789
child was determined eligible for such pay-
ments; and
‘‘(B) the adoption were treated as having
never occurred.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to payments under part E of title
IV of the Social Security Act in fiscal years beginning on
or after October 1, 1995.
SEC. 13217. TIME FRAME FOR JUDICIAL DETERMINATIONS
ON VOLUNTARY PLACEMENTS.
(a) IN GENERAL.—Section 472(e) (42 U.S.C. 672(e))
is amended—
(1) by striking ‘‘No’’ and inserting ‘‘(1) Except
as provided in paragraph (2), no’’; and
(2) by adding at the end the following:
‘‘(2) If the judicial determination referred to in
paragraph (1) is made after the 180-day period de-
scribed therein, the payments referred to therein
may not be made for the period that begins at the
end of the 180-day period and ends 180 days after
the date of the judicial determination, but shall (un-
less otherwise prohibited) be made for periods there-
after.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall be effective with respect to foster care
790
maintenance payments made, under State plans in fiscal
year 1996 and succeeding fiscal years, on behalf of chil-
dren placed in foster care on or after October 1, 1995.
SEC. 13218. STUDY OF REASONABLE EFFORTS.
(a) IN GENERAL.—The Secretary of Health and
Human Services shall conduct a study of the implementa-
tion by the States of section 471(a)(15) of the Social Secu-
rity Act, giving particular attention to—
(1) standards used by States in determining
what action to take, and whether and for how long
to continue efforts—
(A) before the placement of a child in fos-
ter care, to prevent or eliminate the need for re-
moval of the child from the home of the child;
and
(B) to return a child home rather than to
seek some other planned, permanent placement;
and
(2) the responses of the courts to the State ac-
tions described in paragraph (1) of this subsection,
including whether such responses facilitate or im-
pede the achievement by State agencies of the objec-
tives of such section 471(a)(15).
(b) REPORT AND RECOMMENDATIONS.—Within 18
months after the date of the enactment of this Act, the
791
Secretary of Health and Human Services shall submit to
the Congress a report, with such recommendations as the
Secretary finds appropriate, based on the results of the
study required by subsection (a) of this section, which de-
scribes State practices that the Secretary has found effec-
tive in achieving the objectives of section 471(a)(15) of
the Social Security Act, and, if appropriate, shall set forth
model practices for consideration by the States.
SEC. 13219. ENHANCED MATCH FOR AUTOMATED DATA
SYSTEMS.
(a) PAYMENTS TO STATES.—
(1) 
IN
GENERAL.—Section 
474(a)(3) 
(42
U.S.C. 674(a)(3)) is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B);
(B) by redesignating subparagraph (C) as
subparagraph (E); and
(C) by inserting after subparagraph (B)
the following:
‘‘(C) 90 percent of so much of such ex-
penditures as are for the planning, design, de-
velopment, or installation of statewide mecha-
nized data collection and information retrieval
systems (including 90 percent of the full
amount of expenditures for hardware compo-
792
nents for such systems) but only to the extent
that such systems—
‘‘(i) meet the requirements imposed
by regulations promulgated pursuant to
section 479(b)(2);
‘‘(ii) to the extent practicable, are ca-
pable of interfacing with the State data
collection system that collects information
relating to child abuse and neglect;
‘‘(iii) to the extent practicable, have
the capability of interfacing with, and re-
trieving information from, the State data
collection system that collects information
relating to the eligibility of individuals
under part A (for the purposes of facilitat-
ing verification of eligibility of foster chil-
dren); and
‘‘(iv) are determined by the Secretary
to be likely to provide more efficient, eco-
nomical, and effective administration of
the programs carried out under a State
plan approved under part B or this part;
and
‘‘(D) 50 percent of so much of such ex-
penditures as are for the operation of the state-
793
wide mechanized data collection and informa-
tion retrieval systems referred to in subpara-
graph (C); and’’.
(2) TREATMENT OF STATE EXPENDITURES FOR
DATA
COLLECTION
AND
INFORMATION
RETRIEVAL
SYSTEMS.—Section 474 (42 U.S.C. 674), as amend-
ed by section 13224 of this Act, is amended by add-
ing at the end the following:
‘‘(c) AUTOMATED
DATA
COLLECTION
EXPENDI-
TURES.—The Secretary shall treat as necessary for the
proper and efficient administration of the State plan all
expenditures of a State necessary in order for the State
to plan, design, develop, install, and operate data collec-
tion and information retrieval systems described in sub-
section (a)(3)(C), without regard to whether the systems
may be used with respect to foster or adoptive children
other than those on behalf of whom foster care mainte-
nance payments or adoption assistance payments may be
made under this part.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to expenditures during
fiscal years 1994, 1995, and 1996.
(b) TERMINATION OF ENHANCED MATCH.—
(1) IN
GENERAL.—Section 474(a)(3)(C) (42
U.S.C. 674(a)(3)(C)), as amended by subsection (a)
794
of this section, is amended by striking ‘‘90 percent’’
each place such term appears and inserting ‘‘50 per-
cent’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply to expenditures during
fiscal years beginning on or after October 1, 1996.
SEC. 13220. PERIODIC REEVALUATION OF FOSTER CARE
MAINTENANCE PAYMENTS.
(a) IN GENERAL.—Section 471(a)(11) (42 U.S.C.
671(a)(11)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(11)’’;
(2) by striking ‘‘and amounts paid as foster
care maintenance payments and adoption assist-
ance’’; and
(3) by adding at the end the following:
‘‘(B) provides that, at least once every 3 years,
the State agency will review the amount paid as fos-
ter care maintenance payments and adoption assist-
ance payments to ensure their continuing appro-
priateness, and will submit to the Secretary (and
make available to the public) a report on the results
of the review, in such form and manner as the Sec-
retary may by regulation require, which contains, at
a minimum—
795
‘‘(i) a statement of the manner in which
the foster care maintenance payment level is de-
termined, including information on the cost of
foster care with respect to which such payments
are made;
‘‘(ii) information on the amount of the
basic foster care maintenance payment level,
and as to whether such payment level includes
an amount to cover the cost of clothing, and
whether such payment level varies by the type
of care or the special needs or age of the child,
and, if so, the payment levels for each special
needs, care, or age category;
‘‘(iii) if such payments are not made at a
different rate for children who test positive for
human immunodeficiency virus, have acquired
immune deficiency syndrome, are addicted to
drugs, suffer from complications due to expo-
sure to drugs or alcohol, or have other severe
special needs, the reasons therefor; and
‘‘(iv) information on any limitations im-
posed by the State on adoption assistance pay-
ment levels;’’.
796
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective with respect to calendar
quarters beginning on or after October 1, 1994.
SEC. 13221. DISPOSITIONAL HEARING.
Section 475(5)(C) (42 U.S.C. 675(5)(C)) is amended
by striking ‘‘periodically’’ and inserting ‘‘not less fre-
quently than every 12 months’’.
SEC. 13222. HEALTH CARE PLANS FOR FOSTER CHILDREN.
(a) IN GENERAL.—Section 475(1)(C) (42 U.S.C.
675(1)(C)) is amended—
(1) in clause (vii), by striking ‘‘and’’; and
(2) by redesignating clause (viii) as clause (ix)
and inserting after clause (vii) the following:
‘‘(viii) a record indicating that the child’s
foster care provider was advised (where appro-
priate) of the child’s eligibility for early and
periodic screening, diagnostic, and treatment
services under title XIX; and’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to case plans established or re-
viewed on or after January 1, 1994.
SEC. 13223. INDEPENDENT LIVING.
(a) TREATMENT
OF ASSETS
OF PARTICIPATING
YOUTHS.—Section 477 (42 U.S.C. 677) is amended—
797
(1) by redesignating subsection (i) as subsection
(j); and
(2) by inserting after subsection (h) the follow-
ing:
‘‘(i) Notwithstanding any other provision of this title,
with respect to a child who is included in a program estab-
lished by a State agency under subsection (a), an amount
of the assets of the child which would otherwise be re-
garded as resources for purposes of determining eligibility
for benefits under this title may be disregarded for the
purpose of allowing the child to establish a household, pur-
sue education, or otherwise complete the transition to
independent living. The amount disregarded may not ex-
ceed an amount determined by the State agency to be rea-
sonable for such purposes.’’.
