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‘‘(A) in a State described in section
815(b)(1) of the Work Opportunity Act of 1995;
and
‘‘(B) in any other State, on July 1, 1998.
‘‘(h) ENCOURAGEMENT TO PROVIDE CHILD CARE
SERVICES.—An individual participating in a State com-
munity service program may be treated as being engaged
in work under subsection (c) if such individual provides
child care services to other individuals participating in the
community service program in the manner, and for the pe-
riod of time each week, determined appropriate by the
State.
‘‘SEC. 405. REQUIREMENTS AND LIMITATIONS.
‘‘(a) STATE REQUIRED TO ENTER INTO A PERSONAL
RESPONSIBILITY CONTRACT WITH EACH FAMILY RECEIV-
ING ASSISTANCE.—
‘‘(1) IN GENERAL.—Each State to which a grant
is made under section 403 shall require each family
receiving assistance under the State program funded
under this part to enter into—
‘‘(A) a personal responsibility contract (as
developed by the State) with the State; or
‘‘(B) a limited benefit plan.
‘‘(2) PERSONAL
RESPONSIBILITY
CONTRACT.—
For purposes of this subsection, the term ‘personal re-
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sponsibility contract’ means a binding contract be-
tween the State and each family receiving assistance
under the State program funded under this part
that—
‘‘(A) outlines the steps each family and the
State will take to get the family off of welfare
and to become self-sufficient;
‘‘(B) specifies a negotiated time-limited pe-
riod of eligibility for receipt of assistance that is
consistent with unique family circumstances and
is based on a reasonable plan to facilitate the
transition of the family to self-sufficiency;
‘‘(C) provides that the family will auto-
matically enter into a limited benefit plan if the
family is out of compliance with the personal re-
sponsibility contract; and
‘‘(D) provides that the contract shall be in-
valid if the State agency fails to comply with the
contract.
‘‘(3) LIMITED BENEFIT PLAN.—For purposes of
this subsection, the term ‘limited benefit plan’ means
a plan which provides for a reduced level of assistance
and later termination of assistance to a family that
has entered into the plan in accordance with a sched-
ule to be determined by the State.
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‘‘(4) ASSESSMENT.—The State agency shall pro-
vide, through a case manager, an initial and thor-
ough assessment of the skills, prior work experience,
and employability of each parent for use in develop-
ing and negotiating a personal responsibility con-
tract.
‘‘(5) DISPUTE RESOLUTION.—The State agency
described in section 402(a)(6) shall establish a dispute
resolution procedure for disputes related to participa-
tion in the personal responsibility contract that pro-
vides the opportunity for a hearing.
‘‘(b) NO ASSISTANCE FOR MORE THAN 5 YEARS.—
‘‘(1) IN GENERAL.—Except as provided under
paragraphs (2) and (3), a State to which a grant is
made under section 403 may not use any part of the
grant to provide assistance to a family that includes
an adult who has received assistance under the pro-
gram operated under this part for the lesser of—
‘‘(A) the period of time established at the
option of the State; or
‘‘(B) 60 months (whether or not consecutive)
after September 30, 1995.
‘‘(2) MINOR CHILD EXCEPTION.—If an individ-
ual received assistance under the State program oper-
ated under this part as a minor child in a needy
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family, any period during which such individual’s
family received assistance shall not be counted for
purposes of applying the limitation described in
paragraph (1) to an application for assistance under
such program by such individual as the head of a
household of a needy family with minor children.
‘‘(3) HARDSHIP EXCEPTION.—
‘‘(A) IN GENERAL.—The State may exempt
a family from the application of paragraph (1)
by reason of hardship.
‘‘(B) LIMITATION.—The number of families
with respect to which an exemption made by a
State under subparagraph (A) is in effect for a
fiscal year shall not exceed 20 percent of the av-
erage monthly number of families to which the
State is providing assistance under the program
operated under this part.
‘‘(c) DENIAL OF ASSISTANCE FOR 10 YEARS TO A PER-
SON FOUND TO HAVE FRAUDULENTLY MISREPRESENTED
RESIDENCE IN ORDER TO OBTAIN ASSISTANCE IN 2 OR
MORE STATES.—An individual shall not be considered an
eligible individual for the purposes of this part during the
10-year period that begins on the date the individual is con-
victed in Federal or State court of having made a fraudu-
lent statement or representation with respect to the place
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of residence of the individual in order to receive assistance
simultaneously from 2 or more States under programs that
are funded under this title, title XIX, or the Food Stamp
Act of 1977, or benefits in 2 or more States under the sup-
plemental security income program under title XVI.
‘‘(d) DENIAL OF ASSISTANCE FOR FUGITIVE FELONS
AND PROBATION AND PAROLE VIOLATORS.—
‘‘(1) IN GENERAL.—An individual shall not be
considered an eligible individual for the purposes of
this part if such individual is—
‘‘(A) fleeing to avoid prosecution, or custody
or confinement after conviction, under the laws
of the place from which the individual flees, for
a crime, or an attempt to commit a crime, which
is a felony under the laws of the place from
which the individual flees, or which, in the case
of the State of New Jersey, is a high mis-
demeanor under the laws of such State; or
‘‘(B) violating a condition of probation or
parole imposed under Federal or State law.
‘‘(2) EXCHANGE OF INFORMATION WITH LAW EN-
FORCEMENT AGENCIES.—Notwithstanding any other
provision of law, a State shall furnish any Federal,
State, or local law enforcement officer, upon the re-
quest of the officer, with the current address, Social
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Security number, and photograph (if applicable) of
any recipient of assistance under this part, if the offi-
cer furnishes the agency with the name of the recipi-
ent and notifies the agency that—
‘‘(A) such recipient—
‘‘(i) is described in subparagraph (A)
or (B) of paragraph (1); or
‘‘(ii) has information that is necessary
for the officer to conduct the officer’s official
duties; and
‘‘(B) the location or apprehension of the re-
cipient is within such officer’s official duties.
‘‘(e) STATE OPTION
TO REQUIRE ASSIGNMENT
OF
SUPPORT.—At the option of the State, a State to which a
grant is made under section 403 may provide that an indi-
vidual applying for or receiving assistance under the State
program funded under this part shall be required to assign
to the State any rights to support from any other person
the individual may have in such individual’s own behalf
or in behalf of any other family member for whom the indi-
vidual is applying for or receiving assistance.
‘‘(f) DENIAL OF ASSISTANCE FOR ABSENT CHILD.—
Each State to which a grant is made under section 403—
‘‘(1) may not use any part of the grant to pro-
vide assistance to a family with respect to any minor
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‘‘(2) Marriage is an essential institution of a
successful society which promotes the interests of chil-
dren.
‘‘(3) Promotion of responsible fatherhood and
motherhood is integral to successful child rearing and
the wellbeing of children.
‘‘(4) In 1992, only 54 percent of single-parent
families with children had a child support order es-
tablished and, of that 54 percent, only about one half
received the full amount due. Of the cases enforced
through the public child support enforcement system,
only 18 percent of the caseload has a collection.
‘‘(5) The number of individuals receiving aid to
families with dependent children (hereafter in this
subsection referred to as ‘AFDC’) has more than tri-
pled since 1965. More than two-thirds of these recipi-
ents are children. Eighty-nine percent of children re-
ceiving AFDC benefits now live in homes in which no
father is present.
‘‘(A)(i) The average monthly number of
children receiving AFDC benefits—
‘‘(I) was 3,300,000 in 1965;
‘‘(II) was 6,200,000 in 1970;
‘‘(III) was 7,400,000 in 1980; and
‘‘(IV) was 9,300,000 in 1992.
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‘‘(ii) While the number of children receiving
AFDC benefits increased nearly threefold between
1965 and 1992, the total number of children in
the United States aged 0 to 18 has declined by
5.5 percent.
‘‘(B) The Department of Health and
Human Services has estimated that 12,000,000
children will receive AFDC benefits within 10
years.
‘‘(C) The increase in the number of children
receiving public assistance is closely related to
the increase in births to unmarried women. Be-
tween 1970 and 1991, the percentage of live
births to unmarried women increased nearly
threefold, from 10.7 percent to 29.5 percent.
‘‘(6) The increase of out-of-wedlock pregnancies
and births is well documented as follows:
‘‘(A) It is estimated that the rate of
nonmarital teen pregnancy rose 23 percent from
54 pregnancies per 1,000 unmarried teenagers in
1976 to 66.7 pregnancies in 1991. The overall
rate of nonmarital pregnancy rose 14 percent
from 90.8 pregnancies per 1,000 unmarried
women in 1980 to 103 in both 1991 and 1992.
In contrast, the overall pregnancy rate for mar-
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ried couples decreased 7.3 percent between 1980
and 1991, from 126.9 pregnancies per 1,000
married women in 1980 to 117.6 pregnancies in
1991.
‘‘(B) The total of all out-of-wedlock births
between 1970 and 1991 has risen from 10.7 per-
cent to 29.5 percent and if the current trend con-
tinues, 50 percent of all births by the year 2015
will be out-of-wedlock.
‘‘(7) The negative consequences of an out-of-wed-
lock birth on the mother, the child, the family, and so-
ciety are well documented as follows:
‘‘(A) Young women 17 and under who give
birth outside of marriage are more likely to go
on public assistance and to spend more years on
welfare once enrolled. These combined effects of
‘younger and longer’ increase total AFDC costs
per household by 25 percent to 30 percent for 17-
year olds.
‘‘(B) Children born out-of-wedlock have a
substantially higher risk of being born at a very
low or moderately low birth weight.
‘‘(C) Children born out-of-wedlock are more
likely to experience low verbal cognitive attain-
ment, as well as more child abuse, and neglect.
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‘‘(D) Children born out-of-wedlock were
more likely to have lower cognitive scores, lower
educational aspirations, and a greater likelihood
of becoming teenage parents themselves.
‘‘(E) Being born out-of-wedlock signifi-
cantly reduces the chances of the child growing
up to have an intact marriage.
‘‘(F) Children born out-of-wedlock are 3
more times likely to be on welfare when they
grow up.
‘‘(8) Currently 35 percent of children in single-
parent homes were born out-of-wedlock, nearly the
same percentage as that of children in single-parent
homes whose parents are divorced (37 percent). While
many parents find themselves, through divorce or
tragic circumstances beyond their control, facing the
difficult task of raising children alone, nevertheless,
the negative consequences of raising children in sin-
gle-parent homes are well documented as follows:
‘‘(A) Only 9 percent of married-couple fam-
ilies with children under 18 years of age have
income below the national poverty level. In con-
trast, 46 percent of female-headed households
with children under 18 years of age are below
the national poverty level.
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‘‘(B) Among single-parent families, nearly
1⁄2 of the mothers who never married received
AFDC while only 1⁄5 of divorced mothers received
AFDC.
‘‘(C) Children born into families receiving
welfare assistance are 3 times more likely to be
on welfare when they reach adulthood than chil-
dren not born into families receiving welfare.
‘‘(D) Mothers under 20 years of age are at
the greatest risk of bearing low birth-weight ba-
bies.
‘‘(E) The younger the single parent mother,
the less likely she is to finish high school.
‘‘(F) Young women who have children before
finishing high school are more likely to receive
welfare assistance for a longer period of time.
‘‘(G) Between 1985 and 1990, the public
cost of births to teenage mothers under the aid to
families with dependent children program, the
food stamp program, and the medicaid program
has been estimated at $120,000,000,000.
‘‘(H) The absence of a father in the life of
a child has a negative effect on school perform-
ance and peer adjustment.
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‘‘(I) Children of teenage single parents have
lower cognitive scores, lower educational aspira-
tions, and a greater likelihood of becoming teen-
age parents themselves.
‘‘(J) Children of single-parent homes are 3
times more likely to fail and repeat a year in
grade school than are children from intact two-
parent families.
‘‘(K) Children from single-parent homes are
almost 4 times more likely to be expelled or sus-
pended from school.
‘‘(L) Neighborhoods with larger percentages
of youth aged 12 through 20 and areas with
higher percentages of single-parent households
have higher rates of violent crime.
‘‘(M) Of those youth held for criminal of-
fenses within the State juvenile justice system,
only 29.8 percent lived primarily in a home
with both parents. In contrast to these incarcer-
ated youth, 73.9 percent of the 62,800,000 chil-
dren in the Nation’s resident population were
living with both parents.
‘‘(9) Therefore, in light of this demonstration of
the crisis in our Nation, it is the sense of the Congress
that prevention of out-of-wedlock pregnancy and re-
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duction in out-of-wedlock birth are very important
Government interests and the policy contained in pro-
visions of this title is intended to address the crisis.
