327
‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this
section shall preclude the development and submis-
sion of a single tribal family assistance plan by the
participating Indian tribes of an intertribal consor-
tium.
‘‘(c) MINIMUM
WORK
PARTICIPATION
REQUIRE-
MENTS AND TIME LIMITS.—The Secretary, with the par-
ticipation of Indian tribes, shall establish for each Indian
tribe receiving a grant under this section minimum work
participation requirements, appropriate time limits for re-
ceipt of welfare-related services under the grant, and pen-
alties against individuals—
‘‘(1) consistent with the purposes of this sec-
tion;
‘‘(2) consistent with the economic conditions
and resources available to each tribe; and
‘‘(3) similar to comparable provisions in section
407(d).
‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this sec-
tion shall preclude an Indian tribe from seeking emergency
assistance from any Federal loan program or emergency
fund.
‘‘(e) ACCOUNTABILITY.—Nothing in this section shall
be construed to limit the ability of the Secretary to main-
tain program funding accountability consistent with—
328
‘‘(1) generally accepted accounting principles;
and
‘‘(2) the requirements of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C.
450 et seq.).
‘‘(f) PENALTIES.—
‘‘(1) Subsections (a)(1), (a)(6), and (b) of sec-
tion 409, shall apply to an Indian tribe with an ap-
proved tribal assistance plan in the same manner as
such subsections apply to a State.
‘‘(2) Section 409(a)(3) shall apply to an Indian
tribe with an approved tribal assistance plan by sub-
stituting ‘meet minimum work participation require-
ments established under section 412(c)’ for ‘comply
with section 407(a)’.
‘‘(g) DATA COLLECTION AND REPORTING.—Section
411 shall apply to an Indian tribe with an approved tribal
family assistance plan.
‘‘(h) SPECIAL RULE FOR INDIAN TRIBES IN ALAS-
KA.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section, and except as provided in
paragraph (2), an Indian tribe in the State of Alas-
ka that receives a tribal family assistance grant
under this section shall use the grant to operate a
329
program in accordance with requirements com-
parable to the requirements applicable to the pro-
gram of the State of Alaska funded under this part.
Comparability of programs shall be established on
the basis of program criteria developed by the Sec-
retary in consultation with the State of Alaska and
such Indian tribes.
‘‘(2) WAIVER.—An Indian tribe described in
paragraph (1) may apply to the appropriate State
authority to receive a waiver of the requirement of
paragraph (1).
‘‘SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUD-
IES.
‘‘(a) RESEARCH.—The Secretary shall conduct re-
search on the benefits, effects, and costs of operating dif-
ferent State programs funded under this part, including
time limits relating to eligibility for assistance. The re-
search shall include studies on the effects of different pro-
grams and the operation of such programs on welfare de-
pendency, illegitimacy, teen pregnancy, employment rates,
child well-being, and any other area the Secretary deems
appropriate. The Secretary shall also conduct research on
the costs and benefits of State activities under section
409.
330
‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA-
TIVE APPROACHES TO REDUCING WELFARE DEPEND-
ENCY AND INCREASING CHILD WELL-BEING.—
‘‘(1) IN GENERAL.—The Secretary may assist
States in developing, and shall evaluate, innovative
approaches for reducing welfare dependency and in-
creasing the well-being of minor children living at
home with respect to recipients of assistance under
programs funded under this part. The Secretary
may provide funds for training and technical assist-
ance to carry out the approaches developed pursuant
to this paragraph.
‘‘(2) EVALUATIONS.—In performing the evalua-
tions under paragraph (1), the Secretary shall, to
the maximum extent feasible, use random assign-
ment as an evaluation methodology.
‘‘(c) DISSEMINATION OF INFORMATION.—The Sec-
retary shall develop innovative methods of disseminating
information on any research, evaluations, and studies con-
ducted under this section, including the facilitation of the
sharing of information and best practices among States
and localities through the use of computers and other
technologies.
‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF
MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—
331
‘‘(1) ANNUAL RANKING OF STATES.—The Sec-
retary shall rank annually the States to which
grants are paid under section 403 in the order of
their success in placing recipients of assistance
under the State program funded under this part into
long-term private sector jobs, reducing the overall
welfare caseload, and, when a practicable method for
calculating this information becomes available, di-
verting individuals from formally applying to the
State program and receiving assistance. In ranking
States under this subsection, the Secretary shall
take into account the average number of minor chil-
dren living at home in families in the State that
have incomes below the poverty line and the amount
of funding provided each State for such families.
‘‘(2) ANNUAL
REVIEW
OF
MOST
AND
LEAST
SUCCESSFUL WORK PROGRAMS.—The Secretary shall
review the programs of the 3 States most recently
ranked highest under paragraph (1) and the 3
States most recently ranked lowest under paragraph
(1) that provide parents with work experience, as-
sistance in finding employment, and other work
preparation activities and support services to enable
the families of such parents to leave the program
and become self-sufficient.
