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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 819 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 819

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 1995

 Mrs. Johnson  of Connecticut introduced the following bill; which was 
 referred to the Committee on Ways and Means and, in addition, to the 
Committee on Economic and Educational Opportunities, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

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

    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 to Work Act of 1995''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
               TITLE I--AFDC TRANSITION AND WORK PROGRAM

Sec. 101. AFDC transition and work program.
Sec. 102. Community work experience program amendments.
Sec. 103. Work supplementation program amendments.
Sec. 104. Work requirement for noncustodial parents with child support 
                            arrearages.
Sec. 105. Requirement that minor noncustodial parents who fail to 
                            provide child or spousal support 
                            participate in work, job training, money 
                            management and parenting classes, and 
                            career counseling.
Sec. 106. Effective date; regulations.
                   TITLE II--PATERNITY ESTABLISHMENT

Sec. 201. Cooperation requirement and good cause exception.
Sec. 202. Teens receiving AFDC required to live at home.
Sec. 203. Increase in paternity establishment percentage.
Sec. 204. Effective date.
        TITLE III--EXPANSION OF STATUTORY FLEXIBILITY OF STATES

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

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

Sec. 501. AFDC recipients required to undergo necessary substance abuse 
                            treatment as a condition of receiving AFDC.
Sec. 502. Evaluation of education and training programs.
Sec. 503. Job search required while AFDC application is pending.
Sec. 504. Fraud and administrative efficiency.
Sec. 505. Required immunizations for children.

               TITLE I--AFDC TRANSITION AND WORK PROGRAM

SEC. 101. AFDC TRANSITION AND WORK PROGRAM.

