Text: H.R.4 — 104th Congress (1995-1996)All Information (Except Text)

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Enrolled Bill

 
[Congressional Bills 104th Congress]
[From the U.S. Government Printing Office]
[H.R. 4 Enrolled Bill (ENR)]

        H.R. 4

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
  the fourth day of January, one thousand nine hundred and ninety-five


                                 An Act


 
 To restore the American family, enhance support and work opportunities 
 for families with children, reduce out-of-wedlock pregnancies, reduce 
            welfare dependence, and control welfare spending.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Personal Responsibility and Work 
Opportunity Act of 1995''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.

    TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private 
organizations.
Sec. 105. Census data on grandparents as primary caregivers for their 
grandchildren.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and 
related provisions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant social 
security card required.
Sec. 112. Disclosure of receipt of Federal funds.
Sec. 113. Modifications to the job opportunities for certain low-income 
individuals program.
Sec. 114. Medicaid eligibility under title IV of the Social Security 
Act.
Sec. 115. Secretarial submission of legislative proposal for technical 
and conforming amendments.
Sec. 116. Effective date; transition rule.

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

Sec. 200. Reference to Social Security Act.

                  Subtitle A--Eligibility Restrictions

Sec. 201. Denial of SSI benefits for 10 years to individuals found to 
have fraudulently misrepresented residence in order to obtain benefits 
simultaneously in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation and 
parole violators.

               Subtitle B--Benefits for Disabled Children

Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability 
reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized 
individuals whose medical costs are covered by private insurance.
Sec. 215. Regulations.

               Subtitle C--State Supplementation Programs

Sec. 221. Repeal of maintenance of effort requirements applicable to 
optional State programs for supplementation of SSI benefits.

   Subtitle D--Studies Regarding Supplemental Security Income Program

Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study of disability determination process.
Sec. 233. Study by General Accounting Office.

       Subtitle E--National Commission on the Future of Disability

Sec. 241. Establishment.
Sec. 242. Duties of the Commission.
Sec. 243. Membership.
Sec. 244. Staff and support services.
Sec. 245. Powers of Commission.
Sec. 246. Reports.
Sec. 247. Termination.
Sec. 248. Authorization of appropriations.

                 Subtitle F--Retirement Age Eligibility

Sec. 251. Eligibility for supplemental security income benefits based on 
social security retirement age.

                        TITLE III--CHILD SUPPORT

Sec. 300. Reference to Social Security Act.

     Subtitle A--Eligibility for Services; Distribution of Payments

Sec. 301. State obligation to provide child support enforcement 
services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification and hearings.

                  Subtitle B--Locate and Case Tracking

Sec. 311. State case registry.
Sec. 312. Collection and disbursement of support payments.
Sec. 313. State directory of new hires.
Sec. 314. Amendments concerning income withholding.
Sec. 315. Locator information from interstate networks.
Sec. 316. Expansion of the Federal parent locator service.
Sec. 317. Collection and use of social security numbers for use in child 
support enforcement.

          Subtitle C--Streamlining and Uniformity of Procedures

Sec. 321. Adoption of uniform State laws.
Sec. 322. Improvements to full faith and credit for child support 
orders.
Sec. 323. Administrative enforcement in interstate cases.
Sec. 324. Use of forms in interstate enforcement.
Sec. 325. State laws providing expedited procedures.

                   Subtitle D--Paternity Establishment

Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of temporary 
family assistance.

             Subtitle E--Program Administration and Funding

Sec. 341. Performance-based incentives and penalties.
Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.

      Subtitle F--Establishment and Modification of Support Orders

Sec. 351. Simplified process for review and adjustment of child support 
orders.
Sec. 352. Furnishing consumer reports for certain purposes relating to 
child support.
Sec. 353. Nonliability for financial institutions providing financial 
records to State child support enforcement agencies in child support 
cases.

                Subtitle G--Enforcement of Support Orders

Sec. 361. Internal Revenue Service collection of arrearages.
Sec. 362. Authority to collect support from Federal employees.
Sec. 363. Enforcement of child support obligations of members of the 
Armed Forces.
Sec. 364. Voiding of fraudulent transfers.
Sec. 365. Work requirement for persons owing past-due child support.
Sec. 366. Definition of support order.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Liens.
Sec. 369. State law authorizing suspension of licenses.
Sec. 370. Denial of passports for nonpayment of child support.
Sec. 371. International child support enforcement.
Sec. 372. Financial institution data matches.
Sec. 373. Enforcement of orders against paternal or maternal 
grandparents in cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for the 
support of a child.

                       Subtitle H--Medical Support

Sec. 376. Correction to ERISA definition of medical child support order.
Sec. 377. Enforcement of orders for health care coverage.

Subtitle I--Enhancing Responsibility and Opportunity for Non-Residential 
                                 Parents

Sec. 381. Grants to States for access and visitation programs.

                     Subtitle J--Effect of Enactment

Sec. 391. Effective dates.

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

Sec. 400. Statements of national policy concerning welfare and 
immigration.

              Subtitle A--Eligibility for Federal Benefits

Sec. 401. Aliens who are not qualified aliens ineligible for Federal 
public benefits.
Sec. 402. Limited eligibility of certain qualified aliens for certain 
Federal programs.
Sec. 403. Five-year limited eligibility of qualified aliens for Federal 
means-tested public benefit.
Sec. 404. Notification and information reporting.

  Subtitle B--Eligibility for State and Local Public Benefits Programs

Sec. 411. Aliens who are not qualified aliens or nonimmigrants 
ineligible for State and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for 
State public benefits.

       Subtitle C--Attribution of Income and Affidavits of Support

Sec. 421. Federal attribution of sponsor's income and resources to 
alien.
Sec. 422. Authority for States to provide for attribution of sponsor's 
income and resources to the alien with respect to State programs.
Sec. 423. Requirements for sponsor's affidavit of support.
Sec. 424. Cosignature of alien student loans.

                     Subtitle D--General Provisions

Sec. 431. Definitions.
Sec. 432. Reapplication for SSI benefits.
Sec. 433. Verification of eligibility for Federal public benefits.
Sec. 434. Statutory construction.
Sec. 435. Communication between State and local government agencies, and 
the Immigration and Naturalization Service.
Sec. 436. Qualifying quarters.

                    Subtitle E--Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.

           TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

Sec. 501. Reductions.
Sec. 502. Reductions in Federal bureaucracy.
Sec. 503. Reducing personnel in Washington, D.C. area.

                   TITLE VI--REFORM OF PUBLIC HOUSING

Sec. 601. Failure to comply with other welfare and public assistance 
programs.
Sec. 602. Fraud under means-tested welfare and public assistance 
programs.
Sec. 603. Effective date.

  TITLE VII--CHILD PROTECTION BLOCK GRANT PROGRAM AND FOSTER CARE AND 
                           ADOPTION ASSISTANCE

 Subtitle A--Block Grants to States for the Protection of Children and 
        Matching Payments for Foster Care and Adoption Assistance

Sec. 701. Establishment of program.
Sec. 702. Conforming amendments.
Sec. 703. Transfer and amendment to foster care protection requirement.
Sec. 704. Effective date; transition rule.
Sec. 705. Sense of the Congress regarding timely adoption of children.

            Subtitle B--Child and Family Services Block Grant

Sec. 751. Child and family services block grant.
Sec. 752. Reauthorizations.
Sec. 753. Repeals.

                         TITLE VIII--CHILD CARE

Sec. 801. Short title and references.
Sec. 802. Goals.
Sec. 803. Authorization of appropriations.
Sec. 804. Lead agency.
Sec. 805. Application and plan.
Sec. 806. Limitation on State allotments.
Sec. 807. Activities to improve the quality of child care.
Sec. 808. Repeal of early childhood development and before- and after-
school care requirement.
Sec. 809. Administration and enforcement.
Sec. 810. Payments.
Sec. 811. Annual report and audits.
Sec. 812. Report by the Secretary.
Sec. 813. Allotments.
Sec. 814. Definitions.
Sec. 815. Repeals.

                   TITLE IX--CHILD NUTRITION PROGRAMS

                  Subtitle A--National School Lunch Act

Sec. 901. State disbursement to schools.
Sec. 902. Nutritional and other program requirements.
Sec. 903. Free and reduced price policy statement.
Sec. 904. Special assistance.
Sec. 905. Miscellaneous provisions and definitions.
Sec. 906. Summer food service program for children.
Sec. 907. Commodity distribution.
Sec. 908. Child care food program.
Sec. 909. Pilot projects.
Sec. 910. Reduction of paperwork.
Sec. 911. Information on income eligibility.
Sec. 912. Nutrition guidance for child nutrition programs.
Sec. 913. Information clearinghouse.
Sec. 914. School nutrition optional block grant demonstration program.

                 Subtitle B--Child Nutrition Act of 1966

Sec. 921. Special milk program.
Sec. 922. Free and reduced price policy statement.
Sec. 923. School breakfast program authorization.
Sec. 924. State administrative expenses.
Sec. 925. Regulations.
Sec. 926. Prohibitions.
Sec. 927. Miscellaneous provisions and definitions.
Sec. 928. Accounts and records.
Sec. 929. Special supplemental nutrition program for women, infants, and 
children.
Sec. 930. Cash grants for nutrition education.
Sec. 931. Nutrition education and training.
Sec. 932. Breastfeeding promotion program.

             TITLE X--FOOD STAMPS AND COMMODITY DISTRIBUTION

Sec. 1001. Short title.

                     Subtitle A--Food Stamp Program

Sec. 1011. Definition of certification period.
Sec. 1012. Definition of coupon.
Sec. 1013. Treatment of children living at home.
Sec. 1014. Optional additional criteria for separate household 
determinations.
Sec. 1015. Adjustment of thrifty food plan.
Sec. 1016. Definition of homeless individual.
Sec. 1017. State option for eligibility standards.
Sec. 1018. Earnings of students.
Sec. 1019. Energy assistance.
Sec. 1020. Deductions from income.
Sec. 1021. Vehicle allowance.
Sec. 1022. Vendor payments for transitional housing counted as income.
Sec. 1023. Doubled penalties for violating food stamp program 
requirements.
Sec. 1024. Disqualification of convicted individuals.
Sec. 1025. Disqualification.
Sec. 1026. Caretaker exemption.
Sec. 1027. Employment and training.
Sec. 1028. Comparable treatment for disqualification.
Sec. 1029. Disqualification for receipt of multiple food stamp benefits.
Sec. 1030. Disqualification of fleeing felons.
Sec. 1031. Cooperation with child support agencies.
Sec. 1032. Disqualification relating to child support arrears.
Sec. 1033. Work requirement.
Sec. 1034. Encourage electronic benefit transfer systems.
Sec. 1035. Value of minimum allotment.
Sec. 1036. Benefits on recertification.
Sec. 1037. Optional combined allotment for expedited households.
Sec. 1038. Failure to comply with other means-tested public assistance 
programs.
Sec. 1039. Allotments for households residing in centers.
Sec. 1040. Condition precedent for approval of retail food stores and 
wholesale food concerns.
Sec. 1041. Authority to establish authorization periods.
Sec. 1042. Information for verifying eligibility for authorization.
Sec. 1043. Waiting period for stores that fail to meet authorization 
criteria.
Sec. 1044. Operation of food stamp offices.
Sec. 1045. State employee and training standards.
Sec. 1046. Exchange of law enforcement information.
Sec. 1047. Expedited coupon service.
Sec. 1048. Withdrawing fair hearing requests.
Sec. 1049. Income, eligibility, and immigration status verification 
systems.
Sec. 1050. Disqualification of retailers who intentionally submit 
falsified applications.
Sec. 1051. Disqualification of retailers who are disqualified under the 
WIC program.
Sec. 1052. Collection of overissuances.
Sec. 1053. Authority to suspend stores violating program requirements 
pending administrative and judicial review.
Sec. 1054. Expanded criminal forfeiture for violations.
Sec. 1055. Limitation of Federal match.
Sec. 1056. Standards for administration.
Sec. 1057. Work supplementation or support program.
Sec. 1058. Waiver authority.
Sec. 1059. Authorization of pilot projects.
Sec. 1060. Response to waivers.
Sec. 1061. Employment initiatives program.
Sec. 1062. Adjustable food stamp cap.
Sec. 1063. Reauthorization of Puerto Rico nutrition assistance program.
Sec. 1064. Simplified food stamp program.
Sec. 1065. State food assistance block grant.
Sec. 1066. American Samoa.
Sec. 1067. Assistance for community food projects.

               Subtitle B--Commodity Distribution Programs

Sec. 1071. Commodity distribution program; commodity supplemental food 
program.
Sec. 1072. Emergency food assistance program.
Sec. 1073. Food bank demonstration project.
Sec. 1074. Hunger prevention programs.
Sec. 1075. Report on entitlement commodity processing.
Sec. 1076. National commodity processing.

                         TITLE XI--MISCELLANEOUS

                     Subtitle A--General Provisions

Sec. 1101. Expenditure of Federal funds in accordance with laws and 
procedures applicable to expenditure of State funds.
Sec. 1102. Elimination of housing assistance with respect to fugitive 
felons and probation and parole violators.
Sec. 1103. Sense of the Senate regarding enterprise zones.
Sec. 1104. Sense of the Senate regarding the inability of the non-
custodial parent to pay child support.
Sec. 1105. Food stamp eligibility.
Sec. 1106. Establishing national goals to prevent teenage pregnancies.
Sec. 1107. Sense of the Senate regarding enforcement of statutory rape 
laws.
Sec. 1108. Sanctioning for testing positive for controlled substances.
Sec. 1109. Abstinence education.
Sec. 1110. Provisions to encourage electronic benefit transfer systems.
Sec. 1111. Reduction in block grants to States for social services.

   TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

SEC. 101. 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 well-being of 
    children.
        (4) In 1992, only 54 percent of single-parent families with 
    children had a child support order established and, of that 54 
    percent, only about one-half received the full amount due. Of the 
    cases enforced through the public child support enforcement system, 
    only 18 percent of the caseload has a collection.
        (5) The number of individuals receiving aid to families with 
    dependent children (in this section referred to as ``AFDC'') has 
    more than tripled since 1965. More than two-thirds of these 
    recipients 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 receiving AFDC benefits 
        increased nearly threefold between 1965 and 1992, the total 
        number of children in the United States aged 0 to 18 has 
        declined by 5.5 percent.
            (B) The Department of Health and Human Services has 
        estimated that 12,000,000 children will receive AFDC benefits 
        within 10 years.
            (C) The increase in the number of children receiving public 
        assistance is closely related to the increase in births to 
        unmarried women. Between 1970 and 1991, the percentage of live 
        births to unmarried women increased nearly threefold, from 10.7 
        percent to 29.5 percent.
        (6) The increase of out-of-wedlock pregnancies and births is 
    well documented as follows:
            (A) It is estimated that the rate of nonmarital teen 
        pregnancy rose 23 percent from 54 pregnancies per 1,000 
        unmarried teenagers in 1976 to 66.7 pregnancies in 1991. The 
        overall rate of nonmarital pregnancy rose 14 percent from 90.8 
        pregnancies per 1,000 unmarried women in 1980 to 103 in both 
        1991 and 1992. In contrast, the overall pregnancy rate for 
        married couples decreased 7.3 percent between 1980 and 1991, 
        from 126.9 pregnancies per 1,000 married women in 1980 to 117.6 
        pregnancies in 1991.
            (B) The total of all out-of-wedlock births between 1970 and 
        1991 has risen from 10.7 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 
        effects of ``younger and longer'' increase total AFDC costs per 
        household by 25 percent to 30 percent for 17-year olds.
            (B) Children born out-of-wedlock have a substantially 
        higher risk of being born at a very low or moderately low birth 
        weight.
            (C) Children born out-of-wedlock are more likely to 
        experience low verbal cognitive attainment, as well as more 
        child abuse, and neglect.
            (D) Children born out-of-wedlock were more likely to have 
        lower cognitive scores, lower educational aspirations, and a 
        greater likelihood of becoming teenage parents themselves.
            (E) Being born out-of-wedlock significantly reduces the 
        chances of the child growing up to have an intact marriage.
            (F) Children born out-of-wedlock are 3 times more likely to 
        be on welfare when they grow up.
        (8) Currently 35 percent of children in single-parent homes 
    were born out-of-wedlock, nearly the same percentage as that of 
    children in single-parent homes whose parents are divorced (37 
    percent). While many parents find themselves, through divorce or 
    tragic circumstances beyond their control, facing the difficult 
    task of raising children alone, nevertheless, the negative 
    consequences of raising children in single-parent homes are well 
    documented as follows:
            (A) Only 9 percent of married-couple families with children 
        under 18 years of age have income below the national poverty 
        level. In contrast, 46 percent of female-headed households 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 received AFDC.
            (C) Children born into families receiving welfare 
        assistance are 3 times more likely to be on welfare when they 
        reach adulthood than children not born into families receiving 
        welfare.
            (D) Mothers under 20 years of age are at the greatest risk 
        of bearing low-birth-weight babies.
            (E) The younger the single parent mother, the less likely 
        she is to finish high school.
            (F) Young women who have children before finishing high 
        school are more likely to receive welfare assistance for a 
        longer period of time.
            (G) Between 1985 and 1990, the public cost of births to 
        teenage mothers under the aid to families with dependent 
        children program, the food stamp program, and the medicaid 
        program has been estimated at $120,000,000,000.
            (H) The absence of a father in the life of a child has a 
        negative effect on school performance and peer adjustment.
            (I) Children of teenage single parents have lower cognitive 
        scores, lower educational aspirations, and a greater likelihood 
        of becoming 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 2-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 percentages of youth aged 12 
        through 20 and areas with higher percentages of single-parent 
        households have higher rates of violent crime.
            (M) Of those youth held for criminal offenses 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 Congress that prevention of out-
    of-wedlock pregnancy and reduction in out-of-wedlock birth are very 
    important Government interests and the policycontained in part A of 
title IV of the Social Security Act (as amended by section 103 of this 
Act) is intended to address the crisis.

SEC. 102. REFERENCE 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 section or other provision of the Social Security Act.

SEC. 103. BLOCK GRANTS TO STATES.

    Part A of title IV (42 U.S.C. 601 et seq.) is amended to read as 
follows:

  ``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
                                FAMILIES

``SEC. 401. PURPOSE.

    ``(a) In General.--The purpose of this part is to increase the 
flexibility of States in operating a program designed to--
        ``(1) provide assistance to needy families so that children may 
    be cared for in their own homes or in the homes of relatives;
        ``(2) end the dependence of needy parents on government 
    benefits by promoting job preparation, work, and marriage;
        ``(3) prevent and reduce the incidence of out-of-wedlock 
    pregnancies and establish annual numerical goals for preventing and 
    reducing the incidence of these pregnancies; and
        ``(4) encourage the formation and maintenance of two-parent 
    families.
    ``(b) No Individual Entitlement.--This part shall not be 
interpreted to entitle any individual or family to assistance under any 
State program funded under this part.

``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, during the 2-year 
period immediately preceding the fiscal year, has submitted to the 
Secretary a plan that includes the following:
        ``(1) Outline of family assistance program.--
            ``(A) General provisions.--A written document that outlines 
        how the State intends to do the following:
                ``(i) Conduct a program, designed to serve all 
            political subdivisions in the State, that provides 
            assistance to needy families with (or expecting) children 
            and provides parents with job preparation, work, and 
            support services to enable them to leave the program and 
            become self-sufficient.
                ``(ii) Require a parent or caretaker receiving 
            assistance under the program to engage in work (as defined 
            by the State) once the State determines the parent or 
            caretaker is ready to engage in work, or once the parent or 
            caretaker has received assistance under the program for 24 
            months (whether or not consecutive), whichever is earlier.
                ``(iii) Ensure that parents and caretakers receiving 
            assistance under the program engage in work activities in 
            accordance with section 407.
                ``(iv) Take such reasonable steps as the State deems 
            necessary to restrict the use and disclosure of information 
            about individuals and families receiving assistance under 
            the program attributable to funds provided by the Federal 
            Government.
                ``(v) Establish goals and take action to prevent and 
            reduce the incidence of out-of-wedlock pregnancies, with 
            special emphasis on teenage pregnancies, and establish 
            numerical goals for reducing the illegitimacy ratio of the 
            State (as defined in section 403(a)(2)(B)) for calendar 
            years 1996 through 2005.
            ``(B) Special provisions.--
                ``(i) The document shall indicate whether the State 
            intends to treat families moving into the State from 
            another State differently than other families under the 
            program, and if so, how the State intends to treat such 
            families under the program.
                ``(ii) The document shall indicate whether the State 
            intends to provide assistance under the program to 
            individuals who are not citizens of the United States, and 
            if so, shall include an overview of such assistance.
        ``(2) Certification that the state will operate a child support 
    enforcement program.--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.
        ``(3) Certification that the state will operate a child 
    protection program.--A certification 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 approved under part 
    B.
        ``(4) Certification of the administration of the program.--A 
    certification by the chief executive officer of the State 
    specifying which State agency or agencies will administer and 
    supervise the program referred to in paragraph (1) for the fiscal 
    year, which shall include assurances that local governments and 
    private sector organizations--
            ``(A) have been consulted regarding the plan and design of 
        welfare services in the State so that services are provided in 
        a manner appropriate to local populations; and
            ``(B) have had at least 60 days to submit comments on the 
        plan and the design of such services.
        ``(5) Certification that the state will provide indians with 
    equitable access to assistance.--A certification by the chief 
    executive officer of the State that, during the fiscal year, the 
    State will provide each Indian who is a member of an Indian tribe 
    in the State that does not have a tribal family assistance plan 
    approved under section 412 with equitable accessto assistance under 
the State program funded under this part attributable to funds provided 
by the Federal Government.
    ``(b) Public Availability of State Plan Summary.--The State shall 
make available to the public a summary of any plan submitted by the 
State under this section.

``SEC. 403. GRANTS TO STATES.

    ``(a) Grants.--
        ``(1) Family assistance grant.--
            ``(A) In general.--Each eligible State shall be entitled to 
        receive from the Secretary, for each of fiscal years 1996, 
        1997, 1998, 1999, 2000, and 2001 a grant in an amount equal to 
        the State family assistance grant.
            ``(B) State family assistance grant defined.--As used in 
        this part, the term `State family assistance grant' means the 
        greatest of--
                ``(i) \1/3\ of the total amount required to be paid to 
            the State under former section 403 (as in effect on 
            September 30, 1995) for fiscal years 1992, 1993, and 1994 
            (other than with respect to amounts expended by the State 
            for child care under subsection (g) or (i) of former 
            section 402 (as so in effect));
                ``(ii)(I) the total amount required to be paid to the 
            State under former section 403 for fiscal year 1994 (other 
            than with respect to amounts expended by the State for 
            child care under subsection (g) or (i) of former section 
            402 (as so in effect)); plus
                ``(II) an amount equal to 85 percent of the amount (if 
            any) by which the total amount required to be paid to the 
            State under former section 403(a)(5) for emergency 
            assistance for fiscal year 1995 exceeds the total amount 
            required to be paid to the State under former section 
            403(a)(5) for fiscal year 1994, if, during fiscal year 
            1994, the Secretary approved under former section 402 an 
            amendment to the former State plan with respect to the 
            provision of emergency assistance in the context of family 
            preservation; or
                ``(iii) \4/3\ of the total amount required to be paid 
            to the State under former section 403 (as in effect on 
            September 30, 1995) for the 1st 3 quarters of fiscal year 
            1995 (other than with respect to amounts expended by the 
            State under the State plan approved under part F (as so in 
            effect) or for child care under subsection (g) or (i) of 
            former section 402 (as so in effect)), plus the total 
            amount required to be paid to the State for fiscal year 
            1995 under former section 403(l) (as so in effect).
            ``(C) Total amount required to be paid to the state under 
        former section 403 defined.--As used in this part, the term 
        `total amount required to be paid to the State under former 
        section 403' means, with respect to a fiscal year--
                ``(i) in the case of a State to which section 1108 does 
            not apply, the sum of--

                    ``(I) the Federal share of maintenance assistance 
                expenditures for the fiscal year, before reduction 
                pursuant to subparagraph (B) or (C) of section 
                403(b)(2) (as in effect on September 30, 1995), as 
                reported by the State on ACF Form 231;
                    ``(II) the Federal share of administrative 
                expenditures (including administrative expenditures for 
                the development of management information systems) for 
                the fiscal year, as reported by the State on ACF Form 
                231;
                    ``(III) the Federal share of emergency assistance 
                expenditures for the fiscal year, as reported by the 
                State on ACF Form 231;
                    ``(IV) the Federal share of expenditures for the 
                fiscal year with respect to child care pursuant to 
                subsections (g) and (i) of former section 402 (as in 
                effect on September 30, 1995), as reported by the State 
                on ACF Form 231; and
                    ``(V) the aggregate amount required to be paid to 
                the State for the fiscal year with respect to the State 
                program operated under part F (as in effect on 
                September 30, 1995), as determined by the Secretary, 
                including additional obligations or reductions in 
                obligations made after the close of the fiscal year; 
                and

                ``(ii) in the case of a State to which section 1108 
            applies, the lesser of--

                    ``(I) the sum described in clause (i); or
                    ``(II) the total amount certified by the Secretary 
                under former section 403 (as in effect during the 
                fiscal year) with respect to the territory.

            ``(D) Information to be used in determining amounts.--
                ``(i) For fiscal years 1992 and 1993.--

                    ``(I) In determining the amount described in 
                subclauses (I) through (IV) of subparagraph (C)(i) for 
                any State for each of fiscal years 1992 and 1993, the 
                Secretary shall use information available as of April 
                28, 1995.
                    ``(II) In determining the amount described in 
                subparagraph (C)(i)(V) for any State for each of fiscal 
                years 1992 and 1993, the Secretary shall use 
                information available as of January 6, 1995.

                ``(ii) For fiscal year 1994.--In determining the 
            amounts described in subparagraph (C)(i) for any State for 
            fiscal year 1994, the Secretary shall use information 
            available as of April 28, 1995.
                ``(iii) For fiscal year 1995.--

                    ``(I) In determining the amount described in 
                subparagraph (B)(ii)(II) for any State for fiscal year 
                1995, the Secretary shall use the information which was 
                reported by the States and estimates made by the States 
                with respect to emergencyassistance expenditures and 
was available as of August 11, 1995.

                    ``(II) In determining the amounts described in 
                subclauses (I) through (IV) of subparagraph (C)(i) for 
                any State for fiscal year 1995, the Secretary shall use 
                information available as of October 2, 1995.
                    ``(III) In determining the amount described in 
                subparagraph (C)(i)(V) for any State for fiscal year 
                1995, the Secretary shall use information available as 
                of October 5, 1995.

            ``(E) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there are 
        appropriated for fiscal years 1996, 1997, 1998, 1999, 2000, and 
        2001 such sums as are necessary for grants under this 
        paragraph.
        ``(2) Grant to reward states that reduce out-of-wedlock 
    births.--
            ``(A) In general.--In addition to any grant under paragraph 
        (1), each eligible State shall be entitled to receive from the 
        Secretary for fiscal year 1998 or any succeeding fiscal year, a 
        grant in an amount equal to the State family assistance grant 
        multiplied by--
                ``(i) 5 percent if--

                    ``(I) the illegitimacy ratio of the State for the 
                fiscal year is at least 1 percentage point lower than 
                the illegitimacy ratio of the State for fiscal year 
                1995; and
                    ``(II) the rate of induced pregnancy terminations 
                in the State for the fiscal year is less than the rate 
                of induced pregnancy terminations in the State for 
                fiscal year 1995; or

                ``(ii) 10 percent if--

                    ``(I) the illegitimacy ratio of the State for the 
                fiscal year is at least 2 percentage points lower than 
                the illegitimacy ratio of the State for fiscal year 
                1995; and
                    ``(II) the rate of induced pregnancy terminations 
                in the State for the fiscal year is less than the rate 
                of induced pregnancy terminations in the State for 
                fiscal year 1995.

            ``(B) Illegitimacy ratio.--As used in this paragraph, the 
        term `illegitimacy ratio' means, with respect to a State and a 
        fiscal year--
                ``(i) the number of out-of-wedlock births that occurred 
            in the State during the most recent fiscal year for which 
            such information is available; divided by
                ``(ii) the number of births that occurred in the State 
            during the most recent fiscal year for which such 
            information is available.
            ``(C) Disregard of changes in data due to changed reporting 
        methods.--For purposes of subparagraph (A), the Secretary shall 
        disregard--
                ``(i) any difference between the illegitimacy ratio of 
            a State for a fiscal year and the illegitimacy ratio of the 
            State for fiscal year 1995 which is attributable to a 
            change in State methods of reporting data used to calculate 
            the illegitimacy ratio; and
                ``(ii) any difference between the rate of induced 
            pregnancy terminations in a State for a fiscal year and 
            such rate for fiscal year 1995 which is attributable to a 
            change in State methods of reporting data used to calculate 
            such rate.
            ``(D) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there are 
        appropriated for fiscal year 1998 and for each succeeding 
        fiscal year such sums as are necessary for grants under this 
        paragraph.
        ``(3) Supplemental grant for population increases in certain 
    states.--
            ``(A) In general.--Each qualifying State shall, subject to 
        subparagraph (F), be entitled to receive from the Secretary--
                ``(i) for fiscal year 1997 a grant in an amount equal 
            to 2.5 percent of the total amount required to be paid to 
            the State under former section 403 (as in effect during 
            fiscal year 1994) for fiscal year 1994; and
                ``(ii) for each of fiscal years 1998, 1999, and 2000, a 
            grant in an amount equal to the sum of--

                    ``(I) the amount (if any) required to be paid to 
                the State under this paragraph for the immediately 
                preceding fiscal year; and
                    ``(II) 2.5 percent of the sum of--

                        ``(aa) the total amount required to be paid to 
                    the State under former section 403 (as in effect 
                    during fiscal year 1994) for fiscal year 1994; and
                        ``(bb) the amount (if any) required to be paid 
                    to the State under this paragraph for the fiscal 
                    year preceding the fiscal year for which the grant 
                    is to be made.
            ``(B) Preservation of grant without increases for states 
        failing to remain qualifying states.--Each State that is not a 
        qualifying State for a fiscal year specified in subparagraph 
        (A)(ii) but was a qualifying State for a prior fiscal year 
        shall, subject to subparagraph (F), be entitled to receive from 
        the Secretary for the specified fiscal year, a grant in an 
        amount equal to the amount required to be paid to the State 
        under this paragraph for the most recent fiscal year for which 
        the State was a qualifying State.
            ``(C) Qualifying state.--
                ``(i) In general.--For purposes of this paragraph, a 
            State is a qualifying State for a fiscal year if--

                    ``(I) the level of welfare spending per poor person 
                by the State for the immediately preceding fiscal year 
                is less than the national average level ofState welfare 
spending per poor person for such preceding fiscal year; and

                    ``(II) the population growth rate of the State (as 
                determined by the Bureau of the Census for the most 
                recent fiscal year for which information is available) 
                exceeds the average population growth rate for all 
                States (as so determined) for such most recent fiscal 
                year.

                ``(ii) State must qualify in fiscal year 1997.--
            Notwithstanding clause (i), a State shall not be a 
            qualifying State for any fiscal year after 1997 by reason 
            of clause (i) if the State is not a qualifying State for 
            fiscal year 1997 by reason of clause (i).
                ``(iii) Certain states deemed qualifying states.--For 
            purposes of this paragraph, a State is deemed to be a 
            qualifying State for fiscal years 1997, 1998, 1999, and 
            2000 if--

                    ``(I) the level of welfare spending per poor person 
                by the State for fiscal year 1996 is less than 35 
                percent of the national average level of State welfare 
                spending per poor person for fiscal year 1996; or
                    ``(II) the population of the State increased by 
                more than 10 percent from April 1, 1990, to July 1, 
                1994, as determined by the Bureau of the Census.

            ``(D) Definitions.--As used in this paragraph:
                ``(i) Level of welfare spending per poor person.--The 
            term `level of State welfare spending per poor person' 
            means, with respect to a State and a fiscal year--

                    ``(I) the sum of--

                        ``(aa) the total amount required to be paid to 
                    the State under former section 403 (as in effect 
                    during fiscal year 1994) for fiscal year 1994; and
                        ``(bb) the amount (if any) paid to the State 
                    under this paragraph for the immediately preceding 
                    fiscal year; divided by

                    ``(II) the number of individuals, according to the 
                1990 decennial census, who were residents of the State 
                and whose income was below the poverty line.

                ``(ii) National average level of state welfare spending 
            per poor person.--The term `national average level of State 
            welfare spending per poor person' means, with respect to a 
            fiscal year, an amount equal to--

                    ``(I) the total amount required to be paid to the 
                States under former section 403 (as in effect during 
                fiscal year 1994) for fiscal year 1994; divided by
                    ``(II) the number of individuals, according to the 
                1990 decennial census, who were residents of any State 
                and whose income was below the poverty line.

                ``(iii) State.--The term `State' means each of the 50 
            States of the United States and the District of Columbia.
            ``(E) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there are 
        appropriated for fiscal years 1997, 1998, 1999, and 2000 such 
        sums as are necessary for grants under this paragraph, in a 
        total amount not to exceed $800,000,000.
            ``(F) Grants reduced pro rata if insufficient 
        appropriations.--If the amount appropriated pursuant to this 
        paragraph for a fiscal year is less than the total amount of 
        payments otherwise required to be made under this paragraph for 
        the fiscal year, then the amount otherwise payable to any State 
        for the fiscal year under this paragraph shall be reduced by a 
        percentage equal to the amount so appropriated divided by such 
        total amount.
            ``(G) Budget scoring.--Notwithstanding 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 paragraph after fiscal year 2000.
    ``(b) Contingency Fund.--
        ``(1) Establishment.--There is hereby established in the 
    Treasury of the United States a fund which shall be known as the 
    `Contingency Fund for State Welfare Programs' (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 
    appropriated for fiscal years 1997, 1998, 1999, 2000, and 2001 such 
    sums as are necessary for payment to the Fund in a total amount not 
    to exceed $1,000,000,000.
        ``(3) Grants.--From amounts appropriated pursuant to paragraph 
    (2), the Secretary of the Treasury shall pay to each eligible State 
    for a fiscal year an amount equal to the lesser of--
            ``(A) the Federal medical assistance percentage for the 
        State for the fiscal year (as defined in section 1905(b), as in 
        effect on September 30, 1995) of the amount (if any) by which 
        the expenditures of the State in the fiscal year under the 
        State program funded under this part exceed the historic State 
        expenditures (as defined in section 409(a)(7)(B)(iii)) for the 
        State with respect to the fiscal year; or
            ``(B) 20 percent of the State family assistance grant for 
        the fiscal year.
        ``(4) Eligible state.--For purposes of this subsection, a State 
    is an eligible State for a fiscal year, if--
            ``(A) the average rate of total unemployment in such State 
        (seasonally adjusted) for the period consisting of the most 
        recent 3 months for which data for all States are published 
        equals or exceeds 6.5 percent;
            ``(B) the average rate of total unemployment in such State 
        (seasonally adjusted) 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
            ``(C) the total amount expended by the State during the 
        fiscal year under the State program funded under this part is 
        not less than 100 percent of the level of historic State 
        expenditures (as defined in section 409(a)(7)(B)(iii)) with 
        respect to the fiscal year.
        ``(5) State.--As used in this subsection, the term `State' 
    means each of the 50 States of the United States and the District 
    of Columbia.
        ``(6) Payment priority.--The Secretary shall make payments 
    under paragraph (3) in the order in which the Secretary receives 
    claims for such payments.
        ``(7) Annual reports.--The Secretary of the Treasury shall 
    annually report to the Congress on the status of the Fund.
        ``(8) Budget scoring.--Notwithstanding 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 
    subsection after fiscal year 2001.

``SEC. 404. USE OF GRANTS.

    ``(a) General Rules.--Subject to this part, a State to which a 
grant is made under section 403 may use the grant--
        ``(1) in any manner that is reasonably calculated to accomplish 
    the purpose of this part, including to provide low income 
    households with assistance in meeting home heating and cooling 
    costs; or
        ``(2) in any manner that the State was authorized to use 
    amounts received under part A or F, as such parts were in effect on 
    September 30, 1995.
    ``(b) Limitation on Use of Grant for Administrative Purposes.--
        ``(1) Limitation.--A State to which a grant is made under 
    section 403 shall not expend more than 15 percent of the grant for 
    administrative purposes.
        ``(2) Exception.--Paragraph (1) shall not apply to the use of a 
    grant for information technology and computerization needed for 
    tracking or monitoring required by or under this part.
    ``(c) Authority to Treat Interstate Immigrants Under Rules of 
Former State.--A State operating a program funded under this part may 
apply to a family the rules (including benefit amounts) of the program 
funded 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.
    ``(d) Authority to Use Portion of Grant for Other Purposes.--
        ``(1) In general.--A State may use not more than 30 percent of 
    the amount of the grant made to the State under section 403 for a 
    fiscal year to carry out a State program pursuant to any or all of 
    the following provisions of law:
            ``(A) Part B of this title.
            ``(B) Title XX of this Act.
            ``(C) The Child Care and Development Block Grant Act of 
        1990.
        ``(2) Applicable rules.--Any amount paid to the State under 
    this part that is used to carry out a State program pursuant to a 
    provision of law specified or described in paragraph (1) shall not 
    be subject to the requirements of this part, but shall be subject 
    to the requirements that apply to Federal funds provided directly 
    under the provision of law to carry out the program.
    ``(e) 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 fiscal year limitation, 
assistance under the State program funded under this part.
    ``(f) Authority to Operate Employment Placement Program.--A State 
to which a grant is made under section 403 may use the grant to make 
payments (or provide job placement vouchers) to State-approved public 
and private job placement agencies that provide employment placement 
services to individuals who receive assistance under the State program 
funded under this part.
    ``(g) Implementation of Electronic Benefit Transfer System.--A 
State to which a grant is made under section 403 is encouraged to 
implement an electronic benefit transfer system for providing 
assistance under the State program funded under this part, and may use 
the grant for such purpose.

``SEC. 405. ADMINISTRATIVE PROVISIONS.

    ``(a) Quarterly.--The Secretary shall pay each grant payable to a 
State under section 403 in quarterly installments.
    ``(b) Notification.--Not later than 3 months before the payment of 
any such quarterly installment to a State, the Secretary shall notify 
the State of the amount of any reduction determined under section 
412(a)(1)(B) with respect to the State.
    ``(c) Computation and Certification of Payments to States.--
        ``(1) Computation.--The Secretary shall estimate the amount to 
    be paid to each eligible State for each quarter under this part, 
    such estimate to be based on a report filed by the State containing 
    an estimate by the State of the total sum to be expended by the 
    State in the quarter under the State program funded under this part 
    and such other information as the Secretary may find necessary.
        ``(2) Certification.--The Secretary of Health and Human 
    Services shall certify to the Secretary of the Treasury the amount 
    estimated under paragraph (1) with respect to a State, reduced or 
    increased to the extent of any overpayment or underpayment which 
    the Secretary of Health and Human Services determines was made 
    under this part to the State for any prior quarter and with respect 
    to which adjustment has not been made under this paragraph.
    ``(d) Payment Method.--Upon receipt of a certification under 
subsection (c)(2) with respect to a State, the Secretary of the 
Treasury shall, through the Fiscal Service of the Department of 
theTreasury and before audit or settlement by the General Accounting 
Office, pay to the State, at the time or times fixed by the Secretary 
of Health and Human Services, the amount so certified.
    ``(e) Collection of State Overpayments to Families From Federal Tax 
Refunds.--
        ``(1) In general.--Upon receiving notice from the Secretary of 
    Health and Human Services that a State agency administering a 
    program funded under this part has notified the Secretary that a 
    named individual has been overpaid under the State program funded 
    under this part, the Secretary of the Treasury shall determine 
    whether any amounts as refunds of Federal taxes paid are payable to 
    such individual, regardless of whether the individual filed a tax 
    return as a married or unmarried individual. If the Secretary of 
    the Treasury finds that any such amount is so payable, the 
    Secretary shall withhold from such refunds an amount equal to the 
    overpayment sought to be collected by the State and pay such amount 
    to the State agency.
        ``(2) Regulations.--The Secretary of the Treasury shall issue 
    regulations, after review by the Secretary of Health and Human 
    Services, that provide--
            ``(A) that a State may only submit under paragraph (1) 
        requests for collection of overpayments with respect to 
        individuals--
                ``(i) who are no longer receiving assistance under the 
            State program funded under this part;
                ``(ii) with respect to whom the State has already taken 
            appropriate action under State law against the income or 
            resources of the individuals or families involved to 
            collect the past-due legally enforceable debt; and
                ``(iii) to whom the State agency has given notice of 
            its intent to request withholding by the Secretary of the 
            Treasury from the income tax refunds of such individuals;
            ``(B) that the Secretary of the Treasury will give a timely 
        and appropriate notice to any other person filing a joint 
        return with the individual whose refund is subject to 
        withholding under paragraph (1); and
            ``(C) the procedures that the State and the Secretary of 
        the Treasury will follow in carrying out this subsection which, 
        to the maximum extent feasible and consistent with the 
        provisions of this subsection, will be the same as those issued 
        pursuant to section 464(b) applicable to collection of past-due 
        child support.

``SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.

    ``(a) Loan Authority.--
        ``(1) In general.--The Secretary shall make loans to any loan-
    eligible State, for a period to maturity of not more than 3 years.
        ``(2) Loan-eligible state.--As used in paragraph (1), the term 
    `loan-eligible State' means a State against which a penalty has not 
    been imposed under section 409(a)(1).
    ``(b) Rate of Interest.--The Secretary shall charge and collect 
interest on any loan made under this section at a rate equal to the 
current average market yield on outstanding marketable obligations of 
the United States with remaining periods to maturity comparable to the 
period to maturity of the loan.
    ``(c) Use of Loan.--A State shall use a loan made to the State 
under this section only for any purpose for which grant amounts 
received by the State under section 403(a) may be used, including--
        ``(1) welfare anti-fraud activities; and
        ``(2) 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 
    412.
    ``(d) Limitation on Total Amount of Loans to a State.--The 
cumulative dollar amount of all loans made to a State under this 
section during fiscal years 1997 through 2001 shall not exceed 10 
percent of the State family assistance grant.
    ``(e) Limitation on Total Amount of Outstanding Loans.--The total 
dollar amount of loans outstanding under this section may not exceed 
$1,700,000,000.
    ``(f) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there are appropriated such 
sums as may be necessary for the cost of loans under this section.

``SEC. 407. MANDATORY WORK REQUIREMENTS.

    ``(a) Participation Rate Requirements.--
        ``(1) All families.--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 table for the fiscal 
    year with respect to all families receiving assistance under the 
    State program funded under this part:

            
                                                             The minimum
            
                                                           participation
            ``If the fiscal year is:
                                                                rate is:
              1996......................................
                                                                   15   
              1997......................................
                                                                   20   
              1998......................................
                                                                   25   
              1999......................................
                                                                   30   
              2000......................................
                                                                   35   
              2001......................................
                                                                   40   
              2002 or thereafter........................
                                                                   50.  

        ``(2) 2-parent families.--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 table for the fiscal 
    year with respect to 2-parent families receiving assistance under 
    the State program funded under this part:

            
                                                             The minimum
            
                                                           participation
            ``If the fiscal year is:
                                                                rate is:
              1996......................................
                                                                   50   
              1997......................................
                                                                   75   
              1998......................................
                                                                   75   
              1999 or thereafter........................
                                                                   90.  

    ``(b) Calculation of Participation Rates.--
        ``(1) All families.--
            ``(A) Average monthly rate.--For purposes 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 fiscal year.
            ``(B) Monthly participation rates.--The participation rate 
        of a State for all families of the State for a month, expressed 
        as a percentage, is--
                ``(i) the number of families receiving assistance under 
            the State program funded under this part that include an 
            adult who is engaged in work for the month; divided by
                ``(ii) the amount by which--

                    ``(I) the number of families receiving such 
                assistance during the month that include an adult 
                receiving such assistance; exceeds
                    ``(II) the number of families receiving such 
                assistance that are subject in such month to a penalty 
                described in subsection (e)(1) but have not been 
                subject to such penalty for more than 3 months within 
                the preceding 12-month period (whether or not 
                consecutive).

        ``(2) 2-parent families.--
            ``(A) Average monthly rate.--For purposes 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 shall 
        be calculated by use of the formula set forth in paragraph 
        (1)(B), except that in the formula the term `number of 2-parent 
        families' shall be substituted for the term `number of 
        families' each place such latter term appears.
        ``(3) Pro rata reduction of participation rate due to caseload 
    reductions not required 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 percentage points equal to the number of percentage 
        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 received aid under 
            the State plan approved under part A (as in effect on 
            September 30, 1995) during fiscal year 1995.
        The minimum participation rate shall not be reduced to the 
        extent that the Secretary determines that the reduction in the 
        number of families receiving such assistance is required by 
        Federal law.
            ``(B) Eligibility changes not counted.--The regulations 
        described in subparagraph (A) shall not take into account 
        families that are diverted from a State program funded under 
        this part as a result of differences in eligibility criteria 
        under a State program funded under this part and eligibility 
        criteria under the State program operated under the State plan 
        approved under part A (as such plan and such part were in 
        effect on September 30, 1995). Such regulations shall place the 
        burden on the Secretary to prove that such families were 
        diverted as a direct result of differences in such eligibility 
        criteria.
        ``(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, include families 
    receiving assistance under a tribal family assistance plan approved 
    under section 412.
        ``(5) State option for participation requirement exemptions.--
    For any fiscal year, a State may, at its option, not require an 
    individual who is a single custodial parent caring for a child who 
    has not attained 12 months of age to engage in work and may 
    disregard such an individual in determining the participation rates 
    under subsection (a).
    ``(c) Engaged in Work.--
        ``(1) All families.--For purposes of subsection (b)(1)(B)(i), a 
    recipient is engaged in work for a month in a fiscal year if the 
    recipient is participating in such activities for at least the 
    minimum average number of hours per week specified in the following 
    table during the month, not fewer than 20 hours per week of which 
    are attributable to an activity described in paragraph (1), (2), 
    (3), (4), (5), (7), or (8) of subsection (d) (or, in the case of 
    the first 4 weeks for which the recipient is required pursuant to 
    this section to participate in work activities, an activity 
    described in subsection (d)(6)):

           
                                                             The minimum
          ``If the month is
                                                       average number of
            in fiscal year:
                                                      hours per week is:
              1996......................................
                                                                   20   
              1997......................................
                                                                   20   
              1998......................................
                                                                   20   
              1999......................................


                                                                   25   

              2000......................................
                                                                   30   
              2001......................................
                                                                   30   
              2002......................................
                                                                   35   
              2003 or thereafter........................
                                                                   35.  

        ``(2) 2-parent families.--For purposes of subsection 
    (b)(2)(B)(i), an adult is engaged in work for a month in a fiscal 
    year if the adult is making progress in such activities for at 
    least 35 hours per week during the month, not fewer than 30 hours 
    per week of which are attributable to an activity described in 
    paragraph (1), (2), (3), (4), (5), (7), or (8) of subsection (d) 
    (or, in the case of the first 4 weeks for which the recipient is 
    required pursuant to this section to participate in work 
    activities, an activity described in subsection (d)(6)).
        ``(3) Limitation on vocational education activities counted as 
    work.--For purposes of determining monthly participation rates 
    under paragraphs (1)(B)(i) and (2)(B)(i) of subsection (b), not 
    more than 20 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 
    vocational educational training.
    ``(d) Work Activities Defined.--As used in this section, the term 
`work activities' means--
        ``(1) unsubsidized employment;
        ``(2) subsidized private sector employment;
        ``(3) subsidized public sector employment;
        ``(4) work experience (including work associated with the 
    refurbishing of publicly assisted housing) if sufficient private 
    sector employment is not available;
        ``(5) on-the-job training;
        ``(6) job search and job readiness assistance;
        ``(7) community service programs;
        ``(8) vocational educational training (not to exceed 12 months 
    with respect to any individual);
        ``(9) job skills training directly related to employment;
        ``(10) education directly related to employment, in the case of 
    a recipient who has not attained 20 years of age, and has not 
    received a high school diploma or a certificate of high school 
    equivalency; and
        ``(11) satisfactory attendance at secondary school, in the case 
    of a recipient who--
            ``(A) has not completed secondary school; and
            ``(B) is a dependent child, or a head of household who has 
        not attained 20 years of age.
    ``(e) Penalties Against Individuals.--
        ``(1) In general.--Except as provided in paragraph (2), if an 
    adult in a family receiving assistance under the State program 
    funded under this part refuses to engage in work required in 
    accordance with this section, the State shall--
            ``(A) reduce the amount of assistance otherwise 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 
        refuses; 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 funded 
    under this part based on a refusal of an adult to work if the adult 
    is a single custodial parent caring for a child who has not 
    attained 6 years of age, and the adult proves that the adult has a 
    demonstrated inability (as determined by the State) to obtain 
    needed child care, for 1 or more of the following reasons:
            ``(A) Unavailability of appropriate child care within a 
        reasonable distance from the individual's home or work site.
            ``(B) Unavailability or unsuitability of informal child 
        care by a relative or under other arrangements.
            ``(C) Unavailability of appropriate and affordable formal 
        child care arrangements.
    ``(f) Nondisplacement in Work Activities.--
        ``(1) In general.--Subject to paragraph (2), an adult in a 
    family receiving assistance under a State program funded under this 
    part attributable to funds provided by the Federal Government may 
    fill a vacant employment position in order to engage in a work 
    activity described in subsection (d).
        ``(2) No filling of certain vacancies.--No adult in a work 
    activity described in subsection (d) which is funded, in whole or 
    in part, by funds provided by the Federal Government shall be 
    employed or assigned--
            ``(A) when any other individual is on layoff from the same 
        or any substantially equivalent job; or
            ``(B) if the employer has terminated the employment of any 
        regular employee or otherwise 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 subsection shall preempt 
    or supersede any provision of State or local law that provides 
    greater protection for employees from displacement.
    ``(g) 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.
    ``(h) Sense of the Congress That States Should Impose Certain 
Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the 
sense of the Congress that the States should require noncustodial, 
nonsupporting parents who have not attained 18 years of age to fulfill 
community work obligations and attend appropriate parenting or money 
management classes after school.

``SEC. 408. PROHIBITIONS; REQUIREMENTS.

    ``(a) In General.--
        ``(1) No assistance for families without a minor child.--A 
    State to which a grant is made under section 403 shall not use any 
    part of the grant to provide assistance to a family, unless the 
    family includes--
            ``(A) a minor child who resides with a custodial parent or 
        other adult caretaker relative of the child; or
            ``(B) a pregnant individual.
        ``(2) No additional cash assistance for children born to 
    families receiving assistance.--
            ``(A) General rule.--A State to which a grant is made under 
        section 403 shall not use any part of the grant to provide cash 
        benefits for a minor child who is born to--
                ``(i) a recipient of assistance under the program 
            operated under this part; or
                ``(ii) a person who received such assistance at any 
            time during the 10-month period ending with the birth of 
            the child.
            ``(B) Exception for children born into families with no 
        other children.--Subparagraph (A) shall not apply to a minor 
        child who is born into a family that does not include any other 
        children.
            ``(C) Exception for vouchers.--Subparagraph (A) shall not 
        apply to vouchers which are provided in lieu of cash benefits 
        and which may be used only to pay for particular goods and 
        services specified by the State as suitable for the care of the 
        child involved.
            ``(D) Exception for rape or incest.--Subparagraph (A) shall 
        not apply with respect to a child who is born as a result of 
        rape or incest.
            ``(E) State election to opt out.--Subparagraph (A) shall 
        not apply to a State if State law specifically exempts the 
        State program funded under this part from the application of 
        subparagraph (A).
            ``(F) Substitution of family caps in effect under 
        waivers.--Subparagraph (A) shall not apply to a State--
                ``(i) if, as of the date of the enactment of this part, 
            there is in effect a waiver approved by the Secretary under 
            section 1115 which permits the State to deny aid under the 
            State plan approved under part A of this title (as in 
            effect without regard to the amendments made by title I of 
            the Personal Responsibility and Work Opportunity Act of 
            1995) to a family by reason of the birth of a child to a 
            family member otherwise eligible for such aid; and
                ``(ii) for so long as the State continues to implement 
            such policy under the State program funded under this part, 
            under rules prescribed by the State.
        ``(3) Reduction or elimination of assistance for noncooperation 
    in child support.--If the agency responsible for administering the 
    State plan approved under part D determines that an individual is 
    not cooperating with the State in establishing, modifying, or 
    enforcing a support order with respect to a child of the 
    individual, then the State--
            ``(A) shall deduct from the assistance that would otherwise 
        be provided to the family of the individual under the State 
        program funded under this part the share of such assistance 
        attributable to the individual; and
            ``(B) may deny the family any assistance under the State 
        program.
        ``(4) No assistance for families not assigning certain support 
    rights to the state.--
            ``(A) In general.--A State to which a grant is made under 
        section 403 shall require, as a condition of providing 
        assistance to a family under the State program funded under 
        this part, that a member of the family assign to the State any 
        rights the family member may have (on behalf of the family 
        member or of any other person for whom the family member has 
        applied for or is receiving such assistance) to support from 
        any other person, not exceeding the total amount of assistance 
        so provided to the family, which accrue (or have accrued) 
        before the date the family leavesthe program, which assignment, 
on and after the date the family leaves the program, shall not apply 
with respect to any support (other than support collected pursuant to 
section 464) which accrued before the family received such assistance 
and which the State has not collected by--
                ``(i) September 30, 2000, if the assignment is executed 
            on or after October 1, 1997, and before October 1, 2000; or
                ``(ii) the date the family leaves the program, if the 
            assignment is executed on or after October 1, 2000.
            ``(B) Limitation.--A State to which a grant is made under 
        section 403 shall not require, as a condition of providing 
        assistance to any family under the State program funded under 
        this part, that a member of the family assign to the State any 
        rights to support described in subparagraph (A) which accrue 
        after the date the family leaves the program, except to the 
        extent necessary to enable the State to comply with section 
        457.
        ``(5) No assistance for teenage parents who do not attend high 
    school or other equivalent training program.--A State to which a 
    grant is made under section 403 shall not use any part of the grant 
    to provide assistance to an individual who has not attained 18 
    years of age, is not married, has a minor child at least 12 weeks 
    of age in his or her care, and has not successfully completed a 
    high-school education (or its equivalent), if the individual does 
    not participate in--
            ``(A) educational activities directed toward the attainment 
        of a high school diploma or its equivalent; or
            ``(B) an alternative educational or training program that 
        has been approved by the State.
        ``(6) No assistance for teenage parents not living in adult-
    supervised settings.--
            ``(A) In general.--
                ``(i) Requirement.--Except as provided in subparagraph 
            (B), a State to which a grant is made under section 403 
            shall not use any part of the grant to provide assistance 
            to an individual described in clause (ii) of this 
            subparagraph if the individual and the minor child referred 
            to in clause (ii)(II) do not reside in a place of residence 
            maintained by a parent, legal guardian, or other adult 
            relative of the individual as such parent's, guardian's, or 
            adult relative's own home.
                ``(ii) Individual described.-- For purposes of clause 
            (i), an individual described in this clause is an 
            individual who--

                    ``(I) has not attained 18 years of age; and
                    ``(II) is not married, and has a minor child in his 
                or her care.

            ``(B) Exception.--
                ``(i) Provision of, or assistance in locating, adult-
            supervised living arrangement.--In the case of an 
            individual who is described in clause (ii), the State 
            agency referred to in section 402(a)(4) shall provide, or 
            assist the individual in locating, a second chance home, 
            maternity home, or other appropriate adult-supervised 
            supportive living arrangement, taking into consideration 
            the needs and concerns of the individual, unless the State 
            agency determines that the individual's current living 
            arrangement is appropriate, and thereafter shall require 
            that the individual and the minor child referred to in 
            subparagraph (A)(ii)(II) reside in such living arrangement 
            as a condition of the continued receipt of assistance under 
            the State program funded under this part attributable to 
            funds provided by the Federal Government (or in an 
            alternative appropriate arrangement, should circumstances 
            change and the current arrangement cease to be 
            appropriate).
                ``(ii) Individual described.--For purposes of clause 
            (i), an individual is described in this clause if the 
            individual is described in subparagraph (A)(ii), and--

                    ``(I) the individual has no parent, legal guardian 
                or other appropriate adult relative described in 
                subclause (II) of his or her own who is living or whose 
                whereabouts are known;
                    ``(II) no living parent, legal guardian, or other 
                appropriate adult relative, who would otherwise meet 
                applicable State criteria to act as the individual's 
                legal guardian, of such individual allows the 
                individual to live in the home of such parent, 
                guardian, or relative;
                    ``(III) the State agency determines that--

                        ``(aa) the individual or the minor child 
                    referred to in subparagraph (A)(ii)(II) is being or 
                    has been subjected to serious physical or emotional 
                    harm, sexual abuse, or exploitation in the 
                    residence of the individual's own parent or legal 
                    guardian; or
                        ``(bb) substantial evidence exists of an act or 
                    failure to act that presents an imminent or serious 
                    harm if the individual and the minor child lived in 
                    the same residence with the individual's own parent 
                    or legal guardian; or

                    ``(IV) the State agency otherwise determines that 
                it is in the best interest of the minor child to waive 
                the requirement of subparagraph (A) with respect to the 
                individual or the minor child.

                ``(iii) Second-chance home.--For purposes of this 
            subparagraph, the term `second-chance home' means an entity 
            that provides individuals described in clause (ii) with a 
            supportive and supervised living arrangement in which such 
            individuals are required to learn parenting skills, 
            including child development, family budgeting, health and 
            nutrition, and other skills topromote their long-term 
economic independence and the well-being of their children.
        ``(7) No medical services.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        a State to which a grant is made under section 403 shall not 
        use any part of the grant to provide medical services.
            ``(B) Exception for family planning services.--As used in 
        subparagraph (A), the term `medical services' does not include 
        family planning services.
        ``(8) No assistance for more than 5 years.--
            ``(A) In general.--Except as provided in subparagraphs (B) 
        and (C), a State to which a grant is made under section 403 
        shall not use any part of the grant to provide cash assistance 
        to a family that includes an adult who has received assistance 
        under any State program funded under this part attributable to 
        funds provided by the Federal Government, for 60 months 
        (whether or not consecutive) after the date the State program 
        funded under this part commences.
            ``(B) Minor child exception.--In determining the number of 
        months for which an individual who is a parent or pregnant has 
        received assistance under the State program funded under this 
        part, the State shall disregard any month for which such 
        assistance was provided with respect to the individual and 
        during which the individual was--
                ``(i) a minor child; and
                ``(ii) not the head of a household or married to the 
            head of a household.
            ``(C) Hardship exception.--
                ``(i) In general.--The State may exempt a family from 
            the application of subparagraph (A) by reason of hardship 
            or if the family includes an individual who has been 
            battered or subjected to extreme cruelty.
                ``(ii) Limitation.--The number of families with respect 
            to which an exemption made by a State under clause (i) is 
            in effect for a fiscal year shall not exceed 15 percent of 
            the average monthly number of families to which assistance 
            is provided under the State program funded under this part.
                ``(iii) Battered or subject to extreme cruelty 
            defined.--For purposes of clause (i), an individual has 
            been battered or subjected to extreme cruelty if the 
            individual has been subjected to--

                    ``(I) physical acts that resulted in, or threatened 
                to result in, physical injury to the individual;
                    ``(II) sexual abuse;
                    ``(III) sexual activity involving a dependent 
                child;
                    ``(IV) being forced as the caretaker relative of a 
                dependent child to engage in nonconsensual sexual acts 
                or activities;
                    ``(V) threats of, or attempts at, physical or 
                sexual abuse;
                    ``(VI) mental abuse; or
                    ``(VII) neglect or deprivation of medical care.

            ``(D) Rule of interpretation.--Subparagraph (A) shall not 
        be interpreted to require any State to provide assistance to 
        any individual for any period of time under the State program 
        funded under this part.
        ``(9) Denial of assistance for 10 years to a person found to 
    have fraudulently misrepresented residence in order to obtain 
    assistance in 2 or more states.--A State to which a grant is made 
    under section 403 shall not use any part of the grant to provide 
    cash assistance to an individual during the 10-year period that 
    begins on the date the individual is convicted in Federal or State 
    court of having made a fraudulent statement or representation with 
    respect 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.
        ``(10) Denial of assistance for fugitive felons and probation 
    and parole violators.--
            ``(A) In general.--A State to which a grant is made under 
        section 403 shall not use any part of the grant to provide 
        assistance to any individual who is--
                ``(i) fleeing to avoid prosecution, or custody or 
            confinement after conviction, under the laws of the place 
            from which the individual flees, for a crime, or an attempt 
            to commit a crime, which is a felony under the laws of the 
            place from which the individual flees, or which, in the 
            case of the State of New Jersey, is a high misdemeanor 
            under the laws of such State; or
                ``(ii) violating a condition of probation or parole 
            imposed under Federal or State law.
            ``(B) Exchange of information with law enforcement 
        agencies.--If a State to which a grant is made under section 
        403 establishes safeguards against the use or disclosure of 
        information about applicants or recipients of assistance under 
        the State program funded under this part, the safeguards shall 
        not prevent the State agency administering the program from 
        furnishing a Federal, State, or local law enforcement officer, 
        upon the request of the officer, with the current address of 
        any recipient if the officer furnishes the agency with the name 
        of the recipient and notifies the agency that--
                ``(i) the recipient--

                    ``(I) is described in subparagraph (A); or
                    ``(II) has information that is necessary for the 
                officer to conduct the official duties of the officer; 
                and

                ``(ii) the location or apprehension of the recipient is 
            within such official duties.
        ``(11) Denial of assistance for minor children who are absent 
    from the home for a significant period.--
            ``(A) In general.--A State to which a grant is made under 
        section 403 shall not use any part of the grant to provide 
        assistance for a minor child who has been, or is expected by a 
        parent (or other caretaker relative) of the child 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 submitted pursuant to section 402.
            ``(B) State authority to establish good cause exceptions.--
        The State may establish such good cause exceptions to 
        subparagraph (A) as the State considers appropriate if such 
        exceptions are provided for in the State plan submitted 
        pursuant to section 402.
            ``(C) Denial of assistance for relative who fails to notify 
        state agency of absence of child.--A State to which a grant is 
        made under section 403 shall not use any part of the grant to 
        provide assistance for an individual who is a parent (or other 
        caretaker relative) of a minor child and who fails to notify 
        the agency administering the State program funded under this 
        part of the absence of the minor child from the home for the 
        period specified in or provided for pursuant to subparagraph 
        (A), by the end of the 5-day period that begins with the date 
        that it becomes clear to the parent (or relative) that the 
        minor child will be absent for such period so specified or 
        provided for.
        ``(12) Income security payments not to be disregarded in 
    determining the amount of assistance to be provided to a family.--
    If a State to which a grant is made under section 403 uses any part 
    of the grant to provide assistance for any individual who is 
    receiving a payment under a State plan for old-age assistance 
    approved under section 2, a State program funded under part B that 
    provides cash payments for foster care, or the supplemental 
    security income program under title XVI, then the State shall not 
    disregard the payment in determining the amount of assistance to be 
    provided under the State program funded under this part, from funds 
    provided by the Federal Government, to the family of which the 
    individual is a member.
    ``(b) Aliens.--For special rules relating to the treatment of 
aliens, see section 402 of the Personal Responsibility and Work 
Opportunity Act of 1995.

``SEC. 409. PENALTIES.

    ``(a) In General.--Subject to this section:
        ``(1) Use of grant in violation of this part.--
            ``(A) General penalty.--If an audit conducted under chapter 
        75 of title 31, United States Code, finds that an amount paid 
        to a State under section 403 for a fiscal year has been used in 
        violation of this part, the Secretary shall reduce the grant 
        payable to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year quarter by the amount so 
        used.
            ``(B) Enhanced penalty for intentional violations.--If the 
        State does not prove to the satisfaction of the Secretary that 
        the State did not intend to use the amount in violation of this 
        part, the Secretary shall further reduce the grant payable to 
        the State under section 403(a)(1) for the immediately 
        succeeding fiscal year quarter by an amount equal to 5 percent 
        of the State family assistance grant.
        ``(2) Failure to submit required report.--
            ``(A) In general.--If the Secretary determines that a State 
        has not, within 1 month after the end of a fiscal quarter, 
        submitted the report required by section 411(a) for the quarter 
        year, the Secretary shall reduce the grant payable to the State 
        under section 403(a)(1) for the immediately succeeding fiscal 
        year by an amount equal to 4 percent of the State family 
        assistance grant.
            ``(B) Rescission of penalty.--The Secretary shall rescind a 
        penalty imposed on a State under subparagraph (A) with respect 
        to a report for a fiscal quarter if the State submits the 
        report before the end of the immediately succeeding fiscal 
        quarter.
        ``(3) Failure to satisfy minimum participation rates.--
            ``(A) In general.--If the Secretary determines that a State 
        to which a grant is made under section 403 for a fiscal year 
        has failed to comply with section 407(a) for the fiscal year, 
        the Secretary shall reduce the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to not more than 5 percent of the State family 
        assistance grant.
            ``(B) Penalty based on severity of failure.--The Secretary 
        shall impose reductions under subparagraph (A) based on the 
        degree of noncompliance.
        ``(4) Failure to participate in the income and eligibility 
    verification system.--If the Secretary determines that a State 
    program funded under this part is not participating during a fiscal 
    year in the income and eligibility verification system required by 
    section 1137, the Secretary shall reduce the grant payable to the 
    State under section 403(a)(1) for the immediately succeeding fiscal 
    year by an amount equal to not more than 2 percent of the State 
    family assistance grant.
        ``(5) Failure to comply with paternity establishment and child 
    support enforcement requirements under part d.--Notwithstanding any 
    other provision of this Act, if the Secretary determines that the 
    State agency that administers a program funded under this part does 
    not enforce the penalties requested by the agency administering 
    part D against recipients of assistance under the State program who 
    fail to cooperate in establishing paternity in accordance with such 
    part, the Secretary shall reduce the grant payable to the State 
    under section 403(a)(1) for the immediately succeeding fiscal year 
    (without regard to this section) by not more than 5 percent.
        ``(6) Failure to timely repay a federal loan fund for state 
    welfare programs.--If the Secretary determines that a State has 
    failed to repay any amount borrowed from the Federal Loan Fund for 
    State Welfare Programs established under section 406 within the 
    period of maturity applicable to theloan, plus any interest owed on 
the loan, the Secretary shall reduce the grant payable to the State 
under section 403(a)(1) for the immediately succeeding fiscal year 
quarter (without regard to this section) by the outstanding loan 
amount, plus the interest owed on the outstanding amount. The Secretary 
shall not forgive any outstanding loan amount or interest owed on the 
outstanding amount.
        ``(7) Failure of any state to maintain certain level of 
    historic effort.--
            ``(A) In general.--The Secretary shall reduce the grant 
        payable to the State under section 403(a)(1) for fiscal year 
        1997, 1998, 1999, 2000, or 2001 by the amount (if any) by which 
        qualified State expenditures for the then immediately preceding 
        fiscal year is less than the applicable percentage of historic 
        State expenditures with respect to the fiscal year.
            ``(B) Definitions.--As used in this paragraph:
                ``(i) Qualified state expenditures.--

                    ``(I) In general.--The term `qualified State 
                expenditures' means, with respect to a State and a 
                fiscal year, the total expenditures by the State during 
                the fiscal year, under all State programs, for any of 
                the following with respect to eligible families:

                        ``(aa) Cash assistance.
                        ``(bb) Child care assistance.
                        ``(cc) Educational activities designed to 
                    increase self-sufficiency, job training, and work.
                        ``(dd) Administrative costs.
                        ``(ee) Any other use of funds allowable under 
                    section 404(a)(1).

                    ``(II) Exclusion of transfers from other state and 
                local programs.--Such term does not include funding 
                supplanted by transfers from other State and local 
                programs.
                    ``(III) Eligible families.--As used in subclause 
                (I), the term `eligible families' means families 
                eligible for assistance under the State program funded 
                under this part, and families who would be eligible for 
                such assistance but for the application of paragraph 
                (2) or (8) of section 408(a) of this Act or section 402 
                of the Personal Responsibility and Work Opportunity Act 
                of 1995.

                ``(ii) Applicable percentage.--The term `applicable 
            percentage' means--

                    ``(I) for fiscal year 1996, 75 percent; and
                    ``(II) for fiscal years 1997, 1998, 1999, and 2000, 
                75 percent reduced (if appropriate) in accordance with 
                subparagraph (C)(iii).

                ``(iii) Historic state expenditures.--The term 
            `historic State expenditures' means, with respect to a 
            State and a fiscal year specified in subparagraph (A), the 
            lesser of--

                    ``(I) the expenditures by the State under parts A 
                and F (as in effect during fiscal year 1994) for fiscal 
                year 1994; or
                    ``(II) the amount which bears the same ratio to the 
                amount described in subclause (I) as--

                        ``(aa) the State family assistance grant for 
                    the fiscal year immediately preceding the fiscal 
                    year specified in subparagraph (A), plus the total 
                    amount required to be paid to the State under 
                    former section 403 for fiscal year 1994 with 
                    respect to amounts expended by the State for child 
                    care under subsection (g) or (i) of section 402 (as 
                    in effect during fiscal year 1994); bears to
                        ``(bb) the total amount required to be paid to 
                    the State under former section 403 (as in effect 
                    during fiscal year 1994) for fiscal year 1994.
            Such term does not include any expenditures under the State 
            plan approved under part A (as so in effect) on behalf of 
            individuals covered by a tribal family assistance plan 
            approved under section 412, as determined by the Secretary.
                ``(iv) Expenditures by the state.--The term 
            `expenditures by the State' does not include--

                    ``(I) any expenditures from amounts made available 
                by the Federal Government;
                    ``(II) State funds expended for the medicaid 
                program under title XIX; or
                    ``(III) any State funds which are used to match 
                Federal funds or are expended as a condition of 
                receiving Federal funds under Federal programs other 
                than under this title.

            ``(C) Applicable percentage reduced for states with best or 
        most improved performance in certain areas.--
                ``(i) Scoring of state performance.--Beginning with 
            fiscal year 1997, the Secretary shall assign to each State 
            a score that represents the performance of the State for 
            the fiscal year in each category described in clause (ii).
                ``(ii) Categories.--The categories described in this 
            clause are the following:

                    ``(I) Increasing the number of families that 
                received assistance under a State program funded under 
                this part in the fiscal year, and that, during the 
                fiscal year, become ineligible for such assistance as a 
                result of unsubsidized employment.
                    ``(II) Reducing the percentage of families that, 
                within 18 months after becoming ineligible for 
                assistance under the State program funded under this 
                part, become eligible for such assistance.
                    ``(III) Increasing the average earnings of families 
                that receive assistance under this part.

                    ``(IV) Reducing the percentage of children in the 
                State that receive assistance under the State program 
                funded under this part.

                ``(iii) Reduction of maintenance of effort threshold.--

                    ``(I) Reduction for states with 5 greatest scores 
                in each category of performance.--The applicable 
                percentage for a State for a fiscal year shall be 
                reduced by 2 percentage points, with respect to each 
                category described in clause (ii) for which the score 
                assigned to the State under clause (i) for the 
                immediately preceding fiscal year is 1 of the 5 highest 
                scores so assigned to States.
                    ``(II) Reduction for states with 5 greatest 
                improvement in scores in each category of 
                performance.--The applicable percentage for a State for 
                a fiscal year shall be reduced by 2 percentage points 
                for a State for a fiscal year, with respect to each 
                category described in clause (ii) for which the 
                difference between the score assigned to the State 
                under clause (i) for the immediately preceding fiscal 
                year and the score so assigned to the State for the 2nd 
                preceding fiscal year is 1 of the 5 greatest such 
                differences.
                    ``(III) Limitation on reduction.--The applicable 
                percentage for a State for a fiscal year may not be 
                reduced by more than 8 percentage points pursuant to 
                this clause.

        ``(8) Substantial noncompliance of state child support 
    enforcement program with requirements of part d.--
            ``(A) In general.--If a State program operated under part D 
        is found as a result of a review conducted under section 
        452(a)(4) not to have complied substantially with the 
        requirements of such part for any quarter, and the Secretary 
        determines that the program is not complying substantially with 
        such requirements at the time the finding is made, the 
        Secretary shall reduce the grant payable to the State under 
        section 403(a)(1) for the quarter and each subsequent quarter 
        that ends before the 1st quarter throughout which the program 
        is found not to be in substantial compliance with such 
        requirements by--
                ``(i) not less than 1 nor more than 2 percent;
                ``(ii) not less than 2 nor more than 3 percent, if the 
            finding is the 2nd consecutive such finding made as a 
            result of such a review; or
                ``(iii) not less than 3 nor more than 5 percent, if the 
            finding is the 3rd or a subsequent consecutive such finding 
            made as a result of such a review.
            ``(B) Disregard of noncompliance which is of a technical 
        nature.--For purposes of subparagraph (A) and section 
        452(a)(4), a State which is not in full compliance with the 
        requirements of this part shall be determined to be in 
        substantial compliance with such requirements only if the 
        Secretary determines that any noncompliance with such 
        requirements is of a technical nature which does not adversely 
        affect the performance of the State's program operated under 
        part D.
        ``(9) Failure of state receiving amounts from contingency fund 
    to maintain 100 percent of historic effort.--If, at the end of any 
    fiscal year during which amounts from the Contingency Fund for 
    State Welfare Programs have been paid to a State, the Secretary 
    finds that the State has failed, during the fiscal year, to expend 
    under the State program funded under this part an amount equal to 
    at least 100 percent of the level of historic State expenditures 
    (as defined in paragraph (7)(B)(iii) of this subsection) with 
    respect to the fiscal year, the Secretary shall reduce the grant 
    payable to the State under section 403(a)(1) for the immediately 
    succeeding fiscal year by the total of the amounts so paid to the 
    State.
        ``(10) Failure to expend additional state funds to replace 
    grant reductions.--If the grant payable to a State under section 
    403(a)(1) for a fiscal year is reduced by reason of this 
    subsection, the State shall, during the immediately succeeding 
    fiscal year, expend under the State program funded under this part 
    an amount equal to the total amount of such reductions.
    ``(b) Reasonable Cause Exception.--
        ``(1) In general.--The Secretary may not impose a penalty on a 
    State under subsection (a) with respect to a requirement if the 
    Secretary determines that the State has reasonable cause for 
    failing to comply with the requirement.
        ``(2) Exception.--Paragraph (1) of this subsection shall not 
    apply to any penalty under subsection (a)(7).
    ``(c) Corrective Compliance Plan.--
        ``(1) In general.--
            ``(A) Notification of violation.--Before imposing a penalty 
        against a State under subsection (a) with respect to a 
        violation of this part, the Secretary shall notify the State of 
        the violation and allow the State the opportunity to enter into 
        a corrective compliance plan in accordance with this subsection 
        which outlines how the State will correct the violation and how 
        the State will insure continuing compliance with this part.
            ``(B) 60-day period to propose a corrective compliance 
        plan.--During the 60-day period that begins on the date the 
        State receives a notice provided under subparagraph (A) with 
        respect to a violation, the State may submit to the Federal 
        Government a corrective compliance plan to correct the 
        violation.
            ``(C) Consultation about modifications.--During the 60-day 
        period that begins with the date the Secretary receives a 
        corrective compliance plan submitted by a State in accordance 
        with subparagraph (B), the Secretary may consult with the State 
        on modifications to the plan.
            ``(D) Acceptance of plan.-- A corrective compliance plan 
        submitted by a State in accordance with subparagraph (B) is 
        deemed to be accepted by the Secretary if theSecretary does not 
accept or reject the plan during 60-day period that begins on the date 
the plan is submitted.
        ``(2) Effect of correcting violation.--The Secretary may not 
    impose any penalty under subsection (a) with respect to any 
    violation covered by a State corrective compliance plan accepted by 
    the Secretary if the State corrects the violation pursuant to the 
    plan.
        ``(3) Effect of failing to correct violation.--The Secretary 
    shall assess some or all of a penalty imposed on a State under 
    subsection (a) with respect to a violation if the State does not, 
    in a timely manner, correct the violation pursuant to a State 
    corrective compliance plan accepted by the Secretary.
    ``(d) Limitation on Amount of Penalty.--
        ``(1) In general.--In imposing the penalties described in 
    subsection (a), the Secretary shall not reduce any quarterly 
    payment to a State by more than 25 percent.
        ``(2) Carryforward of unrecovered penalties.--To the extent 
    that paragraph (1) of this subsection prevents the Secretary from 
    recovering during a fiscal year the full amount of penalties 
    imposed on a State under subsection (a) of this section for a prior 
    fiscal year, the Secretary shall apply any remaining amount of such 
    penalties to the grant payable to the State under section 403(a)(1) 
    for the immediately succeeding fiscal year.

