SEC. 502. EVALUATION OF EDUCATION AND TRAINING PRO-
GRAMS.
(a) IN GENERAL.—The Secretary of Health and
Human Services shall conduct research projects to exam-
ine the impact of education and training programs on the
ability of individuals to end participation in the program
of aid to families with dependent children under part A
of title IV of the Social Security Act, expenditures under
such program, wage rates, employment histories, and the
resumption of participation in such program of individuals
who had ended such participation. The Secretary shall col-
lect information with respect to any individual during a
period of not less than 5 years.
(b) SPECIAL RULE.—At least 1 research project con-
ducted under subsection (a) shall involve the random as-
signment of adult recipients of aid to families with depend-
ent children under part A of title IV of the Social Security
Act among—
(1) a group that is not required to participate
in any special activity;
(2) a group that is required to participate in
education or job training programs; and
(3) a group that is required to participate in a
job search program, or in a job search and a work
program.
SEC. 503. JOB SEARCH REQUIRED WHILE AFDC APPLICA-
TION IS PENDING.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by sections 201(a)(1), 302, 303, 304,
305, 307, and 309(a) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(51);
(2) by striking the period at the end of para-
graph (52) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (52) the fol-
lowing:
‘‘(53) unless the State has enacted a law ex-
empting itself from the application of this para-
graph, provide that—
‘‘(A) each applicant for aid under the
State plan must participate in job search activi-
ties while the application is pending; and
‘‘(B) the State agency must reimburse the
applicant for necessary transportation and child
care expenses incurred as a result of such par-
ticipation.’’.
SEC. 504. FRAUD AND ADMINISTRATIVE EFFICIENCY.
(a) DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—The Secretary of Health and
Human 
Services 
may 
conduct 
demonstration
projects in several States to determine whether pro-
viding benefits based on need through the use of
electronic cards and automatic teller machines would
reduce administrative costs and fraud.
(2) REPORT
TO
THE
CONGRESS.—Within 5
years after the date of the enactment of this Act, the
Secretary shall submit to the Congress a report
that—
(A) summarizes the results of the projects;
and
(B) makes recommendations with respect
to whether and how more States might be re-
quired or encouraged to use electronic funds
transfer in providing benefits based on need.
(b) COMMISSION.—
(1) IN GENERAL.—The Secretary of Health and
Human Services (in this subsection referred to as
the ‘‘Secretary’’) shall establish a commission (in
this subsection referred to as the ‘‘Commission’’)
composed of heads of executive departments, expert
private individuals, and State administrators, to de-
termine the cost and feasibility of creating an inter-
state system to compare the social security account
numbers of all recipients of aid to families with de-
pendent children under State plans approved under
part A of title IV of the Social Security Act, so as
to identify any such recipients who are receiving
such aid from 2 or more States.
(2) BASIC PAY.—
(A) RATES OF PAY.—Except as provided
in paragraph (2), members of the Commission
shall each be paid at a rate not to exceed $200
for each day (including travel time) during
which they are engaged in the actual perform-
ance of duties of the Commission.
(B) PROHIBITION OF COMPENSATION OF
FEDERAL
EMPLOYEES.—Each member of the
Commission who is a full-time officer or em-
ployee of the United States may not receive ad-
ditional pay, allowances, or benefits by reason
of their service on the Commission.
(3) TRAVEL EXPENSES.—Each member of the
Commission shall receive travel expenses, including
per diem in lieu of subsistence, in accordance with
sections 5702 and 5703 of title 5, United States
Code.
(4) STAFF OF FEDERAL AGENCIES.—Upon re-
quest of the Secretary, the head of any Federal de-
partment or agency may detail, on a reimbursable
basis, any of the personnel of that department or