(A) in subclause (II) by inserting ‘‘and’’ at
the end;
(B) in subclause (III), by striking ‘‘; and’’
and inserting a period; and
(C) by striking subclause (IV).
(b) STATES REQUIRED TO ENROLL AFDC RECIPI-
ENTS WHO ARE NOT PARTICIPATING IN THE JOBS PRO-
GRAM AND ARE NOT EXEMPT FROM SUCH PARTICIPA-
TION IN A CWEP.—Section 402(a) of such Act (42 U.S.C.
602(a)) is amended—
(1) in paragraph (44), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (45), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (45) the fol-
lowing:
‘‘(46)(A) require each recipient of aid under the
plan who has received such aid for at least 6 con-
secutive months, is not participating in the program
of the State under part F or any other program
which offers substantially equivalent education, job
training, or work activities designed to lead to em-
ployment, and is not described by any clause of
paragraph (19)(C), to participate in the State com-
munity work experience program established in ac-
cordance with section 482(f) for a number of hours
per month equal to the amount of such aid payable
monthly with respect to the family of which the re-
cipient is a member, divided by the greater of the
Federal minimum hourly wage or the applicable
State minimum hourly wage;
‘‘(B) prohibit any such aid recipient from being
assigned to any position of employment which was
created before the date of the enactment of this
paragraph; and
‘‘(C) require the State to regularly inspect and
report to the Secretary and the Secretary of Labor
on the sites, facilities, and procedures of the commu-
nity work experience program.’’.
SEC. 4. FRAUD REDUCTION.
(a) STATES REQUIRED TO OPERATE TOLL-FREE
TELEPHONE NUMBER TO RECEIVE REPORTS OF FRAUD
OR ABUSE.—Section 402(a) of the Social Security Act (42
U.S.C. 602(a)), as amended by section 3(b) of this Act,
is amended—
(1) in paragraph (45), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (46), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (46) the fol-
lowing:
‘‘(47) require the State to operate on a 24-
hour-a-day basis, and publicize the existence of, a
telephone number to which calls may be placed,
without charge to the caller, to report fraud or abuse
in the program carried out under the plan.
(b) LIMITATION ON AUTHORIZATION OF APPROPRIA-
TIONS FOR THE OFFICE OF INVESTIGATIONS IN THE OF-
FICE OF INSPECTOR GENERAL OF THE DEPARTMENT OF
HEALTH AND HUMAN SERVICES.—For the Office of In-
vestigations in the Office of Inspector General, Depart-
ment of Health and Human Services, there are authorized
to be appropriated not to exceed $60,000,000 for fiscal
year 1996.
SEC. 5. ASSESSMENTS OF NEEDS AND SKILLS; EMPLOY-
ABILITY PLANS.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by the preceding provisions of this
Act, is amended—
(1) in paragraph (46), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (47), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (47) the fol-
lowing:
‘‘(48) provide that—
‘‘(A) during the first month after the effec-
tive date of this paragraph in which aid is re-
ceived under the plan, the requirements of sec-
tion 482(b)(1) shall apply with respect to the
recipient; and
‘‘(B) the employability plan developed for
the recipient must—
‘‘(i) be designed to move the recipient
from aid to work in not more than 2 years;
‘‘(ii) set specific goals and timetables
for reaching such goals; and
‘‘(iii) be reviewed and updated not less
frequently than every 6 months.’’.
SEC. 6. ELIGIBILITY REVIEW.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by the preceding provisions of this
Act, is amended—
(1) in paragraph (47), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (48), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (48) the fol-
lowing:
‘‘(49)(A) provide for the establishment of pan-
els, each composed of 3 former State judges, to—
‘‘(i) annually review the circumstances of
recipients of aid under the plan who have re-
ceived such aid for 2 consecutive years;
‘‘(ii) determine whether or not the recipi-
ent has fully participated in the program of the
State under part F and has made an effort to
become employed, and, if not, whether or not
circumstances beyond the control of the recipi-
ent have prevented such full participation or
employment; and
‘‘(iii) reduce the amount of such aid pay-
able to the recipient if the recipient is not meet-
ing the participation requirements of the pro-
gram under part F; and
‘‘(B) provide that the procedures established or
required by section 482(h) be used to resolve all dis-
putes arising out of determinations of such panels.’’.
SEC. 7. FAMILY PROVISIONS.
(a) STATES
REQUIRED
TO
OFFER
PARENTING
COURSES TO ALL TEENAGE PARENTS NOT IN SCHOOL.—
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by the preceding provisions of this
Act, is amended—
(1) in paragraph (48), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (49), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (49) the fol-
lowing:
‘‘(50) require the State to make available to all
parents in the State who have not attained the age
of 20 years and who are not attending school, a
course of instruction in parenting which includes
topics such as family planning, health, nutrition, and
child development.’’.
(b) STATES REQUIRED TO ESTABLISH INCENTIVES
TO USE CERTAIN CONTRACEPTIVE METHODS.—
(1) IN GENERAL.—Section 402(a) of the Social
Security Act (42 U.S.C. 602(a)), as amended by the
preceding provisions of this Act, is amended—
(A) in paragraph (49), by striking ‘‘and’’
after the semicolon;
(B) in paragraph (50), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by inserting after paragraph (50) the
following:
tures to carry out a program under part F in the
fiscal year 1994, 100 percent.’’.
