Sec. 975. Technical correction to ERISA definition of medical child support
order.
Sec. 976. Enforcement of orders for health care coverage.
Sec. 977. Enforcement of orders against paternal grandparents in cases of
minor parents.
Subtitle I—Enhancing Responsibility and Opportunity for Nonresidential
Parents
Sec. 981. Grants to States for access and visitation programs.
Subtitle J—Effect of Enactment
Sec. 991. Effective dates.
TITLE X—REFORM OF PUBLIC HOUSING
Sec. 1001. Ceiling rents.
Sec. 1002. Definition of adjusted income for public housing.
Sec. 1003. Failure to comply with other welfare and public assistance pro-
grams.
Sec. 1004. Applicability to Indian housing.
Sec. 1005. Implementation.
Sec. 1006. Demonstration project for elimination of take-one-take-all require-
ment.
Sec. 1007. Fraud under means-tested welfare and public assistance programs.
Sec. 1008. Effective date.
TITLE XI—CHILD ABUSE PREVENTION AND TREATMENT
Sec. 1101. Short title.
Subtitle A—General Program
Sec. 1111. Reference.
Sec. 1112. Findings.
Sec. 1113. Office of Child Abuse and Neglect.
Sec. 1114. Advisory Board on Child Abuse and Neglect.
Sec. 1115. Repeal of interagency task force.
Sec. 1116. National Clearinghouse for Information Relating to Child Abuse.
Sec. 1117. Research, evaluation and assistance activities.
Sec. 1118. Grants for demonstration programs.
Sec. 1119. State grants for prevention and treatment programs.
Sec. 1120. Repeal.
Sec. 1121. Miscellaneous requirements.
Sec. 1122. Definitions.
Sec. 1123. Authorization of appropriations.
Sec. 1124. Rule of construction.
Sec. 1125. Technical amendment.
Subtitle B—Community-Based Child Abuse and Neglect Prevention Grants
Sec. 1131. Establishment of program.
Sec. 1132. Repeals.
Subtitle C—Family Violence Prevention and Services
Sec. 1141. Reference.
Sec. 1142. State demonstration grants.
Sec. 1143. Allotments.
Sec. 1144. Authorization of appropriations.
Subtitle D—Adoption Opportunities
Sec. 1151. Reference.
Sec. 1152. Findings and purpose.
Sec. 1153. Information and services.
Sec. 1154. Authorization of appropriations.
Subtitle E—Abandoned Infants Assistance Act of 1986
Sec. 1161. Reauthorization.
Subtitle F—Reauthorization of Various Programs
Sec. 1171. Missing Children’s Assistance Act.
Sec. 1172. Victims of Child Abuse Act of 1990.
TITLE XII—REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS
Sec. 1201. Reductions.
Sec. 1202. Reductions in Federal bureaucracy.
Sec. 1203. Reducing personnel in Washington, DC, area.
TITLE XIII—MISCELLANEOUS PROVISIONS
Sec. 1301. Expenditure of Federal funds in accordance with laws and proce-
dures applicable to expenditure of State funds.
Sec. 1302. Elimination of housing assistance with respect to fugitive felons and
probation and parole violators.
Sec. 1303. Sense of the Senate regarding Enterprise Zones.
Sec. 1304. Sense of the Senate regarding the inability of the non-custodial par-
ent to pay child support.
Sec. 1305. Food stamp eligibility.
Sec. 1306. Sense of the Senate on legislative accountability for unfunded man-
dates in welfare reform legislation.
Sec. 1307. Sense of the Senate regarding competitive bidding for infant for-
mula.
Sec. 1308. Establishing national goals to prevent teenage pregnancies.
Sec. 1309. Sense of the Senate regarding enforcement of statutory rape laws.
Sec. 1310. Sanctioning for testing positive for controlled substances.
Sec. 1311. Abstinence education.
TITLE I—BLOCK GRANTS FOR
TEMPORARY 
ASSISTANCE
FOR NEEDY FAMILIES
SEC. 100. REFERENCES TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this title an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
SEC. 101. BLOCK GRANTS TO STATES.
(a) REPEALS.—
(1) IN GENERAL.—Parts A and F of title IV
(42 U.S.C. 601 et seq. and 682 et seq.) are hereby
repealed.
(2) RULES AND REGULATIONS.—The Secretary
of Health and Human Services shall ensure that any
rules and regulations relating to the provisions of
law repealed in paragraph (1) shall cease to have ef-
fect on and after the date of the repeal of such pro-
visions.
(b) BLOCK GRANTS TO STATES FOR TEMPORARY AS-
SISTANCE
FOR NEEDY FAMILIES WITH MINOR CHIL-
DREN.—Title IV (42 U.S.C. 601 et seq.) is amended by
inserting before part B the following:
‘‘PART A—BLOCK GRANTS TO STATES FOR TEM-
PORARY ASSISTANCE FOR NEEDY FAMILIES
WITH MINOR CHILDREN
‘‘SEC. 400. NO INDIVIDUAL ENTITLEMENT.
‘‘Notwithstanding any other provision of law, no indi-
vidual is entitled to any assistance under this part.
‘‘SEC. 401. PURPOSE.
‘‘The purpose of this part is to increase the flexibility
of States in operating a program designed to—
‘‘(1) provide assistance to needy families with
minor children;
‘‘(2) provide job preparation and opportunities
for such families; and
‘‘(3) prevent and reduce the incidence of out-of-
wedlock pregnancies, with a special emphasis on
teenage pregnancies, and establish annual goals for
preventing and reducing such pregnancies with re-
spect to fiscal years 1996 through 2000.
‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.
‘‘(a) IN GENERAL.—As used in this part, the term
‘eligible State’ means, with respect to a fiscal year, a State
that has submitted to the Secretary a plan that includes
the following:
‘‘(1) OUTLINE
OF
FAMILY
ASSISTANCE
PRO-
GRAM.—A written document that outlines how the
State intends to do the following:
‘‘(A) Conduct a program designed to serve
all political subdivisions in the State to—
‘‘(i) provide assistance to needy fami-
lies with not less than 1 minor child (or
any expectant family); and
‘‘(ii) provide a parent or caretaker in
such families with work experience, assist-
ance in finding employment, and other
work preparation activities and support
services that the State considers appro-
priate to enable such families to leave the
program and become self-sufficient.
