100
respect to a requirement if the Secretary determines
that the State has reasonable cause for failing to
comply with the requirement.
‘‘(2) EXCEPTION.—Paragraph (1) of this sub-
section shall not apply to any penalty under sub-
section (a)(5).
‘‘(c) CORRECTIVE COMPLIANCE PLAN.—
‘‘(1) IN GENERAL.—
‘‘(A) NOTIFICATION
OF
VIOLATION.—Be-
fore imposing a penalty against a State under
subsection (a) with respect to a violation of this
part, the Secretary shall notify the State of the
violation and allow the State the opportunity to
enter into a corrective compliance plan in ac-
cordance with this subsection which outlines
how the State will correct the violation and how
the State will insure continuing compliance with
this part.
‘‘(B) 60-DAY PERIOD TO PROPOSE A COR-
RECTIVE COMPLIANCE PLAN.—During the 60-
day period that begins on the date the State re-
ceives a notice provided under subparagraph
(A) with respect to a violation, the State may
submit to the Federal Government a corrective
compliance plan to correct the violation.
101
‘‘(C) CONSULTATION
ABOUT
MODIFICA-
TIONS.—During the 60-day period that begins
with the date the Secretary receives a corrective
compliance plan submitted by a State in accord-
ance with subparagraph (B), the Secretary may
consult with the State on modifications to the
plan.
‘‘(D) ACCEPTANCE OF PLAN.— A correc-
tive compliance plan submitted by a State in ac-
cordance with subparagraph (B) is deemed to
be accepted by the Secretary if the Secretary
does not accept or reject the plan during 60-day
period that begins on the date the plan is sub-
mitted.
‘‘(2) EFFECT
OF
CORRECTING
VIOLATION.—
The Secretary may not impose any penalty under
subsection (a) with respect to any violation covered
by a State corrective compliance plan accepted by
the Secretary if the State corrects the violation pur-
suant to the plan.
‘‘(3) EFFECT OF FAILING TO CORRECT VIOLA-
TION.—The Secretary shall assess some or all of a
penalty imposed on a State under subsection (a)
with respect to a violation if the State does not, in
a timely manner, correct the violation pursuant to a
102
State corrective compliance plan accepted by the
Secretary.
‘‘(d) LIMITATION ON AMOUNT OF PENALTY.—
‘‘(1) IN GENERAL.—In imposing the penalties
described in subsection (a), the Secretary shall not
reduce any quarterly payment to a State by more
than 25 percent.
‘‘(2) CARRYFORWARD OF UNRECOVERED PEN-
ALTIES.—To the extent that paragraph (1) of this
subsection prevents the Secretary from recovering
during a fiscal year the full amount of penalties im-
posed on a State under subsection (a) of this section
for a prior fiscal year, the Secretary shall apply any
remaining amount of such penalties to the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year.
‘‘(e) OTHER PENALTIES.—If, after reasonable notice
and opportunity for hearing to the State agency admin-
istering or supervising the administration of a State pro-
gram funded under this part, the Secretary finds that the
State has failed to comply substantially with any provision
of this part or of the State plan approved under section
402, the Secretary shall, if subsection (a) does not apply
to the failure, notify the State agency that further pay-
ments will not be made to the State under this part (or,
103
in the Secretary’s discretion, that the payments will be re-
duced or limited to categories under, or parts of, the State
program not affected by the failure) until the Secretary
is satisfied that there is no longer any such failure to com-
ply. Until the Secretary is so satisfied, the Secretary shall
make no further payments to the State (or shall reduce
or limit payments to categories under or parts of the State
program not affected by the failure).
‘‘SEC. 410. APPEAL OF ADVERSE DECISION.
‘‘(a) IN GENERAL.—Within 5 days after the date the
Secretary takes any adverse action under this part with
respect to a State, the Secretary shall notify the chief ex-
ecutive officer of the State of the adverse action, including
any action with respect to the State plan submitted under
section 402 or the imposition of a penalty under section
409.
‘‘(b) ADMINISTRATIVE REVIEW.—
‘‘(1) IN GENERAL.—Within 60 days after the
date a State receives notice under subsection (a) of
an adverse action, the State may appeal the action,
in whole or in part, to the Departmental Appeals
Board established in the Department of Health and
Human Services (in this section referred to as the
‘Board’) by filing an appeal with the Board.
104
‘‘(2) PROCEDURAL
RULES.—The Board shall
consider an appeal filed by a State under paragraph
(1) on the basis of such documentation as the State
may submit and as the Board may require to sup-
port the final decision of the Board. In deciding
whether to uphold an adverse action or any portion
of such an action, the Board shall conduct a thor-
ough review of the issues and take into account all
relevant evidence. The Board shall make a final de-
termination with respect to an appeal filed under
paragraph (1) not less than 60 days after the date
the appeal is filed.
‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.—
‘‘(1) IN GENERAL.—Within 90 days after the
date of a final decision by the Board under this sec-
tion with respect to an adverse action taken against
a State, the State may obtain judicial review of the
final decision (and the findings incorporated into the
final decision) by filing an action in—
‘‘(A) the district court of the United States
for the judicial district in which the principal or
headquarters office of the State agency is lo-
cated; or
‘‘(B) the United States District Court for
the District of Columbia.