``SEC. 410. APPEAL OF ADVERSE DECISION.

    ``(a) In General.--Within 5 days after the date the Secretary takes 
any adverse action under this part with respect to a State, the 
Secretary shall notify the chief executive officer of the State of the 
adverse action, including any action with respect to the State plan 
submitted under section 402 or the imposition of a penalty under 
section 409.
    ``(b) Administrative Review.--
        ``(1) In general.--Within 60 days after the date a State 
    receives notice under subsection (a) of an adverse action, the 
    State may appeal the action, in whole or in part, to the 
    Departmental Appeals Board established in the Department of Health 
    and Human Services (in this section referred to as the `Board') by 
    filing an appeal with the Board.
        ``(2) Procedural rules.--The Board shall consider an appeal 
    filed by a State under paragraph (1) on the basis of such 
    documentation as the State may submit and as the Board may require 
    to support the final decision of the Board. In deciding whether to 
    uphold an adverse action or any portion of such an action, the 
    Board shall conduct a thorough review of the issues and take into 
    account all relevant evidence. The Board shall make a final 
    determination with respect to an appeal filed under paragraph (1) 
    not less than 60 days after the date the appeal is filed.
    ``(c) Judicial Review of Adverse Decision.--
        ``(1) In general.--Within 90 days after the date of a final 
    decision by the Board under this section with respect to an adverse 
    action taken against a State, the State may obtain judicial review 
    of the final decision (and the findings incorporated into the final 
    decision) by filing an action in--
            ``(A) the district court of the United States for the 
        judicial district in which the principal or headquarters office 
        of the State agency is located; or
            ``(B) the United States District Court for the District of 
        Columbia.
        ``(2) Procedural rules.--The district court in which an action 
    is filed under paragraph (1) shall review the final decision of the 
    Board on the record established in the administrative proceeding, 
    in accordance with the standards of review prescribed by 
    subparagraphs (A) through (E) of section 706(2) of title 5, United 
    States Code. The review shall be on the basis of the documents and 
    supporting data submitted to the Board.

``SEC. 411. DATA COLLECTION AND REPORTING.

    ``(a) Quarterly Reports by States.--
        ``(1) General reporting requirement.--
            ``(A) Contents of report.--Beginning July 1, 1996, each 
        State shall collect on a monthly basis, and report to the 
        Secretary on a quarterly basis, the following disaggregated 
        case record information on the families receiving assistance 
        under the State program funded under this part:
                ``(i) The county of residence of the family.
                ``(ii) Whether a child receiving such assistance or an 
            adult in the family is disabled.
                ``(iii) The ages of the members of such families.
                ``(iv) The number of individuals in the family, and the 
            relation of each family member to the youngest child in the 
            family.
                ``(v) The employment status and earnings of the 
            employed adult in the family.
                ``(vi) The marital status of the adults in the family, 
            including whether such adults have never married, are 
            widowed, or are divorced.
                ``(vii) The race and educational status of each adult 
            in the family.
                ``(viii) The race and educational status of each child 
            in the family.
                ``(ix) Whether the family received subsidized housing, 
            medical assistance under the State plan approved under 
            title XIX, food stamps, or subsidized child care, and if 
            the latter 2, the amount received.
                ``(x) The number of months that the family has received 
            each type of assistance under the program.
                ``(xi) If the adults participated in, and the number of 
            hours per week of participation in, the following 
            activities:

                    ``(I) Education.
                    ``(II) Subsidized private sector employment.
                    ``(III) Unsubsidized employment.
                    ``(IV) Public sector employment, work experience, 
                or community service.
                    ``(V) Job search.
                    ``(VI) Job skills training or on-the-job training.
                    ``(VII) Vocational education.

                ``(xii) Information necessary to calculate 
            participation rates under section 407.
                ``(xiii) The type and amount of assistance received 
            under the program, including the amount of and reason for 
            any reduction of assistance (including sanctions).
                ``(xiv) From a sample of closed cases, whether the 
            family left the program, and if so, whether the family left 
            due to--

                    ``(I) employment;
                    ``(II) marriage;
                    ``(III) the prohibition set forth in section 
                408(a)(8);
                    ``(IV) sanction; or
                    ``(V) State policy.

                ``(xv) Any amount of unearned income received by any 
            member of the family.
                ``(xvi) The citizenship of the members of the family.
            ``(B) Use of estimates.--
                ``(i) Authority.--A State may comply with subparagraph 
            (A) by submitting an estimate which is obtained through the 
            use of scientifically acceptable sampling methods approved 
            by the Secretary.
                ``(ii) Sampling and other methods.--The Secretary shall 
            provide the States with such case sampling plans and data 
            collection procedures as the Secretary deems necessary to 
            produce statistically valid estimates of the performance of 
            State programs funded under this part. The Secretary may 
            develop and implement procedures for verifying the quality 
            of data submitted by the States.
        ``(2) Report on use of federal funds to cover administrative 
    costs and overhead.--The report required by paragraph (1) for a 
    fiscal quarter shall include a statement of the percentage of the 
    funds paid to the State under this part for the quarter that are 
    used to cover administrative costs or overhead.
        ``(3) Report on state expenditures on programs for needy 
    families.--The report required by paragraph (1) for a fiscal 
    quarter shall include a statement of the total amount expended by 
    the State during the quarter on programs for needy families.
        ``(4) Report on noncustodial parents participating in work 
    activities.--The report required by paragraph (1) for a fiscal 
    quarter shall include the number of noncustodial parents in the 
    State who participated in work activities (as defined in section 
    407(d)) during the quarter.
        ``(5) Report on transitional services.--The report required by 
    paragraph (1) for a fiscal quarter shall include the total amount 
    expended by the State during the quarter to provide transitional 
    services to a family that has ceased to receive assistance under 
    this part because of employment, along with a description of such 
    services.
        ``(6) Regulations.--The Secretary shall prescribe such 
    regulations as may be necessary to define the data elements with 
    respect to which reports are required by this subsection.
    ``(b) Annual Reports to the Congress by the Secretary.--Not later 
than 6 months after the end of fiscal year 1997, and each fiscal year 
thereafter, the Secretary shall transmit to the Congress a report 
describing--
        ``(1) whether the States are meeting--
            ``(A) the participation rates described in section 407(a); 
        and
            ``(B) the objectives of--
                ``(i) increasing employment and earnings of needy 
            families, and child support collections; and
                ``(ii) decreasing out-of-wedlock pregnancies and child 
            poverty;
        ``(2) the demographic and financial characteristics of families 
    applying for assistance, families receiving assistance, and 
    families that become ineligible to receive assistance;
        ``(3) the characteristics of each State program funded under 
    this part; and
        ``(4) the trends in employment and earnings of needy families 
    with minor children living at home.

``SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

    ``(a) Grants for Indian Tribes.--
        ``(1) Tribal family assistance grant.--
            ``(A) In general.--For each of fiscal years 1997, 1998, 
        1999, and 2000, the Secretary shall pay to each Indian tribe 
        that has an approved tribal family assistance plan a tribal 
        family assistance grant for the fiscal year in an amount equal 
        to the amount determined under subparagraph (B), and shall 
        reduce the grant payable under section 403(a)(1) to any State 
        in which lies the service area or areas of the Indian tribe by 
        that portion of the amount so determined that is attributable 
        to expenditures by the State.
            ``(B) Amount determined.--
                ``(i) In general.--The amount determined under this 
            subparagraph is an amount equal to the total amount of the 
            Federal payments to a State or States under section 403 (as 
            in effect during such fiscal year) for fiscal year 1994 
            attributable to expenditures (other than child care 
            expenditures) by the State or States under parts A and F 
            (as so in effect) for fiscal year 1994 for Indian families 
            residing in the service area or areas identified by the 
            Indian tribe pursuant to subsection (b)(1)(C) of this 
            section.
                ``(ii) Use of state submitted data.--

                    ``(I) In general.--The Secretary shall use State 
                submitted data to make each determination under clause 
                (i).
                    ``(II) Disagreement with determination.--If an 
                Indian tribe or tribal organization disagrees with 
                State submitted data described undersubclause (I), the 
Indian tribe or tribal organization may submit to the Secretary such 
additional information as may be relevant to making the determination 
under clause (i) and the Secretary may consider such information before 
making such determination.
        ``(2) Grants for indian tribes that received jobs funds.--
            ``(A) 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 
        the Indian tribe in fiscal year 1994 under section 482(i) (as 
        in effect during fiscal year 1994).
            ``(B) Eligible indian tribe.--For purposes of subparagraph 
        (A), 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 fiscal year 1995).
            ``(C) Use of grant.--Each Indian tribe to which a grant is 
        made under this paragraph shall use the grant for the purpose 
        of operating a program to make work activities available to 
        members of the Indian tribe.
            ``(D) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there are 
        appropriated $7,638,474 for each fiscal year specified in 
        subparagraph (A) for grants under subparagraph (A).
    ``(b) 3-Year Tribal Family Assistance Plan.--
        ``(1) In general.--Any Indian tribe that desires to receive a 
    tribal family assistance grant shall submit to the Secretary a 3-
    year tribal family assistance plan that--
            ``(A) outlines the Indian tribe's approach to providing 
        welfare-related services for the 3-year period, consistent with 
        this section;
            ``(B) specifies whether the welfare-related services 
        provided under the plan will be provided by the Indian tribe or 
        through agreements, contracts, or compacts with intertribal 
        consortia, States, or other entities;
            ``(C) identifies the population and service area or areas 
        to be served by such plan;
            ``(D) provides that a family receiving assistance under the 
        plan may not receive duplicative assistance from other State or 
        tribal programs funded under this part;
            ``(E) identifies the employment opportunities in or near 
        the service area or areas of the Indian tribe and the manner in 
        which the Indian tribe will cooperate and participate in 
        enhancing such opportunities for recipients of assistance under 
        the plan consistent with any applicable State standards; and
            ``(F) applies the fiscal accountability provisions of 
        section 5(f)(1) of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450c(f)(1)), relating to the 
        submission of a single-agency audit report required by chapter 
        75 of title 31, United States Code.
        ``(2) Approval.--The Secretary shall approve each tribal family 
    assistance plan submitted in accordance with paragraph (1).
        ``(3) Consortium of tribes.--Nothing in this section shall 
    preclude the development and submission of a single tribal family 
    assistance plan by the participating Indian tribes of an 
    intertribal consortium.
    ``(c) Minimum Work Participation Requirements and Time Limits.--The 
Secretary, with the participation of Indian tribes, shall establish for 
each Indian tribe receiving a grant under this section minimum work 
participation requirements, appropriate time limits for receipt of 
welfare-related services under the grant, and penalties against 
individuals--
        ``(1) consistent with the purposes of this section;
        ``(2) consistent with the economic conditions and resources 
    available to each tribe; and
        ``(3) similar to comparable provisions in section 407(d).
    ``(d) Emergency Assistance.--Nothing in this section 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 maintain program funding 
accountability consistent with--
        ``(1) generally accepted accounting principles; and
        ``(2) the requirements of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450 et seq.).
    ``(f) Penalties.--
        ``(1) Subsections (a)(1), (a)(6), and (b) of section 409, shall 
    apply to an Indian tribe with an approved 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 substituting `meet minimum work 
    participation requirements 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 Alaska.--
        ``(1) In general.--Notwithstanding any other provision of this 
    section, and except as provided in paragraph (2), an Indian tribe 
    in the State of Alaska that receives a tribal family assistance 
    grant under this section shall use the grant to operate a program 
    in accordance with requirements comparable to the requirements 
    applicable to the program of the State of Alaska funded under this 
    part. Comparability of programs shall be established on the basis 
    of program criteria developed by the Secretary 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 STUDIES.

    ``(a) Research.--The Secretary shall conduct research on the 
benefits, effects, and costs of operating different State 
programsfunded under this part, including time limits relating to 
eligibility for assistance. The research shall include studies on the 
effects of different programs and the operation of such programs on 
welfare dependency, 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.
    ``(b) Development and Evaluation of Innovative Approaches To 
Reducing Welfare Dependency and Increasing Child Well-Being.--
        ``(1) In general.--The Secretary may assist States in 
    developing, and shall evaluate, innovative approaches for reducing 
    welfare dependency and increasing 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 assistance to carry out the approaches 
    developed pursuant to this paragraph.
        ``(2) Evaluations.--In performing the evaluations under 
    paragraph (1), the Secretary shall, to the maximum extent feasible, 
    use random assignment as an evaluation methodology.
    ``(c) Dissemination of Information.--The Secretary shall develop 
innovative methods of disseminating information on any research, 
evaluations, and studies conducted 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.--
        ``(1) Annual ranking of states.--The Secretary 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, diverting 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 children 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, assistance 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.
    ``(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 ranking factors:
                ``(i) Absolute out-of-wedlock ratios.--The ratio 
            represented by--

                    ``(I) the total number of out-of-wedlock births in 
                families receiving assistance under the State program 
                under this part in the State for the most recent fiscal 
                year for which information 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 available and the ratio 
            with respect to the State for the immediately preceding 
            year.
        ``(2) Annual review.--The Secretary shall review the programs 
    of the 5 States most recently ranked highest under paragraph (1) 
    and the 5 States most recently ranked the lowest under paragraph 
    (1).
    ``(f) State-Initiated Evaluations.--A State shall be eligible to 
receive funding to evaluate the State program funded under this part 
if--
        ``(1) the State submits a proposal to the Secretary 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) Funding of Studies and Demonstrations.--
        ``(1) In general.--Out of any money in the Treasury of the 
    United States not otherwise appropriated, there are appropriated 
    $15,000,000 for each fiscal year specified in section 403(a)(1) for 
    the purpose 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 dependency and increasing the 
        well-being of minor children under subsection (b);
            ``(C) the Federal share of any State-initiated study 
        approved under subsection (f); and
            ``(D) an amount determined by the Secretary 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 continued after such date.
        ``(2) Allocation.--Of the amount appropriated 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).

``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 interested persons to evaluate the impact of 
the amendments made by title I of the Personal Responsibility and Work 
Opportunity Act of 1995 on a random national sample of recipients of 
assistance under State programs funded 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 
subsection (a).

``SEC. 415. WAIVERS.

    ``(a) Continuation of Waivers.--
        ``(1) Waivers in effect on date of enactment 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 effect as of the date of the 
    enactment of the Personal Responsibility and Work Opportunity Act 
    of 1995, the amendments made by such Act shall not apply with 
    respect 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.--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 
    submitted to the Secretary before the date of the enactment of the 
    Personal Responsibility and Work Opportunity Act of 1995 and 
    approved by the Secretary before the effective date of this title, 
    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 Personal Responsibility and Work Opportunity Act of 1995) 
    that are greater than would occur in the absence of the waiver, 
    such amendments shall not apply with respect 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.
        ``(3) Financing limitation.--Notwithstanding any other 
    provision of law, beginning with fiscal year 1996, a State 
    operating under a waiver described 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 expiration 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 available 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 harmless for 
        accrued cost neutrality liabilities incurred under the waiver.
            ``(B) Date described.--The date described in this 
        subparagraph is the later of--
                ``(i) January 1, 1996; or
                ``(ii) 90 days following the adjournment of the first 
            regular session of the State legislature that begins after 
            the date of the enactment of the Personal Responsibility 
            and Work Opportunity Act of 1995.
    ``(c) Secretarial Encouragement of Current Waivers.--The Secretary 
shall encourage any State operating 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 Support within the Department of 
Health and Human Services, who shall be appointed by the President, by 
and with the advice and consent of the Senate, and who shall be in 
addition to any other Assistant Secretary of Health and Human Services 
provided for by law.

``SEC. 417. LIMITATION ON FEDERAL AUTHORITY.

    ``No officer or employee of the Federal Government may regulate the 
conduct of States under this part or enforce any provision of this 
part, except to the extent expressly provided in this part.

``SEC. 418. DEFINITIONS.

    ``As used in this part:
        ``(1) Adult.--The term `adult' means an individual 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 organization.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the terms `Indian', `Indian tribe', and `tribal organization' 
        have the meaning 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 Association.
        ``(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.''.
    SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, 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 
        organizations; and
            (B) provide beneficiaries of assistance under the programs 
        described in subparagraphs (A) and (B)(ii) of paragraph (2) 
        with certificates, vouchers, or other forms of disbursement 
        which are redeemable with such organizations.
        (2) Programs described.--The programs described in this 
    paragraph are the following programs:
            (A) A State program funded under part A of title IV of the 
        Social Security Act (as amended by section 103 of this Act).
            (B) Any other program established or modified under title 
        I, II, or VI of this Act, that--
                (i) permits contracts with organizations; 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 beneficiaries of assistance funded 
under such program.
    (c) Nondiscrimination Against Religious Organizations.--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 
program described in subsection (a)(2) so long as the programs are 
implemented consistent with the Establishment Clause of the United 
States Constitution. Except as provided in subsection (k), neither the 
Federal Government nor a State receiving funds under such programs 
shall discriminate against an organization which is or applies to be a 
contractor to provide assistance, or which accepts certificates, 
vouchers, or other forms of disbursement, on the basis that the 
organization has a religious character.
    (d) Religious Character and Freedom.--
        (1) Religious organizations.--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 Federal, 
    State, and local governments, including such organization's control 
    over the definition, development, practice, and expression of its 
    religious beliefs.
        (2) Additional safeguards.--Neither the Federal Government nor 
    a State shall require a religious organization to--
            (A) alter its form of internal governance; or
            (B) remove religious art, icons, scripture, or other 
        symbols;
    in order to be eligible to contract to provide assistance, or to 
    accept certificates, vouchers, or other forms of disbursement, 
    funded under a program described in subsection (a)(2).
    (e) Rights of Beneficiaries of Assistance.--
        (1) In general.--If an individual described in paragraph (2) 
    has an objection to the religious character 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 
    individual and the value of which is not less than the value of the 
    assistance which the individual would have received from such 
    organization.
        (2) Individual described.--An individual described in this 
    paragraph is an individual who receives, applies for, or requests 
    to apply for, assistance under a program described in subsection 
    (a)(2).
    (f) Employment Practices.--A religious organization's exemption 
provided under section 702 of the Civil Rights Act of 1964 (42 U.S.C. 
2000e-1a) regarding employment practices shall not beaffected by its 
participation in, or receipt of funds from, programs described in 
subsection (a)(2).
    (g) Nondiscrimination Against Beneficiaries.--Except as otherwise 
provided in law, a religious organization shall not discriminate 
against an individual in regard to rendering assistance funded under 
any program described in subsection (a)(2) on the basis of religion, a 
religious belief, or refusal to actively participate in a religious 
practice.
    (h) Fiscal Accountability.--
        (1) In general.--Except as provided in paragraph (2), any 
    religious organization contracting to provide assistance funded 
    under any program described in subsection (a)(2) shall be subject 
    to the same regulations as other contractors to account in accord 
    with generally accepted auditing principles for the use of such 
    funds provided under such programs.
        (2) Limited audit.--If such organization segregates Federal 
    funds provided under such programs into separate accounts, then 
    only the financial assistance 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. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS FOR 
      THEIR GRANDCHILDREN.
    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Commerce, 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 significant data, in connection with its decennial census 
and its mid-decade census, concerning the growing trend of grandparents 
who are the primary caregivers for their grandchildren.
    (b) Expanded Census Question.--In carrying out 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 temporarily provides a 
    home for a grandchild for a period of weeks or months during 
    periods of parental distress.
        (2) A household in which a grandparent provides a home for a 
    grandchild and serves as the primary caregiver for the grandchild.

SEC. 106. REPORT ON DATA PROCESSING.

    (a) In General.--Within 6 months after the date of the enactment of 
this Act, the Secretary of Health and 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 management in the administration 
    of State programs under part A of title IV of the Social Security 
    Act (whether in effect before or after October 1, 1995); and
        (2) what would be required to establish a system capable of--
            (A) tracking participants in public programs 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 system 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 establishing such a system.

SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

    (a) Study.--The Secretary shall, in cooperation with the States, 
study and analyze outcomes measures for evaluating the success of the 
States in moving individuals out of the welfare system through 
employment as an alternative 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 
findings of the study required by subsection (a).

SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY 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 amended--
            (A) by inserting ``an agency administering a program funded 
        under part A of title IV or'' before ``an agency operating''; 
        and
            (B) by striking ``A or D of title IV of this Act'' and 
        inserting ``D of such title''.
        (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by 
    inserting ``under a State program funded under'' before ``part A of 
    title IV''.
    (b) 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 dependent 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--
            (A) by striking ``aid under a State plan approved'' 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 
    provided 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 inserting 
    ``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 agency administering the 
        State plan approved under this part'' after ``found''; and
            (C) by striking ``under section 402(a)(26)'' and inserting 
        ``with the State in establishing paternity''.
        (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--
            (A) by striking ``under section 402(a)(26)'' and inserting 
        ``pursuant to section 408(a)(4)''; and
            (B) by striking ``; except that this paragraph 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 approved'' and inserting 
    ``assistance under a State program 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)(4)''.
        (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--
            (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 approved under section 402 of this Act'' 
and inserting ``assistance under a State program funded under part A of 
title IV''.
    (e) Amendments to Title XI.--
        (1) Section 1108 (42 U.S.C. 1308) is amended--
            (A) by redesignating subsection (c) as subsection (g);
            (B) 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 and B 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 entitled to receive 
    from the Secretary for each fiscal 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 programs funded under parts A 
        and B of title IV; exceeds
            ``(B) the sum of--
                ``(i) the total amount required to be paid to the 
            territory (other than with respect to child care) under 
            former section 403 (as in effect on September 30, 1995) for 
            fiscal year 1995, which shall be determined 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 pursuant 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 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 American Samoa.
        ``(2) Ceiling amount.--The term `ceiling amount' means, with 
    respect to a territory and a fiscal 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 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 respect to a territory and a fiscal 
    year, the total amount appropriated pursuant to subsection (d)(3) 
    for the fiscal year for payment to the territory.
        ``(5) Total amount expended by the territory.--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.
        ``(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 appropriations.--For 
    grants under paragraph (1), there are authorized to be appropriated 
    to the Secretary 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 Programs.--Notwithstanding 
any other provision of this Act, any territory to which an amount is 
paid under any provision 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 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 pursuant 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 paragraph (1).''; and
            (C) by striking subsections (d) and (e).
        (2) Section 1109 (42 U.S.C. 1309) is amended by striking ``or 
    part A of title IV,''.
        (3) Section 1115 (42 U.S.C. 1315) is amended--
            (A) in subsection (a)(2)--
                (i) by inserting ``(A)'' after ``(2)'';
                (ii) by striking ``403,'';
                (iii) by striking the period at the end and inserting 
            ``, and''; and
                (iv) by adding at the end the following new 
            subparagraph:
        ``(B) costs of such project which would not otherwise be a 
    permissible use of funds under part A of title IV and which are not 
    included as part of the costs of projects under section 1110, shall 
    to the extent and for the period prescribed by the Secretary, be 
    regarded as a permissible use of funds under such part.''; and
            (B) in subsection (c)(3), by striking ``under the program 
        of aid to families with dependent children'' and inserting 
        ``part A of such title''.
        (4) Section 1116 (42 U.S.C. 1316) is amended--
            (A) in each of subsections (a)(1), (b), and (d), by 
        striking ``or part A of title IV,''; and
            (B) in subsection (a)(3), by striking ``404,''.
        (5) Section 1118 (42 U.S.C. 1318) is amended--
            (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 respect to part A of title IV''.
        (6) Section 1119 (42 U.S.C. 1319) is amended--
            (A) by striking ``or part A of title IV''; and
            (B) by striking ``403(a),''.
        (7) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by 
    striking ``or part A of title IV,''.
        (8) Section 1136 (42 U.S.C. 1320b-6) is repealed.
        (9) Section 1137 (42 U.S.C. 1320b-7) is amended--
            (A) in subsection (b), by striking paragraph (1) and 
        inserting the following:
        ``(1) any State program funded under part A of title IV of this 
    Act;''; and
            (B) in subsection (d)(1)(B)--
                (i) by striking ``In this subsection--'' and all that 
            follows through ``(ii) in'' and inserting ``In this 
            subsection, in'';
                (ii) by redesignating subclauses (I), (II), and (III) 
            as clauses (i), (ii), and (iii); and
                (iii) by moving such redesignated material 2 ems to the 
            left.
    (f) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C. 
1352(a)(7)) is amended by striking ``aid to families with dependent 
children under the State plan approved under section 402 of this Act'' 
and inserting ``assistance under a State program funded under part A of 
title IV''.
    (g) Amendment to Title XVI as in Effect With Respect to the 
Territories.--Section 1602(a)(11), as in effect without regard to the 
amendment made by section 301 of the Social Security Amendments of 1972 
(42 U.S.C. 1382 note), is amended by striking ``aid under the State 
plan approved'' and inserting ``assistance under a State program 
funded''.
    (h) Amendment to Title XVI as in Effect With Respect to the 
States.--Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is amended to 
read as follows: ``(A) a State program funded under part A of title 
IV,''.
    (i) Amendment to Title XIX.--Section 1902(j) (42 U.S.C. 1396a(j)) 
is amended by striking ``1108(c)'' and inserting ``1108(g)''.
    SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 AND 
      RELATED PROVISIONS.
    (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is 
amended--
        (1) in the second sentence of subsection (a), by striking 
    ``plan approved'' and all that follows through ``title IV of the 
    Social Security Act'' and inserting ``program funded under part A 
    of title IV of the Social Security Act (42 U.S.C. 601 et seq.)'';
        (2) in subsection (d)--
            (A) in paragraph (5), by striking ``assistance to families 
        with dependent children'' and inserting ``assistance under a 
        State program funded''; and
            (B) by striking paragraph (13) and redesignating paragraphs 
        (14), (15), and (16) as paragraphs (13), (14), and (15), 
        respectively;
        (3) in subsection (j), by striking ``plan approved under part A 
    of title IV of such Act (42 U.S.C. 601 et seq.)'' and inserting 
    ``program funded under part A of title IV of the Act (42 U.S.C. 601 
    et seq.)''; and
        (4) by striking subsection (m).
    (b) Section 6 of such Act (7 U.S.C. 2015) is amended--
        (1) in subsection (c)(5), by striking ``the State plan 
    approved'' and inserting ``the State program funded''; and
        (2) in subsection (e)(6), by striking ``aid to families with 
    dependent children'' and inserting ``benefits under a State program 
    funded''.
    (c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended 
by striking ``State plans under the Aid to Families with Dependent 
Children Program under'' and inserting ``State programs funded under 
part A of''.
    (d) Section 17 of such Act (7 U.S.C. 2026) is amended--
        (1) in the first sentence of subsection (b)(1)(A), by striking 
    ``to aid to families with dependent children under part A of title 
    IV of the Social Security Act'' and inserting ``or are receiving 
    assistance under a State program funded under part A of title IV of 
    the Social Security Act (42 U.S.C. 601 et seq.)''; and
        (2) in subsection (b)(3), by adding at the end the following 
    new subparagraph:
         ``(I) The Secretary may not grant a waiver under this 
    paragraph on or after October 1, 1995. Any reference in this 
    paragraph to a provision of title IV of the Social Security Act 
    shall be deemed to be a reference to such provision as in effect on 
    September 30, 1995.'';
    (e) Section 20 of such Act (7 U.S.C. 2029) is amended--
        (1) in subsection (a)(2)(B) by striking ``operating--'' and all 
    that follows through ``(ii) any other'' and inserting ``operating 
    any''; and
        (2) in subsection (b)--
            (A) in paragraph (1)--
                (i) by striking ``(b)(1) A household'' and inserting 
            ``(b) A household''; and
                (ii) in subparagraph (B), by striking ``training 
            program'' and inserting ``activity'';
            (B) by striking paragraph (2); and
            (C) by redesignating subparagraphs (A) through (F) as 
        paragraphs (1) through (6), respectively.
    (f) Section 5(h)(1) of the Agriculture and Consumer Protection Act 
of 1973 (Public Law 93-186; 7 U.S.C. 612c note) is amended by striking 
``the program for aid to families with dependent children'' and 
inserting ``the State program funded''.
    (g) Section 9 of the National School Lunch Act (42 U.S.C. 1758) is 
amended--
        (1) in subsection (b)--
            (A) in paragraph (2)(C)(ii)(II)--
                (i) by striking ``program for aid to families with 
            dependent children'' and inserting ``State program 
            funded''; and
                (ii) by inserting before the period at the end the 
            following: ``that the Secretary determines complies with 
            standards established by the Secretary that ensure that the 
            standards under the State program are comparable to or more 
            restrictive than those in effect on June 1, 1995''; and
            (B) in paragraph (6)--
                (i) in subparagraph (A)(ii)--

                    (I) by striking ``an AFDC assistance unit (under 
                the aid to families with dependent children program 
                authorized'' and inserting ``a family (under the State 
                program funded''; and
                    (II) by striking ``, in a State'' and all that 
                follows through ``9902(2)))'' and inserting ``that the 
                Secretary determines complies with standards 
                established by the Secretary that ensure that the 
                standards under the State program are comparable to or 
                more restrictive than those in effect on June 1, 
                1995''; and

                (ii) in subparagraph (B), by striking ``aid to families 
            with dependent children'' and inserting ``assistance under 
            the State program funded under part A of title IV of the 
            Social Security Act (42 U.S.C. 601 et seq.) that the 
            Secretary determines complies with standards established by 
            the Secretary that ensure that the standards under the 
            State program are comparable to or more restrictive than 
            those in effect on June 1, 1995''; and
        (2) in subsection (d)(2)(C)--
            (A) by striking ``program for aid to families with 
        dependent children'' and inserting ``State program funded''; 
        and
            (B) by inserting before the period at the end the 
        following: ``that the Secretary determines complies with 
        standards established by the Secretary that ensure that the 
        standards under the State program are comparable to or more 
        restrictive than those in effect on June 1, 1995''.
    (h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
        (1) by striking ``program for aid to families with dependent 
    children established'' and inserting ``State program funded''; and
        (2) by inserting before the semicolon the following: ``that the 
    Secretary determines complies with standards established by the 
    Secretary that ensure that the standards under the State program 
    are comparable to or more restrictive than those in effect on June 
    1, 1995''.

SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

    (a) Subsection (b) of section 508 of the Unemployment Compensation 
Amendments of 1976 (42 U.S.C. 603a; Public Law 94-566; 90 Stat. 2689) 
is amended to read as follows:
    ``(b) Provision for Reimbursement of Expenses.--For purposes of 
section 455 of the Social Security Act, expenses incurred to reimburse 
State employment offices for furnishing information requested of such 
offices--
        ``(1) pursuant to the third sentence of section 3(a) of the Act 
    entitled `An Act to provide for the establishment of a national 
    employment system and for cooperation with the States in the 
    promotion of such system, and for other purposes', approved June 6, 
    1933 (29 U.S.C. 49b(a)), or
        ``(2) by a State or local agency charged with the duty of 
    carrying a State plan for child support approved under part D of 
    title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the 
administration of such State plan.''.
    (b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is repealed.
    (c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is repealed.
    (d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 
(42 U.S.C. 602 note), relating to treatment under AFDC of certain 
rental payments for federally assisted housing, is repealed.
    (e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 
1982 (42 U.S.C. 602 note) is repealed.
    (f) Section 202(d) of the Social Security Amendments of 1967 (81 
Stat. 882; 42 U.S.C. 602 note) is repealed.
    (g) Section 903 of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988 (42 U.S.C. 11381 note), relating to 
demonstration projects to reduce number of AFDC families in welfare 
hotels, is amended--
        (1) in subsection (a), by striking ``aid to families with 
    dependent children under a State plan approved'' and inserting 
    ``assistance under a State program funded''; and
        (2) in subsection (c), by striking ``aid to families with 
    dependent children in the State under a State plan approved'' and 
    inserting ``assistance in the State under a State program funded''.
    (h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is 
amended--
        (1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by 
    striking ``(Aid to Families with Dependent Children)''; and
        (2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by striking 
    ``aid to families with dependent children under a State plan 
    approved'' and inserting ``assistance under a State program 
    funded''.
    (i) The Carl D. Perkins Vocational and Applied Technology Education 
Act (20 U.S.C. 2301 et seq.) is amended--
        (1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)), 
    by striking ``the program for aid to dependent children'' and 
    inserting ``the State program funded'';
        (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by 
    striking ``the program for aid to families with dependent 
    children'' and inserting ``the State program funded''; and
        (3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)), by 
    striking ``the program for aid to families with dependent 
    children'' and inserting ``the State program funded''.
    (j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 
2701 et seq.) is amended--
        (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking 
    ``Aid to Families with Dependent Children Program'' and inserting 
    ``State program funded under part A of title IV of the Social 
    Security Act'';
        (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking 
    ``the program of aid to families with dependent children undera 
State plan approved under'' and inserting ``a State program funded 
under part A of''; and
        (3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--
            (A) in subparagraph (A)(xi), by striking ``Aid to Families 
        with Dependent Children benefits'' and inserting ``assistance 
        under a State program funded under part A of title IV of the 
        Social Security Act''; and
            (B) in subparagraph (B)(viii), by striking ``Aid to 
        Families with Dependent Children'' and inserting ``assistance 
        under the State program funded under part A of title IV of the 
        Social Security Act''.
    (k) Chapter VII of title I of Public Law 99-88 (25 U.S.C. 13d-1) is 
amended to read as follows: ``Provided further, That general assistance 
payments made by the Bureau of Indian Affairs shall be made--
        ``(1) after April 29, 1985, and before October 1, 1995, on the 
    basis of Aid to Families with Dependent Children (AFDC) standards 
    of need; and
        ``(2) on and after October 1, 1995, on the basis of standards 
    of need established under the State program funded under part A of 
    title IV of the Social Security Act,
except that where a State ratably reduces its AFDC or State program 
payments, the Bureau shall reduce general assistance payments in such 
State by the same percentage as the State has reduced the AFDC or State 
program payment.''.
    (l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is 
amended--
        (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all 
    that follows ``agency as'' and inserting ``being eligible for 
    financial assistance under part A of title IV of the Social 
    Security Act and as having continually received such financial 
    assistance during the 90-day period which immediately precedes the 
    date on which such individual is hired by the employer.'';
        (2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by striking 
    ``eligibility for aid or services,'' and all that follows through 
    ``children approved'' and inserting ``eligibility for assistance, 
    or the amount of such assistance, under a State program funded'';
        (3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)), 
    by striking ``aid to families with dependent children provided 
    under a State plan approved'' and inserting ``a State program 
    funded'';
        (4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))--
            (A) by striking ``(c) or (d)'' each place it appears and 
        inserting ``(c), (d), or (e)''; and
            (B) by adding at the end of subparagraph (B) the following 
        new sentence: ``Any return information disclosed with respect 
        to section 6402(e) shall only be disclosed to officers and 
        employees of the State agency requesting such information.'';
        (5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the matter 
    preceding subparagraph (A)--
            (A) by striking ``(5), (10)'' and inserting ``(5)''; and
            (B) by striking ``(9), or (12)'' and inserting ``(9), (10), 
        or (12)'';
        (6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by 
    striking ``(relating to aid to families with dependent children)'';
        (7) in section 6402 (26 U.S.C. 6402)--
            (A) in subsection (a), by striking ``(c) and (d)'' and 
        inserting ``(c), (d), and (e)'';
            (B) by redesignating subsections (e) through (i) as 
        subsections (f) through (j), respectively; and
            (C) by inserting after subsection (d) the following:
    ``(e) Collection of Overpayments Under Title IV-A of the Social 
Security Act.--The amount of any overpayment to be refunded to the 
person making the overpayment shall be reduced (after reductions 
pursuant to subsections (c) and (d), but before a credit against future 
liability for an internal revenue tax) in accordance with section 
405(e) of the Social Security Act (concerning recovery of overpayments 
to individuals under State plans approved under part A of title IV of 
such Act).''; and
        (8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by 
    striking ``aid to families with dependent children'' and inserting 
    ``assistance under a State program funded under part A of title IV 
    of the Social Security Act''.
    (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is 
amended by striking ``State plan approved under part A of title IV'' 
and inserting ``State program funded under part A of title IV''.
    (n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is 
amended--
        (1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by 
    striking ``(42 U.S.C. 601 et seq.)'';
        (2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by 
    striking ``State aid to families with dependent children records,'' 
    and inserting ``records collected under the State program funded 
    under part A of title IV of the Social Security Act,'';
        (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--
            (A) by striking ``the JOBS program'' and inserting ``the 
        work activities required under title IV of the Social Security 
        Act''; and
            (B) by striking the second sentence;
        (4) in section 123(c) (29 U.S.C. 1533(c))--
            (A) in paragraph (1)(E), by repealing clause (vi); and
            (B) in paragraph (2)(D), by repealing clause (v);
        (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking 
    ``, including recipients under the JOBS program'';
        (6) in subparagraphs (A) and (B) of section 204(a)(1) (29 
    U.S.C. 1604(a)(1) (A) and (B)), by striking ``(such as the JOBS 
    program)'' each place it appears;
        (7) in section 205(a) (29 U.S.C. 1605(a)), by striking 
    paragraph (4) and inserting the following:
        ``(4) the portions of title IV of the Social Security Act 
    relating to work activities;'';
        (8) in section 253 (29 U.S.C. 1632)--
            (A) in subsection (b)(2), by repealing subparagraph (C); 
        and
            (B) in paragraphs (1)(B) and (2)(B) of subsection (c), by 
        striking ``the JOBS program or'' each place it appears;
        (9) in section 264 (29 U.S.C. 1644)--
            (A) in subparagraphs (A) and (B) of subsection (b)(1), by 
        striking ``(such as the JOBS program)'' each place it appears; 
        and
            (B) in subparagraphs (A) and (B) of subsection (d)(3), by 
        striking ``and the JOBS program'' each place it appears;
        (10) in section 265(b) (29 U.S.C. 1645(b)), by striking 
    paragraph (6) and inserting the following:
        ``(6) the portion of title IV of the Social Security Act 
    relating to work activities;'';
        (11) in the second sentence of section 429(e) (29 U.S.C. 
    1699(e)), by striking ``and shall be in an amount that does not 
    exceed the maximum amount that may be provided by the State 
    pursuant to section 402(g)(1)(C) of the Social Security Act (42 
    U.S.C. 602(g)(1)(C))'';
        (12) in section 454(c) (29 U.S.C. 1734(c)), by striking ``JOBS 
    and'';
        (13) in section 455(b) (29 U.S.C. 1735(b)), by striking ``the 
    JOBS program,'';
        (14) in section 501(1) (29 U.S.C. 1791(1)), by striking ``aid 
    to families with dependent children under part A of title IV of the 
    Social Security Act (42 U.S.C. 601 et seq.)'' and inserting 
    ``assistance under the State program funded under part A of title 
    IV of the Social Security Act'';
        (15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking 
    ``aid to families with dependent children'' and inserting 
    ``assistance under the State program funded'';
        (16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by 
    striking ``aid to families with dependent children'' and inserting 
    ``assistance under the State program funded''; and
        (17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))--
            (A) in clause (v), by striking the semicolon and inserting 
        ``; and''; and
            (B) by striking clause (vi).
    (o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is 
amended to read as follows:
                ``(iv) assistance under a State program funded under 
            part A of title IV of the Social Security Act''.
    (p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read 
as follows:
                ``(i) assistance under the State program funded under 
            part A of title IV of the Social Security Act;''.
    (q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 
602 note) is amended--
        (1) by striking ``(A)''; and
        (2) by striking subparagraphs (B) and (C).
    (r) The Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 900 et seq.) is amended--
        (1) in the first section 255(h) (2 U.S.C. 905(h)), by striking 
    ``Aid to families with dependent children (75-0412-0-1-609);'' and 
    inserting ``Block grants to States for temporary assistance for 
    needy families;''; and
        (2) in section 256 (2 U.S.C. 906)--
            (A) by striking subsection (k); and
            (B) by redesignating subsection (l) as subsection (k).
    (s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
amended--
        (1) in section 210(f) (8 U.S.C. 1160(f)), by striking ``aid 
    under a State plan approved under'' each place it appears and 
    inserting ``assistance under a State program funded under'';
        (2) in section 245A(h) (8 U.S.C. 1255a(h))--
            (A) in paragraph (1)(A)(i), by striking ``program of aid to 
        families with dependent children'' and inserting ``State 
        program of assistance''; and
            (B) in paragraph (2)(B), by striking ``aid to families with 
        dependent children'' and inserting ``assistance under a State 
        program funded under part A of title IV of the Social Security 
        Act''; and
        (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking 
    ``State plan approved'' and inserting ``State program funded''.
    (t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 
9835(a)(4)(B)(i)) is amended by striking ``program of aid to families 
with dependent children under a State plan approved'' and inserting 
``State program of assistance funded''.
    (u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 
92; 25 U.S.C. 639) is repealed.
    (v) Subparagraph (E) of section 213(d)(6) of the School-To-Work 
Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as 
follows:
            ``(E) part A of title IV of the Social Security Act (42 
        U.S.C. 601 et seq.) relating to work activities;''.
    (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, 
is amended by striking ``section 464 or 1137 of the Social Security 
Act'' and inserting ``section 404(e), 464, or 1137 of the Social 
Security Act.''.
    SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT SOCIAL 
      SECURITY CARD REQUIRED.
    (a) Development.--
        (1) In general.--The Commissioner of Social Security (in this 
    section referred to as the ``Commissioner'') shall, in accordance 
    with this section, develop a prototype of a counterfeit-resistant 
    social security card. Such prototype card shall--
            (A) be made of a durable, tamper-resistant material such as 
        plastic or polyester,
            (B) employ technologies that provide security features, 
        such as magnetic stripes, holograms, and integrated circuits, 
        and
            (C) be developed so as to provide individuals with reliable 
        proof of citizenship or legal resident alien status.
        (2) Assistance by attorney general.--The Attorney General of 
    the United States shall provide such information and assistance as 
    the Commissioner deems necessary to enable the Commissioner to 
    comply with this section.
    (b) Study and Report.--
        (1) In general.--The Commissioner shall conduct a study and 
    issue a report to Congress which examines different methods of 
    improving the social security card application process.
        (2) Elements of study.--The study shall include an evaluation 
    of the cost and work load implications of issuing a counterfeit-
    resistant social security card for all individuals over a 3-, 5-, 
    and 10-year period. The study shall also evaluate the feasibility 
    and cost implications of imposing a user fee for replacement cards 
    and cards issued to individuals who apply for such a card prior to 
    the scheduled 3-, 5-, and 10-year phase-in options.
        (3) Distribution of report.--The Commissioner shall submit 
    copies of the report described in this subsection along with a 
    facsimile of the prototype card as described in subsection (a) to 
    the Committees on Ways and Means and Judiciary of the House of 
    Representatives and the Committees on Finance and Judiciary of the 
    Senate within 1 year after the date of the enactment of this Act.

SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

    (a) In General.--Whenever an organization that accepts Federal 
funds under this Act or the amendments made by this Act makes any 
communication that in any way intends to promote public support or 
opposition to any policy of a Federal, State, or local government 
through any broadcasting station, newspaper, magazine, outdoor 
advertising facility, direct mailing, or any other type of general 
public advertising, such communication shall state the following: 
``This was prepared and paid for by an organization that accepts 
taxpayer dollars.''.
    (b) Failure To Comply.--If an organization makes any communication 
described in subsection (a) and fails to provide the statement required 
by that subsection, such organization shall be ineligible to receive 
Federal funds under this Act or the amendments made by this Act.
    (c) Definition.--For purposes of this section, the term 
``organization'' means an organization described in section 501(c) of 
the Internal Revenue Code of 1986.
    (d) Effective Dates.--This section shall take effect--
        (1) with respect to printed communications 1 year after the 
    date of enactment of this Act; and
        (2) with respect to any other communication on the date of 
    enactment of this Act.
    SEC. 113. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN LOW-
      INCOME INDIVIDUALS PROGRAM.
    Section 505 of the Family Support Act of 1988 (42 U.S.C. 1315 note) 
is amended--
        (1) in the heading, by striking ``DEMONSTRATION'';
        (2) by striking ``demonstration'' each place such term appears;
        (3) in subsection (a), by striking ``in each of fiscal years'' 
    and all that follows through ``10'' and inserting ``shall enter 
    into agreements with'';
        (4) in subsection (b)(3), by striking ``aid to families with 
    dependent children under part A of title IV of the Social Security 
    Act'' and inserting ``assistance under the program funded part A of 
    title IV of the Social Security Act of the State in which the 
    individual resides'';
        (5) in subsection (c)--
            (A) in paragraph (1)(C), by striking ``aid to families with 
        dependent children under part A of title IV of the Social 
        Security Act'' and inserting ``assistance under a State program 
        funded part A of title IV of the Social Security Act'';
            (B) in paragraph (2), by striking ``aid to families with 
        dependent children under title IV of such Act'' and inserting 
        ``assistance under a State program funded part A of title IV of 
        the Social Security Act'';
        (6) in subsection (d), by striking ``job opportunities and 
    basic skills training program (as provided for under title IV of 
    the Social Security Act)'' and inserting ``the State program funded 
    under part A of title IV of the Social Security Act''; and
        (7) by striking subsections (e) through (g) and inserting the 
    following:
    ``(e) Authorization of Appropriations.--For the purpose of 
conducting projects under this section, there is authorized to be 
appropriated an amount not to exceed $25,000,000 for any fiscal 
year.''.
    SEC. 114. MEDICAID ELIGIBILITY UNDER TITLE IV OF THE SOCIAL 
      SECURITY ACT.
    (a) In General.--Section 1902(a)(10)(A) (42 U.S.C. 1396a(a)(10)(A)) 
is amended--
        (1) in clause (i), by amending subclause (I) to read as 
    follows:

                    ``(I) who are receiving a foster care maintenance 
                payment described in section 423(b)(1)(A) or an 
                adoption assistance payment described in section 
                423(b)(1)(B),''; and

        (2) in clause (ii)--
            (A) by striking ``or'' at the end of subclause (XI),
            (B) by adding ``or'' at the end of subclause (XII), and
            (C) by adding at the end the following new subclause:

                    ``(XIII) to individuals (which may include 
                individuals who receive payment under any plan of the 
                State approved under title I, X, XIV, or XVI, or a 
                program funded under part A of title IV of this Act, as 
                amended by the Personal Responsibility and Work 
                Opportunity Act of 1995, and other similar individuals) 
                who meet such eligibility criteria as the State 
                establishes, so long as the State demonstrates to the 
                satisfaction of the Secretary that the application of 
                such criteria does not result in Federal expenditures 
                under this title that are greater than the Federal 
                expenditures that would have been made under this title 
                if such Act had not been enacted,''.

    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to medical assistance for items and services furnished on or 
after the date of the enactment of this Act.
    SEC. 115. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR 
      TECHNICAL AND CONFORMING AMENDMENTS.
    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Health and Human Services and the Commissioner of 
Social Security, in consultation, as appropriate, with the heads of 
other Federal agencies, shall submit to the appropriate committees of 
Congress a legislative proposal proposing such technical and conforming 
amendments as are necessary to bring the law into conformity with the 
policy embodied in this title.

SEC. 116. EFFECTIVE DATE; TRANSITION RULE.

    (a) In General.--Except as otherwise provided in this title, this 
title and the amendments made by this title shall take effect on 
October 1, 1996.
    (b) Transition Rules.--
        (1) State option to accelerate effective date.--
            (A) In general.--If, within 3 months after the date of the 
        enactment of this Act, the Secretary of Health and Human 
        Services receives from a State a plan described in section 
        402(a) of the Social Security Act (as added by the amendment 
        made by section 103 of this Act), this title and the amendments 
        made by this title (except section 409(a)(7) of the Social 
        Security Act, as added by the amendment made by such section 
        103) shall also apply with respect to the State during the 
        period that begins on the date of such receipt and ends on 
        September 30, 1996, except that the State shall be considered 
        an eligible State for fiscal year 1996 for purposes of part A 
        of title IV of the Social Security Act (as in effect pursuant 
        to the amendment made by such section 103).
            (B) Limitations on federal obligations.--
                (i) Under afdc program.--If the Secretary receives from 
            a State the plan referred to in subparagraph (A), the total 
            obligations of the Federal Government to the State under 
            part A of title IV of the Social Security Act (as in effect 
            on September 30, 1995) with respect to expenditures by the 
            State after the date of the enactment of this Act shall not 
            exceed an amount equal to--

                    (I) the State family assistance grant (as defined 
                in section 403(a)(1)(B) of the Social Security Act (as 
                in effect pursuant to the amendment made by section 103 
                of this Act)); minus
                    (II) any obligations of the Federal Government to 
                the State under part A of title IV of the Social 
                Security Act (as in effect on September 30, 1995) with 
                respect to expenditures by the State during the period 
                that begins on October 1, 1995, and ends on the day 
                before the date of the enactment of this Act.

                (ii) Under temporary family assistance program.--
            Notwithstanding section 403(a)(1) of the Social Security 
            Act (as in effect pursuant to the amendment made by section 
            103 of this Act), the total obligations of the Federal 
            Government to a State under such section 403(a)(1) for 
            fiscal year 1996 after the termination of the State AFDC 
            program shall not exceed an amount equal to--

                    (I) the amount described in clause (i)(I) of this 
                subparagraph; minus
                    (II) any obligations of the Federal Government to 
                the State under part A of title IV of theSocial 
Security Act (as in effect on September 30, 1995) with respect to 
expenditures by the State on or after October 1, 1995.
                (iii) Child care obligations excluded in determining 
            federal afdc obligations.--As used in this subparagraph, 
            the term ``obligations of the Federal Government to the 
            State under part A of title IV of the Social Security Act'' 
            does not include any obligation of the Federal Government 
            with respect to child care expenditures by the State.
            (C) Submission of state plan for fiscal year 1996 deemed 
        acceptance of grant limitations and formula.--The submission of 
        a plan by a State pursuant to subparagraph (A) is deemed to 
        constitute the State's acceptance of the grant reductions under 
        subparagraph (B)(ii) (including the formula for computing the 
        amount of the reduction).
            (D) Definitions.--As used in this paragraph:
                (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 Columbia.
        (2) Claims, actions, and proceedings.--The amendments made by 
    this title 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 title under the 
        provisions amended; and
            (B) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such provisions.
        (3) Closing out account for those programs terminated or 
    substantially modified by this title.--In closing out accounts, 
    Federal and State officials may use scientifically acceptable 
    statistical sampling techniques. Claims made with respect to State 
    expenditures under a State plan approved under part A of title IV 
    of the Social Security Act (as in effect before the effective date 
    of this Act) with respect to assistance or services provided on or 
    before September 30, 1995, shall be treated as claims with respect 
    to expenditures during fiscal year 1995 for purposes of 
    reimbursement even if payment was made by a State on or after 
    October 1, 1995. Each State shall complete the filing of all claims 
    under the State plan (as so in effect) no later than September 30, 
    1997. The head of each Federal department shall--
            (A) use the single audit procedure to review and resolve 
        any claims in connection with the close out of programs under 
        such State plans; and
            (B) reimburse States for any payments made for assistance 
        or services provided during a prior fiscal year from funds for 
        fiscal year 1995, rather than from funds authorized by this 
        title.
        (4) Continuance in office of assistant secretary for family 
    support.--The individual who, on the day before the effective date 
    of this title, is serving as Assistant Secretary for Family Support 
    within the Department of Health and Human Services shall, until a 
    successor is appointed to such position--
            (A) continue to serve in such position; and
            (B) except as otherwise provided by law--
                (i) continue to perform the functions of the Assistant 
            Secretary for Family Support under section 417 of the 
            Social Security Act (as in effect before such effective 
            date); and
                (ii) have the powers and duties of the Assistant 
            Secretary for Family Support under section 416 of the 
            Social Security Act (as in effect pursuant to the amendment 
            made by section 103 of this Act).

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

SEC. 200. REFERENCE 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 section or other provision of the Social Security Act.

                  Subtitle A--Eligibility Restrictions

    SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS FOUND 
      TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE IN ORDER TO OBTAIN 
      BENEFITS SIMULTANEOUSLY IN 2 OR MORE STATES.
    (a) In General.--Section 1614(a) (42 U.S.C. 1382c(a)) is amended by 
adding at the end the following new paragraph:
    ``(5) An individual shall not be considered an eligible individual 
for the purposes of this title during the 10-year period that begins on 
the date the individual is convicted in Federal or State court of 
having made a fraudulent statement or representation with respect 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 title IV, title XIX, or the Food Stamp Act of 1977, or benefits 
in 2 or more States under the supplemental security income program 
under this title.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.
    SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBATION 
      AND PAROLE VIOLATORS.
    (a) In General.--Section 1611(e) (42 U.S.C. 1382(e)) is amended by 
inserting after paragraph (3) the following new paragraph:
    ``(4) A person shall not be considered an eligible individual or 
eligible spouse for purposes of this title with respect to any month if 
during such month the person is--
        ``(A) fleeing to avoid prosecution, or custody or confinement 
    after conviction, under the laws of the place from which the person 
    flees, for a crime, or an attempt to commit a crime, which is a 
    felony under the laws of the place from which the person 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.''.
    (b) Exchange of Information With Law Enforcement Agencies.--Section 
1611(e) (42 U.S.C. 1382(e)), as amended by subsection (a), is amended 
by inserting after paragraph (4) the following new paragraph:
    ``(5) Notwithstanding any other provision of law, the Commissioner 
shall furnish any Federal, State, or local law enforcement officer, 
upon the request of the officer, with the current address, Social 
Security number, and photograph (if applicable) of any recipient of 
benefits under this title, if the officer furnishes the Commissioner 
with the name of the recipient and notifies the Commissioner that--
        ``(A) the recipient--
            ``(i) is described in subparagraph (A) or (B) of paragraph 
        (4); or
            ``(ii) has information that is necessary for the officer to 
        conduct the officer's official duties; and
        ``(B) the location or apprehension of the recipient is within 
    the officer's official duties.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

               Subtitle B--Benefits for Disabled Children

SEC. 211. DEFINITION AND ELIGIBILITY RULES.

    (a) Definition of Childhood Disability.--Section 1614(a)(3) (42 
U.S.C. 1382c(a)(3)), as amended by section 201(a), is amended--
        (1) in subparagraph (A), by striking ``An individual'' and 
    inserting ``Except as provided in subparagraph (C), an 
    individual'';
        (2) in subparagraph (A), by striking ``(or, in the case of an 
    individual under the age of 18, if he suffers from any medically 
    determinable physical or mental impairment of comparable 
    severity)'';
        (3) by redesignating subparagraphs (C) through (I) as 
    subparagraphs (D) through (J), respectively;
        (4) by inserting after subparagraph (B) the following new 
    subparagraph:
    ``(C) An individual under the age of 18 shall be considered 
disabled for the purposes of this title if that individual has a 
medically determinable physical or mental impairment, which results in 
marked and severe functional limitations, and which can be expected to 
result in death or which has lasted or can be expected to last for a 
continuous period of not less than 12 months. Notwithstanding the 
preceding sentence, no individual under the age of 18who engages in 
substantial gainful activity (determined in accordance with regulations 
prescribed pursuant to subparagraph (E)) may be considered to be 
disabled.''; and
        (5) in subparagraph (F), as redesignated by paragraph (3), by 
    striking ``(D)'' and inserting ``(E)''.
    (b) Changes to Childhood SSI Regulations.--
        (1) Modification to medical criteria for evaluation of mental 
    and emotional disorders.--The Commissioner of Social Security shall 
    modify sections 112.00C.2. and 112.02B.2.c.(2) of appendix 1 to 
    subpart P of part 404 of title 20, Code of Federal Regulations, to 
    eliminate references to maladaptive behavior in the domain of 
    personal/behavorial function.
        (2) Discontinuance of individualized functional assessment.--
    The Commissioner of Social Security shall discontinue the 
    individualized functional assessment for children set forth in 
    sections 416.924d and 416.924e of title 20, Code of Federal 
    Regulations.
    (c) Medical Improvement Review Standard as it Applies to 
Individuals Under the Age of 18.--Section 1614(a)(4) (42 U.S.C. 
1382(a)(4)) is amended--
        (1) by redesignating subclauses (I) and (II) of clauses (i) and 
    (ii) of subparagraph (B) as items (aa) and (bb), respectively;
        (2) by redesignating clauses (i) and (ii) of subparagraphs (A) 
    and (B) as subclauses (I) and (II), respectively;
        (3) by redesignating subparagraphs (A) through (C) as clauses 
    (i) through (iii), respectively, and by moving their left hand 
    margin 2 ems to the right;
        (4) by inserting before clause (i) (as redesignated by 
    paragraph (3)) the following:
            ``(A) in the case of an individual who is age 18 or older--
        '';
        (5) at the end of subparagraph (A)(iii) (as redesignated by 
    paragraphs (3) and (4)), by striking the period and inserting ``; 
    or'';
        (6) by inserting after and below subparagraph (A)(iii) (as so 
    redesignated) the following:
            ``(B) in the case of an individual who is under the age of 
        18--
                ``(i) substantial evidence which demonstrates that 
            there has been medical improvement in the individual's 
            impairment or combination of impairments, and that such 
            impairment or combination of impairments no longer results 
            in marked and severe functional limitations; or
                ``(ii) substantial evidence which demonstrates that, as 
            determined on the basis of new or improved diagnostic 
            techniques or evaluations, the individual's impairment or 
            combination of impairments, is not as disabling as it was 
            considered to be at the time of the most recent prior 
            decision that the individual was under a disability or 
            continued to be under a disability, and such impairment or 
            combination of impairments does not result in marked or 
            severe functional limitations; or'';
        (7) by redesignating subparagraph (D) as subparagraph (C) and 
    by inserting in such subparagraph ``in the case of any 
    individual,'' before ``substantial evidence''; and
        (8) in the first sentence following subparagraph (C) (as 
    redesignated by paragraph (7)), by--
            (A) inserting ``(i)'' before ``to restore''; and
            (B) inserting ``, or (ii) in the case of an individual 
        under the age of 18, to eliminate or improve the individual's 
        impairment or combination of impairments so that it no longer 
        results in marked and severe functional limitations'' 
        immediately before the period.
    (d) Amount of Benefits.--Section 1611(b) (42 U.S.C. 1382(b)) is 
amended by adding at the end the following new paragraph:
    ``(3)(A) Except with respect to individuals described in 
subparagraph (B), the benefit under this title for an individual 
described in section 1614(a)(3)(C) shall be payable at a rate equal to 
75 percent of the rate otherwise determined under this subsection.
    ``(B) An individual is described in this subparagraph if such 
individual is described in section 1614(a)(3)(C), and--
        ``(i) in the case of such an individual under the age of 6, 
    such individual has a medical impairment that severely limits the 
    individual's ability to function in a manner appropriate to 
    individuals of the same age and who without special personal 
    assistance would require specialized care outside the home; or
        ``(ii) in the case of such an individual who has attained the 
    age of 6, such individual requires personal care assistance with--
            ``(I) at least 2 activities of daily living;
            ``(II) continual 24-hour supervision or monitoring to avoid 
        causing injury or harm to self or others; or
            ``(III) the administration of medical treatment; and
    who without such assistance would require full-time or part-time 
    specialized care outside the home.
    ``(C)(i) For purposes of subparagraph (B), the term `specialized 
care' means medical care beyond routine administration of medication.
    ``(ii) For purposes of subparagraph (B)(ii)--
        ``(I) the term `personal care assistance' means at least hands-
    on and stand-by assistance, supervision, or cueing; and
        ``(II) the term `activities of daily living' means eating, 
    toileting, dressing, bathing, and mobility.''.
    (e) Effective Dates, Etc.--
        (1) Effective dates.--
            (A) In general.--The provisions of, and amendments made by, 
        subsections (a), (b), and (c) shall apply to applicants for 
        benefits under title XVI of the Social Security Act for months 
        beginning on or after the date of the enactment of this Act, 
        without regard to whether regulations have been issued to 
        implement such provisions and amendments.
            (B) Eligibility rules.--The amendments made by subsection 
        (d) shall apply to--
                (i) applicants for benefits under title XVI of the 
            Social Security Act for months beginning on or after 
            January 1, 1997; and
                (ii) with respect to continuing disability reviews of 
            eligibility for benefits under such title occurring on or 
            after such date.
        (2) Application to current recipients.--
            (A) Eligibility determinations.--Not later than 1 year 
        after the date of the enactment of this Act, the Commissioner 
        of Social Security shall redetermine the eligibility of any 
        individual under age 18 who is receiving supplemental security 
        income benefits by reason of disability under title XVI of the 
        Social Security Act as of the date of the enactment of this Act 
        and whose eligibility for such benefits may terminate by reason 
        of the provisions of, or amendments made by, subsections (a), 
        (b), and (c). With respect to any redetermination under this 
        subparagraph--
                (i) section 1614(a)(4) of the Social Security Act (42 
            U.S.C. 1382c(a)(4)) shall not apply;
                (ii) the Commissioner of Social Security shall apply 
            the eligibility criteria for new applicants for benefits 
            under title XVI of such Act;
                (iii) the Commissioner shall give such redetermination 
            priority over all continuing eligibility reviews and other 
            reviews under such title; and
                (iv) such redetermination shall be counted as a review 
            or redetermination otherwise required to be made under 
            section 208 of the Social Security Independence and Program 
            Improvements Act of 1994 or any other provision of title 
            XVI of the Social Security Act.
            (B) Grandfather provision.--The provisions of, and 
        amendments made by, subsections (a), (b), and (c), and the 
        redetermination under subparagraph (A), shall only apply with 
        respect to the benefits of an individual described in 
        subparagraph (A) for months beginning on or after January 1, 
        1997.
            (C) Notice.--Not later than 90 days after the date of the 
        enactment of this Act, the Commissioner of Social Security 
        shall notify an individual described in subparagraph (A) of the 
        provisions of this paragraph.
        (3) Report.--The Commissioner of Social Security shall report 
    to the Congress regarding the progress made in implementing the 
    provisions of, and amendments made by, this section on child 
    disability evaluations not later than 180 days after the date of 
    the enactment of this Act.
        (4) Regulations.--The Commissioner of Social Security shall 
    submit for review to the committees of jurisdiction in the Congress 
    any final regulation pertaining to the eligibility of individuals 
    under age 18 for benefits under title XVI of the Social Security 
    Act at least 45 days before the effective date of such regulation. 
    The submission under this paragraph shall include supporting 
    documentation providing a cost analysis, workload impact, and 
    projections as to how the regulation will effect the future number 
    of recipients under such title.
        (5) Appropriations.--
            (A) In general.--Out of any money in the Treasury not 
        otherwise appropriated, there are authorized to be appropriated 
        and are hereby appropriated, to remain available without fiscal 
        year limitation, $200,000,000 for fiscal year 1996, $75,000,000 
        for fiscal year 1997, and $25,000,000 for fiscal year 1998, for 
        the Commissioner of Social Security to utilize only for 
        continuing disability reviews and redeterminations under title 
        XVI of the Social Security Act, with reviews and 
        redeterminations for individuals affected by the provisions of 
        subsection (b) given highest priority.
            (B) Additional funds.--Amounts appropriated under 
        subparagraph (A) shall be in addition to any funds otherwise 
        appropriated for continuing disability reviews and 
        redeterminations under title XVI of the Social Security Act.
        (6) Benefits under title xvi.--For purposes of this subsection, 
    the term ``benefits under title XVI of the Social Security Act'' 
    includes supplementary payments pursuant to an agreement for 
    Federal administration under section 1616(a) of the Social Security 
    Act, and payments pursuant to an agreement entered into under 
    section 212(b) of Public Law 93-66.
    SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINUING DISABILITY 
      REVIEWS.
    (a) Continuing Disability Reviews Relating to Certain Children.--
Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as redesignated by 
section 211(a)(3), is amended--
        (1) by inserting ``(i)'' after ``(H)''; and
        (2) by adding at the end the following new clause:
    ``(ii)(I) Not less frequently than once every 3 years, the 
Commissioner shall review in accordance with paragraph (4) the 
continued eligibility for benefits under this title of each individual 
who has not attained 18 years of age and is eligible for such benefits 
by reason of an impairment (or combination of impairments) which may 
improve (or, at the option of the Commissioner, which is unlikely to 
improve).
    ``(II) A representative payee of a recipient whose case is reviewed 
under this clause shall present, at the time of review, evidence 
demonstrating that the recipient is, and has been, receiving treatment, 
to the extent considered medically necessary and available, of the 
condition which was the basis for providing benefits under this title.
    ``(III) If the representative payee refuses to comply without good 
cause with the requirements of subclause (II), the Commissioner of 
Social Security shall, if the Commissioner determines it is in the best 
interest of the individual, promptly terminate payment of benefits to 
the representative payee, and provide for payment of benefits to an 
alternative representative payee of the individual or, if the interest 
of the individual under this title would be served thereby, to the 
individual.
    ``(IV) Subclause (II) shall not apply to the representative payee 
of any individual with respect to whom the Commissioner determines such 
application would be inappropriate or unnecessary. In making such 
determination, the Commissioner shall take into consideration the 
nature of the individual's impairment (or combination of impairments). 
Section 1631(c) shall not apply to a finding by the Commissioner that 
the requirements of subclause (II) should not apply to an individual's 
representative payee.''.
    (b) Disability Eligibility Redeterminations Required for SSI 
Recipients Who Attain 18 Years of Age.--
        (1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 
    1382c(a)(3)(H)), as amended by subsection (a), is amended by adding 
    at the end the following new clause:
    ``(iii) If an individual is eligible for benefits under this title 
by reason of disability for the month preceding the month in which the 
individual attains the age of 18 years, the Commissioner shall 
redetermine such eligibility--
        ``(I) during the 1-year period beginning on the individual's 
    18th birthday; and
        ``(II) by applying the criteria used in determining the initial 
    eligibility for applicants who are age 18 or older.
With respect to a redetermination under this clause, paragraph (4) 
shall not apply and such redetermination shall be considered a 
substitute for a review or redetermination otherwise required under any 
other provision of this subparagraph during that 1-year period.''.
        (2) Conforming repeal.--Section 207 of the Social Security 
    Independence and Program Improvements Act of 1994 (42 U.S.C. 1382 
    note; 108 Stat. 1516) is hereby repealed.
    (c) Continuing Disability Review Required for Low Birth Weight 
Babies.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as amended 
by subsections (a) and (b), is amended by adding at the end the 
following new clause:
    ``(iv)(I) Not later than 12 months after the birth of an 
individual, the Commissioner shall review in accordance with paragraph 
(4) the continuing eligibility for benefits under this title by reason 
of disability of such individual whose low birth weight is a 
contributing factor material to the Commissioner's determination that 
the individual is disabled.
    ``(II) A review under subclause (I) shall be considered a 
substitute for a review otherwise required under any other provision of 
this subparagraph during that 12-month period.
    ``(III) A representative payee of a recipient whose case is 
reviewed under this clause shall present, at the time of review, 
evidence demonstrating that the recipient is, and has been, receiving 
treatment, to the extent considered medically necessary and available, 
of the condition which was the basis for providing benefits under this 
title.
    ``(IV) If the representative payee refuses to comply without good 
cause with the requirements of subclause (III), the Commissioner of 
Social Security shall, if the Commissioner determines it is in the best 
interest of the individual, promptly terminate payment of benefits to 
the representative payee, and provide for payment of benefits to an 
alternative representative payee of the individual or, if the interest 
of the individual under this title would be served thereby, to the 
individual.
    ``(V) Subclause (III) shall not apply to the representative payee 
of any individual with respect to whom the Commissioner determines such 
application would be inappropriate or unnecessary. In making such 
determination, the Commissioner shall take into consideration the 
nature of the individual's impairment (or combination of impairments). 
Section 1631(c) shall not apply to a finding by the Commissioner that 
the requirements of subclause (III) should not apply to an individual's 
representative payee.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to benefits for months beginning on or after the date of the 
enactment of this Act, without regard to whether regulations have been 
issued to implement such amendments.

SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

    (a) Disposal of Resources for Less Than Fair Market Value.--
        (1) In general.--Section 1613(c) (42 U.S.C. 1382b(c)) is 
    amended to read as follows:

        ``Disposal of Resources for Less Than Fair Market Value

    ``(c)(1)(A)(i) If an individual who has not attained 18 years of 
age (or any person acting on such individual's behalf) disposes of 
resources of the individual for less than fair market value on or after 
the look-back date specified in clause (ii)(I), the individual is 
ineligible for benefits under this title for months during the period 
beginning on the date specified in clause (iii) and equal to the number 
of months specified in clause (iv).
    ``(ii)(I) The look-back date specified in this subclause is a date 
that is 36 months before the date specified in subclause (II).
    ``(II) The date specified in this subclause is the date on which 
the individual applies for benefits under this title or, if later, the 
date on which the disposal of the individual's resources for less than 
fair market value occurs.
    ``(iii) The date specified in this clause is the first day of the 
first month that follows the month in which the individual's resources 
were disposed of for less than fair market value and that does not 
occur in any other period of ineligibility under this paragraph.
    ``(iv) The number of months of ineligibility under this clause for 
an individual shall be equal to--
        ``(I) the total, cumulative uncompensated value of all the 
    individual's resources so disposed of on or after the look-back 
    date specified in clause (ii)(I), divided by
        ``(II) the amount of the maximum monthly benefit payable under 
    section 1611(b) to an eligible individual for the month in which 
    the date specified in clause (ii)(II) occurs.
    ``(B) An individual shall not be ineligible for benefits under this 
title by reason of subparagraph (A) if the Commissioner determines 
that--
        ``(i) the individual intended to dispose of the resources at 
    fair market value;
        ``(ii) the resources were transferred exclusively for a purpose 
    other than to qualify for benefits under this title;
        ``(iii) all resources transferred for less than fair market 
    value have been returned to the individual; or
        ``(iv) the denial of eligibility would work an undue hardship 
    on the individual (as determined on the basis of criteria 
    established by the Commissioner in regulations).
    ``(C) For purposes of this paragraph, in the case of a resource 
held by an individual in common with another person or persons in a 
joint tenancy, tenancy in common, or similar arrangement, the resource 
(or the affected portion of such resource) shall be considered to be 
disposed of by such individual when any action is taken, either by such 
individual or by any other person, that reduces or eliminates such 
individual's ownership or control of such resource.
    ``(D)(i) Notwithstanding subparagraph (A), this subsection shall 
not apply to a transfer of a resource to a trust if the portion of the 
trust attributable to such resource is considered a resource available 
to the individual pursuant to subsection (e)(3) (or would be so 
considered, but for the application of subsection (e)(4)).
    ``(ii) In the case of a trust established by an individual (within 
the meaning of subsection (e)(2)(A)), if from such portion of the trust 
(if any) that is considered a resource available to the individual 
pursuant to subsection (e)(3) (or would be so considered but for the 
application of subsection (e)(2)) or the residue of such portion upon 
the termination of the trust--
        ``(I) there is made a payment other than to or for the benefit 
    of the individual, or
        ``(II) no payment could under any circumstance be made to the 
    individual,
then the payment described in subclause (I) or the foreclosure of 
payment described in subclause (II) shall be considered a disposal of 
resources by the individual subject to this subsection, as of the date 
of such payment or foreclosure, respectively.
    ``(2)(A) At the time an individual (and the individual's eligible 
spouse, if any) applies for benefits under this title, and at the time 
the eligibility of an individual (and such spouse, if any) for such 
benefits is redetermined, the Commissioner of Social Security shall--
        ``(i) inform such individual of the provisions of paragraph (1) 
    providing for a period of ineligibility for benefits under this 
    title for individuals who make certain dispositions of resources 
    for less than fair market value, and inform such individual that 
    information obtained pursuant to clause (ii) will be made available 
    to the State agency administering a State plan approved under title 
    XIX (as provided in subparagraph (B)); and
        ``(ii) obtain from such individual information which may be 
    used in determining whether or not a period of ineligibility for 
    such benefits would be required by reason of paragraph (1).
    ``(B) The Commissioner of Social Security shall make the 
information obtained under subparagraph (A)(ii) available, on request, 
to any State agency administering a State plan approved under title 
XIX.
    ``(3) For purposes of this subsection--
        ``(A) the term `trust' includes any legal instrument or device 
    that is similar to a trust; and
        ``(B) the term `benefits under this title' includes 
    supplementary payments pursuant to an agreement for Federal 
    administration under section 1616(a), and payments pursuant to an 
    agreement entered into under section 212(b) of Public Law 93-66.''.
        (2) Effective date.--The amendment made by this subsection 
    shall be effective with respect to transfers that occur at least 90 
    days after the date of the enactment of this Act.
    (b) Treatment of Assets Held in Trust.--
        (1) Treatment as resource.--Section 1613 (42 U.S.C. 1382) is 
    amended by adding at the end the following new subsection:

                                ``Trusts

    ``(e)(1) In determining the resources of an individual who has not 
attained 18 years of age, the provisions of paragraph (3) shall apply 
to a trust established by such individual.
    ``(2)(A) For purposes of this subsection, an individual shall be 
considered to have established a trust if any assets of the individual 
were transferred to the trust.
    ``(B) In the case of an irrevocable trust to which the assets of an 
individual and the assets of any other person or persons were 
transferred, the provisions of this subsection shall apply to the 
portion of the trust attributable to the assets of the individual.
    ``(C) This subsection shall apply without regard to--
        ``(i) the purposes for which the trust is established;
        ``(ii) whether the trustees have or exercise any discretion 
    under the trust;
        ``(iii) any restrictions on when or whether distributions may 
    be made from the trust; or
        ``(iv) any restrictions on the use of distributions from the 
    trust.
    ``(3)(A) In the case of a revocable trust, the corpus of the trust 
shall be considered a resource available to the individual.
    ``(B) In the case of an irrevocable trust, if there are any 
circumstances under which payment from the trust could be made to or 
for the benefit of the individual, the portion of the corpus from which 
payment to or for the benefit of the individual could be made shall be 
considered a resource available to the individual.
    ``(4) The Commissioner may waive the application of this subsection 
with respect to any individual if the Commissioner determines, on the 
basis of criteria prescribed in regulations, that such application 
would work an undue hardship on such individual.
    ``(5) For purposes of this subsection--
        ``(A) the term `trust' includes any legal instrument or device 
    that is similar to a trust;
        ``(B) the term `corpus' means all property and other interests 
    held by the trust, including accumulated earnings and any other 
    addition to such trust after its establishment (except that such 
    term does not include any such earnings or addition in the month in 
    which such earnings or addition is credited or otherwise 
    transferred to the trust);
        ``(C) the term `asset' includes any income or resource of the 
    individual, including--
            ``(i) any income otherwise excluded by section 1612(b);
            ``(ii) any resource otherwise excluded by this section; and
            ``(iii) any other payment or property that the individual 
        is entitled to but does not receive or have access to because 
        of action by--
                ``(I) such individual;
                ``(II) a person or entity (including a court) with 
            legal authority to act in place of, or on behalf of, such 
            individual; or
                ``(III) a person or entity (including a court) acting 
            at the direction of, or upon the request of, such 
            individual; and
        ``(D) the term `benefits under this title' includes 
    supplementary payments pursuant to an agreement for Federal 
    administration under section 1616(a), and payments pursuant to an 
    agreement entered into under section 212(b) of Public Law 93-66.''.
        (2) Treatment as income.--Section 1612(a)(2) (42 U.S.C. 
    1382a(a)(2)) is amended--
            (A) by striking ``and'' at the end of subparagraph (E);
            (B) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (C) by adding at the end the following new subparagraph:
            ``(G) any earnings of, and additions to, the corpus of a 
        trust (as defined in section 1613(f)) established by an 
        individual (within the meaning of section 1613(e)(2)(A)) and of 
        which such individual is a beneficiary (other than a trust to 
        which section 1613(e)(4) applies), except that in the case of 
        an irrevocable trust, there shall exist circumstances under 
        which payment from such earnings or additions could be made to, 
        or for the benefit of, such individual.''.
        (3) Effective date.--The amendments made by this subsection 
    shall take effect on January 1, 1996, and shall apply to trusts 
    established on or after such date.
    (c) Requirement To Establish Account.--
        (1) In general.--Section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is 
    amended--
            (A) by redesignating subparagraphs (F) and (G) as 
        subparagraphs (G) and (H), respectively; and
            (B) by inserting after subparagraph (E) the following new 
        subparagraph:
    ``(F)(i)(I) Each representative payee of an eligible individual 
under the age of 18 who is eligible for the payment of benefits 
described in subclause (II) shall establish on behalf of such 
individual an account in a financial institution into which such 
benefits shall be paid, and shall thereafter maintain such account for 
use in accordance with clause (ii).
    ``(II) Benefits described in this subclause are past-due monthly 
benefits under this title (which, for purposes of this subclause, 
include State supplementary payments made by the Commissioner pursuant 
to an agreement under section 1616 or section 212(b) of Public Law 93-
66) in an amount (after any withholding by the Commissioner for 
reimbursement to a State for interim assistance under subsection (g)) 
that exceeds the product of--
        ``(aa) 6, and
        ``(bb) the maximum monthly benefit payable under this title to 
    an eligible individual.
    ``(ii)(I) A representative payee may use funds in the account 
established under clause (i) to pay for allowable expenses described in 
subclause (II).
    ``(II) An allowable expense described in this subclause is an 
expense for--
        ``(aa) education or job skills training;
        ``(bb) personal needs assistance;
        ``(cc) special equipment;
        ``(dd) housing modification;
        ``(ee) medical treatment;
        ``(ff) therapy or rehabilitation; or
        ``(gg) any other item or service that the Commissioner 
    determines to be appropriate;
provided that such expense benefits such individual and, in the case of 
an expense described in item (cc), (dd), (ff), or (gg), is related to 
the impairment (or combination of impairments) of such individual.
    ``(III) The use of funds from an account established under clause 
(i) in any manner not authorized by this clause--
        ``(aa) by a representative payee shall constitute misuse of 
    benefits for all purposes of this paragraph, and any representative 
    payee who knowingly misuses benefits from such an account shall be 
    liable to the Commissioner in an amount equal to the total amount 
    of such misused benefits; and
        ``(bb) by an eligible individual who is his or her own 
    representative payee shall be considered an overpayment subject to 
    recovery under subsection (b).
    ``(IV) This clause shall continue to apply to funds in the account 
after the child has reached age 18, regardless of whether benefits are 
paid directly to the beneficiary or through a representative payee.
    ``(iii) The representative payee may deposit into the account 
established pursuant to clause (i)--
        ``(I) past-due benefits payable to the eligible individual in 
    an amount less than that specified in clause (i)(II), and
        ``(II) any other funds representing an underpayment under this 
    title to such individual, provided that the amount of such 
    underpayment is equal to or exceeds the maximum monthly benefit 
    payable under this title to an eligible individual.
    ``(iv) The Commissioner of Social Security shall establish a system 
for accountability monitoring whereby such representative payee shall 
report, at such time and in such manner as the Commissioner shall 
require, on activity respecting funds in the account established 
pursuant to clause (i).''.
        (2) Exclusion from resources.--Section 1613(a) (42 U.S.C. 
    1382b(a)) is amended--
            (A) in paragraph (9), by striking ``; and'' and inserting a 
        semicolon;
            (B) in the first paragraph (10), by striking the period and 
        inserting a semicolon;
            (C) by redesignating the second paragraph (10) as paragraph 
        (11), and by striking the period and inserting ``; and''; and
            (D) by adding at the end the following:
        ``(12) the assets and accrued interest or other earnings of any 
    account established and maintained in accordance with section 
    1631(a)(2)(F).''.
        (3) Exclusion from income.--Section 1612(b) (42 U.S.C. 
    1382a(b)) is amended--
            (A) by striking ``and'' at the end of paragraph (19);
            (B) by striking the period at the end of paragraph (20) and 
        inserting ``; and''; and
            (C) by adding at the end the following new paragraph:
        ``(21) the interest or other earnings on any account 
    established and maintained in accordance with section 
    1631(a)(2)(F).''.
        (4) Effective date.--The amendments made by this subsection 
    shall apply to payments made after the date of the enactment of 
    this Act.
    SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITUTIONALIZED 
      INDIVIDUALS WHOSE MEDICAL COSTS ARE COVERED BY PRIVATE INSURANCE.
    (a) In General.--Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B)) is 
amended--
        (1) by striking ``title XIX, or'' and inserting ``title XIX,''; 
    and
        (2) by inserting ``or, in the case of an eligible individual 
    under the age of 18 receiving payments (with respect to such 
    individual) under any health insurance policy issued by a private 
    provider of such insurance'' after ``section 1614(f)(2)(B),''.
    (b) Effective Date.--The amendment made by this section shall apply 
to benefits for months beginning 90 or more days after the date of the 
enactment of this Act, without regard to whether regulations have been 
issued to implement such amendments.

SEC. 215. REGULATIONS.

    Within 3 months after the date of the enactment of this Act, the 
Commissioner of Social Security shall prescribe such regulations as may 
be necessary to implement the amendments made by this subtitle.

               Subtitle C--State Supplementation Programs

    SEC. 221. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS APPLICABLE 
      TO OPTIONAL STATE PROGRAMS FOR SUPPLEMENTATION OF SSI BENEFITS.
    Section 1618 (42 U.S.C. 1382g) is hereby repealed.

   Subtitle D--Studies Regarding Supplemental Security Income Program

    SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME 
      PROGRAM.
    Title XVI (42 U.S.C. 1381 et seq.), as amended by section 201(c), 
is amended by adding at the end the following new section:


                        ``ANNUAL REPORT ON PROGRAM

    ``Sec. 1637. (a) Not later than May 30 of each year, the 
Commissioner of Social Security shall prepare and deliver a report 
annually to the President and the Congress regarding the program under 
this title, including--
        ``(1) a comprehensive description of the program;
        ``(2) historical and current data on allowances and denials, 
    including number of applications and allowance rates at initial 
    determinations, reconsiderations, administrative law judge 
    hearings, council of appeals hearings, and Federal court appeal 
    hearings;
        ``(3) historical and current data on characteristics of 
    recipients and program costs, by recipient group (aged, blind, work 
    disabled adults, and children);
        ``(4) projections of future number of recipients and program 
    costs, through at least 25 years;
        ``(5) number of redeterminations and continuing disability 
    reviews, and the outcomes of such redeterminations and reviews;
        ``(6) data on the utilization of work incentives;
        ``(7) detailed information on administrative and other program 
    operation costs;
        ``(8) summaries of relevant research undertaken by the Social 
    Security Administration, or by other researchers;
        ``(9) State supplementation program operations;
        ``(10) a historical summary of statutory changes to this title; 
    and
        ``(11) such other information as the Commissioner deems useful.
    ``(b) Each member of the Social Security Advisory Board shall be 
permitted to provide an individual report, or a joint report if agreed, 
of views of the program under this title, to be included in the annual 
report under this section.''.

SEC. 232. STUDY OF DISABILITY DETERMINATION PROCESS.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, and from funds otherwise appropriated, the 
Commissioner of Social Security shall make arrangements with the 
National Academy of Sciences, or other independent entity, to conduct a 
study of the disability determination process under titles II and XVI 
of the Social Security Act. This study shall be undertaken in 
consultation with professionals representing appropriate disciplines.
    (b) Study Components.--The study described in subsection (a) shall 
include--
        (1) an initial phase examining the appropriateness of, and 
    making recommendations regarding--
            (A) the definitions of disability in effect on the date of 
        the enactment of this Act and the advantages and disadvantages 
        of alternative definitions; and
            (B) the operation of the disability determination process, 
        including the appropriate method of performing comprehensive 
        assessments of individuals under age 18 with physical and 
        mental impairments;
        (2) a second phase, which may be concurrent with the initial 
    phase, examining the validity, reliability, and consistency with 
    current scientific knowledge of the standards and individual 
    listings in the Listing of Impairments set forth in appendix 1 of 
    subpart P of part 404 of title 20, Code of Federal Regulations, and 
    of related evaluation procedures as promulgated by the Commissioner 
    of Social Security; and
        (3) such other issues as the applicable entity considers 
    appropriate.
    (c) Reports and Regulations.--
        (1) Reports.--The Commissioner of Social Security shall request 
    the applicable entity, to submit an interim report and a final 
    report of the findings and recommendations resulting from the study 
    described in this section to the President and the Congress not 
    later than 18 months and 24 months, respectively, from the date of 
    the contract for such study, and such additional reports as the 
    Commissioner deems appropriate after consultation with the 
    applicable entity.
        (2) Regulations.--The Commissioner of Social Security shall 
    review both the interim and final reports, and shall issue 
    regulations implementing any necessary changes following each 
    report.

SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.

    Not later than January 1, 1998, the Comptroller General of the 
United States shall study and report on--
        (1) the impact of the amendments made by, and the provisions 
    of, this title on the supplemental security income program under 
    title XVI of the Social Security Act; and
        (2) extra expenses incurred by families of children receiving 
    benefits under such title that are not covered by other Federal, 
    State, or local programs.

      Subtitle E--National Commission on the Future of Disability

SEC. 241. ESTABLISHMENT.

    There is established a commission to be known as the National 
Commission on the Future of Disability (referred to in this subtitle as 
the ``Commission'').

SEC. 242. DUTIES OF THE COMMISSION.

    (a) In General.--The Commission shall develop and carry out a 
comprehensive study of all matters related to the nature, purpose, and 
adequacy of all Federal programs serving individuals with disabilities. 
In particular, the Commission shall study the disability insurance 
program under title II of the Social Security Act and the supplemental 
security income program under title XVI of such Act.
    (b) Matters Studied.--The Commission shall prepare an inventory of 
Federal programs serving individuals with disabilities, and shall 
examine--
        (1) trends and projections regarding the size and 
    characteristics of the population of individuals with disabilities, 
    and the implications of such analyses for program planning;
        (2) the feasibility and design of performance standards for the 
    Nation's disability programs;
        (3) the adequacy of Federal efforts in rehabilitation research 
    and training, and opportunities to improve the lives of individuals 
    with disabilities through all manners of scientific and engineering 
    research; and
        (4) the adequacy of policy research available to the Federal 
    Government, and what actions might be undertaken to improve the 
    quality and scope of such research.
    (c) Recommendations.--The Commission shall submit to the 
appropriate committees of the Congress and to the President 
recommendations and, as appropriate, proposals for legislation, 
regarding--
        (1) which (if any) Federal disability programs should be 
    eliminated or augmented;
        (2) what new Federal disability programs (if any) should be 
    established;
        (3) the suitability of the organization and location of 
    disability programs within the Federal Government;
        (4) other actions the Federal Government should take to prevent 
    disabilities and disadvantages associated with disabilities; and
        (5) such other matters as the Commission considers appropriate.

SEC. 243. MEMBERSHIP.

    (a) Number and Appointment.--
        (1) In general.--The Commission shall be composed of 15 
    members, of whom--
            (A) five shall be appointed by the President, of whom not 
        more than 3 shall be of the same major political party;
            (B) three shall be appointed by the Majority Leader of the 
        Senate;
            (C) two shall be appointed by the Minority Leader of the 
        Senate;
            (D) three shall be appointed by the Speaker of the House of 
        Representatives; and
            (E) two shall be appointed by the Minority Leader of the 
        House of Representatives.
        (2) Representation.--The Commission members shall be chosen 
    based on their education, training, or experience. In appointing 
    individuals as members of the Commission, the President and the 
    Majority and Minority Leaders of the Senate and the Speaker and 
    Minority Leader of the House of Representatives shall seek to 
    ensure that the membership of the Commissionreflects the general 
interests of the business and taxpaying community and the diversity of 
individuals with disabilities in the United States.
    (b) Comptroller General.--The Comptroller General of the United 
States shall advise the Commission on the methodology and approach of 
the study of the Commission.
    (c) Term of Appointment.--The members shall serve on the Commission 
for the life of the Commission.
    (d) Meetings.--The Commission shall locate its headquarters in the 
District of Columbia, and shall meet at the call of the Chairperson, 
but not less than 4 times each year during the life of the Commission.
    (e) Quorum.--Ten members of the Commission shall constitute a 
quorum, but a lesser number may hold hearings.
    (f) Chairperson and Vice Chairperson.--Not later than 15 days after 
the members of the Commission are appointed, such members shall 
designate a Chairperson and Vice Chairperson from among the members of 
the Commission.
    (g) Continuation of Membership.--If a member of the Commission 
becomes an officer or employee of any government after appointment to 
the Commission, the individual may continue as a member until a 
successor member is appointed.
    (h) Vacancies.--A vacancy on the Commission shall be filled in the 
manner in which the original appointment was made not later than 30 
days after the Commission is given notice of the vacancy.
    (i) Compensation.--Members of the Commission shall receive no 
additional pay, allowances, or benefits by reason of their service on 
the Commission.
    (j) 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.

SEC. 244. STAFF AND SUPPORT SERVICES.

    (a) Director.--
        (1) Appointment.--Upon consultation with the members of the 
    Commission, the Chairperson shall appoint a Director of the 
    Commission.
        (2) Compensation.--The Director shall be paid the rate of basic 
    pay for level V of the Executive Schedule.
    (b) Staff.--With the approval of the Commission, the Director may 
appoint such personnel as the Director considers appropriate.
    (c) Applicability of Civil Service Laws.--The staff of the 
Commission shall be appointed without regard to the provisions of title 
5, United States Code, governing appointments in the competitive 
service, and shall be paid without regard to the provisions of chapter 
51 and subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates.
    (d) Experts and Consultants.--With the approval of the Commission, 
the Director may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code.
    (e) Staff of Federal Agencies.--Upon the request of the Commission, 
the head of any Federal agency may detail, on a reimbursable basis, any 
of the personnel of such agency to the Commission to assist in carrying 
out the duties of the Commission under this subtitle.
    (f) Other Resources.--The Commission shall have reasonable access 
to materials, resources, statistical data, and other information from 
the Library of Congress and agencies and elected representatives of the 
executive and legislative branches of the Federal Government. The 
Chairperson of the Commission shall make requests for such access in 
writing when necessary.
    (g) Physical Facilities.--The Administrator of the General Services 
Administration shall locate suitable office space for the operation of 
the Commission. The facilities shall serve as the headquarters of the 
Commission and shall include all necessary equipment and incidentals 
required for proper functioning of the Commission.

SEC. 245. POWERS OF COMMISSION.

    (a) Hearings.--The Commission may conduct public hearings or forums 
at the discretion of the Commission, at any time and place the 
Commission is able to secure facilities and witnesses, for the purpose 
of carrying out the duties of the Commission under this subtitle.
    (b) Delegation of Authority.--Any member or agent of the Commission 
may, if authorized by the Commission, take any action the Commission is 
authorized to take by this section.
    (c) Information.--The Commission may secure directly from any 
Federal agency information necessary to enable the Commission to carry 
out its duties under this subtitle. Upon request of the Chairperson or 
Vice Chairperson of the Commission, the head of a Federal agency shall 
furnish the information to the Commission to the extent permitted by 
law.
    (d) Gifts, Bequests, and Devises.--The Commission may accept, use, 
and dispose of gifts, bequests, or devises of services or property, 
both real and personal, for the purpose of aiding or facilitating the 
work of the Commission. Gifts, bequests, or devises of money and 
proceeds from sales of other property received as gifts, bequests, or 
devises shall be deposited in the Treasury and shall be available for 
disbursement upon order of the Commission.
    (e) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other Federal agencies.

SEC. 246. REPORTS.

    (a) Interim Report.--Not later than 1 year prior to the date on 
which the Commission terminates pursuant to section 247, the Commission 
shall submit an interim report to the President and to the Congress. 
The interim report shall contain a detailed statement of the findings 
and conclusions of the Commission, together with the Commission's 
recommendations for legislative and administrative action, based on the 
activities of the Commission.
    (b) Final Report.--Not later than the date on which the Commission 
terminates, the Commission shall submit to the Congress and to the 
President a final report containing--
        (1) a detailed statement of final findings, conclusions, and 
    recommendations; and
        (2) an assessment of the extent to which recommendations of the 
    Commission included in the interim report under subsection (a) have 
    been implemented.
    (c) Printing and Public Distribution.--Upon receipt of each report 
of the Commission under this section, the President shall--
        (1) order the report to be printed; and
        (2) make the report available to the public upon request.

SEC. 247. TERMINATION.

    The Commission shall terminate on the date that is 2 years after 
the date on which the members of the Commission have met and designated 
a Chairperson and Vice Chairperson.

SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out the purposes of the Commission.

                 Subtitle F--Retirement Age Eligibility

    SEC. 251. ELIGIBILITY FOR SUPPLEMENTAL SECURITY INCOME BENEFITS 
      BASED ON SOCIAL SECURITY RETIREMENT AGE.
    (a) In General.--Section 1614(a)(1)(A) (42 U.S.C. 1382C(a)(1)(A)) 
is amended by striking ``is 65 years of age or older,'' and inserting 
``has attained retirement age.''.
    (b) Retirement Age Defined.--Section 1614 (42 U.S.C. 1382c) is 
amended by adding at the end the following new subsection:

                            ``Retirement Age

    ``(g) For purposes of this title, the term ``retirement age'' has 
the meaning given such term by section 216(l)(1).''.
    (c) Conforming Amendments.--Sections 1601, 1612(b)(4), 1615(a)(1), 
and 1620(b)(2) (42 U.S.C. 1381, 1382a(b)(4), 1382d(a)(1), and 
1382i(b)(2)) are amended by striking ``age 65'' each place it appears 
and inserting ``retirement age''.
    (d) Effective Date.--The amendments made by this section shall 
apply to applicants for benefits for months beginning after September 
30, 1995.

                        TITLE III--CHILD SUPPORT

SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.

    Except as otherwise specifically provided, where ever 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 section or other provision of the Social Security Act.

     Subtitle A--Eligibility for Services; Distribution of Payments

    SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT 
      SERVICES.
    (a) State Plan Requirements.--Section 454 (42 U.S.C. 654) is 
amended--
        (1) by striking paragraph (4) and inserting the following new 
    paragraph:
        ``(4) provide that the State will--
            ``(A) provide services relating to the establishment of 
        paternity or the establishment, modification, or enforcement of 
        child support obligations, as appropriate, under the plan with 
        respect to--
                ``(i) each child for whom (I) assistance is provided 
            under the State program funded under part A of this title, 
            (II) benefits or services for foster care maintenance and 
            adoption assistance are provided under the State program 
            funded under part B of this title, or (III) medical 
            assistance is provided under the State plan approved under 
            title XIX, unless the State agency administering the plan 
            determines (in accordance with paragraph (29)) that it is 
            against the best interests of the child to do so; and
                ``(ii) any other child, if an individual applies for 
            such services with respect to the child; and
            ``(B) enforce any support obligation established with 
        respect to--
                ``(i) a child with respect to whom the State provides 
            services under the plan; or
                ``(ii) the custodial parent of such a child.''; and
        (2) in paragraph (6)--
            (A) by striking ``provide that'' and inserting ``provide 
        that--'';
            (B) by striking subparagraph (A) and inserting the 
        following new subparagraph:
            ``(A) services under the plan shall be made available to 
        residents of other States on the same terms as to residents of 
        the State submitting the plan;'';
            (C) in subparagraph (B), by inserting ``on individuals not 
        receiving assistance under any State program funded under part 
        A'' after ``such services shall be imposed'';
            (D) in each of subparagraphs (B), (C), (D), and (E)--
                (i) by indenting the subparagraph in the same manner 
            as, and aligning the left margin of the subparagraph with 
            the left margin of, the matter inserted by subparagraph (B) 
            of this paragraph; and
                (ii) by striking the final comma and inserting a 
            semicolon; and
            (E) in subparagraph (E), by indenting each of clauses (i) 
        and (ii) 2 additional ems.
    (b) Continuation of Services for Families Ceasing To Receive 
Assistance Under the State Program Funded Under Part A.--Section 454 
(42 U.S.C. 654) is amended--
        (1) by striking ``and'' at the end of paragraph (23);
        (2) by striking the period at the end of paragraph (24) and 
    inserting ``; and''; and
        (3) by adding after paragraph (24) the following new paragraph:
        ``(25) provide that if a family with respect to which services 
    are provided under the plan ceases to receive assistance under the 
    State program funded under part A, the State shall provide 
    appropriate notice to the family and continue to provide such 
    services, subject to the same conditions and on the same basis as 
    in the case of other individuals to whom services are furnished 
    under the plan, except that an application or other request to 
    continue services shall not be required of such a family and 
    paragraph (6)(B) shall not apply to the family.''.
    (c) Conforming Amendments.--
        (1) Section 452(b) (42 U.S.C. 652(b)) is amended by striking 
    ``454(6)'' and inserting ``454(4)''.
        (2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended by 
    striking ``454(6)'' each place it appears and inserting 
    ``454(4)(A)(ii)''.
        (3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended by 
    striking ``in the case of overdue support which a State has agreed 
    to collect under section 454(6)'' and inserting ``in any other 
    case''.
        (4) Section 466(e) (42 U.S.C. 666(e)) is amended by striking 
    ``paragraph (4) or (6) of section 454'' and inserting ``section 
    454(4)''.

SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

    (a) In General.--Section 457 (42 U.S.C. 657) is amended to read as 
follows:

``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

    ``(a) In General.--An amount collected on behalf of a family as 
support by a State pursuant to a plan approved under this part shall be 
distributed as follows:
        ``(1) Families receiving assistance.--In the case of a family 
    receiving assistance from the State, the State shall--
            ``(A) pay to the Federal Government the Federal share of 
        the amount so collected; and
            ``(B) retain, or distribute to the family, the State share 
        of the amount so collected.
        ``(2) Families that formerly received assistance.--In the case 
    of a family that formerly received assistance from the State:
            ``(A) Current support payments.--To the extent that the 
        amount so collected does not exceed the amount required to be 
        paid to the family for the month in which collected, the State 
        shall distribute the amount so collected to the family.
            ``(B) Payments of arrearages.--To the extent that the 
        amount so collected exceeds the amount required to be paid to 
        the family for the month in which collected, the State shall 
        distribute the amount so collected as follows:
                ``(i) Distribution of arrearages that accrued after the 
            family ceased to receive assistance.--

                    ``(I) Pre-october 1997.--The provisions of this 
                section (other than subsection (b)(1)) as in effect and 
                applied on the day before the date of the enactment of 
                section 302 of the Personal Responsibility and Work 
                Opportunity Act of 1995 shall apply with respect to the 
                distribution of support arrearages that--

                        ``(aa) accrued after the family ceased to 
                    receive assistance, and
                        ``(bb) are collected before October 1, 1997.

                    ``(II) Post-september 1997.--With respect the 
                amount so collected on or after October 1, 1997, or 
                before such date, at the option of the State--

                        ``(aa) In general.--The State shall first 
                    distribute the amount so collected (other than any 
                    amount described in clause (iv)) to the family to 
                    the extent necessary to satisfy any support 
                    arrearages with respect to the family that accrued 
                    after the family ceased to receive assistance from 
                    the State.
                        ``(bb) Reimbursement of governments for 
                    assistance provided to the family.--After the 
                    application of division (aa) and clause 
                    (ii)(II)(aa) with respect to the amount so 
                    collected, the State shall retain the State share 
                    of the amount so collected, and pay to the Federal 
                    Government the Federal share (as defined in 
                    subsection (c)(2)(A)) of the amount so collected, 
                    but only to the extent necessary to reimburse 
                    amounts paid to the family as assistance by the 
                    State.
                        ``(cc) Distribution of the remainder to the 
                    family.--To the extent that neither division (aa) 
                    nor division (bb) applies to the amount so 
                    collected, the State shall distribute the amount to 
                    the family.
                ``(ii) Distribution of arrearages that accrued before 
            the family received assistance.--

                    ``(I) Pre-october 2000.--The provisions of this 
                section (other than subsection (b)(1)) as in effect and 
                applied on the day before the date of the enactment of 
                section 302 of the Personal Responsibility and Work 
                Opportunity Act of 1995 shall apply with respect to the 
                distribution of support arrearages that--

                        ``(aa) accrued before the family received 
                    assistance, and
                        ``(bb) are collected before October 1, 2000.

                    ``(II) Post-september 2000.--Unless, based on the 
                report required by paragraph (4), the Congress 
                determines otherwise, with respect to the amount so 
                collected on or after October 1, 2000, or before such 
                date, at the option of the State--

                        ``(aa) In general.--The State shall first 
                    distribute the amount so collected (other than any 
                    amount described in clause (iv)) to the family to 
                    the extent necessary to satisfy any support 
                    arrearages with respect to the family that accrued 
                    before the family received assistance from the 
                    State.
                        ``(bb) Reimbursement of governments for 
                    assistance provided to the family.--After the 
                    application of clause (i)(II)(aa) and division (aa) 
                    with respect to the amount so collected, the State 
                    shall retain the State share of the amount so 
                    collected, and pay to the Federal Government the 
                    Federal share (as defined in subsection (c)(2)) of 
                    the amount so collected, but only to the extent 
                    necessary to reimburse of the amounts paid to the 
                    family as assistance by the State.
                        ``(cc) Distribution of the remainder to the 
                    family.--To the extent that neither division (aa) 
                    nor division (bb) applies to the amount so 
                    collected, the State shall distribute the amount to 
                    the family.
                ``(iii) Distribution of arrearages that accrued while 
            the family received assistance.--In the case of a family 
            described in this subparagraph, the provisions of paragraph 
            (1) shall apply with respect to the distribution of support 
            arrearages that accrued while the family received 
            assistance.
                ``(iv) Amounts collected pursuant to section 464.--
            Notwithstanding any other provision of this section, any 
            amount of support collected pursuant to section 464 shall 
            be retained by the State to the extent necessary to 
            reimburse amounts paid to the family as assistance by the 
            State. The State shall pay to the Federal Government the 
            Federal share of the amounts so retained. To the extent the 
            amount collected pursuant to section 464 exceeds the amount 
            so retained, the State shall distribute the excess to the 
            family.
                ``(v) Ordering rules for distributions.--For purposes 
            of this subparagraph, the State shall treat any support 
            arrearages collected as accruing in the following order:

                    ``(I) to the period after the family ceased to 
                receive assistance;
                    ``(II) to the period before the family received 
                assistance; and
                    ``(III) to the period while the family was 
                receiving assistance.

        ``(3) Families that never received assistance.--In the case of 
    any other family, the State shall distribute the amount so 
    collected to the family.
        ``(4) Study and report.--Not later than October 1, 1998, the 
    Secretary shall report to the Congress the Secretary's findings 
    with respect to--
            ``(A) whether the distribution of post-assistance 
        arrearages to families has been effective in moving people off 
        of welfare and keeping them off of welfare;
            ``(B) whether early implementation of a pre-assistance 
        arrearage program by some states has been effective in moving 
        people off of welfare and keeping them off of welfare;
            ``(C) what the overall impact has been of the amendments 
        made by the Personal Responsibility and Work Opportunity Act of 
        1995 with respect to child support enforcement in moving people 
        off of welfare and keeping them off of welfare; and
            ``(D) based on the information and data the Secretary has 
        obtained, what changes, if any, should be made in the policies 
        related to the distribution of child support arrearages.
    ``(b) Continuation Of Assignments.--Any rights to support 
obligations, which were assigned to a State as a condition of receiving 
assistance from the State under part A and which were in effect on the 
day before the date of the enactment of the Personal Responsibility and 
Work Opportunity Act of 1995, shall remain assigned after such date.
    ``(c) Definitions.--As used in subsection (a):
        ``(1) Assistance.--The term `assistance from the State' means--
            ``(A) assistance under the State program funded under part 
        A or under the State plan approved under part A of this title 
        (as in effect on the day before the date of the enactment of 
        the Personal Responsibility and Work Opportunity Act of 1995); 
        or
            ``(B) benefits under the State plan approved under part E 
        of this title (as in effect on the day before the date of the 
        enactment of the Personal Responsibility and Work Opportunity 
        Act of 1995).
        ``(2) Federal share.--The term `Federal share' means that 
    portion of the amount collected resulting from the application of 
    the Federal medical percentage in effect for the fiscal year in 
    which the amount is collected.
        ``(3) Federal medical assistance percentage.--The term `Federal 
    medical assistance percentage' means--
            ``(A) the Federal medical assistance percentage (as defined 
        in section 1118), in the case of Puerto Rico, the Virgin 
        Islands, Guam, and American Samoa; or
            ``(B) the Federal medical assistance percentage (as defined 
        in section 1905(b)) in the case of any other State.
        ``(4) State share.--The term `State share' means 100 percent 
    minus the Federal share.
    ``(d) Hold Harmless Provision.--If the amounts collected which 
could be retained by the State in the fiscal year (to the extent 
necessary to reimburse the State for amounts paid to families as 
assistance by the State) are less than the State share of the amounts 
collected in fiscal year 1995 (determined in accordance with section 
457 as in effect on the day before the date of the enactment of the 
Personal Responsibility and Work Opportunity Act of 1995), the State 
share for the fiscal year shall be an amount equal to the State share 
in fiscal year 1995.''.
    (b) Conforming Amendments.--
        (1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by 
    striking ``section 457(b)(4) or (d)(3)'' and inserting ``section 
    457''.
        (2) Section 454 (42 U.S.C. 654) is amended--
            (A) in paragraph (11)--
                (i) by striking ``(11)'' and inserting ``(11)(A)''; and
                (ii) by inserting after the semicolon ``and''; and
            (B) by redesignating paragraph (12) as subparagraph (B) of 
        paragraph (11).
    (c) Effective Dates.--
        (1) In General.--Except as provided in paragraph (2), the 
    amendments made by this section shall be effective on October 1, 
    1996, or earlier at the State's option.
        (2) Conforming amendments.--The amendments made by subsection 
    (b)(2) shall become effective on the date of the enactment of this 
    Act.

SEC. 303. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 301(b) of this Act, is amended--
        (1) by striking ``and'' at the end of paragraph (24);
        (2) by striking the period at the end of paragraph (25) and 
    inserting ``; and''; and
        (3) by adding after paragraph (25) the following new paragraph:
        ``(26) will have in effect safeguards, applicable to all 
    confidential information handled by the State agency, that are 
    designed to protect the privacy rights of the parties, including--
            ``(A) safeguards against unauthorized use or disclosure of 
        information relating to proceedings or actions to establish 
        paternity, or to establish or enforce support;
            ``(B) prohibitions against the release of information on 
        the whereabouts of 1 party to another party against whom a 
        protective order with respect to the former party has been 
        entered; and
            ``(C) prohibitions against the release of information on 
        the whereabouts of 1 party to another party if the State has 
        reason to believe that the release of the information may 
        result in physical or emotional harm to the former party.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

    (a) In General.--Section 454 (42 U.S.C. 654), as amended by section 
302(b)(2) of this Act, is amended by inserting after paragraph (11) the 
following new paragraph:
        ``(12) provide for the establishment of procedures to require 
    the State to provide individuals who are applying for or receiving 
    services under the State plan, or who are parties to cases in which 
    services are being provided under the State plan--
            ``(A) with notice of all proceedings in which support 
        obligations might be established or modified; and
            ``(B) with a copy of any order establishing or modifying a 
        child support obligation, or (in the case of a petition for 
        modification) a notice of determination that there should be no 
        change in the amount of the child support award, within 14 days 
        after issuance of such order or determination;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

                  Subtitle B--Locate and Case Tracking

SEC. 311. STATE CASE REGISTRY.

    Section 454A, as added by section 344(a)(2) of this Act, is amended 
by adding at the end the following new subsections:
    ``(e) State Case Registry.--
        ``(1) Contents.--The automated system required by this section 
    shall include a registry (which shall be known as the `State case 
    registry') that contains records with respect to--
            ``(A) each case in which services are being provided by the 
        State agency under the State plan approved under this part; and
            ``(B) each support order established or modified in the 
        State on or after October 1, 1998.
        ``(2) Linking of local registries.--The State case registry may 
    be established by linking local case registries of support orders 
    through an automated information network, subject to this section.
        ``(3) Use of standardized data elements.--Such records shall 
    use standardized data elements for both parents (such as names, 
    social security numbers and other uniform identification numbers, 
    dates of birth, and case identification numbers), and contain such 
    other information (such as on-case status) as the Secretary may 
    require.
        ``(4) Payment records.--Each case record in the State case 
    registry with respect to which services are being provided under 
    the State plan approved under this part and with respect to which a 
    support order has been established shall include a record of--
            ``(A) the amount of monthly (or other periodic) support 
        owed under the order, and other amounts (including arrearages, 
        interest or late payment penalties, and fees) due or overdue 
        under the order;
            ``(B) any amount described in subparagraph (A) that has 
        been collected;
            ``(C) the distribution of such collected amounts;
            ``(D) the birth date of any child for whom the order 
        requires the provision of support; and
            ``(E) the amount of any lien imposed with respect to the 
        order pursuant to section 466(a)(4).
        ``(5) Updating and monitoring.--The State agency operating the 
    automated system required by this section shall promptly establish 
    and maintain, and regularly monitor, case records in the State case 
    registry with respect to which services are being provided under 
    the State plan approved under this part, on the basis of--
            ``(A) information on administrative actions and 
        administrative and judicial proceedings and orders relating to 
        paternity and support;
            ``(B) information obtained from comparison with Federal, 
        State, or local sources of information;
            ``(C) information on support collections and distributions; 
        and
            ``(D) any other relevant information.
    ``(f) Information Comparisons and Other Disclosures of 
Information.--The State shall use the automated system required by this 
section to extract information from (at such times, and in such 
standardized format or formats, as may be required by the Secretary), 
to share and compare information with, and to receive information from, 
other data bases and information comparison services, in order to 
obtain (or provide) information necessary to enable the State agency 
(or the Secretary or other State or Federal agencies) to carry out this 
part, subject to section 6103 of the Internal Revenue Code of 1986. 
Such information comparison activities shall include the following:
        ``(1) Federal case registry of child support orders.--
    Furnishing to the Federal Case Registry of Child Support Orders 
    established under section 453(h) (and update as necessary, with 
    information including notice of expiration of orders) the minimum 
    amount of information on child support cases recorded in the State 
    case registry that is necessary to operate the registry (as 
    specified by the Secretary in regulations).
        ``(2) Federal parent locator service.--Exchanging information 
    with the Federal Parent Locator Service for the purposes specified 
    in section 453.
        ``(3) Temporary family assistance and medicaid agencies.--
    Exchanging information with State agencies (of the State and of 
    other States) administering programs funded under part A, programs 
    operated under State plans under title XIX, and other programs 
    designated by the Secretary, as necessary to perform State agency 
    responsibilities under this part and under such programs.
        ``(4) Intrastate and interstate information comparisons.--
    Exchanging information with other agencies of the State, agencies 
    of other States, and interstate information networks, as necessary 
    and appropriate to carry out (or assist other States to carry out) 
    the purposes of this part.''.

SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 301(b) and 303(a) of this Act, is amended--
        (1) by striking ``and'' at the end of paragraph (25);
        (2) by striking the period at the end of paragraph (26) and 
    inserting ``; and''; and
        (3) by adding after paragraph (26) the following new paragraph:
        ``(27) provide that, on and after October 1, 1998, the State 
    agency will--
            ``(A) operate a State disbursement unit in accordance with 
        section 454B; and
            ``(B) have sufficient State staff (consisting of State 
        employees) and (at State option) contractors reporting directly 
        to the State agency to--
                ``(i) monitor and enforce support collections through 
            the unit in cases being enforced by the State pursuant to 
            section 454(4) (including carrying out the automated data 
            processing responsibilities described in section 454A(g)); 
            and
                ``(ii) take the actions described in section 466(c)(1) 
            in appropriate cases.''.
    (b) Establishment of State Disbursement Unit.--Part D of title IV 
(42 U.S.C. 651-669), as amended by section 344(a)(2) of this Act, is 
amended by inserting after section 454A the following new section:
``SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
    ``(a) State Disbursement Unit.--
        ``(1) In general.--In order for a State to meet the 
    requirements of this section, the State agency must establish and 
    operate a unit (which shall be known as the `State disbursement 
    unit') for the collection and disbursement of payments under 
    support orders--
            ``(A) in all cases being enforced by the State pursuant to 
        section 454(4); and
            ``(B) in all cases not being enforced by the State under 
        this part in which the support order is initially issued in the 
        State on or after January 1, 1994, and in which the wages of 
        the absent parent are subject to withholding pursuant to 
        section 466(a)(8)(B).
        ``(2) Operation.--The State disbursement unit shall be 
    operated--
            ``(A) directly by the State agency (or 2 or more State 
        agencies under a regional cooperative agreement), or (to the 
        extent appropriate) by a contractor responsible directly to the 
        State agency; and
            ``(B) except in cases described in paragraph (1)(B), in 
        coordination with the automated system established by the State 
        pursuant to section 454A.
        ``(3) Linking of local disbursement units.--The State 
    disbursement unit may be established by linking local disbursement 
    units through an automated information network, subject to this 
    section, if the Secretary agrees that the system will not cost more 
    nor take more time to establish or operate than a centralized 
    system. In addition, employers shall be given 1 location to which 
    income withholding is sent.
    ``(b) Required Procedures.--The State disbursement unit shall use 
automated procedures, electronic processes, and computer-driven 
technology to the maximum extent feasible, efficient, and economical, 
for the collection and disbursement of support payments, including 
procedures--
        ``(1) for receipt of payments from parents, employers, and 
    other States, and for disbursements to custodial parents and other 
    obligees, the State agency, and the agencies of other States;
        ``(2) for accurate identification of payments;
        ``(3) to ensure prompt disbursement of the custodial parent's 
    share of any payment; and
        ``(4) to furnish to any parent, upon request, timely 
    information on the current status of support payments under an 
    order requiring payments to be made by or to the parent.
    ``(c) Timing of Disbursements.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    State disbursement unit shall distribute all amounts payable under 
    section 457(a) within 2 business days after receipt from the 
    employer or other source of periodic income, if sufficient 
    information identifying the payee is provided.
        ``(2) Permissive retention of arrearages.--The State 
    disbursement unit may delay the distribution of collections toward 
    arrearages until the resolution of any timely appeal with respect 
    to such arrearages.
    ``(d) Business Day Defined.--As used in this section, the term 
`business day' means a day on which State offices are open for regular 
business.''.
    (c) Use of Automated System.--Section 454A, as added by section 
344(a)(2) and as amended by section 311 of this Act, is amended by 
adding at the end the following new subsection:
    ``(g) Collection and Distribution of Support Payments.--
        ``(1) In general.--The State shall use the automated system 
    required by this section, to the maximum extent feasible, to assist 
    and facilitate the collection and disbursement of support payments 
    through the State disbursement unit operated under section 454B, 
    through the performance of functions, including, at a minimum--
            ``(A) transmission of orders and notices to employers (and 
        other debtors) for the withholding of wages and other income--
                ``(i) within 2 business days after receipt from a 
            court, another State, an employer, the Federal Parent 
            Locator Service, or another source recognized by the State 
            of notice of, and the income source subject to, such 
            withholding; and
                ``(ii) using uniform formats prescribed by the 
            Secretary;
            ``(B) ongoing monitoring to promptly identify failures to 
        make timely payment of support; and
            ``(C) automatic use of enforcement procedures (including 
        procedures authorized pursuant to section 466(c)) if payments 
        are not timely made.
        ``(2) Business day defined.--As used in paragraph (1), the term 
    `business day' means a day on which State offices are open for 
    regular business.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1998.

SEC. 313. STATE DIRECTORY OF NEW HIRES.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 301(b), 303(a) and 312(a) of this Act, is amended--
        (1) by striking ``and'' at the end of paragraph (26);
        (2) by striking the period at the end of paragraph (27) and 
    inserting ``; and''; and
        (3) by adding after paragraph (27) the following new paragraph:
        ``(28) provide that, on and after October 1, 1997, the State 
    will operate a State Directory of New Hires in accordance with 
    section 453A.''.
    (b) State Directory of New Hires.--Part D of title IV (42 U.S.C. 
651-669) is amended by inserting after section 453 the following new 
section:

``SEC. 453A. STATE DIRECTORY OF NEW HIRES.

    ``(a) Establishment.--
        ``(1) In general.--
            ``(A) Requirement for States that have no directory.--
        Except as provided in subparagraph (B), not later than October 
        1, 1997, each State shall establish an automated directory (to 
        be known as the `State Directory of New Hires') which shall 
        contain information supplied in accordance with subsection (b) 
        by employers on each newly hired employee.
            ``(B) States with new hire reporting in existence.--A State 
        which has a new hire reporting law in existence on the date of 
        the enactment of this section may continue to operate under the 
        State law, but the State must meet the requirements of this 
        section (other than subsection (f)) not later than October 1, 
        1997.
        ``(2) Definitions.--As used in this section:
            ``(A) Employee.--The term `employee'--
                ``(i) means an individual who is an employee within the 
            meaning of chapter 24 of the Internal Revenue Code of 1986; 
            and
                ``(ii) does not include an employee of a Federal or 
            State agency performing intelligence or counterintelligence 
            functions, if the head of such agency has determined that 
            reporting pursuant to paragraph (1) with respect to the 
            employee could endanger the safety ofthe employee or 
compromise an ongoing investigation or intelligence mission.
            ``(B) Employer.--
                ``(i) In general.--The term `employer' has the meaning 
            given such term in section 3401(d) of the Internal Revenue 
            Code of 1996 and includes any governmental entity and any 
            labor organization.
                ``(ii) Labor organization.--The term `labor 
            organization' shall have the meaning given such term in 
            section 2(5) of the National Labor Relations Act, and 
            includes any entity (also known as a `hiring hall') which 
            is used by the organization and an employer to carry out 
            requirements described in section 8(f)(3) of such Act of an 
            agreement between the organization and the employer.
    ``(b) Employer Information.--
        ``(1) Reporting requirement.--
            ``(A) In general.--Except as provided in subparagraphs (B) 
        and (C), each employer shall furnish to the Directory of New 
        Hires of the State in which a newly hired employee works, a 
        report that contains the name, address, and social security 
        number of the employee, and the name and address of, and 
        identifying number assigned under section 6109 of the Internal 
        Revenue Code of 1986 to, the employer.
            ``(B) Multistate employers.--An employer that has employees 
        who are employed in 2 or more States and that transmits reports 
        magnetically or electronically may comply with subparagraph (A) 
        by designating 1 State in which such employer has employees to 
        which the employer will transmit the report described in 
        subparagraph (A), and transmitting such report to such State. 
        Any employer that transmits reports pursuant to this 
        subparagraph shall notify the Secretary in writing as to which 
        State such employer designates for the purpose of sending 
        reports.
            ``(C) Federal government employers.--Any department, 
        agency, or instrumentality of the United States shall comply 
        with subparagraph (A) by transmitting the report described in 
        subparagraph (A) to the National Directory of New Hires 
        established pursuant to section 453.
        ``(2) Timing of report.--Each State may provide the time within 
    which the report required by paragraph (1) shall be made with 
    respect to an employee, but such report shall be made--
            ``(A) not later than 20 days after the date the employer 
        hires the employee; or
            ``(B) in the case of an employer transmitting reports 
        magnetically or electronically, by 2 monthly transmissions (if 
        necessary) not less than 12 days nor more than 16 days apart.
    ``(c) Reporting Format and Method.--Each report required by 
subsection (b) shall be made on a W-4 form or, at the option of the 
employer, an equivalent form, and may be transmitted by 1st class mail, 
magnetically, or electronically.
    ``(d) Civil Money Penalties on Noncomplying Employers.--The State 
shall have the option to set a State civil money penalty which shall be 
less than--
        ``(1) $25; or
        ``(2) $500 if, under State law, the failure is the result of a 
    conspiracy between the employer and the employee to not supply the 
    required report or to supply a false or incomplete report.
    ``(e) Entry of Employer Information.--Information shall be entered 
into the data base maintained by the State Directory of New Hires 
within 5 business days of receipt from an employer pursuant to 
subsection (b).
    ``(f) Information Comparisons.--
        ``(1) In general.--Not later than May 1, 1998, an agency 
    designated by the State shall, directly or by contract, conduct 
    automated comparisons of the social security numbers reported by 
    employers pursuant to subsection (b) and the social security 
    numbers appearing in the records of the State case registry for 
    cases being enforced under the State plan.
        ``(2) Notice of match.--When an information comparison 
    conducted under paragraph (1) reveals a match with respect to the 
    social security number of an individual required to provide support 
    under a support order, the State Directory of New Hires shall 
    provide the agency administering the State plan approved under this 
    part of the appropriate State with the name, address, and social 
    security number of the employee to whom the social security number 
    is assigned, and the name of, and identifying number assigned under 
    section 6109 of the Internal Revenue Code of 1986 to the employer.
    ``(g) Transmission of Information.--
        ``(1) Transmission of wage withholding notices to employers.--
    Within 2 business days after the date information regarding a newly 
    hired employee is entered into the State Directory of New Hires, 
    the State agency enforcing the employee's child support obligation 
    shall transmit a notice to the employer of the employee directing 
    the employer to withhold from the wages of the employee an amount 
    equal to the monthly (or other periodic) child support obligation 
    (including any past due support obligation) of the employee, unless 
    the employee's wages are not subject to withholding pursuant to 
    section 466(b)(3).
        ``(2) Transmissions to the national directory of new hires.--
            ``(A) New hire information.--Within 3 business days after 
        the date information regarding a newly hired employee is 
        entered into the State Directory of New Hires, the State 
        Directory of New Hires shall furnish the information to the 
        National Directory of New Hires.
            ``(B) Wage and unemployment compensation information.--The 
        State Directory of New Hires shall, on a quarterly basis, 
        furnish to the National Directory of New Hires extracts of the 
        reports required under section303(a)(6) to be made to the 
Secretary of Labor concerning the wages and unemployment compensation 
paid to individuals, by such dates, in such format, and containing such 
information as the Secretary of Health and Human Services shall specify 
in regulations.
        ``(3) Business day defined.--As used in this subsection, the 
    term `business day' means a day on which State offices are open for 
    regular business.
    ``(h) Other Uses of New Hire Information.--
        ``(1) Location of child support obligors.--The agency 
    administering the State plan approved under this part shall use 
    information received pursuant to subsection (f)(2) to locate 
    individuals for purposes of establishing paternity and 
    establishing, modifying, and enforcing child support obligations.
        ``(2) Verification of eligibility for certain programs.--A 
    State agency responsible for administering a program specified in 
    section 1137(b) shall have access to information reported by 
    employers pursuant to subsection (b) of this section for purposes 
    of verifying eligibility for the program.
        ``(3) Administration of employment security and workers' 
    compensation.--State agencies operating employment security and 
    workers' compensation programs shall have access to information 
    reported by employers pursuant to subsection (b) for the purposes 
    of administering such programs.''.
    (c) Quarterly Wage Reporting.--Section 1137(a)(3) (42 U.S.C. 1320b-
7(a)(3)) is amended--
        (1) by inserting ``(including State and local governmental 
    entities and labor organizations (as defined in section 
    453A(a)(2)(B)(iii))'' after ``employers''; and
        (2) by inserting ``, and except that no report shall be filed 
    with respect to an employee of a State or local agency performing 
    intelligence or counterintelligence functions, if the head of such 
    agency has determined that filing such a report could endanger the 
    safety of the employee or compromise an ongoing investigation or 
    intelligence mission'' after ``paragraph (2)''.

SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--
        (1) In general.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is 
    amended to read as follows:
        ``(1)(A) Procedures described in subsection (b) for the 
    withholding from income of amounts payable as support in cases 
    subject to enforcement under the State plan.
        ``(B) Procedures under which the wages of a person with a 
    support obligation imposed by a support order issued (or modified) 
    in the State before October 1, 1996, if not otherwise subject to 
    withholding under subsection (b), shall become subject to 
    withholding as provided in subsection (b) if arrearages occur, 
    without the need for a judicial or administrative hearing.''.
        (2) Conforming amendments.--
            (A) Section 466(b) (42 U.S.C. 666(b)) is amended in the 
        matter preceding paragraph (1), by striking ``subsection 
        (a)(1)'' and inserting ``subsection (a)(1)(A)''.
            (B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended to 
        read as follows:
        ``(4)(A) Such withholding must be carried out in full 
    compliance with all procedural due process requirements of the 
    State, and the State must send notice to each noncustodial parent 
    to whom paragraph (1) applies--
            ``(i) that the withholding has commenced; and
            ``(ii) of the procedures to follow if the noncustodial 
        parent desires to contest such withholding on the grounds that 
        the withholding or the amount withheld is improper due to a 
        mistake of fact.
        ``(B) The notice under subparagraph (A) of this paragraph shall 
    include the information provided to the employer under paragraph 
    (6)(A).''.
            (C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended by 
        striking all that follows ``administered by'' and inserting 
        ``the State through the State disbursement unit established 
        pursuant to section 454B, in accordance with the requirements 
        of section 454B.''.
            (D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is 
        amended--
                (i) in clause (i), by striking ``to the appropriate 
            agency'' and all that follows and inserting ``to the State 
            disbursement unit within 2 business days after the date the 
            amount would (but for this subsection) have been paid or 
            credited to the employee, for distribution in accordance 
            with this part. The employer shall comply with the 
            procedural rules relating to income withholding of the 
            State in which the employee works, regardless of the State 
            where the notice originates.''.
                (ii) in clause (ii), by inserting ``be in a standard 
            format prescribed by the Secretary, and'' after ``shall''; 
            and
                (iii) by adding at the end the following new clause:
        ``(iii) As used in this subparagraph, the term `business day' 
    means a day on which State offices are open for regular 
    business.''.
            (E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is 
        amended by striking ``any employer'' and all that follows and 
        inserting ``any employer who--
            ``(i) discharges from employment, refuses to employ, or 
        takes disciplinary action against any noncustodial parent 
        subject to wage withholding required by this subsection because 
        of the existence of such withholding and the obligations or 
        additional obligations which it imposes upon the employer; or
            ``(ii) fails to withhold support from wages, or to pay such 
        amounts to the State disbursement unit in accordance with this 
        subsection.''.
            (F) Section 466(b) (42 U.S.C. 666(b)) is amended by adding 
        at the end the following new paragraph:
        ``(11) Procedures under which the agency administering the 
    State plan approved under this part may execute a withholding order 
    without advance notice to the obligor, including issuing the 
    withholding order through electronic means.''.
    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.

SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)) is amended by adding at the end 
the following new paragraph:
        ``(12) Locator information from interstate networks.--
    Procedures to ensure that all Federal and State agencies conducting 
    activities under this part have access to any system used by the 
    State to locate an individual for purposes relating to motor 
    vehicles or law enforcement.''.

SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.

    (a) Expanded Authority To Locate Individuals and Assets.--Section 
453 (42 U.S.C. 653) is amended--
        (1) in subsection (a), by striking all that follows 
    ``subsection (c))'' and inserting ``, for the purpose of 
    establishing parentage, establishing, setting the amount of, 
    modifying, or enforcing child support obligations, or enforcing 
    child custody or visitation orders--
        ``(1) information on, or facilitating the discovery of, the 
    location of any individual--
            ``(A) who is under an obligation to pay child support or 
        provide child custody or visitation rights;
            ``(B) against whom such an obligation is sought;
            ``(C) to whom such an obligation is owed,
    including the individual's social security number (or numbers), 
    most recent address, and the name, address, and employer 
    identification number of the individual's employer;
        ``(2) information on the individual's wages (or other income) 
    from, and benefits of, employment (including rights to or 
    enrollment in group health care coverage); and
        ``(3) information on the type, status, location, and amount of 
    any assets of, or debts owed by or to, any such individual.''; and
        (2) in subsection (b)--
            (A) in the matter preceding paragraph (1), by striking 
        ``social security'' and all that follows through ``absent 
        parent'' and inserting ``information described in subsection 
        (a)''; and
            (B) in the flush paragraph at the end, by adding the 
        following: ``No information shall be disclosed to any person if 
        the State has notified the Secretary that the State has 
        reasonable evidence of domestic violence or child abuse and the 
        disclosure of such information could be harmful to the 
        custodial parent or the child of such parent. Information 
        received or transmitted pursuant to this section shall be 
        subject to the safeguard provisions contained in section 
        454(26).''.
    (b) Authorized Person for Information Regarding Visitation 
Rights.--Section 453(c) (42 U.S.C. 653(c)) is amended--
        (1) in paragraph (1), by striking ``support'' and inserting 
    ``support or to seek to enforce orders providing child custody or 
    visitation rights''; and
        (2) in paragraph (2), by striking ``, or any agent of such 
    court; and'' and inserting ``or to issue an order against a 
    resident parent for child custody or visitation rights, or any 
    agent of such court;''.
    (c) Reimbursement for Information From Federal Agencies.--Section 
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th sentence by 
inserting ``in an amount which the Secretary determines to be 
reasonable payment for the information exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the information)'' before the period.
    (d) Reimbursement for Reports by State Agencies.--Section 453 (42 
U.S.C. 653) is amended by adding at the end the following new 
subsection:
    ``(g) Reimbursement for Reports by State Agencies.--The Secretary 
may reimburse Federal and State agencies for the costs incurred by such 
entities in furnishing information requested by the Secretary under 
this section in an amount which the Secretary determines to be 
reasonable payment for the information exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the information).''.
    (e) Conforming Amendments.--
        (1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 
    463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), and 
    663(f)) are each amended by inserting ``Federal'' before ``Parent'' 
    each place such term appears.
        (2) Section 453 (42 U.S.C. 653) is amended in the heading by 
    adding ``federal'' before ``parent''.
    (f) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (d) of this section, is amended by adding at the end the 
following new subsections:
    ``(h) Federal Case Registry of Child Support Orders.--
        ``(1) In general.--Not later than October 1, 1998, in order to 
    assist States in administering programs under State plans approved 
    under this part and programs funded under part A, and for the other 
    purposes specified in this section, the Secretary shall establish 
    and maintain in the Federal Parent Locator Service an automated 
    registry (which shall be known as the `Federal Case Registry of 
    Child Support Orders'), which shall contain abstracts of support 
    orders and other information described in paragraph (2) with 
    respect to each case in each State case registry maintained 
    pursuant to section 454A(e), as furnished (and regularly updated), 
    pursuant to section 454A(f), by State agencies administering 
    programs under this part.
        ``(2) Case information.--The information referred to in 
    paragraph (1) with respect to a case shall be such information as 
    the Secretary may specify in regulations (including the names, 
    social security numbers or other uniform identification numbers, 
    and State case identification numbers) to identify the individuals 
    who owe or are owed support (or with respect to or on behalf of 
    whom support obligations are sought to be established), and the 
    State or States which have the case.
    ``(i) National Directory of New Hires.--
        ``(1) In general.--In order to assist States in administering 
    programs under State plans approved under this part and programs 
    funded under part A, and for the other purposes specified in this 
    section, the Secretary shall, not later than October 1, 1996, 
    establish and maintain in the Federal Parent Locator Service an 
    automated directory to be known as the National Directory of New 
    Hires, which shall contain the information supplied pursuant to 
    section 453A(g)(2).
        ``(2) Entry of data.--Information shall be entered into the 
    data base maintained by the National Directory of New Hires within 
    2 business days of receipt pursuant to section 453A(g)(2).
        ``(3) Administration of federal tax laws.--The Secretary of the 
    Treasury shall have access to the information in the National 
    Directory of New Hires for purposes of administering section 32 of 
    the Internal Revenue Code of 1986, or the advance payment of the 
    earned income tax credit under section 3507 of such Code, and 
    verifying a claim with respect to employment in a tax return.
        ``(4) List of multistate employers.--The Secretary shall 
    maintain within the National Directory of New Hires a list of 
    multistate employers that report information regarding newly hired 
    employees pursuant to section 453A(b)(1)(B), and the State which 
    each such employer has designated to receive such information.
    ``(j) Information Comparisons and Other Disclosures.--
        ``(1) Verification by social security administration.--
            ``(A) In general.--The Secretary shall transmit information 
        on individuals and employers maintained under this section to 
        the Social Security Administration to the extent necessary for 
        verification in accordance with subparagraph (B).
            ``(B) Verification by ssa.--The Social Security 
        Administration shall verify the accuracy of, correct, or supply 
        to the extent possible, and report to the Secretary, the 
        following information supplied by the Secretary pursuant to 
        subparagraph (A):
                ``(i) The name, social security number, and birth date 
            of each such individual.
                ``(ii) The employer identification number of each such 
            employer.
        ``(2) Information comparisons.--For the purpose of locating 
    individuals in a paternity establishment case or a case involving 
    the establishment, modification, or enforcement of a support order, 
    the Secretary shall--
            ``(A) compare information in the National Directory of New 
        Hires against information in the support case abstracts in the 
        Federal Case Registry of Child Support Orders not less often 
        than every 2 business days; and
            ``(B) within 2 such days after such a comparison reveals a 
        match with respect to an individual, report the information to 
        the State agency responsible for the case.
        ``(3) Information comparisons and disclosures of information in 
    all registries for title iv program purposes.--To the extent and 
    with the frequency that the Secretary determines to be effective in 
    assisting States to carry out their responsibilities under programs 
    operated under this part and programs funded under part A, the 
    Secretary shall--
            ``(A) compare the information in each component of the 
        Federal Parent Locator Service maintained under this section 
        against the information in each other such component (other 
        than the comparison required by paragraph (2)), and report 
        instances in which such a comparison reveals a match with 
        respect to an individual to State agencies operating such 
        programs; and
            ``(B) disclose information in such registries to such State 
        agencies.
        ``(4) Provision of new hire information to the social security 
    administration.--The National Directory of New Hires shall provide 
    the Commissioner of Social Security with all information in the 
    National Directory, which shall be used to determine the accuracy 
    of payments under the supplemental security income program under 
    title XVI and in connection with benefits under title II.
        ``(5) Research.--The Secretary may provide access to 
    information reported by employers pursuant to section 453A(b) for 
    research purposes found by the Secretary to be likely to contribute 
    to achieving the purposes of part A or this part, but without 
    personal identifiers.
    ``(k) Fees.--
        ``(1) For ssa verification.--The Secretary shall reimburse the 
    Commissioner of Social Security, at a rate negotiated between the 
    Secretary and the Commissioner, for the costs incurred by the 
    Commissioner in performing the verification services described in 
    subsection (j).
        ``(2) For information from state directories of new hires.--The 
    Secretary shall reimburse costs incurred by State directories of 
    new hires in furnishing information as required by subsection 
    (j)(3), at rates which the Secretary determines to be reasonable 
    (which rates shall not include payment for the costs of obtaining, 
    compiling, or maintaining such information).
        ``(3) For information furnished to state and federal 
    agencies.--A State or Federal agency that receives information from 
    the Secretary pursuant to this section shall reimburse the 
    Secretary for costs incurred by the Secretary in furnishing the 
    information, at rates which the Secretary determines to be 
    reasonable (which rates shall include payment for the costs of 
    obtaining, verifying, maintaining, and comparing the information).
    ``(l) Restriction on Disclosure and Use.--Information in the 
Federal Parent Locator Service, and information resulting from 
comparisons using such information, shall not be used or disclosed 
except as expressly provided in this section, subject to section 6103 
of the Internal Revenue Code of 1986.
    ``(m) Information Integrity and Security.--The Secretary shall 
establish and implement safeguards with respect to the entities 
established under this section designed to--
        ``(1) ensure the accuracy and completeness of information in 
    the Federal Parent Locator Service; and
        ``(2) restrict access to confidential information in the 
    Federal Parent Locator Service to authorized persons, and restrict 
    use of such information to authorized purposes.
    ``(n) Federal Government Reporting.--Each department, agency, and 
instrumentality of the United States shall on a quarterly basis report 
to the Federal Parent Locator Service the name and social security 
number of each employee and the wages paid to the employee during the 
previous quarter, except that such a report shall not be filed with 
respect to an employee of a department, agency, or instrumentality 
performing intelligence or counterintelligence functions, if the head 
of such department, agency, or instrumentality has determined that 
filing such a report could endanger the safety of the employee or 
compromise an ongoing investigation or intelligence mission.''.
    (g) Conforming Amendments.--
        (1) To part d of title iv of the social security act.--
            (A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to 
        read as follows:
            ``(B) the Federal Parent Locator Service established under 
        section 453;''.
            (B) Section 454(13) (42 U.S.C.654(13)) is amended by 
        inserting ``and provide that information requests by parents 
        who are residents of other States be treated with the same 
        priority as requests by parents who are residents of the State 
        submitting the plan'' before the semicolon.
        (2) To federal unemployment tax act.--Section 3304(a)(16) of 
    the Internal Revenue Code of 1986 is amended--
            (A) by striking ``Secretary of Health, Education, and 
        Welfare'' each place such term appears and inserting 
        ``Secretary of Health and Human Services'';
            (B) in subparagraph (B), by striking ``such information'' 
        and all that follows and inserting ``information furnished 
        under subparagraph (A) or (B) is used only for the purposes 
        authorized under such subparagraph;'';
            (C) by striking ``and'' at the end of subparagraph (A);
            (D) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (E) by inserting after subparagraph (A) the following new 
        subparagraph:
            ``(B) wage and unemployment compensation information 
        contained in the records of such agency shall be furnished to 
        the Secretary of Health and Human Services (in accordance with 
        regulations promulgated by such Secretary) as necessary for the 
        purposes of the National Directory of New Hires established 
        under section 453(i) of the Social Security Act, and''.
        (3) To state grant program under title iii of the social 
    security act.--Subsection (h) of section 303 (42 U.S.C. 503) is 
    amended to read as follows:
    ``(h)(1) The State agency charged with the administration of the 
State law shall, on a reimbursable basis--
        ``(A) disclose quarterly, to the Secretary of Health and Human 
    Services, wage and claim information, as required pursuant to 
    section 453(i)(1), contained in the records of such agency;
        ``(B) ensure that information provided pursuant to subparagraph 
    (A) meets such standards relating to correctness and verification 
    as the Secretary of Health and Human Services, with the concurrence 
    of the Secretary of Labor, may find necessary; and
        ``(C) establish such safeguards as the Secretary of Labor 
    determines are necessary to insure that information disclosed under 
    subparagraph (A) is used only for purposes of section 453(i)(1) in 
    carrying out the child support enforcement program under title IV.
    ``(2) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to 
comply substantially with the requirements of paragraph (1), the 
Secretary of Labor shall notify such State agency that further payments 
will not be made to the State until the Secretary of Labor is satisfied 
that there is no longer any such failure. Until the Secretary of Labor 
is so satisfied, the Secretary shall make no future certification to 
the Secretary of the Treasury with respect to the State.
    ``(3) For purposes of this subsection--
        ``(A) the term `wage information' means information regarding 
    wages paid to an individual, the social security account number of 
    such individual, and the name, address, State, and the Federal 
    employer identification number of the employer paying such wages to 
    such individual; and
        ``(B) the term `claim information' means information regarding 
    whether an individual is receiving, has received, or has made 
    application for, unemployment compensation, the amount of any such 
    compensation being received (or to be received by such individual), 
    and the individual's current (or most recent) home address.''.
        (4) Disclosure of certain information to agents of child 
    support enforcement agencies.--
            (A) In general.--Paragraph (6) of section 6103(l) of the 
        Internal Revenue Code of 1986 (relating to disclosure of return 
        information to Federal, State, and local child support 
        enforcement agencies) is amended by redesignating subparagraph 
        (B) as subparagraph (C) and by inserting after subparagraph (A) 
        the following new subparagraph:
            ``(B) Disclosure to certain agents.--The following 
        information disclosed to any child support enforcement agency 
        under subparagraph (A) with respect to any individual with 
        respect to whom child support obligations are sought to be 
        established or enforced may be disclosed by such agency to any 
        agent of such agency which is under contract with such agency 
        to carry out the purposes described in subparagraph (C):
                ``(i) The address and social security account number 
            (or numbers) of such individual.
                ``(ii) The amount of any reduction under section 
            6402(c) (relating to offset of past-due support against 
            overpayments) in any overpayment otherwise payable to such 
            individual.''
            (B) Conforming amendments.--
                (i) Paragraph (3) of section 6103(a) of such Code is 
            amended by striking ``(l)(12)'' and inserting ``paragraph 
            (6) or (12) of subsection (l)''.
                (ii) Subparagraph (C) of section 6103(l)(6) of such 
            Code, as redesignated by subsection (a), is amended to read 
            as follows:
            ``(C) Restriction on disclosure.--Information may be 
        disclosed under this paragraph only for purposes of, and to the 
        extent necessary in, establishing and collecting child support 
        obligations from, and locating, individuals owing such 
        obligations.''
                (iii) The material following subparagraph (F) of 
            section 6103(p)(4) of such Code is amended by striking 
            ``subsection (l)(12)(B)'' and inserting ``paragraph (6)(A) 
            or (12)(B) of subsection (l)''.
    SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR USE IN 
      CHILD SUPPORT ENFORCEMENT.
    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 315 of this Act, is amended by adding at the end the 
following new paragraph:
        ``(13) Recording of social security numbers in certain family 
    matters.--Procedures requiring that the social security number of--
            ``(A) any applicant for a professional license, commercial 
        driver's license, occupational license, or marriage license be 
        recorded on the application;
            ``(B) any individual who is subject to a divorce decree, 
        support order, or paternity determination or acknowledgment be 
        placed in the records relating to the matter; and
            ``(C) any individual who has died be placed in the records 
        relating to the death and be recorded on the death certificate.
    For purposes of subparagraph (A), if a State allows the use of a 
    number other than the social security number, the State shall so 
    advise any applicants.''.
    (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
405(c)(2)(C)), as amended by section 321(a)(9) of the Social Security 
Independence and Program Improvements Act of 1994, is amended--
        (1) in clause (i), by striking ``may require'' and inserting 
    ``shall require'';
        (2) in clause (ii), by inserting after the 1st sentence the 
    following: ``In the administration of any law involving the 
    issuance of a marriage certificate or license, each State shall 
    require each party named in the certificate or license to furnishto 
the State (or political subdivision thereof), or any State agency 
having administrative responsibility for the law involved, the social 
security number of the party.'';
        (3) in clause (ii), by inserting ``or marriage certificate'' 
    after ``Such numbers shall not be recorded on the birth 
    certificate''.
        (4) in clause (vi), by striking ``may'' and inserting 
    ``shall''; and
        (5) by adding at the end the following new clauses:
                ``(x) An agency of a State (or a political subdivision 
            thereof) charged with the administration of any law 
            concerning the issuance or renewal of a license, 
            certificate, permit, or other authorization to engage in a 
            profession, an occupation, or a commercial activity shall 
            require all applicants for issuance or renewal of the 
            license, certificate, permit, or other authorization to 
            provide the applicant's social security number to the 
            agency for the purpose of administering such laws, and for 
            the purpose of responding to requests for information from 
            an agency operating pursuant to part D of title IV.
                ``(xi) All divorce decrees, support orders, and 
            paternity determinations issued, and all paternity 
            acknowledgments made, in each State shall include the 
            social security number of each party to the decree, order, 
            determination, or acknowledgment in the records relating to 
            the matter, for the purpose of responding to requests for 
            information from an agency operating pursuant to part D of 
            title IV.''.

         Subtitle C--Streamlining and Uniformity of Procedures

SEC. 321. ADOPTION OF UNIFORM STATE LAWS.

    Section 466 (42 U.S.C. 666) is amended by adding at the end the 
following new subsection:
    ``(f) Uniform Interstate Family Support Act.--
        ``(1) Enactment and use.--In order to satisfy section 
    454(20)(A), on and after January 1, 1998, each State must have in 
    effect the Uniform Interstate Family Support Act, as approved by 
    the American Bar Association on February 9, 1993, together with any 
    amendments officially adopted before January 1, 1998 by the 
    National Conference of Commissioners on Uniform State Laws.
        ``(2) Employers to follow procedural rules of State where 
    employee works.--The State law enacted pursuant to paragraph (1) 
    shall provide that an employer that receives an income withholding 
    order or notice pursuant to section 501 of the Uniform Interstate 
    Family Support Act follow the procedural rules that apply with 
    respect to such order or notice under the laws of the State in 
    which the obligor works.
    SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT 
      ORDERS.
    Section 1738B of title 28, United States Code, is amended--
        (1) in subsection (a)(2), by striking ``subsection (e)'' and 
    inserting ``subsections (e), (f), and (i)'';
        (2) in subsection (b), by inserting after the 2nd undesignated 
    paragraph the following:
        ```child's home State' means the State in which a child lived 
    with a parent or a person acting as parent for at least 6 
    consecutive months immediately preceding the time of filing of a 
    petition or comparable pleading for support and, if a child is less 
    than 6 months old, the State in which the child lived from birth 
    with any of them. A period of temporary absence of any of them is 
    counted as part of the 6-month period.'';
        (3) in subsection (c), by inserting ``by a court of a State'' 
    before ``is made'';
        (4) in subsection (c)(1), by inserting ``and subsections (e), 
    (f), and (g)'' after ``located'';
        (5) in subsection (d)--
            (A) by inserting ``individual'' before ``contestant''; and
            (B) by striking ``subsection (e)'' and inserting 
        ``subsections (e) and (f)'';
        (6) in subsection (e), by striking ``make a modification of a 
    child support order with respect to a child that is made'' and 
    inserting ``modify a child support order issued'';
        (7) in subsection (e)(1), by inserting ``pursuant to subsection 
    (i)'' before the semicolon;
        (8) in subsection (e)(2)--
            (A) by inserting ``individual'' before ``contestant'' each 
        place such term appears; and
            (B) by striking ``to that court's making the modification 
        and assuming'' and inserting ``with the State of continuing, 
        exclusive jurisdiction for a court of another State to modify 
        the order and assume'';
        (9) by redesignating subsections (f) and (g) as subsections (g) 
    and (h), respectively;
        (10) by inserting after subsection (e) the following new 
    subsection:
    ``(f) Recognition of Child Support Orders.--If 1 or more child 
support orders have been issued in this or another State with regard to 
an obligor and a child, a court shall apply the following rules in 
determining which order to recognize for purposes of continuing, 
exclusive jurisdiction and enforcement:
        ``(1) If only 1 court has issued a child support order, the 
    order of that court must be recognized.
        ``(2) If 2 or more courts have issued child support orders for 
    the same obligor and child, and only 1 of the courts would have 
    continuing, exclusive jurisdiction under this section, the order of 
    that court must be recognized.
        ``(3) If 2 or more courts have issued child support orders for 
    the same obligor and child, and more than 1 of the courts would 
    have continuing, exclusive jurisdiction under this section, an 
    order issued by a court in the current home State of the child must 
    be recognized, but if an order has not been issued in the current 
    home State of the child, the order most recently issued must be 
    recognized.
        ``(4) If 2 or more courts have issued child support orders for 
    the same obligor and child, and none of the courts would have 
    continuing, exclusive jurisdiction under this section, a court may 
    issue a child support order, which must be recognized.
        ``(5) The court that has issued an order recognized under this 
    subsection is the court having continuing, exclusive 
    jurisdiction.'';
        (11) in subsection (g) (as so redesignated)--
            (A) by striking ``Prior'' and inserting ``Modified''; and
            (B) by striking ``subsection (e)'' and inserting 
        ``subsections (e) and (f)'';
        (12) in subsection (h) (as so redesignated)--
            (A) in paragraph (2), by inserting ``including the duration 
        of current payments and other obligations of support'' before 
        the comma; and
            (B) in paragraph (3), by inserting ``arrears under'' after 
        ``enforce''; and
        (13) by adding at the end the following new subsection:
    ``(i) Registration for Modification.--If there is no individual 
contestant or child residing in the issuing State, the party or support 
enforcement agency seeking to modify, or to modify and enforce, a child 
support order issued in another State shall register that order in a 
State with jurisdiction over the nonmovant for the purpose of 
modification.''.

SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315 and 
317(a) of this Act, is amended by adding at the end the following new 
paragraph:
        ``(14) Administrative enforcement in interstate cases.--
    Procedures under which--
            ``(A)(i) the State shall respond within 5 business days to 
        a request made by another State to enforce a support order; and
            ``(ii) the term `business day' means a day on which State 
        offices are open for regular business;
            ``(B) the State may, by electronic or other means, transmit 
        to another State a request for assistance in a case involving 
        the enforcement of a support order, which request--
                ``(i) shall include such information as will enable the 
            State to which the request is transmitted to compare the 
            information about the case to the information in the data 
            bases of the State; and
                ``(ii) shall constitute a certification by the 
            requesting State--

                    ``(I) of the amount of support under the order the 
                payment of which is in arrears; and
                    ``(II) that the requesting State has complied with 
                all procedural due process requirements applicable to 
                the case;

            ``(C) if the State provides assistance to another State 
        pursuant to this paragraph with respect to a case, neither 
        State shall consider the case to be transferred to the caseload 
        of such other State; and
            ``(D) the State shall maintain records of--
                ``(i) the number of such requests for assistance 
            received by the State;
                ``(ii) the number of cases for which the State 
            collected support in response to such a request; and
                ``(iii) the amount of such collected support.''.

SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

    (a) Promulgation.--Section 452(a) (42 U.S.C. 652(a)) is amended--
        (1) by striking ``and'' at the end of paragraph (9);
        (2) by striking the period at the end of paragraph (10) and 
    inserting ``; and''; and
        (3) by adding at the end the following new paragraph:
        ``(11) not later than June 30, 1996, after consulting with the 
    State directors of programs under this part, promulgate forms to be 
    used by States in interstate cases for--
            ``(A) collection of child support through income 
        withholding;
            ``(B) imposition of liens; and
            ``(C) administrative subpoenas.''.
    (b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is amended--
        (1) by striking ``and'' at the end of subparagraph (C);
        (2) by inserting ``and'' at the end of subparagraph (D); and
        (3) by adding at the end the following new subparagraph:
            ``(E) no later than October 1, 1996, in using the forms 
        promulgated pursuant to section 452(a)(11) for income 
        withholding, imposition of liens, and issuance of 
        administrative subpoenas in interstate child support cases;''.

SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 314 of this Act, is amended--
        (1) in subsection (a)(2), by striking the first sentence and 
    inserting the following: ``Expedited administrative and judicial 
    procedures (including the procedures specified in subsection (c)) 
    for establishing paternity and for establishing, modifying, and 
    enforcing support obligations.''; and
        (2) by inserting after subsection (b) the following new 
    subsection:
    ``(c) Expedited Procedures.--The procedures specified in this 
subsection are the following:
        ``(1) Administrative action by state agency.--Procedures which 
    give the State agency the authority to take the following actions 
    relating to establishment or enforcement of support orders, without 
    the necessity of obtaining an order from any other judicial or 
    administrative tribunal, and to recognize and enforce the authority 
    of State agencies of other States) to take the following actions:
            ``(A) Genetic testing.--To order genetic testing for the 
        purpose of paternity establishment as provided in section 
        466(a)(5).
            ``(B) Financial or other information.--To subpoena any 
        financial or other information needed to establish, modify, or 
        enforce a support order, and to impose penalties for failure to 
        respond to such a subpoena.
            ``(C) Response to state agency request.--To require all 
        entities in the State (including for-profit, nonprofit, and 
        governmental employers) to provide promptly, in response to a 
        request by the State agency of that or any other State 
        administering a program under this part, information on the 
        employment, compensation, and benefits of any individual 
        employed by such entity as an employee or contractor, and to 
        sanction failure to respond to any such request.
            ``(D) Access to certain records.--To obtain access, subject 
        to safeguards on privacy and information security, to the 
        following records (including automated access, in the case of 
        records maintained in automated data bases):
                ``(i) Records of other State and local government 
            agencies, including--

                    ``(I) vital statistics (including records of 
                marriage, birth, and divorce);
                    ``(II) State and local tax and revenue records 
                (including information on residence address, employer, 
                income and assets);
                    ``(III) records concerning real and titled personal 
                property;
                    ``(IV) records of occupational and professional 
                licenses, and records concerning the ownership and 
                control of corporations, partnerships, and other 
                business entities;
                    ``(V) employment security records;
                    ``(VI) records of agencies administering public 
                assistance programs;
                    ``(VII) records of the motor vehicle department; 
                and
                    ``(VIII) corrections records.

                ``(ii) Certain records held by private entities, 
            including--

                    ``(I) customer records of public utilities and 
                cable television companies; and
                    ``(II) information (including information on assets 
                and liabilities) on individuals who owe or are owed 
                support (or against or with respect to whom a support 
                obligation is sought) held by financial institutions 
                (subject to limitations on liability of such entities 
                arising from affording such access), as provided 
                pursuant to agreements described in subsection (a)(18).

            ``(E) Change in payee.--In cases in which support is 
        subject to an assignment in order to comply with a requirement 
        imposed pursuant to part A or section 1912, or to a requirement 
        to pay through the State disbursement unit established pursuant 
        to section 454B, upon providing notice to obligor and obligee, 
        to direct the obligor or other payor to change the payee to the 
        appropriate government entity.
            ``(F) Income withholding.--To order income withholding in 
        accordance with subsections (a)(1) and (b) of section 466.
            ``(G) Securing assets.--In cases in which there is a 
        support arrearage, to secure assets to satisfy the arrearage 
        by--
                ``(i) intercepting or seizing periodic or lump-sum 
            payments from--

                    ``(I) a State or local agency, including 
                unemployment compensation, workers' compensation, and 
                other benefits; and
                    ``(II) judgments, settlements, and lotteries;

                ``(ii) attaching and seizing assets of the obligor held 
            in financial institutions;
                ``(iii) attaching public and private retirement funds; 
            and
                ``(iv) imposing liens in accordance with subsection 
            (a)(4) and, in appropriate cases, to force sale of property 
            and distribution of proceeds.
            ``(H) Increase monthly payments.--For the purpose of 
        securing overdue support, to increase the amount of monthly 
        support payments to include amounts for arrearages, subject to 
        such conditions or limitations as the State may provide.
    Such procedures shall be subject to due process safeguards, 
    including (as appropriate) requirements for notice, opportunity to 
    contest the action, and opportunity for an appeal on the record to 
    an independent administrative or judicial tribunal.
        ``(2) Substantive and procedural rules.--The expedited 
    procedures required under subsection (a)(2) shall include the 
    following rules and authority, applicable with respect to all 
    proceedings to establish paternity or to establish, modify, or 
    enforce support orders:
            ``(A) Locator information; presumptions concerning 
        notice.--Procedures under which--
                ``(i) each party to any paternity or child support 
            proceeding is required (subject to privacy safeguards) to 
            file with the tribunal and the State case registry upon 
            entry of an order, and to update as appropriate, 
            information on location and identity of the party, 
            including social security number, residential and mailing 
            addresses, telephone number, driver's license number, and 
            name, address, and name and telephone number of employer; 
            and
                ``(ii) in any subsequent child support enforcement 
            action between the parties, upon sufficient showing that 
            diligent effort has been made to ascertain the location of 
            such a party, the tribunal may deem State due process 
            requirements for notice and service of process to be met 
            with respect to the party, upon delivery of written notice 
            to the most recent residentialor employer address filed 
with the tribunal pursuant to clause (i).
            ``(B) Statewide jurisdiction.--Procedures under which--
                ``(i) the State agency and any administrative or 
            judicial tribunal with authority to hear child support and 
            paternity cases exerts statewide jurisdiction over the 
            parties; and
                ``(ii) in a State in which orders are issued by courts 
            or administrative tribunals, a case may be transferred 
            between local jurisdictions in the State without need for 
            any additional filing by the petitioner, or service of 
            process upon the respondent, to retain jurisdiction over 
            the parties.
        ``(3) Coordination with erisa.--Notwithstanding subsection (d) 
    of section 514 of the Employee Retirement Income Security Act of 
    1974 (relating to effect on other laws), nothing in this subsection 
    shall be construed to alter, amend, modify, invalidate, impair, or 
    supersede subsections (a), (b), and (c) of such section 514 as it 
    applies with respect to any procedure referred to in paragraph (1) 
    and any expedited procedure referred to in paragraph (2), except to 
    the extent that such procedure would be consistent with the 
    requirements of section 206(d)(3) of such Act (relating to 
    qualified domestic relations orders) or the requirements of section 
    609(a) of such Act (relating to qualified medical child support 
    orders) if the reference in such section 206(d)(3) to a domestic 
    relations order and the reference in such section 609(a) to a 
    medical child support order were a reference to a support order 
    referred to in paragraphs (1) and (2) relating to the same matters, 
    respectively.''.
    (b) Automation of State Agency Functions.--Section 454A, as added 
by section 344(a)(2) and as amended by sections 311 and 312(c) of this 
Act, is amended by adding at the end the following new subsection:
    ``(h) Expedited Administrative Procedures.--The automated system 
required by this section shall be used, to the maximum extent feasible, 
to implement the expedited administrative procedures required by 
section 466(c).''.

                  Subtitle D--Paternity Establishment

SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended to read as follows:
        ``(5) Procedures concerning paternity establishment.--
            ``(A) Establishment process available from birth until age 
        18.--
                ``(i) Procedures which permit the establishment of the 
            paternity of a child at any time before the child attains 
            18 years of age.
                ``(ii) As of August 16, 1984, clause (i) shall also 
            apply to a child for whom paternity has not been 
            established or for whom a paternity action was brought but 
            dismissed because a statute of limitations of less than 18 
            years was then in effect in the State.
            ``(B) Procedures concerning genetic testing.--
                ``(i) Genetic testing required in certain contested 
            cases.--Procedures under which the State is required, in a 
            contested paternity case (unless otherwise barred by State 
            law) to require the child and all other parties (other than 
            individuals found under section 454(29) to have good cause 
            for refusing to cooperate) to submit to genetic tests upon 
            the request of any such party, if the request is supported 
            by a sworn statement by the party--

                    ``(I) alleging paternity, and setting forth facts 
                establishing a reasonable possibility of the requisite 
                sexual contact between the parties; or
                    ``(II) denying paternity, and setting forth facts 
                establishing a reasonable possibility of the 
                nonexistence of sexual contact between the parties.

                ``(ii) Other requirements.--Procedures which require 
            the State agency, in any case in which the agency orders 
            genetic testing--

                    ``(I) to pay costs of such tests, subject to 
                recoupment (if the State so elects) from the alleged 
                father if paternity is established; and
                    ``(II) to obtain additional testing in any case if 
                an original test result is contested, upon request and 
                advance payment by the contestant.

            ``(C) Voluntary paternity acknowledgment.--
                ``(i) Simple civil process.--Procedures for a simple 
            civil process for voluntarily acknowledging paternity under 
            which the State must provide that, before a mother and a 
            putative father can sign an acknowledgment of paternity, 
            the mother and the putative father must be given notice, 
            orally and in writing, of the alternatives to, the legal 
            consequences of, and the rights (including, if 1 parent is 
            a minor, any rights afforded due to minority status) and 
            responsibilities that arise from, signing the 
            acknowledgment.
                ``(ii) Hospital-based program.--Such procedures must 
            include a hospital-based program for the voluntary 
            acknowledgment of paternity focusing on the period 
            immediately before or after the birth of a child, subject 
            to such good cause exceptions, taking into account the best 
            interests of the child, as the State may establish.
                ``(iii) Paternity establishment services.--

                    ``(I) State-offered services.--Such procedures must 
                require the State agency responsible for maintaining 
                birth records to offer voluntary paternity 
                establishment services.
                    ``(II) Regulations.--

                        ``(aa) Services offered by hospitals and birth 
                    record agencies.--The Secretary shall prescribe 
                    regulations governing voluntary paternity 
                    establishment services offered by hospitals and 
                    birth record agencies.
                        ``(bb) Services offered by other entities.--The 
                    Secretary shall prescribe regulations specifying 
                    the types of other entities that may offer 
                    voluntary paternity establishment services, and 
                    governing the provision of such services, which 
                    shall include a requirement that such an entity 
                    must use the same notice provisions used by, use 
                    the same materials used by, provide the personnel 
                    providing such services with the same training 
                    provided by, and evaluate the provision of such 
                    services in the same manner as the provision of 
                    such services is evaluated by, voluntary paternity 
                    establishment programs of hospitals and birth 
                    record agencies.
                ``(iv) Use of paternity acknowledgment affidavit.--Such 
            procedures must require the State to develop and use an 
            affidavit for the voluntary acknowledgment of paternity 
            which includes the minimum requirements of the affidavit 
            developed by the Secretary under section 452(a)(7) for the 
            voluntary acknowledgment of paternity, and to give full 
            faith and credit to such an affidavit signed in any other 
            State according to its procedures.
            ``(D) Status of signed paternity acknowledgment.--
                ``(i) Inclusion in birth records.--Procedures under 
            which the name of the father shall be included on the 
            record of birth of the child of unmarried parents only if--

                    ``(I) the father and mother have signed a voluntary 
                acknowledgment of paternity; or
                    ``(II) a court or an administrative agency of 
                competent jurisdiction has issued an adjudication of 
                paternity.

            Nothing in this clause shall preclude a State agency from 
            obtaining an admission of paternity from the father for 
            submission in a judicial or administrative proceeding, or 
            prohibit the issuance of an order in a judicial or 
            administrative proceeding which bases a legal finding of 
            paternity on an admission of paternity by the father and 
            any other additional showing required by State law.
                ``(ii) Legal finding of paternity.--Procedures under 
            which a signed voluntary acknowledgment of paternity is 
            considered a legal finding of paternity, subject to the 
            right of any signatory to rescind the acknowledgment within 
            the earlier of--

                    ``(I) 60 days; or

                    ``(II) the date of an administrative or judicial 
                proceeding relating to the child (including a 
                proceeding to establish a support order) in which the 
                signatory is a party.

                ``(iii) Contest.--Procedures under which, after the 60-
            day period referred to in clause (ii), a signed voluntary 
            acknowledgment of paternity may be challenged in court only 
            on the basis of fraud, duress, or material mistake of fact, 
            with the burden of proof upon the challenger, and under 
            which the legal responsibilities (including child support 
            obligations) of any signatory arising from the 
            acknowledgment may not be suspended during the challenge, 
            except for good cause shown.
            ``(E) Bar on acknowledgment ratification proceedings.--
        Procedures under which judicial or administrative proceedings 
        are not required or permitted to ratify an unchallenged 
        acknowledgment of paternity.
            ``(F) Admissibility of genetic testing results.--
        Procedures--
                ``(i) requiring the admission into evidence, for 
            purposes of establishing paternity, of the results of any 
            genetic test that is--

                    ``(I) of a type generally acknowledged as reliable 
                by accreditation bodies designated by the Secretary; 
                and
                    ``(II) performed by a laboratory approved by such 
                an accreditation body;

                ``(ii) requiring an objection to genetic testing 
            results to be made in writing not later than a specified 
            number of days before any hearing at which the results may 
            be introduced into evidence (or, at State option, not later 
            than a specified number of days after receipt of the 
            results); and
                ``(iii) making the test results admissible as evidence 
            of paternity without the need for foundation testimony or 
            other proof of authenticity or accuracy, unless objection 
            is made.
            ``(G) Presumption of paternity in certain cases.--
        Procedures which create a rebuttable or, at the option of the 
        State, conclusive presumption of paternity upon genetic testing 
        results indicating a threshold probability that the alleged 
        father is the father of the child.
            ``(H) Default orders.--Procedures requiring a default order 
        to be entered in a paternity case upon a showing of service of 
        process on the defendant and any additional showing required by 
        State law.
            ``(I) No right to jury trial.--Procedures providing that 
        the parties to an action to establish paternity are not 
        entitled to a trial by jury.
            ``(J) Temporary support order based on probable paternity 
        in contested cases.--Procedures which require that a temporary 
        order be issued, upon motion by a party, requiring the 
        provision of child support pending an administrative or 
        judicial determination of parentage, if there is clear and 
        convincing evidence of paternity (on the basis of genetic tests 
        or other evidence).
            ``(K) Proof of certain support and paternity establishment 
        costs.--Procedures under which bills for pregnancy, childbirth, 
        and genetic testing are admissible as evidence without 
        requiring third-party foundation testimony, and shall 
        constitute prima facie evidence of amounts incurred for such 
        services or for testing on behalf of the child.
            ``(L) Standing of putative fathers.--Procedures ensuring 
        that the putative father has a reasonable opportunity to 
        initiate a paternity action.
            ``(M) Filing of acknowledgments and adjudications in state 
        registry of birth records.--Procedures under which voluntary 
        acknowledgments and adjudications of paternity by judicial or 
        administrative processes are filed with the State registry of 
        birth records for comparison with information in the State case 
        registry.''.
    (b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) 
(42 U.S.C. 652(a)(7)) is amended by inserting ``, and develop an 
affidavit to be used for the voluntary acknowledgment of paternity 
which shall include the social security number of each parent and, 
after consultation with the States, other common elements as determined 
by such designee'' before the semicolon.
    (c) Conforming Amendment.--Section 468 (42 U.S.C. 668) is amended 
by striking ``a simple civil process for voluntarily acknowledging 
paternity and''.

SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    Section 454(23) (42 U.S.C. 654(23)) is amended by inserting ``and 
will publicize the availability and encourage the use of procedures for 
voluntary establishment of paternity and child support by means the 
State deems appropriate'' before the semicolon.
    SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF TEMPORARY 
      FAMILY ASSISTANCE.
    Section 454 (42 U.S.C. 654), as amended by sections 301(b), 303(a), 
312(a), and 313(a) of this Act, is amended--
        (1) by striking ``and'' at the end of paragraph (27);
        (2) by striking the period at the end of paragraph (28) and 
    inserting ``; and''; and
        (3) by inserting after paragraph (28) the following new 
    paragraph:
        ``(29) provide that the State agency responsible for 
    administering the State plan--
            ``(A) shall make the determination (and redetermination at 
        appropriate intervals) as to whether an individual who has 
        applied for or is receiving assistance under the State program 
        funded under part A or the State program under title XIX is 
        cooperating in good faith with the State in establishing the 
        paternity of, or in establishing, modifying, or enforcing a 
        support order for, any child of the individual by providing the 
        State agency with the name of, and such other information as 
        the State agency mayrequire with respect to, the noncustodial 
parent of the child, subject to such good cause exceptions, taking into 
account the best interests of the child, as the State may establish 
through the State agency, or at the option of the State, through the 
State agencies administering the State programs funded under part A and 
title XIX;
            ``(B) shall require the individual to supply additional 
        necessary information and appear at interviews, hearings, and 
        legal proceedings;
            ``(C) shall require the individual and the child to submit 
        to genetic tests pursuant to judicial or administrative order;
            ``(D) may request that the individual sign a voluntary 
        acknowledgment of paternity, after notice of the rights and 
        consequences of such an acknowledgment, but may not require the 
        individual to sign an acknowledgment or otherwise relinquish 
        the right to genetic tests as a condition of cooperation and 
        eligibility for assistance under the State program funded under 
        part A or the State program under title XIX; and
            ``(E) shall promptly notify the individual and the State 
        agency administering the State program funded under part A and 
        the State agency administering the State program under title 
        XIX of each such determination, and if noncooperation is 
        determined, the basis therefore.''.

             Subtitle E--Program Administration and Funding

SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

    (a) Development of New System.--The Secretary of Health and Human 
Services, in consultation with State directors of programs under part D 
of title IV of the Social Security Act, shall develop a new incentive 
system to replace, in a revenue neutral manner, the system under 
section 458 of such Act. The new system shall provide additional 
payments to any State based on such State's performance under such a 
program. Not later than June 1, 1996, the Secretary shall report on the 
new system to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate.
    (b) Conforming Amendments to Present System.--Section 458 (42 
U.S.C. 658) is amended--
        (1) in subsection (a), by striking ``aid to families with 
    dependent children under a State plan approved under part A of this 
    title'' and inserting ``assistance under a program funded under 
    part A'';
        (2) in subsection (b)(1)(A), by striking ``section 402(a)(26)'' 
    and inserting ``section 408(a)(4)'';
        (3) in subsections (b) and (c)--
            (A) by striking ``AFDC collections'' each place it appears 
        and inserting ``title IV-A collections'', and
            (B) by striking ``non-AFDC collections'' each place it 
        appears and inserting ``non-title IV-A collections''; and
        (4) in subsection (c), by striking ``combined AFDC/non-AFDC 
    administrative costs'' both places it appears and inserting 
    ``combined title IV-A/non-title IV-A administrative costs''.
    (c) Calculation of IV-D Paternity Establishment Percentage.--
        (1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is amended by 
    striking ``75'' and inserting ``90''.
        (2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended by 
    redesignating subparagraphs (B) through (E) as subparagraphs (C) 
    through (F), respectively, and by inserting after subparagraph (A) 
    the following new subparagraph:
            ``(B) for a State with a paternity establishment percentage 
        of not less than 75 percent but less than 90 percent for such 
        fiscal year, the paternity establishment percentage of the 
        State for the immediately preceding fiscal year plus 2 
        percentage points;''.
        (3) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended in 
    the matter preceding clause (i)--
            (A) by striking ``paternity establishment percentage'' and 
        inserting ``IV-D paternity establishment percentage''; and
            (B) by striking ``(or all States, as the case may be)''.
        (4) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended by 
    adding at the end the following new sentence: ``In meeting the 90 
    percent paternity establishment requirement, a State may calculate 
    either the paternity establishment rate of cases in the program 
    funded under this part or the paternity establishment rate of all 
    out-of-wedlock births in the State.''.
        (5) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
            (A) by striking subparagraph (A) and redesignating 
        subparagraphs (B) and (C) as subparagraphs (A) and (B), 
        respectively;
            (B) in subparagraph (A) (as so redesignated), by striking 
        ``the percentage of children born out-of-wedlock in a State'' 
        and inserting ``the percentage of children in a State who are 
        born out of wedlock or for whom support has not been 
        established''; and
            (C) in subparagraph (B) (as so redesignated) by inserting 
        ``and securing support'' before the period.
    (d) Effective Dates.--
        (1) Incentive adjustments.--
        (A) In general.--The system developed under subsection (a) and 
    the amendments made by subsection (b) shall become effective on 
    October 1, 1997, except to the extent provided in subparagraph (B).
        (B) Application of section 458.--Section 458 of the Social 
    Security Act, as in effect on the day before the date of the 
    enactment of this section, shall be effective for purposes of 
    incentive payments to States for fiscal years before fiscal year 
    1999.
        (2) Penalty reductions.--The amendments made by subsection (c) 
    shall become effective with respect to calendar quarters beginning 
    on or after the date of the enactment of this Act.

SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.

    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) is 
amended--
        (1) in paragraph (14), by striking ``(14)'' and inserting 
    ``(14)(A)'';
        (2) by redesignating paragraph (15) as subparagraph (B) of 
    paragraph (14); and
        (3) by inserting after paragraph (14) the following new 
    paragraph:
        ``(15) provide for--
            ``(A) a process for annual reviews of and reports to the 
        Secretary on the State program operated under the State plan 
        approved under this part, including such information as may be 
        necessary to measure State compliance with Federal requirements 
        for expedited procedures, using such standards and procedures 
        as are required by the Secretary, under which the State agency 
        will determine the extent to which the program is operated in 
        compliance with this part; and
            ``(B) a process of extracting from the automated data 
        processing system required by paragraph (16) and transmitting 
        to the Secretary data and calculations concerning the levels of 
        accomplishment (and rates of improvement) with respect to 
        applicable performance indicators (including IV-D paternity 
        establishment percentages to the extent necessary for purposes 
        of sections 452(g) and 458.''.
    (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
amended to read as follows:
        ``(4)(A) review data and calculations transmitted by State 
    agencies pursuant to section 454(15)(B) on State program 
    accomplishments with respect to performance indicators for purposes 
    of subsection (g) of this section and section 458;
        ``(B) review annual reports submitted pursuant to section 
    454(15)(A) and, as appropriate, provide to the State comments, 
    recommendations for additional or alternative corrective actions, 
    and technical assistance; and
        ``(C) conduct audits, in accordance with the Government 
    auditing standards of the Comptroller General of the United 
    States--
            ``(i) at least once every 3 years (or more frequently, in 
        the case of a State which fails to meet the requirements of 
        this part concerning performance standards and reliability of 
        program data) to assess the completeness, reliability, and 
        security of the data, and the accuracy of the reporting 
        systems, used in calculating performance indicators under 
        subsection (g) of this section and section 458;
            ``(ii) of the adequacy of financial management of the State 
        program operated under the State plan approved under this part, 
        including assessments of--
                ``(I) whether Federal and other funds made available to 
            carry out the State program are being appropriately 
            expended, and are properly and fully accounted for; and
                ``(II) whether collections and disbursements of support 
            payments are carried out correctly and are fully accounted 
            for; and
            ``(iii) for such other purposes as the Secretary may find 
        necessary;''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning 12 months or more 
after the date of the enactment of this Act.

SEC. 343. REQUIRED REPORTING PROCEDURES.

    (a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is 
amended by inserting ``, and establish procedures to be followed by 
States for collecting and reporting information required to be provided 
under this part, and establish uniform definitions (including those 
necessary to enable the measurement of State compliance with the 
requirements of this part relating to expedited processes) to be 
applied in following such procedures'' before the semicolon.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 301(b), 303(a), 312(a), 313(a), and 333 of this 
Act, is amended--
        (1) by striking ``and'' at the end of paragraph (28);
        (2) by striking the period at the end of paragraph (29) and 
    inserting ``; and''; and
        (3) by adding after paragraph (29) the following new paragraph:
        ``(30) provide that the State shall use the definitions 
    established under section 452(a)(5) in collecting and reporting 
    information as required under this part.''.

SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

    (a) Revised Requirements.--
        (1) In general.--Section 454(16) (42 U.S.C. 654(16)) is 
    amended--
            (A) by striking ``, at the option of the State,'';
            (B) by inserting ``and operation by the State agency'' 
        after ``for the establishment'';
            (C) by inserting ``meeting the requirements of section 
        454A'' after ``information retrieval system'';
            (D) by striking ``in the State and localities thereof, so 
        as (A)'' and inserting ``so as'';
            (E) by striking ``(i)''; and
            (F) by striking ``(including'' and all that follows and 
        inserting a semicolon.
        (2) Automated data processing.--Part D of title IV (42 U.S.C. 
    651-669) is amended by inserting after section 454 the following 
    new section:

``SEC. 454A. AUTOMATED DATA PROCESSING.

    ``(a) In General.--In order for a State to meet the requirements of 
this section, the State agency administering the State program under 
this part shall have in operation a single statewide automated data 
processing and information retrieval system which has the capability to 
perform the tasks specified in this section with the frequency and in 
the manner required by or under this part.
    ``(b) Program Management.--The automated system required by this 
section shall perform such functions as the Secretary may specify 
relating to management of the State program under this part, 
including--
        ``(1) controlling and accounting for use of Federal, State, and 
    local funds in carrying out the program; and
        ``(2) maintaining the data necessary to meet Federal reporting 
    requirements under this part on a timely basis.
    ``(c) Calculation of Performance Indicators.--In order to enable 
the Secretary to determine the incentive payments and penalty 
adjustments required by sections 452(g) and 458, the State agency 
shall--
        ``(1) use the automated system--
            ``(A) to maintain the requisite data on State performance 
        with respect to paternity establishment and child support 
        enforcement in the State; and
            ``(B) to calculate the IV-D paternity establishment 
        percentage for the State for each fiscal year; and
        ``(2) have in place systems controls to ensure the completeness 
    and reliability of, and ready access to, the data described in 
    paragraph (1)(A), and the accuracy of the calculations described in 
    paragraph (1)(B).
    ``(d) Information Integrity and Security.--The State agency shall 
have in effect safeguards on the integrity, accuracy, and completeness 
of, access to, and use of data in the automated system required by this 
section, which shall include the following (in addition to such other 
safeguards as the Secretary may specify in regulations):
        ``(1) Policies restricting access.--Written policies concerning 
    access to data by State agency personnel, and sharing of data with 
    other persons, which--
            ``(A) permit access to and use of data only to the extent 
        necessary to carry out the State program under this part; and
            ``(B) specify the data which may be used for particular 
        program purposes, and the personnel permitted access to such 
        data.
        ``(2) Systems controls.--Systems controls (such as passwords or 
    blocking of fields) to ensure strict adherence to the policies 
    described in paragraph (1).
        ``(3) Monitoring of access.--Routine monitoring of access to 
    and use of the automated system, through methods such as audit 
    trails and feedback mechanisms, to guard against and promptly 
    identify unauthorized access or use.
        ``(4) Training and information.--Procedures to ensure that all 
    personnel (including State and local agency staff and contractors) 
    who may have access to or be required to use confidential program 
    data are informed of applicable requirements and penalties 
    (including those in section 6103 of the Internal Revenue Code of 
    1986), and are adequately trained in security procedures.
        ``(5) Penalties.--Administrative penalties (up to and including 
    dismissal from employment) for unauthorized access to, or 
    disclosure or use of, confidential data.''.
        (3) Regulations.--The Secretary of Health and Human Services 
    shall prescribe final regulations for implementation of section 
    454A of the Social Security Act not later than 2 years after the 
    date of the enactment of this Act.
        (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
    654(24)), as amended by section 303(a)(1) of this Act, is amended 
    to read as follows:
        ``(24) provide that the State will have in effect an automated 
    data processing and information retrieval system--
            ``(A) by October 1, 1997, which meets all requirements of 
        this part which were enacted on or before the date of enactment 
        of the Family Support Act of 1988, and
            ``(B) by October 1, 1999, which meets all requirements of 
        this part enacted on or before the date of the enactment of the 
        Personal Responsibility and Work Opportunity Act of 1995, 
        except that such deadline shall be extended by 1 day for each 
        day (if any) by which the Secretary fails to meet the deadline 
        imposed by section 344(a)(3) of the Personal Responsibility and 
        Work Opportunity Act of 1995;''.
    (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--
        (1) In general.--Section 455(a) (42 U.S.C. 655(a)) is amended--
            (A) in paragraph (1)(B)--
                (i) by striking ``90 percent'' and inserting ``the 
            percent specified in paragraph (3)'';
                (ii) by striking ``so much of''; and
                (iii) by striking ``which the Secretary'' and all that 
            follows and inserting ``, and''; and
            (B) by adding at the end the following new paragraph:
    ``(3)(A) The Secretary shall pay to each State, for each quarter in 
fiscal years 1996 and 1997, 90 percent of so much of the State 
expenditures described in paragraph (1)(B) as the Secretary finds are 
for a system meeting the requirements specified in section 454(16) (as 
in effect on September 30, 1995) but limited to the amount approved for 
States in the advance planning documents of such States submitted on or 
before May 1, 1995.
    ``(B)(i) The Secretary shall pay to each State, for each quarter in 
fiscal years 1996 through 2001, the percentage specified in clause (ii) 
of so much of the State expenditures described in paragraph (1)(B) as 
the Secretary finds are for a system meeting the requirements of 
sections 454(16) and 454A.
    ``(ii) The percentage specified in this clause is 80 percent.''.
        (2) Temporary limitation on payments under special federal 
    matching rate.--
            (A) In general.--The Secretary of Health and Human Services 
        may not pay more than $400,000,000 in the aggregate under 
        section 455(a)(3)(B) of the Social Security Act for fiscal 
        years 1996 through 2001.
            (B) Allocation of limitation among states.--The total 
        amount payable to a State under section 455(a)(3)(B) of such 
        Act for fiscal years 1996 through 2001 shall not exceed the 
        limitation determined for the State by the Secretary of Health 
        and Human Services in regulations.
            (C) Allocation formula.--The regulations referred to in 
        subparagraph (B) shall prescribe a formula for allocating the 
        amount specified in subparagraph (A) among States with plans 
        approved under part D of title IV of the Social Security Act, 
        which shall take into account--
                (i) the relative size of State caseloads under such 
            part; and
                (ii) the level of automation needed to meet the 
            automated data processing requirements of such part.
    (c) Conforming Amendment.--Section 123(c) of the Family Support Act 
of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.

SEC. 345. TECHNICAL ASSISTANCE.

    (a) For Training of Federal and State Staff, Research and 
Demonstration Programs, and Special Projects of Regional or National 
Significance.--Section 452 (42 U.S.C. 652) is amended by adding at the 
end the following new subsection:
    ``(j) Out of any money in the Treasury of the United States not 
otherwise appropriated, there is hereby appropriated to the Secretary 
for each fiscal year an amount equal to 1 percent of the total amount 
paid to the Federal Government pursuant to section 457(a) during the 
immediately preceding fiscal year (as determined on the basis of the 
most recent reliable data available to the Secretary as of the end of 
the 3rd calendar quarter following the end of such preceding fiscal 
year), to cover costs incurred by the Secretary for--
        ``(1) information dissemination and technical assistance to 
    States, training of State and Federal staff, staffing studies, and 
    related activities needed to improve programs under this part 
    (including technical assistance concerning State automated systems 
    required by this part); and
        ``(2) research, demonstration, and special projects of regional 
    or national significance relating to the operation of State 
    programs under this part.
The amount appropriated under this subsection shall remain available 
until expended.''.
    (b) Operation of Federal Parent Locator Service.--Section 453 (42 
U.S.C. 653), as amended by section 316 of this Act, is amended by 
adding at the end the following new subsection:
    ``(o) Recovery of Costs.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there is hereby appropriated 
to the Secretary for each fiscal year an amount equal to 2 percent of 
the total amount paid to the Federal Government pursuant to section 
457(a) during the immediately preceding fiscal year (as determined on 
the basis of the most recent reliable data available to the Secretary 
as of the end of the 3rd calendar quarter following the end of such 
preceding fiscal year), to cover costs incurred by the Secretary for 
operation of the Federal Parent Locator Service under this section, to 
the extent such costs are not recovered through user fees.''.

SEC. 346. REPORTS AND DATA COLLECTION BY THE SECRETARY.

    (a) Annual Report to Congress.--
        (1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is 
    amended--
            (A) by striking ``this part;'' and inserting ``this part, 
        including--''; and
            (B) by adding at the end the following new clauses:
                ``(i) the total amount of child support payments 
            collected as a result of services furnished during the 
            fiscal year to individuals receiving services under this 
            part;
                ``(ii) the cost to the States and to the Federal 
            Government of so furnishing the services; and
                ``(iii) the number of cases involving families--

                    ``(I) who became ineligible for assistance under 
                State programs funded under part A during a month in 
                the fiscal year; and
                    ``(II) with respect to whom a child support payment 
                was received in the month;''.

        (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
    amended--
            (A) in the matter preceding clause (i)--
                (i) by striking ``with the data required under each 
            clause being separately stated for cases'' and inserting 
            ``separately stated for (1) cases'';
                (ii) by striking ``cases where the child was formerly 
            receiving'' and inserting ``or formerly received'';
                (iii) by inserting ``or 1912'' after ``471(a)(17)''; 
            and
                (iv) by inserting ``(2)'' before ``all other'';
            (B) in each of clauses (i) and (ii), by striking ``, and 
        the total amount of such obligations'';
            (C) in clause (iii), by striking ``described in'' and all 
        that follows and inserting ``in which support was collected 
        during the fiscal year;'';
            (D) by striking clause (iv); and
            (E) by redesignating clause (v) as clause (vii), and 
        inserting after clause (iii) the following new clauses:
                ``(iv) the total amount of support collected during 
            such fiscal year and distributed as current support;
                ``(v) the total amount of support collected during such 
            fiscal year and distributed as arrearages;
                ``(vi) the total amount of support due and unpaid for 
            all fiscal years; and''.
        (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is amended 
    by striking ``on the use of Federal courts and''.
        (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended--
            (A) in subparagraph (H), by striking ``and'';
            (B) in subparagraph (I), by striking the period and 
        inserting ``; and''; and
            (C) by inserting after subparagraph (I) the following new 
        subparagraph:
            ``(J) compliance, by State, with the standards established 
        pursuant to subsections (h) and (i).''.
        (5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by 
    striking all that follows subparagraph (J), as added by paragraph 
    (4).
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective with respect to fiscal year 1996 and succeeding fiscal years.

      Subtitle F--Establishment and Modification of Support Orders

    SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD 
      SUPPORT ORDERS.
    Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read as 
follows:
        ``(10) Review and adjustment of support orders upon request.--
    Procedures under which the State shall review and adjust each 
    support order being enforced under this part upon the request of 
    either parent or the State if there is an assignment. Such 
    procedures shall provide the following:
            ``(A) In general.--
                ``(i) 3-year cycle.--Except as provided in 
            subparagraphs (B) and (C), the State shall review and, as 
            appropriate, adjust the support order every 3 years, taking 
            into account the best interests of the child involved.
                ``(ii) Methods of adjustment.--The State may elect to 
            review and, if appropriate, adjust an order pursuant to 
            clause (i) by--

                    ``(I) reviewing and, if appropriate, adjusting the 
                order in accordance with the guidelines established 
                pursuant to section 467(a) if the amount of the child 
                support award under the order differs from the amount 
                that would be awarded in accordance with the 
                guidelines; or
                    ``(II) applying a cost-of-living adjustment to the 
                order in accordance with a formula developed by the 
                State and permit either party to contest the 
                adjustment, within 30 days after the date of the notice 
                of the adjustment, by making a request for review and, 
                if appropriate, adjustment of the order in accordance 
                with the child support guidelines established pursuant 
                to section 467(a).

                ``(iii) No proof of change in circumstances 
            necessary.--Any adjustment under this subparagraph (A) 
            shall be made without a requirement for proof or showing of 
            a change in circumstances.
            ``(B) Automated method.--The State may use automated 
        methods (including automated comparisons with wage or State 
        income tax data) to identify orders eligible for review, 
        conduct the review, identify orders eligible for adjustment, 
        and apply the appropriate adjustment to the orders eligible for 
        adjustment under the threshold established by the State.
            ``(C) Request upon substantial change in circumstances.--
        The State shall, at the request of either parent subject to 
        such an order or of any State child support enforcement agency, 
        review and, if appropriate, adjust the order in accordance with 
        the guidelines established pursuant to section 467(a) based 
        upon a substantial change in the circumstances of either 
        parent.
            ``(D) Notice of right to review.--The State shall provide 
        notice not less than once every 3 years to the parents subject 
        to such an order informing them of their right to request the 
        State to review and, if appropriate, adjust the order pursuant 
        to this paragraph. The notice may be included in the order.''.
    SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES RELATING 
      TO CHILD SUPPORT.
    Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is 
amended by adding at the end the following new paragraphs:
        ``(4) In response to a request by the head of a State or local 
    child support enforcement agency (or a State or local government 
    official authorized by the head of such an agency), if the person 
    making the request certifies to the consumer reporting agency 
    that--
            ``(A) the consumer report is needed for the purpose of 
        establishing an individual's capacity to make child support 
        payments or determining the appropriate level of such payments;
            ``(B) the paternity of the consumer for the child to which 
        the obligation relates has been established or acknowledged by 
        the consumer in accordance with State laws under which the 
        obligation arises (if required by those laws);
            ``(C) the person has provided at least 10 days' prior 
        notice to the consumer whose report is requested, by certified 
        or registered mail to the last known address of the consumer, 
        that the report will be requested; and
            ``(D) the consumer report will be kept confidential, will 
        be used solely for a purpose described in subparagraph (A), and 
        will not be used in connection with any other civil, 
        administrative, or criminal proceeding, or for any other 
        purpose.
        ``(5) To an agency administering a State plan under section 454 
    of the Social Security Act (42 U.S.C. 654) for use to set an 
    initial or modified child support award.''.

SEC. 353. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING FINANCIAL 
              RECORDS TO STATE CHILD SUPPORT ENFORCEMENT AGENCIES IN 
              CHILD SUPPORT CASES.

    (a) In General.--Notwithstanding any other provision of Federal or 
State law, a financial institution shall not be liable under any 
Federal or State law to any person for disclosing any financial record 
of an individual to a State child support enforcement agency attempting 
to establish, modify, or enforce a child support obligation of such 
individual.
    (b) Prohibition of Disclosure of Financial Record Obtained by State 
Child Support Enforcement Agency.--A State child support enforcement 
agency which obtains a financial record of an individual from a 
financial institution pursuant to subsection (a) may disclose such 
financial record only for the purpose of, andto the extent necessary 
in, establishing, modifying, or enforcing a child support obligation of 
such individual.
    (c) Civil Damages for Unauthorized Disclosure.--
        (1) Disclosure by state officer or employee.--If any person 
    knowingly, or by reason of negligence, discloses a financial record 
    of an individual in violation of subsection (b), such individual 
    may bring a civil action for damages against such person in a 
    district court of the United States.
        (2) No liability for good faith but erroneous interpretation.--
    No liability shall arise under this subsection with respect to any 
    disclosure which results from a good faith, but erroneous, 
    interpretation of subsection (b).
        (3) Damages.--In any action brought under paragraph (1), upon a 
    finding of liability on the part of the defendant, the defendant 
    shall be liable to the plaintiff in an amount equal to the sum of--
            (A) the greater of--
                (i) $1,000 for each act of unauthorized disclosure of a 
            financial record with respect to which such defendant is 
            found liable; or
                (ii) the sum of--

                    (I) the actual damages sustained by the plaintiff 
                as a result of such unauthorized disclosure; plus
                    (II) in the case of a willful disclosure or a 
                disclosure which is the result of gross negligence, 
                punitive damages; plus

            (B) the costs (including attorney's fees) of the action.
    (d) Definitions.--For purposes of this section--
        (1) Financial institution.--The term ``financial institution'' 
    means--
            (A) a depository institution, as defined in section 3(c) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
            (B) an institution-affiliated party, as defined in section 
        3(u) of such Act (12 U.S.C. 1813(v));
            (C) any Federal credit union or State credit union, as 
        defined in section 101 of the Federal Credit Union Act (12 
        U.S.C. 1752), including an institution-affiliated party of such 
        a credit union, as defined in section 206(r) of such Act (12 
        U.S.C. 1786(r)); and
            (D) any benefit association, insurance company, safe 
        deposit company, money-market mutual fund, or similar entity 
        authorized to do business in the State.
        (2) Financial record.--The term ``financial record'' has the 
    meaning given such term in section 1101 of the Right to Financial 
    Privacy Act of 1978 (12 U.S.C. 3401).
        (3) State child support enforcement agency.--The term ``State 
    child support enforcement agency'' means a State agency which 
    administers a State program for establishing and enforcing child 
    support obligations.

               Subtitle G--Enforcement of Support Orders

SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

    (a) Collection of Fees.--Section 6305(a) of the Internal Revenue 
Code of 1986 (relating to collection of certain liability) is amended--
        (1) by striking ``and'' at the end of paragraph (3);
        (2) by striking the period at the end of paragraph (4) and 
    inserting ``, and'';
        (3) by adding at the end the following new paragraph:
        ``(5) no additional fee may be assessed for adjustments to an 
    amount previously certified pursuant to such section 452(b) with 
    respect to the same obligor.''; and
        (4) by striking ``Secretary of Health, Education, and Welfare'' 
    each place it appears and inserting ``Secretary of Health and Human 
    Services''.
    (b) Effective Date.--The amendments made by this section shall 
become effective October 1, 1997.

SEC. 362. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

    (a) Consolidation and Streamlining of Authorities.--Section 459 (42 
U.S.C. 659) is amended to read as follows:

``SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING, 
              GARNISHMENT, AND SIMILAR PROCEEDINGS FOR ENFORCEMENT OF 
              CHILD SUPPORT AND ALIMONY OBLIGATIONS.

    ``(a) Consent to Support Enforcement.--Notwithstanding any other 
provision of law (including section 207 of this Act and section 5301 of 
title 38, United States Code), effective January 1, 1975, moneys (the 
entitlement to which is based upon remuneration for employment) due 
from, or payable by, the United States or the District of Columbia 
(including any agency, subdivision, or instrumentality thereof) to any 
individual, including members of the Armed Forces of the United States, 
shall be subject, in like manner and to the same extent as if the 
United States or the District of Columbia were a private person, to 
withholding in accordance with State law enacted pursuant to 
subsections (a)(1) and (b) of section 466 and regulations of the 
Secretary under such subsections, and to any other legal process 
brought, by a State agency administering a program under a State plan 
approved under this part or by an individual obligee, to enforce the 
legal obligation of the individual to provide child support or alimony.
    ``(b) Consent to Requirements Applicable to Private Person.--With 
respect to notice to withhold income pursuant to subsection (a)(1) or 
(b) of section 466, or any other order or process to enforce support 
obligations against an individual (if the order or process contains or 
is accompanied by sufficient data to permit prompt identification of 
the individual and the moneys involved), each governmental entity 
specified in subsection (a) shall be subject to the same requirements 
as would apply if the entity were a private person, except as otherwise 
provided in this section.
    ``(c) Designation of Agent; Response to Notice or Process--
        ``(1) Designation of agent.--The head of each agency subject to 
    this section shall--
            ``(A) designate an agent or agents to receive orders and 
        accept service of process in matters relating to child support 
        or alimony; and
            ``(B) annually publish in the Federal Register the 
        designation of the agent or agents, identified by title or 
        position, mailing address, and telephone number.
        ``(2) Response to notice or process.--If an agent designated 
    pursuant to paragraph (1) of this subsection receives notice 
    pursuant to State procedures in effect pursuant to subsection 
    (a)(1) or (b) of section 466, or is effectively served with any 
    order, process, or interrogatory, with respect to an individual's 
    child support or alimony payment obligations, the agent shall--
            ``(A) as soon as possible (but not later than 15 days) 
        thereafter, send written notice of the notice or service 
        (together with a copy of the notice or service) to the 
        individual at the duty station or last-known home address of 
        the individual;
            ``(B) within 30 days (or such longer period as may be 
        prescribed by applicable State law) after receipt of a notice 
        pursuant to such State procedures, comply with all applicable 
        provisions of section 466; and
            ``(C) within 30 days (or such longer period as may be 
        prescribed by applicable State law) after effective service of 
        any other such order, process, or interrogatory, respond to the 
        order, process, or interrogatory.
    ``(d) Priority of Claims.--If a governmental entity specified in 
subsection (a) receives notice or is served with process, as provided 
in this section, concerning amounts owed by an individual to more than 
1 person--
        ``(1) support collection under section 466(b) must be given 
    priority over any other process, as provided in section 466(b)(7);
        ``(2) allocation of moneys due or payable to an individual 
    among claimants under section 466(b) shall be governed by section 
    466(b) and the regulations prescribed under such section; and
        ``(3) such moneys as remain after compliance with paragraphs 
    (1) and (2) shall be available to satisfy any other such processes 
    on a first-come, first-served basis, with any such process being 
    satisfied out of such moneys as remain after the satisfaction of 
    all such processes which have been previously served.
    ``(e) No Requirement to Vary Pay Cycles.--A governmental entity 
that is affected by legal process served for the enforcement of an 
individual's child support or alimony payment obligations shall not be 
required to vary its normal pay and disbursement cycle in order to 
comply with the legal process.
    ``(f) Relief From Liability.--
        ``(1) Neither the United States, nor the government of the 
    District of Columbia, nor any disbursing officer shall be liable 
    with respect to any payment made from moneys due or payable from 
    the United States to any individual pursuant to legal process 
    regular on its face, if the payment is made in accordance with this 
    section and the regulations issued to carry out this section.
        ``(2) No Federal employee whose duties include taking actions 
    necessary to comply with the requirements of subsection (a) with 
    regard to any individual shall be subject under any law to any 
    disciplinary action or civil or criminal liability or penalty for, 
    or on account of, any disclosure of information made by the 
    employee in connection with the carrying out of such actions.
    ``(g) Regulations.--Authority to promulgate regulations for the 
implementation of this section shall, insofar as this section applies 
to moneys due from (or payable by)--
        ``(1) the United States (other than the legislative or judicial 
    branches of the Federal Government) or the government of the 
    District of Columbia, be vested in the President (or the designee 
    of the President);
        ``(2) the legislative branch of the Federal Government, be 
    vested jointly in the President pro tempore of the Senate and the 
    Speaker of the House of Representatives (or their designees), and
        ``(3) the judicial branch of the Federal Government, be vested 
    in the Chief Justice of the United States (or the designee of the 
    Chief Justice).
    ``(h) Moneys Subject to Process.--
        ``(1) In general.--Subject to paragraph (2), moneys paid or 
    payable to an individual which are considered to be based upon 
    remuneration for employment, for purposes of this section--
            ``(A) consist of--
                ``(i) compensation paid or payable for personal 
            services of the individual, whether the compensation is 
            denominated as wages, salary, commission, bonus, pay, 
            allowances, or otherwise (including severance pay, sick 
            pay, and incentive pay);
                ``(ii) periodic benefits (including a periodic benefit 
            as defined in section 228(h)(3)) or other payments--

                    ``(I) under the insurance system established by 
                title II;
                    ``(II) under any other system or fund established 
                by the United States which provides for the payment of 
                pensions, retirement or retired pay, annuities, 
                dependents' or survivors' benefits, or similar amounts 
                payable on account of personal services performed by 
                the individual or any other individual;
                    ``(III) as compensation for death under any Federal 
                program;
                    ``(IV) under any Federal program established to 
                provide `black lung' benefits; or

                    ``(V) by the Secretary of Veterans Affairs as 
                compensation for a service-connected disability paid by 
                the Secretary to a former member of the Armed Forces 
                who is in receipt of retired or retainer pay if the 
                former member has waived a portion of the retired or 
                retainer pay in order to receive such compensation; and

                ``(iii) worker's compensation benefits paid under 
            Federal or State law but
            ``(B) do not include any payment--
                ``(i) by way of reimbursement or otherwise, to defray 
            expenses incurred by the individual in carrying out duties 
            associated with the employment of the individual; or
                ``(ii) as allowances for members of the uniformed 
            services payable pursuant to chapter 7 of title 37, United 
            States Code, as prescribed by the Secretaries concerned 
            (defined by section 101(5) of such title) as necessary for 
            the efficient performance of duty.
        ``(2) Certain amounts excluded.--In determining the amount of 
    any moneys due from, or payable by, the United States to any 
    individual, there shall be excluded amounts which--
            ``(A) are owed by the individual to the United States;
            ``(B) are required by law to be, and are, deducted from the 
        remuneration or other payment involved, including Federal 
        employment taxes, and fines and forfeitures ordered by court-
        martial;
            ``(C) are properly withheld for Federal, State, or local 
        income tax purposes, if the withholding of the amounts is 
        authorized or required by law and if amounts withheld are not 
        greater than would be the case if the individual claimed all 
        dependents to which he was entitled (the withholding of 
        additional amounts pursuant to section 3402(i) of the Internal 
        Revenue Code of 1986 may be permitted only when the individual 
        presents evidence of a tax obligation which supports the 
        additional withholding);
            ``(D) are deducted as health insurance premiums;
            ``(E) are deducted as normal retirement contributions (not 
        including amounts deducted for supplementary coverage); or
            ``(F) are deducted as normal life insurance premiums from 
        salary or other remuneration for employment (not including 
        amounts deducted for supplementary coverage).
    ``(i) Definitions.--For purposes of this section--
        ``(1) United states.--The term `United States' includes any 
    department, agency, or instrumentality of the legislative, 
    judicial, or executive branch of the Federal Government, the United 
    States Postal Service, the Postal Rate Commission, any Federal 
    corporation created by an Act of Congress that is wholly owned by 
    the Federal Government, and the governments of the territories and 
    possessions of the United States.
        ``(2) Child support.--The term `child support', when used in 
    reference to the legal obligations of an individual to provide such 
    support, means amounts required to be paid under a judgment, 
    decree, or order, whether temporary, final, or subject to 
    modification, issued by a court or an administrative agency of 
    competent jurisdiction, for the support and maintenance of a child, 
    including a child who has attained the age of majority under the 
    law of the issuing State, or a child and the parent with whom the 
    child is living, which provides for monetary support, health care, 
    arrearages or reimbursement, and which may include other related 
    costs and fees, interest and penalties, income withholding, 
    attorney's fees, and other relief.
        ``(3) Alimony.--
            ``(A) In general.--The term `alimony', when used in 
        reference to the legal obligations of an individual to provide 
        the same, means periodic payments of funds for the support and 
        maintenance of the spouse (or former spouse) of the individual, 
        and (subject to and in accordance with State law) includes 
        separate maintenance, alimony pendente lite, maintenance, and 
        spousal support, and includes attorney's fees, interest, and 
        court costs when and to the extent that the same are expressly 
        made recoverable as such pursuant to a decree, order, or 
        judgment issued in accordance with applicable State law by a 
        court of competent jurisdiction.
            ``(B) Exceptions.--Such term does not include--
                ``(i) any child support; or
                ``(ii) any payment or transfer of property or its value 
            by an individual to the spouse or a former spouse of the 
            individual in compliance with any community property 
            settlement, equitable distribution of property, or other 
            division of property between spouses or former spouses.
        ``(4) Private person.--The term `private person' means a person 
    who does not have sovereign or other special immunity or privilege 
    which causes the person not to be subject to legal process.
        ``(5) Legal process.--The term `legal process' means any writ, 
    order, summons, or other similar process in the nature of 
    garnishment--
            ``(A) which is issued by--
                ``(i) a court or an administrative agency of competent 
            jurisdiction in any State, territory, or possession of the 
            United States;
                ``(ii) a court or an administrative agency of competent 
            jurisdiction in any foreign country with which the United 
            States has entered into an agreement which requires the 
            United States to honor the process; or
                ``(iii) an authorized official pursuant to an order of 
            such a court or an administrative agency of competent 
            jurisdiction or pursuant to State or local law; and
            ``(B) which is directed to, and the purpose of which is to 
        compel, a governmental entity which holds moneys which are 
        otherwise payable to an individual to make a payment from the 
        moneys to another party in order tosatisfy a legal obligation 
of the individual to provide child support or make alimony payments.''.
    (b) Conforming Amendments.--
        (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 661 
    and 662) are repealed.
        (2) To title 5, united states code.--Section 5520a of title 5, 
    United States Code, is amended, in subsections (h)(2) and (i), by 
    striking ``sections 459, 461, and 462 of the Social Security Act 
    (42 U.S.C. 659, 661, and 662)'' and inserting ``section 459 of the 
    Social Security Act (42 U.S.C. 659)''.
    (c) Military Retired and Retainer Pay.--
        (1) Definition of court.--Section 1408(a)(1) of title 10, 
    United States Code, is amended--
            (A) by striking ``and'' at the end of subparagraph (B);
            (B) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (C) by adding after subparagraph (C) the following: new 
        subparagraph:
            ``(D) any administrative or judicial tribunal of a State 
        competent to enter orders for support or maintenance (including 
        a State agency administering a program under a State plan 
        approved under part D of title IV of the Social Security Act), 
        and, for purposes of this subparagraph, the term `State' 
        includes the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, and American Samoa.''.
        (2) Definition of court order.--Section 1408(a)(2) of such 
    title is amended--
            (A) by inserting ``or a support order, as defined in 
        section 453(p) of the Social Security Act (42 U.S.C. 653(p)),'' 
        before ``which--'';
            (B) in subparagraph (B)(i), by striking ``(as defined in 
        section 462(b) of the Social Security Act (42 U.S.C. 662(b)))'' 
        and inserting ``(as defined in section 459(i)(2) of the Social 
        Security Act (42 U.S.C. 662(i)(2)))''; and
            (C) in subparagraph (B)(ii), by striking ``(as defined in 
        section 462(c) of the Social Security Act (42 U.S.C. 662(c)))'' 
        and inserting ``(as defined in section 459(i)(3) of the Social 
        Security Act (42 U.S.C. 662(i)(3)))''.
        (3) Public payee.--Section 1408(d) of such title is amended--
            (A) in the heading, by inserting ``(or for Benefit of)'' 
        before ``Spouse or''; and
            (B) in paragraph (1), in the 1st sentence, by inserting 
        ``(or for the benefit of such spouse or former spouse to a 
        State disbursement unit established pursuant to section 454B of 
        the Social Security Act or other public payee designated by a 
        State, in accordance with part D of title IV of the Social 
        Security Act, as directed by court order, or as otherwise 
        directed in accordance with such part D)'' before ``in an 
        amount sufficient''.
        (4) Relationship to part d of title iv.--Section 1408 of such 
    title is amended by adding at the end the following new subsection:
    ``(j) Relationship to Other Laws.--In any case involving an order 
providing for payment of child support (as defined in section 459(i)(2) 
of the Social Security Act) by a member who has never been married to 
the other parent of the child, the provisions of this section shall not 
apply, and the case shall be subject to the provisions of section 459 
of such Act.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this Act.
    SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF 
      THE ARMED FORCES.
    (a) Availability of Locator Information.--
        (1) Maintenance of address information.--The Secretary of 
    Defense shall establish a centralized personnel locator service 
    that includes the address of each member of the Armed Forces under 
    the jurisdiction of the Secretary. Upon request of the Secretary of 
    Transportation, addresses for members of the Coast Guard shall be 
    included in the centralized personnel locator service.
        (2) Type of address.--
            (A) Residential address.--Except as provided in 
        subparagraph (B), the address for a member of the Armed Forces 
        shown in the locator service shall be the residential address 
        of that member.
            (B) Duty address.--The address for a member of the Armed 
        Forces shown in the locator service shall be the duty address 
        of that member in the case of a member--
                (i) who is permanently assigned overseas, to a vessel, 
            or to a routinely deployable unit; or
                (ii) with respect to whom the Secretary concerned makes 
            a determination that the member's residential address 
            should not be disclosed due to national security or safety 
            concerns.
        (3) Updating of locator information.--Within 30 days after a 
    member listed in the locator service establishes a new residential 
    address (or a new duty address, in the case of a member covered by 
    paragraph (2)(B)), the Secretary concerned shall update the locator 
    service to indicate the new address of the member.
        (4) Availability of information.--The Secretary of Defense 
    shall make information regarding the address of a member of the 
    Armed Forces listed in the locator service available, on request, 
    to the Federal Parent Locator Service established under section 453 
    of the Social Security Act.
    (b) Facilitating Granting of Leave for Attendance at Hearings.--
        (1) Regulations.--The Secretary of each military department, 
    and the Secretary of Transportation with respect to the Coast Guard 
    when it is not operating as a service in the Navy, shall prescribe 
    regulations to facilitate the granting of leave to a member of the 
    Armed Forces under the jurisdiction of that Secretary in a case in 
    which--
            (A) the leave is needed for the member to attend a hearing 
        described in paragraph (2);
            (B) the member is not serving in or with a unit deployed in 
        a contingency operation (as defined in section 101 of title 10, 
        United States Code); and
            (C) the exigencies of military service (as determined by 
        the Secretary concerned) do not otherwise require that such 
        leave not be granted.
        (2) Covered hearings.--Paragraph (1) applies to a hearing that 
    is conducted by a court or pursuant to an administrative process 
    established under State law, in connection with a civil action--
            (A) to determine whether a member of the Armed Forces is a 
        natural parent of a child; or
            (B) to determine an obligation of a member of the Armed 
        Forces to provide child support.
        (3) Definitions.--For purposes of this subsection--
            (A) The term ``court'' has the meaning given that term in 
        section 1408(a) of title 10, United States Code.
            (B) The term ``child support'' has the meaning given such 
        term in section 459(i) of the Social Security Act (42 U.S.C. 
        659(i)).
    (c) Payment of Military Retired Pay in Compliance With Child 
Support Orders.--
        (1) Date of certification of court order.--Section 1408 of 
    title 10, United States Code, as amended by section 362(c)(4) of 
    this Act, is amended--
            (A) by redesignating subsections (i) and (j) as subsections 
        (j) and (k), respectively; and
            (B) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of receipt 
by the Secretary.''.
        (2) Payments consistent with assignments of rights to states.--
    Section 1408(d)(1) of such title is amended by inserting after the 
    1st sentence the following new sentence: ``In the case of a spouse 
    or former spouse who, pursuant to section 408(a)(4) of the Social 
    Security Act (42 U.S.C. 607(a)(4)), assigns to a State the rights 
    of the spouse or former spouse to receive support, the Secretary 
    concerned may make the child support payments referred to in the 
    preceding sentence to that State in amounts consistent with that 
    assignment of rights.''.
        (3) Arrearages owed by members of the uniformed services.--
    Section 1408(d) of such title is amended by adding at the end the 
    following new paragraph:
    ``(6) In the case of a court order for which effective service is 
made on the Secretary concerned on or after the date of the enactment 
of this paragraph and which provides for payments from the disposable 
retired pay of a member to satisfy the amount of child support set 
forth in the order, the authority provided in paragraph (1) to make 
payments from the disposable retired pay of a member to satisfy the 
amount of child support set forth in a court order shall apply to 
payment of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently become 
due.''.
        (4) Payroll deductions.--The Secretary of Defense shall begin 
    payroll deductions within 30 days after receiving notice of 
    withholding, or for the 1st pay period that begins after such 30-
    day period.

SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466 (42 U.S.C. 666), as amended by section 321 of this Act, 
is amended by adding at the end the following new subsection:
    ``(g) Laws Voiding Fraudulent Transfers.--In order to satisfy 
section 454(20)(A), each State must have in effect--
        ``(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
            ``(B) the Uniform Fraudulent Transfer Act of 1984; or
            ``(C) another law, specifying indicia of fraud which create 
        a prima facie case that a debtor transferred income or property 
        to avoid payment to a child support creditor, which the 
        Secretary finds affords comparable rights to child support 
        creditors; and
        ``(2) procedures under which, in any case in which the State 
    knows of a transfer by a child support debtor with respect to which 
    such a prima facie case is established, the State must--
            ``(A) seek to void such transfer; or
            ``(B) obtain a settlement in the best interests of the 
        child support creditor.''.
    SEC. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD 
      SUPPORT.
    (a) In General.--Section 466(a) of the Social Security Act (42 
U.S.C. 666(a)), as amended by sections 315, 317(a), and 323 of this 
Act, is amended by adding at the end the following new paragraph:
        ``(15) Procedures to ensure that persons owing past-due support 
    work or have a plan for payment of such support.--
            ``(A) In general.--Procedures under which the State has the 
        authority, in any case in which an individual owes past-due 
        support with respect to a child receiving assistance under a 
        State program funded under part A, to seek a court order that 
        requires the individual to--
                ``(i) pay such support in accordance with a plan 
            approved by the court, or, at the option of the State, a 
            plan approved by the State agency administering the State 
            program under this part; or
                ``(ii) if the individual is subject to such a plan and 
            is not incapacitated, participate in such work activities 
            (as defined in section 407(d)) as the court, or, at the 
            option of the State, the State agency administering the 
            State program under this part, deems appropriate.
            ``(B) Past-due support defined.--For purposes of 
        subparagraph (A), the term `past-due support' means the amount 
        of a delinquency, determined under a court order, or an order 
        of an administrative process established under State law, for 
        support and maintenance of a child, or of a child and the 
        parent with whom the child is living.''.
    (b) Conforming amendment.--The flush paragraph at the end of 
section 466(a) (42 U.S.C.666(a)) is amended by striking ``and (7)'' and 
inserting ``(7), and (15)''.

SEC. 366. DEFINITION OF SUPPORT ORDER.

    Section 453 (42 U.S.C. 653) as amended by sections 316 and 345(b) 
of this Act, is amended by adding at the end the following new 
subsection:
    ``(p) Support Order Defined.--As used in this part, the term 
`support order' means a judgment, decree, or order, whether temporary, 
final, or subject to modification, issued by a court or an 
administrative agency of competent jurisdiction, for the support and 
maintenance of a child, including a child who has attained the age of 
majority under the law of the issuing State, or a child and the parent 
with whom the child is living, which provides for monetary support, 
health care, arrearages, or reimbursement, and which may include 
related costs and fees, interest and penalties, income withholding, 
attorneys' fees, and other relief.''.

SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

    Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as 
follows:
        ``(7) Reporting arrearages to credit bureaus.--
            ``(A) In general.--Procedures (subject to safeguards 
        pursuant to subparagraph (B)) requiring the State to report 
        periodically to consumer reporting agencies (as defined in 
        section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 
        1681a(f)) the name of any noncustodial parent who is delinquent 
        in the payment of support, and the amount of overdue support 
        owed by such parent.
            ``(B) Safeguards.--Procedures ensuring that, in carrying 
        out subparagraph (A), information with respect to a 
        noncustodial parent is reported--
                ``(i) only after such parent has been afforded all due 
            process required under State law, including notice and a 
            reasonable opportunity to contest the accuracy of such 
            information; and
                ``(ii) only to an entity that has furnished evidence 
            satisfactory to the State that the entity is a consumer 
            reporting agency (as so defined).''.

SEC. 368. LIENS.

    Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read as 
follows:
        ``(4) Liens.--Procedures under which--
            ``(A) liens arise by operation of law against real and 
        personal property for amounts of overdue support owed by a 
        noncustodial parent who resides or owns property in the State; 
        and
            ``(B) the State accords full faith and credit to liens 
        described in subparagraph (A) arising in another State, without 
        registration of the underlying order.''.

SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317(a), 323, and 365 of this Act, is amended by adding at the end the 
following:
        ``(16) Authority to withhold or suspend licenses.--Procedures 
    under which the State has (and uses in appropriate cases) authority 
    to withhold or suspend, or to restrict the use of driver's 
    licenses, professional and occupational licenses, and recreational 
    licenses of individuals owing overdue support or failing, after 
    receiving appropriate notice, to comply with subpoenas or warrants 
    relating to paternity or child support proceedings.''.
    SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD SUPPORT.
    (a) HHS Certification Procedure.--
        (1) Secretarial responsibility.--Section 452 (42 U.S.C. 652), 
    as amended by section 345 of this Act, is amended by adding at the 
    end the following new subsection:
    ``(k)(1) If the Secretary receives a certification by a State 
agency in accordance with the requirements of section 454(31) that an 
individual owes arrearages of child support in an amount exceeding 
$5,000, the Secretary shall transmit such certification to the 
Secretary of State for action (with respect to denial, revocation, or 
limitation of passports) pursuant to section 370(b) of the Personal 
Responsibility and Work Opportunity Act of 1995.
    ``(2) The Secretary shall not be liable to an individual for any 
action with respect to a certification by a State agency under this 
section.''.
        (2) State case agency responsibility.--Section 454 (42 U.S.C. 
    654), as amended by sections 301(b), 303(a), 312(b), 313(a), 333, 
    and 343(b) of this Act, is amended--
            (A) by striking ``and'' at the end of paragraph (29);
            (B) by striking the period at the end of paragraph (30) and 
        inserting ``; and''; and
            (C) by adding after paragraph (30) the following new 
        paragraph:
        ``(31) provide that the State agency will have in effect a 
    procedure for certifying to the Secretary, for purposes of the 
    procedure under section 452(k), determinations that individuals owe 
    arrearages of child support in an amount exceeding $5,000, under 
    which procedure--
            ``(A) each individual concerned is afforded notice of such 
        determination and the consequences thereof, and an opportunity 
        to contest the determination; and
            ``(B) the certification by the State agency is furnished to 
        the Secretary in such format, and accompanied by such 
        supporting documentation, as the Secretary may require.''.
    (b) State Department Procedure for Denial of Passports.--
        (1) In general.--The Secretary of State shall, upon 
    certification by the Secretary of Health and Human Services 
    transmitted under section 452(k) of the Social Security Act, refuse 
    to issue a passport to such individual, and may revoke, restrict, 
    or limit a passport issued previously to such individual.
        (2) Limit on liability.--The Secretary of State shall not be 
    liable to an individual for any action with respect to a 
    certification by a State agency under this section.
    (c) Effective Date.--This section and the amendments made by this 
section shall become effective October 1, 1996.

SEC. 371. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

    (a) Authority for International Agreements.--Part D of title IV, as 
amended by section 362(a) of this Act, is amended by adding after 
section 459 the following new section:

``SEC. 459A. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

    ``(a) Authority for Declarations.--
        ``(1) Declaration.--The Secretary of State, with the 
    concurrence of the Secretary of Health and Human Services, is 
    authorized to declare any foreign country (or a political 
    subdivision thereof) to be a foreign reciprocating country if the 
    foreign country has established, or undertakes to establish, 
    procedures for the establishment and enforcement of duties of 
    support owed to obligees who are residents of the United States, 
    and such procedures are substantially in conformity with the 
    standards prescribed under subsection (b).
        ``(2) Revocation.--A declaration with respect to a foreign 
    country made pursuant to paragraph (1) may be revoked if the 
    Secretaries of State and Health and Human Services determine that--
            ``(A) the procedures established by the foreign nation 
        regarding the establishment and enforcement of duties of 
        support have been so changed, or the foreign nation's 
        implementation of such procedures is so unsatisfactory, that 
        such procedures do not meet the criteria for such a 
        declaration; or
            ``(B) continued operation of the declaration is not 
        consistent with the purposes of this part.
        ``(3) Form of declaration.--A declaration under paragraph (1) 
    may be made in the form of an international agreement, in 
    connection with an international agreement or corresponding foreign 
    declaration, or on a unilateral basis.
    ``(b) Standards for Foreign Support Enforcement Procedures.--
        ``(1) Mandatory elements.--Child support enforcement procedures 
    of a foreign country which may be the subject of a declaration 
    pursuant to subsection (a)(1) shall include the following elements:
            ``(A) The foreign country (or political subdivision 
        thereof) has in effect procedures, available to residents of 
        the United States--
                ``(i) for establishment of paternity, and for 
            establishment of orders of support for children and 
            custodial parents; and
                ``(ii) for enforcement of orders to provide support to 
            children and custodial parents, including procedures for 
            collection and appropriate distribution of support payments 
            under such orders.
            ``(B) The procedures described in subparagraph (A), 
        including legal and administrative assistance, are provided to 
        residents of the United States at no cost.
            ``(C) An agency of the foreign country is designated as a 
        Central Authority responsible for--
        ``(i) facilitating child support enforcement in cases involving 
    residents of the foreign nation and residents of the United States; 
    and
        ``(ii) ensuring compliance with the standards established 
    pursuant to this subsection.
        ``(2) Additional elements.--The Secretary of Health and Human 
    Services and the Secretary of State, in consultation with the 
    States, may establish such additional standards as may be 
    considered necessary to further the purposes of this section.
    ``(c) Designation of United States Central Authority.--It shall be 
the responsibility of the Secretary of Health and Human Services to 
facilitate child support enforcement in cases involving residents of 
the United States and residents of foreign nations that are the subject 
of a declaration under this section, by activities including--
        ``(1) development of uniform forms and procedures for use in 
    such cases;
        ``(2) notification of foreign reciprocating countries of the 
    State of residence of individuals sought for support enforcement 
    purposes, on the basis of information provided by the Federal 
    Parent Locator Service; and
        ``(3) such other oversight, assistance, and coordination 
    activities as the Secretary may find necessary and appropriate.
    ``(d) Effect on Other Laws.--States may enter into reciprocal 
arrangements for the establishment and enforcement of child support 
obligations with foreign countries that are not the subject of a 
declaration pursuant to subsection (a), to the extent consistent with 
Federal law.''.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 301(b), 303(a), 312(b), 313(a), 333, 343(b), and 
370(a)(2) of this Act, is amended--
        (1) by striking ``and'' at the end of paragraph (30);
        (2) by striking the period at the end of paragraph (31) and 
    inserting ``; and''; and
        (3) by adding after paragraph (31) the following new paragraph:
        ``(32)(A) provide that any request for services under this part 
    by a foreign reciprocating country or a foreign country with which 
    the State has an arrangement described in section 459A(d)(2) shall 
    be treated as a request by a State;
        ``(B) provide, at State option, notwithstanding paragraph (4) 
    or any other provision of this part, for services under the plan 
    for enforcement of a spousal support order not described in 
    paragraph (4)(B) entered by such a country (or subdivision); and
        ``(C) provide that no applications will be required from, and 
    no costs will be assessed for such services against, the 
foreignreciprocating country or foreign obligee (but costs may at State 
option be assessed against the obligor).''.

SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317(a), 323, 365, and 369 of this Act, is amended by adding at the end 
the following new paragraph:
        ``(17) Financial institution data matches.--
            ``(A) In general.--Procedures under which the State agency 
        shall enter into agreements with financial institutions doing 
        business in the State--
                ``(i) to develop and operate, in coordination with such 
            financial institutions, a data match system, using 
            automated data exchanges to the maximum extent feasible, in 
            which each such financial institution is required to 
            provide for each calendar quarter the name, record address, 
            social security number or other taxpayer identification 
            number, and other identifying information for each 
            noncustodial parent who maintains an account at such 
            institution and who owes past-due support, as identified by 
            the State by name and social security number or other 
            taxpayer identification number; and
                ``(ii) in response to a notice of lien or levy, 
            encumber or surrender, as the case may be, assets held by 
            such institution on behalf of any noncustodial parent who 
            is subject to a child support lien pursuant to paragraph 
            (4).
            ``(B) Reasonable fees.--The State agency may pay a 
        reasonable fee to a financial institution for conducting the 
        data match provided for in subparagraph (A)(i), not to exceed 
        the actual costs incurred by such financial institution.
            ``(C) Liability.--A financial institution shall not be 
        liable under any Federal or State law to any person--
                ``(i) for any disclosure of information to the State 
            agency under subparagraph (A)(i);
                ``(ii) for encumbering or surrendering any assets held 
            by such financial institution in response to a notice of 
            lien or levy issued by the State agency as provided for in 
            subparagraph (A)(ii); or
                ``(iii) for any other action taken in good faith to 
            comply with the requirements of subparagraph (A).
            ``(D) Definitions.--For purposes of this paragraph--
                ``(i) Financial institution.--The term `financial 
            institution' means any Federal or State commercial savings 
            bank, including savings association or cooperative bank, 
            Federal- or State-chartered credit union, benefit 
            association, insurance company, safe deposit company, 
            money-market mutual fund, or any similar entity authorized 
            to do business in the State; and
                ``(ii) Account.--The term `account' means a demand 
            deposit account, checking or negotiable withdrawal order 
            account, savings account, time deposit account, or money-
            market mutual fund account.''.
    SEC. 373. ENFORCEMENT OF ORDERS AGAINST PATERNAL OR MATERNAL 
      GRANDPARENTS IN CASES OF MINOR PARENTS.
    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317(a), 323, 365, 369, and 372 of this Act, is amended by adding at the 
end the following new paragraph:
        ``(18) Enforcement of orders against paternal or maternal 
    grandparents.--Procedures under which, at the State's option, any 
    child support order enforced under this part with respect to a 
    child of minor parents, if the custodial parents of such child is 
    receiving assistance under the State program under part A, shall be 
    enforceable, jointly and severally, against the parents of the 
    noncustodial parents of such child.''.
    SEC. 374. NONDISCHARGEABILITY IN BANKRUPTCY OF CERTAIN DEBTS FOR 
      THE SUPPORT OF A CHILD.
    (a) Amendment to Title 11 of the United States Code.--Section 
523(a) of title 11, United States Code, is amended--
        (1) in paragraph (16) by striking the period at the end and 
    inserting ``; or'',
        (2) by adding at the end the following:
        ``(17) to a State or municipality for assistance provided by 
    such State or municipality under a State program funded under 
    section 403 of the Social Security Act to the extent that such 
    assistance is provided for the support of a child of the debtor.'', 
    and
        (3) in paragraph (5), by inserting `` or section 408'' after 
    ``section 402(a)(26).
    (b) Amendment to the Social Security Act.--Section 456(b) of the 
Social Security Act (42 U.S.C. 656(b)) is amended to read as follows:
    ``(b) Nondischargeability.--A debt (as defined in section 101 of 
title 11 of the United States Code) to a State (as defined in such 
section) or municipality (as defined in such section) for assistance 
provided by such State or municipality under a State program funded 
under section 403 is not dischargeable under section 727, 1141, 
1228(a), 1228(b), or 1328(b) of title 11 of the United States Code to 
the extent that such assistance is provided for the support of a child 
of the debtor (as defined in such section).''.
    (c) Application of Amendments.--The amendments made by this section 
shall apply only with respect to cases commenced under title 11 of the 
United States Code after the effective date of this section.