    (a) Purpose.--Section 481(a) of the Social Security Act (42 U.S.C. 
681(a)) is amended by striking all that follows ``and'' and inserting 
``work experience needed to prepare them for a life without welfare.''.
    (b) Establishment and Operation of Program.--
            (1) Transition and work components.--Section 482 of such 
        Act (42 U.S.C. 682) is amended by adding at the end the 
        following:
    ``(j) The program under this part must include--
            ``(1) a transition component that--
                    ``(A) must include the job search program 
                established by the State under subsection (g); and
                    ``(B) may include any other service, activity, or 
                program of the State that is referred to in subsection 
                (d)(1); and
            ``(2) a work component that may include--
                    ``(A) a work supplementation program operated by 
                the State under subsection (e);
                    ``(B) a community work experience program 
                established by the State under subsection (f); or
                    ``(C) any other work program of the State that is 
                approved by the Secretary.''.
            (2) Participation requirements.--Section 402(a)(19) of such 
        Act (42 U.S.C. 602(a)(19)) is amended by adding at the end the 
        following:
                    ``(I)(i) as used in this subparagraph, the term 
                `qualified individual' means--
                            ``(I) all individuals eligible for aid 
                        under the plan who applied for such aid on or 
                        after October 1, 1996, and are not described in 
                        subparagraph (C); and
                            ``(II) on and after October 1, 2000, all 
                        individuals eligible for aid under the plan who 
                        are not described in subparagraph (C);
                    ``(ii)(I) each qualified individual must 
                participate in the transition component of the program 
                of the State under part F, except that--
                            ``(aa) a qualified individual may not be 
                        required (but may be allowed) to participate in 
                        the transition component if, on the basis of 
                        demographic criteria, the State finds that it 
                        is unlikely that the individual will be a 
                        recipient of aid under the plan during a 
                        significant length of time;
                            ``(bb) a qualified individual may not 
                        participate in the transition component if the 
                        individual has elected to participate in the 
                        work component; and
                            ``(cc) a qualified individual may not 
                        participate in the transition component after 
                        the first 24 months (or, at the option of the 
                        State with respect to some or all qualified 
                        individuals based on their desire to work or on 
                        their readiness for employment, any period of 
                        lesser duration) for which the individual is a 
                        qualified individual; and
                            ``(dd) the State may, at its option, exempt 
                        a qualified individual, during 12 of the first 
                        24 months for which an individual is a 
                        qualified individual, from any requirement to 
                        participate in the transition component if the 
                        individual is described in paragraph (35)(A) 
                        and is in compliance with paragraph (35)(A);
                    ``(II)(aa) each qualified individual participating 
                in the transition component must participate in 
                activities under such component for an average of not 
                fewer than 10 hours per week during the first 24 months 
                of such participation;
                    ``(bb) the State, in consultation with the 
                Secretary, must establish guidelines by which 
                determinations under item (aa) will be made, and which, 
                in the case of educational activities, must provide 
                that an individual who is enrolled full-time in a 
                program of study at an educational institution 
                (including a vocational or technical training school), 
                as determined by the institution, and is making 
                satisfactory progress in the program of study, as 
                determined by the institution, is to be regarded as 
                participating in the transition component, in 
                accordance with such rules as the Secretary may 
                prescribe (including rules governing how time spent in 
                such a program of study is to be converted into hours 
of participation in the transition component);
                    ``(iii)(I) if a qualified individual (other than a 
                qualified individual who is a member of a family 
                receiving aid under the plan by reason of section 407) 
                is not participating in the transition component of the 
                program, the State must require the qualified 
                individual to participate in the work component of the 
                program for 35 hours per week (or 30 hours per week, if 
                the State requires the participant to engage in a job 
                search program established by the State under section 
                482(g));
                    ``(II) in the case of a family which has received 
                aid under the plan by reason of section 407, the State 
                must require at least 1 parent in the family to 
                participate in the work component by engaging in work 
                activities for 32 hours per week and by engaging in job 
                search activities for 8 hours per week;
                    ``(III) any qualified individual participating in 
                the work component, may, with the approval of the 
                State, discontinue participation in the work component 
                and begin or resume participation in the transition 
                component, subject to clause (ii)(I)(cc);
                    ``(iv) each qualified individual must cooperate 
                with the State in developing a plan which--
                            ``(I) describes the respective 
                        responsibilities of the State and of the 
                        individual under the program with the goal of 
                        preparing the individual for work; and
                            ``(II) includes a written statement 
                        informing the individual that, upon completion 
                        of the transition component of the program, aid 
                        under the State plan under this part will be 
                        discontinued unless the individual finds 
                        gainful employment or is participating in the 
                        work component of the program;
                    ``(v) if the State determines that a qualified 
                individual has failed to comply with any requirement 
                imposed under this subparagraph--
                            ``(I) in the case of the 1st such failure, 
                        the State shall reduce the amount of aid 
                        otherwise payable under this part to the family 
                        of the individual by an amount equal to 25 
                        percent of the sum of such otherwise payable 
                        amount and any food stamp benefits payable 
                        under the Food Stamp Act of 1977 to a household 
                        that includes a member of the family, and shall 
                        apply such reduction until the failure to 
                        comply ceases;
                            ``(II) in the case of the 2nd such failure 
                        or a 1st such failure that continues for more 
                        than 1 calendar month, the State shall reduce 
                        the amount of aid otherwise payable under this 
                        part to the family of the individual by an 
                        amount equal to 25 percent of the sum of such 
                        otherwise payable amount and any food stamp 
                        benefits payable under the Food Stamp Act of 
                        1977 to a household that includes a member of 
                        the family, and shall apply such reduction 
                        until the failure to comply ceases;
                            ``(III) in the case of the 3rd such 
                        failure, the family of the individual shall not 
                        be eligible for aid under the State plan under 
                        this part, notwithstanding any other provision 
                        of this part; and
                            ``(IV) any 1st such failure that continues 
                        for more than 1 calendar month shall be 
                        considered the 2nd such failure, and any 2nd 
                        such failure that continues for more than 3 
                        calendar months shall be considered the 3rd 
                        such failure;
                    ``(vi) at the option of the State, the State may 
                impose a rule under which the family of an individual 
                shall not be eligible for aid under the State plan 
                under this part, notwithstanding any other provision of 
                this part, after the individual has received such aid 
                for 60 months (whether or not consecutive); and
                    ``(vii) if a family becomes ineligible for aid 
                under the State plan under this part by reason of 
                clause (v)(II) or (vi), the family shall, for purposes 
                of medical assistance under the State plan under title 
                XIX, be deemed to be a recipient of aid under the State 
                plan under this part for so long as the family is 
                otherwise eligible for aid under the State plan under 
                this part.''.