(b) PERMANENT EXTENSION OF PROGRAM.—Section
477 (42 U.S.C. 677) is amended—
(1) in subsection (a)(1), by striking the 3rd
sentence;
(2) in subsection (c), by striking ‘‘of the fiscal
years 1988 through 1992’’ and inserting ‘‘succeed-
ing fiscal year’’;
(3) in subsection (e)(1)(A), by striking ‘‘each of
the fiscal years 1987 through 1992’’ and inserting
‘‘fiscal year 1987 and any succeeding fiscal year’’;
798
(4) in subsection (e)(1)(B), by striking ‘‘fiscal
years 1991 and 1992’’ and inserting ‘‘fiscal year
1991 and any succeeding fiscal year’’; and
(5) in subsection (e)(1)(C)(ii), by striking ‘‘fis-
cal year 1992’’ and inserting ‘‘any succeeding fiscal
year’’.
(c) EFFECTIVE DATES.—
(1) TREATMENT OF ASSETS OF PARTICIPATING
YOUTHS.—The amendments made by subsection (a)
shall apply to activities in fiscal years beginning on
or after October 1, 1995.
(2) PERMANENT
EXTENSION
OF
PROGRAM.—
The amendments made by subsection (b) shall apply
to activities engaged in on or after October 1, 1992.
SEC. 13224. ELIMINATION OF FOSTER CARE CEILINGS AND
OF AUTHORITY TO TRANSFER UNUSED FOS-
TER CARE FUNDS TO CHILD WELFARE SERV-
ICES PROGRAMS.
(a) REPEAL.—Subsections (b) and (c) of section 474
(42 U.S.C. 674(b) and (c)) are hereby repealed.
(b) CONFORMING AMENDMENTS.—Section 474 (42
U.S.C. 674) is amended—
(1) in subsection (d)(1)—
(A) by striking ‘‘subsections (a), (b), and
(c)’’ and inserting ‘‘subsection (a)’’; and
799
(B) by striking ‘‘the provisions of such
subsections’’ and inserting ‘‘subsection (a)’’;
and
(2) by redesignating subsection (d) as sub-
section (b).
(c) EFFECTIVE DATE.—The amendments and repeal
made by this section shall apply to payments for calendar
quarters beginning on or after October 1, 1993.
SEC. 13225. TRAINING OF AGENCY STAFF AND FOSTER
AND ADOPTIVE PARENTS.
(a) IN GENERAL.—Section 8006(b) of the Omnibus
Budget Reconciliation Act of 1989 (42 U.S.C. 674 note)
is amended by striking ‘‘, and before October 1, 1992’’.
(b) RETROACTIVE APPLICABILITY.—The Social Secu-
rity Act shall be applied and administered as if the amend-
ment made by subsection (a) had been made on October
1, 1992.
SEC. 13226. ON-SITE REVIEWS AND AUDITS OF STATE
CLAIMS FOR FOSTER CARE AND ADOPTION
ASSISTANCE.
(a) ON-SITE REVIEWS
AND AUDITS
OF STATE
CLAIMS.—Section 474 (42 U.S.C. 674), as amended by
sections 13224 and 13219(a)(2) of this Act, is amended—
(1) by redesignating subsection (c) as sub-
section (d); and
800
(2) by inserting after subsection (b) the follow-
ing:
‘‘(c) ON-SITE REVIEWS
AND AUDITS
OF STATE
CLAIMS FOR PAYMENT.—
‘‘(1) 
REGULATIONS
SPECIFYING
REVIEW
STANDARDS.—The Secretary shall promulgate regu-
lations applicable to on-site reviews and audits of
State expenditures for foster care maintenance pay-
ments and adoption assistance payments under this
part, which specify—
‘‘(A) the criteria to be used to determine
the appropriateness of expenditures identified in
sampled case files;
‘‘(B) the criteria to be used to determine
the appropriateness of expenditures for child
placement services and plan administration; and
‘‘(C) the types of erroneous expenditures
which will be disregarded for purposes of deter-
mining the appropriateness of payments under
this part (including erroneous payments result-
ing from the State’s reliance upon and correct
use of formal written statements of Federal law
or policy provided to the State by the Sec-
retary).
801
‘‘(2) DEVELOPMENT
AND
PUBLICATION
OF
WRITTEN STANDARDS AND PROCEDURES.—The Sec-
retary, after consultation with organizations rep-
resenting State and local governmental agencies with
responsibility for foster care and adoption services
and other relevant agencies and organizations, shall
develop and furnish to State agencies a written de-
scription of the methods and procedures to be used
in the on-site audits and reviews referred to in para-
graph (1), which specify—
‘‘(A) the methods and procedures to be
used to select a sample of case files for review
or audit;
‘‘(B) the procedures to be used in review-
ing or auditing sampled case files to determine
erroneous expenditures;
‘‘(C) the procedures to be used to review or
audit State expenditures for child placement
services and plan administration; and
‘‘(D) the methodology to be used to ex-
trapolate from review or audit findings to all
expenditures under the State plan.
‘‘(3) ADVANCE NOTICE TO STATES.—The Sec-
retary shall not, in a review or audit of State ex-
penditures during a fiscal year, use any criterion
802
specified pursuant to paragraph (1), or any proce-
dure or methodology specified pursuant to para-
graph (2), which was not published in final regula-
tions or furnished in writing to the State (as appli-
cable) at least 3 months before the beginning of the
fiscal year.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to expenditures in fiscal years
beginning on or after October 1, 1994.
SEC. 13227. CONFORMITY REVIEWS.
(a) IN GENERAL.—Part A of title XI (42 U.S.C.
1301–1320b–13) is amended by inserting after section
1122 the following:
‘‘SEC. 1123. REVIEWS OF CHILD AND FAMILY SERVICES
PROGRAMS, AND OF FOSTER CARE AND
ADOPTION 
ASSISTANCE 
PROGRAMS, 
FOR
COMPLIANCE WITH STATE PLAN REQUIRE-
MENTS.
‘‘(a) IN GENERAL.—The Secretary shall not impose
a financial penalty on any State for any failure of the
State programs under parts B and E of title IV to comply
with any requirement of any State plan approved under
such part B or E, except pursuant to final regulations,
developed after consultation with State agencies admin-
803
istering such programs, which meet the requirements of
this section.
‘‘(b) ELEMENTS OF REVIEW SYSTEM.—The regula-
tions referred to in subsection (a) shall—
‘‘(1) specify the timetable for compliance re-
views of State programs, which—
‘‘(A) shall provide for annual reviews of
each State program during the 1st 2 years of
operation;
‘‘(B) shall provide for review of a State
program not later than 1 year following a re-
view in which the State program was found not
to be in substantial compliance with plan re-
quirements; and
‘‘(C) may provide for less frequent reviews
of State programs which have been found to be
in substantial compliance with plan require-
ments, but shall permit the Secretary to rein-
state more frequent reviews based on informa-
tion which indicates that the State program
may not be in compliance with plan require-
ments;
‘‘(2) specify the plan requirements subject to
review, and the criteria to be used to measure com-
pliance with such requirements and to determine
804
whether there is a substantial failure to comply with
a plan requirement;
‘‘(3) specify the method to be used to determine
the financial penalty to be imposed (subject to para-
graph (4)) for a failure to comply with plan require-
ments, which ensures that—
‘‘(A) a financial penalty will not be im-
posed with respect to a program, unless it is de-
termined that the program fails substantially to
so comply;
‘‘(B) a financial penalty will not be im-
posed for a failure to so comply resulting from
the State’s reliance upon and correct use of for-
mal written statements of Federal law or policy
provided to the State by the Secretary; and
‘‘(C) the amount of financial penalty is re-
lated to the extent of the noncompliance; and
‘‘(4) require the Secretary, with respect to any
State found to have failed substantially to comply
with plan requirements—
‘‘(A) to afford the State an opportunity to
adopt and implement a corrective action plan,
approved by the Secretary, designed to end the
noncompliance;
805
‘‘(B) to make technical assistance available
to the State to the extent necessary to enable
the State to develop and implement such a cor-
rective action plan;
‘‘(C) to suspend the imposition of any pen-
alty under this section while such a corrective
action plan is in effect; and
‘‘(D) to rescind any such penalty if the
noncompliance is ended by successful comple-
tion of such a corrective action plan.