                      Subtitle H--Medical Support

    SEC. 376. CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD SUPPORT 
      ORDER.
    (a) In General.--Section 609(a)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
        (1) by striking ``issued by a court of competent 
    jurisdiction'';
        (2) by striking the period at the end of clause (ii) and 
    inserting a comma; and
        (3) by adding, after and below clause (ii), the following:
        ``if such judgment, decree, or order (I) is issued by a court 
        of competent jurisdiction or (II) is issued through an 
        administrative process established under State law and has the 
        force and effect of law under applicable State law.''.
    (b) Effective Date.--
        (1) In general.--The amendments made by this section shall take 
    effect on the date of the enactment of this Act.
        (2) Plan amendments not required until january 1, 1996.--Any 
    amendment to a plan required to be made by an amendment made by 
    this section shall not be required to be made before the 1st plan 
    year beginning on or after January 1, 1996, if--
            (A) during the period after the date before the date of the 
        enactment of this Act and before such 1st plan year, the plan 
        is operated in accordance with the requirements of the 
        amendments made by this section; and
            (B) such plan amendment applies retroactively to the period 
        after the date before the date of the enactment of this Act and 
        before such 1st plan year.
    A plan shall not be treated as failing to be operated in accordance 
    with the provisions of the plan merely because it operates in 
    accordance with this paragraph.

SEC. 377. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317(a), 323, 365, 369, 372, and 373 of this Act, is amended by adding 
at the end the following new paragraph:
        ``(19) Health care coverage.--Procedures under which all child 
    support orders enforced pursuant to this part shall include a 
    provision for the health care coverage of the child, and in the 
    case in which a noncustodial parent provides such coverage and 
    changes employment, and the new employer provides health care 
    coverage, the State agency shall transfer notice of the provision 
    to the employer, which notice shall operate to enroll the child in 
    the noncustodial parent's health plan, unless the noncustodial 
    parent contests the notice.''.

     Subtitle I--Enhancing Responsibility and Opportunity for Non-
                          Residential Parents

    SEC. 381. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.
    Part D of title IV (42 U.S.C. 651-669) is amended by adding at the 
end the following:
``SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.
    ``(a) In General.--The Administration for Children and Families 
shall make grants under this section to enable States to establish and 
administer programs to support and facilitate noncustodial parents' 
access to and visitation of their children, by means of activities 
including mediation (both voluntary and mandatory), counseling, 
education, development of parenting plans, visitation enforcement 
(including monitoring, supervision and neutral drop-off and pickup), 
and development of guidelines for visitation and alternative custody 
arrangements.
    ``(b) Amount of Grant.--The amount of the grant to be made to a 
State under this section for a fiscal year shall be an amount equal to 
the lesser of--
        ``(1) 90 percent of State expenditures during the fiscal year 
    for activities described in subsection (a); or
        ``(2) the allotment of the State under subsection (c) for the 
    fiscal year.
    ``(c) Allotments to States.--
        ``(1) In general.--The allotment of a State for a fiscal year 
    is the amount that bears the same ratio to the amount appropriated 
    for grants under this section for the fiscal year as the number of 
    children in the State living with only 1 biological parent bears to 
    the total number of such children in all States.
        ``(2) Minimum allotment.--The Administration for Children and 
    Families shall adjust allotments to States under paragraph (1) as 
    necessary to ensure that no State is allotted less than--
            ``(A) $50,000 for fiscal year 1996 or 1997; or
            ``(B) $100,000 for any succeeding fiscal year.
    ``(d) No Supplantation of State Expenditures for Similar 
Activities.--A State to which a grant is made under this section may 
not use the grant to supplant expenditures by the State for activities 
specified in subsection (a), but shall use the grant to supplement such 
expenditures at a level at least equal to the level of such 
expenditures for fiscal year 1995.
    ``(e) State Administration.--Each State to which a grant is made 
under this section--
        ``(1) may administer State programs funded with the grant, 
    directly or through grants to or contracts with courts, local 
    public agencies, or non-profit private entities;
        ``(2) shall not be required to operate such programs on a 
    statewide basis; and
        ``(3) shall monitor, evaluate, and report on such programs in 
    accordance with regulations prescribed by the Secretary.''.

                    Subtitle J--Effect of Enactment

SEC. 391. EFFECTIVE DATES.

    (a) In General.--Except as otherwise specifically provided (but 
subject to subsections (b) and (c))--
        (1) the provisions of this title requiring the enactment or 
    amendment of State laws under section 466 of the Social Security 
    Act, or revision of State plans under section 454 of such Act, 
    shall be effective with respect to periods beginning on and after 
    October 1, 1996; and
        (2) all other provisions of this title shall become effective 
    upon the date of the enactment of this Act.
    (b) Grace Period for State Law Changes.--The provisions of this 
title shall become effective with respect to a State on the later of--
        (1) the date specified in this title, or
        (2) the effective date of laws enacted by the legislature of 
    such State implementing such provisions,
but in no event later than the 1st day of the 1st calendar quarter 
beginning after the close of the 1st regular session of the State 
legislature that begins after the date of the enactment of this Act. 
For purposes of the previous sentence, in the case of a State that has 
a 2-year legislative session, each year of such session shall be deemed 
to be a separate regular session of the State legislature.
    (c) Grace Period for State Constitutional Amendment.--A State shall 
not be found out of compliance with any requirement enacted by this 
title if the State is unable to so comply without amending the State 
constitution until the earlier of--
        (1) 1 year after the effective date of the necessary State 
    constitutional amendment; or
        (2) 5 years after the date of the enactment of this Act.

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

    SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE AND 
      IMMIGRATION.
    The Congress makes the following statements concerning national 
policy with respect to welfare and immigration:
        (1) Self-sufficiency has been a basic principle of United 
    States immigration law since this country's earliest immigration 
    statutes.
        (2) It continues to be the immigration policy of the United 
    States that--
            (A) aliens within the nation's borders not depend on public 
        resources to meet their needs, but rather rely on their own 
        capabilities and the resources of their families, their 
        sponsors, and private organizations, and
            (B) the availability of public benefits not constitute an 
        incentive for immigration to the United States.
        (3) Despite the principle of self-sufficiency, aliens have been 
    applying for and receiving public benefits from Federal, State, and 
    local governments at increasing rates.
        (4) Current eligibility rules for public assistance and 
    unenforceable financial support agreements have proved wholly 
    incapable of assuring that individual aliens not burden the public 
    benefits system.
        (5) It is a compelling government interest to enact new rules 
    for eligibility and sponsorship agreements in order to assure that 
    aliens be self-reliant in accordance with national immigration 
    policy.
        (6) It is a compelling government interest to remove the 
    incentive for illegal immigration provided by the availability of 
    public benefits.
        (7) With respect to the State authority to make determinations 
    concerning the eligibility of qualified aliens for public benefits 
    in this title, a State that chooses to follow the Federal 
    classification in determining the eligibility of such aliens for 
    public assistance shall be considered to have chosen the least 
    restrictive means available for achieving the compelling 
    governmental interest of assuring that aliens be self-reliant in 
    accordance with national immigration policy.

              Subtitle A--Eligibility for Federal Benefits

    SEC. 401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR 
      FEDERAL PUBLIC BENEFITS.
    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), an alien who is not a qualified 
alien (as defined section 431) is not eligible for any Federal public 
benefit (as defined in subsection (c)).
    (b) Exceptions.--
        (1) Subsection (a) shall not apply with respect to the 
    following Federal public benefits:
            (A) Emergency medical services under title XIX or XXI of 
        the Social Security Act.
            (B) Short-term, non-cash, in-kind emergency disaster 
        relief.
            (C)(i) Public health assistance for immunizations.
                (ii) Public health assistance for testing and treatment 
            of a serious communicable disease if the Secretary of 
            Health and Human Services determines that it is necessary 
            to prevent the spread of such disease.
            (D) Programs, services, or assistance (such as soup 
        kitchens, crisis counseling and intervention, and short-term 
        shelter) specified by the Attorney General, in the Attorney 
        General's sole and unreviewable discretion after consultation 
        with appropriate Federal agencies and departments, which (i) 
        deliver in-kind services at the community level, including 
        through public or private nonprofit agencies; (ii) do not 
        condition the provision of assistance, the amount of assistance 
        provided, or the cost of assistance provided on the individual 
        recipient's income or resources; and (iii) are necessary for 
        the protection of life or safety.
            (E) Programs for housing or community development 
        assistance or financial assistance administered by the 
        Secretary of Housing and Urban Development, any program under 
        title V of the Housing Act of 1949, or any assistance under 
        section 306C of the Consolidated Farm and Rural Development 
        Act, to the extent that the alien is receiving such a benefit 
        on the date of the enactment of this Act.
        (2) Subsection (a) shall not apply to any benefit payable under 
    title II of the Social Security Act to an alien who is lawfully 
    present in the United States as determined by the Attorney General, 
    to any benefit if nonpayment of such benefit would contravene an 
    international agreement described in section 233 of the Social 
    Security Act, to any benefit if nonpayment would be contrary to 
    section 202(t) of the Social Security Act, or to any benefit 
    payable under title II of the Social Security Act to which 
    entitlement is based on an application filed in or before the month 
    in which this Act becomes law.
    (c) Federal Public Benefit Defined.--
        (1) Except as provided in paragraph (2), for purposes of this 
    title the term ``Federal public benefit'' means--
            (A) any grant, contract, loan, professional license, or 
        commercial license provided by an agency of the United States 
        or by appropriated funds of the United States; and
            (B) any retirement, welfare, health, disability, public or 
        assisted housing, post-secondary education, food assistance, 
        unemployment benefit, or any other similar benefit for which 
        payments or assistance are provided to an individual, 
        household, or family eligibility unit by an agency of the 
        United States or by appropriated funds of the United States.
        (2) Such term shall not apply--
            (A) to any contract, professional license, or commercial 
        license for a nonimmigrant whose visa for entry is related to 
        such employment in the United States; or
            (B) with respect to benefits for an alien who as a work 
        authorized nonimmigrant or as an alien lawfully admitted for 
        permanent residence under the Immigration and Nationality Act 
        qualified for such benefits and for whom the United States 
        under reciprocal treaty agreements is required to pay benefits, 
        as determined by the Attorney General, after consultation with 
        the Secretary of State.
    SEC. 402. LIMITED ELIGIBILITY OF CERTAIN QUALIFIED ALIENS FOR 
      CERTAIN FEDERAL PROGRAMS.
    (a) Limited Eligibility for Specified Federal Programs.--
        (1) In general.--Notwithstanding any other provision of law and 
    except as provided in paragraph (2), an alien who is a qualified 
    alien (as defined in section 431) is not eligible for any specified 
    Federal program (as defined in paragraph (3)).
        (2) Exceptions.--
            (A) Time-limited exception for refugees and asylees.--
        Paragraph (1) shall not apply to an alien until 5 years after 
        the date--
                (i) an alien is admitted to the United States as a 
            refugee under section 207 of the Immigration and 
            Nationality Act;
                (ii) an alien is granted asylum under section 208 of 
            such Act; or
                (iii) an alien's deportation is withheld under section 
            243(h) of such Act.
            (B) Certain permanent resident aliens.--Paragraph (1) shall 
        not apply to an alien who--
                (i) is lawfully admitted to the United States for 
            permanent residence under the Immigration and Nationality 
            Act; and
                (ii)(I) has worked 40 qualifying quarters of coverage 
            as defined under title II of the Social Security Act or can 
            be credited with such qualifying quarters as provided under 
            section 436, and (II) did not receive any Federal means-
            tested public benefit (as defined in section 403(c)) during 
            any such quarter.
            (C) Veteran and active duty exception.--Paragraph (1) shall 
        not apply to an alien who is lawfully residing in any State and 
        is--
                (i) a veteran (as defined in section 101 of title 38, 
            United States Code) with a discharge characterized as an 
            honorable discharge and not on account of alienage,
                (ii) on active duty (other than active duty for 
            training) in the Armed Forces of the United States, or
                (iii) the spouse or unmarried dependent child of an 
            individual described in clause (i) or (ii).
            (D) Transition for aliens currently receiving benefits.--
        Paragraph (1) shall apply to the eligibility of an alien for a 
        program for months beginning on or after January 1, 1997, if, 
        on the date of the enactment of this Act, the alien is lawfully 
        residing in any State and is receiving benefits under such 
        program on the date of the enactment of this Act.
        (3) Specified Federal program defined.--For purposes of this 
    title, the term ``specified Federal program'' means any of the 
    following:
            (A) SSI.--The supplemental security income program under 
        title XVI of the Social Security Act.
            (B) Food stamps.--The food stamp program as defined in 
        section 3(h) of the Food Stamp Act of 1977.
    (b) Limited Eligibility for Designated Federal Programs.--
        (1) In general.--Notwithstanding any other provision of law and 
    except as provided in section 403 and paragraph (2), a State is 
    authorized to determine the eligibility of an alien who is a 
    qualified alien (as defined in section 431) for any designated 
    Federal program (as defined in paragraph (3)).
        (2) Exceptions.--Qualified aliens under this paragraph shall be 
    eligible for any designated Federal program.
            (A) Time-limited exception for refugees and asylees.--
                (i) An alien who is admitted to the United States as a 
            refugee under section 207 of the Immigration and 
            Nationality Act until 5 years after the date of an alien's 
            entry into the United States.
                (ii) An alien who is granted asylum under section 208 
            of such Act until 5 years after the date of such grant of 
            asylum.
                (iii) An alien whose deportation is being withheld 
            under section 243(h) of such Act until 5 years after such 
            withholding.
            (B) Certain permanent resident aliens.--An alien who--
                (i) is lawfully admitted to the United States for 
            permanent residence under the Immigration and Nationality 
            Act; and
                (ii)(I) has worked 40 qualifying quarters of coverage 
            as defined under title II of the Social Security Act or can 
            be credited with such qualifying quarters as provided under 
            section 436, and (II) did not receiveany Federal means-
tested public benefit (as defined in section 403(c)) during any such 
quarter.
            (C) Veteran and active duty exception.--An alien who is 
        lawfully residing in any State and is--
                (i) a veteran (as defined in section 101 of title 38, 
            United States Code) with a discharge characterized as an 
            honorable discharge and not on account of alienage,
                (ii) on active duty (other than active duty for 
            training) in the Armed Forces of the United States, or
                (iii) the spouse or unmarried dependent child of an 
            individual described in clause (i) or (ii).
            (D) Transition for those currently receiving benefits.--An 
        alien who on the date of the enactment of this Act is lawfully 
        residing in any State and is receiving benefits under such 
        program on the date of the enactment of this Act shall continue 
        to be eligible to receive such benefits until January 1, 1997.
        (3) Designated Federal program defined.--For purposes of this 
    title, the term ``designated Federal program'' means any of the 
    following:
            (A) Temporary assistance for needy families.--The program 
        of block grants to States for temporary assistance for needy 
        families under part A of title IV of the Social Security Act.
            (B) Social services block grant.--The program of block 
        grants to States for social services under title XX of the 
        Social Security Act.
            (C) Medicaid and MediGrant.--The program of medical 
        assistance under title XIX and XXI of the Social Security Act.
    SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR 
      FEDERAL MEANS-TESTED PUBLIC BENEFIT.
    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), an alien who is a qualified alien 
(as defined in section 431) and who enters the United States on or 
after the date of the enactment of this Act is not eligible for any 
Federal means-tested public benefit (as defined in subsection (c)) for 
a period of five years beginning on the date of the alien's entry into 
the United States with a status within the meaning of the term 
``qualified alien''.
    (b) Exceptions.--The limitation under subsection (a) shall not 
apply to the following aliens:
        (1) Exception for refugees and asylees.--
            (A) An alien who is admitted to the United States as a 
        refugee under section 207 of the Immigration and Nationality 
        Act.
            (B) An alien who is granted asylum under section 208 of 
        such Act.
            (C) An alien whose deportation is being withheld under 
        section 243(h) of such Act.
        (2) Veteran and active duty exception.--An alien who is 
    lawfully residing in any State and is--
            (A) a veteran (as defined in section 101 of title 38, 
        United States Code) with a discharge characterized as an 
        honorable discharge and not on account of alienage,
            (B) on active duty (other than active duty for training) in 
        the Armed Forces of the United States, or
            (C) the spouse or unmarried dependent child of an 
        individual described in subparagraph (A) or (B).
    (c) Federal means-tested Public Benefit Defined.--
        (1) Except as provided in paragraph (2), for purposes of this 
    title, the term ``Federal means-tested public benefit'' means a 
    public benefit (including cash, medical, housing, and food 
    assistance and social services) of the Federal Government in which 
    the eligibility of an individual, household, or family eligibility 
    unit for benefits, or the amount of such benefits, or both are 
    determined on the basis of income, resources, or financial need of 
    the individual, household, or unit.
        (2) Such term does not include the following:
            (A) Emergency medical services under title XIX or XXI of 
        the Social Security Act.
            (B) Short-term, non-cash, in-kind emergency disaster 
        relief.
            (C) Assistance or benefits under the National School Lunch 
        Act.
            (D) Assistance or benefits under the Child Nutrition Act of 
        1966.
            (E)(i) Public health assistance for immunizations.
                (ii) Public health assistance for testing and treatment 
            of a serious communicable disease if the Secretary of 
            Health and Human Services determines that it is necessary 
            to prevent the spread of such disease.
            (F) Payments for foster care and adoption assistance under 
        part B of title IV of the Social Security Act for a child who 
        would, in the absence of subsection (a), be eligible to have 
        such payments made on the child's behalf under such part, but 
        only if the foster or adoptive parent or parents of such child 
        are not described under subsection (a).
            (G) Programs, services, or assistance (such as soup 
        kitchens, crisis counseling and intervention, and short-term 
        shelter) specified by the Attorney General, in the Attorney 
        General's sole and unreviewable discretion after consultation 
        with appropriate Federal agencies and departments, which (i) 
        deliver in-kind services at the community level, including 
        through public or private nonprofit agencies; (ii) do not 
        condition the provision of assistance, the amount of assistance 
        provided, or the cost of assistance provided on the individual 
        recipient's income or resources; and (iii) are necessary for 
        the protection of life or safety.
            (H) Programs of student assistance under titles IV, V, IX, 
        and X of the Higher Education Act of 1965.
            (I) Means-tested programs under the Elementary and 
        Secondary Education Act of 1965.

SEC. 404. NOTIFICATION AND INFORMATION REPORTING.

    (a) Notification.--Each Federal agency that administers a program 
to which section 401, 402, or 403 applies shall, directly or through 
the States, post information and provide general notification to the 
public and to program recipients of the changes regarding eligibility 
for any such program pursuant to this title.
    (b) Information Reporting Under Title IV of the Social Security 
Act.--Part A of title IV of the Social Security Act is amended by 
inserting the following new section after section 411:

``SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFORMATION.

    ``Each State to which a grant is made under section 403 of title IV 
of the Social Security Act (as amended by section 103 of the Personal 
Responsibility and Work Opportunity Act of 1995) shall, at least 4 
times annually and upon request of the Immigration and Naturalization 
Service, furnish the Immigration and Naturalization Service with the 
name and address of, and other identifying information on, any 
individual who the State knows is unlawfully in the United States.''.
    (c) SSI.--Section 1631(e) of such Act (42 U.S.C. 1383(e)) is 
amended--
        (1) by redesignating paragraphs (6) and (7) inserted by 
    sections 206(d)(2) and 206(f)(1) of the Social Security 
    Independence and Programs Improvement Act of 1994 (Public Law 103-
    296; 108 Stat. 1514, 1515) as paragraphs (7) and (8), respectively; 
    and
        (2) by adding at the end the following new paragraph:
        ``(9) Notwithstanding any other provision of law, the 
    Commissioner shall, at least 4 times annually and upon request of 
    the Immigration and Naturalization Service (hereafter in this 
    paragraph referred to as the `Service'), furnish the Service with 
    the name and address of, and other identifying information on, any 
    individual who the Commissioner knows is unlawfully in the United 
    States, and shall ensure that each agreement entered into under 
    section 1616(a) with a State provides that the State shall furnish 
    such information at such times with respect to any individual who 
    the State knows is unlawfully in the United States.''.
    (d) Information Reporting for Housing Programs.--Title I of the 
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), as amended 
by this Act, is further amended by adding at the end the following new 
section:
    ``SEC. 28. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND OTHER 
      AGENCIES.
    ``Notwithstanding any other provision of law, the Secretary shall, 
at least 4 times annually and upon request of the Immigration and 
Naturalization Service (hereafter in this section referred to as the 
`Service'), furnish the Service with the name and address of, and other 
identifying information on, any individual who the Secretary knows is 
unlawfully in the United States, and shall ensure that each contract 
for assistance entered into under section 6 or 8 of this Act with a 
public housing agency provides that the public housing agency shall 
furnish such information at such times with respect to any individual 
who the public housing agency knows is unlawfully in the United 
States.''.

  Subtitle B--Eligibility for State and Local Public Benefits Programs

    SEC. 411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR NONIMMIGRANTS 
      INELIGIBLE FOR STATE AND LOCAL PUBLIC BENEFITS.
    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsections (b) and (d), an alien who is not--
        (1) a qualified alien (as defined in section 431),
        (2) a nonimmigrant under the Immigration and Nationality Act, 
    or
        (3) an alien who is paroled into the United States under 
    section 212(d)(5) of such Act for less than one year,
is not eligible for any State or local public benefit (as defined in 
subsection (c)).
    (b) Exceptions.--Subsection (a) shall not apply with respect to the 
following State or local public benefits:
        (1) Emergency medical services under title XIX or XXI of the 
    Social Security Act.
        (2) Short-term, non-cash, in-kind emergency disaster relief.
        (3)(A) Public health assistance for immunizations.
            (B) Public health assistance for testing and treatment of a 
        serious communicable disease if the Secretary of Health and 
        Human Services determines that it is necessary to prevent the 
        spread of such disease.
        (4) Programs, services, or assistance (such as soup kitchens, 
    crisis counseling and intervention, and short-term shelter) 
    specified by the Attorney General, in the Attorney General's sole 
    and unreviewable discretion after consultation with appropriate 
    Federal agencies and departments, which (A) deliver in-kind 
    services at the community level, including through public or 
    private nonprofit agencies; (B) do not condition the provision of 
    assistance, the amount of assistance provided, or the cost of 
    assistance provided on the individual recipient's income or 
    resources; and (C) are necessary for the protection of life or 
    safety.
    (c) State or Local Public Benefit Defined.--
        (1) Except as provided in paragraph (2), for purposes of this 
    subtitle the term ``State or local public benefit'' means--
            (A) any grant, contract, loan, professional license, or 
        commercial license provided by an agency of a State or local 
        government or by appropriated funds of a State or local 
        government; and
            (B) any retirement, welfare, health, disability, public or 
        assisted housing, post-secondary education, food assistance, 
        unemployment benefit, or any other similar benefit for which 
        payments or assistance are provided to an individual, 
        household, or family eligibility unit by an agency of a State 
        or local government or by appropriated funds of a State or 
        local government.
        (2) Such term shall not apply--
            (A) to any contract, professional license, or commercial 
        license for a nonimmigrant whose visa for entry is related to 
        such employment in the United States; or
            (B) with respect to benefits for an alien who as a work 
        authorized nonimmigrant or as an alien lawfully admitted for 
        permanent residence under the Immigration and Nationality Act 
        qualified for such benefits and for whom the United States 
        under reciprocal treaty agreements is required to pay benefits, 
        as determined by the Secretary of State, after consultation 
        with the Attorney General.
    (d) State Authority To Provide for Eligibility of Illegal Aliens 
for State and Local Public Benefits.--A State may provide that an alien 
who is not lawfully present in the United States is eligible for any 
State or local public benefit for which such alien would otherwise be 
ineligible under subsection (a) only through the enactment of a State 
law after the date of the enactment of this Act which affirmatively 
provides for such eligibility.
    SEC. 412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF QUALIFIED ALIENS 
      FOR STATE PUBLIC BENEFITS.
    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), a State is authorized to 
determine the eligibility for any State public benefits (as defined in 
subsection (c) of an alien who is a qualified alien (as defined in 
section 431), a nonimmigrant under the Immigration and Nationality Act, 
or an alien who is paroled into the United States under section 
212(d)(5) of such Act for less than one year.
    (b) Exceptions.--Qualified aliens under this subsection shall be 
eligible for any State public benefits.
        (1) Time-limited exception for refugees and asylees.--
            (A) An alien who is admitted to the United States as a 
        refugee under section 207 of the Immigration and Nationality 
        Act until 5 years after the date of an alien's entry into the 
        United States.
            (B) An alien who is granted asylum under section 208 of 
        such Act until 5 years after the date of such grant of asylum.
            (C) An alien whose deportation is being withheld under 
        section 243(h) of such Act until 5 years after such 
        withholding.
        (2) Certain permanent resident aliens.--An alien who--
            (A) is lawfully admitted to the United States for permanent 
        residence under the Immigration and Nationality Act; and
            (B)(i) has worked 40 qualifying quarters of coverage as 
        defined under title II of the Social Security Act or can be 
        credited with such qualifying quarters as provided under 
        section 436, and (ii) did not receive any Federal means-tested 
        public benefit (as defined in section 403(c)) during any such 
        quarter.
        (3) Veteran and active duty exception.--An alien who is 
    lawfully residing in any State and is--
            (A) a veteran (as defined in section 101 of title 38, 
        United States Code) with a discharge characterized as an 
        honorable discharge and not on account of alienage,
            (B) on active duty (other than active duty for training) in 
        the Armed Forces of the United States, or
            (C) the spouse or unmarried dependent child of an 
        individual described in subparagraph (A) or (B).
        (4) Transition for those currently receiving benefits.--An 
    alien who on the date of the enactment of this Act is lawfully 
    residing in any State and is receiving benefits on the date of the 
    enactment of this Act shall continue to be eligible to receive such 
    benefits until January 1, 1997.
    (c) State Public Benefits Defined.--The term ``State public 
benefits'' means any means-tested public benefit of a State or 
political subdivision of a State under which the State or political 
subdivision specifies the standards for eligibility, and does not 
include any Federal public benefit.

      Subtitle C--Attribution of Income and Affidavits of Support

    SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES TO 
      ALIEN.
    (a) In General.--Notwithstanding any other provision of law, in 
determining the eligibility and the amount of benefits of an alien for 
any Federal means-tested public benefits program (as defined in section 
403(c)), the income and resources of the alien shall be deemed to 
include the following:
        (1) The income and resources of any person who executed an 
    affidavit of support pursuant to section 213A of the Immigration 
    and Nationality Act (as added by section 423) on behalf of such 
    alien.
        (2) The income and resources of the spouse (if any) of the 
    person.
    (b) Application.--Subsection (a) shall apply with respect to an 
alien until such time as the alien--
        (1) achieves United States citizenship through naturalization 
    pursuant to chapter 2 of title III of the Immigration and 
    Nationality Act; or
        (2)(A) has worked 40 qualifying quarters of coverage as defined 
    under title II of the Social Security Act or can be credited with 
    such qualifying quarters as provided under section 436, and (B) did 
    not receive any Federal means-tested public benefit (as defined in 
    section 403(c)) during any such quarter.
    (c) Review of Income and Resources of Alien Upon Reapplication.--
Whenever an alien is required to reapply for benefits under any Federal 
means-tested public benefits program, the applicable agency shall 
review the income and resources attributed to the alien under 
subsection (a).
    (d) Application.--
        (1) If on the date of the enactment of this Act, a Federal 
    means-tested public benefits program attributes a sponsor's income 
    and resources to an alien in determining the alien's eligibility 
    and the amount of benefits for an alien, this section shall apply 
    to any such determination beginning on the day after the date of 
    the enactment of this Act.
        (2) If on the date of the enactment of this Act, a Federal 
    means-tested public benefits program does not attribute a sponsor's 
    income and resources to an alien in determining the alien's 
    eligibility and the amount of benefits for an alien, this section 
    shall apply to any such determination beginning 180 days after the 
    date of the enactment of this Act.
    SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF 
      SPONSOR'S INCOME AND RESOURCES TO THE ALIEN WITH RESPECT TO STATE 
      PROGRAMS.
    (a) Optional Application to State Programs.--Except as provided in 
subsection (b), in determining the eligibility and the amount of 
benefits of an alien for any State public benefits (as defined in 
section 412(c)), the State or political subdivision that offers the 
benefits is authorized to provide that the income and resources of the 
alien shall be deemed to include--
        (1) the income and resources of any individual who executed an 
    affidavit of support pursuant to section 213A of the Immigration 
    and Nationality Act (as added by section 423) on behalf of such 
    alien, and
        (2) the income and resources of the spouse (if any) of the 
    individual.
    (b) Exceptions.--Subsection (a) shall not apply with respect to the 
following State public benefits:
        (1) Emergency medical services.
        (2) Short-term, non-cash, in-kind emergency disaster relief.
        (3) Programs comparable to assistance or benefits under the 
    National School Lunch Act.
        (4) Programs comparable to assistance or benefits under the 
    Child Nutrition Act of 1966.
        (5)(A) Public health assistance for immunizations.
        (B) Public health assistance for testing and treatment of a 
    serious communicable disease if the appropriate chief State health 
    official determines that it is necessary to prevent the spread of 
    such disease.
        (6) Payments for foster care and adoption assistance.
        (7) Programs, services, or assistance (such as soup kitchens, 
    crisis counseling and intervention, and short-term shelter) 
    specified by the Attorney General of a State, after consultation 
    with appropriate agencies and departments, which (A) deliver in-
    kind services at the community level, including through public or 
    private nonprofit agencies; (B) do not condition the provision of 
    assistance, the amount of assistance provided, or the cost of 
    assistance provided on the individual recipient's income or 
    resources; and (C) are necessary for the protection of life or 
    safety.
    SEC. 423. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.
    (a) In General.--Title II of the Immigration and Nationality Act is 
amended by inserting after section 213 the following new section:


            ``requirements for sponsor's affidavit of support

    ``Sec. 213A. (a) Enforceability.--(1) No affidavit of support may 
be accepted by the Attorney General or by any consular officer to 
establish that an alien is not excludable as a public charge under 
section 212(a)(4) unless such affidavit is executed as a contract--
        ``(A) which is legally enforceable against the sponsor by the 
    sponsored alien, the Federal Government, and by any State (or any 
    political subdivision of such State) which provides any means-
    tested public benefits program, but not later than 10 years after 
    the alien last receives any such benefit;
        ``(B) in which the sponsor agrees to financially support the 
    alien, so that the alien will not become a public charge; and
        ``(C) in which the sponsor agrees to submit to the jurisdiction 
    of any Federal or State court for the purpose of actions brought 
    under subsection (e)(2).
    ``(2) A contract under paragraph (1) shall be enforceable with 
respect to benefits provided to the alien until such time as the alien 
achieves United States citizenship through naturalization pursuant to 
chapter 2 of title III.
    ``(b) Forms.--Not later than 90 days after the date of enactment of 
this section, the Attorney General, in consultation with the Secretary 
of State and the Secretary of Health and Human Services, shall 
formulate an affidavit of support consistent with the provisions of 
this section.
    ``(c) Remedies.--Remedies available to enforce an affidavit of 
support under this section include any or all of the remedies described 
in section 3201, 3203, 3204, or 3205 of title 28, United States Code, 
as well as an order for specific performance and payment of legal fees 
and other costs of collection, and include corresponding remedies 
available under State law. A Federal agency may seek to collect amounts 
owed under this section in accordance with the provisions of subchapter 
II of chapter 37 of title 31, United States Code.
    ``(d) Notification of Change of Address.--
        ``(1) In general.--The sponsor shall notify the Attorney 
    General and the State in which the sponsored alien is currently 
    resident within 30 days of any change of address of the sponsor 
    during the period specified in subsection (a)(2).
        ``(2) Penalty.--Any person subject to the requirement of 
    paragraph (1) who fails to satisfy such requirement shall be 
    subject to a civil penalty of--
            ``(A) not less than $250 or more than $2,000, or
            ``(B) if such failure occurs with knowledge that the alien 
        has received any means-tested public benefit, not less than 
        $2,000 or more than $5,000.
    ``(e) Reimbursement of Government Expenses.--(1)(A) Upon 
notification that a sponsored alien has received any benefit under any 
means-tested public benefits program, the appropriate Federal, State, 
or local official shall request reimbursement by the sponsor in the 
amount of such assistance.
    ``(B) The Attorney General, in consultation with the Secretary of 
Health and Human Services, shall prescribe such regulations as may be 
necessary to carry out subparagraph (A).
    ``(2) If within 45 days after requesting reimbursement, the 
appropriate Federal, State, or local agency has not received a response 
from the sponsor indicating a willingness to commence payments, an 
action may be brought against the sponsor pursuant to the affidavit of 
support.
    ``(3) If the sponsor fails to abide by the repayment terms 
established by such agency, the agency may, within 60 days of such 
failure, bring an action against the sponsor pursuant to the affidavit 
of support.
    ``(4) No cause of action may be brought under this subsection later 
than 10 years after the alien last received any benefit under any 
means-tested public benefits program.
    ``(5) If, pursuant to the terms of this subsection, a Federal, 
State, or local agency requests reimbursement from the sponsor in the 
amount of assistance provided, or brings an action against the sponsor 
pursuant to the affidavit of support, the appropriate agency may 
appoint or hire an individual or other person to act on behalf of such 
agency acting under the authority of law for purposes of collecting any 
moneys owed. Nothing in this subsection shall preclude any appropriate 
Federal, State, or local agency from directly requesting reimbursement 
from a sponsor for the amount of assistance provided, or from bringing 
an action against a sponsor pursuant to an affidavit of support.
    ``(f) Definitions.--For the purposes of this section--
        ``(1) Sponsor.--The term `sponsor' means an individual who--
            ``(A) is a citizen or national of the United States or an 
        alien who is lawfully admitted to the United States for 
        permanent residence;
            ``(B) is 18 years of age or over;
            ``(C) is domiciled in any of the 50 States or the District 
        of Columbia; and
            ``(D) is the person petitioning for the admission of the 
        alien under section 204.
        ``(2) Means-tested public benefits program.--The term `means-
    tested public benefits program' means a program of public benefits 
    (including cash, medical, housing, and food assistance and social 
    services) of the Federal Government or of a State or political 
    subdivision of a State in which the eligibility of an individual, 
    household, or family eligibility unit for benefits under the 
    program, or the amount of such benefits, or both are determined on 
    the basis of income, resources, or financial need of the 
    individual, household, or unit.''.
    (b) Clerical Amendment.--The table of contents of such Act is 
amended by inserting after the item relating to section 213 the 
following:
  ``Sec. 213A. Requirements for sponsor's affidavit of support.''.

    (c) Effective Date.--Subsection (a) of section 213A of the 
Immigration and Nationality Act, as inserted by subsection (a) of this 
section, shall apply to affidavits of support executed on or after 
adate specified by the Attorney General, which date shall be not 
earlier than 60 days (and not later than 90 days) after the date the 
Attorney General formulates the form for such affidavits under 
subsection (b) of such section.
    (d) Benefits Not Subject to Reimbursement.--Requirements for 
reimbursement by a sponsor for benefits provided to a sponsored alien 
pursuant to an affidavit of support under section 213A of the 
Immigration and Nationality Act shall not apply with respect to the 
following:
        (1) Emergency medical services under title XIX or XXI of the 
    Social Security Act.
        (2) Short-term, non-cash, in-kind emergency disaster relief.
        (3) Assistance or benefits under the National School Lunch Act.
        (4) Assistance or benefits under the Child Nutrition Act of 
    1966.
        (5)(A) Public health assistance for immunizations.
        (B) Public health assistance for testing and treatment of a 
    serious communicable disease if the Secretary of Health and Human 
    Services determines that it is necessary to prevent the spread of 
    such disease.
        (6) Payments for foster care and adoption assistance under part 
    B of title IV of the Social Security Act for a child, but only if 
    the foster or adoptive parent or parents of such child are not 
    otherwise ineligible pursuant to section 403 of this Act.
        (7) Programs, services, or assistance (such as soup kitchens, 
    crisis counseling and intervention, and short-term shelter) 
    specified by the Attorney General, in the Attorney General's sole 
    and unreviewable discretion after consultation with appropriate 
    Federal agencies and departments, which (A) deliver in-kind 
    services at the community level, including through public or 
    private nonprofit agencies; (B) do not condition the provision of 
    assistance, the amount of assistance provided, or the cost of 
    assistance provided on the individual recipient's income or 
    resources; and (C) are necessary for the protection of life or 
    safety.
        (8) Programs of student assistance under titles IV, V, IX, and 
    X of the Higher Education Act of 1965.

SEC. 424. COSIGNATURE OF ALIEN STUDENT LOANS.

    Section 484(b) of the Higher Education Act of 1965 (20 U.S.C. 
1091(b)) is amended by adding at the end the following new paragraph:
        ``(6) Notwithstanding sections 427(a)(2)(A), 428B(a), 
    428C(b)(4)(A), and 464(c)(1)(E), or any other provision of this 
    title, a student who is an alien lawfully admitted for permanent 
    residence under the Immigration and Nationality Act shall not be 
    eligible for a loan under this title unless the loan is endorsed 
    and cosigned by the alien's sponsor under section 213A of the 
    Immigration and Nationality Act or by another creditworthy 
    individual who is a United States citizen.''.

                     Subtitle D--General Provisions

SEC. 431. DEFINITIONS.

    (a) In General.--Except as otherwise provided in this title, the 
terms used in this title have the same meaning given such terms in 
section 101(a) of the Immigration and Nationality Act.
    (b) Qualified Alien.--For purposes of this title, the term 
``qualified alien'' means an alien who, at the time the alien applies 
for, receives, or attempts to receive a Federal public benefit, is--
        (1) an alien who is lawfully admitted for permanent residence 
    under the Immigration and Nationality Act,
        (2) an alien who is granted asylum under section 208 of such 
    Act,
        (3) a refugee who is admitted to the United States under 
    section 207 of such Act,
        (4) an alien who is paroled into the United States under 
    section 212(d)(5) of such Act for a period of at least 1 year,
        (5) an alien whose deportation is being withheld under section 
    243(h) of such Act, or
        (6) an alien who is granted conditional entry pursuant to 
    section 203(a)(7) of such Act as in effect prior to April 1, 1980.

SEC. 432. REAPPLICATION FOR SSI BENEFITS.

    (a) Application and Notice.--Notwithstanding any other provision of 
law, in the case of an individual who is receiving supplemental 
security income benefits under title XVI of the Social Security Act as 
of the date of the enactment of this Act and whose eligibility for such 
benefits would terminate by reason of the application of section 
402(a)(D), the Commissioner of Social Security shall so notify the 
individual not later than 90 days after the date of the enactment of 
this Act.
    (b) Reapplication.--
        (1) In general.--Not later than 120 days after the date of the 
    enactment of this Act, each individual notified pursuant to 
    subsection (a) who desires to reapply for benefits under title XVI 
    of the Social Security Act shall reapply to the Commissioner of 
    Social Security.
        (2) Determination of eligibility.--Not later than 1 year after 
    the date of the enactment of this Act, the Commissioner of Social 
    Security shall determine the eligibility of each individual who 
    reapplies for benefits under paragraph (1) pursuant to the 
    procedures of such title XVI.
    SEC. 433. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC BENEFITS.
    (a) In General.--Not later than 18 months after the date of the 
enactment of this Act, the Attorney General of the United States, after 
consultation with the Secretary of Health and Human Services, shall 
promulgate regulations requiring verification that a person applying 
for a Federal public benefit (as defined in section 401(c)), to which 
the limitation under section 401 applies, is a qualified alien and is 
eligible to receive such benefit. Such regulations shall, to the extent 
feasible, require that information requested and exchanged be similar 
in form and manner to information requested and exchanged under section 
1137 of the Social Security Act.
    (b) State Compliance.--Not later than 24 months after the date the 
regulations described in subsection (a) are adopted, a State that 
administers a program that provides a Federal public benefit shall have 
in effect a verification system that complies with the regulations.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purpose of 
this section.

SEC. 434. STATUTORY CONSTRUCTION.

    (a) Limitation.--
        (1) Nothing in this title may be construed as an entitlement or 
    a determination of an individual's eligibility or fulfillment of 
    the requisite requirements for any Federal, State, or local 
    governmental program, assistance, or benefits. For purposes of this 
    title, eligibility relates only to the general issue of eligibility 
    or ineligibility on the basis of alienage.
        (2) Nothing in this title may be construed as addressing alien 
    eligibility for a basic public education as determined by the 
    Supreme Court of the United States under Plyler v. Doe (457 U.S. 
    202)(1982).
    (b) Not Applicable to Foreign Assistance.--This title does not 
apply to any Federal, State, or local governmental program, assistance, 
or benefits provided to an alien under any program of foreign 
assistance as determined by the Secretary of State in consultation with 
the Attorney General.
    (c) Severability.--If any provision of this title or the 
application of such provision to any person or circumstance is held to 
be unconstitutional, the remainder of this title and the application of 
the provisions of such to any person or circumstance shall not be 
affected thereby.
    SEC. 435. COMMUNICATION BETWEEN STATE AND LOCAL GOVERNMENT AGENCIES 
      AND THE IMMIGRATION AND NATURALIZATION SERVICE.
    Notwithstanding any other provision of Federal, State, or local 
law, no State or local government entity may be prohibited, or in any 
way restricted, from sending to or receiving from the Immigration and 
Naturalization Service information regarding the immigration status, 
lawful or unlawful, of an alien in the United States.

SEC. 436. QUALIFYING QUARTERS.

    For purposes of this title, in determining the number of qualifying 
quarters of coverage under title II of the Social Security Act an alien 
shall be credited with--
        (1) all of the qualifying quarters of coverage as defined under 
    title II of the Social Security Act worked by a parent of such 
    alien while the alien was under age 18 if the parent did not 
    receive any Federal means-tested public benefit (as defined in 
    section 403(c)) during any such quarter, and
        (2) all of the qualifying quarters worked by a spouse of such 
    alien during their marriage if the spouse did not receive any 
    Federal means-tested public benefit (as defined in section403(c)) 
during any such quarter and the alien remains married to such spouse or 
such spouse is deceased.

                   Subtitle E--Conforming Amendments

    SEC. 441. CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING.
    (a) Limitations on Assistance.--Section 214 of the Housing and 
Community Development Act of 1980 (42 U.S.C. 1436a) is amended--
        (1) by striking ``Secretary of Housing and Urban Development'' 
    each place it appears and inserting ``applicable Secretary'';
        (2) in subsection (b), by inserting after ``National Housing 
    Act,'' the following: ``the direct loan program under section 502 
    of the Housing Act of 1949 or section 502(c)(5)(D), 504, 
    521(a)(2)(A), or 542 of such Act, subtitle A of title III of the 
    Cranston-Gonzalez National Affordable Housing Act,'';
        (3) in paragraphs (2) through (6) of subsection (d), by 
    striking ``Secretary'' each place it appears and inserting 
    ``applicable Secretary'';
        (4) in subsection (d), in the matter following paragraph (6), 
    by striking ``the term `Secretary''' and inserting ``the term 
    `applicable Secretary'''; and
        (5) by adding at the end the following new subsection:
    ``(h) For purposes of this section, the term `applicable Secretary' 
means--
        ``(1) the Secretary of Housing and Urban Development, with 
    respect to financial assistance administered by such Secretary and 
    financial assistance under subtitle A of title III of the Cranston-
    Gonzalez National Affordable Housing Act; and
        ``(2) the Secretary of Agriculture, with respect to financial 
    assistance administered by such Secretary.''.
    (b) Conforming Amendments.--Section 501(h) of the Housing Act of 
1949 (42 U.S.C. 1471(h)) is amended--
        (1) by striking ``(1)'';
        (2) by striking ``by the Secretary of Housing and Urban 
    Development''; and
        (3) by striking paragraph (2).

          TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

SEC. 501. REDUCTIONS.

    (a) Definitions.--As used in this section:
        (1) Appropriate effective date.--The term ``appropriate 
    effective date'', used with respect to a Department referred to in 
    this section, means the date on which all provisions of this Act 
    (other than title II) that the Department is required to carry out, 
    and amendments and repeals made by such Act to provisions of 
    Federal law that the Department is required to carry out, are 
    effective.
        (2) Covered activity.--The term ``covered activity'', used with 
    respect to a Department referred to in this section, means an 
    activity that the Department is required to carry out under--
            (A) a provision of this Act (other than title II); or
            (B) a provision of Federal law that is amended or repealed 
        by this Act (other than title II).
    (b) Reports.--
        (1) Contents.--Not later than December 31, 1995, each Secretary 
    referred to in paragraph (2) shall prepare and submit to the 
    relevant committees described in paragraph (3) a report 
    containing--
            (A) the determinations described in subsection (c);
            (B) appropriate documentation in support of such 
        determinations; and
            (C) a description of the methodology used in making such 
        determinations.
        (2) Secretary.--The Secretaries referred to in this paragraph 
    are--
            (A) the Secretary of Agriculture;
            (B) the Secretary of Education;
            (C) the Secretary of Labor;
            (D) the Secretary of Housing and Urban Development; and
            (E) the Secretary of Health and Human Services.
        (3) Relevant committees.--The relevant Committees described in 
    this paragraph are the following:
            (A) With respect to each Secretary described in paragraph 
        (2), the Committee on Government Reform and Oversight of the 
        House of Representatives and the Committee on Governmental 
        Affairs of the Senate.
            (B) With respect to the Secretary of Agriculture, the 
        Committee on Agriculture and the Committee on Economic and 
        Educational Opportunities of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate.
            (C) With respect to the Secretary of Education, the 
        Committee on Economic and Educational Opportunities of the 
        House of Representatives and the Committee on Labor and Human 
        Resources of the Senate.
            (D) With respect to the Secretary of Labor, the Committee 
        on Economic and Educational Opportunities of the House of 
        Representatives and the Committee on Labor and Human Resources 
        of the Senate.
            (E) With respect to the Secretary of Housing and Urban 
        Development, the Committee on Banking and Financial Services of 
        the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate.
            (F) With respect to the Secretary of Health and Human 
        Services, the Committee on Economic and Educational 
        Opportunities of the House of Representatives, the Committee on 
        Labor and Human Resources of the Senate,the Committee on Ways 
and Means of the House of Representatives, and the Committee on Finance 
of the Senate.
        (4) Report on changes.--Not later than December 31, 1996, and 
    each December 31 thereafter, each Secretary referred to in 
    paragraph (2) shall prepare and submit to the relevant Committees 
    described in paragraph (3), a report concerning any changes with 
    respect to the determinations made under subsection (c) for the 
    year in which the report is being submitted.
    (c) Determinations.--Not later than December 31, 1995, each 
Secretary referred to in subsection (b)(2) shall determine--
        (1) the number of full-time equivalent positions required by 
    the Department headed by such Secretary to carry out the covered 
    activities of the Department, as of the day before the date of 
    enactment of this Act;
        (2) the number of such positions required by the Department to 
    carry out the activities, as of the appropriate effective date for 
    the Department; and
        (3) the difference obtained by subtracting the number referred 
    to in paragraph (2) from the number referred to in paragraph (1).
    (d) Actions.--Each Secretary referred to in subsection (b)(2) shall 
take such actions as may be necessary, including reduction in force 
actions, consistent with sections 3502 and 3595 of title 5, United 
States Code, to reduce the number of positions of personnel of the 
Department--
        (1) not later than 30 days after the appropriate effective date 
    for the Department involved, by at least 50 percent of the 
    difference referred to in subsection (c)(3); and
        (2) not later than 13 months after such appropriate effective 
    date, by at least the remainder of such difference (after the 
    application of paragraph (1)).
    (e) Consistency.--
        (1) Education.--The Secretary of Education shall carry out this 
    section in a manner that enables the Secretary to meet the 
    requirements of this section.
        (2) Labor.--The Secretary of Labor shall carry out this section 
    in a manner that enables the Secretary to meet the requirements of 
    this section.
        (3) Health and human services.--The Secretary of Health and 
    Human Services shall carry out this section in a manner that 
    enables the Secretary to meet the requirements of this section and 
    sections 502 and 503.
    (f) Calculation.--In determining, under subsection (c), the number 
of full-time equivalent positions required by a Department to carry out 
a covered activity, a Secretary referred to in subsection (b)(2) shall 
include the number of such positions occupied by personnel carrying out 
program functions or other functions (including budgetary, legislative, 
administrative, planning, evaluation, and legal functions) related to 
the activity.
    (g) General Accounting Office Report.--Not later than July 1, 1996, 
the Comptroller General of the United States shall prepare and submit 
to the committees described in subsection (b)(3), a report concerning 
the determinations made by each Secretary under subsection (c). Such 
report shall contain an analysis of the determinations made by each 
Secretary under subsection (c) and a determination as to whether 
further reductions in full-time equivalent positions are appropriate.

SEC. 502. REDUCTIONS IN FEDERAL BUREAUCRACY.

    (a) In General.--The Secretary of Health and Human Services shall 
reduce the Federal workforce within the Department of Health and Human 
Services by an amount equal to the sum of--
        (1) 75 percent of the full-time equivalent positions at such 
    Department that relate to any direct spending program, or any 
    program funded through discretionary spending, that has been 
    converted into a block grant program under this Act and the 
    amendments made by this Act; and
        (2) an amount equal to 75 percent of that portion of the total 
    full-time equivalent departmental management positions at such 
    Department that bears the same relationship to the amount 
    appropriated for the programs referred to in paragraph (1) as such 
    amount relates to the total amount appropriated for use by such 
    Department.
    (b) Reductions in the Department of Health and Human Services.--
Notwithstanding any other provision of this Act, the Secretary of 
Health and Human Services shall take such actions as may be necessary, 
including reductions in force actions, consistent with sections 3502 
and 3595 of title 5, United States Code, to reduce the full-time 
equivalent positions within the Department of Health and Human 
Services--
        (1) by 245 full-time equivalent positions related to the 
    program converted into a block grant under the amendment made by 
    section 103; and
        (2) by 60 full-time equivalent managerial positions in the 
    Department.

SEC. 503. REDUCING PERSONNEL IN WASHINGTON, D.C. AREA.

    In making reductions in full-time equivalent positions, the 
Secretary of Health and Human Services is encouraged to reduce 
personnel in the Washington, D.C., area office (agency headquarters) 
before reducing field personnel.

                   TITLE VI--REFORM OF PUBLIC HOUSING

    SEC. 601. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC 
      ASSISTANCE PROGRAMS.
    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended by adding at the end the following new section:
    ``SEC. 27. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC 
      ASSISTANCE PROGRAMS.
    ``(a) In General.--If the benefits of a family are reduced under a 
Federal, State, or local law relating to welfare or a public assistance 
program for the failure of any member of the family to perform an 
action required under the law or program, the family may not, for the 
duration of the reduction, receive any increased assistance under this 
Act as the result of a decrease in the income of the family to the 
extent that the decrease in income is the result of the benefits 
reduction.
    ``(b) Exception.--Subsection (a) shall not apply in any case in 
which the benefits of a family are reduced because the welfare or 
public assistance program to which the Federal, State, or local law 
relates limits the period during which benefits may be provided under 
the program.''.
    SEC. 602. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC ASSISTANCE 
      PROGRAMS.
    (a) In General.--If an individual's benefits under a Federal, 
State, or local law relating to a means-tested welfare or a public 
assistance program are reduced because of an act of fraud by the 
individual under the law or program, the individual may not, for the 
duration of the reduction, receive an increased benefit under any other 
means-tested welfare or public assistance program for which Federal 
funds are appropriated as a result of a decrease in the income of the 
individual (determined under the applicable program) attributable to 
such reduction.
    (b) Welfare or Public Assistance Programs for Which Federal Funds 
Are Appropriated.--For purposes of subsection (a), the term ``means-
tested welfare or public assistance program for which Federal funds are 
appropriated'' includes the food stamp program under the Food Stamp Act 
of 1977 (7 U.S.C. 2011 et seq.), any program of public or assisted 
housing under title I of the United States Housing Act of 1937 (42 
U.S.C. 1437 et seq.), and State programs funded under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et seq.).

SEC. 603. EFFECTIVE DATE.

    This title and the amendment made by this title shall become 
effective on the date of enactment of this Act.

  TITLE VII--CHILD PROTECTION BLOCK GRANT PROGRAM AND FOSTER CARE AND 
                          ADOPTION ASSISTANCE
 Subtitle A--Block Grants to States for the Protection of Children and 
       Matching Payments for Foster Care and Adoption Assistance

SEC. 701. ESTABLISHMENT OF PROGRAM.

    Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is 
amended by striking part B and inserting the following:

  ``PART B--BLOCK GRANTS TO STATES FOR THE PROTECTION OF CHILDREN AND 
       MATCHING PAYMENTS FOR FOSTER CARE AND ADOPTION ASSISTANCE

``SEC. 421. PURPOSE.

    ``The purpose of this part is to enable eligible States to carry 
out a child protection program to--
        ``(1) identify and assist families at risk of abusing or 
    neglecting their children;
        ``(2) operate a system for receiving reports of abuse or 
    neglect of children;
        ``(3) improve the intake, assessment, screening, and 
    investigation of reports of abuse and neglect;
        ``(4) enhance the general child protective system by improving 
    risk and safety assessment tools and protocols;
        ``(5) improve legal preparation and representation, including 
    procedures for appealing and responding to appeals of substantiated 
    reports of abuse and neglect;
        ``(6) provide support, treatment, and family preservation 
    services to families which are, or are at risk of, abusing or 
    neglecting their children;
        ``(7) support children who must be removed from or who cannot 
    live with their families;
        ``(8) make timely decisions about permanent living arrangements 
    for children who must be removed from or who cannot live with their 
    families;
        ``(9) provide for continuing evaluation and improvement of 
    child protection laws, regulations, and services;
        ``(10) develop and facilitate training protocols for 
    individuals mandated to report child abuse or neglect; and
        ``(11) develop and enhance the capacity of community-based 
    programs to integrate shared leadership strategies between parents 
    and professionals to prevent and treat child abuse and neglect at 
    the neighborhood level.

``SEC. 422. ELIGIBLE STATES.

    ``(a) In General.--As used in this part, the term `eligible State' 
means a State that has submitted to the Secretary, not later than 
October 1, 1996, and every 3 years thereafter, a plan which has been 
signed by the chief executive officer of the State and that includes 
the following:
        ``(1) Outline of child protection program.--A written document 
    that outlines the activities the State intends to conduct to 
    achieve the purpose of this part, including the procedures to be 
    used for--
            ``(A) receiving and assessing reports of child abuse or 
        neglect;
            ``(B) investigating such reports;
            ``(C) with respect to families in which abuse or neglect 
        has been confirmed, providing services or referral for services 
        for families and children where the State makes a determination 
        that the child may safely remain with the family;
            ``(D) protecting children by removing them from dangerous 
        settings and ensuring their placement in a safe environment;
            ``(E) providing training for individuals mandated to report 
        suspected cases of child abuse or neglect;
            ``(F) protecting children in foster care;
            ``(G) promoting timely adoptions;
            ``(H) protecting the rights of families, using adult 
        relatives as the preferred placement for children separated 
        from their parents where such relatives meet the relevant State 
        child protection standards;
            ``(I) providing services to individuals, families, or 
        communities, either directly or through referral, that are 
        aimed at preventing the occurrence of child abuse and neglect; 
        and
            ``(J) establishing and responding to citizen review panels 
        under section 426.
        ``(2) Certification of state law requiring the reporting of 
    child abuse and neglect.--A certification that the State has in 
    effect laws that require public officials and other professionals 
    to report, in good faith, actual or suspected instances of child 
    abuse or neglect.
        ``(3) Certification of procedures for screening, safety 
    assessment, and prompt investigation.--A certification that the 
    State has in effect procedures for receiving and responding to 
    reports of child abuse or neglect, including the reports described 
    in paragraph (2), and for the immediate screening, safety 
    assessment, and prompt investigation of such reports.
        ``(4) Certification of state procedures for removal and 
    placement of abused or neglected children.--A certification that 
    the State has in effect procedures for the removal from families 
    and placement of abused or neglected children and of any other 
    child in the same household who may also be in danger of abuse or 
    neglect.
        ``(5) Certification of provisions for immunity from 
    prosecution.--A certification that the State has in effect laws 
    requiring immunity from prosecution under State and local laws and 
    regulations for individuals making good faith reports of suspected 
    or known instances of child abuse or neglect.
        ``(6) Certification of provisions and procedures for 
    expungement of certain records.--A certification that the State has 
    in effect laws and procedures requiring the facilitation of the 
    prompt expungement of any records that are accessible to the 
    general public or are used for purposes of employment or other 
    background checks in cases determined to be unsubstantiated or 
    false.
        ``(7) Certification of provisions and procedures relating to 
    appeals.--A certification that not later then 2 years after the 
    date of the enactment of this part, the State shall have laws and 
    procedures in effect affording individuals an opportunity to appeal 
    an official finding of abuse or neglect.
        ``(8) Certification of state procedures for developing and 
    reviewing written plans for permanent placement ofremoved 
children.--A certification that the State has in effect procedures for 
ensuring that a written plan is prepared for children who have been 
removed from their families. Such plan shall specify the goals for 
achieving a permanent placement for the child in a timely fashion, for 
ensuring that the written plan is reviewed every 6 months (until such 
placement is achieved), and for ensuring that information about such 
children is collected regularly and recorded in case records, and 
include a description of such procedures.
        ``(9) Certification of state program to provide independent 
    living services.--A certification that the State has in effect a 
    program to provide independent living services, for assistance in 
    making the transition to self-sufficient adulthood, to individuals 
    in the child protection program of the State who are 16, but who 
    are not 20 (or, at the option of the State, 22), years of age, and 
    who do not have a family to which to be returned.
        ``(10) Certification of state procedures to respond to 
    reporting of medical neglect of disabled infants.--
            ``(A) In general.--A certification that the State has in 
        place for the purpose of responding to the reporting of medical 
        neglect of infants (including instances of withholding of 
        medically indicated treatment from disabled infants with life-
        threatening conditions), procedures or programs, or both 
        (within the State child protective services system), to provide 
        for--
                ``(i) coordination and consultation with individuals 
            designated by and within appropriate health-care 
            facilities;
                ``(ii) prompt notification by individuals designated by 
            and within appropriate health-care facilities of cases of 
            suspected medical neglect (including instances of 
            withholding of medically indicated treatment from disabled 
            infants with life-threatening conditions); and
                ``(iii) authority, under State law, for the State child 
            protective service to pursue any legal remedies, including 
            the authority to initiate legal proceedings in a court of 
            competent jurisdiction, as may be necessary to prevent the 
            withholding of medically indicated treatment from disabled 
            infants with life-threatening conditions.
            ``(B) Withholding of medically indicated treatment.--As 
        used in subparagraph (A), the term `withholding of medically 
        indicated treatment' means the failure to respond to the 
        infant's life-threatening conditions by providing treatment 
        (including appropriate nutrition, hydration, and medication) 
        which, in the treating physician's or physicians' reasonable 
        medical judgment, will be most likely to be effective in 
        ameliorating or correcting all such conditions, except that 
        such term does not include the failure to provide treatment 
        (other than appropriate nutrition, hydration, or medication) to 
        an infant when, in the treating physician's or physicians' 
        reasonable medical judgment--
                ``(i) the infant is chronically and irreversibly 
            comatose;
                ``(ii) the provision of such treatment would--

                    ``(I) merely prolong dying;
                    ``(II) not be effective in ameliorating or 
                correcting all of the infant's life-threatening 
                conditions; or
                    ``(III) otherwise be futile in terms of the 
                survival of the infant; or

                ``(iii) the provision of such treatment would be 
            virtually futile in terms of the survival of the infant and 
            the treatment itself under such circumstances would be 
            inhumane.
        ``(11) Identification of child protection goals.--The 
    quantitative goals of the State child protection program.
        ``(12) Certification of child protection standards.--With 
    respect to fiscal years beginning on or after April 1, 1996, a 
    certification that the State--
            ``(A) has completed an inventory of all children who, 
        before the inventory, had been in foster care under the 
        responsibility of the State for 6 months or more, which 
        determined--
                ``(i) the appropriateness of, and necessity for, the 
            foster care placement;
                ``(ii) whether the child could or should be returned to 
            the parents of the child or should be freed for adoption or 
            other permanent placement; and
                ``(iii) the services necessary to facilitate the return 
            of the child or the placement of the child for adoption or 
            legal guardianship;
            ``(B) is operating, to the satisfaction of the Secretary--
                ``(i) a statewide information system from which can be 
            readily determined the status, demographic characteristics, 
            location, and goals for the placement of every child who is 
            (or, within the immediately preceding 12 months, has been) 
            in foster care;
                ``(ii) a case review system for each child receiving 
            foster care under the supervision of the State;
                ``(iii) a service program designed to help children--

                    ``(I) where appropriate, return to families from 
                which they have been removed; or
                    ``(II) be placed for adoption, with a legal 
                guardian, or if adoption or legal guardianship is 
                determined not to be appropriate for a child, in some 
                other planned, permanent living arrangement; and

                ``(iv) a preplacement preventive services program 
            designed to help children at risk for foster care placement 
            remain with their families; and
            ``(C)(i) has reviewed (or not later than October 1, 1997, 
        will review) State policies and administrative and judicial 
        procedures in effect for children abandoned at or shortlyafter 
birth (including policies and procedures providing for legal 
representation of such children); and
            ``(ii) is implementing (or not later than October 1, 1997, 
        will implement) such policies and procedures as the State 
        determines, on the basis of the review described in clause (i), 
        to be necessary to enable permanent decisions to be made 
        expeditiously with respect to the placement of such children.
        ``(13) Certification of reasonable efforts before placement of 
    children in foster care.--A certification that the State in each 
    case will--
            ``(A) make reasonable efforts prior to the placement of a 
        child in foster care, to prevent or eliminate the need for 
        removal of the child from the child's home, and to make it 
        possible for the child to return home; and
            ``(B) with respect to families in which abuse or neglect 
        has been confirmed, provide services or referral for services 
        for families and children where the State makes a determination 
        that the child may safely remain with the family.
        ``(14) Certification of cooperative efforts.--A certification 
    by the State, where appropriate, that all steps will be taken, 
    including cooperative efforts with the State agencies administering 
    the plans approved under parts A and D, to secure an assignment to 
    the State of any rights to support on behalf of each child 
    receiving foster care maintenance payments under this part.
        ``(15) Certification of confidentiality and requirements for 
    information disclosure.--
            ``(A) In general.--A certification that the State has in 
        effect and operational--
                ``(i) requirements ensuring that reports and records 
            made and maintained pursuant to the purposes of this part 
            shall only be made available to--

                    ``(I) individuals who are the subject of the 
                report;
                    ``(II) Federal, State, or local government entities 
                having a need for such information in order to carry 
                out their responsibilities under law to protect 
                children from abuse and neglect;
                    ``(III) child abuse citizen review panels;
                    ``(IV) child fatality review panels;
                    ``(V) a grand jury or court, upon a finding that 
                information in the record is necessary for the 
                determination of an issue before the court or grand 
                jury; and
                    ``(VI) other entities or classes of individuals 
                statutorily authorized by the State to receive such 
                information pursuant to a legitimate State purpose; and

                ``(ii) provisions that allow for public disclosure of 
            the findings or information about cases of child abuse or 
            neglect that have resulted in a child fatality or near 
            fatality.
            ``(B) Limitation.--Disclosures made pursuant to clause (i) 
        or (ii) shall not include the identifying information 
        concerning the individual initiating a report or complaint 
        alleging suspected instances of child abuse or neglect.
            ``(C) Definition.--For purposes of this paragraph, the term 
        `near fatality' means an act that, as certified by a physician, 
        places the child in serious or critical condition.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a), other than the material described in paragraph (10) of 
such subsection. The Secretary may not require a State to include in 
such a plan any material not described in subsection (a).
``SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION AND PAYMENTS FOR 
FOSTER CARE AND ADOPTION ASSISTANCE.
    ``(a) Funding of Block Grants.--
        ``(1) Entitlement component.--Each eligible State shall be 
    entitled to receive from the Secretary for each fiscal year 
    specified in subsection (c)(1) a grant in an amount equal to the 
    State share of the child protection amount for the fiscal year.
        ``(2) Authorization component.--
            ``(A) In general.--For each eligible State for each fiscal 
        year specified in subsection (c)(1), the Secretary shall 
        supplement the grant under paragraph (1) of this subsection by 
        an amount equal to the State share of the amount (if any) 
        appropriated pursuant to subparagraph (B) of this paragraph for 
        the fiscal year.
            ``(B) Limitation on authorization of appropriations.--For 
        grants under subparagraph (A), there are authorized to be 
        appropriated to the Secretary an amount not to exceed 
        $325,000,000 for each fiscal year specified in subsection 
        (c)(1).
    ``(b) Maintenance Payments.--
        ``(1) In general.--In addition to the grants described in 
    subsection (a), each eligible State shall be entitled to receive 
    from the Secretary for each quarter of each fiscal year specified 
    in subsection (c)(1) an amount equal to the sum of--
            ``(A) an amount equal to the Federal medical assistance 
        percentage (as defined in section 1905(b) of this Act as in 
        effect on the day before the date of enactment of this part) of 
        the total amount expended during such quarter as foster care 
        maintenance payments under the child protection program under 
        this part for children in foster family homes or child-care 
        institutions; plus
            ``(B) an amount equal to the Federal medical assistance 
        percentage (as defined in section 1905(b) of this Act (as so in 
        effect)) of the total amount expended during such quarter as 
        adoption assistance payments under the child protection program 
        under this part pursuant to adoption assistance agreements.
        ``(2) Estimates by the secretary.--
            ``(A) In general.--The Secretary shall, prior to the 
        beginning of each quarter, estimate the amount to which aState 
will be entitled to receive under paragraph (1) for such quarter, such 
estimates to be based on--
                ``(i) a report filed by the State containing its 
            estimate of the total sum to be expended in such quarter in 
            accordance with paragraph (1), and stating the amount 
            appropriated or made available by the State and its 
            political subdivisions for such expenditures in such 
            quarter, and if such amount is less than the State's 
            proportionate share of the total sum of such estimated 
            expenditures, the source or sources from which the 
            difference is expected to be derived;
                ``(ii) records showing the number of children in the 
            State receiving assistance under this part; and
                ``(iii) such other information as the Secretary may 
            find necessary.
            ``(B) Payments.--The Secretary shall pay to the States the 
        amounts so estimated under subparagraph (A), reduced or 
        increased to the extent of any overpayment or underpayment 
        which the Secretary determines was made under this subsection 
        to such State for any prior quarter and with respect to which 
        adjustment has not already been made under this paragraph.
            ``(C) Pro rata share.-- The pro rata share to which the 
        United States is equitably entitled, as determined by the 
        Secretary, of the net amount recovered during any quarter by 
        the State or any political subdivision thereof with respect to 
        foster care and adoption assistance furnished under this part 
        shall be considered an overpayment to be adjusted under this 
        paragraph.
        ``(3) Allowance or disallowance of claim.--
            ``(A) In general.--Within 60 days after receipt of a State 
        claim for expenditures pursuant to paragraph (2)(A), the 
        Secretary shall allow, disallow, or defer such claim.
            ``(B) Notice.--Within 15 days after a decision to defer a 
        State claim, the Secretary shall notify the State of the 
        reasons for the deferral and of the additional information 
        necessary to determine the allowability of the claim.
            ``(C) Decision.--Within 90 days after receiving such 
        necessary information (in readily reviewable form), the 
        Secretary shall--
                ``(i) disallow the claim, if able to complete the 
            review and determine that the claim is not allowable; or
                ``(ii) in any other case, allow the claim, subject to 
            disallowance (as necessary)--

                    ``(I) upon completion of the review, if it is 
                determined that the claim is not allowable; or
                    ``(II) on the basis of findings of an audit or 
                financial management review.

    ``(c) Definitions.--As used in this section:
        ``(1) Child protection amount.--The term `child protection 
    amount' means--
            ``(A) $2,047,000,000 for fiscal year 1997;
            ``(B) $2,200,000,000 for fiscal year 1998;
            ``(C) $2,342,000,000 for fiscal year 1999;
            ``(D) $2,487,000,000 for fiscal year 2000;
            ``(E) $2,592,000,000 for fiscal year 2001; and
            ``(F) $2,766,000,000 for fiscal year 2002;
        ``(2) State share.--
            ``(A) In general.--The term `State share' means the 
        qualified child protection expenses of the State divided by the 
        sum of the qualified child protection expenses of all of the 
        States.
            ``(B) Qualified child protection expenses.--The term 
        `qualified child protection expenses' means, with respect to a 
        State the greater of--
                ``(i) the total amount of--

                    ``(I) one-third of the Federal grant amounts to the 
                State under the provisions of law specified in clauses 
                (i), (ii), and (iii) of subparagraph (C) for fiscal 
                years 1992, 1993, and 1994; and
                    ``(II) one-third of the Federal share of 
                expenditures (without regard to disputed expenditures) 
                with respect to administration, training, and statewide 
                mechanized data collection and information systems 
                under the provision of law specified in subparagraph 
                (C)(iv) as reported by the State on ACF Form IV-E-12 
                for fiscal years 1992, 1993, and 1994; or

                ``(ii) the total amount of--

                    ``(I) the Federal grant amounts to the State under 
                the provisions of law specified in clauses (i), (ii), 
                and (iii) of subparagraph (C) for fiscal year 1994; and
                    ``(II) the Federal share of expenditures (without 
                regard to disputed expenditures) with respect to 
                administration, training, and statewide mechanized data 
                collection and information systems under the provision 
                of law specified in subparagraph (C)(iv) as reported by 
                the State on ACF Form IV-E-12 for fiscal year 1994.