105
‘‘(2) PROCEDURAL RULES.—The district court
in which an action is filed under paragraph (1) shall
review the final decision of the Board on the record
established in the administrative proceeding, in ac-
cordance with the standards of review prescribed by
subparagraphs (A) through (E) of section 706(2) of
title 5, United States Code. The review shall be on
the basis of the documents and supporting data sub-
mitted to the Board.
‘‘SEC. 411. DATA COLLECTION AND REPORTING.
‘‘(a) QUARTERLY REPORTS BY STATES.—
‘‘(1) GENERAL REPORTING REQUIREMENT.—
‘‘(A) CONTENTS OF REPORT.—Beginning
July 1, 1996, each State shall collect on a
monthly basis, and report to the Secretary on
a quarterly basis, the following disaggregated
case record information on the families receiv-
ing assistance under the State program funded
under this part:
‘‘(i) The county of residence of the
family.
‘‘(ii) Whether a child receiving such
assistance or an adult in the family is dis-
abled.
106
‘‘(iii) The ages of the members of
such families.
‘‘(iv) The number of individuals in the
family, and the relation of each family
member to the youngest child in the fam-
ily.
‘‘(v) The employment status and earn-
ings of the employed adult in the family.
‘‘(vi) The marital status of the adults
in the family, including whether such
adults have never married, are widowed, or
are divorced.
‘‘(vii) The race and educational status
of each adult in the family.
‘‘(viii) The race and educational sta-
tus of each child in the family.
‘‘(ix) Whether the family received sub-
sidized housing, medical assistance under
the State plan approved under title XIX,
food stamps, or subsidized child care, and
if the latter 2, the amount received.
‘‘(x) The number of months that the
family has received each type of assistance
under the program.
107
‘‘(xi) If the adults participated in, and
the number of hours per week of participa-
tion in, the following activities:
‘‘(I) Education.
‘‘(II) Subsidized private sector
employment.
‘‘(III) Unsubsidized employment.
‘‘(IV) Public sector employment,
work experience, or community serv-
ice.
‘‘(V) Job search.
‘‘(VI) Job skills training or on-
the-job training.
‘‘(VII) Vocational education.
‘‘(xii) Information necessary to cal-
culate participation rates under section
407.
‘‘(xiii) The type and amount of assist-
ance received under the program, including
the amount of and reason for any reduc-
tion of assistance (including sanctions).
‘‘(xiv) From a sample of closed cases,
whether the family left the program, and if
so, whether the family left due to—
‘‘(I) employment;
108
‘‘(II) marriage;
‘‘(III) the prohibition set forth in
section 408(a)(8);
‘‘(IV) sanction; or
‘‘(V) State policy.
‘‘(xv) Any amount of unearned income
received by any member of the family.
‘‘(xvi) The citizenship of the members
of the family.
‘‘(B) USE OF ESTIMATES.—
‘‘(i) AUTHORITY.—A State may com-
ply with subparagraph (A) by submitting
an estimate which is obtained through the
use of scientifically acceptable sampling
methods approved by the Secretary.
‘‘(ii) SAMPLING
AND
OTHER
METH-
ODS.—The Secretary shall provide the
States with such case sampling plans and
data collection procedures as the Secretary
deems necessary to produce statistically
valid estimates of the performance of State
programs funded under this part. The Sec-
retary may develop and implement proce-
dures for verifying the quality of data sub-
mitted by the States.
109
‘‘(2) REPORT ON USE OF FEDERAL FUNDS TO
COVER ADMINISTRATIVE COSTS AND OVERHEAD.—
The report required by paragraph (1) for a fiscal
quarter shall include a statement of the percentage
of the funds paid to the State under this part for
the quarter that are used to cover administrative
costs or overhead.
‘‘(3) REPORT
ON
STATE
EXPENDITURES
ON
PROGRAMS FOR NEEDY FAMILIES.—The report re-
quired by paragraph (1) for a fiscal quarter shall in-
clude a statement of the total amount expended by
the State during the quarter on programs for needy
families.
‘‘(4) REPORT ON NONCUSTODIAL PARENTS PAR-
TICIPATING IN WORK ACTIVITIES.—The report re-
quired by paragraph (1) for a fiscal quarter shall in-
clude the number of noncustodial parents in the
State who participated in work activities (as defined
in section 407(d)) during the quarter.
‘‘(5) REPORT
ON
TRANSITIONAL
SERVICES.—
The report required by paragraph (1) for a fiscal
quarter shall include the total amount expended by
the State during the quarter to provide transitional
services to a family that has ceased to receive assist-
110
ance under this part because of employment, along
with a description of such services.
‘‘(6) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary to de-
fine the data elements with respect to which reports
are required by this subsection.