            (3) Persons exempted from participation.--Section 
        402(a)(19)(C) of such Act (42 U.S.C. 602(a)(19)(C)) is amended 
        by striking all that follows ``--'' and inserting the 
        following:
                    ``(C) that an individual may not be required to 
                participate in the program--
                            ``(i) if the individual is incapacitated;
                            ``(ii) if the individual works 30 or more 
                        hours per week;
                            ``(iii) if the individual attends, full-
                        time, an elementary, secondary, or vocational 
                        (or technical) school;
                            ``(iv) if the individual is the parent of a 
                        child who was returned to the home of the 
                        individual during the preceding 2 months after 
                        having been removed from the home;
                            ``(v) if the individual is providing full-
                        time care for a disabled dependent of the 
                        individual;
                            ``(vi) at the option of the State, if the 
                        individual is making progress in a substance 
                        abuse treatment program, unless this clause has 
                        been applied to the individual for 12 months;
                            ``(vii) during such 6-month period as the 
                        individual may select, in which the individual 
                        gives birth to the first child born to the 
                        individual after becoming eligible for aid 
                        under this part; or
                            ``(viii) during such 4-month period as the 
                        individual may select, in which the individual 
                        gives birth to the second or subsequent child 
                        born to the individual after becoming eligible 
                        for aid under this part;''.
            (4) Extension to all states of option to limit afdc-up.--
        Section 407(b)(2)(B) of such Act (42 U.S.C. 607(b)(2)(B)) is 
        amended by striking clause (iii).
            (5) Increase in required jobs participation rates.--Section 
        403(l)(3) of such Act (42 U.S.C. 603(l)(3)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking all that follows ``--'' and 
                        inserting the following:
            ``(i) with respect to all individuals eligible for aid 
        under the State plan who applied for such aid before October 1, 
        1996, and are not described in section 402(a)(19)(C)--
                    ``(I) 15 percent if such year is 1996;
                    ``(II) 20 percent if such year is 1997;
                    ``(III) 20 percent if such year is 1998;
                    ``(IV) 20 percent if such year is 1999; and
                    ``(V) 20 percent if such year is 2000;
            ``(ii) with respect to all individuals eligible for aid 
        under the State plan who applied for such aid on or after 
        October 1, 1996, and are not described in section 
        402(a)(19)(C)--
                    ``(I) 30 percent if such year is 1998;
                    ``(II) 40 percent if such year is 1999; and
                    ``(III) 50 percent if such year is 2000; and
            ``(iii) with respect to all individuals eligible for aid 
        under the State plan who are not described in section 
        402(a)(19)(C)--
                    ``(I) 60 percent if such year is 2001;
                    ``(II) 70 percent if such year is 2002;
                    ``(III) 80 percent if such year is 2003; and
                    ``(IV) 90 percent if such year is 2004.''; and
                    (B) in subparagraph (B)(ii)(IV), by striking ``and 
                1995'' and inserting ``through 2004''.
            (6) Increase in required work program participation rates 
        of unemployed parents.--Section 403(l)(4)(B) of such Act (42 
        U.S.C. 603(l)(4)(B)) is amended--
                    (A) in clause (iii), by striking ``and'';
                    (B) in clause (iv), by striking ``and 1998'' and 
                inserting ``, 1998, 1999, and 2000''.
    (c) Payments to States.--Section 403 of such Act (42 U.S.C. 603) is 
amended by adding at the end the following:
    ``(o)(1) Each State which has been paid under subsection (l) of 
this section for any fiscal year an amount equal to the limitation 
determined under subsection (k)(2) of this section for the fiscal year 
shall be entitled to payments under paragraph (4) of this subsection 
for the fiscal year in an amount equal to the lesser of--
            ``(A) the sum of the applicable percentages (specified in 
        such paragraph (4)) of its expenditures to carry out the 
        program of the State under part F (subject to limitations 
        prescribed by or pursuant to such part or such paragraph (4) on 
        expenditures that may be included for purposes of determining 
        payment under such paragraph (4)); or
            ``(B) the limitation determined under paragraph (2) of this 
        subsection with respect to the State for the fiscal year.
    ``(2) The limitation determined under this paragraph with respect 
to a State for any fiscal year is the amount that bears the same ratio 
to the amount specified in paragraph (3) of this subsection for the 
fiscal year as the average monthly number of adult recipients (as 
defined in subsection (k)(4)) in the State in the preceding fiscal year 
bears to the average monthly number of such recipients in all the 
States for such preceding year.
    ``(3) The amount specified in this paragraph is--
            ``(A) $300,000,000 for fiscal year 1998;
            ``(B) $1,000,000,000 for fiscal year 1999; and
            ``(C) $1,900,000,000 for fiscal year 2000.
    ``(4) Each State which has been paid under subsection (l) of this 
section for a fiscal year an amount equal to the limitation determined 
under subsection (k)(2) of this section for the fiscal year shall, in 
addition to any payment under subsection (a) or (l) of this section, be 
entitled to payment from the Secretary of an amount equal to--
            ``(A) 50 percent of the expenditures of the State for 
        administrative costs incurred in operating the program under 
        part F during the fiscal year (other than personnel costs for 
        staff employed in the operation of the program) with respect to 
        which payment has not been made under subsection (l); and
            ``(B) the greater of 70 percent or the Federal medical 
        assistance percentage (as defined in section 1118 in the case 
        of a State to which section 1108 applies, or as defined in 
        section 1905(b) in the case of any other State) of the other 
        expenditures of the State incurred in operating the program 
        during the fiscal year with respect to which payment has not 
        been made under subsection (l).
    ``(5)(A) Notwithstanding paragraph (4) of this subsection, the 
Secretary shall pay to a State an amount equal to 50 percent of the 
expenditures of the State incurred in operating the program under part 
F during a fiscal year and with respect to which payment has not been 
made under subsection (l) if the State's participation rate (determined 
under subparagraph (B) of this paragraph) for the immediately preceding 
fiscal year is less than--
            ``(i) 15 percent if the preceding fiscal year is 1996;
            ``(ii) 20 percent if such year is 1997;
            ``(iii) 30 percent if such year is 1998;
            ``(iv) 40 percent if such year is 1999;
            ``(v) 50 percent if such year is 2000;
            ``(vi) 60 percent if such year is 2001;
            ``(vii) 70 percent if such year is 2002;
            ``(viii) 80 percent if such year is 2003; and
            ``(ix) 90 percent if such year is 2004.
    ``(B)(i) The State's participation rate for a fiscal year shall be 
the number, expressed as a percentage, equal to--
            ``(I) the number of individuals who participated in the 
        State's program under part F in the year; divided by
            ``(II) the number of individuals required to participate in 
        the program in the year (including individuals with respect to 
        whom the State has exercised its option to require their 
        participation).
    ``(ii) For purposes of this subparagraph, an individual shall not 
be considered to have satisfactorily participated in the program under 
part F solely by reason of the individual being registered to 
participate in the program.
    ``(C) For purposes of this paragraph, an individual shall be 
considered to have participated in the program under part F if the 
individual has participated in accordance with such requirements, 
consistent with regulations of the Secretary, as the State shall 
establish.
    ``(D)(i) If the Secretary determines that a State has failed to 
achieve the participation rate for any fiscal year specified in 
subparagraph (A) of this paragraph, then, subject to clause (ii), the 
Secretary may waive, in whole or in part, the reduction in the payment 
rate otherwise required by such subparagraph (A) if the Secretary finds 
that the State--
            ``(I) is in conformity with section 402(a)(19) and part F;
            ``(II) has made a good faith effort to achieve the 
        participation rate; and
            ``(III) has submitted a proposal which is likely to achieve 
        the applicable participation rates for the current fiscal year 
        and any succeeding fiscal year so specified.
    ``(ii) The Secretary may not grant a waiver to any State under 
clause (i) for more than 12 months (whether or not consecutive) in any 
48-month period.''.
    (d) Conforming Amendment.--Section 403(l)(3)(D) of such Act (42 
U.S.C. 603(l)(3)(D)) is amended--
            (1) by inserting ``(i)'' after (D)'';
            (2) by inserting ``who is eligible for aid under the State 
        plan, who applied for such aid on or after October 1, 1996, and 
        who is not described in section 402(a)(19)(C)'' after ``an 
        individual''; and
            (3) by adding at the end the following:
    ``(ii) For purposes of this paragraph, an individual who is 
eligible for aid under the State plan, who applied for such aid before 
October 1, 1996, and is not described in section 402(a)(19)(C) shall 
not be determined to have participated in the program under part F for 
a week, if such individual has participated in such program for less 
than 10 hours during the week.''.