SEC. 9. WORK INCENTIVES; REDUCTION OF BARRIERS TO
EMPLOYMENT.
(a) EARNED INCOME DISREGARD CHANGED TO EN-
COURAGE EMPLOYMENT.—
(1) IN GENERAL.—Section 402(a)(8)(B)(ii) of
the Social Security Act (42 U.S.C. 602(a)(8)(B)(ii))
is amended—
(A) in subclause (I), by striking ‘‘—’’ and
all that follows through ‘‘(b)’’; and
(B) in subclause (II)—
(i) by striking ‘‘the provisions of
subclause (II) of such subparagraph to any
month after such month, or apply’’; and
(ii) by striking ‘‘either’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 402(a)(37) of such Act (42
U.S.C. 602(a)(37)) is amended by striking
‘‘paragraph (8)(B)(ii)(II)’’ and inserting ‘‘the
inapplicability of paragraph (8)(A)(iv)’’.
(B) Section 402(g)(1)(A)(ii) of such Act
(42 U.S.C. 602(g(1)(a)(II)) is amended by
striking ‘‘subsection (a)(8)(B)(ii)(II)’’ and in-
serting 
‘‘the 
inapplicability 
of 
subsection
(a)(8)(A)(iv)’’.
(C) Section 482(e)(2)(G)(ii) of such Act
(42 U.S.C. 682(e)(2)(G)(ii)) is amended by
striking 
‘‘the 
provisions 
of 
subparagraph
(A)(iv)’’ and all that follows and inserting ‘‘sec-
tion 402(a)(8)(A)(iv) without regard to the time
limitation of such section’’.
(D) Section 1925(a)(1) of such Act (42
U.S.C. 1396r–6(a)(1)) is amended by striking
‘‘section 402(a)(8)(B)(ii)(II)’’ and inserting
‘‘the 
inapplicability 
of 
section
402(a)(8)(A)(iv)’’.
(b) OPTIONAL STATE EXTENSION OF MEDICAID EN-
ROLLMENT FOR CERTAIN FORMER AFDC RECIPIENTS.—
(1) OPTIONAL EXTENSION FOR 2 ADDITIONAL
YEARS.—
(A) IN GENERAL.—Section 1925(b)(1) of
such Act (42 U.S.C. 1396r–6(b)(1)) is amended
by striking the period at the end and inserting
the following: ‘‘, and may provide that the State
shall offer to each such family the option of ex-
tending coverage under this subsection for any
of the first 4 succeeding 6-month periods, in
the same manner and under the same condi-
tions as the option of extending coverage under
this subsection for the first succeeding 6-month
period.’’.
(B) 
CONFORMING
AMENDMENT.—The
heading for such section is amended by striking
‘‘REQUIREMENT’’ and inserting ‘‘IN GENERAL’’.
(2) PREMIUM FOR ADDITIONAL EXTENSION PE-
RIODS BASED ON SLIDING SCALE.—
(A) IN GENERAL.—Section 1925(b)(5)(B)
of such Act (42 U.S.C. 1396r–6(b)(5)(B)) is
amended by adding at the end the following
new sentence: ‘‘With respect to such a premium
in a premium payment period occurring during
the 2nd, 3rd, 4th, or 5th additional extension
period provided under this subsection, the State
shall (subject to subparagraph (C)) base the
amount of the premium on a sliding scale based
on the family’s ability to pay the premium.’’.
(B) 
CONFORMING
AMENDMENT.—The
heading for such section is amended by striking
‘‘OFFERED’’ and inserting ‘‘OFFERED OR FAM-
ILY INCOME’’.
(3) OTHER CONFORMING AMENDMENTS.—Sec-
tion 1925(b) of such Act (42 U.S.C. 1396r–6(b)) is
amended—
(A) in the heading, by striking ‘‘EXTEN-
SION’’ and inserting ‘‘EXTENSIONS’’;
(B) in paragraph (2)(B)(ii)—
(i) in the heading, by striking ‘‘PE-
RIOD’’ and inserting ‘‘PERIODS’’, and
(ii) by striking ‘‘in the period’’ and in-
serting ‘‘in each of the 6-month periods’’;
(C) in paragraph (3)(A), by striking ‘‘the
6-month period’’ and inserting ‘‘any 6-month
period’’;
(D) in paragraph (4)(A), by striking ‘‘the
extension period’’ and inserting ‘‘any extension
period’’; and
(E) in paragraph (5)(D)(i), by striking ‘‘is
a 3-month period’’ and all that follows and in-
serting the following: ‘‘is, with respect to a par-
ticular 6-month additional extension period pro-
vided under this subsection, a 3-month period
beginning with the 1st or 4th month of such ex-
tension period.’’.
(4) EFFECTIVE DATE.—The amendments made
by paragraphs (1), (2), and (3) shall apply to cal-
endar quarters beginning on or after January 1,
1996.
(c) STATE OPTION TO EXTEND CHILD CARE FOR UP
TO 3 YEARS.—Section 402(g)(1)(A)(iii) of such Act (42
U.S.C. 602(g)(1)(A)(iii)) is amended by inserting ‘‘(or, at
the option of the State, a period of not more than 36
months)’’ after ‘‘12 months’’.
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