            ``(C) Provisions of law.--The provisions of law specified 
        in this subparagraph are the following (as in effect with 
        respect to each of the fiscal years referred to in subparagraph 
        (B)):
                ``(i) Section 423 of this Act.
                ``(ii) Section 434 of this Act.
                ``(iii) Section 474(a)(4) of this Act.
                ``(iv) Section 474(a)(3) of this Act.
            ``(D) Determination of information.--In determining amounts 
        for fiscal years 1992, 1993, and 1994 under subclause (I) of 
        clauses (i) and (ii) of subparagraph (B), the Secretary shall 
        use information listed as actual amounts in the Justification 
        for Estimates for Appropriation Committees of the 
        Administration for Children and Families for fiscal years 1994, 
        1995, and 1996, respectively. In determining amounts for fiscal 
        years 1992, 1993, and 1994 under subclause (II) of clauses (i) 
        and (ii) of subparagraph(B), the Secretary shall use 
information available as of February 22, 1995.
    ``(d) Use of Grant.--
        ``(1) In general.--A State to which a grant is made under this 
    section may use the grant in any manner that the State deems 
    appropriate to accomplish the purpose of this part.
        ``(2) Timing of expenditures.--A State to which a grant is made 
    under this section for a fiscal year shall expend the total amount 
    of the grant not later than the end of the immediately succeeding 
    fiscal year.
        ``(3) Rule of interpretation.--This part shall not be 
    interpreted to prohibit short- and long-term foster care facilities 
    operated for profit from receiving funds provided under this part.
    ``(e) Timing of Payments.--The Secretary shall pay each eligible 
State the amount of the grant payable to the State under this section 
in quarterly installments.
    ``(f) Penalties.--
        ``(1) For use of grant in violation of this part.--If an audit 
    conducted pursuant to chapter 75 of title 31, United States Code, 
    finds that an amount paid to a State under this section for a 
    fiscal year has been used in violation of this part, then the 
    Secretary shall reduce the amount of the grant that would (in the 
    absence of this paragraph) be payable to the State under this 
    section for the immediately succeeding fiscal year by the amount so 
    used, plus 5 percent of the grant paid under this section to the 
    State for such fiscal year.
        ``(2) For failure to maintain effort.--
            ``(A) In general.--If an audit conducted pursuant to 
        chapter 75 of title 31, United States Code, finds that the 
        amount expended by a State (other than from amounts provided by 
        the Federal Government) during the fiscal years specified in 
        subparagraph (B), to carry out the State program funded under 
        this part is less than the applicable percentage specified in 
        such subparagraph of the total amount expended by the State 
        (other than from amounts provided by the Federal Government) 
        during fiscal year 1994 under parts B and E of this title (as 
        in effect on the day before the date of the enactment of this 
        part), then the Secretary shall reduce the amount of the grant 
        that would (in the absence of this paragraph) be payable to the 
        State under this section for the immediately succeeding fiscal 
        year by the amount of the difference, plus 5 percent of the 
        grant paid under this section to the State for such fiscal 
        year.
            ``(B) Specification of fiscal years and applicable 
        percentages.--The fiscal years and applicable percentages 
        specified in this subparagraph are as follows:
                ``(i) For fiscal years 1997 and 1998, 100 percent.
                ``(ii) For fiscal years 1999 through 2002, 75 percent.
        ``(3) For failure to submit required report.--
            ``(A) In general.--The Secretary shall reduce by 3 percent 
        the amount of the grant that would (in the absence of this 
        paragraph) be payable to a State under this section for a 
        fiscal year if the Secretary determines that the State has not 
        submitted the report required by section 427(b) for the 
        immediately preceding fiscal year, within 6 months after the 
        end of the immediately preceding fiscal year.
            ``(B) Rescission of penalty.--The Secretary shall rescind a 
        penalty imposed on a State under subparagraph (A) with respect 
        to a report for a fiscal year if the State submits the report 
        before the end of the immediately succeeding fiscal year.
        ``(4) For failure to comply with sampling methods 
    requirements.--The Secretary may reduce by not more than 1 percent 
    the amount of the grant that would (in the absence of this 
    paragraph) be payable to a State under this section for a 
    succeeding fiscal year if the Secretary determines that the State 
    has not complied with the Secretary's sampling methods requirements 
    under section 427(c)(2) during the prior fiscal year.
        ``(5) State funds to replace reductions in grant.--A State 
    which has a penalty imposed against it under this subsection for a 
    fiscal year shall expend additional State funds in an amount equal 
    to the amount of the penalty for the purpose of carrying out the 
    State program under this part during the immediately succeeding 
    fiscal year.
        ``(6) Reasonable cause exception.--Except in the case of the 
    penalty described in paragraph (2), the Secretary may not impose a 
    penalty on a State under this subsection with respect to a 
    requirement if the Secretary determines that the State has 
    reasonable cause for failing to comply with the requirement.
        ``(7) Corrective compliance plan.--
            ``(A) In general.--
                ``(i) Notification of violation.--Before imposing a 
            penalty against a State under this subsection with respect 
            to a violation of this part, the Secretary shall notify the 
            State of the violation and allow the State the opportunity 
            to enter into a corrective compliance plan in accordance 
            with this paragraph which outlines how the State will 
            correct the violation and how the State will insure 
            continuing compliance with this part.
                ``(ii) 60-day period to propose a corrective compliance 
            plan.--During the 60-day period that begins on the date the 
            State receives a notice provided under clause (i) with 
            respect to a violation, the State may submit to the Federal 
            Government a corrective compliance plan to correct the 
            violation.
                ``(iii) Consultation about modifications.--During the 
            60-day period that begins with the date the Secretary 
            receives a corrective compliance plan submitted by a State 
            in accordance with clause (ii), the Secretary may consult 
            with the State on modifications to the plan.
                ``(iv) Acceptance of plan.-- A corrective compliance 
            plan submitted by a State in accordance withclause (ii) is 
deemed to be accepted by the Secretary if the Secretary does not accept 
or reject the plan during the 60-day period that begins on the date the 
plan is submitted.
            ``(B) Effect of correcting violation.--The Secretary may 
        not impose any penalty under this subsection with respect to 
        any violation covered by a State corrective compliance plan 
        accepted by the Secretary if the State corrects the violation 
        pursuant to the plan.
            ``(C) Effect of failing to correct violation.--The 
        Secretary shall assess some or all of a penalty imposed on a 
        State under this subsection with respect to a violation if the 
        State does not, in a timely manner, correct the violation 
        pursuant to a State corrective compliance plan accepted by the 
        Secretary.
        ``(8) Limitation on amount of penalty.--
            ``(A) In general.--In imposing the penalties described in 
        this subsection, the Secretary shall not reduce any quarterly 
        payment to a State by more than 25 percent.
            ``(B) Carryforward of unrecovered penalties.--To the extent 
        that subparagraph (A) prevents the Secretary from recovering 
        during a fiscal year the full amount of all penalties imposed 
        on a State under this subsection for a prior fiscal year, the 
        Secretary shall apply any remaining amount of such penalties to 
        the grant payable to the State under section 423(a) for the 
        immediately succeeding fiscal year.
    ``(g) Treatment of Territories.--
        ``(1) In general.--A territory, as defined in section 
    1108(b)(1), shall carry out a child protection program in 
    accordance with the provisions of this part.
        ``(2) Payments.--Subject to the mandatory ceiling amounts 
    specified in section 1108, each territory, as so defined, shall be 
    entitled to receive from the Secretary for any fiscal year an 
    amount equal to the total obligations to the territory under 
    section 434 (as in effect on the day before the date of the 
    enactment of this part) for fiscal year 1995.
    ``(h) Limitation on Federal Authority.--Except as expressly 
provided in this Act, the Secretary may not regulate the conduct of 
States under this part or enforce any provision of this part.
``SEC. 424. REQUIREMENTS FOR FOSTER CARE MAINTENANCE PAYMENTS.
    ``(a) In general.--Each State operating a program under this part 
shall make foster care maintenance payments under section 423(b) with 
respect to a child who would meet the requirements of section 406(a) or 
of section 407 (as in effect on the day before the date of the 
enactment of this part) but for the removal of the child from the home 
of a relative (specified in section 406(a)(as so in effect)), if--
        ``(1) the removal from the home occurred pursuant to a 
    voluntary placement agreement entered into by the child's parent or 
    legal guardian, or was the result of a judicial determination to 
    the effect that continuation therein would be contrary to the 
    welfare of such child and that reasonable efforts of the type 
    described in section 422(a)(13) have been made;
        ``(2) such child's placement and care are the responsibility 
    of--
            ``(A) the State; or
            ``(B) any other public agency with whom the State has made 
        an agreement for the administration of the State program under 
        this part which is still in effect;
        ``(3) such child has been placed in a foster family home or 
    child-care institution as a result of the voluntary placement 
    agreement or judicial determination referred to in paragraph (1); 
    and
        ``(4) such child--
            ``(A) would have been eligible to receive aid under the 
        eligibility standards under the State plan approved under 
        section 402 (as in effect on the day before the date of the 
        enactment of this part and adjusted for inflation, in 
        accordance with regulations issued by the Secretary) in or for 
        the month in which such agreement was entered into or court 
        proceedings leading to the removal of such child from the home 
        were initiated; or
            ``(B) would have received such aid in or for such month if 
        application had been made therefore, or the child had been 
        living with a relative specified in section 406(a) (as so in 
        effect) within 6 months prior to the month in which such 
        agreement was entered into or such proceedings were initiated, 
        and would have received such aid in or for such month if in 
        such month such child had been living with such a relative and 
        application therefore had been made.
    ``(b) Limitation on Foster Care Payments.--Foster care maintenance 
payments may be made under this part only on behalf of a child 
described in subsection (a) of this section who is--
        ``(1) in the foster family home of an individual, whether the 
    payments therefore are made to such individual or to a public or 
    private child-placement or child-care agency; or
        ``(2) in a child-care institution, whether the payments 
    therefore are made to such institution or to a public or private 
    child-placement or child-care agency, which payments shall be 
    limited so as to include in such payments only those items which 
    are included in the term `foster care maintenance payments' (as 
    defined in section 429(6)).
    ``(c) Voluntary Placements.--
        ``(1) Satisfaction of child protection standards.--
    Notwithstanding any other provision of this section, Federal 
    payments may be made under this part with respect to amounts 
    expended by any State as foster care maintenance payments under 
    this part, in the case of children removed from their homes 
    pursuant to voluntary placement agreements as described in 
    subsection (a), only if (at the time such amounts were expended) 
    the State has fulfilled all of the requirements of section 
    422(a)(12).
        ``(2) Removal in excess of 180 days.--No Federal payment may be 
    made under this part with respect to amounts expended by any State 
    as foster care maintenance payments, inthe case of any child who 
was removed from such child's home pursuant to a voluntary placement 
agreement as described in subsection (a) and has remained in voluntary 
placement for a period in excess of 180 days, unless there has been a 
judicial determination by a court of competent jurisdiction (within the 
first 180 days of such placement) to the effect that such placement is 
in the best interests of the child.
        ``(3) Deemed revocation of agreements.--In any case where--
            ``(A) the placement of a minor child in foster care 
        occurred pursuant to a voluntary placement agreement entered 
        into by the parents or guardians of such child as provided in 
        subsection (a); and
            ``(B) such parents or guardians request (in such manner and 
        form as the Secretary may prescribe) that the child be returned 
        to their home or to the home of a relative,
    the voluntary placement agreement shall be deemed to be revoked 
    unless the State opposes such request and obtains a judicial 
    determination, by a court of competent jurisdiction, that the 
    return of the child to such home would be contrary to the child's 
    best interests.

``SEC. 425. REQUIREMENTS FOR ADOPTION ASSISTANCE PAYMENTS.

    ``(a) In General.--A State operating a program under this part 
shall enter into adoption assistance agreements with the adoptive 
parents of children with special needs.
    ``(b) Payments Under Agreements.--Under any adoption assistance 
agreement entered into by a State with parents who adopt a child with 
special needs who meets the requirements of subsection (c), the State 
may make adoption assistance payments to such parents or through 
another public or nonprofit private agency, in amounts determined under 
subsection (d).
    ``(c) Children With Special Needs.--For purposes of subsection (b), 
a child meets the requirements of this subsection if such child--
        ``(1)(A) at the time adoption proceedings were initiated, met 
    the requirements of section 406(a) or section 407 (as in effect on 
    the day before the date of the enactment of this part) or would 
    have met such requirements except for such child's removal from the 
    home of a relative (specified in section 406(a) (as so in effect)), 
    either pursuant to a voluntary placement agreement with respect to 
    which Federal payments are provided under section 423(b) (or 403 
    (as so in effect)) or as a result of a judicial determination to 
    the effect that continuation therein would be contrary to the 
    welfare of such child;
        ``(B) meets all of the requirements of title XVI with respect 
    to eligibility for supplemental security income benefits; or
        ``(C) is a child whose costs in a foster family home or child-
    care institution are covered by the foster care maintenance 
    payments being made with respect to his or her minor parent;
        ``(2)(A) would have received aid under the eligibility 
    standards under the State plan approved under section 402 (as in 
    effect on the day before the date of the enactment of this part, 
    adjusted for inflation, in accordance with regulations issued by 
    the Secretary) in or for the month in which such agreement was 
    entered into or court proceedings leading to the removal of such 
    child from the home were initiated;
        ``(B) would have received such aid in or for such month if 
    application had been made therefor, or had been living with a 
    relative specified in section 406(a) (as so in effect) within 6 
    months prior to the month in which such agreement was entered into 
    or such proceedings were initiated, and would have received such 
    aid in or for such month if in such month such child had been 
    living with such a relative and application therefor had been made; 
    or
        ``(C) is a child described in subparagraph (A) or (B); and
        ``(3) has been determined by the State, pursuant to subsection 
    (g) of this section, to be a child with special needs.
    ``(d) Determination of Payments.--The amount of the payments to be 
made in any case under subsection (b) shall be determined through 
agreement between the adoptive parents and the State or a public or 
nonprofit private agency administering the program under this part, 
which shall take into consideration the circumstances of the adopting 
parents and the needs of the child being adopted, and may be readjusted 
periodically, with the concurrence of the adopting parents (which may 
be specified in the adoption assistance agreement), depending upon 
changes in such circumstances. However, in no case may the amount of 
the adoption assistance payment exceed the foster care maintenance 
payment which would have been paid during the period if the child with 
respect to whom the adoption assistance payment is made had been in a 
foster family home.
    ``(e) Payment Exception.--Notwithstanding subsection (d), no 
payment may be made to parents with respect to any child who has 
attained the age of 18 (or, where the State determines that the child 
has a mental or physical disability which warrants the continuation of 
assistance, the age of 21), and no payment may be made to parents with 
respect to any child if the State determines that the parents are no 
longer legally responsible for the support of the child or if the State 
determines that the child is no longer receiving any support from such 
parents. Parents who have been receiving adoption assistance payments 
under this part shall keep the State or public or nonprofit private 
agency administering the program under this part informed of 
circumstances which would, pursuant to this section, make them 
ineligible for such assistance payments, or eligible for assistance 
payments in a different amount.
    ``(f) Pre-adoption Payments.--For purposes of this part, 
individuals with whom a child who has been determined by the State, 
pursuant to subsection (g), to be a child with special needs is placed 
for adoption in accordance with applicable State and local law shall be 
eligible for adoption assistance payments during the period of the 
placement, on the same terms and subject to the same conditions as if 
such individuals had adopted such child.
    ``(g) Determination of Child With Special Needs.--For purposes of 
this section, a child shall not be considered a child with special 
needs unless--
        ``(1) the State has determined that the child cannot or should 
    not be returned to the home of the child's parents; and
        ``(2) the State had first determined--
            ``(A) that there exists with respect to the child a 
        specific factor or condition such as the child's ethnic 
        background, age, or membership in a minority or sibling group, 
        or the presence of factors such as medical conditions or 
        physical, mental, or emotional handicaps because of which it is 
        reasonable to conclude that such child cannot be placed with 
        adoptive parents without providing adoption assistance under 
        this part or medical assistance under title XIX or XXI; and
            ``(B) that, except where it would be against the best 
        interests of the child because of such factors as the existence 
        of significant emotional ties with prospective adoptive parents 
        while in the care of such parents as a foster child, a 
        reasonable, but unsuccessful, effort has been made to place the 
        child with appropriate adoptive parents without providing 
        adoption assistance under this section or medical assistance 
        under title XIX or XXI.

``SEC. 426. CITIZEN REVIEW PANELS.

    ``(a) Establishment.--Each State to which a grant is made under 
section 423 shall establish at least 3 citizen review panels.
    ``(b) Composition.--Each panel established under subsection (a) 
shall be broadly representative of the community from which drawn.
    ``(c) Frequency of Meetings.--Each panel established under 
subsection (a) shall meet not less frequently than quarterly.
    ``(d) Duties.--
        ``(1) In general.--Each panel established under subsection (a) 
    shall, by examining specific cases, determine the extent to which 
    the State and local agencies responsible for carrying out 
    activities under this part are doing so in accordance with the 
    State plan, with the child protection standards set forth in 
    section 422(a)(12), and with any other criteria that the panel 
    considers important to ensure the protection of children.
        ``(2) Confidentiality.--The members and staff of any panel 
    established under subsection (a) shall not disclose to any person 
    or government any information about any specific child protection 
    case with respect to which the panel is provided information.
    ``(e) State Assistance.--Each State that establishes a panel under 
subsection (a) shall afford the panel access to any information on any 
case that the panel desires to review, and shall provide the panel with 
staff assistance in performing its duties.
    ``(f) Reports.--Each panel established under subsection (a) shall 
make a public report of its activities after each meeting.

``SEC. 427. DATA COLLECTION AND REPORTING.

    ``(a) Annual Reports on State Child Welfare Goals.--On the date 
that is 3 years after the effective date of this part and annually 
thereafter, each State to which a grant is made under section 423 shall 
submit to the Secretary a report that contains quantitative information 
on the extent to which the State is making progress toward achieving 
the goals of the State child protection program.
    ``(b) State Data Reports.--
        ``(1) Biannual reports.--Each State to which a grant is made 
    under section 423 shall biannually submit to the Secretary a report 
    that includes the following disaggregated case record information 
    with respect to each child within the State receiving publicly-
    supported child welfare services under the State program funded 
    under this part:
            ``(A) Whether the child received services under the program 
        funded under this part.
            ``(B) The age, race, gender, and family income of the 
        parents and child.
            ``(C) The county of residence of the child.
            ``(D) Whether the child was removed from the family.
            ``(E) Whether the child entered foster care under the 
        responsibility of the State.
            ``(F) The type of out-of-home care in which the child was 
        placed (including institutional care, group home care, family 
        foster care, or relative placement).
            ``(G) The child's permanency planning goal, such as family 
        reunification, kinship care, adoption, or independent living.
            ``(H) Whether the child was released for adoption.
            ``(I) Whether the child exited from foster care, and, if 
        so, the reason for the exit, such as return to family, 
        placement with relatives, adoption, independent living, or 
        death.
            ``(J) Other information as required by the Secretary and 
        agreed to by a majority of the States, including information 
        necessary to ensure that there is a smooth transition of data 
        from the Adoption and Foster Care Analysis and Reporting 
        Systems and the National Center on Abuse and Neglect Data 
        System to the data reporting system required under this 
        section.
        ``(2) Annual reports.--Each State to which a grant is made 
    under section 423 shall annually submit to the Secretary a report 
    that includes the following information:
            ``(A) The number of children reported to the State during 
        the year as alleged victims of abuse or neglect.
            ``(B) The number of children for whom an investigation of 
        alleged maltreatment resulted in a determination of 
        substantiated abuse or neglect, the number for whom a report of 
        maltreatment was unsubstantiated, and the number for whom a 
        report of maltreatment was determined to be false.
            ``(C) The number of families that received preventive 
        services.
            ``(D) The number of infants abandoned during the year, the 
        number of such infants who were adopted, and the length of time 
        between abandonment and adoption.
            ``(E) The number of deaths of children resulting from child 
        abuse or neglect.
            ``(F) The number of deaths occurring while children were in 
        the custody of the State.
            ``(G) The number of children served by the State 
        independent living program.
            ``(H) Quantitative measurements demonstrating whether the 
        State is making progress toward the child protection goals 
        identified by the State.
            ``(I) The types of maltreatment suffered by victims of 
        child abuse and neglect.
            ``(J) The number of abused and neglected children receiving 
        services.
            ``(K) The average length of stay of children in out-of-home 
        care.
            ``(L) The response of the State to the findings and 
        recommendations of the citizen review panels established under 
        section 426.
            ``(M) Other information as required by the Secretary and 
        agreed to by a majority of the States, including information 
        necessary to ensure that there is a smooth transition of data 
        from the Adoption and Foster Care Analysis and Reporting 
        Systems and the National Center on Abuse and Neglect Data 
        System to the data reporting system required under this 
        section.
        ``(3) Regulatory authority.--The Secretary shall define by 
    regulation the information required to be included in the reports 
    submitted under paragraphs (1) and (2).
    ``(c) Authority of States to Use Estimates.--
        ``(1) In general.--A State may comply with a requirement to 
    provide precise numerical information described in subsection (b) 
    by submitting an estimate which is obtained through the use of 
    scientifically acceptable sampling methods.
        ``(2) Secretarial review of sampling methods.--The Secretary 
    shall periodically review the sampling methods used by a State to 
    comply with a requirement to provide information described in 
    subsection (b). The Secretary may require a State to revise the 
    sampling methods so used if such methods do not meet scientific 
    standards and shall impose the penalty described in section 
    423(f)(4) upon a State if a State has not complied with such 
    requirements.
    ``(d) Annual Report by the Secretary.--Within 6 months after the 
end of each fiscal year, the Secretary shall prepare a report based on 
information provided by the States for the fiscal year pursuant to 
subsection (b), and shall make the report and such information 
available to the Congress and the public.
    ``(e) Scope of State Program Funded Under This Part.--As used in 
subsection (b), the term `State program funded under this part' 
includes any equivalent State program.

``SEC. 428. FUNDING FOR STUDIES OF CHILD WELFARE.

    ``(a) National Random Sample Study of Child Welfare.--There are 
authorized to be appropriated and there are appropriated to the 
Secretary for each of fiscal years 1996 through 2002--
        ``(1) $6,000,000 to conduct a national study based on random 
    samples of children who are at risk of child abuse or neglect, or 
    are determined by States to have been abused or neglected under 
    section 208 of the Child and Family Services Block Grant Act of 
    1995; and
        ``(2) $10,000,000 for such other research as may be necessary 
    under such section.
    ``(b) State Courts Assessment and Improvement of Handling of 
Proceedings Relating to Foster Care and Adoption.--There are authorized 
to be appropriated and there are appropriated to the Secretary for each 
of fiscal years 1996 through 1998 $10,000,000 for the purpose of 
carrying out section 13712 of the Omnibus Budget Reconciliation Act of 
1993 (42 U.S.C. 670 note). All funds appropriated under this subsection 
shall be expended not later than September 30, 1999.

``SEC. 429. DEFINITIONS.

    ``For purposes of this part, the following definitions shall apply:
        ``(1) Administrative review.--The term `administrative review' 
    means a review open to the participation of the parents of the 
    child, conducted by a panel of appropriate persons at least one of 
    whom is not responsible for the case management of, or the delivery 
    of services to, either the child or the parents who are the subject 
    of the review.
        ``(2) Adoption assistance agreement.--The term `adoption 
    assistance agreement' means a written agreement, binding on the 
    parties to the agreement, between the State, other relevant 
    agencies, and the prospective adoptive parents of a minor child 
    which at a minimum--
            ``(A) specifies the nature and amount of any payments, 
        services, and assistance to be provided under such agreement; 
        and
            ``(B) stipulates that the agreement shall remain in effect 
        regardless of the State of which the adoptive parents are 
        residents at any given time.
    The agreement shall contain provisions for the protection (under an 
    interstate compact approved by the Secretary or otherwise) of the 
    interests of the child in cases where the adoptive parents and 
    child move to another State while the agreement is effective.
        ``(3) Case plan.--The term `case plan' means a written document 
    which includes at least the following:
            ``(A) A description of the type of home or institution in 
        which a child is to be placed, including a discussion of the 
        appropriateness of the placement and how the agency which is 
        responsible for the child plans to carry out the voluntary 
        placement agreement entered into or judicial determination made 
        with respect to the child in accordance with section 424(a)(1).
            ``(B) A plan for assuring that the child receives proper 
        care and that services are provided to the parents, child, and 
        foster parents in order to improve the conditions in the 
        parents' home, facilitate return of the child to his or her own 
        home or the permanent placement of the child, and address the 
        needs of the child while in foster care, including a discussion 
        of the appropriateness of the services that have been provided 
        to the child under the plan.
            ``(C) To the extent available and accessible, the health 
        and education records of the child, including--
                ``(i) the names and addresses of the child's health and 
            educational providers;
                ``(ii) the child's grade level performance;
                ``(iii) the child's school record;
                ``(iv) assurances that the child's placement in foster 
            care takes into account proximity to the school in which 
            the child is enrolled at the time of placement;
                ``(v) a record of the child's immunizations;
                ``(vi) the child's known medical problems;
                ``(vii) the child's medications; and
                ``(viii) any other relevant health and education 
            information concerning the child determined to be 
            appropriate by the State.
        Where appropriate, for a child age 16 or over, the case plan 
        must also include a written description of the programs and 
        services which will help such child prepare for the transition 
        from foster care to independent living.
        ``(4) Case review system.--The term `case review system' means 
    a procedure for assuring that--
            ``(A) each child has a case plan designed to achieve 
        placement in the least restrictive (most family like) and most 
        appropriate setting available and in close proximity to the 
        parents' home, consistent with the best interest and special 
        needs of the child, which--
                ``(i) if the child has been placed in a foster family 
            home or child-care institution a substantial distance from 
            the home of the parents of the child, or in a State 
            different from the State in which such home is located, 
            sets forth the reasons why such placement is in the best 
            interests of the child; and
                ``(ii) if the child has been placed in foster care 
            outside the State in which the home of the parents of the 
            child is located, requires that, periodically, but not less 
            frequently than every 12 months, a caseworker on the staff 
            of the State in which the home of the parents of the child 
            is located, or of the State in which the child has been 
            placed, visit such child in such home or institution and 
            submit a report on such visit to the State in which the 
            home of the parents of the child is located;
            ``(B) the status of each child is reviewed periodically but 
        no less frequently than once every six months by either a court 
        or by administrative review (as defined in paragraph (1)) in 
        order to determine the continuing necessity for and 
        appropriateness of the placement, the extent of compliance with 
        the case plan, and the extent of progress which has been made 
        toward alleviating or mitigating the causes necessitating 
        placement in foster care, and to project a likely date by which 
        the child may be returned to the home or placed for adoption or 
        legal guardianship;
            ``(C) with respect to each such child, procedural 
        safeguards will be applied, among other things, to assure each 
        child in foster care under the supervision of the State of a 
        dispositional hearing to be held, in a family or juvenile court 
        or another court (including a tribal court) of competent 
        jurisdiction, or by an administrative body appointed or 
        approved by the court, no later than 18 months after the 
        original placement (and not less frequently than every 12 
        months thereafter during the continuation of foster care), 
        which hearing shall determine the future status of the child 
        (including whether the child should be returned to the parent, 
        should be continued in foster care for a specified period, 
        should be placed for adoption, or should (because of the 
        child's special needs or circumstances) be continued in foster 
        care on a permanent or long-term basis) and, in the case of a 
        child described in subparagraph (A)(ii), whether the out-of-
        State placement continues to be appropriate and in the best 
        interests of the child, and, in the case of a child who has 
        attained age 16, the services needed to assist the child to 
        make the transition from foster care to independent living; and 
        procedural safeguards shall also be applied with respect to 
        parental rights pertaining to the removal of the child from the 
        home of his parents, to a change in the child's placement, and 
        to any determination affecting visitation privileges of 
        parents; and
            ``(D) a child's health and education record (as described 
        in paragraph (3)(C)) is reviewed and updated, and supplied to 
        the foster parent or foster care provider with whom the child 
        is placed, at the time of each placement of the child in foster 
        care.
        ``(5) Child-care institution.--The term `child-care 
    institution' means a private child-care institution, or a public 
    child-care institution which accommodates no more than 25 children, 
    which is licensed by the State in which it is situated or has been 
    approved, by the agency of such State responsible for licensing or 
    approval of institutions of this type, as meeting the standards 
    established for such licensing, but the term shall not include 
    detention facilities, forestry camps, training schools, or any 
    other facility operated primarily for the detention of children who 
    are determined to be delinquent.
        ``(6) Foster care maintenance payments.--
            ``(A) In general.--The term `foster care maintenance 
        payments' means payments to cover the cost of (and the cost of 
        providing) food, clothing, shelter, daily supervision, school 
        supplies, a child's personal incidentals, liability insurance 
        with respect to a child, and reasonable travel to the child's 
        home for visitation. In the case of institutional care, such 
        term shall include the reasonable costs of administration and 
        operation of such institution as are necessarily required to 
        provide the items described in the preceding sentence.
            ``(B) Special rule.--In cases where--
                ``(i) a child placed in a foster family home or child-
            care institution is the parent of a son or daughter who is 
            in the same home or institution; and
                ``(ii) payments described in subparagraph (A) are being 
            made under this part with respect to such child,
        the foster care maintenance payments made with respect to such 
        child as otherwise determined under subparagraph (A) shall also 
        include such amounts as may be necessary to cover the cost of 
        the items described in that subparagraph with respect to such 
        son or daughter.
        ``(7) Foster family home.--The term `foster family home' means 
    a foster family home for children which is licensed by the State in 
    which it is situated or has been approved, by the agency of such 
    State having responsibility for licensing homes of this type, as 
    meeting the standards established for such licensing.
        ``(8) State.--The term `State' means the 50 States and the 
    District of Columbia.
        ``(9) Voluntary placement.--The term `voluntary placement' 
    means an out-of-home placement of a minor, by or with participation 
    of the State, after the parents or guardians of the minor have 
    requested the assistance of the State and signed a voluntary 
    placement agreement.
        ``(10) Voluntary placement agreement.--The term `voluntary 
    placement agreement' means a written agreement, binding on the 
    parties to the agreement, between the State, any other agency 
    acting on its behalf, and the parents or guardians of a minor child 
    which specifies, at a minimum, the legal status of the child and 
    the rights and obligations of the parents or guardians, the child, 
    and the agency while the child is in placement.''.

SEC. 702. CONFORMING AMENDMENTS.

    (a) Secretarial Submission of Legislative Proposal for Technical 
and Conforming Amendments.--Not later than 90 days after the date of 
the enactment of this subtitle, the Secretary of Health and Human 
Services, in consultation, as appropriate, with the heads of other 
Federal agencies, shall submit to the appropriate committees of 
Congress a legislative proposal providing for such technical and 
conforming amendments in the law as are required by the provisions of 
this subtitle.
    (b) Amendments to Part D of Title IV of the Social Security Act.--
        (1) Section 452(a)(10)(C) of the Social Security Act (42 U.S.C. 
    652(a)(10)(C)), as amended by section 108(b)(2) of this Act, is 
    amended--
            (A) by striking ``under part E'' and inserting ``under 
        section 423(b)(1)(A)''; and
            (B) by striking ``or under section 471(a)(17)''.
        (2) Section 452(g)(2)(A) of such Act (42 U.S.C. 652(g)(2)(A)), 
    as amended by paragraphs (6) and (7) of section 108(b), is 
    amended--
            (A) by inserting ``or benefits or services were being 
        provided under the State child protection program funded under 
        part B'' after ``part A'' each place it appears; and
            (B) in the matter following subparagraph (B), by striking 
        ``agency administering the plan under part E'' and inserting 
        ``under the child protection program funded under part B''.
        (3) Section 466(a)(3)(B) of such Act (42 U.S.C. 666(a)(3)(B)), 
    as amended by section 108(b)(14), is amended by striking ``or 
    471(a)(17)''.
    (c) Amendment to Title XVI of the Social Security Act as in Effect 
With Respect to the States.--Section 1611(c)(5)(B) of such Act (42 
U.S.C. 1382(c)(5)(B)) is amended to read as follows: ``(B) section 
423(b)(1)(A) of this Act (relating to foster care maintenance 
payments),''.
    (d) Repeal of Part E of Title IV of the Social Security Act.--Part 
E of title IV of the Social Security Act (42 U.S.C. 671-679) is hereby 
repealed.
    (e) Amendment to Section 9442 of the Omnibus Budget Reconciliation 
Act of 1986.--Section 9442(4) of the Omnibus Budget Reconciliation Act 
of 1986 (42 U.S.C. 679a(4)) is amended by inserting ``(as in effect 
before October 1, 1995)'' after ``Act''.
    (f) Redesignation and Amendments of Section 1123.--
        (1) Redesignation.--The Social Security Act is amended by 
    redesignating section 1123, the second place it appears (42 U.S.C. 
    1320a-1a), as section 1123A.
        (2) Amendments.--Section 1123A of such Act, as so redesignated, 
    is amended--
            (A) in subsection (a)--
                (i) by striking ``The Secretary'' and inserting 
            ``Notwithstanding section 423(h), the Secretary'';
                (ii) in the matter preceding paragraph (1), and in 
            paragraph (1), by striking ``parts B and E'' and inserting 
            ``part B''; and
                (iii) in paragraph (2), by inserting ``under this 
            section'' after ``promulgated'';
            (B) in subsection (b)--
                (i) in paragraph (3), by striking ``matching''; and
                (ii) in paragraph (4)(C), by striking ``matching''; and
            (C) in subsection (c)(1)(B), by striking ``matching''.

SEC. 703. EFFECTIVE DATE; TRANSITION RULES.

    (a) Effective Date.--
        (1) In general.--Except as provided in paragraph (2), this 
    subtitle and the amendments made by this subtitle shall take effect 
    on October 1, 1996.
        (2) Exception.--Section 428 of part B of title IV of the Social 
    Security Act, as added by section 701, and section 702(a) shall 
    take effect on the date of the enactment of this subtitle.
        (3) Temporary redesignation of section 428.--During the period 
    beginning on the date of the enactment of this subtitle and ending 
    on October 1, 1996, section 428 of part B of title IV of the Social 
    Security Act, as added by section 701, shall be redesignated as 
    section 428A.
    (b) Transition Rules.--
        (1) 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 
        provisions amended; and
            (B) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such provisions.
        (2) Closing out account for those programs terminated or 
    substantially modified by this subtitle.--In closing out accounts, 
    Federal and State officials may use scientifically acceptable 
    statistical sampling techniques. Claims made under programs which 
    are repealed or substantially amended in this subtitle and which 
    involve State expenditures in cases where assistance or services 
    were provided during a prior fiscal year, shall be treated as 
    expenditures during fiscal year 1995 for purposes of reimbursement 
    even if payment was made by a State on or after October 1, 1995. 
    States shall complete the filing of all claims no later than 
    September 30, 1997. Federal department heads shall--
            (A) use the single audit procedure to review and resolve 
        any claims in connection with the close out of programs; and
            (B) reimburse States for any payments made for assistance 
        or services provided during a prior fiscal year from funds for 
        fiscal year 1995, rather than the funds authorized by this 
        subtitle.
    SEC. 704. SENSE OF THE CONGRESS REGARDING TIMELY ADOPTION OF 
      CHILDREN.
    It is the sense of the Congress that--
        (1) too many children who wish to be adopted are spending 
    inordinate amounts of time in foster care;
        (2) there is an urgent need for States to increase the number 
    of waiting children being adopted in a timely and lawful manner;
        (3) studies have shown that States spend an excess of $15,000 
    each year on each special needs child in foster care, and would 
    save significant amounts of money if they offered incentives to 
    families to adopt special needs children;
        (4) States should allocate sufficient funds under this title 
    for adoption assistance and medical assistance to encourage more 
    families to adopt children who otherwise would languish in the 
    foster care system for a period that many experts consider 
    detrimental to their development;
        (5) States should offer incentives for families that adopt 
    special needs children to make adoption more affordable for middle-
    class families;
        (6) when it is necessary for a State to remove a child from the 
    home of the child's biological parents, the State should strive--
            (A) to provide the child with a single foster care 
        placement and a single coordinated case team; and
            (B) to conclude an adoption of the child, when adoption is 
        the goal of the child and the State, within one year of the 
        child's placement in foster care; and
        (7) States should participate in local, regional, or national 
    programs to enable maximum visibility of waiting children to 
    potential parents. Such programs should include a nationwide, 
    interactive computer network to disseminate information on children 
    eligible for adoption to help match them with families around the 
    country.

           Subtitle B--Child and Family Services Block Grant

SEC. 751. CHILD AND FAMILY SERVICES BLOCK GRANT.

    The Child Abuse Prevention and Treatment Act (42 U.S.C. 5101 et 
seq.) is amended to read as follows:

``SECTION. 1. SHORT TITLE.

    ``This Act may be cited as the `Child and Family Services Block 
Grant Act of 1995'.

``SEC. 2. FINDINGS.

    ``The Congress finds the following:
        ``(1) Each year, close to 1,000,000 American children are 
    victims of abuse and neglect.
        ``(2) Many of these children and their families fail to receive 
    adequate protection or treatment.
        ``(3) The problem of child abuse and neglect requires a 
    comprehensive approach that--
            ``(A) integrates the work of social service, legal, health, 
        mental health, education, and substance abuse agencies and 
        organizations;
            ``(B) strengthens coordination among all levels of 
        government, and with private agencies, civic, religious, and 
        professional organizations, and individual volunteers;
            ``(C) emphasizes the need for abuse and neglect prevention, 
        assessment, investigation, and treatment at the neighborhood 
        level;
            ``(D) ensures properly trained and support staff with 
        specialized knowledge, to carry out their child protection 
        duties; and
            ``(E) is sensitive to ethnic and cultural diversity.
        ``(4) The child protection system should be comprehensive, 
    child-centered, family-focused, and community-based, should 
    incorporate all appropriate measures to prevent the occurrence or 
    recurrence of child abuse and neglect, and should promote physical 
    and psychological recovery and social re-integration in an 
    environment that fosters the health, safety, self-respect, and 
    dignity of the child.
        ``(5) The Federal government should provide leadership and 
    assist communities in their child and family protection efforts 
    by--
            ``(A) generating and sharing knowledge relevant to child 
        and family protection, including the development of models for 
        service delivery;
            ``(B) strengthening the capacity of States to assist 
        communities;
            ``(C) helping communities to carry out their child and 
        family protection plans by promoting the competence of 
        professional, paraprofessional, and volunteer resources; and
            ``(D) providing leadership to end the abuse and neglect of 
        the nation's children and youth.

``SEC. 3. PURPOSES.

    ``The purposes of this Act are the following:
        ``(1) To assist each State in improving the child protective 
    service systems of such State by--
            ``(A) improving risk and safety assessment tools and 
        protocols;
            ``(B) developing, strengthening, and facilitating training 
        opportunities for individuals who are mandated to report child 
        abuse or neglect or otherwise overseeing, investigating, 
        prosecuting, or providing services to children and families who 
        are at risk of abusing or neglecting their children; and
            ``(C) developing, implementing, or operating information, 
        education, training, or other programs designed to assist and 
        provide services for families of disabled infants with life-
        threatening conditions.
        ``(2) To support State efforts to develop, operate, expand and 
    enhance a network of community-based, prevention-focused, family 
    resource and support programs that are culturally competent and 
    that coordinate resources among existing education, vocational 
    rehabilitation, disability, respite, health, mental health, job 
    readiness, self-sufficiency, child and family development, 
    community action, Head Start, child care, child abuse and neglect 
    prevention, juvenile justice, domestic violence prevention and 
    intervention, housing, and other human service organizations within 
    the State.
        ``(3) To facilitate the elimination of barriers to adoption and 
    to provide permanent and loving home environments for children who 
    would benefit from adoption, particularly children with special 
    needs, including disabled infants with life-threatening conditions, 
    by--
            ``(A) promoting model adoption legislation and procedures 
        in the States and territories of the United States in order to 
        eliminate jurisdictional and legal obstacles to adoption;
            ``(B) providing a mechanism for the Department of Health 
        and Human Services to--
                ``(i) promote quality standards for adoption services, 
            pre-placement, post-placement, and post-legal adoption 
            counseling, and standards to protect the rights of children 
            in need of adoption;
                ``(ii) maintain a national adoption information 
            exchange system to bring together children who would 
            benefit from adoption and qualified prospective adoptive 
            parents who are seeking such children, and conduct national 
            recruitment efforts in order to reach prospective parents 
            for children awaiting adoption; and
                ``(iii) demonstrate expeditious ways to free children 
            for adoption for whom it has been determined that adoption 
            is the appropriate plan; and
            ``(C) facilitating the identification and recruitment of 
        foster and adoptive families that can meet children's needs.
        ``(4) To respond to the needs of children, in particular those 
    who are drug exposed or inflicted with Acquired Immune Deficiency 
    Syndrome (AIDS), by supporting activities aimed at preventing the 
    abandonment of children, providing support to children and their 
    families, and facilitating the recruitment and training of health 
    and social service personnel.
        ``(5) To carry out any other activities as the Secretary 
    determines are consistent with this Act.

``SEC. 4. DEFINITIONS.

    ``As used in this Act:
        ``(1) Child.--The term `child' means a person who has not 
    attained the lesser of--
            ``(A) the age of 18; or
            ``(B) except in the case of sexual abuse, the age specified 
        by the child protection law of the State in which the child 
        resides;
        ``(2) Child abuse and neglect.--The term `child abuse and 
    neglect' means, at a minimum, any recent act or failure to act on 
    the part of a parent or caretaker, which results in death, serious 
    physical or emotional harm, sexual abuse or exploitation, or an act 
    or failure to act which presents an imminent risk of serious harm.
        ``(3) Family resource and support programs.--The term `family 
    resource and support program' means a community-based, prevention-
    focused entity that--
            ``(A) provides, through direct service, the core services 
        required under this Act, including--
                ``(i) parent education, support and leadership 
            services, together with services characterized by 
            relationships between parents and professionals that are 
            based on equality and respect, and designed to assist 
            parents in acquiring parenting skills, learning about child 
            development, and responding appropriately to the behavior 
            of their children;
                ``(ii) services to facilitate the ability of parents to 
            serve as resources to one another (such as through mutual 
            support and parent self-help groups);
                ``(iii) early developmental screening of children to 
            assess any needs of children, and to identify types of 
            support that may be provided;
                ``(iv) outreach services provided through voluntary 
            home visits and other methods to assist parents in becoming 
            aware of and able to participate in family resources and 
            support program activities;
                ``(v) community and social services to assist families 
            in obtaining community resources; and
                ``(vi) follow-up services;
            ``(B) provides, or arranges for the provision of, other 
        core services through contracts or agreements with other local 
        agencies; and
            ``(C) provides access to optional services, directly or by 
        contract, purchase of service, or interagency agreement, 
        including--
                ``(i) child care, early childhood development and early 
            intervention services;
                ``(ii) self-sufficiency and life management skills 
            training;
                ``(iii) education services, such as scholastic 
            tutoring, literacy training, and General Educational Degree 
            services;
                ``(iv) job readiness skills;
                ``(v) child abuse and neglect prevention activities;
                ``(vi) services that families with children with 
            disabilities or special needs may require;
                ``(vii) community and social service referral;
                ``(viii) peer counseling;
                ``(ix) referral for substance abuse counseling and 
            treatment; and
                ``(x) help line services.
        ``(4) Indian tribe and tribal organization.--The terms `Indian 
    tribe' and `tribal organization' shall have the same meanings given 
    such terms in subsections (e) and (l), respectively, of section 4 
    of the Indian Self-Determination and Education Assistance Act (25 
    U.S.C. 450b(e) and (l)).
        ``(5) Respite services.--The term `respite services' means 
    short term care services provided in the temporary absence of the 
    regular caregiver (parent, other relative, foster parent, adoptive 
    parent, or guardian) to children who--
            ``(A) are in danger of abuse or neglect;
            ``(B) have experienced abuse or neglect; or
            ``(C) have disabilities, chronic, or terminal illnesses.
    Such services shall be provided within or outside the home of the 
    child, be short-term care (ranging from a few hours to a few weeks 
    of time, per year), and be intended to enable the family to stay 
    together and to keep the child living in the home and community of 
    the child.
        ``(6) Secretary.--The term `Secretary' means the Secretary of 
    Health and Human Services.
        ``(7) Sexual abuse.--The term `sexual abuse' includes--
            ``(A) the employment, use, persuasion, inducement, 
        enticement, or coercion of any child to engage in, or assist 
        any other person to engage in, any sexually explicit conduct or 
        simulation of such conduct for the purpose of producing a 
        visual depiction of such conduct; or
            ``(B) the rape, molestation, prostitution, or other form of 
        sexual exploitation of children, or incest with children;
        ``(8) State.--The term `State' means each of the several 
    States, the District of Columbia, the Commonwealth of Puerto Rico, 
    the Virgin Islands, Guam, American Samoa, the Commonwealth of the 
    Northern Mariana Islands, and the Trust Territory of the Pacific 
    Islands.
        ``(9) Withholding of medically indicated treatment.--The term 
    `withholding of medically indicated treatment' means the failure to 
    respond to the infant's life-threatening conditions by providing 
    treatment (including appropriate nutrition, hydration, and 
    medication) which, in the treating physician's or physicians' 
    reasonable medical judgment, will be most likely to be effective in 
    ameliorating or correcting all such conditions, except that the 
    term does not include the failure to provide treatment (other than 
    appropriate nutrition, hydration, or medication) to an infant when, 
    in the treating physician's or physicians' reasonable medical 
    judgment--
            ``(A) the infant is chronically and irreversibly comatose;
            ``(B) the provision of such treatment would--
                ``(i) merely prolong dying;
                ``(ii) not be effective in ameliorating or correcting 
            all of the infant's life-threatening conditions; or
                ``(iii) otherwise be futile in terms of the survival of 
            the infant; or
            ``(C) the provision of such treatment would be virtually 
        futile in terms of the survival of the infant and the treatment 
        itself under such circumstances would be inhumane.

                     ``TITLE I--GENERAL BLOCK GRANT

``SEC. 101. CHILD AND FAMILY SERVICES BLOCK GRANTS.

    ``(a) Eligibility.--The Secretary shall award grants to eligible 
States that file a State plan that is approved under section 102 and 
that otherwise meet the eligibility requirements for grants under this 
title.
    ``(b) Amount of Grant.--The amount of a grant made to each State 
under subsection (a) for a fiscal year shall be based on the population 
of children under the age of 18 residing in each State that applies for 
a grant under this section.
    ``(c) Use of Amounts.--Amounts received by a State under a grant 
awarded under subsection (a) shall be used to carry out the purposes 
described in section 3.

``SEC. 102. ELIGIBLE STATES.

    ``(a) In General.--As used in this title, the term `eligible State' 
means a State that has submitted to the Secretary, not later than 
October 1, 1996, and every 3 years thereafter, a plan which has been 
signed by the chief executive officer of the State and that includes 
the following:
        ``(1) Outline of child protection program.--A written document 
    that outlines the activities the State intends to conduct to 
    achieve the purpose of this title, including the procedures to be 
    used for--
            ``(A) receiving and assessing reports of child abuse or 
        neglect;
            ``(B) investigating such reports;
            ``(C) with respect to families in which abuse or neglect 
        has been confirmed, providing services or referral for services 
        for families and children where the State makes adetermination 
that the child may safely remain with the family;
            ``(D) protecting children by removing them from dangerous 
        settings and ensuring their placement in a safe environment;
            ``(E) providing training for individuals mandated to report 
        suspected cases of child abuse or neglect;
            ``(F) protecting children in foster care;
            ``(G) promoting timely adoptions;
            ``(H) protecting the rights of families, using adult 
        relatives as the preferred placement for children separated 
        from their parents where such relatives meet the relevant State 
        child protection standards; and
            ``(I) providing services to individuals, families, or 
        communities, either directly or through referral, that are 
        aimed at preventing the occurrence of child abuse and neglect.
        ``(2) Certification of state law requiring the reporting of 
    child abuse and neglect.--A certification that the State has in 
    effect laws that require public officials and other professionals 
    to report, in good faith, actual or suspected instances of child 
    abuse or neglect.
        ``(3) Certification of procedures for screening, safety 
    assessment, and prompt investigation.--A certification that the 
    State has in effect procedures for receiving and responding to 
    reports of child abuse or neglect, including the reports described 
    in paragraph (2), and for the immediate screening, safety 
    assessment, and prompt investigation of such reports.
        ``(4) Certification of state procedures for removal and 
    placement of abused or neglected children.--A certification that 
    the State has in effect procedures for the removal from families 
    and placement of abused or neglected children and of any other 
    child in the same household who may also be in danger of abuse or 
    neglect.
        ``(5) Certification of provisions for immunity from 
    prosecution.--A certification that the State has in effect laws 
    requiring immunity from prosecution under State and local laws and 
    regulations for individuals making good faith reports of suspected 
    or known instances of child abuse or neglect.
        ``(6) Certification of provisions and procedures for 
    expungement of certain records.--A certification that the State has 
    in effect laws and procedures requiring the facilitation of the 
    prompt expungement of any records that are accessible to the 
    general public or are used for purposes of employment or other 
    background checks in cases determined to be unsubstantiated or 
    false.
        ``(7) Certification of provisions and procedures relating to 
    appeals.--A certification that not later then 2 years after the 
    date of the enactment of this Act, the State shall have laws and 
    procedures in effect affording individuals an opportunity to appeal 
    an official finding of abuse or neglect.
        ``(8) Certification of state procedures for developing and 
    reviewing written plans for permanent placement of removed 
    children.--A certification that the State has in effect procedures 
    for ensuring that a written plan is prepared for children who have 
    been removed from their families. Such plan shall specify the goals 
    for achieving a permanent placement for the child in a timely 
    fashion, for ensuring that the written plan is reviewed every 6 
    months (until such placement is achieved), and for ensuring that 
    information about such children is collected regularly and recorded 
    in case records, and include a description of such procedures.
        ``(9) Certification of state program to provide independent 
    living services.--A certification that the State has in effect a 
    program to provide independent living services, for assistance in 
    making the transition to self-sufficient adulthood, to individuals 
    in the child protection program of the State who are 16, but who 
    are not 20 (or, at the option of the State, 22), years of age, and 
    who do not have a family to which to be returned.
        ``(10) Certification of state procedures to respond to 
    reporting of medical neglect of disabled infants.--A certification 
    that the State has in place for the purpose of responding to the 
    reporting of medical neglect of infants (including instances of 
    withholding of medically indicated treatment from disabled infants 
    with life-threatening conditions), procedures or programs, or both 
    (within the State child protective services system), to provide 
    for--
            ``(A) coordination and consultation with individuals 
        designated by and within appropriate health-care facilities;
            ``(B) prompt notification by individuals designated by and 
        within appropriate health-care facilities of cases of suspected 
        medical neglect (including instances of withholding of 
        medically indicated treatment from disabled infants with life-
        threatening conditions); and
            ``(C) authority, under State law, for the State child 
        protective service to pursue any legal remedies, including the 
        authority to initiate legal proceedings in a court of competent 
        jurisdiction, as may be necessary to prevent the withholding of 
        medically indicated treatment from disabled infants with life-
        threatening conditions.
        ``(11) Identification of child protection goals.--The 
    quantitative goals of the State child protection program.
        ``(12) Certification of child protection standards.--With 
    respect to fiscal years beginning on or after April 1, 1996, a 
    certification that the State--
            ``(A) has completed an inventory of all children who, 
        before the inventory, had been in foster care under the 
        responsibility of the State for 6 months or more, which 
        determined--
                ``(i) the appropriateness of, and necessity for, the 
            foster care placement;
                ``(ii) whether the child could or should be returned to 
            the parents of the child or should be freed for adoption or 
            other permanent placement; and
                ``(iii) the services necessary to facilitate the return 
            of the child or the placement of the child for adoption or 
            legal guardianship;
            ``(B) is operating, to the satisfaction of the Secretary--
                ``(i) a statewide information system from which can be 
            readily determined the status, demographic characteristics, 
            location, and goals for the placement of every child who is 
            (or, within the immediately preceding 12 months, has been) 
            in foster care;
                ``(ii) a case review system for each child receiving 
            foster care under the supervision of the State;
                ``(iii) a service program designed to help children--

                    ``(I) where appropriate, return to families from 
                which they have been removed; or
                    ``(II) be placed for adoption, with a legal 
                guardian, or if adoption or legal guardianship is 
                determined not to be appropriate for a child, in some 
                other planned, permanent living arrangement; and

                ``(iv) a preplacement preventive services program 
            designed to help children at risk for foster care placement 
            remain with their families; and
            ``(C)(i) has reviewed (or not later than October 1, 1997, 
        will review) State policies and administrative and judicial 
        procedures in effect for children abandoned at or shortly after 
        birth (including policies and procedures providing for legal 
        representation of such children); and
            ``(ii) is implementing (or not later than October 1, 1997, 
        will implement) such policies and procedures as the State 
        determines, on the basis of the review described in clause (i), 
        to be necessary to enable permanent decisions to be made 
        expeditiously with respect to the placement of such children.
        ``(13) Certification of reasonable efforts before placement of 
    children in foster care.--A certification that the State in each 
    case will--
            ``(A) make reasonable efforts prior to the placement of a 
        child in foster care, to prevent or eliminate the need for 
        removal of the child from the child's home, and to make it 
        possible for the child to return home; and
            ``(B) with respect to families in which abuse or neglect 
        has been confirmed, provide services or referral for services 
        for families and children where the State makes a determination 
        that the child may safely remain with the family.
        ``(14) Certification of information disclosure provisions.--A 
    certification that the State has in effect and operational--
            ``(A) requirements for the prompt disclosure of all 
        relevant information to any Federal, State, or local government 
        entity, citizens review panel, child fatality review panel, or 
        any agent of such government entity determined by the State to 
        have a need for such information in order to carry out its 
        responsibilities under law to protect children from abuse or 
        neglect; and
            ``(B) provisions that allow for the public disclosure of 
        the findings of information about a case of child abuse or 
        neglect which has resulted in a child fatality or near-
        fatality, except that the public disclosure of such information 
        shall be made in a manner that protects the privacy rights of 
        individuals involved in the case, unless such individuals have 
        waived such rights or criminal court proceedings have been 
        initiated.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a), other than the material described in paragraph (10) of 
such subsection. The Secretary may not require a State to include in 
such a plan any material not described in subsection (a).

``SEC. 103. DATA COLLECTION AND REPORTING.

    ``(a) Annual Reports on State Child Welfare Goals.--On the date 
that is 3 years after the date of enactment of this Act and annually 
thereafter, each State to which a grant is made under section 101 shall 
submit to the Secretary a report that contains quantitative information 
on the extent to which the State is making progress toward achieving 
the purposes of this Act.
    ``(b) State Data Reports.--
        ``(1) Biannual reports.--Each State to which a grant is made 
    under section 101 shall biannually submit to the Secretary a report 
    that includes the following disaggregated case record information 
    with respect to each child within the State receiving publicly-
    supported child welfare services under the State program funded 
    under this Act:
            ``(A) Whether the child received services under the program 
        funded under this Act.
            ``(B) The age, race, gender, and family income of the 
        parents and child.
            ``(C) The county of residence of the child.
            ``(D) Whether the child was removed from the family.
            ``(E) Whether the child entered foster care under the 
        responsibility of the State.
            ``(F) The type of out-of-home care in which the child was 
        placed (including institutional care, group home care, family 
        foster care, or relative placement).
            ``(G) The child's permanency planning goal, such as family 
        reunification, kinship care, adoption, or independent living.
            ``(H) Whether the child was released for adoption.
            ``(I) Whether the child exited from foster care, and, if 
        so, the reason for the exit, such as return to family, 
        placement with relatives, adoption, independent living, or 
        death.
            ``(J) Other information as required by the Secretary and 
        agreed to by a majority of the States, including information 
        necessary to ensure that there is a smooth transition of data 
        from the Adoption and Foster Care Analysis and Reporting 
        Systems and the National Center on Abuseand Neglect Data System 
to the data reporting system required under this section.
        ``(2) Annual reports.--Each State to which a grant is made 
    under section 101 shall annually submit to the Secretary a report 
    that includes the following information:
            ``(A) The number of children reported to the State during 
        the year as alleged victims of abuse or neglect.
            ``(B) The number of children for whom an investigation of 
        alleged maltreatment resulted in a determination of 
        substantiated abuse or neglect, the number for whom a report of 
        maltreatment was unsubstantiated, and the number for whom a 
        report of maltreatment was determined to be false.
            ``(C) The number of families that received preventive 
        services.
            ``(D) The number of infants abandoned during the year, the 
        number of such infants who were adopted, and the length of time 
        between abandonment and adoption.
            ``(E) The number of deaths of children resulting from child 
        abuse or neglect.
            ``(F) The number of deaths occurring while children were in 
        the custody of the State.
            ``(G) The number of children served by the State 
        independent living program.
            ``(H) Quantitative measurements demonstrating whether the 
        State is making progress toward the child protection goals 
        identified by the State.
            ``(I) The types of maltreatment suffered by victims of 
        child abuse and neglect.
            ``(J) The number of abused and neglected children receiving 
        services.
            ``(K) The average length of stay of children in out-of-home 
        care.
            ``(L) Other information as required by the Secretary and 
        agreed to by a majority of the States, including information 
        necessary to ensure that there is a smooth transition of data 
        from the Adoption and Foster Care Analysis and Reporting 
        Systems and the National Center on Abuse and Neglect Data 
        System to the data reporting system required under this 
        section.
        ``(3) Regulatory authority.--The Secretary shall define by 
    regulation the information required to be included in the reports 
    submitted under paragraphs (1) and (2).
    ``(c) Authority of States to Use Estimates.--
        ``(1) In general.--A State may comply with a requirement to 
    provide precise numerical information described in subsection (b) 
    by submitting an estimate which is obtained through the use of 
    scientifically acceptable sampling methods.
        ``(2) Secretarial review of sampling methods.--The Secretary 
    shall periodically review the sampling methods used by a State to 
    comply with a requirement to provide information described in 
    subsection (b). The Secretary may require a State to revise the 
    sampling methods so used if such methods do not meet scientific 
    standards.
    ``(d) Annual Report by the Secretary.--Within 6 months after the 
end of each fiscal year, the Secretary shall prepare a report based on 
information provided by the States for the fiscal year pursuant to 
subsection (b), and shall make the report and such information 
available to the Congress and the public.
    ``(e) Scope of State Program Funded Under This Act.--As used in 
subsection (b), the term `State program funded under this Act' includes 
any equivalent State program.

     ``TITLE II--RESEARCH, DEMONSTRATIONS, TRAINING, AND TECHNICAL 
                               ASSISTANCE

``SEC. 201. RESEARCH GRANTS.

    ``(a) In General.--The Secretary, in consultation with appropriate 
Federal officials and recognized experts in the field, shall award 
grants or contracts for the conduct of research in accordance with 
subsection (b).
    ``(b) Research.--Research projects to be conducted using amounts 
received under this section--
        ``(1) shall be designed to provide information to better 
    protect children from abuse or neglect and to improve the well 
    being of abused or neglected children, with at least a portion of 
    any such research conducted under a project being field initiated;
        ``(2) shall at a minimum, focus on--
            ``(A) the nature and scope of child abuse and neglect;
            ``(B) the causes, prevention, assessment, identification, 
        treatment, cultural and socio-economic distinctions, and the 
        consequences of child abuse and neglect;
            ``(C) appropriate, effective and culturally sensitive 
        investigative, administrative, and judicial procedures with 
        respect to cases of child abuse; and
            ``(D) the national incidence of child abuse and neglect, 
        including--
                ``(i) the extent to which incidents of child abuse are 
            increasing or decreasing in number and severity;
                ``(ii) the incidence of substantiated and 
            unsubstantiated reported child abuse cases;
                ``(iii) the number of substantiated cases that result 
            in a judicial finding of child abuse or neglect or related 
            criminal court convictions;
                ``(iv) the extent to which the number of 
            unsubstantiated, unfounded and false reported cases of 
            child abuse or neglect have contributed to the inability of 
            a State to respond effectively to serious cases of child 
            abuse or neglect;
                ``(v) the extent to which the lack of adequate 
            resources and the lack of adequate training of reporters 
            have contributed to the inability of a State to respond 
            effectively to serious cases of child abuse and neglect;
                ``(vi) the number of unsubstantiated, false, or 
            unfounded reports that have resulted in a child being 
            placed in substitute care, and the duration of such 
            placement;
                ``(vii) the extent to which unsubstantiated reports 
            return as more serious cases of child abuse or neglect;
                ``(viii) the incidence and prevalence of physical, 
            sexual, and emotional abuse and physical and emotional 
            neglect in substitute care;
                ``(ix) the incidence and outcomes of abuse allegations 
            reported within the context of divorce, custody, or other 
            family court proceedings, and the interaction between this 
            venue and the child protective services system; and
                ``(x) the cases of children reunited with their 
            families or receiving family preservation services that 
            result in subsequent substantiated reports of child abuse 
            and neglect, including the death of the child; and
        ``(3) may include the appointment of an advisory board to--
            ``(A) provide recommendations on coordinating Federal, 
        State, and local child abuse and neglect activities at the 
        State level with similar activities at the State and local 
        level pertaining to family violence prevention;
            ``(B) consider specific modifications needed in State laws 
        and programs to reduce the number of unfounded or 
        unsubstantiated reports of child abuse or neglect while 
        enhancing the ability to identify and substantiate legitimate 
        cases of abuse or neglect which place a child in danger; and
            ``(C) provide recommendations for modifications needed to 
        facilitate coordinated national and Statewide data collection 
        with respect to child protection and child welfare.

``SEC. 202. NATIONAL CLEARINGHOUSE FOR INFORMATION RELATING TO CHILD 
              ABUSE.

    ``(a) Establishment.--The Secretary shall, through the Department 
of Health and Human Services, or by one or more contracts of not less 
than 3 years duration provided through a competition, establish a 
national clearinghouse for information relating to child abuse.
    ``(b) Functions.--The Secretary shall, through the clearinghouse 
established by subsection (a)--
        ``(1) maintain, coordinate, and disseminate information on all 
    programs, including private programs, that show promise of success 
    with respect to the prevention, assessment, identification, and 
    treatment of child abuse and neglect;
        ``(2) maintain and disseminate information relating to--
            ``(A) the incidence of cases of child abuse and neglect in 
        the United States;
            ``(B) the incidence of such cases in populations determined 
        by the Secretary under section 105(a)(1) of the Child Abuse 
        Prevention, Adoption, and Family Services Act of 1988 (as such 
        section was in effect on the day before the date of enactment 
        of this Act); and
            ``(C) the incidence of any such cases related to alcohol or 
        drug abuse;
        ``(3) disseminate information related to data collected and 
    reported by States pursuant to section 103;
        ``(4) compile, analyze, and publish a summary of the research 
    conducted under section 201; and
        ``(5) solicit public comment on the components of such 
    clearinghouse.

``SEC. 203. GRANTS FOR DEMONSTRATION PROJECTS.

    ``(a) Awarding of General Grants.--The Secretary may make grants 
to, and enter into contracts with, public and nonprofit private 
agencies or organizations (or combinations of such agencies or 
organizations) for the purpose of developing, implementing, and 
operating time limited, demonstration programs and projects for the 
following purposes:
        ``(1) Innovative programs and projects.--The Secretary may 
    award grants to public agencies that demonstrate innovation in 
    responding to reports of child abuse and neglect including programs 
    of collaborative partnerships between the State child protective 
    service agency, community social service agencies and family 
    support programs, schools, churches and synagogues, and other 
    community agencies to allow for the establishment of a triage 
    system that--
            ``(A) accepts, screens and assesses reports received to 
        determine which such reports require an intensive intervention 
        and which require voluntary referral to another agency, program 
        or project;
            ``(B) provides, either directly or through referral, a 
        variety of community-linked services to assist families in 
        preventing child abuse and neglect; and
            ``(C) provides further investigation and intensive 
        intervention where the child's safety is in jeopardy.
        ``(2) Kinship care programs and projects.--The Secretary may 
    award grants to public entities to assist such entities in 
    developing or implementing procedures using adult relatives as the 
    preferred placement for children removed from their home, where 
    such relatives are determined to be capable of providing a safe 
    nurturing environment for the child and where, to the maximum 
    extent practicable, such relatives comply with relevant State child 
    protection standards.
        ``(3) Adoption opportunities.--The Secretary may award grants 
    to public entities to assist such entities in developing or 
    implementing programs to expand opportunities for the adoption of 
    children with special needs.
        ``(4) Family resource centers.--The Secretary may award grants 
    to public or nonprofit private entities to provide for the 
    establishment of family resource programs and support services 
    that--
            ``(A) develop, expand, and enhance Statewide networks of 
        community-based, prevention-focused centers, programs, or 
        services that provide comprehensive support for families;
            ``(B) promote the development of parental competencies and 
        capacities in order to increase family stability;
            ``(C) support the additional needs of families with 
        children with disabilities;
            ``(D) foster the development of a continuum of preventive 
        services for children and families through State and community-
        based collaborations and partnerships (both public and 
        private); and
            ``(E) maximize funding for the financing, planning, 
        community mobilization, collaboration, assessment, information 
        and referral, start-up, training and technical assistance, 
        information management, reporting, and evaluation costs for 
        establishing, operating, or expanding a Statewide network of 
        community-based, prevention-focused family resource and support 
        services.
        ``(5) Other innovative programs.--The Secretary may award 
    grants to public or private nonprofit organizations to assist such 
    entities in developing or implementing innovative programs and 
    projects that show promise of preventing and treating cases of 
    child abuse and neglect (such as Parents Anonymous).
    ``(b) Grants for Abandoned Infant Programs.--The Secretary may 
award grants to public and nonprofit private entities to assist such 
entities in developing or implementing procedures--
        ``(1) to prevent the abandonment of infants and young children, 
    including the provision of services to members of the natural 
    family for any condition that increases the probability of 
    abandonment of an infant or young child;
        ``(2) to identify and address the needs of abandoned infants 
    and young children;
        ``(3) to assist abandoned infants and young children to reside 
    with their natural families or in foster care, as appropriate;
        ``(4) to recruit, train, and retain foster families for 
    abandoned infants and young children;
        ``(5) to carry out residential care programs for abandoned 
    infants and young children who are unable to reside with their 
    families or to be placed in foster care;
        ``(6) to carry out programs of respite care for families and 
    foster families of infants and young children; and
        ``(7) to recruit and train health and social services personnel 
    to work with families, foster care families, and residential care 
    programs for abandoned infants and young children.
    ``(c) Evaluation.--In making grants for demonstration projects 
under this section, the Secretary shall require all such projects to be 
evaluated for their effectiveness. Funding for such evaluations shall 
be provided either as a stated percentage of a demonstration grant or 
as a separate grant entered into by the Secretary for the purpose of 
evaluating a particular demonstration project or group of projects.

``SEC. 204. TECHNICAL ASSISTANCE.

    ``(a) Child Abuse and Neglect.--
        ``(1) In general.--The Secretary shall provide technical 
    assistance under this title to States to assist such States in 
    planning, improving, developing, and carrying out programs and 
    activities relating to the prevention, assessment identification, 
    and treatment of child abuse and neglect.
        ``(2) Evaluation.--Technical assistance provided under 
    paragraph (1) may include an evaluation or identification of--
            ``(A) various methods and procedures for the investigation, 
        assessment, and prosecution of child physical and sexual abuse 
        cases;
            ``(B) ways to mitigate psychological trauma to the child 
        victim; and
            ``(C) effective programs carried out by the States under 
        this Act.
    ``(b) Adoption Opportunities.--The Secretary shall provide, 
directly or by grant to or contract with public or private nonprofit 
agencies or organizations--
        ``(1) technical assistance and resource and referral 
    information to assist State or local governments with termination 
    of parental rights issues, in recruiting and retaining adoptive 
    families, in the successful placement of children with special 
    needs, and in the provision of pre- and post-placement services, 
    including post-legal adoption services; and
        ``(2) other assistance to help State and local governments 
    replicate successful adoption-related projects from other areas in 
    the United States.

``SEC. 205. TRAINING RESOURCES.

    ``(a) Training Programs.--The Secretary may award grants to public 
or private non-profit organizations--
        ``(1) for the training of professional and paraprofessional 
    personnel in the fields of medicine, law, education, law 
    enforcement, social work, and other relevant fields who are engaged 
    in, or intend to work in, the field of prevention, identification, 
    and treatment of child abuse and neglect, including the links 
    between domestic violence and child abuse;
        ``(2) to provide culturally specific instruction in methods of 
    protecting children from child abuse and neglect to children and to 
    persons responsible for the welfare of children, including parents 
    of and persons who work with children with disabilities; and
        ``(3) to improve the recruitment, selection, and training of 
    volunteers serving in private and public nonprofit children, youth 
    and family service organizations in order to prevent child abuse 
    and neglect through collaborative analysis of current recruitment, 
    selection, and training programs and development of model programs 
    for dissemination and replication nationally.
    ``(b) Dissemination of Information.--The Secretary may provide for 
and disseminate information relating to various training resources 
available at the State and local level to--
        ``(1) individuals who are engaged, or who intend to engage, in 
    the prevention, identification, assessment, and treatment of child 
    abuse and neglect; and
        ``(2) appropriate State and local officials, including 
    prosecutors, to assist in training law enforcement, legal, 
    judicial, medical, mental health, education, and child welfare 
    personnel in appropriate methods of interacting during 
    investigative, administrative, and judicial proceedings with 
    children who have been subjected to abuse.

``SEC. 206. APPLICATIONS AND AMOUNTS OF GRANTS.

    ``(a) Requirement of Application.--The Secretary may not make a 
grant to a State or other entity under this title unless--
        ``(1) an application for the grant is submitted to the 
    Secretary;
        ``(2) with respect to carrying out the purpose for which the 
    grant is to be made, the application provides assurances of 
    compliance satisfactory to the Secretary; and
        ``(3) the application otherwise is in such form, is made in 
    such manner, and contains such agreements, assurances, and 
    information as the Secretary determines to be necessary to carry 
    out this title.
    ``(b) Amount of Grant.--The Secretary shall determine the amount of 
a grant to be awarded under this title.

``SEC. 207. PEER REVIEW FOR GRANTS.

    ``(a) Establishment of Peer Review Process.--
        ``(1) In general.--The Secretary shall, in consultation with 
    experts in the field and other Federal agencies, establish a 
    formal, rigorous, and meritorious peer review process for purposes 
    of evaluating and reviewing applications for grants under this 
    title and determining the relative merits of the projects for which 
    such assistance is requested. The purpose of this process is to 
    enhance the quality and usefulness of research in the field of 
    child abuse and neglect.
        ``(2) Requirements for members.--In establishing the process 
    required by paragraph (1), the Secretary shall appoint to the peer 
    review panels only members who are experts in the field of child 
    abuse and neglect or related disciplines, with appropriate 
    expertise in the application to be reviewed, and who are not 
    individuals who are officers or employees of the Administration for 
    Children and Families. The panels shall meet as often as is 
    necessary to facilitate the expeditious review of applications for 
    grants and contracts under this title, but may not meet less than 
    once a year. The Secretary shall ensure that the peer review panel 
    utilizes scientifically valid review criteria and scoring 
    guidelines for review committees.
    ``(b) Review of Applications for Assistance.--Each peer review 
panel established under subsection (a)(1) that reviews any application 
for a grant shall--
        ``(1) determine and evaluate the merit of each project 
    described in such application;
        ``(2) rank such application with respect to all other 
    applications it reviews in the same priority area for the fiscal 
    year involved, according to the relative merit of all of the 
    projects that are described in such application and for which 
    financial assistance is requested; and
        ``(3) make recommendations to the Secretary concerning whether 
    the application for the project shall be approved.
The Secretary shall award grants under this title on the basis of 
competitive review.
    ``(c) Notice of Approval.--
        ``(1) In general.--The Secretary shall provide grants under 
    this title from among the projects which the peer review panels 
    established under subsection (a)(1) have determined to have merit.
        ``(2) Requirement of explanation.--In the instance in which the 
    Secretary approves an application for a program under this title 
    without having approved all applications ranked above such 
    application, the Secretary shall append to the approved application 
    a detailed explanation of the reasons relied on for approving the 
    application and for failing to approve each pending application 
    that is superior in merit.

``SEC. 208. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.

    ``(a) In General.--The Secretary shall conduct a national study 
based on random samples of children who are at risk of child abuse or 
neglect, or are determined by States to have been abused or neglected, 
and such other research as may be necessary.
    ``(b) Requirements.--The study required by subsection (a) shall--
        ``(1) have a longitudinal component; and
        ``(2) yield data reliable at the State level for as many States 
    as the Secretary determines is feasible.
    ``(c) Preferred Contents.--In conducting the study required by 
subsection (a), the Secretary should--
        ``(1) collect data on the child protection programs of 
    different small States or (different groups of such States) in 
    different years to yield an occasional picture of the child 
    protection programs of such States;
        ``(2) carefully consider selecting the sample from cases of 
    confirmed abuse or neglect; and
        ``(3) follow each case for several years while obtaining 
    information on, among other things--
            ``(A) the type of abuse or neglect involved;
            ``(B) the frequency of contact with State or local 
        agencies;
            ``(C) whether the child involved has been separated from 
        the family, and, if so, under what circumstances;
            ``(D) the number, type, and characteristics of out-of-home 
        placements of the child; and
            ``(E) the average duration of each placement.
    ``(d) Reports.--
        ``(1) In general.--From time to time, the Secretary shall 
    prepare reports summarizing the results of the study required by 
    subsection (a).
        ``(2) Availability.--The Secretary shall make available to the 
    public any report prepared under paragraph (1), in writing or in 
    the form of an electronic data tape.
        ``(3) Authority to charge fee.--The Secretary may charge and 
    collect a fee for the furnishing of reports under paragraph (2).
        ``(4) Funding.--The Secretary shall carry out this section 
    using amounts made available under section 428 of the Social 
    Security Act.

                    ``TITLE III--GENERAL PROVISIONS

``SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Title I.--There are authorized to be appropriated to carry 
out title I, $230,000,000 for fiscal year 1996, and such sums as may be 
necessary for each of the fiscal years 1997 through 2002.
    ``(b) Title II.--
        ``(1) In general.--Of the amount appropriated under subsection 
    (a) for a fiscal year, the Secretary shall make available 12 
    percent of such amount to carry out title II (except for sections 
    203 and 208).
        ``(2) Grants for demonstration projects.--Of the amount made 
    available under paragraph (1) for a fiscal year, the Secretary 
    shall make available not less than 40 percent of such amount to 
    carry out section 203.
    ``(c) Indian Tribes.--Of the amount appropriated under subsection 
(a) for a fiscal year, the Secretary shall make available 1 percent of 
such amount to provide grants and contracts to Indian tribes and Tribal 
Organizations.
    ``(d) Availability of Appropriations.--Amounts appropriated under 
subsection (a) shall remain available until expended.

``SEC. 302. GRANTS TO STATES FOR PROGRAMS RELATING TO THE INVESTIGATION 
              AND PROSECUTION OF CHILD ABUSE AND NEGLECT CASES.

    ``(a) Grants to States.--The Secretary, in consultation with the 
Attorney General, is authorized to make grants to the States for the 
purpose of assisting States in developing, establishing, and operating 
programs designed to improve--
        ``(1) the handling of child abuse and neglect cases, 
    particularly cases of child sexual abuse and exploitation, in a 
    manner which limits additional trauma to the child victim;
        ``(2) the handling of cases of suspected child abuse or neglect 
    related fatalities; and
        ``(3) the investigation and prosecution of cases of child abuse 
    and neglect, particularly child sexual abuse and exploitation.
    ``(b) Eligibility Requirements.--In order for a State to qualify 
for assistance under this section, such State shall--
        ``(1) be an eligible State under section 102;
        ``(2) establish a task force as provided in subsection (c);
        ``(3) fulfill the requirements of subsection (d);
        ``(4) submit annually an application to the Secretary at such 
    time and containing such information and assurances as the 
    Secretary considers necessary, including an assurance that the 
    State will--
            ``(A) make such reports to the Secretary as may reasonably 
        be required; and
            ``(B) maintain and provide access to records relating to 
        activities under subsection (a); and
        ``(5) submit annually to the Secretary a report on the manner 
    in which assistance received under this program was expended 
    throughout the State, with particular attention focused on the 
    areas described in paragraphs (1) through (3) of subsection (a).
    ``(c) State Task Forces.--
        ``(1) General rule.--Except as provided in paragraph (2), a 
    State requesting assistance under this section shall establish or 
    designate, and maintain, a State multidisciplinary task force on 
    children's justice (hereafter in this section referred to as `State 
    task force') composed of professionals with knowledge and 
    experience relating to the criminal justice system and issues of 
    child physical abuse, child neglect, child sexual abuse and 
    exploitation, and child maltreatment related fatalities. The State 
    task force shall include--
            ``(A) individuals representing the law enforcement 
        community;
            ``(B) judges and attorneys involved in both civil and 
        criminal court proceedings related to child abuse and neglect 
        (including individuals involved with the defense as well as the 
        prosecution of such cases);
            ``(C) child advocates, including both attorneys for 
        children and, where such programs are in operation, court 
        appointed special advocates;
            ``(D) health and mental health professionals;
            ``(E) individuals representing child protective service 
        agencies;
            ``(F) individuals experienced in working with children with 
        disabilities;
            ``(G) parents; and
            ``(H) representatives of parents' groups.
        ``(2) Existing task force.--As determined by the Secretary, a 
    State commission or task force established after January 1, 1983, 
    with substantially comparable membership and functions, may be 
    considered the State task force for purposes of this subsection.
    ``(d) State Task Force Study.--Before a State receives assistance 
under this section, and at 3 year intervals thereafter, the State task 
force shall comprehensively--
        ``(1) review and evaluate State investigative, administrative 
    and both civil and criminal judicial handling of cases of child 
    abuse and neglect, particularly child sexual abuse and 
    exploitation, as well as cases involving suspected child 
    maltreatment related fatalities and cases involving a potential 
    combination of jurisdictions, such as interstate, Federal-State, 
    and State-Tribal; and
        ``(2) make policy and training recommendations in each of the 
    categories described in subsection (e).
The task force may make such other comments and recommendations as are 
considered relevant and useful.
    ``(e) Adoption of State Task Force Recommendations.--
        ``(1) General rule.--Subject to the provisions of paragraph 
    (2), before a State receives assistance under this section, a State 
    shall adopt recommendations of the State task force in each of the 
    following categories--
            ``(A) investigative, administrative, and judicial handling 
        of cases of child abuse and neglect, particularly child sexual 
        abuse and exploitation, as well as cases involving suspected 
        child maltreatment related fatalities and cases involving a 
        potential combination of jurisdictions, such as interstate, 
        Federal-State, and State-Tribal, in a manner which reduces the 
        additional trauma to the child victim and the victim's family 
        and which also ensures procedural fairness to the accused;
            ``(B) experimental, model and demonstration programs for 
        testing innovative approaches and techniques which may improve 
        the prompt and successful resolution of civil and criminal 
        court proceedings or enhance the effectiveness of judicial and 
        administrative action in child abuse and neglect cases, 
        particularly child sexual abuse and exploitation cases, 
        including the enhancement of performance of court-appointed 
        attorneys and guardians ad litem for children; and
            ``(C) reform of State laws, ordinances, regulations, 
        protocols and procedures to provide comprehensive protection 
        for children from abuse, particularly child sexual abuse and 
        exploitation, while ensuring fairness to all affected persons.
        ``(2) Exemption.--As determined by the Secretary, a State shall 
    be considered to be in fulfillment of the requirements of this 
    subsection if--
            ``(A) the State adopts an alternative to the 
        recommendations of the State task force, which carries out the 
        purpose of this section, in each of the categories under 
        paragraph (1) for which the State task force's recommendations 
        are not adopted; or
            ``(B) the State is making substantial progress toward 
        adopting recommendations of the State task force or a 
        comparable alternative to such recommendations.
    ``(f) Funds Available.--For grants under this section, the 
Secretary shall use the amount authorized by section 1404A of the 
Victims of Crime Act of 1984.

