among single-parent families, nearly \1/2\ of 
                the mothers who never married received AFDC while only 
                \1/5\ of divorced mothers received AFDC.
                    (C) Children born into families receiving welfare 
                assistance are 3 times more likely to be on welfare 
                when they reach adulthood than children not born into 
                families receiving welfare.
                    (D) Mothers under 20 years of age are at the 
                greatest risk of bearing low-birth-weight babies.
                    (E) The younger the single parent mother, the less 
                likely she is to finish high school.
                    (F) Young women who have children before finishing 
                high school are more likely to receive welfare 
                assistance for a longer period of time.
                    (G) Between 1985 and 1990, the public cost of 
                births to teenage mothers under the aid to families 
                with dependent children program, the food stamp 
                program, and the medicaid program has been estimated at 
                $120,000,000,000.
                    (H) The absence of a father in the life of a child 
                has a negative effect on school performance and peer 
                adjustment.
                    (I) Children of teenage single parents have lower 
                cognitive scores, lower educational aspirations, and a 
                greater likelihood of becoming teenage parents 
                themselves.
                    (J) Children of single-parent homes are 3 times 
                more likely to fail and repeat a year in grade school 
                than are children from intact 2-parent families.
                    (K) Children from single-parent homes are almost 4 
                times more likely to be expelled or suspended from 
                school.
                    (L) Neighborhoods with larger percentages of youth 
                aged 12 through 20 and areas with higher percentages of 
                single-parent households have higher rates of violent 
                crime.
                    (M) Of those youth held for criminal offenses 
                within the State juvenile justice system, only 29.8 
                percent lived primarily in a home with both parents. In 
                contrast to these incarcerated youth, 73.9 percent of 
                the 62,800,000 children in the Nation's resident 
                population were living with both parents.
            (9) Therefore, in light of this demonstration of the crisis 
        in our Nation, it is the sense of the Congress that prevention 
        of out-of-wedlock pregnancy and reduction in out-of-wedlock 
        birth are very important Government interests and the policy 
        contained in part A of title IV of the Social Security Act (as 
        amended by section 4103(a) of this Act) is intended to address 
        the crisis.

SEC. 4102. REFERENCE TO SOCIAL SECURITY ACT.

    Except as otherwise specifically provided, wherever in this 
subtitle 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.

SEC. 4103. BLOCK GRANTS TO STATES.

    (a) In General.--Part A of title IV (42 U.S.C. 601 et seq.) is 
amended--
            (1) by striking all that precedes section 418 (as added by 
        section 4803(b)(2) of this Act) and inserting the following:

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

``SEC. 401. PURPOSE.

    ``(a) In General.--The purpose of this part is to increase the 
flexibility of States in operating a program designed to--
            ``(1) provide assistance to needy families so that children 
        may be cared for in their own homes or in the homes of 
        relatives;
            ``(2) end the dependence of needy parents on government 
        benefits by promoting job preparation, work, and marriage;
            ``(3) prevent and reduce the incidence of out-of-wedlock 
        pregnancies and establish annual numerical goals for preventing 
        and reducing the incidence of these pregnancies; and
            ``(4) encourage the formation and maintenance of two-parent 
        families.
    ``(b) No Individual Entitlement.--This part shall not be 
interpreted to entitle any individual or family to assistance under any 
State program funded under this part.

``SEC. 402. ELIGIBLE STATES; STATE PLAN.

    ``(a) In General.--As used in this part, the term `eligible State' 
means, with respect to a fiscal year, a State that, during the 2-year 
period immediately preceding the fiscal year, has submitted to the 
Secretary a plan that the Secretary has found includes the following:
            ``(1) Outline of family assistance program.--
                    ``(A) General provisions.--A written document that 
                outlines how the State intends to do the following:
                            ``(i) Conduct a program, designed to serve 
                        all political subdivisions in the State (not 
                        necessarily in a uniform manner), that provides 
                        assistance to needy families with (or 
                        expecting) children and provides parents with 
                        job preparation, work, and support services to 
                        enable them to leave the program and become 
                        self-sufficient.
                            ``(ii) Require a parent or caretaker 
                        receiving assistance under the program to 
                        engage in work (as defined by the State) once 
                        the State determines the parent or caretaker is 
                        ready to engage in work, or once the parent or 
                        caretaker has received assistance under the 
                        program for 24 months (whether or not 
                        consecutive), whichever is earlier.
                            ``(iii) Ensure that parents and caretakers 
                        receiving assistance under the program engage 
                        in work activities in accordance with section 
                        407.
                            ``(iv) Take such reasonable steps as the 
                        State deems necessary to restrict the use and 
                        disclosure of information about individuals and 
                        families receiving assistance under the program 
                        attributable to funds provided by the Federal 
                        Government.
                    ``(B) Special provisions.--
                            ``(i) The document shall indicate whether 
                        the State intends to treat families moving into 
                        the State from another State differently than 
                        other families under the program, and if so, 
                        how the State intends to treat such families 
                        under the program.
                            ``(ii) The document shall indicate whether 
                        the State intends to provide assistance under 
                        the program to individuals who are not citizens 
of the United States, and if so, shall include an overview of such 
assistance.
                            ``(iii) The document shall set forth 
                        objective criteria for the delivery of benefits 
                        and the determination of eligibility and for 
                        fair and equitable treatment, including an 
                        explanation of how the State will provide 
                        opportunities for recipients who have been 
                        adversely affected to be heard in a State 
                        administrative or appeal process.
            ``(2) Certification that the state will operate a child 
        support enforcement program.--A certification by the chief 
        executive officer of the State that, during the fiscal year, 
        the State will operate a child support enforcement program 
        under the State plan approved under part D.
            ``(3) Certification that the state will operate a child 
        protection program.--A certification by the chief executive 
        officer of the State that, during the fiscal year, the State 
        will operate a child protection program under the State plan 
        approved under part B.
            ``(4) Certification of the administration of the program.--
        A certification by the chief executive officer of the State 
        specifying which State agency or agencies will administer and 
        supervise the program referred to in paragraph (1) for the 
        fiscal year, which shall include assurances that local 
        governments and private sector organizations--
                    ``(A) have been consulted regarding the plan and 
                design of welfare services in the State so that 
                services are provided in a manner appropriate to local 
                populations; and
                    ``(B) have had at least 45 days to submit comments 
                on the plan and the design of such services.
            ``(5) Certification that the state will provide indians 
        with equitable access to assistance.--A certification by the 
        chief executive officer of the State that, during the fiscal 
        year, the State will provide each Indian who is a member of an 
        Indian tribe in the State that does not have a tribal family 
        assistance plan approved under section 412 with equitable 
        access to assistance under the State program funded under this 
        part attributable to funds provided by the Federal Government.
    ``(b) Public Availability of State Plan Summary.--The State shall 
make available to the public a summary of any plan submitted by the 
State under this section.

``SEC. 403. GRANTS TO STATES.

    ``(a) Grants.--
            ``(1) Family assistance grant.--
                    ``(A) In general.--Each eligible State shall be 
                entitled to receive from the Secretary, for each of 
                fiscal years 1996, 1997, 1998, 1999, 2000, and 2001 a 
                grant in an amount equal to the State family assistance 
                grant.
                    ``(B) State family assistance grant defined.--As 
                used in this part, the term `State family assistance 
                grant' means the greatest of--
                            ``(i) \1/3\ of the total amount required to 
                        be paid to the State under former section 403 
                        (as in effect on September 30, 1995) for fiscal 
                        years 1992, 1993, and 1994 (other than with 
                        respect to amounts expended by the State for 
                        child care under subsection (g) or (i) of 
                        former section 402 (as so in effect));
                            ``(ii)(I) the total amount required to be 
                        paid to the State under former section 403 for 
                        fiscal year 1994 (other than with respect to 
                        amounts expended by the State for child care 
                        under subsection (g) or (i) of former section 
                        402 (as so in effect)); plus
                            ``(II) an amount equal to 85 percent of the 
                        amount (if any) by which the total amount 
                        required to be paid to the State under former 
section 403(a)(5) for emergency assistance for fiscal year 1995 exceeds 
the total amount required to be paid to the State under former section 
403(a)(5) for fiscal year 1994, if, during fiscal year 1994 or 1995, 
the Secretary approved under former section 402 an amendment to the 
former State plan to allow the provision of emergency assistance in the 
context of family preservation; or
                            ``(iii) \4/3\ of the total amount required 
                        to be paid to the State under former section 
                        403 (as in effect on September 30, 1995) for 
                        the 1st 3 quarters of fiscal year 1995 (other 
                        than with respect to amounts expended by the 
                        State under the State plan approved under part 
                        F (as so in effect) or for child care under 
                        subsection (g) or (i) of former section 402 (as 
                        so in effect)), plus the total amount required 
                        to be paid to the State for fiscal year 1995 
                        under former section 403(l) (as so in effect).
                    ``(C) Total amount required to be paid to the state 
                under former section 403 defined.--As used in this 
                part, the term `total amount required to be paid to the 
                State under former section 403' means, with respect to 
                a fiscal year--
                            ``(i) in the case of a State to which 
                        section 1108 does not apply, the sum of--
                                    ``(I) the Federal share of 
                                maintenance assistance expenditures for 
                                the fiscal year, before reduction 
                                pursuant to subparagraph (B) or (C) of 
                                section 403(b)(2) (as in effect on 
                                September 30, 1995), as reported by the 
                                State on ACF Form 231;
                                    ``(II) the Federal share of 
                                administrative expenditures (including 
                                administrative expenditures for the 
                                development of management information 
                                systems) for the fiscal year, as 
                                reported by the State on ACF Form 231;
                                    ``(III) the Federal share of 
                                emergency assistance expenditures for 
                                the fiscal year, as reported by the 
                                State on ACF Form 231;
                                    ``(IV) the Federal share of 
                                expenditures for the fiscal year with 
                                respect to child care pursuant to 
                                subsections (g) and (i) of former 
                                section 402 (as in effect on September 
                                30, 1995), as reported by the State on 
                                ACF Form 231; and
                                    ``(V) the aggregate amount required 
                                to be paid to the State for the fiscal 
                                year with respect to the State program 
                                operated under part F (as in effect on 
                                September 30, 1995), as determined by 
                                the Secretary, including additional 
                                obligations or reductions in 
                                obligations made after the close of the 
                                fiscal year; and
                            ``(ii) in the case of a State to which 
                        section 1108 applies, the lesser of--
                                    ``(I) the sum described in clause 
                                (i); or
                                    ``(II) the total amount certified 
                                by the Secretary under former section 
                                403 (as in effect during the fiscal 
                                year) with respect to the territory.
                    ``(D) Information to be used in determining 
                amounts.--
                            ``(i) For fiscal years 1992 and 1993.--
                                    ``(I) In determining the amounts 
                                described in subclauses (I) through 
                                (IV) of subparagraph (C)(i) for any 
                                State for each of fiscal years 1992 and 
                                1993, the Secretary shall use 
                                information available as of April 28, 
                                1995.
                                    ``(II) In determining the amount 
                                described in subparagraph (C)(i)(V) for 
                                any State for each of fiscal years 1992 
                                and 1993, the Secretary shall use 
                                information available as of January 6, 
                                1995.
                            ``(ii) For fiscal year 1994.--In 
                        determining the amounts described in 
                        subparagraph (C)(i) for any State for fiscal 
                        year 1994, the Secretary shall use information 
                        available as of April 28, 1995.
                            ``(iii) For fiscal year 1995.--
                                    ``(I) In determining the amount 
                                described in subparagraph (B)(ii)(II) 
                                for any State for fiscal year 1995, the 
                                Secretary shall use the information 
                                which was reported by the States and 
                                estimates made by the States with 
                                respect to emergency assistance 
                                expenditures and was available as of 
                                August 11, 1995.
                                    ``(II) In determining the amounts 
                                described in subclauses (I) through 
                                (III) of subparagraph (C)(i) for any 
                                State for fiscal year 1995, the 
                                Secretary shall use information 
                                available as of October 2, 1995.
                                    ``(III) In determining the amount 
                                described in subparagraph (C)(i)(IV) 
                                for any State for fiscal year 1995, the 
                                Secretary shall use information 
                                available as of February 28, 1996.
                                    ``(IV) In determining the amount 
                                described in subparagraph (C)(i)(V) for 
                                any State for fiscal year 1995, the 
                                Secretary shall use information 
                                available as of October 5, 1995.
                    ``(E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal years 
                1996, 1997, 1998, 1999, 2000, and 2001 such sums as are 
                necessary for grants under this paragraph.
            ``(2) Grant to reward states that reduce out-of-wedlock 
        births.--
                    ``(A) In general.--Each eligible State shall be 
                entitled to receive from the Secretary for fiscal year 
                1998 or any succeeding fiscal year, a grant in an 
                amount equal to the State family assistance grant 
                multiplied by--
                            ``(i) 5 percent if--
                                    ``(I) the illegitimacy ratio of the 
                                State for the fiscal year is at least 1 
                                percentage point lower than the 
                                illegitimacy ratio of the State for 
                                fiscal year 1995; and
                                    ``(II) the rate of induced 
                                pregnancy terminations in the State for 
                                the fiscal year is less than the rate 
                                of induced pregnancy terminations in 
                                the State for fiscal year 1995; or
                            ``(ii) 10 percent if--
                                    ``(I) the illegitimacy ratio of the 
                                State for the fiscal year is at least 2 
                                percentage points lower than the 
                                illegitimacy ratio of the State for 
                                fiscal year 1995; and
                                    ``(II) the rate of induced 
                                pregnancy terminations in the State for 
                                the fiscal year is less than the rate 
                                of induced pregnancy terminations in 
                                the State for fiscal year 1995.
                    ``(B) Illegitimacy ratio.--As used in this 
                paragraph, the term `illegitimacy ratio' means, with 
                respect to a State and a fiscal year--
                            ``(i) the number of out-of-wedlock births 
                        that occurred in the State during the most 
                        recent fiscal year for which such information 
                        is available; divided by
                            ``(ii) the number of births that occurred 
                        in the State during the most recent fiscal year 
                        for which such information is available.
                    ``(C) Disregard of changes in data due to changed 
                reporting methods.--For purposes of subparagraph (A), 
                the Secretary shall disregard--
                            ``(i) any difference between the 
                        illegitimacy ratio of a State for a fiscal year 
                        and the illegitimacy ratio of the State for 
                        fiscal year 1995 which is attributable to a 
                        change in State methods of reporting data used 
                        to calculate the illegitimacy ratio; and
                            ``(ii) any difference between the rate of 
                        induced pregnancy terminations in a State for a 
                        fiscal year and such rate for fiscal year 1995 
                        which is attributable to a change in State 
methods of reporting data used to calculate such rate.
                    ``(D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal year 
                1998 and for each succeeding fiscal year such sums as 
                are necessary for grants under this paragraph.
            ``(3) Supplemental grant for population increases in 
        certain states.--
                    ``(A) In general.--Each qualifying State shall, 
                subject to subparagraph (F), be entitled to receive 
                from the Secretary--
                            ``(i) for fiscal year 1997 a grant in an 
                        amount equal to 2.5 percent of the total amount 
                        required to be paid to the State under former 
                        section 403 (as in effect during fiscal year 
                        1994) for fiscal year 1994; and
                            ``(ii) for each of fiscal years 1998, 1999, 
                        and 2000, a grant in an amount equal to the sum 
                        of--
                                    ``(I) the amount (if any) required 
                                to be paid to the State under this 
                                paragraph for the immediately preceding 
                                fiscal year; and
                                    ``(II) 2.5 percent of the sum of--
                                            ``(aa) the total amount 
                                        required to be paid to the 
                                        State under former section 403 
                                        (as in effect during fiscal 
                                        year 1994) for fiscal year 
                                        1994; and
                                            ``(bb) the amount (if any) 
                                        required to be paid to the 
                                        State under this paragraph for 
                                        the fiscal year preceding the 
                                        fiscal year for which the grant 
                                        is to be made.
                    ``(B) Preservation of grant without increases for 
                states failing to remain qualifying states.--Each State 
                that is not a qualifying State for a fiscal year 
                specified in subparagraph (A)(ii) but was a qualifying 
                State for a prior fiscal year shall, subject to 
                subparagraph (F), be entitled to receive from the 
                Secretary for the specified fiscal year, a grant in an 
                amount equal to the amount required to be paid to the 
                State under this paragraph for the most recent fiscal 
                year for which the State was a qualifying State.
                    ``(C) Qualifying state.--
                            ``(i) In general.--For purposes of this 
                        paragraph, a State is a qualifying State for a 
                        fiscal year if--
                                    ``(I) the level of welfare spending 
                                per poor person by the State for the 
                                immediately preceding fiscal year is 
                                less than the national average level of 
                                State welfare spending per poor person 
                                for such preceding fiscal year; and
                                    ``(II) the population growth rate 
                                of the State (as determined by the 
                                Bureau of the Census) for the most 
                                recent fiscal year for which 
                                information is available exceeds the 
                                average population growth rate for all 
                                States (as so determined) for such most 
                                recent fiscal year.
                            ``(ii) State must qualify in fiscal year 
                        1997.--Notwithstanding clause (i), a State 
                        shall not be a qualifying State for any fiscal 
                        year after 1997 by reason of clause (i) if the 
                        State is not a qualifying State for fiscal year 
                        1997 by reason of clause (i).
                            ``(iii) Certain states deemed qualifying 
                        states.--For purposes of this paragraph, a 
                        State is deemed to be a qualifying State for 
                        fiscal years 1997, 1998, 1999, and 2000 if--
                                    ``(I) the level of welfare spending 
                                per poor person by the State for fiscal 
                                year 1996 is less than 35 percent of 
                                the national average level of State 
                                welfare spending per poor person for 
                                fiscal year 1996; or
                                    ``(II) the population of the State 
                                increased by more than 10 percent from 
                                April 1, 1990 to July 1, 1994, 
                                according to the population estimates 
in publication CB94-204 of the Bureau of the Census.
                    ``(D) Definitions.--As used in this paragraph:
                            ``(i) Level of welfare spending per poor 
                        person.--The term `level of State welfare 
                        spending per poor person' means, with respect 
                        to a State and a fiscal year--
                                    ``(I) the sum of--
                                            ``(aa) the total amount 
                                        required to be paid to the 
                                        State under former section 403 
                                        (as in effect during fiscal 
                                        year 1994) for fiscal year 
                                        1994; and
                                            ``(bb) the amount (if any) 
                                        paid to the State under this 
                                        paragraph for the immediately 
                                        preceding fiscal year; divided 
                                        by
                                    ``(II) the number of individuals, 
                                according to the 1990 decennial census, 
                                who were residents of the State and 
                                whose income was below the poverty 
                                line.
                            ``(ii) National average level of state 
                        welfare spending per poor person.--The term 
                        `national average level of State welfare 
                        spending per poor person' means, with respect 
                        to a fiscal year, an amount equal to--
                                    ``(I) the total amount required to 
                                be paid to the States under former 
                                section 403 (as in effect during fiscal 
                                year 1994) for fiscal year 1994; 
                                divided by
                                    ``(II) the number of individuals, 
                                according to the 1990 decennial census, 
                                who were residents of any State and 
                                whose income was below the poverty 
                                line.
                            ``(iii) State.--The term `State' means each 
                        of the 50 States of the United States and the 
                        District of Columbia.
                    ``(E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal years 
                1997, 1998, 1999, and 2000 such sums as are necessary 
                for grants under this paragraph, in a total amount not 
                to exceed $800,000,000.
                    ``(F) Grants reduced pro rata if insufficient 
                appropriations.--If the amount appropriated pursuant to 
                this paragraph for a fiscal year is less than the total 
                amount of payments otherwise required to be made under 
                this paragraph for the fiscal year, then the amount 
                otherwise payable to any State for the fiscal year 
                under this paragraph shall be reduced by a percentage 
                equal to the amount so appropriated divided by such 
                total amount.
                    ``(G) Budget scoring.--Notwithstanding section 
                257(b)(2) of the Balanced Budget and Emergency Deficit 
                Control Act of 1985, the baseline shall assume that no 
                grant shall be made under this paragraph after fiscal 
                year 2000.
            ``(4) Bonus to reward high performance states.--
                    ``(A) In general.--The Secretary shall make a grant 
                pursuant to this paragraph to each State for each bonus 
                year for which the State is a high performing State.
                    ``(B) Amount of grant.--
                            ``(i) In general.--Subject to clause (ii) 
                        of this subparagraph, the Secretary shall 
                        determine the amount of the grant payable under 
                        this paragraph to a high performing State for a 
                        bonus year, which shall be based on the score 
                        assigned to the State under subparagraph (D)(i) 
                        for the fiscal year that immediately precedes 
                        the bonus year.
                            ``(ii) Limitation.--The amount payable to a 
                        State under this paragraph for a bonus year 
                        shall not exceed 5 percent of the State family 
                        assistance grant.
                    ``(C) Formula for measuring state performance.--Not 
                later than 1 year after the date of the enactment of 
                the Personal Responsibility and Work Opportunity Act of 
                1996, the Secretary, in consultation with the National 
                Governors' Association and the American Public Welfare 
                Association, shall develop a formula for measuring 
                State performance in operating the State program funded 
                under this part so as to achieve the goals set forth in 
                section 401(a).
                    ``(D) Scoring of state performance; setting of 
                performance thresholds.--For each bonus year, the 
                Secretary shall--
                            ``(i) use the formula developed under 
                        subparagraph (C) to assign a score to each 
                        eligible State for the fiscal year that 
                        immediately precedes the bonus year; and
                            ``(ii) prescribe a performance threshold in 
                        such a manner so as to ensure that--
                                    ``(I) the average annual total 
                                amount of grants to be made under this 
                                paragraph for each bonus year equals 
                                $100,000,000; and
                                    ``(II) the total amount of grants 
                                to be made under this paragraph for all 
                                bonus years equals $500,000,000.
                    ``(E) Definitions.--As used in this paragraph:
                            ``(i) Bonus year.--The term `bonus year' 
                        means fiscal years 1999, 2000, 2001, 2002, and 
                        2003.
                            ``(ii) High performing state.--The term 
                        `high performing State' means, with respect a 
                        bonus year, an eligible State whose score 
                        assigned pursuant to subparagraph (D)(i) for 
                        the fiscal year immediately preceding the bonus 
                        year equals or exceeds the performance 
                        threshold prescribed under subparagraph (D)(ii) 
                        for such preceding fiscal year.
                    ``(F) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal years 
                1999 through 2003 $500,000,000 for grants under this 
                paragraph.
            ``(5) Supplemental grant for operation of work program.--
                    ``(A) Application requirements.--An eligible State 
                may submit to the Secretary an application for 
                additional funds to meet the requirements of section 
                407 with respect to a fiscal year if the Secretary 
                determines that--
                            ``(i) the total expenditures of the State 
                        to meet such requirements for the fiscal year 
                        exceed the total expenditures of the State 
                        during fiscal year 1994 to carry out part F (as 
                        in effect on September 30, 1994);
                            ``(ii) the work programs of the State under 
                        this section are coordinated with the job 
                        training programs established by title II of 
                        the Job Training Partnership Act, or (if such 
                        title is repealed by an Act that becomes law 
                        during the 104th Congress) the Act that repeals 
                        such title; and
                            ``(iii) the State needs additional funds to 
                        meet such requirements or certifies that it 
                        intends to exceed such requirements.
                    ``(B) Grants.--The Secretary may make a grant to 
                any eligible State which submits an application in 
                accordance with subparagraph (A) for a fiscal year in 
                an amount equal to the Federal medical assistance 
                percentage of the amount (if any) by which the total 
                expenditures of the State to meet or exceed the 
                requirements of section 407 for the fiscal year exceeds 
                the total expenditures of the State during fiscal year 
                1994 to carry out part F (as in effect on September 30, 
                1994).
                    ``(C) Regulations.--The Secretary shall issue 
                regulations providing for the equitable distribution of 
                funds under this paragraph.
                    ``(D) Authorization of appropriations.--
                            ``(i) In general.--There are authorized to 
                        be appropriated for grants under this paragraph 
                        $3,000,000,000 for fiscal year 1999.
                            ``(ii) Availability.--Amounts appropriated 
                        pursuant to clause (i) are authorized to remain 
                        available until expended.
    ``(b) Contingency Fund.--
            ``(1) Establishment.--There is hereby established in the 
        Treasury of the United States a fund which shall be known as 
        the `Contingency Fund for State Welfare Programs' (in this 
        section referred to as the `Fund').
            ``(2) Deposits into fund.--Out of any money in the Treasury 
        of the United States not otherwise appropriated, there are 
        appropriated for fiscal years 1997, 1998, 1999, 2000, and 2001 
        such sums as are necessary for payment to the Fund in a total 
        amount not to exceed $2,000,000,000.
            ``(3) Grants.--
                    ``(A) Provisional payments.--If an eligible State 
                submits to the Secretary a request for funds under this 
                paragraph during an eligible month, the Secretary 
                shall, subject to this paragraph, pay to the State, 
                from amounts appropriated pursuant to paragraph (2), an 
                amount equal to the amount of funds so requested.
                    ``(B) Payment priority.--The Secretary shall make 
                payments under subparagraph (A) in the order in which 
                the Secretary receives requests for such payments.
                    ``(C) Limitations.--
                            ``(i) Monthly payment to a state.--The 
                        total amount paid to a single State under 
                        subparagraph (A) during a month shall not 
                        exceed \1/12\ of 20 percent of the State family 
                        assistance grant.
                            ``(ii) Payments to all states.--The total 
                        amount paid to all States under subparagraph 
                        (A) during fiscal years 1997 through 2001 shall 
                        not exceed the total amount appropriated 
                        pursuant to paragraph (2).
            ``(4) Annual reconciliation.--Notwithstanding paragraph 
        (3), at the end of each fiscal year, each State shall remit to 
        the Secretary an amount equal to the amount (if any) by which 
        the total amount paid to the State under paragraph (3) during 
        the fiscal year exceeds--
                    ``(A) the Federal medical assistance percentage for 
                the State for the fiscal year (as defined in section 
                1905(b), as in effect on September 30, 1995) of the 
                amount (if any) by which the expenditures under the 
                State program funded under this part for the fiscal 
                year exceed historic State expenditures (as defined in 
                section 409(a)(7)(B)(iii)); multiplied by
                    ``(B) \1/12\ times the number of months during the 
                fiscal year for which the Secretary makes a payment to 
                the State under this subsection.
            ``(5) Eligible month.--As used in paragraph (3)(A), the 
        term `eligible month' means, with respect to a State, a month 
        in the 2-month period that begins with any month for which the 
        State is a needy State.
            ``(6) Needy state.--For purposes of paragraph (5), a State 
        is a needy State for a month if--
                    ``(A) the average rate of--
                            ``(i) total unemployment in such State 
                        (seasonally adjusted) for the period consisting 
                        of the most recent 3 months for which data for 
                        all States are published equals or exceeds 6.5 
                        percent; and
                            ``(ii) total unemployment in such State 
                        (seasonally adjusted) for the 3-month period 
                        equals or exceeds 110 percent of such average 
                        rate for either (or both) of the corresponding 
                        3-month periods ending in the 2 preceding 
                        calendar years; or
                    ``(B) as determined by the Secretary of Agriculture 
                (in the discretion of the Secretary of Agriculture), 
                the monthly average number of individuals (as of the 
last day of each month) participating in the food stamp program in the 
State in the then most recently concluded 3-month period for which data 
are available exceeds by not less than 10 percent the lesser of--
                            ``(i) the monthly average number of 
                        individuals (as of the last day of each month) 
                        in the State that would have participated in 
                        the food stamp program in the corresponding 3-
                        month period in fiscal year 1994 if the 
                        amendments made by subtitles D and J of the 
                        Personal Responsibility and Work Opportunity 
                        Act of 1996 had been in effect throughout 
                        fiscal year 1994; or
                            ``(ii) the monthly average number of 
                        individuals (as of the last day of each month) 
                        in the State that would have participated in 
                        the food stamp program in the corresponding 3-
                        month period in fiscal year 1995 if the 
                        amendments made by subtitles D and J of the 
                        Personal Responsibility and Work Opportunity 
                        Act of 1996 had been in effect throughout 
                        fiscal year 1995.
            ``(7) Other terms defined.--As used in this subsection:
                    ``(A) State.--The term `State' means each of the 50 
                States of the United States and the District of 
                Columbia.
                    ``(B) Secretary.--The term `Secretary' means the 
                Secretary of the Treasury.
            ``(8) Annual reports.--The Secretary shall annually report 
        to the Congress on the status of the Fund.
            ``(9) Budget scoring.--Notwithstanding section 257(b)(2) of 
        the Balanced Budget and Emergency Deficit Control Act of 1985, 
        the baseline shall assume that no grant shall be made under 
        this subsection after fiscal year 2001.

``SEC. 404. USE OF GRANTS.

    ``(a) General Rules.--Subject to this part, a State to which a 
grant is made under section 403 may use the grant--
            ``(1) in any manner that is reasonably calculated to 
        accomplish the purpose of this part, including to provide low 
        income households with assistance in meeting home heating and 
        cooling costs; or
            ``(2) in any manner that the State was authorized to use 
        amounts received under part A or F, as such parts were in 
        effect on September 30, 1995.
    ``(b) Limitation on Use of Grant for Administrative Purposes.--
            ``(1) Limitation.--A State to which a grant is made under 
        section 403 shall not expend more than 15 percent of the grant 
        for administrative purposes.
            ``(2) Exception.--Paragraph (1) shall not apply to the use 
        of a grant for information technology and computerization 
        needed for tracking or monitoring required by or under this 
        part.
    ``(c) Authority to Treat Interstate Immigrants Under Rules of 
Former State.--A State operating a program funded under this part may 
apply to a family the rules (including benefit amounts) of the program 
funded under this part of another State if the family has moved to the 
State from the other State and has resided in the State for less than 
12 months.
    ``(d) Authority to Use Portion of Grant for Other Purposes.--
            ``(1) In general.--A State may use not more than 30 percent 
        of the amount of the grant made to the State under section 403 
        for a fiscal year to carry out a State program pursuant to any 
        or all of the following provisions of law:
                    ``(A) Part B or E of this title.
                    ``(B) Title XX of this Act.
                    ``(C) The Child Care and Development Block Grant 
                Act of 1990.
            ``(2) Limitation on amount transferable to title xx 
        programs.--Notwithstanding paragraph (1), not more than \1/3\ 
        of the total amount paid to a State under this part for a 
        fiscal year that is used to carry out State programs pursuant 
        to provisions of law specified in paragraph (1) may be used to 
        carry out State programs pursuant to title XX.
            ``(3) Applicable rules.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) of this paragraph, any amount paid to 
                a State under this part that is used to carry out a 
                State program pursuant to a provision of law specified 
                in paragraph (1) shall not be subject to the 
                requirements of this part, but shall be subject to the 
                requirements that apply to Federal funds provided 
                directly under the provision of law to carry out the 
                program.
                    ``(B) Exception relating to title xx programs.--All 
                amounts paid to a State under this part that are used 
                to carry out State programs pursuant to title XX shall 
                be used only for programs and services to children or 
                their families.
    ``(e) Authority to Reserve Certain Amounts for Assistance.--A State 
may reserve amounts paid to the State under this part for any fiscal 
year for the purpose of providing, without fiscal year limitation, 
assistance under the State program funded under this part.
    ``(f) Authority to Operate Employment Placement Program.--A State 
to which a grant is made under section 403 may use the grant to make 
payments (or provide job placement vouchers) to State-approved public 
and private job placement agencies that provide employment placement 
services to individuals who receive assistance under the State program 
funded under this part.
    ``(g) Implementation of Electronic Benefit Transfer System.--A 
State to which a grant is made under section 403 is encouraged to 
implement an electronic benefit transfer system for providing 
assistance under the State program funded under this part, and may use 
the grant for such purpose.

``SEC. 405. ADMINISTRATIVE PROVISIONS.

    ``(a) Quarterly.--The Secretary shall pay each grant payable to a 
State under section 403 in quarterly installments.
    ``(b) Notification.--Not later than 3 months before the payment of 
any such quarterly installment to a State, the Secretary shall notify 
the State of the amount of any reduction determined under section 
412(a)(1)(B) with respect to the State.
    ``(c) Computation and Certification of Payments to States.--
            ``(1) Computation.--The Secretary shall estimate the amount 
        to be paid to each eligible State for each quarter under this 
        part, such estimate to be based on a report filed by the State 
        containing an estimate by the State of the total sum to be 
        expended by the State in the quarter under the State program 
        funded under this part and such other information as the 
        Secretary may find necessary.
            ``(2) Certification.--The Secretary of Health and Human 
        Services shall certify to the Secretary of the Treasury the 
        amount estimated under paragraph (1) with respect to a State, 
        reduced or increased to the extent of any overpayment or 
        underpayment which the Secretary of Health and Human Services 
        determines was made under this part to the State for any prior 
        quarter and with respect to which adjustment has not been made 
        under this paragraph.
    ``(d) Payment Method.--Upon receipt of a certification under 
subsection (c)(2) with respect to a State, the Secretary of the 
Treasury shall, through the Fiscal Service of the Department of the 
Treasury and before audit or settlement by the General Accounting 
Office, pay to the State, at the time or times fixed by the Secretary 
of Health and Human Services, the amount so certified.
    ``(e) Collection of State Overpayments to Families From Federal Tax 
Refunds.--
            ``(1) In general.--Upon receiving notice from the Secretary 
        of Health and Human Services that a State agency administering 
        a program funded under this part has notified the Secretary 
        that a named individual has been overpaid under the State 
        program funded under this part, the Secretary of the Treasury 
        shall determine whether any amounts as refunds of Federal taxes 
        paid are payable to such individual, regardless of whether the 
        individual filed a tax return as a married or unmarried 
        individual. If the Secretary of the Treasury finds that any 
        such amount is so payable, the Secretary shall withhold from 
        such refunds an amount equal to the overpayment sought to be 
        collected by the State and pay such amount to the State agency.
            ``(2) Regulations.--The Secretary of the Treasury shall 
        issue regulations, after review by the Secretary of Health and 
        Human services, that provide--
                    ``(A) that a State may only submit under paragraph 
                (1) requests for collection of overpayments with 
                respect to individuals--
                            ``(i) who are no longer receiving 
                        assistance under the State program funded under 
                        this part;
                            ``(ii) with respect to whom the State has 
                        already taken appropriate action under State 
                        law against the income or resources of the 
                        individuals or families involved to collect the 
                        past-due legally enforceable debt; and
                            ``(iii) to whom the State agency has given 
                        notice of its intent to request withholding by 
                        the Secretary of the Treasury from the income 
                        tax refunds of such individuals;
                    ``(B) that the Secretary of the Treasury will give 
                a timely and appropriate notice to any other person 
                filing a joint return with the individual whose refund 
                is subject to withholding under paragraph (1); and
                    ``(C) the procedures that the State and the 
                Secretary of the Treasury will follow in carrying out 
                this subsection which, to the maximum extent feasible 
                and consistent with the provisions of this subsection, 
                will be the same as those issued pursuant to section 
                464(b) applicable to collection of past-due child 
                support.

``SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.

    ``(a) Loan Authority.--
            ``(1) In general.--The Secretary shall make loans to any 
        loan-eligible State, for a period to maturity of not more than 
        3 years.
            ``(2) Loan-eligible state.--As used in paragraph (1), the 
        term `loan-eligible State' means a State against which a 
        penalty has not been imposed under section 409(a)(1).
    ``(b) Rate of Interest.--The Secretary shall charge and collect 
interest on any loan made under this section at a rate equal to the 
current average market yield on outstanding marketable obligations of 
the United States with remaining periods to maturity comparable to the 
period to maturity of the loan.
    ``(c) Use of Loan.--A State shall use a loan made to the State 
under this section only for any purpose for which grant amounts 
received by the State under section 403(a) may be used, including--
            ``(1) welfare anti-fraud activities; and
            ``(2) the provision of assistance under the State program 
        to Indian families that have moved from the service area of an 
        Indian tribe with a tribal family assistance plan approved 
        under section 412.
    ``(d) Limitation on Total Amount of Loans to a State.--The 
cumulative dollar amount of all loans made to a State under this 
section during fiscal years 1997 through 2001 shall not exceed 10 
percent of the State family assistance grant.
    ``(e) Limitation on Total Amount of Outstanding Loans.--The total 
dollar amount of loans outstanding under this section may not exceed 
$1,700,000,000.
    ``(f) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there are appropriated such 
sums as may be necessary for the cost of loans under this section.

``SEC. 407. MANDATORY WORK REQUIREMENTS.

    ``(a) Participation Rate Requirements.--
            ``(1) All families.--A State to which a grant is made under 
        section 403 for a fiscal year shall achieve the minimum 
participation rate specified in the following table for the fiscal year 
with respect to all families receiving assistance under the State 
program funded under this part:

                    
                                                            The minimum
                    
                                                          participation
                ``If the fiscal year is:
                                                               rate is:
                        1997.........................             25   
                        1998.........................             30   
                        1999.........................             35   
                        2000.........................             40   
                        2001.........................             45   
                        2002 or thereafter...........             50.  

            ``(2) 2-parent families.--A State to which a grant is made 
        under section 403 for a fiscal year shall achieve the minimum 
        participation rate specified in the following table for the 
        fiscal year with respect to 2-parent families receiving 
        assistance under the State program funded under this part:

                    
                                                            The minimum
                    
                                                          participation
                ``If the fiscal year is:
                                                               rate is:
                        1996.........................             50   
                        1997.........................             75   
                        1998.........................             75   
                        1999 or thereafter...........             90.  

    ``(b) Calculation of Participation Rates.--
            ``(1) All families.--
                    ``(A) Average monthly rate.--For purposes of 
                subsection (a)(1), the participation rate for all 
                families of a State for a fiscal year is the average of 
                the participation rates for all families of the State 
                for each month in the fiscal year.
                    ``(B) Monthly participation rates.--The 
                participation rate of a State for all families of the 
                State for a month, expressed as a percentage, is--
                            ``(i) the number of families receiving 
                        assistance under the State program funded under 
                        this part that include an adult who is engaged 
                        in work for the month; divided by
                            ``(ii) the amount by which--
                                    ``(I) the number of families 
                                receiving such assistance during the 
                                month that include an adult receiving 
                                such assistance; exceeds
                                    ``(II) the number of families 
                                receiving such assistance that are 
                                subject in such month to a penalty 
                                described in subsection (e)(1) but have 
                                not been subject to such penalty for 
                                more than 3 months within the preceding 
                                12-month period (whether or not 
                                consecutive).
            ``(2) 2-parent families.--
                    ``(A) Average monthly rate.--For purposes of 
                subsection (a)(2), the participation rate for 2-parent 
                families of a State for a fiscal year is the average of 
                the participation rates for 2-parent families of the 
                State for each month in the fiscal year.
                    ``(B) Monthly participation rates.--The 
                participation rate of a State for 2-parent families of 
                the State for a month shall be calculated by use of the 
                formula set forth in paragraph (1)(B), except that in 
                the formula the term `number of 2-parent families' 
                shall be substituted for the term `number of families' 
                each place such latter term appears.
            ``(3) Pro rata reduction of participation rate due to 
        caseload reductions not required by federal law.--
                    ``(A) In general.--The Secretary shall prescribe 
                regulations for reducing the minimum participation rate 
                otherwise required by this section for a fiscal year by 
                the number of percentage points equal to the number of 
                percentage points (if any) by which--
                            ``(i) the average monthly number of 
                        families receiving assistance during the fiscal 
                        year under the State program funded under this 
                        part is less than
                            ``(ii) the average monthly number of 
                        families that received aid under the State plan 
                        approved under part A (as in effect on 
                        September 30, 1995) during fiscal year 1995.
                The minimum participation rate shall not be reduced to 
                the extent that the Secretary determines that the 
                reduction in the number of families receiving such 
                assistance is required by Federal law.
                    ``(B) Eligibility changes not counted.--The 
                regulations described in subparagraph (A) shall not 
                take into account families that are diverted from a 
                State program funded under this part as a result of 
                differences in eligibility criteria under a State 
                program funded under this part and eligibility criteria 
                under the State program operated under the State plan 
                approved under part A (as such plan and such part were 
                in effect on September 30, 1995). Such regulations 
shall place the burden on the Secretary to prove that such families 
were diverted as a direct result of differences in such eligibility 
criteria.
            ``(4) State option to include individuals receiving 
        assistance under a tribal family assistance plan.--For purposes 
        of paragraphs (1)(B) and (2)(B), a State may, at its option, 
        include families receiving assistance under a tribal family 
        assistance plan approved under section 412.
            ``(5) State option for participation requirement 
        exemptions.--For any fiscal year, a State may, at its option, 
        not require an individual who is a single custodial parent 
        caring for a child who has not attained 12 months of age to 
        engage in work and may disregard such an individual in 
        determining the participation rates under subsection (a).
    ``(c) Engaged in Work.--
            ``(1) All families.--For purposes of subsection 
        (b)(1)(B)(i), a recipient is engaged in work for a month in a 
        fiscal year if the recipient is participating in work 
        activities for at least the minimum average number of hours per 
        week specified in the following table during the month, not 
        fewer than 20 hours per week of which are attributable to an 
        activity described in paragraph (1), (2), (3), (4), (5), (6), 
        (7), or (8) of subsection (d):

                   
                                                            The minimum
                  ``If the month is
                                                      average number of
                    in fiscal year:
                                                     hours per week is:
                          1996.......................             20   
                          1997.......................             20   
                          1998.......................             20   
                          1999.......................             25   
                          2000 or thereafter.........             30.  

            ``(2) 2-parent families.--For purposes of subsection 
        (b)(2)(B)(i), an adult is engaged in work for a month in a 
        fiscal year if the adult is making progress in work activities 
        for at least 35 hours per week during the month, not fewer than 
        30 hours per week of which are attributable to an activity 
        described in paragraph (1), (2), (3), (4), (5), (6), (7), or 
        (8) of subsection (d).
            ``(3) Limitation on number of weeks for which job search 
        counts as work.--Notwithstanding paragraphs (1) and (2), an 
        individual shall not be considered to be engaged in work by 
        virtue of participation in an activity described in subsection 
        (d)(6), after the individual has participated in such an 
        activity for 8 weeks in a fiscal year, or if the participation 
        is for a week that is in a fiscal year and that immediately 
        follows 4 consecutive weeks of such participation in the fiscal 
        year. An individual shall be considered to be participating in 
        such an activity for a week if the individual participates in 
        such an activity at any time during the week.
            ``(4) Limitation on vocational education activities counted 
        as work.--For purposes of determining monthly participation 
        rates under paragraphs (1)(B)(i) and (2)(B)(i) of subsection 
        (b), not more than 20 percent of adults in all families and in 
        2-parent families determined to be engaged in work in the State 
        for a month may meet the work activity requirement through 
        participation in vocational educational training.
            ``(5) Single parent with child under age 6 deemed to be 
        meeting work participation requirements if parent is engaged in 
        work for 20 hours per week.--For purposes of determining 
        monthly participation rates under subsection (b)(1)(B)(i), a 
        recipient in a 1-parent family who is the parent of a child who 
        has not attained 6 years of age is deemed to be engaged in work 
for a month if the recipient is engaged in work for an average of at 
least 20 hours per week during the month.
            ``(6) Teen head of household who maintains satisfactory 
        school attendance deemed to be meeting work participation 
        requirements.--For purposes of determining monthly 
        participation rates under subsection (b)(1)(B)(i), a recipient 
        who is a single head of household and has not attained 20 years 
        of age is deemed to be engaged in work for a month in a fiscal 
        year if the recipient--
                    ``(A) maintains satisfactory attendance at 
                secondary school or the equivalent during the month; or
                    ``(B) participates in education directly related to 
                employment for at least the minimum average number of 
                hours per week specified in the table set forth in 
                paragraph (1).
    ``(d) Work Activities Defined.--As used in this section, the term 
`work activities' means--
            ``(1) unsubsidized employment;
            ``(2) subsidized private sector employment;
            ``(3) subsidized public sector employment;
            ``(4) work experience (including work associated with the 
        refurbishing of publicly assisted housing) if sufficient 
        private sector employment is not available;
            ``(5) on-the-job training;
            ``(6) job search and job readiness assistance;
            ``(7) community service programs;
            ``(8) vocational educational training (not to exceed 12 
        months with respect to any individual);
            ``(9) job skills training directly related to employment;
            ``(10) education directly related to employment, in the 
        case of a recipient who has not received a high school diploma 
        or a certificate of high school equivalency; and
            ``(11) satisfactory attendance at secondary school, in the 
        case of a recipient who has not completed secondary school.
    ``(e) Penalties Against Individuals.--
            ``(1) In general.--Except as provided in paragraph (2), if 
        an adult in a family receiving assistance under the State 
        program funded under this part refuses to engage in work 
        required in accordance with this section, the State shall--
                    ``(A) reduce the amount of assistance otherwise 
                payable to the family pro rata (or more, at the option 
                of the State) with respect to any period during a month 
                in which the adult so refuses; or
                    ``(B) terminate such assistance,
        subject to such good cause and other exceptions as the State 
        may establish.
            ``(2) Exception.--Notwithstanding paragraph (1), a State 
        may not reduce or terminate assistance under the State program 
        funded under this part based on a refusal of an adult to work 
        if the adult is a single custodial parent caring for a child 
        who has not attained 11 years of age, and the adult proves that 
        the adult has a demonstrated inability (as determined by the 
        State) to obtain needed child care, for 1 or more of the 
        following reasons:
                    ``(A) Unavailability of appropriate child care 
                within a reasonable distance from the individual's home 
                or work site.
                    ``(B) Unavailability or unsuitability of informal 
                child care by a relative or under other arrangements.
                    ``(C) Unavailability of appropriate and affordable 
                formal child care arrangements.
    ``(f) Nondisplacement in Work Activities.--
            ``(1) In general.--Subject to paragraph (2), an adult in a 
        family receiving assistance under a State program funded under 
        this part attributable to funds provided by the Federal 
        Government may fill a vacant employment position in order to 
        engage in a work activity described in subsection (d).
            ``(2) No filling of certain vacancies.--No adult in a work 
        activity described in subsection (d) which is funded, in whole 
        or in part, by funds provided by the Federal Government shall 
        be employed or assigned--
                    ``(A) when any other individual is on layoff from 
                the same or any substantially equivalent job; or
                    ``(B) if the employer has terminated the employment 
                of any regular employee or otherwise caused an 
                involuntary reduction of its workforce in order to 
fill the vacancy so created with an adult described in paragraph (1).
            ``(3) No preemption.--Nothing in this subsection shall 
        preempt or supersede any provision of State or local law that 
        provides greater protection for employees from displacement.
    ``(g) Sense of the Congress.--It is the sense of the Congress that 
in complying with this section, each State that operates a program 
funded under this part is encouraged to assign the highest priority to 
requiring adults in 2-parent families and adults in single-parent 
families that include older preschool or school-age children to be 
engaged in work activities.
    ``(h) Sense of the Congress That States Should Impose Certain 
Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the 
sense of the Congress that the States should require noncustodial, 
nonsupporting parents who have not attained 18 years of age to fulfill 
community work obligations and attend appropriate parenting or money 
management classes after school.
    ``(i) Review of Implementation of State Work Programs.--During 
fiscal year 1999, the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate shall hold 
hearings and engage in other appropriate activities to review the 
implementation of this section by the States, and shall invite the 
Governors of the States to testify before them regarding such 
implementation. Based on such hearings, such Committees may introduce 
such legislation as may be appropriate to remedy any problems with the 
State programs operated pursuant to this section.

``SEC. 408. PROHIBITIONS; REQUIREMENTS.

    ``(a) In General.--
            ``(1) No assistance for families without a minor child.--A 
        State to which a grant is made under section 403 shall not use 
        any part of the grant to provide assistance to a family, unless 
        the family includes--
                    ``(A) a minor child who resides with a custodial 
                parent or other adult caretaker relative of the child; 
                or
                    ``(B) a pregnant individual.
            ``(2) No additional cash assistance for children born to 
        families receiving assistance.--
                    ``(A) General rule.--A State to which a grant is 
                made under section 403 shall not use any part of the 
                grant to provide cash benefits for a minor child who is 
                born to--
                            ``(i) a recipient of assistance under the 
                        program operated under this part; or
                            ``(ii) a person who received such 
                        assistance at any time during the 10-month 
                        period ending with the birth of the child.
                    ``(B) Exception for children born into families 
                with no other children.--Subparagraph (A) shall not 
                apply to a minor child who is born into a family that 
                does not include any other children.
                    ``(C) Exception for vouchers.--Subparagraph (A) 
                shall not apply to vouchers which are provided in lieu 
                of cash benefits and which may be used only to pay for 
                particular goods and services specified by the State as 
                suitable for the care of the child involved.
                    ``(D) Exception for rape or incest.--Subparagraph 
                (A) shall not apply with respect to a child who is born 
                as a result of rape or incest.
                    ``(E) State election to opt out.--Subparagraph (A) 
                shall not apply to a State if State law specifically 
                exempts the State program funded under this part from 
                the application of subparagraph (A).
                    ``(F) Substitution of family caps in effect under 
                waivers.--Subparagraph (A) shall not apply to a State--
                            ``(i) if, as of the date of the enactment 
                        of this part, there is in effect a waiver 
                        approved by the Secretary under section 1115 
                        which permits the State to deny aid under the 
                        State plan approved under part A of this title 
                        (as in effect without regard to the amendments 
                        made by subtitle A of the Personal 
                        Responsibility and Work Opportunity Act of 
                        1996) to a family by reason of the birth of a 
                        child to a family member otherwise eligible for 
                        such aid; and
                            ``(ii) for so long as the State continues 
                        to implement such policy under the State 
                        program funded under this part, under rules 
                        prescribed by the State.
            ``(3) Reduction or elimination of assistance for 
        noncooperation in establishing paternity or obtaining child 
        support.--If the agency responsible for administering the State 
        plan approved under part D determines that an individual is not 
        cooperating with the State in establishing paternity or in 
        establishing, modifying, or enforcing a support order with 
        respect to a child of the individual, and the individual does 
        not qualify for any good cause or other exception established 
        by the State pursuant to section 454(29), then the State--
                    ``(A) shall deduct from the assistance that would 
                otherwise be provided to the family of the individual 
                under the State program funded under this part the 
                share of such assistance attributable to the 
                individual; and
                    ``(B) may deny the family any assistance under the 
                State program.
            ``(4) No assistance for families not assigning certain 
        support rights to the state.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 shall require, as a condition of 
                providing assistance to a family under the State 
                program funded under this part, that a member of the 
                family assign to the State any rights the family member 
                may have (on behalf of the family member or of any 
                other person for whom the family member has applied for 
                or is receiving such assistance) to support from any 
                other person, not exceeding the total amount of 
                assistance so provided to the family, which accrue (or 
                have accrued) before the date the family leaves the 
                program, which assignment, on and after the date the 
                family leaves the program, shall not apply with respect 
                to any support (other than support collected pursuant 
                to section 464) which accrued before the family 
                received such assistance and which the State has not 
                collected by--
                            ``(i) September 30, 2000, if the assignment 
                        is executed on or after October 1, 1997, and 
                        before October 1, 2000; or
                            ``(ii) the date the family leaves the 
                        program, if the assignment is executed on or 
                        after October 1, 2000.
                    ``(B) Limitation.--A State to which a grant is made 
                under section 403 shall not require, as a condition of 
                providing assistance to any family under the State 
                program funded under this part, that a member of the 
                family assign to the State any rights to support 
                described in subparagraph (A) which accrue after the 
                date the family leaves the program.
            ``(5) No assistance for teenage parents who do not attend 
        high school or other equivalent training program.--A State to 
        which a grant is made under section 403 shall not use any part 
        of the grant to provide assistance to an individual who has not 
        attained 18 years of age, is not married, has a minor child at 
        least 12 weeks of age in his or her care, and has not 
        successfully completed a high-school education (or its 
        equivalent), if the individual does not participate in--
                    ``(A) educational activities directed toward the 
                attainment of a high school diploma or its equivalent; 
                or
                    ``(B) an alternative educational or training 
                program that has been approved by the State.
            ``(6) No assistance for teenage parents not living in 
        adult-supervised settings.--
                    ``(A) In general.--
                            ``(i) Requirement.--Except as provided in 
                        subparagraph (B), a State to which a grant is 
                        made under section 403 shall not use any part 
                        of the grant to provide assistance to an 
                        individual described in clause (ii) of this 
                        subparagraph if the individual and the minor 
                        child referred to in clause (ii)(II) do not 
                        reside in a place of residence maintained by a 
                        parent, legal guardian, or other adult relative 
of the individual as such parent's, guardian's, or adult relative's own 
home.
                            ``(ii) Individual described.-- For purposes 
                        of clause (i), an individual described in this 
                        clause is an individual who--
                                    ``(I) has not attained 18 years of 
                                age; and
                                    ``(II) is not married, and has a 
                                minor child in his or her care.
                    ``(B) Exception.--
                            ``(i) Provision of, or assistance in 
                        locating, adult-supervised living 
                        arrangement.--In the case of an individual who 
                        is described in clause (ii), the State agency 
                        referred to in section 402(a)(4) shall provide, 
                        or assist the individual in locating, a second 
                        chance home, maternity home, or other 
                        appropriate adult-supervised supportive living 
                        arrangement, taking into consideration the 
                        needs and concerns of the individual, unless 
                        the State agency determines that the 
                        individual's current living arrangement is 
                        appropriate, and thereafter shall require that 
                        the individual and the minor child referred to 
                        in subparagraph (A)(ii)(II) reside in such 
                        living arrangement as a condition of the 
                        continued receipt of assistance under the State 
                        program funded under this part attributable to 
                        funds provided by the Federal Government (or in 
                        an alternative appropriate arrangement, should 
                        circumstances change and the current 
                        arrangement cease to be appropriate).
                            ``(ii) Individual described.--For purposes 
                        of clause (i), an individual is described in 
                        this clause if the individual is described in 
                        subparagraph (A)(ii), and--
                                    ``(I) the individual has no parent, 
                                legal guardian or other appropriate 
                                adult relative described in subclause 
                                (II) of his or her own who is living or 
                                whose whereabouts are known;
                                    ``(II) no living parent, legal 
                                guardian, or other appropriate adult 
                                relative, who would otherwise meet 
                                applicable State criteria to act as the 
                                individual's legal guardian, of such 
                                individual allows the individual to 
                                live in the home of such parent, 
                                guardian, or relative;
                                    ``(III) the State agency determines 
                                that--
                                            ``(aa) the individual or 
                                        the minor child referred to in 
                                        subparagraph (A)(ii)(II) is 
                                        being or has been subjected to 
                                        serious physical or emotional 
                                        harm, sexual abuse, or 
                                        exploitation in the residence 
                                        of the individual's own parent 
                                        or legal guardian; or
                                            ``(bb) substantial evidence 
                                        exists of an act or failure to 
                                        act that presents an imminent 
                                        or serious harm if the 
                                        individual and the minor child 
                                        lived in the same residence 
                                        with the individual's own 
                                        parent or legal guardian; or
                                    ``(IV) the State agency otherwise 
                                determines that it is in the best 
                                interest of the minor child to waive 
                                the requirement of subparagraph (A) 
                                with respect to the individual or the 
                                minor child.
                            ``(iii) Second-chance home.--For purposes 
                        of this subparagraph, the term `second-chance 
                        home' means an entity that provides individuals 
                        described in clause (ii) with a supportive and 
                        supervised living arrangement in which such 
                        individuals are required to learn parenting 
                        skills, including child development, family 
                        budgeting, health and nutrition, and other 
                        skills to promote their long-term economic 
                        independence and the well-being of their 
                        children.
            ``(7) No medical services.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a State to which a grant is made 
                under section 403 shall not use any part of the grant 
to provide medical services.
                    ``(B) Exception for family planning services.--As 
                used in subparagraph (A), the term `medical services' 
                does not include family planning services.
            ``(8) No assistance for more than 5 years.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), a State to which a grant is 
                made under section 403 shall not use any part of the 
                grant to provide assistance to a family that includes 
                an adult who has received assistance under any State 
                program funded under this part attributable to funds 
                provided by the Federal Government, for 60 months 
                (whether or not consecutive) after the date the State 
                program funded under this part commences.
                    ``(B) Minor child exception.--In determining the 
                number of months for which an individual who is a 
                parent or pregnant has received assistance under the 
                State program funded under this part, the State shall 
                disregard any month for which such assistance was 
                provided with respect to the individual and during 
                which the individual was--
                            ``(i) a minor child; and
                            ``(ii) not the head of a household or 
                        married to the head of a household.
                    ``(C) Hardship exception.--
                            ``(i) In general.--The State may exempt a 
                        family from the application of subparagraph (A) 
                        by reason of hardship or if the family includes 
                        an individual who has been battered or 
                        subjected to extreme cruelty.
                            ``(ii) Limitation.--The number of families 
                        with respect to which an exemption made by a 
                        State under clause (i) is in effect for a 
                        fiscal year shall not exceed 20 percent of the 
                        average monthly number of families to which 
                        assistance is provided under the State program 
                        funded under this part.
                            ``(iii) Battered or subject to extreme 
                        cruelty defined.--For purposes of clause (i), 
                        an individual has been battered or subjected to 
                        extreme cruelty if the individual has been 
                        subjected to--
                                    ``(I) physical acts that resulted 
                                in, or threatened to result in, 
                                physical injury to the individual;
                                    ``(II) sexual abuse;
                                    ``(III) sexual activity involving a 
                                dependent child;
                                    ``(IV) being forced as the 
                                caretaker relative of a dependent child 
                                to engage in nonconsensual sexual acts 
                                or activities;
                                    ``(V) threats of, or attempts at, 
                                physical or sexual abuse;
                                    ``(VI) mental abuse; or
                                    ``(VII) neglect or deprivation of 
                                medical care.
                    ``(D) Rule of interpretation.--Subparagraph (A) 
                shall not be interpreted to require any State to 
                provide assistance to any individual for any period of 
                time under the State program funded under this part.
                    ``(E) Rule of interpretation.--This part shall not 
                be interpreted to prohibit any State from expending 
                State funds not originating with the Federal Government 
                on benefits for children or families that have become 
                ineligible for assistance under the State program 
                funded under this part by reason of subparagraph (A).
            ``(9) Denial of assistance for 10 years to a person found 
        to have fraudulently misrepresented residence in order to 
        obtain assistance in 2 or more states.--A State to which a 
        grant is made under section 403 shall not use any part of the 
        grant to provide cash assistance to an individual during the 
        10-year period that begins on the date the individual is 
        convicted in Federal or State court of having made a fraudulent 
        statement or representation with respect to the place of 
        residence of the individual in order to receive assistance 
        simultaneously from 2 or more States under programs that are 
        funded under this title, title XIX, or the Food Stamp Act of 
        1977, or benefits in 2 or more States under the supplemental 
        security income program under title XVI. The preceding sentence 
shall not apply with respect to a conviction of an individual, for any 
month beginning after the President of the United States grants a 
pardon with respect to the conduct which was the subject of the 
conviction.
            ``(10) Denial of assistance for fugitive felons and 
        probation and parole violators.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 shall not use any part of the grant 
                to provide assistance to any individual who is--
                            ``(i) fleeing to avoid prosecution, or 
                        custody or confinement after conviction, under 
                        the laws of the place from which the individual 
                        flees, for a crime, or an attempt to commit a 
                        crime, which is a felony under the laws of the 
                        place from which the individual flees, or 
                        which, in the case of the State of New Jersey, 
                        is a high misdemeanor under the laws of such 
                        State; or
                            ``(ii) violating a condition of probation 
                        or parole imposed under Federal or State law.
                The preceding sentence shall not apply with respect to 
                conduct of an individual, for any month beginning after 
                the President of the United States grants a pardon with 
                respect to the conduct.
                    ``(B) Exchange of information with law enforcement 
                agencies.--If a State to which a grant is made under 
                section 403 establishes safeguards against the use or 
                disclosure of information about applicants or 
                recipients of assistance under the State program funded 
                under this part, the safeguards shall not prevent the 
                State agency administering the program from furnishing 
                a Federal, State, or local law enforcement officer, 
                upon the request of the officer, with the current 
                address of any recipient if the officer furnishes the 
                agency with the name of the recipient and notifies the 
                agency that--
                            ``(i) the recipient--
                                    ``(I) is described in subparagraph 
                                (A); or
                                    ``(II) has information that is 
                                necessary for the officer to conduct 
                                the official duties of the officer; and
                            ``(ii) the location or apprehension of the 
                        recipient is within such official duties.
            ``(11) Denial of assistance for minor children who are 
        absent from the home for a significant period.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 shall not use any part of the grant 
                to provide assistance for a minor child who has been, 
                or is expected by a parent (or other caretaker 
                relative) of the child to be, absent from the home for 
                a period of 45 consecutive days or, at the option of 
                the State, such period of not less than 30 and not more 
                than 180 consecutive days as the State may provide for 
                in the State plan submitted pursuant to section 402.
                    ``(B) State authority to establish good cause 
                exceptions.--The State may establish such good cause 
                exceptions to subparagraph (A) as the State considers 
                appropriate if such exceptions are provided for in the 
                State plan submitted pursuant to section 402.
                    ``(C) Denial of assistance for relative who fails 
                to notify state agency of absence of child.--A State to 
                which a grant is made under section 403 shall not use 
                any part of the grant to provide assistance for an 
                individual who is a parent (or other caretaker 
                relative) of a minor child and who fails to notify the 
                agency administering the State program funded under 
                this part of the absence of the minor child from the 
                home for the period specified in or provided for 
                pursuant to subparagraph (A), by the end of the 5-day 
                period that begins with the date that it becomes clear 
                to the parent (or relative) that the minor child will 
                be absent for such period so specified or provided for.
            ``(12) Income security payments not to be disregarded in 
        determining the amount of assistance to be provided to a 
        family.--If a State to which a grant is made under section 403 
        uses any part of the grant to provide assistance for any 
        individual who is receiving benefits, or on behalf of whom 
        benefits are paid, under a State plan for old-age assistance 
        approved under section 2, under section 202, 205(j)(1), 223, or 
        228, under a State program funded under part E that provides 
        cash payments for foster care, or under the supplemental 
        security income program under title XVI, then the State may 
        disregard the payment in determining the amount of assistance 
        to be provided under the State program funded under this part, 
        from funds provided by the Federal Government, to the family of 
        which the individual is a member.
            ``(13) Medical assistance required to be provided for 1 
        year for families becoming ineligible for cash assistance under 
        this part due to increased earnings from employment.--A State 
        to which a grant is made under section 403 shall take such 
        action as may be necessary to ensure that, if an individual or 
        family becomes ineligible to receive cash assistance under the 
        State program funded under this part as a result of increased 
        earnings from employment, having received such assistance in at 
        least 3 of the 6 months immediately preceding the month in 
        which such ineligibility begins, the individual (or in the case 
        of a family, each individual in the family) shall be eligible 
        for medical assistance under the State's plan approved under 
        title XIX during the immediately succeeding 12-month period for 
        so long as family income (as defined by the State), excluding 
        any refund of Federal income taxes made by reason of section 32 
        of the Internal Revenue Code of 1986 (relating to earned income 
        tax credit) and any payment made by an employer under section 
        3507 of such Code (relating to advance payment of earned income 
        credit), is less than the poverty line, and that the family 
        will be appropriately notified of such eligibility.
            ``(14) Medical assistance required to be provided for 4 
        months for families becoming ineligible for cash assistance 
        under this part due to collection of child support.--A State to 
        which a grant is made under section 403 shall take such action 
        as may be necessary to ensure that, if any individual or family 
        becomes ineligible to receive cash assistance under the State 
        program funded under this part as a result of the collection or 
        increased collection of child or spousal support under part D, 
        having received such assistance in at least 3 of the 6 months 
        immediately preceding the month in which such ineligibility 
        begins, the individual (or, in the case of a family, each 
        individual in the family) shall be eligible for medical 
        assistance under the State's plan approved under title XIX 
        during the 4-month period beginning with the month in which 
        such ineligibility begins.
            ``(15) Medical assistance required to be provided for 
        certain individuals.--A State to which a grant is made under 
        section 403 shall take such action as may be necessary to 
        ensure that, under section 1931, individuals who would be 
        eligible for cash assistance under the State plan approved 
        under this part (as in effect as of July 16, 1996) if such 
        State plan were still in effect are eligible for medical 
        assistance under the State's plan approved under title XIX.
    ``(b) Individual Responsibility Plans.--
            ``(1) Assessment.--The State agency responsible for 
        administering the State program funded under this part shall 
        make an initial assessment of the skills, prior work 
        experience, and employability of each recipient of assistance 
        under the program who--
                    ``(A) has attained 18 years of age; or
                    ``(B) has not completed high school or obtained a 
                certificate of high school equivalency, and is not 
                attending secondary school.
            ``(2) Contents of plans.--
                    ``(A) In general.--On the basis of the assessment 
                made under subsection (a) with respect to an 
                individual, the State agency, in consultation with the 
                individual, may develop an individual responsibility 
                plan for the individual, which--
                            ``(i) sets forth an employment goal for the 
                        individual and a plan for moving the individual 
                        immediately into private sector employment;
                            ``(ii) sets forth the obligations of the 
                        individual, which may include a requirement 
                        that the individual attend school, maintain 
                        certain grades and attendance, keep school age 
                        children of the individual in school, immunize 
                        children, attend parenting and money management 
                        classes, or do other things that will help the 
                        individual become and remain employed in the 
                        private sector;
                            ``(iii) to the greatest extent possible is 
                        designed to move the individual into whatever 
                        private sector employment the individual is 
                        capable of handling as quickly as possible, and 
                        to increase the responsibility and amount of 
                        work the individual is to handle over time;
                            ``(iv) describes the services the State 
                        will provide the individual so that the 
                        individual will be able to obtain and keep 
                        employment in the private sector, and describe 
                        the job counseling and other services that will 
                        be provided by the State; and
                            ``(v) may require the individual to undergo 
                        appropriate substance abuse treatment.
                    ``(B) Timing.--The State agency may comply with 
                paragraph (1) with respect to an individual--
                            ``(i) within 90 days (or, at the option of 
                        the State, 180 days) after the effective date 
                        of this part, in the case of an individual who, 
                        as of such effective date, is a recipient of 
                        aid under the State plan approved under part A 
                        (as in effect immediately before such effective 
                        date); or
                            ``(ii) within 30 days (or, at the option of 
                        the State, 90 days) after the individual is 
                        determined to be eligible for such assistance, 
                        in the case of any other individual.
            ``(3) Penalty for noncompliance by individual.--In addition 
        to any other penalties required under the State program funded 
        under this part, the State may reduce, by such amount as the 
        State considers appropriate, the amount of assistance otherwise 
        payable under the State program to a family that includes an 
        individual who fails without good cause to comply with an 
        individual responsibility plan signed by the individual.
            ``(4) State discretion.--The exercise of the authority of 
        this subsection shall be within the sole discretion of the 
        State.
    ``(c) Aliens.--For special rules relating to the treatment of 
aliens, see section 4402 of the Personal Responsibility and Work 
Opportunity Act of 1996.