‘‘(B) Require a parent or caretaker receiv-
ing assistance under the program to engage in
work (as defined by the State) when the State
determines the parent or caretaker is ready to
engage in work, or after 24 months (whether or
not consecutive) of receiving assistance under
the program, whichever is earlier.
‘‘(C) Satisfy the minimum participation
rates specified in section 404.
‘‘(D) Treat—
‘‘(i) families with minor children mov-
ing into the State from another State; and
‘‘(ii) noncitizens of the United States.
‘‘(E) Safeguard and restrict the use and
disclosure of information about individuals and
families receiving assistance under the program.
‘‘(F) Establish goals and take action to
prevent and reduce the incidence of out-of-wed-
lock pregnancies, with special emphasis on teen-
age pregnancies.
‘‘(G) COMMUNITY
SERVICE.—Not later
than 2 years after the date of the enactment of
this Act, consistent with the exception provided
in section 404(d), require participation by, and
offer to, unless the State opts out of this provi-
sion by notifying the Secretary, a parent or
caretaker receiving assistance under the pro-
gram, after receiving such assistance for 3
months—
‘‘(i) is not exempt from work require-
ments; and
‘‘(ii) is not engaged in work as deter-
mined under section 404(c),
in community service employment, with mini-
mum hours per week and tasks to be deter-
mined by the State.
‘‘(2) FAMILY ASSISTANCE PROGRAM STRATEGIC
PLAN.—
‘‘(A) IN GENERAL.—A single comprehen-
sive State Family Assistance Program Strategic
Plan (hereafter referred to in this section as the
‘State Plan’) describing a 3-year strategic plan
for the statewide program designed to meet the
State goals and reach the State benchmarks for
program activities of the family assistance pro-
gram.
‘‘(B) CONTENTS OF THE STATE PLAN.—
The State plan shall include:
‘‘(i) STATE GOALS.—A description of
the goals of the 3-year plan, including out-
come related goals of and benchmarks for
program activities of the family assistance
program.
‘‘(ii) CURRENT
YEAR
PLAN.—A de-
scription of how the goals and benchmarks
described in clause (i) will be achieved, or
how progress toward the goals and bench-
marks will be achieved, during the fiscal
year in which the plan has been submitted.
‘‘(iii) PERFORMANCE INDICATORS.—A
description of performance indicators to be
used in measuring or assessing the rel-
evant output service levels and outcomes of
relevant program activities.
‘‘(iv) EXTERNAL FACTORS.—Informa-
tion on those key factors external to the
program and beyond the control of the
State that could significantly affect the at-
tainment of the goals and benchmarks.
‘‘(v) EVALUATION MECHANISMS.—In-
formation on a mechanism for conducting
program evaluation, to be used to compare
actual results with the goals and bench-
marks and designate the results on a scale
ranging from highly successful to failing to
reach the goals and benchmarks of the
program.
‘‘(vi) 
MINIMUM
PARTICIPATION
RATES.—Information on how the minimum
participation rates specified in section 404
will be satisfied.
‘‘(vii) 
ESTIMATE
OF
EXPENDI-
TURES.—An estimate of the total amount
of State or local expenditures under the
program for the fiscal year in which the
plan is submitted.
‘‘(3) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE
A
CHILD
SUPPORT
ENFORCEMENT
PRO-
GRAM.—A certification by the chief executive officer
of the State that, during the fiscal year, the State
will operate a child support enforcement program
under the State plan approved under part D.
‘‘(4) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE A CHILD PROTECTION PROGRAM.—A cer-
tification by the chief executive officer of the State
that, during the fiscal year, the State will operate a
child protection program under the State plan ap-
proved under part B.
‘‘(5) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE A FOSTER CARE AND ADOPTION ASSIST-
ANCE PROGRAM.—A certification by the chief execu-
tive officer of the State that, during the fiscal year,
the State will operate a foster care and adoption as-
sistance program under the State plan approved
under part E.
‘‘(6) CERTIFICATION
THAT
THE
STATE
WILL
PARTICIPATE IN THE INCOME AND ELIGIBILITY VER-
IFICATION SYSTEM.—A certification by the chief ex-
ecutive officer of the State that, during the fiscal
year, the State will participate in the income and eli-
gibility verification system required by section 1137.
‘‘(7) CERTIFICATION OF THE ADMINISTRATION
OF THE PROGRAM.—A certification by the chief ex-
ecutive officer of the State specifying which State
agency or agencies are responsible for the adminis-
tration and supervision of the State program for the
fiscal year and ensuring that local governments and
private sector organizations have been consulted re-
garding the plan and design of welfare services in
the State so that services are provided in a manner
appropriate to local populations.
‘‘(8) CERTIFICATION THAT REQUIRED REPORTS
WILL BE SUBMITTED.—A certification by the chief
executive officer of the State that the State shall
provide the Secretary with any reports required
under this part.
‘‘(9) ESTIMATE OF FISCAL YEAR STATE AND
LOCAL
EXPENDITURES.—An estimate of the total
amount of State and local expenditures under the
State program for the fiscal year.
‘‘(b) CERTIFICATION THAT THE STATE WILL PRO-
VIDE ACCESS TO INDIANS.—
‘‘(1) IN GENERAL.—In recognition of the Fed-
eral Government’s trust responsibility to, and gov-
ernment-to-government relationship with, Indian
tribes, the Secretary shall ensure that Indians re-
ceive at least their equitable share of services under
the State program, by requiring a certification by
the chief executive officer of each State described in
paragraph (2) that, during the fiscal year, the State
shall provide Indians in each Indian tribe that does
not have a tribal family assistance plan approved
under section 414 for a fiscal year with equitable ac-
cess to assistance under the State program funded
under this part.
‘‘(2) STATE
DESCRIBED.—For purposes of
paragraph (1), a State described in this paragraph
is a State in which there is an Indian tribe that does
not have a tribal family assistance plan approved
under section 414 for a fiscal year.
‘‘(c) DISTRIBUTION OF STATE PLAN.—
‘‘(1) PUBLIC AVAILABILITY OF SUMMARY.—The
State shall make available to the public a summary
of the State plan submitted under this section.
‘‘(2) COPY TO AUDITOR.—The State shall pro-
vide the approved entity conducting the audit under
section 408 with a copy of the State plan submitted
under this section.
‘‘(d) DEFINITIONS.—For purposes of this part, the
following definitions shall apply:
‘‘(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—
‘‘(A) who—
‘‘(i) has not attained 18 years of age;
or
‘‘(ii) has not attained 19 years of age
and is a full-time student in a secondary
school (or in the equivalent level of voca-
tional or technical training); and
‘‘(B) who resides with such individual’s
custodial parent or other caretaker relative.