‘‘(b) ANNUAL REPORTS TO THE CONGRESS BY THE
SECRETARY.—Not later than 6 months after the end of
fiscal year 1997, and each fiscal year thereafter, the Sec-
retary shall transmit to the Congress a report describ-
ing—
‘‘(1) whether the States are meeting—
‘‘(A) the participation rates described in
section 407(a); and
‘‘(B) the objectives of—
‘‘(i) increasing employment and earn-
ings of needy families, and child support
collections; and
‘‘(ii) decreasing out-of-wedlock preg-
nancies and child poverty;
‘‘(2) the demographic and financial characteris-
tics of families applying for assistance, families re-
ceiving assistance, and families that become ineli-
gible to receive assistance;
111
‘‘(3) the characteristics of each State program
funded under this part; and
‘‘(4) the trends in employment and earnings of
needy families with minor children living at home.
‘‘SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY IN-
DIAN TRIBES.
‘‘(a) GRANTS FOR INDIAN TRIBES.—
‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—
‘‘(A) IN
GENERAL.—For each of fiscal
years 1997, 1998, 1999, and 2000, the Sec-
retary shall pay to each Indian tribe that has
an approved tribal family assistance plan a trib-
al family assistance grant for the fiscal year in
an amount equal to the amount determined
under subparagraph (B), and shall reduce the
grant payable under section 403(a)(1) to any
State in which lies the service area or areas of
the Indian tribe by that portion of the amount
so determined that is attributable to expendi-
tures by the State.
‘‘(B) AMOUNT DETERMINED.—
‘‘(i) IN GENERAL.—The amount de-
termined under this subparagraph is an
amount equal to the total amount of the
Federal payments to a State or States
112
under section 403 (as in effect during such
fiscal year) for fiscal year 1994 attrib-
utable to expenditures (other than child
care expenditures) by the State or States
under parts A and F (as so in effect) for
fiscal year 1994 for Indian families resid-
ing in the service area or areas identified
by the Indian tribe pursuant to subsection
(b)(1)(C) of this section.
‘‘(ii) USE
OF
STATE
SUBMITTED
DATA.—
‘‘(I) IN
GENERAL.—The Sec-
retary shall use State submitted data
to make each determination under
clause (i).
‘‘(II) DISAGREEMENT WITH DE-
TERMINATION.—If an Indian tribe or
tribal organization disagrees with
State submitted data described under
subclause (I), the Indian tribe or trib-
al organization may submit to the
Secretary such additional information
as may be relevant to making the de-
termination under clause (i) and the
Secretary may consider such informa-
113
tion before making such determina-
tion.
‘‘(2) GRANTS FOR INDIAN TRIBES THAT RE-
CEIVED JOBS FUNDS.—
‘‘(A) IN
GENERAL.—The Secretary shall
pay to each eligible Indian tribe for each of fis-
cal years 1996, 1997, 1998, 1999, and 2000 a
grant in an amount equal to the amount re-
ceived by the Indian tribe in fiscal year 1994
under section 482(i) (as in effect during fiscal
year 1994).
‘‘(B) ELIGIBLE INDIAN TRIBE.—For pur-
poses of subparagraph (A), the term ‘eligible
Indian tribe’ means an Indian tribe or Alaska
Native organization that conducted a job oppor-
tunities and basic skills training program in fis-
cal year 1995 under section 482(i) (as in effect
during fiscal year 1995).
‘‘(C) USE OF GRANT.—Each Indian tribe
to which a grant is made under this paragraph
shall use the grant for the purpose of operating
a program to make work activities available to
members of the Indian tribe.
‘‘(D) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
114
wise appropriated, there are appropriated
$7,638,474 for each fiscal year specified in sub-
paragraph (A) for grants under subparagraph
(A).
‘‘(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—
‘‘(1) IN GENERAL.—Any Indian tribe that de-
sires to receive a tribal family assistance grant shall
submit to the Secretary a 3-year tribal family assist-
ance plan that—
‘‘(A) outlines the Indian tribe’s approach
to providing welfare-related services for the 3-
year period, consistent with this section;
‘‘(B) specifies whether the welfare-related
services provided under the plan will be pro-
vided by the Indian tribe or through agree-
ments, contracts, or compacts with intertribal
consortia, States, or other entities;
‘‘(C) identifies the population and service
area or areas to be served by such plan;
‘‘(D) provides that a family receiving as-
sistance under the plan may not receive duplica-
tive assistance from other State or tribal pro-
grams funded under this part;
‘‘(E) identifies the employment opportuni-
ties in or near the service area or areas of the
115
Indian tribe and the manner in which the In-
dian tribe will cooperate and participate in en-
hancing such opportunities for recipients of as-
sistance under the plan consistent with any ap-
plicable State standards; and
‘‘(F) applies the fiscal accountability provi-
sions of section 5(f)(1) of the Indian Self-De-
termination and Education Assistance Act (25
U.S.C. 450c(f)(1)), relating to the submission
of a single-agency audit report required by
chapter 75 of title 31, United States Code.
‘‘(2) APPROVAL.—The Secretary shall approve
each tribal family assistance plan submitted in ac-
cordance with paragraph (1).
‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this
section shall preclude the development and submis-
sion of a single tribal family assistance plan by the
participating Indian tribes of an intertribal consor-
tium.