‘‘(b) STATE OPTION TO DENY ASSISTANCE FOR OUT-
OF-WEDLOCK BIRTHS TO MINORS.—At the option of the
State, a State to which a grant is made under section 403
may provide that the grant shall not be used to provide
assistance for a child born out-of-wedlock to an individual
who has not attained 18 years of age, or for the individual,
until the individual attains such age.
‘‘(c) STATE OPTION TO DENY ASSISTANCE FOR CHIL-
DREN BORN TO FAMILIES RECEIVING ASSISTANCE.—At the
option of the State, a State to which a grant is made under
section 403 may provide that the grant shall not be used
to provide assistance for a minor child who is born to—
‘‘(1) a recipient of assistance under the program
funded under this part; or
‘‘(2) an individual who received such benefits at
any time during the 10-month period ending with the
birth of the child.
‘‘(d) REQUIREMENT THAT TEENAGE PARENTS LIVE IN
ADULT-SUPERVISED SETTINGS.—
‘‘(1) IN GENERAL.—
‘‘(A) REQUIREMENT.—Except as provided
in paragraph (2), if a State provides assistance
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under the State program funded under this part
to an individual described in subparagraph (B),
such individual may only receive assistance
under the program if such individual and the
child of the individual reside in a place of resi-
dence maintained by a parent, legal guardian,
or other adult relative of such individual as such
parent’s, guardian’s, or adult relative’s own
home.
‘‘(B) INDIVIDUAL DESCRIBED.— For pur-
poses of subparagraph (A), an individual de-
scribed in this subparagraph is an individual
who is—
‘‘(i) under the age of 18; and
‘‘(ii) not married and has a minor
child in his or her care.
‘‘(2) EXCEPTION.—
‘‘(A) PROVISION OF, OR ASSISTANCE IN LO-
CATING, ADULT-SUPERVISED
LIVING
ARRANGE-
MENT.—In the case of an individual who is de-
scribed in subparagraph (B), the State agency
shall provide, or assist such individual in locat-
ing, a second chance home, maternity home, or
other appropriate adult-supervised supportive
living arrangement, taking into consideration
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the needs and concerns of the such individual,
unless the State agency determines that the indi-
vidual’s current living arrangement is appro-
priate, and thereafter shall require that such
parent and the child of such parent reside in
such living arrangement as a condition of the
continued receipt of assistance under the plan
(or in an alternative appropriate arrangement,
should circumstances change and the current ar-
rangement cease to be appropriate).
‘‘(B) INDIVIDUAL
DESCRIBED.—For pur-
poses of subparagraph (A), an individual is de-
scribed in this subparagraph if the individual is
described in paragraph (1)(B) and—
‘‘(ii) such individual has no parent,
legal guardian or other appropriate adult
relative as described in (iii) of his or her
own who is living or whose whereabouts are
known;
‘‘(iii) no living parent, legal guardian,
or other appropriate adult relative who
would otherwise meet applicable State cri-
teria to act as such individual’s legal
guardian, of such individual allows the in-
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dividual to live in the home of such parent,
guardian, or relative;
‘‘(iv) the State agency determines
that—
‘‘(I) the individual or the individ-
ual’s custodial minor child is being or
has been subjected to serious physical
or emotional harm, sexual abuse, or ex-
ploitation in the residence of such indi-
vidual’s own parent or legal guardian;
or
‘‘(II) substantial evidence exists of
an act or failure to act that presents
an imminent or serious harm if such
individual 
and 
such 
individual’s
minor child lived in the same residence
with such individual’s own parent or
legal guardian; or
‘‘(v) the State agency otherwise deter-
mines that it is in the best interest of the
minor child to waive the requirement of
paragraph (1) with respect to such individ-
ual or minor child.
‘‘(C) SECOND-CHANCE
HOME.—For pur-
poses of this paragraph, the term ‘second-chance
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home’ means an entity that provides individuals
described in subparagraph (B) with a supportive
and supervised living arrangement in which
such individuals are required to learn parenting
skills, including child development, family budg-
eting, health and nutrition, and other skills to
promote their long-term economic independence
and the well-being of their children.
‘‘(3) ASSISTANCE TO STATES IN PROVIDING OR
LOCATING
ADULT-SUPERVISED
SUPPORTIVE
LIVING
ARRANGEMENTS
FOR
UNMARRIED
TEENAGE
PAR-
ENTS.—
‘‘(A) IN GENERAL.—For each of fiscal years
1996 through 2002, each State that provides as-
sistance under the State program to individuals
described in paragraph (1)(B) shall be entitled to
receive a grant in an amount determined under
subparagraph (B) for the purpose of providing
or locating adult-supervised supportive living ar-
rangements for individuals described in para-
graph (1)(B) in accordance with this subsection.
‘‘(B) AMOUNT DETERMINED.—
‘‘(i) IN GENERAL.—The amount deter-
mined under this subparagraph is an
amount that bears the same ratio to the
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amount specified under clause (ii) as the
amount of the State family assistance grant
for the State for such fiscal year (described
in section 403(a)(2)) bears to the amount
appropriated for such fiscal year in accord-
ance with section 403(a)(4)(A).
‘‘(ii) 
AMOUNT
SPECIFIED.—The
amount specified in this subparagraph is—
‘‘(I) 
for 
fiscal 
year 
1996,
$25,000,000;
‘‘(II) 
for 
fiscal 
year 
1997,
$25,000,000; and
‘‘(III) for each of fiscal years
1998, 1999, 2000, 2001, and 2002,
$20,000,000.
‘‘(C) ASSISTANCE TO STATES IN PROVIDING
OR
LOCATING
ADULT-SUPERVISED
SUPPORTIVE
LIVING ARRANGEMENTS FOR UNMARRIED TEEN-
AGE PARENTS.—There are authorized to be ap-
propriated and there are appropriated for fiscal
years 1996, 1997, 1998, 1999, 2000, 2001, and
2002 such sums specified in subparagraph
(B)(ii) for the purpose of paying grants to States
in accordance with the provisions of this para-
graph.
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‘‘(e) REQUIREMENT THAT TEENAGE PARENTS ATTEND
HIGH SCHOOL OR OTHER EQUIVALENT TRAINING PRO-
GRAM.—If a State provides assistance under the State pro-
gram funded under this part to an individual described in
subsection (d)(1)(B) who has not successfully completed a
high-school education (or its equivalent) and whose minor
child is at least 12 weeks of age, the State shall not provide
such individual with assistance under the program (or, at
the option of the State, shall provide a reduced level of such
assistance) if the individual does not participate in—
‘‘(1) educational activities directed toward the
attainment of a high school diploma or its equivalent;
or
‘‘(2) an alternative educational or training pro-
gram that has been approved by the State.
‘‘(f) GRANT INCREASED TO REWARD STATES THAT
REDUCE OUT-OF-WEDLOCK BIRTHS.—
‘‘(1) IN
GENERAL.—The amount of the grant
payable to a State under section 403(a)(1)(A) for fis-
cal years 1998, 1999, and 2000 shall be increased
by—
‘‘(A) an amount equal the product of $25
multiplied by the number of children in the
State in families with incomes below the poverty
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line, according to the most recently available
census data, if—
‘‘(i) the illegitimacy ratio of the State
for the most recent fiscal year for which
such information is available is at least 1
percentage point lower than the illegitimacy
ratio of the State for fiscal year 1995 (or,
if such information is not available, the
first available year after 1995 for which
such data is available); and
‘‘(ii) the rate of induced pregnancy ter-
minations for the same most recent fiscal
year in the State is not higher than the rate
of induced pregnancy terminations in the
State for fiscal year 1995 (or, the same first
available year); or
‘‘(B) an amount equal the product of $50
multiplied by the number of children in the
State in families with incomes below the poverty
line, according to the most recently available
census data, if—
‘‘(i) the illegitimacy ratio of the State
for the most recent fiscal year for which in-
formation is available is at least 2 percent-
age points lower than the illegitimacy ratio
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of the State for fiscal year 1995 (or, if such
information is not available, the first avail-
able year after 1995 for which such data is
available); and
‘‘(ii) the rate of induced pregnancy ter-
minations in the State for the same most
recent fiscal year is not higher than the rate
of induced pregnancy terminations in the
State for fiscal year 1995 (or, the same first
available fiscal year).
‘‘(2) DETERMINATION OF THE SECRETARY.—The
Secretary shall not increase the grant amount under
paragraph (1) if the Secretary determines that the
relevant difference between the illegitimacy ratio of a
State for an applicable fiscal year and the illegit-
imacy ratio of such State for fiscal year 1995 or,
where appropriate, the first available year after 1995
for which such data is available, is the result of a
change in State methods of reporting data used to cal-
culate the illegitimacy ratio or if the Secretary deter-
mines that the relevant non-increase in the rate of in-
duced pregnancy terminations for an applicable fiscal
year as compared to fiscal year 1995 or, the appro-
priate fiscal year, is the result of a change in State
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methods of reporting data used to calculate the rate
of induced pregnancy terminations.
‘‘(3) ILLEGITIMACY RATIO.—For purposes of this
subsection, the term ‘illegitimacy ratio’ means, with
respect to a State and a fiscal year—
‘‘(A) the number of out-of-wedlock births
that occurred in the State during the most recent
fiscal year for which such information is avail-
able; divided by
‘‘(B) the number of births that occurred in
the State during the most recent fiscal year for
which such information is available.
‘‘(4) POVERTY LINE.—For purposes of this sub-
section, the term ‘poverty line’ has the meaning given
such term in section 403(a)(3)(D)(iii).
‘‘(5) AVAILABILITY OF AMOUNTS.—There are au-
thorized to be appropriated and there are appro-
priated such sums as may be necessary for fiscal
years 1998, 1999, and 2000 for the purpose of in-
creasing the amount of the grant payable to a State
under section 403(a)(1) in accordance with this sub-
section.
‘‘(g) STATE OPTION TO DENY ASSISTANCE IN CERTAIN
SITUATIONS.—Nothing in this subsection shall be construed
to restrict the authority of a State to exercise its option
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to limit assistance under this part to individuals if such
limitation is not inconsistent with the provisions of this
part.
‘‘SEC. 407. STATE PENALTIES.
‘‘(a) IN GENERAL.—Subject to the provisions of sub-
section (b), the Secretary shall deduct from the grant other-
wise payable under section 403 the following penalties:
‘‘(1) FOR USE OF GRANT IN VIOLATION OF THIS
PART.—If an audit conducted under section 408 finds
that an amount paid to a State under section 403 for
a fiscal year has been used in violation of this part,
then the Secretary shall reduce the amount of the
grant otherwise payable to the State under such sec-
tion for the immediately succeeding fiscal year quar-
ter by the amount so used. If the State does not prove
to the satisfaction of the Secretary that such unlawful
expenditure was not made by the State in intentional
violation of the requirements of this part, then the
Secretary shall impose an additional penalty of 5
percent of such grant (determined without regard to
this section).
‘‘(2) FOR FAILURE TO SUBMIT REQUIRED RE-
PORT.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State has not, within 6 months
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after the end of a fiscal year, submitted the re-
port required by section 409 for the fiscal year,
the Secretary shall reduce by 5 percent the
amount of the grant that would (in the absence
of this section) be payable to the State under sec-
tion 403 for the immediately succeeding fiscal
year.
‘‘(B) RESCISSION OF PENALTY.—The Sec-
retary shall rescind a penalty imposed on a
State under subparagraph (A) with respect to a
report for a fiscal year if the State submits the
report before the end of the immediately succeed-
ing fiscal year.
‘‘(3) FOR FAILURE TO SATISFY MINIMUM PAR-
TICIPATION RATES.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State has failed to satisfy the mini-
mum participation rates specified in section
404(a) for a fiscal year, the Secretary shall re-
duce the amount of the grant that would (in the
absence of this section) be payable to the State
under section 403 for the immediately succeeding
fiscal year by—
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‘‘(i) in the first year in which the
State fails to satisfy such rates, 5 percent;
and
‘‘(ii) in subsequent years in which the
State fails to satisfy such rates, the percent
reduction determined under this subpara-
graph (if any) in the preceding year, in-
creased by 5 percent.
‘‘(B) PENALTY
BASED
ON
SEVERITY
OF
FAILURE.—The Secretary shall impose reduc-
tions under subparagraph (A) on the basis of the
degree of noncompliance.
‘‘(4) FOR FAILURE TO PARTICIPATE IN THE IN-
COME
AND
ELIGIBILITY
VERIFICATION
SYSTEM.—If
the Secretary determines that a State program funded
under this part is not participating during a fiscal
year in the income and eligibility verification system
required by section 1137, the Secretary shall reduce
by not more than 5 percent the amount of the grant
that would (in the absence of this section) be payable
to the State under section 403 for the immediately
succeeding fiscal year.