‘‘(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-
ing given such terms by section 4 of the Indian
Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
‘‘(B) IN ALASKA.—For purposes of making
tribal family assistance grants under section
414 on behalf of Indians in Alaska, the term
‘Indian tribe’ shall mean only 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.
‘‘(5) STATE.—Except as otherwise specifically
provided, the term ‘State’ includes the several
States, the District of Columbia, the Commonwealth
of Puerto Rico, the United States Virgin Islands,
Guam, and American Samoa.
‘‘SEC. 403. PAYMENTS TO STATES AND INDIAN TRIBES.
‘‘(a) GRANT AMOUNT.—
‘‘(1) IN GENERAL.—Subject to the provisions of
paragraphs (3) and (5), section 407 (relating to pen-
alties), and section 414(g), for each of fiscal years
1996, 1997, 1998, 1999, and 2000, the Secretary
shall pay—
‘‘(A) each eligible State a grant in an
amount equal to the State family assistance
grant for the fiscal year, for each of fiscal years
1998 and 1999, the amount of the State’s job
placement performance bonus determined under
subsection (f)(1) for the fiscal year, and for fis-
cal year 2000, the amount of the State’s share
of the performance bonus and high performance
bonus determined under section 418 for such
fiscal year; and
‘‘(B) each Indian tribe with an approved
tribal family assistance plan a tribal family as-
sistance grant in accordance with section 414.
‘‘(2) STATE FAMILY ASSISTANCE GRANT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(A), a State family assistance grant
for any State for a fiscal year is an amount
equal to the sum of—
‘‘(i) the total amount of the Federal
payments to the State under section 403
(other than Federal payments to the State
described in subparagraphs (A), (B) and
(C) of section 419(a)(2)) for fiscal year
1994 (as such section 403 was in effect
during such fiscal year), plus
‘‘(ii) the total amount of the Federal
payments to the State under subpara-
graphs (A), (B) and (C) of section
419(a)(2),
as such payments were reported by the State on
February 14, 1995, reduced by the amount, if
any, determined under subparagraph (B), and
for fiscal year 2000, reduced by the percent
specified under section 418(a)(3), and increased
by an amount, if any, determined under para-
graph (2)(D).
‘‘(B) AMOUNT ATTRIBUTABLE TO CERTAIN
INDIAN FAMILIES SERVED BY INDIAN TRIBES.—
‘‘(i) IN
GENERAL.—For purposes of
subparagraph (A), the amount determined
under this subparagraph is an amount
equal to the Federal payments to the State
under section 403 for fiscal year 1994 (as
in effect during such fiscal year) attrib-
utable to expenditures by the State under
parts A and F of this title (as so in effect)
for Indian families described in clause (ii).
‘‘(ii) INDIAN FAMILIES DESCRIBED.—
For purposes of clause (i), Indian families
described in this clause are Indian families
not exceed $800,000,000 for the 5-fiscal
year period beginning in fiscal year 1996.
If amounts available under this subpara-
graph are less than the total amount of
emergency assistance payments referred to
in clause (i), the amount payable to a
State shall be equal to an amount which
bears the same relationship to the total
amount available under this clause as the
State emergency assistance payment bears
to the total amount of such payments.
‘‘(iii) BUDGET
SCORING.—Notwith-
standing section 257(b)(2) of the Balanced
Budget and Emergency Deficit Control Act
of 1985, the baseline shall assume that no
grant shall be made under this subpara-
graph after fiscal year 2000.
‘‘(3) SUPPLEMENTAL GRANT AMOUNT FOR POP-
ULATION INCREASES IN CERTAIN STATES.—
‘‘(A) IN
GENERAL.—The amount of the
grant payable under paragraph (1) to a qualify-
ing State for each of fiscal years 1997, 1998,
1999, and 2000 shall be increased by an
amount equal to 2.5 percent of the amount that
the State received under this section in the pre-
ceding fiscal year.
‘‘(B) INCREASE
TO
REMAIN
IN
EFFECT
EVEN IF STATE FAILS TO QUALIFY IN LATER
YEARS.—Subject to section 407, in no event
shall the amount of a grant payable under
paragraph (1) to a State for any fiscal year be
less than the amount the State received under
this section for the preceding fiscal year.
‘‘(C) QUALIFYING STATE.—
‘‘(i) IN
GENERAL.—For purposes of
this paragraph, the term ‘qualifying State’,
with respect to any fiscal year, means a
State that—
‘‘(I) had an average level of State
welfare spending per poor person in
the preceding fiscal year that was less
than the national average level of
State welfare spending per poor per-
son in the preceding fiscal year; and
‘‘(II) had an estimated rate of
State population growth as deter-
mined by the Bureau of the Census
for the most recent fiscal year for
which information is available that
was greater than the average rate of
population growth for all States as de-
termined by the Bureau of the Census
for such fiscal year.
‘‘(ii) 
CERTAIN
STATES
DEEMED
QUALIFYING
STATES.—For purposes of
this paragraph, a State shall be deemed to
be a qualifying State for fiscal years 1997,
1998, 1999, and 2000 if—
‘‘(I) the level of State welfare
spending per poor person in fiscal
year 1996 was less than 35 percent of
the national average level of State
welfare spending per poor person in
fiscal year 1996; or
‘‘(II) a State has extremely high
population growth (which for purposes
of this clause shall be defined as a
greater than ten percent increase in
population from April 1, 1990 to July
1, 1994, as determined by the Bureau
of the Census).
‘‘(iii) STATE MUST QUALIFY IN FISCAL
YEAR 1997.—A State shall not be eligible to
be a qualifying State under clause (i) for
fiscal years after 1997 if the State was not
a qualifying State under clause (i) in fiscal
year 1997.
‘‘(D) DEFINITIONS.—For purposes of this
paragraph:
‘‘(i) LEVEL
OF
STATE
WELFARE
SPENDING PER POOR PERSON.—The term
‘level of State welfare spending per poor
person’ means, with respect to a State for
any fiscal year—
‘‘(I) the amount of the grant re-
ceived by the State under this section
(prior to the application of section
407); divided by
‘‘(II) the number of the individ-
uals in the State who had an income
below the poverty line according to the
1990 decennial census.