‘‘(c) MINIMUM
WORK
PARTICIPATION
REQUIRE-
MENTS AND TIME LIMITS.—The Secretary, with the par-
ticipation of Indian tribes, shall establish for each Indian
tribe receiving a grant under this section minimum work
participation requirements, appropriate time limits for re-
116
ceipt of welfare-related services under the grant, and pen-
alties against individuals—
‘‘(1) consistent with the purposes of this sec-
tion;
‘‘(2) consistent with the economic conditions
and resources available to each tribe; and
‘‘(3) similar to comparable provisions in section
407(d).
‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this sec-
tion shall preclude an Indian tribe from seeking emergency
assistance from any Federal loan program or emergency
fund.
‘‘(e) ACCOUNTABILITY.—Nothing in this section shall
be construed to limit the ability of the Secretary to main-
tain program funding accountability consistent with—
‘‘(1) generally accepted accounting principles;
and
‘‘(2) the requirements of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C.
450 et seq.).
‘‘(f) PENALTIES.—Subsections (a)(4), (b), and (e) of
section 409 shall apply to an Indian tribe with an ap-
proved tribal assistance plan in the same manner as such
subsections apply to a State.
117
‘‘(g) DATA COLLECTION AND REPORTING.—Section
411 shall apply to an Indian tribe with an approved tribal
family assistance plan.
‘‘(h) SPECIAL RULE FOR INDIAN TRIBES IN ALAS-
KA.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section, and except as provided in
paragraph (2), an Indian tribe in the State of Alas-
ka that receives a tribal family assistance grant
under this section shall use the grant to operate a
program in accordance with requirements com-
parable to the requirements applicable to the pro-
gram of the State of Alaska funded under this part.
Comparability of programs shall be established on
the basis of program criteria developed by the Sec-
retary in consultation with the State of Alaska and
such Indian tribes.
‘‘(2) WAIVER.—An Indian tribe described in
paragraph (1) may apply to the appropriate State
authority to receive a waiver of the requirement of
paragraph (1).
‘‘SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUD-
IES.
‘‘(a) RESEARCH.—The Secretary shall conduct re-
search on the benefits, effects, and costs of operating dif-
118
ferent State programs funded under this part, including
time limits relating to eligibility for assistance. The re-
search shall include studies on the effects of different pro-
grams and the operation of such programs on welfare de-
pendency, illegitimacy, teen pregnancy, employment rates,
child well-being, and any other area the Secretary deems
appropriate. The Secretary shall also conduct research on
the costs and benefits of State activities under section
409.
‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA-
TIVE APPROACHES TO REDUCING WELFARE DEPEND-
ENCY AND INCREASING CHILD WELL-BEING.—
‘‘(1) IN GENERAL.—The Secretary may assist
States in developing, and shall evaluate, innovative
approaches for reducing welfare dependency and in-
creasing the well-being of minor children living at
home with respect to recipients of assistance under
programs funded under this part. The Secretary
may provide funds for training and technical assist-
ance to carry out the approaches developed pursuant
to this paragraph.
‘‘(2) EVALUATIONS.—In performing the evalua-
tions under paragraph (1), the Secretary shall, to
the maximum extent feasible, use random assign-
ment as an evaluation methodology.
119
‘‘(c) 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.
‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF
MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—
‘‘(1) ANNUAL RANKING OF STATES.—The Sec-
retary shall rank annually the States to which
grants are paid under section 403 in the order of
their success in placing recipients of assistance
under the State program funded under this part into
long-term private sector jobs, reducing the overall
welfare caseload, and, when a practicable method for
calculating this information becomes available, di-
verting individuals from formally applying to the
State program and receiving assistance. In ranking
States under this subsection, the Secretary shall
take into account the average number of minor chil-
dren living at home in families in the State that
have incomes below the poverty line and the amount
of funding provided each State for such families.
120
‘‘(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.
‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF
ISSUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—
‘‘(1) ANNUAL RANKING OF STATES.—
‘‘(A) IN
GENERAL.—The Secretary shall
annually rank States to which grants are made
under section 403 based on the following rank-
ing factors:
‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RA-
TIOS.—The ratio represented by—
‘‘(I) the total number of out-of-
wedlock births in families receiving as-
sistance under the State program
under this part in the State for the
most recent fiscal year for which in-
formation is available; over
121
‘‘(II) the total number of births
in families receiving assistance under
the State program under this part in
the State for such year.
‘‘(ii) NET CHANGES IN THE OUT-OF-
WEDLOCK RATIO.—The difference between
the ratio described in subparagraph (A)(i)
with respect to a State for the most recent
fiscal year for which such information is
available and the ratio with respect to the
State for the immediately preceding year.
‘‘(2) ANNUAL REVIEW.—The Secretary shall re-
view the programs of the 5 States most recently
ranked highest under paragraph (1) and the 5
States most recently ranked the lowest under para-
graph (1).