``SEC. 409. PENALTIES.

    ``(a) In General.--Subject to this section:
            ``(1) Use of grant in violation of this part.--
                    ``(A) General penalty.--If an audit conducted under 
                chapter 75 of title 31, United States Code, finds that 
                an amount paid to a State under section 403 for a 
                fiscal year has been used in violation of this part, 
                the Secretary shall reduce the grant payable to the 
                State under section 403(a)(1) for the immediately 
                succeeding fiscal year quarter by the amount so used.
                    ``(B) Enhanced penalty for intentional 
                violations.--If the State does not prove to the 
                satisfaction of the Secretary that the State did not 
                intend to use the amount in violation of this part, the 
                Secretary shall further reduce the grant payable to the 
                State under section 403(a)(1) for the immediately 
succeeding fiscal year quarter by an amount equal to 5 percent of the 
State family assistance grant.
            ``(2) Failure to submit required report.--
                    ``(A) In general.--If the Secretary determines that 
                a State has not, within 1 month after the end of a 
                fiscal quarter, submitted the report required by 
                section 411(a) for the quarter, the Secretary shall 
                reduce the grant payable to the State under section 
                403(a)(1) for the immediately succeeding fiscal year by 
                an amount equal to 4 percent of the State family 
                assistance grant.
                    ``(B) Rescission of penalty.--The Secretary shall 
                rescind a penalty imposed on a State under subparagraph 
                (A) with respect to a report if the State submits the 
                report before the end of the fiscal quarter that 
                immediately succeeds the fiscal quarter for which the 
                report was required.
            ``(3) Failure to satisfy minimum participation rates.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 for 
                a fiscal year has failed to comply with section 407(a) 
                for the fiscal year, the Secretary shall reduce the 
                grant payable to the State under section 403(a)(1) for 
                the immediately succeeding fiscal year by an amount 
                equal to not more than 5 percent of the State family 
                assistance grant.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) based on the degree of noncompliance, and may 
                reduce the penalty if the State experiences an economic 
                downturn that leads to significantly greater 
                unemployment.
            ``(4) Failure to participate in the income and eligibility 
        verification system.--If the Secretary determines that a State 
        program funded under this part is not participating during a 
        fiscal year in the income and eligibility verification system 
        required by section 1137, the Secretary shall reduce the grant 
        payable to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year by an amount equal to not 
        more than 2 percent of the State family assistance grant.
            ``(5) Failure to comply with paternity establishment and 
        child support enforcement requirements under part d.--
        Notwithstanding any other provision of this Act, if the 
        Secretary determines that the State agency that administers a 
        program funded under this part does not enforce the penalties 
        requested by the agency administering part D against recipients 
        of assistance under the State program who fail to cooperate in 
        establishing paternity or in establishing, modifying, or 
        enforcing a child support order in accordance with such part 
        and who do not qualify for any good cause or other exception 
        established by the State under section 454(29), the Secretary 
        shall reduce the grant payable to the State under section 
        403(a)(1) for the immediately succeeding fiscal year (without 
        regard to this section) by not more than 5 percent.
            ``(6) Failure to timely repay a federal loan fund for state 
        welfare programs.--If the Secretary determines that a State has 
        failed to repay any amount borrowed from the Federal Loan Fund 
        for State Welfare Programs established under section 406 within 
        the period of maturity applicable to the loan, plus any 
        interest owed on the loan, the Secretary shall reduce the grant 
        payable to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year quarter (without regard to 
        this section) by the outstanding loan amount, plus the interest 
        owed on the outstanding amount. The Secretary shall not forgive 
        any outstanding loan amount or interest owed on the outstanding 
        amount.
            ``(7) Failure of any state to maintain certain level of 
        historic effort.--
                    ``(A) In general.--The Secretary shall reduce the 
                grant payable to the State under section 403(a)(1) for 
                fiscal year 1998, 1999, 2000, 2001, or 2002 by the 
                amount (if any) by which qualified State expenditures 
                for the then immediately preceding fiscal year are less 
                than the applicable percentage of historic State 
                expenditures with respect to such preceding fiscal 
                year.
                    ``(B) Definitions.--As used in this paragraph:
                            ``(i) Qualified state expenditures.--
                                    ``(I) In general.--The term 
                                `qualified State expenditures' means, 
                                with respect to a State and a fiscal 
                                year, the total expenditures by the 
                                State during the fiscal year, under all 
                                State programs, for any of the 
                                following with respect to eligible 
                                families:
                                            ``(aa) Cash assistance.
                                            ``(bb) Child care 
                                        assistance.
                                            ``(cc) Educational 
                                        activities designed to increase 
                                        self-sufficiency, job training, 
                                        and work, excluding any 
                                        expenditure for public 
                                        education in the State except 
                                        expenditures which involve the 
                                        provision of services or 
                                        assistance to a member of an 
                                        eligible family which is not 
                                        generally available to persons 
                                        who are not members of an 
                                        eligible family.
                                            ``(dd) Administrative costs 
                                        in connection with the matters 
                                        described in items (aa), (bb), 
                                        (cc), and (ee), but only to the 
                                        extent that such costs do not 
                                        exceed 15 percent of the total 
                                        amount of qualified State 
                                        expenditures for the fiscal 
                                        year.
                                            ``(ee) Any other use of 
                                        funds allowable under section 
                                        404(a)(1).
                                    ``(II) Exclusion of transfers from 
                                other state and local programs.--Such 
                                term does not include expenditures 
                                under any State or local program during 
                                a fiscal year, except to the extent 
                                that--
                                            ``(aa) the expenditures 
                                        exceed the amount expended 
                                        under the State or local 
                                        program in the fiscal year most 
                                        recently ending before the date 
                                        of the enactment of this part; 
                                        or
                                            ``(bb) the State is 
                                        entitled to a payment under 
                                        former section 403 (as in 
                                        effect immediately before such 
                                        date of enactment) with respect 
                                        to the expenditures.
                                    ``(III) Eligible families.--As used 
                                in subclause (I), the term `eligible 
                                families' means families eligible for 
                                assistance under the State program 
                                funded under this part, and families 
                                that would be eligible for such 
                                assistance but for the application of 
                                section 408(a)(8) of this Act or 
                                section 4402 of the Personal 
                                Responsibility and Work Opportunity Act 
                                of 1996.
                            ``(ii) Applicable percentage.--The term 
                        `applicable percentage' means for fiscal years 
                        1997 through 2001, 80 percent (or, if the State 
                        meets the requirements of section 407(a) for 
                        the fiscal year, 75 percent) reduced (if 
                        appropriate) in accordance with subparagraph 
                        (C)(ii).
                            ``(iii) Historic state expenditures.--The 
                        term `historic State expenditures' means, with 
                        respect to a State, the lesser of--
                                    ``(I) the expenditures by the State 
                                under parts A and F (as in effect 
                                during fiscal year 1994) for fiscal 
                                year 1994; or
                                    ``(II) the amount which bears the 
                                same ratio to the amount described in 
                                subclause (I) as--
                                            ``(aa) the State family 
                                        assistance grant, plus the 
                                        total amount required to be 
                                        paid to the State under former 
                                        section 403 for fiscal year 
                                        1994 with respect to amounts 
                                        expended by the State for 
child care under subsection (g) or (i) of section 402 (as in effect 
during fiscal year 1994); bears to
                                            ``(bb) the total amount 
                                        required to be paid to the 
                                        State under former section 403 
                                        (as in effect during fiscal 
                                        year 1994) for fiscal year 
                                        1994.
                        Such term does not include any expenditures 
                        under the State plan approved under part A (as 
                        so in effect) on behalf of individuals covered 
                        by a tribal family assistance plan approved 
                        under section 412, as determined by the 
                        Secretary.
                            ``(iv) Expenditures by the state.--The term 
                        `expenditures by the State' does not include--
                                    ``(I) any expenditures from amounts 
                                made available by the Federal 
                                Government;
                                    ``(II) State funds expended for the 
                                medicaid program under title XIX; or
                                    ``(III) any State funds which are 
                                used to match Federal funds or are 
                                expended as a condition of receiving 
                                Federal funds under Federal programs 
                                other than under this part.
                    ``(C) Applicable percentage reduced for high 
                performance states.--
                            ``(i) Determination of high performance 
                        states.--The Secretary shall use the formula 
                        developed under section 403(a)(4)(C) to assign 
                        a score to each eligible State that represents 
                        the performance of the State program funded 
                        under this part for each fiscal year, and shall 
                        prescribe a performance threshold which the 
                        Secretary shall use to determine whether to 
                        reduce the applicable percentage with respect 
                        to any eligible State for a fiscal year.
                            ``(ii) Reduction proportional to 
                        performance.--The Secretary shall reduce the 
                        applicable percentage for a fiscal year with 
                        respect to each eligible State by an amount 
                        which is directly proportional to the amount 
                        (if any) by which the score assigned to the 
                        State under clause (i) for the immediately 
                        preceding fiscal year exceeds the performance 
                        threshold prescribed under clause (i) for such 
                        preceding fiscal year, subject to clause (iii).
                            ``(iii) Limitation on reduction.--The 
                        applicable percentage for a fiscal year with 
                        respect to a State may not be reduced by more 
                        than 8 percentage points under this 
                        subparagraph.
            ``(8) Substantial noncompliance of state child support 
        enforcement program with requirements of part d.--
                    ``(A) In general.--If a State program operated 
                under part D is found as a result of a review conducted 
                under section 452(a)(4) not to have complied 
                substantially with the requirements of such part for 
                any quarter, and the Secretary determines that the 
                program is not complying substantially with such 
                requirements at the time the finding is made, the 
                Secretary shall reduce the grant payable to the State 
                under section 403(a)(1) for the quarter and each 
                subsequent quarter that ends before the 1st quarter 
                throughout which the program is found to be in 
                substantial compliance with such requirements by--
                            ``(i) not less than 1 nor more than 2 
                        percent;
                            ``(ii) not less than 2 nor more than 3 
                        percent, if the finding is the 2nd consecutive 
                        such finding made as a result of such a review; 
                        or
                            ``(iii) not less than 3 nor more than 5 
                        percent, if the finding is the 3rd or a 
                        subsequent consecutive such finding made as a 
                        result of such a review.
                    ``(B) Disregard of noncompliance which is of a 
                technical nature.--For purposes of subparagraph (A) and 
                section 452(a)(4), a State which is not in full 
                compliance with the requirements of this part shall be 
                determined to be in substantial compliance with such 
requirements only if the Secretary determines that any noncompliance 
with such requirements is of a technical nature which does not 
adversely affect the performance of the State's program operated under 
part D.
            ``(9) Failure of state receiving amounts from contingency 
        fund to maintain 100 percent of historic effort.--If, at the 
        end of any fiscal year during which amounts from the 
        Contingency Fund for State Welfare Programs have been paid to a 
        State, the Secretary finds that the expenditures under the 
        State program funded under this part for the fiscal year are 
        less than 100 percent of historic State expenditures (as 
        defined in paragraph (8)(B)(iii) of this subsection), the 
        Secretary shall reduce the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal year by 
        the total of the amounts so paid to the State.
            ``(10) Failure to expend additional state funds to replace 
        grant reductions.--If the grant payable to a State under 
        section 403(a)(1) for a fiscal year is reduced by reason of 
        this subsection, the State shall, during the immediately 
        succeeding fiscal year, expend under the State program funded 
        under this part an amount equal to the total amount of such 
        reductions.
            ``(11) Failure to provide medical assistance to families 
        becoming ineligible for cash assistance under this part due to 
        increased earnings from employment or collection of child 
        support.--
                    ``(A) In general.--If the Secretary determines that 
                a State program funded under this part is not in 
                compliance with paragraph (13) or (14) of section 
                408(a) for a quarter, the Secretary shall reduce the 
                grant payable to the State under section 403(a)(1) for 
                the immediately succeeding fiscal year by an amount 
                equal to not more than 5 percent of the State family 
                assistance grant.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) based on the degree of noncompliance.
    ``(b) Reasonable Cause Exception.--
            ``(1) In general.--The Secretary may not impose a penalty 
        on a State under subsection (a) with respect to a requirement 
        if the Secretary determines that the State has reasonable cause 
        for failing to comply with the requirement.
            ``(2) Exception.--Paragraph (1) of this subsection shall 
        not apply to any penalty under paragraph (7), (8), or (11) of 
        subsection (a).
    ``(c) Corrective Compliance Plan.--
            ``(1) In general.--
                    ``(A) Notification of violation.--Before imposing a 
                penalty against a State under subsection (a) with 
                respect to a violation of this part, the Secretary 
                shall notify the State of the violation and allow the 
                State the opportunity to enter into a corrective 
                compliance plan in accordance with this subsection 
                which outlines how the State will correct the violation 
                and how the State will insure continuing compliance 
                with this part.
                    ``(B) 60-day period to propose a corrective 
                compliance plan.--During the 60-day period that begins 
                on the date the State receives a notice provided under 
                subparagraph (A) with respect to a violation, the State 
                may submit to the Federal Government a corrective 
                compliance plan to correct the violation.
                    ``(C) Consultation about modifications.--During the 
                60-day period that begins with the date the Secretary 
                receives a corrective compliance plan submitted by a 
                State in accordance with subparagraph (B), the 
                Secretary may consult with the State on modifications 
                to the plan.
                    ``(D) Acceptance of plan.-- A corrective compliance 
                plan submitted by a State in accordance with 
                subparagraph (B) is deemed to be accepted by the 
                Secretary if the Secretary does not accept or reject 
                the plan during 60-day period that begins on the date 
                the plan is submitted.
            ``(2) Effect of correcting violation.--The Secretary may 
        not impose any penalty under subsection (a) with respect to any 
        violation covered by a State corrective compliance plan 
        accepted by the Secretary if the State corrects the violation 
        pursuant to the plan.
            ``(3) Effect of failing to correct violation.--The 
        Secretary shall assess some or all of a penalty imposed on a 
        State under subsection (a) with respect to a violation if the 
        State does not, in a timely manner, correct the violation 
        pursuant to a State corrective compliance plan accepted by the 
        Secretary.
            ``(4) Inapplicability to failure to timely repay a federal 
        loan fund for a state welfare program.--This subsection shall 
        not apply to the imposition of a penalty against a State under 
        subsection (a)(6).
    ``(d) Limitation on Amount of Penalty.--
            ``(1) In general.--In imposing the penalties described in 
        subsection (a), the Secretary shall not reduce any quarterly 
        payment to a State by more than 25 percent.
            ``(2) Carryforward of unrecovered penalties.--To the extent 
        that paragraph (1) of this subsection prevents the Secretary 
        from recovering during a fiscal year the full amount of 
        penalties imposed on a State under subsection (a) of this 
        section for a prior fiscal year, the Secretary shall apply any 
        remaining amount of such penalties to the grant payable to the 
        State under section 403(a)(1) for the immediately succeeding 
        fiscal year.

``SEC. 410. APPEAL OF ADVERSE DECISION.

    ``(a) In General.--Within 5 days after the date the Secretary takes 
any adverse action under this part with respect to a State, the 
Secretary shall notify the chief executive officer of the State of the 
adverse action, including any action with respect to the State plan 
submitted under section 402 or the imposition of a penalty under 
section 409.
    ``(b) Administrative Review.--
            ``(1) In general.--Within 60 days after the date a State 
        receives notice under subsection (a) of an adverse action, the 
        State may appeal the action, in whole or in part, to the 
        Departmental Appeals Board established in the Department of 
        Health and Human Services (in this section referred to as the 
        `Board') by filing an appeal with the Board.
            ``(2) Procedural rules.--The Board shall consider an appeal 
        filed by a State under paragraph (1) on the basis of such 
        documentation as the State may submit and as the Board may 
        require to support the final decision of the Board. In deciding 
        whether to uphold an adverse action or any portion of such an 
        action, the Board shall conduct a thorough review of the issues 
        and take into account all relevant evidence. The Board shall 
        make a final determination with respect to an appeal filed 
        under paragraph (1) not less than 60 days after the date the 
        appeal is filed.
    ``(c) Judicial Review of Adverse Decision.--
            ``(1) In general.--Within 90 days after the date of a final 
        decision by the Board under this section with respect to an 
        adverse action taken against a State, the State may obtain 
        judicial review of the final decision (and the findings 
        incorporated into the final decision) by filing an action in--
                    ``(A) the district court of the United States for 
                the judicial district in which the principal or 
                headquarters office of the State agency is located; or
                    ``(B) the United States District Court for the 
                District of Columbia.
            ``(2) Procedural rules.--The district court in which an 
        action is filed under paragraph (1) shall review the final 
        decision of the Board on the record established in the 
        administrative proceeding, in accordance with the standards of 
review prescribed by subparagraphs (A) through (E) of section 706(2) of 
title 5, United States Code. The review shall be on the basis of the 
documents and supporting data submitted to the Board.

``SEC. 411. DATA COLLECTION AND REPORTING.

    ``(a) Quarterly Reports by States.--
            ``(1) General reporting requirement.--
                    ``(A) Contents of report.--Each eligible State 
                shall collect on a monthly basis, and report to the 
                Secretary on a quarterly basis, the following 
                disaggregated case record information on the families 
                receiving assistance under the State program funded 
                under this part:
                            ``(i) The county of residence of the 
                        family.
                            ``(ii) Whether a child receiving such 
                        assistance or an adult in the family is 
                        disabled.
                            ``(iii) The ages of the members of such 
                        families.
                            ``(iv) The number of individuals in the 
                        family, and the relation of each family member 
                        to the youngest child in the family.
                            ``(v) The employment status and earnings of 
                        the employed adult in the family.
                            ``(vi) The marital status of the adults in 
                        the family, including whether such adults have 
                        never married, are widowed, or are divorced.
                            ``(vii) The race and educational status of 
                        each adult in the family.
                            ``(viii) The race and educational status of 
                        each child in the family.
                            ``(ix) Whether the family received 
                        subsidized housing, medical assistance under 
                        the State plan approved under title XIX, food 
                        stamps, or subsidized child care, and if the 
                        latter 2, the amount received.
                            ``(x) The number of months that the family 
                        has received each type of assistance under the 
                        program.
                            ``(xi) If the adults participated in, and 
                        the number of hours per week of participation 
                        in, the following activities:
                                    ``(I) Education.
                                    ``(II) Subsidized private sector 
                                employment.
                                    ``(III) Unsubsidized employment.
                                    ``(IV) Public sector employment, 
                                work experience, or community service.
                                    ``(V) Job search.
                                    ``(VI) Job skills training or on-
                                the-job training.
                                    ``(VII) Vocational education.
                            ``(xii) Information necessary to calculate 
                        participation rates under section 407.
                            ``(xiii) The type and amount of assistance 
                        received under the program, including the 
                        amount of and reason for any reduction of 
                        assistance (including sanctions).
                            ``(xiv) Any amount of unearned income 
                        received by any member of the family.
                            ``(xv) The citizenship of the members of 
                        the family.
                            ``(xvi) From a sample of closed cases, 
                        whether the family left the program, and if so, 
                        whether the family left due to--
                                    ``(I) employment;
                                    ``(II) marriage;
                                    ``(III) the prohibition set forth 
                                in section 408(a)(8);
                                    ``(IV) sanction; or
                                    ``(V) State policy.
                    ``(B) Use of estimates.--
                            ``(i) Authority.--A State may comply with 
                        subparagraph (A) by submitting an estimate 
                        which is obtained through the use of 
                        scientifically acceptable sampling methods 
                        approved by the Secretary.
                            ``(ii) Sampling and other methods.--The 
                        Secretary shall provide the States with such 
                        case sampling plans and data collection 
                        procedures as the Secretary deems necessary to 
                        produce statistically valid estimates of the 
                        performance of State programs funded under this 
                        part. The Secretary may develop and implement 
                        procedures for verifying the quality of data 
                        submitted by the States.
            ``(2) Report on use of federal funds to cover 
        administrative costs and overhead.--The report required by 
        paragraph (1) for a fiscal quarter shall include a statement of 
        the percentage of the funds paid to the State under this part 
        for the quarter that are used to cover administrative costs or 
        overhead.
            ``(3) Report on state expenditures on programs for needy 
        families.--The report required by paragraph (1) for a fiscal 
        quarter shall include a statement of the total amount expended 
        by the State during the quarter on programs for needy families.
            ``(4) Report on noncustodial parents participating in work 
        activities.--The report required by paragraph (1) for a fiscal 
        quarter shall include the number of noncustodial parents in the 
        State who participated in work activities (as defined in 
        section 407(d)) during the quarter.
            ``(5) Report on transitional services.--The report required 
        by paragraph (1) for a fiscal quarter shall include the total 
        amount expended by the State during the quarter to provide 
        transitional services to a family that has ceased to receive 
        assistance under this part because of employment, along with a 
        description of such services.
            ``(6) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to define the data elements 
        with respect to which reports are required by this subsection.
    ``(b) Annual Reports to the Congress by the Secretary.--Not later 
than 6 months after the end of fiscal year 1997, and each fiscal year 
thereafter, the Secretary shall transmit to the Congress a report 
describing--
            ``(1) whether the States are meeting--
                    ``(A) the participation rates described in section 
                407(a); and
                    ``(B) the objectives of--
                            ``(i) increasing employment and earnings of 
                        needy families, and child support collections; 
                        and
                            ``(ii) decreasing out-of-wedlock 
                        pregnancies and child poverty;
            ``(2) the demographic and financial characteristics of 
        families applying for assistance, families receiving 
        assistance, and families that become ineligible to receive 
        assistance;
            ``(3) the characteristics of each State program funded 
        under this part; and
            ``(4) the trends in employment and earnings of needy 
        families with minor children living at home.

``SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

    ``(a) Grants for Indian Tribes.--
            ``(1) Tribal family assistance grant.--
                    ``(A) In general.--For each of fiscal years 1997, 
                1998, 1999, and 2000, the Secretary shall pay to each 
                Indian tribe that has an approved tribal family 
                assistance plan a tribal family assistance grant for 
                the fiscal year in an amount equal to the amount 
                determined under subparagraph (B), and shall reduce the 
                grant payable under section 403(a)(1) to any State in 
                which lies the service area or areas of the Indian 
                tribe by that portion of the amount so determined that 
                is attributable to expenditures by the State.
                    ``(B) Amount determined.--
                            ``(i) In general.--The amount determined 
                        under this subparagraph is an amount equal to 
                        the total amount of the Federal payments to a 
                        State or States under section 403 (as in effect 
                        during such fiscal year) for fiscal year 1994 
attributable to expenditures (other than child care expenditures) by 
the State or States under parts A and F (as so in effect) for fiscal 
year 1994 for Indian families residing in the service area or areas 
identified by the Indian tribe pursuant to subsection (b)(1)(C) of this 
section.
                            ``(ii) Use of state submitted data.--
                                    ``(I) In general.--The Secretary 
                                shall use State submitted data to make 
                                each determination under clause (i).
                                    ``(II) Disagreement with 
                                determination.--If an Indian tribe or 
                                tribal organization disagrees with 
                                State submitted data described under 
                                subclause (I), the Indian tribe or 
                                tribal organization may submit to the 
                                Secretary such additional information 
                                as may be relevant to making the 
                                determination under clause (i) and the 
                                Secretary may consider such information 
                                before making such determination.
            ``(2) Grants for indian tribes that received jobs funds.--
                    ``(A) In general.--The Secretary shall pay to each 
                eligible Indian tribe for each of fiscal years 1996, 
                1997, 1998, 1999, 2000, and 2001 a grant in an amount 
                equal to the amount received by the Indian tribe in 
                fiscal year 1994 under section 482(i) (as in effect 
                during fiscal year 1994).
                    ``(B) Eligible indian tribe.--For purposes of 
                subparagraph (A), the term `eligible Indian tribe' 
                means an Indian tribe or Alaska Native organization 
                that conducted a job opportunities and basic skills 
                training program in fiscal year 1995 under section 
                482(i) (as in effect during fiscal year 1995).
                    ``(C) Use of grant.--Each Indian tribe to which a 
                grant is made under this paragraph shall use the grant 
                for the purpose of operating a program to make work 
                activities available to members of the Indian tribe.
                    ``(D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated $7,638,474 for 
                each fiscal year specified in subparagraph (A) for 
                grants under subparagraph (A).
    ``(b) 3-Year Tribal Family Assistance Plan.--
            ``(1) In general.--Any Indian tribe that desires to receive 
        a tribal family assistance grant shall submit to the Secretary 
        a 3-year tribal family assistance plan that--
                    ``(A) outlines the Indian tribe's approach to 
                providing welfare-related services for the 3-year 
                period, consistent with this section;
                    ``(B) specifies whether the welfare-related 
                services provided under the plan will be provided by 
                the Indian tribe or through agreements, contracts, or 
                compacts with intertribal consortia, States, or other 
                entities;
                    ``(C) identifies the population and service area or 
                areas to be served by such plan;
                    ``(D) provides that a family receiving assistance 
                under the plan may not receive duplicative assistance 
                from other State or tribal programs funded under this 
                part;
                    ``(E) identifies the employment opportunities in or 
                near the service area or areas of the Indian tribe and 
                the manner in which the Indian tribe will cooperate and 
                participate in enhancing such opportunities for 
                recipients of assistance under the plan consistent with 
                any applicable State standards; and
                    ``(F) applies the fiscal accountability provisions 
                of section 5(f)(1) of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450c(f)(1)), 
                relating to the submission of a single-agency audit 
                report required by chapter 75 of title 31, United 
                States Code.
            ``(2) Approval.--The Secretary shall approve each tribal 
        family assistance plan submitted in accordance with paragraph 
        (1).
            ``(3) Consortium of tribes.--Nothing in this section shall 
        preclude the development and submission of a single tribal 
        family assistance plan by the participating Indian tribes of an 
        intertribal consortium.
    ``(c) Minimum Work Participation Requirements and Time Limits.--The 
Secretary, with the participation of Indian tribes, shall establish for 
each Indian tribe receiving a grant under this section minimum work 
participation requirements, appropriate time limits for receipt of 
welfare-related services under the grant, and penalties against 
individuals--
            ``(1) consistent with the purposes of this section;
            ``(2) consistent with the economic conditions and resources 
        available to each tribe; and
            ``(3) similar to comparable provisions in section 407(d).
    ``(d) Emergency Assistance.--Nothing in this section shall preclude 
an Indian tribe from seeking emergency assistance from any Federal loan 
program or emergency fund.
    ``(e) Accountability.--Nothing in this section shall be construed 
to limit the ability of the Secretary to maintain program funding 
accountability consistent with--
            ``(1) generally accepted accounting principles; and
            ``(2) the requirements of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450 et seq.).
    ``(f) Penalties.--
            ``(1) Subsections (a)(1), (a)(6), and (b) of section 409, 
        shall apply to an Indian tribe with an approved tribal 
        assistance plan in the same manner as such subsections apply to 
        a State.
            ``(2) Section 409(a)(3) shall apply to an Indian tribe with 
        an approved tribal assistance plan by substituting `meet 
        minimum work participation requirements established under 
        section 412(c)' for `comply with section 407(a)'.
    ``(g) Data Collection and Reporting.--Section 411 shall apply to an 
Indian tribe with an approved tribal family assistance plan.
    ``(h) Special Rule for Indian Tribes in Alaska.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, and except as provided in paragraph (2), an 
        Indian tribe in the State of Alaska that receives a tribal 
        family assistance grant under this section shall use the grant 
        to operate a program in accordance with requirements comparable 
        to the requirements applicable to the program of the State of 
        Alaska funded under this part. Comparability of programs shall 
        be established on the basis of program criteria developed by 
        the Secretary in consultation with the State of Alaska and such 
        Indian tribes.
            ``(2) Waiver.--An Indian tribe described in paragraph (1) 
        may apply to the appropriate State authority to receive a 
        waiver of the requirement of paragraph (1).

``SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

    ``(a) Research.--The Secretary shall conduct research on the 
benefits, effects, and costs of operating different State programs 
funded under this part, including time limits relating to eligibility 
for assistance. The research shall include studies on the effects of 
different programs and the operation of such programs on welfare 
dependency, illegitimacy, teen pregnancy, employment rates, child well-
being, and any other area the Secretary deems appropriate. The 
Secretary shall also conduct research on the costs and benefits of 
State activities under section 409.
    ``(b) Development and Evaluation of Innovative Approaches To 
Reducing Welfare Dependency and Increasing Child Well-Being.--
            ``(1) In general.--The Secretary may assist States in 
        developing, and shall evaluate, innovative approaches for 
        reducing welfare dependency and increasing the well-being of 
        minor children living at home with respect to recipients of 
        assistance under programs funded under this part. The Secretary 
may provide funds for training and technical assistance to carry out 
the approaches developed pursuant to this paragraph.
            ``(2) Evaluations.--In performing the evaluations under 
        paragraph (1), the Secretary shall, to the maximum extent 
        feasible, use random assignment as an evaluation methodology.
    ``(c) Dissemination of Information.--The Secretary shall develop 
innovative methods of disseminating information on any research, 
evaluations, and studies conducted under this section, including the 
facilitation of the sharing of information and best practices among 
States and localities through the use of computers and other 
technologies.
    ``(d) Annual Ranking of States and Review of Most and Least 
Successful Work Programs.--
            ``(1) Annual ranking of states.--The Secretary shall rank 
        annually the States to which grants are paid under section 403 
        in the order of their success in placing recipients of 
        assistance under the State program funded under this part into 
        long-term private sector jobs, reducing the overall welfare 
        caseload, and, when a practicable method for calculating this 
        information becomes available, diverting individuals from 
        formally applying to the State program and receiving 
        assistance. In ranking States under this subsection, the 
        Secretary shall take into account the average number of minor 
        children living at home in families in the State that have 
        incomes below the poverty line and the amount of funding 
        provided each State for such families.
            ``(2) Annual review of most and least successful work 
        programs.--The Secretary shall review the programs of the 3 
        States most recently ranked highest under paragraph (1) and the 
        3 States most recently ranked lowest under paragraph (1) that 
        provide parents with work experience, assistance in finding 
        employment, and other work preparation activities and support 
        services to enable the families of such parents to leave the 
        program and become self-sufficient.
    ``(e) Annual Ranking of States and Review of Issues Relating to 
Out-of-Wedlock Births.--
            ``(1) Annual ranking of states.--
                    ``(A) In general.--The Secretary shall annually 
                rank States to which grants are made under section 403 
                based on the following ranking factors:
                            ``(i) Absolute out-of-wedlock ratios.--The 
                        ratio represented by--
                                    ``(I) the total number of out-of-
                                wedlock births in families receiving 
                                assistance under the State program 
                                under this part in the State for the 
                                most recent fiscal year for which 
                                information is available; over
                                    ``(II) the total number of births 
                                in families receiving assistance under 
                                the State program under this part in 
                                the State for such year.
                            ``(ii) Net changes in the out-of-wedlock 
                        ratio.--The difference between the ratio 
                        described in subparagraph (A)(i) with respect 
                        to a State for the most recent fiscal year for 
                        which such information is available and the 
                        ratio with respect to the State for the 
                        immediately preceding year.
            ``(2) Annual review.--The Secretary shall review the 
        programs of the 5 States most recently ranked highest under 
        paragraph (1) and the 5 States most recently ranked the lowest 
        under paragraph (1).
    ``(f) State-Initiated Evaluations.--A State shall be eligible to 
receive funding to evaluate the State program funded under this part 
if--
            ``(1) the State submits a proposal to the Secretary for the 
        evaluation;
            ``(2) the Secretary determines that the design and approach 
        of the evaluation is rigorous and is likely to yield 
        information that is credible and will be useful to other 
        States, and
            ``(3) unless otherwise waived by the Secretary, the State 
        contributes to the cost of the evaluation, from non-Federal 
sources, an amount equal to at least 10 percent of the cost of the 
evaluation.
    ``(g) Report on Circumstances of Certain Children and Families.--
            ``(1) In general.--Beginning 3 years after the date of the 
        enactment of this Act, the Secretary of Health and Human 
        Services shall prepare and submit to the Committees on Ways and 
        Means and on Economic and Educational Opportunities of the 
        House of Representatives and to the Committees on Finance and 
        on Labor and Resources of the Senate annual reports that 
        examine in detail the matters described in paragraph (2) with 
        respect to each of the following groups for the period after 
        such enactment:
                    ``(A) Individuals who were children in families 
                that have become ineligible for assistance under a 
                State program funded under this part by reason of 
                having reached a time limit on the provision of such 
                assistance.
                    ``(B) Families that include a child who is 
                ineligible for assistance under a State program funded 
                under this part by reason of section 408(a)(2).
                    ``(C) Children born after such date of enactment to 
                parents who, at the time of such birth, had not 
                attained 20 years of age.
                    ``(D) Individuals who, after such date of 
                enactment, became parents before attaining 20 years of 
                age.
            ``(2) Matters described.--The matters described in this 
        paragraph are the following:
                    ``(A) The percentage of each group that has dropped 
                out of secondary school (or the equivalent), and the 
                percentage of each group at each level of educational 
                attainment.
                    ``(B) The percentage of each group that is 
                employed.
                    ``(C) The percentage of each group that has been 
                convicted of a crime or has been adjudicated as a 
                delinquent.
                    ``(D) The rate at which the members of each group 
                are born, or have children, out-of-wedlock, and the 
                percentage of each group that is married.
                    ``(E) The percentage of each group that continues 
                to participate in State programs funded under this 
                part.
                    ``(F) The percentage of each group that has health 
                insurance provided by a private entity (broken down by 
                whether the insurance is provided through an employer 
                or otherwise), the percentage that has health insurance 
                provided by an agency of government, and the percentage 
                that does not have health insurance.
                    ``(G) The average income of the families of the 
                members of each group.
                    ``(H) Such other matters as the Secretary deems 
                appropriate.
    ``(h) Funding of Studies and Demonstrations.--
            ``(1) In general.--Out of any money in the Treasury of the 
        United States not otherwise appropriated, there are 
        appropriated $15,000,000 for each fiscal year specified in 
        section 403(a)(1) for the purpose of paying--
                    ``(A) the cost of conducting the research described 
                in subsection (a);
                    ``(B) the cost of developing and evaluating 
                innovative approaches for reducing welfare dependency 
                and increasing the well-being of minor children under 
                subsection (b);
                    ``(C) the Federal share of any State-initiated 
                study approved under subsection (f); and
                    ``(D) an amount determined by the Secretary to be 
                necessary to operate and evaluate demonstration 
                projects, relating to this part, that are in effect or 
                approved under section 1115 as of September 30, 1995, 
                and are continued after such date.
            ``(2) Allocation.--Of the amount appropriated under 
        paragraph (1) for a fiscal year--
                    ``(A) 50 percent shall be allocated for the 
                purposes described in subparagraphs (A) and (B) of 
                paragraph (1), and
                    ``(B) 50 percent shall be allocated for the 
                purposes described in subparagraphs (C) and (D) of 
                paragraph (1).
            ``(3) Demonstrations of innovative strategies.--The 
        Secretary may implement and evaluate demonstrations of 
        innovative and promising strategies which--
                    ``(A) provide one-time capital funds to establish, 
                expand, or replicate programs;
                    ``(B) test performance-based grant-to-loan 
                financing in which programs meeting performance targets 
                receive grants while programs not meeting such targets 
                repay funding on a prorated basis; and
                    ``(C) test strategies in multiple States and types 
                of communities.

``SEC. 414. STUDY BY THE CENSUS BUREAU.

    ``(a) In General.--The Bureau of the Census shall expand the Survey 
of Income and Program Participation as necessary to obtain such 
information as will enable interested persons to evaluate the impact of 
the amendments made by subtitle A of the Personal Responsibility and 
Work Opportunity Act of 1996 on a random national sample of recipients 
of assistance under State programs funded under this part and (as 
appropriate) other low income families, and in doing so, shall pay 
particular attention to the issues of out-of-wedlock birth, welfare 
dependency, the beginning and end of welfare spells, and the causes of 
repeat welfare spells.
    ``(b) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there are appropriated 
$10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, 2000, 
2001, and 2002 for payment to the Bureau of the Census to carry out 
subsection (a).

``SEC. 415. WAIVERS.

    ``(a) Continuation of Waivers.--
            ``(1) Waivers in effect on date of enactment of welfare 
        reform.--Except as provided in paragraph (3), if any waiver 
        granted to a State under section 1115 or otherwise which 
        relates to the provision of assistance under a State plan under 
        this part (as in effect on September 30, 1995) is in effect as 
        of the date of the enactment of the Personal Responsibility and 
        Work Opportunity Act of 1996, the amendments made by such Act 
        (other than by section 4103(d) of such Act) shall not apply 
        with respect to the State before the expiration (determined 
        without regard to any extensions) of the waiver to the extent 
        such amendments are inconsistent with the waiver.
            ``(2) Waivers granted subsequently.--Except as provided in 
        paragraph (3), if any waiver granted to a State under section 
        1115 or otherwise which relates to the provision of assistance 
        under a State plan under this part (as in effect on September 
        30, 1995) is submitted to the Secretary before the date of the 
        enactment of the Personal Responsibility and Work Opportunity 
        Act of 1996 and approved by the Secretary on or before July 1, 
        1997, and the State demonstrates to the satisfaction of the 
        Secretary that the waiver will not result in Federal 
        expenditures under title IV of this Act (as in effect without 
        regard to the amendments made by the Personal Responsibility 
        and Work Opportunity Act of 1996) that are greater than would 
        occur in the absence of the waiver, the amendments made by the 
        Personal Responsibility and Work Opportunity Act of 1996 (other 
        than by section 4103(d) of such Act) shall not apply with 
        respect to the State before the expiration (determined without 
        regard to any extensions) of the waiver to the extent the 
        amendments made by the Personal Responsibility and Work 
        Opportunity Act of 1996 are inconsistent with the waiver.
            ``(3) Financing limitation.--Notwithstanding any other 
        provision of law, beginning with fiscal year 1996, a State 
        operating under a waiver described in paragraph (1) shall be 
        entitled to payment under section 403 for the fiscal year, in 
lieu of any other payment provided for in the waiver.
    ``(b) State Option To Terminate Waiver.--
            ``(1) In general.--A State may terminate a waiver described 
        in subsection (a) before the expiration of the waiver.
            ``(2) Report.--A State which terminates a waiver under 
        paragraph (1) shall submit a report to the Secretary 
        summarizing the waiver and any available information concerning 
        the result or effect of the waiver.
            ``(3) Hold harmless provision.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, a State that, not later than the date 
                described in subparagraph (B), submits a written 
                request to terminate a waiver described in subsection 
                (a) shall be held harmless for accrued cost neutrality 
                liabilities incurred under the waiver.
                    ``(B) Date described.--The date described in this 
                subparagraph is 90 days following the adjournment of 
                the first regular session of the State legislature that 
                begins after the date of the enactment of the Personal 
                Responsibility and Work Opportunity Act of 1996.
    ``(c) Secretarial Encouragement of Current Waivers.--The Secretary 
shall encourage any State operating a waiver described in subsection 
(a) to continue the waiver and to evaluate, using random sampling and 
other characteristics of accepted scientific evaluations, the result or 
effect of the waiver.
    ``(d) Continuation of Individual Waivers.--A State may elect to 
continue 1 or more individual waivers described in subsection (a).

``SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

    ``The programs under this part and part D shall be administered by 
an Assistant Secretary for Family Support within the Department of 
Health and Human Services, who shall be appointed by the President, by 
and with the advice and consent of the Senate, and who shall be in 
addition to any other Assistant Secretary of Health and Human Services 
provided for by law.

``SEC. 417. LIMITATION ON FEDERAL AUTHORITY.

    ``No officer or employee of the Federal Government may regulate the 
conduct of States under this part or enforce any provision of this 
part, except to the extent expressly provided in this part.''; and
            (2) by inserting after such section 418 the following:

``SEC. 419. DEFINITIONS.

    ``As used in this part:
            ``(1) Adult.--The term `adult' means an individual who is 
        not a minor child.
            ``(2) Minor child.--The term `minor child' means an 
        individual who--
                    ``(A) has not attained 18 years of age; or
                    ``(B) has not attained 19 years of age and is a 
                full-time student in a secondary school (or in the 
                equivalent level of vocational or technical training).
            ``(3) Fiscal year.--The term `fiscal year' means any 12-
        month period ending on September 30 of a calendar year.
            ``(4) Indian, indian tribe, and tribal organization.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the terms `Indian', `Indian tribe', 
                and `tribal organization' have the meaning given such 
                terms by section 4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b).
                    ``(B) Special rule for indian tribes in alaska.--
                The term `Indian tribe' means, with respect to the 
                State of Alaska, only the Metlakatla Indian Community 
                of the Annette Islands Reserve and the following Alaska 
                Native regional nonprofit corporations:
                            ``(i) Arctic Slope Native Association.
                            ``(ii) Kawerak, Inc.
                            ``(iii) Maniilaq Association.
                            ``(iv) Association of Village Council 
                        Presidents.
                            ``(v) Tanana Chiefs Conference.
                            ``(vi) Cook Inlet Tribal Council.
                            ``(vii) Bristol Bay Native Association.
                            ``(viii) Aleutian and Pribilof Island 
                        Association.
                            ``(ix) Chugachmuit.
                            ``(x) Tlingit Haida Central Council.
                            ``(xi) Kodiak Area Native Association.
                            ``(xii) Copper River Native Association.
            ``(5) State.--Except as otherwise specifically provided, 
        the term `State' means the 50 States of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, and American Samoa.''.
    (b) Grants to Outlying Areas.--Section 1108 (42 U.S.C. 1308) is 
amended--
            (1) by redesignating subsection (c) as subsection (g);
            (2) by striking all that precedes subsection (c) and 
        inserting the following:

``SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS, 
              GUAM, AND AMERICAN SAMOA; LIMITATION ON TOTAL PAYMENTS.

    ``(a) Limitation on Total Payments to Each Territory.--
Notwithstanding any other provision of this Act, the total amount 
certified by the Secretary of Health and Human Services under titles I, 
X, XIV, and XVI, under parts A, B, and E of title IV, and under 
subsection (b) of this section, for payment to any territory for a 
fiscal year shall not exceed the ceiling amount for the territory for 
the fiscal year.
    ``(b) Entitlement to Matching Grant.--
            ``(1) In general.--Each territory shall be entitled to 
        receive from the Secretary for each fiscal year a grant in an 
        amount equal to 75 percent of the amount (if any) by which--
                    ``(A) the total expenditures of the territory 
                during the fiscal year under the territory programs 
                funded under parts A, B, and E of title IV; exceeds
                    ``(B) the sum of--
                            ``(i) the total amount required to be paid 
                        to the territory (other than with respect to 
                        child care) under former section 403 (as in 
                        effect on September 30, 1995) for fiscal year 
                        1995, which shall be determined by applying 
                        subparagraphs (C) and (D) of section 403(a)(1) 
                        to the territory;
                            ``(ii) the total amount required to be paid 
                        to the territory under former section 434 (as 
                        so in effect) for fiscal year 1995; and
                            ``(iii) the total amount expended by the 
                        territory during fiscal year 1995 pursuant to 
                        parts A, B, and F of title IV (as so in 
                        effect), other than for child care.
            ``(2) Use of grant.--Any territory to which a grant is made 
        under paragraph (1) may expend the amount under any program 
        operated or funded under any provision of law specified in 
        subsection (a).
    ``(c) Definitions.--As used in this section:
            ``(1) Territory.--The term `territory' means Puerto Rico, 
        the Virgin Islands, Guam, and American Samoa.
            ``(2) Ceiling amount.--The term `ceiling amount' means, 
        with respect to a territory and a fiscal year, the mandatory 
        ceiling amount with respect to the territory plus the 
        discretionary ceiling amount with respect to the territory, 
        reduced for the fiscal year in accordance with subsection (f).
            ``(3) Mandatory ceiling amount.--The term `mandatory 
        ceiling amount' means--
                    ``(A) $105,538,000 with respect to for Puerto Rico;
                    ``(B) $4,902,000 with respect to Guam;
                    ``(C) $3,742,000 with respect to the Virgin 
                Islands; and
                    ``(D) $1,122,000 with respect to American Samoa.
            ``(4) Discretionary ceiling amount.--The term 
        `discretionary ceiling amount' means, with respect to a 
        territory and a fiscal year, the total amount appropriated 
        pursuant to subsection (d)(3) for the fiscal year for payment 
        to the territory.
            ``(5) Total amount expended by the territory.--The term 
        `total amount expended by the territory'--
                    ``(A) does not include expenditures during the 
                fiscal year from amounts made available by the Federal 
                Government; and
                    ``(B) when used with respect to fiscal year 1995, 
                also does not include--
                            ``(i) expenditures during fiscal year 1995 
                        under subsection (g) or (i) of section 402 (as 
                        in effect on September 30, 1995); or
                            ``(ii) any expenditures during fiscal year 
                        1995 for which the territory (but for section 
                        1108, as in effect on September 30, 1995) would 
                        have received reimbursement from the Federal 
                        Government.
    ``(d) Discretionary Grants.--
            ``(1) In general.--The Secretary shall make a grant to each 
        territory for any fiscal year in the amount appropriated 
        pursuant to paragraph (3) for the fiscal year for payment to 
        the territory.
            ``(2) Use of grant.--Any territory to which a grant is made 
        under paragraph (1) may expend the amount under any program 
        operated or funded under any provision of law specified in 
        subsection (a).
            ``(3) Limitation on authorization of appropriations.--For 
        grants under paragraph (1), there are authorized to be 
        appropriated to the Secretary for each fiscal year--
                    ``(A) $7,951,000 for payment to Puerto Rico;
                    ``(B) $345,000 for payment to Guam;
                    ``(C) $275,000 for payment to the Virgin Islands; 
                and
                    ``(D) $190,000 for payment to American Samoa.
    ``(e) Authority to Transfer Funds Among Programs.--Notwithstanding 
any other provision of this Act, any territory to which an amount is 
paid under any provision of law specified in subsection (a) may use 
part or all of the amount to carry out any program operated by the 
territory, or funded, under any other such provision of law.
    ``(f) Maintenance of Effort.--The ceiling amount with respect to a 
territory shall be reduced for a fiscal year by an amount equal to the 
amount (if any) by which--
            ``(1) the total amount expended by the territory under all 
        programs of the territory operated pursuant to the provisions 
        of law specified in subsection (a) (as such provisions were in 
        effect for fiscal year 1995) for fiscal year 1995; exceeds
            ``(2) the total amount expended by the territory under all 
        programs of the territory that are funded under the provisions 
        of law specified in subsection (a) for the fiscal year that 
        immediately precedes the fiscal year referred to in the matter 
        preceding paragraph (1).''; and
            (3) by striking subsections (d) and (e).
    (c) Repeal of Provisions Requiring Reduction of Medicaid Payments 
to States That Reduce Welfare Payment Levels.--
            (1) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by 
        striking paragraph (9).
            (2) Section 1902 (42 U.S.C. 1396a) is amended by striking 
        subsection (c).
    (d) Elimination of Child Care Programs Under the Social Security 
Act.--
            (1) AFDC and transitional child care programs.--Section 402 
        (42 U.S.C. 602) is amended by striking subsection (g).
            (2) At-risk child care program.--
                    (A) Authorization.--Section 402 (42 U.S.C. 602) is 
                amended by striking subsection (i).
                    (B) Funding provisions.--Section 403 (42 U.S.C. 
                603) is amended by striking subsection (n).

SEC. 4104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRIVATE 
              ORGANIZATIONS.

    (a) In General.--
            (1) State options.--A State may--
                    (A) administer and provide services under the 
                programs described in subparagraphs (A) and (B)(i) of 
                paragraph (2) through contracts with charitable, 
                religious, or private organizations; and
                    (B) provide beneficiaries of assistance under the 
                programs described in subparagraphs (A) and (B)(ii) of 
                paragraph (2) with certificates, vouchers, or other 
                forms of disbursement which are redeemable with such 
                organizations.
            (2) Programs described.--The programs described in this 
        paragraph are the following programs:
                    (A) A State program funded under part A of title IV 
                of the Social Security Act (as amended by section 
                4103(a) of this Act).
                    (B) Any other program established or modified under 
                subtitle A, B, or F of this title, that--
                            (i) permits contracts with organizations; 
                        or
                            (ii) permits certificates, vouchers, or 
                        other forms of disbursement to be provided to 
                        beneficiaries, as a means of providing 
                        assistance.
    (b) Religious Organizations.--The purpose of this section is to 
allow States to contract with religious organizations, or to allow 
religious organizations to accept certificates, vouchers, or other 
forms of disbursement under any program described in subsection (a)(2), 
on the same basis as any other nongovernmental provider without 
impairing the religious character of such organizations, and without 
diminishing the religious freedom of beneficiaries of assistance funded 
under such program.
    (c) Nondiscrimination Against Religious Organizations.--In the 
event a State exercises its authority under subsection (a), religious 
organizations are eligible, on the same basis as any other private 
organization, as contractors to provide assistance, or to accept 
certificates, vouchers, or other forms of disbursement, under any 
program described in subsection (a)(2) so long as the programs are 
implemented consistent with the Establishment Clause of the United 
States Constitution. Except as provided in subsection (k), neither the 
Federal Government nor a State receiving funds under such programs 
shall discriminate against an organization which is or applies to be a 
contractor to provide assistance, or which accepts certificates, 
vouchers, or other forms of disbursement, on the basis that the 
organization has a religious character.
    (d) Religious Character and Freedom.--
            (1) Religious organizations.--A religious organization with 
        a contract described in subsection (a)(1)(A), or which accepts 
        certificates, vouchers, or other forms of disbursement under 
        subsection (a)(1)(B), shall retain its independence from 
        Federal, State, and local governments, including such 
        organization's control over the definition, development, 
        practice, and expression of its religious beliefs.
            (2) Additional safeguards.--Neither the Federal Government 
        nor a State shall require a religious organization to--
                    (A) alter its form of internal governance; or
                    (B) remove religious art, icons, scripture, or 
                other symbols;
        in order to be eligible to contract to provide assistance, or 
        to accept certificates, vouchers, or other forms of 
        disbursement, funded under a program described in subsection 
        (a)(2).
    (e) Rights of Beneficiaries of Assistance.--
            (1) In general.--If an individual described in paragraph 
        (2) has an objection to the religious character of the 
        organization or institution from which the individual receives, 
        or would receive, assistance funded under any program described 
in subsection (a)(2), the State in which the individual resides shall 
provide such individual (if otherwise eligible for such assistance) 
within a reasonable period of time after the date of such objection 
with assistance from an alternative provider that is accessible to the 
individual and the value of which is not less than the value of the 
assistance which the individual would have received from such 
organization.
            (2) Individual described.--An individual described in this 
        paragraph is an individual who receives, applies for, or 
        requests to apply for, assistance under a program described in 
        subsection (a)(2).
    (f) Employment Practices.--A religious organization's exemption 
provided under section 702 of the Civil Rights Act of 1964 (42 U.S.C. 
2000e-1a) regarding employment practices shall not be affected by its 
participation in, or receipt of funds from, programs described in 
subsection (a)(2).
    (g) Nondiscrimination Against Beneficiaries.--Except as otherwise 
provided in law, a religious organization shall not discriminate 
against an individual in regard to rendering assistance funded under 
any program described in subsection (a)(2) on the basis of religion, a 
religious belief, or refusal to actively participate in a religious 
practice.
    (h) Fiscal Accountability.--
            (1) In general.--Except as provided in paragraph (2), any 
        religious organization contracting to provide assistance funded 
        under any program described in subsection (a)(2) shall be 
        subject to the same regulations as other contractors to account 
        in accord with generally accepted auditing principles for the 
        use of such funds provided under such programs.
            (2) Limited audit.--If such organization segregates Federal 
        funds provided under such programs into separate accounts, then 
        only the financial assistance provided with such funds shall be 
        subject to audit.
    (i) Compliance.--Any party which seeks to enforce its rights under 
this section may assert a civil action for injunctive relief 
exclusively in an appropriate State court against the entity or agency 
that allegedly commits such violation.
    (j) Limitations on Use of Funds for Certain Purposes.--No funds 
provided directly to institutions or organizations to provide services 
and administer programs under subsection (a)(1)(A) shall be expended 
for sectarian worship, instruction, or proselytization.
    (k) Preemption.--Nothing in this section shall be construed to 
preempt any provision of a State constitution or State statute that 
prohibits or restricts the expenditure of State funds in or by 
religious organizations.

SEC. 4105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS FOR THEIR 
              GRANDCHILDREN.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Commerce, in carrying out 
section 141 of title 13, United States Code, shall expand the data 
collection efforts of the Bureau of the Census (in this section 
referred to as the ``Bureau'') to enable the Bureau to collect 
statistically significant data, in connection with its decennial census 
and its mid-decade census, concerning the growing trend of grandparents 
who are the primary caregivers for their grandchildren.
    (b) Expanded Census Question.--In carrying out subsection (a), the 
Secretary of Commerce shall expand the Bureau's census question that 
details households which include both grandparents and their 
grandchildren. The expanded question shall be formulated to distinguish 
between the following households:
            (1) A household in which a grandparent temporarily provides 
        a home for a grandchild for a period of weeks or months during 
        periods of parental distress.
            (2) A household in which a grandparent provides a home for 
        a grandchild and serves as the primary caregiver for the 
        grandchild.

SEC. 4106. REPORT ON DATA PROCESSING.

    (a) In General.--Within 6 months after the date of the enactment of 
this Act, the Secretary of Health and Human Services shall prepare and 
submit to the Congress a report on--
            (1) the status of the automated data processing systems 
        operated by the States to assist management in the 
        administration of State programs under part A of title IV of 
        the Social Security Act (whether in effect before or after 
        October 1, 1995); and
            (2) what would be required to establish a system capable 
        of--
                    (A) tracking participants in public programs over 
                time; and
                    (B) checking case records of the States to 
                determine whether individuals are participating in 
                public programs of 2 or more States.
    (b) Preferred Contents.--The report required by subsection (a) 
should include--
            (1) a plan for building on the automated data processing 
        systems of the States to establish a system with the 
        capabilities described in subsection (a)(2); and
            (2) an estimate of the amount of time required to establish 
        such a system and of the cost of establishing such a system.

SEC. 4107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

    (a) Study.--The Secretary shall, in cooperation with the States, 
study and analyze outcomes measures for evaluating the success of the 
States in moving individuals out of the welfare system through 
employment as an alternative to the minimum participation rates 
described in section 407 of the Social Security Act. The study shall 
include a determination as to whether such alternative outcomes 
measures should be applied on a national or a State-by-State basis and 
a preliminary assessment of the effects of section 409(a)(7)(C) of such 
Act.
    (b) Report.--Not later than September 30, 1998, the Secretary shall 
submit to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives a report containing the 
findings of the study required by subsection (a).

SEC. 4108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

    (a) Amendments to Title II.--
            (1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), 
        as so redesignated by section 321(a)(9)(B) of the Social 
        Security Independence and Program Improvements Act of 1994, is 
        amended--
                    (A) by inserting ``an agency administering a 
                program funded under part A of title IV or'' before 
                ``an agency operating''; and
                    (B) by striking ``A or D of title IV of this Act'' 
                and inserting ``D of such title''.
            (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by 
        inserting ``under a State program funded under'' before ``part 
        A of title IV''.
    (b) Amendments to Part D of Title IV.--
            (1) Section 451 (42 U.S.C. 651) is amended by striking 
        ``aid'' and inserting ``assistance under a State program 
        funded''.
            (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
        amended--
                    (A) by striking ``aid to families with dependent 
                children'' and inserting ``assistance under a State 
                program funded under part A'';
                    (B) by striking ``such aid'' and inserting ``such 
                assistance''; and
                    (C) by striking ``under section 402(a)(26) or'' and 
                inserting ``pursuant to section 408(a)(4) or under 
                section''.
            (3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is 
        amended--
                    (A) by striking ``aid under a State plan approved'' 
                and inserting ``assistance under a State program 
                funded''; and
                    (B) by striking ``in accordance with the standards 
                referred to in section 402(a)(26)(B)(ii)'' and 
                inserting ``by the State''.
            (4) Section 452(b) (42 U.S.C. 652(b)) is amended in the 
        first sentence by striking ``aid under the State plan approved 
        under part A'' and inserting ``assistance under the State 
        program funded under part A''.
            (5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is 
        amended by striking ``1115(c)'' and inserting ``1115(b)''.
            (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 
        652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid 
        under the State's plan approved under part A or E'' and 
        inserting ``assistance is being provided under the State 
        program funded under part A''.
            (7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended in the matter following clause (iii) by striking ``aid 
        was being paid under the State's plan approved under part A or 
        E'' and inserting ``assistance was being provided under the 
        State program funded under part A''.
            (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in 
        the matter following subparagraph (B)--
                    (A) by striking ``who is a dependent child'' and 
                inserting ``with respect to whom assistance is being 
                provided under the State program funded under part A'';
                    (B) by inserting ``by the State'' after ``found''; 
                and
                    (C) by striking ``to have good cause for refusing 
                to cooperate under section 402(a)(26)'' and inserting 
                ``to qualify for a good cause or other exception to 
                cooperation pursuant to section 454(29)''.
            (9) Section 452(h) (42 U.S.C. 652(h)) is amended by 
        striking ``under section 402(a)(26)'' and inserting ``pursuant 
        to section 408(a)(4)''.
            (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by 
        striking ``aid under part A of this title'' and inserting 
        ``assistance under a State program funded under part A''.
            (11) Section 454(5)(A) (42 U.S.C. 654(5)(A))) is amended--
                    (A) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 408(a)(4)''; and
                    (B) by striking ``; except that this paragraph 
                shall not apply to such payments for any month 
                following the first month in which the amount collected 
                is sufficient to make such family ineligible for 
                assistance under the State plan approved under part 
                A;'' and inserting a comma.
            (12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended by 
        striking ``aid under a State plan approved'' and inserting 
        ``assistance under a State program funded''.
            (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by 
        striking ``under section 402(a)(26)''.
            (14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
        amended by striking ``402(a)(26)'' and inserting ``408(a)(3)''.
            (15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by 
        striking ``aid'' and inserting ``assistance under a State 
        program funded''.
            (16) Section 469(a) (42 U.S.C. 669(a)) is amended--
                    (A) by striking ``aid under plans approved'' and 
                inserting ``assistance under State programs funded''; 
                and
                    (B) by striking ``such aid'' and inserting ``such 
                assistance''.
    (c) Repeal of Part F of Title IV.--Part F of title IV (42 U.S.C. 
681-687) is repealed.
    (d) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C. 
1202(a)(7)) is amended by striking ``aid to families with dependent 
children under the State plan approved under section 402 of this Act'' 
and inserting ``assistance under a State program funded under part A of 
title IV''.
    (e) Amendments to Title XI.--
            (1) Section 1109 (42 U.S.C. 1309) is amended by striking 
        ``or part A of title IV,''.
            (2) Section 1115 (42 U.S.C. 1315) is amended--
                    (A) in subsection (a)(2)--
                            (i) by inserting ``(A)'' after ``(2)'';
                            (ii) by striking ``403,'';
                            (iii) by striking the period at the end and 
                        inserting ``, and''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
            ``(B) costs of such project which would not otherwise be a 
        permissible use of funds under part A of title IV and which are 
        not included as part of the costs of projects under section 
        1110, shall to the extent and for the period prescribed by the 
        Secretary, be regarded as a permissible use of funds under such 
        part.''; and
                    (B) in subsection (c)(3), by striking ``the program 
                of aid to families with dependent children'' and 
                inserting ``part A of such title''.
            (3) Section 1116 (42 U.S.C. 1316) is amended--
                    (A) in each of subsections (a)(1), (b), and (d), by 
                striking ``or part A of title IV,''; and
                    (B) in subsection (a)(3), by striking ``404,''.
            (4) Section 1118 (42 U.S.C. 1318) is amended--
                    (A) by striking ``403(a),'';
                    (B) by striking ``and part A of title IV,''; and
                    (C) by striking ``, and shall, in the case of 
                American Samoa, mean 75 per centum with respect to part 
                A of title IV''.
            (5) Section 1119 (42 U.S.C. 1319) is amended--
                    (A) by striking ``or part A of title IV''; and
                    (B) by striking ``403(a),''.
            (6) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by 
        striking ``or part A of title IV,''.
            (7) Section 1136 (42 U.S.C. 1320b-6) is repealed.
            (8) Section 1137 (42 U.S.C. 1320b-7) is amended--
                    (A) in subsection (b), by striking paragraph (1) 
                and inserting the following:
            ``(1) any State program funded under part A of title IV of 
        this Act;''; and
                    (B) in subsection (d)(1)(B)--
                            (i) by striking ``In this subsection--'' 
                        and all that follows through ``(ii) in'' and 
                        inserting ``In this subsection, in'';
                            (ii) by redesignating subclauses (I), (II), 
                        and (III) as clauses (i), (ii), and (iii); and
                            (iii) by moving such redesignated material 
                        2 ems to the left.
    (f) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C. 
1352(a)(7)) is amended by striking ``aid to families with dependent 
children under the State plan approved under section 402 of this Act'' 
and inserting ``assistance under a State program funded under part A of 
title IV''.
    (g) Amendment to Title XVI as in Effect With Respect to the 
Territories.--Section 1602(a)(11), as in effect without regard to the 
amendment made by section 301 of the Social Security Amendments of 1972 
(42 U.S.C. 1382 note), is amended by striking ``aid under the State 
plan approved'' and inserting ``assistance under a State program 
funded''.
    (h) Amendment to Title XVI as in Effect With Respect to the 
States.--Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is amended to 
read as follows: ``(A) a State program funded under part A of title 
IV,''.
    (i) Amendment to Title XIX.--Section 1902(j) (42 U.S.C. 1396a(j)) 
is amended by striking ``1108(c)'' and inserting ``1108(g)''.

SEC. 4109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 AND 
              RELATED PROVISIONS.

    (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is 
amended--
            (1) in the second sentence of subsection (a), by striking 
        ``plan approved'' and all that follows through ``title IV of 
        the Social Security Act'' and inserting ``program funded under 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.)'';
            (2) in subsection (d)--
                    (A) in paragraph (5), by striking ``assistance to 
                families with dependent children'' and inserting 
                ``assistance under a State program funded''; and
                    (B) by striking paragraph (13) and redesignating 
                paragraphs (14), (15), and (16) as paragraphs (13), 
                (14), and (15), respectively;
            (3) in subsection (j), by striking ``plan approved under 
        part A of title IV of such Act (42 U.S.C. 601 et seq.)'' and 
        inserting ``program funded under part A of title IV of the Act 
        (42 U.S.C. 601 et seq.)''; and
            (4) by striking subsection (m).
    (b) Section 6 of such Act (7 U.S.C. 2015) is amended--
            (1) in subsection (c)(5), by striking ``the State plan 
        approved'' and inserting ``the State program funded''; and
            (2) in subsection (e)(6), by striking ``aid to families 
        with dependent children'' and inserting ``benefits under a 
        State program funded''.
    (c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended 
by striking ``State plans under the Aid to Families with Dependent 
Children Program under'' and inserting ``State programs funded under 
part A of''.
    (d) Section 17 of such Act (7 U.S.C. 2026) is amended--
            (1) in the first sentence of subsection (b)(1)(A), by 
        striking ``to aid to families with dependent children under 
        part A of title IV of the Social Security Act'' and inserting 
        ``or are receiving assistance under a State program funded 
        under part A of title IV of the Social Security Act (42 U.S.C. 
        601 et seq.)''; and
            (2) in subsection (b)(3), by adding at the end the 
        following new subparagraph:
    ``(I) The Secretary may not grant a waiver under this paragraph on 
or after October 1, 1995. Any reference in this paragraph to a 
provision of title IV of the Social Security Act shall be deemed to be 
a reference to such provision as in effect on September 30, 1995.'';
    (e) Section 20 of such Act (7 U.S.C. 2029) is amended--
            (1) in subsection (a)(2)(B) by striking ``operating--'' and 
        all that follows through ``(ii) any other'' and inserting 
        ``operating any''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(b)(1) A household'' and 
                        inserting ``(b) A household''; and
                            (ii) in subparagraph (B), by striking 
                        ``training program'' and inserting 
                        ``activity'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating subparagraphs (A) through (F) 
                as paragraphs (1) through (6), respectively.
    (f) Section 5(h)(1) of the Agriculture and Consumer Protection Act 
of 1973 (Public Law 93-186; 7 U.S.C. 612c note) is amended by striking 
``the program for aid to families with dependent children'' and 
inserting ``the State program funded''.
    (g) Section 9 of the National School Lunch Act (42 U.S.C. 1758) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)(C)(ii)(II)--
                            (i) by striking ``program for aid to 
                        families with dependent children'' and 
                        inserting ``State program funded''; and
                            (ii) by inserting before the period at the 
                        end the following: ``that the Secretary 
                        determines complies with standards established 
                        by the Secretary that ensure that the standards 
                        under the State program are comparable to or 
more restrictive than those in effect on June 1, 1995''; and
                    (B) in paragraph (6)--
                            (i) in subparagraph (A)(ii)--
                                    (I) by striking ``an AFDC 
                                assistance unit (under the aid to 
                                families with dependent children 
                                program authorized'' and inserting ``a 
                                family (under the State program 
                                funded''; and
                                    (II) by striking ``, in a State'' 
                                and all that follows through 
                                ``9902(2)))'' and inserting ``that the 
                                Secretary determines complies with 
                                standards established by the Secretary 
                                that ensure that the standards under 
                                the State program are comparable to or 
                                more restrictive than those in effect 
                                on June 1, 1995''; and
                            (ii) in subparagraph (B), by striking ``aid 
                        to families with dependent children'' and 
                        inserting ``assistance under the State program 
                        funded under part A of title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.) that the 
                        Secretary determines complies with standards 
                        established by the Secretary that ensure that 
                        the standards under the State program are 
                        comparable to or more restrictive than those in 
                        effect on June 1, 1995''; and
            (2) in subsection (d)(2)(C)--
                    (A) by striking ``program for aid to families with 
                dependent children'' and inserting ``State program 
                funded''; and
                    (B) by inserting before the period at the end the 
                following: ``that the Secretary determines complies 
                with standards established by the Secretary that ensure 
                that the standards under the State program are 
                comparable to or more restrictive than those in effect 
                on June 1, 1995''.
    (h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
            (1) by striking ``program for aid to families with 
        dependent children established'' and inserting ``State program 
        funded''; and
            (2) by inserting before the semicolon the following: ``that 
        the Secretary determines complies with standards established by 
        the Secretary that ensure that the standards under the State 
        program are comparable to or more restrictive than those in 
        effect on June 1, 1995''.