``SEC. 303. TRANSITIONAL PROVISION.

    ``A State or other entity that has a grant, contract, or 
cooperative agreement in effect, on the date of enactment of this Act, 
under the Family Resource and Support Program, the Community-Based 
Family Resource Program, the Family Support Center Program, the 
Emergency Child Abuse Prevention Grant Program, or the Temporary Child 
Care for Children with Disabilities and Crisis Nurseries Programs shall 
continue to receive funds under such grant, contract, or cooperative 
agreement, subject to the original terms under which such funds were 
provided, through the end of the applicable grant, contract, or 
agreement cycle.

``SEC. 304. RULE OF CONSTRUCTION.

    ``(a) In General.--Nothing in this Act, or in part B of title IV of 
the Social Security Act, shall be construed--
        ``(1) as establishing a Federal requirement that a parent or 
    legal guardian provide a child any medical service or treatment 
    against the religious beliefs of the parent or legal guardian; and
        ``(2) to require that a State find, or to prohibit a State from 
    finding, abuse or neglect in cases in which a parent or legal 
    guardian relies solely or partially upon spiritual means rather 
    than medical treatment, in accordance with the religious beliefs of 
    the parent or legal guardian.
    ``(b) State Requirement.--Notwithstanding subsection (a), a State 
shall have in place authority under State law to permit the child 
protective service system of the State to pursue any legal remedies, 
including the authority to initiate legal proceedings in a court of 
competent jurisdiction, to provide medical care or treatment for a 
child when such care or treatment is necessary to prevent or remedy 
serious harm to the child, or to prevent the withholding of medically 
indicated treatment from children with life threatening conditions. 
Except with respect to the withholding of medically indicated 
treatments from disabled infants with life threatening conditions, case 
by case determinations concerning the exercise of the authority of this 
subsection shall be within the sole discretion of the State.

``SEC. 305. REMOVAL OF BARRIERS TO INTERETHNIC ADOPTION.

    ``(a) Purpose.--The purpose of this section is to decrease the 
length of time that children wait to be adopted and to prevent 
discrimination in the placement of children on the basis of race, 
color, or national origin.
    ``(b) Multiethnic Placements.--
        ``(1) Prohibition.--A State or other entity that receives funds 
    from the Federal Government and is involved in adoption or foster 
    care placements may not--
            ``(A) deny to any person the opportunity to become an 
        adoptive or a foster parent, on the basis of the race, color, 
        or national origin of the person, or of the child, involved; or
            ``(B) delay or deny the placement of a child for adoption 
        or into foster care, or otherwise discriminate in making a 
        placement decision, on the basis of the race, color, or 
        national origin of the adoptive or foster parent, or the child, 
        involved.
        ``(2) Penalties.--
            ``(A) State violators.--
                ``(i) In general.--If the Secretary determines that a 
            State is in violation of paragraph (1), the Secretary shall 
            notify the State of such violation. The State shall have 90 
            days from the date on which such notice is received to 
            correct such violation. During such 90-day period, the 
            Secretary shall provide technical assistance to the State 
            to assist such State in complying with the requirements of 
            paragraph (1).
                ``(ii) Failure to comply.--If after the expiration of 
            the 90-day period described in clause (i) the Secretary 
            determines that the State continues to be in violation of 
            paragraph (1), the Secretary shall reduce the amount due to 
            the State for the succeeding fiscal year under the block 
            grant program under part B of title IV of the Social 
            Security Act by 10 percent.
            ``(B) Private violators.--Any other entity that violates 
        paragraph (1) during a period shall remit to the Secretary all 
        funds that were paid to the entity during the period by a State 
        from funds provided under this part.
        ``(3) Private cause of action.--
            ``(A) In general.--Any individual who is aggrieved by a 
        violation of paragraph (1) by a State or other entity may bring 
        an action seeking relief in any United States district court.
            ``(B) Statute of limitations.--An action under this 
        paragraph may not be brought more than 2 years after the date 
        the alleged violation occurred.''.

SEC. 752. REAUTHORIZATIONS.

    (a) Missing Children's Assistance Act.--Section 408 of the Missing 
Children's Assistance Act (42 U.S.C. 5777) is amended--
        (1) by striking ``To'' and inserting ``(a) In General.--''
        (2) by striking ``and 1996'' and inserting ``1996, and 1997''; 
    and
        (3) by adding at the end thereof the following new subsection:
    ``(b) Evaluation.--The Administrator shall use not more than 5 
percent of the amount appropriated for a fiscal year under subsection 
(a) to conduct an evaluation of the effectiveness of the programs and 
activities established and operated under this title.''.
    (b) Victims of Child Abuse Act of 1990.--Section 214B of the 
Victims of Child Abuse Act of 1990 (42 U.S.C. 13004) is amended--
        (1) in subsection (a)(2), by striking ``and 1996'' and 
    inserting ``1996, and 1997''; and
        (2) in subsection (b)(2), by striking ``and 1996'' and 
    inserting ``1996 and 1997''.

SEC. 753. REPEALS.

    (a) In General.--The following provisions of law are repealed:
        (1) Title II of the Child Abuse Prevention and Treatment and 
    Adoption Reform Act of 1978 (42 U.S.C. 5111 et seq.).
        (2) The Abandoned Infants Assistance Act of 1988 (42 U.S.C. 670 
    note).
        (3) The Temporary Child Care for Children with Disabilities and 
    Crisis Nurseries Act of 1986 (42 U.S.C. 5117 et seq.).
        (4) Section 553 of the Howard M. Metzenbaum Multiethnic 
    Placement Act of 1994 (42 U.S.C. 5115a).
        (5) Subtitle F of title VII of the Stewart B. McKinney Homeless 
    Assistance Act (42 U.S.C. 11481 et seq.).
    (b) Conforming Amendments.--
        (1) Recommended legislation.--After consultation with the 
    appropriate committees of the Congress and the Director of the 
    Office of Management and Budget, the Secretary of Health and Human 
    Services shall prepare and submit to the Congress a legislative 
    proposal in the form of an implementing bill containing technical 
    and conforming amendments to reflect the repeals made by this 
    section.
        (2) Submission to congress.--Not later than 6 months after the 
    date of enactment of this chapter, the Secretary of Health and 
    Human Services shall submit the implementing bill referred to under 
    paragraph (1).

                         TITLE VIII--CHILD CARE

SEC. 801. SHORT TITLE AND REFERENCES.

    (a) Short Title.--This title may be cited as the ``Child Care and 
Development Block Grant Amendments of 1995''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this title an amendment or repeal 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 a section or other provision of the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et 
seq.).

SEC. 802. GOALS.

    (a) Goals.--Section 658A (42 U.S.C. 9801 note) is amended--
        (1) in the section heading by inserting ``and goals'' after 
    ``title'';
        (2) by inserting ``(a) Short Title.--'' before ``This''; and
        (3) by adding at the end the following:
    ``(b) Goals.--The goals of this subchapter are--
        ``(1) to allow each State maximum flexibility in developing 
    child care programs and policies that best suit the needs of 
    children and parents within such State;
        ``(2) to promote parental choice to empower working parents to 
    make their own decisions on the child care that best suits their 
    family's needs;
        ``(3) to encourage States to provide consumer education 
    information to help parents make informed choices about child care;
        ``(4) to assist States to provide child care to parents trying 
    to achieve independence from public assistance; and
        ``(5) to assist States in implementing the health, safety, 
    licensing, and registration standards established in State 
    regulations.''.
    SEC. 803. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT 
      AUTHORITY.
    (a) In General.--Section 658B (42 U.S.C. 9858) is amended to read 
as follows:

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this 
subchapter $1,000,000,000 for each of the fiscal years 1996 through 
2002.''.
    (b) Social Security Act.--Part A of title IV of the Social Security 
Act (as amended by section 103) is amended--
        (1) by redesignating section 418 as section 419; and
        (2) by inserting after section 417, the following new section:

``SEC. 418. FUNDING FOR CHILD CARE.

    ``(a) General Child Care Entitlement.--
        ``(1) General entitlement.--Subject to the amount appropriated 
    under paragraph (3), each State shall, for the purpose of providing 
    child care assistance, be entitled to payments under a grant under 
    this subsection for a fiscal year in an amount equal to--
            ``(A) the sum of the total amount required to be paid to 
        the State under former section 403 for fiscal year 1994 with 
        respect to amounts expended for child care under section--
                ``(i) 402(g) of this Act (as such section was in effect 
            before October 1, 1995); and
                ``(ii) 403(i) of this Act (as so in effect); or
            ``(B) the average of the total amounts required to be paid 
        to the State for fiscal years 1992 through 1994 under the 
        sections referred to in subparagraph (A);
    whichever is greater.
        ``(2) Remainder.--
            ``(A) Grants.--The Secretary shall use any amounts 
        appropriated for a fiscal year under paragraph (3), and 
        remaining after the reservation described in paragraph (5) and 
        after grants are awarded under paragraph (1), to make grants to 
        States under this paragraph.
            ``(B) Amount.--Subject to subparagraph (C), the amount of a 
        grant awarded to a State for a fiscal year under this paragraph 
        shall be based on the formula used for determining the amount 
        of Federal payments to the State under section 403(n) (as such 
        section was in effect before October 1, 1995).
            ``(C) Matching requirement.--The Secretary shall pay to 
        each eligible State in a fiscal year an amount, under a grant 
        under subparagraph (A), equal to the Federal medical assistance 
        percentage for such State for fiscal year 1994 (as defined in 
        section 1905(b)) of so much of the expenditures by the State 
        for child care in such year as exceed the State set-aside for 
        such State under subparagraph (A) for such year and the amount 
        of State expenditures in fiscal year 1994 that equal the non-
        Federal share for the programs described in subparagraphs (A), 
        (B) and (C) of paragraph (1).
        ``(3) Appropriation.--There are authorized to be appropriated, 
    and there are appropriated, to carry out this section--
            ``(A) $1,300,000,000 for fiscal year 1997;
            ``(B) $1,400,000,000 for fiscal year 1998;
            ``(C) $1,500,000,000 for fiscal year 1999;
            ``(D) $1,700,000,000 for fiscal year 2000;
            ``(E) $1,900,000,000 for fiscal year 2001; and
            ``(F) $2,050,000,000 for fiscal year 2002.
        ``(4) Redistribution.--With respect to any fiscal year, if the 
    Secretary determines that amounts under any grant awarded to a 
    State under this subsection for such fiscal year will not be used 
    by such State for carrying out the purpose for which the grant is 
    made, the Secretary shall make suchamounts available for carrying 
out such purpose to 1 or more other States which apply for such funds 
to the extent the Secretary determines that such other States will be 
able to use such additional amounts for carrying out such purpose. Such 
available amounts shall be redistributed to a State pursuant to section 
402(i) (as such section was in effect before October 1, 1995) by 
substituting `the number of children residing in all States applying 
for such funds' for `the number of children residing in the United 
States in the second preceding fiscal year'. Any amount made available 
to a State from an appropriation for a fiscal year in accordance with 
the preceding sentence shall, for purposes of this part, be regarded as 
part of such State's payment (as determined under this subsection) for 
such year.
        ``(5) Indian tribes.--The Secretary shall reserve not more than 
    1 percent of the aggregate amount appropriated to carry out this 
    section in each fiscal year for payments to Indian tribes and 
    tribal organizations.
    ``(b) Use of Funds.--
        ``(1) In general.--Amounts received by a State under this 
    section shall only be used to provide child care assistance.
        ``(2) Use for certain populations.--A State shall ensure that 
    not less than 70 percent of the total amount of funds received by 
    the State in a fiscal year under this section are used to provide 
    child care assistance to families who are receiving assistance 
    under a State program under this part, families who are attempting 
    through work activities to transition off of such assistance 
    program, and families who are at risk of becoming dependent on such 
    assistance program.
    ``(c) Application of Child Care and Development Block Grant Act of 
1990.--Notwithstanding any other provision of law, amounts provided to 
a State under this section shall be transferred to the lead agency 
under the Child Care and Development Block Grant Act of 1990, 
integrated by the State into the programs established by the State 
under such Act, and be subject to requirements and limitations of such 
Act.
    ``(d) Definition.--As used in this section, the term `State' means 
each of the 50 States or the District of Columbia.''.

SEC. 804. LEAD AGENCY.

    Section 658D(b) (42 U.S.C. 9858b(b)) is amended--
        (1) in paragraph (1)--
            (A) in subparagraph (A), by striking ``State'' the first 
        place that such appears and inserting ``governmental or 
        nongovernmental''; and
            (B) in subparagraph (C), by inserting ``with sufficient 
        time and Statewide distribution of the notice of such 
        hearing,'' after ``hearing in the State''; and
        (2) in paragraph (2), by striking the second sentence.

SEC. 805. APPLICATION AND PLAN.

    Section 658E (42 U.S.C. 9858c) is amended--
        (1) in subsection (b)--
            (A) by striking ``implemented--'' and all that follows 
        through ``(2)'' and inserting ``implemented''; and
            (B) by striking ``for subsequent State plans'';
        (2) in subsection (c)--
            (A) in paragraph (2)--
                (i) in subparagraph (A)--

                    (I) in clause (i) by striking ``, other than 
                through assistance provided under paragraph (3)(C),''; 
                and
                    (II) by striking ``except'' and all that follows 
                through ``1992'', and inserting ``and provide a 
                detailed description of the procedures the State will 
                implement to carry out the requirements of this 
                subparagraph'';

                (ii) in subparagraph (B)--

                    (I) by striking ``Provide assurances'' and 
                inserting ``Certify''; and
                    (II) by inserting before the period at the end 
                ``and provide a detailed description of such 
                procedures'';

                (iii) in subparagraph (C)--

                    (I) by striking ``Provide assurances'' and 
                inserting ``Certify''; and
                    (II) by inserting before the period at the end 
                ``and provide a detailed description of how such record 
                is maintained and is made available'';

                (iv) by amending subparagraph (D) to read as follows:
            ``(D) Consumer education information.--Certify that the 
        State will collect and disseminate to parents of eligible 
        children and the general public, consumer education information 
        that will promote informed child care choices.'';
                (v) in subparagraph (E), to read as follows:
            ``(E) Compliance with state licensing requirements.--
                ``(i) In general.--Certify that the State has in effect 
            licensing requirements applicable to child care services 
            provided within the State, and provide a detailed 
            description of such requirements and of how such 
            requirements are effectively enforced. Nothing in the 
            preceding sentence shall be construed to require that 
            licensing requirements be applied to specific types of 
            providers of child care services.
                ``(ii) Indian tribes and tribal organizations.--In lieu 
            of any licensing and regulatory requirements applicable 
            under State and local law, the Secretary, in consultation 
            with Indian tribes and tribal organizations, shall develop 
            minimum child care standards (that appropriately reflect 
            tribal needs and available resources) that shall be 
            applicable to Indian tribes and tribal organization 
            receiving assistance under this subchapter.'';
                (vi) by striking subparagraph (F);
                (vii) in subparagraph (G)--

                    (I) by redesignating such subparagraph as 
                subparagraph (F);
                    (II) by striking ``Provide assurances'' and 
                inserting ``Certify''; and
                    (III) by striking ``as described in subparagraph 
                (F)''; and

                (viii) by striking subparagraphs (H), (I), and (J) and 
            inserting the following:
            ``(G) Meeting the needs of certain populations.--
        Demonstrate the manner in which the State will meet the 
        specific child care needs of families who are receiving 
        assistance under a State program under part A of title IV of 
        the Social Security Act, families who are attempting through 
        work activities to transition off of such assistance program, 
        and families who are at risk of becoming dependent on such 
        assistance program.'';
            (B) in paragraph (3)--
                (i) in subparagraph (A), by striking ``(B) and (C)'' 
            and inserting ``(B) through (D)'';
                (ii) in subparagraph (B)--

                    (I) by striking ``.--Subject to the reservation 
                contained in subparagraph (C), the'' and inserting 
                ``and related activities.--The'';
                    (II) in clause (i) by striking ``; and'' at the end 
                and inserting a period;
                    (III) by striking ``for--'' and all that follows 
                through ``section 658E(c)(2)(A)'' and inserting ``for 
                child care services on sliding fee scale basis, 
                activities that improve the quality or availability of 
                such services, and any other activity that the State 
                deems appropriate to realize any of the goals specified 
                in paragraphs (2) through (5) of section 658A(b)''; and
                    (IV) by striking clause (ii);

                (iii) by amending subparagraph (C) to read as follows:
            ``(C) Limitation on administrative costs.--Not more than 3 
        percent of the aggregate amount of funds available to the State 
        to carry out this subchapter by a State in each fiscal year may 
        be expended for administrative costs incurred by such State to 
        carry out all of its functions and duties under this 
        subchapter. As used in the preceding sentence, the term 
        `administrative costs' shall not include the costs of providing 
        direct services.''; and
                (iv) by adding at the end thereof the following:
            ``(D) Assistance for certain families.--A State shall 
        ensure that a substantial portion of the amounts available 
        (after the State has complied with the requirement of section 
        418(b)(2) of the Social Security Act with respect to each of 
        the fiscal years 1997 through 2002) to the State to carry out 
        activities this subchapter in each fiscal year is used to 
        provide assistance to low-income working families other than 
        families described in paragraph (2)(F).''; and
            (C) in paragraph (4)(A)--
                (i) by striking ``provide assurances'' and inserting 
            ``certify'';
                (ii) in the first sentence by inserting ``and shall 
            provide a summary of the facts relied on by the State to 
            determine that such rates are sufficient to ensure such 
            access'' before the period; and
                (iii) by striking the last sentence.

SEC. 806. LIMITATION ON STATE ALLOTMENTS.

    Section 658F(b) (42 U.S.C. 9858d(b)) is amended--
        (1) in paragraph (1), by striking ``No'' and inserting ``Except 
    as provided for in section 658O(c)(6), no''; and
        (2) in paragraph (2), by striking ``referred to in section 
    658E(c)(2)(F)''.

SEC. 807. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

    Section 658G (42 U.S.C. 9858e) is amended to read as follows:

``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

    ``A State that receives funds to carry out this subchapter for a 
fiscal year, shall use not less than 3 percent of the amount of such 
funds for activities that are designed to provide comprehensive 
consumer education to parents and the public, activities that increase 
parental choice, and activities designed to improve the quality and 
availability of child care (such as resource and referral services).''.
    SEC. 808. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE- AND 
      AFTER-SCHOOL CARE REQUIREMENT.
    Section 658H (42 U.S.C. 9858f) is repealed.

SEC. 809. ADMINISTRATION AND ENFORCEMENT.

    Section 658I(b) (42 U.S.C. 9858g(b)) is amended--
        (1) in paragraph (1), by striking ``, and shall have'' and all 
    that follows through ``(2)''; and
        (2) in the matter following clause (ii) of paragraph (2)(A), by 
    striking ``finding and that'' and all that follows through the 
    period and inserting ``finding and shall require that the State 
    reimburse the Secretary for any funds that were improperly expended 
    for purposes prohibited or not authorized by this subchapter, that 
    the Secretary deduct from the administrative portion of the State 
    allotment for the following fiscal year an amount that is less than 
    or equal to any improperly expended funds, or a combination of such 
    options.''.

SEC. 810. PAYMENTS.

    Section 658J(c) (42 U.S.C. 9858h(c)) is amended by striking 
``expended'' and inserting ``obligated''.

SEC. 811. ANNUAL REPORT AND AUDITS.

    Section 658K (42 U.S.C. 9858i) is amended--
        (1) in the section heading by striking ``annual report'' and 
    inserting ``reports'';
        (2) in subsection (a), to read as follows:
    ``(a) Reports.--
        ``(1) Collection of information by states.--
            ``(A) In general.--A State that receives funds to carry out 
        this subchapter shall collect the information described in 
        subparagraph (B) on a monthly basis.
            ``(B) Required information.--The information required under 
        this subparagraph shall include, with respect to a family unit 
        receiving assistance under this subchapter information 
        concerning--
                ``(i) family income;
                ``(ii) county of residence;
                ``(iii) the gender, race, and age of children receiving 
            such assistance;
                ``(iv) whether the family includes only 1 parent;
                ``(v) the sources of family income, including the 
            amount obtained from (and separately identified)--

                    ``(I) employment, including self-employment;
                    ``(II) cash or other assistance under part A of 
                title IV of the Social Security Act;
                    ``(III) housing assistance;
                    ``(IV) assistance under the Food Stamp Act of 1977; 
                and
                    ``(V) other assistance programs;

                ``(vi) the number of months the family has received 
            benefits;
                ``(vii) the type of child care in which the child was 
            enrolled (such as family child care, home care, or center-
            based child care);
                ``(viii) whether the child care provider involved was a 
            relative;
                ``(ix) the cost of child care for such families; and
                ``(x) the average hours per week of such care;
        during the period for which such information is required to be 
        submitted.
            ``(C) Submission to secretary.--A State described in 
        subparagraph (A) shall, on a quarterly basis, submit the 
        information required to be collected under subparagraph (B) to 
        the Secretary.
            ``(D) Sampling.--The Secretary may disapprove the 
        information collected by a State under this paragraph if the 
        State uses sampling methods to collect such information.
        ``(2) Biannual reports.--Not later than December 31, 1997, and 
    every 6 months thereafter, a State described in paragraph (1)(A) 
    shall prepare and submit to the Secretary a report that includes 
    aggregate data concerning--
            ``(A) the number of child care providers that received 
        funding under this subchapter as separately identified based on 
        the types of providers listed in section 658P(5);
            ``(B) the monthly cost of child care services, and the 
        portion of such cost that is paid for with assistance provided 
        under this subchapter, listed by the type of child care 
        services provided;
            ``(C) the number of payments made by the State through 
        vouchers, contracts, cash, and disregards under public benefit 
        programs, listed by the type of child care services provided;
            ``(D) the manner in which consumer education information 
        was provided to parents and the number of parents to whom such 
        information was provided; and
            ``(E) the total number (without duplication) of children 
        and families served under this subchapter;
    during the period for which such report is required to be 
    submitted.''; and
        (2) in subsection (b)--
            (A) in paragraph (1) by striking ``a application'' and 
        inserting ``an application'';
            (B) in paragraph (2) by striking ``any agency administering 
        activities that receive'' and inserting ``the State that 
        receives''; and
            (C) in paragraph (4) by striking ``entitles'' and inserting 
        ``entitled''.

SEC. 812. REPORT BY THE SECRETARY.

    Section 658L (42 U.S.C. 9858j) is amended--
        (1) by striking ``1993'' and inserting ``1997'';
        (2) by striking ``annually'' and inserting ``biennially''; and
        (3) by striking ``Education and Labor'' and inserting 
    ``Economic and Educational Opportunities''.

SEC. 813. ALLOTMENTS.

    Section 658O (42 U.S.C. 9858m) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1)
                (i) by striking ``Possessions'' and inserting 
            ``possessions'';
                (ii) by inserting ``and'' after ``States,''; and
                (iii) by striking ``, and the Trust Territory of the 
            Pacific Islands''; and
            (B) in paragraph (2), by striking ``3 percent'' and 
        inserting ``1 percent'';
        (2) in subsection (c)--
            (A) in paragraph (5) by striking ``our'' and inserting 
        ``out''; and
            (B) by adding at the end thereof the following new 
        paragraph:
        ``(6) Construction or renovation of facilities.--
            ``(A) Request for use of funds.--An Indian tribe or tribal 
        organization may submit to the Secretary a request to use 
        amounts provided under this subsection for construction or 
        renovation purposes.
            ``(B) Determination.--With respect to a request submitted 
        under subparagraph (A), and except as provided in subparagraph 
        (C), upon a determination by the Secretary that adequate 
        facilities are not otherwise available to an Indian tribe or 
        tribal organization to enable such tribe or organization to 
        carry out child care programs in accordance with this 
        subchapter, and that the lack of such facilities will inhibit 
        the operation of such programs in the future, the Secretary may 
        permit the tribe or organization to use assistance provided 
        under this subsection to make payments for the construction or 
        renovation of facilities that will be used to carry out such 
        programs.
            ``(C) Limitation.--The Secretary may not permit an Indian 
        tribe or tribal organization to use amounts provided under this 
        subsection for construction or renovation if such use will 
        result in a decrease in the level of child care services 
        provided by the tribe or organization as compared to the level 
        of such services provided by the tribe or organization in the 
        fiscal year preceding the year for which the determination 
        under subparagraph (A) is being made.
            ``(D) Uniform procedures.--The Secretary shall develop and 
        implement uniform procedures for the solicitation and 
        consideration of requests under this paragraph.''; and
        (3) in subsection (e), by adding at the end thereof the 
    following new paragraph:
        ``(4) Indian tribes or tribal organizations.--Any portion of a 
    grant or contract made to an Indian tribe or tribal organization 
    under subsection (c) that the Secretary determines is not being 
    used in a manner consistent with the provision of this subchapter 
    in the period for which the grant or contract is made available, 
    shall be allotted by the Secretary to other tribes or organizations 
    that have submitted applications under subsection (c) in accordance 
    with their respective needs.''.

SEC. 814. DEFINITIONS.

    Section 658P (42 U.S.C. 9858n) is amended--
        (1) in paragraph (2), in the first sentence by inserting ``or 
    as a deposit for child care services if such a deposit is required 
    of other children being cared for by the provider'' after ``child 
    care services''; and
        (2) by striking paragraph (3);
        (3) in paragraph (4)(B), by striking ``75 percent'' and 
    inserting ``85 percent'';
        (4) in paragraph (5)(B)--
            (A) by inserting ``great grandchild, sibling (if such 
        provider lives in a separate residence),'' after 
        ``grandchild,'';
            (B) by striking ``is registered and''; and
            (C) by striking ``State'' and inserting ``applicable''.
        (5) by striking paragraph (10);
        (6) in paragraph (13)--
            (A) by inserting ``or'' after ``Samoa,''; and
            (B) by striking ``, and the Trust Territory of the Pacific 
        Islands'';
        (7) in paragraph (14)--
            (A) by striking ``The term'' and inserting the following:
            ``(A) In general.--The term''; and
            (B) by adding at the end thereof the following new 
        subparagraph:
            ``(B) Other organizations.--Such term includes a Native 
        Hawaiian Organization, as defined in section 4009(4) of the 
        Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary 
        School Improvement Amendments of 1988 (20 U.S.C. 4909(4)) and a 
        private nonprofitorganization established for the purpose of 
serving youth who are Indians or Native Hawaiians.''.

SEC. 815. REPEALS.

    (a) Child Development Associate Scholarship Assistance Act of 
1985.--Title VI of the Human Services Reauthorization Act of 1986 (42 
U.S.C. 10901-10905) is repealed.
    (b) State Dependent Care Development Grants Act.--Subchapter E of 
chapter 8 of subtitle A of title VI of the Omnibus Budget 
Reconciliation Act of 1981 (42 U.S.C. 9871-9877) is repealed.
    (c) Programs of National Significance.--Title X of the Elementary 
and Secondary Education Act of 1965, as amended by Public Law 103-382 
(108 Stat. 3809 et seq.), is amended--
        (1) in section 10413(a) by striking paragraph (4),
        (2) in section 10963(b)(2) by striking subparagraph (G), and
        (3) in section 10974(a)(6) by striking subparagraph (G).
    (d) Native Hawaiian Family-Based Education Centers.--Section 9205 
of the Native Hawaiian Education Act (Public Law 103-382; 108 Stat. 
3794) is repealed.

SEC. 816. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this title 
and the amendments made by this title shall take effect on October 1, 
1996.
    (b) Exception.--The amendment made by section 803(a) shall take 
effect on the date of enactment of this Act.

                   TITLE IX--CHILD NUTRITION PROGRAMS
                 Subtitle A--National School Lunch Act

SEC. 901. STATE DISBURSEMENT TO SCHOOLS.

    (a) In General.--Section 8 of the National School Lunch Act (42 
U.S.C. 1757) is amended--
        (1) in the third sentence, by striking ``Nothing'' and all that 
    follows through ``educational agency to'' and inserting ``The State 
    educational agency may'';
        (2) by striking the fourth, fifth, and eighth sentences;
        (3) by redesignating the first through sixth sentences, as 
    amended by paragraph (1), as subsections (a) through (f), 
    respectively;
        (4) in subsection (b), as redesignated by paragraph (3), by 
    striking ``the preceding sentence'' and inserting ``subsection 
    (a)''; and
        (5) in subsection (d), as redesignated by paragraph (3), by 
    striking ``Such food costs'' and inserting ``Use of funds paid to 
    States''.
    (b) Definition of Child.--Section 12(d) of the Act (42 U.S.C. 
1760(d)) is amended by adding at the end the following:
        ``(9) `child' includes an individual, regardless of age, who--
            ``(A) is determined by a State educational agency, in 
        accordance with regulations prescribed by the Secretary, to 
        have 1 or more mental or physical disabilities; and
            ``(B) is attending any institution, as defined in section 
        17(a), or any nonresidential public or nonprofit private school 
        of high school grade or under, for the purpose of participating 
        in a school program established for individuals with mental or 
        physical disabilities.
    No institution that is not otherwise eligible to participate in the 
    program under section 17 shall be considered eligible because of 
    this paragraph.''.

SEC. 902. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

    (a) Nutritional Standards.--Section 9(a) of the National School 
Lunch Act (42 U.S.C. 1758(a)) is amended--
        (1) in paragraph (2)--
            (A) by striking ``(2)(A) Lunches'' and inserting ``(2) 
        Lunches'';
            (B) by striking subparagraph (B); and
            (C) by redesignating clauses (i) and (ii) as subparagraphs 
        (A) and (B), respectively;
        (2) by striking paragraph (3); and
        (3) by redesignating paragraph (4) as paragraph (3).
    (b) Eligibility Guidelines.--Section 9(b) of the Act is amended--
        (1) in paragraph (2)--
            (A) by striking subparagraph (A); and
            (B) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively;
        (2) in paragraph (5), by striking the third sentence; and
        (3) in paragraph (6), by striking ``paragraph (2)(C)'' and 
    inserting ``paragraph (2)(B)''.
    (c) Utilization of Agricultural Commodities.--Section 9(c) of the 
Act is amended by striking the second, fourth, and sixth sentences.
    (d) Conforming Amendment.--The last sentence of section 9(d)(1) of 
the Act is amended by striking ``subsection (b)(2)(C)'' and inserting 
``subsection (b)(2)(B)''.
    (e) Nutritional Information.--Section 9(f) of the Act is amended--
        (1) by striking paragraph (1);
        (2) by striking ``(2)'';
        (3) by redesignating subparagraphs (A) through (D) as 
    paragraphs (1) through (4), respectively;
        (4) by striking paragraph (1), as redesignated by paragraph 
    (3), and inserting the following:
        ``(1) Nutritional requirements.--Except as provided in 
    paragraph (2), not later than the first day of the 1996-1997 school 
    year, schools that are participating in the school lunch or school 
    breakfast program shall serve lunches and breakfasts under the 
    program that--
            ``(A) are consistent with the goals of the most recent 
        Dietary Guidelines for Americans published under section 301 of 
        the National Nutrition Monitoring and Related Research Act of 
        1990 (7 U.S.C. 5341); and
            ``(B) provide, on the average over each week, at least--
                ``(i) with respect to school lunches, \1/3\ of the 
            daily recommended dietary allowance established by the Food 
            and Nutrition Board of the National Research Council of the 
            National Academy of Sciences; and
                ``(ii) with respect to school breakfasts, \1/4\ of the 
            daily recommended dietary allowance established by the Food 
            and Nutrition Board of the National Research Council of the 
            National Academy of Sciences.'';
        (5) in paragraph (3), as redesignated by paragraph (3)--
            (A) by redesignating clauses (i) and (ii) as subparagraphs 
        (A) and (B), respectively; and
            (B) in subparagraph (A), as so redesignated, by 
        redesignating subclauses (I) and (II) as clauses (i) and (ii), 
        respectively; and
        (6) in paragraph (4), as redesignated by paragraph (3), by 
    striking the first sentence and inserting the following: ``Schools 
    may use any reasonable approach to meet the requirements of this 
    paragraph, including any approach described in paragraph (3).''.
    (f) Use of Resources.--Section 9 of the Act is amended by striking 
subsection (h).

SEC. 903. FREE AND REDUCED PRICE POLICY STATEMENT.

    Section 9(b)(2) of the National School Lunch Act (42 U.S.C. 
1758(b)(2)), as amended by section 902(b)(1), is further amended by 
adding at the end the following:
            ``(C) Free and reduced price policy statement.--After the 
        initial submission, a school shall not be required to submit a 
        free and reduced price policy statement to a State educational 
        agency under this Act unless there is a substantive change in 
        the free and reduced price policy of the school. A routine 
        change in the policy of a school, such as an annual adjustment 
        of the income eligibility guidelines for free and reduced price 
        meals, shall not be sufficient cause for requiring the school 
        to submit a policy statement.''.

SEC. 904. SPECIAL ASSISTANCE.

    (a) Financing Based on Need.--Section 11(b) of the National School 
Lunch Act (42 U.S.C. 1759a(b)) is amended--
        (1) in the second sentence, by striking ``, within'' and all 
    that follows through ``all States,''; and
        (2) by striking the third sentence.
    (b) Applicability of Other Provisions.--Section 11 of the Act is 
amended--
        (1) by striking subsection (d);
        (2) in subsection (e)(2)--
            (A) by striking ``The'' and inserting ``On request of the 
        Secretary, the''; and
            (B) by striking ``each month''; and
        (3) by redesignating subsections (e) and (f), as so amended, as 
    subsections (d) and (e), respectively.

SEC. 905. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

    (a) Accounts and Records.--Section 12(a) of the National School 
Lunch Act (42 U.S.C. 1760(a)) is amended by striking ``at all times be 
available'' and inserting ``be available at any reasonable time''.
    (b) Restriction on Requirements.--Section 12(c) of the Act is 
amended by striking ``neither the Secretary nor the State shall'' and 
inserting ``the Secretary shall not''.
    (c) Definitions.--Section 12(d) of the Act, as amended by section 
901(b), is further amended--
        (1) in paragraph (1), by striking ``the Trust Territory of the 
    Pacific Islands'' and inserting ``the Commonwealth of the Northern 
    Mariana Islands'';
        (2) by striking paragraphs (3) and (4); and
        (3) by redesignating paragraphs (1), (2), and (5) through (9) 
    as paragraphs (6), (7), (3), (4), (2), (5), and (1), respectively, 
    and rearranging the paragraphs so as to appear in numerical order.
    (d) Adjustments to National Average Payment Rates.--Section 12(f) 
of the Act is amended by striking ``the Trust Territory of the Pacific 
Islands,''.
    (e) Expedited Rulemaking.--Section 12(k) of the Act is amended--
        (1) by striking paragraphs (1), (2), and (5); and
        (2) by redesignating paragraphs (3) and (4) as paragraphs (1) 
    and (2), respectively.
    (f) Waiver.--Section 12(l) of the Act is amended--
        (1) in paragraph (2)--
            (A) by striking ``(A)'';
            (B) in clause (iii), by adding ``and'' at the end;
            (C) in clause (iv), by striking the semicolon at the end 
        and inserting a period;
            (D) by striking clauses (v) through (vii);
            (E) by striking subparagraph (B); and
            (F) by redesignating clauses (i) through (iv), as so 
        amended, as subparagraphs (A) through (D), respectively;
        (2) in paragraph (3)--
            (A) by striking ``(A)''; and
            (B) by striking subparagraphs (B) through (D);
        (3) in paragraph (4)--
            (A) in the matter preceding subparagraph (A), by striking 
        ``of any requirement relating'' and inserting ``that increases 
        Federal costs or that relates'';
            (B) by striking subparagraphs (B), (D), (F), (H), (J), (K), 
        and (L);
            (C) by redesignating subparagraphs (C), (E), (G), (I), (M), 
        and (N) as subparagraphs (B) through (G), respectively; and
            (D) in subparagraph (F), as redesignated by subparagraph 
        (C), by striking ``and'' at the end and inserting ``or''; and
        (4) in paragraph (6)--
            (A) by striking ``(A)(i)'' and all that follows through 
        ``(B)''; and
            (B) by redesignating clauses (i) through (iv) as 
        subparagraphs (A) through (D), respectively.
    (g) Food and Nutrition Projects.--Section 12 of the Act is amended 
by striking subsection (m).

SEC. 906. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Establishment of Program.--Section 13(a) of the National School 
Lunch Act (42 U.S.C. 1761(a)) is amended--
        (1) in paragraph (1)--
            (A) in the first sentence, by striking ``initiate, 
        maintain, and expand'' and insert ``initiate and maintain''; 
        and
            (B) in subparagraph (E) of the second sentence, by striking 
        ``the Trust Territory of the Pacific Islands,''; and
        (2) in paragraph (7)(A), by striking ``Except as provided in 
    subparagraph (C), private'' and inserting ``Private''.
    (b) Service Institutions.--Section 13(b) of the Act is amended by 
striking ``(b)(1)'' and all that follows through the end of paragraph 
(1) and inserting the following:
    ``(b) Service Institutions.--
        ``(1) Payments.--
            ``(A) In general.--Except as otherwise provided in this 
        paragraph, payments to service institutions shall equal the 
        full cost of food service operations (which cost shall include 
        the costs of obtaining, preparing, and serving food, but shall 
        not include administrative costs).
            ``(B) Maximum amounts.--Subject to subparagraph (C), 
        payments to any institution under subparagraph (A) shall not 
        exceed--
                ``(i) $1.82 for each lunch and supper served;
                ``(ii) $1.13 for each breakfast served; and
                ``(iii) 46 cents for each meal supplement served.
            ``(C) Adjustments.--Amounts specified in subparagraph (B) 
        shall be adjusted each January 1 to the nearest lower cent 
        increment in accordance with the changes for the 12-month 
        period ending the preceding November 30 in the series for food 
        away from home of the Consumer Price Index for All Urban 
        Consumers published by the Bureau of Labor Statistics of the 
        Department of Labor. Each adjustment shall be based on the 
        unrounded adjustment for the prior 12-month period.''.
    (c) Administration of Service Institutions.--Section 13(b)(2) of 
the Act is amended--
        (1) in the first sentence, by striking ``four meals'' and 
    inserting ``3 meals, or 2 meals and 1 supplement,''; and
        (2) by striking the second sentence.
    (d) Reimbursements.--Section 13(c)(2) of the Act is amended--
        (1) by striking subparagraph (A);
        (2) in subparagraph (B)--
            (A) in the first sentence--
                (i) by striking ``, and such higher education 
            institutions,''; and
                (ii) by striking ``without application'' and inserting 
            ``upon showing residence in areas in which poor economic 
            conditions exist or on the basis of income eligibility 
            statements for children enrolled in the program''; and
            (B) by adding at the end the following: ``The higher 
        education institutions referred to in the preceding sentence 
        shall be eligible to participate in the program under this 
        paragraph without application.'';
        (3) in subparagraph (C)(ii), by striking ``severe need''; and
        (4) by redesignating subparagraphs (B) through (E), as so 
    amended, as subparagraphs (A) through (D), respectively.
    (e) Advance Program Payments.--Section 13(e)(1) of the Act is 
amended--
        (1) by striking ``institution: Provided, That (A) the'' and 
    inserting ``institution. The'';
        (2) by inserting ``(excluding a school)'' after ``any service 
    institution''; and
        (3) by striking ``responsibilities, and (B) no'' and inserting 
    ``responsibilities. No''.
    (f) Food Requirements.--Section 13(f) of the Act is amended--
        (1) by redesignating the first through seventh sentences as 
    paragraphs (1) through (7), respectively;
        (2) by striking paragraph (3), as redesignated by paragraph 
    (1);
        (3) in paragraph (4), as redesignated by paragraph (1), by 
    striking ``the first sentence'' and inserting ``paragraph (1)'';
        (4) in paragraph (6), as redesignated by paragraph (1), by 
    striking ``that bacteria levels'' and all that follows through the 
    period at the end and inserting ``conformance with standards set by 
    local health authorities.''; and
        (5) by redesignating paragraphs (4) through (7), as 
    redesignated by paragraph (1), as paragraphs (3) through (6), 
    respectively.
    (g) Permitting Offer Versus Serve.--Section 13(f) of the Act, as 
amended by subsection (f), is further amended by adding at the end the 
following:
        ``(7) Offer versus serve.--A school food authority 
    participating as a service institution may permit a child attending 
    a site on school premises operated directly by the authority to 
    refuse not more than 1 item of a meal that the child does not 
    intend to consume. A refusal of an offered food item shall not 
    affect the amount of payments made under this section to a school 
    for the meal.''.
    (h) Health Department Inspections.--Section 13(k) of the Act is 
amended by striking paragraph (3).
    (i) Food Service Management Companies.--Section 13(l) of the Act is 
amended--
        (1) by striking paragraph (4);
        (2) in paragraph (5), by striking the first sentence; and
        (3) by redesignating paragraph (5), as so amended, as paragraph 
    (4).
    (j) Records.--The second sentence of section 13(m) of the Act is 
amended by striking ``at all times be available'' and inserting ``be 
available at any reasonable time''.
    (k) Removing Mandatory Notice to Institutions.--Section 13(n)(2) of 
the Act is amended by striking ``, and its plans and schedule for 
informing service institutions of the availability of the program''.
    (l) Plan.--Section 13(n) of the Act is amended--
        (1) in paragraph (2), by striking ``including the State's 
    methods of assessing need'';
        (2) by striking paragraph (3);
        (3) in paragraph (4), by striking ``and schedule''; and
        (4) by redesignating paragraphs (4) through (7), as so amended, 
    as paragraphs (3) through (6), respectively.
    (m) Monitoring and Training.--Section 13(q) of the Act is amended--
        (1) by striking paragraphs (2) and (4);
        (2) in paragraph (3), by striking ``paragraphs (1) and (2) of 
    this subsection'' and inserting ``paragraph (1)''; and
        (3) by redesignating paragraph (3), as so amended, as paragraph 
    (2).
    (n) Expired Program.--Section 13 of the Act is amended--
        (1) by striking subsection (p); and
        (2) by redesignating subsections (q) and (r), as so amended, as 
    subsections (p) and (q), respectively.
    (o) Effective Date.--The amendments made by subsection (b) shall 
become effective on January 1, 1996.

SEC. 907. COMMODITY DISTRIBUTION.

    (a) Cereal and Shortening in Commodity Donations.--Section 14(b) of 
the National School Lunch Act (42 U.S.C. 1762a(b)) is amended--
        (1) by striking paragraph (1); and
        (2) by redesignating paragraphs (2) and (3) as paragraphs (1) 
    and (2), respectively.
    (b) Impact Study and Purchasing Procedures.--Section 14(d) of the 
Act is amended by striking the second and third sentences.
    (c) Cash Compensation for Pilot Project Schools.--Section 14(g) of 
the Act is amended by striking paragraph (3).
    (d) State Advisory Council.--Section 14 is amended--
        (1) by striking subsection (e); and
        (2) by redesignating subsections (f) and (g), as so amended, as 
    subsections (e) and (f), respectively.

SEC. 908. CHILD CARE FOOD PROGRAM.

    (a) Establishment of Program.--Section 17 of the National School 
Lunch Act (42 U.S.C. 1766) is amended--
        (1) in the section heading, by striking ``and adult''; and
        (2) in the first sentence of subsection (a), by striking 
    ``initiate, maintain, and expand'' and inserting ``initiate and 
    maintain''.
    (b) Payments to Sponsor Employees.--Paragraph (2) of the last 
sentence of section 17(a) of the Act (42 U.S.C. 1766(a)) is amended--
        (1) by striking ``and'' at the end of subparagraph (B);
        (2) by striking the period at the end of subparagraph (C) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
            ``(D) in the case of a family or group day care home 
        sponsoring organization that employs more than 1 employee, the 
        organization does not base payments to an employee of the 
        organization on the number of family or group day care homes 
        recruited.''.
    (c) Technical Assistance.--The last sentence of section 17(d)(1) of 
the Act is amended by striking ``, and shall provide technical 
assistance'' and all that follows through ``its application''.
    (d) Reimbursement of Child Care Institutions.--Section 17(f)(2)(B) 
of the Act (42 U.S.C. 1766(f)(2)(B)) is amended by striking ``two meals 
and two supplements or three meals and one supplement'' and inserting 
``two meals and one supplement''.
    (e) Improved Targeting of Day Care Home Reimbursements.--
        (1) Restructured day care home reimbursements.--Section 
    17(f)(3) of the Act is amended by striking ``(3)(A) Institutions'' 
    and all that follows through the end of subparagraph (A) and 
    inserting the following:
        ``(3) Reimbursement of family or group day care home sponsoring 
    organizations.--
            ``(A) Reimbursement factor.--
                ``(i) In general.--An institution that participates in 
            the program under this section as a family or group day 
            care home sponsoring organization shall be provided, for 
            payment to a home sponsored by the organization, 
            reimbursement factors in accordance with this subparagraph 
            for the cost of obtaining and preparing food and prescribed 
            labor costs involved in providing meals under this section.
                ``(ii) Tier i family or group day care homes.--

                    ``(I) Definition.--In this paragraph, the term 
                `tier I family or group day care home' means--

                        ``(aa) a family or group day care home that is 
                    located in a geographic area, as defined by the 
                    Secretary based on census data, in which at least 
                    50 percent of the children residing in the area are 
                    members of households whose incomes meet the income 
                    eligibility guidelines for free or reduced price 
                    meals under section 9;
                        ``(bb) a family or group day care home that is 
                    located in an area served by a school enrolling 
                    elementary students in which at least 50 percent of 
                    the total number of children enrolled are certified 
                    eligible to receive free or reduced price school 
                    meals under this Act or the Child Nutrition Act of 
                    1966 (42 U.S.C. 1771 et seq.); or
                        ``(cc) a family or group day care home that is 
                    operated by a provider whose household meets the 
                    income eligibility guidelines for free or reduced 
                    price meals under section 9 and whose income is 
                    verified by the sponsoringor organization of the 
home under regulations established by the Secretary.

                    ``(II) Reimbursement.--Except as provided in 
                subclause (III), a tier I family or group day care home 
                shall be provided reimbursement factors under this 
                clause without a requirement for documentation of the 
                costs described in clause (i), except that 
                reimbursement shall not be provided under this 
                subclause for meals or supplements served to the 
                children of a person acting as a family or group day 
                care home provider unless the children meet the income 
                eligibility guidelines for free or reduced price meals 
                under section 9.
                    ``(III) Factors.--Except as provided in subclause 
                (IV), the reimbursement factors applied to a home 
                referred to in subclause (II) shall be the factors in 
                effect on the date of enactment of this subclause.
                    ``(IV) Adjustments.--The reimbursement factors 
                under this subparagraph shall be adjusted on August 1, 
                1996, July 1, 1997, and each July 1 thereafter, to 
                reflect changes in the Consumer Price Index for food at 
                home for the most recent 12-month period for which the 
                data are available. The reimbursement factors under 
                this subparagraph shall be rounded to the nearest lower 
                cent increment and based on the unrounded adjustment in 
                effect on June 30 of the preceding school year.

                ``(iii) Tier ii family or group day care homes.--

                    ``(I) In general.--

                        ``(aa) Factors.--Except as provided in 
                    subclause (II), with respect to meals or 
                    supplements served under this clause by a family or 
                    group day care home that does not meet the criteria 
                    set forth in clause (ii)(I), the reimbursement 
                    factors shall be 90 cents for lunches and suppers, 
                    25 cents for breakfasts, and 10 cents for 
                    supplements.
                        ``(bb) Adjustments.--The factors shall be 
                    adjusted on July 1, 1997, and each July 1 
                    thereafter, to reflect changes in the Consumer 
                    Price Index for food at home for the most recent 
                    12-month period for which the data are available. 
                    The reimbursement factors under this item shall be 
                    rounded down to the nearest lower cent increment 
                    and based on the unrounded adjustment for the 
                    preceding 12-month period.
                        ``(cc) Reimbursement.--A family or group day 
                    care home shall be provided reimbursement factors 
                    under this subclause without a requirement for 
                    documentation of the costs described in clause (i), 
                    except that reimbursement shall not be provided 
                    under this subclause for meals or supplements 
                    served to the children of a person acting as a 
                    family or group day care home provider unless the 
                    children meet the income eligibility guidelines for 
                    free or reduced price meals under section 9.

                    ``(II) Other factors.--A family or group day care 
                home that does not meet the criteria set forth in 
                clause (ii)(I) may elect to be provided reimbursement 
                factors determined in accordance with the following 
                requirements:

                        ``(aa) Children eligible for free or reduced 
                    price meals.--In the case of meals or supplements 
                    served under this subsection to children who are 
                    members of households whose incomes meet the income 
                    eligibility guidelines for free or reduced price 
                    meals under section 9, the family or group day care 
                    home shall be provided reimbursement factors set by 
                    the Secretary in accordance with clause (ii)(III).
                        ``(bb) Ineligible children.--In the case of 
                    meals or supplements served under this subsection 
                    to children who are members of households whose 
                    incomes do not meet the income eligibility 
                    guidelines, the family or group day care home shall 
                    be provided reimbursement factors in accordance 
                    with subclause (I).

                    ``(III) Information and determinations.--

                        ``(aa) In general.--If a family or group day 
                    care home elects to claim the factors described in 
                    subclause (II), the family or group day care home 
                    sponsoring organization serving the home shall 
                    collect the necessary income information, as 
                    determined by the Secretary, from any parent or 
                    other caretaker to make the determinations 
                    specified in subclause (II) and shall make the 
                    determinations in accordance with rules prescribed 
                    by the Secretary.
                        ``(bb) Categorical eligibility.--In making a 
                    determination under item (aa), a family or group 
                    day care home sponsoring organization may consider 
                    a child participating in or subsidized under, or a 
                    child with a parent participating in or subsidized 
                    under, a federally or State supported child care or 
                    other benefit program with an income eligibility 
                    limit that does not exceed the eligibility standard 
                    for free or reduced price meals under section 9 to 
                    be a child who is a member of a household whose 
                    income meets the income eligibility guidelines 
                    under section 9.
                        ``(cc) Factors for children only.--A family or 
                    group day care home may elect to receive the 
                    reimbursement factors prescribed under clause 
                    (ii)(III) solely for the children participating in 
                    a program referred to in item (bb) if the home 
                    elects not to have income statements collected from 
                    parents or other caretakers.

                    ``(IV) Simplified meal counting and reporting 
                procedures.--The Secretary shall prescribe simplified 
                meal counting and reporting procedures for use by a 
                family or group day care home that elects to claim the 
                factors under subclause (II) and by a family or group 
                day care home sponsoring organization that sponsors the 
                home. The procedures the Secretary prescribes may 
                include 1 or more of the following:

                        ``(aa) Setting an annual percentage for each 
                    home of the number of meals served that are to be 
                    reimbursed in accordance with the reimbursement 
                    factors prescribed under clause (ii)(III) and an 
                    annual percentage of the number of meals served 
                    that are to be reimbursed in accordance with the 
                    reimbursement factors prescribed under subclause 
                    (I), based on the family income of children 
                    enrolled in the home in a specified month or other 
                    period.
                        ``(bb) Placing a home into 1 of 2 or more 
                    reimbursement categories annually based on the 
                    percentage of children in the home whose households 
                    have incomes that meet the income eligibility 
                    guidelines under section 9, with each such 
                    reimbursement category carrying a set of 
                    reimbursement factors such as the factors 
                    prescribed under clause (ii)(III) or subclause (I) 
                    or factors established within the range of factors 
                    prescribed under clause (ii)(III) and subclause 
                    (I).
                        ``(cc) Such other simplified procedures as the 
                    Secretary may prescribe.

                    ``(V) Minimum verification requirements.--The 
                Secretary may establish any necessary minimum 
                verification requirements.''.

        (2) Grants to states to provide assistance to family or group 
    day care homes.--Section 17(f)(3) of the Act is amended by adding 
    at the end the following:
            ``(D) Grants to states to provide assistance to family or 
        group day care homes.--
                ``(i) In general.--

                    ``(I) Reservation.--From amounts made available to 
                carry out this section, the Secretary shall reserve 
                $5,000,000 of the amount made available for fiscal year 
                1996.

                    ``(II) Purpose.--The Secretary shall use the funds 
                made available under subclause (I) to provide grants to 
                States for the purpose of providing--

                        ``(aa) assistance, including grants, to family 
                    and day care home sponsoring organizations and 
                    other appropriate organizations, in securing and 
                    providing training, materials, automated data 
                    processing assistance, and other assistance for the 
                    staff of the sponsoring organizations; and
                        ``(bb) training and other assistance to family 
                    and group day care homes in the implementation of 
                    the amendment to subparagraph (A) made by section 
                    913(e)(1) of the Personal Responsibility and Work 
                    Opportunity Act of 1995.
                ``(ii) Allocation.--The Secretary shall allocate from 
            the funds reserved under clause (i)(I)--

                    ``(I) $30,000 in base funding to each State; and
                    ``(II) any remaining amount among the States, based 
                on the number of family day care homes participating in 
                the program in a State during fiscal year 1994 as a 
                percentage of the number of all family day care homes 
                participating in the program during fiscal year 1994.

                ``(iii) Retention of funds.--Of the amount of funds 
            made available to a State for fiscal year 1996 under clause 
            (i), the State may retain not to exceed 30 percent of the 
            amount to carry out this subparagraph.
                ``(iv) Additional payments.--Any payments received 
            under this subparagraph shall be in addition to payments 
            that a State receives under subparagraph (A).''.
        (3) Provision of data.--Section 17(f)(3) of the Act, as amended 
    by paragraph (2), is further amended by adding at the end the 
    following:
            ``(E) Provision of data to family or group day care home 
        sponsoring organizations.--
                ``(i) Census data.--The Secretary shall provide to each 
            State agency administering a child care food program under 
            this section data from the most recent decennial census 
            survey or other appropriate census survey for which the 
            data are available showing which areas in the State meet 
            the requirements of subparagraph (A)(ii)(I)(aa). The State 
            agency shall provide the data to family or group day care 
            home sponsoring organizations located in the State.
                ``(ii) School data.--

                    ``(I) In general.--A State agency administering the 
                school lunch program under this Act or the school 
                breakfast program under the Child Nutrition Act of 1966 
                (42 U.S.C. 1771 et seq.) shall provide to approved 
                family or group day care home sponsoring organizations 
                a list of schools serving elementary school children in 
                the State in which not less than \1/2\ of the children 
                enrolled are certified to receive free or reduced price 
                meals. The State agency shall collect the data 
                necessary to create the list annually and provide the 
                list on a timely basis to any approved family or group 
                day care home sponsoring organization that requests the 
                list.
                    ``(II) Use of data from preceding school year.--In 
                determining for a fiscal year or other annual period 
                whether a home qualifies as a tier I family or group 
                day care home under subparagraph (A)(ii)(I), the State 
                agency administering the program under this section, 
                and a family or group day care home sponsoring 
                organization, shall use the most current available data 
                at the time of the determination.

                ``(iii) Duration of determination.--For purposes of 
            this section, a determination that a family or group day 
            care home is located in an area that qualifies the home as 
            a tier I family or group day care home (as the term is 
            defined in subparagraph (A)(ii)(I)), shall be in effect for 
            3 years (unless the determination is made on the basis of 
            census data, in which case the determination shall remain 
            in effect until more recent census data are available) 
            unless the State agency determines that the area in which 
            the home is located no longer qualifies the home as a tier 
            I family or group day care home.''.
        (4) Conforming amendments.--Section 17(c) of the Act is amended 
    by inserting ``except as provided in subsection (f)(3),'' after 
    ``For purposes of this section,'' each place it appears in 
    paragraphs (1), (2), and (3).
    (f) Reimbursement.--Section 17(f) of the Act is amended--
        (1) in paragraph (3)--
            (A) in subparagraph (B), by striking the third and fourth 
        sentences; and
            (B) in subparagraph (C)--
                (i) in clause (i)--

                    (I) by striking ``(i)'';
                    (II) in the first sentence, by striking ``and 
                expansion funds'' and all that follows through ``rural 
                areas'';
                    (III) by striking the second sentence; and
                    (IV) by striking ``and expansion funds'' each place 
                it appears; and

                (ii) by striking clause (ii); and
        (2) by striking paragraph (4).
    (g) Nutritional Requirements.--Section 17(g)(1) of the Act is 
amended--
        (1) in subparagraph (A), by striking the second sentence; and
        (2) in subparagraph (B), by striking the second sentence.
    (h) Elimination of State Paperwork and Outreach Burden.--Section 17 
of the Act is amended by striking subsection (k) and inserting the 
following:
    ``(k) Training and Technical Assistance.--A State participating in 
the program established under this section shall provide sufficient 
training, technical assistance, and monitoring to facilitate effective 
operation of the program. The Secretary shall assist the State in 
developing plans to fulfill the requirements of this subsection.''.
    (i) Records.--The second sentence of section 17(m) of the Act is 
amended by striking ``at all times'' and inserting ``at any reasonable 
time''.
    (j) Modification of Adult Care Food Program.--Section 17(o) of the 
Act is amended--
        (1) in the first sentence of paragraph (1)--
            (A) by striking ``adult day care centers'' and inserting 
        ``day care centers for chronically impaired disabled persons''; 
        and
            (B) by striking ``to persons 60 years of age or older or''; 
        and
        (2) in paragraph (2)--
            (A) in subparagraph (A)--
                (i) by striking ``adult day care center'' and inserting 
            ``day care center for chronically impaired disabled 
            persons''; and
                (ii) in clause (i)--

                    (I) by striking ``adult'';
                    (II) by striking ``adults'' and inserting 
                ``persons''; and
                    (III) by striking ``or persons 60 years of age or 
                older''; and

            (B) in subparagraph (B), by striking ``adult day care 
        services'' and inserting ``day care services for chronically 
        impaired disabled persons''.
    (k) Unneeded Provision.--Section 17 of the Act is amended by 
striking subsection (q).
    (l) Conforming Amendments.--
        (1) Section 17B(f) of the Act (42 U.S.C. 1766b(f)) is amended--
            (A) in the subsection heading, by striking ``and Adult''; 
        and
            (B) in paragraph (1), by striking ``and adult''.
        (2) Section 18(e)(3)(B) of the Act (42 U.S.C. 1769(e)(3)(B)) is 
    amended by striking ``and adult''.
        (3) Section 25(b)(1)(C) of the Act (42 U.S.C. 1769f(b)(1)(C)) 
    is amended by striking ``and adult''.
        (4) Section 3(1) of the Healthy Meals for Healthy Americans Act 
    of 1994 (Public Law 103-448) is amended by striking ``and adult''.
    (m) Effective Date.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall become effective on the date 
    of enactment of this Act.
        (2) Improved targeting of day care home reimbursements.--The 
    amendments made by paragraphs (1), (3), and (4) of subsection (e) 
    shall become effective on August 1, 1996.
        (3) Regulations.--
            (A) Interim regulations.--Not later than February 1, 1996, 
        the Secretary shall issue interim regulations to implement--
                (i) the amendments made by paragraphs (1), (3), and (4) 
            of subsection (e); and
                (ii) section 17(f)(3)(C) of the National School Lunch 
            Act (42 U.S.C. 1766(f)(3)(C)).
            (B) Final regulations.--Not later than August 1, 1996, the 
        Secretary shall issue final regulations to implement the 
        provisions of law referred to in subparagraph (A).
    (n) Study of Impact of Amendments on Program Participation and 
Family Day Care Licensing.--
        (1) In general.--The Secretary of Agriculture, in conjunction 
    with the Secretary of Health and Human Services, shall study the 
    impact of the amendments made by this section on--
            (A) the number of family day care homes participating in 
        the child care food program established under section 17 of the 
        National School Lunch Act (42 U.S.C. 1766);
            (B) the number of day care home sponsoring organizations 
        participating in the program;
            (C) the number of day care homes that are licensed, 
        certified, registered, or approved by each State in accordance 
        with regulations issued by the Secretary;
            (D) the rate of growth of the numbers referred to in 
        subparagraphs (A) through (C);
            (E) the nutritional adequacy and quality of meals served in 
        family day care homes that--
                (i) received reimbursement under the program prior to 
            the amendments made by this section but do not receive 
            reimbursement after the amendments made by this section; or
                (ii) received full reimbursement under the program 
            prior to the amendments made by this section but do not 
            receive full reimbursement after the amendments made by 
            this section; and
            (F) the proportion of low-income children participating in 
        the program prior to the amendments made by this section and 
        the proportion of low-income children participating in the 
        program after the amendments made by this section.
        (2) Required data.--Each State agency participating in the 
    child care food program under section 17 of the National School 
    Lunch Act (42 U.S.C. 1766) shall submit to the Secretary data on--
            (A) the number of family day care homes participating in 
        the program on July 31, 1996, and July 31, 1997;
            (B) the number of family day care homes licensed, 
        certified, registered, or approved for service on July 31, 
        1996, and July 31, 1997; and
            (C) such other data as the Secretary may require to carry 
        out this subsection.
        (3) Submission of report.--Not later than 2 years after the 
    effective date of this section, the Secretary shall submit the 
    study required under this subsection to the Committee on Economic 
    and Educational Opportunities of the House of Representatives and 
    the Committee on Agriculture, Nutrition, and Forestry of the 
    Senate.

SEC. 909. PILOT PROJECTS.

    (a) Universal Free Pilot.--Section 18(d) of the National School 
Lunch Act (42 U.S.C. 1769(d)) is amended--
        (1) by striking paragraph (3); and
        (2) by redesignating paragraphs (4) and (5) as paragraphs (3) 
    and (4), respectively.
    (b) Demo Project Outside School Hours.--Section 18(e) of the Act is 
amended--
        (1) in paragraph (1)--
            (A) in subparagraph (A)--
                (i) by striking ``(A)''; and
                (ii) by striking ``shall'' and inserting ``may''; and
            (B) by striking subparagraph (B); and
        (2) by striking paragraph (5) and inserting the following:
        ``(5) Authorization of appropriations.--There are authorized to 
    be appropriated to carry out this subsection such sums as are 
    necessary for each of fiscal years 1997 and 1998.''.
    (c) Eliminating Projects.--Section 18 of the Act is amended--
        (1) by striking subsections (a) and (g) through (i); and
        (2) by redesignating subsections (b) through (f), as so 
    amended, as subsections (a) through (e), respectively.
    (d) Conforming Amendment.--Section 17B(d)(1)(A) of the Act (42 
U.S.C. 1766b(d)(1)(A)) is amended by striking ``18(c)'' and inserting 
``18(b)''.

SEC. 910. REDUCTION OF PAPERWORK.

    Section 19 of the National School Lunch Act (42 U.S.C. 1769a) is 
repealed.

SEC. 911. INFORMATION ON INCOME ELIGIBILITY.

    Section 23 of the National School Lunch Act (42 U.S.C. 1769d) is 
repealed.

SEC. 912. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.

    Section 24 of the National School Lunch Act (42 U.S.C. 1769e) is 
repealed.

SEC. 913. INFORMATION CLEARINGHOUSE.

    Section 26 of the National School Lunch Act (42 U.S.C. 1769g) is 
repealed.
    SEC. 914. SCHOOL NUTRITION OPTIONAL BLOCK GRANT DEMONSTRATION 
      PROGRAM.
    (a) In General.--The National School Lunch Act is amended by 
inserting after section 4 (42 U.S.C. 1753) the following:
  ``SEC. 5. SCHOOL NUTRITION OPTIONAL BLOCK GRANT DEMONSTRATION 
      PROGRAM.
    ``(a) Definitions.--In this section:
        ``(1) Block grant demonstration program.--The term `block grant 
    demonstration program' means the block grant program demonstration 
    program established under subsection (b).
        ``(2) Department of defense domestic dependents' school.--The 
    term `Department of Defense domestic dependents' school' means an 
    elementary or secondary school established under section 2164 of 
    title 10, United States Code.
        ``(3) Low-income student.--The term `low-income student' means 
    a student who is a member of a family whose income is less than 130 
    percent of the poverty line.
        ``(4) Needy student.--The term `needy student' means a student 
    who is a member of a family whose income is not less than 130 
    percent, and not more than 185 percent, of the poverty line.
        ``(5) Poverty line.--The term `poverty line' has the meaning 
    provided in section 673(2) of the Community Services Block Grant 
    Act (42 U.S.C. 9902(2)).
        ``(6) State plan.--The term `State plan' means a State plan 
    submitted to and approved by the Secretary under subsection (d).
    ``(b) Establishment.--The Secretary shall establish an optional 
block grant demonstration program in not more than 1 State in each of 
the 7 Food and Consumer Service regions of the United States Department 
of Agriculture to make grants to States to carry out a school lunch and 
breakfast program for all schoolchildren that--
        ``(1) safeguards the health and well-being of children through 
    the provision of nutritious, well-balanced meals in schools;
        ``(2) provides children who are low-income students access to 
    nutritious free meals;
        ``(3) provides children who are needy students access to 
    nutritious low-cost meals;
        ``(4) ensures that children are receiving the nutrition 
    required to take advantage of educational opportunities;
        ``(5) emphasizes foods that are naturally good sources of 
    vitamins and minerals over foods that have been enriched with 
    vitamins and minerals and are high in fat or sodium content;
        ``(6) provides a comprehensive school nutrition program for 
    children, which may include offering free meals to all children at 
    a school;
        ``(7) minimizes paperwork burdens and administrative expenses 
    for participating schools; and
        ``(8) at the option of the State, provides meal supplements to 
    children in afterschool care.
    ``(c) Election by the State.--
        ``(1) In general.--A State with respect to which an application 
    submitted under subsection (d)(1) is approved may participate in 
    the block grant demonstration program.
        ``(2) Election irrevocable.--A State with respect to which an 
    application under paragraph (1) is approved may not subsequently 
    reverse the decision of the State to participate in the block grant 
    demonstration program until the termination of the program under 
    subsection (n).
        ``(3) Block grant demonstration program exclusive.--Except as 
    otherwise provided in this section, a State that is participating 
    in the block grant demonstration program shall not be subject to, 
    or receive any benefit under--
            ``(A) the school lunch program established under this Act;
            ``(B) the school breakfast program established under 
        section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); 
        or
            ``(C) the commodity distribution programs established under 
        sections 6 and 14.
        ``(4) Maintenance of service to low-income and needy 
    students.--
            ``(A) Proportions of students served.--A State shall ensure 
        that, during each year in which the State is participating in 
        the block grant demonstration program, the proportions of 
        school lunches and school breakfasts served to low-income 
        students and needy students under the block grant demonstration 
        program are not less than the proportions of school lunches and 
        school breakfasts, respectively, served to low-income students 
        and needy students in the last year of participation by the 
        State in the school lunch program established under the other 
        sections of this Act or the school breakfast program 
        established under section 4 of the Child Nutrition Act of 1966 
        (42 U.S.C. 1773), respectively.
            ``(B) Proportions of funds used to provide service.--A 
        State shall ensure that, during each year in which the State is 
        participating in the block grant demonstration program, the 
        proportions of funds used by the State to provide school 
        lunches and school breakfasts for low-income students and needy 
        students under the block grant demonstration program are not 
        less than the proportions of State funds used to provide school 
        lunches and school breakfasts, respectively, for low-income 
        students and needy students in the last year of participation 
        by the State in the school lunch program established under the 
        other sections of this Act or the school breakfast program 
        established under section 4 of the Child Nutrition Act of 1966 
        (42 U.S.C. 1773), respectively.
    ``(d) Application and State Plan.--
        ``(1) Application.--To be eligible to receive assistance under 
    the block grant demonstration program, a State shall prepare and 
    submit to the Secretary an application at such time, in such 
    manner, and containing such information as the Secretary shall by 
    regulation reasonably require, including--
            ``(A) an assurance that the State will comply with the 
        requirements of this section;
            ``(B) a State plan that meets the requirements of paragraph 
        (2);
            ``(C) an assurance that the State will comply with the 
        requirements of the State plan under paragraph (2); and
            ``(D) an assurance that the State will submit an annual 
        report in accordance with paragraph (4).
        ``(2) Requirements of state plan.--
            ``(A) Use of block grant demonstration program funds.--
                ``(i) In general.--Subject to clause (ii), the State 
            plan shall provide that the State shall use the amounts 
            provided to the State for each fiscal year under the block 
            grant demonstration program to provide assistance to 
            schools to provide lunches and breakfasts, including--

                    ``(I) free lunches and breakfasts in accordance 
                with subparagraph (E) to low-income students at the 
                schools;
                    ``(II) low-cost lunches and breakfasts to needy 
                students at the schools;
                    ``(III) at the option of the State, lunches and 
                breakfasts to all students; and
                    ``(IV) at the option of the State, meal 
                supplements.

                ``(ii) Administrative expenses.--A State may not use 
            the amounts described in clause (i) for the payment of 
            State administrative expenses incurred in carrying out the 
            block grant demonstration program.
                ``(iii) Nonprofit operation.--The school lunch and 
            school breakfast program under the block grant 
            demonstration program shall be operated on a nonprofit 
            basis.
                ``(iv) Maintenance of state effort.--For each fiscal 
            year for which the State participates in the block grant 
            demonstration program, the amount of the State revenues 
            (excluding State revenues derived from the operation of the 
            program) appropriated or used specifically for block grant 
            demonstration program purposes (other than any State 
            revenues expended for salaries and administrative expenses 
            of the program at the State level) shall be not less than 
            the amount of such State revenues made available for the 
            preceding fiscal year under this section or for the school 
            lunch program under the other sections of this Act and the 
            school breakfast program under section 4 of the Child 
            Nutrition Act of 1966 (42 U.S.C. 1773), as appropriate.
            ``(B) Nutritional requirements.--
                ``(i) Prohibition on additional requirements.--The 
            Secretary may not impose any additional nutritional 
            requirement beyond the requirements specified in this 
            subparagraph.
                ``(ii) Requirements.--The State plan shall provide for 
            the establishment and implementation of minimum nutritional 
            requirements for meals provided under the block grant 
            demonstration program based on the most recent tested 
            nutritional research available, except that the 
            requirements shall not prohibit the substitution of foods 
            to accommodate the medical or other special dietary needs 
            of individual students.
                ``(iii) Dietary guidelines.--The nutritional 
            requirements established under clause (ii) shall be 
            consistent with the goals of the most recent Dietary 
            Guidelines for Americans published under section 301 of the 
            National Nutrition Monitoring and Related Research Act of 
            1990 (7 U.S.C. 5341).
                ``(iv) Recommended dietary allowances.--The nutritional 
            requirements established under clause (ii) shall require 
            that meals provided under the block grant demonstration 
            program provide, on the average over each week, at least--

                    ``(I) with respect to school lunches, one-third of 
                the daily recommended dietary allowance established by 
                the Food and Nutrition Board of the National Research 
                Council of the National Academy of Sciences; and
                    ``(II) with respect to school breakfasts, one-
                quarter of the daily recommended dietary allowance 
                established by the Food and Nutrition Board of the 
                National Research Council of the National Academy of 
                Sciences.

            ``(C) Review of meal operations.--The State plan shall 
        provide that the State shall review the meal operations of each 
        school food authority participating in the block grant 
        demonstration program not later than 2 years, and not later 
        than 4 years, after the implementation of the block grant 
        demonstration program in the State.
            ``(D) Groups served.--Subject to subsection (c)(4), the 
        State plan shall describe how the block grant demonstration 
        program will serve specific groups of students in the State.
            ``(E) Eligibility limitations.--
                ``(i) In general.--Subject to clauses (ii) and (iii), 
            the State plan shall describe the income eligibility 
            limitations established for the receipt of free meals and 
            low-cost meals under the block grant demonstration program.
                ``(ii) Eligibility for free meals.--

                    ``(I) Low-income students.--A low-income student 
                who attends a school participating in the block grant 
                demonstration program shall be eligible to receive free 
                school lunches and school breakfasts under the block 
                grant demonstration program.
                    ``(II) Other students.--The State plan may provide 
                that a student who is a member of a family whose income 
                is equal to or more than 130 percent of the poverty 
                line and who attends a school participating in the 
                block grant demonstration program shall be eligible to 
                receive free school lunches and school breakfasts under 
                the block grant demonstration program.

                ``(iii) Eligibility for low-cost meals.--

                    ``(I) In general.--The State plan shall provide 
                that a needy student who attends a school participating 
                in the block grant demonstration program shall be 
                eligible to receive a low-cost meal under the block 
                grant demonstration program.
                    ``(II) Price.--A low-cost meal under subclause (I) 
                shall be offered to a needy student at a price that is 
                less than the price charged to a student who is a 
                member of a family whose income is more than 185 
                percent of the poverty line.
                    ``(III) Group eligibility criteria.--Subject to the 
                other provisions of this subparagraph and to subsection 
                (c)(4), each State may develop group eligibility 
                criteria based on census or other accurate data that 
                measures the income of families with school-aged 
                children in a school district or based on prior year 
                participation.

