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tained 20 years of age, and has not received a
high school diploma or a certificate of high
school equivalency;
‘‘(G) job skills training directly related to
employment; or
‘‘(H) at the option of the State, satisfac-
tory attendance at secondary school, in the case
of a recipient who—
‘‘(i) has not completed secondary
school; and
‘‘(ii) is a dependent child, or a head of
household who has not attained 20 years
of age.
‘‘(2) FISCAL
YEAR.—The term ‘fiscal year’
means any 12-month period ending on September 30
of a calendar year.
‘‘(c) PENALTIES.—
‘‘(1) AGAINST INDIVIDUALS.—
‘‘(A) APPLICABLE TO ALL FAMILIES.—A
State to which a grant is made under section
403 shall ensure that the amount of cash as-
sistance paid under the State program funded
under this part to a recipient of assistance
under the program who refuses to engage (with-
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in the meaning of subsection (a)(1)(C)(iii)) in
work activities required under this section shall
be less than the amount of cash assistance that
would otherwise be paid to the recipient under
the program, subject to such good cause and
other exceptions as the State may establish.
‘‘(B) APPLICABLE
TO
2-PARENT
FAMI-
LIES.—A State to which a grant is made under
section 403 shall reduce the amount of cash as-
sistance otherwise payable to a 2-parent family
for a month under the State program funded
under this part with respect to an adult in the
family who is not engaged (within the meaning
of subsection (a)(2)(B)(iii)) in work activities
for at least 35 hours per week during the
month, pro rata (or more, at the option of the
State) with respect to any period during the
month for which the adult is not so engaged.
‘‘(C) LIMITATION ON FEDERAL AUTHOR-
ITY.—No officer or employee of the Federal
Government may regulate the conduct of States
under this paragraph or enforce this paragraph
against any State.
‘‘(2) AGAINST STATES.—
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‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State to which a grant is made
under section 403 for a fiscal year has failed to
comply with subsection (a) for the fiscal year,
the Secretary shall reduce by not more than 5
percent the amount of the grant that would (in
the absence of this paragraph and subsections
(a)(1)(B) and (e) of section 403) be payable to
the State under section 403(a)(1)(A) for the
immediately succeeding fiscal year.
‘‘(B) PENALTY
BASED
ON
SEVERITY
OF
FAILURE.—The Secretary shall impose reduc-
tions under subparagraph (A) based on the de-
gree of noncompliance.
‘‘(d) RULE OF INTERPRETATION.—This section shall
not be construed to prohibit a State from offering recipi-
ents of assistance under the State program funded under
this part an opportunity to participate in an education or
training program, consistent with the requirements of this
section.
‘‘(e) RESEARCH.—The Secretary shall conduct re-
search on the costs and benefits of State activities under
this section.
‘‘(f) EVALUATION OF INNOVATIVE APPROACHES TO
EMPLOYING
RECIPIENTS
OF
ASSISTANCE.—The Sec-
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retary shall evaluate innovative approaches to employing
recipients of assistance under State programs funded
under this part.
‘‘(g) ANNUAL RANKING OF STATES AND REVIEW OF
MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—
‘‘(1) ANNUAL RANKING OF STATES.—The Sec-
retary shall rank the States to which grants are paid
under section 403 in the order of their success in
moving recipients of assistance under the State pro-
gram funded under this part into long-term private
sector jobs.
‘‘(2) ANNUAL
REVIEW
OF
MOST
AND
LEAST
SUCCESSFUL WORK PROGRAMS.—The Secretary shall
review the programs of the 3 States most recently
ranked highest under paragraph (1) and the 3
States most recently ranked lowest under paragraph
(1) that provide parents with work experience, as-
sistance in finding employment, and other work
preparation activities and support services to enable
the families of such parents to leave the program
and become self-sufficient.
‘‘(h) SENSE OF THE CONGRESS.—In complying with
this section, each State that operates a program funded
under this part is encouraged to assign the highest prior-
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ity to requiring families that include older preschool or
school-age children to be engaged in work activities.
‘‘(i) SENSE
OF
THE
CONGRESS
THAT
STATES
SHOULD
IMPOSE
CERTAIN
REQUIREMENTS
ON
NONCUSTODIAL, NONSUPPORTING MINOR PARENTS.—It
is the sense of the Congress that the States should require
noncustodial, nonsupporting parents who have not at-
tained 18 years of age to fulfill community work obliga-
tions and attend appropriate parenting or money manage-
ment classes after school.
‘‘SEC. 405. PROHIBITIONS.
‘‘(a) IN GENERAL.—
‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A
MINOR CHILD.—A State to which a grant is made
under section 403 may not use any part of the grant
to provide assistance to a family, unless the family
includes a minor child.
‘‘(2) CERTAIN
PAYMENTS
NOT
TO
BE
DIS-
REGARDED IN DETERMINING THE AMOUNT OF AS-
SISTANCE TO BE PROVIDED TO A FAMILY.—
‘‘(A) INCOME SECURITY PAYMENTS.—If a
State to which a grant is made under section
403 uses any part of the grant to provide as-
sistance for any individual who is receiving a
payment under a State plan for old-age assist-
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ance approved under section 2, a State program
funded under part B that provides cash pay-
ments for foster care, or the supplemental secu-
rity income program under title XVI (other
than service benefits provided through the use
of a grant made under part C of such title),
then the State may not disregard the payment
in determining the amount of assistance to be
provided to the family of which the individual is
a member under the State program funded
under this part.
‘‘(B) CERTAIN
SUPPORT
PAYMENTS.—A
State to which a grant is made under section
403 may not disregard an amount distributed
to a family under section 457(a)(1)(A) in deter-
mining the income of the family for purposes of
eligibility for assistance under the State pro-
gram funded under this part.
‘‘(3) NO ASSISTANCE FOR CERTAIN ALIENS.—
Notwithstanding section 403(c)(1), a State to which
a grant is made under section 403 may not use any
part of the grant to provide assistance for an indi-
vidual who is not a citizen or national of the United
States, except consistent with title IV of the Per-
sonal Responsibility Act of 1995.
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‘‘(4) NO
ASSISTANCE
FOR
OUT-OF-WEDLOCK
BIRTHS TO MINORS.—
‘‘(A) GENERAL RULE.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide cash benefits
for a child born out-of-wedlock to an individual
who has not attained 18 years of age, or for the
individual, until the individual attains such age.
‘‘(B) EXCEPTION FOR RAPE OR INCEST.—
Subparagraph (A) shall not apply with respect
to a child who is born as a result of rape or in-
cest.
‘‘(C) STATE OPTION.—Nothing in subpara-
graph (A) shall be construed to prohibit a State
from using funds provided by section 403 from
providing aid in the form of vouchers that may
be used only to pay for particular goods and
services specified by the State as suitable for
the care of the child such as diapers, clothing,
and school supplies.
‘‘(5) NO
ADDITIONAL
CASH
ASSISTANCE
FOR
CHILDREN BORN TO FAMILIES RECEIVING ASSIST-
ANCE.—
‘‘(A) GENERAL RULE.—A State to which a
grant is made under section 403 may not use
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any part of the grant to provide cash benefits
for a minor child who is born to—
‘‘(i) a recipient of benefits under the
program operated under this part; or
‘‘(ii) a person who received such bene-
fits at any time during the 10-month pe-
riod ending with the birth of the child.
‘‘(B) EXCEPTION
FOR
VOUCHERS.—Sub-
paragraph (A) shall not apply to vouchers
which are provided in lieu of cash benefits and
which may be used only to pay for particular
goods and services specified by the State as
suitable for the care of the child involved.
‘‘(C) EXCEPTION FOR RAPE OR INCEST.—
Subparagraph (A) shall not apply with respect
to a child who is born as a result of rape or in-
cest.
‘‘(6) NO
ASSISTANCE
FOR
MORE
THAN
YEARS.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide cash benefits
for the family of an individual who, after at-
taining 18 years of age, has received benefits
under the program operated under this part for
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60 months (whether or not consecutive) after
the effective date of this part, except as pro-
vided under subparagraph (B).
‘‘(B) HARDSHIP EXCEPTION.—
‘‘(i) IN GENERAL.—The State may ex-
empt a family from the application of sub-
paragraph (A) by reason of hardship.
‘‘(ii) LIMITATION.—The number of
families with respect to which an exemp-
tion made by a State under clause (i) is in
effect shall not exceed 10 percent of the
number of families to which the State is
providing assistance under the program op-
erated under this part.
‘‘(7) NO ASSISTANCE FOR FAMILIES NOT CO-
OPERATING
IN
PATERNITY
ESTABLISHMENT
OR
CHILD
SUPPORT.—Notwithstanding 
section
403(c)(1), a State to which a grant is made under
section 403 may not use any part of the grant to
provide assistance to a family that includes an indi-
vidual whom the agency responsible for administer-
ing the State plan approved under part D deter-
mines is not cooperating with the State in establish-
ing the paternity of any child of the individual, or
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in establishing, modifying, or enforcing a support
order with respect to such a child.
‘‘(8) NO ASSISTANCE FOR FAMILIES NOT AS-
SIGNING
SUPPORT
RIGHTS
TO
THE
STATE.—Not-
withstanding section 403(c)(1), a State to which a
grant is made under section 403 may not use any
part of the grant to provide assistance to a family
that includes an individual who has not assigned to
the State any rights the individual may have (on be-
half of the individual or of any other person for
whom the individual has applied for or is receiving
such assistance) to support from any other person
for any period for which the individual receives such
assistance.
‘‘(9) WITHHOLDING
OF
PORTION
OF
ASSIST-
ANCE
FOR
FAMILIES
WHICH
INCLUDE
A
CHILD
WHOSE PATERNITY IS NOT ESTABLISHED.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 may not fail
to—
‘‘(i) withhold assistance under the
State program funded under this part from
a family which includes a child whose pa-
ternity is not established, in an amount
equal to $50 or 15 percent of the amount
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of the amount of the assistance that would
(in the absence of this paragraph) be pro-
vided to the family with respect to the
child, whichever the State elects; or
‘‘(ii) provide to the family the total
amount of assistance so withheld once the
paternity of the child is established, if the
family is then eligible for such assistance.
‘‘(B) EXCEPTION FOR RAPE OR INCEST.—Sub-
paragraph (A) shall not apply with respect to a child
who is born as a result of rape or incest.
‘‘(10) DENIAL OF ASSISTANCE FOR 10 YEARS
TO A PERSON FOUND TO HAVE FRAUDULENTLY MIS-
REPRESENTED
RESIDENCE
IN
ORDER
TO
OBTAIN
BENEFITS IN 2 OR MORE STATES.—An individual
shall not be considered an eligible individual for the
purposes of this title during the 10-year period that
begins with the date the individual is found by a
State to have made, or is convicted in Federal or
State court of having made a fraudulent statement
or representation with respect to the place of resi-
dence of the person in order to receive benefits or
services simultaneously from 2 or more States under
programs that are funded under this part, title XIX,
or the Food Stamp Act of 1977, or benefits in 2 or
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more States under the supplemental security income
program under title XVI.
‘‘(11) DENIAL OF ASSISTANCE FOR FUGITIVE
FELONS
AND
PROBATION
AND
PAROLE
VIOLA-
TORS.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide assistance to
any individual who is—
‘‘(i) fleeing to avoid prosecution, or
custody or confinement after conviction,
under the laws of the place from which the
individual flees, for a crime, or an attempt
to commit a crime, which is a felony under
the laws of the place from which the indi-
vidual flees, or which, in the case of the
State of New Jersey, is a high mis-
demeanor under the laws of such State; or
‘‘(ii) violating a condition of probation
or parole imposed under Federal or State
law.
‘‘(B) EXCHANGE OF INFORMATION WITH
LAW ENFORCEMENT AGENCIES.—If a State to
which a grant is made under section 403 estab-
lishes safeguards against the use or disclosure
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of information about applicants or recipients of
assistance under the State program funded
under this part, the safeguards shall not pre-
vent the State agency administering the pro-
gram from furnishing a Federal, State, or local
law enforcement officer, upon the request of the
officer, with the current address of any recipi-
ent if the officer furnishes the agency with the
name of the recipient and notifies the agency
that—
(i) such recipient—
(I) is fleeing to avoid prosecution,
or custody or confinement after con-
viction, under the laws of the place
from which the recipient flees, for a
crime, or an attempt to commit a
crime, which is a felony under the
laws of the place from which the re-
cipient flees, or which, in the case of
the State of New Jersey, is a high
misdemeanor under the laws of such
State;
(II) is violating a condition of
probation or parole imposed under
Federal or State law; or
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(III) has information that is nec-
essary for the officer to conduct the
official duties of the officer; and
(ii) the location or apprehension of the
recipient is within such official duties.
‘‘(12) DENIAL
OF
ASSISTANCE
FOR
MINOR
CHILDREN WHO ARE ABSENT FROM THE HOME FOR
A SIGNIFICANT PERIOD.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide assistance for
a minor child who has been, or is expected by
a parent (or other caretaker relative) of the
child to be, absent from the home for a period
of 45 consecutive days or, at the option of the
State, such period of not less than 30 and not
more than 90 consecutive days as the State
may provide for in the State plan submitted
pursuant to section 402.
‘‘(B) STATE
AUTHORITY
TO
ESTABLISH
GOOD CAUSE EXCEPTIONS.—The State may es-
tablish such good cause exceptions to subpara-
graph (A) as the State considers appropriate if
such exceptions are provided for in the State
plan submitted pursuant to section 402.
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‘‘(C) DENIAL
OF
ASSISTANCE
FOR
REL-
ATIVE WHO FAILS TO NOTIFY STATE AGENCY
OF ABSENCE OF CHILD.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide assistance for
an individual who is a parent (or other care-
taker relative) of a minor child and who fails to
notify the agency administering the State pro-
gram funded under this part, of the absence of
the minor child from the home for the period
specified in or provided for under subparagraph
(A), by the end of the 5-day period that begins
with the date that it becomes clear to the par-
ent (or relative) that the minor child will be ab-
sent for such period so specified or provided
for.
‘‘(b) MINOR CHILD DEFINED.—As used in sub-
section (a), the term ‘minor child’ means an individual—
‘‘(1) who has not attained 18 years of age; or
‘‘(2) who—
‘‘(A) has not attained 19 years of age; and
‘‘(B) is a full-time student in a secondary
school (or in the equivalent level of vocational
or technical training).
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‘‘SEC. 406. DATA COLLECTION AND REPORTING.