SEC. 4110. CONFORMING AMENDMENTS TO OTHER LAWS.

    (a) Subsection (b) of section 508 of the Unemployment Compensation 
Amendments of 1976 (42 U.S.C. 603a; Public Law 94-566; 90 Stat. 2689) 
is amended to read as follows:
    ``(b) Provision for Reimbursement of Expenses.--For purposes of 
section 455 of the Social Security Act, expenses incurred to reimburse 
State employment offices for furnishing information requested of such 
offices--
            ``(1) pursuant to the third sentence of section 3(a) of the 
        Act entitled `An Act to provide for the establishment of a 
        national employment system and for cooperation with the States 
        in the promotion of such system, and for other purposes', 
        approved June 6, 1933 (29 U.S.C. 49b(a)), or
            ``(2) by a State or local agency charged with the duty of 
        carrying a State plan for child support approved under part D 
        of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the 
administration of such State plan.''.
    (b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is repealed.
    (c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is repealed.
    (d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 
(42 U.S.C. 602 note), relating to treatment under AFDC of certain 
rental payments for federally assisted housing, is repealed.
    (e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 
1982 (42 U.S.C. 602 note) is repealed.
    (f) Section 202(d) of the Social Security Amendments of 1967 (81 
Stat. 882; 42 U.S.C. 602 note) is repealed.
    (g) Section 903 of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988 (42 U.S.C. 11381 note), relating to 
demonstration projects to reduce number of AFDC families in welfare 
hotels, is amended--
            (1) in subsection (a), by striking ``aid to families with 
        dependent children under a State plan approved'' and inserting 
        ``assistance under a State program funded''; and
            (2) in subsection (c), by striking ``aid to families with 
        dependent children in the State under a State plan approved'' 
        and inserting ``assistance in the State under a State program 
        funded''.
    (h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is 
amended--
            (1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by 
        striking ``(Aid to Families with Dependent Children)''; and
            (2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by 
        striking ``aid to families with dependent children under a 
        State plan approved'' and inserting ``assistance under a State 
        program funded''.
    (i) The Carl D. Perkins Vocational and Applied Technology Education 
Act (20 U.S.C. 2301 et seq.) is amended--
            (1) in section 231(d)(3)(A)(ii) (20 U.S.C. 
        2341(d)(3)(A)(ii)), by striking ``The program for aid to 
        dependent children'' and inserting ``The State program 
        funded'';
            (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by 
        striking ``the program for aid to families with dependent 
        children'' and inserting ``the State program funded''; and
            (3) in section 521(14)(B)(iii) (20 U.S.C. 
        2471(14)(B)(iii)), by striking ``the program for aid to 
        families with dependent children'' and inserting ``the State 
        program funded''.
    (j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 
2701 et seq.) is amended--
            (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by 
        striking ``Aid to Families with Dependent Children program'' 
        and inserting ``State program funded under part A of title IV 
        of the Social Security Act'';
            (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by 
        striking ``the program of aid to families with dependent 
        children under a State plan approved under'' and inserting ``a 
        State program funded under part A of''; and
            (3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--
                    (A) in subparagraph (A)(xi), by striking ``Aid to 
                Families with Dependent Children benefits'' and 
                inserting ``assistance under a State program funded 
                under part A of title IV of the Social Security Act''; 
                and
                    (B) in subparagraph (B)(viii), by striking ``Aid to 
                Families with Dependent Children'' and inserting 
                ``assistance under the State program funded under part 
                A of title IV of the Social Security Act''.
    (k) The 4th proviso of chapter VII of title I of Public Law 99-88 
(25 U.S.C. 13d-1) is amended to read as follows: ``Provided further, 
That general assistance payments made by the Bureau of Indian Affairs 
shall be made--
            ``(1) after April 29, 1985, and before October 1, 1995, on 
        the basis of Aid to Families with Dependent Children (AFDC) 
        standards of need; and
            ``(2) on and after October 1, 1995, on the basis of 
        standards of need established under the State program funded 
        under part A of title IV of the Social Security Act,
except that where a State ratably reduces its AFDC or State program 
payments, the Bureau shall reduce general assistance payments in such 
State by the same percentage as the State has reduced the AFDC or State 
program payment.''.
    (l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is 
amended--
            (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking 
        all that follows ``agency as'' and inserting ``being eligible 
for financial assistance under part A of title IV of the Social 
Security Act and as having continually received such financial 
assistance during the 90-day period which immediately precedes the date 
on which such individual is hired by the employer.'';
            (2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by 
        striking ``eligibility for aid or services,'' and all that 
        follows through ``children approved'' and inserting 
        ``eligibility for assistance, or the amount of such assistance, 
        under a State program funded'';
            (3) in section 6103(l)(7)(D)(i) (26 U.S.C. 
        6103(l)(7)(D)(i)), by striking ``aid to families with dependent 
        children provided under a State plan approved'' and inserting 
        ``a State program funded'';
            (4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))--
                    (A) by striking ``(c) or (d)'' each place it 
                appears and inserting ``(c), (d), or (e)''; and
                    (B) by adding at the end of subparagraph (B) the 
                following new sentence: ``Any return information 
                disclosed with respect to section 6402(e) shall only be 
                disclosed to officers and employees of the State agency 
                requesting such information.'';
            (5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the 
        matter preceding subparagraph (A)--
                    (A) by striking ``(5), (10)'' and inserting 
                ``(5)''; and
                    (B) by striking ``(9), or (12)'' and inserting 
                ``(9), (10), or (12)'';
            (6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), 
        by striking ``(relating to aid to families with dependent 
        children)'';
            (7) in section 6402 (26 U.S.C. 6402)--
                    (A) in subsection (a), by striking ``(c) and (d)'' 
                and inserting ``(c), (d), and (e)'';
                    (B) by redesignating subsections (e) through (i) as 
                subsections (f) through (j), respectively; and
                    (C) by inserting after subsection (d) the 
                following:
    ``(e) Collection of Overpayments Under Title IV-A of the Social 
Security Act.--The amount of any overpayment to be refunded to the 
person making the overpayment shall be reduced (after reductions 
pursuant to subsections (c) and (d), but before a credit against future 
liability for an internal revenue tax) in accordance with section 
405(e) of the Social Security Act (concerning recovery of overpayments 
to individuals under State plans approved under part A of title IV of 
such Act).''; and
            (8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by 
        striking ``aid to families with dependent children'' and 
        inserting ``assistance under a State program funded under part 
        A of title IV of the Social Security Act''.
    (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is 
amended by striking ``State plan approved under part A of title IV'' 
and inserting ``State program funded under part A of title IV''.
    (n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is 
amended--
            (1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by 
        striking ``(42 U.S.C. 601 et seq.)'';
            (2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by 
        striking ``State aid to families with dependent children 
        records,'' and inserting ``records collected under the State 
        program funded under part A of title IV of the Social Security 
        Act,'';
            (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--
                    (A) by striking ``the JOBS program'' and inserting 
                ``the work activities required under title IV of the 
                Social Security Act''; and
                    (B) by striking the second sentence;
            (4) in section 123(c) (29 U.S.C. 1533(c))--
                    (A) in paragraph (1)(E), by repealing clause (vi); 
                and
                    (B) in paragraph (2)(D), by repealing clause (v);
            (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by 
        striking ``, including recipients under the JOBS program'';
            (6) in subparagraphs (A) and (B) of section 204(a)(1) (29 
        U.S.C. 1604(a)(1) (A) and (B)), by striking ``(such as the JOBS 
        program)'' each place it appears;
            (7) in section 205(a) (29 U.S.C. 1605(a)), by striking 
        paragraph (4) and inserting the following:
            ``(4) the portions of title IV of the Social Security Act 
        relating to work activities;'';
            (8) in section 253 (29 U.S.C. 1632)--
                    (A) in subsection (b)(2), by repealing subparagraph 
                (C); and
                    (B) in paragraphs (1)(B) and (2)(B) of subsection 
                (c), by striking ``the JOBS program or'' each place it 
                appears;
            (9) in section 264 (29 U.S.C. 1644)--
                    (A) in subparagraphs (A) and (B) of subsection 
                (b)(1), by striking ``(such as the JOBS program)'' each 
                place it appears; and
                    (B) in subparagraphs (A) and (B) of subsection 
                (d)(3), by striking ``and the JOBS program'' each place 
                it appears;
            (10) in section 265(b) (29 U.S.C. 1645(b)), by striking 
        paragraph (6) and inserting the following:
            ``(6) the portion of title IV of the Social Security Act 
        relating to work activities;'';
            (11) in the second sentence of section 429(e) (29 U.S.C. 
        1699(e)), by striking ``and shall be in an amount that does not 
        exceed the maximum amount that may be provided by the State 
        pursuant to section 402(g)(1)(C) of the Social Security Act (42 
        U.S.C. 602(g)(1)(C))'';
            (12) in section 454(c) (29 U.S.C. 1734(c)), by striking 
        ``JOBS and'';
            (13) in section 455(b) (29 U.S.C. 1735(b)), by striking 
        ``the JOBS program,'';
            (14) in section 501(1) (29 U.S.C. 1791(1)), by striking 
        ``aid to families with dependent children under part A of title 
        IV of the Social Security Act (42 U.S.C. 601 et seq.)'' and 
        inserting ``assistance under the State program funded under 
        part A of title IV of the Social Security Act'';
            (15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by 
        striking ``aid to families with dependent children'' and 
        inserting ``assistance under the State program funded'';
            (16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by 
        striking ``aid to families with dependent children'' and 
        inserting ``assistance under the State program funded''; and
            (17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))--
                    (A) in clause (v), by striking the semicolon and 
                inserting ``; and''; and
                    (B) by striking clause (vi).
    (o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is 
amended to read as follows:
            ``(iv) assistance under a State program funded under part A 
        of title IV of the Social Security Act;''.
    (p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read 
as follows:
                            ``(i) assistance under the State program 
                        funded under part A of title IV of the Social 
                        Security Act;''.
    (q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 
602 note) is amended--
            (1) by striking ``(A)''; and
            (2) by striking subparagraphs (B) and (C).
    (r) The Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 900 et seq.) is amended--
            (1) in the first section 255(h) (2 U.S.C. 905(h)), by 
        striking ``Aid to families with dependent children (75-0412-0-
        1-609);'' and inserting ``Block grants to States for temporary 
        assistance for needy families;''; and
            (2) in section 256 (2 U.S.C. 906)--
                    (A) by striking subsection (k); and
                    (B) by redesignating subsection (l) as subsection 
                (k).
    (s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
amended--
            (1) in section 210(f) (8 U.S.C. 1160(f)), by striking ``aid 
        under a State plan approved under'' each place it appears and 
        inserting ``assistance under a State program funded under'';
            (2) in section 245A(h) (8 U.S.C. 1255a(h))--
                    (A) in paragraph (1)(A)(i), by striking ``program 
                of aid to families with dependent children'' and 
                inserting ``State program of assistance''; and
                    (B) in paragraph (2)(B), by striking ``aid to 
                families with dependent children'' and inserting 
                ``assistance under a State program funded under part A 
                of title IV of the Social Security Act''; and
            (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking 
        ``State plan approved'' and inserting ``State program funded''.
    (t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 
9835(a)(4)(B)(i)) is amended by striking ``program of aid to families 
with dependent children under a State plan approved'' and inserting 
``State program of assistance funded''.
    (u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 
92; 25 U.S.C. 639) is repealed.
    (v) Subparagraph (E) of section 213(d)(6) of the School-To-Work 
Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as 
follows:
                    ``(E) part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.) relating to work activities;''.
    (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, 
is amended by striking ``section 464 or 1137 of the Social Security 
Act'' and inserting ``section 404(e), 464, or 1137 of the Social 
Security Act''.

SEC. 4111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT SOCIAL 
              SECURITY CARD REQUIRED.

    (a) Development.--
            (1) In general.--The Commissioner of Social Security (in 
        this section referred to as the ``Commissioner'') shall, in 
        accordance with this section, develop a prototype of a 
        counterfeit-resistant social security card. Such prototype card 
        shall--
                    (A) be made of a durable, tamper-resistant material 
                such as plastic or polyester,
                    (B) employ technologies that provide security 
                features, such as magnetic stripes, holograms, and 
                integrated circuits, and
                    (C) be developed so as to provide individuals with 
                reliable proof of citizenship or legal resident alien 
                status.
            (2) Assistance by attorney general.--The Attorney General 
        of the United States shall provide such information and 
        assistance as the Commissioner deems necessary to enable the 
        Commissioner to comply with this section.
    (b) Study and Report.--
            (1) In general.--The Commissioner shall conduct a study and 
        issue a report to Congress which examines different methods of 
        improving the social security card application process.
            (2) Elements of study.--The study shall include an 
        evaluation of the cost and work load implications of issuing a 
        counterfeit-resistant social security card for all individuals 
        over a 3-, 5-, and 10-year period. The study shall also 
        evaluate the feasibility and cost implications of imposing a 
        user fee for replacement cards and cards issued to individuals 
        who apply for such a card prior to the scheduled 3-, 5-, and 
        10-year phase-in options.
            (3) Distribution of report.--The Commissioner shall submit 
        copies of the report described in this subsection along with a 
facsimile of the prototype card as described in subsection (a) to the 
Committees on Ways and Means and Judiciary of the House of 
Representatives and the Committees on Finance and Judiciary of the 
Senate within 1 year after the date of the enactment of this Act.

SEC. 4112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

    (a) In General.--Whenever an organization that accepts Federal 
funds under this title or the amendments made by this title (other than 
funds provided under title IV, XVI, or XX of the Social Security Act) 
makes any communication that in any way intends to promote public 
support or opposition to any policy of a Federal, State, or local 
government through any broadcasting station, newspaper, magazine, 
outdoor advertising facility, direct mailing, or any other type of 
general public advertising, such communication shall state the 
following: ``This was prepared and paid for by an organization that 
accepts taxpayer dollars.''.
    (b) Failure To Comply.--If an organization makes any communication 
described in subsection (a) and fails to provide the statement required 
by that subsection, such organization shall be ineligible to receive 
Federal funds under this title or the amendments made by this title.
    (c) Definition.--For purposes of this section, the term 
``organization'' means an organization described in section 501(c) of 
the Internal Revenue Code of 1986.
    (d) Effective Dates.--This section shall take effect--
            (1) with respect to printed communications 1 year after the 
        date of enactment of this Act; and
            (2) with respect to any other communication on the date of 
        enactment of this Act.

SEC. 4113. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN LOW-
              INCOME INDIVIDUALS PROGRAM.

    Section 505 of the Family Support Act of 1988 (42 U.S.C. 1315 note) 
is amended--
            (1) in the heading, by striking ``demonstration'';
            (2) by striking ``demonstration'' each place such term 
        appears;
            (3) in subsection (a), by striking ``in each of fiscal 
        years'' and all that follows through ``10'' and inserting 
        ``shall enter into agreements with'';
            (4) in subsection (b)(3), by striking ``aid to families 
        with dependent children under part A of title IV of the Social 
        Security Act'' and inserting ``assistance under the program 
        funded part A of title IV of the Social Security Act of the 
        State in which the individual resides'';
            (5) in subsection (c)--
                    (A) in paragraph (1)(C), by striking ``aid to 
                families with dependent children under title IV of the 
                Social Security Act'' and inserting ``assistance under 
                a State program funded part A of title IV of the Social 
                Security Act'';
                    (B) in paragraph (2), by striking ``aid to families 
                with dependent children under title IV of such Act'' 
                and inserting ``assistance under a State program funded 
                part A of title IV of the Social Security Act'';
            (6) in subsection (d), by striking ``job opportunities and 
        basic skills training program (as provided for under title IV 
        of the Social Security Act)'' and inserting ``the State program 
        funded under part A of title IV of the Social Security Act''; 
        and
            (7) by striking subsections (e) through (g) and inserting 
        the following:
    ``(e) Authorization of Appropriations.--For the purpose of 
conducting projects under this section, there is authorized to be 
appropriated an amount not to exceed $25,000,000 for any fiscal 
year.''.

SEC. 4114. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR TECHNICAL 
              AND CONFORMING AMENDMENTS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Health and Human Services and the Commissioner of 
Social Security, in consultation, as appropriate, with the heads of 
other Federal agencies, shall submit to the appropriate committees of 
Congress a legislative proposal proposing such technical and conforming 
amendments as are necessary to bring the law into conformity with the 
policy embodied in this subtitle.

SEC. 4115. CONFORMING AMENDMENTS TO MEDICAID PROGRAM.

    (a) In General.--Title XIX is amended--
            (1) in section 1931, by inserting ``subject to section 
        1931(a),'' in subsection (a) after ``under this title,'' and by 
        redesignating such section as section 1932; and
            (2) by inserting after section 1930 the following new 
        section:

``continued application of standards and methodologies under part a of 
                    title iv for certain individuals

    ``Sec. 1931. (a) For purposes of applying this title with respect 
to a State, notwithstanding any other provision of this title--
            ``(1) except as provided in paragraphs (2) through (5), any 
        reference in this title (or other provision of law in relation 
        to the operation of this title) to a provision of part A of 
        title IV, or a State plan under such part, shall be considered 
        a reference to such provision or plan as in effect as of July 
        16, 1996, with respect to the State and eligibility for medical 
        assistance under this title shall be determined as if such 
        provision or plan (as in effect as of such date) remained in 
        effect;
            ``(2) any reference in section 1902(a)(5) or 1902(a)(55) to 
        a State plan approved under part A of title IV shall be deemed 
        a reference to a State program funded under such part;
            ``(3) a State may provide that any income standard under 
        the State plan referred to in paragraph (1) may be increased 
        over a period (beginning after July 16, 1996) by a percentage 
        that does not exceed the percentage increase in the consumer 
        price index for all urban consumers (all items; U.S. city 
        average) over such period;
            ``(4) in applying section 1925, medical assistance is 
        required to be provided under such section only if it is 
        required to be provided under section 408(a)(13); and
            ``(5) a State may terminate medical assistance under this 
        title for an individual because the individual fails to meet 
        any requirement imposed pursuant to section 407 if the 
        individual was eligible for the medical assistance--
                    ``(A) on the basis of receipt of assistance under a 
                State program funded under part A of title IV, or
                    ``(B) pursuant to paragraph (1), on the basis that 
                the individual meets the requirements for receipt of 
                aid or assistance under the State plan under part A of 
                title IV (as in effect on July 16, 1996).
    ``(b) In the case of a waiver of a provision of part A of title IV 
in effect with respect to a State as of July 16, 1996, if the waiver 
affects eligibility of individuals for medical assistance under this 
title, such waiver may continue to be applied, at the option of the 
State, in relation to this title after the date the waiver would 
otherwise expire.''.
    (b) Plan Amendment.--Section 1902(a) (42 U.S.C. 1396a(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (61),
            (2) by striking the period at the end of paragraph (62) and 
        inserting ``; and'', and
            (3) by inserting after paragraph (62) the following new 
        paragraph:
            ``(63) provide for continuing to administer eligibility 
        standards with respect to individuals who are (or seek to be) 
        eligible for medical assistance based on the application of 
        section 1931.''.
    (c) Conforming Amendments.--(1) Section 1902(c) (42 U.S.C. 
1396a(c)) is amended by striking ``if--'' and all that follows and 
inserting the following: ``if the State requires individuals described 
in subsection (l)(1) to apply for assistance under the State program 
funded under part A of title IV as a condition of applying for or 
receiving medical assistance under this title.''.
    (2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by striking 
paragraph (9).

SEC. 4116. EFFECTIVE DATE; TRANSITION RULE.

    (a) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subtitle, this subtitle and the amendments made by this 
        subtitle shall take effect on July 1, 1997.
            (2) Delayed effective date for certain provisions.--
        Notwithstanding any other provision of this section, paragraphs 
        (2), (3), (4), (5), (8), and (10) of section 409(a) and section 
411(a) of the Social Security Act (as added by the amendments made by 
section 4103(a) of this Act) shall not take effect with respect to a 
State until, and shall apply only with respect to conduct that occurs 
on or after, the later of--
                    (A) July 1, 1997; or
                    (B) the date that is 6 months after the date the 
                Secretary of Health and Human Services receives from 
                the State a plan described in section 402(a) of the 
                Social Security Act (as added by such amendment).
            (3) Elimination of child care programs.--The amendments 
        made by section 4103(d) shall take effect on October 1, 1996.
            (4) Definitions applicable to new child care entitlement.--
        Sections 403(a)(1)(C), 403(a)(1)(D), and 419(4) of the Social 
        Security Act, as added by the amendments made by section 
        4103(a) of this Act, shall take effect on October 1, 1996.
    (b) Transition Rules.--Effective on the date of the enactment of 
this Act:
            (1) State option to accelerate effective date.--
                    (A) In general.--If the Secretary of Health and 
                Human Services receives from a State a plan described 
                in section 402(a) of the Social Security Act (as added 
                by the amendment made by section 4103(a)(1) of this 
                Act), then--
                            (i) on and after the date of such receipt--
                                    (I) except as provided in clause 
                                (ii), this subtitle and the amendments 
                                made by this subtitle (other than by 
                                section 4103(d) of this Act) shall 
                                apply with respect to the State; and
                                    (II) the State shall be considered 
                                an eligible State for purposes of part 
                                A of title IV of the Social Security 
                                Act (as in effect pursuant to the 
                                amendments made by such section 
                                4103(a)); and
                            (ii) during the period that begins on the 
                        date of such receipt and ends on June 30, 1997, 
                        there shall remain in effect with respect to 
                        the State--
                                    (I) section 403(h) of the Social 
                                Security Act (as in effect on September 
                                30, 1995); and
                                    (II) all State reporting 
                                requirements under parts A and F of 
                                title IV of the Social Security Act (as 
                                in effect on September 30, 1995), 
                                modified by the Secretary as 
                                appropriate, taking into account the 
                                State program under part A of title IV 
                                of the Social Security Act (as in 
                                effect pursuant to the amendments made 
                                by such section 4103(a)).
                    (B) Limitations on federal obligations.--
                            (i) Under afdc program.--The total 
                        obligations of the Federal Government to a 
                        State under part A of title IV of the Social 
                        Security Act (as in effect on September 30, 
                        1995) with respect to expenditures in fiscal 
                        year 1997 shall not exceed an amount equal to 
                        the State family assistance grant.
                            (ii) Under temporary family assistance 
                        program.--Notwithstanding section 403(a)(1) of 
                        the Social Security Act (as in effect pursuant 
                        to the amendments made by section 4103(a) of 
                        this Act), the total obligations of the Federal 
                        Government to a State under such section 
                        403(a)(1)--
                                    (I) for fiscal year 1996, shall be 
                                an amount equal to--
                                            (aa) the State family 
                                        assistance grant; multiplied by
                                            (bb) \1/366\ of the number 
                                        of days during the period that 
                                        begins on the date the 
                                        Secretary of Health and Human 
                                        Services first receives from 
                                        the State a plan described in 
                                        section 402(a) of the Social 
                                        Security Act (as added by the 
                                        amendment made by section 
4103(a)(1) of this Act) and ends on September 30, 1996; and
                                    (II) for fiscal year 1997, shall be 
                                an amount equal to the lesser of--
                                            (aa) the amount (if any) by 
                                        which the State family 
                                        assistance grant exceeds the 
                                        total obligations of the 
                                        Federal Government to the State 
                                        under part A of title IV of the 
                                        Social Security Act (as in 
                                        effect on September 30, 1995) 
                                        with respect to expenditures in 
                                        fiscal year 1997; or
                                            (bb) the State family 
                                        assistance grant, multiplied by 
                                        \1/365\ of the number of days 
                                        during the period that begins 
                                        on October 1, 1996, or the date 
                                        the Secretary of Health and 
                                        Human Services first receives 
                                        from the State a plan described 
                                        in section 402(a) of the Social 
                                        Security Act (as added by the 
                                        amendment made by section 
                                        4103(a)(1) of this Act), 
                                        whichever is later, and ends on 
                                        September 30, 1997.
                            (iii) Child care obligations excluded in 
                        determining federal afdc obligations.--As used 
                        in this subparagraph, the term ``obligations of 
                        the Federal Government to the State under part 
                        A of title IV of the Social Security Act'' does 
                        not include any obligation of the Federal 
                        Government with respect to child care 
                        expenditures by the State.
                    (C) Submission of state plan for fiscal year 1996 
                or 1997 deemed acceptance of grant limitations and 
                formula and termination of afdc entitlement.--The 
                submission of a plan by a State pursuant to 
                subparagraph (A) is deemed to constitute--
                            (i) the State's acceptance of the grant 
                        reductions under subparagraph (B) (including 
                        the formula for computing the amount of the 
                        reduction); and
                            (ii) the termination of any entitlement of 
                        any individual or family to benefits or 
                        services under the State AFDC program.
                    (D) Definitions.--As used in this paragraph:
                            (i) State afdc program.--The term ``State 
                        AFDC program'' means the State program under 
                        parts A and F of title IV of the Social 
                        Security Act (as in effect on September 30, 
                        1995).
                            (ii) State.--The term ``State'' means the 
                        50 States and the District of Columbia.
                            (iii) State family assistance grant.--The 
                        term ``State family assistance grant'' means 
                        the State family assistance grant (as defined 
                        in section 403(a)(1)(B) of the Social Security 
                        Act, as added by the amendment made by section 
                        4103(a)(1) of this Act).
            (2) Claims, actions, and proceedings.--The amendments made 
        by this subtitle shall not apply with respect to--
                    (A) powers, duties, functions, rights, claims, 
                penalties, or obligations applicable to aid, 
                assistance, or services provided before the effective 
                date of this subtitle under the provisions amended; and
                    (B) administrative actions and proceedings 
                commenced before such date, or authorized before such 
                date to be commenced, under such provisions.
            (3) Closing out account for those programs terminated or 
        substantially modified by this subtitle.--In closing out 
        accounts, Federal and State officials may use scientifically 
        acceptable statistical sampling techniques. Claims made with 
        respect to State expenditures under a State plan approved under 
        part A of title IV of the Social Security Act (as in effect on 
        September 30, 1995) with respect to assistance or services 
        provided on or before September 30, 1995, shall be treated as 
        claims with respect to expenditures during fiscal year 1995 for 
purposes of reimbursement even if payment was made by a State on or 
after October 1, 1995. Each State shall complete the filing of all 
claims under the State plan (as so in effect) within 2 years after the 
date of the enactment of this Act. The head of each Federal department 
shall--
                    (A) use the single audit procedure to review and 
                resolve any claims in connection with the close out of 
                programs under such State plans; and
                    (B) reimburse States for any payments made for 
                assistance or services provided during a prior fiscal 
                year from funds for fiscal year 1995, rather than from 
                funds authorized by this subtitle.
            (4) Continuance in office of assistant secretary for family 
        support.--The individual who, on the day before the effective 
        date of this subtitle, is serving as Assistant Secretary for 
        Family Support within the Department of Health and Human 
        Services shall, until a successor is appointed to such 
        position--
                    (A) continue to serve in such position; and
                    (B) except as otherwise provided by law--
                            (i) continue to perform the functions of 
                        the Assistant Secretary for Family Support 
                        under section 417 of the Social Security Act 
                        (as in effect before such effective date); and
                            (ii) have the powers and duties of the 
                        Assistant Secretary for Family Support under 
                        section 416 of the Social Security Act (as in 
                        effect pursuant to the amendment made by 
                        section 4103(a)(1) of this Act).
    (c) Termination of Entitlement Under AFDC Program.--Effective 
October 1, 1996, no individual or family shall be entitled to any 
benefits or services under any State plan approved under part A or F of 
title IV of the Social Security Act (as in effect on September 30, 
1995).

                Subtitle B--Supplemental Security Income

SEC. 4200. REFERENCE TO SOCIAL SECURITY ACT.

    Except as otherwise specifically provided, wherever in this 
subtitle 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.

                  CHAPTER 1--ELIGIBILITY RESTRICTIONS

SEC. 4201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS FOUND TO 
              HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE IN ORDER TO 
              OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR MORE STATES.

    (a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by 
section 105(b)(4) of the Contract with America Advancement Act of 1996, 
is amended by redesignating paragraph (5) as paragraph (3) and by 
adding at the end the following new paragraph:
    ``(4)(A) No person shall be considered an eligible individual or 
eligible spouse for purposes of this title during the 10-year period 
that begins on the date the person is convicted in Federal or State 
court of having made a fraudulent statement or representation with 
respect to the place of residence of the person in order to receive 
assistance simultaneously from 2 or more States under programs that are 
funded under title IV, title XIX, or the Food Stamp Act of 1977, or 
benefits in 2 or more States under the supplemental security income 
program under this title.
    ``(B) As soon as practicable after the conviction of a person in a 
Federal or State court as described in subparagraph (A), an official of 
such court shall notify the Commissioner of such conviction.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 4202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBATION AND 
              PAROLE VIOLATORS.

    (a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by 
section 4201(a) of this Act, is amended by adding at the end the 
following new paragraph:
    ``(5) No person shall be considered an eligible individual or 
eligible spouse for purposes of this title with respect to any month if 
during such month the person is--
            ``(A) fleeing to avoid prosecution, or custody or 
        confinement after conviction, under the laws of the place from 
        which the person flees, for a crime, or an attempt to commit a 
        crime, which is a felony under the laws of the place from which 
        the person flees, or which, in the case of the State of New 
        Jersey, is a high misdemeanor under the laws of such State; or
            ``(B) violating a condition of probation or parole imposed 
        under Federal or State law.''.
    (b) Exchange of Information.--Section 1611(e) (42 U.S.C. 1382(e)), 
as amended by section 4201(a) of this Act and subsection (a) of this 
section, is amended by adding at the end the following new paragraph:
    ``(6) Notwithstanding any other provision of law (other than 
section 6103 of the Internal Revenue Code of 1986), the Commissioner 
shall furnish any Federal, State, or local law enforcement officer, 
upon the written request of the officer, with the current address, 
Social Security number, and photograph (if applicable) of any recipient 
of benefits under this title, if the officer furnishes the Commissioner 
with the name of the recipient, and other identifying information as 
reasonably required by the Commissioner to establish the unique 
identity of the recipient, and notifies the Commissioner that--
            ``(A) the recipient--
                    ``(i) is described in subparagraph (A) or (B) of 
                paragraph (5); or
                    ``(ii) has information that is necessary for the 
                officer to conduct the officer's official duties; and
            ``(B) the location or apprehension of the recipient is 
        within the officer's official duties.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 4203. TREATMENT OF PRISONERS.

    (a) Implementation of Prohibition Against Payment of Benefits to 
Prisoners.--
            (1) In general.--Section 1611(e)(1) (42 U.S.C. 1382(e)(1)) 
        is amended by adding at the end the following new subparagraph:
    ``(I)(i) The Commissioner shall enter into an agreement, with any 
interested State or local institution described in clause (i) or (ii) 
of section 202(x)(1)(A) the primary purpose of which is to confine 
individuals as described in section 202(x)(1)(A), under which--
            ``(I) the institution shall provide to the Commissioner, on 
        a monthly basis and in a manner specified by the Commissioner, 
        the names, social security account numbers, dates of birth, 
        confinement commencement dates, and, to the extent available to 
        the institution, such other identifying information concerning 
        the inmates of the institution as the Commissioner may require 
        for the purpose of carrying out paragraph (1); and
            ``(II) the Commissioner shall pay to any such institution, 
        with respect to each inmate of the institution who is eligible 
        for a benefit under this title for the month preceding the 
        first month throughout which such inmate is in such institution 
        and becomes ineligible for such benefit as a result of the 
        application of this subparagraph, $400 if the institution 
        furnishes the information described in subclause (I) to the 
        Commissioner within 30 days after the date such individual 
        becomes an inmate of such institution, or $200 if the 
        institution furnishes such information after 30 days after such 
        date but within 90 days after such date.
    ``(ii)(I) The provisions of section 552a of title 5, United States 
Code, shall not apply to any agreement entered into under clause (i) or 
to information exchanged pursuant to such agreement.
    ``(II) The Commissioner is authorized to provide, on a reimbursable 
basis, information obtained pursuant to agreements entered into under 
clause (i) to any Federal or federally-assisted cash, food, or medical 
assistance program for eligibility purposes.
    ``(iii) The dollar amounts specified in clause (i)(II) shall be 
reduced by 50 percent if the Commissioner is also required to make a 
payment to the institution with respect to the same individual under an 
agreement entered into under section 202(x)(3)(B).
    ``(iv) Payments to institutions required by clause (i)(II) shall be 
made from funds otherwise available for the payment of benefits under 
this title and shall be treated as direct spending for purposes of the 
Balanced Budget and Emergency Deficit Control Act of 1985.''.
            (2) Conforming oasdi amendments.--Section 202(x)(3) (42 
        U.S.C. 402(x)(3)) is amended--
                    (A) by inserting ``(A)'' after ``(3)''; and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(B)(i) The Commissioner shall enter into an agreement, with any 
interested State or local institution described in clause (i) or (ii) 
of paragraph (1)(A) the primary purpose of which is to confine 
individuals as described in paragraph (1)(A), under which--
            ``(I) the institution shall provide to the Commissioner, on 
        a monthly basis and in a manner specified by the Commissioner, 
        the names, social security account numbers, dates of birth, 
        confinement commencement dates, and, to the extent available to 
        the institution, such other identifying information concerning 
        the individuals confined in the institution as the Commissioner 
        may require for the purpose of carrying out paragraph (1); and
            ``(II) the Commissioner shall pay to any such institution, 
        with respect to each individual who is entitled to a benefit 
        under this title for the month preceding the first month 
        throughout which such individual is confined in such 
        institution as described in paragraph (1)(A), $400 if the 
        institution furnishes the information described in subclause 
        (I) to the Commissioner within 30 days after the date such 
        individual's confinement in such institution begins, or $200 if 
        the institution furnishes such information after 30 days after 
        such date but within 90 days after such date.
    ``(ii)(I) The provisions of section 552a of title 5, United States 
Code, shall not apply to any agreement entered into under clause (i) or 
to information exchanged pursuant to such agreement.
    ``(II) The Commissioner is authorized to provide, on a reimbursable 
basis, information obtained pursuant to agreements entered into under 
clause (i) to any Federal or federally-assisted cash, food, or medical 
assistance program for eligibility purposes.
    ``(iii) The dollar amounts specified in clause (i)(II) shall be 
reduced by 50 percent if the Commissioner is also required to make a 
payment to the institution with respect to the same individual under an 
agreement entered into under section 1611(e)(1)(I).
    ``(iv) There shall be transferred from the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Disability Insurance 
Trust Fund, as appropriate, such sums as may be necessary to enable the 
Commissioner to make payments to institutions required by clause 
(i)(II). Sums so transferred shall be treated as direct spending for 
purposes of the Balanced Budget and Emergency Deficit Control Act of 
1985 and excluded from budget totals in accordance with section 13301 
of the Budget Enforcement Act of 1990.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to individuals whose period of confinement in an 
        institution commences on or after the first day of the seventh 
        month beginning after the month in which this Act is enacted.
    (b) Elimination of OASDI Requirement That Confinement Stem From 
Crime Punishable by Imprisonment for More Than 1 Year.--
            (1) In general.--Section 202(x)(1)(A) (42 U.S.C. 
        402(x)(1)(A)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``during'' and inserting ``throughout'';
                    (B) in clause (i), by striking ``pursuant'' and all 
                that follows through ``imposed)''; and
                    (C) in clause (ii)(I), by striking ``an offense 
                punishable by imprisonment for more than 1 year'' and 
                inserting ``a criminal offense''.
            (2) Effective date.--The amendments made by this subsection 
        shall be effective with respect to benefits payable for months 
        beginning more than 180 days after the date of the enactment of 
        this Act.
    (c) Study of Other Potential Improvements in the Collection of 
Information Respecting Public Inmates.--
            (1) Study.--The Commissioner of Social Security shall 
        conduct a study of the desirability, feasibility, and cost of--
                    (A) establishing a system under which Federal, 
                State, and local courts would furnish to the 
                Commissioner such information respecting court orders 
                by which individuals are confined in jails, prisons, or 
                other public penal, correctional, or medical facilities 
                as the Commissioner may require for the purpose of 
                carrying out sections 202(x) and 1611(e)(1) of the 
                Social Security Act; and
                    (B) requiring that State and local jails, prisons, 
                and other institutions that enter into agreements with 
                the Commissioner under section 202(x)(3)(B) or 
                1611(e)(1)(I) of the Social Security Act furnish the 
                information required by such agreements to the 
                Commissioner by means of an electronic or other 
                sophisticated data exchange system.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Commissioner of Social Security 
        shall submit a report on the results of the study conducted 
        pursuant to this subsection to the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives.
    (d) Additional Report to Congress.--Not later than October 1, 1998, 
the Commissioner of Social Security shall provide to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the House 
of Representatives a list of the institutions that are and are not 
providing information to the Commissioner under sections 202(x)(3)(B) 
and 1611(e)(1)(I) of the Social Security Act (as added by this 
section).

SEC. 4204. EFFECTIVE DATE OF APPLICATION FOR BENEFITS.

    (a) In General.--Subparagraphs (A) and (B) of section 1611(c)(7) 
(42 U.S.C. 1382(c)(7)) are amended to read as follows:
            ``(A) the first day of the month following the date such 
        application is filed, or
            ``(B) the first day of the month following the date such 
        individual becomes eligible for such benefits with respect to 
        such application.''.
    (b) Special Rule Relating to Emergency Advance Payments.--Section 
1631(a)(4)(A) (42 U.S.C. 1383(a)(4)(A)) is amended--
            (1) by inserting ``for the month following the date the 
        application is filed'' after ``is presumptively eligible for 
        such benefits''; and
            (2) by inserting ``, which shall be repaid through 
        proportionate reductions in such benefits over a period of not 
        more than 6 months'' before the semicolon.
    (c) Conforming Amendments.--
            (1) Section 1614(b) (42 U.S.C. 1382c(b)) is amended by 
        striking ``at the time the application or request is 
filed'' and inserting ``on the first day of the month following the 
date the application or request is filed''.
            (2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is amended 
        by inserting ``following the month'' after ``beginning with the 
        month''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to applications for benefits under title XVI of the 
        Social Security Act filed on or after the date of the enactment 
        of this Act, without regard to whether regulations have been 
        issued to implement such amendments.
            (2) Benefits under title xvi.--For purposes of this 
        subsection, the term ``benefits under title XVI of the Social 
        Security Act'' includes supplementary payments pursuant to an 
        agreement for Federal administration under section 1616(a) of 
        the Social Security Act, and payments pursuant to an agreement 
        entered into under section 212(b) of Public Law 93-66.

               CHAPTER 2--BENEFITS FOR DISABLED CHILDREN

SEC. 4211. DEFINITION AND ELIGIBILITY RULES.

    (a) Definition of Childhood Disability.--Section 1614(a)(3) (42 
U.S.C. 1382c(a)(3)), as amended by section 105(b)(1) of the Contract 
with America Advancement Act of 1996, is amended--
            (1) in subparagraph (A), by striking ``An individual'' and 
        inserting ``Except as provided in subparagraph (C), an 
        individual'';
            (2) in subparagraph (A), by striking ``(or, in the case of 
        an individual under the age of 18, if he suffers from any 
        medically determinable physical or mental impairment of 
        comparable severity)'';
            (3) by redesignating subparagraphs (C) through (I) as 
        subparagraphs (D) through (J), respectively;
            (4) by inserting after subparagraph (B) the following new 
        subparagraph:
    ``(C)(i) An individual under the age of 18 shall be considered 
disabled for the purposes of this title if that individual has a 
medically determinable physical or mental impairment, which results in 
marked and severe functional limitations, and which can be expected to 
result in death or which has lasted or can be expected to last for a 
continuous period of not less than 12 months.
    ``(ii) The Commissioner shall ensure that the combined effects of 
all physical or mental impairments of an individual are taken into 
account in determining whether an individual is disabled in accordance 
with clause (i).
    ``(iii) The Commissioner shall ensure that the regulations 
prescribed under this subparagraph provide for the evaluation of 
children who cannot be tested because of their young age.
    ``(iv) Notwithstanding the preceding provisions of this 
subparagraph, no individual under the age of 18 who engages in 
substantial gainful activity (determined in accordance with regulations 
prescribed pursuant to subparagraph (E)) may be considered to be 
disabled.''; and
            (5) in subparagraph (F), as redesignated by paragraph (3), 
        by striking ``(D)'' and inserting ``(E)''.
    (b) Changes to Childhood SSI Regulations.--
            (1) Modification to medical criteria for evaluation of 
        mental and emotional disorders.--The Commissioner of Social 
        Security shall modify sections 112.00C.2. and 112.02B.2.c.(2) 
        of appendix 1 to subpart P of part 404 of title 20, Code of 
        Federal Regulations, to eliminate references to maladaptive 
        behavior in the domain of personal/behavorial function.
            (2) Discontinuance of individualized functional 
        assessment.--The Commissioner of Social Security shall 
        discontinue the individualized functional assessment for 
        children set forth in sections 416.924d and 416.924e of title 
        20, Code of Federal Regulations.
    (c) Medical Improvement Review Standard as it Applies to 
Individuals Under the Age of 18.--Section 1614(a)(4) (42 U.S.C. 
1382(a)(4)) is amended--
            (1) by redesignating subclauses (I) and (II) of clauses (i) 
        and (ii) of subparagraph (B) as items (aa) and (bb), 
        respectively;
            (2) by redesignating clauses (i) and (ii) of subparagraphs 
        (A) and (B) as subclauses (I) and (II), respectively;
            (3) by redesignating subparagraphs (A) through (C) as 
        clauses (i) through (iii), respectively;
            (4) by inserting before clause (i) (as redesignated by 
        paragraph (3)) the following new subparagraph:
            ``(A) in the case of an individual who is age 18 or older--
        '';
            (5) by inserting after and below subparagraph (A)(iii) (as 
        so redesignated) the following new subparagraph:
            ``(B) in the case of an individual who is under the age of 
        18--
                    ``(i) substantial evidence which demonstrates that 
                there has been medical improvement in the individual's 
                impairment or combination of impairments, and that such 
                impairment or combination of impairments no longer 
                results in marked and severe functional limitations; or
                    ``(ii) substantial evidence which demonstrates 
                that, as determined on the basis of new or improved 
                diagnostic techniques or evaluations, the individual's 
                impairment or combination of impairments, is not as 
                disabling as it was considered to be at the time of the 
                most recent prior decision that the individual was 
                under a disability or continued to be under a 
                disability, and such impairment or combination of 
                impairments does not result in marked and severe 
                functional limitations; or'';
            (6) by redesignating subparagraph (D) as subparagraph (C) 
        and by inserting in such subparagraph ``in the case of any 
        individual,'' before ``substantial evidence''; and
            (7) in the first sentence following subparagraph (C) (as 
        redesignated by paragraph (6)), by--
                    (A) inserting ``(i)'' before ``to restore''; and
                    (B) inserting ``, or (ii) in the case of an 
                individual under the age of 18, to eliminate or improve 
                the individual's impairment or combination of 
                impairments so that it no longer results in marked and 
                severe functional limitations'' immediately before the 
                period.
    (d) Effective Dates, Etc.--
            (1) Effective dates.--
                    (A) Subsections (a) and (b).--
                            (i) In general.--The provisions of, and 
                        amendments made by, subsections (a) and (b) 
                        shall apply to any individual who applies for, 
                        or whose claim is finally adjudicated with 
                        respect to, benefits under title XVI of the 
                        Social Security Act on or after the date of the 
                        enactment of this Act, without regard to 
                        whether regulations have been issued to 
                        implement such provisions and amendments.
                            (ii) Determination of final adjudication.--
                        For purposes of clause (i), no individual's 
                        claim with respect to such benefits may be 
                        considered to be finally adjudicated before 
                        such date of enactment if, on or after such 
                        date, there is pending a request for either 
                        administrative or judicial review with respect 
                        to such claim that has been denied in whole, or 
                        there is pending, with respect to such claim, 
                        readjudication by the Commissioner of Social 
                        Security pursuant to relief in a class action 
                        or implementation by the Commissioner of a 
                        court remand order.
                    (B) Subsection (c).--The amendments made by 
                subsection (c) shall apply with respect to benefits 
                under title XVI of the Social Security Act for months 
                beginning on or after the date of the enactment of this 
                Act, without regard to whether regulations have been 
                issued to implement such amendments.
            (2) Application to current recipients.--
                    (A) Eligibility redeterminations.--During the 
                period beginning on the date of the enactment of this 
Act and ending on the date which is 1 year after such date of 
enactment, the Commissioner of Social Security shall redetermine the 
eligibility of any individual under age 18 who is eligible for 
supplemental security income benefits by reason of disability under 
title XVI of the Social Security Act as of the date of the enactment of 
this Act and whose eligibility for such benefits may terminate by 
reason of the provisions of, or amendments made by, subsections (a) and 
(b). With respect to any redetermination under this subparagraph--
                            (i) section 1614(a)(4) of the Social 
                        Security Act (42 U.S.C. 1382c(a)(4)) shall not 
                        apply;
                            (ii) the Commissioner of Social Security 
                        shall apply the eligibility criteria for new 
                        applicants for benefits under title XVI of such 
                        Act;
                            (iii) the Commissioner shall give such 
                        redetermination priority over all continuing 
                        eligibility reviews and other reviews under 
                        such title; and
                            (iv) such redetermination shall be counted 
                        as a review or redetermination otherwise 
                        required to be made under section 208 of the 
                        Social Security Independence and Program 
                        Improvements Act of 1994 or any other provision 
                        of title XVI of the Social Security Act.
                    (B) Grandfather provision.--The provisions of, and 
                amendments made by, subsections (a) and (b), and the 
                redetermination under subparagraph (A), shall only 
                apply with respect to the benefits of an individual 
                described in subparagraph (A) for months beginning on 
                or after the date of the redetermination with respect 
                to such individual.
                    (C) Notice.--Not later than January 1, 1997, the 
                Commissioner of Social Security shall notify an 
                individual described in subparagraph (A) of the 
                provisions of this paragraph.
            (3) Report.--The Commissioner of Social Security shall 
        report to the Congress regarding the progress made in 
        implementing the provisions of, and amendments made by, this 
        section on child disability evaluations not later than 180 days 
        after the date of the enactment of this Act.
            (4) Regulations.--Notwithstanding any other provision of 
        law, the Commissioner of Social Security shall submit for 
        review to the committees of jurisdiction in the Congress any 
        final regulation pertaining to the eligibility of individuals 
        under age 18 for benefits under title XVI of the Social 
        Security Act at least 45 days before the effective date of such 
        regulation. The submission under this paragraph shall include 
        supporting documentation providing a cost analysis, workload 
        impact, and projections as to how the regulation will effect 
        the future number of recipients under such title.
            (5) Benefits under title xvi.--For purposes of this 
        subsection, the term ``benefits under title XVI of the Social 
        Security Act'' includes supplementary payments pursuant to an 
        agreement for Federal administration under section 1616(a) of 
        the Social Security Act, and payments pursuant to an agreement 
        entered into under section 212(b) of Public Law 93-66.

SEC. 4212. ELIGIBILITY REDETERMINATIONS AND CONTINUING DISABILITY 
              REVIEWS.

    (a) Continuing Disability Reviews Relating to Certain Children.--
Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as redesignated by 
section 4211(a)(3) of this Act, is amended--
            (1) by inserting ``(i)'' after ``(H)''; and
            (2) by adding at the end the following new clause:
    ``(ii)(I) Not less frequently than once every 3 years, the 
Commissioner shall review in accordance with paragraph (4) the 
continued eligibility for benefits under this title of each individual 
who has not attained 18 years of age and is eligible for such benefits 
by reason of an impairment (or combination of impairments) which is 
likely to improve (or, at the option of the Commissioner, which is 
unlikely to improve).
    ``(II) A representative payee of a recipient whose case is reviewed 
under this clause shall present, at the time of review, evidence 
demonstrating that the recipient is, and has been, receiving treatment, 
to the extent considered medically necessary and available, of the 
condition which was the basis for providing benefits under this title.
    ``(III) If the representative payee refuses to comply without good 
cause with the requirements of subclause (II), the Commissioner of 
Social Security shall, if the Commissioner determines it is in the best 
interest of the individual, promptly suspend payment of benefits to the 
representative payee, and provide for payment of benefits to an 
alternative representative payee of the individual or, if the interest 
of the individual under this title would be served thereby, to the 
individual.
    ``(IV) Subclause (II) shall not apply to the representative payee 
of any individual with respect to whom the Commissioner determines such 
application would be inappropriate or unnecessary. In making such 
determination, the Commissioner shall take into consideration the 
nature of the individual's impairment (or combination of impairments). 
Section 1631(c) shall not apply to a finding by the Commissioner that 
the requirements of subclause (II) should not apply to an individual's 
representative payee.''.
    (b) Disability Eligibility Redeterminations Required for SSI 
Recipients Who Attain 18 Years of Age.--
            (1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 
        1382c(a)(3)(H)), as amended by subsection (a) of this section, 
        is amended by adding at the end the following new clause:
    ``(iii) If an individual is eligible for benefits under this title 
by reason of disability for the month preceding the month in which the 
individual attains the age of 18 years, the Commissioner shall 
redetermine such eligibility--
            ``(I) during the 1-year period beginning on the 
        individual's 18th birthday; and
            ``(II) by applying the criteria used in determining the 
        initial eligibility for applicants who are age 18 or older.
With respect to a redetermination under this clause, paragraph (4) 
shall not apply and such redetermination shall be considered a 
substitute for a review or redetermination otherwise required under any 
other provision of this subparagraph during that 1-year period.''.
            (2) Conforming repeal.--Section 207 of the Social Security 
        Independence and Program Improvements Act of 1994 (42 U.S.C. 
        1382 note; 108 Stat. 1516) is hereby repealed.
    (c) Continuing Disability Review Required for Low Birth Weight 
Babies.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as amended 
by subsections (a) and (b) of this section, is amended by adding at the 
end the following new clause:
    ``(iv)(I) Not later than 12 months after the birth of an 
individual, the Commissioner shall review in accordance with paragraph 
(4) the continuing eligibility for benefits under this title by reason 
of disability of such individual whose low birth weight is a 
contributing factor material to the Commissioner's determination that 
the individual is disabled.
    ``(II) A review under subclause (I) shall be considered a 
substitute for a review otherwise required under any other provision of 
this subparagraph during that 12-month period.
    ``(III) A representative payee of a recipient whose case is 
reviewed under this clause shall present, at the time of review, 
evidence demonstrating that the recipient is, and has been, receiving 
treatment, to the extent considered medically necessary and available, 
of the condition which was the basis for providing benefits under this 
title.
    ``(IV) If the representative payee refuses to comply without good 
cause with the requirements of subclause (III), the Commissioner of 
Social Security shall, if the Commissioner determines it is in the best 
interest of the individual, promptly suspend payment of benefits to the 
representative payee, and provide for payment of benefits to an 
alternative representative payee of the individual or, if the interest 
of the individual under this title would be served thereby, to the 
individual.
    ``(V) Subclause (III) shall not apply to the representative payee 
of any individual with respect to whom the Commissioner determines such 
application would be inappropriate or unnecessary. In making such 
determination, the Commissioner shall take into consideration the 
nature of the individual's impairment (or combination of impairments). 
Section 1631(c) shall not apply to a finding by the Commissioner that 
the requirements of subclause (III) should not apply to an individual's 
representative payee.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to benefits for months beginning on or after the date of the 
enactment of this Act, without regard to whether regulations have been 
issued to implement such amendments.

SEC. 4213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

    (a) Disposal of Resources for Less Than Fair Market Value.--
            (1) In general.--Section 1613(c) (42 U.S.C. 1382b(c)) is 
        amended to read as follows:

        ``Disposal of Resources for Less Than Fair Market Value

    ``(c)(1)(A)(i) If an individual who has not attained 18 years of 
age (or any person acting on such individual's behalf) disposes of 
resources of the individual for less than fair market value on or after 
the look-back date specified in clause (ii)(I), the individual is 
ineligible for benefits under this title for months during the period 
beginning on the date specified in clause (iii) and equal to the number 
of months specified in clause (iv).
    ``(ii)(I) The look-back date specified in this subclause is a date 
that is 36 months before the date specified in subclause (II).
    ``(II) The date specified in this subclause is the date on which 
the individual applies for benefits under this title or, if later, the 
date on which the disposal of the individual's resources for less than 
fair market value occurs.
    ``(iii) The date specified in this clause is the first day of the 
first month that follows the month in which the individual's resources 
were disposed of for less than fair market value and that does not 
occur in any other period of ineligibility under this paragraph.
    ``(iv) The number of months of ineligibility under this clause for 
an individual shall be equal to--
            ``(I) the total, cumulative uncompensated value of all the 
        individual's resources so disposed of on or after the look-back 
        date specified in clause (ii)(I), divided by
            ``(II) the amount of the maximum monthly benefit payable 
        under section 1611(b) to an eligible individual for the month 
        in which the date specified in clause (ii)(II) occurs.
    ``(B) An individual shall not be ineligible for benefits under this 
title by reason of subparagraph (A) if the Commissioner determines 
that--
            ``(i) the individual intended to dispose of the resources 
        at fair market value;
            ``(ii) the resources were transferred exclusively for a 
        purpose other than to qualify for benefits under this title;
            ``(iii) all resources transferred for less than fair market 
        value have been returned to the individual; or
            ``(iv) the denial of eligibility would work an undue 
        hardship on the individual (as determined on the basis of 
        criteria established by the Commissioner in regulations).
    ``(C) For purposes of this paragraph, in the case of a resource 
held by an individual in common with another person or persons in a 
joint tenancy, tenancy in common, or similar arrangement, the resource 
(or the affected portion of such resource) shall be considered to be 
disposed of by such individual when any action is taken, either by such 
individual or by any other person, that reduces or eliminates such 
individual's ownership or control of such resource.
    ``(D)(i) Notwithstanding subparagraph (A), this subsection shall 
not apply to a transfer of a resource to a trust if the portion of the 
trust attributable to such resource is considered a resource available 
to the individual pursuant to subsection (e)(3) (or would be so 
considered, but for the application of subsection (e)(4)).
    ``(ii) In the case of a trust established by an individual (within 
the meaning of subsection (e)(2)(A)), if from such portion of the trust 
(if any) that is considered a resource available to the individual 
pursuant to subsection (e)(3) (or would be so considered but for the 
application of subsection (e)(2)) or the residue of such portion upon 
the termination of the trust--
            ``(I) there is made a payment other than to or for the 
        benefit of the individual, or
            ``(II) no payment could under any circumstance be made to 
        the individual,
then the payment described in subclause (I) or the foreclosure of 
payment described in subclause (II) shall be considered a disposal of 
resources by the individual subject to this subsection, as of the date 
of such payment or foreclosure, respectively.
    ``(2)(A) At the time an individual (and the individual's eligible 
spouse, if any) applies for benefits under this title, and at the time 
the eligibility of an individual (and such spouse, if any) for such 
benefits is redetermined, the Commissioner of Social Security shall--
            ``(i) inform such individual of the provisions of paragraph 
        (1) providing for a period of ineligibility for benefits under 
        this title for individuals who make certain dispositions of 
        resources for less than fair market value, and inform such 
        individual that information obtained pursuant to clause (ii) 
        will be made available to the State agency administering a 
        State plan approved under title XIX (as provided in 
        subparagraph (B)); and
            ``(ii) obtain from such individual information which may be 
        used in determining whether or not a period of ineligibility 
        for such benefits would be required by reason of paragraph (1).
    ``(B) The Commissioner of Social Security shall make the 
information obtained under subparagraph (A)(ii) available, on request, 
to any State agency administering a State plan approved under title 
XIX.
    ``(3) For purposes of this subsection--
            ``(A) the term `trust' includes any legal instrument or 
        device that is similar to a trust; and
            ``(B) the term `benefits under this title' includes 
        supplementary payments pursuant to an agreement for Federal 
        administration under section 1616(a), and payments pursuant to 
        an agreement entered into under section 212(b) of Public Law 
        93-66.''.
            (2) Effective date.--The amendment made by this subsection 
        shall be effective with respect to transfers that occur at 
        least 90 days after the date of the enactment of this Act.
    (b) Treatment of Assets Held in Trust.--
            (1) Treatment as resource.--Section 1613 (42 U.S.C. 1382) 
        is amended by adding at the end the following new subsection:

                                ``Trusts

    ``(e)(1) In determining the resources of an individual who has not 
attained 18 years of age, the provisions of paragraph (3) shall apply 
to a trust established by such individual.
    ``(2)(A) For purposes of this subsection, an individual shall be 
considered to have established a trust if any assets of the individual 
were transferred to the trust.
    ``(B) In the case of an irrevocable trust to which the assets of an 
individual and the assets of any other person or persons were 
transferred, the provisions of this subsection shall apply to the 
portion of the trust attributable to the assets of the individual.
    ``(C) This subsection shall apply without regard to--
            ``(i) the purposes for which the trust is established;
            ``(ii) whether the trustees have or exercise any discretion 
        under the trust;
            ``(iii) any restrictions on when or whether distributions 
        may be made from the trust; or
            ``(iv) any restrictions on the use of distributions from 
        the trust.
    ``(3)(A) In the case of a revocable trust, the corpus of the trust 
shall be considered a resource available to the individual.
    ``(B) In the case of an irrevocable trust, if there are any 
circumstances under which payment from the trust could be made to or 
for the benefit of the individual, the portion of the corpus from which 
payment to or for the benefit of the individual could be made shall be 
considered a resource available to the individual.
    ``(4) The Commissioner may waive the application of this subsection 
with respect to any individual if the Commissioner determines, on the 
basis of criteria prescribed in regulations, that such application 
would work an undue hardship on such individual.
    ``(5) For purposes of this subsection--
            ``(A) the term `trust' includes any legal instrument or 
        device that is similar to a trust;
            ``(B) the term `corpus' means all property and other 
        interests held by the trust, including accumulated earnings and 
        any other addition to such trust after its establishment 
        (except that such term does not include any such earnings or 
        addition in the month in which such earnings or addition is 
        credited or otherwise transferred to the trust);
            ``(C) the term `asset' includes any income or resource of 
        the individual, including--
                    ``(i) any income otherwise excluded by section 
                1612(b);
                    ``(ii) any resource otherwise excluded by this 
                section; and
                    ``(iii) any other payment or property that the 
                individual is entitled to but does not receive or have 
                access to because of action by--
                            ``(I) such individual;
                            ``(II) a person or entity (including a 
                        court) with legal authority to act in place of, 
                        or on behalf of, such individual; or
                            ``(III) a person or entity (including a 
                        court) acting at the direction of, or upon the 
                        request of, such individual; and
            ``(D) the term `benefits under this title' includes 
        supplementary payments pursuant to an agreement for Federal 
        administration under section 1616(a), and payments pursuant to 
        an agreement entered into under section 212(b) of Public Law 
        93-66.''.
            (2) Treatment as income.--Section 1612(a)(2) (42 U.S.C. 
        1382a(a)(2)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (E);
                    (B) by striking the period at the end of 
                subparagraph (F) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(G) any earnings of, and additions to, the corpus 
                of a trust (as defined in section 1613(f)) established 
                by an individual (within the meaning of section 
                1613(e)(2)(A)) and of which such individual is a 
                beneficiary (other than a trust to which section 
                1613(e)(4) applies), except that in the case of an 
                irrevocable trust, there shall exist circumstances 
                under which payment from such earnings or additions 
                could be made to, or for the benefit of, such 
                individual.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date which is 90 days after the date 
        of the enactment of this Act, and shall apply to trusts 
        established on or after such date.
    (c) Requirement To Establish Account.--
            (1) In general.--Section 1631(a)(2) (42 U.S.C. 1383(a)(2)) 
        is amended--
                    (A) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (G) and (H), respectively; and
                    (B) by inserting after subparagraph (E) the 
                following new subparagraph:
    ``(F)(i)(I) Each representative payee of an eligible individual 
under the age of 18 who is eligible for the payment of benefits 
described in subclause (II) shall establish on behalf of such 
individual an account in a financial institution into which such 
benefits shall be paid, and shall thereafter maintain such account for 
use in accordance with clause (ii).
    ``(II) Benefits described in this subclause are past-due monthly 
benefits under this title (which, for purposes of this subclause, 
include State supplementary payments made by the Commissioner pursuant 
to an agreement under section 1616 or section 212(b) of Public Law 93-
66) in an amount (after any withholding by the Commissioner for 
reimbursement to a State for interim assistance under subsection (g)) 
that exceeds the product of--
            ``(aa) 6, and
            ``(bb) the maximum monthly benefit payable under this title 
        to an eligible individual.
    ``(ii)(I) A representative payee shall use funds in the account 
established under clause (i) to pay for allowable expenses described in 
subclause (II).
    ``(II) An allowable expense described in this subclause is an 
expense for--
            ``(aa) education or job skills training;
            ``(bb) personal needs assistance;
            ``(cc) special equipment;
            ``(dd) housing modification;
            ``(ee) medical treatment;
            ``(ff) therapy or rehabilitation; or
            ``(gg) any other item or service that the Commissioner 
        determines to be appropriate;
provided that such expense benefits such individual and, in the case of 
an expense described in item (bb), (cc), (dd), (ff), or (gg), is 
related to the impairment (or combination of impairments) of such 
individual.
    ``(III) The use of funds from an account established under clause 
(i) in any manner not authorized by this clause--
            ``(aa) by a representative payee shall be considered a 
        misapplication of benefits for all purposes of this paragraph, 
        and any representative payee who knowingly misapplies benefits 
        from such an account shall be liable to the Commissioner in an 
        amount equal to the total amount of such benefits; and
            ``(bb) by an eligible individual who is his or her own 
        payee shall be considered a misapplication of benefits for all 
        purposes of this paragraph and the total amount of such 
        benefits so used shall be considered to be the uncompensated 
        value of a disposed resource and shall be subject to the 
        provisions of section 1613(c).
    ``(IV) This clause shall continue to apply to funds in the account 
after the child has reached age 18, regardless of whether benefits are 
paid directly to the beneficiary or through a representative payee.
    ``(iii) The representative payee may deposit into the account 
established pursuant to clause (i)--
            ``(I) past-due benefits payable to the eligible individual 
        in an amount less than that specified in clause (i)(II), and
            ``(II) any other funds representing an underpayment under 
        this title to such individual, provided that the amount of such 
        underpayment is equal to or exceeds the maximum monthly benefit 
        payable under this title to an eligible individual.
    ``(iv) The Commissioner of Social Security shall establish a system 
for accountability monitoring whereby such representative payee shall 
report, at such time and in such manner as the Commissioner shall 
require, on activity respecting funds in the account established 
pursuant to clause (i).''.
            (2) Exclusion from resources.--Section 1613(a) (42 U.S.C. 
        1382b(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (10);
                    (B) by striking the period at the end of paragraph 
                (11) and inserting ``; and''; and
                    (C) by inserting after paragraph (11) the following 
                new paragraph:
            ``(12) any account, including accrued interest or other 
        earnings thereon, established and maintained in accordance with 
        section 1631(a)(2)(F).''.
            (3) Exclusion from income.--Section 1612(b) (42 U.S.C. 
        1382a(b)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (19);
                    (B) by striking the period at the end of paragraph 
                (20) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(21) the interest or other earnings on any account 
        established and maintained in accordance with section 
        1631(a)(2)(F).''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to payments made after the date of the enactment of 
        this Act.

SEC. 4214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITUTIONALIZED 
              INDIVIDUALS WHOSE MEDICAL COSTS ARE COVERED BY PRIVATE 
              INSURANCE.

    (a) In General.--Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B)) is 
amended--
            (1) by striking ``title XIX, or'' and inserting ``title 
        XIX,''; and
            (2) by inserting ``or, in the case of an eligible 
        individual under the age of 18, receiving payments (with 
        respect to such individual) under any health insurance policy 
        issued by a private provider of such insurance'' after 
        ``section 1614(f)(2)(B),''.
    (b) Effective Date.--The amendment made by this section shall apply 
to benefits for months beginning 90 or more days after the date of the 
enactment of this Act, without regard to whether regulations have been 
issued to implement such amendments.

SEC. 4215. REGULATIONS.

    Within 3 months after the date of the enactment of this Act, the 
Commissioner of Social Security shall prescribe such regulations as may 
be necessary to implement the amendments made by this chapter.

              CHAPTER 3--ADDITIONAL ENFORCEMENT PROVISIONS

SEC. 4221. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLEMENTAL SECURITY 
              INCOME BENEFITS.