‘‘(ii) NATIONAL AVERAGE LEVEL OF
STATE
WELFARE
SPENDING
PER
POOR
PERSON.—The term ‘national average level
of State welfare spending per poor person’
means an amount equal to—
‘‘(I) the amount paid in grants
under this section (prior to the appli-
cation of section 407); divided by
‘‘(II) the number of individuals
in all States with an income below the
poverty line according to the 1990 de-
cennial census.
‘‘(iii) POVERTY LINE.—The term ‘pov-
erty line’ has the same meaning given such
term in section 673(2) of the Community
Services Block Grant Act (42 U.S.C.
9902(2)).
‘‘(iv) 
STATE.—The 
term 
‘State’
means each of the 50 States of the United
States.
‘‘(4) APPROPRIATION.—
‘‘(A) STATES.—There are authorized to be
appropriated 
and 
there 
are 
appropriated
$16,803,769,000 for each fiscal year described
in paragraph (1) for the purpose of paying—
‘‘(i) grants to States under paragraph
(1)(A); and
‘‘(ii) tribal family assistance grants
under paragraph (1)(B).
‘‘(B) 
ADJUSTMENT
FOR
QUALIFYING
STATES.—For the purpose of increasing the
amount of the grant payable to a State under
paragraph (1) in accordance with paragraph
(3), there are authorized to be appropriated and
there are appropriated—
‘‘(i) for fiscal year 1997, $85,860,000;
‘‘(ii) 
for 
fiscal 
year 
1998,
$173,276,000;
‘‘(iii) 
for 
fiscal 
year 
1999,
$263,468,000; and
‘‘(iv) 
for 
fiscal 
year 
2000,
$355,310,000.
‘‘(5) WELFARE PARTNERSHIP.—
‘‘(A) IN
GENERAL.—The amount of the
grant otherwise determined under paragraph
(1) for fiscal year 1997, 1998, 1999, or 2000
shall be reduced by the amount by which State
expenditures under the State program funded
under this part for the preceding fiscal year is
less than 80 percent of historic State expendi-
tures.
‘‘(B) HISTORIC STATE EXPENDITURES.—
For purposes of this paragraph—
‘‘(i) IN GENERAL.—The term ‘historic
State expenditures’ means expenditures by
a State under parts A and F of title IV for
fiscal year 1994, as in effect during such
fiscal year.
‘‘(ii) HOLD HARMLESS.—In no event
shall the historic State expenditures appli-
cable to any fiscal year exceed the amount
which bears the same ratio to the amount
determined under clause (i) as—
‘‘(I) the grant amount otherwise
determined under paragraph (1) for
the preceding fiscal year (without re-
gard to section 407), bears to
‘‘(II) the total amount of Federal
payments to the State under section
403 for fiscal year 1994 (as in effect
during such fiscal year).
‘‘(C) DETERMINATION OF STATE EXPENDI-
TURES FOR PRECEDING FISCAL YEAR.—
‘‘(i) IN
GENERAL.—For purposes of
this paragraph, the expenditures of a State
under the State program funded under this
part for a preceding fiscal year shall be
equal to the sum of the State’s expendi-
tures under the program in the preceding
fiscal year for—
‘‘(I) cash assistance;
‘‘(II) child care assistance;
‘‘(III) education, job training,
and work;
‘‘(IV) administrative costs; and
‘‘(V) any other use of funds al-
lowable under section 403(b)(1).
‘‘(ii) TRANSFERS FROM OTHER STATE
AND
LOCAL
PROGRAMS.—In determining
State expenditures under clause (i), such
expenditures shall not include funding sup-
planted by transfers from other State and
local programs.
‘‘(D) 
EXCLUSION
OF
FEDERAL
AMOUNTS.—For purposes of this paragraph,
State expenditures shall not include any ex-
penditures from amounts made available by the
Federal Government, State funds expended for
the medicaid program under title XIX of this
Act or any successor to such program, and any
State funds which are used to match Federal
funds or are expended as a condition of receiv-
ing Federal funds under Federal programs
other than under title I of this Act.
‘‘(b) USE OF GRANT.—
‘‘(1) IN
GENERAL.—Subject to this part, a
State to which a grant is made under this section
may use the grant—
‘‘(A) in any manner that is reasonably cal-
culated to accomplish the purpose of this part;
or
‘‘(B) in any manner that such State used
amounts received under part A or F of this
title, as such parts were in effect before October
1, 1995;
except that not more than 15 percent of the grant
may be used for administrative purposes.
‘‘(2) AUTHORITY TO TREAT INTERSTATE IMMI-
GRANTS UNDER RULES OF FORMER STATE.—A State
to which a grant is made under this section may
apply to a family some or all of the rules (including
benefit amounts) of the program operated under this
part of another State if the family has moved to the
State from the other State and has resided in the
State for less than 12 months.
‘‘(3) 
AUTHORITY
TO
RESERVE
CERTAIN
AMOUNTS FOR ASSISTANCE.—A State may reserve
amounts paid to the State under this part for any
fiscal year for the purpose of providing, without fis-
cal year limitation, assistance under the State pro-
gram operated under this part. In the case of
amounts paid to the State that are set aside in ac-
cordance with section 419(a), the State may reserve
such amounts for any fiscal year only for the pur-
pose of providing without fiscal year limitation child
care assistance under this part.
‘‘(4) AUTHORITY
TO
OPERATE
EMPLOYMENT
PLACEMENT PROGRAM.—A State to which a grant is
made under this section may use a portion of the
grant to make payments (or provide job placement
vouchers) to State-approved public and private job
placement agencies that provide employment place-
ment services to individuals who receive assistance
under the State program funded under this part.
‘‘(5) TRANSFERABILITY OF GRANT AMOUNTS.—
A State may use up to 30 percent of amounts re-
ceived from a grant under this part for a fiscal year
to carry out State activities under the Child Care
and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.) (relating to child care block
grants).
‘‘(c) TIMING OF PAYMENTS.—The Secretary shall
pay each grant payable to a State under this section in
quarterly installments.
‘‘(d) FEDERAL LOAN FUND FOR STATE WELFARE
PROGRAMS.—
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Treasury of the United States a revolv-
ing loan fund which shall be known as the ‘Federal
Loan Fund for State Welfare Programs’ (hereafter
for purposes of this section referred to as the
‘fund’).
‘‘(2) DEPOSITS INTO FUND.—
‘‘(A) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, $1,700,000,000 are hereby
appropriated for fiscal year 1996 for payment
to the fund.