‘‘(c) PROVISIONS FOR ADMINISTRATIVE AND JUDI-
CIAL REVIEW.—The regulations referred to in subsection
(a) shall—
‘‘(1) require the Secretary, not later than 10
days after a determination that a program of the
State is not in compliance with applicable plan
requirements, to notify the State of—
‘‘(A) the basis for the determination; and
‘‘(B) the amount of the financial penalty
(if any) imposed on the State;
‘‘(2) afford the State an opportunity to appeal
the determination to the Departmental Appeals
Board within 60 days after receipt of the notice de-
scribed in paragraph (1) (or, if later, after failure to
806
continue or to complete a corrective action plan);
and
‘‘(3) afford the State an opportunity to obtain
judicial review of an adverse decision of the Board,
within 60 days after the State receives notice of the
decision of the Board, by appeal to the district court
of the United States for the judicial district in which
the principal or headquarters office of the agency re-
sponsible for administering the program is located.’’.
(b) CONFORMING AMENDMENT.—Section 471(b) (42
U.S.C. 671(b)) is amended by striking all that follows the
1st sentence.
(c) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall take effect on the date of
the enactment of this Act.
(d) CONSTRUCTION.—This section shall not be con-
strued to prevent the Secretary, before the effective date
of final regulations meeting the requirements of section
1123 of the Social Security Act, from conducting compli-
ance reviews of State programs under parts B and E of
such Act for the purpose of providing information and
technical assistance to States concerning corrective actions
needed in order to comply with plan requirements applica-
ble to such programs.
807
SEC. 13228. REPEAL OF ANNUAL REPORT ON VOLUNTARY
PLACEMENT.
Section 102(e) of the Adoption Assistance and Child
Welfare Act of 1980 (42 U.S.C. 672 note) is hereby
repealed.
SEC. 13229. DEMONSTRATION PROJECTS.
Part A of title XI (42 U.S.C. 1301–1320b–13) is
amended by inserting after section 1128B the following:
‘‘SEC. 1129. DEMONSTRATION PROJECTS.
‘‘(a) IN GENERAL.—The Secretary may authorize not
more than 10 States to conduct demonstration projects
pursuant to this section which the Secretary finds are like-
ly to promote the objectives of part B or E of title IV.
‘‘(b) WAIVER
AUTHORITY.—The Secretary may
waive compliance with any requirement of part B or E
of title IV which (if applied) would prevent a State from
carrying out a demonstration project under this section
or prevent the State from effectively achieving the purpose
of such a project, except that the Secretary may not
waive—
‘‘(1) any provision of section 427 (as in effect
before October 1, 1994), section 422(b)(9) (as in ef-
fect after such date), or section 479; or
‘‘(2) any provision of such part E, to the extent
that the waiver would impair the entitlement of any
808
qualified child or family to benefits under a State
plan approved under such part E.
‘‘(c) TREATMENT AS PROGRAM EXPENDITURES.—
For purposes of parts B and E of title IV, the Secretary
shall consider the expenditures of any State to conduct
a demonstration project under this section to be expendi-
tures under subpart 1 or 2 of such part B, or under such
part E, as the State may elect.
‘‘(d) DURATION
OF
DEMONSTRATION.—A dem-
onstration project under this section may be conducted for
not more than 5 years.
‘‘(e) APPLICATION.—Any State seeking to conduct a
demonstration project under this section shall submit to
the Secretary an application, in such form as the Sec-
retary may require, which includes—
‘‘(1) a description of the proposed project, the
geographic area in which the proposed project would
be conducted, the children or families who would be
served by the proposed project, and the services
which would be provided by the proposed project
(which shall provide, where appropriate, for random
assignment of children and families to groups served
under the project and to control groups);
‘‘(2) a statement of the period during which the
proposed project would be conducted;
809
‘‘(3) a discussion of the benefits that are ex-
pected from the proposed project (compared to a
continuation of activities under the approved plan or
plans of the State);
‘‘(4) an estimate of the costs or savings of the
proposed project;
‘‘(5) a statement of program requirements for
which waivers would be needed to permit the pro-
posed project to be conducted;
‘‘(6) a description of the proposed evaluation
design; and
‘‘(7) such additional information as the Sec-
retary may require.
‘‘(f) EVALUATIONS; REPORT.—Each State authorized
to conduct a demonstration project under this section
shall—
‘‘(1) obtain an evaluation by an independent
contractor of the effectiveness of the project, using
an evaluation design approved by the Secretary
which provides for—
‘‘(A) comparison of methods of service de-
livery under the project, and such methods
under a State plan or plans, with respect to ef-
ficiency, economy, and any other appropriate
measures of program management;
810
‘‘(B) comparison of outcomes for children
and families (and groups of children and fami-
lies) under the project, and such outcomes
under a State plan or plans, for purposes of as-
sessing the effectiveness of the project in
achieving program goals; and
‘‘(C) any other information that the Sec-
retary may require; and
‘‘(2) provide interim and final evaluation re-
ports to the Secretary, at such times and in such
manner as the Secretary may require.
‘‘(g) COST NEUTRALITY.—The Secretary may not
authorize a State to conduct a demonstration project
under this section unless the Secretary determines that
the total amount of Federal funds that will be expended
under (or by reason of) the project over its approved term
(or such portion thereof or other period as the Secretary
may find appropriate) will not exceed the amount of such
funds that would be expended by the State under the State
plans approved under parts B and E of title IV if the
project were not conducted.’’.
SEC. 13230. PLACEMENT ACCOUNTABILITY.
(a) CASE PLAN REQUIREMENTS.—Section 475(5)(A)
(42 U.S.C. 675(5)(A)) is amended by adding at the end
the following: ‘‘which—
811
‘‘(i) if the child has been placed in a
foster family home or child-care institution
a substantial distance from the home of
the parents of the child, or in a State dif-
ferent from the State in which the home is
located, sets forth the reasons why such
placement is in the best interests of the
child, and
‘‘(ii) if the child has been placed in
foster care outside the State, requires that,
at least every 6 months, a caseworker on
the staff of the State agency of the State
in which the home of the parents of the
child is located, or of the State in which
the child has been placed, visit such child
in such home or institution and submit a
report on such visit to the State agency of
the State in which the home of the parents
of the child is located,’’.
(b) DISPOSITIONAL HEARING.—Section 475(5)(C)
(42 U.S.C. 675(5)(C)) is amended by inserting ‘‘and, in
the case of a child described in subparagraph (A)(ii),
whether the out-of-State placement continues to be appro-
priate and in the best interests of the child,’’ after ‘‘long-
term basis)’’.
812
(c) DATA COLLECTION.—Section 479(c)(3)(C) (42
U.S.C. 679(c)(3)(C)) is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
and
(2) by adding at the end the following:
‘‘(iii) children placed in foster care
outside the State, and’’.
(d) EFFECTIVE DATES.—The amendments made by
subsections (a), (b), and (c) shall be effective with respect
to fiscal years beginning on and after October 1, 1994.
SEC. 13231. PAYMENTS OF STATE CLAIMS FOR FOSTER
CARE AND ADOPTION ASSISTANCE.
Section 474(b) (42 U.S.C. 674(b)), as so redesig-
nated by section 13239(b)(2) of this Act, is amended by
adding at the end the following:
‘‘(4)(A) Within 60 days after receipt of a State claim
for expenditures pursuant to subsection (a), the Secretary
shall allow, disallow, or defer such claim.
‘‘(B) Within 15 days after a decision to defer such
a State claim, the Secretary shall notify the State of the
reasons for the deferral and of the additional information
necessary to determine the allowability of the claim.
‘‘(C) Within 90 days after receiving such necessary
information (in readily reviewable form), the Secretary
shall—
813
‘‘(i) disallow the claim, if able to complete the
review and determine that the claim is not allowable,
or
‘‘(ii) in any other case, allow the claim, subject
to disallowance (as necessary)—
‘‘(I) upon completion of the review, if it is
determined that the claim is not allowable; or
‘‘(II) on the basis of findings of an audit
or financial management review.’’.
SEC. 13232. MORATORIUM ON COLLECTION OF DISALLOW-
ANCES.
The Secretary of Health and Human Services shall
not—
(1) before October 1, 1994, reduce any pay-
ment to, withhold any payment from, or seek any re-
payment from any State under part B or E of title
IV of the Social Security Act by reason of a deter-
mination made in connection with a review of State
compliance with section 427 of such Act for any
Federal fiscal year before fiscal year 1995; or
(2) reduce any payment to, withhold any pay-
ment from, or seek any repayment from any State
under such part E by reason of a determination
made in connection with any on-site Federal finan-
814
cial review, or any audit conducted by the Inspector
General using similar methodologies.
SEC. 13233. BORDER REGION CHILD WELFARE WORKER
TRAINING DEMONSTRATION.