    (a) In General.--Section 1631(a) (42 U.S.C. 1383) is amended by 
adding at the end the following new paragraph:
    ``(10)(A) If an individual is eligible for past-due monthly 
benefits under this title in an amount that (after any withholding for 
reimbursement to a State for interim assistance under subsection (g)) 
equals or exceeds the product of--
            ``(i) 12, and
            ``(ii) the maximum monthly benefit payable under this title 
        to an eligible individual (or, if appropriate, to an eligible 
        individual and eligible spouse),
then the payment of such past-due benefits (after any such 
reimbursement to a State) shall be made in installments as provided in 
subparagraph (B).
    ``(B)(i) The payment of past-due benefits subject to this 
subparagraph shall be made in not to exceed 3 installments that are 
made at 6-month intervals.
    ``(ii) Except as provided in clause (iii), the amount of each of 
the first and second installments may not exceed an amount equal to the 
product of clauses (i) and (ii) of subparagraph (A).
    ``(iii) In the case of an individual who has--
            ``(I) outstanding debt attributable to--
                    ``(aa) food,
                    ``(bb) clothing,
                    ``(cc) shelter, or
                    ``(dd) medically necessary services, supplies or 
                equipment, or medicine; or
            ``(II) current expenses or expenses anticipated in the near 
        term attributable to--
                    ``(aa) medically necessary services, supplies or 
                equipment, or medicine, or
                    ``(bb) the purchase of a home, and
such debt or expenses are not subject to reimbursement by a public 
assistance program, the Secretary under title XVIII, a State plan 
approved under title XIX, or any private entity legally liable to 
provide payment pursuant to an insurance policy, pre-paid plan, or 
other arrangement, the limitation specified in clause (ii) may be 
exceeded by an amount equal to the total of such debt and expenses.
    ``(C) This paragraph shall not apply to any individual who, at the 
time of the Commissioner's determination that such individual is 
eligible for the payment of past-due monthly benefits under this 
title--
            ``(i) is afflicted with a medically determinable impairment 
        that is expected to result in death within 12 months; or
            ``(ii) is ineligible for benefits under this title and the 
        Commissioner determines that such individual is likely to 
        remain ineligible for the next 12 months.
    ``(D) For purposes of this paragraph, the term `benefits under this 
title' includes supplementary payments pursuant to an agreement for 
Federal administration under section 1616(a), and payments pursuant to 
an agreement entered into under section 212(b) of Public Law 93-66.''.
    (b) Conforming Amendment.--Section 1631(a)(1) (42 U.S.C. 
1383(a)(1)) is amended by inserting ``(subject to paragraph (10))'' 
immediately before ``in such installments''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section are 
        effective with respect to past-due benefits payable under title 
        XVI of the Social Security Act after the third month following 
        the month in which this Act is enacted.
            (2) Benefits payable under title xvi.--For purposes of this 
        subsection, the term ``benefits payable under title XVI of the 
        Social Security Act'' includes supplementary payments pursuant 
        to an agreement for Federal administration under section 
        1616(a) of the Social Security Act, and payments pursuant to an 
        agreement entered into under section 212(b) of Public Law 93-
        66.

SEC. 4222. RECOVERY OF SUPPLEMENTAL SECURITY INCOME OVERPAYMENTS FROM 
              SOCIAL SECURITY BENEFITS.

    (a) In General.--Part A of title XI is amended by adding at the end 
the following new section:

      ``recovery of ssi overpayments from social security benefits

    ``Sec. 1146. (a) In General.--Whenever the Commissioner of Social 
Security determines that more than the correct amount of any payment 
has been made to any person under the supplemental security income 
program authorized by title XVI, and the Commissioner is unable to make 
proper adjustment or recovery of the amount so incorrectly paid as 
provided in section 1631(b), the Commissioner (notwithstanding section 
207) may recover the amount incorrectly paid by decreasing any amount 
which is payable under the Federal Old-Age and Survivors Insurance 
program or the Federal Disability Insurance program authorized by title 
II to that person or that person's estate.
    ``(b) No Effect on SSI Benefit Eligibility or Amount.--
Notwithstanding subsections (a) and (b) of section 1611, in any case in 
which the Commissioner takes action in accordance with subsection (a) 
to recover an overpayment from any person, neither that person, nor any 
individual whose eligibility or benefit amount is determined by 
considering any part of that person's income, shall, as a result of 
such action--
            ``(1) become eligible under the program of supplemental 
        security income benefits under title XVI, or
            ``(2) if such person or individual is already so eligible, 
        become eligible for increased benefits thereunder.
    ``(c) Program Under Title XVI.--For purposes of this section, the 
term `supplemental security income program authorized by title XVI' 
includes supplementary payments pursuant to an agreement for Federal 
administration under section 1616(a), and payments pursuant to an 
agreement entered into under section 212(b) of Public Law 93-66.''.
    (b) Conforming Amendments.--
            (1) Section 204 (42 U.S.C. 404) is amended by adding at the 
        end the following new subsection:
    ``(g) For payments which are adjusted or withheld to recover an 
overpayment of supplemental security income benefits paid under title 
XVI (including State supplementary payments which were paid under an 
agreement pursuant to section 1616(a) or section 212(b) of Public Law 
93-66), see section 1146.''.
            (2) Section 1631(b) is amended by adding at the end the 
        following new paragraph:
    ``(5) For the recovery of overpayments of benefits under this title 
from benefits payable under title II, see section 1146.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply to 
overpayments outstanding on or after such date.

SEC. 4223. REGULATIONS.

    Within 3 months after the date of the enactment of this Act, the 
Commissioner of Social Security shall prescribe such regulations as may 
be necessary to implement the amendments made by this chapter.

               CHAPTER 4--STATE SUPPLEMENTATION PROGRAMS

SEC. 4225. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS APPLICABLE TO 
              OPTIONAL STATE PROGRAMS FOR SUPPLEMENTATION OF SSI 
              BENEFITS.

    Section 1618 (42 U.S.C. 1382g) is hereby repealed.

   CHAPTER 5--STUDIES REGARDING SUPPLEMENTAL SECURITY INCOME PROGRAM

SEC. 4231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME PROGRAM.

    Title XVI (42 U.S.C. 1381 et seq.), as amended by section 4201(c) 
of this Act, is amended by adding at the end the following new section:

                       ``annual report on program

    ``Sec. 1637. (a) Not later than May 30 of each year, the 
Commissioner of Social Security shall prepare and deliver a report 
annually to the President and the Congress regarding the program under 
this title, including--
            ``(1) a comprehensive description of the program;
            ``(2) historical and current data on allowances and 
        denials, including number of applications and allowance rates 
        for initial determinations, reconsideration determinations, 
        administrative law judge hearings, appeals council reviews, and 
        Federal court decisions;
            ``(3) historical and current data on characteristics of 
        recipients and program costs, by recipient group (aged, blind, 
        disabled adults, and disabled children);
            ``(4) projections of future number of recipients and 
        program costs, through at least 25 years;
            ``(5) number of redeterminations and continuing disability 
        reviews, and the outcomes of such redeterminations and reviews;
            ``(6) data on the utilization of work incentives;
            ``(7) detailed information on administrative and other 
        program operation costs;
            ``(8) summaries of relevant research undertaken by the 
        Social Security Administration, or by other researchers;
            ``(9) State supplementation program operations;
            ``(10) a historical summary of statutory changes to this 
        title; and
            ``(11) such other information as the Commissioner deems 
        useful.
    ``(b) Each member of the Social Security Advisory Board shall be 
permitted to provide an individual report, or a joint report if agreed, 
of views of the program under this title, to be included in the annual 
report required under this section.''.

SEC. 4232. STUDY OF DISABILITY DETERMINATION PROCESS.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, and from funds otherwise appropriated, the 
Commissioner of Social Security shall make arrangements with the 
National Academy of Sciences, or other independent entity, to conduct a 
study of the disability determination process under titles II and XVI 
of the Social Security Act. This study shall be undertaken in 
consultation with professionals representing appropriate disciplines.
    (b) Study Components.--The study described in subsection (a) shall 
include--
            (1) an initial phase examining the appropriateness of, and 
        making recommendations regarding--
                    (A) the definitions of disability in effect on the 
                date of the enactment of this Act and the advantages 
                and disadvantages of alternative definitions; and
                    (B) the operation of the disability determination 
                process, including the appropriate method of performing 
                comprehensive assessments of individuals under age 18 
                with physical and mental impairments;
            (2) a second phase, which may be concurrent with the 
        initial phase, examining the validity, reliability, and 
        consistency with current scientific knowledge of the standards 
        and individual listings in the Listing of Impairments set forth 
        in appendix 1 of subpart P of part 404 of title 20, Code of 
        Federal Regulations, and of related evaluation procedures as 
        promulgated by the Commissioner of Social Security; and
            (3) such other issues as the applicable entity considers 
        appropriate.
    (c) Reports and Regulations.--
            (1) Reports.--The Commissioner of Social Security shall 
        request the applicable entity, to submit an interim report and 
        a final report of the findings and recommendations resulting 
        from the study described in this section to the President and 
        the Congress not later than 18 months and 24 months, 
        respectively, from the date of the contract for such study, and 
        such additional reports as the Commissioner deems appropriate 
        after consultation with the applicable entity.
            (2) Regulations.--The Commissioner of Social Security shall 
        review both the interim and final reports, and shall issue 
        regulations implementing any necessary changes following each 
        report.

SEC. 4233. STUDY BY GENERAL ACCOUNTING OFFICE.

    Not later than January 1, 1999, the Comptroller General of the 
United States shall study and report on--
            (1) the impact of the amendments made by, and the 
        provisions of, this subtitle on the supplemental security 
        income program under title XVI of the Social Security Act; and
            (2) extra expenses incurred by families of children 
        receiving benefits under such title that are not covered by 
        other Federal, State, or local programs.

       CHAPTER 6--NATIONAL COMMISSION ON THE FUTURE OF DISABILITY

SEC. 4241. ESTABLISHMENT.

    There is established a commission to be known as the National 
Commission on the Future of Disability (referred to in this chapter as 
the ``Commission'').

SEC. 4242. DUTIES OF THE COMMISSION.

    (a) In General.--The Commission shall develop and carry out a 
comprehensive study of all matters related to the nature, purpose, and 
adequacy of all Federal programs serving individuals with disabilities. 
In particular, the Commission shall study the disability insurance 
program under title II of the Social Security Act and the supplemental 
security income disability program under title XVI of such Act.
    (b) Matters Studied.--The Commission shall prepare an inventory of 
Federal programs serving individuals with disabilities, and shall 
examine--
            (1) trends and projections regarding the size and 
        characteristics of the population of individuals with 
        disabilities, and the implications of such analyses for program 
        planning;
            (2) the feasibility and design of performance standards for 
        the Nation's disability programs;
            (3) the adequacy of Federal efforts in rehabilitation 
        research and training, and opportunities to improve the lives 
        of individuals with disabilities through all manners of 
        scientific and engineering research; and
            (4) the adequacy of policy research available to the 
        Federal Government, and what actions might be undertaken to 
        improve the quality and scope of such research.
    (c) Recommendations.--The Commission shall submit to the 
appropriate committees of the Congress and to the President 
recommendations and, as appropriate, proposals for legislation, 
regarding--
            (1) which (if any) Federal disability programs should be 
        eliminated or augmented;
            (2) what new Federal disability programs (if any) should be 
        established;
            (3) the suitability of the organization and location of 
        disability programs within the Federal Government;
            (4) other actions the Federal Government should take to 
        prevent disabilities and disadvantages associated with 
        disabilities; and
            (5) such other matters as the Commission considers 
        appropriate.

SEC. 4243. MEMBERSHIP.

    (a) Number and Appointment.--
            (1) In general.--The Commission shall be composed of 15 
        members, of whom--
                    (A) five shall be appointed by the President, of 
                whom not more than 3 shall be of the same major 
                political party;
                    (B) three shall be appointed by the Majority Leader 
                of the Senate;
                    (C) two shall be appointed by the Minority Leader 
                of the Senate;
                    (D) three shall be appointed by the Speaker of the 
                House of Representatives; and
                    (E) two shall be appointed by the Minority Leader 
                of the House of Representatives.
            (2) Representation.--The Commission members shall be chosen 
        based on their education, training, or experience. In 
        appointing individuals as members of the Commission, the 
        President and the Majority and Minority Leaders of the Senate 
        and the Speaker and Minority Leader of the House of 
        Representatives shall seek to ensure that the membership of the 
        Commission reflects the general interests of the business and 
        taxpaying community and the diversity of individuals with 
        disabilities in the United States.
    (b) Comptroller General.--The Comptroller General of the United 
States shall advise the Commission on the methodology and approach of 
the study of the Commission.
    (c) Term of Appointment.--The members shall serve on the Commission 
for the life of the Commission.
    (d) Meetings.--The Commission shall locate its headquarters in the 
District of Columbia, and shall meet at the call of the Chairperson, 
but not less than 4 times each year during the life of the Commission.
    (e) Quorum.--Ten members of the Commission shall constitute a 
quorum, but a lesser number may hold hearings.
    (f) Chairperson and Vice Chairperson.--Not later than 15 days after 
the members of the Commission are appointed, such members shall 
designate a Chairperson and Vice Chairperson from among the members of 
the Commission.
    (g) Continuation of Membership.--If a member of the Commission 
becomes an officer or employee of any government after appointment to 
the Commission, the individual may continue as a member until a 
successor member is appointed.
    (h) Vacancies.--A vacancy on the Commission shall be filled in the 
manner in which the original appointment was made not later than 30 
days after the Commission is given notice of the vacancy.
    (i) Compensation.--Members of the Commission shall receive no 
additional pay, allowances, or benefits by reason of their service on 
the Commission.
    (j) 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.

SEC. 4244. STAFF AND SUPPORT SERVICES.

    (a) Director.--
            (1) Appointment.--Upon consultation with the members of the 
        Commission, the Chairperson shall appoint a Director of the 
        Commission.
            (2) Compensation.--The Director shall be paid the rate of 
        basic pay for level V of the Executive Schedule.
    (b) Staff.--With the approval of the Commission, the Director may 
appoint such personnel as the Director considers appropriate.
    (c) Applicability of Civil Service Laws.--The staff of the 
Commission shall be appointed without regard to the provisions of title 
5, United States Code, governing appointments in the competitive 
service, and shall be paid without regard to the provisions of chapter 
51 and subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates.
    (d) Experts and Consultants.--With the approval of the Commission, 
the Director may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code.
    (e) Staff of Federal Agencies.--Upon the request of the Commission, 
the head of any Federal agency may detail, on a reimbursable basis, any 
of the personnel of such agency to the Commission to assist in carrying 
out the duties of the Commission under this chapter.
    (f) Other Resources.--The Commission shall have reasonable access 
to materials, resources, statistical data, and other information from 
the Library of Congress and agencies and elected representatives of the 
executive and legislative branches of the Federal Government. The 
Chairperson of the Commission shall make requests for such access in 
writing when necessary.
    (g) Physical Facilities.--The Administrator of the General Services 
Administration shall locate suitable office space for the operation of 
the Commission. The facilities shall serve as the headquarters of the 
Commission and shall include all necessary equipment and incidentals 
required for proper functioning of the Commission.

SEC. 4245. POWERS OF COMMISSION.

    (a) Hearings.--The Commission may conduct public hearings or forums 
at the discretion of the Commission, at any time and place the 
Commission is able to secure facilities and witnesses, for the purpose 
of carrying out the duties of the Commission under this chapter.
    (b) Delegation of Authority.--Any member or agent of the Commission 
may, if authorized by the Commission, take any action the Commission is 
authorized to take by this section.
    (c) Information.--The Commission may secure directly from any 
Federal agency information necessary to enable the Commission to carry 
out its duties under this chapter. Upon request of the Chairperson or 
Vice Chairperson of the Commission, the head of a Federal agency shall 
furnish the information to the Commission to the extent permitted by 
law.
    (d) Gifts, Bequests, and Devises.--The Commission 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 Commission. 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 Commission.
    (e) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other Federal agencies.

SEC. 4246. REPORTS.

    (a) Interim Report.--Not later than 1 year prior to the date on 
which the Commission terminates pursuant to section 4247, the 
Commission shall submit an interim report to the President and to the 
Congress. The interim report shall contain a detailed statement of the 
findings and conclusions of the Commission, together with the 
Commission's recommendations for legislative and administrative action, 
based on the activities of the Commission.
    (b) Final Report.--Not later than the date on which the Commission 
terminates, the Commission shall submit to the Congress and to the 
President a final report containing--
            (1) a detailed statement of final findings, conclusions, 
        and recommendations; and
            (2) an assessment of the extent to which recommendations of 
        the Commission included in the interim report under subsection 
        (a) have been implemented.
    (c) Printing and Public Distribution.--Upon receipt of each report 
of the Commission under this section, the President shall--
            (1) order the report to be printed; and
            (2) make the report available to the public upon request.

SEC. 4247. TERMINATION.

    The Commission shall terminate on the date that is 2 years after 
the date on which the members of the Commission have met and designated 
a Chairperson and Vice Chairperson.

SEC. 4248. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out the purposes of the Commission.

                       Subtitle C--Child Support

SEC. 4300. REFERENCE TO SOCIAL SECURITY ACT.

    Except as otherwise specifically provided, wherever in this 
subtitle 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.

     CHAPTER 1--ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS

SEC. 4301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT 
              SERVICES.

    (a) State Plan Requirements.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) by striking paragraph (4) and inserting the following 
        new paragraph:
            ``(4) provide that the State will--
                    ``(A) provide services relating to the 
                establishment of paternity or the establishment, 
                modification, or enforcement of child support 
                obligations, as appropriate, under the plan with 
                respect to--
                            ``(i) each child for whom (I) assistance is 
                        provided under the State program funded under 
                        part A of this title, (II) benefits or services 
                        for foster care maintenance are provided under 
                        the State program funded under part E of this 
                        title, or (III) medical assistance is provided 
                        under the State plan under title XIX, unless, 
                        in accordance with paragraph (29), good cause 
                        or other exceptions exist;
                            ``(ii) any other child, if an individual 
                        applies for such services with respect to the 
                        child; and
                    ``(B) enforce any support obligation established 
                with respect to--
                            ``(i) a child with respect to whom the 
                        State provides services under the plan; or
                            ``(ii) the custodial parent of such a 
                        child;''; and
            (2) in paragraph (6)--
                    (A) by striking ``provide that'' and inserting 
                ``provide that--'';
                    (B) by striking subparagraph (A) and inserting the 
                following new subparagraph:
                    ``(A) services under the plan shall be made 
                available to residents of other States on the same 
                terms as to residents of the State submitting the 
                plan;'';
                    (C) in subparagraph (B), by inserting ``on 
                individuals not receiving assistance under any State 
                program funded under part A'' after ``such services 
                shall be imposed'';
                    (D) in each of subparagraphs (B), (C), (D), and 
                (E)--
                            (i) by indenting the subparagraph in the 
                        same manner as, and aligning the left margin of 
                        the subparagraph with the left margin of, the 
                        matter inserted by subparagraph (B) of this 
                        paragraph; and
                            (ii) by striking the final comma and 
                        inserting a semicolon; and
                    (E) in subparagraph (E), by indenting each of 
                clauses (i) and (ii) 2 additional ems.
    (b) Continuation of Services for Families Ceasing To Receive 
Assistance Under the State Program Funded Under Part A.--Section 454 
(42 U.S.C. 654) is amended--
            (1) by striking ``and'' at the end of paragraph (23);
            (2) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (3) by adding after paragraph (24) the following new 
        paragraph:
            ``(25) provide that if a family with respect to which 
        services are provided under the plan ceases to receive 
        assistance under the State program funded under part A, the 
        State shall provide appropriate notice to the family and 
        continue to provide such services, subject to the same 
        conditions and on the same basis as in the case of other 
        individuals to whom services are furnished under the plan, 
        except that an application or other request to continue 
        services shall not be required of such a family and paragraph 
        (6)(B) shall not apply to the family.''.
    (c) Conforming Amendments.--
            (1) Section 452(b) (42 U.S.C. 652(b)) is amended by 
        striking ``454(6)'' and inserting ``454(4)''.
            (2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended by striking ``454(6)'' each place it appears and 
        inserting ``454(4)(A)(ii)''.
            (3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
        amended by striking ``in the case of overdue support which a 
        State has agreed to collect under section 454(6)'' and 
        inserting ``in any other case''.
            (4) Section 466(e) (42 U.S.C. 666(e)) is amended by 
        striking ``paragraph (4) or (6) of section 454'' and inserting 
        ``section 454(4)''.

SEC. 4302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

    (a) In General.--Section 457 (42 U.S.C. 657) is amended to read as 
follows:

``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

    ``(a) In General.--Subject to subsection (e), an amount collected 
on behalf of a family as support by a State pursuant to a plan approved 
under this part shall be distributed as follows:
            ``(1) Families receiving assistance.--In the case of a 
        family receiving assistance from the State, the State shall--
                    ``(A) pay to the Federal Government the Federal 
                share of the amount so collected; and
                    ``(B) retain, or distribute to the family, the 
                State share of the amount so collected.
            ``(2) Families that formerly received assistance.--In the 
        case of a family that formerly received assistance from the 
        State:
                    ``(A) Current support payments.--To the extent that 
                the amount so collected does not exceed the amount 
                required to be paid to the family for the month in 
                which collected, the State shall distribute the amount 
                so collected to the family.
                    ``(B) Payments of arrearages.--To the extent that 
                the amount so collected exceeds the amount required to 
                be paid to the family for the month in which collected, 
                the State shall distribute the amount so collected as 
                follows:
                            ``(i) Distribution of arrearages that 
                        accrued after the family ceased to receive 
                        assistance.--
                                    ``(I) Pre-october 1997.--Except as 
                                provided in subclause (II), the 
                                provisions of this section (other than 
                                subsection (b)(1)) as in effect and 
                                applied on the day before the date of 
                                the enactment of section 4302 of the 
                                Personal Responsibility and Work 
                                Opportunity Act of 1996 shall apply 
                                with respect to the distribution of 
                                support arrearages that--
                                            ``(aa) accrued after the 
                                        family ceased to receive 
                                        assistance, and
                                            ``(bb) are collected before 
                                        October 1, 1997.
                                    ``(II) Post-september 1997.--With 
                                respect to the amount so collected on 
                                or after October 1, 1997 (or before 
                                such date, at the option of the 
                                State)--
                                            ``(aa) In general.--The 
                                        State shall first distribute 
                                        the amount so collected (other 
                                        than any amount described in 
                                        clause (iv)) to the family to 
                                        the extent necessary to satisfy 
                                        any support arrearages with 
                                        respect to the family that 
                                        accrued after the family ceased 
                                        to receive assistance from the 
                                        State.
                                            ``(bb) Reimbursement of 
                                        governments for assistance 
                                        provided to the family.--After 
                                        the application of division 
                                        (aa) and clause (ii)(II)(aa) 
                                        with respect to the amount so 
                                        collected, the State shall 
                                        retain the State share of the 
                                        amount so collected, and pay to 
                                        the Federal Government the 
                                        Federal share (as defined in 
                                        subsection (c)(2)) of the 
                                        amount so collected, but only 
                                        to the extent necessary to 
                                        reimburse amounts paid to the 
                                        family as assistance by the 
                                        State.
                                            ``(cc) Distribution of the 
                                        remainder to the family.--To 
                                        the extent that neither 
                                        division (aa) nor division (bb) 
                                        applies to the amount so 
                                        collected, the State shall 
                                        distribute the amount to the 
                                        family.
                            ``(ii) Distribution of arrearages that 
                        accrued before the family received 
                        assistance.--
                                    ``(I) Pre-october 2000.--Except as 
                                provided in subclause (II), the 
                                provisions of this section (other than 
                                subsection (b)(1)) as in effect and 
                                applied on the day before the date of 
                                the enactment of section 4302 of the 
                                Personal Responsibility and Work 
                                Opportunity Act of 1996 shall apply 
                                with respect to the distribution of 
                                support arrearages that--
                                            ``(aa) accrued before the 
                                        family received assistance, and
                                            ``(bb) are collected before 
                                        October 1, 2000.
                                    ``(II) Post-september 2000.--
                                Unless, based on the report required by 
                                paragraph (4), the Congress determines 
                                otherwise, with respect to the amount 
                                so collected on or after October 1, 
                                2000 (or before such date, at the 
                                option of the State)--
                                            ``(aa) In general.--The 
                                        State shall first distribute 
                                        the amount so collected (other 
                                        than any amount described in 
                                        clause (iv)) to the family to 
                                        the extent necessary to satisfy 
                                        any support arrearages with 
                                        respect to the family that 
                                        accrued before the family 
                                        received assistance from the 
                                        State.
                                            ``(bb) Reimbursement of 
                                        governments for assistance 
                                        provided to the family.--After 
                                        the application of clause 
                                        (i)(II)(aa) and division (aa) 
                                        with respect to the amount so 
                                        collected, the State shall 
                                        retain the State share of the 
                                        amount so collected, and pay to 
                                        the Federal Government the 
                                        Federal share (as defined in 
                                        subsection (c)(2)) of the 
                                        amount so collected, but only 
                                        to the extent necessary to 
                                        reimburse amounts paid to the 
                                        family as assistance by the 
                                        State.
                                            ``(cc) Distribution of the 
                                        remainder to the family.--To 
                                        the extent that neither 
                                        division (aa) nor division (bb) 
                                        applies to the amount so 
                                        collected, the State shall 
                                        distribute the amount to the 
                                        family.
                            ``(iii) Distribution of arrearages that 
                        accrued while the family received assistance.--
                        In the case of a family described in this 
                        subparagraph, the provisions of paragraph (1) 
                        shall apply with respect to the distribution of 
                        support arrearages that accrued while the 
                        family received assistance.
                            ``(iv) Amounts collected pursuant to 
                        section 464.--Notwithstanding any other 
                        provision of this section, any amount of 
                        support collected pursuant to section 464 shall 
                        be retained by the State to the extent past-due 
                        support has been assigned to the State as a 
                        condition of receiving assistance from the 
                        State, up to the amount necessary to reimburse 
                        the State for amounts paid to the family as 
                        assistance by the State. The State shall pay to 
                        the Federal Government the Federal share of the 
                        amounts so retained. To the extent the amount 
                        collected pursuant to section 464 exceeds the 
                        amount so retained, the State shall distribute 
                        the excess to the family.
                            ``(v) Ordering rules for distributions.--
                        For purposes of this subparagraph, unless an 
                        earlier effective date is required by this 
                        section, effective October 1, 2000, the State 
                        shall treat any support arrearages collected, 
                        except for amounts collected pursuant to 
                        section 464, as accruing in the following 
                        order:
                                    ``(I) To the period after the 
                                family ceased to receive assistance.
                                    ``(II) To the period before the 
                                family received assistance.
                                    ``(III) To the period while the 
                                family was receiving assistance.
            ``(3) Families that never received assistance.--In the case 
        of any other family, the State shall distribute the amount so 
        collected to the family.
            ``(4) Study and report.--Not later than October 1, 1998, 
        the Secretary shall report to the Congress the Secretary's 
        findings with respect to--
                    ``(A) whether the distribution of post-assistance 
                arrearages to families has been effective in moving 
                people off of welfare and keeping them off of welfare;
                    ``(B) whether early implementation of a pre-
                assistance arrearage program by some States has been 
                effective in moving people off of welfare and keeping 
                them off of welfare;
                    ``(C) what the overall impact has been of the 
                amendments made by the Personal Responsibility and Work 
                Opportunity Act of 1996 with respect to child support 
                enforcement in moving people off of welfare and keeping 
                them off of welfare; and
                    ``(D) based on the information and data the 
                Secretary has obtained, what changes, if any, should be 
                made in the policies related to the distribution of 
                child support arrearages.
    ``(b) Continuation Of Assignments.--Any rights to support 
obligations, which were assigned to a State as a condition of receiving 
assistance from the State under part A and which were in effect on the 
day before the date of the enactment of the Personal Responsibility and 
Work Opportunity Act of 1996, shall remain assigned after such date.
    ``(c) Definitions.--As used in subsection (a):
            ``(1) Assistance.--The term `assistance from the State' 
        means--
                    ``(A) assistance under the State program funded 
                under part A or under the State plan approved under 
                part A of this title (as in effect on the day before 
                the date of the enactment of the Personal 
                Responsibility and Work Opportunity Act of 1996); and
                    ``(B) foster care maintenance payments under the 
                State plan approved under part E of this title.
            ``(2) Federal share.--The term `Federal share' means that 
        portion of the amount collected resulting from the application 
        of the Federal medical assistance percentage in effect for the 
        fiscal year in which the amount is collected.
            ``(3) Federal medical assistance percentage.--The term 
        `Federal medical assistance percentage' means--
                    ``(A) the Federal medical assistance percentage (as 
                defined in section 1118), in the case of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa; or
                    ``(B) the Federal medical assistance percentage (as 
                defined in section 1905(b), as in effect on September 
                30, 1996) in the case of any other State.
            ``(4) State share.--The term `State share' means 100 
        percent minus the Federal share.
    ``(d) Hold Harmless Provision.--If the amounts collected which 
could be retained by the State in the fiscal year (to the extent 
necessary to reimburse the State for amounts paid to families as 
assistance by the State) are less than the State share of the amounts 
collected in fiscal year 1995 (determined in accordance with section 
457 as in effect on the day before the date of the enactment of the 
Personal Responsibility and Work Opportunity Act of 1996), the State 
share for the fiscal year shall be an amount equal to the State share 
in fiscal year 1995.
    ``(e) Gap Payments not Subject to Distribution Under This 
Section.--At State option, this section shall not apply to any amount 
collected on behalf of a family as support by the State (and paid to 
the family in addition to the amount of assistance otherwise payable to 
the family) pursuant to a plan approved under this part if such amount 
would have been paid to the family by the State under section 
402(a)(28), as in effect and applied on the day before the date of the 
enactment of section 4302 of the Personal Responsibility and Work 
Opportunity Act of 1996. For purposes of subsection (d), the State 
share of such amount paid to the family shall be considered amounts 
which could be retained by the State if such payments were reported by 
the State as part of the State share of amounts collected in fiscal 
year 1995.''.
    (b) Conforming Amendments.--
            (1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by 
        striking ``section 457(b)(4) or (d)(3)'' and inserting 
        ``section 457''.
            (2) Section 454 (42 U.S.C. 654) is amended--
                    (A) in paragraph (11)--
                            (i) by striking ``(11)'' and inserting 
                        ``(11)(A)''; and
                            (ii) by inserting after the semicolon 
                        ``and''; and
                    (B) by redesignating paragraph (12) as subparagraph 
                (B) of paragraph (11).
    (c) Effective Dates.--
            (1) In General.--Except as provided in paragraph (2), the 
        amendments made by this section shall be effective on October 
        1, 1996, or earlier at the State's option.
            (2) Conforming amendments.--The amendments made by 
        subsection (b)(2) shall become effective on the date of the 
        enactment of this Act.

SEC. 4303. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 4301(b) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by adding after paragraph (25) the following new 
        paragraph:
            ``(26) will have in effect safeguards, applicable to all 
        confidential information handled by the State agency, that are 
        designed to protect the privacy rights of the parties, 
        including--
                    ``(A) safeguards against unauthorized use or 
                disclosure of information relating to proceedings or 
                actions to establish paternity, or to establish or 
                enforce support;
                    ``(B) prohibitions against the release of 
                information on the whereabouts of 1 party to another 
                party against whom a protective order with respect to 
                the former party has been entered; and
                    ``(C) prohibitions against the release of 
                information on the whereabouts of 1 party to another 
                party if the State has reason to believe that the 
                release of the information may result in physical or 
                emotional harm to the former party.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

SEC. 4304. RIGHTS TO NOTIFICATION OF HEARINGS.

    (a) In General.--Section 454 (42 U.S.C. 654), as amended by section 
4302(b)(2) of this Act, is amended by inserting after paragraph (11) 
the following new paragraph:
            ``(12) provide for the establishment of procedures to 
        require the State to provide individuals who are applying for 
        or receiving services under the State plan, or who are parties 
        to cases in which services are being provided under the State 
        plan--
                    ``(A) with notice of all proceedings in which 
                support obligations might be established or modified; 
                and
                    ``(B) with a copy of any order establishing or 
                modifying a child support obligation, or (in the case 
                of a petition for modification) a notice of 
                determination that there should be no change in the 
                amount of the child support award, within 14 days after 
                issuance of such order or determination;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

                  CHAPTER 2--LOCATE AND CASE TRACKING

SEC. 4311. STATE CASE REGISTRY.

    Section 454A, as added by section 4344(a)(2) of this Act, is 
amended by adding at the end the following new subsections:
    ``(e) State Case Registry.--
            ``(1) Contents.--The automated system required by this 
        section shall include a registry (which shall be known as the 
        `State case registry') that contains records with respect to--
                    ``(A) each case in which services are being 
                provided by the State agency under the State plan 
                approved under this part; and
                    ``(B) each support order established or modified in 
                the State on or after October 1, 1998.
            ``(2) Linking of local registries.--The State case registry 
        may be established by linking local case registries of support 
        orders through an automated information network, subject to 
        this section.
            ``(3) Use of standardized data elements.--Such records 
        shall use standardized data elements for both parents (such as 
        names, social security numbers and other uniform identification 
        numbers, dates of birth, and case identification numbers), and 
        contain such other information (such as on case status) as the 
        Secretary may require.
            ``(4) Payment records.--Each case record in the State case 
        registry with respect to which services are being provided 
        under the State plan approved under this part and with respect 
        to which a support order has been established shall include a 
        record of--
                    ``(A) the amount of monthly (or other periodic) 
                support owed under the order, and other amounts 
                (including arrearages, interest or late payment 
                penalties, and fees) due or overdue under the order;
                    ``(B) any amount described in subparagraph (A) that 
                has been collected;
                    ``(C) the distribution of such collected amounts;
                    ``(D) the birth date of any child for whom the 
                order requires the provision of support; and
                    ``(E) the amount of any lien imposed with respect 
                to the order pursuant to section 466(a)(4).
            ``(5) Updating and monitoring.--The State agency operating 
        the automated system required by this section shall promptly 
        establish and update, maintain, and regularly monitor, case 
        records in the State case registry with respect to which 
        services are being provided under the State plan approved under 
        this part, on the basis of--
                    ``(A) information on administrative actions and 
                administrative and judicial proceedings and orders 
                relating to paternity and support;
                    ``(B) information obtained from comparison with 
                Federal, State, or local sources of information;
                    ``(C) information on support collections and 
                distributions; and
                    ``(D) any other relevant information.
    ``(f) Information Comparisons and Other Disclosures of 
Information.--The State shall use the automated system required by this 
section to extract information from (at such times, and in such 
standardized format or formats, as may be required by the Secretary), 
to share and compare information with, and to receive information from, 
other data bases and information comparison services, in order to 
obtain (or provide) information necessary to enable the State agency 
(or the Secretary or other State or Federal agencies) to carry out this 
part, subject to section 6103 of the Internal Revenue Code of 1986. 
Such information comparison activities shall include the following:
            ``(1) Federal case registry of child support orders.--
        Furnishing to the Federal Case Registry of Child Support Orders 
        established under section 453(h) (and update as necessary, with 
        information including notice of expiration of orders) the 
        minimum amount of information on child support cases recorded 
        in the State case registry that is necessary to operate the 
        registry (as specified by the Secretary in regulations).
            ``(2) Federal parent locator service.--Exchanging 
        information with the Federal Parent Locator Service for the 
        purposes specified in section 453.
            ``(3) Temporary family assistance and medicaid agencies.--
        Exchanging information with State agencies (of the State and of 
        other States) administering programs funded under part A, 
        programs operated under a State plan approved under title XIX, 
        and other programs designated by the Secretary, as necessary to 
        perform State agency responsibilities under this part and under 
        such programs.
            ``(4) Intrastate and interstate information comparisons.--
        Exchanging information with other agencies of the State, 
        agencies of other States, and interstate information networks, 
as necessary and appropriate to carry out (or assist other States to 
carry out) the purposes of this part.''.

SEC. 4312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 4301(b) and 4303(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (25);
            (2) by striking the period at the end of paragraph (26) and 
        inserting ``; and''; and
            (3) by adding after paragraph (26) the following new 
        paragraph:
            ``(27) provide that, on and after October 1, 1998, the 
        State agency will--
                    ``(A) operate a State disbursement unit in 
                accordance with section 454B; and
                    ``(B) have sufficient State staff (consisting of 
                State employees) and (at State option) contractors 
                reporting directly to the State agency to--
                            ``(i) monitor and enforce support 
                        collections through the unit in cases being 
                        enforced by the State pursuant to section 
                        454(4) (including carrying out the automated 
                        data processing responsibilities described in 
                        section 454A(g)); and
                            ``(ii) take the actions described in 
                        section 466(c)(1) in appropriate cases.''.
    (b) Establishment of State Disbursement Unit.--Part D of title IV 
(42 U.S.C. 651-669), as amended by section 4344(a)(2) of this Act, is 
amended by inserting after section 454A the following new section:

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

    ``(a) State Disbursement Unit.--
            ``(1) In general.--In order for a State to meet the 
        requirements of this section, the State agency must establish 
        and operate a unit (which shall be known as the `State 
        disbursement unit') for the collection and disbursement of 
        payments under support orders--
                    ``(A) in all cases being enforced by the State 
                pursuant to section 454(4); and
                    ``(B) in all cases not being enforced by the State 
                under this part in which the support order is initially 
                issued in the State on or after January 1, 1994, and in 
                which the income of the noncustodial parent are subject 
                to withholding pursuant to section 466(a)(8)(B).
            ``(2) Operation.--The State disbursement unit shall be 
        operated--
                    ``(A) directly by the State agency (or 2 or more 
                State agencies under a regional cooperative agreement), 
                or (to the extent appropriate) by a contractor 
                responsible directly to the State agency; and
                    ``(B) except in cases described in paragraph 
                (1)(B), in coordination with the automated system 
                established by the State pursuant to section 454A.
            ``(3) Linking of local disbursement units.--The State 
        disbursement unit may be established by linking local 
        disbursement units through an automated information network, 
        subject to this section, if the Secretary agrees that the 
        system will not cost more nor take more time to establish or 
        operate than a centralized system. In addition, employers shall 
        be given 1 location to which income withholding is sent.
    ``(b) Required Procedures.--The State disbursement unit shall use 
automated procedures, electronic processes, and computer-driven 
technology to the maximum extent feasible, efficient, and economical, 
for the collection and disbursement of support payments, including 
procedures--
            ``(1) for receipt of payments from parents, employers, and 
        other States, and for disbursements to custodial parents and 
        other obligees, the State agency, and the agencies of other 
        States;
            ``(2) for accurate identification of payments;
            ``(3) to ensure prompt disbursement of the custodial 
        parent's share of any payment; and
            ``(4) to furnish to any parent, upon request, timely 
        information on the current status of support payments under an 
        order requiring payments to be made by or to the parent, except 
        that, with respect to a case described in subsection (a)(1)(B), 
        the State disbursement unit shall not be required to maintain 
        records of payments which, after the effective date of this 
        section, are made to, and distributed by, the unit.
    ``(c) Timing of Disbursements.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        State disbursement unit shall distribute all amounts payable 
        under section 457(a) within 2 business days after receipt from 
        the employer or other source of periodic income, if sufficient 
        information identifying the payee is provided.
            ``(2) Permissive retention of arrearages.--The State 
        disbursement unit may delay the distribution of collections 
        toward arrearages until the resolution of any timely appeal 
        with respect to such arrearages.
    ``(d) Business Day Defined.--As used in this section, the term 
`business day' means a day on which State offices are open for regular 
business.''.
    (c) Use of Automated System.--Section 454A, as added by section 
4344(a)(2) and as amended by section 4311 of this Act, is amended by 
adding at the end the following new subsection:
    ``(g) Collection and Distribution of Support Payments.--
            ``(1) In general.--The State shall use the automated system 
        required by this section, to the maximum extent feasible, to 
        assist and facilitate the collection and disbursement of 
        support payments through the State disbursement unit operated 
        under section 454B, through the performance of functions, 
        including, at a minimum--
                    ``(A) transmission of orders and notices to 
                employers (and other debtors) for the withholding of 
                income--
                            ``(i) within 2 business days after receipt 
                        of notice of, and the income source subject to, 
                        such withholding from a court, another State, 
                        an employer, the Federal Parent Locator 
                        Service, or another source recognized by the 
                        State; and
                            ``(ii) using uniform formats prescribed by 
                        the Secretary;
                    ``(B) ongoing monitoring to promptly identify 
                failures to make timely payment of support; and
                    ``(C) automatic use of enforcement procedures 
                (including procedures authorized pursuant to section 
                466(c)) if payments are not timely made.
            ``(2) Business day defined.--As used in paragraph (1), the 
        term `business day' means a day on which State offices are open 
        for regular business.''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall become effective on 
        October 1, 1998.
            (2) Limited exception to unit handling payments.--
        Notwithstanding section 454B(b)(1) of the Social Security Act, 
        as added by this section, any State which, as of the date of 
        the enactment of this Act, processes the receipt of child 
        support payments through local courts may, at the option of the 
        State, continue to process through September 30, 1999, such 
        payments through such courts as processed such payments on or 
        before such date of enactment.
    (e) Sense of the Congress.--It is the sense of the Congress that, 
in determining whether to comply with section 454B of the Social 
Security Act by establishing a single, centralized unit for the 
collection and disbursement of support payments or by linking together 
through automation local units for the collection and disbursement of 
support payments, a State should choose the method of compliance which 
best meets the needs of parents, employers, and children.

SEC. 4313. STATE DIRECTORY OF NEW HIRES.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 4301(b), 4303(a) and 4312(a) of this Act, is 
amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by adding after paragraph (27) the following new 
        paragraph:
            ``(28) provide that, on and after October 1, 1997, the 
        State will operate a State Directory of New Hires in accordance 
        with section 453A.''.
    (b) State Directory of New Hires.--Part D of title IV (42 U.S.C. 
651-669) is amended by inserting after section 453 the following new 
section:

``SEC. 453A. STATE DIRECTORY OF NEW HIRES.

    ``(a) Establishment.--
            ``(1) In general.--
                    ``(A) Requirement for States that have no 
                directory.--Except as provided in subparagraph (B), not 
                later than October 1, 1997, each State shall establish 
                an automated directory (to be known as the `State 
                Directory of New Hires') which shall contain 
                information supplied in accordance with subsection (b) 
                by employers on each newly hired employee.
                    ``(B) States with new hire reporting in 
                existence.--A State which has a new hire reporting law 
                in existence on the date of the enactment of this 
                section may continue to operate under the State law, 
                but the State must meet the requirements of subsection 
                (g)(2) not later than October 1, 1997, and the 
                requirements of this section (other than subsection 
                (g)(2)) not later than October 1, 1998.
            ``(2) Definitions.--As used in this section:
                    ``(A) Employee.--The term `employee'--
                            ``(i) means an individual who is an 
                        employee within the meaning of chapter 24 of 
                        the Internal Revenue Code of 1986; and
                            ``(ii) does not include an employee of a 
                        Federal or State agency performing intelligence 
                        or counterintelligence functions, if the head 
                        of such agency has determined that reporting 
                        pursuant to paragraph (1) with respect to the 
                        employee could endanger the safety of the 
                        employee or compromise an ongoing investigation 
                        or intelligence mission.
                    ``(B) Employer.--
                            ``(i) In general.--The term `employer' has 
                        the meaning given such term in section 3401(d) 
                        of the Internal Revenue Code of 1986 and 
                        includes any governmental entity and any labor 
                        organization.
                            ``(ii) Labor organization.--The term `labor 
                        organization' shall have the meaning given such 
                        term in section 2(5) of the National Labor 
                        Relations Act, and includes any entity (also 
                        known as a `hiring hall') which is used by the 
                        organization and an employer to carry out 
                        requirements described in section 8(f)(3) of 
                        such Act of an agreement between the 
                        organization and the employer.
    ``(b) Employer Information.--
            ``(1) Reporting requirement.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), each employer shall furnish 
                to the Directory of New Hires of the State in which a 
                newly hired employee works, a report that contains the 
                name, address, and social security number of the 
                employee, and the name and address of, and identifying 
                number assigned under section 6109 of the Internal 
                Revenue Code of 1986 to, the employer.
                    ``(B) Multistate employers.--An employer that has 
                employees who are employed in 2 or more States and that 
                transmits reports magnetically or electronically may 
comply with subparagraph (A) by designating 1 State in which such 
employer has employees to which the employer will transmit the report 
described in subparagraph (A), and transmitting such report to such 
State. Any employer that transmits reports pursuant to this 
subparagraph shall notify the Secretary in writing as to which State 
such employer designates for the purpose of sending reports.
                    ``(C) Federal government employers.--Any 
                department, agency, or instrumentality of the United 
                States shall comply with subparagraph (A) by 
                transmitting the report described in subparagraph (A) 
                to the National Directory of New Hires established 
                pursuant to section 453.
            ``(2) Timing of report.--Each State may provide the time 
        within which the report required by paragraph (1) shall be made 
        with respect to an employee, but such report shall be made--
                    ``(A) not later than 20 days after the date the 
                employer hires the employee; or
                    ``(B) in the case of an employer transmitting 
                reports magnetically or electronically, by 2 monthly 
                transmissions (if necessary) not less than 12 days nor 
                more than 16 days apart.
    ``(c) Reporting Format and Method.--Each report required by 
subsection (b) shall be made on a W-4 form or, at the option of the 
employer, an equivalent form, and may be transmitted by 1st class mail, 
magnetically, or electronically.
    ``(d) Civil Money Penalties on Noncomplying Employers.--The State 
shall have the option to set a State civil money penalty which shall be 
less than--
            ``(1) $25; or
            ``(2) $500 if, under State law, the failure is the result 
        of a conspiracy between the employer and the employee to not 
        supply the required report or to supply a false or incomplete 
        report.
    ``(e) Entry of Employer Information.--Information shall be entered 
into the data base maintained by the State Directory of New Hires 
within 5 business days of receipt from an employer pursuant to 
subsection (b).
    ``(f) Information Comparisons.--
            ``(1) In general.--Not later than May 1, 1998, an agency 
        designated by the State shall, directly or by contract, conduct 
        automated comparisons of the social security numbers reported 
        by employers pursuant to subsection (b) and the social security 
        numbers appearing in the records of the State case registry for 
        cases being enforced under the State plan.
            ``(2) Notice of match.--When an information comparison 
        conducted under paragraph (1) reveals a match with respect to 
        the social security number of an individual required to provide 
        support under a support order, the State Directory of New Hires 
        shall provide the agency administering the State plan approved 
        under this part of the appropriate State with the name, 
        address, and social security number of the employee to whom the 
        social security number is assigned, and the name and address 
        of, and identifying number assigned under section 6109 of the 
        Internal Revenue Code of 1986 to, the employer.
    ``(g) Transmission of Information.--
            ``(1) Transmission of wage withholding notices to 
        employers.--Within 2 business days after the date information 
        regarding a newly hired employee is entered into the State 
        Directory of New Hires, the State agency enforcing the 
        employee's child support obligation shall transmit a notice to 
        the employer of the employee directing the employer to withhold 
        from the income of the employee an amount equal to the monthly 
        (or other periodic) child support obligation (including any 
        past due support obligation) of the employee, unless the 
        employee's income is not subject to withholding pursuant to 
        section 466(b)(3).
            ``(2) Transmissions to the national directory of new 
        hires.--
                    ``(A) New hire information.--Within 3 business days 
                after the date information regarding a newly hired 
                employee is entered into the State Directory of New 
                Hires, the State Directory of New Hires shall furnish 
                the information to the National Directory of New Hires.
                    ``(B) Wage and unemployment compensation 
                information.--The State Directory of New Hires shall, 
                on a quarterly basis, furnish to the National Directory 
                of New Hires extracts of the reports required under 
                section 303(a)(6) to be made to the Secretary of Labor 
                concerning the wages and unemployment compensation paid 
                to individuals, by such dates, in such format, and 
                containing such information as the Secretary of Health 
                and Human Services shall specify in regulations.
            ``(3) Business day defined.--As used in this subsection, 
        the term `business day' means a day on which State offices are 
        open for regular business.
    ``(h) Other Uses of New Hire Information.--
            ``(1) Location of child support obligors.--The agency 
        administering the State plan approved under this part shall use 
        information received pursuant to subsection (f)(2) to locate 
        individuals for purposes of establishing paternity and 
        establishing, modifying, and enforcing child support 
        obligations, and may disclose such information to any agent of 
        the agency that is under contract with the agency to carry out 
        such purposes.
            ``(2) Verification of eligibility for certain programs.--A 
        State agency responsible for administering a program specified 
        in section 1137(b) shall have access to information reported by 
        employers pursuant to subsection (b) of this section for 
        purposes of verifying eligibility for the program.
            ``(3) Administration of employment security and workers' 
        compensation.--State agencies operating employment security and 
        workers' compensation programs shall have access to information 
        reported by employers pursuant to subsection (b) for the 
        purposes of administering such programs.''.
    (c) Quarterly Wage Reporting.--Section 1137(a)(3) (42 U.S.C. 1320b-
7(a)(3)) is amended--
            (1) by inserting ``(including State and local governmental 
        entities and labor organizations (as defined in section 
        453A(a)(2)(B)(iii))'' after ``employers''; and
            (2) by inserting ``, and except that no report shall be 
        filed with respect to an employee of a State or local agency 
        performing intelligence or counterintelligence functions, if 
        the head of such agency has determined that filing such a 
        report could endanger the safety of the employee or compromise 
        an ongoing investigation or intelligence mission'' after 
        ``paragraph (2)''.
    (d) Disclosure to Certain Agents.--Section 303(e) (42 U.S.C. 
503(e)) is amended by adding at the end the following:
    ``(5) A State or local child support enforcement agency may 
disclose to any agent of the agency that is under contract with the 
agency to carry out the purposes described in paragraph (1)(B) wage 
information that is disclosed to an officer or employee of the agency 
under paragraph (1)(A). Any agent of a State or local child support 
agency that receives wage information under this paragraph shall comply 
with the safeguards established pursuant to paragraph (1)(B).''.

SEC. 4314. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--
            (1) In general.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is 
        amended to read as follows:
            ``(1)(A) Procedures described in subsection (b) for the 
        withholding from income of amounts payable as support in cases 
        subject to enforcement under the State plan.
            ``(B) Procedures under which the income of a person with a 
        support obligation imposed by a support order issued (or 
        modified) in the State before October 1, 1996, if not otherwise 
subject to withholding under subsection (b), shall become subject to 
withholding as provided in subsection (b) if arrearages occur, without 
the need for a judicial or administrative hearing.''.
            (2) Conforming amendments.--
                    (A) Section 466(b) (42 U.S.C. 666(b)) is amended in 
                the matter preceding paragraph (1), by striking 
                ``subsection (a)(1)'' and inserting ``subsection 
                (a)(1)(A)''.
                    (B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is 
                amended to read as follows:
            ``(4)(A) Such withholding must be carried out in full 
        compliance with all procedural due process requirements of the 
        State, and the State must send notice to each noncustodial 
        parent to whom paragraph (1) applies--
                    ``(i) that the withholding has commenced; and
                    ``(ii) of the procedures to follow if the 
                noncustodial parent desires to contest such withholding 
                on the grounds that the withholding or the amount 
                withheld is improper due to a mistake of fact.
            ``(B) The notice under subparagraph (A) of this paragraph 
        shall include the information provided to the employer under 
        paragraph (6)(A).''.
                    (C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is 
                amended by striking all that follows ``administered 
                by'' and inserting ``the State through the State 
                disbursement unit established pursuant to section 454B, 
                in accordance with the requirements of section 454B.''.
                    (D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) 
                is amended--
                            (i) in clause (i), by striking ``to the 
                        appropriate agency'' and all that follows and 
                        inserting ``to the State disbursement unit 
                        within 5 business days after the date the 
                        amount would (but for this subsection) have 
                        been paid or credited to the employee, for 
                        distribution in accordance with this part. The 
                        employer shall withhold funds as directed in 
                        the notice. For terms and conditions for 
                        withholding income that are not specified in a 
                        notice issued by another State, the employer 
                        shall apply the law of the State in which the 
                        obligor works. An employer who complies with an 
                        income withholding notice that is regular on 
                        its face shall not be subject to civil 
                        liability to any individual or agency for 
                        conduct in compliance with the notice.''.
                            (ii) in clause (ii), by inserting ``be in a 
                        standard format prescribed by the Secretary, 
                        and'' after ``shall''; and
                            (iii) by adding at the end the following 
                        new clause:
            ``(iii) As used in this subparagraph, the term `business 
        day' means a day on which State offices are open for regular 
        business.''.
                    (E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) 
                is amended by striking ``any employer'' and all that 
                follows and inserting ``any employer who--
                    ``(i) discharges from employment, refuses to 
                employ, or takes disciplinary action against any 
                noncustodial parent subject to income withholding 
                required by this subsection because of the existence of 
                such withholding and the obligations or additional 
                obligations which it imposes upon the employer; or
                    ``(ii) fails to withhold support from income or to 
                pay such amounts to the State disbursement unit in 
                accordance with this subsection.''.
                    (F) Section 466(b) (42 U.S.C. 666(b)) is amended by 
                adding at the end the following new paragraph:
            ``(11) Procedures under which the agency administering the 
        State plan approved under this part may execute a withholding 
        order without advance notice to the obligor, including issuing 
        the withholding order through electronic means.''.
    (b) Definition of Income.--
            (1) In general.--Section 466(b)(8) (42 U.S.C. 666(b)(8)) is 
        amended to read as follows:
            ``(8) For purposes of subsection (a) and this subsection, 
        the term `income' means any periodic form of payment due to an 
        individual, regardless of source, including wages, salaries, 
        commissions, bonuses, worker's compensation, disability, 
        payments pursuant to a pension or retirement program, and 
        interest.''.
            (2) Conforming amendments.--
                    (A) Subsections (a)(8)(A), (a)(8)(B)(i), (b)(3)(A), 
                (b)(3)(B), (b)(6)(A)(i), and (b)(6)(C), and (b)(7) of 
                section 466 (42 U.S.C. 666(a)(8)(A), (a)(8)(B)(i), 
                (b)(3)(A), (b)(3)(B), (b)(6)(A)(i), and (b)(6)(C), and 
                (b)(7)) are each amended by striking ``wages'' each 
                place such term appears and inserting ``income''.
                    (B) Section 466(b)(1) (42 U.S.C. 666(b)(1)) is 
                amended by striking ``wages (as defined by the State 
                for purposes of this section)'' and inserting 
                ``income''.
    (c) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.

SEC. 4315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)) is amended by inserting after 
paragraph (11) the following new paragraph:
            ``(12) Locator information from interstate networks.--
        Procedures to ensure that all Federal and State agencies 
        conducting activities under this part have access to any system 
        used by the State to locate an individual for purposes relating 
        to motor vehicles or law enforcement.''.

SEC. 4316. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.

    (a) Expanded Authority To Locate Individuals and Assets.--Section 
453 (42 U.S.C. 653) is amended--
            (1) in subsection (a), by striking all that follows 
        ``subsection (c))'' and inserting ``, for the purpose of 
        establishing parentage, establishing, setting the amount of, 
        modifying, or enforcing child support obligations, or enforcing 
        child custody or visitation orders--
            ``(1) information on, or facilitating the discovery of, the 
        location of any individual--
                    ``(A) who is under an obligation to pay child 
                support or provide child custody or visitation rights;
                    ``(B) against whom such an obligation is sought;
                    ``(C) to whom such an obligation is owed,
        including the individual's social security number (or numbers), 
        most recent address, and the name, address, and employer 
        identification number of the individual's employer;
            ``(2) information on the individual's wages (or other 
        income) from, and benefits of, employment (including rights to 
        or enrollment in group health care coverage); and
            ``(3) information on the type, status, location, and amount 
        of any assets of, or debts owed by or to, any such 
        individual.''; and
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``social security'' and all that follows 
                through ``absent parent'' and inserting ``information 
                described in subsection (a)''; and
                    (B) in the flush paragraph at the end, by adding 
                the following: ``No information shall be disclosed to 
                any person if the State has notified the Secretary that 
                the State has reasonable evidence of domestic violence 
                or child abuse and the disclosure of such information 
                could be harmful to the custodial parent or the child 
                of such parent. Information received or transmitted 
                pursuant to this section shall be subject to the 
                safeguard provisions contained in section 454(26).''.
    (b) Authorized Person for Information Regarding Visitation 
Rights.--Section 453(c) (42 U.S.C. 653(c)) is amended--
            (1) in paragraph (1), by striking ``support'' and inserting 
        ``support or to seek to enforce orders providing child custody 
        or visitation rights''; and
            (2) in paragraph (2), by striking ``, or any agent of such 
        court; and'' and inserting ``or to issue an order against a 
        resident parent for child custody or visitation rights, or any 
        agent of such court;''.
    (c) Reimbursement for Information From Federal Agencies.--Section 
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th sentence by 
inserting ``in an amount which the Secretary determines to be 
reasonable payment for the information exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the information)'' before the period.
    (d) Reimbursement for Reports by State Agencies.--Section 453 (42 
U.S.C. 653) is amended by adding at the end the following new 
subsection:
    ``(g) Reimbursement for Reports by State Agencies.--The Secretary 
may reimburse Federal and State agencies for the costs incurred by such 
entities in furnishing information requested by the Secretary under 
this section in an amount which the Secretary determines to be 
reasonable payment for the information exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the information).''.
    (e) Conforming Amendments.--
            (1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 
        463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), 
        and 663(f)) are each amended by inserting ``Federal'' before 
        ``Parent'' each place such term appears.
            (2) Section 453 (42 U.S.C. 653) is amended in the heading 
        by adding ``federal'' before ``parent''.
    (f) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (d) of this section, is amended by adding at the end the 
following new subsections:
    ``(h) Federal Case Registry of Child Support Orders.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering programs under State plans 
        approved under this part and programs funded under part A, and 
        for the other purposes specified in this section, the Secretary 
        shall establish and maintain in the Federal Parent Locator 
        Service an automated registry (which shall be known as the 
        `Federal Case Registry of Child Support Orders'), which shall 
        contain abstracts of support orders and other information 
        described in paragraph (2) with respect to each case in each 
        State case registry maintained pursuant to section 454A(e), as 
        furnished (and regularly updated), pursuant to section 454A(f), 
        by State agencies administering programs under this part.
            ``(2) Case information.--The information referred to in 
        paragraph (1) with respect to a case shall be such information 
        as the Secretary may specify in regulations (including the 
        names, social security numbers or other uniform identification 
        numbers, and State case identification numbers) to identify the 
        individuals who owe or are owed support (or with respect to or 
        on behalf of whom support obligations are sought to be 
        established), and the State or States which have the case.
    ``(i) National Directory of New Hires.--
            ``(1) In general.--In order to assist States in 
        administering programs under State plans approved under this 
        part and programs funded under part A, and for the other 
        purposes specified in this section, the Secretary shall, not 
        later than October 1, 1997, establish and maintain in the 
        Federal Parent Locator Service an automated directory to be 
        known as the National Directory of New Hires, which shall 
        contain the information supplied pursuant to section 
        453A(g)(2).
            ``(2) Entry of data.--Information shall be entered into the 
        data base maintained by the National Directory of New Hires 
        within 2 business days of receipt pursuant to section 
        453A(g)(2).
            ``(3) Administration of federal tax laws.--The Secretary of 
        the Treasury shall have access to the information in the 
        National Directory of New Hires for purposes of administering 
        section 32 of the Internal Revenue Code of 1986, or the advance 
payment of the earned income tax credit under section 3507 of such 
Code, and verifying a claim with respect to employment in a tax return.
            ``(4) List of multistate employers.--The Secretary shall 
        maintain within the National Directory of New Hires a list of 
        multistate employers that report information regarding newly 
        hired employees pursuant to section 453A(b)(1)(B), and the 
        State which each such employer has designated to receive such 
        information.
    ``(j) Information Comparisons and Other Disclosures.--
            ``(1) Verification by social security administration.--
                    ``(A) In general.--The Secretary shall transmit 
                information on individuals and employers maintained 
                under this section to the Social Security 
                Administration to the extent necessary for verification 
                in accordance with subparagraph (B).
                    ``(B) Verification by ssa.--The Social Security 
                Administration shall verify the accuracy of, correct, 
                or supply to the extent possible, and report to the 
                Secretary, the following information supplied by the 
                Secretary pursuant to subparagraph (A):
                            ``(i) The name, social security number, and 
                        birth date of each such individual.
                            ``(ii) The employer identification number 
                        of each such employer.
            ``(2) Information comparisons.--For the purpose of locating 
        individuals in a paternity establishment case or a case 
        involving the establishment, modification, or enforcement of a 
        support order, the Secretary shall--
                    ``(A) compare information in the National Directory 
                of New Hires against information in the support case 
                abstracts in the Federal Case Registry of Child Support 
                Orders not less often than every 2 business days; and
                    ``(B) within 2 business days after such a 
                comparison reveals a match with respect to an 
                individual, report the information to the State agency 
                responsible for the case.
            ``(3) Information comparisons and disclosures of 
        information in all registries for title iv program purposes.--
        To the extent and with the frequency that the Secretary 
        determines to be effective in assisting States to carry out 
        their responsibilities under programs operated under this part 
        and programs funded under part A, the Secretary shall--
                    ``(A) compare the information in each component of 
                the Federal Parent Locator Service maintained under 
                this section against the information in each other such 
                component (other than the comparison required by 
                paragraph (2)), and report instances in which such a 
                comparison reveals a match with respect to an 
                individual to State agencies operating such programs; 
                and
                    ``(B) disclose information in such registries to 
                such State agencies.
            ``(4) Provision of new hire information to the social 
        security administration.--The National Directory of New Hires 
        shall provide the Commissioner of Social Security with all 
        information in the National Directory, which shall be used to 
        determine the accuracy of payments under the supplemental 
        security income program under title XVI and in connection with 
        benefits under title II.
            ``(5) Research.--The Secretary may provide access to 
        information reported by employers pursuant to section 453A(b) 
        for research purposes found by the Secretary to be likely to 
        contribute to achieving the purposes of part A or this part, 
        but without personal identifiers.
    ``(k) Fees.--
            ``(1) For ssa verification.--The Secretary shall reimburse 
        the Commissioner of Social Security, at a rate negotiated 
        between the Secretary and the Commissioner, for the costs 
incurred by the Commissioner in performing the verification services 
described in subsection (j).
            ``(2) For information from state directories of new 
        hires.--The Secretary shall reimburse costs incurred by State 
        directories of new hires in furnishing information as required 
        by subsection (j)(3), at rates which the Secretary determines 
        to be reasonable (which rates shall not include payment for the 
        costs of obtaining, compiling, or maintaining such 
        information).
            ``(3) For information furnished to state and federal 
        agencies.--A State or Federal agency that receives information 
        from the Secretary pursuant to this section shall reimburse the 
        Secretary for costs incurred by the Secretary in furnishing the 
        information, at rates which the Secretary determines to be 
        reasonable (which rates shall include payment for the costs of 
        obtaining, verifying, maintaining, and comparing the 
        information).
    ``(l) Restriction on Disclosure and Use.--Information in the 
Federal Parent Locator Service, and information resulting from 
comparisons using such information, shall not be used or disclosed 
except as expressly provided in this section, subject to section 6103 
of the Internal Revenue Code of 1986.
    ``(m) Information Integrity and Security.--The Secretary shall 
establish and implement safeguards with respect to the entities 
established under this section designed to--
            ``(1) ensure the accuracy and completeness of information 
        in the Federal Parent Locator Service; and
            ``(2) restrict access to confidential information in the 
        Federal Parent Locator Service to authorized persons, and 
        restrict use of such information to authorized purposes.
    ``(n) Federal Government Reporting.--Each department, agency, and 
instrumentality of the United States shall on a quarterly basis report 
to the Federal Parent Locator Service the name and social security 
number of each employee and the wages paid to the employee during the 
previous quarter, except that such a report shall not be filed with 
respect to an employee of a department, agency, or instrumentality 
performing intelligence or counterintelligence functions, if the head 
of such department, agency, or instrumentality has determined that 
filing such a report could endanger the safety of the employee or 
compromise an ongoing investigation or intelligence mission.''.
    (g) Conforming Amendments.--
            (1) To part d of title iv of the social security act.--
                    (A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is 
                amended to read as follows:
                    ``(B) the Federal Parent Locator Service 
                established under section 453;''.
                    (B) Section 454(13) (42 U.S.C.654(13)) is amended 
                by inserting ``and provide that information requests by 
                parents who are residents of other States be treated 
                with the same priority as requests by parents who are 
                residents of the State submitting the plan'' before the 
                semicolon.
            (2) To federal unemployment tax act.--Section 3304(a)(16) 
        of the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``Secretary of Health, Education, 
                and Welfare'' each place such term appears and 
                inserting ``Secretary of Health and Human Services'';
                    (B) in subparagraph (B), by striking ``such 
                information'' and all that follows and inserting 
                ``information furnished under subparagraph (A) or (B) 
                is used only for the purposes authorized under such 
                subparagraph;'';
                    (C) by striking ``and'' at the end of subparagraph 
                (A);
                    (D) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (E) by inserting after subparagraph (A) the 
                following new subparagraph:
            ``(B) wage and unemployment compensation information 
        contained in the records of such agency shall be furnished to 
        the Secretary of Health and Human Services (in accordance with 
regulations promulgated by such Secretary) as necessary for the 
purposes of the National Directory of New Hires established under 
section 453(i) of the Social Security Act, and''.
            (3) To state grant program under title iii of the social 
        security act.--Subsection (h) of section 303 (42 U.S.C. 503) is 
        amended to read as follows:
    ``(h)(1) The State agency charged with the administration of the 
State law shall, on a reimbursable basis--
            ``(A) disclose quarterly, to the Secretary of Health and 
        Human Services, wage and claim information, as required 
        pursuant to section 453(i)(1), contained in the records of such 
        agency;
            ``(B) ensure that information provided pursuant to 
        subparagraph (A) meets such standards relating to correctness 
        and verification as the Secretary of Health and Human Services, 
        with the concurrence of the Secretary of Labor, may find 
        necessary; and
            ``(C) establish such safeguards as the Secretary of Labor 
        determines are necessary to insure that information disclosed 
        under subparagraph (A) is used only for purposes of section 
        453(i)(1) in carrying out the child support enforcement program 
        under title IV.
    ``(2) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to 
comply substantially with the requirements of paragraph (1), the 
Secretary of Labor shall notify such State agency that further payments 
will not be made to the State until the Secretary of Labor is satisfied 
that there is no longer any such failure. Until the Secretary of Labor 
is so satisfied, the Secretary shall make no future certification to 
the Secretary of the Treasury with respect to the State.
    ``(3) For purposes of this subsection--
            ``(A) the term `wage information' means information 
        regarding wages paid to an individual, the social security 
        account number of such individual, and the name, address, 
        State, and the Federal employer identification number of the 
        employer paying such wages to such individual; and
            ``(B) the term `claim information' means information 
        regarding whether an individual is receiving, has received, or 
        has made application for, unemployment compensation, the amount 
        of any such compensation being received (or to be received by 
        such individual), and the individual's current (or most recent) 
        home address.''.
            (4) Disclosure of certain information to agents of child 
        support enforcement agencies.--
                    (A) In general.--Paragraph (6) of section 6103(l) 
                of the Internal Revenue Code of 1986 (relating to 
                disclosure of return information to Federal, State, and 
                local child support enforcement agencies) is amended by 
                redesignating subparagraph (B) as subparagraph (C) and 
                by inserting after subparagraph (A) the following new 
                subparagraph:
                    ``(B) Disclosure to certain agents.--The following 
                information disclosed to any child support enforcement 
                agency under subparagraph (A) with respect to any 
                individual with respect to whom child support 
                obligations are sought to be established or enforced 
                may be disclosed by such agency to any agent of such 
                agency which is under contract with such agency to 
                carry out the purposes described in subparagraph (C):
                            ``(i) The address and social security 
                        account number (or numbers) of such individual.
                            ``(ii) The amount of any reduction under 
                        section 6402(c) (relating to offset of past-due 
                        support against overpayments) in any 
                        overpayment otherwise payable to such 
                        individual.''
                    (B) Conforming amendments.--
                            (i) Paragraph (3) of section 6103(a) of 
                        such Code is amended by striking ``(l)(12)'' 
                        and inserting ``paragraph (6) or (12) of 
                        subsection (l)''.
                            (ii) Subparagraph (C) of section 6103(l)(6) 
                        of such Code, as redesignated by subsection 
                        (a), is amended to read as follows:
                    ``(C) Restriction on disclosure.--Information may 
                be disclosed under this paragraph only for purposes of, 
                and to the extent necessary in, establishing and 
                collecting child support obligations from, and 
                locating, individuals owing such obligations.''
                            (iii) The material following subparagraph 
                        (F) of section 6103(p)(4) of such Code is 
                        amended by striking ``subsection (l)(12)(B)'' 
                        and inserting ``paragraph (6)(A) or (12)(B) of 
                        subsection (l)''.
    (h) Requirement for Cooperation.--The Secretary of Labor and the 
Secretary of Health and Human Services shall work jointly to develop 
cost-effective and efficient methods of accessing the information in 
the various State directories of new hires and the National Directory 
of New Hires as established pursuant to the amendments made by this 
chapter. In developing these methods the Secretaries shall take into 
account the impact, including costs, on the States, and shall also 
consider the need to insure the proper and authorized use of wage 
record information.