‘‘(B) LOAN REPAYMENTS.—The Secretary
shall deposit into the fund any principal or in-
terest payment received with respect to a loan
made under this subsection.
‘‘(3) AVAILABILITY.—Amounts in the fund are
authorized to remain available without fiscal year
limitation for the purpose of making loans and re-
ceiving payments of principal and interest on such
loans, in accordance with this subsection.
‘‘(4) USE OF FUND.—
‘‘(A) LOANS TO STATES.—The Secretary
shall make loans from the fund to any loan-eli-
gible State, as defined in subparagraph (D), for
a period to maturity of not more than 3 years.
‘‘(B) RATE OF INTEREST.—The Secretary
shall charge and collect interest on any loan
made under subparagraph (A) at a rate equal
to the current average market yield on out-
standing marketable obligations of the United
States with remaining periods to maturity com-
parable to the period to maturity of the loan.
‘‘(C) MAXIMUM
LOAN.—The cumulative
amount of any loans made to a State under
subparagraph (A) during fiscal years 1996
through 2000 shall not exceed 10 percent of the
State family assistance grant under subsection
(a)(2) for a fiscal year.
‘‘(D) LOAN-ELIGIBLE
STATE.—For pur-
poses of subparagraph (A), a loan-eligible State
is a State which has not had a penalty de-
scribed in section 407(a)(1) imposed against it
at any time prior to the loan being made.
‘‘(5) LIMITATION ON USE OF LOAN.—A State
shall use a loan received under this subsection only
for any purpose for which grant amounts received by
the State under subsection (a) may be used includ-
ing—
‘‘(A) welfare anti-fraud activities; and
‘‘(B) the provision of assistance under the
State program to Indian families that have
moved from the service area of an Indian tribe
with a tribal family assistance plan approved
under section 414.
‘‘(e) SPECIAL RULE FOR INDIAN TRIBES THAT RE-
CEIVED JOBS FUNDS.—
‘‘(1) IN GENERAL.—The Secretary shall pay to
each eligible Indian tribe for each of fiscal years
1996, 1997, 1998, 1999, and 2000 a grant in an
amount equal to the amount received by such Indian
tribe in fiscal year 1995 under section 482(i) (as in
effect during such fiscal year) for the purpose of op-
erating a program to make work activities available
to members of the Indian tribe.
‘‘(2) ELIGIBLE INDIAN TRIBE.—For purposes
of paragraph (1), the term ‘eligible Indian tribe’
means an Indian tribe or Alaska Native organization
that conducted a job opportunities and basic skills
training program in fiscal year 1995 under section
482(i) (as in effect during such fiscal year).
‘‘(3) APPROPRIATION.—There are authorized to
be appropriated and there are hereby appropriated
$7,638,474 for each fiscal year described in para-
graph (1) for the purpose of paying grants in ac-
cordance with such paragraph.
‘‘(f) JOB PLACEMENT PERFORMANCE BONUS.—
‘‘(1) IN
GENERAL.—The job placement per-
formance bonus determined with respect to a State
and a fiscal year is an amount equal to the amount
of the State’s allocation of the job placement per-
formance fund determined in accordance with the
formula developed under paragraph (2).
‘‘(2) ALLOCATION FORMULA; BONUS FUND.—
‘‘(A) ALLOCATION FORMULA.—
‘‘(i) IN
GENERAL.—Not later than
September 30, 1996, the Secretary of
Health and Human Services shall develop
and publish in the Federal Register a for-
mula for allocating amounts in the job
placement performance bonus fund to
States based on the number of families
that received assistance under a State pro-
gram funded under this part in the preced-
ing fiscal year that became ineligible for
assistance under the State program as a
result of unsubsidized employment during
such year.
‘‘(ii) FACTORS TO CONSIDER.—In de-
veloping the allocation formula under
clause (i), the Secretary shall—
‘‘(I) provide a greater financial
bonus for individuals in families de-
scribed in clause (i) who remain em-
ployed for greater periods of time or
are at greater risk of long-term wel-
fare dependency; and
‘‘(II) take into account the unem-
ployment conditions of each State or
geographic area.
‘‘(B) 
JOB
PLACEMENT
PERFORMANCE
BONUS FUND.—
‘‘(i) IN
GENERAL.—The amount in
the job placement performance bonus fund
for a fiscal year shall be an amount equal
to the applicable percentage of the amount
appropriated under section 403(a)(2)(A)
for such fiscal year.
‘‘(ii) APPLICABLE PERCENTAGE.—For
purposes of clause (i)(I), the applicable
percentage shall be determined in accord-
ance with the following table:
The applicable
‘‘For fiscal year:
percentage is:
1998 .........................................................................................
1999 .........................................................................................
4 .
‘‘(g) ADDITIONAL AMOUNT FOR STUDIES AND DEM-
ONSTRATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated and there are appropriated for each fis-
cal year described in subsection (a)(1) an additional
$20,000,000 for the purpose of paying—
‘‘(A) the Federal share of any State-initi-
ated study approved under section 410(g);
‘‘(B) an amount determined by the Sec-
retary to be necessary to operate and evaluate
demonstration projects, relating to part A of
title IV of this Act, that are in effect or ap-
proved under section 1115 as of October 1,
1995, and are continued after such date;
‘‘(C) the cost of conducting the research
described in section 410(a); and
‘‘(D) the cost of developing and evaluating
innovative approaches for reducing welfare de-
pendency and increasing the well-being of minor
children under section 410(b).
‘‘(2) ALLOCATION.—Of the amount appro-
priated under paragraph (1) for a fiscal year—
‘‘(A) 50 percent shall be allocated for the
purposes described in subparagraphs (A) and
(B) of paragraph (1), and
‘‘(B) 50 percent shall be allocated for the
purposes described in subparagraphs (C) and
(D) of paragraph (1).
‘‘(h) SECRETARY.—For purposes of this section, the
term ‘Secretary’ means the Secretary of the Treasury.
‘‘(i) CONTINGENCY FUND.—
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Treasury of the United States a fund
which shall be known as the ‘Contingency Fund for
State Welfare Programs’ (hereafter in this section
referred to as the ‘Fund’).
‘‘(2) DEPOSITS INTO FUND.—Out of any money
in the Treasury of the United States not otherwise
appropriated, there are hereby appropriated for fis-
cal years 1996, 1997, 1998, 1999, 2000, 2001, and
2002 such sums as are necessary for payment to the
Fund 
in 
a 
total 
amount 
not 
to 
exceed
$1,000,000,000.