‘‘(f) STATE-INITIATED EVALUATIONS.—A State shall
be eligible to receive funding to evaluate the State pro-
gram funded under this part if—
‘‘(1) the State submits a proposal to the Sec-
retary for the evaluation;
‘‘(2) the Secretary determines that the design
and approach of the evaluation is rigorous and is
likely to yield information that is credible and will
be useful to other States; and
122
‘‘(3) unless otherwise waived by the Secretary,
the State contributes to the cost of the evaluation,
from non-Federal sources, an amount equal to at
least 10 percent of the cost of the evaluation.
‘‘(g) FUNDING
OF
STUDIES
AND
DEMONSTRA-
TIONS.—
‘‘(1) IN GENERAL.—Out of any money in the
Treasury of the United States not otherwise appro-
priated, there are appropriated $15,000,000 for each
fiscal year specified in section 403(a)(1) for the pur-
pose of paying—
‘‘(A) the cost of conducting the research
described in subsection (a);
‘‘(B) the cost of developing and evaluating
innovative approaches for reducing welfare de-
pendency and increasing the well-being of minor
children under subsection (b);
‘‘(C) the Federal share of any State-initi-
ated study approved under subsection (f); and
‘‘(D) an amount determined by the Sec-
retary to be necessary to operate and evaluate
demonstration projects, relating to this part,
that are in effect or approved under section
1115 as of September 30, 1995, and are contin-
ued after such date.
123
‘‘(2) ALLOCATION.—Of the amount appro-
priated under paragraph (1) for a fiscal year—
‘‘(A) 50 percent shall be allocated for the
purposes described in subparagraphs (A) and
(B) of paragraph (1), and
‘‘(B) 50 percent shall be allocated for the
purposes described in subparagraphs (C) and
(D) of paragraph (1).
‘‘SEC. 414. STUDY BY THE CENSUS BUREAU.
‘‘(a) IN GENERAL.—The Bureau of the Census shall
expand the Survey of Income and Program Participation
as necessary to obtain such information as will enable in-
terested persons to evaluate the impact of the amendments
made by title I of the Bipartisan Welfare Reform Act of
1996 on a random national sample of recipients of assist-
ance under State programs funded under this part and
(as appropriate) other low income families, and in doing
so, shall pay particular attention to the issues of out-of-
wedlock birth, welfare dependency, the beginning and end
of welfare spells, and the causes of repeat welfare spells.
‘‘(b) APPROPRIATION.—Out of any money in the
Treasury of the United States not otherwise appropriated,
there are appropriated $10,000,000 for each of fiscal
years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 for
124
payment to the Bureau of the Census to carry out sub-
section (a).
‘‘SEC. 415. WAIVERS.
‘‘(a) CONTINUATION OF WAIVERS.—
‘‘(1) WAIVERS IN EFFECT ON DATE OF ENACT-
MENT OF WELFARE REFORM.—Except as provided
in paragraph (3), if any waiver granted to a State
under section 1115 or otherwise which relates to the
provision of assistance under a State plan under this
part (as in effect on September 30, 1995) is in ef-
fect as of the date of the enactment of the Biparti-
san Welfare Reform Act of 1996, the amendments
made by such Act shall not apply with respect to the
State before the expiration (determined without re-
gard to any extensions) of the waiver to the extent
such amendments are inconsistent with the waiver.
‘‘(2) WAIVERS GRANTED SUBSEQUENTLY.—Ex-
cept as provided in paragraph (3), if any waiver
granted to a State under section 1115 or otherwise
which relates to the provision of assistance under a
State plan under this part (as in effect on Septem-
ber 30, 1995) is submitted to the Secretary before
the date of the enactment of the Bipartisan Welfare
Reform Act of 1996 and approved by the Secretary
before the effective date of this title, and the State
125
demonstrates to the satisfaction of the Secretary
that the waiver will not result in Federal expendi-
tures under title IV of this Act (as in effect without
regard to the amendments made by the Bipartisan
Welfare Reform Act of 1996) that are greater than
would occur in the absence of the waiver, such
amendments shall not apply with respect to the
State before the expiration (determined without re-
gard to any extensions) of the waiver to the extent
such amendments are inconsistent with the waiver.
‘‘(3) FINANCING
LIMITATION.—Notwithstand-
ing any other provision of law, beginning with fiscal
year 1996, a State operating under a waiver de-
scribed in paragraph (1) shall be entitled to payment
under section 403 for the fiscal year, in lieu of any
other payment provided for in the waiver.
‘‘(b) STATE OPTION TO TERMINATE WAIVER.—
‘‘(1) IN GENERAL.—A State may terminate a
waiver described in subsection (a) before the expira-
tion of the waiver.
‘‘(2) REPORT.—A State which terminates a
waiver under paragraph (1) shall submit a report to
the Secretary summarizing the waiver and any avail-
able information concerning the result or effect of
the waiver.
126
‘‘(3) HOLD HARMLESS PROVISION.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law, a State that, not later
than the date described in subparagraph (B),
submits a written request to terminate a waiver
described in subsection (a) shall be held harm-
less for accrued cost neutrality liabilities in-
curred under the waiver.
‘‘(B) DATE
DESCRIBED.—The date de-
scribed in this subparagraph is the later of—
‘‘(i) January 1, 1996; or
‘‘(ii) 90 days following the adjourn-
ment of the first regular session of the
State legislature that begins after the date
of the enactment of the Bipartisan Welfare
Reform Act of 1996.
‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT
WAIVERS.—The Secretary shall encourage any State oper-
ating a waiver described in subsection (a) to continue the
waiver and to evaluate, using random sampling and other
characteristics of accepted scientific evaluations, the result
or effect of the waiver.
‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A
State may elect to continue 1 or more individual waivers
described in subsection (a).
127
‘‘SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.
‘‘The programs under this part and part D shall be
administered by an Assistant Secretary for Family Sup-
port within the Department of Health and Human Serv-
ices, who shall be appointed by the President, by and with
the advice and consent of the Senate, and who shall be
in addition to any other Assistant Secretary of Health and
Human Services provided for by law.
‘‘SEC. 417. DEFINITIONS.
‘‘As used in this part:
‘‘(1) ADULT.—The term ‘adult’ means an indi-
vidual who is not a minor child.
‘‘(2) MINOR
CHILD.—The term ‘minor child’
means an individual who—
‘‘(A) has not attained 18 years of age; or
‘‘(B) has not attained 19 years of age and
is a full-time student in a secondary school (or
in the equivalent level of vocational or technical
training).
‘‘(3) FISCAL
YEAR.—The term ‘fiscal year’
means any 12-month period ending on September 30
of a calendar year.
‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGA-
NIZATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the terms ‘Indian’, ‘Indian
128
tribe’, and ‘tribal organization’ have the mean-
ing given such terms by section 4 of the Indian
Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
‘‘(B) SPECIAL RULE FOR INDIAN TRIBES
IN
ALASKA.—The term ‘Indian tribe’ means,
with respect to the State of Alaska, only the
Metlakatla Indian Community of the Annette
Islands Reserve and the following Alaska Native
regional nonprofit corporations:
‘‘(i) Arctic Slope Native Association.
‘‘(ii) Kawerak, Inc.
‘‘(iii) Maniilaq Association.
‘‘(iv) Association of Village Council
Presidents.
‘‘(v) Tanana Chiefs Conference.
‘‘(vi) Cook Inlet Tribal Council.
‘‘(vii) Bristol Bay Native Association.
‘‘(viii) Aleutian and Pribilof Island
Association.
‘‘(ix) Chugachmuit.
‘‘(x) Tlingit Haida Central Council.
‘‘(xi) Kodiak Area Native Association.
‘‘(xii) Copper River Native Associa-
tion.
129
‘‘(5) STATE.—Except as otherwise specifically
provided, the term ‘State’ means the 50 States of
the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States
Virgin Islands, Guam, and American Samoa.’’.
SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELI-
GIOUS, OR PRIVATE ORGANIZATIONS.
(a) IN GENERAL.—
(1) STATE OPTIONS.—A State may—
(A) administer and provide services under
the programs described in subparagraphs (A)
and (B)(i) of paragraph (2) through contracts
with charitable, religious, or private organiza-
tions; and
(B) provide beneficiaries of assistance
under the programs described in subparagraphs
(A) and (B)(ii) of paragraph (2) with certifi-
cates, vouchers, or other forms of disbursement
which are redeemable with such organizations.
(2) PROGRAMS DESCRIBED.—The programs de-
scribed in this paragraph are the following pro-
grams:
(A) A State program funded under part A
of title IV of the Social Security Act (as amend-
ed by section 103 of this Act).
130
(B) Any other program established or
modified under title I, II, or VI of this Act,
that—
(i) permits contracts with organiza-
tions; or
(ii) permits certificates, vouchers, or
other forms of disbursement to be provided
to beneficiaries, as a means of providing
assistance.
(b) RELIGIOUS ORGANIZATIONS.—The purpose of
this section is to allow States to contract with religious
organizations, or to allow religious organizations to accept
certificates, vouchers, or other forms of disbursement
under any program described in subsection (a)(2), on the
same basis as any other nongovernmental provider without
impairing the religious character of such organizations,
and without diminishing the religious freedom of bene-
ficiaries of assistance funded under such program.
(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGA-
NIZATIONS.—In the event a State exercises its authority
under subsection (a), religious organizations are eligible,
on the same basis as any other private organization, as
contractors to provide assistance, or to accept certificates,
vouchers, or other forms of disbursement, under any pro-
gram described in subsection (a)(2) so long as the pro-
131
grams are implemented consistent with the Establishment
Clause of the United States Constitution. Except as pro-
vided in subsection (k), neither the Federal Government
nor a State receiving funds under such programs shall dis-
criminate against an organization which is or applies to
be a contractor to provide assistance, or which accepts cer-
tificates, vouchers, or other forms of disbursement, on the
basis that the organization has a religious character.
(d) RELIGIOUS CHARACTER AND FREEDOM.—
(1) RELIGIOUS
ORGANIZATIONS.—A religious
organization with a contract described in subsection
(a)(1)(A), or which accepts certificates, vouchers, or
other forms of disbursement under subsection
(a)(1)(B), shall retain its independence from Fed-
eral, State, and local governments, including such
organization’s control over the definition, develop-
ment, practice, and expression of its religious beliefs.