332
‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF
ISSUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—
‘‘(1) ANNUAL RANKING OF STATES.—
‘‘(A) IN
GENERAL.—The Secretary shall
annually rank States to which grants are made
under section 403 based on the following rank-
ing factors:
‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RA-
TIOS.—The ratio represented by—
‘‘(I) the total number of out-of-
wedlock births in families receiving as-
sistance under the State program
under this part in the State for the
most recent fiscal year for which in-
formation is available; over
‘‘(II) the total number of births
in families receiving assistance under
the State program under this part in
the State for such year.
‘‘(ii) NET CHANGES IN THE OUT-OF-
WEDLOCK RATIO.—The difference between
the ratio described in subparagraph (A)(i)
with respect to a State for the most recent
fiscal year for which such information is
333
available and the ratio with respect to the
State for the immediately preceding year.
‘‘(2) ANNUAL REVIEW.—The Secretary shall re-
view the programs of the 5 States most recently
ranked highest under paragraph (1) and the 5
States most recently ranked the lowest under para-
graph (1).
‘‘(f) STATE-INITIATED EVALUATIONS.—A State shall
be eligible to receive funding to evaluate the State pro-
gram funded under this part if—
‘‘(1) the State submits a proposal to the Sec-
retary for the evaluation;
‘‘(2) the Secretary determines that the design
and approach of the evaluation is rigorous and is
likely to yield information that is credible and will
be useful to other States, and
‘‘(3) unless otherwise waived by the Secretary,
the State contributes to the cost of the evaluation,
from non-Federal sources, an amount equal to at
least 10 percent of the cost of the evaluation.
‘‘(g) REPORT
ON
CIRCUMSTANCES
OF CERTAIN
CHILDREN AND FAMILIES.—
‘‘(1) IN GENERAL.—Beginning 3 years after the
date of the enactment of this Act, the Secretary of
Health and Human Services shall prepare and sub-
334
mit to the Committees on Ways and Means and on
Economic and Educational Opportunities of the
House of Representatives and to the Committees on
Finance and on Labor and Resources of the Senate
annual reports that examine in detail the matters
described in paragraph (2) with respect to each of
the following groups for the period after such enact-
ment:
‘‘(A) Individuals who were children in fam-
ilies that have become ineligible for assistance
under a State program funded under this part
by reason of having reached a time limit on the
provision of such assistance.
‘‘(B) Families that include a child who is
ineligible for assistance under a State program
funded under this part by reason of section
408(a)(2).
‘‘(C) Children born after such date of en-
actment to parents who, at the time of such
birth, had not attained 20 years of age.
‘‘(D) Individuals who, after such date of
enactment, became parents before attaining 20
years of age.
‘‘(2) MATTERS DESCRIBED.—The matters de-
scribed in this paragraph are the following:
335
‘‘(A) The percentage of each group that
has dropped out of secondary school (or the
equivalent), and the percentage of each group
at each level of educational attainment.
‘‘(B) The percentage of each group that is
employed.
‘‘(C) The percentage of each group that
has been convicted of a crime or has been adju-
dicated as a delinquent.
‘‘(D) The rate at which the members of
each group are born, or have children, out-of-
wedlock, and the percentage of each group that
is married.
‘‘(E) The percentage of each group that
continues to participate in State programs
funded under this part.
‘‘(F) The percentage of each group that
has health insurance provided by a private en-
tity (broken down by whether the insurance is
provided through an employer or otherwise), the
percentage that has health insurance provided
by an agency of government, and the percent-
age that does not have health insurance.
‘‘(G) The average income of the families of
the members of each group.
336
‘‘(H) Such other matters as the Secretary
deems appropriate.
‘‘(h) FUNDING
OF
STUDIES
AND
DEMONSTRA-
TIONS.—
‘‘(1) IN GENERAL.—Out of any money in the
Treasury of the United States not otherwise appro-
priated, there are appropriated $15,000,000 for each
fiscal year specified in section 403(a)(1) for the pur-
pose of paying—
‘‘(A) the cost of conducting the research
described in subsection (a);
‘‘(B) the cost of developing and evaluating
innovative approaches for reducing welfare de-
pendency and increasing the well-being of minor
children under subsection (b);
‘‘(C) the Federal share of any State-initi-
ated study approved under subsection (f); and
‘‘(D) an amount determined by the Sec-
retary to be necessary to operate and evaluate
demonstration projects, relating to this part,
that are in effect or approved under section
1115 as of September 30, 1995, and are contin-
ued after such date.