‘‘(a) IN GENERAL.—Each State to which a grant is
made under section 403 for a fiscal year shall, not later
than 6 months after the end of the fiscal year, transmit
to the Secretary the following aggregate information on
families to which assistance was provided during the fiscal
year under the State program operated under this part
or an equivalent State program:
‘‘(1) The number of adults receiving such as-
sistance.
‘‘(2) The number of children receiving such as-
sistance and the average age of the children.
‘‘(3) The employment status of such adults, and
the average earnings of employed adults receiving
such assistance.
‘‘(4) The number of 1-parent families in which
the parent is a widow or widower, is divorced, is sep-
arated, or has never married.
‘‘(5) The age, race, and educational attainment
of the adults receiving such assistance.
‘‘(6) The average assistance provided to the
families under the program.
‘‘(7) Whether, at the time of application for as-
sistance under the program, the families or any
member of the families receives benefits under any
of the following:
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‘‘(A) Any housing program.
‘‘(B) The food stamp program under the
Food Stamp Act of 1977.
‘‘(C) The Head Start programs carried out
under the Head Start Act.
‘‘(D) Any job training program.
‘‘(8) The number of months, since the most re-
cent application for assistance under the program,
for which such assistance has been provided to the
families.
‘‘(9) The total number of months for which as-
sistance has been provided to the families under the
program.
‘‘(10) Any other data necessary to indicate
whether the State is in compliance with the plan
most recently submitted by the State pursuant to
section 402.
‘‘(11) The components of any program carried
out by the State to provide employment and training
activities in order to comply with section 404, and
the average monthly number of adults in each such
component.
‘‘(12) The number of part-time job placements
and the number of full-time job placements made
through the program referred to in paragraph (11),
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the number of cases with reduced assistance, and
the number of cases closed due to employment.
‘‘(b) AUTHORITY OF STATES TO USE ESTIMATES.—
A State may comply with the requirement to provide pre-
cise numerical information described in subsection (a) by
submitting an estimate which is obtained through the use
of scientifically acceptable sampling methods.
‘‘(c) REPORT
ON USE
OF FEDERAL FUNDS
TO
COVER ADMINISTRATIVE COSTS AND OVERHEAD.—The
report required by subsection (a) for a fiscal year shall
include a statement of the percentage of the funds paid
to the State under this part for the fiscal year that are
used to cover administrative costs or overhead.
‘‘(d) REPORT ON STATE EXPENDITURES ON PRO-
GRAMS FOR NEEDY FAMILIES.—The report required by
subsection (a) for a fiscal year shall include a statement
of the total amount expended by the State during the fis-
cal year on programs for needy families.
‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI-
PATING IN WORK ACTIVITIES.—The report required by
subsection (a) for a fiscal year shall include the number
of noncustodial parents in the State who participated in
work activities (as defined in section 404(b)(1)) during the
fiscal year.
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‘‘SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUD-
IES.
‘‘(a) RESEARCH.—The Secretary may conduct re-
search on the effects, costs, and benefits of State pro-
grams funded under this part.
‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA-
TIVE APPROACHES
TO EMPLOYING WELFARE RECIPI-
ENTS.—The Secretary may assist States in developing,
and shall evaluate, innovative approaches to employing re-
cipients of cash assistance under programs funded under
this part. In performing such evaluations, the Secretary
shall, to the maximum extent feasible, use random assign-
ment to experimental and control groups.
‘‘(c) STUDIES OF WELFARE CASELOADS.—The Sec-
retary may conduct studies of the caseloads of States oper-
ating programs funded under this part.
‘‘(d) DISSEMINATION OF INFORMATION.—The Sec-
retary shall develop innovative methods of disseminating
information on any research, evaluations, and studies con-
ducted under this section, including the facilitation of the
sharing of information and best practices among States
and localities through the use of computers and other
technologies.
‘‘SEC. 408. STUDY BY THE CENSUS BUREAU.
‘‘(a) IN GENERAL.—The Bureau of the Census shall
expand the Survey of Income and Program Participation
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as necessary to obtain such information as will enable in-
terested persons to evaluate the impact of the amendments
made by title I of the Personal Responsibility Act of 1995
on a random national sample of recipients of assistance
under State programs funded under this part and (as ap-
propriate) other low income families, and in doing so, shall
pay particular attention to the issues of out-of-wedlock
birth, welfare dependency, the beginning and end of wel-
fare spells, and the causes of repeat welfare spells.
‘‘(b) APPROPRIATION.—Out of any money in the
Treasury of the United States not otherwise appropriated,
the Secretary of the Treasury shall pay to the Bureau of
the Census $10,000,000 for each of fiscal years 1996,
1997, 1998, 1999, and 2000 to carry out subsection (a).’’.
SEC. 102. REPORT ON DATA PROCESSING.
(a) IN GENERAL.—Within 6 months after the date
of the enactment of this Act, the Secretary of Health and
Human Services shall prepare and submit to the Congress
a report on—
(1) the status of the automated data processing
systems operated by the States to assist manage-
ment in the administration of State programs under
part A of title IV of the Social Security Act (wheth-
er in effect before or after October 1, 1995); and
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(2) what would be required to establish a sys-
tem capable of—
(A) tracking participants in public pro-
grams over time; and
(B) checking case records of the States to
determine whether individuals are participating
in public programs of 2 or more States.
(b) PREFERRED CONTENTS.—The report required by
subsection (a) should include—
(1) a plan for building on the automated data
processing systems of the States to establish a sys-
tem with the capabilities described in subsection
(a)(2); and
(2) an estimate of the amount of time required
to establish such a system and of the cost of estab-
lishing such a system.
SEC. 103. TRANSFERS.
(a) CHILD SUPPORT REVIEW PENALTIES.—
(1) TRANSFER OF PROVISION.—Section 403 of
the Social Security Act, as added by the amendment
made by section 101 of this Act, is amended by add-
ing at the end subsection (h) of section 403, as in
effect immediately before the effective date of this
title.
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(2) 
CONFORMING
AMENDMENT.—Section
403(h)(3) of such Act, as in effect pursuant to para-
graph (1) of this subsection, is amended by striking
‘‘, section 402(a)(27),’’.
(b) ASSISTANT SECRETARY FOR FAMILY SUPPORT.—
(1) REDESIGNATION
OF
PROVISION.—Section
417 of such Act (42 U.S.C. 617), as in effect imme-
diately before the effective date of this title, is
amended by striking the following:
‘‘ASSISTANT SECRETARY FOR FAMILY SUPPORT
‘‘SEC. 417.’’
and inserting the following:
‘‘SEC. 409. ASSISTANT SECRETARY FOR FAMILY SUPPORT.’’.
(2) TRANSFER OF PROVISION.—Part A of title
IV of such Act, as added by the amendment made
by section 101 of this Act, is amended by adding at
the end the section amended by paragraph (1) of
this subsection.
(3) CONFORMING
AMENDMENT.—Section 409
of such Act, as added by paragraph (2) of this sub-
section is amended by striking ‘‘, part D, and part
F’’ and inserting ‘‘and part D’’.
SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL
SECURITY ACT.
(a) AMENDMENTS TO TITLE II.—
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(1) Section 205(c)(2)(C)(vi) of the Social Secu-
rity Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesig-
nated by section 321(a)(9)(B) of the Social Security
Independence and Program Improvements Act of
1994, is amended—
(A) by inserting ‘‘an agency administering
a program funded under part A of title IV or’’
before ‘‘an agency operating’’; and
(B) by striking ‘‘A or D of title IV of this
Act’’ and inserting ‘‘D of such title’’.
(2) Section 228(d)(1) of such Act (42 U.S.C.
428(d)(1)) is amended by inserting ‘‘under a State
program funded under’’ before ‘‘part A of title IV’’.
(b) AMENDMENTS TO PART D OF TITLE IV.—
(1) Section 451 of such Act (42 U.S.C. 651) is
amended by striking ‘‘aid’’ and inserting ‘‘assistance
under a State program funded’’.
(2) Section 452(a)(10)(C) of such Act (42
U.S.C. 652(a)(10)(C)) is amended—
(A) by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance
under a State program funded under part A’’;
and
(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’; and
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(C) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘pursuant to section 405(a)(8)’’.
(3) Section 452(a)(10)(F) of such Act (42
U.S.C. 652(a)(10)(F)) is amended—
(A) by striking ‘‘aid under a State plan ap-
proved’’ and inserting ‘‘assistance under a State
program funded’’; and
(B) by striking ‘‘in accordance with the
standards 
referred 
to 
in 
section
402(a)(26)(B)(ii)’’ 
and 
inserting 
‘‘by 
the
State’’.
(4) Section 452(b) of such Act (42 U.S.C.
652(b)) is amended in the last sentence by striking
‘‘plan approved under part A’’ and inserting ‘‘pro-
gram funded under part A’’.
(5) Section 452(d)(3)(B)(i) of such Act (42
U.S.C. 652(d)(3)(B)(i)) is amended by striking
‘‘1115(c)’’ and inserting ‘‘1115(b)’’.
(6) Section 452(g)(2)(A)(ii)(I) of such Act (42
U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking
‘‘aid is being paid under the State’s plan approved’’
and inserting ‘‘assistance is being provided under
the State program funded under’’.
(7) Section 452(g)(2)(A) of such Act (42
U.S.C. 652(g)(2)(A)) is amended in the matter fol-
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lowing clause (iii) by striking ‘‘aid was being paid
under the State’s plan approved’’ and inserting ‘‘as-
sistance was being provided under the State pro-
gram funded’’.
(8) Section 452(g)(2) of such Act (42 U.S.C.
652(g)(2)) is amended in the matter following sub-
paragraph (B)—
(A) by striking ‘‘who is a dependent child
by reason of the death of a parent’’ and insert-
ing ‘‘with respect to whom assistance is being
provided under the State program funded under
part A’’; and
(B) by inserting ‘‘by the State agency ad-
ministering the State plan approved under this
part’’ after ‘‘found’’;
(C) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘pursuant to section 405(a)(8)’’;
and
(D) by striking ‘‘administering the plan
under part E determines (as provided in section
454(4)(B))’’ and inserting ‘‘determines’’.
(9) Section 452(h) of such Act (42 U.S.C.
652(h)) is amended by striking ‘‘under section
402(a)(26)’’ and inserting ‘‘pursuant to section
405(a)(8)’’.
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(10) Section 454(5) of such Act (42 U.S.C.
654(5)) is amended—
(A) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘pursuant to section 405(a)(8)’’;
and
(B) by striking ‘‘except that this para-
graph shall not apply to such payments for any
month following the first month in which the
amount collected is sufficient to make such
family ineligible for assistance under the State
plan approved under part A;’’.
(11) Section 454(6)(D) of such Act (42 U.S.C.
654(6)(D)) is amended by striking ‘‘aid under a
State plan approved’’ and inserting ‘‘assistance
under a State program funded’’.
(12) Section 456 of such Act (42 U.S.C. 656)
is amended by striking ‘‘under section 402(a)(26)’’
each place such term appears and inserting ‘‘pursu-
ant to section 405(a)(8)’’.
(13) Section 466(a)(3)(B) of such Act (42
U.S.C. 666(a)(3)(B)) is amended by striking
‘‘402(a)(26)’’ and inserting ‘‘405(a)(8)’’.
(14) Section 466(b)(2) of such Act (42 U.S.C.
666(b)(2)) is amended by striking ‘‘aid’’ and insert-
ing ‘‘assistance under a State program funded’’.
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(c) REPEAL OF PART F OF TITLE IV.—Part F of
title IV of such Act (42 U.S.C. 681–687) is hereby re-
pealed.
(d) AMENDMENT TO TITLE X.—Section 1002(a)(7)
of such Act (42 U.S.C. 1202(a)(7)) is amended by striking
‘‘aid to families with dependent children under the State
plan approved under section 402 of this Act’’ and insert-
ing ‘‘assistance under a State program funded under part
A of title IV’’.
(e) AMENDMENTS TO TITLE XI.—
(1) Section 1108 of such Act (42 U.S.C. 1308)
is amended—
(A) by striking subsections (a), (b), (d),
and (e); and
(B) by striking ‘‘(c)’’.
(2) Section 1109 of such Act (42 U.S.C. 1309)
is amended by striking ‘‘or part A of title IV,’’.
(3) Section 1115(a) of such Act (42 U.S.C.
1315(a)) is amended—
(A) in the matter preceding paragraph (1),
by striking ‘‘A or’’;
(B) in paragraph (1), by striking ‘‘402,’’;
and
(C) in paragraph (2), by striking ‘‘403,’’.
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(4) Section 1116 of such Act (42 U.S.C. 1316)
is amended—
(A) in each of subsections (a)(1), (b), and
(d), by striking ‘‘or part A of title IV,’’; and
(B) in subsection (a)(3), by striking
‘‘404,’’.
(5) Section 1118 of such Act (42 U.S.C. 1318)
is amended—
(A) by striking ‘‘403(a),’’;
(B) by striking ‘‘and part A of title IV,’’;
and
(C) by striking ‘‘, and shall, in the case of
American Samoa, mean 75 per centum with re-
spect to part A of title IV’’.
(6) Section 1119 of such Act (42 U.S.C. 1319)
is amended—
(A) by striking ‘‘or part A of title IV’’; and
(B) by striking ‘‘403(a),’’.
(7) Section 1133(a) of such Act (42 U.S.C.
1320b–3(a)) is amended by striking ‘‘or part A of
title IV,’’.
(8) Section 1136 of such Act (42 U.S.C.
1320b–6) is hereby repealed.
(9) Section 1137 of such Act (42 U.S.C.
1320b–7) is amended—
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(A) in subsection (b), by striking para-
graph (1) and inserting the following:
‘‘(1) any State program funded under part A of
title IV of this Act;’’; and
(B) in subsection (d)(1)(B)—
(i) by striking ‘‘In this subsection—’’
and all that follows through ‘‘(ii) in’’ and
inserting ‘‘In this subsection, in’’; and
(ii) by redesignating subclauses (I),
(II), and (III) as clauses (i), (ii), and (iii);
and
(iii) by moving such redesignated ma-
terial 2 ems to the left.
(f) 
AMENDMENT
TO
TITLE
XIV.—Section
1402(a)(7) of such Act (42 U.S.C. 1352(a)(7)) is amend-
ed by striking ‘‘aid to families with dependent children
under the State plan approved under section 402 of this
Act’’ and inserting ‘‘assistance under a State program
funded under part A of title IV’’.