‘‘(3) COMPUTATION OF GRANT.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary of the Treasury shall
pay to each eligible State in a fiscal year an
amount equal to the Federal medical assistance
percentage for such State for such fiscal year
(as defined in section 1905(b)) of so much of
the expenditures by the State in such year
under the State program funded under this
part as exceed the historic State expenditures
for such State.
‘‘(B) LIMITATION.—The total amount paid
to a State under subparagraph (A) for any fis-
cal year shall not exceed an amount equal to 20
percent of the annual amount determined for
such State under the State program funded
under this part (without regard to this sub-
section) for such fiscal year.
‘‘(C) METHOD
OF
COMPUTATION, PAY-
MENT, AND RECONCILIATION.—
‘‘(i) METHOD
OF
COMPUTATION.—
The method of computing and paying such
amounts shall be as follows:
‘‘(I) The Secretary of Health and
Human Services shall estimate the
amount to be paid to the State for
each quarter under the provisions of
subparagraph (A), such estimate to be
based on a report filed by the State
containing its estimate of the total
sum to be expended in such quarter
and such other information as the
Secretary may find necessary.
‘‘(II) The Secretary of Health
and Human Services shall then certify
to the Secretary of the Treasury the
amount so estimated by the Secretary
of Health and Human Services.
‘‘(ii) METHOD
OF
PAYMENT.—The
Secretary of the Treasury shall thereupon,
through the Fiscal Service of the Depart-
ment of the Treasury and prior to audit or
settlement by the General Accounting Of-
fice, pay to the State, at the time or times
fixed by the Secretary of Health and
Human Services, the amount so certified.
‘‘(iii) 
METHOD
OF
RECONCILI-
ATION.—If at the end of each fiscal year,
the Secretary of Health and Human Serv-
ices finds that a State which received
amounts from the Fund in such fiscal year
did not meet the maintenance of effort re-
quirement under paragraph (5)(B) for
such fiscal year, the Secretary shall reduce
the State family assistance grant for such
State for the succeeding fiscal year by such
amounts.
‘‘(4) USE OF GRANT.—
‘‘(A) IN GENERAL.—An eligible State may
use the grant—
‘‘(i) in any manner that is reasonably
calculated to accomplish the purpose of
this part; or
‘‘(ii) in any manner that such State
used amounts received under part A or F
of this title, as such parts were in effect
before October 1, 1995.
‘‘(B) REFUND OF UNUSED PORTION.—Any
amount of a grant under this subsection not
used during the fiscal year shall be returned to
the Fund.
‘‘(5) ELIGIBLE STATE.—
‘‘(A) IN GENERAL.—For purposes of this
subsection, a State is an eligible State with re-
spect to a fiscal year, if—
‘‘(i)(I) the average rate of total unem-
ployment in such State (seasonally ad-
justed) for the period consisting of the
most recent 3 months for which data for
all States are published equals or exceeds
6.5 percent, and
‘‘(II) the average rate of total unem-
ployment in such State (seasonally ad-
justed) for the 3-month period equals or
exceeds 110 percent of such average rate
for either (or both) of the corresponding 3-
month periods ending in the 2 preceding
calendar years; and
‘‘(ii) has met the maintenance of ef-
fort requirement under subparagraph (B)
for the State program funded under this
part for the fiscal year.
‘‘(B) MAINTENANCE
OF
EFFORT.—The
maintenance of effort requirement for any State
under this subparagraph for any fiscal year is
the expenditure of an amount at least equal to
100 percent of the level of historic State ex-
penditures for such State (as determined under
subsection (a)(5)).
‘‘(6) ANNUAL REPORTS.—The Secretary of the
Treasury shall annually report to the Congress on
the status of the Fund.
‘‘SEC. 404. MANDATORY WORK REQUIREMENTS.
‘‘(a) PARTICIPATION
RATE
REQUIREMENTS.—A
State to which a grant is made under section 403 for a
fiscal year shall achieve the minimum participation rate
specified in the following tables for the fiscal year with
respect to—
‘‘(1) all families receiving assistance under the
State program funded under this part:
The minimum
participation
‘‘If the fiscal year is:
rate for all families is:
1996 ...............................................................
1997 ...............................................................
1998 ...............................................................
1999 ...............................................................
2000 or thereafter .........................................
50; and
‘‘(2) with respect to 2-parent families receiving
such assistance:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ...............................................................
1997 or 1998 .................................................
1999 or thereafter .........................................
90.
‘‘(b) CALCULATION OF PARTICIPATION RATES.—
‘‘(1) FOR ALL FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For pur-
poses of subsection (a)(1), the participation
rate for all families of a State for a fiscal year
is the average of the participation rates for all
families of the State for each month in the fis-
cal year.
‘‘(B) MONTHLY PARTICIPATION RATES.—
The participation rate of a State for all families
of the State for a month, expressed as a per-
centage, is—
‘‘(i) the sum of—
‘‘(I) the number of all families
receiving assistance under the State
program funded under this part that
include an adult who is engaged in
work for the month;
‘‘(II) the number of all families
receiving assistance under the State
program funded under this part that
are subject in such month to a penalty
described in paragraph (1)(A) or
(2)(A) of subsection (d) but have not
been subject to such penalty for more
than 3 months within the preceding
12-month period (whether or not con-
secutive); and
‘‘(III) the number of all families
that received assistance under the
State program under this part during
the previous 6-month period that have
become ineligible to receive assistance
during such period because of employ-
ment and which include an adult who
is employed for the month; divided by
‘‘(ii) the total number of all families
receiving assistance under the State pro-
gram funded under this part during the
month that include an adult receiving as-
sistance.
‘‘(2) 2-PARENT FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For pur-
poses of subsection (a)(2), the participation
rate for 2-parent families of a State for a fiscal
year is the average of the participation rates for
2-parent families of the State for each month in
the fiscal year.
‘‘(B) MONTHLY PARTICIPATION RATES.—
The participation rate of a State for 2-parent
families of the State for a month, expressed as
a percentage, is—
‘‘(i) the total number of 2-parent fam-
ilies described in paragraph (1)(B)(i); di-
vided by
‘‘(ii) the total number of 2-parent
families receiving assistance under the
State program funded under this part dur-
ing the month that include an adult.