‘‘(5) FOR FAILURE TO COMPLY WITH PATERNITY
ESTABLISHMENT AND CHILD SUPPORT ENFORCEMENT
REQUIREMENTS
UNDER
PART
D.—Notwithstanding
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any other provision of this Act, if the Secretary deter-
mines that the State agency that administers a pro-
gram funded under this part does not enforce the pen-
alties requested by the agency administering part D
against recipients of assistance under the State pro-
gram who fail to cooperate in establishing paternity
in accordance with such part, the Secretary shall re-
duce by not more than 5 percent the amount of the
grant that would (in the absence of this section) be
payable to the State under section 403 for the imme-
diately succeeding fiscal year.
‘‘(6) FOR FAILURE TO TIMELY REPAY A FEDERAL
LOAN FUND FOR STATE WELFARE PROGRAMS.—If the
Secretary determines that a State has failed to repay
any amount borrowed from the Federal Loan Fund
for State Welfare Programs established under section
403(d) within the period of maturity applicable to
such loan, plus any interest owed on such loan, then
the Secretary shall reduce the amount of the grant
otherwise payable to the State under section 403 for
the immediately succeeding fiscal year quarter by the
outstanding loan amount, plus the interest owed on
such outstanding amount. The Secretary may not for-
give any outstanding loan amount nor interest owed
thereon.
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‘‘(b) REQUIREMENTS.—
‘‘(1) LIMITATION ON AMOUNT OF PENALTY.—
‘‘(A) IN GENERAL.—In imposing the pen-
alties described in subsection (a), the Secretary
shall not reduce any quarterly payment to a
State by more than 25 percent.
‘‘(B) CARRYFORWARD
OF
UNRECOVERED
PENALTIES.—To the extent that subparagraph
(A) prevents the Secretary from recovering dur-
ing a fiscal year the full amount of all penalties
imposed on a State under subsection (a) for a
prior fiscal year, the Secretary shall apply any
remaining amount of such penalties to the grant
otherwise payable to the State under section 403
for the immediately succeeding fiscal year.
‘‘(2) STATE FUNDS TO REPLACE REDUCTIONS IN
GRANT.—A State which has a penalty imposed
against it under subsection (a) shall expend addi-
tional State funds in an amount equal to the amount
of the penalty for the purpose of providing assistance
under the State program under this part.
‘‘(3) REASONABLE
CAUSE
FOR
NONCOMPLI-
ANCE.—The Secretary may not impose a penalty on
a State under subsection (a) if the Secretary deter-
mines that the State has reasonable cause for failing
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to comply with a requirement for which a penalty is
imposed under such subsection.
‘‘(c) CERTIFICATION OF AMOUNT OF PENALTIES.—If
the Secretary is required to reduce the amount of any grant
under this section, the Secretary shall certify the amount
of such reduction to the Secretary of the Treasury and the
Secretary of the Treasury shall reduce the amount paid to
the State under section 403 by such amount.
‘‘(d) EFFECTIVE DATES.—
‘‘(1) IN GENERAL.—The penalties described in
paragraphs (2) through (6) of subsection (a) shall
apply—
‘‘(A) with respect to periods beginning 6
months after the Secretary issues final rules with
respect to such penalties; or
‘‘(B) with respect to fiscal years beginning
on or after October 1, 1996;
whichever is later.
‘‘(2) MISUSE
OF
FUNDS.—The penalties de-
scribed in subsection (a)(1) shall apply with respect
to fiscal years beginning on or after October 1, 1995.
‘‘SEC. 408. AUDITS.
‘‘(a) IN GENERAL.—Each State shall, not less than an-
nually, audit the State expenditures from amounts received
under this part. Such audit shall—
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‘‘(1) determine the extent to which such expendi-
tures were or were not expended in accordance with
this part; and
‘‘(2) be conducted by an approved entity (as de-
fined in subsection (b)) in accordance with generally
accepted auditing principles.
‘‘(b) APPROVED ENTITY.—For purposes of subsection
(a), the term ‘approved entity’ means an entity that—
‘‘(1) is approved by the Secretary of the Treas-
ury;
‘‘(2) is approved by the chief executive officer of
the State; and
‘‘(3) is independent of any agency administering
activities funded under this part.
‘‘(c) AUDIT REPORT.—Not later than 30 days follow-
ing the completion of an audit under this subsection, a
State shall submit a copy of the audit to the State legisla-
ture, the Secretary of the Treasury, and the Secretary of
Health and Human Services.
‘‘(d) ADDITIONAL ACCOUNTING REQUIREMENTS.—The
provisions of chapter 75 of title 31, United States Code,
shall apply to the audit requirements of this section.
‘‘SEC. 409. DATA COLLECTION AND REPORTING.
‘‘(a) IN
GENERAL.—The Secretary, in consultation
with State and local government officials and other inter-
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ested persons, shall develop a quality assurance system of
data collection and reporting that promotes accountability
and ensures the improvement and integrity of programs
funded under this part.
‘‘(b) STATE SUBMISSIONS.—
‘‘(1) IN GENERAL.—Not later than the 15th day
of the first month of each calendar quarter, each State
to which a grant is made under section 403(f) shall
submit to the Secretary the data described in para-
graphs (2) and (3) with respect to families described
in paragraph (4).
‘‘(2) DISAGGREGATED
DATA
DESCRIBED.—The
data described in this paragraph with respect to fam-
ilies described in paragraph (4) is a sample of month-
ly disaggregated case record data containing the fol-
lowing:
‘‘(A) The age of the adults and children (in-
cluding pregnant women) in each family.
‘‘(B) The marital and familial status of
each member of the family (including whether
the family is a 2-parent family and whether a
child is living with an adult relative other than
a parent).
‘‘(C) The gender, educational level, work ex-
perience, and race of the head of each family.
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‘‘(D) The health status of each member of
the family (including whether any member of the
family is seriously ill, disabled, or incapacitated
and is being cared for by another member of the
family).
‘‘(E) The type and amount of any benefit or
assistance received by the family, including—
‘‘(i) the amount of and reason for any
reduction in assistance, and
‘‘(ii) if assistance is terminated, wheth-
er termination is due to employment, sanc-
tion, or time limit.
‘‘(F) Any benefit or assistance received by a
member of the family with respect to housing,
food stamps, job training, or the Head Start pro-
gram.
‘‘(G) The number of months since the family
filed the most recent application for assistance
under the program and if assistance was denied,
the reason for the denial.
‘‘(H) The number of times a family has ap-
plied for and received assistance under the State
program and the number of months assistance
has been received each time assistance has been
provided to the family.
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‘‘(I) The employment status of the adults in
the family (including the number of hours
worked and the amount earned).
‘‘(J) The date on which an adult in the
family began to engage in work, the number of
hours the adult engaged in work, the work activ-
ity in which the adult participated, and the
amount of child care assistance provided to the
adult (if any).
‘‘(K) The number of individuals in each
family receiving assistance and the number of
individuals in each family not receiving assist-
ance, and the relationship of each individual to
the youngest child in the family.
‘‘(L) The citizenship status of each member
of the family.
‘‘(M) The housing arrangement of each
member of the family.
‘‘(N) The amount of unearned income, child
support, assets, and other financial factors con-
sidered in determining eligibility for assistance
under the State program.
‘‘(O) The location in the State of each fam-
ily receiving assistance.
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‘‘(P) Any other data that the Secretary de-
termines is necessary to ensure efficient and ef-
fective program administration.
‘‘(3) AGGREGATED
MONTHLY
DATA.—The data
described in this paragraph is the following aggre-
gated monthly data with respect to the families de-
scribed in paragraph (4):
‘‘(A) The number of families.
‘‘(B) The number of adults in each family.
‘‘(C) The number of children in each fam-
ily.
‘‘(D) The number of families for which as-
sistance has been terminated because of employ-
ment, sanctions, or time limits.
‘‘(4) FAMILIES
DESCRIBED.—The families de-
scribed in this paragraph are—
‘‘(A) families receiving assistance under a
State program funded under this part for each
month in the calendar quarter preceding the cal-
endar quarter in which the data is submitted;
‘‘(B) families applying for such assistance
during such preceding calendar quarter; and
‘‘(C) families that became ineligible to re-
ceive such assistance during such preceding cal-
endar quarter.
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‘‘(5) APPROPRIATE
SUBSETS
OF
DATA
COL-
LECTED.—The Secretary shall determine appropriate
subsets of the data described in paragraphs (2) and
(3) that a State is required to submit under para-
graph (1) with respect to families described in sub-
paragraphs (B) and (C) of paragraph (4).
‘‘(6) SAMPLING
AND
OTHER
METHODS.—The
Secretary shall provide the States with such case sam-
pling plans and data collection procedures as the Sec-
retary deems necessary to produce statistically valid
estimates of each State’s program performance. The
Secretary is authorized to develop and implement
procedures for verifying the quality of data submitted
by the States.
‘‘(c) REPORT ON USE OF FEDERAL FUNDS TO COVER
ADMINISTRATIVE COSTS AND OVERHEAD.—The report re-
quired by subsection (a) for a fiscal year shall include a
statement of—
‘‘(1) the total amount and percentage of the Fed-
eral funds paid to the State under this part for the
fiscal year that are used to cover administrative costs
or overhead; and
‘‘(2) the total amount of State funds that are
used to cover such costs or overhead.
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‘‘(d) REPORT
ON STATE EXPENDITURES
ON PRO-
GRAMS FOR NEEDY FAMILIES.—The report required by sub-
section (a) for a fiscal year shall include a statement of
the total amount expended by the State during the fiscal
year on the program under this part and the purposes for
which such amount was spent.
‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI-
PATING IN WORK ACTIVITIES.—The report required by sub-
section (a) for a fiscal year shall include the number of
noncustodial parents in the State who participated in work
activities during the fiscal year.
‘‘(f) REPORT ON CHILD SUPPORT COLLECTED.—The
report required by subsection (a) for a fiscal year shall in-
clude the total amount of child support collected by the
State agency administering the State program under part
D on behalf of a family receiving assistance under this part.
‘‘(g) REPORT ON CHILD CARE.—The report required
by subsection (a) for a fiscal year shall include the total
amount expended by the State for child care under the pro-
gram under this part, along with a description of the types
of child care provided, including child care provided in the
case of a family that—
‘‘(1) has ceased to receive assistance under this
part because of employment; or
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‘‘(2) is not receiving assistance under this part
but would be at risk of becoming eligible for such as-
sistance if child care was not provided.
‘‘(h) REPORT ON TRANSITIONAL SERVICES.—The re-
port required by subsection (a) for a fiscal year shall in-
clude the total amount expended by the State for providing
transitional services to a family that has ceased to receive
assistance under this part because of employment, along
with a description of such services.
‘‘(i) SECRETARY’S REPORT ON DATA PROCESSING.—
‘‘(1) IN
GENERAL.—Not later than 6 months
after the date of the enactment of the Work Oppor-
tunity Act of 1995, the Secretary shall prepare and
submit to the Congress a report on—
‘‘(A) the status of the automated data proc-
essing systems operated by the States to assist
management in the administration of State pro-
grams under this part (whether in effect before or
after October 1, 1995); and
‘‘(B) what would be required to establish a
system capable of—
‘‘(i) tracking participants in public
programs over time; and
‘‘(ii) checking case records of the States
to determine whether individuals are par-
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ticipating in public programs in 2 or more
States.
‘‘(2) PREFERRED
CONTENTS.—The report re-
quired by paragraph (1) should include—
‘‘(A) a plan for building on the automated
data processing systems of the States to establish
a system with the capabilities described in para-
graph (1)(B); and
‘‘(B) an estimate of the amount of time re-
quired to establish such a system and of the cost
of establishing such a system.
‘‘(j) REPORT TO CONGRESS.—Not later than 6 months
after the end of fiscal year 1997, and each fiscal year there-
after, the Secretary shall transmit to the Congress a report
describing—
‘‘(1) whether the States are meeting—
‘‘(A) the participation rates described in
section 404(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;
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‘‘(3) the demographic and financial characteris-
tics of families applying for assistance, families re-
ceiving assistance, and families that become ineligible
to receive assistance;
‘‘(4) the characteristics of each State program
funded under this part; and
‘‘(5) the trends in employment and earnings of
needy families with minor children.
‘‘SEC. 410. RESEARCH, EVALUATIONS, AND NATIONAL STUD-
IES.
‘‘(a) RESEARCH.—The Secretary shall conduct re-
search on the benefits, effects, and costs of operating dif-
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.
‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVATIVE
APPROACHES TO REDUCING WELFARE DEPENDENCY 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-
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creasing the well-being of minor children with respect
to recipients of assistance under programs funded
under this part. The Secretary may provide funds for
training and technical assistance to carry out the ap-
proaches 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 assignment as
an evaluation methodology.
‘‘(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 tech-
nologies.
‘‘(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 suc-
cess in placing recipients of assistance under the
State program funded under this part into long-term
private sector jobs, reducing the overall welfare case-
load, and, when a practicable method for calculating
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this information becomes available, diverting individ-
uals 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 children in families in the
State that have incomes below the poverty line and
the amount of funding provided each State for such
families.
‘‘(2) ANNUAL REVIEW OF MOST AND LEAST SUC-
CESSFUL WORK PROGRAMS.—The Secretary shall re-
view 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, assistance in
finding employment, and other work preparation ac-
tivities and support services to enable the families of
such parents to leave the program and become self-suf-
ficient.
‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF IS-
SUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—
‘‘(1) ANNUAL RANKING OF STATES.—
‘‘(A) IN GENERAL.—The Secretary shall an-
nually rank States to which grants are paid
under section 403 based on the following ranking
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factors (developed with information reported by
the State under section 409(a)(13)):
‘‘(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 infor-
mation is available; over
‘‘(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)
for the most recent fiscal year for which in-
formation is available and such State’s
ratio determined for the 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 paragraph (1).
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‘‘(f) STUDY
ON
ALTERNATIVE
OUTCOMES
MEAS-
URES.—
‘‘(1) STUDY.—The Secretary shall, in coopera-
tion with the States, study and analyze outcomes
measures for evaluating the success of a State in mov-
ing individuals out of the welfare system through em-
ployment as an alternative to the minimum partici-
pation rates described in section 404. The study shall
include a determination as to whether such alter-
native outcomes measures should be applied on a na-
tional or a State-by-State basis and a preliminary
assessment of the job placement performance bonus es-
tablished under section 403(f).
‘‘(2) 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 findings of the study described in
paragraph (1).
‘‘(g) STATE-INITIATED STUDIES.—A State shall be eli-
gible to receive funding to evaluate the State’s family assist-
ance program funded under this part if—
‘‘(1) the State submits a proposal to the Sec-
retary for such evaluation,
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‘‘(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
‘‘(3) unless otherwise waived by the Secretary,
the State provides a non-Federal share of at least 10
percent of the cost of such study.
‘‘SEC. 411. 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 Work Opportunity Act of 1995 on
a random national sample of recipients of assistance under
State programs funded under this part and (as appro-
priate) other low-income families, and in doing so, shall
pay particular attention to the issues of out-of-wedlock
births, 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,
the Secretary of the Treasury shall pay to the Bureau of
the Census $10,000,000 for each of fiscal years 1996, 1997,
1998, 1999, and 2000 to carry out subsection (a).
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‘‘SEC. 412. WAIVERS.
‘‘(a) CONTINUATION OF WAIVERS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if any waiver granted to a State under sec-
tion 1115 or otherwise which relates to the provision
of assistance under a State plan under this part is
in effect or approved by the Secretary as of October
1, 1995, the amendments made by the Work Oppor-
tunity Act of 1995 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 terms of
the waiver.
‘‘(2) FINANCING
LIMITATION.—Notwithstanding
any other provision of law, beginning with fiscal year
1996, a State operating under a waiver described in
paragraph (1) shall receive the payment described for
such State for such fiscal year under section 403, 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-
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able information concerning the result or effect of
such waiver.
‘‘(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 harmless
for accrued cost neutrality liabilities incurred
under the terms and conditions of such waiver.
‘‘(B) DATE DESCRIBED.—The date described
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 Work Opportunity Act of
1995.
‘‘(c) SECRETARIAL ENCOURAGEMENT
OF CURRENT
WAIVERS.—The Secretary shall encourage any State oper-
ating a waiver described in subsection (a) to continue such
waiver and to evaluate, using random sampling and other
characteristics of accepted scientific evaluations, the result
or effect of such waiver.
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‘‘(d) CONTINUATION
OF INDIVIDUAL WAIVERS.—A
State may elect to continue one or more individual waivers
described in subsection (a)(1).
‘‘SEC. 413. STATE AND COUNTY DEMONSTRATION PRO-
GRAMS.
‘‘(a) NO LIMITATION
OF STATE DEMONSTRATION
PROJECTS.—Nothing in this part shall be construed as lim-
iting a State’s ability to conduct demonstration projects for
the purpose of identifying innovative or effective program
designs in 1 or more political subdivisions of the State: Pro-
vided, That such State contains more than one county with
a population of greater than 500,000.
‘‘(b) COUNTY WELFARE DEMONSTRATION PROJECT.—
‘‘(1) IN GENERAL.—The Secretary of Health and
Human Services and the Secretary of Agriculture
shall jointly enter into negotiations with all counties
having a population greater than 500,000 desiring to
conduct a demonstration project described in para-
graph (2) for the purpose of establishing appropriate
rules to govern the establishment and operation of
such project.
‘‘(2) DEMONSTRATION
PROJECT
DESCRIBED.—
The demonstration project described in this para-
graph shall provide that—
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‘‘(A) a county participating in the dem-
onstration project shall have the authority and
duty to administer the operation of the program
described under this part as if the county were
considered a State for the purpose of this part;
‘‘(B) the State in which the county partici-
pating in the demonstration project is located
shall pass through directly to the county the por-
tion of the grant received by the State under sec-
tion 403 which the State determines is attrib-
utable to the residents of such county; and
‘‘(C) the duration of the project shall be for
5 years.
‘‘(3) COMMENCEMENT
OF
PROJECT.—After the
conclusion of the negotiations described in paragraph
(2), the Secretary of Health and Human Services and
the Secretary of Agriculture may authorize a county
to conduct the demonstration project described in
paragraph (2) in accordance with the rules estab-
lished during the negotiations.
‘‘(4) REPORT.—Not later then 6 months after the
termination of a demonstration project operated
under this subsection, the Secretary of Health and
Human Services and the Secretary of Agriculture
shall submit to the Congress a report that includes—
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‘‘(A) a description of the demonstration
project;
‘‘(B) the rules negotiated with respect to the
project; and
‘‘(C) the innovations (if any) that the coun-
ty was able to initiate under the project.
‘‘(5) ELIGIBLE COUNTY.—A county may partici-
pate in a demonstration project under this subsection
if the county is—
‘‘(A) a county that is already administering
the welfare program under this part;
‘‘(B) represents less than 25 percent of the
State’s total welfare caseload.
‘‘SEC. 414. DIRECT FUNDING AND ADMINISTRATION BY IN-
DIAN TRIBES.
‘‘(a) PURPOSE.—The purpose of this section is—
‘‘(1) to strengthen and enhance the control and
flexibility of local governments over local programs;
and
‘‘(2) in recognition of the principles contained in
the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450 et seq.)—
‘‘(A) to provide direct Federal funding to
Indian tribes for the tribal administration of the
program funded under this part; or
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‘‘(B) to enable Indian tribes to enter into
agreements, contracts, or compacts with inter-
tribal consortia, States, or other entities for the
administration of such program on behalf of the
Indian tribe.
‘‘(b) GRANT AMOUNTS FOR INDIAN TRIBES.—
‘‘(1) IN
GENERAL.—For each of fiscal years
1996, 1997, 1998, 1999, and 2000, the Secretary shall
pay to each Indian tribe that has an approved tribal
family assistance plan a tribal family assistance
grant for the fiscal year in an amount equal to the
amount determined under paragraph (2).
‘‘(2) AMOUNT DETERMINED.—
‘‘(A) IN GENERAL.—The amount determined
under this paragraph is an amount equal to the
total amount of the Federal payments to a State
or States under section 403 for fiscal year 1994
(as in effect during such fiscal year) attributable
to expenditures by the State or States under part
A and part F of this title (as so in effect) in such
year for Indian families residing in the service
area or areas identified by the Indian tribe in
subsection (c)(1)(C).
‘‘(B) USE OF STATE SUBMITTED DATA.—
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‘‘(i) IN GENERAL.—The Secretary shall
use State submitted data to make each de-
termination under subparagraph (A).
‘‘(ii) DISAGREEMENT
WITH
DETER-
MINATION.—If an Indian tribe or tribal or-
ganization disagrees with State submitted
data described under clause (i), the Indian
tribe or tribal organization may submit to
the Secretary such additional information
as may be relevant to making the deter-
mination under subparagraph (A) and the
Secretary may consider such information
before making such determination.
‘‘(c) 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 the purposes of this sec-
tion;
‘‘(B) specifies whether the welfare-related
services provided under the plan will be provided
by the Indian tribe or through agreements, con-
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tracts, 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
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-Deter-
mination 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).
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‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this
section shall preclude the development and submission
of a single plan by the participating Indian tribes of
an intertribal consortium.
‘‘(d) MINIMUM WORK PARTICIPATION REQUIREMENTS
AND TIME LIMITS.—The Secretary, with the participation
of Indian tribes, shall establish for each Indian tribe receiv-
ing a grant under this section minimum work participa-
tion requirements, appropriate time limits for receipt of
welfare-related services under such grant, and penalties
against individuals—
‘‘(1) consistent with the purposes of this section;
‘‘(2) consistent with the economic conditions and
resources available to each tribe; and
‘‘(3) similar to comparable provisions in section
404(d).
‘‘(e) EMERGENCY ASSISTANCE.—Nothing in this sec-
tion shall preclude an Indian tribe from seeking emergency
assistance from any Federal loan program or emergency
fund.
‘‘(f) 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
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‘‘(2) the requirements of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C.
450 et seq.).
‘‘(g) TRIBAL PENALTIES.—For the purpose of ensuring
the proper use of tribal family assistance grants, the follow-
ing provisions shall apply to an Indian tribe with an ap-
proved tribal assistance plan:
‘‘(1) The provisions of subsections (a)(1), (a)(6),
and (b) of section 407, in the same manner as such
subsections apply to a State.
‘‘(2) The provisions of section 407(a)(3), except
that such subsection shall be applied by substituting
‘the minimum requirements established under sub-
section (d) of section 414’ for ‘the minimum partici-
pation rates specified in section 404’.
‘‘(h) DATA COLLECTION AND REPORTING.—For the
purpose of ensuring uniformity in data collection, section
409 shall apply to an Indian tribe with an approved tribal
family assistance plan.
‘‘(i) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section, and except as provided in
paragraph (2), an Indian tribe in the State of Alaska
that receives a tribal family assistance grant under
this section shall use such grant to operate a program
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in accordance with the requirements applicable to the
program of the State of Alaska funded under this
part.
‘‘(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. 415. ASSISTANT SECRETARY FOR FAMILY SUPPORT.
‘‘The programs under this part and part D of this title
shall be administered by an Assistant Secretary for Family
Support within the Department of Health and Human
Services, 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. 416. LIMITATION ON FEDERAL AUTHORITY.
‘‘The Secretary of Health and Human Services and
the Secretary of the Treasury may not regulate the conduct
of States under this part or enforce any provision of this
part, except to the extent expressly provided in this part.
‘‘SEC. 417. APPEAL OF ADVERSE DECISION.
‘‘(a) IN GENERAL.—The Secretary shall notify the
chief executive officer of a State of any adverse decision or
action under this part, including any decision with respect
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to the State’s plan or the imposition of a penalty under
section 407.
‘‘(b) ADMINISTRATIVE REVIEW
OF ADVERSE DECI-
SION.—
‘‘(1) IN
GENERAL.—Within 60 days after the
date a State receives notice of an adverse decision
under this section, the State may appeal the decision,
in whole or in part, to the Departmental Appeals
Board established in the Department of Health and
Human Services (hereafter referred to in this section
as the ‘Board’) by filing an appeal with the Board.
‘‘(2) PROCEDURAL
RULES.—The Board shall
consider a State’s appeal on the basis of such docu-
mentation as the State may submit and as the Board
may require to support the final decision of the
Board. In deciding whether to uphold an adverse de-
cision or any portion thereof, the Board shall conduct
a thorough review of the issues and take into account
all relevant evidence. The Board shall make a final
determination with respect to an appeal filed under
this paragraph 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 with respect to
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an adverse decision regarding a State under this sec-
tion, 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 located;
or
‘‘(B) the United States District Court for
the District of Columbia.
‘‘(2) PROCEDURAL RULES.—The district court in
which an action is filed shall review the final decision
of the Board on the record established in the adminis-
trative proceeding, in accordance 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 submitted to the Board.
‘‘SEC. 418. PERFORMANCE BONUS AND HIGH PERFORM-
ANCE BONUS.
