SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Welfare and Teenage Pregnancy 
Reduction Act''.

SEC. 2. BLOCK GRANTS TO STATES FOR FAMILIES WITH DEPENDENT CHILDREN.

    (a) In General.--Part A of title IV of the Social Security Act (42 
U.S.C. 601-617) is amended to read as follows:

 ``Part A--Block Grants to States for Families With Dependent Children

``SEC. 401. ENTITLEMENT.

    ``For grants to which States meeting the requirements of this part 
are entitled, there is authorized to be appropriated to the Secretary 
for each fiscal year an amount equal to 103 percent of the aggregate 
amount of Federal outlays under part A of this title (as in effect 
immediately before the effective date of this part) for fiscal year 
1992.

``SEC. 402. APPLICATION REQUIREMENTS.

    ``To be entitled to a grant under this part for a fiscal year, a 
State must, not later than June 30 of the immediately preceding fiscal 
year, submit to the Secretary an application which describes the State 
program to assist families with dependent children, including the goals 
and objectives of the program.

``SEC. 403. BLOCK GRANT.

    ``The Secretary shall make a grant to each State that meets the 
requirement of section 402 in an amount equal to 103 percent of the 
amount paid to the State under part A of this title (as in effect 
immediately before the effective date of this part) for fiscal year 
1992.

``SEC. 404. USE OF FUNDS.

    ``(a) In General.--Each State to which a grant is made under 
section 403 for a fiscal year shall use the grant to carry out the 
State program to assist families with dependent children.
    ``(b) Prohibitions.--Each State to which a grant is made under 
section 403 for a fiscal year shall not use any Federal or State funds 
provided to carry out the State program to assist families with 
dependent children, to provide assistance during the fiscal year with 
respect to a dependent child if--
            ``(1) the mother or father of the dependent child has not 
        attained 18 years of age; or
            ``(2) the paternity or maternity of the dependent child has 
        not been established.
    ``(c) Special Rule.--During a period not exceeding 1 year from the 
date a family with a dependent child moves to a State to which a grant 
is made under section 403 for a fiscal year from another State, the 
State may--
            ``(1) apply the same rules as apply with respect to any 
        other dependent child in the State, in providing assistance 
        with respect to the dependent child under the State program to 
        assist families with dependent children; or
            ``(2) treat the dependent child in the same manner as such 
        other State would have treated the dependent child if the 
        dependent child had not moved from such other State.

``SEC. 405. DEFINITION OF DEPENDENT CHILD.

    ``As used in this part, the term `dependent child' means an 
individual who--
            ``(1) is needy, as determined by the State in which the 
        child resides;
            ``(2) has been deprived of parental support or care due to 
        the death, continued absence from the home (other than absence 
        occasioned solely due to the performance of active duty in the 
        uniformed services of the United States), or physical or mental 
        incapacity of a parent;
            ``(3) is living with the individual's father, mother, 
        grandfather, grandmother, brother, sister, stepfather, 
        stepmother, stepbrother, stepsister, uncle, aunt, first cousin, 
        nephew, or niece, in a place of residence maintained by 1 or 
        more of such relatives as his, her, or their home; and
            ``(4) is--
                    ``(A) not more than 18 years of age; or
                    ``(B) at the option of the State--
                            ``(i) not more than 19 years of age; and
                            ``(ii) a full-time student in a secondary 
                        school (or in the equivalent level of 
                        vocational or technical training) who may 
                        reasonably be expected to complete the program 
                        of the secondary school (or the training) 
                        before attaining 19 years of age.''.

``SEC. 406. ANNUAL REPORTS.

    ``Not later than 6 months after the end of each fiscal year for 
which a State is made a grant under section 403, the State shall submit 
to the Secretary a report which contains--
            ``(1) a statement of the average number of families with 
        dependent children in the State during the fiscal year;
            ``(2) in absolute and in percentage terms, the extent to 
        which there has been an increase or decrease, during the fiscal 
        year and since the effective date of this part, in--
                    ``(A) teen pregnancies in the State;
                    ``(B) births of children immediately eligible for 
                assistance through the State program of assistance to 
                families with dependent children;
                    ``(C) families to whom such assistance has been 
                terminated due to the gainful employment of 1 or more 
                members of the family; and
                    ``(D) absent parents who contribute financially to 
                the support of families receiving such assistance; and
            ``(3) the extent to which the State has met the goals and 
        objectives set forth in the application for the grant.

``SEC. 407. WITHHOLDING OF BLOCK GRANT.

    ``Notwithstanding any other provision of this part, beginning 4 
years after the effective date of this part, the Secretary may suspend 
or withhold for any period part or all of a grant to a State for a 
fiscal year under this part if, after reviewing the State reports 
submitted pursuant to section 406, the Secretary determines that the 
State program of assistance to families with dependent children during 
the immediately preceding fiscal year has not adequately met the needs 
of the families.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1993.
    (c) References in Other Laws.--Any reference in any law, 
regulation, document, paper, or other record of the United States to 
part A of title IV of the Social Security Act, or to a provision of law 
contained in such part, shall, unless the context otherwise requires, 
be considered to be a reference to such part, or such provision, as in 
effect immediately before October 1, 1993.

SEC. 3. REDUCTION OF FEDERAL AFDC ADMINISTRATIVE COSTS.

    (a) Cost-Reduction Requirement.--The Secretary of Health and Human 
Services shall, using any authorities otherwise available, take such 
actions as may be necessary to ensure that, for each fiscal year 
beginning after September 30, 1994, the total administrative costs of 
the program described in part A of title IV of the Social Security Act 
shall not exceed 50 percent of the total administrative costs of that 
program (as then in effect) for fiscal year 1992.
    (b) Reporting Requirement.--Not later than 1 year after the date of 
the enactment of this Act, the Secretary of Health and Human Services 
shall submit a written report to Congress describing--
            (1) the actions which have been or will be taken in order 
        to achieve timely compliance with subsection (a);
            (2) the procedures and criteria used in determining what 
        actions to take, including the reasons why each such action was 
        chosen;
            (3) the savings anticipated from each action described 
        under paragraph (1); and
            (4) the methodologies and assumptions used in connection 
        with any computations under this section.
Output: Welfare and Teenage Pregnancy Reduction Act - Amends title IV of the Social Security Act (SSA) to replace the program of aid to families with dependent children under SSA title IV part A (AFDC) with a program of block grants to States for families with dependent children whose natural parents have attained age 18. 
Directs the Secretary of Health and Human Services to report to the Congress on actions required under this Act to reduce AFDC administrative costs.