‘‘(3) PRO RATA REDUCTION OF PARTICIPATION
RATE DUE TO CASELOAD REDUCTIONS NOT RE-
QUIRED BY FEDERAL LAW.—
‘‘(A) IN
GENERAL.—The Secretary shall
prescribe regulations for reducing the minimum
participation rate otherwise required by this
section for a fiscal year by the number of per-
centage points equal to the number of percent-
age points (if any) by which—
‘‘(i) the number of families receiving
assistance during the fiscal year under the
State program funded under this part is
less than
‘‘(ii) the number of families that re-
ceived aid under the State plan approved
under part A of this title (as in effect be-
fore October 1, 1995) during the fiscal
year immediately preceding such effective
date.
The minimum participation rate shall not be re-
duced to the extent that the Secretary deter-
mines that the reduction in the number of fami-
lies receiving such assistance is required by
Federal law.
‘‘(B) ELIGIBILITY CHANGES NOT COUNT-
ED.—The regulations described in subpara-
graph (A) shall not take into account families
that are diverted from a State program funded
under this part as a result of differences in eli-
gibility criteria under a State program funded
under this part and eligibility criteria under
such State’s plan under the aid to families with
dependent children program, as such plan was
in effect on the day before the date of the en-
actment of the Work Opportunity Act of 1995.
‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS
RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY
ASSISTANCE
PLAN.—For purposes of paragraphs
(1)(B) and (2)(B), a State may, at its option, in-
clude families receiving assistance under a tribal
family assistance plan approved under section 414.
For purposes of the previous sentence, an individual
who receives assistance under a tribal family assist-
ance plan approved under section 414 shall be treat-
ed as being engaged in work if the individual is par-
ticipating in work under standards that are com-
parable to State standards for being engaged in
work.
‘‘(5) STATE
OPTION
FOR
PARTICIPATION
RE-
QUIREMENT EXEMPTIONS.—For any fiscal year, a
State may, at its option, not require an individual
who is the parent or caretaker relative of a minor
child who is less than 12 months of age to engage
in work and may exclude such an individual from
the determination of the minimum participation rate
specified for such fiscal year in subsection (a).
‘‘(c) ENGAGED IN WORK.—
‘‘(1) ALL
FAMILIES.—For purposes of sub-
section (b)(1)(B)(i)(I), an adult is engaged in work
for a month in a fiscal year if the adult is participat-
ing in work for at least the minimum average num-
ber of hours per week specified in the following table
during the month, not fewer than 20 hours per week
of which are attributable to a work activity:
The minimum
‘‘If the month is
average number of
in fiscal year:
hours per week is:
1996 .....................................................
1997 .....................................................
1998 .....................................................
1999 .....................................................
2000 .....................................................
2001 .....................................................
2002 .....................................................
2003 or thereafter ................................
35.
‘‘(2) 2-PARENT
FAMILIES.—For purposes of
subsection (b)(2)(A), an adult is engaged in work for
a month in a fiscal year if the adult is participating
in work for at least 35 hours per week during the
month, not fewer than 30 hours per week of which
are attributable to work activities described in para-
graph (3).
‘‘(3) DEFINITION OF WORK ACTIVITIES.—For
purposes of this subsection, the term ‘work activi-
ties’ means—
‘‘(A) unsubsidized employment;
‘‘(B) subsidized employment;
‘‘(C) on-the-job training;
‘‘(D) community service programs;
‘‘(E) job search (only for the first 4 weeks
in which an individual is required to participate
in work activities under this section); and
‘‘(F) vocational educational training (not
to exceed 12 months with respect to any indi-
vidual).
‘‘(4) LIMITATION ON VOCATIONAL EDUCATION
ACTIVITIES COUNTED AS WORK.—For purposes of
determining monthly participation rates under para-
graphs (1)(B)(i)(I) and (2)(B)(i) of subsection (b),
not more than 25 percent of adults in all families
and in 2-parent families determined to be engaged
in work in the State for a month may meet the work
activity requirement through participation in voca-
tional educational training.
‘‘(d) PENALTIES AGAINST INDIVIDUALS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if an adult in a family receiving assist-
ance under the State program funded under this
part refuses to engage in work required under sub-
section (c)(1) or (c)(2), a State to which a grant is
made under section 403 shall—
‘‘(A) reduce the amount of assistance oth-
erwise payable to the family pro rata (or more,
at the option of the State) with respect to any
period during a month in which the adult so re-
fuses; or
‘‘(B) terminate such assistance,
subject to such good cause and other exceptions as
the State may establish.
‘‘(2) EXCEPTION.—Notwithstanding paragraph
(1), a State may not reduce or terminate assistance
under the State program based on a refusal of an
adult to work if such adult is a single custodial par-
ent caring for a child age 5 or under and has a dem-
onstrated inability (as determined by the State) to
obtain needed child care, for one or more of the fol-
lowing reasons:
‘‘(A) Unavailability of appropriate child
care within a reasonable distance of the individ-
ual’s home or work site.
‘‘(B) Unavailability or unsuitability of in-
formal child care by a relative or under other
arrangements.
‘‘(C) Unavailability of appropriate and af-
fordable formal child care arrangements.
‘‘(e) NONDISPLACEMENT IN WORK ACTIVITIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
an adult in a family receiving assistance under this
part may fill a vacant employment position in order
to engage in a work activity described in subsection
(c)(3).
‘‘(2) NO FILLING OF CERTAIN VACANCIES.—No
adult in a work activity described in subsection
(c)(3) shall be employed or assigned—
‘‘(A) when any other individual is on layoff
from the same or any substantially equivalent
job; or
‘‘(B) when the employer has terminated
the employment of any regular employee or oth-
erwise caused an involuntary reduction of its
workforce in order to fill the vacancy so created
with an adult described in paragraph (1).
‘‘(3) NO PREEMPTION.—Nothing in this sub-
section shall preempt or supersede any provision of
State or local law that provides greater protection
for employees from displacement.
‘‘(f) SENSE OF THE CONGRESS.—It is the sense of
the Congress that in complying with this section, each
State that operates a program funded under this part is
encouraged to assign the highest priority to requiring
adults in 2-parent families and adults in single-parent
families that include older preschool or school-age children
to be engaged in work activities.
‘‘(g) DELIVERY THROUGH STATEWIDE SYSTEM.—
‘‘(1) IN GENERAL.—Each work program carried
out by the State to provide work activities in order
to comply with this section shall be delivered
through the statewide workforce development system
established in section 711 of the Work Opportunity
Act of 1995 unless a required work activity is not
available locally through the statewide workforce de-
velopment system.