‘‘(a) IN GENERAL.—
‘‘(1) PERFORMANCE BONUS.—In addition to the
State family assistance grant, for fiscal year 2000,
the Secretary shall pay to each qualified State an
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amount equal to the State’s share of the performance
bonus fund described in paragraph (3).
‘‘(2) QUALIFIED STATE.—For purposes of this
subsection, the term ‘qualified State’ means a State
that during the measurement period—
‘‘(A) exceeds the overall average perform-
ance achieved by all States with respect to a
measurement category, or
‘‘(B) improves the State’s performance in a
measurement category by at least 15 percent over
the State’s baseline period.
‘‘(3) BONUS FUND.—The amount of the bonus
fund for fiscal year 2000 shall be an amount equal
to 5 percent of the amount appropriated under sec-
tion 403(a)(2)(A) for such fiscal year.
‘‘(b) HIGH PERFORMANCE BONUS.—
‘‘(1) IN GENERAL.—In addition to the amount
provided under subsection (a), each of the 10 high
performance States in each measurement category
shall be entitled to receive a share of the high per-
formance bonus fund described in paragraph (3).
‘‘(2) HIGH
PERFORMANCE
STATES.—For pur-
poses of this subsection, the term ‘high performance
States’ means with respect to each measurement cat-
egory during the measurement period—
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‘‘(A) the 5 States that have the highest per-
centage of improvement with respect to the
State’s performance in the measurement category
over the State’s baseline period; and
‘‘(B) the 5 States that have the highest over-
all average performance with respect to the meas-
urement category.
‘‘(3) HIGH PERFORMANCE BONUS FUND.—There
are authorized to be appropriated and there are ap-
propriated the amount of the high performance bonus
fund for fiscal year 2000 equal to the amount of the
reduction in State family assistance grants for all
States for fiscal years 1996, 1997, 1998, and 1999 re-
sulting from the application of section 407.
‘‘(c) DEFINITIONS AND SPECIAL RULES.— For pur-
poses of this section:
‘‘(1) MEASUREMENT
CATEGORY.—A measure-
ment category means any of the following categories:
‘‘(A) A reduction in the average length of
time families in the State receive assistance dur-
ing a fiscal year under the State program fund-
ed under this part.
‘‘(B) An increase in the percentage of fami-
lies receiving such assistance under this part
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that receive child support payments under part
D.
‘‘(C) An increase in the number of families
that received assistance under a State program
funded under this part in the preceding fiscal
year that became ineligible for assistance under
the State program as a result of unsubsidized
employment during such year.
‘‘(D) An increase in the amount earned by
families that receive assistance under this part.
‘‘(E) A reduction in the percentage of fami-
lies that become eligible for assistance under this
part within 18 months after becoming ineligible
for such assistance.
‘‘(2) MEASUREMENT
PERIOD; BASELINE
PE-
RIOD.—
‘‘(A) MEASUREMENT
PERIOD.—The term
‘measurement period’ means the period begin-
ning not later than 6 months after the date of
the enactment of the Work Opportunity Act of
1995 and ending on September 30, 1999.
‘‘(B) BASELINE PERIOD.—The term ‘base-
line period’ means fiscal year 1994.
‘‘(3) ALLOCATION
FORMULA.—For purposes of
determining a State’s share of the performance bonus
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case of a State with respect to which section
1108 of this Act applies; and
‘‘(C) 403(n) of this Act (as so in effect) for
child care services pursuant to section 402(i) of
this Act.
‘‘(2) DISTRIBUTION.—From amounts set aside
for a fiscal year under paragraph (1), the Secretary
shall pay to a State an amount equal to the total
amounts of Federal payments for fiscal year 1994 to
the State under section—
‘‘(A) 402(g)(3)(A) of this Act (as such sec-
tion was in effect before October 1, 1995) for
amounts expended for child care pursuant to
paragraph (1) of such section;
‘‘(B) 403(l)(1)(A) of this Act (as so in ef-
fect) for amounts expended for child care pursu-
ant to section 402(g)(1)(A) of this Act, in the
case of a State with respect to which section
1108 of this Act applies; and
‘‘(C) 403(n) of this Act (as so in effect) for
child care services pursuant to section 402(i) of
this Act.
‘‘(3) USE OF FUNDS.—Amounts received by a
State under paragraph (2) shall only be used to pro-
vide child care assistance under this part.
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‘‘(4) FEDERAL
PAYMENTS.—For purposes of
paragraphs (1) and (2), Federal payments for fiscal
year 1994 means such payments as reported by the
State on February 14, 1995.
‘‘(b) ADDITIONAL APPROPRIATION.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated 
and 
there 
are 
appropriated,
$3,000,000,000 to be distributed to the States during
the 5-fiscal year period beginning in fiscal year 1996
for the provision of child care assistance.
‘‘(2) DISTRIBUTION.—
‘‘(A) IN GENERAL.—The Secretary shall use
amounts made available under paragraph (1) to
make grants to States. The total amount of
grants awarded to a State under this paragraph
shall be based on the formula used for determin-
ing the amount of Federal payments to the State
for fiscal year 1994 under section 403(n) (as
such section was in effect before October 1, 1995)
for child care services pursuant to section 402(i)
as such amount relates to the total amount of
such Federal payments to all States for such fis-
cal year.
‘‘(B) FISCAL YEAR 2000.—With respect to
the last quarter of fiscal year 2000, if the Sec-
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retary determines that any allotment to a State
under this subsection will not be used by such
State for carrying out the purpose for which the
allotment is available, the Secretary shall make
such allotment available for carrying out such
purpose to 1 or more other States which apply
for such funds to the extent the Secretary deter-
mines that such other States will be able to use
such additional allotments for carrying out such
purpose. Such available allotments shall be re-
allocated to a State pursuant to section 402(i)
(as such section was in effect before October 1,
1995) by substituting ‘the number of children re-
siding in all States applying for such funds’ for
‘the number of children residing in the United
States in the second preceding fiscal year’. Any
amount made available to a State from an ap-
propriation for a fiscal year in accordance with
the preceding sentence shall, for purposes of this
part, be regarded as part of such State’s pay-
ment (as determined under this subsection) for
such year.
‘‘(3) AMOUNT OF FUNDS.—The Secretary shall
pay to each eligible State in a fiscal year an amount
equal to the Federal medical assistance percentage for
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such State for such fiscal year (as defined in section
1905(b)) of so much of the expenditures by the State
for child care in such year as exceed the State set-
aside for such State under subsection (a) for such
year and the amount of State expenditures in fiscal
year 1994 that equal the non-Federal share for the
programs described in subparagraphs (A), (B) and
(C) of subsection (a)(1).
‘‘(4) BUDGET
SCORING.—Notwithstanding sec-
tion 257(b)(2) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985, the baseline shall
assume that no grant shall be made under this sub-
section after fiscal year 2000.
‘‘(c) ADMINISTRATIVE PROVISIONS.—
‘‘(1) STATE
OPTION.—For purposes of section
402(a)(1)(B), a State may, at its option, not require
a single parent with a child under the age of 6 to
participate in work for more than an average of 20
hours per week during a month and may count such
parent as being engaged in work for a month for pur-
poses, of section 404(c)(1) if such parent participates
in work for an average of 20 hours per week during
such month.
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‘‘(2) RULE OF CONSTRUCTION.—Nothing in this
section shall be construed to provide an entitlement to
child care services to any child.
‘‘SEC. 420. ELIGIBILITY FOR CHILD CARE ASSISTANCE.
Notwithstanding section 658T of the Child Care and
Development Block Grant Act of 1990, the State agency
specified in section 402(a)(6) shall determine eligibility for
child care assistance provided under this part in accordance
with criteria determined by the State.
‘‘SEC. 421. COLLECTION OF OVERPAYMENTS FROM FED-
ERAL TAX REFUNDS.
‘‘(a) IN GENERAL.—Upon receiving notice from the
Secretary of Health and Human Services that a State agen-
cy administering a plan approved under this part has noti-
fied the Secretary that a named individual has been over-
paid under the State plan approved under this part, the
Secretary of the Treasury shall determine whether any
amounts as refunds of Federal taxes paid are payable to
such individual, regardless of whether such individual filed
a tax return as a married or unmarried individual. If the
Secretary of the Treasury finds that any such amount is
payable, the Secretary shall withhold from such refunds an
amount equal to the overpayment sought to be collected by
the State and pay such amount to the State agency.
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‘‘(b) REGULATIONS.—The Secretary of the Treasury
shall issue regulations, after review by the Secretary of
Health and Human Services, that provide—
‘‘(1) that a State may only submit under sub-
section (a) requests for collection of overpayments
with respect to individuals—
‘‘(A) who are no longer receiving assistance
under the State plan approved under this part,
‘‘(B) with respect to whom the State has al-
ready taken appropriate action under State law
against the income or resources of the individ-
uals or families involved to collect the past-due
legally enforceable debt; and
‘‘(C) to whom the State agency has given
notice of its intent to request withholding by the
Secretary of the Treasury from the income tax
refunds of such individuals;
‘‘(2) that the Secretary of the Treasury will give
a timely and appropriate notice to any other person
filing a joint return with the individual whose refund
is subject to withholding under subsection (a); and
‘‘(3) the procedures that the State and the Sec-
retary of the Treasury will follow in carrying out this
section which, to the maximum extent feasible and
consistent with the specific provisions of this section,
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will be the same as those issued pursuant to section
464(b) applicable to collection of past-due child sup-
port.’’.
(c) CONFORMING AMENDMENTS RELATING TO COL-
LECTION OF OVERPAYMENTS.—
(1) Section 6402 of the Internal Revenue Code of
1986 (relating to authority to make credits or re-
funds) is amended—
(A) in subsection (a), by striking ‘‘(c) and
(d)’’ and inserting ‘‘(c), (d), and (e)’’;
(B) by redesignating subsections (e) through
(i) as subsections (f) through (j), respectively;
and
(C) by inserting after subsection (d) the fol-
lowing:
‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE
IV–A OF THE SOCIAL SECURITY ACT.—The amount of any
overpayment to be refunded to the person making the over-
payment shall be reduced (after reductions pursuant to sub-
sections (c) and (d), but before a credit against future liabil-
ity for an internal revenue tax) in accordance with section
421 of the Social Security Act (concerning recovery of over-
payments to individuals under State plans approved under
part A of title IV of such Act).’’.
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(2) Paragraph (10) of section 6103(l) of such
Code is amended—
(A) by striking ‘‘(c) or (d)’’ each place it
appears and inserting ‘‘(c), (d), or (e)’’; and
(B) by adding at the end of subparagraph
(B) the following new sentence: ‘‘Any return in-
formation disclosed with respect to section
6402(e) shall only be disclosed to officers and em-
ployees of the State agency requesting such infor-
mation.’’.
(3) The matter preceding subparagraph (A) of
section 6103(p)(4) of such Code is amended—
(A) by striking ‘‘(5), (10)’’ and inserting
‘‘(5)’’; and
(B) by striking ‘‘(9), or (12)’’ and inserting
‘‘(9), (10), or (12)’’.
(4) Section 552a(a)(8)(B)(iv)(III) of title 5,
United States Code, is amended by striking ‘‘section
464 or 1137 of the Social Security Act’’ and inserting
‘‘section 421, 464, or 1137 of the Social Security
Act.’’.
SEC. 102. SERVICES PROVIDED BY CHARITABLE, RELI-
GIOUS, OR PRIVATE ORGANIZATIONS.
(a) IN GENERAL.—
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(1) STATE OPTIONS.—Notwithstanding any other
provision of law, 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 certificates,
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 programs:
(A) A State program funded under part A
of title IV of the Social Security Act (as amend-
ed by section 101).
(B) Any other program that is established
or modified under titles I, II, or X 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 as-
sistance.
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(b) RELIGIOUS ORGANIZATIONS.—The purpose of this
section is to allow religious organizations to contract, or
to accept certificates, vouchers, or other forms of disburse-
ment under any program described in subsection (a)(2), on
the same basis as any other provider without impairing the
religious character of such organizations, and without di-
minishing the religious freedom of beneficiaries of assist-
ance funded under such program.
(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANI-
ZATIONS.—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 program described
in subsection (a)(2) so long as the programs are imple-
mented consistent with the Establishment Clause of the
United States Constitution. Neither the Federal Govern-
ment nor a State receiving funds under such programs shall
discriminate against an organization which is or applies
to be a contractor to provide assistance, or which accepts
certificates, vouchers, or other forms of disbursement, on the
basis that the organization has a religious character.