SEC. 102. COMMUNITY WORK EXPERIENCE PROGRAM AMENDMENTS.

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

SEC. 103. WORK SUPPLEMENTATION PROGRAM AMENDMENTS.

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

SEC. 104. WORK REQUIREMENT FOR NONCUSTODIAL PARENTS WITH CHILD SUPPORT 
              ARREARAGES.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)) is 
amended by inserting after paragraph (11) the following:
            ``(12) Procedures requiring that--
                    ``(A) upon a determination by the State agency 
                referred to in section 402(a)(3) that the noncustodial 
                parent of any child who is applying for or receiving 
                aid under the State plan approved under part A owes 
                child support (as defined in section 462(b)) with 
                respect to the child, is in arrears in the payment of 
                such support in an amount that is not less than twice 
                the amount of the monthly child support obligation, is 
                not incapacitated, and is not subject to a court-
                approved plan for payment of such arrearage, the State 
                agency referred to in section 402(a)(3) send to the 
                noncustodial parent a letter notifying the noncustodial 
                parent that the noncustodial parent--
                            ``(i) is required to pay child support with 
                        respect to the child; and
                            ``(ii) is subject to fines and other 
                        penalties for failure to pay the full amount of 
                        such support in a timely manner; and
                    ``(B) if, by the end of the 30-day period that 
                begins with the date the letter is sent pursuant to 
                subparagraph (A), the amount of the arrearage has not 
                decreased by at least a percentage amount specified by 
                the State agency, the State seek a court order 
                requiring the noncustodial parent--
                            ``(i) to participate in a job search 
                        program established by the State, for not less 
                        than 2 weeks and not more than 4 weeks; and
                            ``(ii) if, by the end of the 30-day period 
                        beginning on the date the order is entered, the 
                        amount of the arrearage has not decreased by at 
                        least a percentage amount specified by the 
                        State agency, to participate in a work program 
                        established by the State, for not less than 35 
                        hours per week (or, if the program also 
                        requires job search, for not less than 30 hours 
                        per week).''.