(2) ADDITIONAL
SAFEGUARDS.—Neither the
Federal Government nor a State shall require a reli-
gious organization to—
(A) alter its form of internal governance;
or
(B) remove religious art, icons, scripture,
or other symbols;
132
in order to be eligible to contract to provide assist-
ance, or to accept certificates, vouchers, or other
forms of disbursement, funded under a program de-
scribed in subsection (a)(2).
(e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—
(1) IN GENERAL.—If an individual described in
paragraph (2) has an objection to the religious char-
acter of the organization or institution from which
the individual receives, or would receive, assistance
funded under any program described in subsection
(a)(2), the State in which the individual resides shall
provide such individual (if otherwise eligible for such
assistance) within a reasonable period of time after
the date of such objection with assistance from an
alternative provider that is accessible to the individ-
ual and the value of which is not less than the value
of the assistance which the individual would have re-
ceived from such organization.
(2) INDIVIDUAL DESCRIBED.—An individual de-
scribed in this paragraph is an individual who re-
ceives, applies for, or requests to apply for, assist-
ance under a program described in subsection (a)(2).
(f) EMPLOYMENT PRACTICES.—A religious organiza-
tion’s exemption provided under section 702 of the Civil
Rights Act of 1964 (42 U.S.C. 2000e–1a) regarding em-
133
ployment practices shall not be affected by its participa-
tion in, or receipt of funds from, programs described in
subsection (a)(2).
(g) 
NONDISCRIMINATION
AGAINST
BENE-
FICIARIES.—Except as otherwise provided in law, a reli-
gious organization shall not discriminate against an indi-
vidual in regard to rendering assistance funded under any
program described in subsection (a)(2) on the basis of reli-
gion, a religious belief, or refusal to actively participate
in a religious practice.
(h) FISCAL ACCOUNTABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2), any religious organization contracting to
provide assistance funded under any program de-
scribed in subsection (a)(2) shall be subject to the
same regulations as other contractors to account in
accord with generally accepted auditing principles
for the use of such funds provided under such pro-
grams.
(2) LIMITED AUDIT.—If such organization seg-
regates Federal funds provided under such programs
into separate accounts, then only the financial as-
sistance provided with such funds shall be subject to
audit.
134
(i) COMPLIANCE.—Any party which seeks to enforce
its rights under this section may assert a civil action for
injunctive relief exclusively in an appropriate State court
against the entity or agency that allegedly commits such
violation.
(j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN
PURPOSES.—No funds provided directly to institutions or
organizations to provide services and administer programs
under subsection (a)(1)(A) shall be expended for sectarian
worship, instruction, or proselytization.
(k) PREEMPTION.—Nothing in this section shall be
construed to preempt any provision of a State constitution
or State statute that prohibits or restricts the expenditure
of State funds in or by religious organizations.
SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY
CAREGIVERS FOR THEIR GRANDCHILDREN.
(a) IN GENERAL.—Not later than 90 days after the
date of the enactment of this Act, the Secretary of Com-
merce, in carrying out section 141 of title 13, United
States Code, shall expand the data collection efforts of the
Bureau of the Census (in this section referred to as the
‘‘Bureau’’) to enable the Bureau to collect statistically sig-
nificant data, in connection with its decennial census and
its mid-decade census, concerning the growing trend of
135
grandparents who are the primary caregivers for their
grandchildren.
(b) EXPANDED CENSUS QUESTION.—In carrying out
subsection (a), the Secretary of Commerce shall expand
the Bureau’s census question that details households
which include both grandparents and their grandchildren.
The expanded question shall be formulated to distinguish
between the following households:
(1) A household in which a grandparent tempo-
rarily provides a home for a grandchild for a period
of weeks or months during periods of parental dis-
tress.
(2) A household in which a grandparent pro-
vides a home for a grandchild and serves as the pri-
mary caregiver for the grandchild.
SEC. 106. 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
136
(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. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.
(a) STUDY.—The Secretary shall, in cooperation with
the States, study and analyze outcomes measures for eval-
uating the success of the States in moving individuals out
of the welfare system through employment as an alter-
native to the minimum participation rates described in
section 407 of the Social Security Act. The study shall
include a determination as to whether such alternative
outcomes measures should be applied on a national or a
137
State-by-State basis and a preliminary assessment of the
effects of section 409(a)(5)(C) of such Act.
(b) REPORT.—Not later than September 30, 1998,
the Secretary shall submit to the Committee on Finance
of the Senate and the Committee on Ways and Means of
the House of Representatives a report containing the find-
ings of the study required by subsection (a).
SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SE-
CURITY ACT.
(a) AMENDMENTS TO TITLE II.—
(1) 
Section 
205(c)(2)(C)(vi) 
(42 
U.S.C.
405(c)(2)(C)(vi)), as so redesignated by section
321(a)(9)(B) of the Social Security Independence
and Program Improvements Act of 1994, is amend-
ed—
(A) by inserting ‘‘an agency administering
a program funded under part A of title IV or’’
before ‘‘an agency operating’’; and
(B) by striking ‘‘A or D of title IV of this
Act’’ and inserting ‘‘D of such title’’.