(d) RELIGIOUS CHARACTER AND FREEDOM.—
(1) RELIGIOUS ORGANIZATIONS.—Notwithstand-
ing any other provision of law, any religious organi-
zation with a contract described in subsection
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(a)(1)(A), or which accepts certificates, vouchers, or
other 
forms 
of 
disbursement 
under 
subsection
(a)(1)(B), shall retain its independence from Federal,
State, and local governments, including such organi-
zation’s control over the definition, development,
practice, and expression of its religious beliefs.
(2) ADDITIONAL SAFEGUARDS.—Neither the Fed-
eral Government nor a State shall require a religious
organization to—
(A) alter its form of internal governance; or
(B) remove religious art, icons, scripture, or
other symbols;
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 described 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) with assistance from an alternative pro-
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vider 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, assistance
under a program described in subsection (a)(2).
(f) NONDISCRIMINATION IN EMPLOYMENT.—
(1) IN GENERAL.—Except as provided in para-
graph (2), nothing in this section shall be construed
to modify or affect the provisions of any other Federal
or State law or regulation that relates to discrimina-
tion in employment on the basis of religion.
(2) EXCEPTION.—A religious organization with
a contract described in subsection (a)(1)(A), or which
accepts certificates, vouchers, or other forms of dis-
bursement under subsection (a)(1)(B), may require
that an employee rendering service pursuant to such
contract, or pursuant to the organization’s acceptance
of certificates, vouchers, or other forms of disburse-
ment adhere to—
(A) the religious tenets and teachings of
such organization; and
(B) any rules of the organization regarding
the use of drugs or alcohol.
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(g) NONDISCRIMINATION AGAINST BENEFICIARIES.—
Except as otherwise provided in law, a religious organiza-
tion shall not discriminate against an individual in regard
to rendering assistance funded under any program de-
scribed in subsection (a)(2) on the basis of religion, a reli-
gious 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 programs.
(2) LIMITED AUDIT.—If such organization seg-
regates Federal funds provided under such programs
into separate accounts, then only the financial assist-
ance provided with such funds shall be subject to
audit.
(i) COMPLIANCE.—A religious organization which has
its rights under this section violated may enforce its claim
exclusively by asserting a civil action for such relief as may
be appropriate, including injunctive relief or damages, in
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an appropriate State court against the entity or agency
that allegedly commits such violation.
SEC. 103. LIMITATIONS ON USE OF FUNDS FOR CERTAIN
PURPOSES.
No funds provided directly to institutions or organiza-
tions to provide services and administer programs described
in section 102(a)(2) and programs established or modified
under this Act shall be expended for sectarian worship or
instruction. This section shall not apply to financial assist-
ance provided to or on behalf of beneficiaries of assistance
in the form of certificates, vouchers, or other forms of dis-
bursement, if such beneficiary may choose where such assist-
ance shall be redeemed.
SEC. 104. CONTINUED APPLICATION OF CURRENT STAND-
ARDS UNDER MEDICAID PROGRAM.
(a) IN GENERAL.—Title XIX (42 U.S.C. 1396 et seq.)
is amended—
(1) in section 1931, by inserting ‘‘subject to sec-
tion 1931(a),’’ after ‘‘under this title,’’ and by redes-
ignating such section as section 1932; and
(2) by inserting after section 1930 the following
new section:
‘‘CONTINUED APPLICATION OF AFDC STANDARDS
‘‘SEC. 1931. (a) For purposes of applying this title on
and after October 1, 1995, with respect to a State—
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‘‘(1) except as provided in paragraph (2), any
reference in this title (or other provision of law in re-
lation to the operation of this title) to a provision of
part A of title IV of this Act, or a State plan under
such part, shall be considered a reference to such pro-
vision or plan as in effect as of June 1, 1995, with
respect to the State and eligibility for medical assist-
ance under this title shall be determined as if such
provision or plan (as in effect as of such date) had
remained in effect on and after October 1, 1995; and
‘‘(2) any reference in section 1902(a)(5) or
1902(a)(55) to a State plan approved under part A
of title IV shall be deemed a reference to a State pro-
gram funded under such part (as in effect on and
after October 1, 1995).
‘‘(b) In the case of a waiver of a provision of part
A of title IV in effect with respect to a State as of June
1, 1995, if the waiver affects eligibility of individuals for
medical assistance under this title, such waiver may, at the
option of the State, continue to be applied in relation to
this title after the date the waiver would otherwise expire.’’.
(b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C.
1396a(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(61);
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(2) by striking the period at the end of para-
graph (62) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (62) the follow-
ing new paragraph:
‘‘(63) provide for continuing to administer eligi-
bility standards with respect to individuals who are
(or seek to be) eligible for medical assistance based on
the application of section 1931.’’.
(c) CONFORMING AMENDMENTS.—(1) Section 1902(c)
(42 U.S.C. 1396a(c)) is amended by striking ‘‘if—’’ and
all that follows and inserting the following: ‘‘if the State
requires individuals described in subsection (l)(1) to apply
for assistance under the State program funded under part
A of title IV as a condition of applying for or receiving
medical assistance under this title.’’.
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended
by striking paragraph (9).
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to medical assistance furnished for cal-
endar quarters beginning on or after October 1, 1995.
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 Commerce
(hereafter in this section referred to as the ‘‘Secretary’’), in
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carrying out the provisions of section 141 of title 13, United
States Code, shall expand the data collection efforts of the
Bureau of the Census (hereafter in this section referred to
as the ‘‘Bureau’’) to enable the Bureau to collect statis-
tically significant data, in connection with its decennial
census and its mid-decade census, concerning the growing
trend of grandparents who are the primary caregivers for
their grandchildren.
(b) EXPANDED CENSUS QUESTION.—In carrying out
the provisions of subsection (a), the Secretary shall expand
the Bureau’s census question that details households which
include both grandparents and their grandchildren. The ex-
panded 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 provides
a home for a grandchild and serves as the primary
caregiver for the grandchild.
SEC. 105A. DEVELOPMENT OF PROTOTYPE OF COUNTER-
FEIT-RESISTANT SOCIAL SECURITY CARD RE-
QUIRED.
(a) DEVELOPMENT.—
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(1) IN GENERAL.—The Commissioner of Social
Security (hereafter in this section referred to as the
‘‘Commissioner’’) shall in accordance with the provi-
sions of this section develop a prototype of a counter-
feit-resistant social security card. Such prototype card
shall—
(A) be made of a durable, tamper-resistant
material such as plastic or polyester,
(B) employ technologies that provide secu-
rity 
features, 
such 
as 
magnetic 
stripes,
holograms, and integrated circuits, and
(C) be developed so as to provide individ-
uals with reliable proof of citizenship or legal
resident alien status.
(2) ASSISTANCE BY ATTORNEY GENERAL.—The
Attorney General of the United States shall provide
such information and assistance as the Commissioner
deems necessary to achieve the purposes of this sec-
tion.
(b) STUDY AND REPORT.—
(1) IN GENERAL.—The Commissioner shall con-
duct a study and issue a report to Congress which ex-
amines different methods of improving the social secu-
rity card application process.
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(2) ELEMENTS OF STUDY.—The study shall in-
clude an evaluation of the cost and work load impli-
cations of issuing a counterfeit-resistant social secu-
rity card for all individuals over a 3, 5, and 10 year
period. The study shall also evaluate the feasibility
and cost implications of imposing a user fee for re-
placement cards and cards issued to individuals who
apply for such a card prior to the scheduled 3, 5, and
10 year phase-in options.
(3) DISTRIBUTION OF REPORT.—Copies of the re-
port described in this subsection along with a fac-
simile of the prototype card as described in subsection
(a) shall be submitted to the Committees on Ways and
Means and Judiciary of the House of Representatives
and the Committees on Finance and Judiciary of the
Senate within l year of the date of the enactment of
this Act.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated and are appropriated from
the Federal Old-Age and Survivors Insurance Trust Fund
such sums as may be necessary to carry out the purposes
of this section.
SEC. 106. CONFORMING AMENDMENTS TO THE SOCIAL SE-
CURITY ACT.
(a) AMENDMENTS TO TITLE II.—
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(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 amended—
(A) by inserting ‘‘an agency administering
a program funded under part A of title IV or’’
before ‘‘an agency operating’’; and
(B) by striking ‘‘A or D of title IV of this
Act’’ and inserting ‘‘D of such title’’.
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is
amended by inserting ‘‘under a State program funded
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
‘‘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’’;
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(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’; and
(C) by striking ‘‘402(a)(26) or’’.
(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’’.
(4) Section 452(b) (42 U.S.C. 652(b)) is amend-
ed in the first sentence by striking ‘‘aid under the
State plan approved under part A’’ and inserting
‘‘assistance under a 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
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or aid is being paid under the State’s plan approved
under part E’’.
(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 insert-
ing ‘‘assistance was being provided under the State
program funded under part A or aid was being paid
under the State’s plan approved under part E’’.
(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
is being provided under the State program fund-
ed under part A’’;
(B) by inserting ‘‘by the State agency ad-
ministering the State plan approved under this
part’’ after ‘‘found’’; and
(C) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘with the State in establishing pa-
ternity’’.
(9) Section 452(h) (42 U.S.C. 652(h)) is amend-
ed by striking ‘‘under section 402(a)(26)’’.
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(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is
amended by striking ‘‘aid’’ and inserting ‘‘assistance
under a State program funded’’.
(11) Section 454 (42 U.S.C. 654)) is amended—
(A) in paragraph (5)(A)—
(i) 
by 
striking 
‘‘under 
section
402(a)(26)’’; and
(ii) by striking ‘‘except that this para-
graph shall not apply to such payments for
any month following the first month in
which the amount collected is sufficient to
make such family ineligible for assistance
under the State plan approved under part
A;’’; and
(B) in paragraph (6)(D), by striking ‘‘aid
under a State plan approved’’ and inserting ‘‘as-
sistance under a State program funded’’.
(12) Section 456 (42 U.S.C. 656) is amended—
(A) in subsection (a)(1), by striking ‘‘under
section 402(a)(26)’’; and
(B) by striking subsection (b) and inserting
the following:
‘‘(b) A debt which is a support obligation enforceable
under this title is not released by a discharge in bankruptcy
under title 11, United States Code.’’.
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(13) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘402(a)(26)
or’’.
(14) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is
amended by striking ‘‘aid’’ and inserting ‘‘assistance
under a State program funded’’.
(15) Section 469(a) (42 U.S.C. 669(a)) is
amended—
(A) by striking ‘‘aid under plans approved’’
and inserting ‘‘assistance under State programs
funded’’; and
(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’.
(d) AMENDMENTS TO PART E OF TITLE IV.—
(1) Section 470 (42 U.S.C. 670) is amended—
(A) by striking ‘‘would be’’ and inserting
‘‘would have been’’; and
(B) by inserting ‘‘(as such plan was in ef-
fect on June 1, 1995)’’ after ‘‘part A’’.
(2) Section 471(17) (42 U.S.C. 671(17)) is
amended by striking ‘‘plans approved under parts A
and D’’ and inserting ‘‘program funded under part A
and plan approved under part D’’.
(3) Section 472(a) (42 U.S.C. 672(a)) is amend-
ed—
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(A) in the matter preceding paragraph
(1)—
(i) by striking ‘‘would meet’’ and in-
serting ‘‘would have met’’;
(ii) by inserting ‘‘(as such sections
were in effect on June 1, 1995)’’ after
‘‘407’’; and
(iii) by inserting ‘‘(as so in effect)’’
after ‘‘406(a)’’; and
(B) in paragraph (4)—
(i) in subparagraph (A)—
(I) by inserting ‘‘would have’’
after ‘‘(A)’’; and
(II) by inserting ‘‘(as in effect on
June 1, 1995)’’ after ‘‘section 402’’;
and
(ii) in subparagraph (B)(ii), by insert-
ing ‘‘(as in effect on June 1, 1995)’’ after
‘‘406(a)’’.
(4) Section 472(h) (42 U.S.C. 672(h)) is amend-
ed to read as follows:
‘‘(h)(1) For purposes of title XIX, any child with re-
spect to whom foster care maintenance payments are made
under this section shall be deemed to be a dependent child
as defined in section 406 (as in effect as of June 1, 1995)
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and shall be deemed to be a recipient of aid to families
with dependent children under part A of this title (as so
in effect). For purposes of title XX, any child with respect
to whom foster care maintenance payments are made under
this section shall be deemed to be a minor child in a needy
family under a State program funded under part A and
shall be deemed to be a recipient of assistance under such
part.
‘‘(2) For purposes of paragraph (1), a child whose costs
in a foster family home or child care institution are covered
by the foster care maintenance payments being made with
respect to the child’s minor parent, as provided in section
475(4)(B), shall be considered a child with respect to whom
foster care maintenance payments are made under this sec-
tion.’’.