(a) IN GENERAL.—The Secretary shall make grants
to not more than 5 eligible institutions to train individuals
to deliver culturally sensitive and bilingual child welfare
services in areas of the United States that border on Mex-
ico, 1 of which grants shall be for training to deliver child
welfare services to historically unserved or underserved
populations in an urban center with a high concentration
of such populations.
(b) APPLICATIONS.—The Secretary shall approve an
application of an institution for a grant under this section
only if the application—
(1) demonstrates to the satisfaction of the Sec-
retary that the institution has a history of, or a plan
for, training students to deliver culturally sensitive
and bilingual child welfare services in a border
county;
(2) provides assurances that the institution will
develop and implement, in consultation with the
child welfare agency of the State in which the insti-
tution is located, a curriculum in the field of child
welfare services which—
815
(A) is sensitive to the culture of—
(i) the areas of the United States that
border on Mexico; or
(ii) in the case of the institution which
receives the urban center grant described
in subsection (a), the historically unserved
or underserved populations in the urban
center; and
(B) includes training for identification of
health problems of children and their families
and of child abuse and neglect;
(3) provides assurances that each individual
who receives a stipend with such training will enter
into an agreement with the institution under which
the individual agrees—
(A) to be employed for a period of years
equivalent to the period of such training, in a
public or private nonprofit family assistance
agency that provides services directly to resi-
dents of—
(i) the border county in which the
agency is located; or
(ii) in the case of the institution which
receives the urban center grant described
816
in subsection (a), the urban center in
which the agency is located; and
(B) if the individual fails to be so em-
ployed for such period, to repay to the Sec-
retary, in accordance with such conditions as
the Secretary may prescribe, all or part of the
amount of the stipend, plus interest, and, if ap-
plicable, reasonable collection fees; and
(4) provides that each agreement entered into
with an individual pursuant to paragraph (3) will
fully disclose the terms and conditions under which
the stipend is to be provided.
(c) EVALUATIONS.—Each institution that receives a
grant under this section shall develop and carry out a plan
for evaluating the effects of the training provided under
the grant, and shall submit to the Secretary a report on
the evaluation.
(d) DEFINITIONS.—As used in this section:
(1) FAMILY
ASSISTANCE
AGENCY.—The term
‘‘family assistance agency’’ means a child welfare
agency, family planning agency, hospital, clinic, com-
munity mental health facility, or drug and alcohol
treatment program.
(2) ELIGIBLE INSTITUTION.—The term ‘‘eligi-
ble institution’’ means a public or private nonprofit
817
institution of higher learning that is located in a
State that contains a border county.
(3) BORDER COUNTY.—The term ‘‘border coun-
ty’’ means—
(A) a United States county that borders on
Mexico; and
(B) a United States county that borders
on a county described in subparagraph (A).
(4) URBAN CENTER.—The term ‘‘urban center’’
means an area in a metropolitan statistical area, as
designated by the Office of Management and Budg-
et, which has a high incidence of individuals in his-
torically unserved or underserved populations who
are in need of social services, as determined by the
Secretary using the most recent and best available
information.
(5) HISTORICALLY
UNSERVED
OR
UNDER-
SERVED
POPULATIONS.—The 
term 
‘‘historically
unserved or underserved populations’’ includes—
(A) socially and economically disadvan-
taged populations;
(B) persons with limited English pro-
ficiency;
(C) populations residing in urban areas
and exhibiting a high incidence of child abuse,
818
neglect, or abandonment, as determined by the
Secretary;
(D) homeless persons (within the meaning
of section 103 of the Stewart B. McKinney
Homeless Assistance Act);
(E) persons who are, or are in danger of
becoming, 
infected 
with 
the 
human
immunodeficiency virus; and
(F) persons who abuse alcohol or drugs.
(6) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to carry out this section.
SEC. 13234. EFFECT OF FAILURE TO CARRY OUT STATE
PLAN.
(a) IN GENERAL.—Part A of title XI (42 U.S.C.
1301–1320b–13), as amended by section 13229 of this
Act, is amended by inserting after section 1129 the follow-
ing:
‘‘SEC. 1130. EFFECT OF FAILURE TO CARRY OUT STATE
PLAN.
‘‘In an action brought to enforce a provision of the
Social Security Act, such provision is not to be deemed
unenforceable because of its inclusion in a section of the
819
Act requiring a State plan or specifying the required con-
tents of a State plan. This section is not intended to limit
or expand the grounds for determining the availability of
private actions to enforce State plan requirements other
than by overturning any such grounds applied in Suter
v. Artist M., 112 S. Ct. 1360 (1992), but not applied in
prior Supreme Court decisions respecting such enforce-
ability: Provided, however, That this section is not in-
tended to alter the holding in Suter v. Artist M. that sec-
tion 471(a)(15) of the Act is not enforceable in a private
right of action.’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to actions pending on the date of
the enactment of this Act and to actions brought on or
after such date of enactment.
CHAPTER 2—CHILD SUPPORT
ENFORCEMENT
SEC. 13241. STATE 
PATERNITY 
ESTABLISHMENT 
PRO-
GRAMS.
(a) PERFORMANCE STANDARDS.—Section 452(g) (42
U.S.C. 652(g)) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘1991’’ and inserting
‘‘1994’’;
820
(B) by inserting ‘‘is based on reliable data
and’’ before ‘‘equals or exceeds’’; and
(C) by striking subparagraphs (A), (B),
and (C) and inserting the following:
‘‘(A) 75 percent;
‘‘(B) for a State with a paternity establishment
percentage of not less than 50 percent but less than
75 percent for the fiscal year, the paternity estab-
lishment percentage of the State for the immediately
preceding year plus 3 percentage points; or
‘‘(C) for a State with a paternity establishment
percentage of less than 50 percent for such fiscal
year, the paternity establishment percentage of the
State for the immediately preceding year plus 6 per-
centage points.’’; and
(2) in paragraph (2)—
(A) by striking ‘‘(or under all such plans)’’
each place such term appears;
(B) by inserting ‘‘or part E’’ after ‘‘under
part A’’ each place such term appears;
(C) by amending subparagraph (B) to read
as follows:
‘‘(B) the term ‘reliable data’ means the
most recent data available which are found by
821
the Secretary to be reliable for purposes of this
section.’’;
(D) by inserting ‘‘unless paternity is estab-
lished for such child’’ after ‘‘the death of a par-
ent’’;
(E) by striking ‘‘parent or’’ and inserting
‘‘parent,’’; and
(F) by inserting ‘‘, or any child with re-
spect to whom the State agency administering
the plan under part E determines (as provided
in section 454(4)(B)) that it is against the best
interest of such child to do so’’ after ‘‘cooperate
under section 402(a)(26)’’.
(b) STATE PLAN REQUIREMENTS.—
(1) REQUIRED
PROCEDURES.—Section 466(a)
(42 U.S.C. 666(a)) is amended—
(A) in paragraph (2)—
(i) by striking ‘‘at the option of the
State,’’; and
(ii) by inserting ‘‘and paternity estab-
lishment’’ after ‘‘support order issuance
and enforcement’’;
(B) in paragraph (5), by adding at the end
the following:
822
‘‘(C) Procedures for a simple civil process
for voluntarily acknowledging paternity under
which the State must explain the rights and re-
sponsibilities of acknowledging paternity, and
afford due process safeguards. Such procedures
must include (i) a hospital-based program for
the voluntary acknowledgment of paternity dur-
ing the period immediately before or after the
birth of a child, and (ii) the inclusion of signa-
ture lines on applications for official birth cer-
tificates which, once signed by the father and
the mother, are considered a voluntary acknowl-
edgment of paternity.
‘‘(D) Procedures under which the vol-
untary acknowledgment of paternity of a child
by an individual in the manner described in
subparagraph (C)(ii) creates a rebuttable or, at
the option of the State, conclusive presumption
that the individual is the father of the child,
and under which such a voluntary acknowledg-
ment is admissible as evidence of paternity.
‘‘(E) Procedures under which a voluntary
acknowledgment of paternity in the manner de-
scribed in subparagraph (C)(ii) must be recog-
nized as a basis for seeking a support order
823
without first requiring any further proceedings
to establish paternity.
‘‘(F) Procedures requiring that (i) any ob-
jection to genetic testing results be made in
writing within a specified number of days be-
fore any hearing at which such results may be
introduced into evidence, and (ii) if no objection
is made, the test results be admissible as evi-
dence of paternity without the need for founda-
tion testimony or other proof of authenticity or
accuracy.