SEC. 105. REQUIREMENT THAT MINOR NONCUSTODIAL PARENTS WHO FAIL TO 
              PROVIDE CHILD OR SPOUSAL SUPPORT PARTICIPATE IN WORK, JOB 
              TRAINING, MONEY MANAGEMENT AND PARENTING CLASSES, AND 
              CAREER COUNSELING.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by section 104 of this Act, is amended by inserting after 
paragraph (12) the following:
            ``(13) Procedures which require that an order issued on or 
        after the effective date of this paragraph by a court or an 
        administrative process established under State law, which 
        establishes or modifies a support obligation of an individual 
        who has not attained 18 years of age, shall require the 
        individual to participate in good faith in a State program that 
        includes work, job training, parenting and money management 
        classes, and career counseling during any period before the 
        individual attains 18 years of age for which the individual 
        fails to provide such support.''.

SEC. 106. EFFECTIVE DATE; REGULATIONS.

    (a) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this title shall take effect on October 1, 
        1996.
            (2) State option for early applicability.--If a State 
        formally notifies the Secretary of Health and Human Services of 
        its desire to operate a program under section 402(a)(19) and 
        part F of title IV of the Social Security Act (as amended by 
        this title), during any period which begins after the date of 
        the enactment of this Act and ends on September 30, 1996, with 
        respect to 1 or more groups of individuals selected by the 
        State who are eligible for aid under the State plan approved 
        under section 402 of the Social Security Act, and makes such 
        changes in the plan as are required in order to so operate the 
        program (except that, in lieu of the definition contained in 
        section 402(a)(19)(I)(i) of the Social Security Act, there is 
        substituted a definition which describes such group or groups) 
        then--
                    (A) section 402(a)(19)(I) of the Social Security 
                Act (with such substituted definition) shall apply to 
                the State during the period; and
                    (B) section 403(o)(4)(B) of the Social Security Act 
                shall be applied to the State for the first 12 months 
                of such period by substituting ``85 percent'' for ``the 
                greater of 70 percent or the Federal medical assistance 
                percentage (as defined in section 1118 in the case of a 
                State to which section 1108 applies, or as defined in 
                section 1905(b) in the case of any other State)''.
    (b) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
prescribe such regulations as may be necessary to enable States to 
establish and operate programs pursuant to the amendments made by this 
title.

                   TITLE II--PATERNITY ESTABLISHMENT

SEC. 201. COOPERATION REQUIREMENT AND GOOD CAUSE EXCEPTION.