(5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is
amended—
(A) in subparagraph (A)(i)—
(i) by inserting ‘‘(as such sections were
in effect on June 1, 1995)’’ after ‘‘407’’;
(ii) by inserting ‘‘(as so in effect)’’
after ‘‘specified in section 406(a)’’; and
(iii) by inserting ‘‘(as such section was
in effect on June 1, 1995)’’ after ‘‘403’’;
(B) in subparagraph (B)(i)—
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(i) by inserting ‘‘would have’’ after
‘‘(B)(i)’’; and
(ii) by inserting ‘‘(as in effect on June
1, 1995)’’ after ‘‘section 402’’; and
(C) in subparagraph (B)(ii)(II), by insert-
ing ‘‘(as in effect on June 1, 1995)’’ after
‘‘406(a)’’.
(6) Section 473(b) (42 U.S.C. 673(b)) is amend-
ed to read as follows:
‘‘(b)(1) For purposes of title XIX, any child who is
described in paragraph (3) shall be deemed to be a depend-
ent child as defined in section 406 (as in effect as of June
1, 1995) and shall be deemed to be a recipient of aid to
families with dependent children under part A of this title
(as so in effect) in the State where such child resides.
‘‘(2) For purposes of title XX, any child who is de-
scribed in paragraph (3) shall be deemed to be a minor
child in a needy family under a State program funded
under part A and shall be deemed to be a recipient of assist-
ance under such part.
‘‘(3) A child described in this paragraph is any
child—
‘‘(A)(i) who is a child described in subsection
(a)(2), and
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‘‘(ii) with respect to whom an adoption assist-
ance agreement is in effect under this section (whether
or nor adoption assistance payments are provided
under the agreement or are being made under this
section), including any such child who has been
placed for adoption in accordance with applicable
State and local law (whether or not an interlocutory
or other judicial decree of adoption has been issued),
or
‘‘(B) with respect to whom foster care mainte-
nance payments are being made under section 472.
‘‘(4) For purposes of paragraphs (1) and (2), a child
whose costs in a foster family home or child-care institution
are covered by the foster care maintenance payments being
made with respect to the child’s minor parent, as provided
in section 475(4)(B), shall be considered a child with re-
spect to whom foster care maintenance payments are being
made under section 472.’’.
(e) AMENDMENT TO TITLE X.—Section 1002(a)(7) (42
U.S.C. 1202(a)(7)) is amended by striking ‘‘aid to families
with dependent children under the State plan approved
under section 402 of this Act’’ and inserting ‘‘assistance
under a State program funded under part A of title IV’’.
(f) AMENDMENTS TO TITLE XI.—
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(1) Section 1109 (42 U.S.C. 1309) is amended
by striking ‘‘or part A of title IV,’’.
(2) Section 1115 (42 U.S.C. 1315) is amended—
(A) in subsection (a)(2)—
(i) by inserting ‘‘(A)’’ after ‘‘(2)’’;
(ii) by striking ‘‘403,’’;
(iii) by striking the period at the end
and inserting ‘‘, and’’; and
(iv) by adding at the end the following
new subparagraph:
‘‘(B) costs of such project which would not other-
wise be a permissible use of funds under part A of
title IV and which are not included as part of the
costs of projects under section 1110, shall to the extent
and for the period prescribed by the Secretary, be re-
garded as a permissible use of funds under such
part.’’; and
(B) in subsection (c)(3), by striking ‘‘under
the program of aid to families with dependent
children’’ and inserting ‘‘part A of such title’’.
(3) Section 1116 (42 U.S.C. 1316) is amended—
(A) in each of subsections (a)(1), (b), and
(d), by striking ‘‘or part A of title IV,’’; and
(B) in subsection (a)(3), by striking ‘‘404,’’.
(4) Section 1118 (42 U.S.C. 1318) is amended—
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(A) by striking ‘‘403(a),’’;
(B) by striking ‘‘and part A of title IV,’’;
and
(C) by striking ‘‘, and shall, in the case of
American Samoa, mean 75 per centum with re-
spect to part A of title IV’’.
(5) Section 1119 (42 U.S.C. 1319) is amended—
(A) by striking ‘‘or part A of title IV’’; and
(B) by striking ‘‘403(a),’’.
(6) Section 1133(a) (42 U.S.C. 1320b–3(a)) is
amended by striking ‘‘or part A of title IV,’’.
(7) Section 1136 (42 U.S.C. 1320b–6) is re-
pealed.
(8) Section 1137 (42 U.S.C. 1320b–7) is amend-
ed—
(A) in subsection (b), by striking paragraph
(1) and inserting the following:
‘‘(1) any State program funded under part A of
title IV of this Act;’’; and
(B) in subsection (d)(1)(B)—
(i) by striking ‘‘In this subsection—’’
and all that follows through ‘‘(ii) in’’ and
inserting ‘‘In this subsection, in’’;
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(ii) by redesignating subclauses (I),
(II), and (III) as clauses (i), (ii), and (iii);
and
(iii) by moving such redesignated ma-
terial 2 ems to the left.
(9) Section 1108 (42 U.S.C. 1308) is amended—
(A) in subsection (a)—
(i) in the matter preceding paragraph
(1)—
(I) by inserting ‘‘(or paid, in the
case of part A of title IV)’’ after ‘‘cer-
tified’’; and
(II) by striking ‘‘or, in the case
of’’ and all that follows through ‘‘sec-
tion 403(k)’’;
(ii) in paragraph (1)—
(I) in subparagraph (F), by strik-
ing ‘‘or’’;
(II) in subparagraph (G), by
striking ‘‘the fiscal year 1989 and each
fiscal year thereafter;’’ and inserting
‘‘each of the fiscal years 1989 through
1995, or’’; and
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(III) by inserting after subpara-
graph (G), the following new subpara-
graph:
‘‘(H) $100,039,000 with respect to fiscal
year 1996 and each fiscal year thereafter;’’;
(iii) in paragraph (2)—
(I) in subparagraph (F), by strik-
ing ‘‘or’’;
(II) in subparagraph (G), by
striking ‘‘the fiscal year 1989 and each
fiscal year thereafter;’’ and inserting
‘‘each of the fiscal years 1989 through
1995, or’’; and
(III) by inserting after subpara-
graph (G), the following new subpara-
graph:
‘‘(H) $3,489,000 with respect to fiscal year
1996 and each fiscal year thereafter;’’; and
(iv) in paragraph (3)—
(I) in subparagraph (F), by strik-
ing ‘‘or’’;
(II) in subparagraph (G), by
striking ‘‘the fiscal year 1989 and each
fiscal year thereafter.’’ and inserting
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‘‘each of the fiscal years 1989 through
1995, or’’; and
(III) by inserting after subpara-
graph (G), the following new subpara-
graph:
‘‘(H) $4,593,000 with respect to fiscal year
1996 and each fiscal year thereafter.’’; and
(B) in subsection (d), by striking ‘‘(exclu-
sive of any amounts’’ and all that follows
through ‘‘section 403(k) applies)’’.
(g) AMENDMENT TO TITLE XIV.—Section 1402(a)(7)
(42 U.S.C. 1352(a)(7)) is amended by striking ‘‘aid to fam-
ilies with dependent children under the State plan approved
under section 402 of this Act’’ and inserting ‘‘assistance
under a State program funded under part A of title IV’’.
(h) AMENDMENT TO TITLE XVI AS IN EFFECT WITH
RESPECT TO THE TERRITORIES.—Section 1602(a)(11), as
in effect without regard to the amendment made by section
301 of the Social Security Amendments of 1972 (42 U.S.C.
1382 note), is amended by striking ‘‘aid under the State
plan approved’’ and inserting ‘‘assistance under a State
program funded’’.
(i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH
RESPECT
TO
THE STATES.—Section 1611(c)(5)(A) (42
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HR 4 EAS
U.S.C. 1382(c)(5)(A)) is amended to read as follows: ‘‘(A)
a State program funded under part A of title IV,’’.
SEC. 107. CONFORMING AMENDMENTS TO THE FOOD STAMP
ACT OF 1977 AND RELATED PROVISIONS.
(a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C.
2014) is amended—
(1) in the second sentence of subsection (a), by
striking ‘‘plan approved’’ and all that follows through
‘‘title IV of the Social Security Act’’ and inserting
‘‘program funded under part A of title IV of the So-
cial Security Act (42 U.S.C. 601 et seq.) that the Sec-
retary determines complies with standards established
by the Secretary that ensure that the standards under
the State program are comparable to or more restric-
tive than those in effect on June 1, 1995’’;
(2) in subsection (d)(5)—
(A) by striking ‘‘assistance to families with
dependent children’’ and inserting ‘‘assistance
under a State program funded’’; and
(B) by striking paragraph (13) and redesig-
nating paragraphs (14), (15), and (16) as para-
graphs (13), (14), and (15), respectively;
(3) in subsection (j), by striking ‘‘plan approved
under part A of title IV of such Act (42 U.S.C. 601
et seq.)’’ and inserting ‘‘program funded under part
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funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.), unless the Secretary determines that
any household with income above 130 percent of the poverty
guidelines is not eligible for the program.’’.
(c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4))
is amended by striking ‘‘State plans under the Aid to Fami-
lies with Dependent Children Program under’’ and insert-
ing ‘‘State programs funded under part A of’’.
(d) Section 17 of such Act (7 U.S.C. 2026) is amend-
ed—
(1) in the first sentence of subsection (b)(1)(A),
by striking ‘‘to aid to families with dependent chil-
dren under part A of title IV of the Social Security
Act’’ and inserting ‘‘or are receiving assistance under
a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.)’’; and
(2) in subsection (b)(3), by adding at the end the
following new subparagraph:
‘‘(I) The Secretary may not grant a waiver
under this paragraph on or after October 1, 1995.
Any reference in this paragraph to a provision of title
IV of the Social Security Act shall be deemed to be
a reference to such provision as in effect on September
30, 1995.’’;
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(e) Section 20 of such Act (7 U.S.C. 2029) is amend-
ed—
(1) in subsection (a)(2)(B) by striking ‘‘operat-
ing—’’ and all that follows through ‘‘(ii) any other’’
and inserting ‘‘operating any’’; and
(2) in subsection (b)—
(A) in paragraph (1)—
(i) by striking ‘‘(b)(1) A household’’
and inserting ‘‘(b) A household’’; and
(ii) in subparagraph (B), by striking
‘‘training program’’ and inserting ‘‘activ-
ity’’;
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A)
through (F) as paragraphs (1) through (6), re-
spectively.
(f) Section 5(h)(1) of the Agriculture and Consumer
Protection Act of 1973 (Public Law 93–186; 7 U.S.C. 612c
note) is amended by striking ‘‘the program for aid to fami-
lies with dependent children’’ and inserting ‘‘the State pro-
gram funded’’.
(g) Section 9 of the National School Lunch Act (42
U.S.C. 1758) is amended—
(1) in subsection (b)—
(A) in paragraph (2)(C)(ii)(II)—
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(i) by striking ‘‘program for aid to
families with dependent children’’ and in-
serting ‘‘State program funded’’; and
(ii) by inserting before the period at
the end the following: ‘‘that the Secretary
determines complies with standards estab-
lished by the Secretary that ensure that the
standards under the State program are
comparable to or more restrictive than those
in effect on June 1, 1995’’; and
(B) in paragraph (6)—
(i) in subparagraph (A)(ii)—
(I) by striking ‘‘an AFDC assist-
ance unit (under the aid to families
with dependent children program au-
thorized’’ and inserting ‘‘a family
(under the State program funded’’; and
(II) by striking ‘‘, in a State’’
and 
all 
that 
follows 
through
‘‘9902(2)))’’ and inserting ‘‘that the
Secretary determines complies with
standards established by the Secretary
that ensure that the standards under
the State program are comparable to
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or more restrictive than those in effect
on June 1, 1995’’; and
(ii) in subparagraph (B), by striking
‘‘aid to families with dependent children’’
and inserting ‘‘assistance under the State
program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et
seq.) that the Secretary determines complies
with standards established by the Secretary
that ensure that the standards under the
State program are comparable to or more
restrictive than those in effect on June 1,
1995’’; and
(2) in subsection (d)(2)(C)—
(A) by striking ‘‘program for aid to families
with dependent children’’ and inserting ‘‘State
program funded’’; and
(B) by inserting before the period at the end
the following: ‘‘that the Secretary determines
complies with standards established by the Sec-
retary that ensure that the standards under the
State program are comparable to or more re-
strictive than those in effect on June 1, 1995’’.