(g) AMENDMENT TO TITLE XVI AS IN EFFECT WITH
RESPECT TO THE TERRITORIES.—Section 1602(a)(11) of
such Act, as in effect without regard to the amendment
made by section 301 of the Social Security Amendments
of 1972, (42 U.S.C. 1382 note) is amended by striking
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‘‘aid under the State plan approved’’ and inserting ‘‘assist-
ance under a State program funded’’.
(h) AMENDMENT TO TITLE XVI AS IN EFFECT WITH
RESPECT
TO
THE STATES.—Section 1611(c)(5)(A) of
such Act (42 U.S.C. 1382(c)(5)(A)) is amended to read
as follows: ‘‘(A) a State program funded under part A of
title IV,’’.
SEC. 105. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemploy-
ment Compensation Amendments of 1976 (42 U.S.C.
603a) is amended to read as follows:
‘‘(b) PROVISION
FOR
REIMBURSEMENT
OF
EX-
PENSES.—For purposes of section 455 of the Social Secu-
rity Act, expenses incurred to reimburse State employment
offices for furnishing information requested of such of-
fices—
‘‘(1) pursuant to the third sentence of section
3(a) of the Act entitled ‘An Act to provide for the
establishment of a national employment system and
for cooperation with the States in the promotion of
such system, and for other purposes’, approved June
6, 1933 (29 U.S.C. 49b(a)),
‘‘(2) by a State or local agency charged with
the duty of carrying a State plan for child support
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approved under part D of title IV of the Social Se-
curity Act,
shall be considered to constitute expenses incurred in the
administration of such State plan.’’.
(b) Paragraph (9) of section 51(d) of the Internal
Revenue Code of 1986 is amended by striking all that fol-
lows ‘‘agency as’’ and inserting ‘‘being eligible for financial
assistance under part A of title IV of the Social Security
Act and as having continually received such financial as-
sistance during the 90-day period which immediately pre-
cedes the date on which such individual is hired by the
employer.’’
(c) Section 9121 of the Omnibus Budget Reconcili-
ation Act of 1987 (42 U.S.C. 602 note) is hereby repealed.
(d) Section 9122 of the Omnibus Budget Reconcili-
ation Act of 1987 (42 U.S.C. 602 note) is hereby repealed.
(e) Section 221 of the Housing and Urban-Rural Re-
covery Act of 1983 (42 U.S.C. 602 note), relating to treat-
ment under AFDC of certain rental payments for federally
assisted housing, is hereby repealed.
(f) Section 159 of the Tax Equity and Fiscal Respon-
sibility Act of 1982 (42 U.S.C. 602 note) is hereby re-
pealed.
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(g) Section 202(d) of the Social Security Amend-
ments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is here-
by repealed.
(h) Section 233 of the Social Security Act Amend-
ments of 1994 (42 U.S.C. 602 note) is hereby repealed.
(i) Section 903 of the Stewart B. McKinney Home-
less Assistance Amendments Act of 1988 (42 U.S.C.
11381 note), relating to demonstration projects to reduce
number of AFDC families in welfare hotels, is amended—
(1) in subsection (a), by striking ‘‘aid to fami-
lies with dependent children under a State plan ap-
proved’’ and inserting ‘‘assistance under a State pro-
gram funded’’; and
(2) in subsection (c), by striking ‘‘aid to fami-
lies with dependent children in the State under a
State plan approved’’ and inserting ‘‘assistance in
the State under a State program funded’’.
SEC. 106. CONTINUED APPLICATION OF CURRENT STAND-
ARDS UNDER MEDICAID PROGRAM.
(a) IN GENERAL.—Title XIX of the Social Security
Act is amended—
(1) in section 1931, by inserting ‘‘subject to
section 1931(a),’’ after ‘‘under this title,’’ and by re-
designating such section as section 1932; and
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(2) by inserting after section 1930 the following
new section:
‘‘CONTINUED APPLICATION OF AFDC STANDARDS
‘‘SEC. 1931. (a) For purposes of applying this title
on and after October 1, 1995, with respect to a State—
‘‘(1) except as provided in paragraph (2), any
reference in this title (or other provision of law in
relation to the operation of this title) to a provision
of part A of title IV of this Act, or a State plan
under such part, shall be considered a reference to
such provision or plan as in effect as of March 7,
1995, with respect to the State and eligibility for
medical assistance under this title shall be deter-
mined as if such provision or plan (as in effect as
of such date) had remained in effect on and after
October 1, 1995; and
‘‘(2) any reference in section 1902(a)(5) or
1902(a)(55) to a State plan approved under part A
of title IV shall be deemed a reference to a State
program funded under such part (as in effect on and
after October 1, 1995).
‘‘(b) In the case of a waiver of a provision of part
A of title IV in effect with respect to a State as of March
7, 1995, if the waiver affects eligibility of individuals for
medical assistance under this title, such waiver may con-
tinue to be applied, at the option of the State, in relation
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to this title after the date the waiver would otherwise
expire.’’
(b) PLAN AMENDMENT.—Section 1902(a) of such
Act (42 U.S.C. 1396a(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(61),
(2) by striking the period at the end of para-
graph (62) and inserting ‘‘; and’’, and
(3) by inserting after paragraph (62) the fol-
lowing new paragraph:
‘‘(63) provide for continuing to administer eligi-
bility standards with respect to individuals who are
(or seek to be) eligible for medical assistance based
on the application of section 1931.’’.
(c) 
CONFORMING
AMENDMENTS.—(1) 
Section
1902(c) of such Act (42 U.S.C. 1396a(c)) is amended by
striking ‘‘if—’’ and all that follows and inserting the fol-
lowing: ‘‘if the State requires individuals described in sub-
section (l)(1) to apply for assistance under the State pro-
gram funded under part A of title IV as a condition of
applying for or receiving medical assistance under this
title.’’.
(2) Section 1903(i) of such Act (42 U.S.C. 1396b(i))
is amended by striking paragraph (9).
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(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to medical assistance furnished for
calendar quarters beginning on or after October 1, 1995.
SEC. 107. EFFECTIVE DATE.
(a) IN GENERAL.—Except as otherwise provided in
this title, this title and the amendments made by this title
shall take effect on October 1, 1995.
(b) DELAYED APPLICABILITY
OF AUTHORITY TO
TEMPORARILY REDUCE ASSISTANCE FOR CERTAIN FAMI-
LIES WHICH INCLUDE A CHILD WHOSE PATERNITY IS
NOT ESTABLISHED.—Section 405(a)(9) of the Social Se-
curity Act, as added by the amendment made by section
101 of this Act, shall not apply to individuals who, imme-
diately before the effective date of this title, are recipients
of aid under a State plan approved under part A of title
IV of the Social Security Act, until the end of the 1-year
(or, at the option of the State, 2-year) period that begins
with such effective date.
(c) TRANSITION RULE.—The amendments made by
this title shall not apply with respect to—
(1) powers, duties, functions, rights, claims,
penalties, or obligations applicable to aid or services
provided before the effective date of this title under
the provisions amended; and
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(2) administrative actions and proceedings com-
menced before such date, or authorized before such
date to be commenced, under such provisions.
TITLE II—CHILD PROTECTION
BLOCK GRANT PROGRAM
SEC. 201. ESTABLISHMENT OF PROGRAM.
Part B of title IV of the Social Security Act (42
U.S.C. 620–635) is amended to read as follows:
‘‘PART B—BLOCK GRANTS TO STATES FOR THE
PROTECTION OF CHILDREN
‘‘SEC. 421. PURPOSE.
‘‘The purpose of this part is to enable eligible States
to carry out a child protection program to—
‘‘(1) identify and assist families at risk of abus-
ing or neglecting their children;
‘‘(2) operate a system for receiving reports of
abuse or neglect of children;
‘‘(3) investigate families reported to abuse or
neglect their children;
‘‘(4) provide support, treatment, and family
preservation services to families which are, or are at
risk of, abusing or neglecting their children;
‘‘(5) support children who must be removed
from or who cannot live with their families;
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‘‘(6) make timely decisions about permanent liv-
ing arrangements for children who must be removed
from or who cannot live with their families; and
‘‘(7) provide for continuing evaluation and im-
provement of child protection laws, regulations, and
services.
‘‘SEC. 422. ELIGIBLE STATES.
‘‘(a) IN GENERAL.—As used in this part, the term
‘eligible State’ means, with respect to a fiscal year, a State
that, during the 3-year period immediately preceding the
fiscal year, has submitted to the Secretary a plan that in-
cludes the following:
‘‘(1) OUTLINE
OF
CHILD
PROTECTION
PRO-
GRAM.—A written document that outlines the activi-
ties the State intends to conduct to achieve the pur-
pose of this part, including the procedures to be
used for—
‘‘(A) receiving reports of child abuse or ne-
glect;
‘‘(B) investigating such reports;
‘‘(C) protecting children in families in
which child abuse or neglect is found to have
occurred;
‘‘(D) removing children from dangerous
settings;
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‘‘(E) protecting children in foster care;
‘‘(F) promoting timely adoptions;
‘‘(G) protecting the rights of families,
using adult relatives as the preferred placement
for children separated from their parents if
such relatives meet all State child protection
standards;
‘‘(H) preventing child abuse and neglect;
and
‘‘(I) establishing and responding to citizen
review panels under section 425.
‘‘(2) CERTIFICATION OF STATE LAW REQUIRING
THE REPORTING OF CHILD ABUSE AND NEGLECT.—
A certification that the State has in effect laws that
require public officials and other professionals to re-
port actual or suspected instances of child abuse or
neglect.
‘‘(3) CERTIFICATION OF STATE PROGRAM TO
INVESTIGATE CHILD ABUSE AND NEGLECT CASES.—
A certification that the State has in effect a pro-
gram to investigate child abuse and neglect cases.
‘‘(4) CERTIFICATION
OF
STATE
PROCEDURES
FOR REMOVAL AND PLACEMENT OF ABUSED OR NE-
GLECTED CHILDREN.—A certification that the State
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has in effect procedures for removal from families
and placement of abused or neglected children.
‘‘(5) CERTIFICATION
OF
STATE
PROCEDURES
FOR DEVELOPING AND REVIEWING WRITTEN PLANS
FOR PERMANENT PLACEMENT OF REMOVED CHIL-
DREN.—A certification that the State has in effect
procedures for ensuring that a written plan is pre-
pared for children who have been removed from their
families, which specifies the goal for achieving a per-
manent placement for the child in a timely fashion,
for ensuring that the written plan is reviewed every
6 months, and for ensuring that information about
such children is collected regularly and recorded in
case records, and a description of such procedures.
‘‘(6) CERTIFICATION
THAT
THE
STATE
WILL
CONTINUE
TO
HONOR
ADOPTION
ASSISTANCE
AGREEMENTS.—A certification that the State will
honor any adoption assistance agreement (as defined
in section 475(3), as in effect immediately before the
effective date of this part) entered into by an agency
of the State, that is in effect as of such effective
date.
‘‘(7) CERTIFICATION OF STATE PROGRAM TO
PROVIDE INDEPENDENT LIVING SERVICES.—A cer-
tification that the State has in effect a program to
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provide independent living services to individuals in
the child protection program of the State who have
attained 16 years of age but have not attained 20
(or, at the option of the State, 22) years of age, and
who do not have a family to which to be returned
for assistance in making the transition to self-suffi-
cient adulthood.
‘‘(8) CERTIFICATION
OF
STATE
PROCEDURES
TO RESPOND TO REPORTING OF MEDICAL NEGLECT
OF DISABLED INFANTS.—
‘‘(A) IN
GENERAL.—A certification that
the State has in place for the purpose of re-
sponding to the reporting of medical neglect of
infants (including instances of withholding of
medically indicated treatment from disabled in-
fants with life-threatening conditions), proce-
dures or programs, or both (within the State
child protective services system), to provide
for—
‘‘(i) coordination and consultation
with individuals designated by and within
appropriate health-care facilities;
‘‘(ii) prompt notification by individ-
uals designated by and within appropriate
health-care facilities of cases of suspected
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medical neglect (including instances of
withholding of medically indicated treat-
ment from disabled infants with life-threat-
ening conditions); and
‘‘(iii) authority, under State law, for
the State child protective service to pursue
any legal remedies, including the authority
to initiate legal proceedings in a court of
competent jurisdiction, as may be nec-
essary to prevent the withholding of medi-
cally indicated treatment from disabled in-
fants with life-threatening conditions.
‘‘(B) WITHHOLDING OF MEDICALLY INDI-
CATED TREATMENT.—As used in subparagraph
(A), the term ‘withholding of medically indi-
cated treatment’ means the failure to respond
to the infant’s life-threatening conditions by
providing treatment (including appropriate nu-
trition, hydration, and medication) which, in the
treating physician’s or physicians’ reasonable
medical judgment, will be most likely to be ef-
fective in ameliorating or correcting all such
conditions, except that such term does not in-
clude the failure to provide treatment (other
than appropriate nutrition, hydration, or medi-
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cation) to an infant when, in the treating physi-
cian’s or physicians’ reasonable medical judg-
ment—
‘‘(i) the infant is chronically and irre-
versibly comatose;
‘‘(ii) the provision of such treatment
would—
‘‘(I) merely prolong dying;
‘‘(II) not be effective in amelio-
rating or correcting all of the infant’s
life-threatening conditions; or
‘‘(III) otherwise be futile in
terms of the survival of the infant; or
‘‘(iii) the provision of such treatment
would be virtually futile in terms of the
survival of the infant and the treatment it-
self under such circumstances would be in-
humane.
‘‘(9) IDENTIFICATION
OF
CHILD
PROTECTION
GOALS.—The quantitative goals of the State child
protection program.
‘‘(b) DETERMINATIONS.—The Secretary shall deter-
mine whether a plan submitted pursuant to subsection (a)
contains the material required by subsection (a). The Sec-
retary may not require a State to include in such a plan
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any material not described in subsection (a), and may not
review the adequacy of State procedures. The Secretary
may not require a State to alter its child protection law
regarding determination of the adequacy, type and timing
of health care (whether medical, non-medical or spiritual).
‘‘SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.
‘‘(a) ENTITLEMENT.—
‘‘(1) IN GENERAL.—Each eligible State shall be
entitled to receive from the Secretary for each fiscal
year specified in subsection (b)(1) a grant in an
amount equal to the State share of the child protec-
tion amount for the fiscal year.
‘‘(2) ADDITIONAL GRANT.—
‘‘(A) IN GENERAL.—In addition to a grant
under paragraph (1) of this subsection, the Sec-
retary shall pay to each eligible State for each
fiscal year specified in subsection (b)(1) an
amount equal to the State share of the amount
(if any) appropriated pursuant to subparagraph
(B) of this paragraph for the fiscal year.