    (a) Child Support Enforcement Requirements.--Section 454 of the 
Social Security Act (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 inserting after paragraph (24) the following:
            ``(25) provide that the State agency administering the plan 
        under this part--
                    ``(A) will make the determination specified under 
                paragraph (4), as to whether an individual is 
                cooperating with efforts to establish paternity and 
                secure support (or has good cause not to cooperate with 
                such efforts) for purposes of the requirements of 
                sections 402(a)(26) and 1912;
                    ``(B) with respect to any child born on or after 
                the date that is 10 months after the date of the 
                enactment of this paragraph, will not determine (or 
                redetermine) the mother (or other custodial relative) 
                of such child to be cooperating with efforts to 
                establish paternity unless such individual furnishes--
                            ``(i) the name of the putative father (or 
                        fathers); and
                            ``(ii) sufficient additional information to 
                        enable the State agency, if reasonable efforts 
                        were made, to verify the identity of the person 
                        named as the putative father (including such 
                        information as the putative father's present 
                        address, telephone number, date of birth, past 
                        or present place of employment, school 
                        previously or currently attended, and names and 
                        addresses of parents, friends, or relatives 
                        able to provide location information, or other 
                        information that could enable service of 
                        process on such person), and
                    ``(C)(i) (where a custodial parent who was 
                initially determined not to be cooperating (or to have 
                good cause not to cooperate) is later determined to be 
                cooperating or to have good cause not to cooperate) 
                will immediately notify the State agency administering 
                the program under part A and the State agency 
                administering the program under title XIX that this 
                eligibility condition has been met; and
                    ``(ii) (where a custodial parent was initially 
                determined to be cooperating (or to have good cause not 
                to cooperate)) will not later determine such individual 
                not to be cooperating (or not to have good cause not to 
                cooperate) until such individual has been afforded an 
                opportunity for a hearing.''.
    (b) AFDC Amendments.--
            (1) Section 402(a)(11) of such Act (42 U.S.C. 602(a)(11)) 
        is amended by striking ``furnishing of'' and inserting 
        ``application for''.
            (2) Section 402(a)(26) of such Act (42 U.S.C. 602(a)(26)) 
        is amended to read as follows:
            ``(26) provide--
                    ``(A) that, as a condition of eligibility for aid 
                under the State plan, each applicant or recipient will 
                be required (subject to subparagraph (C))--
                            ``(i) to assign to the State any rights to 
                        support from any other person the applicant may 
                        have--
                                    ``(I) in behalf of the applicant or 
                                of any other family member for whom the 
                                applicant is applying for or receiving 
                                such aid; and
                                    ``(II) which, at the time the 
                                assignment is executed, have accrued 
                                with respect to support owed for any 
                                period for which such aid is provided;
                            ``(ii) to cooperate with the State--
                                    ``(I) in establishing the paternity 
                                of a child born out of wedlock with 
                                respect to whom such aid is claimed; 
                                and
                                    ``(II) in obtaining support 
                                payments for the applicant and for a 
                                child with respect to whom such aid is 
                                claimed;
                            ``(iii) to cooperate with the State in 
                        obtaining any other payments or property due 
                        the applicant or the child; and
                            ``(iv) to cooperate with the State in 
                        identifying, and providing information to 
                        assist the State in pursuing, any third party 
                        who may be liable to pay for care and services 
                        available under the State plan for medical 
                        assistance under title XIX; but the State shall 
                        not be subject to any financial penalty in the 
                        administration or enforcement of this clause as 
                        a result of any monitoring, quality control, or 
                        auditing requirements;
                    ``(B) that the State agency will immediately refer 
                to the State agency administering the State program 
                operated under part D any applicant for such aid who 
                requires paternity establishment services;
                    ``(C) that an individual will not be required to 
                cooperate with the State, as provided in subparagraph 
                (A), if the individual is found to have good cause for 
                refusing to cooperate, as determined in accordance with 
                standards prescribed by the Secretary, which standards 
                shall take into consideration the best interests of the 
                child on whose behalf such aid is claimed--
                            ``(i) to the satisfaction of the State 
                        agency administering the program under part D, 
                        as determined in accordance with section 
                        454(25), with respect to the requirements under 
                        clauses (i) and (ii) of subparagraph (A) of 
                        this paragraph; and
                            ``(ii) to the satisfaction of the State 
                        agency administering the program under this 
                        part, with respect to the requirements under 
                        clauses (iii) and (iv) of subparagraph (A) of 
                        this paragraph;
                    ``(D) that (except as provided in subparagraph (E)) 
                an applicant requiring paternity establishment services 
                (other than an individual eligible for emergency 
                assistance as defined in section 406(e)) shall not be 
                eligible for such aid until--
                            ``(i) the applicant has furnished to the 
                        agency administering the State plan operated 
                        under part D the information specified in 
                        section 454(25)(E); or
                            ``(ii) the agency referred to in clause (i) 
                        determines that the applicant has good cause 
                        not to cooperate;
                    ``(E) that subparagraph (D) shall not apply--
                            ``(i) until the individual has received the 
                        notification required by section 
                        454(25)(D)(iii); and
                            ``(ii) if the individual appeals a 
                        determination that the individual lacks good 
                        cause for noncooperation, until after the 
                        determination is affirmed after notice and 
                        opportunity for a hearing; and
                    ``(F) that, if the relative with whom a child is 
                living is found to be ineligible for such aid because 
                of failure to comply with subparagraph (A) with respect 
                to the child, the child shall be ineligible for such 
                aid;''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to applications for aid under part A of title IV 
of the Social Security Act filed in or after the first calendar quarter 
beginning 10 months or more after the date of the enactment of this Act 
(or such earlier quarter as the State may select).

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

    Section 402(a)(43) of the Social Security Act (42 U.S.C. 
602(a)(43)) is amended by striking ``at the option of the State,''.

SEC. 204. INCREASE IN PATERNITY ESTABLISHMENT PERCENTAGE.

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

SEC. 205. EFFECTIVE DATE.

    Except as provided in section 201, the amendments made by this 
title shall take effect on October 1, 1996, and shall apply to payments 
under part A of title IV of the Social Security Act for calendar 
quarters ending beginning on or after such date.

        TITLE III--EXPANSION OF STATUTORY FLEXIBILITY OF STATES

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

    Section 403 of the Social Security Act (42 U.S.C. 603) is amended 
by inserting after subsection (b) the following:
    ``(c)(1) Any State may elect to receive payments under this 
subsection in lieu of receiving payments under the other subsections of 
this section.
    ``(2) If a State makes an election under paragraph (1), then, in 
lieu of any payment under any other subsection of this section, the 
Secretary shall make payments to the State under this subsection for 
each fiscal year in an amount equal to 103 percent of the total amount 
to which the State was entitled under this section for fiscal year 
1995, subject to paragraph (5).
    ``(3) Each State to which an amount is paid under paragraph (2) for 
a fiscal year shall expend the amount to carry out any program 
established by the State to provide benefits to needy families with 
dependent children.
    ``(4) Within 3 months after the end of each fiscal year, each State 
that has made an election under paragraph (1) shall submit to the 
Secretary a report that accounts for all expenditures of amounts paid 
to the State under this subsection for the fiscal year.
    ``(5) The Secretary shall reduce by 20 percent the amount that 
would otherwise be payable to a State under this subsection for a 
fiscal year if the Secretary finds that the State has expended any 
amount provided under this subsection for any purpose other than to 
carry out a program of cash benefits to needy families with children.
    ``(6) The regulations issued with respect to State plans and the 
operation of State programs under this part (other than under this 
subsection) shall not apply to any State that makes an election under 
paragraph (1).''.