SEC. 4317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR USE IN 
              CHILD SUPPORT ENFORCEMENT.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 4315 of this Act, is amended by inserting after 
paragraph (12) the following new paragraph:
            ``(13) Recording of social security numbers in certain 
        family matters.--Procedures requiring that the social security 
        number of--
                    ``(A) any applicant for a professional license, 
                commercial driver's license, occupational license, or 
                marriage license be recorded on the application;
                    ``(B) any individual who is subject to a divorce 
                decree, support order, or paternity determination or 
                acknowledgment be placed in the records relating to the 
                matter; and
                    ``(C) any individual who has died be placed in the 
                records relating to the death and be recorded on the 
                death certificate.
        For purposes of subparagraph (A), if a State allows the use of 
        a number other than the social security number, the State shall 
        so advise any applicants.''.
    (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
405(c)(2)(C)), as amended by section 321(a)(9) of the Social Security 
Independence and Program Improvements Act of 1994, is amended--
            (1) in clause (i), by striking ``may require'' and 
        inserting ``shall require'';
            (2) in clause (ii), by inserting after the 1st sentence the 
        following: ``In the administration of any law involving the 
        issuance of a marriage certificate or license, each State shall 
        require each party named in the certificate or license to 
        furnish to the State (or political subdivision thereof), or any 
        State agency having administrative responsibility for the law 
        involved, the social security number of the party.'';
            (3) in clause (ii), by inserting ``or marriage 
        certificate'' after ``Such numbers shall not be recorded on the 
        birth certificate''.
            (4) in clause (vi), by striking ``may'' and inserting 
        ``shall''; and
            (5) by adding at the end the following new clauses:
    ``(x) An agency of a State (or a political subdivision thereof) 
charged with the administration of any law concerning the issuance or 
renewal of a license, certificate, permit, or other authorization to 
engage in a profession, an occupation, or a commercial activity shall 
require all applicants for issuance or renewal of the license, 
certificate, permit, or other authorization to provide the applicant's 
social security number to the agency for the purpose of administering 
such laws, and for the purpose of responding to requests for 
information from an agency operating pursuant to part D of title IV.
    ``(xi) All divorce decrees, support orders, and paternity 
determinations issued, and all paternity acknowledgments made, in each 
State shall include the social security number of each party to the 
decree, order, determination, or acknowledgment in the records relating 
to the matter, for the purpose of responding to requests for 
information from an agency operating pursuant to part D of title IV.''.

          CHAPTER 3--STREAMLINING AND UNIFORMITY OF PROCEDURES

SEC. 4321. ADOPTION OF UNIFORM STATE LAWS.

    Section 466 (42 U.S.C. 666) is amended by adding at the end the 
following new subsection:
    ``(f) Uniform Interstate Family Support Act.--
            ``(1) Enactment and use.--In order to satisfy section 
        454(20)(A), on and after January 1, 1998, each State must have 
        in effect the Uniform Interstate Family Support Act, as 
        approved by the American Bar Association on February 9, 1993, 
        together with any amendments officially adopted before January 
        1, 1998 by the National Conference of Commissioners on Uniform 
        State Laws.
            ``(2) Employers to follow procedural rules of State where 
        employee works.--The State law enacted pursuant to paragraph 
        (1) shall provide that an employer that receives an income 
        withholding order or notice pursuant to section 501 of the 
        Uniform Interstate Family Support Act follow the procedural 
        rules that apply with respect to such order or notice under the 
        laws of the State in which the obligor works.''.

SEC. 4322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT 
              ORDERS.

    Section 1738B of title 28, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``subsection (e)'' 
        and inserting ``subsections (e), (f), and (i)'';
            (2) in subsection (b), by inserting after the 2nd 
        undesignated paragraph the following:
    ```child's home State' means the State in which a child lived with 
a parent or a person acting as parent for at least 6 consecutive months 
immediately preceding the time of filing of a petition or comparable 
pleading for support and, if a child is less than 6 months old, the 
State in which the child lived from birth with any of them. A period of 
temporary absence of any of them is counted as part of the 6-month 
period.'';
            (3) in subsection (c), by inserting ``by a court of a 
        State'' before ``is made'';
            (4) in subsection (c)(1), by inserting ``and subsections 
        (e), (f), and (g)'' after ``located'';
            (5) in subsection (d)--
                    (A) by inserting ``individual'' before 
                ``contestant''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (6) in subsection (e), by striking ``make a modification of 
        a child support order with respect to a child that is made'' 
        and inserting ``modify a child support order issued'';
            (7) in subsection (e)(1), by inserting ``pursuant to 
        subsection (i)'' before the semicolon;
            (8) in subsection (e)(2)--
                    (A) by inserting ``individual'' before 
                ``contestant'' each place such term appears; and
                    (B) by striking ``to that court's making the 
                modification and assuming'' and inserting ``with the 
                State of continuing, exclusive jurisdiction for a court 
                of another State to modify the order and assume'';
            (9) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively;
            (10) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Recognition of Child Support Orders.--If 1 or more child 
support orders have been issued with regard to an obligor and a child, 
a court shall apply the following rules in determining which order to 
recognize for purposes of continuing, exclusive jurisdiction and 
enforcement:
            ``(1) If only 1 court has issued a child support order, the 
        order of that court must be recognized.
            ``(2) If 2 or more courts have issued child support orders 
        for the same obligor and child, and only 1 of the courts would 
        have continuing, exclusive jurisdiction under this section, the 
        order of that court must be recognized.
            ``(3) If 2 or more courts have issued child support orders 
        for the same obligor and child, and more than 1 of the courts 
        would have continuing, exclusive jurisdiction under this 
        section, an order issued by a court in the current home State 
        of the child must be recognized, but if an order has not been 
        issued in the current home State of the child, the order most 
        recently issued must be recognized.
            ``(4) If 2 or more courts have issued child support orders 
        for the same obligor and child, and none of the courts would 
        have continuing, exclusive jurisdiction under this section, a 
        court may issue a child support order, which must be 
        recognized.
            ``(5) The court that has issued an order recognized under 
        this subsection is the court having continuing, exclusive 
        jurisdiction.'';
            (11) in subsection (g) (as so redesignated)--
                    (A) by striking ``Prior'' and inserting 
                ``Modified''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (12) in subsection (h) (as so redesignated)--
                    (A) in paragraph (2), by inserting ``including the 
                duration of current payments and other obligations of 
                support'' before the comma; and
                    (B) in paragraph (3), by inserting ``arrears 
                under'' after ``enforce''; and
            (13) by adding at the end the following new subsection:
    ``(i) Registration for Modification.--If there is no individual 
contestant or child residing in the issuing State, the party or support 
enforcement agency seeking to modify, or to modify and enforce, a child 
support order issued in another State shall register that order in a 
State with jurisdiction over the nonmovant for the purpose of 
modification.''.

SEC. 4323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 4315 and 
4317(a) of this Act, is amended by inserting after paragraph (13) the 
following new paragraph:
            ``(14) Administrative enforcement in interstate cases.--
        Procedures under which--
                    ``(A)(i) the State shall respond within 5 business 
                days to a request made by another State to enforce a 
                support order; and
                    ``(ii) the term `business day' means a day on which 
                State offices are open for regular business;
                    ``(B) the State may, by electronic or other means, 
                transmit to another State a request for assistance in a 
                case involving the enforcement of a support order, 
                which request--
                            ``(i) shall include such information as 
                        will enable the State to which the request is 
                        transmitted to compare the information about 
                        the case to the information in the data bases 
                        of the State; and
                            ``(ii) shall constitute a certification by 
                        the requesting State--
                                    ``(I) of the amount of support 
                                under the order the payment of which is 
                                in arrears; and
                                    ``(II) that the requesting State 
                                has complied with all procedural due 
                                process requirements applicable to the 
                                case;
                    ``(C) if the State provides assistance to another 
                State pursuant to this paragraph with respect to a 
                case, neither State shall consider the case to be 
                transferred to the caseload of such other State; and
                    ``(D) the State shall maintain records of--
                            ``(i) the number of such requests for 
                        assistance received by the State;
                            ``(ii) the number of cases for which the 
                        State collected support in response to such a 
                        request; and
                            ``(iii) the amount of such collected 
                        support.''.

SEC. 4324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

    (a) Promulgation.--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) (as 
        amended by section 4346(a) of this Act) and inserting ``; 
        and''; and
            (3) by adding at the end the following new paragraph:
            ``(11) not later than October 1, 1996, after consulting 
        with the State directors of programs under this part, 
        promulgate forms to be used by States in interstate cases for--
                    ``(A) collection of child support through income 
                withholding;
                    ``(B) imposition of liens; and
                    ``(C) administrative subpoenas.''.
    (b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by inserting ``and'' at the end of subparagraph (D); 
        and
            (3) by adding at the end the following new subparagraph:
                    ``(E) not later than March 1, 1997, in using the 
                forms promulgated pursuant to section 452(a)(11) for 
                income withholding, imposition of liens, and issuance 
                of administrative subpoenas in interstate child support 
                cases;''.

SEC. 4325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 4314 of this Act, is amended--
            (1) in subsection (a)(2), by striking the first sentence 
        and inserting the following: ``Expedited administrative and 
        judicial procedures (including the procedures specified in 
        subsection (c)) for establishing paternity and for 
        establishing, modifying, and enforcing support obligations.''; 
        and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Expedited Procedures.--The procedures specified in this 
subsection are the following:
            ``(1) Administrative action by state agency.--Procedures 
        which give the State agency the authority to take the following 
        actions relating to establishment of paternity or to 
        establishment, modification, or enforcement of support orders, 
        without the necessity of obtaining an order from any other 
        judicial or administrative tribunal, and to recognize and 
        enforce the authority of State agencies of other States to take 
        the following actions:
                    ``(A) Genetic testing.--To order genetic testing 
                for the purpose of paternity establishment as provided 
                in section 466(a)(5).
                    ``(B) Financial or other information.--To subpoena 
                any financial or other information needed to establish, 
                modify, or enforce a support order, and to impose 
                penalties for failure to respond to such a subpoena.
                    ``(C) Response to state agency request.--To require 
                all entities in the State (including for-profit, 
                nonprofit, and governmental employers) to provide 
                promptly, in response to a request by the State agency 
                of that or any other State administering a program 
                under this part, information on the employment, 
                compensation, and benefits of any individual employed 
                by such entity as an employee or contractor, and to 
                sanction failure to respond to any such request.
                    ``(D) Access to information contained in certain 
                records.--To obtain access, subject to safeguards on 
                privacy and information security, and subject to the 
nonliability of entities that afford such access under this 
subparagraph, to information contained in the following records 
(including automated access, in the case of records maintained in 
automated data bases):
                            ``(i) Records of other State and local 
                        government agencies, including--
                                    ``(I) vital statistics (including 
                                records of marriage, birth, and 
                                divorce);
                                    ``(II) State and local tax and 
                                revenue records (including information 
                                on residence address, employer, income 
                                and assets);
                                    ``(III) records concerning real and 
                                titled personal property;
                                    ``(IV) records of occupational and 
                                professional licenses, and records 
                                concerning the ownership and control of 
                                corporations, partnerships, and other 
                                business entities;
                                    ``(V) employment security records;
                                    ``(VI) records of agencies 
                                administering public assistance 
                                programs;
                                    ``(VII) records of the motor 
                                vehicle department; and
                                    ``(VIII) corrections records.
                            ``(ii) Certain records held by private 
                        entities with respect to individuals who owe or 
                        are owed support (or against or with respect to 
                        whom a support obligation is sought), 
                        consisting of--
                                    ``(I) the names and addresses of 
                                such individuals and the names and 
                                addresses of the employers of such 
                                individuals, as appearing in customer 
                                records of public utilities and cable 
                                television companies, pursuant to an 
                                administrative subpoena authorized by 
                                subparagraph (B); and
                                    ``(II) information (including 
                                information on assets and liabilities) 
                                on such individuals held by financial 
                                institutions.
                    ``(E) Change in payee.--In cases in which support 
                is subject to an assignment in order to comply with a 
                requirement imposed pursuant to part A or section 1912, 
                or to a requirement to pay through the State 
                disbursement unit established pursuant to section 454B, 
                upon providing notice to obligor and obligee, to direct 
                the obligor or other payor to change the payee to the 
                appropriate government entity.
                    ``(F) Income withholding.--To order income 
                withholding in accordance with subsections (a)(1)(A) 
                and (b) of section 466.
                    ``(G) Securing assets.--In cases in which there is 
                a support arrearage, to secure assets to satisfy the 
                arrearage by--
                            ``(i) intercepting or seizing periodic or 
                        lump-sum payments from--
                                    ``(I) a State or local agency, 
                                including unemployment compensation, 
                                workers' compensation, and other 
                                benefits; and
                                    ``(II) judgments, settlements, and 
                                lotteries;
                            ``(ii) attaching and seizing assets of the 
                        obligor held in financial institutions;
                            ``(iii) attaching public and private 
                        retirement funds; and
                            ``(iv) imposing liens in accordance with 
                        subsection (a)(4) and, in appropriate cases, to 
                        force sale of property and distribution of 
                        proceeds.
                    ``(H) Increase monthly payments.--For the purpose 
                of securing overdue support, to increase the amount of 
                monthly support payments to include amounts for 
                arrearages, subject to such conditions or limitations 
                as the State may provide.
        Such procedures shall be subject to due process safeguards, 
        including (as appropriate) requirements for notice, opportunity 
to contest the action, and opportunity for an appeal on the record to 
an independent administrative or judicial tribunal.
            ``(2) Substantive and procedural rules.--The expedited 
        procedures required under subsection (a)(2) shall include the 
        following rules and authority, applicable with respect to all 
        proceedings to establish paternity or to establish, modify, or 
        enforce support orders:
                    ``(A) Locator information; presumptions concerning 
                notice.--Procedures under which--
                            ``(i) each party to any paternity or child 
                        support proceeding is required (subject to 
                        privacy safeguards) to file with the tribunal 
                        and the State case registry upon entry of an 
                        order, and to update as appropriate, 
                        information on location and identity of the 
                        party, including social security number, 
                        residential and mailing addresses, telephone 
                        number, driver's license number, and name, 
                        address, and telephone number of employer; and
                            ``(ii) in any subsequent child support 
                        enforcement action between the parties, upon 
                        sufficient showing that diligent effort has 
                        been made to ascertain the location of such a 
                        party, the tribunal may deem State due process 
                        requirements for notice and service of process 
                        to be met with respect to the party, upon 
                        delivery of written notice to the most recent 
                        residential or employer address filed with the 
                        tribunal pursuant to clause (i).
                    ``(B) Statewide jurisdiction.--Procedures under 
                which--
                            ``(i) the State agency and any 
                        administrative or judicial tribunal with 
                        authority to hear child support and paternity 
                        cases exerts statewide jurisdiction over the 
                        parties; and
                            ``(ii) in a State in which orders are 
                        issued by courts or administrative tribunals, a 
                        case may be transferred between local 
                        jurisdictions in the State without need for any 
                        additional filing by the petitioner, or service 
                        of process upon the respondent, to retain 
                        jurisdiction over the parties.
            ``(3) Coordination with erisa.--Notwithstanding subsection 
        (d) of section 514 of the Employee Retirement Income Security 
        Act of 1974 (relating to effect on other laws), nothing in this 
        subsection shall be construed to alter, amend, modify, 
        invalidate, impair, or supersede subsections (a), (b), and (c) 
        of such section 514 as it applies with respect to any procedure 
        referred to in paragraph (1) and any expedited procedure 
        referred to in paragraph (2), except to the extent that such 
        procedure would be consistent with the requirements of section 
        206(d)(3) of such Act (relating to qualified domestic relations 
        orders) or the requirements of section 609(a) of such Act 
        (relating to qualified medical child support orders) if the 
        reference in such section 206(d)(3) to a domestic relations 
        order and the reference in such section 609(a) to a medical 
        child support order were a reference to a support order 
        referred to in paragraphs (1) and (2) relating to the same 
        matters, respectively.''.
    (b) Automation of State Agency Functions.--Section 454A, as added 
by section 4344(a)(2) and as amended by sections 4311 and 4312(c) of 
this Act, is amended by adding at the end the following new subsection:
    ``(h) Expedited Administrative Procedures.--The automated system 
required by this section shall be used, to the maximum extent feasible, 
to implement the expedited administrative procedures required by 
section 466(c).''.

                   CHAPTER 4--PATERNITY ESTABLISHMENT

SEC. 4331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended to read as follows:
            ``(5) Procedures concerning paternity establishment.--
                    ``(A) Establishment process available from birth 
                until age 18.--
                            ``(i) Procedures which permit the 
                        establishment of the paternity of a child at 
                        any time before the child attains 18 years of 
                        age.
                            ``(ii) As of August 16, 1984, clause (i) 
                        shall also apply to a child for whom paternity 
                        has not been established or for whom a 
                        paternity action was brought but dismissed 
                        because a statute of limitations of less than 
                        18 years was then in effect in the State.
                    ``(B) Procedures concerning genetic testing.--
                            ``(i) Genetic testing required in certain 
                        contested cases.--Procedures under which the 
                        State is required, in a contested paternity 
                        case (unless otherwise barred by State law) to 
                        require the child and all other parties (other 
                        than individuals found under section 454(29) to 
                        have good cause and other exceptions for 
                        refusing to cooperate) to submit to genetic 
                        tests upon the request of any such party, if 
                        the request is supported by a sworn statement 
                        by the party--
                                    ``(I) alleging paternity, and 
                                setting forth facts establishing a 
                                reasonable possibility of the requisite 
                                sexual contact between the parties; or
                                    ``(II) denying paternity, and 
                                setting forth facts establishing a 
                                reasonable possibility of the 
                                nonexistence of sexual contact between 
                                the parties.
                            ``(ii) Other requirements.--Procedures 
                        which require the State agency, in any case in 
                        which the agency orders genetic testing--
                                    ``(I) to pay costs of such tests, 
                                subject to recoupment (if the State so 
                                elects) from the alleged father if 
                                paternity is established; and
                                    ``(II) to obtain additional testing 
                                in any case if an original test result 
                                is contested, upon request and advance 
                                payment by the contestant.
                    ``(C) Voluntary paternity acknowledgment.--
                            ``(i) Simple civil process.--Procedures for 
                        a simple civil process for voluntarily 
                        acknowledging paternity under which the State 
                        must provide that, before a mother and a 
                        putative father can sign an acknowledgment of 
                        paternity, the mother and the putative father 
                        must be given notice, orally and in writing, of 
                        the alternatives to, the legal consequences of, 
                        and the rights (including, if 1 parent is a 
                        minor, any rights afforded due to minority 
                        status) and responsibilities that arise from, 
                        signing the acknowledgment.
                            ``(ii) Hospital-based program.--Such 
                        procedures must include a hospital-based 
                        program for the voluntary acknowledgment of 
                        paternity focusing on the period immediately 
                        before or after the birth of a child.
                            ``(iii) Paternity establishment services.--
                                    ``(I) State-offered services.--Such 
                                procedures must require the State 
                                agency responsible for maintaining 
                                birth records to offer voluntary 
                                paternity establishment services.
                                    ``(II) Regulations.--
                                            ``(aa) Services offered by 
                                        hospitals and birth record 
                                        agencies.--The Secretary shall 
                                        prescribe regulations governing 
                                        voluntary paternity 
                                        establishment services offered 
                                        by hospitals and birth record 
                                        agencies.
                                            ``(bb) Services offered by 
                                        other entities.--The Secretary 
                                        shall prescribe regulations 
specifying the types of other entities that may offer voluntary 
paternity establishment services, and governing the provision of such 
services, which shall include a requirement that such an entity must 
use the same notice provisions used by, use the same materials used by, 
provide the personnel providing such services with the same training 
provided by, and evaluate the provision of such services in the same 
manner as the provision of such services is evaluated by, voluntary 
paternity establishment programs of hospitals and birth record 
agencies.
                            ``(iv) Use of paternity acknowledgment 
                        affidavit.--Such procedures must require the 
                        State to develop and use an affidavit for the 
                        voluntary acknowledgment of paternity which 
                        includes the minimum requirements of the 
                        affidavit specified by the Secretary under 
                        section 452(a)(7) for the voluntary 
                        acknowledgment of paternity, and to give full 
                        faith and credit to such an affidavit signed in 
                        any other State according to its procedures.
                    ``(D) Status of signed paternity acknowledgment.--
                            ``(i) Inclusion in birth records.--
                        Procedures under which the name of the father 
                        shall be included on the record of birth of the 
                        child of unmarried parents only if--
                                    ``(I) the father and mother have 
                                signed a voluntary acknowledgment of 
                                paternity; or
                                    ``(II) a court or an administrative 
                                agency of competent jurisdiction has 
                                issued an adjudication of paternity.
                        Nothing in this clause shall preclude a State 
                        agency from obtaining an admission of paternity 
                        from the father for submission in a judicial or 
                        administrative proceeding, or prohibit the 
                        issuance of an order in a judicial or 
                        administrative proceeding which bases a legal 
                        finding of paternity on an admission of 
                        paternity by the father and any other 
                        additional showing required by State law.
                            ``(ii) Legal finding of paternity.--
                        Procedures under which a signed voluntary 
                        acknowledgment of paternity is considered a 
                        legal finding of paternity, subject to the 
                        right of any signatory to rescind the 
                        acknowledgment within the earlier of--
                                    ``(I) 60 days; or
                                    ``(II) the date of an 
                                administrative or judicial proceeding 
                                relating to the child (including a 
                                proceeding to establish a support 
                                order) in which the signatory is a 
                                party.
                            ``(iii) Contest.--Procedures under which, 
                        after the 60-day period referred to in clause 
                        (ii), a signed voluntary acknowledgment of 
                        paternity may be challenged in court only on 
                        the basis of fraud, duress, or material mistake 
                        of fact, with the burden of proof upon the 
                        challenger, and under which the legal 
                        responsibilities (including child support 
                        obligations) of any signatory arising from the 
                        acknowledgment may not be suspended during the 
                        challenge, except for good cause shown.
                    ``(E) Bar on acknowledgment ratification 
                proceedings.--Procedures under which judicial or 
                administrative proceedings are not required or 
                permitted to ratify an unchallenged acknowledgment of 
                paternity.
                    ``(F) Admissibility of genetic testing results.--
                Procedures--
                            ``(i) requiring the admission into 
                        evidence, for purposes of establishing 
                        paternity, of the results of any genetic test 
                        that is--
                                    ``(I) of a type generally 
                                acknowledged as reliable by 
                                accreditation bodies designated by the 
                                Secretary; and
                                    ``(II) performed by a laboratory 
                                approved by such an accreditation body;
                            ``(ii) requiring an objection to genetic 
                        testing results to be made in writing not later 
                        than a specified number of days before any 
                        hearing at which the results may be introduced 
                        into evidence (or, at State option, not later 
                        than a specified number of days after receipt 
                        of the results); and
                            ``(iii) making the test results admissible 
                        as evidence of paternity without the need for 
                        foundation testimony or other proof of 
                        authenticity or accuracy, unless objection is 
                        made.
                    ``(G) Presumption of paternity in certain cases.--
                Procedures which create a rebuttable or, at the option 
                of the State, conclusive presumption of paternity upon 
                genetic testing results indicating a threshold 
                probability that the alleged father is the father of 
                the child.
                    ``(H) Default orders.--Procedures requiring a 
                default order to be entered in a paternity case upon a 
                showing of service of process on the defendant and any 
                additional showing required by State law.
                    ``(I) No right to jury trial.--Procedures providing 
                that the parties to an action to establish paternity 
                are not entitled to a trial by jury.
                    ``(J) Temporary support order based on probable 
                paternity in contested cases.--Procedures which require 
                that a temporary order be issued, upon motion by a 
                party, requiring the provision of child support pending 
                an administrative or judicial determination of 
                parentage, if there is clear and convincing evidence of 
                paternity (on the basis of genetic tests or other 
                evidence).
                    ``(K) Proof of certain support and paternity 
                establishment costs.--Procedures under which bills for 
                pregnancy, childbirth, and genetic testing are 
                admissible as evidence without requiring third-party 
                foundation testimony, and shall constitute prima facie 
                evidence of amounts incurred for such services or for 
                testing on behalf of the child.
                    ``(L) Standing of putative fathers.--Procedures 
                ensuring that the putative father has a reasonable 
                opportunity to initiate a paternity action.
                    ``(M) Filing of acknowledgments and adjudications 
                in state registry of birth records.--Procedures under 
                which voluntary acknowledgments and adjudications of 
                paternity by judicial or administrative processes are 
                filed with the State registry of birth records for 
                comparison with information in the State case 
                registry.''.
    (b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) 
(42 U.S.C. 652(a)(7)) is amended by inserting ``, and specify the 
minimum requirements of an affidavit to be used for the voluntary 
acknowledgment of paternity which shall include the social security 
number of each parent and, after consultation with the States, other 
common elements as determined by such designee'' before the semicolon.
    (c) Conforming Amendment.--Section 468 (42 U.S.C. 668) is amended 
by striking ``a simple civil process for voluntarily acknowledging 
paternity and''.

SEC. 4332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    Section 454(23) (42 U.S.C. 654(23)) is amended by inserting ``and 
will publicize the availability and encourage the use of procedures for 
voluntary establishment of paternity and child support by means the 
State deems appropriate'' before the semicolon.

SEC. 4333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF PART A 
              ASSISTANCE.

    Section 454 (42 U.S.C. 654), as amended by sections 4301(b), 
4303(a), 4312(a), and 4313(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (28) the following new 
        paragraph:
            ``(29) provide that the State agency responsible for 
        administering the State plan--
                    ``(A) shall make the determination (and 
                redetermination at appropriate intervals) as to whether 
                an individual who has applied for or is receiving 
                assistance under the State program funded under part A 
                of this title or the State program under title XIX is 
                cooperating in good faith with the State in 
                establishing the paternity of, or in establishing, 
                modifying, or enforcing a support order for, any child 
                of the individual by providing the State agency with 
                the name of, and such other information as the State 
                agency may require with respect to, the noncustodial 
                parent of the child, subject to good cause and other 
                exceptions which--
                            ``(i) shall be defined, taking into account 
                        the best interests of the child, and
                            ``(ii) shall be applied in each case,
                by, at the option of the State, the State agency 
                administering the State program under part A, this 
                part, or title XIX;
                    ``(B) shall require the individual to supply 
                additional necessary information and appear at 
                interviews, hearings, and legal proceedings;
                    ``(C) shall require the individual and the child to 
                submit to genetic tests pursuant to judicial or 
                administrative order;
                    ``(D) may request that the individual sign a 
                voluntary acknowledgment of paternity, after notice of 
                the rights and consequences of such an acknowledgment, 
                but may not require the individual to sign an 
                acknowledgment or otherwise relinquish the right to 
                genetic tests as a condition of cooperation and 
                eligibility for assistance under the State program 
                funded under part A, or the State program under title 
                XIX; and
                    ``(E) shall promptly notify the individual, the 
                State agency administering the State program funded 
                under part A, and the State agency administering the 
                State program under title XIX, of each such 
                determination, and if noncooperation is determined, the 
                basis therefor.''.

             CHAPTER 5--PROGRAM ADMINISTRATION AND FUNDING

SEC. 4341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

    (a) Development of New System.--The Secretary of Health and Human 
Services, in consultation with State directors of programs under part D 
of title IV of the Social Security Act, shall develop a new incentive 
system to replace, in a revenue neutral manner, the system under 
section 458 of such Act. The new system shall provide additional 
payments to any State based on such State's performance under such a 
program. Not later than November 1, 1996, the Secretary shall report on 
the new system to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate.
    (b) Conforming Amendments to Present System.--Section 458 (42 
U.S.C. 658) is amended--
            (1) in subsection (a), by striking ``aid to families with 
        dependent children under a State plan approved under part A of 
        this title'' and inserting ``assistance under a program funded 
        under part A'';
            (2) in subsection (b)(1)(A), by striking ``section 
        402(a)(26)'' and inserting ``section 408(a)(4)'';
            (3) in subsections (b) and (c)--
                    (A) by striking ``AFDC collections'' each place it 
                appears and inserting ``title IV-A collections'', and
                    (B) by striking ``non-AFDC collections'' each place 
                it appears and inserting ``non-title IV-A 
                collections''; and
            (4) in subsection (c), by striking ``combined AFDC/non-AFDC 
        administrative costs'' both places it appears and inserting 
        ``combined title IV-A/non-title IV-A administrative costs''.
    (c) Calculation of Paternity Establishment Percentage.--
            (1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is 
        amended by striking ``75'' and inserting ``90''.
            (2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended--
                    (A) by redesignating subparagraphs (B) through (E) 
                as subparagraphs (C) through (F), respectively, and by 
                inserting after subparagraph (A) the following new 
                subparagraph:
            ``(B) for a State with a paternity establishment percentage 
        of not less than 75 percent but less than 90 percent for such 
        fiscal year, the paternity establishment percentage of the 
        State for the immediately preceding fiscal year plus 2 
        percentage points;''; and
                    (B) by adding at the end the following new flush 
                sentence:
``In determining compliance under this section, a State may use as its 
paternity establishment percentage either the State's IV-D paternity 
establishment percentage (as defined in paragraph (2)(A)) or the 
State's statewide paternity establishment percentage (as defined in 
paragraph (2)(B)).''.
            (3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i)--
                                    (I) by striking ``paternity 
                                establishment percentage'' and 
                                inserting ``IV-D paternity 
                                establishment percentage''; and
                                    (II) by striking ``(or all States, 
                                as the case may be)''; and
                            (ii) by striking ``and'' at the end; and
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C) and by inserting after subparagraph 
                (A) the following new subparagraph:
            ``(B) the term `statewide paternity establishment 
        percentage' means, with respect to a State for a fiscal year, 
        the ratio (expressed as a percentage) that the total number of 
        minor children--
                    ``(i) who have been born out of wedlock, and
                    ``(ii) the paternity of whom has been established 
                or acknowledged during the fiscal year,
        bears to the total number of children born out of wedlock 
        during the preceding fiscal year; and''.
            (4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
                    (A) by striking subparagraph (A) and redesignating 
                subparagraphs (B) and (C) as subparagraphs (A) and (B), 
                respectively; and
                    (B) in subparagraph (A) (as so redesignated), by 
                striking ``the percentage of children born out-of-
                wedlock in a State'' and inserting ``the percentage of 
                children in a State who are born out of wedlock or for 
                whom support has not been established''.
    (d) Effective Dates.--
            (1) Incentive adjustments.--
                    (A) In general.--The system developed under 
                subsection (a) and the amendments made by subsection 
                (b) shall become effective on October 1, 1998, except 
                to the extent provided in subparagraph (B).
                    (B) Application of section 458.--Section 458 of the 
                Social Security Act, as in effect on the day before the 
                date of the enactment of this section, shall be 
                effective for purposes of incentive payments to States 
                for fiscal years before fiscal year 1999.
            (2) Penalty reductions.--The amendments made by subsection 
        (c) shall become effective with respect to calendar quarters 
        beginning on or after the date of the enactment of this Act.

SEC. 4342. FEDERAL AND STATE REVIEWS AND AUDITS.

    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) in paragraph (14), by striking ``(14)'' and inserting 
        ``(14)(A)'';
            (2) by redesignating paragraph (15) as subparagraph (B) of 
        paragraph (14); and
            (3) by inserting after paragraph (14) the following new 
        paragraph:
            ``(15) provide for--
                    ``(A) a process for annual reviews of and reports 
                to the Secretary on the State program operated under 
                the State plan approved under this part, including such 
                information as may be necessary to measure State 
                compliance with Federal requirements for expedited 
                procedures, using such standards and procedures as are 
                required by the Secretary, under which the State agency 
                will determine the extent to which the program is 
                operated in compliance with this part; and
                    ``(B) a process of extracting from the automated 
                data processing system required by paragraph (16) and 
                transmitting to the Secretary data and calculations 
                concerning the levels of accomplishment (and rates of 
                improvement) with respect to applicable performance 
                indicators (including paternity establishment 
                percentages) to the extent necessary for purposes of 
                sections 452(g) and 458;''.
    (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
amended to read as follows:
            ``(4)(A) review data and calculations transmitted by State 
        agencies pursuant to section 454(15)(B) on State program 
        accomplishments with respect to performance indicators for 
        purposes of subsection (g) of this section and section 458;
            ``(B) review annual reports submitted pursuant to section 
        454(15)(A) and, as appropriate, provide to the State comments, 
        recommendations for additional or alternative corrective 
        actions, and technical assistance; and
            ``(C) conduct audits, in accordance with the Government 
        auditing standards of the Comptroller General of the United 
        States--
                    ``(i) at least once every 3 years (or more 
                frequently, in the case of a State which fails to meet 
                the requirements of this part concerning performance 
                standards and reliability of program data) to assess 
                the completeness, reliability, and security of the data 
                and the accuracy of the reporting systems used in 
                calculating performance indicators under subsection (g) 
                of this section and section 458;
                    ``(ii) of the adequacy of financial management of 
                the State program operated under the State plan 
                approved under this part, including assessments of--
                            ``(I) whether Federal and other funds made 
                        available to carry out the State program are 
                        being appropriately expended, and are properly 
                        and fully accounted for; and
                            ``(II) whether collections and 
                        disbursements of support payments are carried 
                        out correctly and are fully accounted for; and
                    ``(iii) for such other purposes as the Secretary 
                may find necessary;''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning 12 months or more 
after the date of the enactment of this Act.

SEC. 4343. REQUIRED REPORTING PROCEDURES.

    (a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is 
amended by inserting ``, and establish procedures to be followed by 
States for collecting and reporting information required to be provided 
under this part, and establish uniform definitions (including those 
necessary to enable the measurement of State compliance with the 
requirements of this part relating to expedited processes) to be 
applied in following such procedures'' before the semicolon.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 4301(b), 4303(a), 4312(a), 4313(a), and 4333 of 
this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (28);
            (2) by striking the period at the end of paragraph (29) and 
        inserting ``; and''; and
            (3) by adding after paragraph (29) the following new 
        paragraph:
            ``(30) provide that the State shall use the definitions 
        established under section 452(a)(5) in collecting and reporting 
        information as required under this part.''.

SEC. 4344. AUTOMATED DATA PROCESSING REQUIREMENTS.

    (a) Revised Requirements.--
            (1) In general.--Section 454(16) (42 U.S.C. 654(16)) is 
        amended--
                    (A) by striking ``, at the option of the State,'';
                    (B) by inserting ``and operation by the State 
                agency'' after ``for the establishment'';
                    (C) by inserting ``meeting the requirements of 
                section 454A'' after ``information retrieval system'';
                    (D) by striking ``in the State and localities 
                thereof, so as (A)'' and inserting ``so as'';
                    (E) by striking ``(i)''; and
                    (F) by striking ``(including'' and all that follows 
                and inserting a semicolon.
            (2) Automated data processing.--Part D of title IV (42 
        U.S.C. 651-669) is amended by inserting after section 454 the 
        following new section:

``SEC. 454A. AUTOMATED DATA PROCESSING.

    ``(a) In General.--In order for a State to meet the requirements of 
this section, the State agency administering the State program under 
this part shall have in operation a single statewide automated data 
processing and information retrieval system which has the capability to 
perform the tasks specified in this section with the frequency and in 
the manner required by or under this part.
    ``(b) Program Management.--The automated system required by this 
section shall perform such functions as the Secretary may specify 
relating to management of the State program under this part, 
including--
            ``(1) controlling and accounting for use of Federal, State, 
        and local funds in carrying out the program; and
            ``(2) maintaining the data necessary to meet Federal 
        reporting requirements under this part on a timely basis.
    ``(c) Calculation of Performance Indicators.--In order to enable 
the Secretary to determine the incentive payments and penalty 
adjustments required by sections 452(g) and 458, the State agency 
shall--
            ``(1) use the automated system--
                    ``(A) to maintain the requisite data on State 
                performance with respect to paternity establishment and 
                child support enforcement in the State; and
                    ``(B) to calculate the paternity establishment 
                percentage for the State for each fiscal year; and
            ``(2) have in place systems controls to ensure the 
        completeness and reliability of, and ready access to, the data 
        described in paragraph (1)(A), and the accuracy of the 
        calculations described in paragraph (1)(B).
    ``(d) Information Integrity and Security.--The State agency shall 
have in effect safeguards on the integrity, accuracy, and completeness 
of, access to, and use of data in the automated system required by this 
section, which shall include the following (in addition to such other 
safeguards as the Secretary may specify in regulations):
            ``(1) Policies restricting access.--Written policies 
        concerning access to data by State agency personnel, and 
        sharing of data with other persons, which--
                    ``(A) permit access to and use of data only to the 
                extent necessary to carry out the State program under 
                this part; and
                    ``(B) specify the data which may be used for 
                particular program purposes, and the personnel 
                permitted access to such data.
            ``(2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict adherence to 
        the policies described in paragraph (1).
            ``(3) Monitoring of access.--Routine monitoring of access 
        to and use of the automated system, through methods such as 
        audit trails and feedback mechanisms, to guard against and 
        promptly identify unauthorized access or use.
            ``(4) Training and information.--Procedures to ensure that 
        all personnel (including State and local agency staff and 
        contractors) who may have access to or be required to use 
        confidential program data are informed of applicable 
        requirements and penalties (including those in section 6103 of 
        the Internal Revenue Code of 1986), and are adequately trained 
        in security procedures.
            ``(5) Penalties.--Administrative penalties (up to and 
        including dismissal from employment) for unauthorized access 
        to, or disclosure or use of, confidential data.''.
            (3) Regulations.--The Secretary of Health and Human 
        Services shall prescribe final regulations for implementation 
        of section 454A of the Social Security Act not later than 2 
        years after the date of the enactment of this Act.
            (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
        654(24)), as amended by section 4303(a)(1) of this Act, is 
        amended to read as follows:
            ``(24) provide that the State will have in effect an 
        automated data processing and information retrieval system--
                    ``(A) by October 1, 1997, which meets all 
                requirements of this part which were enacted on or 
                before the date of enactment of the Family Support Act 
                of 1988, and
                    ``(B) by October 1, 1999, which meets all 
                requirements of this part enacted on or before the date 
                of the enactment of the Personal Responsibility and 
                Work Opportunity Act of 1996, except that such deadline 
                shall be extended by 1 day for each day (if any) by 
                which the Secretary fails to meet the deadline imposed 
                by section 4344(a)(3) of the Personal Responsibility 
                and Work Opportunity Act of 1996;''.
    (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--
            (1) In general.--Section 455(a) (42 U.S.C. 655(a)) is 
        amended--
                    (A) in paragraph (1)(B)--
                            (i) by striking ``90 percent'' and 
                        inserting ``the percent specified in paragraph 
                        (3)'';
                            (ii) by striking ``so much of''; and
                            (iii) by striking ``which the Secretary'' 
                        and all that follows and inserting ``, and''; 
                        and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3)(A) The Secretary shall pay to each State, for each quarter in 
fiscal years 1996 and 1997, 90 percent of so much of the State 
expenditures described in paragraph (1)(B) as the Secretary finds are 
for a system meeting the requirements specified in section 454(16) (as 
in effect on September 30, 1995) but limited to the amount approved for 
States in the advance planning documents of such States submitted on or 
before September 30, 1995.
    ``(B)(i) The Secretary shall pay to each State, for each quarter in 
fiscal years 1996 through 2001, the percentage specified in clause (ii) 
of so much of the State expenditures described in paragraph (1)(B) as 
the Secretary finds are for a system meeting the requirements of 
sections 454(16) and 454A.
    ``(ii) The percentage specified in this clause is 80 percent.''.
            (2) Temporary limitation on payments under special federal 
        matching rate.--
                    (A) In general.--The Secretary of Health and Human 
                Services may not pay more than $400,000,000 in the 
                aggregate under section 455(a)(3)(B) of the Social 
                Security Act for fiscal years 1996 through 2001.
                    (B) Allocation of limitation among states.--The 
                total amount payable to a State under section 
                455(a)(3)(B) of such Act for fiscal years 1996 through 
                2001 shall not exceed the limitation determined for the 
                State by the Secretary of Health and Human Services in 
                regulations.
                    (C) Allocation formula.--The regulations referred 
                to in subparagraph (B) shall prescribe a formula for 
                allocating the amount specified in subparagraph (A) 
                among States with plans approved under part D of title 
                IV of the Social Security Act, which shall take into 
                account--
                            (i) the relative size of State caseloads 
                        under such part; and
                            (ii) the level of automation needed to meet 
                        the automated data processing requirements of 
                        such part.
    (c) Conforming Amendment.--Section 123(c) of the Family Support Act 
of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.

SEC. 4345. TECHNICAL ASSISTANCE.

    (a) For Training of Federal and State Staff, Research and 
Demonstration Programs, and Special Projects of Regional or National 
Significance.--Section 452 (42 U.S.C. 652) is amended by adding at the 
end the following new subsection:
    ``(j) Out of any money in the Treasury of the United States not 
otherwise appropriated, there is hereby appropriated to the Secretary 
for each fiscal year an amount equal to 1 percent of the total amount 
paid to the Federal Government pursuant to section 457(a) during the 
immediately preceding fiscal year (as determined on the basis of the 
most recent reliable data available to the Secretary as of the end of 
the 3rd calendar quarter following the end of such preceding fiscal 
year), to cover costs incurred by the Secretary for--
            ``(1) information dissemination and technical assistance to 
        States, training of State and Federal staff, staffing studies, 
        and related activities needed to improve programs under this 
        part (including technical assistance concerning State automated 
        systems required by this part); and
            ``(2) research, demonstration, and special projects of 
        regional or national significance relating to the operation of 
        State programs under this part.
The amount appropriated under this subsection shall remain available 
until expended.''.
    (b) Operation of Federal Parent Locator Service.--Section 453 (42 
U.S.C. 653), as amended by section 4316 of this Act, is amended by 
adding at the end the following new subsection:
    ``(o) Recovery of Costs.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there is hereby appropriated 
to the Secretary for each fiscal year an amount equal to 2 percent of 
the total amount paid to the Federal Government pursuant to section 
457(a) during the immediately preceding fiscal year (as determined on 
the basis of the most recent reliable data available to the Secretary 
as of the end of the 3rd calendar quarter following the end of such 
preceding fiscal year), to cover costs incurred by the Secretary for 
operation of the Federal Parent Locator Service under this section, to 
the extent such costs are not recovered through user fees.''.

SEC. 4346. REPORTS AND DATA COLLECTION BY THE SECRETARY.

    (a) Annual Report to Congress.--
            (1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is 
        amended--
                    (A) by striking ``this part;'' and inserting ``this 
                part, including--''; and
                    (B) by adding at the end the following new clauses:
                            ``(i) the total amount of child support 
                        payments collected as a result of services 
                        furnished during the fiscal year to individuals 
                        receiving services under this part;
                            ``(ii) the cost to the States and to the 
                        Federal Government of so furnishing the 
                        services; and
                            ``(iii) the number of cases involving 
                        families--
                                    ``(I) who became ineligible for 
                                assistance under State programs funded 
                                under part A during a month in the 
                                fiscal year; and
                                    ``(II) with respect to whom a child 
                                support payment was received in the 
                                month;''.
            (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
        amended--
                    (A) in the matter preceding clause (i)--
                            (i) by striking ``with the data required 
                        under each clause being separately stated for 
                        cases'' and inserting ``separately stated for 
                        cases'';
                            (ii) by striking ``cases where the child 
                        was formerly receiving'' and inserting ``or 
                        formerly received'';
                            (iii) by inserting ``or 1912'' after 
                        ``471(a)(17)''; and
                            (iv) by inserting ``for'' before ``all 
                        other'';
                    (B) in each of clauses (i) and (ii), by striking 
                ``, and the total amount of such obligations'';
                    (C) in clause (iii), by striking ``described in'' 
                and all that follows and inserting ``in which support 
                was collected during the fiscal year;'';
                    (D) by striking clause (iv); and
                    (E) by redesignating clause (v) as clause (vii), 
                and inserting after clause (iii) the following new 
                clauses:
                            ``(iv) the total amount of support 
                        collected during such fiscal year and 
                        distributed as current support;
                            ``(v) the total amount of support collected 
                        during such fiscal year and distributed as 
                        arrearages;
                            ``(vi) the total amount of support due and 
                        unpaid for all fiscal years; and''.
            (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is 
        amended by striking ``on the use of Federal courts and''.
            (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended--
                    (A) in subparagraph (H), by striking ``and'';
                    (B) in subparagraph (I), by striking the period and 
                inserting ``; and''; and
                    (C) by inserting after subparagraph (I) the 
                following new subparagraph:
                    ``(J) compliance, by State, with the standards 
                established pursuant to subsections (h) and (i).''.
            (5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by 
        striking ``The information contained in any such report under 
        subpargraph (A)'' and all that follows through ``the State plan 
        approved under part A.''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective with respect to fiscal year 1997 and succeeding fiscal years.

SEC. 4347. CHILD SUPPORT DELINQUENCY PENALTY.

    Section 454 (42 U.S.C. 654), as amended by sections 4301(b), 
4303(a), 4312(a), 4313(a), 4333, and 4343(b) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (29);
            (2) by striking the period at the end of paragraph (30) and 
        inserting ``; and''; and
            (3) by adding after paragraph (30) the following new 
        paragraph:
            ``(31) provide that the State shall have in effect such 
        laws and procedures as may be necessary to ensure that--
                    ``(A) any person who, at the end of any calendar 
                year, is delinquent in the payment of child support is 
                civilly liable to the State for a penalty in an amount 
                equal to 10 percent of the amount of the delinquency 
                (excluding any delinquency of the person with 
respect to which a penalty has been imposed pursuant to this paragraph 
for a prior calendar year); and
                    ``(B) the State shall apply amounts collected from 
                a person described in subparagraph (A) to the payment 
                of penalties imposed pursuant to subparagraph (A), 
                after all child support delinquencies of the person 
                have been extinguished and the person has repaid the 
                State for all public assistance provided to the person 
                owed such support, shall remit to the Federal 
                Government an amount equal to 50 percent of the amount 
                applied to the payment of such penalties, and shall 
                permit the county office of the State agency 
                administering the State program under this part which 
                collected such amounts to retain an amount equal to 5 
                percent of the amount applied to the payment of such 
                penalties.''

      CHAPTER 6--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

SEC. 4351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD 
              SUPPORT ORDERS.

    Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read as 
follows:
            ``(10) Review and adjustment of support orders upon 
        request.--
                    ``(A) In general.--Procedures under which--
                            ``(i) upon the request of either parent, 
                        the State shall review and, as appropriate, 
                        adjust each support order being enforced under 
                        this part, taking into account the best 
                        interests of the child involved; and
                            ``(ii) upon the State's own initiative, the 
                        State may review and, if appropriate, adjust 
                        any support order being enforced under this 
                        part with respect to which there is an 
                        assignment under part A, taking into account 
                        the best interests of the child involved. Such 
                        procedures shall provide the following:
                    ``(B) Methods of adjustment.--Such procedures shall 
                provide that the State may elect to review and, if 
                appropriate, adjust an order--
                            ``(i) by reviewing and, if appropriate, 
                        adjusting the order in accordance with the 
                        guidelines established pursuant to section 
                        467(a) if the amount of the child support award 
                        under the order differs from the amount that 
                        would be awarded in accordance with the 
                        guidelines;
                            ``(ii) by applying a cost-of-living 
                        adjustment to the order in accordance with a 
                        formula developed by the State and permit 
                        either party to contest the adjustment, within 
                        30 days after the date of the notice of the 
                        adjustment, by making a request for review and, 
                        if appropriate, adjustment of the order in 
                        accordance with the child support guidelines 
                        established pursuant to section 467(a); or
                            ``(iii) by using automated methods 
                        (including automated comparisons with wage or 
                        State income tax data) to identify orders 
                        eligible for review, conduct the review, 
                        identify orders eligible for adjustment, and 
                        apply the appropriate adjustment to the orders 
                        eligible for adjustment under the threshold 
                        established by the State.
                    ``(C) No proof of change in circumstances 
                necessary.--Such procedures shall provide that any 
                adjustment under this paragraph shall be made without a 
                requirement for proof or showing of a change in 
                circumstances.
                    ``(D) Notice of right to review.--Such procedures 
                shall require the State to provide notice not less than 
                once every 3 years to the parents subject to an order 
                being enforced under this part informing them of their 
                right to request the State to review and, if 
                appropriate, adjust the order pursuant to this 
                paragraph. The notice may be included in the order.''.

SEC. 4352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES RELATING TO 
              CHILD SUPPORT.

    Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is 
amended by adding at the end the following new paragraphs:
    ``(4) In response to a request by the head of a State or local 
child support enforcement agency (or a State or local government 
official authorized by the head of such an agency), if the person 
making the request certifies to the consumer reporting agency that--
            ``(A) the consumer report is needed for the purpose of 
        establishing an individual's capacity to make child support 
        payments or determining the appropriate level of such payments;
            ``(B) the paternity of the consumer for the child to which 
        the obligation relates has been established or acknowledged by 
        the consumer in accordance with State laws under which the 
        obligation arises (if required by those laws);
            ``(C) the person has provided at least 10 days' prior 
        notice to the consumer whose report is requested, by certified 
        or registered mail to the last known address of the consumer, 
        that the report will be requested; and
            ``(D) the consumer report will be kept confidential, will 
        be used solely for a purpose described in subparagraph (A), and 
        will not be used in connection with any other civil, 
        administrative, or criminal proceeding, or for any other 
        purpose.
    ``(5) To an agency administering a State plan under section 454 of 
the Social Security Act (42 U.S.C. 654) for use to set an initial or 
modified child support award.''.

SEC. 4353. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING FINANCIAL 
              RECORDS TO STATE CHILD SUPPORT ENFORCEMENT AGENCIES IN 
              CHILD SUPPORT CASES.

    Part D of title IV (42 U.S.C. 651-669) is amended by adding at the 
end the following:

``SEC. 469A. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING 
              FINANCIAL RECORDS TO STATE CHILD SUPPORT ENFORCEMENT 
              AGENCIES IN CHILD SUPPORT CASES.

    ``(a) In General.--Notwithstanding any other provision of Federal 
or State law, a financial institution shall not be liable under any 
Federal or State law to any person for disclosing any financial record 
of an individual to a State child support enforcement agency attempting 
to establish, modify, or enforce a child support obligation of such 
individual.
    ``(b) Prohibition of Disclosure of Financial Record Obtained by 
State Child Support Enforcement Agency.--A State child support 
enforcement agency which obtains a financial record of an individual 
from a financial institution pursuant to subsection (a) may disclose 
such financial record only for the purpose of, and to the extent 
necessary in, establishing, modifying, or enforcing a child support 
obligation of such individual.
    ``(c) Civil Damages for Unauthorized Disclosure.--
            ``(1) Disclosure by state officer or employee.--If any 
        person knowingly, or by reason of negligence, discloses a 
        financial record of an individual in violation of subsection 
        (b), such individual may bring a civil action for damages 
        against such person in a district court of the United States.
            ``(2) No liability for good faith but erroneous 
        interpretation.--No liability shall arise under this subsection 
        with respect to any disclosure which results from a good faith, 
        but erroneous, interpretation of subsection (b).
            ``(3) Damages.--In any action brought under paragraph (1), 
        upon a finding of liability on the part of the defendant, the 
        defendant shall be liable to the plaintiff in an amount equal 
        to the sum of--
                    ``(A) the greater of--
                            ``(i) $1,000 for each act of unauthorized 
                        disclosure of a financial record with respect 
                        to which such defendant is found liable; or
                            ``(ii) the sum of--
                                    ``(I) the actual damages sustained 
                                by the plaintiff as a result of such 
                                unauthorized disclosure; plus
                                    ``(II) in the case of a willful 
                                disclosure or a disclosure which is the 
                                result of gross negligence, punitive 
                                damages; plus
                    ``(B) the costs (including attorney's fees) of the 
                action.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Financial institution.--The term `financial 
        institution' means--
                    ``(A) a depository institution, as defined in 
                section 3(c) of the Federal Deposit Insurance Act (12 
                U.S.C. 1813(c));
                    ``(B) an institution-affiliated party, as defined 
                in section 3(u) of such Act (12 U.S.C. 1813(u));
                    ``(C) any Federal credit union or State credit 
                union, as defined in section 101 of the Federal Credit 
                Union Act (12 U.S.C. 1752), including an institution-
                affiliated party of such a credit union, as defined in 
                section 206(r) of such Act (12 U.S.C. 1786(r)); and
                    ``(D) any benefit association, insurance company, 
                safe deposit company, money-market mutual fund, or 
                similar entity authorized to do business in the State.
            ``(2) Financial record.--The term `financial record' has 
        the meaning given such term in section 1101 of the Right to 
        Financial Privacy Act of 1978 (12 U.S.C. 3401).''.

                CHAPTER 7--ENFORCEMENT OF SUPPORT ORDERS

SEC. 4361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

    (a) Collection of Fees.--Section 6305(a) of the Internal Revenue 
Code of 1986 (relating to collection of certain liability) is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``, and'';
            (3) by adding at the end the following new paragraph:
            ``(5) no additional fee may be assessed for adjustments to 
        an amount previously certified pursuant to such section 452(b) 
        with respect to the same obligor.''; and
            (4) by striking ``Secretary of Health, Education, and 
        Welfare'' each place it appears and inserting ``Secretary of 
        Health and Human Services''.
    (b) Effective Date.--The amendments made by this section shall 
become effective October 1, 1997.

SEC. 4362. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

    (a) Consolidation and Streamlining of Authorities.--Section 459 (42 
U.S.C. 659) is amended to read as follows:

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

    ``(a) Consent to Support Enforcement.--Notwithstanding any other 
provision of law (including section 207 of this Act and section 5301 of 
title 38, United States Code), effective January 1, 1975, moneys (the 
entitlement to which is based upon remuneration for employment) due 
from, or payable by, the United States or the District of Columbia 
(including any agency, subdivision, or instrumentality thereof) to any 
individual, including members of the Armed Forces of the United States, 
shall be subject, in like manner and to the same extent as if the 
United States or the District of Columbia were a private person, to 
withholding in accordance with State law enacted pursuant to 
subsections (a)(1) and (b) of section 466 and regulations of the 
Secretary under such subsections, and to any other legal process 
brought, by a State agency administering a program under a State plan 
approved under this part or by an individual obligee, to enforce the 
legal obligation of the individual to provide child support or alimony.
    ``(b) Consent to Requirements Applicable to Private Person.--With 
respect to notice to withhold income pursuant to subsection (a)(1) or 
(b) of section 466, or any other order or process to enforce support 
obligations against an individual (if the order or process contains or 
is accompanied by sufficient data to permit prompt identification of 
the individual and the moneys involved), each governmental entity 
specified in subsection (a) shall be subject to the same requirements 
as would apply if the entity were a private person, except as otherwise 
provided in this section.
    ``(c) Designation of Agent; Response to Notice or Process--
            ``(1) Designation of agent.--The head of each agency 
        subject to this section shall--
                    ``(A) designate an agent or agents to receive 
                orders and accept service of process in matters 
                relating to child support or alimony; and
                    ``(B) annually publish in the Federal Register the 
                designation of the agent or agents, identified by title 
                or position, mailing address, and telephone number.
            ``(2) Response to notice or process.--If an agent 
        designated pursuant to paragraph (1) of this subsection 
        receives notice pursuant to State procedures in effect pursuant 
        to subsection (a)(1) or (b) of section 466, or is effectively 
        served with any order, process, or interrogatory, with respect 
        to an individual's child support or alimony payment 
        obligations, the agent shall--
                    ``(A) as soon as possible (but not later than 15 
                days) thereafter, send written notice of the notice or 
                service (together with a copy of the notice or service) 
                to the individual at the duty station or last-known 
                home address of the individual;
                    ``(B) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after receipt of 
                a notice pursuant to such State procedures, comply with 
                all applicable provisions of section 466; and
                    ``(C) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after effective 
                service of any other such order, process, or 
                interrogatory, respond to the order, process, or 
                interrogatory.
    ``(d) Priority of Claims.--If a governmental entity specified in 
subsection (a) receives notice or is served with process, as provided 
in this section, concerning amounts owed by an individual to more than 
1 person--
            ``(1) support collection under section 466(b) must be given 
        priority over any other process, as provided in section 
        466(b)(7);
            ``(2) allocation of moneys due or payable to an individual 
        among claimants under section 466(b) shall be governed by 
        section 466(b) and the regulations prescribed under such 
        section; and
            ``(3) such moneys as remain after compliance with 
        paragraphs (1) and (2) shall be available to satisfy any other 
        such processes on a first-come, first-served basis, with any 
        such process being satisfied out of such moneys as remain after 
        the satisfaction of all such processes which have been 
        previously served.
    ``(e) No Requirement to Vary Pay Cycles.--A governmental entity 
that is affected by legal process served for the enforcement of an 
individual's child support or alimony payment obligations shall not be 
required to vary its normal pay and disbursement cycle in order to 
comply with the legal process.
    ``(f) Relief From Liability.--
            ``(1) Neither the United States, nor the government of the 
        District of Columbia, nor any disbursing officer shall be 
        liable with respect to any payment made from moneys due or 
        payable from the United States to any individual pursuant to 
        legal process regular on its face, if the payment is made in 
        accordance with this section and the regulations issued to 
        carry out this section.
            ``(2) No Federal employee whose duties include taking 
        actions necessary to comply with the requirements of subsection 
        (a) with regard to any individual shall be subject under any 
        law to any disciplinary action or civil or criminal liability 
        or penalty for, or on account of, any disclosure of information 
made by the employee in connection with the carrying out of such 
actions.
    ``(g) Regulations.--Authority to promulgate regulations for the 
implementation of this section shall, insofar as this section applies 
to moneys due from (or payable by)--
            ``(1) the United States (other than the legislative or 
        judicial branches of the Federal Government) or the government 
        of the District of Columbia, be vested in the President (or the 
        designee of the President);
            ``(2) the legislative branch of the Federal Government, be 
        vested jointly in the President pro tempore of the Senate and 
        the Speaker of the House of Representatives (or their 
        designees), and
            ``(3) the judicial branch of the Federal Government, be 
        vested in the Chief Justice of the United States (or the 
        designee of the Chief Justice).
    ``(h) Moneys Subject to Process.--
            ``(1) In general.--Subject to paragraph (2), moneys paid or 
        payable to an individual which are considered to be based upon 
        remuneration for employment, for purposes of this section--
                    ``(A) consist of--
                            ``(i) compensation paid or payable for 
                        personal services of the individual, whether 
                        the compensation is denominated as wages, 
                        salary, commission, bonus, pay, allowances, or 
                        otherwise (including severance pay, sick pay, 
                        and incentive pay);
                            ``(ii) periodic benefits (including a 
                        periodic benefit as defined in section 
                        228(h)(3)) or other payments--
                                    ``(I) under the insurance system 
                                established by title II;
                                    ``(II) under any other system or 
                                fund established by the United States 
                                which provides for the payment of 
                                pensions, retirement or retired pay, 
                                annuities, dependents' or survivors' 
                                benefits, or similar amounts payable on 
                                account of personal services performed 
                                by the individual or any other 
                                individual;
                                    ``(III) as compensation for death 
                                under any Federal program;
                                    ``(IV) under any Federal program 
                                established to provide `black lung' 
                                benefits; or
                                    ``(V) by the Secretary of Veterans 
                                Affairs as compensation for a service-
                                connected disability paid by the 
                                Secretary to a former member of the 
                                Armed Forces who is in receipt of 
                                retired or retainer pay if the former 
                                member has waived a portion of the 
                                retired or retainer pay in order to 
                                receive such compensation; and
                            ``(iii) worker's compensation benefits paid 
                        under Federal or State law but
                    ``(B) do not include any payment--
                            ``(i) by way of reimbursement or otherwise, 
                        to defray expenses incurred by the individual 
                        in carrying out duties associated with the 
                        employment of the individual; or
                            ``(ii) as allowances for members of the 
                        uniformed services payable pursuant to chapter 
                        7 of title 37, United States Code, as 
                        prescribed by the Secretaries concerned 
                        (defined by section 101(5) of such title) as 
                        necessary for the efficient performance of 
                        duty.
            ``(2) Certain amounts excluded.--In determining the amount 
        of any moneys due from, or payable by, the United States to any 
        individual, there shall be excluded amounts which--
                    ``(A) are owed by the individual to the United 
                States;
                    ``(B) are required by law to be, and are, deducted 
                from the remuneration or other payment involved, 
                including Federal employment taxes, and fines and 
                forfeitures ordered by court-martial;
                    ``(C) are properly withheld for Federal, State, or 
                local income tax purposes, if the withholding of the 
                amounts is authorized or required by law and if amounts 
                withheld are not greater than would be the case if the 
                individual claimed all dependents to which he was 
                entitled (the withholding of additional amounts 
                pursuant to section 3402(i) of the Internal Revenue 
                Code of 1986 may be permitted only when the individual 
                presents evidence of a tax obligation which supports 
                the additional withholding);
                    ``(D) are deducted as health insurance premiums;
                    ``(E) are deducted as normal retirement 
                contributions (not including amounts deducted for 
                supplementary coverage); or
                    ``(F) are deducted as normal life insurance 
                premiums from salary or other remuneration for 
                employment (not including amounts deducted for 
                supplementary coverage).
    ``(i) Definitions.--For purposes of this section--
            ``(1) United states.--The term `United States' includes any 
        department, agency, or instrumentality of the legislative, 
        judicial, or executive branch of the Federal Government, the 
        United States Postal Service, the Postal Rate Commission, any 
        Federal corporation created by an Act of Congress that is 
        wholly owned by the Federal Government, and the governments of 
        the territories and possessions of the United States.
            ``(2) Child support.--The term `child support', when used 
        in reference to the legal obligations of an individual to 
        provide such support, means amounts required to be paid under a 
        judgment, decree, or order, whether temporary, final, or 
        subject to modification, issued by a court or an administrative 
        agency of competent jurisdiction, for the support and 
        maintenance of a child, including a child who has attained the 
        age of majority under the law of the issuing State, or a child 
        and the parent with whom the child is living, which provides 
        for monetary support, health care, arrearages or reimbursement, 
        and which may include other related costs and fees, interest 
        and penalties, income withholding, attorney's fees, and other 
        relief.
            ``(3) Alimony.--
                    ``(A) In general.--The term `alimony', when used in 
                reference to the legal obligations of an individual to 
                provide the same, means periodic payments of funds for 
                the support and maintenance of the spouse (or former 
                spouse) of the individual, and (subject to and in 
                accordance with State law) includes separate 
                maintenance, alimony pendente lite, maintenance, and 
                spousal support, and includes attorney's fees, 
                interest, and court costs when and to the extent that 
                the same are expressly made recoverable as such 
                pursuant to a decree, order, or judgment issued in 
                accordance with applicable State law by a court of 
                competent jurisdiction.
                    ``(B) Exceptions.--Such term does not include--
                            ``(i) any child support; or
                            ``(ii) any payment or transfer of property 
                        or its value by an individual to the spouse or 
                        a former spouse of the individual in compliance 
                        with any community property settlement, 
                        equitable distribution of property, or other 
                        division of property between spouses or former 
                        spouses.
            ``(4) Private person.--The term `private person' means a 
        person who does not have sovereign or other special immunity or 
        privilege which causes the person not to be subject to legal 
        process.
            ``(5) Legal process.--The term `legal process' means any 
        writ, order, summons, or other similar process in the nature of 
        garnishment--
                    ``(A) which is issued by--
                            ``(i) a court or an administrative agency 
                        of competent jurisdiction in any State, 
                        territory, or possession of the United States;
                            ``(ii) a court or an administrative agency 
                        of competent jurisdiction in any foreign 
                        country with which the United States has 
                        entered into an agreement which requires the 
                        United States to honor the process; or
                            ``(iii) an authorized official pursuant to 
                        an order of such a court or an administrative 
                        agency of competent jurisdiction or pursuant to 
                        State or local law; and
                    ``(B) which is directed to, and the purpose of 
                which is to compel, a governmental entity which holds 
                moneys which are otherwise payable to an individual to 
                make a payment from the moneys to another party in 
                order to satisfy a legal obligation of the individual 
                to provide child support or make alimony payments.''.
    (b) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
        661 and 662) are repealed.
            (2) To title 5, united states code.--Section 5520a of title 
        5, United States Code, is amended, in subsections (h)(2) and 
        (i), by striking ``sections 459, 461, and 462 of the Social 
        Security Act (42 U.S.C. 659, 661, and 662)'' and inserting 
        ``section 459 of the Social Security Act (42 U.S.C. 659)''.
    (c) Military Retired and Retainer Pay.--
            (1) Definition of court.--Section 1408(a)(1) of title 10, 
        United States Code, is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding after subparagraph (C) the following 
                new subparagraph:
                    ``(D) any administrative or judicial tribunal of a 
                State competent to enter orders for support or 
                maintenance (including a State agency administering a 
                program under a State plan approved under part D of 
                title IV of the Social Security Act), and, for purposes 
                of this subparagraph, the term `State' includes the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.''.
            (2) Definition of court order.--Section 1408(a)(2) of such 
        title is amended--
                    (A) by inserting ``or a support order, as defined 
                in section 453(p) of the Social Security Act (42 U.S.C. 
                653(p)),'' before ``which--'';
                    (B) in subparagraph (B)(i), by striking ``(as 
                defined in section 462(b) of the Social Security Act 
                (42 U.S.C. 662(b)))'' and inserting ``(as defined in 
                section 459(i)(2) of the Social Security Act (42 U.S.C. 
                659(i)(2)))''; and
                    (C) in subparagraph (B)(ii), by striking ``(as 
                defined in section 462(c) of the Social Security Act 
                (42 U.S.C. 662(c)))'' and inserting ``(as defined in 
                section 459(i)(3) of the Social Security Act (42 U.S.C. 
                659(i)(3)))''.
            (3) Public payee.--Section 1408(d) of such title is 
        amended--
                    (A) in the heading, by inserting ``(or for Benefit 
                of)'' before ``Spouse or''; and
                    (B) in paragraph (1), in the 1st sentence, by 
                inserting ``(or for the benefit of such spouse or 
                former spouse to a State disbursement unit established 
                pursuant to section 454B of the Social Security Act or 
                other public payee designated by a State, in accordance 
                with part D of title IV of the Social Security Act, as 
                directed by court order, or as otherwise directed in 
                accordance with such part D)'' before ``in an amount 
                sufficient''.
            (4) Relationship to part d of title iv.--Section 1408 of 
        such title is amended by adding at the end the following new 
        subsection:
    ``(j) Relationship to Other Laws.--In any case involving an order 
providing for payment of child support (as defined in section 459(i)(2) 
of the Social Security Act) by a member who has never been married to 
the other parent of the child, the provisions of this section shall not 
apply, and the case shall be subject to the provisions of section 459 
of such Act.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this Act.