‘‘(B) LIMITATION ON AUTHORIZATION OF
APPROPRIATIONS.—For grants under subpara-
graph (A), there are authorized to be appro-
priated to the Secretary an amount not to ex-
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ceed $486,000,000 for each fiscal year specified
in subsection (b)(1).
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) CHILD PROTECTION AMOUNT.—The term
‘child protection amount’ means—
‘‘(A) $3,930,000,000 for fiscal year 1996;
‘‘(B) $4,195,000,000 for fiscal year 1997;
‘‘(C) $4,507,000,000 for fiscal year 1998;
‘‘(D) $4,767,000,000 for fiscal year 1999;
and
‘‘(E) $5,071,000,000 for fiscal year 2000.
‘‘(2) STATE SHARE.—
‘‘(A) IN
GENERAL.—The term ‘State
share’ means the qualified child protection ex-
penses of the State divided by the sum of the
qualified child protection expenses of all of the
States.
‘‘(B) QUALIFIED CHILD PROTECTION EX-
PENSES.—The term ‘qualified child protection
expenses’ means, with respect to a State the
greater of—
‘‘(i) 1⁄3 of the total amount of obliga-
tions to the State under the provisions of
law specified in subparagraph (B) for fis-
cal years 1992, 1993, and 1994; or
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‘‘(ii) the total amount of obligations to
the State under such provisions of law for
fiscal year 1994.
‘‘(C) PROVISIONS OF LAW.—The provisions
of law specified in this subparagraph are the
following (as in effect immediately before the
effective date of this part):
‘‘(i) Section 474(a) (other than sub-
paragraphs (C) and (D) of paragraph (3))
of this Act.
‘‘(ii) Section 304 of the Family Vio-
lence Prevention and Services Act.
‘‘(iii) Section 107(a) of the Child
Abuse Prevention and Treatment Act.
‘‘(iv) Section 201(d) of the Child
Abuse Prevention and Treatment Act.
‘‘(v) Section 423 of this Act.
‘‘(3) STATE.—The term ‘State’ includes the
several States, the District of Columbia, the Com-
monwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa.
‘‘(c) USE OF GRANT.—
‘‘(1) IN GENERAL.—A State to which a grant
is made under this section may use the grant in any
manner that the State deems appropriate to accom-
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plish the purpose of this part, including setting up
abuse and neglect reporting systems, abuse and ne-
glect prevention, family preservation, foster care,
adoption, program administration, and training.
‘‘(2) AUTHORITY TO USE PORTION OF GRANT
FOR OTHER PURPOSES.—
‘‘(A) IN GENERAL.—A State may use not
more than 30 percent of the amount of the
grant made to the State under this section for
fiscal year 1998 or a succeeding fiscal year to
carry out a State program pursuant to any or
all of the following provisions of law:
‘‘(i) Part A of this title.
‘‘(ii) Title XX of this Act.
‘‘(iii) The Child Care and Develop-
ment Block Grant Act of 1990.
‘‘(iv) Any provision of law, enacted
into law during the 104th Congress, under
which grants are made to States for food
and nutrition or employment and training.
‘‘(B) APPLICABLE
RULES.—Any amount
paid to the State under this part that is used
to carry out a State program pursuant to a pro-
vision of law specified in subparagraph (A)
shall not be subject to the requirements of this
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part, but shall be subject to the requirements
that apply to Federal funds provided directly
under the provision of law to carry out the pro-
gram.
‘‘(3) TIMING OF EXPENDITURES.—A State to
which a grant is made under this section for a fiscal
year shall expend the total amount of the grant not
later than the end of the immediately succeeding fis-
cal year.
‘‘(4) RULE
OF
INTERPRETATION.—This part
shall not be interpreted to prohibit short- and long-
term foster care facilities operated for profit from
receiving funds provided under this part.
‘‘(d) TIMING OF PAYMENTS.—The Secretary shall
pay each eligible State the amount of the grant payable
to the State under this section in quarterly installments.
‘‘(e) PENALTIES.—
‘‘(1) FOR
USE
OF
GRANT
IN
VIOLATION
OF
THIS PART.—
‘‘(A) IN GENERAL.—If an audit conducted
pursuant to chapter 75 of title 31, United
States Code, finds that an amount paid to a
State under this section for a fiscal year has
been used in violation of this part, then the
Secretary shall reduce the amount of the grant
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that would (in the absence of this subsection)
be payable to the State under this section for
the immediately succeeding fiscal year by the
amount so used.
‘‘(B) LIMITATION.—In carrying out sub-
paragraph (A), the Secretary shall not reduce
any quarterly payment by more than 25
percent.
‘‘(C) CARRYFORWARD
OF
UNRECOVERED
PENALTY.—To the extent that subparagraph
(B) prevents the Secretary from recovering dur-
ing a fiscal year the full amount of a penalty
imposed on a State under subparagraph (A) for
a prior fiscal year, the Secretary shall apply
subparagraph (A) to the grant otherwise pay-
able to the State under this section for the im-
mediately succeeding fiscal year.
‘‘(2) FOR FAILURE TO MAINTAIN EFFORT.—If
an audit conducted pursuant to chapter 75 of title
31, United States Code, finds that the amount ex-
pended by a State (other than from amounts pro-
vided by the Federal Government) during fiscal year
1996 or 1997 to carry out the State program funded
under this part is less than the total amount ex-
pended by the State (other than from amounts pro-
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vided by the Federal Government) during fiscal year
1995 under parts B and E of this title, then the
Secretary shall reduce the amount of the grant that
would (in the absence of this subsection) be payable
to the State under this section for the immediately
succeeding fiscal year by the amount of the dif-
ference.
‘‘(3) FOR FAILURE TO SUBMIT REQUIRED RE-
PORT.—
‘‘(A) IN
GENERAL.—The Secretary shall
reduce by 3 percent the amount of the grant
that would (in the absence of this subsection)
be payable to a State under this section for a
fiscal year if the Secretary determines that the
State has not submitted the report required by
section 427(b) for the immediately preceding
fiscal year, within 6 months after the end of the
immediately preceding fiscal year.
‘‘(B) RESCISSION OF PENALTY.—The Sec-
retary shall rescind a penalty imposed on a
State under subparagraph (A) with respect to a
report for a fiscal year if the State submits the
report before the end of the immediately suc-
ceeding fiscal year.
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‘‘(f) LIMITATION ON FEDERAL AUTHORITY.—Except
as expressly provided in this part, the Secretary may not
regulate the conduct of States under this part or enforce
any provision of this part.
‘‘SEC. 424. CHILD PROTECTION STANDARDS.
‘‘(a) IN GENERAL.—Each State to which a grant is
made under section 423 shall operate a child protection
program in accorance with the following standards in
order to assure the protection of children:
‘‘(1) The primary standard by which a State
child welfare system shall be judged is the protection
of children.
‘‘(2) Each State shall investigate reports of
abuse and neglect promptly.
‘‘(3) Children removed from their homes shall
have a permanency plan and a dispositional hearing
by a court or a court-appointed body within 3
months after a fact-finding hearing.
‘‘(4) All child protection cases in which the
child is placed outside the home shall be reviewed
every 6 months unless the child is in a long-term
placement.
‘‘(b) PLACEMENT
OF
CHILDREN
WITH
REL-
ATIVES.—A State to which a grant is made under this
part may consider—
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‘‘(1) establishing a new type of foster care
placement, which could be considered a permanent
placement, for children who are separated from their
parents (in this subsection referred to as ‘kinship
care’) under which—
‘‘(A) adult relatives of such children would
be the preferred placement option if such rel-
atives meet all relevant child protection stand-
ards established by the State;
‘‘(B) the State would make a needs-based
payment and provide supportive services, as ap-
propriate, with respect to children placed in a
kinship care arrangement; and
‘‘(2) in placing children for adoption, giving
preference to adult relatives who meet applicable
adoption standards (including those acting as foster
parents of such children).
‘‘SEC. 425. CITIZEN REVIEW PANELS.
‘‘(a) ESTABLISHMENT.—Each State to which a grant
is made under section 423 shall establish at least 3 citizen
review panels.
‘‘(b) COMPOSITION.—Each panel established under
subsection (a) shall be broadly representative of the com-
munity from which drawn.
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‘‘(c) FREQUENCY OF MEETINGS.—Each panel estab-
lished under subsection (a) shall meet not less frequently
than quarterly.
‘‘(d) DUTIES.—
‘‘(1) IN
GENERAL.—Each panel established
under subsection (a) shall, by examining specific
cases, determine the extent to which the State and
local agencies responsible for carrying out activities
under this part are doing so in accordance with the
State plan, with the child protection standards set
forth in section 424, and with any other criteria that
the panel considers important to ensure the protec-
tion of children.
‘‘(2) CONFIDENTIALITY.—The members and
staff of any panel established under subsection (a)
shall not disclose to any person or government any
information about any specific child protection case
with respect to which the panel is provided informa-
tion.
‘‘(e) STATE ASSISTANCE.—Each State that estab-
lishes a panel under subsection (a) shall afford the panel
access to any information on any case that the panel de-
sires to review, and shall provide the panel with staff as-
sistance in performing its duties.
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‘‘(f) REPORTS.—Each panel established under sub-
section (a) shall make a public report of its activities after
each meeting.
‘‘SEC. 426. CLEARINGHOUSE AND HOTLINE ON MISSING
AND RUNAWAY CHILDREN.
‘‘(a) IN GENERAL.—The Attorney General of the
United States shall establish and operate by contract a
clearinghouse of information on children who are missing
or have run away from home, including a 24-hour toll-
free telephone hotline which may be contacted for informa-
tion on such children.
‘‘(b) LIMITATION
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—To carry out subsection (a), there are au-
thorized to be appropriated to the Attorney General of the
United States not to exceed $7,000,000 for each fiscal
year.
‘‘SEC. 427. DATA COLLECTION AND REPORTING.
‘‘(a) ANNUAL REPORTS ON STATE CHILD WELFARE
GOALS.—On the date that is 3 years after the effective
date of this part and annually thereafter, each State to
which a grant is made under section 423 shall submit to
the Secretary a report that contains quantitative informa-
tion on the extent to which the State is making progress
toward achieving the goals of the State child protection
program.
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‘‘(b) ANNUAL STATE DATA REPORTS.—Each State
to which a grant is made under section 423 shall annually
submit to the Secretary of Health and Human Services
a report that includes the following:
‘‘(1) The number of children who were reported
to the State during the year as abused or neglected.
‘‘(2) Of the number of children described in
paragraph (1), the number with respect to whom
such reports were substantiated.
‘‘(3) Of the number of children described in
paragraph (2)—
‘‘(A) the number that did not receive serv-
ices during the year under the State program
funded under this part;
‘‘(B) the number that received services
during the year under the State program fund-
ed under this part or an equivalent State pro-
gram; and
‘‘(C) the number that were removed from
their families during the year.
‘‘(4) The number of families that received pre-
ventive services from the State during the year.
‘‘(5) The number of children who entered foster
care under the responsibility of the State during the
year.
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‘‘(6) The number of children in foster care
under the responsibility of the State who exited from
foster care during the year.
‘‘(7) The types of foster care placements made
by the State during the year, and the average
monthly number of children in each type of place-
ment.
‘‘(8) The average length of the foster care
placements made by the State during the year.
‘‘(9) The age, ethnicity, gender, and family in-
come of the children placed in foster care under the
responsibility of the State during the year.
‘‘(10) The number of children in foster care
under the responsibility of the State with respect to
whom the State has the goal of adoption.
‘‘(11) The number of children in foster care
under the responsibility of the State who were freed
for adoption during the year.
‘‘(12) The number of children in foster care
under the responsibility of the State whose adoptions
were finalized during the year.
‘‘(13) The number of disrupted adoptions in the
State during the year.
‘‘(14) 
Quantitative 
measurements 
showing
whether the State is making progress toward the
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child protection goals identified by the State under
section 422(a)(9).
‘‘(15) The number of infants abandoned in the
State during the year, and the number of such in-
fants who were legally adopted during the year and
the length of time between the discovery of the aban-
donment and such adoption.
‘‘(16) The number of children who died during
the year while in foster care under the responsibility
of the State.
‘‘(17) The number of deaths in the State dur-
ing the year resulting from child abuse or neglect.
‘‘(18) The number of children served by the
independent living program of the State.
‘‘(19) Any other information which the Sec-
retary and a majority of the States agree is appro-
priate to collect for purposes of this part.
‘‘(20) The response of the State to the findings
and recommendations of the citizen review panels es-
tablished by the State pursuant to section 425.
‘‘(c) AUTHORITY OF STATES TO USE ESTIMATES.—
A State may comply with a requirement to provide precise
numerical information described in subsection (b) by sub-
mitting an estimate which is obtained through the use of
scientifically acceptable sampling methods.
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‘‘(d) ANNUAL REPORT BY THE SECRETARY.—Within
6 months after the end of each fiscal year, the Secretary
shall prepare a report based on information provided by
the States for the fiscal year pursuant to subsection (b),
and shall make the report and such information available
to the Congress and the public.
‘‘(e) SCOPE OF STATE PROGRAM FUNDED UNDER
THIS PART.—As used in subsection (b), the term ‘State
program funded under this part’ includes any equivalent
State program.
‘‘SEC. 428. RESEARCH AND TRAINING.
‘‘(a) IN GENERAL.—The Secretary shall conduct re-
search and training in child welfare.
‘‘(b) LIMITATION
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—To carry out subsection (a), there are au-
thorized to be appropriated to the Secretary not to exceed
$10,000,000 for each fiscal year.
‘‘SEC. 429. NATIONAL RANDOM SAMPLE STUDY OF CHILD
WELFARE.
‘‘(a) IN GENERAL.—The Secretary shall conduct a
national study based on random samples of children who
are at risk of child abuse or neglect, or are determined
by States to have been abused or neglected.
‘‘(b) REQUIREMENTS.—The study required by sub-
section (a) shall—
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‘‘(1) have a longitudinal component; and
‘‘(2) yield data reliable at the State level for as
many States as the Secretary determines is feasible.
‘‘(c) PREFERRED CONTENTS.—In conducting the
study required by subsection (a), the Secretary should—
‘‘(1) collect data on the child protection pro-
grams of different small States or (different groups
of such States) in different years to yield an occa-
sional picture of the child protection programs of
such States;
‘‘(2) carefully consider selecting the sample
from cases of confirmed abuse or neglect; and
‘‘(3) follow each case for several years while ob-
taining information on, among other things—
‘‘(A) the type of abuse or neglect involved;
‘‘(B) the frequency of contact with State
or local agencies;
‘‘(C) whether the child involved has been
separated from the family, and, if so, under
what circumstances;
‘‘(D) the number, type, and characteristics
of out-of-home placements of the child; and
‘‘(E) the average duration of each place-
ment.