SEC. 302. OPTION TO DENY AFDC TO MINOR UNMARRIED PARENTS.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)), as amended by section 201(a)(1) of this Act, is 
amended--
            (1) by striking ``and'' at the end of paragraph (45);
            (2) by striking the period at the end of paragraph (46) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (46) the following:
            ``(47) unless the State has enacted a law exempting itself 
        from the application of this paragraph, provide that aid under 
        the plan shall not be payable with respect to an individual who 
        is an unmarried minor (as defined by the State) parent of a 
        dependent child.''.
    (b) Availability of AFDC-UP Benefits.--Section 407(b)(1)(A) of such 
Act (42 U.S.C. 607(b)(1)(A)) is amended by inserting ``, 
notwithstanding section 402(a)(50),'' before ``when--''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1995, and shall apply with respect to applications 
for aid under a State plan approved under part A of title IV of the 
Social Security Act that are made on or after such date.

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

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

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

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

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

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

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

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

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

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)), as amended by sections 201(a)(1), 302, 303, 304, and 
305 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (49);
            (2) by striking the period at the end of paragraph (50) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (50) the following:
            ``(51) at the option of the State, provide that--
                    ``(A) if a recipient of aid under the plan marries 
                an individual who is not a parent of a child of the 
                recipient and (but for this paragraph) the resulting 
                family would have become ineligible for such aid by 
reason of the marriage, then the family shall remain eligible for aid 
under the plan, in an amount equal to 50 percent of the aid payable to 
the recipient immediately before the marriage, for a period (specified 
by the State) of not more than 12 months, but only for so long as the 
income of the family is less than 150 percent of the income official 
poverty line (as defined by the Office of Management and Budget, and 
revised annually in accordance with section 673(2) of the Omnibus 
Budget Reconciliation Act of 1981) applicable to a family of the size 
involved; and
                    ``(B) if a recipient of aid under the plan marries 
                an individual who is not a parent of a child of the 
                recipient and the resulting family would (in the 
                absence of this subparagraph) be eligible for such aid 
                by reason of section 407, then the State may provide 
                aid to the family in accordance with section 407 or 
                subparagraph (A) of this paragraph, but not both.''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply only with respect to individuals who first become recipients of 
aid under State plans approved under part A of title IV of the Social 
Security Act on or after October 1, 1995.

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

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

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

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

SEC. 310. EFFECTIVE DATE.

    The amendments made by this title shall take effect on October 1, 
1995, and shall apply to payments under part A of title IV of the 
Social Security Act for calendar quarters beginning on or after such 
date.

           TITLE IV--EXPANSION OF STATE AND LOCAL FLEXIBILITY

SEC. 401. INTERAGENCY WAIVER REQUEST BOARD.

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

SEC. 402. APPLICATION TO IMPLEMENT ASSISTANCE PLANS.

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

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

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

SEC. 404. IMPLEMENTATION OF ASSISTANCE PLANS; EVALUATIONS.

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

SEC. 405. PUBLIC-PRIVATE PARTNERSHIP COMMITTEES.

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

SEC. 406. DEFINITIONS.

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

SEC. 407. REPORTS.

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

SEC. 408. SUNSET.

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

                         TITLE V--MISCELLANEOUS

SEC. 501. AFDC RECIPIENTS REQUIRED TO UNDERGO NECESSARY SUBSTANCE ABUSE 
              TREATMENT AS A CONDITION OF RECEIVING AFDC.

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

SEC. 502. EVALUATION OF EDUCATION AND TRAINING PROGRAMS.

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

SEC. 503. JOB SEARCH REQUIRED WHILE AFDC APPLICATION IS PENDING.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 201(a)(1), 302, 303, 304, 305, 307, and 309(a) of 
this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (51);
            (2) by striking the period at the end of paragraph (52) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (52) the following:
            ``(53) unless the State has enacted a law exempting itself 
        from the application of this paragraph, provide that--
                    ``(A) each applicant for aid under the State plan 
                must participate in job search activities while the 
                application is pending; and
                    ``(B) the State agency must reimburse the applicant 
                for necessary transportation and child care expenses 
                incurred as a result of such participation.''.

SEC. 504. FRAUD AND ADMINISTRATIVE EFFICIENCY.