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is
amended by inserting ‘‘under a State program fund-
ed under’’ before ‘‘part A of title IV’’.
(b) AMENDMENT TO PART B OF TITLE IV.—Section
422(b)(2) (42 U.S.C. 622(b)(2)) is amended by striking
138
‘‘under the State plan approved’’ and inserting ‘‘under the
State program funded.’’.
(c) AMENDMENTS TO PART D OF TITLE IV.—
(1) Section 451 (42 U.S.C. 651) is amended by
striking ‘‘aid’’ and inserting ‘‘assistance under a
State program funded’’.
(2) 
Section 
452(a)(10)(C) 
(42 
U.S.C.
652(a)(10)(C)) is amended—
(A) by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance
under a State program funded under part A’’;
(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’; and
(C) by striking ‘‘under section 402(a)(26)
or’’ 
and 
inserting 
‘‘pursuant 
to 
section
408(a)(4) or under section’’.
(3) 
Section 
452(a)(10)(F) 
(42 
U.S.C.
652(a)(10)(F)) is amended—
(A) by striking ‘‘aid under a State plan 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’’.
139
(4) Section 452(b) (42 U.S.C. 652(b)) is
amended in the first sentence by striking ‘‘aid under
the State plan approved under part A’’ and inserting
‘‘assistance under the State program funded under
part A’’.
(5) 
Section 
452(d)(3)(B)(i) 
(42 
U.S.C.
652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’
and inserting ‘‘1115(b)’’.
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.
652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is
being paid under the State’s plan approved under
part A or E’’ and inserting ‘‘assistance is being pro-
vided under the State program funded under part
A’’.
(7) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended in the matter following
clause (iii) by striking ‘‘aid was being paid under the
State’s plan approved under part A or E’’ and in-
serting ‘‘assistance was being provided under the
State program funded under part A’’.
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended in the matter following subparagraph
(B)—
(A) by striking ‘‘who is a dependent child’’
and inserting ‘‘with respect to whom assistance
186
(I) the amount described in
clause (i)(I) of this subparagraph;
minus
(II) any obligations of the Fed-
eral Government to the State under
part A of title IV of the Social Secu-
rity Act (as in effect on September
30, 1995) with respect to expendi-
tures by the State on or after October
1, 1995.
(iii) CHILD
CARE
OBLIGATIONS
EX-
CLUDED IN DETERMINING FEDERAL AFDC
OBLIGATIONS.—As used in this subpara-
graph, the term ‘‘obligations of the Federal
Government to the State under part A of
title IV of the Social Security Act’’ does
not include any obligation of the Federal
Government with respect to child care ex-
penditures by the State.
(C) SUBMISSION OF STATE PLAN FOR FIS-
CAL
YEAR
1996
DEEMED
ACCEPTANCE
OF
GRANT LIMITATIONS AND FORMULA.—The sub-
mission of a plan by a State pursuant to sub-
paragraph (A) is deemed to constitute the
State’s acceptance of the grant reductions
187
under subparagraph (B)(ii) (including the for-
mula for computing the amount of the reduc-
tion).
(D) DEFINITIONS.—As used in this para-
graph:
(i) STATE AFDC PROGRAM.—The term
‘‘State AFDC program’’ means the State
program under parts A and F of title IV
of the Social Security Act (as in effect on
September 30, 1995).
(ii) STATE.—The term ‘‘State’’ means
the 50 States and the District of Colum-
bia.
(2) CLAIMS, ACTIONS, AND
PROCEEDINGS.—
The amendments made by this title shall not apply
with respect to—
(A) powers, duties, functions, rights,
claims, penalties, or obligations applicable to
aid, assistance, or services provided before the
effective date of this title under the provisions
amended; and
(B) administrative actions and proceedings
commenced before such date, or authorized be-
fore such date to be commenced, under such
provisions.
195
of determining an individual’s eligibility, schedule a review
of such individual’s continuing eligibility if the Commis-
sioner determines that a review is necessary to preserve
the integrity of the supplemental security income program.
‘‘(3) The Commissioner may revise a determination
made under paragraph (1) and schedule a review under
paragraph (2)(B), if the Commissioner obtains credible
evidence that an individual may no longer be eligible for
benefits or the Commissioner determines that a review is
necessary to maintain the integrity of the supplemental
security income program. Information obtained under sec-
tion 1137 may be used as the basis to schedule a review.
‘‘(4)(A) The requirements of sections 1614(a)(4) and
1633 shall apply to reviews conducted under this sub-
section.
‘‘(B) Such reviews may be conducted by the applica-
ble State agency or the Commissioner, whichever is appro-
priate.
‘‘(5) Not later than 3 months after the date of the
enactment of this subsection, the Commissioner shall es-
tablish a schedule for reviewing the continuing eligibility
of each individual who is receiving benefits pursuant to
section 1614(a)(3) on such date of enactment and who
has attained 18 years of age, unless such individual is ex-
empt under paragraph (2)(C). Such review shall be sched-