(h) Section 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786) is amended—
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(1) in subsection (d)(2)(A)(ii)(II)—
(A) by striking ‘‘program for aid to families
with dependent children established’’ and insert-
ing ‘‘State program funded’’; and
(B) by inserting before the semicolon the fol-
lowing: ‘‘that the Secretary determines complies
with standards established by the Secretary that
ensure that the standards under the State pro-
gram are comparable to or more restrictive than
those in effect on June 1, 1995’’;
(2) in subsection (e)(4)(A), by striking ‘‘program
for aid to families with dependent children’’ and in-
serting ‘‘State program funded’’; and
(3) in subsection (f)(1)(C)(iii), by striking ‘‘aid
to families with dependent children,’’ and inserting
‘‘State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) and with
the’’.
SEC. 108. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemployment
Compensation Amendments of 1976 (Public Law 94–566;
90 Stat. 2689) is amended to read as follows:
‘‘(b) PROVISION
FOR
REIMBURSEMENT
OF
EX-
PENSES.—For purposes of section 455 of the Social Security
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Act, expenses incurred to reimburse State employment of-
fices for furnishing information requested of such offices—
‘‘(1) pursuant to the third sentence of section
3(a) of the Act entitled ‘An Act to provide for the es-
tablishment of a national employment system and for
cooperation with the States in the promotion of such
system, and for other purposes’, approved June 6,
1933 (29 U.S.C. 49b(a)), or
‘‘(2) by a State or local agency charged with the
duty of carrying a State plan for child support ap-
proved under part D of title IV of the Social Security
Act,
shall be considered to constitute expenses incurred in the
administration of such State plan.’’.
(b) Section 9121 of the Omnibus Budget Reconcili-
ation Act of 1987 (42 U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconciliation
Act of 1987 (42 U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Re-
covery Act of 1983 (42 U.S.C. 602 note), relating to treat-
ment under AFDC of certain rental payments for federally
assisted housing, is repealed.
(e) Section 159 of the Tax Equity and Fiscal Respon-
sibility Act of 1982 (42 U.S.C. 602 note) is repealed.
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(f) Section 202(d) of the Social Security Amendments
of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Homeless
Assistance Amendments Act of 1988 (42 U.S.C. 11381 note),
relating to demonstration projects to reduce number of
AFDC families in welfare hotels, is amended—
(1) in subsection (a), by striking ‘‘aid to families
with dependent children under a State plan ap-
proved’’ and inserting ‘‘assistance under a State pro-
gram funded’’; and
(2) in subsection (c), by striking ‘‘aid to families
with dependent children in the State under a State
plan approved’’ and inserting ‘‘assistance in the State
under a State program funded’’.
(h) The Higher Education Act of 1965 (20 U.S.C. 1001
et seq.) is amended—
(1) in section 404C(c)(3) (20 U.S.C. 1070a–
23(c)(3)), by striking ‘‘(Aid to Families with Depend-
ent Children)’’; and
(2) 
in 
section 
480(b)(2) 
(20 
U.S.C.
1087vv(b)(2)), by striking ‘‘aid to families with de-
pendent children under a State plan approved’’ and
inserting ‘‘assistance under a State program funded’’.
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(i) The Carl D. Perkins Vocational and Applied Tech-
nology Education Act (20 U.S.C. 2301 et seq.) is amend-
ed—
(1) in section 231(d)(3)(A)(ii) (20 U.S.C.
2341(d)(3)(A)(ii)), by striking ‘‘the program for aid
to dependent children’’ and inserting ‘‘the State pro-
gram funded’’;
(2) 
in 
section 
232(b)(2)(B) 
(20 
U.S.C.
2341a(b)(2)(B)), by striking ‘‘the program for aid to
families with dependent children’’ and inserting ‘‘the
State program funded’’; and
(3) in section 521(14)(B)(iii) (20 U.S.C.
2471(14)(B)(iii)), by striking ‘‘the program for aid to
families with dependent children’’ and inserting ‘‘the
State program funded’’.
(j) The Elementary and Secondary Education Act of
1965 (20 U.S.C. 2701 et seq.) is amended—
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)),
by striking ‘‘Aid to Families with Dependent Chil-
dren Program’’ and inserting ‘‘State program funded
under part A of title IV of the Social Security Act’’;
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)),
by striking ‘‘the program of aid to families with de-
pendent children under a State plan approved under’’
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and inserting ‘‘a State program funded under part A
of’’; and
(3) 
in 
section 
5203(b)(2) 
(20 
U.S.C.
7233(b)(2))—
(A) in subparagraph (A)(xi), by striking
‘‘Aid to Families with Dependent Children bene-
fits’’ and inserting ‘‘assistance under a State
program funded under part A of title IV of the
Social Security Act’’; and
(B) in subparagraph (B)(viii), by striking
‘‘Aid to Families with Dependent Children’’ and
inserting ‘‘assistance under the State program
funded under part A of title IV of the Social Se-
curity Act’’.
(k) Chapter VII of title I of Public Law 99–88 (25
U.S.C. 13d–1) is amended to read as follows: ‘‘Provided fur-
ther, That general assistance payments made by the Bureau
of Indian Affairs shall be made—
‘‘(1) after April 29, 1985, and before October 1,
1995, on the basis of Aid to Families with Dependent
Children (AFDC) standards of need; and
‘‘(2) on and after October 1, 1995, on the basis
of standards of need established under the State pro-
gram funded under part A of title IV of the Social
Security Act,
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except that where a State ratably reduces its AFDC or State
program payments, the Bureau shall reduce general assist-
ance payments in such State by the same percentage as the
State has reduced the AFDC or State program payment.’’.
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1
et seq.) is amended—
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by
striking all that follows ‘‘agency as’’ and inserting
‘‘being eligible for financial assistance under part A
of title IV of the Social Security Act and as having
continually received such financial assistance during
the 90-day period which immediately precedes the
date on which such individual is hired by the em-
ployer.’’;
(2) 
in 
section 
3304(a)(16) 
(26 
U.S.C.
3304(a)(16)), by striking ‘‘eligibility for aid or serv-
ices,’’ and all that follows through ‘‘children ap-
proved’’ and inserting ‘‘eligibility for assistance, or
the amount of such assistance, under a State program
funded’’;
(3) in section 6103(l)(7)(D)(i) (26 U.S.C.
6103(l)(7)(D)(i)), by striking ‘‘aid to families with
dependent children provided under a State plan ap-
proved’’ and inserting ‘‘a State program funded’’;
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(4) 
in 
section 
6334(a)(11)(A) 
(26 
U.S.C.
6334(a)(11)(A)), by striking ‘‘(relating to aid to fam-
ilies with dependent children)’’; and
(5) 
in 
section 
7523(b)(3)(C) 
(26 
U.S.C.
7523(b)(3)(C)), by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance under a
State program funded under part A of title IV of the
Social Security Act’’.
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C.
49b(b)) is amended by striking ‘‘State plan approved under
part A of title IV’’ and inserting ‘‘State program funded
under part A of title IV’’.
(n) The Job Training Partnership Act (29 U.S.C. 1501
et seq.) is amended—
(1) 
in 
section 
4(29)(A)(i) 
(29 
U.S.C.
1503(29)(A)(i)), by striking ‘‘(42 U.S.C. 601 et seq.)’’;
(2) 
in 
section 
106(b)(6)(C) 
(29 
U.S.C.
1516(b)(6)(C)), by striking ‘‘State aid to families
with dependent children records,’’ and inserting
‘‘records collected under the State program funded
under part A of title IV of the Social Security Act,’’;
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))—
(A) by striking ‘‘the JOBS program’’ and
inserting ‘‘the work activities required under
title IV of the Social Security Act’’; and
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(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))—
(A) in paragraph (1)(E), by repealing
clause (vi); and
(B) in paragraph (2)(D), by repealing
clause (v);
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)),
by striking ‘‘, including recipients under the JOBS
program’’;
(6) in subparagraphs (A) and (B) of section
204(a)(1) (29 U.S.C. 1604(a)(1) (A) and (B)), by
striking ‘‘(such as the JOBS program)’’ each place it
appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by
striking paragraph (4) and inserting the following:
‘‘(4) the portions of title IV of the Social Secu-
rity Act relating to work activities;’’;
(8) in section 253 (29 U.S.C. 1632)—
(A) in subsection (b)(2), by repealing sub-
paragraph (C); and
(B) in paragraphs (1)(B) and (2)(B) of
subsection (c), by striking ‘‘the JOBS program
or’’ each place it appears;
(9) in section 264 (29 U.S.C. 1644)—
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(A) in subparagraphs (A) and (B) of sub-
section (b)(1), by striking ‘‘(such as the JOBS
program)’’ each place it appears; and
(B) in subparagraphs (A) and (B) of sub-
section (d)(3), by striking ‘‘and the JOBS pro-
gram’’ each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by
striking paragraph (6) and inserting the following:
‘‘(6) the portion of title IV of the Social Security
Act relating to work activities;’’;
(11) in the second sentence of section 429(e) (29
U.S.C. 1699(e)), by striking ‘‘and shall be in an
amount that does not exceed the maximum amount
that may be provided by the State pursuant to section
402(g)(1)(C) of the Social Security Act (42 U.S.C.
602(g)(1)(C))’’;
(12) in section 454(c) (29 U.S.C. 1734(c)), by
striking ‘‘JOBS and’’;
(13) in section 455(b) (29 U.S.C. 1735(b)), by
striking ‘‘the JOBS program,’’;
(14) in section 501(1) (29 U.S.C. 1791(1)), by
striking ‘‘aid to families with dependent children
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.)’’ and inserting ‘‘assistance under
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the State program funded under part A of title IV of
the Social Security Act’’;
(15) 
in 
section 
506(1)(A) 
(29 
U.S.C.
1791e(1)(A)), by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance under the
State program funded’’;
(16) 
in 
section 
508(a)(2)(A) 
(29 
U.S.C.
1791g(a)(2)(A)), by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance under the
State program funded’’; and
(17) 
in 
section 
701(b)(2)(A) 
(29 
U.S.C.
1792(b)(2)(A))—
(A) in clause (v), by striking the semicolon
and inserting ‘‘; and’’; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United States
Code, is amended to read as follows:
‘‘(iv) assistance under a State program
funded under part A of title IV of the Social
Security Act’’.
(p) Section 2605(b)(2)(A)(i) of the Low-Income Home
Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i))
is amended to read as follows:
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‘‘(i) assistance under the State pro-
gram funded under part A of title IV of the
Social Security Act;’’.
(q) Section 303(f)(2) of the Family Support Act of
1988 (42 U.S.C. 602 note) is amended—
(1) by striking ‘‘(A)’’; and
(2) by striking subparagraphs (B) and (C).
(r) The Balanced Budget and Emergency Deficit Con-
trol Act of 1985 (2 U.S.C. 900 et seq.)) is amended—
(1) in section 255(h) (2 U.S.C. 905(h), by strik-
ing ‘‘Aid to families with dependent children (75–
0412–0–1–609);’’ and inserting ‘‘Block grants to
States for temporary assistance for needy families;’’;
and
(2) in section 256 (2 U.S.C. 906)—
(A) by striking subsection (k); and
(B) by redesignating subsection (l) as sub-
section (k).
(s) The Immigration and Nationality Act (8 U.S.C.
1101 et seq.) is amended—
(1) in section 210(f) (8 U.S.C. 1160(f)), by strik-
ing ‘‘aid under a State plan approved under’’ each
place it appears and inserting ‘‘assistance under a
State program funded under’’;
(2) in section 245A(h) (8 U.S.C. 1255a(h))—
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(A) in paragraph (1)(A)(i), by striking
‘‘program of aid to families with dependent chil-
dren’’ and inserting ‘‘State program of assist-
ance’’; and
(B) in paragraph (2)(B), by striking ‘‘aid
to families with dependent children’’ and insert-
ing ‘‘assistance under a State program funded
under part A of title IV of the Social Security
Act’’; and
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by
striking ‘‘State plan approved’’ and inserting ‘‘State
program funded’’.
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42
U.S.C. 9835(a)(4)(B)(i)) is amended by striking ‘‘program
of aid to families with dependent children under a State
plan approved’’ and inserting ‘‘State program of assistance
funded’’.
(u) Section 9 of the Act of April 19, 1950 (64 Stat.
47, chapter 92; 25 U.S.C. 639) is repealed.
(v) Subparagraph (E) of section 213(d)(6) of the
School-To-Work Opportunities Act of 1994 (20 U.S.C.
6143(d)(6)) is amended to read as follows:
‘‘(E) part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.) relating to work
activities;’’.