‘‘(G) Procedures which create a rebuttable
or, at the option of the State, conclusive pre-
sumption of paternity of a child, upon genetic
testing results indicating a threshold probability
of the alleged father being the father of the
child.
‘‘(H) Procedures requiring a default order
to be entered in a paternity case upon a show-
ing that process has been served on the defend-
ant and any additional showing required by
State law.’’; and
(C) by inserting after paragraph (10) the
following:
824
‘‘(11) Procedures under which a State must
give full faith and credit to a determination of pater-
nity made by any other State, whether established
through voluntary acknowledgment or through ad-
ministrative or judicial processes.’’.
(2) FURNISHING
OF
SOCIAL
SECURITY
NUM-
BERS.—
(A) IN
GENERAL.—Section 466(a) (42
U.S.C. 666(a)), as amended by paragraph
(1)(C) of this subsection, is amended by insert-
ing after paragraph (11) the following:
‘‘(12)(A) Procedures under which, in the ad-
ministration of any law involving the issuance,
reissuance, or amendment of a birth certificate, the
State shall require each parent to furnish to the
State, or any agency or political subdivision thereof
having administrative responsibility for the law in-
volved, the social security account number (or num-
bers, if the parent has more than 1 such number)
issued to the parent, unless the State (in accordance
with regulations prescribed by the Secretary) finds
good cause for not requiring the furnishing of the
number.
‘‘(B) Procedures under which any number fur-
nished under subparagraph (A) shall be made avail-
825
able to the agency administering the State plan
under this part, in accordance with Federal or State
law or regulation.
‘‘(C) Procedures under which—
‘‘(i) any number furnished under subpara-
graph (A) shall not be recorded on the birth
certificate; and
‘‘(ii) any social security account number,
obtained with respect to the issuance by the
State of any birth certificate, shall not be used
for other than child support purposes, unless
section 7(a) of the Privacy Act of 1974 does
not prohibit the State from requiring the disclo-
sure of the number, by reason of the State hav-
ing adopted, before January 1, 1975, a statute
or regulation requiring such disclosure.’’.
(B) CONFORMING AMENDMENTS.—Section
205(c)(2)(C)(ii) (42 U.S.C. 405(c)(2)(C)(ii)) is
amended—
(i) by striking ‘‘(ii) In the administra-
tion of any law involving the issuance’’ and
inserting ‘‘(ii) In the administration of any
law involving the issuance, reissuance, or
amendment’’; and
826
(ii) by striking ‘‘any purpose other
than for the enforcement of child support
orders in effect in the State’’ and inserting
‘‘other than child support purposes’’.
(c) CONFORMING REPEAL.—Section 468 (42 U.S.C.
668) is hereby repealed.
(d) EFFECTIVE DATE.—The amendments and repeal
made by this section shall become effective with respect
to a State—
(1) on October 1, 1993, or, if later
(2) upon enactment by the legislature of the
State of all laws required by such amendments,
but in no event later than the 1st day of the 1st calendar
quarter beginning after the close of the 1st regular session
of the State legislature that begins after the date of the
enactment of this Act. For purposes of the preceding sen-
tence, in the case of a State that has a 2-year legislative
session, each year of such session shall be deemed to be
a separate regular session of the State legislature.
SEC. 13242. ENFORCEMENT OF HEALTH INSURANCE SUP-
PORT.
(a) STATE PLAN REQUIREMENTS.—Section 454(a)
(42 U.S.C. 654(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(23);
827
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (24) the fol-
lowing:
‘‘(25) provide assurances satisfactory to the
Secretary that the State has in effect laws applicable
to health insurers and insurance policies or pro-
grams subject to the laws of the State that—
‘‘(A) prohibit insurers’ consideration, in
determining an individual’s eligibility for or cov-
erage under any such policy or program, of
such individual’s eligibility for or coverage
under the plan of any State under title XIX;
‘‘(B) provide that, where an individual as-
signs rights to any State in accordance with
section 1912, that State is subrogated, to the
extent of medical assistance furnished, to the
individual’s rights under any health insurance
policy or program;
‘‘(C) prohibit insurers from applying, to
State agencies administering programs under
title XIX and acting as agents or subrogees (for
purposes of insurance policies or programs of
such insurers) of individuals receiving medical
assistance under such State programs, require-
828
ments (with respect to deadlines for filing
claims or any other matters) different from re-
quirements applicable to any other applicant,
beneficiary, agent, or subrogee;
‘‘(D) prohibit insurers from denying enroll-
ment of a child under the health insurance cov-
erage of the child’s parent on grounds that—
‘‘(i) the child does not reside with the
parent, or
‘‘(ii) the child was born out of wed-
lock;
‘‘(E) in any case where a parent is re-
quired by court or administrative order to pro-
vide health insurance coverage for a child, re-
quire insurers, without regard to otherwise ap-
plicable enrollment season restrictions—
‘‘(i) to permit such parent, upon ap-
plication, to enroll in family coverage (if
otherwise eligible and not already so en-
rolled), and to enroll such child under such
family coverage, and
‘‘(ii) where such a parent who is en-
rolled in family coverage fails to make ap-
plication, to enroll such child under such
family coverage upon application by the
829
child’s other parent or by the State agency
administering the program under this part
or title XIX; and
‘‘(F) in any case where a child is covered
under the health insurance of a noncustodial
parent, require insurers—
‘‘(i) to permit the custodial parent (or
service provider, with the custodial par-
ent’s approval), or any State agency ad-
ministering a program under title XIX, to
submit claims for covered services without
the approval of the noncustodial parent,
and
‘‘(ii) to make payment on claims sub-
mitted in accordance with clause (i) di-
rectly to the custodial parent, service pro-
vider, or State agency submitting such
claim;
‘‘(26) provide assurances satisfactory to the
Secretary that the State has in effect laws requiring
employers doing business in the State—
‘‘(A) upon notice of a court or administra-
tive order requiring an employee to provide
health insurance coverage for the employee’s
child, and upon application by such employee
830
(or, where such employee fails to make applica-
tion, by the child’s other parent or the State
agency administering the program under this
part or title XIX), to permit enrollment of such
child at any time as a dependent of the em-
ployee under the employer’s group health insur-
ance;
‘‘(B) to permit disenrollment from such
group health insurance by such employee, or
elimination of coverage of such child, only upon
receipt of satisfactory evidence, in writing,
that—
‘‘(i) such court or administrative
order is no longer in effect, or
‘‘(ii) the employee has enrolled or will
enroll in alternative health insurance cover-
ing such child which will take effect imme-
diately upon the effective date of such
disenrollment; and
‘‘(C) to withhold from such employee’s
compensation the employee’s share (if any) of
premiums for such health insurance, and to pay
such share of premiums to the insurer;
‘‘(27) provide assurances satisfactory to the
Secretary that the State has in effect laws requiring
831
the State agency to garnish the wages, salary, or
other employment income of, and to withhold
amounts from State tax refunds to, any person
who—
‘‘(A) is required by court or administrative
order to provide coverage of the costs of medi-
cal services to an individual eligible for medical
assistance under title XIX,
‘‘(B) has received payment from a third
party for the costs of medical services to such
individual, and
‘‘(C) has not used such payments to reim-
burse, as appropriate, either such individual or
the provider of such services,
to the extent necessary to reimburse the State agen-
cy for expenditures for such costs under its plan
under title XIX, but any claims for current or past-
due child support shall take priority over any such
claims for the costs of medical services.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
subsection (a) apply to calendar quarters beginning
on or after April 1, 1994, except as provided in
paragraph (2).
832
(2) EXTENSION
FOR
STATE
LAW
AMEND-
MENT.—In the case of a State plan under part D of
title IV of the Social Security Act which the Sec-
retary of Health and Human Services determines re-
quires State legislation in order for the plan to meet
the additional requirements imposed by the amend-
ments made by subsection (a), the State plan shall
not be regarded as failing to comply with the re-
quirements of such title solely on the basis of its
failure to meet these additional requirements before
the 1st day of the 1st calendar quarter beginning
after the close of the 1st regular session of the State
legislature that begins after the date of enactment of
this Act. For purposes of the preceding sentence, in
the case of a State that has a 2-year legislative ses-
sion, each year of such session shall be deemed to
be a separate regular session of the State legislature.
SEC. 13243. REPORTS TO CREDIT BUREAUS ON PERSONS
DELINQUENT IN CHILD SUPPORT PAYMENTS.
(a) IN GENERAL.—Section 466(a)(7) (42 U.S.C.