‘‘(d) REPORTS.—
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‘‘(1) IN
GENERAL.—From time to time, the
Secretary shall prepare reports summarizing the re-
sults of the study required by subsection (a), and
should include in such reports a comparison of the
results of the study with the information reported by
States under section 427.
‘‘(2) AVAILABILITY.—The Secretary shall make
available to the public any report prepared under
paragraph (1), in writing or in the form of an elec-
tronic data tape.
‘‘(3) AUTHORITY TO CHARGE FEE.—The Sec-
retary may charge and collect a fee for the furnish-
ing of reports under paragraph (2).
‘‘(e) FUNDING.—Out of any money in the Treasury
of the United States not otherwise appropriated, the Sec-
retary of the Treasury shall pay to the Secretary of Health
and Human Services $6,000,000 for each of fiscal years
1996 through 2000 to carry out this section.
‘‘SEC. 430. REMOVAL OF BARRIERS TO INTERETHNIC
ADOPTION.
‘‘(a) PURPOSE.—The purpose of this section is to de-
crease the length of time that children wait to be adopted
and to prevent discrimination in the placement of children
on the basis of race, color, or national origin.
‘‘(b) MULTIETHNIC PLACEMENTS.—
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‘‘(1) PROHIBITION.—A State or other entity
that receives funds from the Federal Government
and is involved in adoption or foster care placements
may not—
‘‘(A) deny to any person the opportunity to
become an adoptive or a foster parent, on the
basis of the race, color, or national origin of the
person, or of the child, involved; or
‘‘(B) delay or deny the placement of a
child for adoption or into foster care, or other-
wise discriminate in making a placement deci-
sion, on the basis of the race, color, or national
origin of the adoptive or foster parent, or the
child, involved.
‘‘(2) PENALTIES.—
‘‘(A) STATE
VIOLATORS.—A State that
violates paragraph (1) during a period shall
remit to the Secretary all funds that were paid
to the State under this part during the period.
‘‘(B) PRIVATE VIOLATORS.—Any other en-
tity that violates paragraph (1) during a period
shall remit to the Secretary all funds that were
paid to the entity during the period by a State
from funds provided under this part.
‘‘(3) PRIVATE CAUSE OF ACTION.—
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‘‘(A) IN GENERAL.—Any individual who is
aggrieved by a violation of paragraph (1) by a
State or other entity may bring an action seek-
ing relief in any United States district court.
‘‘(B) STATUTE OF LIMITATIONS.—An ac-
tion under this paragraph may not be brought
more than 2 years after the date the alleged
violation occurred.’’.
SEC. 202. CONFORMING AMENDMENTS.
(a) AMENDMENTS TO PART D OF TITLE IV OF THE
SOCIAL SECURITY ACT.—
(1) Section 452(a)(10)(C) of the Social Security
Act (42 U.S.C. 652(a)(10)(C)), as amended by sec-
tion 104(b)(2)(C) of this Act, is amended—
(A) by striking ‘‘(or foster care mainte-
nance payments under part E)’’ and inserting
‘‘or cash payments under a State program
funded under part B’’; and
(B) by striking ‘‘or 471(a)(17)’’.
(2) Section 452(g)(2)(A) of such Act (42
U.S.C. 652(g)(2)(A)) is amended—
(A) by striking ‘‘or E’’ the 1st place such
term appears and inserting ‘‘or benefits or serv-
ices are being provided under the State pro-
gram funded under part B’’; and
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(B) by striking ‘‘or E’’ the 2nd place such
term appears and inserting ‘‘or benefits or serv-
ices were being provided under the State pro-
gram funded under part B’’.
(3) Section 456(a)(1) of such Act (42 U.S.C.
656(a)(1)) is amended by striking ‘‘foster care main-
tenance payments’’ and inserting ‘‘benefits or serv-
ices under a State program funded under part B’’.
(4) Section 466(a)(3)(B) of such Act (42
U.S.C. 666(a)(3)(B)), as amended by section
104(b)(13) of this Act, is amended by striking ‘‘or
471(a)(17)’’.
(b) REPEAL OF PART E OF TITLE IV OF THE SOCIAL
SECURITY ACT.—Part E of title IV of such Act (42
U.S.C. 671–679) is hereby repealed.
(c) AMENDMENT TO TITLE XVI OF THE SOCIAL SE-
CURITY ACT
AS
IN EFFECT WITH RESPECT
TO
THE
STATES.—Section 1611(c)(5)(B) of such Act (42 U.S.C.
1382(c)(5)(B)) is amended to read as follows: ‘‘(B) the
State program funded under part B of title IV,’’.
(d) REPEAL OF SECTION 13712 OF THE OMNIBUS
BUDGET RECONCILIATION ACT OF 1993.—Section 13712
of the Omnibus Budget Reconciliation Act of 1993 (42
U.S.C. 670 note) is hereby repealed.
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(e) AMENDMENT TO SECTION 9442 OF THE OMNIBUS
BUDGET
RECONCILIATION
ACT
OF
1986.—Section
9442(4) of the Omnibus Budget Reconciliation Act of
1986 (42 U.S.C. 679a(4)) is amended by inserting ‘‘(as
in effect before October 1, 1995)’’ after ‘‘Act’’.
(f) REPEAL OF SECTION 553 OF THE HOWARD M.
METZENBAUM
MULTIETHNIC
PLACEMENT
ACT
OF
1994.—Section 553 of the Howard M. Metzenbaum
Multiethnic Placement Act of 1994 (42 U.S.C. 5115a; 108
Stat. 4056) is hereby repealed.
(g) REPEAL OF SUBTITLE C OF TITLE XVII OF THE
VIOLENT CRIME CONTROL AND LAW ENFORCEMENT ACT
OF 1994.—Subtitle C of title XVII of the Violent Crime
Control and Law Enforcement Act of 1994 is hereby re-
pealed.
SEC. 203. CONTINUED APPLICATION OF CURRENT STAND-
ARDS UNDER MEDICAID PROGRAM.
Section 1931 of the Social Security Act, as inserted
by section 106(a)(2) of this Act, is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘part A of’’, and
(B) by striking ‘‘under such part’’ and in-
serting ‘‘under a part of such title’’; and
(2) in subsection (b), by striking ‘‘part A of’’.
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SEC. 204. EFFECTIVE DATE.
(a) IN GENERAL.—This title and the amendments
made by this title shall take effect on October 1, 1995.
(b) TRANSITION RULE.—The amendments made by
this title shall not apply with respect to—
(1) powers, duties, functions, rights, claims,
penalties, or obligations applicable to aid or services
provided before the effective date of this title under
the provisions amended; and
(2) administrative actions and proceedings com-
menced before such date, or authorized before such
date to be commenced, under such provisions.
SEC. 205. SENSE OF THE CONGRESS REGARDING TIMELY
ADOPTION OF CHILDREN.
It is the sense of the Congress that—
(1) too many children who wish to be adopted
are spending inordinate amounts of time in foster
care;
(2) there is an urgent need for States to in-
crease the number of waiting children being adopted
in a timely and lawful manner;
(3) studies have shown that States spend an ex-
cess of $15,000 each year on each special needs
child in foster care, and would save significant
amounts of money if they offered incentives to fami-
lies to adopt special needs children;
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(4) States should allocate sufficient funds under
this title for adoption assistance and medical assist-
ance to encourage more families to adopt children
who otherwise would languish in the foster care sys-
tem for a period that many experts consider det-
rimental to their development;
(5) States should offer incentives for families
that adopt special needs children to make adoption
more affordable for middle-class families;
(6) when it is necessary for a State to remove
a child from the home of the child’s biological par-
ents, the State should strive—
(A) to provide the child with a single foster
care placement and a single coordinated case
team; and
(B) to conclude an adoption of the child,
when adoption is the goal of the child and the
State, within one year of the child’s placement
in foster care; and
(7) States should participate in local, regional,
or national programs to enable maximum visibility of
waiting children to potential parents. Such programs
should include a nationwide, interactive computer
network to disseminate information on children eligi-
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ble for adoption to help match them with families
around the country.
TITLE III—BLOCK GRANTS FOR
CHILD CARE AND FOR NUTRI-
TION ASSISTANCE
Subtitle A—Child Care Block
Grants
SEC. 301. AMENDMENTS TO THE CHILD CARE AND DEVEL-
OPMENT BLOCK GRANT ACT OF 1990.
(a) GOALS.—Section 658A of the Child Care and De-
velopment Block Grant Act of 1990 (42 U.S.C. 9801 note)
is amended—
(1) in the heading of such section by inserting
‘‘AND GOALS’’ after ‘‘TITLE’’,
(2) by inserting ‘‘(a) SHORT TITLE.—’’ before
‘‘This’’, and
(3) by adding at the end the following:
‘‘(b) GOALS.—The goals of this subchapter are—
‘‘(1) to allow each State maximum flexibility in
developing child care programs and policies that best
suit the needs of children and parents within such
State;
‘‘(2) to promote parental choice to empower
working parents to make their own decisions on the
child care that best suits their family’s needs;
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‘‘(3) to encourage States to provide consumer
education information to help parents make in-
formed choices about child care;
‘‘(4) to assist States to provide child care to
parents trying to achieve independence from public
assistance; and
‘‘(5) to assist States in implementing the
health, safety, licensing, and registration standards
established in State regulations.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
658B of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858) is amended to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this subchapter $2,093,000,000 for each of the fiscal
years 1996, 1997, 1998, 1999, and 2000.’’.
(c) LEAD ENTITY.—Section 658D of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858b) is amended—
(1) in the heading of such section by striking
‘‘AGENCY’’ inserting ‘‘ENTITY’’,
(2) in subsection (a) by inserting ‘‘or other en-
tity’’ after ‘‘State agency’’, and
(3) by striking ‘‘lead agency’’ each place it ap-
pears and inserting ‘‘lead entity’’.
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(d) APPLICATION AND PLAN.—Section 658E of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858c) is amended—
(1) in subsection (b)—
(A) by striking ‘‘implemented—’’ and all
that follows through ‘‘(2)’’ and inserting ‘‘im-
plemented’’, and
(B) by striking ‘‘for subsequent State
plans’’,
(2) in subsection (c)—
(A) in paragraph (1)—
(i) in the heading of such paragraph
by striking ‘‘AGENCY’’ and inserting ‘‘EN-
TITY’’, and
(ii) by striking ‘‘agency’’ and inserting
‘‘entity’’,
(B) in paragraph (2)—
(i) in subparagraph (A)—
(I) in clause (i) by striking ‘‘,
other than through assistance pro-
vided under paragraph (3)(C),’’ and
(II) by striking ‘‘except’’ and all
that follows through ‘‘1992’’, and in-
serting ‘‘and provide a detailed de-
scription of the procedures the State
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will implement to carry out the re-
quirements of this subparagraph’’,
(ii) in subparagraph (B)—
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’, and
(II) by inserting before the pe-
riod at the end ‘‘and provide a de-
tailed description of such procedures’’,
(iii) in subparagraph (C)—
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’, and
(II) by inserting before the pe-
riod at the end ‘‘and provide a de-
tailed description of how such record
is maintained and is made available’’,
(iv) by amending subparagraph (D) to
read as follows:
‘‘(D) CONSUMER
EDUCATION
INFORMA-
TION.—Provide assurances that the State will
collect and disseminate to parents of eligible
children and the general public, consumer edu-
cation information that will promote informed
child care choices.’’,
(v) in subparagraph (E)—
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(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’,
(II) in clause (i) by inserting
‘‘health, safety, and’’ after ‘‘comply
with all’’,
(III) in clause (i) by striking ‘‘;
and’’ at the end,
(IV) by striking ‘‘that—’’ and all
that follows through ‘‘(i)’’, and insert-
ing ‘‘that’’, and
(V) by striking ‘‘(ii)’’ and all that
follows through the end of such sub-
paragraph, and inserting ‘‘and provide
a detailed description of such require-
ments and of how such requirements
are effectively enforced.’’, and
(vi) by striking subparagraphs (F),
(G), (H), (I), and (J),
(C) in paragraph (3)—
(i) in subparagraph (A) by inserting
‘‘or as authorized by section 658T’’ before
the period at the end,
(ii) in subparagraph (B)—
(I) by striking ‘‘.—Subject to the
reservation contained in subparagraph
100
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(C), the’’ and inserting ‘‘AND RELAT-
ED ACTIVITIES.—The’’,
(II) by inserting ‘‘, other than
amounts transferred under section
658T,’’ after ‘‘subchapter’’,
(III) in clause (i) by striking ‘‘;
and’’ at the end and inserting a pe-
riod,
(IV) by striking ‘‘for—’’ and all
that 
follows 
through 
‘‘section
658E(c)(2)(A)’’ and inserting ‘‘for
child care services, activities that im-
prove the quality or availability of
such services, and any other activity
that the State deems appropriate to
realize any of the goals specified in
paragraphs (2) through (5) of section
658A(b)’’, and
(V) by striking clause (ii), and
(iii) by amending subparagraph (C) to
read as follows:
‘‘(C) LIMITATION
ON
ADMINISTRATIVE
COSTS.—Not more than 5 percent of the aggre-
gate amount of payments received under this
subchapter by a State in each fiscal year may
101
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be expended for administrative costs incurred
by such State to carry out all its functions and
duties under this subchapter.’’,
(D) in paragraph (4)(A)—
(i) by striking ‘‘provide assurances’’
and inserting ‘‘certify’’,
(ii) in the first sentence by inserting
‘‘and shall provide a summary of the facts
relied on by the State to determine that
such rates are sufficient to ensure such ac-
cess’’ before the period, and
(iii) by striking the last sentence, and
(E) by striking paragraph (5).
(e) LIMITATIONS ON STATE ALLOTMENTS—Section
658F(b)(2) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858d(b)(2)) is amended
by striking ‘‘referred to in section 658E(c)(2)(F)’’.
(f) REPEAL OF EARMARKED REQUIRED EXPENDI-
TURES.—The Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9801 note) is amended by striking
sections 658G and 658H.
(g) ADMINISTRATION AND ENFORCEMENT.—Section
658I(a) of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858g(a)) is amended—
102
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(1) in paragraph (1) by inserting ‘‘and’’ at the
end,
(2) by striking paragraph (2), and
(3) by redesignating paragraph (3) as para-
graph (2).