‘‘(2) EFFECTIVE
DATE.—The provisions of
paragraph (1) shall take effect—
‘‘(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
period 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 RE-
CEIVING 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
responsibility 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
responsibility 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 schedule to be determined by the State.
‘‘(4) ASSESSMENT.—The State agency shall
provide, through a case manager, an initial and
thorough assessment of the skills, prior work experi-
ence, and employability of each parent for use in de-
veloping and negotiating a personal responsibility
contract.
‘‘(5) DISPUTE RESOLUTION.—The State agency
described in section 402(a)(6) shall establish a dis-
pute resolution procedure for disputes related to par-
ticipation in the personal responsibility contract that
provides 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 consecu-
tive) after September 30, 1995.
‘‘(2) MINOR CHILD EXCEPTION.—If an individ-
ual received assistance under the State program op-
erated under this part as a minor child in a needy
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 ex-
empt a family from the application of para-
graph (1) by reason of hardship.
‘‘(B) LIMITATION.—The number of fami-
lies 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 average 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
PERSON FOUND TO HAVE FRAUDULENTLY MISREPRE-
SENTED RESIDENCE IN ORDER TO OBTAIN ASSISTANCE
IN 2 OR MORE STATES.—An individual shall not be con-
sidered an eligible individual for the purposes of this part
during the 10-year period that begins on the date the indi-
vidual is convicted in Federal or State court of having
made a fraudulent statement or representation with re-
spect to the place 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 supplemental 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 cus-
tody 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 misdemeanor 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
ENFORCEMENT
AGENCIES.—Notwithstanding 
any
other provision of law, a State shall furnish any
Federal, State, or local law enforcement officer,
upon the request of the officer, with the current ad-
dress, Social Security number, and photograph (if
applicable) of any recipient of assistance under this
part, if the officer furnishes the agency with the
name of the recipient 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 offi-
cial duties; and
‘‘(B) the location or apprehension of the
recipient 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
individual 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 individual 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
child who has been, or is expected by the caretaker
relative in the family to be, absent from the home
for a period of 45 consecutive days or, at the option
of the State, such period of not less than 30 and not
more than 90 consecutive days as the State may
provide for in the State plan;
‘‘(2) at the option of the State, may establish
such good cause exceptions to paragraph (1) as the
State considers appropriate if such exceptions are
provided for in the State plan; and
‘‘(3) shall provide that a caretaker relative shall
not be considered an eligible individual for purposes
of this part if the caretaker relative fails to notify
the State agency of an absence of a minor child
from the home for the period specified in or provided
for under paragraph (1), by the end of the 5-day pe-
riod that begins on the date that it becomes clear to
the caretaker relative that the minor child will be
absent for the period so specified or provided for in
paragraph (1).
‘‘SEC. 406. PROMOTING RESPONSIBLE PARENTING.
‘‘(a) FINDINGS.—The Congress makes the following
findings:
‘‘(1) Marriage is the foundation of a successful
society.
‘‘(2) Marriage is an essential institution of a
successful society which promotes the interests of
children.
‘‘(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 en-
forced through the public child support enforcement
system, only 18 percent of the caseload has a collec-
tion.
‘‘(5) The number of individuals receiving aid to
families with dependent children (hereafter in this
subsection referred to as ‘AFDC’) has more than
tripled since 1965. More than two-thirds of these re-
cipients are children. Eighty-nine percent of children
receiving 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.
‘‘(ii) While the number of children receiv-
ing 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 chil-
dren receiving public assistance is closely relat-
ed to the increase in births to unmarried
women. Between 1970 and 1991, the percent-
age of live births to unmarried women increased
nearly threefold, from 10.7 percent to 29.5 per-
cent.
‘‘(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 teen-
agers in 1976 to 66.7 pregnancies in 1991. The
overall rate of nonmarital pregnancy rose 14
percent from 90.8 pregnancies per 1,000 un-
married women in 1980 to 103 in both 1991
and 1992. In contrast, the overall pregnancy
rate for married couples decreased 7.3 percent
between 1980 and 1991, from 126.9 preg-
nancies 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
percent to 29.5 percent and if the current trend
continues, 50 percent of all births by the year
2015 will be out-of-wedlock.
‘‘(7) The negative consequences of an out-of-
wedlock birth on the mother, the child, the family,
and society 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 ef-
fects 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.
have income below the national poverty level. In
contrast, 46 percent of female-headed house-
holds with children under 18 years of age are
below the national poverty level.
‘‘(B) Among single-parent families, nearly
1⁄2 of the mothers who never married received
AFDC while only 1⁄5 of divorced mothers re-
ceived 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 moth-
er, the less likely she is to finish high school.
‘‘(F) Young women who have children be-
fore finishing high school are more likely to re-
ceive 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 pro-
gram 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.
‘‘(I) Children of teenage single parents
have lower cognitive scores, lower educational
aspirations, and a greater likelihood of becom-
ing teenage 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
suspended from school.
‘‘(L) Neighborhoods with larger percent-
ages of youth aged 12 through 20 and areas
with higher percentages of single-parent house-
holds 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 incarcerated
youth, 73.9 percent of the 62,800,000 children
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 Con-
gress that prevention of out-of-wedlock pregnancy
and reduction in out-of-wedlock birth are very im-
portant Government interests and the policy con-
tained in provisions of this title is intended to ad-
dress 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 pro-
vide assistance for a child born out-of-wedlock to an indi-
vidual 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
CHILDREN
BORN
TO
FAMILIES
RECEIVING
ASSIST-
ANCE.—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 pro-
gram 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
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
LOCATING, 
ADULT-SUPERVISED
LIVING
AR-
RANGEMENT.—In the case of an individual who
is described in subparagraph (B), the State
agency shall provide, or assist such individual in
locating, a second chance home, maternity
home, or other appropriate adult-supervised
supportive living arrangement, taking into con-
sideration the needs and concerns of the such
individual, unless the State agency determines
that the individual’s current living arrangement
is appropriate, 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
arrangement 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-
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
exploitation in the residence of such
individual’s 
own 
parent 
or 
legal
guardian; or
‘‘(II) substantial evidence exists
of an act or failure to act that pre-
sents an imminent or serious harm if
such individual and such individual’s
minor child lived in the same resi-
dence with such individual’s own par-
ent or legal guardian; or