‘‘(2) ALLOCATION.—Of the amount appro-
priated under paragraph (1) for a fiscal year—
337
‘‘(A) 50 percent shall be allocated for the
purposes described in subparagraphs (A) and
(B) of paragraph (1), and
‘‘(B) 50 percent shall be allocated for the
purposes described in subparagraphs (C) and
(D) of paragraph (1).
‘‘(3) DEMONSTRATIONS OF INNOVATIVE STRAT-
EGIES.—The Secretary may implement and evaluate
demonstrations of innovative and promising strate-
gies which—
‘‘(A) provide one-time capital funds to es-
tablish, expand, or replicate programs;
‘‘(B) test performance-based grant-to-loan
financing in which programs meeting perform-
ance targets receive grants while programs not
meeting such targets repay funding on a pro-
rated basis; and
‘‘(C) test strategies in multiple States and
types of communities.
‘‘SEC. 414. STUDY BY THE CENSUS BUREAU.
‘‘(a) IN GENERAL.—The Bureau of the Census shall
expand the Survey of Income and Program Participation
as necessary to obtain such information as will enable in-
terested persons to evaluate the impact of the amendments
made by subtitle A of the Personal Responsibility and
338
Work Opportunity Act of 1996 on a random national sam-
ple of recipients of assistance under State programs fund-
ed under this part and (as appropriate) other low income
families, and in doing so, shall pay particular attention
to the issues of out-of-wedlock birth, welfare dependency,
the beginning and end of welfare spells, and the causes
of repeat welfare spells.
‘‘(b) APPROPRIATION.—Out of any money in the
Treasury of the United States not otherwise appropriated,
there are appropriated $10,000,000 for each of fiscal
years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 for
payment to the Bureau of the Census to carry out sub-
section (a).
‘‘SEC. 415. WAIVERS.
‘‘(a) CONTINUATION OF WAIVERS.—
‘‘(1) WAIVERS IN EFFECT ON DATE OF ENACT-
MENT OF WELFARE REFORM.—Except as provided
in paragraph (3), if any waiver granted to a State
under section 1115 or otherwise which relates to the
provision of assistance under a State plan under this
part (as in effect on September 30, 1995) is in ef-
fect as of the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996,
the amendments made by such Act (other than by
section 4103(d) of such Act) shall not apply with re-
339
spect to the State before the expiration (determined
without regard to any extensions) of the waiver to
the extent such amendments are inconsistent with
the waiver.
‘‘(2) WAIVERS GRANTED SUBSEQUENTLY.—Ex-
cept as provided in paragraph (3), if any waiver
granted to a State under section 1115 or otherwise
which relates to the provision of assistance under a
State plan under this part (as in effect on Septem-
ber 30, 1995) is submitted to the Secretary before
the date of the enactment of the Personal Respon-
sibility and Work Opportunity Act of 1996 and ap-
proved by the Secretary on or before July 1, 1997,
and the State demonstrates to the satisfaction of the
Secretary that the waiver will not result in Federal
expenditures under title IV of this Act (as in effect
without regard to the amendments made by the Per-
sonal Responsibility and Work Opportunity Act of
1996) that are greater than would occur in the ab-
sence of the waiver, the amendments made by the
Personal Responsibility and Work Opportunity Act
of 1996 (other than by section 4103(d) of such Act)
shall not apply with respect to the State before the
expiration (determined without regard to any exten-
sions) of the waiver to the extent the amendments
340
made by the Personal Responsibility and Work Op-
portunity Act of 1996 are inconsistent with the
waiver.
‘‘(3) FINANCING
LIMITATION.—Notwithstand-
ing any other provision of law, beginning with fiscal
year 1996, a State operating under a waiver de-
scribed in paragraph (1) shall be entitled to payment
under section 403 for the fiscal year, in lieu of any
other payment provided for in the waiver.
‘‘(b) STATE OPTION TO TERMINATE WAIVER.—
‘‘(1) IN GENERAL.—A State may terminate a
waiver described in subsection (a) before the expira-
tion of the waiver.
‘‘(2) REPORT.—A State which terminates a
waiver under paragraph (1) shall submit a report to
the Secretary summarizing the waiver and any avail-
able information concerning the result or effect of
the waiver.
‘‘(3) HOLD HARMLESS PROVISION.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law, a State that, not later
than the date described in subparagraph (B),
submits a written request to terminate a waiver
described in subsection (a) shall be held harm-
341
less for accrued cost neutrality liabilities in-
curred under the waiver.
‘‘(B) DATE
DESCRIBED.—The date de-
scribed in this subparagraph is 90 days follow-
ing the adjournment of the first regular session
of the State legislature that begins after the
date of the enactment of the Personal Respon-
sibility and Work Opportunity Act of 1996.
‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT
WAIVERS.—The Secretary shall encourage any State oper-
ating a waiver described in subsection (a) to continue the
waiver and to evaluate, using random sampling and other
characteristics of accepted scientific evaluations, the result
or effect of the waiver.
‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A
State may elect to continue 1 or more individual waivers
described in subsection (a).
‘‘SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.
‘‘The programs under this part and part D shall be
administered by an Assistant Secretary for Family Sup-
port within the Department of Health and Human Serv-
ices, who shall be appointed by the President, by and with
the advice and consent of the Senate, and who shall be
in addition to any other Assistant Secretary of Health and
Human Services provided for by law.
342
‘‘SEC. 417. LIMITATION ON FEDERAL AUTHORITY.
‘‘No officer or employee of the Federal Government
may regulate the conduct of States under this part or en-
force any provision of this part, except to the extent ex-
pressly provided in this part.’’; and
(2) by inserting after such section 418 the fol-
lowing:
‘‘SEC. 419. DEFINITIONS.
‘‘As used in this part:
‘‘(1) ADULT.—The term ‘adult’ means an indi-
vidual who is not a minor child.
‘‘(2) MINOR
CHILD.—The term ‘minor child’
means an individual who—
‘‘(A) has not attained 18 years of age; or
‘‘(B) has not attained 19 years of age and
is a full-time student in a secondary school (or
in the equivalent level of vocational or technical
training).
‘‘(3) FISCAL
YEAR.—The term ‘fiscal year’
means any 12-month period ending on September 30
of a calendar year.
‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGA-
NIZATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the terms ‘Indian’, ‘Indian
tribe’, and ‘tribal organization’ have the mean-
343
ing given such terms by section 4 of the Indian
Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
‘‘(B) SPECIAL RULE FOR INDIAN TRIBES
IN
ALASKA.—The term ‘Indian tribe’ means,
with respect to the State of Alaska, only the
Metlakatla Indian Community of the Annette
Islands Reserve and the following Alaska Native
regional nonprofit corporations:
‘‘(i) Arctic Slope Native Association.
‘‘(ii) Kawerak, Inc.
‘‘(iii) Maniilaq Association.
‘‘(iv) Association of Village Council
Presidents.
‘‘(v) Tanana Chiefs Conference.
‘‘(vi) Cook Inlet Tribal Council.
‘‘(vii) Bristol Bay Native Association.
‘‘(viii) Aleutian and Pribilof Island
Association.
‘‘(ix) Chugachmuit.
‘‘(x) Tlingit Haida Central Council.
‘‘(xi) Kodiak Area Native Association.
‘‘(xii) Copper River Native Associa-
tion.
344
‘‘(5) STATE.—Except as otherwise specifically
provided, the term ‘State’ means the 50 States of
the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States
Virgin Islands, Guam, and American Samoa.’’.
(b) GRANTS TO OUTLYING AREAS.—Section 1108
(42 U.S.C. 1308) is amended—
(1) by redesignating subsection (c) as sub-
section (g);
(2) by striking all that precedes subsection (c)
and inserting the following:
‘‘SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE
VIRGIN 
ISLANDS, 
GUAM, 
AND 
AMERICAN
SAMOA; LIMITATION ON TOTAL PAYMENTS.
‘‘(a) LIMITATION ON TOTAL PAYMENTS TO EACH
TERRITORY.—Notwithstanding any other provision of this
Act, the total amount certified by the Secretary of Health
and Human Services under titles I, X, XIV, and XVI,
under parts A, B, and E of title IV, and under subsection
(b) of this section, for payment to any territory for a fiscal
year shall not exceed the ceiling amount for the territory
for the fiscal year.
‘‘(b) ENTITLEMENT TO MATCHING GRANT.—
‘‘(1) IN GENERAL.—Each territory shall be en-
titled to receive from the Secretary for each fiscal
345
year a grant in an amount equal to 75 percent of
the amount (if any) by which—
‘‘(A) the total expenditures of the territory
during the fiscal year under the territory pro-
grams funded under parts A, B, and E of title
IV; exceeds
‘‘(B) the sum of—
‘‘(i) the total amount required to be
paid to the territory (other than with re-
spect to child care) under former section
403 (as in effect on September 30, 1995)
for fiscal year 1995, which shall be deter-
mined by applying subparagraphs (C) and
(D) of section 403(a)(1) to the territory;
‘‘(ii) the total amount required to be
paid to the territory under former section
434 (as so in effect) for fiscal year 1995;
and
‘‘(iii) the total amount expended by
the territory during fiscal year 1995 pur-
suant to parts A, B, and F of title IV (as
so in effect), other than for child care.
‘‘(2) USE OF GRANT.—Any territory to which a
grant is made under paragraph (1) may expend the
amount under any program operated or funded
346
under any provision of law specified in subsection
(a).
‘‘(c) DEFINITIONS.—As used in this section:
‘‘(1) TERRITORY.—The term ‘territory’ means
Puerto Rico, the Virgin Islands, Guam, and Amer-
ican Samoa.