(h) PAYMENTS.—Section 658J(c) of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858h(c)) is amended—
(1) by striking ‘‘expended’’ and inserting ‘‘obli-
gated’’, and
(2) by striking ‘‘3 fiscal years’’ and inserting
‘‘fiscal year’’.
(i) ANNUAL REPORT AND AUDITS.—Section 658K of
the Child Care and Development Block Grant Act of 1990
(42 U.S.C. 9858i) is amended—
(1) in the heading of such section by inserting
‘‘, EVALUATION PLANS,’’ after ‘‘REPORT’’,
(2) in subsection (a)—
(A) by striking ‘‘, 1992’’ and inserting
‘‘following the end of the first fiscal year with
respect to which the amendments made by the
Personal Responsibility Act of 1995 apply’’,
(B) by amending paragraph (2) to read as
follows:
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‘‘(2) containing data on the manner in which
the child care needs of families in the State are
being fulfilled, including information concerning—
‘‘(A) the number and ages of children
being assisted with funds provided under this
subchapter;
‘‘(B) with respect to the families of such
children—
‘‘(i) the number of other children in
such families;
‘‘(ii) the number of such families that
include only 1 parent;
‘‘(iii) the number of such families that
include both parents;
‘‘(iv) the ages of the mothers of such
children;
‘‘(v) the ages of the fathers of such
children;
‘‘(vi) the sources of the economic re-
sources of such families, including the
amount of such resources obtained from
(and separately identified as being from)—
‘‘(I) employment, including self-
employment;
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‘‘(II) assistance received under
part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.);
‘‘(III) part B of title IV of the
Social Security Act (42 U.S.C. 621 et
seq.);
‘‘(IV) the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.);
‘‘(V) the National School Lunch
Act (42 U.S.C. 1751 et seq.);
‘‘(VI) assistance received under
title XVI of the Social Security Act
(42 U.S.C. 1381 et seq.);
‘‘(VII) assistance received under
title XIV of the Social Security Act
(42 U.S.C. 1351 et seq.);
‘‘(VIII) assistance received under
title XIX of the Social Security Act
(42 U.S.C. 1396 et seq.);
‘‘(IX) assistance received under
title XX of the Social Security Act
(42 U.S.C. 1397 et seq.); and
‘‘(X) any other source of eco-
nomic resources the Secretary deter-
mines to be appropriate;
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‘‘(C) the number of such providers sepa-
rately identified with respect to each type of
child care provider specified in section 658P(5)
that provided child care services obtained with
assistance provided under this subchapter;
‘‘(D) with respect to cost of such serv-
ices—
‘‘(i) the cost imposed by such provid-
ers to provide such services; and
‘‘(ii) the portion of such cost paid
with assistance provided under this sub-
chapter;
‘‘(E) with respect to consumer education
information described in section 658E(c)(2)(D)
provided by such State—
‘‘(i) the manner in which such infor-
mation was provided; and
‘‘(ii) the number of parents to whom
such information was provided; and
‘‘(F) with respect to complaints received by
such State regarding child care services ob-
tained with assistance provided under this sub-
chapter—
‘‘(i) the number of such complaints
that were found to have merit; and
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‘‘(ii) a description of the actions taken
by the State to correct the circumstances
on which such complaints were based.’’,
(C) by striking paragraphs (3), (4), (5),
and (6) and inserting the following:
‘‘(3) containing evidence demonstrating that the
State 
satisfied 
the 
requirements 
of 
section
658E(c)(2)(F); and
‘‘(4) identifying each State program operated
under a provision of law specified in section 658T to
which the State transferred funds under the author-
ity of such section, specifying the amount of funds
so transferred to such program, and containing a
justification for so transferring such amount;’’, and
(3) in subsection (b)—
(A) in paragraph (1) by striking ‘‘a appli-
cation’’ and inserting ‘‘an application’’,
(B) in paragraph (2) by striking ‘‘any
agency administering activities that receive’’
and inserting ‘‘the State that receives’’, and
(C) in paragraph (4) by striking ‘‘entitles’’
and inserting ‘‘entitled’’, and
(4) by redesignating subsection (b) as sub-
section (c), and
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(5) by inserting after subsection (a) the follow-
ing:
‘‘(b) STATE EVALUATION PLAN AND EVALUATION
RESULTS.—
‘‘(1) EVALUATION PLAN.—In the first report
submitted under subsection (a) after the date of the
enactment of the Personal Responsibility Act of
1995, and in the report for each alternating 1-year
period thereafter, the State shall include a plan the
State intends to carry out in the 1-year period sub-
sequent to the period for which such report is sub-
mitted, to evaluate the extent to which the State has
realized each of the goals specified in paragraphs (2)
through (5) of section 658A(b). The State shall in-
clude in such plan a description of the types of data
and other information the State will collect to deter-
mine whether the State has realized such goals.
‘‘(2) EVALUATION RESULTS.—In the second re-
port submitted under subsection (a) after the date
of the enactment of the Personal Responsibility Act
of 1995, and in the report for each alternating 1-
year period thereafter, the State shall include a sum-
mary of the results of an evaluation carried out
under the evaluation plan contained in the report
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submitted under subsection (a) for the preceding 1-
year period.’’.
(j) REPORT BY SECRETARY.—Section 658L of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858j) is amended—
(1) by striking ‘‘, 1993, and annually’’ and in-
serting ‘‘following the end of the second fiscal year
with respect to which the amendments made by the
Personal Responsibility Act of 1995 apply, and bien-
nially’’,
(2) by striking ‘‘Committee on Education and
Labor’’ and inserting ‘‘Speaker’’,
(3) by striking ‘‘Committee on Labor and
Human Resources’’ and inserting ‘‘President pro
tempore’’, and
(4) by striking the last sentence.
(k) REALLOTMENTS.—Section 658O of the Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858m) is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘POSSESSIONS’’ and insert-
ing ‘‘POSSESSIONS’’,
(B) by inserting ‘‘and’’ after ‘‘States,’’,
and
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(C) by striking ‘‘, and the Trust Territory
of the Pacific Islands’’,
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) STATE ALLOTMENT.—From the amount appro-
priated under section 658B for each fiscal year remaining
after reservations under subsection (a), the Secretary shall
allot to each State (excluding Guam, American Samoa, the
Virgin Islands of the United States, and the Common-
wealth of the Northern Mariana Islands) an amount that
bears the same ratio to the amount so appropriated for
such fiscal year as the aggregate of the amounts received
by the State under—
‘‘(1) this subchapter for fiscal year 1994;
‘‘(2) section 403 of the Social Security Act,
with respect to expenditures by the State for child
care under section 402(g)(1) of such Act during fis-
cal year 1994; and
‘‘(3) section 403(n) of the Social Security Act
for fiscal year 1994;
bears to the aggregate of the amounts received by all the
States (excluding Guam, American Samoa, the Virgin Is-
lands of the United States, and the Commonwealth of the
Northern Mariana Islands) under paragraphs (1), (2), and
(3).’’,
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(3) in subsection (c)—
(A) in paragraph (2)(A) by striking ‘‘agen-
cy’’ and inserting ‘‘entity’’, and
(B) in paragraph (5) by striking ‘‘our’’
and inserting ‘‘out’’,
(4) by striking subsection (e), and
(5) by redesignating subsection (f) as sub-
section (e).
(l) DEFINITIONS.—Section 658P of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858n) is amended—
(1) in paragraph (5)(A)—
(A) in clause (i) by striking ‘‘and’’ at the
end and inserting ‘‘or’’,
(B) by striking ‘‘that—’’ and all that fol-
lows through ‘‘(i)’’, and inserting ‘‘that’’, and
(C) by striking clause (ii),
(2) by amending paragraph (8) to read as fol-
lows:
‘‘(8) LEAD
ENTITY.—The term ‘lead entity’
means the State agency or other entity designated
under section 658B(a).’’,
(3) by striking paragraphs (3), (10), and (12),
(4) by inserting after paragraph (2) the follow-
ing:
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‘‘(3) CHILD CARE SERVICES.—The term ‘child
care services’ means services that constitute physical
care of a child and may include services that are de-
signed to enhance the educational, social, cultural,
emotional, and recreational development of a child
but that are not intended to serve as a substitute for
compulsory educational services.’’,
(5) in paragraph (13)—
(A) by inserting ‘‘or’’ after ‘‘Samoa,’’, and
(B) by striking ‘‘, and the Trust Territory
of the Pacific Islands’’, and
(6) by redesignating paragraphs (11), (13), and
(14) as paragraphs (10), (11), and (12), respec-
tively.
(m) AUTHORITY TO TRANSFER FUNDS.—The Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.) is amended by inserting after section
658S the following:
‘‘SEC. 658T. TRANSFER OF FUNDS.
‘‘(a) AUTHORITY.—Of the aggregate amount of pay-
ments received under this subchapter by a State in each
fiscal year, the State may transfer not more than 20 per-
cent for use by the State to carry out State programs
under 1 or more of the following provisions of law:
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‘‘(1) Part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.).
‘‘(2) Part B of title IV of the Social Security
Act (42 U.S.C. 621 et seq.).
‘‘(3) The Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
‘‘(4) The National School Lunch Act (42
U.S.C. 1751 et seq.).
‘‘(5) Title XX of the Social Security Act (42
U.S.C. 1397 et seq.).
‘‘(b) 
REQUIREMENTS
APPLICABLE
TO
FUNDS
TRANSFERRED.—Funds transferred under subsection (a)
to carry out a State program operated under a provision
of law specified in such subsection shall not be subject to
the requirements of this subchapter, but shall be subject
to the same requirements that apply to Federal funds pro-
vided directly under such provision of law to carry out
such program.’’.
SEC. 302. REPEAL OF CHILD CARE ASSISTANCE AUTHOR-
IZED BY ACTS OTHER THAN THE SOCIAL SE-
CURITY ACT.
(a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP
ASSISTANCE ACT OF 1985.—Title VI of the Human Serv-
ices Reauthorization Act of 1986 (42 U.S.C. 10901–
10905) is repealed.
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(b) STATE
DEPENDENT
CARE
DEVELOPMENT
GRANTS ACT.—Subchapter E of chapter 8 of subtitle A
of title VI of the Omnibus Budget Reconciliation Act of
1981 (42 U.S.C. 9871–9877) is repealed.
(c) PROGRAMS OF NATIONAL SIGNIFICANCE.—Title
X of the Elementary and Secondary Education Act of
1965, as amended by Public Law 103–382 (108 Stat.
3809 et seq.), is amended—
(1) in section 10413(a) by striking paragraph
(4),
(2) in section 10963(b)(2) by striking subpara-
graph (G), and
(3) in section 10974(a)(6) by striking subpara-
graph (G).
(d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION
CENTERS.—Section 9205 of the Native Hawaiian Edu-
cation Act (Public Law 103–382; 108 Stat. 3794) is re-
pealed.
Subtitle B—Family and School-
Based Nutrition Block Grants
CHAPTER 1—FAMILY NUTRITION BLOCK
GRANT PROGRAM
SEC. 321. AMENDMENT TO CHILD NUTRITION ACT OF 1966.
The Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.) is amended to read as follows:
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‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
‘‘(a) SHORT TITLE.—This Act may be cited as the
‘Child Nutrition Act of 1966’.
‘‘(b) TABLE OF CONTENTS.—The table of contents
is as follows:
‘‘Sec. 1. Short title; table of contents.
‘‘Sec. 2. Authorization.
‘‘Sec. 3. Allotment.
‘‘Sec. 4. Application.
‘‘Sec. 5. Use of amounts.
‘‘Sec. 6. Reports.
‘‘Sec. 7. Penalties.
‘‘Sec. 8. Model nutrition standards for food assistance for pregnant,
postpartum, and breastfeeding women, infants and children.
‘‘Sec. 9. Authorization of appropriations.
‘‘Sec. 10. Definitions.
‘‘SEC. 2. AUTHORIZATION.
‘‘(a) IN GENERAL.—In the case of each State that
in accordance with section 4 submits to the Secretary of
Agriculture an application for a fiscal year, the Secretary
shall provide a grant for the year to the State for the pur-
pose of achieving the goals described in subsection (b).
The grant shall consist of the allotment determined for
the State under section 3.
‘‘(b) GOALS.—The goals of this Act are—
‘‘(1) to provide nutritional risk assessment, food
assistance based on such risk assessment, and nutri-
tion education and counseling to economically dis-
advantaged pregnant women, postpartum women,
breastfeeding women, infants, and young children
who are determined to be at nutritional risk;
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‘‘(2) to provide nutritional risk assessments of
such women in order to provide food assistance and
nutrition education which meets their specific needs;
‘‘(3) to provide nutrition education to such
women in order to increase their awareness of the
types of foods which should be consumed to main-
tain good health;
‘‘(4) to provide food assistance, including nutri-
tious meal supplements, to such women in order to
reduce incidences of low-birthweight babies and ba-
bies born with birth defects as a result of nutritional
deficiencies;
‘‘(5) to provide food assistance, including nutri-
tious meal supplements, to such women, infants, and
young children in order to ensure their future good
health;
‘‘(6) to ensure that such women, infants, and
children are referred to other health services, includ-
ing routine pediatric and obstetric care, when nec-
essary;
‘‘(7) to ensure that children from economically
disadvantaged families in day care facilities, family
day care homes, homeless shelters, settlement
houses, recreational centers, Head Start centers,
Even Start programs and child care facilities for
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children with disabilities receive nutritious meals,
supplements, and low-cost milk; and
‘‘(8) to provide summer food service programs
to meet the nutritional needs of children from eco-
nomically disadvantaged families during months
when school is not in session.
‘‘(c) TIMING OF PAYMENTS.—The Secretary shall
provide payments under a grant under this Act to States
on a quarterly basis.
‘‘SEC. 3. ALLOTMENT.
‘‘The Secretary shall allot the amount appropriated
to carry out this Act for a fiscal year among the States
as follows:
‘‘(1) FIRST FISCAL YEAR.—
‘‘(A) IN GENERAL.—With respect to the
first fiscal year for which the Secretary provides
grants to States under this Act, the amount al-
lotted to each State shall bear the same propor-
tion to such amount appropriated as the aggre-
gate of the amounts described in subparagraph
(B) that were received by each such State
under the provisions of law described in such
subparagraph (as such provisions of law were in
effect on the day before the date of the enact-
ment of the Personal Responsibility Act of
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1995) for the preceding fiscal year bears to the
aggregate of the amounts described in subpara-
graph (B) that were received by all such States
under such provisions of law for such preceding
fiscal year.