SEC. 4363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF THE 
              ARMED FORCES.

    (a) Availability of Locator Information.--
            (1) Maintenance of address information.--The Secretary of 
        Defense shall establish a centralized personnel locator service 
        that includes the address of each member of the Armed Forces 
        under the jurisdiction of the Secretary. Upon request of the 
        Secretary of Transportation, addresses for members of the Coast 
        Guard shall be included in the centralized personnel locator 
        service.
            (2) Type of address.--
                    (A) Residential address.--Except as provided in 
                subparagraph (B), the address for a member of the Armed 
                Forces shown in the locator service shall be the 
                residential address of that member.
                    (B) Duty address.--The address for a member of the 
                Armed Forces shown in the locator service shall be the 
                duty address of that member in the case of a member--
                            (i) who is permanently assigned overseas, 
                        to a vessel, or to a routinely deployable unit; 
                        or
                            (ii) with respect to whom the Secretary 
                        concerned makes a determination that the 
                        member's residential address should not be 
                        disclosed due to national security or safety 
                        concerns.
            (3) Updating of locator information.--Within 30 days after 
        a member listed in the locator service establishes a new 
        residential address (or a new duty address, in the case of a 
        member covered by paragraph (2)(B)), the Secretary concerned 
        shall update the locator service to indicate the new address of 
        the member.
            (4) Availability of information.--The Secretary of Defense 
        shall make information regarding the address of a member of the 
        Armed Forces listed in the locator service available, on 
        request, to the Federal Parent Locator Service established 
        under section 453 of the Social Security Act.
    (b) Facilitating Granting of Leave for Attendance at Hearings.--
            (1) Regulations.--The Secretary of each military 
        department, and the Secretary of Transportation with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy, shall prescribe regulations to facilitate the granting of 
        leave to a member of the Armed Forces under the jurisdiction of 
        that Secretary in a case in which--
                    (A) the leave is needed for the member to attend a 
                hearing described in paragraph (2);
                    (B) the member is not serving in or with a unit 
                deployed in a contingency operation (as defined in 
                section 101 of title 10, United States Code); and
                    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not otherwise 
                require that such leave not be granted.
            (2) Covered hearings.--Paragraph (1) applies to a hearing 
        that is conducted by a court or pursuant to an administrative 
        process established under State law, in connection with a civil 
        action--
                    (A) to determine whether a member of the Armed 
                Forces is a natural parent of a child; or
                    (B) to determine an obligation of a member of the 
                Armed Forces to provide child support.
            (3) Definitions.--For purposes of this subsection--
                    (A) The term ``court'' has the meaning given that 
                term in section 1408(a) of title 10, United States 
                Code.
                    (B) The term ``child support'' has the meaning 
                given such term in section 459(i) of the Social 
                Security Act (42 U.S.C. 659(i)).
    (c) Payment of Military Retired Pay in Compliance With Child 
Support Orders.--
            (1) Date of certification of court order.--Section 1408 of 
        title 10, United States Code, as amended by section 4362(c)(4) 
        of this Act, is amended--
                    (A) by redesignating subsections (i) and (j) as 
                subsections (j) and (k), respectively; and
                    (B) by inserting after subsection (h) the following 
                new subsection:
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of receipt 
by the Secretary.''.
            (2) Payments consistent with assignments of rights to 
        states.--Section 1408(d)(1) of such title is amended by 
        inserting after the 1st sentence the following new sentence: 
        ``In the case of a spouse or former spouse who, pursuant to 
        section 408(a)(4) of the Social Security Act (42 U.S.C. 
        608(a)(4)), assigns to a State the rights of the spouse or 
        former spouse to receive support, the Secretary concerned may 
        make the child support payments referred to in the preceding 
        sentence to that State in amounts consistent with that 
        assignment of rights.''.
            (3) Arrearages owed by members of the uniformed services.--
        Section 1408(d) of such title is amended by adding at the end 
        the following new paragraph:
    ``(6) In the case of a court order for which effective service is 
made on the Secretary concerned on or after the date of the enactment 
of this paragraph and which provides for payments from the disposable 
retired pay of a member to satisfy the amount of child support set 
forth in the order, the authority provided in paragraph (1) to make 
payments from the disposable retired pay of a member to satisfy the 
amount of child support set forth in a court order shall apply to 
payment of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently become 
due.''.
            (4) Payroll deductions.--The Secretary of Defense shall 
        begin payroll deductions within 30 days after receiving notice 
        of withholding, or for the 1st pay period that begins after 
        such 30-day period.

SEC. 4364. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466 (42 U.S.C. 666), as amended by section 4321 of this 
Act, is amended by adding at the end the following new subsection:
    ``(g) Laws Voiding Fraudulent Transfers.--In order to satisfy 
section 454(20)(A), each State must have in effect--
            ``(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
            ``(B) the Uniform Fraudulent Transfer Act of 1984; or
            ``(C) another law, specifying indicia of fraud which create 
        a prima facie case that a debtor transferred income or property 
        to avoid payment to a child support creditor, which the 
        Secretary finds affords comparable rights to child support 
        creditors; and
            ``(2) procedures under which, in any case in which the 
        State knows of a transfer by a child support debtor with 
        respect to which such a prima facie case is established, the 
        State must--
                    ``(A) seek to void such transfer; or
                    ``(B) obtain a settlement in the best interests of 
                the child support creditor.''.

SEC. 4365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD SUPPORT.

    (a) In General.--Section 466(a) (42 U.S.C. 666(a)), as amended by 
sections 4315, 4317(a), and 4323 of this Act, is amended by inserting 
after paragraph (14) the following new paragraph:
            ``(15) Procedures to ensure that persons owing past-due 
        support work or have a plan for payment of such support.--
                    ``(A) In general.--Procedures under which the State 
                has the authority, in any case in which an individual 
                owes past-due support with respect to a child receiving 
                assistance under a State program funded under part A, 
                to issue an order or to request that a court or an 
                administrative process established pursuant to State 
                law issue an order that requires the individual to--
                            ``(i) pay such support in accordance with a 
                        plan approved by the court, or, at the option 
                        of the State, a plan approved by the State 
                        agency administering the State program under 
                        this part; or
                            ``(ii) if the individual is subject to such 
                        a plan and is not incapacitated, participate in 
                        such work activities (as defined in section 
                        407(d)) as the court, or, at the option of the 
                        State, the State agency administering the State 
                        program under this part, deems appropriate.
                    ``(B) Past-due support defined.--For purposes of 
                subparagraph (A), the term `past-due support' means the 
                amount of a delinquency, determined under a court 
                order, or an order of an administrative process 
                established under State law, for support and 
                maintenance of a child, or of a child and the parent 
                with whom the child is living.''.
    (b) Conforming amendment.--The flush paragraph at the end of 
section 466(a) (42 U.S.C.666(a)) is amended by striking ``and (7)'' and 
inserting ``(7), and (15)''.

SEC. 4366. DEFINITION OF SUPPORT ORDER.

    Section 453 (42 U.S.C. 653) as amended by sections 4316 and 4345(b) 
of this Act, is amended by adding at the end the following new 
subsection:
    ``(p) Support Order Defined.--As used in this part, the term 
`support order' means a judgment, decree, or order, whether temporary, 
final, or subject to modification, issued by a court or an 
administrative agency of competent jurisdiction, for the support and 
maintenance of a child, including a child who has attained the age of 
majority under the law of the issuing State, or a child and the parent 
with whom the child is living, which provides for monetary support, 
health care, arrearages, or reimbursement, and which may include 
related costs and fees, interest and penalties, income withholding, 
attorneys' fees, and other relief.''.

SEC. 4367. REPORTING ARREARAGES TO CREDIT BUREAUS.

    Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as 
follows:
            ``(7) Reporting arrearages to credit bureaus.--
                    ``(A) In general.--Procedures (subject to 
                safeguards pursuant to subparagraph (B)) requiring the 
                State to report periodically to consumer reporting 
                agencies (as defined in section 603(f) of the Fair 
                Credit Reporting Act (15 U.S.C. 1681a(f)) the name of 
                any noncustodial parent who is delinquent in the 
                payment of support, and the amount of overdue support 
                owed by such parent.
                    ``(B) Safeguards.--Procedures ensuring that, in 
                carrying out subparagraph (A), information with respect 
                to a noncustodial parent is reported--
                            ``(i) only after such parent has been 
                        afforded all due process required under State 
                        law, including notice and a reasonable 
                        opportunity to contest the accuracy of such 
                        information; and
                            ``(ii) only to an entity that has furnished 
                        evidence satisfactory to the State that the 
                        entity is a consumer reporting agency (as so 
                        defined).''.

SEC. 4368. LIENS.

    Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read as 
follows:
            ``(4) Liens.--Procedures under which--
                    ``(A) liens arise by operation of law against real 
                and personal property for amounts of overdue support 
                owed by a noncustodial parent who resides or owns 
                property in the State; and
                    ``(B) the State accords full faith and credit to 
                liens described in subparagraph (A) arising in another 
                State, when the State agency, party, or other entity 
                seeking to enforce such a lien complies with the 
                procedural rules relating to recording or serving liens 
                that arise within the State, except that such rules may 
                not require judicial notice or hearing prior to the 
                enforcement of such a lien.''.

SEC. 4369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 4315, 
4317(a), 4323, and 4365 of this Act, is amended by inserting after 
paragraph (15) the following:
            ``(16) Authority to withhold or suspend licenses.--
        Procedures under which the State has (and uses in appropriate 
        cases) authority to withhold or suspend, or to restrict the use 
        of driver's licenses, professional and occupational licenses, 
        and recreational licenses of individuals owing overdue support 
        or failing, after receiving appropriate notice, to comply with 
        subpoenas or warrants relating to paternity or child support 
        proceedings.''.

SEC. 4370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD SUPPORT.

    (a) HHS Certification Procedure.--
            (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
        652), as amended by section 4345 of this Act, is amended by 
        adding at the end the following new subsection:
    ``(k)(1) If the Secretary receives a certification by a State 
agency in accordance with the requirements of section 454(31) that an 
individual owes arrearages of child support in an amount exceeding 
$5,000, the Secretary shall transmit such certification to the 
Secretary of State for action (with respect to denial, revocation, or 
limitation of passports) pursuant to paragraph (2).
    ``(2) The Secretary of State shall, upon certification by the 
Secretary transmitted under paragraph (1), refuse to issue a passport 
to such individual, and may revoke, restrict, or limit a passport 
issued previously to such individual.
    ``(3) The Secretary and the Secretary of State shall not be liable 
to an individual for any action with respect to a certification by a 
State agency under this section.''.
            (2) State agency responsibility.--Section 454 (42 U.S.C. 
        654), as amended by sections 4301(b), 4303(a), 4312(b), 
        4313(a), 4333, 4343(b), and 4347 of this Act, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (30);
                    (B) by striking the period at the end of paragraph 
                (31) and inserting ``; and''; and
                    (C) by adding after paragraph (31) the following 
                new paragraph:
            ``(32) provide that the State agency will have in effect a 
        procedure for certifying to the Secretary, for purposes of the 
        procedure under section 452(k), determinations that individuals 
        owe arrearages of child support in an amount exceeding $5,000, 
        under which procedure--
                    ``(A) each individual concerned is afforded notice 
                of such determination and the consequences thereof, and 
                an opportunity to contest the determination; and
                    ``(B) the certification by the State agency is 
                furnished to the Secretary in such format, and 
                accompanied by such supporting documentation, as the 
                Secretary may require.''.
    (b) Effective Date.--This section and the amendments made by this 
section shall become effective October 1, 1997.

SEC. 4371. INTERNATIONAL SUPPORT ENFORCEMENT.

    (a) Authority for International Agreements.--Part D of title IV, as 
amended by section 4362(a) of this Act, is amended by adding after 
section 459 the following new section:

``SEC. 459A. INTERNATIONAL SUPPORT ENFORCEMENT.

    ``(a) Authority for Declarations.--
            ``(1) Declaration.--The Secretary of State, with the 
        concurrence of the Secretary of Health and Human Services, is 
        authorized to declare any foreign country (or a political 
        subdivision thereof) to be a foreign reciprocating country if 
        the foreign country has established, or undertakes to 
        establish, procedures for the establishment and enforcement of 
        duties of support owed to obligees who are residents of the 
        United States, and such procedures are substantially in 
        conformity with the standards prescribed under subsection (b).
            ``(2) Revocation.--A declaration with respect to a foreign 
        country made pursuant to paragraph (1) may be revoked if the 
        Secretaries of State and Health and Human Services determine 
        that--
                    ``(A) the procedures established by the foreign 
                country regarding the establishment and enforcement of 
                duties of support have been so changed, or the foreign 
                country's implementation of such procedures is so 
                unsatisfactory, that such procedures do not meet the 
                criteria for such a declaration; or
                    ``(B) continued operation of the declaration is not 
                consistent with the purposes of this part.
            ``(3) Form of declaration.--A declaration under paragraph 
        (1) may be made in the form of an international agreement, in 
        connection with an international agreement or corresponding 
        foreign declaration, or on a unilateral basis.
    ``(b) Standards for Foreign Support Enforcement Procedures.--
            ``(1) Mandatory elements.--Support enforcement procedures 
        of a foreign country which may be the subject of a declaration 
        pursuant to subsection (a)(1) shall include the following 
        elements:
                    ``(A) The foreign country (or political subdivision 
                thereof) has in effect procedures, available to 
                residents of the United States--
                            ``(i) for establishment of paternity, and 
                        for establishment of orders of support for 
                        children and custodial parents; and
                            ``(ii) for enforcement of orders to provide 
                        support to children and custodial parents, 
                        including procedures for collection and 
                        appropriate distribution of support payments 
                        under such orders.
                    ``(B) The procedures described in subparagraph (A), 
                including legal and administrative assistance, are 
                provided to residents of the United States at no cost.
                    ``(C) An agency of the foreign country is 
                designated as a Central Authority responsible for--
                            ``(i) facilitating support enforcement in 
                        cases involving residents of the foreign 
                        country and residents of the United States; and
                            ``(ii) ensuring compliance with the 
                        standards established pursuant to this 
                        subsection.
            ``(2) Additional elements.--The Secretary of Health and 
        Human Services and the Secretary of State, in consultation with 
        the States, may establish such additional standards as may be 
        considered necessary to further the purposes of this section.
    ``(c) Designation of United States Central Authority.--It shall be 
the responsibility of the Secretary of Health and Human Services to 
facilitate support enforcement in cases involving residents of the 
United States and residents of foreign countries that are the subject 
of a declaration under this section, by activities including--
            ``(1) development of uniform forms and procedures for use 
        in such cases;
            ``(2) notification of foreign reciprocating countries of 
        the State of residence of individuals sought for support 
        enforcement purposes, on the basis of information provided by 
        the Federal Parent Locator Service; and
            ``(3) such other oversight, assistance, and coordination 
        activities as the Secretary may find necessary and appropriate.
    ``(d) Effect on Other Laws.--States may enter into reciprocal 
arrangements for the establishment and enforcement of support 
obligations with foreign countries that are not the subject of a 
declaration pursuant to subsection (a), to the extent consistent with 
Federal law.''.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 4301(b), 4303(a), 4312(b), 4313(a), 4333, 4343(b), 
4347, and 4370(a)(2) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (31);
            (2) by striking the period at the end of paragraph (32) and 
        inserting ``; and''; and
            (3) by adding after paragraph (32) the following new 
        paragraph:
            ``(33)(A) provide that any request for services under this 
        part by a foreign reciprocating country or a foreign country 
        with which the State has an arrangement described in section 
        459A(d)(2) shall be treated as a request by a State;
            ``(B) provide, at State option, notwithstanding paragraph 
        (4) or any other provision of this part, for services under the 
        plan for enforcement of a spousal support order not described 
        in paragraph (4)(B) entered by such a country (or subdivision); 
        and
            ``(C) provide that no applications will be required from, 
        and no costs will be assessed for such services against, the 
        foreign reciprocating country or foreign obligee (but costs may 
        at State option be assessed against the obligor).''.

SEC. 4372. FINANCIAL INSTITUTION DATA MATCHES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 4315, 
4317(a), 4323, 4365, and 4369 of this Act, is amended by inserting 
after paragraph (16) the following new paragraph:
            ``(17) Financial institution data matches.--
                    ``(A) In general.--Procedures under which the State 
                agency shall enter into agreements with financial 
                institutions doing business in the State--
                            ``(i) to develop and operate, in 
                        coordination with such financial institutions, 
                        a data match system, using automated data 
                        exchanges to the maximum extent feasible, in 
                        which each such financial institution is 
                        required to provide for each calendar quarter 
                        the name, record address, social security 
                        number or other taxpayer identification number, 
                        and other identifying information for each 
                        noncustodial parent who maintains an account at 
                        such institution and who owes past-due support, 
                        as identified by the State by name and social 
                        security number or other taxpayer 
                        identification number; and
                            ``(ii) in response to a notice of lien or 
                        levy, encumber or surrender, as the case may 
                        be, assets held by such institution on behalf 
                        of any noncustodial parent who is subject to a 
                        child support lien pursuant to paragraph (4).
                    ``(B) Reasonable fees.--The State agency may pay a 
                reasonable fee to a financial institution for 
                conducting the data match provided for in subparagraph 
                (A)(i), not to exceed the actual costs incurred by such 
                financial institution.
                    ``(C) Liability.--A financial institution shall not 
                be liable under any Federal or State law to any 
                person--
                            ``(i) for any disclosure of information to 
                        the State agency under subparagraph (A)(i);
                            ``(ii) for encumbering or surrendering any 
                        assets held by such financial institution in 
                        response to a notice of lien or levy issued by 
                        the State agency as provided for in 
                        subparagraph (A)(ii); or
                            ``(iii) for any other action taken in good 
                        faith to comply with the requirements of 
                        subparagraph (A).
                    ``(D) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Financial institution.--The term 
                        `financial institution' has the meaning given 
                        to such term by section 469A(d)(1).
                            ``(ii) Account.--The term `account' means a 
                        demand deposit account, checking or negotiable 
                        withdrawal order account, savings account, time 
                        deposit account, or money-market mutual fund 
                        account.''.

SEC. 4373. ENFORCEMENT OF ORDERS AGAINST PATERNAL OR MATERNAL 
              GRANDPARENTS IN CASES OF MINOR PARENTS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 4315, 
4317(a), 4323, 4365, 4369, and 4372 of this Act, is amended by 
inserting after paragraph (17) the following new paragraph:
            ``(18) Enforcement of orders against paternal or maternal 
        grandparents.--Procedures under which, at the State's option, 
        any child support order enforced under this part with respect 
        to a child of minor parents, if the custodial parent of such 
        child is receiving assistance under the State program under 
        part A, shall be enforceable, jointly and severally, against 
        the parents of the noncustodial parent of such child.''.

SEC. 4374. NONDISCHARGEABILITY IN BANKRUPTCY OF CERTAIN DEBTS FOR THE 
              SUPPORT OF A CHILD.

    (a) Amendment to Title 11 of the United States Code.--Section 
523(a) of title 11, United States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (16);
            (2) by striking the period at the end of paragraph (17) and 
        inserting ``; or'';
            (3) by adding at the end the following:
            ``(18) owed under State law to a State or municipality that 
        is--
                    ``(A) in the nature of support, and
                    ``(B) enforceable under part D of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.).''; and
            (4) in paragraph (5), by striking ``section 402(a)(26)'' 
        and inserting ``section 408(a)(4)''.
    (b) Amendment to the Social Security Act.--Section 456(b) (42 
U.S.C. 656(b)) is amended to read as follows:
    ``(b) Nondischargeability.--A debt (as defined in section 101 of 
title 11 of the United States Code) owed under State law to a State (as 
defined in such section) or municipality (as defined in such section) 
that is in the nature of support and that is enforceable under this 
part is not released by a discharge in bankruptcy under title 11 of the 
United States Code.''.
    (c) Application of Amendments.--The amendments made by this section 
shall apply only with respect to cases commenced under title 11 of the 
United States Code after the date of the enactment of this Act.

                       CHAPTER 8--MEDICAL SUPPORT

SEC. 4376. CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD SUPPORT 
              ORDER.

    (a) In General.--Section 609(a)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
            (1) by striking ``issued by a court of competent 
        jurisdiction'';
            (2) by striking the period at the end of clause (ii) and 
        inserting a comma; and
            (3) by adding, after and below clause (ii), the following:
                ``if such judgment, decree, or order (I) is issued by a 
                court of competent jurisdiction or (II) is issued 
                through an administrative process established under 
                State law and has the force and effect of law under 
                applicable State law.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Plan amendments not required until january 1, 1997.--
        Any amendment to a plan required to be made by an amendment 
        made by this section shall not be required to be made before 
        the 1st plan year beginning on or after January 1, 1997, if--
                    (A) during the period after the date before the 
                date of the enactment of this Act and before such 1st 
                plan year, the plan is operated in accordance with the 
                requirements of the amendments made by this section; 
                and
                    (B) such plan amendment applies retroactively to 
                the period after the date before the date of the 
                enactment of this Act and before such 1st plan year.
        A plan shall not be treated as failing to be operated in 
        accordance with the provisions of the plan merely because it 
        operates in accordance with this paragraph.

SEC. 4377. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 4315, 
4317(a), 4323, 4365, 4369, 4372, and 4373 of this Act, is amended by 
inserting after paragraph (18) the following new paragraph:
            ``(19) Health care coverage.--Procedures under which all 
        child support orders enforced pursuant to this part shall 
        include a provision for the health care coverage of the child, 
        and in the case in which a noncustodial parent provides such 
        coverage and changes employment, and the new employer provides 
        health care coverage, the State agency shall transfer notice of 
        the provision to the employer, which notice shall operate to 
        enroll the child in the noncustodial parent's health plan, 
        unless the noncustodial parent contests the notice.''.

CHAPTER 9--ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NON-RESIDENTIAL 
                                PARENTS

SEC. 4381. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    Part D of title IV (42 U.S.C. 651-669), as amended by section 4353 
of this Act, is amended by adding at the end the following new section:

``SEC. 469B. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    ``(a) In General.--The Administration for Children and Families 
shall make grants under this section to enable States to establish and 
administer programs to support and facilitate noncustodial parents' 
access to and visitation of their children, by means of activities 
including mediation (both voluntary and mandatory), counseling, 
education, development of parenting plans, visitation enforcement 
(including monitoring, supervision and neutral drop-off and pickup), 
and development of guidelines for visitation and alternative custody 
arrangements.
    ``(b) Amount of Grant.--The amount of the grant to be made to a 
State under this section for a fiscal year shall be an amount equal to 
the lesser of--
            ``(1) 90 percent of State expenditures during the fiscal 
        year for activities described in subsection (a); or
            ``(2) the allotment of the State under subsection (c) for 
        the fiscal year.
    ``(c) Allotments to States.--
            ``(1) In general.--The allotment of a State for a fiscal 
        year is the amount that bears the same ratio to $10,000,000 for 
        grants under this section for the fiscal year as the number of 
        children in the State living with only 1 biological parent 
        bears to the total number of such children in all States.
            ``(2) Minimum allotment.--The Administration for Children 
        and Families shall adjust allotments to States under paragraph 
        (1) as necessary to ensure that no State is allotted less 
        than--
                    ``(A) $50,000 for fiscal year 1997 or 1998; or
                    ``(B) $100,000 for any succeeding fiscal year.
    ``(d) No Supplantation of State Expenditures for Similar 
Activities.--A State to which a grant is made under this section may 
not use the grant to supplant expenditures by the State for activities 
specified in subsection (a), but shall use the grant to supplement such 
expenditures at a level at least equal to the level of such 
expenditures for fiscal year 1995.
    ``(e) State Administration.--Each State to which a grant is made 
under this section--
            ``(1) may administer State programs funded with the grant, 
        directly or through grants to or contracts with courts, local 
        public agencies, or nonprofit private entities;
            ``(2) shall not be required to operate such programs on a 
        statewide basis; and
            ``(3) shall monitor, evaluate, and report on such programs 
        in accordance with regulations prescribed by the Secretary.''.

         CHAPTER 10--EFFECTIVE DATES AND CONFORMING AMENDMENTS

SEC. 4391. EFFECTIVE DATES AND CONFORMING AMENDMENTS.

    (a) In General.--Except as otherwise specifically provided (but 
subject to subsections (b) and (c))--
            (1) the provisions of this subtitle requiring the enactment 
        or amendment of State laws under section 466 of the Social 
        Security Act, or revision of State plans under section 454 of 
        such Act, shall be effective with respect to periods beginning 
        on and after October 1, 1996; and
            (2) all other provisions of this subtitle shall become 
        effective upon the date of the enactment of this Act.
    (b) Grace Period for State Law Changes.--The provisions of this 
subtitle shall become effective with respect to a State on the later 
of--
            (1) the date specified in this subtitle, or
            (2) the effective date of laws enacted by the legislature 
        of such State implementing such provisions,
but in no event later than the 1st day of the 1st calendar quarter 
beginning after the close of the 1st regular session of the State 
legislature that begins after the date of the enactment of this Act. 
For purposes of the previous 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.
    (c) Grace Period for State Constitutional Amendment.--A State shall 
not be found out of compliance with any requirement enacted by this 
subtitle if the State is unable to so comply without amending the State 
constitution until the earlier of--
            (1) 1 year after the effective date of the necessary State 
        constitutional amendment; or
            (2) 5 years after the date of the enactment of this Act.
    (d) Conforming Amendments.--
            (1) The following provisions are amended by striking 
        ``absent'' each place it appears and inserting 
        ``noncustodial'':
                    (A) Section 451 (42 U.S.C. 651).
                    (B) Subsections (a)(1), (a)(8), (a)(10)(E), 
                (a)(10)(F), (f), and (h) of section 452 (42 U.S.C. 
                652).
                    (C) Section 453(f) (42 U.S.C. 653(f)).
                    (D) Paragraphs (8), (13), and (21)(A) of section 
                454 (42 U.S.C. 654).
                    (E) Section 455(e)(1) (42 U.S.C. 655(e)(1)).
                    (F) Section 458(a) (42 U.S.C. 658(a)).
                    (G) Subsections (a), (b), and (c) of section 463 
                (42 U.S.C. 663).
                    (H) Subsections (a)(3)(A), (a)(3)(C), (a)(6), and 
                (a)(8)(B)(ii), the last sentence of subsection (a), and 
                subsections (b)(1), (b)(3)(B), (b)(3)(B)(i), 
                (b)(6)(A)(i), (b)(9), and (e) of section 466 (42 U.S.C. 
                666).
            (2) The following provisions are amended by striking ``an 
        absent'' each place it appears and inserting ``a 
        noncustodial'':
                    (A) Paragraphs (2) and (3) of section 453(c) (42 
                U.S.C. 653(c)).
                    (B) Subparagraphs (B) and (C) of section 454(9) (42 
                U.S.C. 654(9)).
                    (C) Section 456(a)(3) (42 U.S.C. 656(a)(3)).
                    (D) Subsections (a)(3)(A), (a)(6), (a)(8)(B)(i), 
                (b)(3)(A), and (b)(3)(B) of section 466 (42 U.S.C. 
                666).
                    (E) Paragraphs (2) and (4) of section 469(b) (42 
                U.S.C. 669(b)).

     Subtitle D--Restricting Welfare and Public Benefits for Aliens

SEC. 4400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE AND 
              IMMIGRATION.

    The Congress makes the following statements concerning national 
policy with respect to welfare and immigration:
            (1) Self-sufficiency has been a basic principle of United 
        States immigration law since this country's earliest 
        immigration statutes.
            (2) It continues to be the immigration policy of the United 
        States that--
                    (A) aliens within the Nation's borders not depend 
                on public resources to meet their needs, but rather 
                rely on their own capabilities and the resources of 
                their families, their sponsors, and private 
                organizations, and
                    (B) the availability of public benefits not 
                constitute an incentive for immigration to the United 
                States.
            (3) Despite the principle of self-sufficiency, aliens have 
        been applying for and receiving public benefits from Federal, 
        State, and local governments at increasing rates.
            (4) Current eligibility rules for public assistance and 
        unenforceable financial support agreements have proved wholly 
        incapable of assuring that individual aliens not burden the 
        public benefits system.
            (5) It is a compelling government interest to enact new 
        rules for eligibility and sponsorship agreements in order to 
        assure that aliens be self-reliant in accordance with national 
        immigration policy.
            (6) It is a compelling government interest to remove the 
        incentive for illegal immigration provided by the availability 
        of public benefits.
            (7) With respect to the State authority to make 
        determinations concerning the eligibility of qualified aliens 
        for public benefits in this subtitle, a State that chooses to 
        follow the Federal classification in determining the 
        eligibility of such aliens for public assistance shall be 
        considered to have chosen the least restrictive means available 
        for achieving the compelling governmental interest of assuring 
        that aliens be self-reliant in accordance with national 
        immigration policy.

              CHAPTER 1--ELIGIBILITY FOR FEDERAL BENEFITS

SEC. 4401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR FEDERAL 
              PUBLIC BENEFITS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), an alien who is not a qualified 
alien (as defined in section 4431) is not eligible for any Federal 
public benefit (as defined in subsection (c)).
    (b) Exceptions.--
            (1) Subsection (a) shall not apply with respect to the 
        following Federal public benefits:
                    (A) Emergency medical services under title XIX of 
                the Social Security Act.
                    (B) Short-term, non-cash, in-kind emergency 
                disaster relief.
                    (C) Public health assistance for immunizations with 
                respect to immunizable diseases and for testing and 
                treatment of symptoms of communicable diseases whether 
                or not such symptoms are caused by a communicable 
                disease.
                    (D) Programs, services, or assistance (such as soup 
                kitchens, crisis counseling and intervention, and 
                short-term shelter) specified by the Attorney General, 
                in the Attorney General's sole and unreviewable 
                discretion after consultation with appropriate Federal 
                agencies and departments, which (i) deliver in-kind 
                services at the community level, including through 
                public or private nonprofit agencies; (ii) do not 
                condition the provision of assistance, the amount of 
                assistance provided, or the cost of assistance provided 
                on the individual recipient's income or resources; and 
                (iii) are necessary for the protection of life or 
                safety.
                    (E) Programs for housing or community development 
                assistance or financial assistance administered by the 
                Secretary of Housing and Urban Development, any program 
                under title V of the Housing Act of 1949, or any 
                assistance under section 306C of the Consolidated Farm 
                and Rural Development Act, to the extent that the alien 
                is receiving such a benefit on the date of the 
                enactment of this Act.
            (2) Subsection (a) shall not apply to any benefit payable 
        under title II of the Social Security Act to an alien who is 
        lawfully present in the United States as determined by the 
        Attorney General, to any benefit if nonpayment of such benefit 
        would contravene an international agreement described in 
        section 233 of the Social Security Act, to any benefit if 
        nonpayment would be contrary to section 202(t) of the Social 
        Security Act, or to any benefit payable under title II of the 
        Social Security Act to which entitlement is based on an 
        application filed in or before the month in which this Act 
        becomes law.
    (c) Federal Public Benefit Defined.--
            (1) Except as provided in paragraph (2), for purposes of 
        this subtitle the term ``Federal public benefit'' means--
                    (A) any grant, contract, loan, professional 
                license, or commercial license provided by an agency of 
                the United States or by appropriated funds of the 
                United States; and
                    (B) any retirement, welfare, health, disability, 
                public or assisted housing, postsecondary education, 
                food assistance, unemployment benefit, or any other 
                similar benefit for which payments or assistance are 
                provided to an individual, household, or family 
                eligibility unit by an agency of the United States or 
                by appropriated funds of the United States.
            (2) Such term shall not apply--
                    (A) to any contract, professional license, or 
                commercial license for a nonimmigrant whose visa for 
                entry is related to such employment in the United 
                States; or
                    (B) with respect to benefits for an alien who as a 
                work authorized nonimmigrant or as an alien lawfully 
                admitted for permanent residence under the Immigration 
                and Nationality Act qualified for such benefits and for 
                whom the United States under reciprocal treaty 
                agreements is required to pay benefits, as determined 
                by the Attorney General, after consultation with the 
                Secretary of State.

SEC. 4402. LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR CERTAIN FEDERAL 
              PROGRAMS.

    (a) Limited Eligibility for Specified Federal Programs.--
            (1) In general.--Notwithstanding any other provision of law 
        and except as provided in paragraph (2), an alien who is a 
        qualified alien (as defined in section 4431) is not eligible 
        for any specified Federal program (as defined in paragraph 
        (3)).
            (2) Exceptions.--
                    (A) Time-limited exception for refugees and 
                asylees.--Paragraph (1) shall not apply to an alien 
                until 5 years after the date--
                            (i) an alien is admitted to the United 
                        States as a refugee under section 207 of the 
                        Immigration and Nationality Act;
                            (ii) an alien is granted asylum under 
                        section 208 of such Act; or
                            (iii) an alien's deportation is withheld 
                        under section 243(h) of such Act.
                    (B) Certain permanent resident aliens.--Paragraph 
                (1) shall not apply to an alien who--
                            (i) is lawfully admitted to the United 
                        States for permanent residence under the 
                        Immigration and Nationality Act; and
                            (ii)(I) has worked 40 qualifying quarters 
                        of coverage as defined under title II of the 
                        Social Security Act or can be credited with 
                        such qualifying quarters as provided under 
                        section 435, and (II) did not receive any 
                        Federal means-tested public benefit (as defined 
                        in section 4403(c)) during any such quarter.
                    (C) Veteran and active duty exception.--Paragraph 
                (1) shall not apply to an alien who is lawfully 
                residing in any State and is--
                            (i) a veteran (as defined in section 101 of 
                        title 38, United States Code) with a discharge 
                        characterized as an honorable discharge and not 
                        on account of alienage,
                            (ii) on active duty (other than active duty 
                        for training) in the Armed Forces of the United 
                        States, or
                            (iii) the spouse or unmarried dependent 
                        child of an individual described in clause (i) 
                        or (ii).
                    (D) Transition for aliens currently receiving 
                benefits.--
                            (i) SSI.--
                                    (I) In general.--With respect to 
                                the specified Federal program described 
                                in paragraph (3)(A), during the period 
                                beginning on the date of the enactment 
                                of this Act and ending on the date 
                                which is 1 year after such date of 
                                enactment, the Commissioner of Social 
                                Security shall redetermine the 
                                eligibility of any individual who is 
                                receiving benefits under such program 
                                as of the date of the enactment of this 
                                Act and whose eligibility for such 
                                benefits may terminate by reason of the 
                                provisions of this subsection.
                                    (II) Redetermination criteria.-- 
                                With respect to any redetermination 
                                under subclause (I), the Commissioner 
                                of Social Security shall apply the 
                                eligibility criteria for new applicants 
                                for benefits under such program.
                                    (III) Grandfather provision.--The 
                                provisions of this subsection and the 
                                redetermination under subclause (I), 
                                shall only apply with respect to the 
                                benefits of an individual described in 
                                subclause (I) for months beginning on 
                                or after the date of the 
                                redetermination with respect to such 
                                individual.
                                    (IV) Notice.--Not later than 
                                January 1, 1997, the Commissioner of 
                                Social Security shall notify an 
                                individual described in subclause (I) 
                                of the provisions of this clause.
                            (ii) Food stamps.--
                                    (I) In general.--With respect to 
                                the specified Federal program described 
                                in paragraph (3)(B), during the period 
                                beginning on the date of enactment of 
                                this Act and ending on the date which 
                                is 1 year after the date of enactment, 
                                the State agency shall, at the time of 
                                the recertification, recertify the 
                                eligibility of any individual who is 
                                receiving benefits under such program 
                                as of the date of enactment of this Act 
                                and whose eligibility for such benefits 
                                may terminate by reason of the 
                                provisions of this subsection.
                                    (II) Recertification criteria.--
                                With respect to any recertification 
                                under subclause (I), the State agency 
                                shall apply the eligibility criteria 
                                for applicants for benefits under such 
                                program.
                                    (III) Grandfather provision.--The 
                                provisions of this subsection and the 
                                recertification under subclause (I) 
                                shall only apply with respect to the 
                                eligibility of an alien for a program 
                                for months beginning on or after the 
                                date of recertification, if on the date 
                                of enactment of this Act the alien is 
                                lawfully residing in any State and is 
                                receiving benefits under such program 
                                on such date of enactment.
                            (iii) Medicaid.--
                                    (I) In general.--With respect to 
                                the specified Federal program described 
                                in paragraph (3)(C), during the period 
                                beginning on the date of enactment of 
                                this Act and ending on the date which 
                                is 1 year after the date of enactment, 
                                the State agency shall, at the time of 
                                the redetermination, redetermine the 
                                eligibility of any individual who is 
                                receiving benefits under such program 
                                as of the date of enactment of this Act 
                                and whose eligibility for such benefits 
                                may terminate by reason of the 
                                provisions of this subsection.
                                    (II) Redetermination.--With respect 
                                to any redetermination under subclause 
                                (I), the State agency shall apply the 
                                eligibility criteria for applicants for 
                                benefits under such program.
                                    (III) Grandfather provision.--The 
                                provisions of this subsection and the 
                                redetermination under subclause (I) 
                                shall only apply with respect to the 
                                eligibility of an alien for a program 
                                for months beginning on or after the 
                                date of redetermination, if on the date 
                                of enactment of this Act the alien is 
                                lawfully residing in any State and is 
                                receiving benefits under such program 
                                on such date of enactment.
            (3) Specified federal program defined.--For purposes of 
        this subtitle, the term ``specified Federal program'' means any 
        of the following:
                    (A) SSI.--The supplemental security income program 
                under title XVI of the Social Security Act, including 
                supplementary payments pursuant to an agreement for 
                Federal administration under section 1616(a) of the 
                Social Security Act and payments pursuant to an 
                agreement entered into under section 212(b) of Public 
                Law 93-66.
                    (B) Food stamps.--The food stamp program as defined 
                in section 3(h) of the Food Stamp Act of 1977.
                    (C) Medicaid.--A State plan approved under title 
                XIX of the Social Security Act.
    (b) Limited Eligibility for Designated Federal Programs.--
            (1) In general.--Notwithstanding any other provision of law 
        and except as provided in section 4403 and paragraph (2), a 
        State is authorized to determine the eligibility of an alien 
        who is a qualified alien (as defined in section 4431) for any 
        designated Federal program (as defined in paragraph (3)).
            (2) Exceptions.--Qualified aliens under this paragraph 
        shall be eligible for any designated Federal program.
                    (A) Time-limited exception for refugees and 
                asylees.--
                            (i) An alien who is admitted to the United 
                        States as a refugee under section 207 of the 
                        Immigration and Nationality Act until 5 years 
                        after the date of an alien's entry into the 
                        United States.
                            (ii) An alien who is granted asylum under 
                        section 208 of such Act until 5 years after the 
                        date of such grant of asylum.
                            (iii) An alien whose deportation is being 
                        withheld under section 243(h) of such Act until 
                        5 years after such withholding.
                    (B) Certain permanent resident aliens.--An alien 
                who--
                            (i) is lawfully admitted to the United 
                        States for permanent residence under the 
                        Immigration and Nationality Act; and
                            (ii)(I) has worked 40 qualifying quarters 
                        of coverage as defined under title II of the 
                        Social Security Act or can be credited with 
                        such qualifying quarters as provided under 
                        section 4435, and (II) did not receive any 
                        Federal means-tested public benefit (as defined 
                        in section 4403(c)) during any such quarter.
                    (C) Veteran and active duty exception.--An alien 
                who is lawfully residing in any State and is--
                            (i) a veteran (as defined in section 101 of 
                        title 38, United States Code) with a discharge 
                        characterized as an honorable discharge and not 
                        on account of alienage,
                            (ii) on active duty (other than active duty 
                        for training) in the Armed Forces of the United 
                        States, or
                            (iii) the spouse or unmarried dependent 
                        child of an individual described in clause (i) 
                        or (ii).
                    (D) Transition for those currently receiving 
                benefits.--An alien who on the date of the enactment of 
                this Act is lawfully residing in any State and is 
                receiving benefits under such program on the date of 
                the enactment of this Act shall continue to be eligible 
                to receive such benefits until January 1, 1997.
            (3) Designated federal program defined.--For purposes of 
        this subtitle, the term ``designated Federal program'' means 
        any of the following:
                    (A) Temporary assistance for needy families.--The 
                program of block grants to States for temporary 
                assistance for needy families under part A of title IV 
                of the Social Security Act.
                    (B) Social services block grant.--The program of 
                block grants to States for social services under title 
                XX of the Social Security Act.

SEC. 4403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR 
              FEDERAL MEANS-TESTED PUBLIC BENEFIT.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), an alien who is a qualified alien 
(as defined in section 4431) and who enters the United States on or 
after the date of the enactment of this Act is not eligible for any 
Federal means-tested public benefit (as defined in subsection (c)) for 
a period of five years beginning on the date of the alien's entry into 
the United States with a status within the meaning of the term 
``qualified alien''.
    (b) Exceptions.--The limitation under subsection (a) shall not 
apply to the following aliens:
            (1) Exception for refugees and asylees.--
                    (A) An alien who is admitted to the United States 
                as a refugee under section 207 of the Immigration and 
                Nationality Act.
                    (B) An alien who is granted asylum under section 
                208 of such Act.
                    (C) An alien whose deportation is being withheld 
                under section 243(h) of such Act.
            (2) Veteran and active duty exception.--An alien who is 
        lawfully residing in any State and is--
                    (A) a veteran (as defined in section 101 of title 
                38, United States Code) with a discharge characterized 
                as an honorable discharge and not on account of 
                alienage,
                    (B) on active duty (other than active duty for 
                training) in the Armed Forces of the United States, or
                    (C) the spouse or unmarried dependent child of an 
                individual described in subparagraph (A) or (B).
    (c) Federal Means-tested Public Benefit Defined.--
            (1) Except as provided in paragraph (2), for purposes of 
        this subtitle, the term ``Federal means-tested public benefit'' 
        means a public benefit (including cash, medical, housing, and 
        food assistance and social services) of the Federal Government 
        in which the eligibility of an individual, household, or family 
        eligibility unit for benefits, or the amount of such benefits, 
        or both are determined on the basis of income, resources, or 
        financial need of the individual, household, or unit.
            (2) Such term does not include the following:
                    (A) Emergency medical services under title XIX of 
                the Social Security Act.
                    (B) Short-term, non-cash, in-kind emergency 
                disaster relief.
                    (C) Assistance or benefits under the National 
                School Lunch Act.
                    (D) Assistance or benefits under the Child 
                Nutrition Act of 1966.
                    (E) Public health assistance for immunizations with 
                respect to immunizable diseases and for testing and 
                treatment of symptoms of communicable diseases whether 
                or not such symptoms are caused by a communicable 
                disease.
                    (F) Payments for foster care and adoption 
                assistance under parts B and E of title IV of the 
                Social Security Act for a child who would, in the 
                absence of subsection (a), be eligible to have such 
                payments made on the child's behalf under such part, 
                but only if the foster or adoptive parent or parents of 
                such child are not described under subsection (a).
                    (G) Programs, services, or assistance (such as soup 
                kitchens, crisis counseling and intervention, and 
                short-term shelter) specified by the Attorney General, 
                in the Attorney General's sole and unreviewable 
                discretion after consultation with appropriate Federal 
                agencies and departments, which (i) deliver in-kind 
                services at the community level, including through 
                public or private nonprofit agencies; (ii) do not 
                condition the provision of assistance, the amount of 
                assistance provided, or the cost of assistance provided 
                on the individual recipient's income or resources; and 
                (iii) are necessary for the protection of life or 
                safety.
                    (H) Programs of student assistance under titles IV, 
                V, IX, and X of the Higher Education Act of 1965.
                    (I) Means-tested programs under the Elementary and 
                Secondary Education Act of 1965.
                    (J) Benefits under the Head Start Act.
                    (K) Benefits under the Job Training Partnership 
                Act.

SEC. 4404. NOTIFICATION AND INFORMATION REPORTING.

    (a) Notification.--Each Federal agency that administers a program 
to which section 4401, 4402, or 4403 applies shall, directly or through 
the States, post information and provide general notification to the 
public and to program recipients of the changes regarding eligibility 
for any such program pursuant to this chapter.
    (b) Information Reporting Under Title IV of the Social Security 
Act.--Part A of title IV of the Social Security Act, as amended by 
section 4103(a) of this Act, is amended by inserting the following new 
section after section 411:

``SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFORMATION.

    ``Each State to which a grant is made under section 403 shall, at 
least 4 times annually and upon request of the Immigration and 
Naturalization Service, furnish the Immigration and Naturalization 
Service with the name and address of, and other identifying information 
on, any individual who the State knows is unlawfully in the United 
States.''.
    (c) SSI.--Section 1631(e) of such Act (42 U.S.C. 1383(e)) is 
amended--
            (1) by redesignating the paragraphs (6) and (7) inserted by 
        sections 206(d)(2) and 206(f)(1) of the Social Security 
        Independence and Programs Improvement Act of 1994 (Public Law 
103-296; 108 Stat. 1514, 1515) as paragraphs (7) and (8), respectively; 
and
            (2) by adding at the end the following new paragraph:
    ``(9) Notwithstanding any other provision of law, the Commissioner 
shall, at least 4 times annually and upon request of the Immigration 
and Naturalization Service (hereafter in this paragraph referred to as 
the `Service'), furnish the Service with the name and address of, and 
other identifying information on, any individual who the Commissioner 
knows is unlawfully in the United States, and shall ensure that each 
agreement entered into under section 1616(a) with a State provides that 
the State shall furnish such information at such times with respect to 
any individual who the State knows is unlawfully in the United 
States.''.
    (d) Information Reporting for Housing Programs.--Title I of the 
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended 
by adding at the end the following new section:

``SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND OTHER 
              AGENCIES.

    ``Notwithstanding any other provision of law, the Secretary shall, 
at least 4 times annually and upon request of the Immigration and 
Naturalization Service (hereafter in this section referred to as the 
`Service'), furnish the Service with the name and address of, and other 
identifying information on, any individual who the Secretary knows is 
unlawfully in the United States, and shall ensure that each contract 
for assistance entered into under section 6 or 8 of this Act with a 
public housing agency provides that the public housing agency shall 
furnish such information at such times with respect to any individual 
who the public housing agency knows is unlawfully in the United 
States.''.

  CHAPTER 2--ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS PROGRAMS

SEC. 4411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR NONIMMIGRANTS 
              INELIGIBLE FOR STATE AND LOCAL PUBLIC BENEFITS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsections (b) and (d), an alien who is not--
            (1) a qualified alien (as defined in section 4431),
            (2) a nonimmigrant under the Immigration and Nationality 
        Act, or
            (3) an alien who is paroled into the United States under 
        section 212(d)(5) of such Act for less than one year,
is not eligible for any State or local public benefit (as defined in 
subsection (c)).
    (b) Exceptions.--Subsection (a) shall not apply with respect to the 
following State or local public benefits:
            (1) Emergency medical services under title XIX of the 
        Social Security Act.
            (2) Short-term, non-cash, in-kind emergency disaster 
        relief.
            (3) Public health assistance for immunizations with respect 
        to immunizable diseases and for testing and treatment of 
        symptoms of communicable diseases whether or not such symptoms 
        are caused by a communicable disease.
            (4) Programs, services, or assistance (such as soup 
        kitchens, crisis counseling and intervention, and short-term 
        shelter) specified by the Attorney General, in the Attorney 
        General's sole and unreviewable discretion after consultation 
        with appropriate Federal agencies and departments, which (A) 
        deliver in-kind services at the community level, including 
        through public or private nonprofit agencies; (B) do not 
        condition the provision of assistance, the amount of assistance 
        provided, or the cost of assistance provided on the individual 
        recipient's income or resources; and (C) are necessary for the 
        protection of life or safety.
    (c) State or Local Public Benefit Defined.--
            (1) Except as provided in paragraph (2), for purposes of 
        this chapter the term ``State or local public benefit'' means--
                    (A) any grant, contract, loan, professional 
                license, or commercial license provided by an agency of 
                a State or local government or by appropriated funds of 
                a State or local government; and
                    (B) any retirement, welfare, health, disability, 
                public or assisted housing, postsecondary education, 
                food assistance, unemployment benefit, or any other 
                similar benefit for which payments or assistance are 
                provided to an individual, household, or family 
                eligibility unit by an agency of a State or local 
                government or by appropriated funds of a State or local 
                government.
            (2) Such term shall not apply--
                    (A) to any contract, professional license, or 
                commercial license for a nonimmigrant whose visa for 
                entry is related to such employment in the United 
                States; or
                    (B) with respect to benefits for an alien who as a 
                work authorized nonimmigrant or as an alien lawfully 
                admitted for permanent residence under the Immigration 
                and Nationality Act qualified for such benefits and for 
                whom the United States under reciprocal treaty 
                agreements is required to pay benefits, as determined 
                by the Secretary of State, after consultation with the 
                Attorney General.
    (d) State Authority to Provide for Eligibility of Illegal Aliens 
for State and Local Public Benefits.--A State may provide that an alien 
who is not lawfully present in the United States is eligible for any 
State or local public benefit for which such alien would otherwise be 
ineligible under subsection (a) only through the enactment of a State 
law after the date of the enactment of this Act which affirmatively 
provides for such eligibility.

SEC. 4412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF QUALIFIED ALIENS FOR 
              STATE PUBLIC BENEFITS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), a State is authorized to 
determine the eligibility for any State public benefits (as defined in 
subsection (c) of an alien who is a qualified alien (as defined in 
section 4431), a nonimmigrant under the Immigration and Nationality 
Act, or an alien who is paroled into the United States under section 
212(d)(5) of such Act for less than one year.
    (b) Exceptions.--Qualified aliens under this subsection shall be 
eligible for any State public benefits.
            (1) Time-limited exception for refugees and asylees.--
                    (A) An alien who is admitted to the United States 
                as a refugee under section 207 of the Immigration and 
                Nationality Act until 5 years after the date of an 
                alien's entry into the United States.
                    (B) An alien who is granted asylum under section 
                208 of such Act until 5 years after the date of such 
                grant of asylum.
                    (C) An alien whose deportation is being withheld 
                under section 243(h) of such Act until 5 years after 
                such withholding.
            (2) Certain permanent resident aliens.--An alien who--
                    (A) is lawfully admitted to the United States for 
                permanent residence under the Immigration and 
                Nationality Act; and
                    (B)(i) has worked 40 qualifying quarters of 
                coverage as defined under title II of the Social 
                Security Act or can be credited with such qualifying 
                quarters as provided under section 4435, and (ii) did 
                not receive any Federal means-tested public benefit (as 
                defined in section 4403(c)) during any such quarter.
            (3) Veteran and active duty exception.--An alien who is 
        lawfully residing in any State and is--
                    (A) a veteran (as defined in section 101 of title 
                38, United States Code) with a discharge characterized 
                as an honorable discharge and not on account of 
                alienage,
                    (B) on active duty (other than active duty for 
                training) in the Armed Forces of the United States, or
                    (C) the spouse or unmarried dependent child of an 
                individual described in subparagraph (A) or (B).
            (4) Transition for those currently receiving benefits.--An 
        alien who on the date of the enactment of this Act is lawfully 
        residing in any State and is receiving benefits on the date of 
        the enactment of this Act shall continue to be eligible to 
        receive such benefits until January 1, 1997.
    (c) State Public Benefits Defined.--The term ``State public 
benefits'' means any means-tested public benefit of a State or 
political subdivision of a State under which the State or political 
subdivision specifies the standards for eligibility, and does not 
include any Federal public benefit.

       CHAPTER 3--ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT

SEC. 4421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES TO 
              ALIEN.

    (a) In General.--Notwithstanding any other provision of law, in 
determining the eligibility and the amount of benefits of an alien for 
any Federal means-tested public benefits program (as defined in section 
4403(c)), the income and resources of the alien shall be deemed to 
include the following:
            (1) The income and resources of any person who executed an 
        affidavit of support pursuant to section 213A of the 
        Immigration and Nationality Act (as added by section 4423) on 
        behalf of such alien.
            (2) The income and resources of the spouse (if any) of the 
        person.
    (b) Application.--Subsection (a) shall apply with respect to an 
alien until such time as the alien--
            (1) achieves United States citizenship through 
        naturalization pursuant to chapter 2 of title III of the 
        Immigration and Nationality Act; or
            (2)(A) has worked 40 qualifying quarters of coverage as 
        defined under title II of the Social Security Act or can be 
        credited with such qualifying quarters as provided under 
        section 4435, and (B) did not receive any Federal means-tested 
        public benefit (as defined in section 4403(c)) during any such 
        quarter.
    (c) Review of Income and Resources of Alien Upon Reapplication.--
Whenever an alien is required to reapply for benefits under any Federal 
means-tested public benefits program, the applicable agency shall 
review the income and resources attributed to the alien under 
subsection (a).
    (d) Application.--
            (1) If on the date of the enactment of this Act, a Federal 
        means-tested public benefits program attributes a sponsor's 
        income and resources to an alien in determining the alien's 
        eligibility and the amount of benefits for an alien, this 
        section shall apply to any such determination beginning on the 
        day after the date of the enactment of this Act.
            (2) If on the date of the enactment of this Act, a Federal 
        means-tested public benefits program does not attribute a 
        sponsor's income and resources to an alien in determining the 
        alien's eligibility and the amount of benefits for an alien, 
        this section shall apply to any such determination beginning 
        180 days after the date of the enactment of this Act.

SEC. 4422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF SPONSORS 
              INCOME AND RESOURCES TO THE ALIEN WITH RESPECT TO STATE 
              PROGRAMS.

    (a) Optional Application to State Programs.--Except as provided in 
subsection (b), in determining the eligibility and the amount of 
benefits of an alien for any State public benefits (as defined in 
section 4412(c)), the State or political subdivision that offers the 
benefits is authorized to provide that the income and resources of the 
alien shall be deemed to include--
            (1) the income and resources of any individual who executed 
        an affidavit of support pursuant to section 213A of the 
        Immigration and Nationality Act (as added by section 4423) on 
        behalf of such alien, and
            (2) the income and resources of the spouse (if any) of the 
        individual.
    (b) Exceptions.--Subsection (a) shall not apply with respect to the 
following State public benefits:
            (1) Emergency medical services.
            (2) Short-term, non-cash, in-kind emergency disaster 
        relief.
            (3) Programs comparable to assistance or benefits under the 
        National School Lunch Act.
            (4) Programs comparable to assistance or benefits under the 
        Child Nutrition Act of 1966.
            (5) Public health assistance for immunizations with respect 
        to immunizable diseases and for testing and treatment of 
        symptoms of communicable diseases whether or not such symptoms 
        are caused by a communicable disease.
            (6) Payments for foster care and adoption assistance.
            (7) Programs, services, or assistance (such as soup 
        kitchens, crisis counseling and intervention, and short-term 
        shelter) specified by the Attorney General of a State, after 
        consultation with appropriate agencies and departments, which 
        (A) deliver in-kind services at the community level, including 
        through public or private nonprofit agencies; (B) do not 
        condition the provision of assistance, the amount of assistance 
        provided, or the cost of assistance provided on the individual 
        recipient's income or resources; and (C) are necessary for the 
        protection of life or safety.

SEC. 4423. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.

    (a) In General.--Title II of the Immigration and Nationality Act is 
amended by inserting after section 213 the following new section:

           ``requirements for sponsor's affidavit of support

    ``Sec. 213A. (a) Enforceability.--(1) No affidavit of support may 
be accepted by the Attorney General or by any consular officer to 
establish that an alien is not excludable as a public charge under 
section 212(a)(4) unless such affidavit is executed as a contract--
            ``(A) which is legally enforceable against the sponsor by 
        the sponsored alien, the Federal Government, and by any State 
        (or any political subdivision of such State) which provides any 
        means-tested public benefits program, but not later than 10 
        years after the alien last receives any such benefit;
            ``(B) in which the sponsor agrees to financially support 
        the alien, so that the alien will not become a public charge; 
        and
            ``(C) in which the sponsor agrees to submit to the 
        jurisdiction of any Federal or State court for the purpose of 
        actions brought under subsection (e)(2).
    ``(2) A contract under paragraph (1) shall be enforceable with 
respect to benefits provided to the alien until such time as the alien 
achieves United States citizenship through naturalization pursuant to 
chapter 2 of title III.
    ``(b) Forms.--Not later than 90 days after the date of enactment of 
this section, the Attorney General, in consultation with the Secretary 
of State and the Secretary of Health and Human Services, shall 
formulate an affidavit of support consistent with the provisions of 
this section.
    ``(c) Remedies.--Remedies available to enforce an affidavit of 
support under this section include any or all of the remedies described 
in section 3201, 3203, 3204, or 3205 of title 28, United States Code, 
as well as an order for specific performance and payment of legal fees 
and other costs of collection, and include corresponding remedies 
available under State law. A Federal agency may seek to collect amounts 
owed under this section in accordance with the provisions of subchapter 
II of chapter 37 of title 31, United States Code.
    ``(d) Notification of Change of Address.--
            ``(1) In general.--The sponsor shall notify the Attorney 
        General and the State in which the sponsored alien is currently 
        resident within 30 days of any change of address of the sponsor 
        during the period specified in subsection (a)(2).
            ``(2) Penalty.--Any person subject to the requirement of 
        paragraph (1) who fails to satisfy such requirement shall be 
        subject to a civil penalty of--
                    ``(A) not less than $250 or more than $2,000, or
                    ``(B) if such failure occurs with knowledge that 
                the alien has received any means-tested public benefit, 
                not less than $2,000 or more than $5,000.
    ``(e) Reimbursement of Government Expenses.--(1)(A) Upon 
notification that a sponsored alien has received any benefit under any 
means-tested public benefits program, the appropriate Federal, State, 
or local official shall request reimbursement by the sponsor in the 
amount of such assistance.
    ``(B) The Attorney General, in consultation with the Secretary of 
Health and Human Services, shall prescribe such regulations as may be 
necessary to carry out subparagraph (A).
    ``(2) If within 45 days after requesting reimbursement, the 
appropriate Federal, State, or local agency has not received a response 
from the sponsor indicating a willingness to commence payments, an 
action may be brought against the sponsor pursuant to the affidavit of 
support.
    ``(3) If the sponsor fails to abide by the repayment terms 
established by such agency, the agency may, within 60 days of such 
failure, bring an action against the sponsor pursuant to the affidavit 
of support.
    ``(4) No cause of action may be brought under this subsection later 
than 10 years after the alien last received any benefit under any 
means-tested public benefits program.
    ``(5) If, pursuant to the terms of this subsection, a Federal, 
State, or local agency requests reimbursement from the sponsor in the 
amount of assistance provided, or brings an action against the sponsor 
pursuant to the affidavit of support, the appropriate agency may 
appoint or hire an individual or other person to act on behalf of such 
agency acting under the authority of law for purposes of collecting any 
moneys owed. Nothing in this subsection shall preclude any appropriate 
Federal, State, or local agency from directly requesting reimbursement 
from a sponsor for the amount of assistance provided, or from bringing 
an action against a sponsor pursuant to an affidavit of support.
    ``(f) Definitions.--For the purposes of this section--
            ``(1) Sponsor.--The term `sponsor' means an individual 
        who--
                    ``(A) is a citizen or national of the United States 
                or an alien who is lawfully admitted to the United 
                States for permanent residence;
                    ``(B) is 18 years of age or over;
                    ``(C) is domiciled in any of the 50 States or the 
                District of Columbia; and
                    ``(D) is the person petitioning for the admission 
                of the alien under section 204.
            ``(2) Means-tested public benefits program.--The term 
        `means-tested public benefits program' means a program of 
        public benefits (including cash, medical, housing, and food 
        assistance and social services) of the Federal Government or of 
        a State or political subdivision of a State in which the 
        eligibility of an individual, household, or family eligibility 
        unit for benefits under the program, or the amount of such 
        benefits, or both are determined on the basis of income, 
        resources, or financial need of the individual, household, or 
        unit.''.
    (b) Clerical Amendment.--The table of contents of such Act is 
amended by inserting after the item relating to section 213 the 
following:

``Sec. 213A. Requirements for sponsor's affidavit of support.''.
    (c) Effective Date.--Subsection (a) of section 213A of the 
Immigration and Nationality Act, as inserted by subsection (a) of this 
section, shall apply to affidavits of support executed on or after a 
date specified by the Attorney General, which date shall be not earlier 
than 60 days (and not later than 90 days) after the date the Attorney 
General formulates the form for such affidavits under subsection (b) of 
such section.
    (d) Benefits Not Subject to Reimbursement.--Requirements for 
reimbursement by a sponsor for benefits provided to a sponsored alien 
pursuant to an affidavit of support under section 213A of the 
Immigration and Nationality Act shall not apply with respect to the 
following:
            (1) Emergency medical services under title XIX of the 
        Social Security Act.
            (2) Short-term, non-cash, in-kind emergency disaster 
        relief.
            (3) Assistance or benefits under the National School Lunch 
        Act.
            (4) Assistance or benefits under the Child Nutrition Act of 
        1966.
            (5) Public health assistance for immunizations with respect 
        to immunizable diseases and for testing and treatment of 
        symptoms of communicable diseases whether or not such symptoms 
        are caused by a communicable disease.
            (6) Payments for foster care and adoption assistance under 
        part B of title IV of the Social Security Act for a child, but 
        only if the foster or adoptive parent or parents of such child 
        are not otherwise ineligible pursuant to section 4403 of this 
        Act.
            (7) Programs, services, or assistance (such as soup 
        kitchens, crisis counseling and intervention, and short-term 
        shelter) specified by the Attorney General, in the Attorney 
        General's sole and unreviewable discretion after consultation 
        with appropriate Federal agencies and departments, which (A) 
        deliver in-kind services at the community level, including 
        through public or private nonprofit agencies; (B) do not 
        condition the provision of assistance, the amount of assistance 
        provided, or the cost of assistance provided on the individual 
        recipient's income or resources; and (C) are necessary for the 
        protection of life or safety.
            (8) Programs of student assistance under titles IV, V, IX, 
        and X of the Higher Education Act of 1965.
            (9) Benefits under the Head Start Act.
            (10) Means-tested programs under the Elementary and 
        Secondary Education Act of 1965.
            (11) Benefits under the Job Training Partnership Act.

                     CHAPTER 4--GENERAL PROVISIONS

SEC. 4431. DEFINITIONS.

    (a) In General.--Except as otherwise provided in this subtitle, the 
terms used in this subtitle have the same meaning given such terms in 
section 101(a) of the Immigration and Nationality Act.
    (b) Qualified Alien.--For purposes of this subtitle, the term 
``qualified alien'' means an alien who, at the time the alien applies 
for, receives, or attempts to receive a Federal public benefit, is--
            (1) an alien who is lawfully admitted for permanent 
        residence under the Immigration and Nationality Act,
            (2) an alien who is granted asylum under section 208 of 
        such Act,
            (3) a refugee who is admitted to the United States under 
        section 207 of such Act,
            (4) an alien who is paroled into the United States under 
        section 212(d)(5) of such Act for a period of at least 1 year,
            (5) an alien whose deportation is being withheld under 
        section 243(h) of such Act, or
            (6) an alien who is granted conditional entry pursuant to 
        section 203(a)(7) of such Act as in effect prior to April 1, 
        1980.

SEC. 4432. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC BENEFITS.