666(a)(7)) is amended—
(1) by striking ‘‘upon the request of such agen-
cy’’ and inserting ‘‘, and procedures which require
the State to periodically report to any such agency
the name of any parent who owes overdue support
833
and is at least 2 months delinquent in the payment
of such support and the amount of such delinquency
unless the agency requests not to receive such infor-
mation’’; and
(2) by striking ‘‘(C) a fee’’ and all that follows
through ‘‘by the State’’ and inserting ‘‘, and (C)
such information shall not be made available to (i)
a consumer reporting agency which the State deter-
mines does not have sufficient capability to system-
atically and timely make accurate use of such infor-
mation, or (ii) an entity which has not furnished evi-
dence satisfactory to the State that the entity is a
consumer reporting agency’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by subsection (a)
shall take effect on October 1, 1994.
(2) EXCEPTION.—If the Secretary of Health
and Human Services determines that a State is un-
able to comply with the amendments made by sub-
section (a), such State shall be exempt from compli-
ance with such amendments until the State estab-
lishes an automated data processing and information
retrieval system under section 454(24) of the Social
834
Security Act, or October 1, 1995, whichever occurs
earlier.
CHAPTER 3—SUPPLEMENTAL SECURITY
INCOME
SEC. 13251. FEES 
FOR 
FEDERAL 
ADMINISTRATION 
OF
STATE SUPPLEMENTARY PAYMENTS.
(a) IN GENERAL.—
(1) OPTIONAL
STATE
SUPPLEMENTARY
PAY-
MENTS.—Section 1616(d) (42 U.S.C. 1382e(d)) is
amended—
(A) by inserting ‘‘(1)’’ after ‘‘(d)’’;
(B) by inserting ‘‘, plus an administration
fee assessed in accordance with paragraph (2)
and any additional services fee charged in ac-
cordance with paragraph (3)’’ before the period;
and
(C) by adding after and below the end the
following:
‘‘(2)(A) The Secretary shall assess each State an ad-
ministration fee in an amount equal to—
‘‘(i) the number of supplementary payments
made by the Secretary on behalf of the State under
this section for any month in a fiscal year; multi-
plied by
‘‘(ii) the applicable rate for the fiscal year.
835
‘‘(B) As used in subparagraph (A), the term ‘applica-
ble rate’ means—
‘‘(i) for fiscal year 1994, $1.67;
‘‘(ii) for fiscal year 1995, $3.33;
‘‘(iii) for fiscal year 1996, $5.00; and
‘‘(iv) for fiscal year 1997 and each succeeding
fiscal year, $5.00, or such different rate as the Sec-
retary determines pursuant to criteria established in
regulations is appropriate for the State, taking into
account the complexity of the State’s supplementary
payment program.
‘‘(C) All fees collected pursuant to this paragraph
shall be transferred to the United States at the same time
that amounts for such supplementary payments are re-
quired to be so transferred.
‘‘(3)(A) The Secretary shall charge a State an addi-
tional services fee if, at the request of the State, the Sec-
retary provides additional services beyond the level cus-
tomarily provided, in the administration of State supple-
mentary payments pursuant to this section.
‘‘(B) The additional services fee shall be in an
amount that the Secretary determines is necessary to
cover all costs (including indirect costs) incurred by the
Federal Government in furnishing the additional services
referred to in subparagraph (A).
836
‘‘(C) The additional services fee shall be payable in
advance or by way of reimbursement.
‘‘(4) All administration fees and additional services
fees collected pursuant to this subsection shall be depos-
ited in the general fund of the Treasury of the United
States as miscellaneous receipts.’’.
(2) MANDATORY STATE SUPPLEMENTARY PAY-
MENTS.—Section 212(b)(3) of Public Law 93–66
(42 U.S.C. 1382 note) is amended—
(A) by inserting ‘‘(A)’’ after ‘‘(3)’’;
(B) by inserting ‘‘, plus an administration
fee assessed in accordance with subparagraph
(B) and any additional services fee charged in
accordance with subparagraph (C)’’ before the
period; and
(C) by adding after and below the end the
following:
‘‘(B)(i) The Secretary shall assess each State an ad-
ministration fee in an amount equal to—
‘‘(I) the number of supplementary payments
made by the Secretary on behalf of the State under
this subsection for any month in a fiscal year; multi-
plied by
‘‘(II) the applicable rate for the fiscal year.
837
‘‘(ii) As used in clause (i), the term ‘applicable rate’
means—
‘‘(I) for fiscal year 1994, $1.67;
‘‘(II) for fiscal year 1995, $3.33;
‘‘(III) for fiscal year 1996, $5.00; and
‘‘(IV) for fiscal year 1997 and each succeeding
fiscal year, $5.00, or such different rate as the Sec-
retary determines pursuant to regulations estab-
lished in regulations is appropriate for the State,
taking into account the complexity of the State’s
supplementary payment program.
‘‘(iii) All fees collected pursuant to this subparagraph
shall be transferred to the United States at the same time
that amounts for such supplementary payments are re-
quired to be so transferred.
‘‘(C)(i) The Secretary shall charge a State an addi-
tional services fee if, at the request of the State, the Sec-
retary provides additional services beyond the level cus-
tomarily provided, in the administration of State supple-
mentary payments pursuant to this subsection.
‘‘(ii) The additional services fee shall be in an amount
that the Secretary determines is necessary to cover all
costs (including indirect costs) incurred by the Federal
Government in furnishing the additional services referred
to in clause (i).
838
‘‘(iii) The additional services fee shall be payable in
advance or by way of reimbursement.
‘‘(D) All administration fees and additional services
fees collected pursuant to this paragraph shall be depos-
ited in the general fund of the Treasury of the United
States as miscellaneous receipts.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to supplementary payments made
pursuant to section 1616(a) of the Social Security Act or
section 212(a) of Public Law 93–66 for any calendar
month beginning after September 30, 1993, and to serv-
ices furnished after such date, regardless of whether regu-
lations to implement such amendments have been promul-
gated by such date, or whether any agreement entered into
under such section 1616(a) or such section 212(a) has
been modified.
SEC. 13252. EXCLUSION FROM INCOME OF STATE RELOCA-
TION ASSISTANCE.
Section 5035(c) of the Omnibus Budget Reconcili-
ation Act of 1990 (42 U.S.C. 1382a note; 104 Stat. 1388–
225) is amended—
(1) by striking ‘‘The amendments made by this
section’’ and inserting ‘‘(1) The amendments made
by subsection (b)’’; and
(2) by adding at the end the following:
839
‘‘(2) The amendments made by subsection (a) shall
apply with respect to benefits for calendar months begin-
ning on or after May 1, 1991.’’.
SEC. 13253. PREVENTION OF ADVERSE EFFECTS ON ELIGI-
BILITY FOR, AND AMOUNT OF, BENEFITS
WHEN SPOUSE OR PARENT OF BENEFICIARY
IS ABSENT FROM THE HOUSEHOLD DUE TO
ACTIVE MILITARY SERVICE.
(a) ABSENT PERSON GENERALLY DEEMED TO BE
LIVING
IN
THE
HOUSEHOLD.—Section 1614(f) (42
U.S.C. 1382c(f)) is amended by adding at the end the
following:
‘‘(4) For purposes of paragraphs (1) and (2), a
spouse or parent (or spouse of such a parent) who is ab-
sent from the household in which the individual lives due
solely to a duty assignment as a member of the Armed
Forces on active duty shall, in the absence of evidence to
the contrary, be deemed to be living in the same household
as the individual.’’.
(b) EXCLUSION FROM INCOME OF HAZARDOUS DUTY
PAY RECEIVED WHILE IN ACTIVE MILITARY SERVICE.—
Section 1612(b) (42 U.S.C. 1382a(b)) is amended—
(1) in paragraph (18), by striking ‘‘and’’ the
2nd place such term appears;
840
(2) in paragraph (19), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(20) special pay received pursuant to section
310 of title 37, United States Code.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the 1st day of the 2nd
month that begins after the date of the enactment of this
Act.
SEC. 13254. ELIGIBILITY 
FOR 
CHILDREN 
OF 
ARMED
FORCES PERSONNEL RESIDING OUTSIDE THE
UNITED STATES OTHER THAN IN FOREIGN
COUNTRIES.
(a) IN GENERAL.—Section 1614(a)(1)(B)(ii) (42
U.S.C. 1382c(a)(1)(B)(ii)) is amended by striking ‘‘the
District of Columbia’’ and all that follows to the period
and inserting ‘‘and who, for the month before the parent
reported for such assignment, received a benefit under this
title’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 1993.