‘‘(B) 
AMOUNTS
DESCRIBED.—The
amounts described in this subparagraph are the
following:
‘‘(i) The amount received under the
special supplemental nutrition program for
women, infants, and children under section
17 of this Act (42 U.S.C. 1786).
‘‘(ii) The amount received under the
homeless children nutrition program estab-
lished under section 17B of the National
School Lunch Act (42 U.S.C. 1766b).
‘‘(iii) 87.5 percent of the sum of the
amounts received under the following pro-
grams:
‘‘(I) The child and adult care
food program under section 17 of the
National 
School 
Lunch 
Act 
(42
U.S.C. 1766), except for subsection
(o) of such section.
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‘‘(II) The summer food service
program 
for 
children 
established
under section 13 of the National
School Lunch Act (42 U.S.C. 1761).
‘‘(III) The special milk program
established under section 3 of this Act
(42 U.S.C. 1772).
‘‘(2) SECOND FISCAL YEAR.—With respect to
the second fiscal year for which the Secretary pro-
vides grants to States under this Act—
‘‘(A) 95 percent of such amount appro-
priated shall be allotted among the States by al-
lotting to each State an amount that bears the
same proportion to such amount appropriated
as the amount allotted to each such State from
a grant under this Act for the preceding fiscal
year bears to the aggregate of the amounts al-
lotted to all such States from grants under this
Act for such preceding fiscal year; and
‘‘(B) 5 percent of such amount appro-
priated shall be allotted among the States by al-
lotting to each State an amount that bears the
same proportion to such amount appropriated
as the relative number of individuals receiving
assistance during the 1-year period ending on
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June 30 of the preceding fiscal year in such
State from amounts received from a grant
under this Act for such preceding fiscal year
bears to the total number of individuals receiv-
ing assistance in all States from amounts re-
ceived from grants under this Act for the pre-
ceding fiscal year.
‘‘(3) THIRD
AND
FOURTH
FISCAL
YEARS.—
With respect to each of the third and fourth fiscal
years for which the Secretary provides grants to
States under this Act—
‘‘(A) 90 percent of such amount appro-
priated shall be allotted among the States by al-
lotting to each State an amount determined in
accordance with the formula described in para-
graph (2)(A); and
‘‘(B) 10 percent of such amount appro-
priated shall be allotted among the States by al-
lotting to each State an amount determined in
accordance with the formula described in para-
graph (2)(B).
‘‘(4) FIFTH FISCAL YEAR.—With respect to the
fifth fiscal year for which the Secretary provides
grants to States under this Act—
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‘‘(A) 85 percent of such amount appro-
priated shall be allotted among the States by al-
lotting to each State an amount determined in
accordance with the formula described in para-
graph (2)(A); and
‘‘(B) 15 percent of such amount appro-
priated shall be allotted among the States by al-
lotting to each State an amount determined in
accordance with the formula described in para-
graph (2)(B).
‘‘SEC. 4. APPLICATION.
‘‘The Secretary may provide a grant under this Act
to a State for a fiscal year only if the State submits to
the Secretary an application containing only—
‘‘(1) an agreement that the State will use
amounts received from such grant in accordance
with section 5;
‘‘(2) except as provided in paragraph (3), an
agreement that the State will set minimum nutri-
tional requirements for food assistance provided
under this Act based on the most recent tested nu-
tritional research available, except that—
‘‘(A) such requirements shall not be con-
strued to prohibit the substitution of foods to
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accommodate the medical or other special die-
tary needs of individual students; and
‘‘(B) such requirements shall, at a mini-
mum, be based on—
‘‘(i) the weekly average of the nutrient
content of school lunches; or
‘‘(ii) such other standards as the
State may prescribe;
‘‘(3) an agreement that the State, with respect
to the provision of food assistance to economically
disadvantaged pregnant women, postpartum women,
breastfeeding women, infants, and young children,
shall—
‘‘(A) implement the minimum nutritional
requirements described in paragraph (2) for
such food assistance; or
‘‘(B) implement the model nutrition stand-
ards developed under section 8 for such food as-
sistance;
‘‘(4) an agreement that the State will take such
reasonable steps as the State deems necessary to re-
strict the use and disclosure of information about in-
dividuals and families receiving assistance under this
Act;
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‘‘(5) an agreement that the State will use not
more than 5 percent of the amount of such grant for
administrative costs incurred to provide assistance
under this Act, except that costs associated with the
nutritional risk assessment of individuals described
in section 5(a)(1) and costs associated with nutrition
education and counseling provided to such individ-
uals shall not be considered to be administrative
costs; and
‘‘(6) an agreement that the State will submit to
the Secretary a report in accordance with section 6.
‘‘SEC. 5. USE OF AMOUNTS.
‘‘(a) IN GENERAL.—The Secretary may provide a
grant under this Act to a State only if the State agrees
that it will use all amounts received from such grant—
‘‘(1) subject to subsection (b), to provide nutri-
tional risk assessment, food assistance based on such
risk assessment, and nutrition education and coun-
seling to economically disadvantaged pregnant
women, postpartum women, breastfeeding women,
infants, and young children who are determined to
be at nutritional risk;
‘‘(2) to provide milk in nonprofit nursery
schools, child care centers, settlement houses, sum-
mer camps, and similar institutions devoted to the
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care and training of children, to children from eco-
nomically disadvantaged families;
‘‘(3) to provide food service programs in institu-
tions and family day care homes providing child care
to children from economically disadvantaged fami-
lies;
‘‘(4) to provide summer food service programs
carried out by nonprofit food authorities, local gov-
ernments, nonprofit higher education institutions
participating in the National Youth Sports Program,
and residential nonprofit summer camps to children
from economically disadvantaged families; and
‘‘(5) to provide nutritious meals to pre-school
age homeless children in shelters and other facilities
serving the homeless population.
‘‘(b) ADDITIONAL REQUIREMENTS WITH RESPECT
TO ASSISTANCE
FOR PREGNANT, POSTPARTUM, AND
BREASTFEEDING WOMEN, INFANTS, AND CHILDREN.—
‘‘(1) MINIMUM AMOUNT OF ASSISTANCE.—The
State shall ensure that not less than 80 percent of
the amount of the grant is used to provide nutri-
tional risk assessment, food assistance based on such
nutritional risk assessment, and nutrition education
and counseling to economically disadvantaged preg-
nant women, postpartum women, breastfeeding
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women, infants, and young children under sub-
section (a)(1).
‘‘(2) COST CONTAINMENT MEASURES REGARD-
ING PROCUREMENT OF INFANT FORMULA.—
‘‘(A) IN GENERAL.—The State shall, with
respect to the provision of food assistance to
economically disadvantaged pregnant women,
postpartum women, breastfeeding women, in-
fants, and young children under subsection
(a)(1), establish and carry out a cost contain-
ment system for the procurement of infant for-
mula.
‘‘(B) USE OF AMOUNTS RESULTING FROM
SAVINGS.—The State shall use amounts avail-
able to the State as result of savings in costs
to the State from the implementation of the
cost containment system described in subpara-
graph (A) for the purpose of providing the as-
sistance described in paragraphs (1) through
(5) of subsection (a).
‘‘(C) ANNUAL REPORTS.—The State shall
submit to the Secretary for each fiscal year a
report containing—
‘‘(i) a description of the cost contain-
ment system for infant formula imple-
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mented by the State in accordance with
subparagraph (A) for such fiscal year; and
‘‘(ii) the estimated amount of savings
in costs derived by the State in providing
food assistance described in such subpara-
graph under such cost containment system
for such fiscal year as compared to the
amount of such savings derived by the
State under the cost containment system
for the preceding fiscal year, where appro-
priate.
‘‘(3) ASSISTANCE
FOR
MEMBERS
OF
THE
ARMED
FORCES
AND
THEIR
DEPENDENTS.—The
State shall ensure that assistance described in sub-
section (a)(1) is provided to members of the Armed
Forces and dependents of such members (regardless
of the State of residence of such members or de-
pendents) who meet the requirements of such sub-
section on an equitable basis with assistance pro-
vided to all other individuals under such subsection
in such State.
‘‘(c) ADDITIONAL REQUIREMENT WITH RESPECT TO
CHILD
CARE
ASSISTANCE
ON
MILITARY
INSTALLA-
TIONS.—
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‘‘(1) IN
GENERAL.—To the extent consistent
with the number of children who are receiving assist-
ance under child care programs established and car-
ried out on military installations in such State by
the Department of Defense, the State, after timely
and appropriate consultation with representatives of
such programs, shall provide assistance to such pro-
grams for such children (regardless of the State of
residence of such children) in accordance with sub-
section (a)(3) on an equitable basis with assistance
provided in accordance with such subsection to all
other child care programs carried out in such State.
‘‘(2) LIMITATION.—In providing assistance to a
child care program established and carried out on a
military installation under paragraph (1), a State
shall not require that such program be licensed
under State law if such program is licensed by the
Department of Defense.
‘‘(d) AUTHORITY TO USE AMOUNTS
FOR OTHER
PURPOSES.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
and (3), a State may use not more than 20 percent
of amounts received from a grant under this Act for
a fiscal year to carry out a State program pursuant
to any or all of the following provisions of law:
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‘‘(6) any other information which can be rea-
sonably required by the Secretary.
‘‘SEC. 7. PENALTIES.
‘‘(a) PENALTY FOR USE OF AMOUNTS IN VIOLATION
OF THIS ACT.—
‘‘(1) IN GENERAL.—The Secretary shall reduce
the amounts otherwise payable to a State under a
grant under this Act by any amount paid to the
State under this Act which an audit conducted pur-
suant to chapter 75 of title 31, United States Code,
finds has been used in violation of this Act.
‘‘(2) LIMITATION.—In carrying out paragraph
(1), the Secretary shall not reduce any quarterly
payment by more than 25 percent.
‘‘(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED
REPORT.—The Secretary shall reduce by 3 percent the
amount otherwise payable to a State under a grant under
this Act for a fiscal year if the Secretary determines that
the State has not submitted the report required by section
6 for the immediately preceding fiscal year, within 6
months after the end of the immediately preceding fiscal
year.
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‘‘SEC. 8. MODEL NUTRITION STANDARDS FOR FOOD ASSIST-
ANCE FOR PREGNANT, POSTPARTUM, AND
BREASTFEEDING 
WOMEN, 
INFANTS 
AND
CHILDREN.
‘‘(a) IN GENERAL.—Not later than April 1, 1996, the
Food and Nutrition Board of the Institute of Medicine of
the National Academy of Sciences, in cooperation with pe-
diatricians, obstetricians, nutritionists, and directors of
programs providing nutritional risk assessment, food as-
sistance, and nutrition education and counseling to eco-
nomically disadvantaged pregnant women, postpartum
women, breastfeeding women, infants, and young children,
shall develop model nutrition standards for food assistance
provided to such women, infants, and children under this
Act.
‘‘(b) REQUIREMENT.—Such model nutrition stand-
ards shall require that food assistance provided to such
women, infants, and children contain nutrients that are
lacking in the diets of such women, infants, and children,
as determined by nutritional research.
‘‘(c) REPORT TO CONGRESS.—Not later than 1 year
after the date on which the model nutrition standards are
developed under subsection (a), the Food and Nutrition
Board of the Institute of Medicine of the National Acad-
emy of Sciences shall prepare and submit to the Congress
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a report regarding the efforts of States to implement such
model nutrition standards.
‘‘SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to carry out this Act $4,606,000,000 for fiscal
year 1996, $4,777,000,000 for fiscal year 1997,
$4,936,000,000 for fiscal year 1998, $5,120,000,000 for
fiscal year 1999, and $5,308,000,000 for fiscal year 2000.
‘‘(b) AVAILABILITY.—Amounts authorized to be ap-
propriated under subsection (a) are authorized to remain
available until the end of the fiscal year subsequent to the
fiscal year for which such amounts are appropriated.
‘‘SEC. 10. DEFINITIONS.
‘‘For purposes of this Act:
‘‘(1) 
BREASTFEEDING
WOMEN.—The 
term
‘breastfeeding women’ means women up to 1 year
postpartum who are breastfeeding their infants.
‘‘(2) ECONOMICALLY
DISADVANTAGED.—The
term ‘economically disadvantaged’ means an individ-
ual or a family, as the case may be, whose annual
income does not exceed 185 percent of the applicable
family size income levels contained in the most re-
cent income poverty guidelines prescribed by the Of-
fice of Management and Budget and based on data
from the Bureau of the Census.
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‘‘(3) INFANTS.—The term ‘infants’ means indi-
viduals under 1 year of age.
‘‘(4) 
POSTPARTUM
WOMEN.—The 
term
‘postpartum women’ means women who are in the
180-day period beginning on the termination of
pregnancy.
‘‘(5) PREGNANT WOMEN.—The term ‘pregnant
women’ means women who have 1 or more fetuses
in utero.
‘‘(6) SCHOOL.—The term ‘school’ means a pub-
lic or private nonprofit elementary, intermediate, or
secondary school.
‘‘(7) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture.
‘‘(8) STATE.—The term ‘State’ means any of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth
of the Northern Mariana Islands, American Samoa,
Guam, the Virgin Islands, or a tribal organization
(as defined in section 4(l) of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C.
450b(l))).
‘‘(9) YOUNG CHILDREN.—The term ‘young chil-
dren’ means individuals who have attained the age
of 1 but have not attained the age of 5.’’.
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CHAPTER 2—SCHOOL-BASED NUTRITION
BLOCK GRANT PROGRAM
SEC. 341. AMENDMENT TO NATIONAL SCHOOL LUNCH ACT.
The National School Lunch Act (42 U.S.C. 1751 et
seq.) is amended to read as follows:
‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
‘‘(a) SHORT TITLE.—This Act may be cited as the
‘National School Lunch Act’.
‘‘(b) TABLE OF CONTENTS.—The table of contents
is as follows:
‘‘Sec. 1. Short title; table of contents.
‘‘Sec. 2. Authorization.
‘‘Sec. 3. Allotment.
‘‘Sec. 4. Application.
‘‘Sec. 5. Use of amounts.
‘‘Sec. 6. Reports.
‘‘Sec. 7. Penalties.
‘‘Sec. 8. Assistance to children enrolled in private nonprofit schools and Depart-
ment of Defense domestic dependents’ schools in case of re-
strictions on State or failure by State to provide assistance.
‘‘Sec. 9. Food service programs for department of defense overseas dependents’
schools.