    (a) In General.--Not later than 18 months after the date of the 
enactment of this Act, the Attorney General of the United States, after 
consultation with the Secretary of Health and Human Services, shall 
promulgate regulations requiring verification that a person applying 
for a Federal public benefit (as defined in section 4401(c)), to which 
the limitation under section 4401 applies, is a qualified alien and is 
eligible to receive such benefit. Such regulations shall, to the extent 
feasible, require that information requested and exchanged be similar 
in form and manner to information requested and exchanged under section 
1137 of the Social Security Act.
    (b) State Compliance.--Not later than 24 months after the date the 
regulations described in subsection (a) are adopted, a State that 
administers a program that provides a Federal public benefit shall have 
in effect a verification system that complies with the regulations.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purpose of 
this section.

SEC. 4433. STATUTORY CONSTRUCTION.

    (a) Limitation.--
            (1) Nothing in this subtitle may be construed as an 
        entitlement or a determination of an individual's eligibility 
        or fulfillment of the requisite requirements for any Federal, 
        State, or local governmental program, assistance, or benefits. 
        For purposes of this subtitle, eligibility relates only to the 
        general issue of eligibility or ineligibility on the basis of 
        alienage.
            (2) Nothing in this subtitle may be construed as addressing 
        alien eligibility for a basic public education as determined by 
        the Supreme Court of the United States under Plyler v. Doe (457 
        U.S. 202)(1982).
    (b) Not Applicable to Foreign Assistance.--This subtitle does not 
apply to any Federal, State, or local governmental program, assistance, 
or benefits provided to an alien under any program of foreign 
assistance as determined by the Secretary of State in consultation with 
the Attorney General.
    (c) Severability.--If any provision of this subtitle or the 
application of such provision to any person or circumstance is held to 
be unconstitutional, the remainder of this subtitle and the application 
of the provisions of such to any person or circumstance shall not be 
affected thereby.

SEC. 4434. COMMUNICATION BETWEEN STATE AND LOCAL GOVERNMENT AGENCIES 
              AND THE IMMIGRATION AND NATURALIZATION SERVICE.

    Notwithstanding any other provision of Federal, State, or local 
law, no State or local government entity may be prohibited, or in any 
way restricted, from sending to or receiving from the Immigration and 
Naturalization Service information regarding the immigration status, 
lawful or unlawful, of an alien in the United States.

SEC. 4435. QUALIFYING QUARTERS.

    For purposes of this subtitle, in determining the number of 
qualifying quarters of coverage under title II of the Social Security 
Act an alien shall be credited with--
            (1) all of the qualifying quarters of coverage as defined 
        under title II of the Social Security Act worked by a parent of 
        such alien while the alien was under age 18 if the parent did 
        not receive any Federal means-tested public benefit (as defined 
        in section 4403(c)) during any such quarter, and
            (2) all of the qualifying quarters worked by a spouse of 
        such alien during their marriage if the spouse did not receive 
        any Federal means-tested public benefit (as defined in section 
        4403(c)) during any such quarter and the alien remains married 
        to such spouse or such spouse is deceased.

     CHAPTER 5--CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING

SEC. 4441. CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING.

    (a) Limitations on Assistance.--Section 214 of the Housing and 
Community Development Act of 1980 (42 U.S.C. 1436a) is amended--
            (1) by striking ``Secretary of Housing and Urban 
        Development'' each place it appears and inserting ``applicable 
        Secretary'';
            (2) in subsection (b), by inserting after ``National 
        Housing Act,'' the following: ``the direct loan program under 
        section 502 of the Housing Act of 1949 or section 502(c)(5)(D), 
        504, 521(a)(2)(A), or 542 of such Act, subtitle A of title III 
        of the Cranston-Gonzalez National Affordable Housing Act,'';
            (3) in paragraphs (2) through (6) of subsection (d), by 
        striking ``Secretary'' each place it appears and inserting 
        ``applicable Secretary'';
            (4) in subsection (d), in the matter following paragraph 
        (6), by striking ``the term `Secretary''' and inserting ``the 
        term `applicable Secretary'''; and
            (5) by adding at the end the following new subsection:
    ``(h) For purposes of this section, the term `applicable Secretary' 
means--
            ``(1) the Secretary of Housing and Urban Development, with 
        respect to financial assistance administered by such Secretary 
        and financial assistance under subtitle A of title III of the 
        Cranston-Gonzalez National Affordable Housing Act; and
            ``(2) the Secretary of Agriculture, with respect to 
        financial assistance administered by such Secretary.''.
    (b) Conforming Amendments.--Section 501(h) of the Housing Act of 
1949 (42 U.S.C. 1471(h)) is amended--
            (1) by striking ``(1)'';
            (2) by striking ``by the Secretary of Housing and Urban 
        Development''; and
            (3) by striking paragraph (2).

    CHAPTER 6--EARNED INCOME CREDIT DENIED TO UNAUTHORIZED EMPLOYEES

SEC. 4451. EARNED INCOME CREDIT DENIED TO INDIVIDUALS NOT AUTHORIZED TO 
              BE EMPLOYED IN THE UNITED STATES.

    (a) In General.--Section 32(c)(1) of the Internal Revenue Code of 
1986 (relating to individuals eligible to claim the earned income 
credit) is amended by adding at the end the following new subparagraph:
                    ``(F) Identification number requirement.--The term 
                `eligible individual' does not include any individual 
                who does not include on the return of tax for the 
                taxable year--
                            ``(i) such individual's taxpayer 
                        identification number, and
                            ``(ii) if the individual is married (within 
                        the meaning of section 7703), the taxpayer 
                        identification number of such individual's 
                        spouse.''.
    (b) Special Identification Number.--Section 32 of such Code is 
amended by adding at the end the following new subsection:
    ``(l) Identification Numbers.--Solely for purposes of subsections 
(c)(1)(F) and (c)(3)(D), a taxpayer identification number means a 
social security number issued to an individual by the Social Security 
Administration (other than a social security number issued pursuant to 
clause (II) (or that portion of clause (III) that relates to clause 
(II)) of section 205(c)(2)(B)(i) of the Social Security Act).''.
    (c) Extension of Procedures Applicable to Mathematical or Clerical 
Errors.--Section 6213(g)(2) of such Code (relating to the definition of 
mathematical or clerical errors) is amended by striking ``and' at the 
end of subparagraph (D), by striking the period at the end of 
subparagraph (E) and inserting a comma, and by inserting after 
subparagraph (E) the following new subparagraphs:
                    ``(F) an omission of a correct taxpayer 
                identification number required under section 32 
                (relating to the earned income tax credit) to be 
                included on a return, and
                    ``(G) an entry on a return claiming the credit 
                under section 32 with respect to net earnings from 
                self-employment described in section 32(c)(2)(A) to the 
                extent the tax imposed by section 1401 (relating to 
                self-employment tax) on such net earnings has not been 
                paid.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

                  Subtitle E--Reform of Public Housing

SEC. 4601. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC ASSISTANCE 
              PROGRAMS.

    (a) In General.--If an individual's benefits under a Federal, 
State, or local law relating to a means-tested welfare or a public 
assistance program are reduced because of an act of fraud by the 
individual under the law or program, the individual may not, for the 
duration of the reduction, receive an increased benefit under any other 
means-tested welfare or public assistance program for which Federal 
funds are appropriated as a result of a decrease in the income of the 
individual (determined under the applicable program) attributable to 
such reduction.
    (b) Welfare or Public Assistance Programs for Which Federal Funds 
Are Appropriated.--For purposes of subsection (a), the term ``means-
tested welfare or public assistance program for which Federal funds are 
appropriated'' includes the food stamp program under the Food Stamp Act 
of 1977 (7 U.S.C. 2011 et seq.), any program of public or assisted 
housing under title I of the United States Housing Act of 1937 (42 
U.S.C. 1437 et seq.), and State programs funded under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et seq.).

  Subtitle F--Child Protection Block Grant Programs and Foster Care, 
          Adoption Assistance, and Independent Living Programs

   CHAPTER 1--CHILD PROTECTION BLOCK GRANT PROGRAM AND FOSTER CARE, 
          ADOPTION ASSISTANCE, AND INDEPENDENT LIVING PROGRAMS

  Subchapter A--Block Grants to States for the Protection of Children

SEC. 4701. ESTABLISHMENT OF PROGRAM.

    Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is 
amended by striking part B and inserting the following:

    ``PART B--BLOCK GRANTS TO STATES FOR THE PROTECTION OF CHILDREN

``SEC. 421. PURPOSE.

    ``The purpose of this part is to enable eligible States to carry 
out a child protection program to--
            ``(1) identify and assist families at risk of abusing or 
        neglecting their children;
            ``(2) operate a system for receiving reports of abuse or 
        neglect of children;
            ``(3) improve the intake, assessment, screening, and 
        investigation of reports of abuse and neglect;
            ``(4) enhance the general child protective system by 
        improving risk and safety assessment tools and protocols;
            ``(5) improve legal preparation and representation, 
        including procedures for appealing and responding to appeals of 
        substantiated reports of abuse and neglect;
            ``(6) provide support, treatment, and family preservation 
        services to families which are, or are at risk of, abusing or 
        neglecting their children;
            ``(7) support children who must be removed from or who 
        cannot live with their families;
            ``(8) make timely decisions about permanent living 
        arrangements for children who must be removed from or who 
        cannot live with their families;
            ``(9) provide for continuing evaluation and improvement of 
        child protection laws, regulations, and services;
            ``(10) develop and facilitate training protocols for 
        individuals mandated to report child abuse or neglect; and
            ``(11) develop and enhance the capacity of community-based 
        programs to integrate shared leadership strategies between 
        parents and professionals to prevent and treat child abuse and 
        neglect at the neighborhood level.

``SEC. 422. ELIGIBLE STATES.

    ``(a) In General.--As used in this part, the term `eligible State' 
means a State that has submitted to the Secretary, not later than 
October 1, 1996, and every 3 years thereafter, a plan which has been 
signed by the chief executive officer of the State and that includes 
the following:
            ``(1) Outline of child protection program.--A written 
        document that outlines the activities the State intends to 
        conduct to achieve the purpose of this part, including the 
        procedures to be used for--
                    ``(A) receiving and assessing reports of child 
                abuse or neglect;
                    ``(B) investigating such reports;
                    ``(C) with respect to families in which abuse or 
                neglect has been confirmed, providing services or 
                referral for services for families and children where 
                the State makes a determination that the child may 
                safely remain with the family;
                    ``(D) protecting children by removing them from 
                dangerous settings and ensuring their placement in a 
                safe environment;
                    ``(E) providing training for individuals mandated 
                to report suspected cases of child abuse or neglect;
                    ``(F) protecting children in foster care;
                    ``(G) promoting timely adoptions;
                    ``(H) protecting the rights of families, using 
                adult relatives as the preferred placement for children 
                separated from their parents where such relatives meet 
                the relevant State child protection standards; and
                    ``(I) providing services to individuals, families, 
                or communities, either directly or through referral, 
                that are aimed at preventing the occurrence of child 
                abuse and neglect.
            ``(2) Certification of state law requiring the reporting of 
        child abuse and neglect.--A certification that the State has in 
        effect laws that require public officials and other 
        professionals to report, in good faith, actual or suspected 
        instances of child abuse or neglect.
            ``(3) Certification of procedures for screening, safety 
        assessment, and prompt investigation.--A certification that the 
        State has in effect procedures for receiving and responding to 
        reports of child abuse or neglect, including the reports 
        described in paragraph (2), and for the immediate screening, 
        safety assessment, and prompt investigation of such reports.
            ``(4) Certification of state procedures for removal and 
        placement of abused or neglected children.--A certification 
        that the State has in effect procedures for the removal from 
        families and placement of abused or neglected children and of 
        any other child in the same household who may also be in danger 
        of abuse or neglect.
            ``(5) Certification of provisions for immunity from 
        prosecution.--A certification that the State has in effect laws 
        requiring immunity from prosecution under State and local laws 
        and regulations for individuals making good faith reports of 
        suspected or known instances of child abuse or neglect.
            ``(6) Certification of provisions and procedures relating 
        to appeals.--A certification that not later than 2 years after 
        the date of the enactment of this part, the State shall have 
        laws and procedures in effect affording individuals an 
opportunity to appeal an official finding of abuse or neglect.
            ``(7) Certification of state procedures for developing and 
        reviewing written plans for permanent placement of removed 
        children.--A certification that the State has in effect 
        procedures for ensuring that a written plan is prepared for 
        children who have been removed from their families. Such plan 
        shall specify the goals for achieving a permanent placement for 
        the child in a timely fashion, for ensuring that the written 
        plan is reviewed every 6 months (until such placement is 
        achieved), and for ensuring that information about such 
        children is collected regularly and recorded in case records, 
        and include a description of such procedures.
            ``(8) Certification of state program to provide independent 
        living services.--A certification that the State has in effect 
        a program to provide independent living services, for 
        assistance in making the transition to self-sufficient 
        adulthood, to individuals in the child protection program of 
        the State who are 16, but who are not 20 (or, at the option of 
        the State, 22), years of age, and who do not have a family to 
        which to be returned.
            ``(9) Certification of state procedures to respond to 
        reporting of medical neglect of disabled infants.--
                    ``(A) In general.--A certification that the State 
                has in place for the purpose of responding to the 
                reporting of medical neglect of infants (including 
                instances of withholding of medically indicated 
                treatment from disabled infants with life-threatening 
                conditions), procedures or programs, or both (within 
                the State child protective services system), to provide 
                for--
                            ``(i) coordination and consultation with 
                        individuals designated by and within 
                        appropriate health-care facilities;
                            ``(ii) prompt notification by individuals 
                        designated by and within appropriate health-
                        care facilities of cases of suspected medical 
                        neglect (including instances of withholding of 
                        medically indicated treatment from disabled 
                        infants with life-threatening conditions); and
                            ``(iii) authority, under State law, for the 
                        State child protective service to pursue any 
                        legal remedies, including the authority to 
                        initiate legal proceedings in a court of 
                        competent jurisdiction, as may be necessary to 
                        prevent the withholding of medically indicated 
                        treatment from disabled infants with life-
                        threatening conditions.
                    ``(B) Withholding of medically indicated 
                treatment.--As used in subparagraph (A), the term 
                `withholding of medically indicated treatment' means 
                the failure to respond to the infant's life-threatening 
                conditions by providing treatment (including 
                appropriate nutrition, hydration, and medication) 
                which, in the treating physician's or physicians' 
                reasonable medical judgment, will be most likely to be 
                effective in ameliorating or correcting all such 
                conditions, except that such term does not include the 
                failure to provide treatment (other than appropriate 
                nutrition, hydration, or medication) to an infant when, 
                in the treating physician's or physicians' reasonable 
                medical judgment--
                            ``(i) the infant is chronically and 
                        irreversibly comatose;
                            ``(ii) the provision of such treatment 
                        would--
                                    ``(I) merely prolong dying;
                                    ``(II) not be effective in 
                                ameliorating or correcting all of the 
                                infant's life-threatening conditions; 
                                or
                                    ``(III) otherwise be futile in 
                                terms of the survival of the infant; or
                            ``(iii) the provision of such treatment 
                        would be virtually futile in terms of the 
                        survival of the infant and the treatment itself 
                        under such circumstances would be inhumane.
            ``(10) Identification of child protection goals.--The 
        quantitative goals of the State child protection program.
            ``(11) Certification of child protection standards.--With 
        respect to fiscal years beginning on or after April 1, 1996, a 
        certification that the State--
                    ``(A) has completed an inventory of all children 
                who, before the inventory, had been in foster care 
                under the responsibility of the State for 6 months or 
                more, which determined--
                            ``(i) the appropriateness of, and necessity 
                        for, the foster care placement;
                            ``(ii) whether the child could or should be 
                        returned to the parents of the child or should 
                        be freed for adoption or other permanent 
                        placement; and
                            ``(iii) the services necessary to 
                        facilitate the return of the child or the 
                        placement of the child for adoption or legal 
                        guardianship;
                    ``(B) is operating, to the satisfaction of the 
                Secretary--
                            ``(i) a statewide information system from 
                        which can be readily determined the status, 
                        demographic characteristics, location, and 
                        goals for the placement of every child who is 
                        (or, within the immediately preceding 12 
                        months, has been) in foster care;
                            ``(ii) a case review system for each child 
                        receiving foster care under the supervision of 
                        the State;
                            ``(iii) a service program designed to help 
                        children--
                                    ``(I) where appropriate, return to 
                                families from which they have been 
                                removed; or
                                    ``(II) be placed for adoption, with 
                                a legal guardian, or if adoption or 
                                legal guardianship is determined not to 
                                be appropriate for a child, in some 
                                other planned, permanent living 
                                arrangement; and
                            ``(iv) a preplacement preventive services 
                        program designed to help children at risk for 
                        foster care placement remain with their 
                        families; and
                    ``(C)(i) has reviewed (or not later than October 1, 
                1997, will review) State policies and administrative 
                and judicial procedures in effect for children 
                abandoned at or shortly after birth (including policies 
                and procedures providing for legal representation of 
                such children); and
                    ``(ii) is implementing (or not later than October 
                1, 1997, will implement) such policies and procedures 
                as the State determines, on the basis of the review 
                described in clause (i), to be necessary to enable 
                permanent decisions to be made expeditiously with 
                respect to the placement of such children.
            ``(12) Certification of reasonable efforts before placement 
        of children in foster care.--A certification that the State in 
        each case will--
                    ``(A) make reasonable efforts prior to the 
                placement of a child in foster care, to prevent or 
                eliminate the need for removal of the child from the 
                child's home, and to make it possible for the child to 
                return home; and
                    ``(B) with respect to families in which abuse or 
                neglect has been confirmed, provide services or 
                referral for services for families and children where 
                the State makes a determination that the child may 
                safely remain with the family.
            ``(13) Certification of cooperative efforts.--A 
        certification by the State, where appropriate, that all steps 
        will be taken, including cooperative efforts with the State 
        agencies administering the plans approved under parts A and D, 
        to secure an assignment to the State of any rights to support 
        on behalf of each child receiving foster care maintenance 
        payments under part E.
            ``(14) Certification of confidentiality and requirements 
        for information disclosure.--
                    ``(A) In general.--A certification that the State 
                has in effect and operational--
                            ``(i) requirements ensuring that reports 
                        and records made and maintained pursuant to the 
                        purposes of this part shall only be made 
                        available to--
                                    ``(I) individuals who are the 
                                subject of the report;
                                    ``(II) Federal, State, or local 
                                government entities, or any agent of 
                                such entities, having a need for such 
                                information in order to carry out their 
                                responsibilities under law to protect 
                                children from abuse and neglect;
                                    ``(III) child abuse citizen review 
                                panels;
                                    ``(IV) child fatality review 
                                panels;
                                    ``(V) a grand jury or court, upon a 
                                finding that information in the record 
                                is necessary for the determination of 
                                an issue before the court or grand 
                                jury; and
                                    ``(VI) other entities or classes of 
                                individuals statutorily authorized by 
                                the State to receive such information 
                                pursuant to a legitimate State purpose; 
                                and
                            ``(ii) provisions that allow for public 
                        disclosure of the findings or information about 
                        cases of child abuse or neglect that have 
                        resulted in a child fatality or near fatality.
                    ``(B) Limitation.--Disclosures made pursuant to 
                clause (i) or (ii) shall not include the identifying 
                information concerning the individual initiating a 
                report or complaint alleging suspected instances of 
                child abuse or neglect.
                    ``(C) Definition.--For purposes of this paragraph, 
                the term `near fatality' means an act that, as 
                certified by a physician, places the child in serious 
                or critical condition.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a), other than the material described in paragraph (9) of 
such subsection. The Secretary may not require a State to include in 
such a plan any material not described in subsection (a).

``SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.

    ``(a) Funding of Block Grants.--
            ``(1) Entitlement component.--
                    ``(A) Eligible states.--Each eligible State shall 
                be entitled to receive from the Secretary for each 
                fiscal year specified in subsection (b)(1) a grant in 
                an amount equal to the State share of 99 percent of the 
                child protection amount for the fiscal year.
                    ``(B) Indian tribes and tribal organizations.--The 
                Secretary shall reserve for payments to Indian tribes 
                (as defined in section 658P(7) of the Child Care and 
                Development Block Grant Act of 1990) and tribal 
                organizations (as defined in section 658P(14) of such 
                Act) for each fiscal year specified in subsection 
                (b)(1) an amount equal to 1 percent of the child 
                protection amount for the fiscal year.
            ``(2) Authorization component.--
                    ``(A) In general.--
                            ``(i) Eligible states.--For each eligible 
                        State for each fiscal year specified in 
                        subsection (b)(1), the Secretary shall 
                        supplement the grant under paragraph (1)(A) of 
                        this subsection by an amount equal to the State 
                        share of 99.64 percent of the amount (if any) 
                        appropriated pursuant to subparagraph (B) of 
                        this paragraph for the fiscal year.
                            ``(ii) Indian tribes and tribal 
                        organizations.--The Secretary shall supplement 
                        the amount reserved for payments pursuant to 
                        paragraph (1)(B) of this subsection for each 
                        fiscal year specified in subsection (b)(1), by 
                        an amount equal to 0.36 percent of the amount 
                        (if any) appropriated pursuant to subparagraph 
                        (B) of this paragraph for the fiscal year.
                    ``(B) Limitation on authorization of 
                appropriations.--For grants under subparagraph (A), 
                there are authorized to be appropriated to the 
                Secretary an amount not to exceed $325,000,000 for each 
                fiscal year specified in subsection (b)(1).
    ``(b) Definitions.--As used in this section:
            ``(1) Child protection amount.--The term `child protection 
        amount' means--
                    ``(A) $240,000,000 for fiscal year 1997;
                    ``(B) $255,000,000 for fiscal year 1998;
                    ``(C) $262,000,000 for fiscal year 1999;
                    ``(D) $270,000,000 for fiscal year 2000;
                    ``(E) $278,000,000 for fiscal year 2001; and
                    ``(F) $286,000,000 for fiscal year 2002;
            ``(2) State share.--
                    ``(A) In general.--The term `State share' means the 
                qualified child protection expenses of the State 
                divided by the sum of the qualified child protection 
                expenses of all of the States.
                    ``(B) Qualified child protection expenses.--The 
                term `qualified child protection expenses' means, with 
                respect to a State the greater of--
                            ``(i) the total amount of one-third of the 
                        Federal grant amounts to the State under the 
                        provisions of law specified in clauses (i) and 
                        (ii) of subparagraph (C) for fiscal years 1992, 
                        1993, and 1994; or
                            ``(ii) the total amount of the Federal 
                        grant amounts to the State under the provisions 
                        of law specified in clauses (i) and (ii) of 
                        subparagraph (C) for fiscal year 1994.
                    ``(C) Provisions of law.--The provisions of law 
                specified in this subparagraph are the following (as in 
                effect with respect to each of the fiscal years 
                referred to in subparagraph (B)):
                            ``(i) Section 423 of this Act.
                            ``(ii) Section 434 of this Act.
                    ``(D) Determination of information.--In determining 
                amounts for fiscal years 1992, 1993, and 1994 under 
                clauses (i) and (ii) of subparagraph (B), the Secretary 
                shall use information listed as actual amounts in the 
                Justification for Estimates for Appropriation 
                Committees of the Administration for Children and 
                Families for fiscal years 1994, 1995, and 1996, 
                respectively.
    ``(c) Use of Grant.--
            ``(1) In general.--A State to which a grant is made under 
        this section may use the grant in any manner that the State 
        deems appropriate to accomplish the purpose of this part.
            ``(2) Timing of expenditures.--A State to which a grant is 
        made under this section for a fiscal year shall expend the 
        total amount of the grant not later than the end of the 
        immediately succeeding fiscal year.
            ``(3) Rule of interpretation.--This part shall not be 
        interpreted to prohibit short- and long-term foster care 
        facilities operated for profit from receiving funds provided 
        under this part or part E.
            ``(4) Prohibition against use of funds for foster care 
        maintenance or adoption assistance payments.--Funds provided 
        under this part shall not be used to make foster care 
        maintenance payments or adoption assistance payments under any 
        State plan approved under part E.
    ``(d) Timing of Payments.--The Secretary shall pay each eligible 
State the amount of the grant payable to the State under this section 
in quarterly installments.
    ``(e) Penalties.--
            ``(1) For use of grant in violation of this part.--If an 
        audit conducted pursuant to chapter 75 of title 31, United 
States Code, finds that an amount paid to a State under this section 
for a fiscal year has been used in violation of this part, then the 
Secretary shall reduce the amount of the grant that would (in the 
absence of this paragraph) be payable to the State under this section 
for the immediately succeeding fiscal year by the amount so used, plus 
5 percent of the grant paid under this section to the State for such 
fiscal year.
            ``(2) For failure to maintain effort.--
                    ``(A) In general.--If an audit conducted pursuant 
                to chapter 75 of title 31, United States Code, finds 
                that the amount expended by a State (other than from 
                amounts provided by the Federal Government) during the 
                fiscal years specified in subparagraph (B), to carry 
                out the State program funded under this part is less 
                than the applicable percentage specified in such 
                subparagraph of the total amount expended by the State 
                (other than from amounts provided by the Federal 
                Government) during fiscal year 1994 under part B of 
                this title (as in effect on the day before the date of 
                the enactment of this part), then the Secretary shall 
                reduce the amount of the grant that would (in the 
                absence of this paragraph) be payable to the State 
                under this section for the immediately succeeding 
                fiscal year by the amount of the difference, plus 5 
                percent of the grant paid under this section to the 
                State for such fiscal year.
                    ``(B) Specification of fiscal years and applicable 
                percentages.--The fiscal years and applicable 
                percentages specified in this subparagraph are as 
                follows:
                            ``(i) For fiscal years 1997 and 1998, 100 
                        percent.
                            ``(ii) For fiscal years 1999 through 2002, 
                        75 percent.
            ``(3) For failure to submit required report.--
                    ``(A) In general.--The Secretary shall reduce by 3 
                percent the amount of the grant that would (in the 
                absence of this paragraph) be payable to a State under 
                this section for a fiscal year if the Secretary 
                determines that the State has not submitted the report 
                required by section 424 for the immediately preceding 
                fiscal year, within 6 months after the end of the 
                immediately preceding fiscal year.
                    ``(B) Rescission of penalty.--The Secretary shall 
                rescind a penalty imposed on a State under subparagraph 
                (A) with respect to a report for a fiscal year if the 
                State submits the report before the end of the 
                immediately succeeding fiscal year.
            ``(4) State funds to replace reductions in grant.--A State 
        which has a penalty imposed against it under this subsection 
        for a fiscal year shall expend additional State funds in an 
        amount equal to the amount of the penalty for the purpose of 
        carrying out the State program under this part during the 
        immediately succeeding fiscal year.
            ``(5) Reasonable cause exception.--Except in the case of 
        the penalty described in paragraph (2), the Secretary may not 
        impose a penalty on a State under this subsection with respect 
        to a requirement if the Secretary determines that the State has 
        reasonable cause for failing to comply with the requirement.
            ``(6) Corrective compliance plan.--
                    ``(A) In general.--
                            ``(i) Notification of violation.--Before 
                        imposing a penalty against a State under this 
                        subsection with respect to a violation of this 
                        part, the Secretary shall notify the State of 
                        the violation and allow the State the 
                        opportunity to enter into a corrective 
                        compliance plan in accordance with this 
                        paragraph which outlines how the State will 
                        correct the violation and how the State will 
                        insure continuing compliance with this part.
                            ``(ii) 60-day period to propose a 
                        corrective compliance plan.--During the 60-day 
                        period that begins on the date the State 
                        receives a notice provided under clause (i) 
                        with respect to a violation, the State may 
                        submit to the Federal Government a corrective 
                        compliance plan to correct the violation.
                            ``(iii) Consultation about modifications.--
                        During the 60-day period that begins with the 
                        date the Secretary receives a corrective 
                        compliance plan submitted by a State in 
                        accordance with clause (ii), the Secretary may 
                        consult with the State on modifications to the 
                        plan.
                            ``(iv) Acceptance of plan.--A corrective 
                        compliance plan submitted by a State in 
                        accordance with clause (ii) is deemed to be 
                        accepted by the Secretary if the Secretary does 
                        not accept or reject the plan during the 60-day 
                        period that begins on the date the plan is 
                        submitted.
                    ``(B) Effect of correcting violation.--The 
                Secretary may not impose any penalty under this 
                subsection with respect to any violation covered by a 
                State corrective compliance plan accepted by the 
                Secretary if the State corrects the violation pursuant 
                to the plan.
                    ``(C) Effect of failing to correct violation.--The 
                Secretary shall assess some or all of a penalty imposed 
                on a State under this subsection with respect to a 
                violation if the State does not, in a timely manner, 
                correct the violation pursuant to a State corrective 
                compliance plan accepted by the Secretary.
            ``(7) Limitation on amount of penalty.--
                    ``(A) In general.--In imposing the penalties 
                described in this subsection, the Secretary shall not 
                reduce any quarterly payment to a State by more than 25 
                percent.
                    ``(B) Carryforward of unrecovered penalties.--To 
                the extent that subparagraph (A) prevents the Secretary 
                from recovering during a fiscal year the full amount of 
                all penalties imposed on a State under this subsection 
                for a prior fiscal year, the Secretary shall apply any 
                remaining amount of such penalties to the grant payable 
                to the State under subsection (a) for the immediately 
                succeeding fiscal year.
    ``(f) Treatment of Territories.--
            ``(1) In general.--A territory, as defined in section 
        1108(b)(1), shall carry out a child protection program in 
        accordance with the provisions of this part.
            ``(2) Payments.--Subject to the mandatory ceiling amounts 
        specified in section 1108, each territory, as so defined, shall 
        be entitled to receive from the Secretary for any fiscal year 
        an amount equal to the total obligations to the territory under 
        section 434 (as in effect on the day before the date of the 
        enactment of this part) for fiscal year 1995.
    ``(g) Limitation on Federal Authority.--Except as expressly 
provided in this Act, the Secretary may not regulate the conduct of 
States under this part or enforce any provision of this part.

``SEC. 424. DATA COLLECTION AND REPORTING.

    ``(a) National Child Abuse and Neglect Data System.--The Secretary 
shall establish a national data collection and analysis program--
            ``(1) which, to the extent practicable, coordinates 
        existing State child abuse and neglect reports and which shall 
        include--
                    ``(A) standardized data on substantiated, as well 
                as false, unfounded, or unsubstantiated reports; and
                    ``(B) information on the number of deaths due to 
                child abuse and neglect; and
            ``(2) which shall collect, compile, analyze, and make 
        available State child abuse and neglect reporting information 
        which, to the extent practical, is universal and case-specific 
        and integrated with other case-based foster care and adoption 
        data collected by the Secretary.
    ``(b) Adoption and Foster Care and Analysis and Reporting 
Systems.--The Secretary shall implement a system for the collection of 
data relating to adoption and foster care in the United States. Such 
data collection system shall--
            ``(1) avoid unnecessary diversion of resources from 
        agencies responsible for adoption and foster care;
            ``(2) assure that any data that is collected is reliable 
        and consistent over time and among jurisdictions through the 
        use of uniform definitions and methodologies;
            ``(3) provide comprehensive national information with 
        respect to--
                    ``(A) the demographic characteristics of adoptive 
                and foster children and their biological and adoptive 
                or foster parents;
                    ``(B) the status of the foster care population 
                (including the number of children in foster care, 
                length of placement, type of placement, availability 
                for adoption, and goals for ending or continuing foster 
                care);
                    ``(C) the number and characteristics of--
                            ``(i) children placed in or removed from 
                        foster care;
                            ``(ii) children adopted or with respect to 
                        whom adoptions have been terminated; and
                            ``(iii) children placed in foster care 
                        outside the State which has placement and care 
                        responsibility; and
                    ``(D) the extent and nature of assistance provided 
                by Federal, State, and local adoption and foster care 
                programs and the characteristics of the children with 
                respect to whom such assistance is provided; and
            ``(4) utilize appropriate requirements and incentives to 
        ensure that the system functions reliably throughout the United 
        States.
    ``(c) Additional Information.--The Secretary may require the 
provision of additional information under the data collection system 
established under subsection (b) if the addition of such information is 
agreed to by a majority of the States.
    ``(d) Annual Report by the Secretary.--Not later than 6 months 
after the end of each fiscal year, the Secretary shall prepare a report 
based on information provided by the States for the fiscal year 
pursuant to this section, and shall make the report and such 
information available to the Congress and the public.

``SEC. 425. FUNDING FOR STUDIES OF CHILD WELFARE.

    ``(a) National Random Sample Study of Child Welfare.--There are 
authorized to be appropriated and there are appropriated to the 
Secretary for each of fiscal years 1996 through 2002--
            ``(1) $6,000,000 to conduct a national study based on 
        random samples of children who are at risk of child abuse or 
        neglect, or are determined by States to have been abused or 
        neglected under section 208 of the Child and Family Services 
        Block Grant Act of 1996; and
            ``(2) $10,000,000 for such other research as may be 
        necessary under such section.
    ``(b) Assessment of State Courts Improvement of Handling of 
Proceedings Relating to Foster Care and Adoption.--There are authorized 
to be appropriated and there are appropriated to the Secretary for each 
of fiscal years 1996 through 1998 $10,000,000 for the purpose of 
carrying out section 13712 of the Omnibus Budget Reconciliation Act of 
1993 (42 U.S.C. 670 note). All funds appropriated under this subsection 
shall be expended not later than September 30, 1999.

``SEC. 426. DEFINITIONS.

    ``For purposes of this part and part E, the following definitions 
shall apply:
            ``(1) Administrative review.--The term `administrative 
        review' means a review open to the participation of the parents 
        of the child, conducted by a panel of appropriate persons at 
        least one of whom is not responsible for the case management 
        of, or the delivery of services to, either the child or the 
        parents who are the subject of the review.
            ``(2) Adoption assistance agreement.--The term `adoption 
        assistance agreement' means a written agreement, binding on the 
        parties to the agreement, between the State, other relevant 
        agencies, and the prospective adoptive parents of a minor child 
        which at a minimum--
                    ``(A) specifies the nature and amount of any 
                payments, services, and assistance to be provided under 
                such agreement; and
                    ``(B) stipulates that the agreement shall remain in 
                effect regardless of the State of which the adoptive 
                parents are residents at any given time.
        The agreement shall contain provisions for the protection 
        (under an interstate compact approved by the Secretary or 
        otherwise) of the interests of the child in cases where the 
        adoptive parents and child move to another State while the 
        agreement is effective.
            ``(3) Case plan.--The term `case plan' means a written 
        document which includes at least the following:
                    ``(A) A description of the type of home or 
                institution in which a child is to be placed, including 
                a discussion of the appropriateness of the placement 
                and how the agency which is responsible for the child 
                plans to carry out the voluntary placement agreement 
                entered into or judicial determination made with 
                respect to the child in accordance with section 
                472(a)(1).
                    ``(B) A plan for assuring that the child receives 
                proper care and that services are provided to the 
                parents, child, and foster parents in order to improve 
                the conditions in the parents' home, facilitate return 
                of the child to his or her own home or the permanent 
                placement of the child, and address the needs of the 
                child while in foster care, including a discussion of 
                the appropriateness of the services that have been 
                provided to the child under the plan.
                    ``(C) To the extent available and accessible, the 
                health and education records of the child, including--
                            ``(i) the names and addresses of the 
                        child's health and educational providers;
                            ``(ii) the child's grade level performance;
                            ``(iii) the child's school record;
                            ``(iv) assurances that the child's 
                        placement in foster care takes into account 
                        proximity to the school in which the child is 
                        enrolled at the time of placement;
                            ``(v) a record of the child's 
                        immunizations;
                            ``(vi) the child's known medical problems;
                            ``(vii) the child's medications; and
                            ``(viii) any other relevant health and 
                        education information concerning the child 
                        determined to be appropriate by the State.
                Where appropriate, for a child age 16 or over, the case 
                plan must also include a written description of the 
                programs and services which will help such child 
                prepare for the transition from foster care to 
                independent living.
            ``(4) Case review system.--The term `case review system' 
        means a procedure for assuring that--
                    ``(A) each child has a case plan designed to 
                achieve placement in the least restrictive (most 
                family-like) and most appropriate setting available and 
                in close proximity to the parents' home, consistent 
                with the best interests and special needs of the child, 
                which--
                            ``(i) if the child has been placed in a 
                        foster family home or child-care institution a 
                        substantial distance from the home of the 
                        parents of the child, or in a State different 
                        from the State in which such home is located, 
                        sets forth the reasons why such placement is in 
                        the best interests of the child; and
                            ``(ii) if the child has been placed in 
                        foster care outside the State in which the home 
                        of the parents of the child is located, 
                        requires that, periodically, but not less 
                        frequently than every 12 months, a caseworker 
on the staff of the State in which the home of the parents of the child 
is located, or of the State in which the child has been placed, visit 
such child in such home or institution and submit a report on such 
visit to the State in which the home of the parents of the child is 
located;
                    ``(B) the status of each child is reviewed 
                periodically but no less frequently than once every 6 
                months by either a court or by administrative review 
                (as defined in paragraph (1)) in order to determine the 
                continuing necessity for and appropriateness of the 
                placement, the extent of compliance with the case plan, 
                and the extent of progress which has been made toward 
                alleviating or mitigating the causes necessitating 
                placement in foster care, and to project a likely date 
                by which the child may be returned to the home or 
                placed for adoption or legal guardianship;
                    ``(C) with respect to each such child, procedural 
                safeguards will be applied, among other things, to 
                assure each child in foster care under the supervision 
                of the State of a dispositional hearing to be held, in 
                a family or juvenile court or another court (including 
                a tribal court) of competent jurisdiction, or by an 
                administrative body appointed or approved by the court, 
                no later than 18 months after the original placement 
                (and not less frequently than every 12 months 
                thereafter during the continuation of foster care), 
                which hearing shall determine the future status of the 
                child (including whether the child should be returned 
                to the parent, should be continued in foster care for a 
                specified period, should be placed for adoption, or 
                should (because of the child's special needs or 
                circumstances) be continued in foster care on a 
                permanent or long-term basis) and, in the case of a 
                child described in subparagraph (A)(ii), whether the 
                out-of-State placement continues to be appropriate and 
                in the best interests of the child, and, in the case of 
                a child who has attained age 16, the services needed to 
                assist the child to make the transition from foster 
                care to independent living; and procedural safeguards 
                shall also be applied with respect to parental rights 
                pertaining to the removal of the child from the home of 
                his parents, to a change in the child's placement, and 
                to any determination affecting visitation privileges of 
                parents; and
                    ``(D) a child's health and education record (as 
                described in paragraph (3)(C)) is reviewed and updated, 
                and supplied to the foster parent or foster care 
                provider with whom the child is placed, at the time of 
                each placement of the child in foster care.
            ``(5) Child-care institution.--The term `child-care 
        institution' means a private child-care institution, or a 
        public child-care institution which accommodates no more than 
        25 children, which is licensed by the State in which it is 
        situated or has been approved, by the agency of such State 
        responsible for licensing or approval of institutions of this 
        type, as meeting the standards established for such licensing, 
        but the term shall not include detention facilities, forestry 
        camps, training schools, or any other facility operated 
        primarily for the detention of children who are determined to 
        be delinquent.
            ``(6) Foster care maintenance payments.--
                    ``(A) In general.--The term `foster care 
                maintenance payments' means payments to cover the cost 
                of (and the cost of providing) food, clothing, shelter, 
                daily supervision, school supplies, a child's personal 
                incidentals, liability insurance with respect to a 
                child, and reasonable travel to the child's home for 
                visitation. In the case of institutional care, such 
                term shall include the reasonable costs of 
                administration and operation of such institution as are 
                necessarily required to provide the items described in 
                the preceding sentence.
                    ``(B) Special rule.--In cases where--
                            ``(i) a child placed in a foster family 
                        home or child-care institution is the parent of 
                        a son or daughter who is in the same home or 
                        institution; and
                            ``(ii) payments described in subparagraph 
                        (A) are being made under this part with respect 
                        to such child,
                the foster care maintenance payments made with respect 
                to such child as otherwise determined under 
                subparagraph (A) shall also include such amounts as may 
                be necessary to cover the cost of the items described 
                in that subparagraph with respect to such son or 
                daughter.
            ``(7) Foster family home.--The term `foster family home' 
        means a foster family home for children which is licensed by 
        the State in which it is situated or has been approved, by the 
        agency of such State having responsibility for licensing homes 
        of this type, as meeting the standards established for such 
        licensing.
            ``(8) Parents.--The term `parents' means biological or 
        adoptive parents or legal guardians, as determined by 
        applicable State law.
            ``(9) State.--The term `State' means the 50 States and the 
        District of Columbia.
            ``(10) Voluntary placement.--The term `voluntary placement' 
        means an out-of-home placement of a minor, by or with 
        participation of the State, after the parents or guardians of 
        the minor have requested the assistance of the State and signed 
        a voluntary placement agreement.
            ``(11) Voluntary placement agreement.--The term `voluntary 
        placement agreement' means a written agreement, binding on the 
        parties to the agreement, between the State, any other agency 
        acting on its behalf, and the parents or guardians of a minor 
        child which specifies, at a minimum, the legal status of the 
        child and the rights and obligations of the parents or 
        guardians, the child, and the agency while the child is in 
        placement.''.

SEC. 4702. CONFORMING AMENDMENTS.

    (a) Amendments to Part D of Title IV of the Social Security Act.--
            (1) Section 452(a)(10)(C) of the Social Security Act (42 
        U.S.C. 652(a)(10)(C)), as amended by section 4108(b)(2) of this 
        Act, is amended by striking ``or under section 471(a)(17),''.
            (2) Section 452(g)(2)(A) of such Act (42 U.S.C. 
        652(g)(2)(A)), as amended by paragraphs (6) and (7) of section 
        4108(b) of this Act, is amended by inserting ``or benefits or 
        services for foster care maintenance were being provided under 
        the State program funded under part E'' after ``part A'' each 
        place it appears.
            (3) Section 466(a)(3)(B) of such Act (42 U.S.C. 
        666(a)(3)(B)), as amended by section 4108(b)(14) of this Act, 
        is amended by striking ``or 471(a)(17)''.
    (b) Amendment to Section 9442 of the Omnibus Budget Reconciliation 
Act of 1986.--Section 9442(4) of the Omnibus Budget Reconciliation Act 
of 1986 (42 U.S.C. 679a(4)) is amended by inserting ``(as in effect 
before October 1, 1995)'' after ``Act''.
    (c) Redesignation and Amendments of Section 1123.--
            (1) Redesignation.--The Social Security Act is amended by 
        redesignating section 1123, the second place it appears (42 
        U.S.C. 1320a-1a), as section 1123A.
            (2) Amendments.--Section 1123A of such Act, as so 
        redesignated, is amended in subsection (a)--
                    (A) by striking ``The Secretary'' and inserting 
                ``Notwithstanding section 423(g), the Secretary''; and
                    (B) in paragraph (2), by inserting ``under this 
                section'' after ``promulgated''.

Subchapter B--Foster Care, Adoption Assistance, and Independent Living 
                                Programs

SEC. 4711. CONFORMING AMENDMENTS TO PART E OF TITLE IV.

    (a) Purpose; Appropriation.--Section 470 of the Social Security Act 
(42 U.S.C 670) is amended--
            (1) by amending the heading to read as follows:

``SEC. 470. PURPOSE; APPROPRIATION.''; and

            (2) in the second sentence, by striking ``this part'' and 
        inserting ``section 422''.
    (b) State Plan For Foster Care and Adoption Assistance.--Section 
471 of such Act (42 U.S.C. 671) is amended to read as follows:

``SEC. 471. ELIGIBLE STATES.

    ``In order for a State to be eligible for payments under this part, 
the State shall have submitted to the Secretary a plan which satisfies 
the requirements of section 422.''.
    (c) Foster Care Maintenance Payments Program.--Section 472 of such 
Act (42 U.S.C. 672) is amended to read as follows:

``SEC. 472. REQUIREMENTS FOR FOSTER CARE MAINTENANCE PAYMENTS.

    ``(a) In General.--Each State operating a program under this part 
shall make foster care maintenance payments, as defined in section 
426(6) with respect to a child who would meet the requirements of 
section 406(a) (as in effect on the day before the date of the 
enactment of the Personal Responsibility and Work Opportunity Act of 
1996) or of section 407 (as so in effect) but for the removal of the 
child from the home of a relative (specified in section 406(a) (as so 
in effect)), if--
            ``(1) the removal from the home occurred pursuant to a 
        voluntary placement agreement entered into by the child's 
        parent or legal guardian, or was the result of a judicial 
        determination to the effect that continuation therein would be 
        contrary to the welfare of such child and that reasonable 
        efforts of the type described in section 422(a)(12) have been 
        made;
            ``(2) such child's placement and care are the 
        responsibility of--
                    ``(A) the State; or
                    ``(B) any other public agency with which the State 
                has made an agreement for the administration of the 
                State program under this part which is still in effect;
            ``(3) such child has been placed in a foster family home or 
        child-care institution as a result of the voluntary placement 
        agreement or judicial determination referred to in paragraph 
        (1); and
            ``(4) such child--
                    ``(A) would have been eligible to receive aid under 
                the eligibility standards under the State plan approved 
                under section 402 (as in effect on the day before the 
                date of the enactment of this part and adjusted for 
                inflation, in accordance with regulations issued by the 
                Secretary) in or for the month in which such agreement 
                was entered into or court proceedings leading to the 
                removal of such child from the home were initiated; or
                    ``(B) would have received such aid in or for such 
                month if application had been made therefor, or the 
                child had been living with a relative specified in 
                section 406(a) (as so in effect) within 6 months prior 
                to the month in which such agreement was entered into 
                or such proceedings were initiated, and would have 
                received such aid in or for such month if in such month 
                such child had been living with such a relative and 
                application therefor had been made.
    ``(b) Limitation on Foster Care Payments.--Foster care maintenance 
payments may be made under this part only on behalf of a child 
described in subsection (a) of this section who is--
            ``(1) in the foster family home of an individual, whether 
        the payments therefore are made to such individual or to a 
        public or private child placement or child-care agency; or
            ``(2) in a child-care institution, whether the payments 
        therefore are made to such institution or to a public or 
        private child-placement or child-care agency, which payments 
        shall be limited so as to include in such payments only those 
        items which are included in the term `foster care maintenance 
        payments' (as defined in section 426(6)).
    ``(c) Voluntary Placements.--
            ``(1) Satisfaction of child protection standards.--
        Notwithstanding any other provision of this section, Federal 
        payments may be made under this part with respect to amounts 
        expended by any State as foster care maintenance payments under 
        this part, in the case of children removed from their homes 
        pursuant to voluntary placement agreements as described in 
        subsection (a), only if (at the time such amounts were 
        expended) the State has fulfilled all of the requirements of 
        section 422(a)(11).
            ``(2) Removal in excess of 180 days.--No Federal payment 
        may be made under this part with respect to amounts expended by 
        any State as foster care maintenance payments, in the case of 
        any child who was removed from such child's home pursuant to a 
        voluntary placement agreement as described in subsection (a) 
        and has remained in voluntary placement for a period in excess 
        of 180 days, unless there has been a judicial determination by 
        a court of competent jurisdiction (within the first 180 days of 
        such placement) that such placement is in the best interests of 
        the child.
            ``(3) Deemed revocation of agreements.--In any case where--
                    ``(A) the placement of a minor child in foster care 
                occurred pursuant to a voluntary placement agreement 
                entered into by the parents or guardians of such child 
                as provided in subsection (a); and
                    ``(B) such parents or guardians request (in such 
                manner and form as the Secretary may prescribe) that 
                the child be returned to their home or to the home of a 
                relative,
        the voluntary placement agreement shall be deemed to be revoked 
        unless the State opposes such request and obtains a judicial 
        determination, by a court of competent jurisdiction, that the 
        return of the child to such home would be contrary to the 
        child's best interests.
    ``(d) Eligibility for Medical Assistance.--For purposes of titles 
XIX and XX, any child with respect to whom foster care maintenance 
payments are made under this section is deemed to be a recipient of 
cash assistance under part A of this title. For the purposes of the 
preceding sentence, a child whose costs in a foster family home or 
child-care institution are covered by the foster care maintenance 
payments being made with respect to his or her minor parent, as 
provided in section 426(6)(B), shall be considered a child with respect 
to whom foster care maintenance payments are made under this 
section.''.
    (d) Adoption Assistance Program.--Section 473 of such Act (42 
U.S.C. 673) is amended to read as follows:

``SEC. 473. REQUIREMENTS FOR ADOPTION ASSISTANCE PAYMENTS.

    ``(a) In General.--A State operating a program under this part 
shall enter into adoption assistance agreements with the adoptive 
parents of children with special needs.
    ``(b) Payments Under Agreements.--
            ``(1) In general.--Under any adoption assistance agreement 
        entered into by a State with parents who adopt a child with 
        special needs, the State--
                    ``(A) shall make payments of nonrecurring adoption 
                expenses incurred by or on behalf of such parents in 
                connection with the adoption of such child, directly 
                through the State agency or through another public or 
                nonprofit private agency, in amounts determined under 
                subsection (e), and
                    ``(B) in any case where the child meets the 
                requirements of subsection (d), may make adoption 
                assistance payments to such parents, directly through 
                the State agency or through another public or nonprofit 
private agency, in amounts so determined.
            ``(2) Definition of nonrecurring adoption expenses.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(A), the term `nonrecurring adoption expenses' means 
                reasonable and necessary adoption fees, court costs, 
                attorney fees, and other expenses which are directly 
                related to the legal adoption of a child with special 
                needs and which are not incurred in violation of State 
                or Federal law.
                    ``(B) Treatment as an administrative expense.--A 
                State's payment of nonrecurring adoption expenses under 
                an adoption assistance agreement shall be treated as an 
                expenditure made for the proper and efficient 
                administration of the State plan for purposes of 
                section 474(a)(3)(E).
    ``(c) Eligibility for Medical Assistance.--For purposes of titles 
XIX and XX, any child--
            ``(1)(A) who is a child described in subsection (b), and
            ``(B) with respect to whom an adoption assistance agreement 
        is in effect under this section (whether or not adoption 
        assistance payments are provided under the agreement or are 
        being made under this section), including any such child who 
        has been placed for adoption in accordance with applicable 
        State and local law (whether or not an interlocutory or other 
        judicial decree of adoption has been issued), or
            ``(2) with respect to whom foster care maintenance payments 
        are being made under section 472,
is deemed to be a recipient of cash assistance under part A of this 
title in the State where such child resides. For purposes of the 
preceding sentence, a child whose costs in a foster family home or 
child-care institution are covered by the foster care maintenance 
payments being made with respect to his or her minor parent, as 
provided in section 426(6)(B), shall be considered a child with respect 
to whom foster care maintenance payments are being made under section 
472.
    ``(d) Children With Special Needs.--For purposes of subsection 
(b)(1)(B), a child meets the requirements of this subsection if such 
child--
            ``(1)(A) at the time adoption proceedings were initiated, 
        met the requirements of section 406(a) (as in effect on the day 
        before the date of the enactment of the Personal Responsibility 
        and Work Opportunity Act of 1996) or section 407 (as so in 
        effect) or would have met such requirements except for such 
        child's removal from the home of a relative (specified in 
        section 406(a) (as so in effect)), either pursuant to a 
        voluntary placement agreement with respect to which Federal 
        payments are provided under section 474 (or 403 (as so in 
        effect)) or as a result of a judicial determination to the 
        effect that continuation therein would be contrary to the 
        welfare of such child;
            ``(B) meets all of the requirements of title XVI with 
        respect to eligibility for supplemental security income 
        benefits; or
            ``(C) is a child whose costs in a foster family home or 
        child-care institution are covered by the foster care 
        maintenance payments being made with respect to his or her 
        minor parent;
            ``(2)(A) would have received aid under the eligibility 
        standards under the State plan approved under section 402 (as 
        in effect on the day before the date of the enactment of this 
        part, adjusted for inflation, in accordance with regulations 
        issued by the Secretary) in or for the month in which such 
        agreement was entered into or court proceedings leading to the 
        removal of such child from the home were initiated;
            ``(B) would have received such aid in or for such month if 
        application had been made therefor, or had been living with a 
        relative specified in section 406(a) (as so in effect) within 6 
        months prior to the month in which such agreement was entered 
        into or such proceedings were initiated, and would have 
        received such aid in or for such month if in such month such 
        child had been living with such a relative and application 
        therefor had been made; or
            ``(C) is a child described in subparagraph (A) or (B); and
            ``(3) has been determined by the State, pursuant to 
        subsection (h) of this section, to be a child with special 
        needs.
    ``(e) Determination of Payments.--The amount of the payments to be 
made in any case under subsection (b) shall be determined through 
agreement between the adoptive parents and the State or a public or 
nonprofit private agency administering the program under this part, 
which shall take into consideration the circumstances of the adopting 
parents and the needs of the child being adopted, and may be readjusted 
periodically, with the concurrence of the adopting parents (which may 
be specified in the adoption assistance agreement), depending upon 
changes in such circumstances. However, in no case may the amount of 
the adoption assistance payment exceed the foster care maintenance 
payment which would have been paid during the period if the child with 
respect to whom the adoption assistance payment is made had been in a 
foster family home.
    ``(f) Payment Exception.--Notwithstanding subsection (e), no 
payment may be made to parents with respect to any child who has 
attained the age of 18 (or, where the State determines that the child 
has a mental or physical disability which warrants the continuation of 
assistance, the age of 21), and no payment may be made to parents with 
respect to any child if the State determines that the parents are no 
longer legally responsible for the support of the child or if the State 
determines that the child is no longer receiving any support from such 
parents. Parents who have been receiving adoption assistance payments 
under this part shall keep the State or public or nonprofit private 
agency administering the program under this part informed of 
circumstances which would, pursuant to this section, make them 
ineligible for such assistance payments, or eligible for assistance 
payments in a different amount.
    ``(g) Preadoption Payments.--For purposes of this part, individuals 
with whom a child who has been determined by the State, pursuant to 
subsection (h), to be a child with special needs is placed for adoption 
in accordance with applicable State and local law shall be eligible for 
adoption assistance payments during the period of the placement, on the 
same terms and subject to the same conditions as if such individuals 
had adopted such child.
    ``(h) Determination of Child With Special Needs.--For purposes of 
this section, a child shall not be considered a child with special 
needs unless--
            ``(1) the State has determined that the child cannot or 
        should not be returned to the home of the child's parents; and
            ``(2) the State had first determined--
                    ``(A) that there exists with respect to the child a 
                specific factor or condition such as the child's ethnic 
                background, age, or membership in a minority or sibling 
                group, or the presence of factors such as medical 
                conditions or physical, mental, or emotional handicaps 
                because of which it is reasonable to conclude that such 
                child cannot be placed with adoptive parents without 
                providing adoption assistance under this part or 
                medical assistance under title XIX; and
                    ``(B) that, except where it would be against the 
                best interests of the child because of such factors as 
                the existence of significant emotional ties with 
                prospective adoptive parents while in the care of such 
                parents as a foster child, a reasonable, but 
                unsuccessful, effort has been made to place the child 
                with appropriate adoptive parents without providing 
                adoption assistance under this section or medical 
                assistance under title XIX.''.
    (e) Payments to States; Allotments to States.--Section 474 of such 
Act (42 U.S.C. 674) is amended to read as follows:

``SEC. 474. PAYMENTS TO STATES; ALLOTMENTS TO STATES.

    ``(a) Foster Care, Adoption Assistance, and Independent Living 
Programs Payments.--Each eligible State, as determined under section 
471, shall be entitled to receive from the Secretary for each quarter 
of each fiscal year a payment equal to the sum of--
            ``(1) an amount equal to the Federal medical assistance 
        percentage (as defined in section 1905(b) of this Act as in 
        effect on the day before the date of the enactment of the 
        Personal Responsibility and Work Opportunity Act of 1996) of 
        the total amount expended during such quarter as foster care 
        maintenance payments under the child protection program under 
        this part for children in foster family homes or child-care 
        institutions; plus
            ``(2) an amount equal to the Federal medical assistance 
        percentage (as defined in section 1905(b) of this Act (as so in 
        effect)) of the total amount expended during such quarter as 
        adoption assistance payments under the child protection program 
        under this part pursuant to adoption assistance agreements; 
        plus
            ``(3) an amount equal to the sum of the following 
        proportions of the total amounts expended during such quarter 
        as found necessary by the Secretary for the provision of child 
        placement services and for the proper and efficient 
        administration of the State foster care and adoption assistance 
        program--
                    ``(A) 75 percent of so much of such expenditures as 
                are for the training (including both short and long-
                term training at educational institutions through 
                grants to such institutions or by direct financial 
                assistance to students enrolled in such institutions) 
                of personnel employed or preparing for employment by 
                the State agency or by the local agency administering 
                the plan in the political subdivision;
                    ``(B) 75 percent of so much of such expenditures 
                (including travel and per diem expenses) as are for the 
                short-term training of current or prospective foster or 
                adoptive parents and the members of the staff of State-
                licensed or State-approved child care institutions 
                providing care to foster and adopted children receiving 
                assistance under this part, in ways that increase the 
                ability of such current or prospective parents, staff 
                members, and institutions to provide support and 
                assistance to foster and adopted children, whether 
                incurred directly by the State or by contract;
                    ``(C) 50 percent (or, if the quarter is in fiscal 
                year 1997, 75 percent) of so much of such expenditures 
                as are for the planning, design, development, or 
                installation of statewide mechanized data collection 
                and information retrieval systems (including 50 percent 
                (or, if the quarter is in fiscal year 1997, 75 percent) 
                of the full amount of expenditures for hardware 
                components for such systems) but only to the extent 
                that such systems--
                            ``(i) meet the requirements imposed by 
                        regulations;
                            ``(ii) to the extent practicable, are 
                        capable of interfacing with the State data 
                        collection system that collects information 
                        relating to child abuse and neglect;
                            ``(iii) to the extent practicable, have the 
                        capability of interfacing with, and retrieving 
                        information from, the State data collection 
                        system that collects information relating to 
                        the eligibility of individuals under part A 
                        (for the purposes of facilitating verification 
                        of eligibility of foster children); and
                            ``(iv) are determined by the Secretary to 
                        be likely to provide more efficient, 
                        economical, and effective administration of the 
                        programs carried out under a State plan 
                        approved under this part;
                    ``(D) 50 percent of so much of such expenditures as 
                are for the operation of the statewide mechanized data 
                collection and information retrieval systems referred 
                to in subparagraph (C); and
                    ``(E) one-half of the remainder of such 
                expenditures; plus
            ``(4) an amount equal to the sum of--
                    ``(A) so much of the amounts expended by such State 
                to carry out a program under section 476, as do not 
                exceed the basic amount for such State determined under 
                subsection (e)(1) of such section; and
                    ``(B) the lesser of--
                            ``(i) one-half of any additional amounts 
                        expended by such State for such programs; or
                            ``(ii) the maximum additional amount for 
                        such State under subsection (e)(1) of such 
                        section.
    ``(b) Automated Data Collection Expenditures.--The Secretary shall 
treat as necessary for the proper and efficient administration of the 
State plan all expenditures of a State necessary in order for the State 
to plan, design, develop, install, and operate data collection and 
information retrieval systems, without regard to whether the systems 
may be used with respect to foster or adoptive children other than 
those on behalf of whom foster care maintenance payments or adoption 
assistance payments may be made under this part.
    ``(c) Estimates by the Secretary.--
            ``(1) In general.--The Secretary shall, prior to the 
        beginning of each quarter, estimate the amount which a State 
        will be entitled to receive under subsection (a) for such 
        quarter, such estimates to be based on--
                    ``(A) a report filed by the State containing its 
                estimate of the total sum to be expended in such 
                quarter in accordance with subsection (a), and stating 
                the amount appropriated or made available by the State 
                and its political subdivisions for such expenditures in 
                such quarter, and if such amount is less than the 
                State's proportionate share of the total sum of such 
                estimated expenditures, the source or sources from 
                which the difference is expected to be derived;
                    ``(B) records showing the number of children in the 
                State receiving assistance under this part; and
                    ``(C) such other information as the Secretary may 
                find necessary.
            ``(2) Payments.--The Secretary shall pay to the States the 
        amounts so estimated under paragraph (1), reduced or increased 
        to the extent of any overpayment or underpayment which the 
        Secretary determines was made under this subsection to such 
        State for any prior quarter and with respect to which 
        adjustment has not already been made under this subsection.
            ``(3) Pro rata share.-- The pro rata share to which the 
        United States is equitably entitled, as determined by the 
        Secretary, of the net amount recovered during any quarter by 
        the State or any political subdivision thereof with respect to 
        foster care and adoption assistance furnished under this part 
        shall be considered an overpayment to be adjusted under this 
        subsection.
    ``(d) Allowance or Disallowance of Claim.--
            ``(1) In general.--Within 60 days after receipt of a State 
        claim for expenditures pursuant to subsection (b)(1), the 
        Secretary shall allow, disallow, or defer such claim.
            ``(2) Notice.--Within 15 days after a decision to defer a 
        State claim, the Secretary shall notify the State of the 
        reasons for the deferral and of the additional information 
        necessary to determine the allowability of the claim.
            ``(3) Decision.--Within 90 days after receiving such 
        necessary information (in readily reviewable form), the 
        Secretary shall--
                    ``(A) disallow the claim, if able to complete the 
                review and determine that the claim is not allowable; 
                or
                    ``(B) in any other case, allow the claim, subject 
                to disallowance (as necessary)--
                            ``(i) upon completion of the review, if it 
                        is determined that the claim is not allowable; 
                        or
                            ``(ii) on the basis of findings of an audit 
                        or financial management review.''.
    (f) Definitions.--Section 475 of such Act (42 U.S.C. 675) is 
amended to read as follows:

``SEC. 475. DEFINITIONS.

    For definitions of terms used in this part, see section 426.''.
    (g) Technical Assistance; Data Collection and Evaluation.--Part E 
of title IV of such Act is amended by striking section 476.
    (h) Independent Living Initiatives.--Part E of title IV of such Act 
(42 U.S.C. 670 et seq.), as amended by subsection (g) of this section, 
is amended--
            (1) by redesignating section 477 as section 476; and
            (2) by amending section 476, as so redesignated, to read as 
        follows:

``SEC. 476. REQUIREMENTS FOR INDEPENDENT LIVING PROGRAMS.

    ``(a) Payments for Independent Living Programs.--
            ``(1) In general.--Payments shall be made in accordance 
        with this section for the purpose of assisting States and 
        localities in establishing and carrying out programs designed 
        to assist children described in paragraph (2) who have attained 
        age 16 in making the transition from foster care to independent 
        living. Any State which provides for the establishment and 
        carrying out of one or more such programs in accordance with 
        this section for a fiscal year shall be entitled to receive 
        payments under this section for such fiscal year, in an amount 
        determined under subsection (e).
            ``(2) Program requirements.--A program established and 
        carried out under paragraph (1)--
                    ``(A) shall be designed to assist children with 
                respect to whom foster care maintenance payments are 
                being made by the State under this part;
                    ``(B) may at the option of the State also include 
                any or all other children in foster care under the 
                responsibility of the State; and
                    ``(C) may at the option of the State also include 
                any child who has not attained age 21 to whom foster 
                care maintenance payments were previously made by a 
                State under this part and whose payments were 
                discontinued on or after the date such child attained 
                age 16, and any child who previously was in foster care 
                described in subparagraph (B) and for whom such care 
                was discontinued on or after the date such child 
                attained age 16; and a written transitional independent 
                living plan of the type described in subsection (d)(6) 
                shall be developed for such child as a part of such 
                program.
    ``(b) Use of Funds.--Payment under this section shall be made to 
the State, and shall be used for the purpose of conducting and 
providing in accordance with this section (directly or under contracts 
with local governmental entities or private nonprofit organizations) 
the activities and services required to carry out the program or 
programs involved.
    ``(c) Submission of Program Description and Assurances.--In order 
for a State to receive payments under this section for any fiscal year, 
the State, prior to February 1 of such fiscal year, must submit to the 
Secretary, in such manner and form as the Secretary may prescribe, a 
description of the program together with satisfactory assurances that 
the program will be operated in an effective and efficient manner and 
will otherwise meet the requirements of this section.
    ``(d) Program Objectives.--In carrying out the purpose described in 
subsection (a), it shall be the objective of each program established 
under this section to help the individuals participating in such 
program to prepare to live independently upon leaving foster care. Such 
programs may include (subject to the availability of funds) programs 
to--
            ``(1) enable participants to seek a high school diploma or 
        its equivalent or to take part in appropriate vocational 
        training;
            ``(2) provide training in daily living skills, budgeting, 
        locating and maintaining housing, and career planning;
            ``(3) provide for individual and group counseling;
            ``(4) integrate and coordinate services otherwise available 
        to participants;
            ``(5) provide for the establishment of outreach programs 
        designed to attract individuals who are eligible to participate 
        in the program;
            ``(6) provide each participant a written transitional 
        independent living plan which shall be based on an assessment 
        of his needs, and which shall be incorporated into his case 
        plan, as defined in section 426(3); and
            ``(7) provide participants with other services and 
        assistance designed to improve their transition to independent 
        living.
    ``(e) Determination of Payments.--
            ``(1) Basic amount.--
                    ``(A) In general.--The basic amount to which a 
                State shall be entitled under section 474(a)(4) for a 
                fiscal year shall be an amount which bears the same 
                ratio to the basic ceiling for such fiscal year as such 
                State's average number of children receiving foster 
                care maintenance payments under part E in fiscal year 
                1984 bore to the total of the average number of 
                children receiving such payments under such part for 
                all States for fiscal year 1984.
                    ``(B) Maximum additional amount.--The maximum 
                additional amount to which a State shall be entitled 
                under section 474(a)(4) for a fiscal year shall be an 
                amount which bears the same ratio to the additional 
                ceiling for such fiscal year as the basic amount of 
                such State bears to $45,000,000.
                    ``(C) Definitions.--For purposes of this section:
                            ``(i) Basic ceiling.--The term `basic 
                        ceiling' means, for any fiscal year, 
                        $45,000,000.
                            ``(ii) Additional ceiling.--The term 
                        `additional ceiling' means, for any fiscal 
                        year, $25,000,000.
            ``(2) Reallocation of funds.--If any State does not apply 
        for funds under this section for any fiscal year within the 
        time provided in subsection (c), the funds to which such State 
        would have been entitled for such fiscal year shall be 
        reallocated to one or more other States on the basis of their 
        relative need for additional payments under this section (as 
        determined by the Secretary).
            ``(3) Supplement to other funds.--Any amounts payable to 
        States under this section shall be in addition to amounts 
        payable to States under paragraphs (1), (2), and (3) of section 
        474(a), and shall supplement and not replace any other funds 
        which may be available for the same general purposes in the 
        localities involved.
    ``(f) Limitation on Use of Funds.--Payments made to a State under 
this section for any fiscal year--
            ``(1) shall be used only for the specific purposes 
        described in this section;
            ``(2) may not be used for the provision of room or board;
            ``(3) may be made on an estimated basis in advance of the 
        determination of the exact amount, with appropriate subsequent 
        adjustments to take account of any error in the estimates; and
            ``(4) shall be expended by such State in such fiscal year 
        or in the succeeding fiscal year.
    ``(g) Reporting Requirements.--Not later than the first January 1 
following the end of each fiscal year, each State shall submit to the 
Secretary a report on the programs carried out during such fiscal year 
with the amounts received under this section. Such report shall be in 
such form and contain such information as may be necessary to provide 
an accurate description of such activities, to provide a complete 
record of the purposes for which the funds were spent, and to indicate 
the extent to which the expenditure of such funds succeeded in 
accomplishing the purpose described in subsection (a).
    ``(h) Assistance Not Considered Income or Resources.--
Notwithstanding any other provision of this title, payments made and 
services provided to participants in a program under this section, as a 
direct consequence of their participation in such program, shall not be 
considered as income or resources for purposes of determining 
eligibility (or the eligibility of any other persons) for assistance 
under the State's plan approved under this part or part A, or for 
purposes of determining the level of such assistance.''.
    (i) Collection of Data Relating to Adoption and Foster Care.--Part 
E of title IV of such Act (42 U.S.C. 670 et seq.) is amended--
            (1) by redesignating section 479 as section 477; and
            (2) by amending section 477, as so redesignated, to read as 
        follows:

``SEC. 477. COLLECTION OF DATA RELATING TO ADOPTION AND FOSTER CARE.