‘‘(2) CEILING
AMOUNT.—The term ‘ceiling
amount’ means, with respect to a territory and a fis-
cal year, the mandatory ceiling amount with respect
to the territory plus the discretionary ceiling amount
with respect to the territory, reduced for the fiscal
year in accordance with subsection (f).
‘‘(3) MANDATORY CEILING AMOUNT.—The term
‘mandatory ceiling amount’ means—
‘‘(A) $105,538,000 with respect to for
Puerto Rico;
‘‘(B) $4,902,000 with respect to Guam;
‘‘(C) $3,742,000 with respect to the Virgin
Islands; and
‘‘(D) $1,122,000 with respect to American
Samoa.
‘‘(4) DISCRETIONARY CEILING AMOUNT.—The
term ‘discretionary ceiling amount’ means, with re-
spect to a territory and a fiscal year, the total
347
amount appropriated pursuant to subsection (d)(3)
for the fiscal year for payment to the territory.
‘‘(5) TOTAL AMOUNT EXPENDED BY THE TER-
RITORY.—The term ‘total amount expended by the
territory’—
‘‘(A) does not include expenditures during
the fiscal year from amounts made available by
the Federal Government; and
‘‘(B) when used with respect to fiscal year
1995, also does not include—
‘‘(i) expenditures during fiscal year
1995 under subsection (g) or (i) of section
402 (as in effect on September 30, 1995);
or
‘‘(ii) any expenditures during fiscal
year 1995 for which the territory (but for
section 1108, as in effect on September 30,
1995) would have received reimbursement
from the Federal Government.
‘‘(d) DISCRETIONARY GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall make a
grant to each territory for any fiscal year in the
amount appropriated pursuant to paragraph (3) for
the fiscal year for payment to the territory.
348
‘‘(2) USE OF GRANT.—Any territory to which a
grant is made under paragraph (1) may expend the
amount under any program operated or funded
under any provision of law specified in subsection
(a).
‘‘(3) LIMITATION ON AUTHORIZATION OF AP-
PROPRIATIONS.—For grants under paragraph (1),
there are authorized to be appropriated to the Sec-
retary for each fiscal year—
‘‘(A) $7,951,000 for payment to Puerto
Rico;
‘‘(B) $345,000 for payment to Guam;
‘‘(C) $275,000 for payment to the Virgin
Islands; and
‘‘(D) $190,000 for payment to American
Samoa.
‘‘(e) AUTHORITY TO TRANSFER FUNDS AMONG PRO-
GRAMS.—Notwithstanding any other provision of this Act,
any territory to which an amount is paid under any provi-
sion of law specified in subsection (a) may use part or
all of the amount to carry out any program operated by
the territory, or funded, under any other such provision
of law.
‘‘(f) 
MAINTENANCE
OF
EFFORT.—The 
ceiling
amount with respect to a territory shall be reduced for
349
a fiscal year by an amount equal to the amount (if any)
by which—
‘‘(1) the total amount expended by the territory
under all programs of the territory operated pursu-
ant to the provisions of law specified in subsection
(a) (as such provisions were in effect for fiscal year
1995) for fiscal year 1995; exceeds
‘‘(2) the total amount expended by the territory
under all programs of the territory that are funded
under the provisions of law specified in subsection
(a) for the fiscal year that immediately precedes the
fiscal year referred to in the matter preceding para-
graph (1).’’; and
(3) by striking subsections (d) and (e).
(c) REPEAL OF PROVISIONS REQUIRING REDUCTION
OF MEDICAID PAYMENTS
TO STATES THAT REDUCE
WELFARE PAYMENT LEVELS.—
(1) Section 1903(i) (42 U.S.C. 1396b(i)) is
amended by striking paragraph (9).
(2) Section 1902 (42 U.S.C. 1396a) is amended
by striking subsection (c).
(d) ELIMINATION
OF
CHILD
CARE
PROGRAMS
UNDER THE SOCIAL SECURITY ACT.—
350
(1) AFDC AND
TRANSITIONAL
CHILD
CARE
PROGRAMS.—Section 402 (42 U.S.C. 602) is amend-
ed by striking subsection (g).
(2) AT-RISK CHILD CARE PROGRAM.—
(A) AUTHORIZATION.—Section 402 (42
U.S.C. 602) is amended by striking subsection
(i).
(B) FUNDING
PROVISIONS.—Section 403
(42 U.S.C. 603) is amended by striking sub-
section (n).
SEC. 4104. SERVICES PROVIDED BY CHARITABLE, RELI-
GIOUS, OR PRIVATE ORGANIZATIONS.