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

SEC. 505. REQUIRED IMMUNIZATIONS FOR CHILDREN.

    (a) AFDC Benefits Denied for Children Who Have Not Received 
Preventive Health Care or Immunizations.--
            (1) In general.--Section 402(a) of the Social Security Act 
        (42 U.S.C. 602(a)), as amended by sections 201(a)(1), 302, 303, 
        304, 305, 307, 309(a), and 503 of this Act, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (52);
                    (B) by striking the period at the end of paragraph 
                (53) and inserting ``; and''; and
                    (C) by inserting after paragraph (53) the 
                following:
            ``(54) provide that--
                    ``(A) aid under the plan shall not be payable with 
                respect to any child who has not attained the age of 6 
                years, unless the State agency has received from 1 or 
                more physicians written verification (on a form 
                prescribed by the State)--
                            ``(i) that the child has been examined by a 
                        physician not less frequently than--
                                    ``(I) in the case of a child who 
                                has not attained the age of 19 months, 
                                every 6 months since the child was 
                                born; and
                                    ``(II) in the case of any other 
                                child, every 6 months until the child 
                                attained the age of 19 months, and 
                                every year thereafter;
                            ``(ii) that the child has been immunized in 
                        accordance with recommendations issued by the 
                        Surgeon General of the Public Health Service; 
                        and
                            ``(iii) of any contraindication which 
                        exempts the child from receiving an 
                        immunization;
                    ``(B) the State will conduct appropriate education 
                and outreach activities designed to--
                            ``(i) increase public awareness of the 
                        importance of preventive health care and 
                        immunizations for pre-school children; and
                            ``(ii) inform the public about--
                                    ``(I) the availability of 
                                preventive health care and immunization 
                                services for pre-school children;
                                    ``(II) any transportation, child 
                                care, or other support services that 
                                may be available to assist parents in 
                                obtaining such services for their 
                                children; and
                                    ``(III) the clinics at which any 
                                child may receive immunizations free or 
                                at a reduced charge.''.
            (2) Applicability.--The amendments made by paragraph (1) 
        shall apply to--
                    (A) payments to individuals under State plan 
                approved under part A of title IV of the Social 
                Security Act, for months beginning on or after October 
                1, 1997; and
                    (B) payments to States under such part for calendar 
                quarters beginning on or after October 1, 1997.
    (b) Amendments to the Child Care and Development Block Grant.--
            (1) In general.--Section 658E(2) of the Child Care and 
        Development Block Grant Act (42 U.S.C. 9858c(2)) is amended--
                    (A) in subparagraph (F)--
                            (i) in clause (ii) by striking ``and'' at 
                        the end;
                            (ii) in clause (iii) by striking the period 
                        at the end and inserting ``; and'';
                            (iii) by inserting after subclause (III), 
                        as so redesignated, the following:
                            ``(iv) a requirement that such providers 
                        require with respect to each child who receives 
                        child care services from any of such providers 
                        that certificates signed by a physician who 
                        verifies that such child has been immunized in 
                        accordance with recommendations issued by the 
                        Surgeon General of the Public Health Service be 
                        submitted, at required intervals and in 
                        accordance with rules issued by the Secretary, 
                        to the child care provider involved.''; and
                            (iv) by striking the last sentence; and
                    (B) in subparagraph (G)--
                            (i) by inserting ``(i)'' before 
                        ``Provide''; and
                            (ii) by adding at the end the following:
                    ``(ii) For the purpose of enforcing the requirement 
                described in subparagraph (F)(iv), such procedures 
                shall ensure that each of such providers gives to 
                parents of each child who receives child care services 
                from the provider involved written notice of--
                            ``(I) each immunization requirement 
                        applicable to such child;
                            ``(II) an opportunity of not less than 30 
                        days, and not more than 45 days, to correct the 
                        failure to satisfy such requirement; and
                            ``(III) the fact that child care services 
                        for such child will be terminated for failure 
                        to satisfy such requirement before the 
                        expiration of the 45-day period beginning on 
                        the date such notice is received.''.
            (2) Applicability.--The amendments made by paragraph (1) 
        shall not apply with respect to fiscal years beginning before 
        October 1, 1997.
    (c) Issuance of Immunization Recommendations by the Surgeon General 
of the Public Health Service.--After taking into consideration the then 
most recent report of the Committee on Infectious Diseases of the 
American Academy of Pediatrics, the Surgeon General of the Public 
Health Service shall issue, and revise from time to time, 
recommendations for the immunization of children under 6 years of age. 
With respect to each recommended immunization, such recommendation 
shall include--
            (1) contraindications (if any) that should be identified to 
        exempt a child from receiving such immunization, and
            (2) remedial action that may be taken to minimize the 
        adverse effect of failure to administer such immunization to a 
        child at the recommended age.
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