‘‘Sec. 10. Model nutrition standards for meals for students.
‘‘Sec. 11. Definitions.
‘‘SEC. 2. AUTHORIZATION.
‘‘(a) ENTITLEMENT.—
‘‘(1) IN GENERAL.—In the case of each State
that in accordance with section 4 submits to the
Secretary of Agriculture an application for a fiscal
year, each such State shall be entitled to receive
from the Secretary for such fiscal year a grant for
the purpose of achieving the goals described in sub-
section (b). Subject to paragraph (2), the grant shall
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consist of the allotment for such State determined
under section 3 of the school-based nutrition amount
for the fiscal year.
‘‘(2) REQUIREMENT
TO
PROVIDE
COMMOD-
ITIES.—9 percent of the amount of the assistance
available under this Act for each State shall be in
the form of commodities.
‘‘(3) SCHOOL-BASED NUTRITION AMOUNT.—
‘‘(A) IN GENERAL.—For purposes of this
Act, the term ‘school-based nutrition amount’
means, subject to the reservation contained in
subparagraph (B), $6,681,000,000 for fiscal
year 1996, $6,956,000,000 for fiscal year 1997,
$7,237,000,000 
for 
fiscal 
year 
1998,
$7,538,000,000 for fiscal year 1999, and
$7,849,000,000 for fiscal year 2000.
‘‘(B) RESERVATION.—For each fiscal year
described in subparagraph (A), the Secretary
shall reserve an amount equal to the amount
determined under subsection (c) of section 9 for
such fiscal year from the school-based nutrition
amount for the purpose of establishing and car-
rying out nutritious food service programs at
Department of Defense overseas dependents’
schools in accordance with such section.
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‘‘(4) AVAILABILITY.—Payments under a grant
to a State from the allotment determined under sec-
tion 3 for any fiscal year may be obligated by the
State in that fiscal year or in the succeeding fiscal
year.
‘‘(b) GOALS.—The goals of this Act are—
‘‘(1) to safeguard the health and well-being of
children through the provision of nutritious, well-bal-
anced meals and food supplements;
‘‘(2) to provide economically disadvantaged chil-
dren access to nutritious free or low cost meals, food
supplements, and low-cost milk;
‘‘(3) to ensure that children served under this
Act are receiving the nutrition they require to take
advantage of the educational opportunities provided
to them;
‘‘(4) to emphasize foods which are naturally
good sources of vitamins and minerals over foods
which have been enriched with vitamins and min-
erals and are high in fat or sodium content;
‘‘(5) to provide a comprehensive school nutri-
tion program for children; and
‘‘(6) to minimize paperwork burdens and ad-
ministrative expenses for participating schools.
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‘‘(c) TIMING OF PAYMENTS.—The Secretary shall
provide payments under a grant under this Act to States
on a quarterly basis.
‘‘SEC. 3. ALLOTMENT.
‘‘The Secretary shall allot the school-based nutrition
amount to carry out this Act for a fiscal year among the
States as follows:
‘‘(1) FIRST FISCAL YEAR.—
‘‘(A) IN GENERAL.—With respect to the
first fiscal year for which the Secretary provides
grants to States under this Act, the amount al-
lotted to each State shall bear the same propor-
tion to such school-based nutrition amount as
the aggregate of the amounts described in sub-
paragraph (B) that were received by each such
State under the provisions of law described in
such subparagraph (as such provisions of law
were in effect on the day before the date of the
enactment of the Personal Responsibility Act of
1995) for the preceding fiscal year bears to the
aggregate of the amounts described in subpara-
graph (B) that were received by all such States
under such provisions of law for such preceding
fiscal year.
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‘‘(B) 
AMOUNTS
DESCRIBED.—The
amounts described in this subparagraph are the
following:
‘‘(i) The amount received under the
school breakfast program established under
section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773).
‘‘(ii) The amount received under the
school lunch program established under
this Act (42 U.S.C. 1751 et seq.).
‘‘(iii) 12.5 percent of the sum of the
amounts received under the following pro-
grams:
‘‘(I) The child and adult care
food program under section 17 of this
Act (42 U.S.C. 1766), except for sub-
section (o) of such section.
‘‘(II) The summer food service
program 
for 
children 
established
under section 13 of this Act (42
U.S.C. 1761).
‘‘(III) The special milk program
established under section 3 of the
Child Nutrition Act of 1966 (42
U.S.C. 1772).
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‘‘(2) SECOND FISCAL YEAR.—With respect to
the second fiscal year for which the Secretary pro-
vides grants to States under this Act—
‘‘(A) 95 percent of such school-based nu-
trition amount shall be allotted among the
States by allotting to each State an amount
that bears the same proportion to such school-
based nutrition amount as the amount allotted
to each such State from a grant under this Act
for the preceding fiscal year bears to the aggre-
gate of the amounts allotted to all such States
from grants under this Act for such preceding
fiscal year; and
‘‘(B) 5 percent of such school-based nutri-
tion amount shall be allotted among the States
by allotting to each State an amount that bears
the same proportion to such school-based nutri-
tion amount as the relative number of meals
served during the 1-year period ending on June
30 of the preceding fiscal year in a State from
amounts received from a grant under this Act
for such preceding fiscal year bears to the total
number of meals served in all States from
amounts received from grants under this Act
for the preceding fiscal year.
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‘‘(3) THIRD
AND
FOURTH
FISCAL
YEARS.—
With respect to each of the third and fourth fiscal
years for which the Secretary provides grants to
States under this Act—
‘‘(A) 90 percent of such school-based nu-
trition amount shall be allotted among the
States by allotting to each State an amount de-
termined in accordance with the formula de-
scribed in paragraph (2)(A); and
‘‘(B) 10 percent of such school-based nu-
trition amount shall be allotted among the
States by allotting to each State an amount de-
termined in accordance with the formula de-
scribed in paragraph (2)(B).
‘‘(4) FIFTH FISCAL YEAR.—With respect to the
fifth fiscal year for which the Secretary provides
grants to States under this Act—
‘‘(A) 85 percent of such school-based nu-
trition amount shall be allotted among the
States by allotting to each State an amount de-
termined in accordance with the formula de-
scribed in paragraph (2)(A); and
‘‘(B) 15 percent of such school-based nu-
trition amount shall be allotted among the
States by allotting to each State an amount de-
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termined in accordance with the formula de-
scribed in paragraph (2)(B).
‘‘SEC. 4. APPLICATION.
‘‘The Secretary may provide a grant under this Act
to a State for a fiscal year only if the State submits to
the Secretary an application containing only—
‘‘(1) an agreement that the State will use
amounts received from such grant in accordance
with section 5;
‘‘(2) except as provided in paragraph (3), an
agreement that the State will set minimum nutri-
tional requirements for meals provided under this
Act based on the most recent tested nutritional re-
search available, except that—
‘‘(A) such requirements shall not be con-
strued to prohibit the substitution of foods to
accommodate the medical or other special die-
tary needs of individual students; and
‘‘(B) such requirements shall, at a mini-
mum, be based on—
‘‘(i) the weekly average of the nutrient
content of school lunches; or
‘‘(ii) such other standards as the
State may prescribe;
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‘‘(3) an agreement that the State, with respect
to the provision of meals to students, shall—
‘‘(A) implement the minimum nutritional
requirements described in paragraph (2) for
such meals; or
‘‘(B) implement the model nutrition stand-
ards developed under section 10 for such meals;
‘‘(4) an agreement that the State will take such
reasonable steps as the State deems necessary to re-
strict the use and disclosure of information about in-
dividuals and families receiving assistance under this
Act;
‘‘(5) an agreement that the State will use not
more than 2 percent of the amount of such grant for
administrative costs incurred to provide assistance
under this Act; and
‘‘(6) an agreement that the State will submit to
the Secretary a report in accordance with section 6.
‘‘SEC. 5. USE OF AMOUNTS.
‘‘(a) IN GENERAL.—The Secretary may provide a
grant under this Act to a State only if the State agrees
that it will use all amounts received from such grant to
provide assistance to schools to establish and carry out
nutritious food service programs that provide affordable
meals and supplements to students, which may include—
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‘‘(1) nonprofit school breakfast programs;
‘‘(2) nonprofit school lunch programs;
‘‘(3) nonprofit before and after school supple-
ment programs;
‘‘(4) nonprofit low-cost milk services; and
‘‘(5) nonprofit summer meals programs.
‘‘(b) ADDITIONAL REQUIREMENTS.—
‘‘(1) MINIMUM AMOUNT OF GRANT FOR FREE
OR LOW COST MEALS OR SUPPLEMENTS.—In provid-
ing assistance to schools to establish and carry out
nutritious food service programs in accordance with
subsection (a), the State shall ensure that not less
than 80 percent of the amount of the grant is used
to provide free or low cost meals or supplements to
economically disadvantaged children.
‘‘(2) PROVISION OF FOOD SERVICE PROGRAMS
IN PRIVATE NONPROFIT SCHOOLS AND DEPARTMENT
OF DEFENSE DOMESTIC DEPENDENTS’ SCHOOLS.—
To the extent consistent with the number of children
in the State who are enrolled in private nonprofit
schools and Department of Defense domestic de-
pendents’ schools, the State, after timely and appro-
priate consultation with representatives of such
schools, as the case may be, shall ensure that nutri-
tious food service programs are established and car-
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ried out in such schools in accordance with sub-
section (a) on an equitable basis with nutritious food
service programs established and carried out in pub-
lic nonprofit schools in the State.
‘‘(c) AUTHORITY TO USE AMOUNTS
FOR OTHER
PURPOSES.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
and (3), a State may use not more than 20 percent
of amounts received from a grant under this Act for
a fiscal year to carry out a State program pursuant
to any or all of the following provisions of law:
‘‘(A) Part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.).
‘‘(B) Part B of title IV of the Social Secu-
rity Act (42 U.S.C. 621 et seq.).
‘‘(C) Title XX of the Social Security Act
(42 U.S.C. 1397 et seq.).
‘‘(D) The Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
‘‘(E) The Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858 et
seq.).
‘‘(2) SUFFICIENT FUNDING DETERMINATION.—
Prior to using any amounts received from a grant
under this Act for a fiscal year to carry out a State
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program pursuant to any or all of the provisions of
law described in paragraph (1), the appropriate
State agency shall make a determination that suffi-
cient amounts will remain available for such fiscal
year to carry out this Act.
‘‘(3) RULES GOVERNING USE OF AMOUNTS FOR
OTHER
PURPOSES.—Amounts paid to the State
under a grant under this Act that are used to carry
out a State program pursuant to a provision of law
specified in paragraph (1) shall not be subject to the
requirements of this Act, but shall be subject to the
same requirements that apply to Federal funds pro-
vided directly under the provision of law to carry out
the program.
‘‘(d) LIMITATION ON PROVISION OF COMMODITIES
TO CERTAIN SCHOOL DISTRICTS, PRIVATE NONPROFIT
SCHOOLS, AND DEPARTMENT OF DEFENSE DOMESTIC
DEPENDENTS’ SCHOOLS.—
‘‘(1) IN GENERAL.—A State may not require a
school district, private nonprofit school, or Depart-
ment of Defense domestic dependents’ school de-
scribed in paragraph (2), except upon the request of
such school district, private school, or domestic de-
pendents’ school, as the case may be, to accept com-
modities for use in the food service program of such
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school district, private school, or domestic depend-
ents’ school in accordance with this section. Such
school district, private school, or domestic depend-
ents’ school may continue to receive commodity as-
sistance in the form that it received such assistance
as of January 1, 1987.
‘‘(2) SCHOOL
DISTRICT, PRIVATE
NONPROFIT
SCHOOL, AND DEPARTMENT OF DEFENSE DOMESTIC
DEPENDENTS’ SCHOOL DESCRIBED.—A school dis-
trict, private nonprofit school, or Department of De-
fense domestic dependents’ school described in this
paragraph is a school district, private nonprofit
school, or Department of Defense domestic depend-
ents’ school, as the case may be, that as of January
1, 1987, was receiving all cash payments or all com-
modity letters of credit in lieu of entitlement com-
modities for the school lunch program of such school
district, private school, or domestic dependents’
school under section 18(b) of the National School
Lunch Act (42 U.S.C. 1751 et seq.), as such section
was in effect on the day before the date of the enact-
ment of the Personal Responsibility Act of 1995.
‘‘(e) PROHIBITION
ON
PHYSICAL
SEGREGATION,
OVERT IDENTIFICATION, OR OTHER DISCRIMINATION
WITH RESPECT TO CHILDREN ELIGIBLE FOR FREE OR
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LOW COST MEALS OR SUPPLEMENTS.—In providing as-
sistance to schools to establish and carry out nutritious
food service programs in accordance with subsection (a),
the State shall ensure that such schools do not—
‘‘(1) physically segregate children eligible to re-
ceive free or low cost meals or supplements on the
basis of such eligibility;
‘‘(2) provide for the overt identification of such
children by special tokens or tickets, announced or
published list of names, or other means; or
‘‘(3) otherwise discriminate against such chil-
dren.
‘‘SEC. 6. REPORTS.
‘‘The Secretary may provide a grant under this Act
to a State for a fiscal year only if the State agrees that
it will submit, for such fiscal year, a report to the Sec-
retary describing—
‘‘(1) the number of individuals receiving assist-
ance under the grant;
‘‘(2) the different types of assistance provided
to such individuals;
‘‘(3) the total number of meals served to stu-
dents under the grant, including the percentage of
such meals served to economically disadvantaged
students;
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‘‘(4) the extent to which such assistance was ef-
fective in achieving the goals described in section
2(b);
‘‘(5) the standards and methods the State is
using to ensure the nutritional quality of such assist-
ance, including meals and supplements; and
‘‘(6) any other information which can be rea-
sonably required by the Secretary.
‘‘SEC. 7. PENALTIES.
‘‘(a) PENALTY FOR USE OF AMOUNTS IN VIOLATION
OF THIS ACT.—
‘‘(1) IN GENERAL.—The Secretary shall reduce
the amounts otherwise payable to a State under a
grant under this Act by any amount paid to the
State under this Act which an audit conducted pur-
suant to chapter 75 of title 31, United States Code,
finds has been used in violation of this Act.
‘‘(2) LIMITATION.—In carrying out paragraph
(1), the Secretary shall not reduce any quarterly
payment by more than 25 percent.
‘‘(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED
REPORT.—The Secretary shall reduce by 3 percent the
amount otherwise payable to a State under a grant under
this Act for a fiscal year if the Secretary determines that
the State has not submitted the report required by section