(a) IN GENERAL.—
(1) STATE OPTIONS.—A State may—
(A) administer and provide services under
the programs described in subparagraphs (A)
and (B)(i) of paragraph (2) through contracts
with charitable, religious, or private organiza-
tions; and
(B) provide beneficiaries of assistance
under the programs described in subparagraphs
(A) and (B)(ii) of paragraph (2) with certifi-
cates, vouchers, or other forms of disbursement
which are redeemable with such organizations.
351
(2) PROGRAMS DESCRIBED.—The programs de-
scribed in this paragraph are the following pro-
grams:
(A) A State program funded under part A
of title IV of the Social Security Act (as amend-
ed by section 4103(a) of this Act).
(B) Any other program established or
modified under subtitle A, B, or F of this title,
that—
(i) permits contracts with organiza-
tions; or
(ii) permits certificates, vouchers, or
other forms of disbursement to be provided
to beneficiaries, as a means of providing
assistance.
(b) RELIGIOUS ORGANIZATIONS.—The purpose of
this section is to allow States to contract with religious
organizations, or to allow religious organizations to accept
certificates, vouchers, or other forms of disbursement
under any program described in subsection (a)(2), on the
same basis as any other nongovernmental provider without
impairing the religious character of such organizations,
and without diminishing the religious freedom of bene-
ficiaries of assistance funded under such program.
352
(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGA-
NIZATIONS.—In the event a State exercises its authority
under subsection (a), religious organizations are eligible,
on the same basis as any other private organization, as
contractors to provide assistance, or to accept certificates,
vouchers, or other forms of disbursement, under any pro-
gram described in subsection (a)(2) so long as the pro-
grams are implemented consistent with the Establishment
Clause of the United States Constitution. Except as pro-
vided in subsection (k), neither the Federal Government
nor a State receiving funds under such programs shall dis-
criminate against an organization which is or applies to
be a contractor to provide assistance, or which accepts cer-
tificates, vouchers, or other forms of disbursement, on the
basis that the organization has a religious character.
(d) RELIGIOUS CHARACTER AND FREEDOM.—
(1) RELIGIOUS
ORGANIZATIONS.—A religious
organization with a contract described in subsection
(a)(1)(A), or which accepts certificates, vouchers, or
other forms of disbursement under subsection
(a)(1)(B), shall retain its independence from Fed-
eral, State, and local governments, including such
organization’s control over the definition, develop-
ment, practice, and expression of its religious beliefs.
353
(2) ADDITIONAL
SAFEGUARDS.—Neither the
Federal Government nor a State shall require a reli-
gious organization to—
(A) alter its form of internal governance;
or
(B) remove religious art, icons, scripture,
or other symbols;
in order to be eligible to contract to provide assist-
ance, or to accept certificates, vouchers, or other
forms of disbursement, funded under a program de-
scribed in subsection (a)(2).
(e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—
(1) IN GENERAL.—If an individual described in
paragraph (2) has an objection to the religious char-
acter of the organization or institution from which
the individual receives, or would receive, assistance
funded under any program described in subsection
(a)(2), the State in which the individual resides shall
provide such individual (if otherwise eligible for such
assistance) within a reasonable period of time after
the date of such objection with assistance from an
alternative provider that is accessible to the individ-
ual and the value of which is not less than the value
of the assistance which the individual would have re-
ceived from such organization.
354
(2) INDIVIDUAL DESCRIBED.—An individual de-
scribed in this paragraph is an individual who re-
ceives, applies for, or requests to apply for, assist-
ance under a program described in subsection (a)(2).
(f) EMPLOYMENT PRACTICES.—A religious organiza-
tion’s exemption provided under section 702 of the Civil
Rights Act of 1964 (42 U.S.C. 2000e–1a) regarding em-
ployment practices shall not be affected by its participa-
tion in, or receipt of funds from, programs described in
subsection (a)(2).
(g) 
NONDISCRIMINATION
AGAINST
BENE-
FICIARIES.—Except as otherwise provided in law, a reli-
gious organization shall not discriminate against an indi-
vidual in regard to rendering assistance funded under any
program described in subsection (a)(2) on the basis of reli-
gion, a religious belief, or refusal to actively participate
in a religious practice.
(h) FISCAL ACCOUNTABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2), any religious organization contracting to
provide assistance funded under any program de-
scribed in subsection (a)(2) shall be subject to the
same regulations as other contractors to account in
accord with generally accepted auditing principles
355
for the use of such funds provided under such pro-
grams.
(2) LIMITED AUDIT.—If such organization seg-
regates Federal funds provided under such programs
into separate accounts, then only the financial as-
sistance provided with such funds shall be subject to
audit.
(i) COMPLIANCE.—Any party which seeks to enforce
its rights under this section may assert a civil action for
injunctive relief exclusively in an appropriate State court
against the entity or agency that allegedly commits such
violation.
(j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN
PURPOSES.—No funds provided directly to institutions or
organizations to provide services and administer programs
under subsection (a)(1)(A) shall be expended for sectarian
worship, instruction, or proselytization.