    ``For requirements with respect to the collection of data relating 
to adoption and foster care, see section 424.''.

                      Subchapter C--Miscellaneous

SEC. 4721. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR TECHNICAL 
              AND CONFORMING AMENDMENTS.

    Not later than 90 days after the date of the enactment of this 
chapter, the Secretary of Health and Human Services, in consultation, 
as appropriate, with the heads of other Federal agencies, shall submit 
to the appropriate committees of Congress a legislative proposal 
providing for such technical and conforming amendments in the law as 
are required by the provisions of this chapter.

SEC. 4722. SENSE OF THE CONGRESS REGARDING TIMELY ADOPTION OF CHILDREN.

    It is the sense of the Congress that--
            (1) too many children who wish to be adopted are spending 
        inordinate amounts of time in foster care;
            (2) there is an urgent need for States to increase the 
        number of waiting children being adopted in a timely and lawful 
        manner;
            (3) studies have shown that States spend an excess of 
        $15,000 each year on each special needs child in foster care, 
        and would save significant amounts of money if they offered 
        incentives to families to adopt special needs children;
            (4) States should allocate sufficient funds under this 
        subtitle for adoption assistance and medical assistance to 
        encourage more families to adopt children who otherwise would 
        languish in the foster care system for a period that many 
        experts consider detrimental to their development;
            (5) States should offer incentives for families that adopt 
        special needs children to make adoption more affordable for 
        middle-class families;
            (6) when it is necessary for a State to remove a child from 
        the home of the child's biological parents, the State should 
        strive--
                    (A) to provide the child with a single foster care 
                placement and a single coordinated case team; and
                    (B) to conclude an adoption of the child, when 
                adoption is the goal of the child and the State, within 
                one year of the child's placement in foster care; and
            (7) States should participate in local, regional, or 
        national programs to enable maximum visibility of waiting 
        children to potential parents. Such programs should include a 
        nationwide, interactive computer network to disseminate 
        information on children eligible for adoption to help match 
        them with families around the country.

SEC. 4723. REMOVAL OF BARRIERS TO INTERETHNIC ADOPTION.

    (a) State Plan Requirements.--Section 422(a) of the Social Security 
Act (42 U.S.C 622(a)), as added by section 4701 of this Act, is amended 
by adding at the end the following:
            ``(15) Certification regarding removal of barriers to 
        interethnic adoption.--A certification that, not later than 
        January 1, 1997, the State has in effect such laws and 
        procedures as may be necessary to ensure that neither the State 
        nor any other entity in the State that receives funds from the 
        Federal Government and is involved in adoption or foster care 
        placements may--
                    ``(A) deny to any person the opportunity to become 
                an adoptive or a foster parent, on the basis of the 
                race, color, or national origin of the person, or of 
                the child, involved; or
                    ``(B) delay or deny the placement of a child for 
                adoption or into foster care, on the basis of the race, 
                color, or national origin of the adoptive or foster 
                parent, or the child, involved.''.
    (b) Enforcement.--Section 423(e) of such Act (42 U.S.C. 623(e)), as 
added by section 4701 of this Act, is amended by redesignating 
paragraphs (5), (6), and (7) as paragraphs (6), (7), and (8), 
respectively, and by inserting after paragraph (4) the following:
            ``(5) Penalty for failure to remove barriers to interethnic 
        adoption.--
                    ``(A) Reduction of payments to the state.--If a 
                State's program operated under this part is found, as a 
                result of a review conducted under section 1123, to 
                have violated section 422(a)(15) during a quarter with 
                respect to any person, then, notwithstanding any 
                regulations promulgated under section 1123(b)(3), the 
                Secretary shall reduce the amount otherwise payable to 
                the State under this part, for the quarter and for each 
                subsequent quarter before the 1st quarter for which the 
                State program is found, as a result of such a review, 
                not to have violated section 422(a)(15) with respect to 
                any person, by--
                            ``(i) 2 percent of such otherwise payable 
                        amount, in the case of the 1st such finding 
                        with respect to the State;
                            ``(ii) 5 percent of such otherwise payable 
                        amount, in the case of the 2nd such finding 
                        with respect to the State; or
                            ``(iii) 10 percent of such otherwise 
                        payable amount, in the case of the 3rd or 
                        subsequent such finding with respect to the 
                        State.
                    ``(B) Return of funds paid to other violators.--Any 
                other entity which is in a State that receives funds 
                under this part and which violates section 422(a)(15) 
                during a quarter with respect to any person shall remit 
                to the Secretary all funds that were paid by the State 
                to the entity during the quarter from such funds.
                    ``(C) Private cause of action.--
                            ``(i) In general.--Any individual who is 
                        aggrieved by a violation of section 422(a)(15) 
                        by a State or other entity may bring an action 
                        seeking relief from the State or other entity 
                        in any United States district court.
                    ``(ii) Limitation.--An action under this 
                subparagraph may not be brought more than 2 years after 
                the date the alleged violation occurred.
                    ``(D) No effect on the indian child welfare act of 
                1978.--This paragraph shall not be construed to affect 
                the application of the Indian Child Welfare Act of 
                1978.''.
    (c) Civil Rights.--
            (1) Prohibited conduct.--A person or government that is 
        involved in adoption or foster care placements may not--
                    (A) deny to any individual the opportunity to 
                become an adoptive or a foster parent, on the basis of 
                the race, color, or national origin of the individual, 
                or of the child, involved; or
                    (B) delay or deny the placement of a child for 
                adoption or into foster care, on the basis of the race, 
                color, or national origin of the adoptive or foster 
                parent, or the child, involved.
            (2) Enforcement.--Noncompliance with paragraph (1) is 
        deemed a violation of title VI of the Civil Rights Act of 1964.
            (3) No effect on the indian child welfare act of 1978.--
        This subsection shall not be construed to affect the 
        application of the Indian Child Welfare Act of 1978.
    (d) Conforming Repeal.--Section 553 of the Howard M. Metzenbaum 
Multiethnic Placement Act of 1994 (42 U.S.C. 5115a) is repealed.

SEC. 4724. EFFECTIVE DATE; TRANSITION RULES.

    (a) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), this 
        chapter and the amendments made by this chapter shall be 
        effective on and after October 1, 1996.
            (2) Exception.--Section 425 of the Social Security Act, as 
        added by section 4701 of this Act, shall take effect on the 
        date of the enactment of this chapter.
            (3) Temporary redesignation of section 425.--During the 
        period beginning on the date of the enactment of this chapter 
        and ending on October 1, 1996, section 425 of the Social 
        Security Act, as added by section 4701 of this Act, is 
        redesignated as section 425A.
    (b) Transition Rules.--
            (1) Claims, actions, and proceedings.--The amendments made 
        by this chapter shall not apply with respect to--
                    (A) powers, duties, functions, rights, claims, 
                penalties, or obligations applicable to aid, 
                assistance, or services provided before the effective 
                date of this chapter under the provisions amended; and
                    (B) administrative actions and proceedings 
                commenced before such date, or authorized before such 
                date to be commenced, under such provisions.
            (2) Closing out account for those programs terminated or 
        substantially modified by this chapter.--In closing out 
        accounts, Federal and State officials may use scientifically 
        acceptable statistical sampling techniques. Claims made under 
        programs which are repealed or substantially amended in this 
        chapter and which involve State expenditures in cases where 
        assistance or services were provided during a prior fiscal 
        year, shall be treated as expenditures during fiscal year 1995 
        for purposes of reimbursement even if payment was made by a 
        State on or after October 1, 1995. States shall complete the 
        filing of all claims no later than September 30, 1997. Federal 
        department heads shall--
                    (A) use the single audit procedure to review and 
                resolve any claims in connection with the closeout of 
                programs; and
                    (B) reimburse States for any payments made for 
                assistance or services provided during a prior fiscal 
                year from funds for fiscal year 1995, rather than the 
                funds authorized by this chapter.

            CHAPTER 2--CHILD AND FAMILY SERVICES BLOCK GRANT

SEC. 4751. CHILD AND FAMILY SERVICES BLOCK GRANT.

    The Child Abuse Prevention and Treatment Act (42 U.S.C. 5101 et 
seq.) is amended to read as follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Child and Family Services Block 
Grant Act of 1996'.

``SEC. 2. FINDINGS.

    ``The Congress finds the following:
            ``(1) Each year, close to 1,000,000 American children are 
        victims of abuse and neglect.
            ``(2) Many of these children and their families fail to 
        receive adequate protection or treatment.
            ``(3) The problem of child abuse and neglect requires a 
        comprehensive approach that--
                    ``(A) integrates the work of social service, legal, 
                health, mental health, education, and substance abuse 
                agencies and organizations;
                    ``(B) strengthens coordination among all levels of 
                government, and with private agencies, civic, 
                religious, and professional organizations, and 
                individual volunteers;
                    ``(C) emphasizes the need for abuse and neglect 
                prevention, assessment, investigation, and treatment at 
                the neighborhood level;
                    ``(D) ensures properly trained and support staff 
                with specialized knowledge, to carry out their child 
                protection duties; and
                    ``(E) is sensitive to ethnic and cultural 
                diversity.
            ``(4) The child protection system should be comprehensive, 
        child-centered, family-focused, and community-based, should 
        incorporate all appropriate measures to prevent the occurrence 
        or recurrence of child abuse and neglect, and should promote 
        physical and psychological recovery and social reintegration in 
        an environment that fosters the health, safety, self-respect, 
        and dignity of the child.
            ``(5) The Federal Government should provide leadership and 
        assist communities in their child and family protection efforts 
        by--
                    ``(A) generating and sharing knowledge relevant to 
                child and family protection, including the development 
                of models for service delivery;
                    ``(B) strengthening the capacity of States to 
                assist communities;
                    ``(C) helping communities to carry out their child 
                and family protection plans by promoting the competence 
                of professional, paraprofessional, and volunteer 
                resources; and
                    ``(D) providing leadership to end the abuse and 
                neglect of the Nation's children and youth.

``SEC. 3. PURPOSES.

    ``The purposes of this Act are the following:
            ``(1) To assist each State in improving the child 
        protective service systems of such State by--
                    ``(A) improving risk and safety assessment tools 
                and protocols;
                    ``(B) developing, strengthening, and facilitating 
                training opportunities for individuals who are mandated 
                to report child abuse or neglect or otherwise 
                overseeing, investigating, prosecuting, or providing 
                services to children and families who are at risk of 
                abusing or neglecting their children; and
                    ``(C) developing, implementing, or operating 
                information, education, training, or other programs 
                designed to assist and provide services for families of 
                disabled infants with life-threatening conditions.
            ``(2) To support State efforts to develop, operate, expand 
        and enhance a network of community-based, prevention-focused, 
        family resource and support programs that are culturally 
        competent and that coordinate resources among existing 
        education, vocational rehabilitation, disability, respite, 
        health, mental health, job readiness, self-sufficiency, child 
        and family development, community action, Head Start, child 
        care, child abuse and neglect prevention, juvenile justice, 
        domestic violence prevention and intervention, housing, and 
        other human service organizations within the State.
            ``(3) To facilitate the elimination of barriers to adoption 
        and to provide permanent and loving home environments for 
        children who would benefit from adoption, particularly children 
        with special needs, including disabled infants with life-
        threatening conditions, by--
                    ``(A) promoting model adoption legislation and 
                procedures in the States and territories of the United 
                States in order to eliminate jurisdictional and legal 
                obstacles to adoption;
                    ``(B) providing a mechanism for the Department of 
                Health and Human Services to--
                            ``(i) promote quality standards for 
                        adoption services, preplacement, post-
                        placement, and post-legal adoption counseling, 
                        and standards to protect the rights of children 
                        in need of adoption;
                            ``(ii) maintain a national adoption 
                        information exchange system to bring together 
                        children who would benefit from adoption and 
                        qualified prospective adoptive parents who are 
                        seeking such children, and conduct national 
                        recruitment efforts in order to reach 
                        prospective parents for children awaiting 
                        adoption; and
                            ``(iii) demonstrate expeditious ways to 
                        free children for adoption for whom it has been 
                        determined that adoption is the appropriate 
                        plan; and
                    ``(C) facilitating the identification and 
                recruitment of foster and adoptive families that can 
                meet children's needs.
            ``(4) To respond to the needs of children, in particular 
        those who are drug exposed or afflicted with Acquired Immune 
        Deficiency Syndrome (AIDS), by supporting activities aimed at 
        preventing the abandonment of children, providing support to 
        children and their families, and facilitating the recruitment 
        and training of health and social service personnel.
            ``(5) To carry out any other activities as the Secretary 
        determines are consistent with this Act.

``SEC. 4. DEFINITIONS.

    ``As used in this Act:
            ``(1) Child.--The term `child' means a person who has not 
        attained the lesser of--
                    ``(A) the age of 18; or
                    ``(B) except in the case of sexual abuse, the age 
                specified by the child protection law of the State in 
                which the child resides.
            ``(2) Child abuse and neglect.--The term `child abuse and 
        neglect' means, at a minimum, any recent act or failure to act 
        on the part of a parent or caretaker, which results in death, 
        serious physical or emotional harm, sexual abuse or 
        exploitation, or an act or failure to act which presents an 
        imminent risk of serious harm.
            ``(3) Family resource and support programs.--The term 
        `family resource and support program' means a community-based, 
        prevention-focused entity that--
                    ``(A) provides, through direct service, the core 
                services required under this Act, including--
                            ``(i) parent education, support and 
                        leadership services, together with services 
                        characterized by relationships between parents 
                        and professionals that are based on equality 
                        and respect, and designed to assist parents in 
                        acquiring parenting skills, learning about 
                        child development, and responding appropriately 
                        to the behavior of their children;
                            ``(ii) services to facilitate the ability 
                        of parents to serve as resources to one another 
                        (such as through mutual support and parent 
                        self-help groups);
                            ``(iii) early developmental screening of 
                        children to assess any needs of children, and 
                        to identify types of support that may be 
                        provided;
                            ``(iv) outreach services provided through 
                        voluntary home visits and other methods to 
                        assist parents in becoming aware of and able to 
                        participate in family resources and support 
                        program activities;
                            ``(v) community and social services to 
                        assist families in obtaining community 
                        resources; and
                            ``(vi) followup services;
                    ``(B) provides, or arranges for the provision of, 
                other core services through contracts or agreements 
                with other local agencies; and
                    ``(C) provides access to optional services, 
                directly or by contract, purchase of service, or 
                interagency agreement, including--
                            ``(i) child care, early childhood 
                        development and early intervention services;
                            ``(ii) self-sufficiency and life management 
                        skills training;
                            ``(iii) education services, such as 
                        scholastic tutoring, literacy training, and 
                        General Educational Degree services;
                            ``(iv) job readiness skills;
                            ``(v) child abuse and neglect prevention 
                        activities;
                            ``(vi) services that families with children 
                        with disabilities or special needs may require;
                            ``(vii) community and social service 
                        referral;
                            ``(viii) peer counseling;
                            ``(ix) referral for substance abuse 
                        counseling and treatment; and
                            ``(x) help line services.
            ``(4) Indian tribe and tribal organization.--The terms 
        `Indian tribe' and `tribal organization' shall have the same 
        meanings given such terms in subsections (e) and (l), 
        respectively, of section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b(e) and (l)).
            ``(5) Respite services.--The term `respite services' means 
        short-term care services provided in the temporary absence of 
        the regular caregiver (parent, other relative, foster parent, 
        adoptive parent, or guardian) to children who--
                    ``(A) are in danger of abuse or neglect;
                    ``(B) have experienced abuse or neglect; or
                    ``(C) have disabilities, chronic, or terminal 
                illnesses.
        Such services shall be provided within or outside the home of 
        the child, be short-term care (ranging from a few hours to a 
        few weeks of time, per year), and be intended to enable the 
        family to stay together and to keep the child living in the 
        home and community of the child.
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.
            ``(7) Sexual abuse.--The term `sexual abuse' includes--
                    ``(A) the employment, use, persuasion, inducement, 
                enticement, or coercion of any child to engage in, or 
                assist any other person to engage in, any sexually 
                explicit conduct or simulation of such conduct for the 
                purpose of producing a visual depiction of such 
                conduct; or
                    ``(B) the rape, molestation, prostitution, or other 
                form of sexual exploitation of children, or incest with 
                children.
            ``(8) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and the Trust 
        Territory of the Pacific Islands.
            ``(9) Withholding of medically indicated treatment.--The 
        term `withholding of medically indicated treatment' means the 
        failure to respond to the infant's life-threatening conditions 
        by providing treatment (including appropriate nutrition, 
        hydration, and medication) which, in the treating physician's 
        or physicians' reasonable medical judgment, will be most likely 
        to be effective in ameliorating or correcting all such 
        conditions, except that the term does not include the failure 
        to provide treatment (other than appropriate nutrition, 
        hydration, or medication) to an infant when, in the treating 
        physician's or physicians' reasonable medical judgment--
                    ``(A) the infant is chronically and irreversibly 
                comatose;
                    ``(B) the provision of such treatment would--
                            ``(i) merely prolong dying;
                            ``(ii) not be effective in ameliorating or 
                        correcting all of the infant's life-threatening 
                        conditions; or
                            ``(iii) otherwise be futile in terms of the 
                        survival of the infant; or
                    ``(C) the provision of such treatment would be 
                virtually futile in terms of the survival of the infant 
                and the treatment itself under such circumstances would 
                be inhumane.

                     ``TITLE I--GENERAL BLOCK GRANT

``SEC. 101. CHILD AND FAMILY SERVICES BLOCK GRANTS.

    ``(a) Eligibility.--The Secretary shall award grants to eligible 
States that file a State plan that is approved under section 102 and 
that otherwise meet the eligibility requirements for grants under this 
title.
    ``(b) Amount of Grant.--The amount of a grant made to each State 
under subsection (a) for a fiscal year shall be based on the population 
of children under the age of 18 residing in each State that applies for 
a grant under this section.
    ``(c) Use of Amounts.--Amounts received by a State under a grant 
awarded under subsection (a) shall be used to carry out the purposes 
described in section 3.

``SEC. 102. ELIGIBLE STATES.

    ``(a) In General.--As used in this title, the term `eligible State' 
means a State that has submitted to the Secretary, not later than 
October 1, 1996, and every 3 years thereafter, a plan which has been 
signed by the chief executive officer of the State and that includes 
the following:
            ``(1) Outline of child protection program.--A written 
        document that outlines the activities the State intends to 
        conduct to achieve the purpose of this title, including the 
        procedures to be used for--
                    ``(A) receiving and assessing reports of child 
                abuse or neglect;
                    ``(B) investigating such reports;
                    ``(C) with respect to families in which abuse or 
                neglect has been confirmed, providing services or 
                referral for services for families and children where 
                the State makes a determination that the child may 
                safely remain with the family;
                    ``(D) protecting children by removing them from 
                dangerous settings and ensuring their placement in a 
                safe environment;
                    ``(E) providing training for individuals mandated 
                to report suspected cases of child abuse or neglect;
                    ``(F) protecting children in foster care;
                    ``(G) promoting timely adoptions;
                    ``(H) protecting the rights of families, using 
                adult relatives as the preferred placement for children 
                separated from their parents where such relatives meet 
                the relevant State child protection standards; and
                    ``(I) providing services to individuals, families, 
                or communities, either directly or through referral, 
                that are aimed at preventing the occurrence of child 
                abuse and neglect.
            ``(2) Certification of state law requiring the reporting of 
        child abuse and neglect.--A certification that the State has in 
        effect laws that require public officials and other 
        professionals to report, in good faith, actual or suspected 
        instances of child abuse or neglect.
            ``(3) Certification of procedures for screening, safety 
        assessment, and prompt investigation.--A certification that the 
        State has in effect procedures for receiving and responding to 
        reports of child abuse or neglect, including the reports 
        described in paragraph (2), and for the immediate screening, 
        safety assessment, and prompt investigation of such reports.
            ``(4) Certification of state procedures for removal and 
        placement of abused or neglected children.--A certification 
        that the State has in effect procedures for the removal from 
        families and placement of abused or neglected children and of 
        any other child in the same household who may also be in danger 
        of abuse or neglect.
            ``(5) Certification of provisions for immunity from 
        prosecution.--A certification that the State has in effect laws 
        requiring immunity from prosecution under State and local laws 
        and regulations for individuals making good faith reports of 
        suspected or known instances of child abuse or neglect.
            ``(6) Certification of provisions and procedures relating 
        to appeals.--A certification that not later than 2 years after 
        the date of the enactment of this Act, the State shall have 
        laws and procedures in effect affording individuals an 
        opportunity to appeal an official finding of abuse or neglect.
            ``(7) Certification of state procedures for developing and 
        reviewing written plans for permanent placement of removed 
        children.--A certification that the State has in effect 
        procedures for ensuring that a written plan is prepared for 
        children who have been removed from their families. Such plan 
        shall specify the goals for achieving a permanent placement for 
        the child in a timely fashion, for ensuring that the written 
        plan is reviewed every 6 months (until such placement is 
        achieved), and for ensuring that information about such 
        children is collected regularly and recorded in case records, 
        and include a description of such procedures.
            ``(8) Certification of state program to provide independent 
        living services.--A certification that the State has in effect 
        a program to provide independent living services, for 
        assistance in making the transition to self-sufficient 
        adulthood, to individuals in the child protection program of 
        the State who are 16, but who are not 20 (or, at the option of 
        the State, 22), years of age, and who do not have a family to 
        which to be returned.
            ``(9) Certification of state procedures to respond to 
        reporting of medical neglect of disabled infants.--
                    ``(A) In general.--A certification that the State 
                has in place for the purpose of responding to the 
                reporting of medical neglect of infants (including 
                instances of withholding of medically indicated 
                treatment from disabled infants with life-threatening 
                conditions), procedures or programs, or both (within 
                the State child protective services system), to provide 
                for--
                            ``(i) coordination and consultation with 
                        individuals designated by and within 
                        appropriate health-care facilities;
                            ``(ii) prompt notification by individuals 
                        designated by and within appropriate health-
                        care facilities of cases of suspected medical 
                        neglect (including instances of withholding of 
                        medically indicated treatment from disabled 
                        infants with life-threatening conditions); and
                            ``(iii) authority, under State law, for the 
                        State child protective service to pursue any 
                        legal remedies, including the authority to 
                        initiate legal proceedings in a court of 
                        competent jurisdiction, as may be necessary to 
                        prevent the withholding of medically indicated 
                        treatment from disabled infants with life-
                        threatening conditions.
                    ``(B) Withholding of medically indicated 
                treatment.--As used in subparagraph (A), the term 
                `withholding of medically indicated treatment' means 
                the failure to respond to the infant's life-threatening 
                conditions by providing treatment (including 
                appropriate nutrition, hydration, and medication) 
                which, in the treating physician's or physicians' 
                reasonable medical judgment, will be most likely to be 
                effective in ameliorating or correcting all such 
                conditions, except that such term does not include the 
                failure to provide treatment (other than appropriate 
                nutrition, hydration, or medication) to an infant when, 
                in the treating physician's or physicians' reasonable 
                medical judgment--
                            ``(i) the infant is chronically and 
                        irreversibly comatose;
                            ``(ii) the provision of such treatment 
                        would--
                                    ``(I) merely prolong dying;
                                    ``(II) not be effective in 
                                ameliorating or correcting all of the 
                                infant's life-threatening conditions; 
                                or
                                    ``(III) otherwise be futile in 
                                terms of the survival of the infant; or
                            ``(iii) the provision of such treatment 
                        would be virtually futile in terms of the 
                        survival of the infant and the treatment itself 
                        under such circumstances would be inhumane.
            ``(10) Identification of child protection goals.--The 
        quantitative goals of the State child protection program.
            ``(11) Certification of child protection standards.--With 
        respect to fiscal years beginning on or after April 1, 1996, a 
        certification that the State--
                    ``(A) has completed an inventory of all children 
                who, before the inventory, had been in foster care 
                under the responsibility of the State for 6 months or 
                more, which determined--
                            ``(i) the appropriateness of, and necessity 
                        for, the foster care placement;
                            ``(ii) whether the child could or should be 
                        returned to the parents of the child or should 
                        be freed for adoption or other permanent 
                        placement; and
                            ``(iii) the services necessary to 
                        facilitate the return of the child or the 
                        placement of the child for adoption or legal 
                        guardianship;
                    ``(B) is operating, to the satisfaction of the 
                Secretary--
                            ``(i) a statewide information system from 
                        which can be readily determined the status, 
                        demographic characteristics, location, and 
                        goals for the placement of every child who is 
                        (or, within the immediately preceding 12 
                        months, has been) in foster care;
                            ``(ii) a case review system for each child 
                        receiving foster care under the supervision of 
                        the State;
                            ``(iii) a service program designed to help 
                        children--
                                    ``(I) where appropriate, return to 
                                families from which they have been 
                                removed; or
                                    ``(II) be placed for adoption, with 
                                a legal guardian, or if adoption or 
                                legal guardianship is determined not to 
                                be appropriate for a child, in some 
                                other planned, permanent living 
                                arrangement; and
                            ``(iv) a preplacement preventive services 
                        program designed to help children at risk for 
                        foster care placement remain with their 
                        families; and
                    ``(C)(i) has reviewed (or not later than October 1, 
                1997, will review) State policies and administrative 
                and judicial procedures in effect for children 
                abandoned at or shortly after birth (including policies 
                and procedures providing for legal representation of 
                such children); and
                    ``(ii) is implementing (or not later than October 
                1, 1997, will implement) such policies and procedures 
                as the State determines, on the basis of the review 
                described in clause (i), to be necessary to enable 
                permanent decisions to be made expeditiously with 
                respect to the placement of such children.
            ``(12) Certification of reasonable efforts before placement 
        of children in foster care.--A certification that the State in 
        each case will--
                    ``(A) make reasonable efforts prior to the 
                placement of a child in foster care, to prevent or 
                eliminate the need for removal of the child from the 
                child's home, and to make it possible for the child to 
                return home; and
                    ``(B) with respect to families in which abuse or 
                neglect has been confirmed, provide services or 
                referral for services for families and children where 
                the State makes a determination that the child may 
                safely remain with the family.
            ``(13) Certification of confidentiality and requirements 
        for information disclosure.--
                    ``(A) In general.--A certification that the State 
                has in effect and operational--
                            ``(i) requirements ensuring that reports 
                        and records made and maintained pursuant to the 
                        purposes of this part shall only be made 
                        available to--
                                    ``(I) individuals who are the 
                                subject of the report;
                                    ``(II) Federal, State, or local 
                                government entities, or any agent of 
                                such entities, having a need for such 
                                information in order to carry out their 
                                responsibilities under law to protect 
                                children from abuse and neglect;
                                    ``(III) child abuse citizen review 
                                panels;
                                    ``(IV) child fatality review 
                                panels;
                                    ``(V) a grand jury or court, upon a 
                                finding that information in the record 
                                is necessary for the determination of 
                                an issue before the court or grand 
                                jury; and
                                    ``(VI) other entities or classes of 
                                individuals statutorily authorized by 
                                the State to receive such information 
                                pursuant to a legitimate State purpose; 
                                and
                            ``(ii) provisions that allow for public 
                        disclosure of the findings or information about 
                        cases of child abuse or neglect that have 
                        resulted in a child fatality or near fatality.
                    ``(B) Limitation.--Disclosures made pursuant to 
                clause (i) or (ii) shall not include the identifying 
                information concerning the individual initiating a 
                report or complaint alleging suspected instances of 
                child abuse or neglect.
                    ``(C) Definition.--For purposes of this paragraph, 
                the term `near fatality' means an act that, as 
                certified by a physician, places the child in serious 
                or critical condition.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a), other than the material described in paragraph (9) of 
such subsection. The Secretary may not require a State to include in 
such a plan any material not described in subsection (a).

``SEC. 103. DATA COLLECTION AND REPORTING.

    ``(a) National Child Abuse and Neglect Data System.--The Secretary 
shall establish a national data collection and analysis program--
            ``(1) which, to the extent practicable, coordinates 
        existing State child abuse and neglect reports and which shall 
        include--
                    ``(A) standardized data on substantiated, as well 
                as false, unfounded, or unsubstantiated reports; and
                    ``(B) information on the number of deaths due to 
                child abuse and neglect; and
            ``(2) which shall collect, compile, analyze, and make 
        available State child abuse and neglect reporting information 
        which, to the extent practical, is universal and case-specific 
        and integrated with other case-based foster care and adoption 
        data collected by the Secretary.
    ``(b) Adoption and Foster Care and Analysis and Reporting 
Systems.--The Secretary shall implement a system for the collection of 
data relating to adoption and foster care in the United States. Such 
data collection system shall--
            ``(1) avoid unnecessary diversion of resources from 
        agencies responsible for adoption and foster care;
            ``(2) assure that any data that is collected is reliable 
        and consistent over time and among jurisdictions through the 
        use of uniform definitions and methodologies;
            ``(3) provide comprehensive national information with 
        respect to--
                    ``(A) the demographic characteristics of adoptive 
                and foster children and their biological and adoptive 
                or foster parents;
                    ``(B) the status of the foster care population 
                (including the number of children in foster care, 
                length of placement, type of placement, availability 
                for adoption, and goals for ending or continuing foster 
                care);
                    ``(C) the number and characteristics of--
                            ``(i) children placed in or removed from 
                        foster care;
                            ``(ii) children adopted or with respect to 
                        whom adoptions have been terminated; and
                            ``(iii) children placed in foster care 
                        outside the State which has placement and care 
                        responsibility; and
                    ``(D) the extent and nature of assistance provided 
                by Federal, State, and local adoption and foster care 
                programs and the characteristics of the children with 
                respect to whom such assistance is provided; and
            ``(4) utilize appropriate requirements and incentives to 
        ensure that the system functions reliably throughout the United 
        States.
    ``(c) Additional Information.--The Secretary may require the 
provision of additional information under the data collection system 
established under subsection (b) if the addition of such information is 
agreed to by a majority of the States.
    ``(d) Annual Report by the Secretary.--Within 6 months after the 
end of each fiscal year, the Secretary shall prepare a report based on 
information provided by the States for the fiscal year pursuant to this 
section, and shall make the report and such information available to 
the Congress and the public.

     ``TITLE II--RESEARCH, DEMONSTRATIONS, TRAINING, AND TECHNICAL 
                               ASSISTANCE

``SEC. 201. RESEARCH GRANTS.

    ``(a) In General.--The Secretary, in consultation with appropriate 
Federal officials and recognized experts in the field, shall award 
grants or contracts for the conduct of research in accordance with 
subsection (b).
    ``(b) Research.--Research projects to be conducted using amounts 
received under this section--
            ``(1) shall be designed to provide information to better 
        protect children from abuse or neglect and to improve the well-
        being of abused or neglected children, with at least a portion 
        of any such research conducted under a project being field 
        initiated;
            ``(2) shall at a minimum, focus on--
                    ``(A) the nature and scope of child abuse and 
                neglect;
                    ``(B) the causes, prevention, assessment, 
                identification, treatment, cultural and socioeconomic 
                distinctions, and the consequences of child abuse and 
                neglect;
                    ``(C) appropriate, effective and culturally 
                sensitive investigative, administrative, and judicial 
                procedures with respect to cases of child abuse; and
                    ``(D) the national incidence of child abuse and 
                neglect, including--
                            ``(i) the extent to which incidents of 
                        child abuse are increasing or decreasing in 
                        number and severity;
                            ``(ii) the incidence of substantiated and 
                        unsubstantiated reported child abuse cases;
                            ``(iii) the number of substantiated cases 
                        that result in a judicial finding of child 
                        abuse or neglect or related criminal court 
                        convictions;
                            ``(iv) the extent to which the number of 
                        unsubstantiated, unfounded and false reported 
                        cases of child abuse or neglect have 
                        contributed to the inability of a State to 
                        respond effectively to serious cases of child 
                        abuse or neglect;
                            ``(v) the extent to which the lack of 
                        adequate resources and the lack of adequate 
                        training of reporters have contributed to the 
                        inability of a State to respond effectively to 
                        serious cases of child abuse and neglect;
                            ``(vi) the number of unsubstantiated, 
                        false, or unfounded reports that have resulted 
                        in a child being placed in substitute care, and 
                        the duration of such placement;
                            ``(vii) the extent to which unsubstantiated 
                        reports return as more serious cases of child 
                        abuse or neglect;
                            ``(viii) the incidence and prevalence of 
                        physical, sexual, and emotional abuse and 
                        physical and emotional neglect in substitute 
                        care;
                            ``(ix) the incidence and outcomes of abuse 
                        allegations reported within the context of 
                        divorce, custody, or other family court 
                        proceedings, and the interaction between this 
                        venue and the child protective services system; 
                        and
                            ``(x) the cases of children reunited with 
                        their families or receiving family preservation 
                        services that result in subsequent 
                        substantiated reports of child abuse and 
                        neglect, including the death of the child; and
            ``(3) may include the appointment of an advisory board to--
                    ``(A) provide recommendations on coordinating 
                Federal, State, and local child abuse and neglect 
                activities at the State level with similar activities 
                at the State and local level pertaining to family 
                violence prevention;
                    ``(B) consider specific modifications needed in 
                State laws and programs to reduce the number of 
                unfounded or unsubstantiated reports of child abuse or 
                neglect while enhancing the ability to identify and 
                substantiate legitimate cases of abuse or neglect which 
                place a child in danger; and
                    ``(C) provide recommendations for modifications 
                needed to facilitate coordinated national and 
Statewide data collection with respect to child protection and child 
welfare.

``SEC. 202. NATIONAL CLEARINGHOUSE FOR INFORMATION RELATING TO CHILD 
              ABUSE.

    ``(a) Establishment.--The Secretary shall, through the Department 
of Health and Human Services, or by one or more contracts of not less 
than 3 years duration provided through a competition, establish a 
national clearinghouse for information relating to child abuse.
    ``(b) Functions.--The Secretary shall, through the clearinghouse 
established by subsection (a)--
            ``(1) maintain, coordinate, and disseminate information on 
        all programs, including private programs, that show promise of 
        success with respect to the prevention, assessment, 
        identification, and treatment of child abuse and neglect;
            ``(2) maintain and disseminate information relating to--
                    ``(A) the incidence of cases of child abuse and 
                neglect in the United States;
                    ``(B) the incidence of such cases in populations 
                determined by the Secretary under section 105(a)(1) of 
                the Child Abuse Prevention, Adoption, and Family 
                Services Act of 1988 (as such section was in effect on 
                the day before the date of enactment of this Act); and
                    ``(C) the incidence of any such cases related to 
                alcohol or drug abuse;
            ``(3) disseminate information related to data collected and 
        reported by States pursuant to section 103;
            ``(4) compile, analyze, and publish a summary of the 
        research conducted under section 201; and
            ``(5) solicit public comment on the components of such 
        clearinghouse.

``SEC. 203. GRANTS FOR DEMONSTRATION PROJECTS.

    ``(a) Awarding of General Grants.--The Secretary may make grants 
to, and enter into contracts with, public and nonprofit private 
agencies or organizations (or combinations of such agencies or 
organizations) for the purpose of developing, implementing, and 
operating time limited, demonstration programs and projects for the 
following purposes:
            ``(1) Innovative programs and projects.--The Secretary may 
        award grants to public agencies that demonstrate innovation in 
        responding to reports of child abuse and neglect including 
        programs of collaborative partnerships between the State child 
        protective service agency, community social service agencies 
        and family support programs, schools, churches and synagogues, 
        and other community agencies to allow for the establishment of 
        a triage system that--
                    ``(A) accepts, screens and assesses reports 
                received to determine which such reports require an 
                intensive intervention and which require voluntary 
                referral to another agency, program or project;
                    ``(B) provides, either directly or through 
                referral, a variety of community-linked services to 
                assist families in preventing child abuse and neglect; 
                and
                    ``(C) provides further investigation and intensive 
                intervention where the child's safety is in jeopardy.
            ``(2) Kinship care programs and projects.--The Secretary 
        may award grants to public entities to assist such entities in 
        developing or implementing procedures using adult relatives as 
        the preferred placement for children removed from their home, 
        where such relatives are determined to be capable of providing 
        a safe nurturing environment for the child and where, to the 
        maximum extent practicable, such relatives comply with relevant 
        State child protection standards.
            ``(3) Adoption opportunities.--The Secretary may award 
        grants to public entities to assist such entities in developing 
        or implementing programs to expand opportunities for the 
        adoption of children with special needs.
            ``(4) Family resource centers.--The Secretary may award 
        grants to public or nonprofit private entities to provide for 
        the establishment of family resource programs and support 
        services that--
                    ``(A) develop, expand, and enhance statewide 
                networks of community-based, prevention-focused 
                centers, programs, or services that provide 
                comprehensive support for families;
                    ``(B) promote the development of parental 
                competencies and capacities in order to increase family 
                stability;
                    ``(C) support the additional needs of families with 
                children with disabilities;
                    ``(D) foster the development of a continuum of 
                preventive services for children and families through 
                State and community-based collaborations and 
                partnerships (both public and private); and
                    ``(E) maximize funding for the financing, planning, 
                community mobilization, collaboration, assessment, 
                information and referral, startup, training and 
                technical assistance, information management, 
                reporting, and evaluation costs for establishing, 
                operating, or expanding a statewide network of 
                community-based, prevention-focused family resource and 
                support services.
            ``(5) Other innovative programs.--The Secretary may award 
        grants to public or private nonprofit organizations to assist 
        such entities in developing or implementing innovative programs 
        and projects that show promise of preventing and treating cases 
        of child abuse and neglect (such as Parents Anonymous).
    ``(b) Grants for Abandoned Infant Programs.--The Secretary may 
award grants to public and nonprofit private entities to assist such 
entities in developing or implementing procedures--
            ``(1) to prevent the abandonment of infants and young 
        children, including the provision of services to members of the 
        natural family for any condition that increases the probability 
        of abandonment of an infant or young child;
            ``(2) to identify and address the needs of abandoned 
        infants and young children;
            ``(3) to assist abandoned infants and young children to 
        reside with their natural families or in foster care, as 
        appropriate;
            ``(4) to recruit, train, and retain foster families for 
        abandoned infants and young children;
            ``(5) to carry out residential care programs for abandoned 
        infants and young children who are unable to reside with their 
        families or to be placed in foster care;
            ``(6) to carry out programs of respite care for families 
        and foster families of infants and young children; and
            ``(7) to recruit and train health and social services 
        personnel to work with families, foster care families, and 
        residential care programs for abandoned infants and young 
        children.
    ``(c) Evaluation.--In making grants for demonstration projects 
under this section, the Secretary shall require all such projects to be 
evaluated for their effectiveness. Funding for such evaluations shall 
be provided either as a stated percentage of a demonstration grant or 
as a separate grant entered into by the Secretary for the purpose of 
evaluating a particular demonstration project or group of projects.

``SEC. 204. TECHNICAL ASSISTANCE.

    ``(a) Child Abuse and Neglect.--
            ``(1) In general.--The Secretary shall provide technical 
        assistance under this title to States to assist such States in 
        planning, improving, developing, and carrying out programs and 
        activities relating to the prevention, assessment 
        identification, and treatment of child abuse and neglect.
            ``(2) Evaluation.--Technical assistance provided under 
        paragraph (1) may include an evaluation or identification of--
                    ``(A) various methods and procedures for the 
                investigation, assessment, and prosecution of child 
                physical and sexual abuse cases;
                    ``(B) ways to mitigate psychological trauma to the 
                child victim; and
                    ``(C) effective programs carried out by the States 
                under this Act.
    ``(b) Adoption Opportunities.--The Secretary shall provide, 
directly or by grant to or contract with public or private nonprofit 
agencies or organizations--
            ``(1) technical assistance and resource and referral 
        information to assist State or local governments with 
        termination of parental rights issues, in recruiting and 
        retaining adoptive families, in the successful placement of 
        children with special needs, and in the provision of pre- and 
        post-placement services, including post-legal adoption 
        services; and
            ``(2) other assistance to help State and local governments 
        replicate successful adoption-related projects from other areas 
        in the United States.

``SEC. 205. TRAINING RESOURCES.

    ``(a) Training Programs.--The Secretary may award grants to public 
or private nonprofit organizations--
            ``(1) for the training of professional and paraprofessional 
        personnel in the fields of medicine, law, education, law 
        enforcement, social work, and other relevant fields who are 
        engaged in, or intend to work in, the field of prevention, 
        identification, and treatment of child abuse and neglect, 
        including the links between domestic violence and child abuse;
            ``(2) to provide culturally specific instruction in methods 
        of protecting children from child abuse and neglect to children 
        and to persons responsible for the welfare of children, 
        including parents of and persons who work with children with 
        disabilities; and
            ``(3) to improve the recruitment, selection, and training 
        of volunteers serving in private and public nonprofit children, 
        youth and family service organizations in order to prevent 
        child abuse and neglect through collaborative analysis of 
        current recruitment, selection, and training programs and 
        development of model programs for dissemination and replication 
        nationally.
    ``(b) Dissemination of Information.--The Secretary may provide for 
and disseminate information relating to various training resources 
available at the State and local level to--
            ``(1) individuals who are engaged, or who intend to engage, 
        in the prevention, identification, assessment, and treatment of 
        child abuse and neglect; and
            ``(2) appropriate State and local officials, including 
        prosecutors, to assist in training law enforcement, legal, 
        judicial, medical, mental health, education, and child welfare 
        personnel in appropriate methods of interacting during 
        investigative, administrative, and judicial proceedings with 
        children who have been subjected to abuse.

``SEC. 206. APPLICATIONS AND AMOUNTS OF GRANTS.

    ``(a) Requirement of Application.--The Secretary may not make a 
grant to a State or other entity under this title unless--
            ``(1) an application for the grant is submitted to the 
        Secretary;
            ``(2) with respect to carrying out the purpose for which 
        the grant is to be made, the application provides assurances of 
        compliance satisfactory to the Secretary; and
            ``(3) the application otherwise is in such form, is made in 
        such manner, and contains such agreements, assurances, and 
        information as the Secretary determines to be necessary to 
        carry out this title.
    ``(b) Amount of Grant.--The Secretary shall determine the amount of 
a grant to be awarded under this title.

``SEC. 207. PEER REVIEW FOR GRANTS.

    ``(a) Establishment of Peer Review Process.--
            ``(1) In general.--The Secretary shall, in consultation 
        with experts in the field and other Federal agencies, establish 
        a formal, rigorous, and meritorious peer review process for 
        purposes of evaluating and reviewing applications for grants 
        under this title and determining the relative merits of the 
        projects for which such assistance is requested. The purpose of 
        this process is to enhance the quality and usefulness of 
        research in the field of child abuse and neglect.
            ``(2) Requirements for members.--In establishing the 
        process required by paragraph (1), the Secretary shall appoint 
        to the peer review panels only members who are experts in the 
        field of child abuse and neglect or related disciplines, with 
        appropriate expertise in the application to be reviewed, and 
        who are not individuals who are officers or employees of the 
        Administration for Children and Families. The panels shall meet 
        as often as is necessary to facilitate the expeditious review 
        of applications for grants and contracts under this title, but 
        may not meet less than once a year. The Secretary shall ensure 
        that the peer review panel utilizes scientifically valid review 
        criteria and scoring guidelines for review committees.
    ``(b) Review of Applications for Assistance.--Each peer review 
panel established under subsection (a)(1) that reviews any application 
for a grant shall--
            ``(1) determine and evaluate the merit of each project 
        described in such application;
            ``(2) rank such application with respect to all other 
        applications it reviews in the same priority area for the 
        fiscal year involved, according to the relative merit of all of 
        the projects that are described in such application and for 
        which financial assistance is requested; and
            ``(3) make recommendations to the Secretary concerning 
        whether the application for the project shall be approved.
The Secretary shall award grants under this title on the basis of 
competitive review.
    ``(c) Notice of Approval.--
            ``(1) In general.--The Secretary shall provide grants under 
        this title from among the projects which the peer review panels 
        established under subsection (a)(1) have determined to have 
        merit.
            ``(2) Requirement of explanation.--In the instance in which 
        the Secretary approves an application for a program under this 
        title without having approved all applications ranked above 
        such application, the Secretary shall append to the approved 
        application a detailed explanation of the reasons relied on for 
        approving the application and for failing to approve each 
        pending application that is superior in merit.

``SEC. 208. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.

    ``(a) In General.--The Secretary shall conduct a national study 
based on random samples of children who are at risk of child abuse or 
neglect, or are determined by States to have been abused or neglected, 
and such other research as may be necessary.
    ``(b) Requirements.--The study required by subsection (a) shall--
            ``(1) have a longitudinal component; and
            ``(2) yield data reliable at the State level for as many 
        States as the Secretary determines is feasible.
    ``(c) Preferred Contents.--In conducting the study required by 
subsection (a), the Secretary should--
            ``(1) collect data on the child protection programs of 
        different small States (or different groups of such States) in 
        different years to yield an occasional picture of the child 
        protection programs of such States;
            ``(2) carefully consider selecting the sample from cases of 
        confirmed abuse or neglect; and
            ``(3) follow each case for several years while obtaining 
        information on, among other things--
                    ``(A) the type of abuse or neglect involved;
                    ``(B) the frequency of contact with State or local 
                agencies;
                    ``(C) whether the child involved has been separated 
                from the family, and, if so, under what circumstances;
                    ``(D) the number, type, and characteristics of out-
                of-home placements of the child; and
                    ``(E) the average duration of each placement.
    ``(d) Reports.--
            ``(1) In general.--From time to time, the Secretary shall 
        prepare reports summarizing the results of the study required 
        by subsection (a).
            ``(2) Availability.--The Secretary shall make available to 
        the public any report prepared under paragraph (1), in writing 
        or in the form of an electronic data tape.
            ``(3) Authority to charge fee.--The Secretary may charge 
        and collect a fee for the furnishing of reports under paragraph 
        (2).
            ``(4) Funding.--The Secretary shall carry out this section 
        using amounts made available under section 425 of the Social 
        Security Act.

                    ``TITLE III--GENERAL PROVISIONS

``SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Title I.--There are authorized to be appropriated to carry 
out title I, $230,000,000 for fiscal year 1996, and such sums as may be 
necessary for each of the fiscal years 1997 through 2002.
    ``(b) Title II.--
            ``(1) In general.--Of the amount appropriated under 
        subsection (a) for a fiscal year, the Secretary shall make 
        available 12 percent of such amount to carry out title II 
        (except for sections 203 and 208).
            ``(2) Grants for demonstration projects.--Of the amount 
        made available under paragraph (1) for a fiscal year, the 
        Secretary shall make available not less than 40 percent of such 
        amount to carry out section 203.
    ``(c) Indian Tribes.--Of the amount appropriated under subsection 
(a) for a fiscal year, the Secretary shall make available 1 percent of 
such amount to provide grants and contracts to Indian tribes and Tribal 
Organizations.
    ``(d) Availability of Appropriations.--Amounts appropriated under 
subsection (a) shall remain available until expended.

``SEC. 302. GRANTS TO STATES FOR PROGRAMS RELATING TO THE INVESTIGATION 
              AND PROSECUTION OF CHILD ABUSE AND NEGLECT CASES.

    ``(a) Grants to States.--The Secretary, in consultation with the 
Attorney General, is authorized to make grants to the States for the 
purpose of assisting States in developing, establishing, and operating 
programs designed to improve--
            ``(1) the handling of child abuse and neglect cases, 
        particularly cases of child sexual abuse and exploitation, in a 
        manner which limits additional trauma to the child victim;
            ``(2) the handling of cases of suspected child abuse or 
        neglect related fatalities; and
            ``(3) the investigation and prosecution of cases of child 
        abuse and neglect, particularly child sexual abuse and 
        exploitation.
    ``(b) Eligibility Requirements.--In order for a State to qualify 
for assistance under this section, such State shall--
            ``(1) be an eligible State under section 102;
            ``(2) establish a task force as provided in subsection (c);
            ``(3) fulfill the requirements of subsection (d);
            ``(4) submit annually an application to the Secretary at 
        such time and containing such information and assurances as the 
        Secretary considers necessary, including an assurance that the 
        State will--
                    ``(A) make such reports to the Secretary as may 
                reasonably be required; and
                    ``(B) maintain and provide access to records 
                relating to activities under subsection (a); and
            ``(5) submit annually to the Secretary a report on the 
        manner in which assistance received under this program was 
        expended throughout the State, with particular attention 
        focused on the areas described in paragraphs (1) through (3) of 
        subsection (a).
    ``(c) State Task Forces.--
            ``(1) General rule.--Except as provided in paragraph (2), a 
        State requesting assistance under this section shall establish 
        or designate, and maintain, a State multidisciplinary task 
        force on children's justice (hereafter in this section referred 
        to as `State task force') composed of professionals with 
        knowledge and experience relating to the criminal justice 
        system and issues of child physical abuse, child neglect, child 
        sexual abuse and exploitation, and child maltreatment related 
        fatalities. The State task force shall include--
                    ``(A) individuals representing the law enforcement 
                community;
                    ``(B) judges and attorneys involved in both civil 
                and criminal court proceedings related to child abuse 
                and neglect (including individuals involved with the 
                defense as well as the prosecution of such cases);
                    ``(C) child advocates, including both attorneys for 
                children and, where such programs are in operation, 
                court appointed special advocates;
                    ``(D) health and mental health professionals;
                    ``(E) individuals representing child protective 
                service agencies;
                    ``(F) individuals experienced in working with 
                children with disabilities;
                    ``(G) parents; and
                    ``(H) representatives of parents' groups.
            ``(2) Existing task force.--As determined by the Secretary, 
        a State commission or task force established after January 1, 
        1983, with substantially comparable membership and functions, 
        may be considered the State task force for purposes of this 
        subsection.
    ``(d) State Task Force Study.--Before a State receives assistance 
under this section, and at 3-year intervals thereafter, the State task 
force shall comprehensively--
            ``(1) review and evaluate State investigative, 
        administrative and both civil and criminal judicial handling of 
        cases of child abuse and neglect, particularly child sexual 
        abuse and exploitation, as well as cases involving suspected 
        child maltreatment related fatalities and cases involving a 
        potential combination of jurisdictions, such as interstate, 
        Federal-State, and State-Tribal; and
            ``(2) make policy and training recommendations in each of 
        the categories described in subsection (e).
The task force may make such other comments and recommendations as are 
considered relevant and useful.
    ``(e) Adoption of State Task Force Recommendations.--
            ``(1) General rule.--Subject to the provisions of paragraph 
        (2), before a State receives assistance under this section, a 
        State shall adopt recommendations of the State task force in 
        each of the following categories--
                    ``(A) investigative, administrative, and judicial 
                handling of cases of child abuse and neglect, 
                particularly child sexual abuse and exploitation, as 
                well as cases involving suspected child maltreatment 
                related fatalities and cases involving a potential 
                combination of jurisdictions, such as interstate, 
                Federal-State, and State-Tribal, in a manner which 
                reduces the additional trauma to the child victim and 
                the victim's family and which also ensures procedural 
                fairness to the accused;
                    ``(B) experimental, model and demonstration 
                programs for testing innovative approaches and 
                techniques which may improve the prompt and successful 
                resolution of civil and criminal court proceedings or 
                enhance the effectiveness of judicial and 
                administrative action in child abuse and neglect cases, 
                particularly child sexual abuse and exploitation cases, 
                including the enhancement of performance of court-
                appointed attorneys and guardians ad litem for 
                children; and
                    ``(C) reform of State laws, ordinances, 
                regulations, protocols and procedures to provide 
                comprehensive protection for children from abuse, 
                particularly child sexual abuse and exploitation, while 
                ensuring fairness to all affected persons.
            ``(2) Exemption.--As determined by the Secretary, a State 
        shall be considered to be in fulfillment of the requirements of 
        this subsection if--
                    ``(A) the State adopts an alternative to the 
                recommendations of the State task force, which carries 
                out the purpose of this section, in each of the 
                categories under paragraph (1) for which the State task 
                force's recommendations are not adopted; or
                    ``(B) the State is making substantial progress 
                toward adopting recommendations of the State task force 
                or a comparable alternative to such recommendations.
    ``(f) Funds Available.--For grants under this section, the 
Secretary shall use the amount authorized by section 1404A of the 
Victims of Crime Act of 1984.

``SEC. 303. TRANSITIONAL PROVISION.

    ``A State or other entity that has a grant, contract, or 
cooperative agreement in effect, on the date of enactment of this Act, 
under the Family Resource and Support Program, the Community-Based 
Family Resource Program, the Family Support Center Program, the 
Emergency Child Abuse Prevention Grant Program, the Abandoned Infants 
Assistance Act of 1988, or the Temporary Child Care for Children with 
Disabilities and Crisis Nurseries Programs shall continue to receive 
funds under such grant, contract, or cooperative agreement, subject to 
the original terms under which such funds were provided, through the 
end of the applicable grant, contract, or agreement cycle.

``SEC. 304. RULE OF CONSTRUCTION.

    ``(a) In General.--Nothing in this Act, or in part B or E of title 
IV of the Social Security Act, shall be construed--
            ``(1) as establishing a Federal requirement that a parent 
        or legal guardian provide a child any medical service or 
        treatment against the religious beliefs of the parent or legal 
        guardian; and
            ``(2) to require that a State find, or to prohibit a State 
        from finding, abuse or neglect in cases in which a parent or 
        legal guardian relies solely or partially upon spiritual means 
        rather than medical treatment, in accordance with the religious 
        beliefs of the parent or legal guardian.
    ``(b) State Requirement.--Notwithstanding subsection (a), a State 
shall have in place authority under State law to permit the child 
protective service system of the State to pursue any legal remedies, 
including the authority to initiate legal proceedings in a court of 
competent jurisdiction, to provide medical care or treatment for a 
child when such care or treatment is necessary to prevent or remedy 
serious harm to the child, or to prevent the withholding of medically 
indicated treatment from children with life threatening conditions. 
Except with respect to the withholding of medically indicated 
treatments from disabled infants with life threatening conditions, case 
by case determinations concerning the exercise of the authority of this 
subsection shall be within the sole discretion of the State.''.

SEC. 4752. REAUTHORIZATIONS.

    (a) Missing Children's Assistance Act.--Section 408 of the Missing 
Children's Assistance Act (42 U.S.C. 5777) is amended--
            (1) by striking ``To'' and inserting ``(a) In General.--
        To''
            (2) by striking ``and 1996'' and inserting ``1996, and 
        1997''; and
            (3) by adding at the end thereof the following new 
        subsection:
    ``(b) Evaluation.--The Administrator shall use not more than 5 
percent of the amount appropriated for a fiscal year under subsection 
(a) to conduct an evaluation of the effectiveness of the programs and 
activities established and operated under this title.''.
    (b) Victims of Child Abuse Act of 1990.--Section 214B of the 
Victims of Child Abuse Act of 1990 (42 U.S.C. 13004) is amended--
            (1) in subsection (a)(2), by striking ``and 1996'' and 
        inserting ``1996, and 1997''; and
            (2) in subsection (b)(2), by striking ``and 1996'' and 
        inserting ``1996, and 1997''.

SEC. 4753. REPEALS.

    (a) In General.--The following provisions of law are repealed:
            (1) Title II of the Child Abuse Prevention and Treatment 
        and Adoption Reform Act of 1978 (42 U.S.C. 5111 et seq.).
            (2) The Abandoned Infants Assistance Act of 1988 (42 U.S.C. 
        670 note).
            (3) The Temporary Child Care for Children with Disabilities 
        and Crisis Nurseries Act of 1986 (42 U.S.C. 5117 et seq.).
            (4) Subtitle F of title VII of the Stewart B. McKinney 
        Homeless Assistance Act (42 U.S.C. 11481 et seq.).
    (b) Conforming Amendments.--
            (1) Recommended legislation.--After consultation with the 
        appropriate committees of the Congress and the Director of the 
        Office of Management and Budget, the Secretary of Health and 
        Human Services shall prepare and submit to the Congress a 
        legislative proposal in the form of an implementing bill 
        containing technical and conforming amendments to reflect the 
        repeals made by this section.
            (2) Submission to congress.--Not later than 6 months after 
        the date of enactment of this subchapter, the Secretary of 
        Health and Human Services shall submit the implementing bill 
        referred to under paragraph (1).

         Subtitle G--Reductions in Federal Government Positions

SEC. 4801. REDUCTIONS.

    (a) Definitions.--As used in this section:
            (1) Appropriate effective date.--The term ``appropriate 
        effective date'', used with respect to a Department referred to 
        in this section, means the date on which all provisions of this 
        Act (other than subtitle B of this title) that the Department 
        is required to carry out, and amendments and repeals made by 
        this Act to provisions of Federal law that the Department is 
        required to carry out, are effective.
            (2) Covered activity.--The term ``covered activity'', used 
        with respect to a Department referred to in this section, means 
        an activity that the Department is required to carry out 
        under--
                    (A) a provision of this Act (other than subtitle B 
                of this title); or
                    (B) a provision of Federal law that is amended or 
                repealed by this Act (other than subtitle B of this 
                title).
    (b) Reports.--
            (1) Contents.--Not later than January 1, 1997, each 
        Secretary referred to in paragraph (2) shall prepare and submit 
        to the relevant committees described in paragraph (3) a report 
        containing--
                    (A) the determinations described in subsection (c);
                    (B) appropriate documentation in support of such 
                determinations; and
                    (C) a description of the methodology used in making 
                such determinations.
            (2) Secretary.--The Secretaries referred to in this 
        paragraph are--
                    (A) the Secretary of Agriculture;
                    (B) the Secretary of Education;
                    (C) the Secretary of Labor;
                    (D) the Secretary of Housing and Urban Development; 
                and
                    (E) the Secretary of Health and Human Services.
            (3) Relevant committees.--The relevant Committees described 
        in this paragraph are the following:
                    (A) With respect to each Secretary described in 
                paragraph (2), the Committee on Government Reform and 
                Oversight of the House of Representatives and the 
                Committee on Governmental Affairs of the Senate.
                    (B) With respect to the Secretary of Agriculture, 
                the Committee on Agriculture and the Committee on 
                Economic and Educational Opportunities of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate.
                    (C) With respect to the Secretary of Education, the 
                Committee on Economic and Educational Opportunities of 
                the House of Representatives and the Committee on Labor 
                and Human Resources of the Senate.
                    (D) With respect to the Secretary of Labor, the 
                Committee on Economic and Educational Opportunities of 
                the House of Representatives and the Committee on Labor 
                and Human Resources of the Senate.
                    (E) With respect to the Secretary of Housing and 
                Urban Development, the Committee on Banking and 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate.
                    (F) With respect to the Secretary of Health and 
                Human Services, the Committee on Economic and 
                Educational Opportunities of the House of 
                Representatives, the Committee on Labor and Human 
                Resources of the Senate, the Committee on Ways and 
                Means of the House of Representatives, and the 
                Committee on Finance of the Senate.
            (4) Report on changes.--Not later than December 31, 1996, 
        and each December 31 thereafter, each Secretary referred to in 
        paragraph (2) shall prepare and submit to the relevant 
        Committees described in paragraph (3), a report concerning any 
        changes with respect to the determinations made under 
        subsection (c) for the year in which the report is being 
        submitted.
    (c) Determinations.--Not later than December 31, 1996, each 
Secretary referred to in subsection (b)(2) shall determine--
            (1) the number of full-time equivalent positions required 
        by the Department headed by such Secretary to carry out the 
        covered activities of the Department, as of the day before the 
        date of enactment of this Act;
            (2) the number of such positions required by the Department 
        to carry out the activities, as of the appropriate effective 
        date for the Department; and
            (3) the difference obtained by subtracting the number 
        referred to in paragraph (2) from the number referred to in 
        paragraph (1).
    (d) Actions.--Each Secretary referred to in subsection (b)(2) shall 
take such actions as may be necessary, including reduction in force 
actions, consistent with sections 3502 and 3595 of title 5, United 
States Code, to reduce the number of positions of personnel of the 
Department--
            (1) not later than 30 days after the appropriate effective 
        date for the Department involved, by at least 50 percent of the 
        difference referred to in subsection (c)(3); and
            (2) not later than 13 months after such appropriate 
        effective date, by at least the remainder of such difference 
        (after the application of paragraph (1)).
    (e) Consistency.--
            (1) Education.--The Secretary of Education shall carry out 
        this section in a manner that enables the Secretary to meet the 
        requirements of this section.
            (2) Labor.--The Secretary of Labor shall carry out this 
        section in a manner that enables the Secretary to meet the 
        requirements of this section.
            (3) Health and human services.--The Secretary of Health and 
        Human Services shall carry out this section in a manner that 
        enables the Secretary to meet the requirements of this section 
        and sections 4802 and 4803.
    (f) Calculation.--In determining, under subsection (c), the number 
of full-time equivalent positions required by a Department to carry out 
a covered activity, a Secretary referred to in subsection (b)(2) shall 
include the number of such positions occupied by personnel carrying out 
program functions or other functions (including budgetary, legislative, 
administrative, planning, evaluation, and legal functions) related to 
the activity.
    (g) General Accounting Office Report.--Not later than July 1, 1997, 
the Comptroller General of the United States shall prepare and submit 
to the committees described in subsection (b)(3), a report concerning 
the determinations made by each Secretary under subsection (c). Such 
report shall contain an analysis of the determinations made by each 
Secretary under subsection (c) and a determination as to whether 
further reductions in full-time equivalent positions are appropriate.

SEC. 4802. REDUCTIONS IN FEDERAL BUREAUCRACY.

    (a) In General.--The Secretary of Health and Human Services shall 
reduce the Federal workforce within the Department of Health and Human 
Services by an amount equal to the sum of--
            (1) 75 percent of the full-time equivalent positions at 
        such Department that relate to any direct spending program, or 
        any program funded through discretionary spending, that has 
        been converted into a block grant program under this Act and 
        the amendments made by this Act; and
            (2) an amount equal to 75 percent of that portion of the 
        total full-time equivalent departmental management positions at 
        such Department that bears the same relationship to the amount 
        appropriated for the programs referred to in paragraph (1) as 
        such amount relates to the total amount appropriated for use by 
        such Department.
    (b) Reductions in the Department of Health and Human Services.--
Notwithstanding any other provision of this Act, the Secretary of 
Health and Human Services shall take such actions as may be necessary, 
including reductions in force actions, consistent with sections 3502 
and 3595 of title 5, United States Code, to reduce the full-time 
equivalent positions within the Department of Health and Human 
Services--
            (1) by 245 full-time equivalent positions related to the 
        program converted into a block grant under the amendment made 
        by section 103; and
            (2) by 60 full-time equivalent managerial positions in the 
        Department.

SEC. 4803. REDUCING PERSONNEL IN WASHINGTON, D.C. AREA.

    In making reductions in full-time equivalent positions, the 
Secretary of Health and Human Services is encouraged to reduce 
personnel in the Washington, D.C., area office (agency headquarters) 
before reducing field personnel.

                       Subtitle H--Miscellaneous

SEC. 4901. APPROPRIATION BY STATE LEGISLATURES.

    (a) In General.--Any funds received by a State under the provisions 
of law specified in subsection (b) shall be subject to appropriation by 
the State legislature, consistent with the terms and conditions 
required under such provisions of law.
    (b) Provisions of Law.--The provisions of law specified in this 
subsection are the following:
            (1) Part A of title IV of the Social Security Act (relating 
        to block grants for temporary assistance for needy families).
            (2) Section 25 of the Food Stamp Act of 1977 (relating to 
        the optional State food assistance block grant).
            (3) The Child Care and Development Block Grant Act of 1990 
        (relating to block grants for child care).

SEC. 4902. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED SUBSTANCES.

    Notwithstanding any other provision of law, States shall not be 
prohibited by the Federal Government from testing welfare recipients 
for use of controlled substances nor from sanctioning welfare 
recipients who test positive for use of controlled substances.

SEC. 4903. REDUCTION IN BLOCK GRANTS TO STATES FOR SOCIAL SERVICES.

    Section 2003(c) of the Social Security Act (42 U.S.C. 1397b(c)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (4); and
            (2) by striking paragraph (5) and inserting the following:
            ``(5) $2,800,000,000 for each of the fiscal years 1990 
        through 1995;
            ``(6) $2,520,000,000 for each of the fiscal years 1997 
        through 2002; and
            ``(7) $2,380,000,000 for the fiscal year 2003 and each 
        succeeding fiscal year.''.

            Passed the House of Representatives July 18, 1996.

            Attest:

                                                                 Clerk.
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