841
SEC. 13255. DEFINITION OF DISABILITY FOR CHILDREN
UNDER AGE 18 APPLIED TO ALL INDIVIDUALS
UNDER AGE 18.
(a) IN GENERAL.—Section 1614(a)(3)(A) (42 U.S.C.
1382c(a)(3)(A)) is amended by striking ‘‘a child’’ and in-
serting ‘‘an individual’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to determinations made on or
after the date of the enactment of this Act.
SEC. 13256. VALUATION OF CERTAIN IN-KIND SUPPORT
AND MAINTENANCE WHEN THERE IS A COST
OF LIVING ADJUSTMENT IN BENEFITS.
(a) IN
GENERAL.—Section 1611(c) (42 U.S.C.
1382(c)) is amended—
(1) in paragraph (1), by striking ‘‘and (5)’’ and
inserting ‘‘(5), and (6)’’; and
(2) by redesignating paragraphs (6) and (7) as
paragraphs (7) and (8), respectively; and
(3) by inserting after paragraph (5) the follow-
ing:
‘‘(6) The dollar amount in effect under subsection (b)
as a result of any increase in benefits under this title by
reason of section 1617 shall be used to determine the value
of any in-kind support and maintenance required to be
taken into account in determining the benefit payable
under this title to an individual (and the eligible spouse,
842
if any, of the individual) for the 1st 2 months for which
the increase in benefits applies.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to benefits paid for months after
the calendar year 1993.
SEC. 13257. EXCLUSION 
FROM 
INCOME 
OF 
CERTAIN
AMOUNTS RECEIVED BY INDIANS FROM IN-
TERESTS HELD IN TRUST.
(a) IN GENERAL.—Section 8 of the Act of October
19, 1973, (25 U.S.C. 1408) is amended by inserting ‘‘,
and the first $2,000 per year of income received by indi-
vidual Indians that is derived from such interests shall not
be considered income,’’ after ‘‘resource’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on January 1, 1993.
CHAPTER 4—AID TO FAMILIES WITH
DEPENDENT CHILDREN
SEC. 13261. 50 PERCENT FEDERAL MATCH OF STATE AD-
MINISTRATIVE COSTS.
(a) IN GENERAL.—Section 403(a)(3) (42 U.S.C.
603(a)(3)) is amended by striking ‘‘the sum of’’ and all
that follows through the end of subparagraph (D) and in-
serting ‘‘50 percent of the total amounts expended during
such quarter as the Secretary has found necessary for the
proper and efficient administration of the State plan (in-
843
cluding any amounts expended by the State to carry out
initial evaluations under section 486(a)),’’.
(b) OPTIONAL USE OF CERTAIN PROCEDURES TO
VERIFY IMMIGRATION STATUS OF AFDC APPLICANTS.—
Section 1137(d) (42 U.S.C. 1320b–7(d)) is amended—
(1) in each of paragraphs (3) and (4)(B)(i), by
inserting ‘‘(or, in the case of the program specified
in subsection (b)(1), may)’’ after ‘‘shall’’; and
(2) in paragraph (4), by inserting ‘‘(if re-
quired)’’ after ‘‘verified’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to payments made for calendar quarters
beginning on or after April 1, 1994.
(2) DELAYED
APPLICABILITY
TO
CERTAIN
STATES.—
(A) 
IN
GENERAL.—The 
Secretary 
of
Health and Human Services may delay the ap-
plicability to a qualified State of the amend-
ments made by subsection (a) until the 1st cal-
endar quarter that begins after the close of the
1st regular session of the State legislature that
begins after the date of the enactment of this
section.
844
(B) QUALIFIED STATE DEFINED.—As used
in subparagraph (A), the term ‘‘qualified State’’
means a State that meets such criteria as the
Secretary shall establish and apply uniformly,
including whether the State legislature meets
biennially and does not have a regular session
scheduled in calendar year 1994.
SEC. 13262. DELAY IN EFFECTIVE DATE OF PENALTY FOR
FAILURE TO MEET REQUIRED PARTICIPA-
TION RATE FOR UNEMPLOYED PARENTS IN
THE JOBS PROGRAM.
Section 403(l)(4)(B) (42 U.S.C. 603(l)(4)(B)) is
amended—
(1) in clause (i), by striking ‘‘1994’’ and insert-
ing ‘‘1995’’;
(2) in clause (ii), by striking ‘‘1995’’ and in-
serting ‘‘1996’’;
(3) in clause (iii), by striking ‘‘1996’’ and in-
serting ‘‘1997’’; and
(4) in clause (iv), by striking ‘‘1997 and 1998’’
and inserting ‘‘1998 and 1999’’.
SEC. 13263. REPORT TO THE CONGRESS WITH RESPECT TO
PERFORMANCE STANDARDS IN THE JOBS
PROGRAM.
Section 487(a) (42 U.S.C. 687(a)) is amended—
845
(1) by striking ‘‘3’’ and inserting ‘‘4’’;
(2) in paragraph (1), by inserting ‘‘criteria for’’
after ‘‘develop’’;
(3) in paragraph (2), by striking ‘‘for’’ and in-
serting ‘‘with respect to’’; and
(4) in the 2nd sentence, by striking ‘‘under this
subsection’’ and inserting ‘‘with respect to the pro-
gram under this part’’.
SEC. 13264. MEASUREMENT AND REPORTING OF WELFARE
PARTICIPATION.
(a) CONGRESSIONAL POLICY.—The Congress hereby
declares that—
(1) it is the policy and responsibility of the
Federal Government to reduce the rate at which,
and the degree to which, families depend on income
from welfare programs, and the duration of welfare
participation, to assist families toward self-suffi-
ciency, and to increase the living standards of low-
income families, consistent with other essential na-
tional goals;
(2) it is the policy of the United States to
strengthen families and improve the life prospects of
their children, to ensure that children grow up in
families that are economically self-sufficient, and to
846
underscore the responsibility of parents to support
their children;
(3) the Federal Government should help welfare
recipients as well as individuals at risk of welfare
participation to improve their education and job
skills, to obtain access to high quality child care and
other necessary support services, and to take such
other steps as may assist them to meet their respon-
sibilities to become financially independent; and
(4) it is the purpose of this section to provide
the public with generally accepted measures of wel-
fare participation so that the public can track such
participation over time and determine whether
progress is being made in reducing the rate at
which, and the degree to which, families depend on
income from welfare programs, and the duration of
welfare participation.
(b) DEVELOPMENT
OF WELFARE PARTICIPATION
MEASURES AND PREDICTORS.—
(1) IN GENERAL.—The Secretary of Health and
Human Services (in this section referred to as the
‘‘Secretary’’) in consultation with the Secretary of
Agriculture shall develop—
(A) measures of—
847
(i) the rate at which, and the degree
to which, families depend on income from
welfare programs; and
(ii) the duration of welfare participa-
tion; and
(B) predictors of welfare participation.
(2) INTERIM REPORT.—Not later than 2 years
after the date of the enactment of this section, the
Secretary shall provide an interim report containing
conclusions resulting from such development, to—
(A) the Committee on Ways and Means of
the House of Representatives;
(B) the Committee on Education and
Labor of the House of Representatives;
(C) the Committee on Agriculture of the
House of Representatives;
(D) the Committee on Energy and Com-
merce of the House of Representatives;
(E) the Committee on Finance of the
Senate;
(F) the Committee on Labor and Human
Resources of the Senate; and
(G) the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate.
848
(c) ADVISORY BOARD
ON WELFARE PARTICIPA-
TION.—
(1) ESTABLISHMENT.—There is established an
Advisory Board on Welfare Participation (in this
section referred to as the ‘‘Board’’).
(2) COMPOSITION.—The Board shall be com-
posed of 12 members with equal numbers to be ap-
pointed by the House of Representatives, the Senate,
and the President. The Board shall be composed of
experts in the fields of welfare research and statis-
tical methodology, representatives of State and local
welfare agencies, and organizations concerned with
welfare issues.
(3) VACANCIES.—Any vacancy occurring in the
membership of the Board shall be filled in the same
manner as the original appointment for the position
being vacated. The vacancy shall not affect the
power of the remaining members to execute the
duties of the Board.
(4) DUTIES.—Duties of the Board shall in-
clude—
(A) providing advice and recommendations
to the Secretary on the development of meas-
ures of the rate at which, and the degree to
which, families depend on income from welfare
849
programs, and the duration of welfare partici-
pation; and
(B) providing advice on the development
and presentation of the report required by sub-
section (d).