(k) PREEMPTION.—Nothing in this section shall be
construed to preempt any provision of a State constitution
or State statute that prohibits or restricts the expenditure
of State funds in or by religious organizations.
SEC. 4105. CENSUS DATA ON GRANDPARENTS AS PRIMARY
CAREGIVERS FOR THEIR GRANDCHILDREN.
(a) IN GENERAL.—Not later than 90 days after the
date of the enactment of this Act, the Secretary of Com-
356
merce, in carrying out section 141 of title 13, United
States Code, shall expand the data collection efforts of the
Bureau of the Census (in this section referred to as the
‘‘Bureau’’) to enable the Bureau to collect statistically sig-
nificant data, in connection with its decennial census and
its mid-decade census, concerning the growing trend of
grandparents who are the primary caregivers for their
grandchildren.
(b) EXPANDED CENSUS QUESTION.—In carrying out
subsection (a), the Secretary of Commerce shall expand
the Bureau’s census question that details households
which include both grandparents and their grandchildren.
The expanded question shall be formulated to distinguish
between the following households:
(1) A household in which a grandparent tempo-
rarily provides a home for a grandchild for a period
of weeks or months during periods of parental dis-
tress.
(2) A household in which a grandparent pro-
vides a home for a grandchild and serves as the pri-
mary caregiver for the grandchild.
SEC. 4106. REPORT ON DATA PROCESSING.
(a) IN GENERAL.—Within 6 months after the date
of the enactment of this Act, the Secretary of Health and
357
Human Services shall prepare and submit to the Congress
a report on—
(1) the status of the automated data processing
systems operated by the States to assist manage-
ment in the administration of State programs under
part A of title IV of the Social Security Act (wheth-
er in effect before or after October 1, 1995); and
(2) what would be required to establish a sys-
tem capable of—
(A) tracking participants in public pro-
grams over time; and
(B) checking case records of the States to
determine whether individuals are participating
in public programs of 2 or more States.
(b) PREFERRED CONTENTS.—The report required by
subsection (a) should include—
(1) a plan for building on the automated data
processing systems of the States to establish a sys-
tem with the capabilities described in subsection
(a)(2); and
(2) an estimate of the amount of time required
to establish such a system and of the cost of estab-
lishing such a system.
358
SEC. 4107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.
(a) STUDY.—The Secretary shall, in cooperation with
the States, study and analyze outcomes measures for eval-
uating the success of the States in moving individuals out
of the welfare system through employment as an alter-
native to the minimum participation rates described in
section 407 of the Social Security Act. The study shall
include a determination as to whether such alternative
outcomes measures should be applied on a national or a
State-by-State basis and a preliminary assessment of the
effects of section 409(a)(7)(C) of such Act.
(b) REPORT.—Not later than September 30, 1998,
the Secretary shall submit to the Committee on Finance
of the Senate and the Committee on Ways and Means of
the House of Representatives a report containing the find-
ings of the study required by subsection (a).
SEC. 4108. CONFORMING AMENDMENTS TO THE SOCIAL SE-
CURITY ACT.
(a) AMENDMENTS TO TITLE II.—
(1) 
Section 
205(c)(2)(C)(vi) 
(42 
U.S.C.
405(c)(2)(C)(vi)), as so redesignated by section
321(a)(9)(B) of the Social Security Independence
and Program Improvements Act of 1994, is amend-
ed—
359
(A) by inserting ‘‘an agency administering
a program funded under part A of title IV or’’
before ‘‘an agency operating’’; and
(B) by striking ‘‘A or D of title IV of this
Act’’ and inserting ‘‘D of such title’’.
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is
amended by inserting ‘‘under a State program fund-
ed under’’ before ‘‘part A of title IV’’.
(b) AMENDMENTS TO PART D OF TITLE IV.—
(1) Section 451 (42 U.S.C. 651) is amended by
striking ‘‘aid’’ and inserting ‘‘assistance under a
State program funded’’.
(2) 
Section 
452(a)(10)(C) 
(42 
U.S.C.
652(a)(10)(C)) is amended—
(A) by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance
under a State program funded under part A’’;
(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’; and
(C) by striking ‘‘under section 402(a)(26)
or’’ 
and 
inserting 
‘‘pursuant 
to 
section
408(a)(4) or under section’’.
(3) 
Section 
452(a)(10)(F) 
(42 
U.S.C.
652(a)(10)(F)) is amended—
360
(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
amended in the first sentence by striking ‘‘aid under
the State plan approved under part A’’ and inserting
‘‘assistance under the State program funded under
part A’’.
(5) 
Section 
452(d)(3)(B)(i) 
(42 
U.S.C.
652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’
and inserting ‘‘1115(b)’’.
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.