(5) TRAVEL
EXPENSES.—Members of the
Board shall not be compensated, but shall receive
travel expenses, including per diem in lieu of subsist-
ence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United
States Code, for each day the member is engaged in
the performance of duties away from the home or
regular place of business of the member.
(6) DETAIL
OF
FEDERAL
EMPLOYEES.—The
Secretary shall detail, without reimbursement, any
of the personnel of the Department of Health and
Human Services to the Board to assist the Board in
carrying out its duties. Any detail shall not interrupt
or otherwise affect the civil service status or privi-
leges of the Federal employee.
(7) 
VOLUNTARY
SERVICE.—Notwithstanding
section 1342 of title 31, United States Code, the
Board may accept the voluntary services provided by
a member of the Board.
850
(8) TERMINATION OF BOARD.—The Board shall
be terminated at such time as the Secretary deter-
mines the duties described in subsection (c)(4) have
been completed, but in any case prior to the submis-
sion of the 1st report required by subsection (d).
(d) ANNUAL WELFARE PARTICIPATION REPORTS.—
(1) PREPARATION.—The Secretary shall pre-
pare annual reports on welfare participation in the
United States.
(2) COVERAGE.—The report shall include anal-
ysis of families and individuals receiving assistance
under means-tested benefit programs, including the
program of aid to families with dependent children
under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.), the food stamp program
under the Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.), and the supplemental security income pro-
gram under title XVI of the Social Security Act (42
U.S.C. 1381 et seq.), or as general assistance under
programs administered by State and local govern-
ments.
(3) CONTENTS.—Each such report shall set
forth, for each means-tested benefit program de-
scribed in paragraph (2)—
(A) measures of—
851
(i) the rate at which, and the degree
to which, families depend on income from
welfare programs; and
(ii) the duration of welfare participa-
tion;
(B) trends in the measures;
(C) predictors of welfare participation;
(D) the causes of welfare participation;
(E) patterns of multiple program partici-
pation;
(F) such other information as the Sec-
retary deems relevant; and
(G) such recommendations for legislation,
which shall not include proposals to reduce eli-
gibility levels or impose barriers to program ac-
cess, as the Secretary may determine to be nec-
essary or desirable to reduce—
(i) the rate at which, and the degree
to which, families depend on income from
welfare programs; and
(ii) the duration of welfare participa-
tion.
(4) SUBMISSION.—The Secretary shall submit
such reports not later than 3 years after the date of
the enactment of this section, and annually there-
852
after, to the committees specified in subsection
(b)(2). Each such report shall be transmitted during
the 1st 60 days of each regular session of the
Congress.
SEC. 13265. NEW HOPE DEMONSTRATION PROJECT.
(a) IN GENERAL.—The Secretary of Health and
Human Services (in this section referred to as the ‘‘Sec-
retary’’) shall provide for a demonstration project for a
qualified program to be conducted in Milwaukee, Wiscon-
sin, in accordance with this section.
(b) PAYMENTS.—For each calendar quarter in which
there is a qualified program approved under this sub-
section, the Secretary shall pay to the operator of the
qualified program, for no more than 20 calendar quarters,
an amount equal to the aggregate amount that would oth-
erwise have been payable to the State with respect to par-
ticipants in the program for such calendar quarter, in the
absence of the program, for cash assistance and child care
under part A of title IV of the Social Security Act and
for administrative expenses related to such assistance. In
calculating the amount of such payment, the expenses of
the program incurred in evaluating the effects of the pro-
gram may be treated as amounts necessary for the proper
and efficient administration of the program, for purposes
of part A of title IV of such Act.
853
(c) DEMONSTRATION PROJECT DESCRIBED.—For
purposes of this section, the term ‘‘qualified program’’
means a program operated—
(1) by The New Hope Project, Inc., a private,
not-for-profit corporation incorporated under the
laws of the State of Wisconsin (in this section re-
ferred to as the ‘‘operator’’), which offers low-income
residents of Milwaukee, Wisconsin, employment,
wage supplements, child care, health care, and coun-
seling and training for job retention or advancement;
and
(2) in accordance with an application submitted
by the operator of the program and approved by the
Secretary based on the Secretary’s determination
that the application satisfies the requirements of
subsection (d).
(d) CONTENTS OF APPLICATION.—The operator of
the qualified program shall provide, in its application to
conduct a demonstration project for the program, that the
following terms and conditions will be met:
(1) The operator will develop and implement an
evaluation plan designed to provide reliable informa-
tion on the impact and implementation of the pro-
gram. The evaluation plan will include adequately
854
sized groups of project participants and control
groups assigned at random.
(2) The operator will develop and implement a
plan addressing the services and assistance to be
provided by the program, the timing and determina-
tion of payments from the Secretary to the operator
of the program, and the roles and responsibilities of
the Secretary and the operator with respect to meet-
ing the requirements of this paragraph.
(3) The operator will specify a methodology for
determining expenditures to be paid to the operator
by the Secretary, with assistance from the Secretary
in calculating the amount that would otherwise have
been payable to the State in the absence of the pro-
gram, pursuant to subsection (b).
(4) The operator will issue an interim and final
report on the results of the evaluation described in
paragraph (1) to the Secretary at such times as
required by the Secretary.
(e) EFFECTIVE DATE.—This section shall take effect
on the 1st day of the 1st calendar quarter that begins
after the date of enactment of this Act.
855
SEC. 13266. DELAY IN REQUIREMENT THAT OUTLYING
AREAS OPERATE AN AFDC–UP PROGRAM.
Section 401(g)(2) of the Family Support Act of 1988
(42 U.S.C. 602 note; 102 Stat. 2396) is amended by strik-
ing ‘‘October 1, 1992’’ and inserting ‘‘the date of the re-
peal of the limitations contained in section 1108(a) of the
Social Security Act on payments to such jurisdictions for
purposes of making maintenance payments under parts A
and E of title IV of such Act’’.
SEC. 13267. ADULT IN FAMILY OR HOUSEHOLD ALLOWED
TO ATTEST TO CITIZENSHIP STATUS OF FAM-
ILY OR HOUSEHOLD MEMBERS.
(a) IN GENERAL.—Section 1137(d)(1)(A) (42 U.S.C.
1320b–7(d)(1)(A)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(1)(A)’’;
(2) by inserting ‘‘(other than the aid to families
with dependent children program under part A of
title IV of this Act)’’ after ‘‘any program listed in
subsection (b)’’; and
(3) by adding at the end the following:
‘‘(ii) The State shall require, as a condition of
an individual’s eligibility for benefits under the aid
to families with dependent children program under
part A of title IV of this Act, a declaration in writ-
ing, under penalty of perjury—
856
‘‘(I) in the case of an individual who is an
adult member of a family or household applying
for or receiving such benefits, by such individ-
ual or another adult member of such family or
household on such individual’s behalf;
‘‘(II) in the case of an individual who is a
child, by an adult on the individual’s behalf; or
‘‘(III) in the case of an individual born
into a family or household receiving such bene-
fits, by an adult member of such individual’s
family or household on the individual’s behalf
no later than the next redetermination of eligi-
bility of such family or household following the
birth of such individual,
stating whether the individual is a citizen or national
of the United States, and, if that individual is not
a citizen or national of the United States, that the
individual is in a satisfactory immigration status.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall become effective with respect to bene-
fits provided on or after October 1, 1993.
860
(2) Paragraph (4) of section 3306(f) of such
Code is amended to read as follows:
‘‘(4) amounts may be withdrawn for the pay-
ment of short-time compensation under a short-time
compensation program approved by the Secretary of
Labor.’’.
(3) Section 303(a)(5) of the Social Security Act
is amended by striking ‘‘the payment of short-time
compensation under a plan approved by the Sec-
retary of Labor’’ and inserting ‘‘the payment of
short-time compensation under a short-time com-
pensation program (as defined in section 3306(t) of
the Internal Revenue Code of 1986) approved by the
Secretary of Labor’’.
SEC. 13272. TECHNICAL AMENDMENT TO UNEMPLOYMENT
TRUST FUND.
Paragraph (1) of section 905(b) of the Social Secu-
rity Act is amended to read as follows:
‘‘(b)(1) Except as provided in paragraph (3), the Sec-
retary of the Treasury shall transfer (as of the close of
each month), from the employment security administra-
tion account to the extended unemployment compensation
account established by subsection (a), an amount equal to
20 percent of the amount by which—