652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is
being paid under the State’s plan approved under
part A or E’’ and inserting ‘‘assistance is being pro-
vided under the State program funded under part
A’’.
(7) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended in the matter following
clause (iii) by striking ‘‘aid was being paid under the
State’s plan approved under part A or E’’ and in-
361
serting ‘‘assistance was being provided under the
State program funded under part A’’.
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended in the matter following subparagraph
(B)—
(A) by striking ‘‘who is a dependent child’’
and inserting ‘‘with respect to whom assistance
is being provided under the State program
funded under part A’’;
(B) by inserting ‘‘by the State’’ after
‘‘found’’; and
(C) by striking ‘‘to have good cause for re-
fusing to cooperate under section 402(a)(26)’’
and inserting ‘‘to qualify for a good cause or
other exception to cooperation pursuant to sec-
tion 454(29)’’.
(9) Section 452(h) (42 U.S.C. 652(h)) is
amended by striking ‘‘under section 402(a)(26)’’ and
inserting ‘‘pursuant to section 408(a)(4)’’.
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is
amended by striking ‘‘aid under part A of this title’’
and inserting ‘‘assistance under a State program
funded under part A’’.
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A)))
is amended—
362
(A) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘pursuant to section 408(a)(4)’’;
and
(B) by striking ‘‘; except that this para-
graph shall not apply to such payments for any
month following the first month in which the
amount collected is sufficient to make such
family ineligible for assistance under the State
plan approved under part A;’’ and inserting a
comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D))
is amended by striking ‘‘aid under a State plan ap-
proved’’ and inserting ‘‘assistance under a State pro-
gram funded’’.
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is
amended by striking ‘‘under section 402(a)(26)’’.
(14) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘402(a)(26)’’
and inserting ‘‘408(a)(3)’’.
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is
amended by striking ‘‘aid’’ and inserting ‘‘assistance
under a State program funded’’.
(16) Section 469(a) (42 U.S.C. 669(a)) is
amended—
363
(A) by striking ‘‘aid under plans approved’’
and inserting ‘‘assistance under State programs
funded’’; and
(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’.
(c) REPEAL OF PART F OF TITLE IV.—Part F of
title IV (42 U.S.C. 681–687) is repealed.
(d) 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 ap-
proved under section 402 of this Act’’ and inserting ‘‘as-
sistance under a State program funded under part A of
title IV’’.
(e) AMENDMENTS TO TITLE XI.—
(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 amend-
ed—
(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:
364
‘‘(B) costs of such project which would not oth-
erwise 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 ex-
tent and for the period prescribed by the Secretary,
be regarded as a permissible use of funds under
such part.’’; and
(B) in subsection (c)(3), by striking ‘‘the
program of aid to families with dependent chil-
dren’’ and inserting ‘‘part A of such title’’.
(3) Section 1116 (42 U.S.C. 1316) is amend-
ed—
(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 amend-
ed—
(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’’.
399
(D) DEFINITIONS.—As used in this para-
graph:
(i) STATE AFDC PROGRAM.—The term
‘‘State AFDC program’’ means the State
program under parts A and F of title IV
of the Social Security Act (as in effect on
September 30, 1995).
(ii) STATE.—The term ‘‘State’’ means
the 50 States and the District of Colum-
bia.
(iii) 
STATE
FAMILY
ASSISTANCE
GRANT.—The term ‘‘State family assist-
ance grant’’ means the State family assist-
ance 
grant 
(as 
defined 
in 
section
403(a)(1)(B) of the Social Security Act, as
added by the amendment made by section
4103(a)(1) of this Act).
(2) CLAIMS, ACTIONS, AND
PROCEEDINGS.—
The amendments made by this subtitle shall not
apply with respect to—
(A) powers, duties, functions, rights,
claims, penalties, or obligations applicable to
aid, assistance, or services provided before the
effective date of this subtitle under the provi-
sions amended; and
406
‘‘(I) the institution shall provide to the Com-
missioner, on a monthly basis and in a manner spec-
ified by the Commissioner, the names, social security
account numbers, dates of birth, confinement com-
mencement dates, and, to the extent available to the
institution, such other identifying information con-
cerning the inmates of the institution as the Com-
missioner may require for the purpose of carrying
out paragraph (1); and
‘‘(II) the Commissioner shall pay to any such
institution, with respect to each inmate of the insti-
tution who is eligible for a benefit under this title for
the month preceding the first month throughout
which such inmate is in such institution and be-
comes ineligible for such benefit as a result of the
application of this subparagraph, $400 if the institu-
tion furnishes the information described in subclause
(I) to the Commissioner within 30 days after the
date such individual becomes an inmate of such in-
stitution, or $200 if the institution furnishes such
information after 30 days after such date but within
90 days after such date.
‘‘(ii)(I) The provisions of section 552a of title 5,
United States Code, shall not apply to any agreement en-