            ``(F) Opportunity for continued participation.--The State 
        plan shall provide that each school participating in the school 
        lunch program under the other sections of this Act or the 
        school breakfast program under section 4 of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1773), or both, on the day before the 
        effective date of this subparagraph shall be provided the 
        opportunity to participate in the block grant demonstration 
        program. Such continued participation shall include the 
        opportunity for the school to provide the meal or combination 
        of meals offered prior to the effective date of this 
        subparagraph.
            ``(G) Provision of commodities to cash/cloc schools.--
                ``(i) In general.--A State plan may not require a 
            school district, nonprofit private school, or Department of 
            Defense domestic dependents' school described in clause 
            (ii), except on request of the school district, private 
            school, or domestic dependents' school, as the case may be, 
            to accept commodities for use in the school lunch or school 
            breakfast program of the school district, private school, 
            or domestic dependents' school in accordance with this 
            section. The school district, private school, or domestic 
            dependents' school may continue to receive commodity 
            assistance in the form that the school received the 
            assistance as of January 1, 1987.
                ``(ii) Schools.--Clause (i) applies to a school 
            district, nonprofit private school, or Department of 
            Defense domestic dependents' school, as the case may be, 
            that as of January 1, 1987, was receiving all cash payments 
            or all commodity letters of credit in lieu of entitlement 
            commodities for the school lunch program of the school 
            district, private school, or domestic dependents' school 
            under section 18(b).
            ``(H) Privacy.--
                ``(i) In general.--The State plan shall provide for 
            safeguarding and restricting the use and disclosure of 
            information about any student receiving assistance under 
            the block grant demonstration program.
                ``(ii) Recipients of free or low-cost meals.--In 
            providing assistance to schools to serve meals under the 
            block grant demonstration program, the State shall ensure 
            that the schools do not--

                    ``(I) physically segregate students eligible to 
                receive free or low-cost meals on the basis of the 
                eligibility;
                    ``(II) provide for the overt identification of the 
                students by special tokens or tickets, announced or 
                published list of names, or other means; or
                    ``(III) otherwise discriminate against the 
                students.

            ``(I) Other information.--The State plan shall contain such 
        other information as may be reasonably required by the 
        Secretary.
        ``(3) Approval of application and state plan.--The Secretary 
    shall approve an application and State plan that meet the 
    requirements of this section.
        ``(4) Report.--The Secretary may provide a grant under the 
    block grant demonstration program to a State for a fiscal year only 
    if the State agrees that the State will submit, for the fiscal 
    year, a report to the Secretary describing--
            ``(A) the number of students receiving assistance under the 
        block grant demonstration program;
            ``(B) the different types of assistance provided to the 
        students;
            ``(C) the extent to which the assistance was effective in 
        achieving the goals described in subsection (b);
            ``(D) the total number of meals served to students under 
        the block grant demonstration program, including the percentage 
        of the meals served to low-income students and needy students;
            ``(E) the standards and methods that the State is using to 
        ensure the nutritional quality of the meals served under the 
        block grant demonstration program; and
            ``(F) any other information that may be reasonably required 
        by the Secretary.
    ``(e) Use of Funds.--Funds made available under this section may be 
expended only for--
        ``(1) school lunches, school breakfasts, and meal supplements; 
    and
        ``(2) the purchase of equipment needed to improve school food 
    services under the block grant demonstration program.
    ``(f) Enforcement.--
        ``(1) Review of compliance with state plan.--The Secretary 
    shall review and monitor State compliance with this section and the 
    State plan.
        ``(2) Noncompliance.--
            ``(A) In general.--If the Secretary, after providing 
        reasonable notice to a State and opportunity for a hearing, 
        finds that--
                ``(i) there has been a failure by the State to comply 
            substantially with any provision or requirement set forth 
            in the State plan; or
                ``(ii) in the operation of any program or activity for 
            which assistance is provided under the block grant 
            demonstration program, there is a failure by the State to 
            comply substantially with any provision of this section;
        the Secretary shall notify the State of the finding and that no 
        further payments will be made to the State under the block 
        grant demonstration program, or, in the case of noncompliance 
        in the operation of a program or activity, that no further 
        payments to the State will be made with respect to the program 
        or activity, until the Secretary determines that there is no 
        longer any failure to comply or that the noncompliance will be 
        promptly corrected.
            ``(B) Other sanctions.--In the case of a finding of 
        noncompliance made under subparagraph (A), the Secretary may, 
        in addition to, or in lieu of, imposing the sanctions described 
        in subparagraph (A), impose other appropriate sanctions, 
        including recoupment of money improperly expended for purposes 
        prohibited or not authorized by this section and 
        disqualification from the receipt of financial assistance under 
        this section.
            ``(C) Notice.--The notice required under subparagraph (A) 
        shall include a specific identification of any additional 
        sanction being imposed under subparagraph (B).
        ``(3) Issuance of regulations.--The Secretary shall establish 
    by regulation procedures for--
            ``(A) receiving, processing, and determining the validity 
        of complaints concerning any failure of a State to comply with 
        the State plan or any requirement of this section; and
            ``(B) imposing sanctions under this section.
    ``(g) Payments.--
        ``(1) In general.--For each fiscal year, the Secretary shall 
    pay to a State that has an application approved by the Secretary 
    under subsection (d)(3) and that complies with paragraph (3) an 
    amount that is equal to the allotment of the State under subsection 
    (i) for the fiscal year.
        ``(2) Methods of payment.--The Secretary shall make payments to 
    a State for a fiscal year under this section on a quarterly basis--
            ``(A) by issuing letters of credit for the fiscal year, 
        with necessary adjustments on account of overpayments or 
        underpayments, as determined by the Secretary; and
            ``(B) by providing not less than 8 percent but not more 
        than 10 percent of the amount of the allotment to the State in 
        the form of commodities.
        ``(3) Expenditure of funds by states.--Payments to a State from 
    an allotment under subsection (i) for a fiscal yearmay be expended 
by the State only in the fiscal year or in the succeeding fiscal year.
        ``(4) Provision of school lunches and breakfasts.--Subject to 
    the other provisions of this section, a State may provide school 
    lunches and school breakfasts under the block grant demonstration 
    program in any manner determined appropriate by the State.
    ``(h) Audits.--
        ``(1) Requirement.--After the close of each fiscal year, the 
    Secretary shall carry out an audit of the expenditures from amounts 
    received under this section by each State participating in the 
    block grant demonstration program during the fiscal year.
        ``(2) Records.--Each State described in paragraph (1) shall 
    maintain such records as the Secretary may reasonably require to 
    carry out an audit under this subsection.
        ``(3) Repayment of amounts.--Each State shall repay to the 
    United States any amounts determined through an audit under this 
    subsection to have not been expended in accordance with this 
    section or to have not been expended in accordance with the State 
    plan, or the Secretary may offset the amounts against any other 
    amount paid to the State under this section.
    ``(i) Allotments.--
        ``(1) First fiscal year.--
            ``(A) In general.--For the first fiscal year in which the 
        State participates in the block grant demonstration program, 
        the Secretary shall allot to the State, from amounts made 
        available under section 3 of this Act and the Child Nutrition 
        Act of 1966 (42 U.S.C. 1771 et seq.), an amount that is equal 
        to the amount that the Secretary projects would be made 
        available to the State to carry out the school lunch program 
        under the other sections of this Act and the school breakfast 
        program under section 4 of the Child Nutrition Act of 1966 (42 
        U.S.C. 1773) (including the value of commodities made available 
        under the commodity distribution programs established under 
        sections 6 and 14) for the fiscal year.
            ``(B) Basis for projections.--In making a projection under 
        subparagraph (A), the Secretary shall take into account--
                ``(i) participation trends in the State; and
                ``(ii) projected changes in reimbursement rates under 
            the school lunch program under the other sections of this 
            Act, and the school breakfast program under section 4 of 
            the Child Nutrition Act of 1966 (42 U.S.C. 1773).
            ``(C) Publication in the federal register.--The Secretary 
        shall publish in the Federal Register--
                ``(i) not later than February 1, 1996, and each 
            February 1 thereafter, the amount that the Secretary 
            projects will be made available to each State that, as of 
            the date of publication, is not participating in the block 
            grant demonstration program to carry out the school lunch 
            program under the other sections of this Act and the school 
            breakfast program under section 4 of the Child Nutrition 
            Act of 1966 (42 U.S.C. 1773) for the first fiscal year that 
            begins after the date of publication; and
                ``(ii) not later than February 1, 1998, and each 
            February 1 thereafter, with respect to each State for which 
            a projection was made under clause (i)--

                    ``(I) the amount that the Secretary projected would 
                be made available to the State for the fiscal year that 
                ended the preceding September 30; and
                    ``(II) the amount that actually was made available 
                to the State for the fiscal year that ended the 
                preceding September 30.

        ``(2) Later fiscal years.--For each fiscal year after the first 
    fiscal year referred to in paragraph (1), the Secretary shall allot 
    to the State, from amounts made available under section 3 of this 
    Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
    an amount that is equal to the sum of--
            ``(A) the amount allotted under paragraph (1); and
            ``(B) the product of--
                ``(i) the amount allotted under paragraph (1); and
                ``(ii) a factor consisting of the sum of--

                    ``(I) one-half of the percentage change in the 
                series for food away from home of the Consumer Price 
                Index for All Urban Consumers published by the Bureau 
                of Labor Statistics of the Department of Labor for the 
                most recent 12-month period for which such data are 
                available; and
                    ``(II) one-half of the percentage change in the 
                number of children projected to be enrolled in school 
                in the State in the current school year (as of the 
                first day of the fiscal year) as compared to the number 
                of children enrolled in school in the State in the 
                preceding school year.

    ``(j) Relationship to Other Laws.--The value of assistance provided 
to students under the block grant demonstration program shall not be 
considered to be income or resources for any purpose under any Federal 
or State law, including any law relating to taxation and welfare and 
public assistance programs.
    ``(k) Alternative Assistance to Certain Students.--
        ``(1) Assistance.--If, by reason of any other provision of law, 
    a State participating in the block grant demonstration program is 
    prohibited from providing assistance from amounts received from a 
    grant under the block grant demonstration program to a nonprofit 
    private school or Department of Defense domestic dependents' school 
    for a fiscal year to carry out the block grant demonstration 
    program, or the Secretary determines that a State has substantially 
    failed or is unwilling to provide the assistance to a nonprofit 
    private school, Department of Defense domestic dependents' school, 
    or public school, for the fiscal year, the Secretary shall, after 
    consultation with appropriate representatives of the State and 
    affected school, arrange for the provision of the assistance to the 
    school for the fiscal year in accordance with the other sections of 
    this Act.
        ``(2) Reduction in amount of state grant.--If the Secretary 
    arranges for the provision of assistance to a nonprofit private 
    school, Department of Defense domestic dependents' school, or 
    public school in a State for a fiscal year under paragraph (1), the 
    amount of the grant to the State for the fiscal year shall be 
    reduced by the amount of the assistance provided to the school.
    ``(l) Transition Provisions.--
        ``(1) Transition into block grant demonstration program.--A 
    State for which an application and State plan are approved under 
    subsection (d)(3) shall be eligible to use a portion (as determined 
    by the Secretary) of the funds and commodities made available to 
    the State for the preceding fiscal year under the school lunch 
    program under the other sections of this Act, and the school 
    breakfast program under section 4 of the Child Nutrition Act of 
    1966 (42 U.S.C. 1773), to make a transition into the block grant 
    demonstration program.
        ``(2) Transition upon termination of block grant demonstration 
    program.--Upon termination of the block grant demonstration 
    program, a State that participated in the block grant demonstration 
    program shall be eligible to use a portion (as determined by the 
    Secretary) of the funds and commodities made available to the State 
    for the preceding fiscal year under the block grant demonstration 
    program to make a transition back to the operation of the school 
    lunch program under the other sections of this Act and the school 
    breakfast program under section 4 of the Child Nutrition Act of 
    1966 (42 U.S.C. 1773).
    ``(m) Evaluations by the Secretary.--
        ``(1) In general.--Not later than 3 years after the 
    establishment of the block grant demonstration program and not 
    later than 180 days prior to the termination date specified in 
    subsection (n), the Secretary shall conduct an evaluation, and 
    submit a report on the evaluation to Congress (including the 
    comments of the Comptroller General of the United States under 
    paragraph (3)), concerning the block grant demonstration program.
        ``(2) Contents.--In carrying out paragraph (1), the Secretary 
    shall evaluate, using, to the extent practicable, data required to 
    be reported by the States under this section--
            ``(A) the effects of the block grant demonstration program 
        on the nutritional quality of the meals offered;
            ``(B) the degree to which children, especially children who 
        are low-income students and children who are needy students, 
        participated in the block grant demonstration program during 
        each fiscal year covered by the evaluation as compared to the 
        participation of the children in the block grant demonstration 
        program, or in the school lunch program under the other 
        sections of this Act and the school breakfast program under 
        section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773), 
        during the prior fiscal year;
            ``(C) the income distribution of the children served and 
        the amount of Federal assistance the children received under 
        the block grant demonstration program for each fiscal year;
            ``(D) the schools participating in, and the types of meals 
        offered under, the block grant demonstration program during 
        each fiscal year covered by the evaluation as compared to the 
        schools participating in, and the types of meals offered under, 
        the block grant demonstration program, or the school lunch 
        program under the other sections of this Act and the school 
        breakfast program under section 4 of the Child Nutrition Act of 
        1966 (42 U.S.C. 1773), during the prior fiscal year;
            ``(E) how the implementation of the block grant 
        demonstration program differs from the implementation of the 
        school lunch program under the other sections of this Act and 
        the school breakfast program under section 4 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1773);
            ``(F) the effect of the block grant demonstration program 
        on the administrative costs paid by States and schools to carry 
        out school lunch and school breakfast programs;
            ``(G) the effect of the block grant demonstration program 
        on the paperwork required to be completed by schools and 
        parents under school lunch and school breakfast programs; and
            ``(H) such other issues concerning the block grant 
        demonstration program as the Secretary considers appropriate.
        ``(3) Comments by the comptroller general.--The Comptroller 
    General of the United States shall--
            ``(A) comment on the evaluation conducted under paragraph 
        (1), including the methodology used by the Secretary in 
        conducting the evaluation; and
            ``(B) submit the comments to the Secretary for inclusion in 
        the evaluation.
    ``(n) Termination of Authority.--The authority to carry out the 
block grant demonstration program shall terminate on September 30, 
2000.''.
    (b) State Administrative Expenses.--The first sentence of section 
7(a)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)(1)) is 
amended by inserting ``5,'' after ``4,''.
    (c) Prohibition on Waivers.--Section 12(l)(4) of the National 
School Lunch Act (42 U.S.C. 1760(l)(4)) is amended--
        (1) in subparagraph (M), by striking ``and'' at the end;
        (2) in subparagraph (N), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following:
            ``(O) the school nutrition optional block grant 
        demonstration program established under section 5.''.

                Subtitle B--Child Nutrition Act of 1966

SEC. 921. SPECIAL MILK PROGRAM.

    Section 3(a)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
1772(a)(3)) is amended by striking ``the Trust Territory of the Pacific 
Islands'' and inserting ``the Commonwealth of the Northern Mariana 
Islands''.

SEC. 922. FREE AND REDUCED PRICE POLICY STATEMENT.

    Section 4(b)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 
1773(b)(1)) is amended by adding at the end the following:
            ``(E) Free and reduced price policy statement.--After the 
        initial submission, a school shall not be required to submit a 
        free and reduced price policy statement to a State educational 
        agency under this Act unless there is a substantive change in 
        the free and reduced price policy of the school. A routine 
        change in the policy of a school, such as an annual adjustment 
        of the income eligibility guidelines for free and reduced price 
        meals, shall not be sufficient cause for requiring the school 
        to submit a policy statement.''.

SEC. 923. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

    (a) Training and Technical Assistance in Food Preparation.--Section 
4(e)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(e)(1)) is 
amended--
        (1) in subparagraph (A), by striking ``(A)''; and
        (2) by striking subparagraph (B).
    (b) Expansion of Program; Startup and Expansion Costs.--
        (1) In general.--Section 4 of the Act is amended by striking 
    subsections (f) and (g).
        (2) Effective date.--The amendments made by paragraph (1) shall 
    become effective on October 1, 1996.

SEC. 924. STATE ADMINISTRATIVE EXPENSES.

    (a) Use of Funds for Commodity Distribution Administration; 
Studies.--Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) 
is amended--
        (1) by striking subsections (e) and (h); and
        (2) by redesignating subsections (f), (g), and (i) as 
    subsections (e), (f), and (g), respectively.
    (b) Approval of Changes.--Section 7(e) of the Act, as so 
redesignated, is amended--
        (1) by striking ``each year an annual plan'' and inserting 
    ``the initial fiscal year a plan''; and
        (2) by adding at the end the following: ``After submitting the 
    initial plan, a State shall only be required to submit to the 
    Secretary for approval a substantive change in the plan.''.

SEC. 925. REGULATIONS.

    Section 10 of the Child Nutrition Act of 1966 (42 U.S.C. 1779) is 
amended--
        (1) in subsection (b)--
            (A) in paragraph (1), by striking ``(1)''; and
            (B) by striking paragraphs (2) through (4); and
        (2) in subsection (c), by striking ``may'' and inserting 
    ``shall''.

SEC. 926. PROHIBITIONS.

    Section 11(a) of the Child Nutrition Act of 1966 (42 U.S.C. 
1780(a)) is amended by striking ``neither the Secretary nor the State 
shall'' and inserting ``the Secretary shall not''.

SEC. 927. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

    Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784) is 
amended--
        (1) in paragraph (1), by striking ``the Trust Territory of the 
    Pacific Islands'' and inserting ``the Commonwealth of the Northern 
    Mariana Islands''; and
        (2) in the first sentence of paragraph (3)--
            (A) in subparagraph (A), by inserting ``and'' at the end; 
        and
            (B) by striking ``, and (C)'' and all that follows through 
        ``Governor of Puerto Rico''.

SEC. 928. ACCOUNTS AND RECORDS.

    The second sentence of section 16(a) of the Child Nutrition Act of 
1966 (42 U.S.C. 1785(a)) is amended by striking ``at all times be 
available'' and inserting ``be available at any reasonable time''.
    SEC. 929. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
      INFANTS, AND CHILDREN.
    (a) Definitions.--Section 17(b) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(b)) is amended--
        (1) in paragraph (15)(B)(iii), by inserting ``of not more than 
    90 days'' after ``accommodation''; and
        (2) in paragraph (16)--
            (A) in subparagraph (A), by adding ``and'' at the end; and
            (B) in subparagraph (B), by striking ``; and'' and 
        inserting a period; and
            (C) by striking subparagraph (C).
    (b) Secretary's Promotion of WIC.--Section 17(c) of the Act is 
amended by striking paragraph (5).
    (c) Eligible Participants.--Section 17(d) of the Act is amended by 
striking paragraph (4).
    (d) Nutrition Education and Drug Abuse Education.--Section 17(e) of 
the Act is amended--
        (1) in the first sentence of paragraph (1), by striking ``shall 
    ensure'' and all that follows through ``is provided'' and inserting 
    ``shall provide nutrition education and may provide drug abuse 
    education'';
        (2) in paragraph (2), by striking the third sentence;
        (3) by striking paragraph (4) and inserting the following:
        ``(4) Information.--The State agency may provide a local agency 
    with materials describing other programs for which participants in 
    the program may be eligible.'';
        (4) in paragraph (5), by striking ``The State'' and all that 
    follows through ``local agency shall'' and inserting ``A local 
    agency may''; and
        (5) by striking paragraph (6).
    (e) State Plan.--Section 17(f) of the Act is amended--
        (1) in paragraph (1)--
            (A) in subparagraph (A)--
                (i) by striking ``annually to the Secretary, by a date 
            specified by the Secretary, a'' and inserting ``to the 
            Secretary, by a date specified by the Secretary, an 
            initial''; and
                (ii) by adding at the end the following: ``After 
            submitting the initial plan, a State shall only be required 
            to submit to the Secretary for approval a substantive 
            change in the plan.'';
            (B) in subparagraph (C)--
                (i) by striking clause (iii) and inserting the 
            following:
        ``(iii) a plan to coordinate operations under the program with 
    other services or programs that may benefit participants in, and 
    applicants for, the program;'';
                (ii) in clause (vi), by inserting after ``in the 
            State'' the following: ``(including a plan to improve 
            access to the program for participants and prospective 
            applicants who are employed, or who reside in rural 
            areas)'';
                (iii) by striking clauses (vii), (ix), (x), and (xii);
                (iv) in clause (xiii), by striking ``may require'' and 
            inserting ``may reasonably require''; and
                (v) by redesignating clauses (viii), (xi), and (xiii), 
            as so amended, as clauses (vii), (viii), and (ix), 
            respectively;
            (C) by striking subparagraph (D); and
            (D) by redesignating subparagraph (E) as subparagraph (D);
        (2) by striking paragraphs (2), (6), (8), (20), (22), and (24);
        (3) in the second sentence of paragraph (5), by striking ``at 
    all times be available'' and inserting ``be available at any 
    reasonable time'';
        (4) in paragraph (9)(B), by striking the second sentence;
        (5) in the first sentence of paragraph (11), by striking ``, 
    including standards that will ensure sufficient State agency 
    staff'';
        (6) in paragraph (12), by striking the third sentence;
        (7) in paragraph (14), by striking ``shall'' and inserting 
    ``may'';
        (8) in paragraph (17), by striking ``and to accommodate'' and 
    all that follows through ``facilities'';
        (9) in paragraph (19), by striking ``shall'' and inserting 
    ``may''; and
        (10) by redesignating paragraphs (3), (4), (5), (7), (9) 
    through (19), (21), and (23), as so amended, as paragraphs (2), 
    (3), (4), (5), (6) through (16), (17), and (18), respectively.
    (f) Information.--Section 17(g) of the Act is amended--
        (1) in paragraph (5), by striking ``the report required under 
    subsection (d)(4)'' and inserting ``reports on program participant 
    characteristics''; and
        (2) by striking paragraph (6).
    (g) Procurement of Infant Formula.--
        (1) In general.--Section 17(h) of the Act is amended--
            (A) in paragraph (4)(E), by striking ``and, on'' and all 
        that follows through ``(d)(4)'';
            (B) in paragraph (8)--
                (i) by striking subparagraphs (A), (C), and (M);
                (ii) in subparagraph (G)--

                    (I) in clause (i), by striking ``(i)''; and
                    (II) by striking clauses (ii) through (ix);

                (iii) in subparagraph (I), by striking ``Secre- tary--
            '' and all that follows through ``(v) may'' and inserting 
            ``Secretary may'';
                (iv) by redesignating subparagraphs (B) and (D) through 
            (L) as subparagraphs (A) and (B) through (J), respectively;
                (v) in subparagraph (A)(i), as so redesignated, by 
            striking ``subparagraphs (C), (D), and (E)(iii), in 
            carrying out subparagraph (A),'' and inserting 
            ``subparagraphs (B) and (C)(iii),'';
                (vi) in subparagraph (B)(i), as so redesignated, by 
            striking ``subparagraph (B)'' each place it appears and 
            inserting ``subparagraph (A)''; and
                (vii) in subparagraph (C)(iii), as so redesignated, by 
            striking ``subparagraph (B)'' and inserting ``subparagraph 
            (A)''; and
            (C) in paragraph (10)(A), by striking ``shall'' and 
        inserting ``may''.
        (2) Application.--The amendments made by paragraph (1) shall 
    not apply to a contract for the procurement of infant formula under 
    section 17(h)(8) of the Act that is in effect on the effective date 
    of this subsection.
    (h) National Advisory Council on Maternal, Infant, and Fetal 
Nutrition.--Section 17(k)(3) of the Act is amended by striking 
``Secretary shall designate'' and inserting ``Council shall elect''.
    (i) Completed Study; Community College Demonstration; Grants for 
Information and Data System.--Section 17 of the Act is amended by 
striking subsections (n), (o), and (p).
    (j) Disqualification of Vendors Who Are Disqualified Under the Food 
Stamp Program.--Section 17 of the Act, as so amended, is further 
amended by adding at the end the following:
    ``(n) Disqualification of Vendors Who Are Disqualified Under the 
Food Stamp Program.--
        ``(1) In general.--The Secretary shall issue regulations 
    providing criteria for the disqualification under this section of 
    an approved vendor that is disqualified from accepting benefits 
    under the food stamp program established under the Food Stamp Act 
    of 1977 (7 U.S.C. 2011 et seq.).
        ``(2) Terms.--A disqualification under paragraph (1)--
            ``(A) shall be for the same period as the disqualification 
        from the program referred to in paragraph (1);
            ``(B) may begin at a later date than the disqualification 
        from the program referred to in paragraph (1); and
            ``(C) shall not be subject to judicial or administrative 
        review.''.

SEC. 930. CASH GRANTS FOR NUTRITION EDUCATION.

    Section 18 of the Child Nutrition Act of 1966 (42 U.S.C. 1787) is 
repealed.

SEC. 931. NUTRITION EDUCATION AND TRAINING.

    (a) Findings.--Section 19 of the Child Nutrition Act of 1966 (42 
U.S.C. 1788) is amended--
        (1) in subsection (a), by striking ``that--'' and all that 
    follows through the period at the end and inserting ``that 
    effective dissemination of scientifically valid information to 
    children participating or eligible to participate in the school 
    lunch and related child nutrition programs should be encouraged.''; 
    and
        (2) in subsection (b), by striking ``encourage'' and all that 
    follows through ``establishing'' and inserting ``establish''.
    (b) Use of Funds.--Section 19(f) of the Act is amended--
        (1) in paragraph (1)--
            (A) by striking subparagraph (B); and
            (B) in subparagraph (A)--
                (i) by striking ``(A)'';
                (ii) by striking clauses (ix) through (xix);
                (iii) by redesignating clauses (i) through (viii) and 
            (xx) as subparagraphs (A) through (H) and (I), 
            respectively; and
                (iv) in subparagraph (H), as so redesignated, by 
            inserting ``and'' at the end;
        (2) by striking paragraphs (2) and (4); and
        (3) by redesignating paragraph (3) as paragraph (2).
    (c) Accounts, Records, and Reports.--The second sentence of section 
19(g)(1) of the Act is amended by striking ``at all times be 
available'' and inserting ``be available at any reasonable time''.
    (d) State Coordinators for Nutrition; State Plan.--Section 19(h) of 
the Act is amended--
        (1) in the second sentence of paragraph (1)--
            (A) by striking ``as provided in paragraph (2) of this 
        subsection''; and
            (B) by striking ``as provided in paragraph (3) of this 
        subsection'';
        (2) in paragraph (2), by striking the second and third 
    sentences; and
        (3) by striking paragraph (3).
    (e) Authorization of Appropriations.--Section 19(i) of the Act is 
amended--
        (1) in the first sentence of paragraph (2)(A), by striking 
    ``and each succeeding fiscal year'';
        (2) by redesignating paragraphs (3) and (4) as paragraphs (4) 
    and (5), respectively; and
        (3) by inserting after paragraph (2) the following:
        ``(3) Fiscal years 1997 through 2002.--
            ``(A) In general.--There are authorized to be appropriated 
        to carry out this section $10,000,000 for each of fiscal years 
        1997 through 2002.
            ``(B) Grants.--
                ``(i) In general.--Grants to each State from the 
            amounts made available under subparagraph (A) shall be 
            based on a rate of 50 cents for each child enrolled in 
            schools or institutions within the State, except that no 
            State shall receive an amount less than $75,000 per fiscal 
            year.
                ``(ii) Insufficient funds.--If the amount made 
            available for any fiscal year is insufficient to pay the 
            amount to which each State is entitled under clause (i), 
            the amount of each grant shall be ratably reduced.''.
    (f) Assessment.--Section 19 of the Act is amended by striking 
subsection (j).
    (g) Effective Date.--The amendments made by subsection (e) shall 
become effective on October 1, 1996.

SEC. 932. BREASTFEEDING PROMOTION PROGRAM.

    Section 21 of the Child Nutrition Act of 1966 (42 U.S.C. 1790) is 
repealed.

            TITLE X--FOOD STAMPS AND COMMODITY DISTRIBUTION

SEC. 1001. SHORT TITLE.

    This title may be cited as the ``Food Stamp Reform and Commodity 
Distribution Act of 1995''.

                     Subtitle A--Food Stamp Program

SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.

    Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is 
amended by striking ``Except as provided'' and all that follows and 
inserting the following: ``The certification period shall not exceed 12 
months, except that the certification period may be up to 24 months if 
all adult household members are elderly or disabled. A State agency 
shall have at least 1 contact with each certified household every 12 
months.''.

SEC. 1012. DEFINITION OF COUPON.

    Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C. 2012(d)) is 
amended by striking ``or type of certificate'' and inserting ``type of 
certificate, authorization card, cash or check issued in lieu of a 
coupon, or an access device, including an electronic benefit transfer 
card or personal identification number,''.

SEC. 1013. TREATMENT OF CHILDREN LIVING AT HOME.

    The second sentence of section 3(i) of the Food Stamp Act of 1977 
(7 U.S.C. 2012(i)) is amended by striking ``(who are not themselves 
parents living with their children or married and living with their 
spouses)''.

SEC. 1014. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSEHOLD 
              DETERMINATIONS.

    Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 2012(i)) is 
amended by inserting after the third sentence the following: 
``Notwithstanding the preceding sentences, a State may establish 
criteria that prescribe when individuals who live together, and who 
would be allowed to participate as separate households under the 
preceding sentences, shall be considered a single household, without 
regard to the common purchase of food and preparation of meals.''.

SEC. 1015. ADJUSTMENT OF THRIFTY FOOD PLAN.

    The second sentence of section 3(o) of the Food Stamp Act of 1977 
(7 U.S.C. 2012(o)) is amended--
        (1) by striking ``shall (1) make'' and inserting the following: 
    ``shall--
        ``(1) make'';
        (2) by striking ``scale, (2) make'' and inserting ``scale;
        ``(2) make'';
        (3) by striking ``Alaska, (3) make'' and inserting the 
    following: ``Alaska;
        ``(3) make''; and
        (4) by striking ``Columbia, (4) through'' and all that follows 
    through the end of the subsection and inserting the following: 
    ``Columbia; and
        ``(4) on October 1, 1996, and each October 1 thereafter, adjust 
    the cost of the diet to reflect the cost of the diet, in the 
    preceding June, and round the result to the nearest lower dollar 
    increment for each household size, except that on October 1, 1996, 
    the Secretary may not reduce the cost of the diet in effect on 
    September 30, 1996.''.

SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.

    Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C. 
2012(s)(2)(C)) is amended by inserting ``for not more than 90 days'' 
after ``temporary accommodation''.

SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.

    Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is 
amended by striking ``(b) The Secretary'' and inserting the following:
    ``(b) Eligibility Standards.--Except as otherwise provided in this 
Act, the Secretary''.

SEC. 1018. EARNINGS OF STUDENTS.

    Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)(7)) 
is amended by striking ``21'' and inserting ``19''.

SEC. 1019. ENERGY ASSISTANCE.

    (a) In General.--Section 5(d) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(d)) is amended by striking paragraph (11) and inserting the 
following: ``(11) a 1-time payment or allowance made under a Federal or 
State law for the costs of weatherization or emergency repair or 
replacement of an unsafe or inoperative furnace or other heating or 
cooling device,''.
    (b) Conforming Amendments.--
        (1) Section 5(k) of the Act (7 U.S.C. 2014(k)) is amended--
            (A) in paragraph (1)--
                (i) in subparagraph (A), by striking ``plan for aid to 
            families with dependent children approved'' and inserting 
            ``program funded''; and
                (ii) in subparagraph (B), by striking ``, not including 
            energy or utility-cost assistance,'';
            (B) in paragraph (2), by striking subparagraph (C) and 
        inserting the following:
        ``(C) a payment or allowance described in subsection 
    (d)(11);''; and
            (C) by adding at the end the following:
        ``(4) Third party energy assistance payments.--
            ``(A) Energy assistance payments.--For purposes of 
        subsection (d)(1), a payment made under a Federal or State law 
        to provide energy assistance to a household shall be considered 
        money payable directly to the household.
            ``(B) Energy assistance expenses.--For purposes of 
        subsection (e)(7), an expense paid on behalf of a household 
        under a Federal or State law to provide energy assistance shall 
        be considered an out-of-pocket expense incurred and paid by the 
        household.''.
        (2) Section 2605(f) of the Low-Income Home Energy Assistance 
    Act of 1981 (42 U.S.C. 8624(f)) is amended--
            (A) by striking ``(f)(1) Notwithstanding'' and inserting 
        ``(f) Notwithstanding'';
            (B) in paragraph (1), by striking ``food stamps,''; and
            (C) by striking paragraph (2).

SEC. 1020. DEDUCTIONS FROM INCOME.

    (a) In General.--Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 
2014) is amended by striking subsection (e) and inserting the 
following:
    ``(e) Deductions From Income.--
        ``(1) Standard deduction.--The Secretary shall allow a standard 
    deduction for each household in the 48 contiguous States and the 
    District of Columbia, Alaska, Hawaii, Guam, and the Virgin Islands 
    of the United States of $134, $229, $189, $269, and $118, 
    respectively.
        ``(2) Earned income deduction.--
            ``(A) Definition of earned income.--In this paragraph, the 
        term `earned income' does not include income excluded by 
        subsection (d) or any portion of income earned under a work 
        supplementation or support program, as defined under section 
        16(b), that is attributable to public assistance.
            ``(B) Deduction.--Except as provided in subparagraph (C), a 
        household with earned income shall be allowed a deduction of 20 
        percent of all earned income (other than income excluded by 
        subsection (d)) to compensate for taxes, other mandatory 
        deductions from salary, and work expenses.
            ``(C) Exception.--The deduction described in subparagraph 
        (B) shall not be allowed with respect to determining an 
        overissuance due to the failure of a household to report earned 
        income in a timely manner.
        ``(3) Dependent care deduction.--
            ``(A) In general.--A household shall be entitled, with 
        respect to expenses (other than excluded expenses described in 
        subparagraph (B)) for dependent care, to a dependent care 
        deduction, the maximum allowable level of which shall be $200 
        per month for each dependent child under 2 years of age and 
        $175 per month for each other dependent, for the actual cost of 
        payments necessary for the care of a dependent if the care 
        enables a household member to accept or continue employment, or 
        training or education that is preparatory for employment.
            ``(B) Excluded expenses.--The excluded expenses referred to 
        in subparagraph (A) are--
                ``(i) expenses paid on behalf of the household by a 
            third party;
                ``(ii) amounts made available and excluded for the 
            expenses referred to in subparagraph (A) under subsection 
            (d)(3); and
                ``(iii) expenses that are paid under section 6(d)(4).
        ``(4) Deduction for child support payments.--
            ``(A) In general.--A household shall be entitled to a 
        deduction for child support payments made by a household member 
        to or for an individual who is not a member of the household if 
        the household member is legally obligated to make the payments.
            ``(B) Methods for determining amount.--The Secretary may 
        prescribe by regulation the methods, including calculation on a 
        retrospective basis, that a State agency shall use to determine 
        the amount of the deduction for child support payments.
        ``(5) Homeless shelter allowance.--A State agency may develop a 
    standard homeless shelter allowance, which shall not exceed $139 
    per month, for such expenses as may reasonably be expected to be 
    incurred by households in which all members are homeless 
    individuals but are not receiving free shelter throughout the 
    month. A State agency that develops the allowance may use the 
    allowance in determining eligibility and allotments for the 
    households, except that the State agency may prohibit the use of 
    the allowance for households with extremely low shelter costs.
        ``(6) Excess medical expense deduction.--
            ``(A) In general.--A household containing an elderly or 
        disabled member shall be entitled, with respect to expenses 
        other than expenses paid on behalf of the household by a third 
        party, to an excess medical expense deduction for the portion 
        of the actual costs of allowable medical expenses, incurred by 
        the elderly or disabled member, exclusive of special diets, 
        that exceeds $35 per month.
            ``(B) Method of claiming deduction.--
                ``(i) In general.--A State agency shall offer an 
            eligible household under subparagraph (A) a method of 
            claiming a deduction for recurring medical expenses that 
            are initially verified under the excess medical expense 
            deduction in lieu of submitting information or verification 
            on actual expenses on a monthly basis.
                ``(ii) Method.--The method described in clause (i) 
            shall--

                    ``(I) be designed to minimize the burden for the 
                eligible elderly or disabled household member choosing 
                to deduct the recurrent medical expenses of the member 
                pursuant to the method;
                    ``(II) rely on reasonable estimates of the expected 
                medical expenses of the member for the certification 
                period (including changes that can be reasonably 
                anticipated based on available information about the 
                medical condition of the member, public or private 
                medical insurance coverage, and the current verified 
                medical expenses incurred by the member); and
                    ``(III) not require further reporting or 
                verification of a change in medical expenses if such a 
                change has been anticipated for the certification 
                period.

        ``(7) Excess shelter expense deduction.--
            ``(A) In general.--A household shall be entitled, with 
        respect to expenses other than expenses paid on behalf of the 
        household by a third party, to an excess shelter expense 
        deduction to the extent that the monthly amount expended by a 
        household for shelter exceeds an amount equal to 50 percent of 
        monthly household income after all other applicable deductions 
        have been allowed.
            ``(B) Maximum amount of deduction.--In the case of a 
        household that does not contain an elderly or disabled 
        individual, the excess shelter expense deduction shall not 
        exceed--
                ``(i) in the 48 contiguous States and the District of 
            Columbia, $247 per month; and
                ``(ii) in Alaska, Hawaii, Guam, and the Virgin Islands 
            of the United States, $429, $353, $300, and $182 per month, 
            respectively.
            ``(C) Standard utility allowance.--
                ``(i) In general.--In computing the excess shelter 
            expense deduction, a State agency may use a standard 
            utility allowance in accordance with regulations 
            promulgated by the Secretary, except that a State agency 
            may use an allowance that does not fluctuate within a year 
            to reflect seasonal variations.
                ``(ii) Restrictions on heating and cooling expenses.--
            An allowance for a heating or cooling expense may not be 
            used in the case of a household that--

                    ``(I) does not incur a heating or cooling expense, 
                as the case may be;
                    ``(II) does incur a heating or cooling expense but 
                is located in a public housing unit that has central 
                utility meters and charges households, with regard to 
                the expense, only for excess utility costs; or
                    ``(III) shares the expense with, and lives with, 
                another individual not participating in the food stamp 
                program, another household participating in the food 
                stamp program, or both, unless the allowance is 
                prorated between the household and the other 
                individual, household, or both.

                ``(iii) Mandatory allowance.--

                    ``(I) In general.--A State agency may make the use 
                of a standard utility allowance mandatory for all 
                households with qualifying utility costs if--

                        ``(aa) the State agency has developed 1 or more 
                    standards that include the cost of heating and 
                    cooling and 1 or more standards that do not include 
                    the cost of heating and cooling; and
                        ``(bb) the Secretary finds that the standards 
                    will not result in an increased cost to the 
                    Secretary.

                    ``(II) Household election.--A State agency that has 
                not made the use of a standard utility allowance 
                mandatory under subclause (I) shall allow a household 
                to switch, at the end of a certification period, 
                between the standard utility allowance and a deduction 
                based on the actual utility costs of the household.

                ``(iv) Availability of allowance to recipients of 
            energy assistance.--

                    ``(I) In general.--Subject to subclause (II), if a 
                State agency elects to use a standard utility allowance 
                that reflects heating or cooling costs, the standard 
                utility allowance shall be made available to households 
                receiving a payment, or on behalf of which a payment is 
                made, under the Low-Income Home Energy Assistance Act 
                of 1981 (42 U.S.C. 8621 et seq.) or other similar 
                energy assistance program, if the household still 
                incurs out-of-pocket heating or cooling expenses in 
                excess of any assistance paid on behalf of the 
                household to an energy provider.
                    ``(II) Separate allowance.--A State agency may use 
                a separate standard utility allowance for households on 
                behalf of which a payment described in subclause (I) is 
                made, but may not be required to do so.
                    ``(III) States not electing to use separate 
                allowance.--A State agency that does not elect to use a 
                separate allowance but makes a single standard utility 
                allowance available to households incurring heating or 
                cooling expenses (other than a household described in 
                subclause (I) or (II) of subparagraph (C)(ii)) may not 
                be required to reduce the allowance due to the 
                provision (directly or indirectly) of assistance under 
                the Low-Income Home Energy Assistance Act of 1981 (42 
                U.S.C. 8621 et seq.).
                    ``(IV) Proration of assistance.--For the purpose of 
                the food stamp program, assistance provided under the 
                Low-Income Home Energy Assistance Act of 1981 (42 
                U.S.C. 8621 et seq.) shall be considered to be prorated 
                over the entire heating or cooling season for which the 
                assistance was provided.''.

    (b) Conforming Amendment.--Section 11(e)(3) of the Act (7 U.S.C. 
2020(e)(3)) is amended by striking ``. Under rules prescribed'' and all 
that follows through ``verifies higher expenses''.

SEC. 1021. VEHICLE ALLOWANCE.

    Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is 
amended by striking paragraph (2) and inserting the following:
        ``(2) Included assets.--
            ``(A) In general.--Subject to the other provisions of this 
        paragraph, the Secretary shall, in prescribing inclusions in, 
        and exclusions from, financial resources, follow the 
        regulations in force as of June 1, 1982 (other than those 
        relating to licensed vehicles and inaccessible resources).
            ``(B) Additional included assets.--The Secretary shall 
        include in financial resources--
                ``(i) any boat, snowmobile, or airplane used for 
            recreational purposes;
                ``(ii) any vacation home;
                ``(iii) any mobile home used primarily for vacation 
            purposes;
                ``(iv) subject to subparagraph (C), any licensed 
            vehicle that is used for household transportation or to 
            obtain or continue employment to the extent that the fair 
            market value of the vehicle exceeds $4,600; and
                ``(v) any savings or retirement account (including an 
            individual account), regardless of whether there is a 
            penalty for early withdrawal.
            ``(C) Excluded vehicles.--A vehicle (and any other 
        property, real or personal, to the extent the property is 
        directly related to the maintenance or use of the vehicle) 
        shall not be included in financial resources under this 
        paragraph if the vehicle is--
                ``(i) used to produce earned income;
                ``(ii) necessary for the transportation of a physically 
            disabled household member; or
                ``(iii) depended on by a household to carry fuel for 
            heating or water for home use and provides the primary 
            source of fuel or water, respectively, for the 
            household.''.
SEC. 1022. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED AS INCOME.
    Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2014(k)(2)) 
is amended--
        (1) by striking subparagraph (F); and
        (2) by redesignating subparagraphs (G) and (H) as subparagraphs 
    (F) and (G), respectively.
SEC 1023. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM 
REQUIREMENTS.
    Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2015(b)(1)) 
is amended--
        (1) in clause (i), by striking ``six months'' and inserting ``1 
    year''; and
        (2) in clause (ii), by striking ``1 year'' and inserting ``2 
    years''.

SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

    Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(b)(1)(iii)) is amended--
        (1) in subclause (II), by striking ``or'' at the end;
        (2) in subclause (III), by striking the period at the end and 
    inserting ``; or''; and
        (3) by inserting after subclause (III) the following:
            ``(IV) a conviction of an offense under subsection (b) or 
        (c) of section 15 involving an item covered by subsection (b) 
        or (c) of section 15 having a value of $500 or more.''.

SEC. 1025. DISQUALIFICATION.

    (a) In General.--Section 6(d) of the Food Stamp Act of 1977 (7 
U.S.C. 2015(d)) is amended by striking ``(d)(1) Unless otherwise 
exempted by the provisions'' and all that follows through the end of 
paragraph (1) and inserting the following:
    ``(d) Conditions of Participation.--
        ``(1) Work requirements.--
            ``(A) In general.--No physically and mentally fit 
        individual over the age of 15 and under the age of 60 shall be 
        eligible to participate in the food stamp program if the 
        individual--
                ``(i) refuses, at the time of application and every 12 
            months thereafter, to register for employment in a manner 
            prescribed by the Secretary;
                ``(ii) refuses without good cause to participate in an 
            employment and training program under paragraph (4), to the 
            extent required by the State agency;
                ``(iii) refuses without good cause to accept an offer 
            of employment, at a site or plant not subject to a strike 
            or lockout at the time of the refusal, at a wage not less 
            than the higher of--

                    ``(I) the applicable Federal or State minimum wage; 
                or
                    ``(II) 80 percent of the wage that would have 
                governed had the minimum hourly rate under section 
                6(a)(1) of the Fair Labor Standards Act of 1938 (29 
                U.S.C. 206(a)(1)) been applicable to the offer of 
                employment;

                ``(iv) refuses without good cause to provide a State 
            agency with sufficient information to allow the State 
            agency to determine the employment status or the job 
            availability of the individual;
                ``(v) voluntarily and without good cause--

                    ``(I) quits a job; or
                    ``(II) reduces work effort and, after the 
                reduction, the individual is working less than 30 hours 
                per week; or

                ``(vi) fails to comply with section 20.
            ``(B) Household ineligibility.--If an individual who is the 
        head of a household becomes ineligible to participate in the 
        food stamp program under subparagraph (A), the household shall, 
        at the option of the State agency, become ineligible to 
        participate in the food stamp program for a period, determined 
        by the State agency, that does not exceed the lesser of--
                ``(i) the duration of the ineligibility of the 
            individual determined under subparagraph (C); or
                ``(ii) 180 days.
            ``(C) Duration of ineligibility.--
                ``(i) First violation.--The first time that an 
            individual becomes ineligible to participate in the food 
            stamp program under subparagraph (A), the individual shall 
            remain ineligible until the later of--

                    ``(I) the date the individual becomes eligible 
                under subparagraph (A);
                    ``(II) the date that is 1 month after the date the 
                individual became ineligible; or
                    ``(III) a date determined by the State agency that 
                is not later than 3 months after the date the 
                individual became ineligible.

                ``(ii) Second violation.--The second time that an 
            individual becomes ineligible to participate in the food 
            stamp program under subparagraph (A), the individual shall 
            remain ineligible until the later of--

                    ``(I) the date the individual becomes eligible 
                under subparagraph (A);
                    ``(II) the date that is 3 months after the date the 
                individual became ineligible; or
                    ``(III) a date determined by the State agency that 
                is not later than 6 months after the date the 
                individual became ineligible.

                ``(iii) Third or subsequent violation.--The third or 
            subsequent time that an individual becomes ineligible to 
            participate in the food stamp program under subparagraph 
            (A), the individual shall remain ineligible until the later 
            of--

                    ``(I) the date the individual becomes eligible 
                under subparagraph (A);
                    ``(II) the date that is 6 months after the date the 
                individual became ineligible;
                    ``(III) a date determined by the State agency; or
                    ``(IV) at the option of the State agency, 
                permanently.

            ``(D) Administration.--
                ``(i) Good cause.--The Secretary shall determine the 
            meaning of good cause for the purpose of this paragraph.
                ``(ii) Voluntary quit.--The Secretary shall determine 
            the meaning of voluntarily quitting and reducing work 
            effort for the purpose of this paragraph.
                ``(iii) Determination by state agency.--

                    ``(I) In general.--Subject to subclause (II) and 
                clauses (i) and (ii), a State agency shall determine--

                        ``(aa) the meaning of any term in subparagraph 
                    (A);
                        ``(bb) the procedures for determining whether 
                    an individual is in compliance with a requirement 
                    under subparagraph (A); and
                        ``(cc) whether an individual is in compliance 
                    with a requirement under subparagraph (A).

                    ``(II) Not less restrictive.--A State agency may 
                not determine a meaning, procedure, or determination 
                under subclause (I) to be less restrictive than a 
                comparable meaning, procedure, or determination under a 
                State program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.).

                ``(iv) Strike against the government.--For the purpose 
            of subparagraph (A)(v), an employee of the Federal 
            Government, a State, or a political subdivision of a State, 
            who is dismissed for participating in a strike against the 
            Federal Government, the State, or the political subdivision 
            of the State shall be considered to have voluntarily quit 
            without good cause.
                ``(v) Selecting a head of household.--

                    ``(I) In general.--For the purpose of this 
                paragraph, the State agency shall allow the household 
                to select any adult parent of a child in the household 
                as the head of the household if all adult household 
                members making application under the food stamp program 
                agree to the selection.
                    ``(II) Time for making designation.--A household 
                may designate the head of the household under subclause 
                (I) each time the household is certified for 
                participation in the food stamp program, but may not 
                change the designation during a certification period 
                unless there is a change in the composition of the 
                household.

                ``(vi) Change in head of household.--If the head of a 
            household leaves the household during a period in which the 
            household is ineligible to participate in the food stamp 
            program under subparagraph (B)--

                    ``(I) the household shall, if otherwise eligible, 
                become eligible to participate in the food stamp 
                program; and
                    ``(II) if the head of the household becomes the 
                head of another household, the household that becomes 
                headed by the individual shall become ineligible to 
                participate in the food stamp program for the remaining 
                period of ineligibility.''.

    (b) Conforming Amendment.--
        (1) The second sentence of section 17(b)(2) of the Act (7 
    U.S.C. 2026(b)(2)) is amended by striking ``6(d)(1)(i)'' and 
    inserting ``6(d)(1)(A)(i)''.
        (2) Section 20 of the Act (7 U.S.C. 2029) is amended by 
    striking subsection (f) and inserting the following:
    ``(f) Disqualification.--An individual or a household may become 
ineligible under section 6(d)(1) to participate in the food stamp 
program for failing to comply with this section.''.

SEC. 1026. CARETAKER EXEMPTION.

    Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)) 
is amended by striking subparagraph (B) and inserting the following: 
``(B) a parent or other member of a household with responsibility for 
the care of (i) a dependent child under the age of 6 or any lower age 
designated by the State agency that is not under the age of 1, or (ii) 
an incapacitated person;''.

SEC. 1027. EMPLOYMENT AND TRAINING.

    (a) In General.--Section 6(d)(4) of the Food Stamp Act of 1977 (7 
U.S.C. 2015(d)(4)) is amended--
        (1) in subparagraph (A)--
            (A) by striking ``Not later than April 1, 1987, each'' and 
        inserting ``Each'';
            (B) by inserting ``work,'' after ``skills, training,''; and
            (C) by adding at the end the following: ``Each component of 
        an employment and training program carried out under this 
        paragraph shall be delivered through a statewide workforce 
        development system, unless the component is not available 
        locally through the statewide workforce development system.'';
        (2) in subparagraph (B)--
            (A) in the matter preceding clause (i), by striking the 
        colon at the end and inserting the following: ``, except that 
        the State agency shall retain the option to apply employment 
        requirements prescribed under this subparagraph to a program 
        applicant at the time of application:'';
            (B) in clause (i), by striking ``with terms and 
        conditions'' and all that follows through ``time of 
        application''; and
            (C) in clause (iv)--
                (i) by striking subclauses (I) and (II); and
                (ii) by redesignating subclauses (III) and (IV) as 
            subclauses (I) and (II), respectively;
        (3) in subparagraph (D)--
            (A) in clause (i), by striking ``to which the application'' 
        and all that follows through ``30 days or less'';
            (B) in clause (ii), by striking ``but with respect'' and 
        all that follows through ``child care''; and
            (C) in clause (iii), by striking ``, on the basis of'' and 
        all that follows through ``clause (ii)'' and inserting ``the 
        exemption continues to be valid'';
        (4) in subparagraph (E), by striking the third sentence;
        (5) in subparagraph (G)--
            (A) by striking ``(G)(i) The State'' and inserting ``(G) 
        The State''; and
            (B) by striking clause (ii);
        (6) in subparagraph (H), by striking ``(H)(i) The Secretary'' 
    and all that follows through ``(ii) Federal funds'' and inserting 
    ``(H) Federal funds'';
        (7) in subparagraph (I)(i)(II), by striking ``, or was in 
    operation,'' and all that follows through ``Social Security Act'' 
    and inserting the following: ``), except that no such payment or 
    reimbursement shall exceed the applicable local market rate'';
        (8)(A) by striking subparagraphs (K) and (L) and inserting the 
    following:
            ``(K) Limitation on funding.--Notwithstanding any other 
        provision of this paragraph, the amount of funds a State agency 
        uses to carry out this paragraph (including under subparagraph 
        (I)) for participants who are receiving benefits under a State 
        program funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.) shall not exceed the amount of 
        funds the State agency used in fiscal year 1995 to carry out 
        this paragraph for participants who were receiving benefits in 
        fiscal year 1995 under a State program funded under part A of 
        title IV of the Act (42 U.S.C. 601 et seq.).''; and
        (B) by redesignating subparagraphs (M) and (N) as subparagraphs 
    (L) and (M), respectively; and
        (9) in subparagraph (L), as redesignated by paragraph (8)(B)--
            (A) by striking ``(L)(i) The Secretary'' and inserting 
        ``(L) The Secretary''; and
            (B) by striking clause (ii).
    (b) Funding.--Section 16(h) of the Act (7 U.S.C. 2025(h)) is 
amended by striking ``(h)(1)(A) The Secretary'' and all that follows 
through the end of paragraph (1) and inserting the following:
    ``(h) Funding of Employment and Training Programs.--
        ``(1) In general.--
            ``(A) Amounts.--To carry out employment and training 
        programs, the Secretary shall reserve for allocation to State 
        agencies from funds made available for each fiscal year under 
        section 18(a)(1) the amount of--
                ``(i) for fiscal year 1996, $77,000,000;
                ``(ii) for fiscal year 1997, $79,000,000;
                ``(iii) for fiscal year 1998, $81,000,000;
                ``(iv) for fiscal year 1999, $84,000,000;
                ``(v) for fiscal year 2000, $86,000,000;
                ``(vi) for fiscal year 2001, $88,000,000; and
                ``(vii) for fiscal year 2002, $90,000,000.
            ``(B) Allocation.--The Secretary shall allocate the amounts 
        reserved under subparagraph (A) among the State agencies using 
        a reasonable formula (as determined by the Secretary) that 
        gives consideration to the population in each State affected by 
        section 6(o).
            ``(C) Reallocation.--
                ``(i) Notification.--A State agency shall promptly 
            notify the Secretary if the State agency determines that 
            the State agency will not expend all of the funds allocated 
            to the State agency under subparagraph (B).
                ``(ii) Reallocation.--On notification under clause (i), 
            the Secretary shall reallocate the funds that the State 
            agency will not expend as the Secretary considers 
            appropriate and equitable.
            ``(D) Minimum allocation.--Notwithstanding subparagraphs 
        (A) through (C), the Secretary shall ensure that each State 
        agency operating an employment and training program shall 
        receive not less than $50,000 in each fiscal year.''.
    (c) Additional Matching Funds.--Section 16(h)(2) of the Act (7 
U.S.C. 2025(h)(2)) is amended by inserting before the period at the end 
the following: ``, including the costs for case management and casework 
to facilitate the transition from economic dependency to self-
sufficiency through work''.
    (d) Reports.--Section 16(h) of the Act (7 U.S.C. 2025(h)) is 
amended--
        (1) in paragraph (5)--
            (A) by striking ``(5)(A) The Secretary'' and inserting 
        ``(5) The Secretary''; and
            (B) by striking subparagraph (B); and
        (2) by striking paragraph (6).

SEC. 1028. COMPARABLE TREATMENT FOR DISQUALIFICATION.

    (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015) is amended--
        (1) by redesignating subsection (i), as added by section 107, 
    as subsection (p); and
        (2) by inserting after subsection (h) the following:
    ``(i) Comparable Treatment for Disqualification.--
        ``(1) In general.--If a disqualification is imposed on a member 
    of a household for a failure of the member to perform an action 
    required under a Federal, State, or local law relating to a means-
    tested public assistance program, the State agency may impose the 
    same disqualification on the member of the household under the food 
    stamp program.
        ``(2) Rules and procedures.--If a disqualification is imposed 
    under paragraph (1) for a failure of an individual to perform an 
    action required under part A of title IV of the Social Security Act 
    (42 U.S.C. 601 et seq.), the State agency may use the rules and 
    procedures that apply under part A of title IV of the Act to impose 
    the same disqualification under the food stamp program.
        ``(3) Application after disqualification period.--A member of a 
    household disqualified under paragraph (1) may, after the 
    disqualification period has expired, apply for benefits under this 
    Act and shall be treated as a new applicant, except that a prior 
    disqualification under subsection (d) shall be considered in 
    determining eligibility.''.
    (b) State Plan Provisions.--Section 11(e) of the Act (7 U.S.C. 
2020(e)) is amended--
        (1) in paragraph (24), by striking ``and'' at the end;
        (2) in paragraph (25), by striking the period at the end and 
    inserting a semicolon; and
        (3) by adding at the end the following:
        ``(26) the guidelines the State agency uses in carrying out 
    section 6(i); and''.
    (c) Conforming Amendment.--Section 6(d)(2)(A) of the Act (7 U.S.C. 
2015(d)(2)(A)) is amended by striking ``that is comparable to a 
requirement of paragraph (1)''.
SEC. 1029. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP 
BENEFITS.
    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by section 1028, is further amended by inserting after subsection (i) 
the following:
    ``(j) Disqualification for Receipt of Multiple Food Stamp 
Benefits.--An individual shall be ineligible to participate in the food 
stamp program as a member of any household for a 10-year period if the 
individual is found by a State agency to have made, or is convicted in 
a Federal or State court of having made, a fraudulent statement or 
representation with respect to the identity or place of residence of 
the individual in order to receive multiple benefits simultaneously 
under the food stamp program.''.

SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by section 1029, is further amended by inserting after subsection (j) 
the following:
    ``(k) Disqualification of Fleeing Felons.--No member of a household 
who is otherwise eligible to participate in the food stamp program 
shall be eligible to participate in the program as a member of that or 
any other household during any period during which the individual is--
        ``(1) fleeing to avoid prosecution, or custody or confinement 
    after conviction, under the law of the place from which the 
    individual is fleeing, for a crime, or attempt to commit a crime, 
    that is a felony under the law of the place from which the 
    individual is fleeing or that, in the case of New Jersey, is a high 
    misdemeanor under the law of New Jersey; or
        ``(2) violating a condition of probation or parole imposed 
    under a Federal or State law.''.

SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by section 1030, is further amended by inserting after subsection (k) 
the following:
    ``(l) Custodial Parent's Cooperation With Child Support Agencies.--
        ``(1) In general.--At the option of a State agency, subject to 
    paragraphs (2) and (3), no natural or adoptive parent or other 
    individual (collectively referred to in this subsection as `the 
    individual') who is living with and exercising parental control 
    over a child under the age of 18 who has an absent parent shall be 
    eligible to participate in the food stamp program unless the 
    individual cooperates with the State agency administering the 
    program established under part D of title IV of the Social Security 
    Act (42 U.S.C. 651 et seq.)--
            ``(A) in establishing the paternity of the child (if the 
        child is born out of wedlock); and
            ``(B) in obtaining support for--
                ``(i) the child; or
                ``(ii) the individual and the child.
        ``(2) Good cause for noncooperation.--Paragraph (1) shall not 
    apply to the individual if good cause is found for refusing to 
    cooperate, as determined by the State agency in accordance with 
    standards prescribed by the Secretary in consultation with the 
    Secretary of Health and Human Services. The standards shall take 
    into consideration circumstances under which cooperation may be 
    against the best interests of the child.
        ``(3) Fees.--Paragraph (1) shall not require the payment of a 
    fee or other cost for services provided under part D of title IV of 
    the Social Security Act (42 U.S.C. 651 et seq.).
    ``(m) Non-Custodial Parent's Cooperation With Child Support 
Agencies.--
        ``(1) In general.--At the option of a State agency, subject to 
    paragraphs (2) and (3), a putative or identified non-custodial 
    parent of a child under the age of 18 (referred to in this 
    subsection as `the individual') shall not be eligible to 
    participate in the food stamp program if the individual refuses to 
    cooperate with the State agency administering the program 
    established under part D of title IV of the Social Security Act (42 
    U.S.C. 651 et seq.)--
            ``(A) in establishing the paternity of the child (if the 
        child is born out of wedlock); and
            ``(B) in providing support for the child.
        ``(2) Refusal to cooperate.--
            ``(A) Guidelines.--The Secretary, in consultation with the 
        Secretary of Health and Human Services, shall develop 
        guidelines on what constitutes a refusal to cooperate under 
        paragraph (1).
            ``(B) Procedures.--The State agency shall develop 
        procedures, using guidelines developed under subparagraph (A), 
        for determining whether an individual is refusing to cooperate 
        under paragraph (1).
        ``(3) Fees.--Paragraph (1) shall not require the payment of a 
    fee or other cost for services provided under part D of title IV of 
    the Social Security Act (42 U.S.C. 651 et seq.).
        ``(4) Privacy.--The State agency shall provide safeguards to 
    restrict the use of information collected by a State agency 
    administering the program established under part D of title IV of 
    the Social Security Act (42 U.S.C. 651 et seq.) to purposes for 
    which the information is collected.''.
SEC. 1032. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.
    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by section 1031, is further amended by inserting after subsection (m) 
the following:
    ``(n) Disqualification for Child Support Arrears.--
        ``(1) In general.--No individual shall be eligible to 
    participate in the food stamp program as a member of any household 
    during any month that the individual is delinquent in any payment 
    due under a court order for the support of a child of the 
    individual.
        ``(2) Exceptions.--Paragraph (1) shall not apply if--
            ``(A) a court is allowing the individual to delay payment; 
        or
            ``(B) the individual is complying with a payment plan 
        approved by a court or the State agency designated under part D 
        of title IV of the Social Security Act (42 U.S.C. 651 et seq.) 
        to provide support for the child of the individual.''.

SEC. 1033. WORK REQUIREMENT.

    (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015), as amended by section 1032, is further amended by inserting 
after subsection (n) the following:
    ``(o) Work Requirement.--
        ``(1) Definition of work program.--In this subsection, the term 
    `work program' means--
            ``(A) a program under the Job Training Partnership Act (29 
        U.S.C. 1501 et seq.);
            ``(B) a program under section 236 of the Trade Act of 1974 
        (19 U.S.C. 2296); or
            ``(C) a program of employment or training operated or 
        supervised by a State or political subdivision of a State that 
        meets standards approved by the Governor of the State, 
        including a program under section 6(d)(4), other than a job 
        search program or a job search training program.
        ``(2) Work requirement.--Subject to the other provisions of 
    this subsection, no individual shall be eligible to participate in 
    the food stamp program as a member of any household if, during the 
    preceding 12-month period, the individual received food stamp 
    benefits for not less than 4 months during which the individual did 
    not--
            ``(A) work 20 hours or more per week, averaged monthly; or
            ``(B) participate in and comply with the requirements of a 
        work program for 20 hours or more per week, as determined by 
        the State agency; or
            ``(C) participate in a program under section 20 or a 
        comparable program established by a State or political 
        subdivision of a State.
        ``(3) Exception.--Paragraph (2) shall not apply to an 
    individual if the individual is--
            ``(A) under 18 or over 50 years of age;
            ``(B) medically certified as physically or mentally unfit 
        for employment;
            ``(C) a parent or other member of a household with 
        responsibility for a dependent child;
            ``(D) otherwise exempt under section 6(d)(2); or
            ``(E) a pregnant woman.
        ``(4) Waiver.--
            ``(A) In general.--On the request of a State agency, the 
        Secretary may waive the applicability of paragraph (2) to any 
        group of individuals in the State if the Secretary makes a 
        determination that the area in which the individuals reside--
                ``(i) has an unemployment rate of over 10 percent; or
                ``(ii) does not have a sufficient number of jobs to 
            provide employment for the individuals.
            ``(B) Report.--The Secretary shall report the basis for a 
        waiver under subparagraph (A) to the Committee on Agriculture 
        of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate.
        ``(5) Subsequent eligibility.--
            ``(A) In general.--Paragraph (2) shall cease to apply to an 
        individual if, during a 30-day period, the individual--
                ``(i) works 80 or more hours;
                ``(ii) participates in and complies with the 
            requirements of a work program for 80 or more hours, as 
            determined by a State agency; or
                ``(iii) participates in a program under section 20 or a 
            comparable program established by a State or political 
            subdivision of a State.
            ``(B) Limitation.--During the subsequent 12-month period, 
        the individual shall be eligible to participate in the food 
        stamp program for not more than 4 months during which the 
        individual does not--
                ``(i) work 20 hours or more per week, averaged monthly;
                ``(ii) participate in and comply with the requirements 
            of a work program for 20 hours or more per week, as 
            determined by the State agency; or
                ``(iii) participate in a program under section 20 or a 
            comparable program established by a State or political 
            subdivision of a State.''.
    (b) Transition Provision.--Prior to 1 year after the date of 
enactment of this Act, the term ``preceding 12-month period'' in 
section 6(o) of the Food Stamp Act of 1977, as amended by subsection 
(a), means the preceding period that begins on the date of enactment of 
this Act.

SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    (a) In General.--Section 7(i) of the Food Stamp Act of 1977 (7 
U.S.C. 2016(i)) is amended--
        (1) by striking paragraph (1) and inserting the following:
        ``(1) Electronic benefit transfers.--
            ``(A) Implementation.--Each State agency shall implement an 
        electronic benefit transfer system in which household benefits 
        determined under section 8(a) or 24 are issued from and stored 
        in a central databank before October 1, 2002, unless the 
        Secretary provides a waiver for a State agency that faces 
        unusual barriers to implementing an electronic benefit transfer 
        system.
            ``(B) Timely implementation.--State agencies are encouraged 
        to implement an electronic benefit transfer system under 
        subparagraph (A) as soon as practicable.
            ``(C) State flexibility.--Subject to paragraph (2), a State 
        agency may procure and implement an electronic benefit transfer 
        system under the terms, conditions, and design that the State 
        agency considers appropriate.
            ``(D) Operation.--An electronic benefit transfer system 
        should take into account generally accepted standard operating 
        rules based on--
                ``(i) commercial electronic funds transfer technology;
                ``(ii) the need to permit interstate operation and law 
            enforcement monitoring; and
                ``(iii) the need to permit monitoring and 
            investigations by authorized law enforcement agencies.'';
        (2) in paragraph (2)--
            (A) by striking ``effective no later than April 1, 1992,'';
            (B) in subparagraph (A)--
                (i) by striking ``, in any 1 year,''; and
                (ii) by striking ``on-line'';
            (C) by striking subparagraph (D) and inserting the 
        following:
            ``(D)(i) measures to maximize the security of a system 
        using the most recent technology available that the State 
        agency considers appropriate and cost effective and which may 
        include personal identification numbers, photographic 
        identification on electronic benefit transfer cards, and other 
        measures to protect against fraud and abuse; and
            ``(ii) effective not later than 2 years after the effective 
        date of this clause, to the extent practicable, measures that 
        permit a system to differentiate items of food that may be 
        acquired with an allotment from items of food that may not be 
        acquired with an allotment.'';
            (D) in subparagraph (G), by striking ``and'' at the end;
            (E) in subparagraph (H), by striking the period at the end 
        and inserting ``; and''; and
            (F) by adding at the end the following:
        ``(I) procurement standards.''; and
        (3) by adding at the end the following:
        ``(7) Replacement of benefits.--Regulations issued by the 
    Secretary regarding the replacement of benefits and liability for 
    replacement of benefits under an electronic benefit transfer system 
    shall be similar to the regulations in effect for a paper food 
    stamp issuance system.
        ``(8) Replacement card fee.--A State agency may collect a 
    charge for replacement of an electronic benefit transfer card by 
    reducing the monthly allotment of the household receiving the 
    replacement card.
        ``(9) Optional photographic identification.--
            ``(A) In general.--A State agency may require that an 
        electronic benefit card contain a photograph of 1 or more 
        members of a household.
            ``(B) Other authorized users.--If a State agency requires a 
        photograph on an electronic benefit card under subparagraph 
        (A), the State agency shall establish procedures to ensure that 
        any other appropriate member of the household or any authorized 
        representative of the household may utilize the card.''.
    (b) Sense of Congress.--It is the sense of Congress that a State 
that operates an electronic benefit transfer system under the Food 
Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should operate the system in 
a manner that is compatible with electronic benefit transfer systems 
operated by other States.

SEC. 1035. VALUE OF MINIMUM ALLOTMENT.

    The proviso in section 8(a) of the Food Stamp Act of 1977 (7 U.S.C. 
2017(a)) is amended by striking ``, and shall be adjusted'' and all 
that follows through ``$5''.

SEC. 1036. BENEFITS ON RECERTIFICATION.

    Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2017(c)(2)(B)) is amended by striking ``of more than one month''.
SEC. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS.
    Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c)) is 
amended by striking paragraph (3) and inserting the following:
        ``(3) Optional combined allotment for expedited households.--A 
    State agency may provide to an eligible household applying after 
    the 15th day of a month, in lieu of the initial allotment of the 
    household and the regular allotment of the household for the 
    following month, an allotment that is equal to the total amount of 
    the initial allotment and the first regular allotment. The 
    allotment shall be provided in accordance with section 11(e)(3) in 
    the case of a household that is not entitled to expedited service 
    and in accordance with paragraphs (3) and (9) of section 11(e) in 
    the case of a household that is entitled to expedited service.''.
SEC. 1038. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC ASSISTANCE 
PROGRAMS.
    Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended 
by striking subsection (d) and inserting the following:
    ``(d) Reduction of Public Assistance Benefits.--
        ``(1) In general.--If the benefits of a household are reduced 
    under a Federal, State, or local law relating to a means-tested 
    public assistance program for the failure of a member of the 
    household to perform an action required under the law or program, 
    for the duration of the reduction--
            ``(A) the household may not receive an increased allotment 
        as the result of a decrease in the income of the household to 
        the extent that the decrease is the result of the reduction; 
        and
            ``(B) the State agency may reduce the allotment of the 
        household by not more than 25 percent.
        ``(2) Rules and procedures.--If the allotment of a household is 
    reduced under this subsection for a failure to perform an action 
    required under part A of title IV of the Social Security Act (42 
    U.S.C. 601 et seq.), the State agency may use the rules and 
    procedures that apply under part A of title IV of the Act to reduce 
    the allotment under the food stamp program.''.

SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.

    Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended 
by adding at the end the following:
    ``(f) Allotments for Households Residing in Centers.--
        ``(1) In general.--In the case of an individual who resides in 
    a center for the purpose of a drug or alcoholic treatment program 
    described in the last sentence of section 3(i), a State agency may 
    provide an allotment for the individual to--
            ``(A) the center as an authorized representative of the 
        individual for a period that is less than 1 month; and
            ``(B) the individual, if the individual leaves the center.
        ``(2) Direct payment.--A State agency may require an individual 
    referred to in paragraph (1) to designate the center in which the 
    individual resides as the authorized representative of the 
    individual for the purpose of receiving an allotment.''.
SEC. 1040. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD STORES AND 
WHOLESALE FOOD CONCERNS.
    Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)(1)) 
is amended by adding at the end the following: ``No retail food store 
or wholesale food concern of a type determined by the Secretary, based 
on factors that include size, location, and type of items sold, shall 
be approved to be authorized or reauthorized for participation in the 
food stamp program unless an authorized employee of the Department of 
Agriculture, a designee of the Secretary, or, if practicable, an 
official of the State or local government designated by the Secretary 
has visited the store or concern for the purpose of determining whether 
the store or concern should be approved or reauthorized, as 
appropriate.''.

SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

    Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)) is 
amended by adding at the end the following:
        ``(3) Authorization periods.--The Secretary shall establish 
    specific time periods during which authorization to accept and 
    redeem coupons, or to redeem benefits through an electronic benefit 
    transfer system, shall be valid under the food stamp program.''.
SEC. 1042. INFORMATION FOR VERIFYING ELIGIBILITY FOR AUTHORIZATION.
    Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 2018(c)) is 
amended--
        (1) in the first sentence, by inserting ``, which may include 
    relevant income and sales tax filing documents,'' after ``submit 
    information''; and
        (2) by inserting after the first sentence the following: ``The 
    regulations may require retail food stores and wholesale food 
    concerns to provide written authorization for the Secretary to 
    verify all relevant tax filings with appropriate agencies and to 
    obtain corroborating documentation from other sources so that the 
    accuracy of information provided by the stores and concerns may be 
    verified.''.
SEC. 1043. WAITING PERIOD FOR STORES THAT FAIL TO MEET AUTHORIZATION 
CRITERIA.
    Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 2018(d)) is 
amended by adding at the end the following: ``A retail food store or 
wholesale food concern that is denied approval to accept and redeem 
coupons because the store or concern does not meet criteriafor approval 
established by the Secretary may not, for at least 6 months, submit a 
new application to participate in the program. The Secretary may 
establish a longer time period under the preceding sentence, including 
permanent disqualification, that reflects the severity of the basis of 
the denial.''.

SEC. 1044. OPERATION OF FOOD STAMP OFFICES.

    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020), as 
amended by section 1020(b), is further amended--
        (1) in subsection (e)--
            (A) by striking paragraph (2) and inserting the following:
        ``(2)(A) that the State agency shall establish procedures 
    governing the operation of food stamp offices that the State agency 
    determines best serve households in the State, including households 
    with special needs, such as households with elderly or disabled 
    members, households in rural areas with low-income members, 
    homeless individuals, households residing on reservations, and 
    households in areas in which a substantial number of members of 
    low-income households speak a language other than English.
        ``(B) In carrying out subparagraph (A), a State agency--
            ``(i) shall provide timely, accurate, and fair service to 
        applicants for, and participants in, the food stamp program;
            ``(ii) shall develop an application containing the 
        information necessary to comply with this Act;
            ``(iii) shall permit an applicant household to apply to 
        participate in the program on the same day that the household 
        first contacts a food stamp office in person during office 
        hours;
            ``(iv) shall consider an application that contains the 
        name, address, and signature of the applicant to be filed on 
        the date the applicant submits the application;
            ``(v) shall require that an adult representative of each 
        applicant household certify in writing, under penalty of 
        perjury, that--
                ``(I) the information contained in the application is 
            true; and
                ``(II) all members of the household are citizens or are 
            aliens eligible to receive food stamps under section 6(f);
            ``(vi) shall provide a method of certifying and issuing 
        coupons to eligible homeless individuals, to ensure that 
        participation in the food stamp program is limited to eligible 
        households; and
            ``(vii) may establish operating procedures that vary for 
        local food stamp offices to reflect regional and local 
        differences within the State.
        ``(C) Nothing in this Act shall prohibit the use of signatures 
    provided and maintained electronically, storage of records using 
    automated retrieval systems only, or any other feature of a State 
    agency's application system that does not rely exclusively on the 
    collection and retention of paper applications or other records.
        ``(D) The signature of any adult under this paragraph shall be 
    considered sufficient to comply with any provision of Federal law 
    requiring a household member to sign an application or 
    statement.'';
            (B) in paragraph (3)--
                (i) by striking ``shall--'' and all that follows 
            through ``provide each'' and inserting ``shall provide 
            each''; and
                (ii) by striking ``(B) assist'' and all that follows 
            through ``representative of the State agency;'';
            (C) by striking paragraphs (14) and (25);
            (D)(i) by redesignating paragraphs (15) through (24) as 
        paragraphs (14) through (23), respectively; and
            (ii) by redesignating paragraph (26) as paragraph (24); and
        (2) in subsection (i)--
            (A) by striking ``(i) Notwithstanding'' and all that 
        follows through ``(2)'' and inserting the following:
    ``(i) Application and Denial Procedures.--
        ``(1) Application procedures.--Notwithstanding any other 
    provision of law,''; and
            (B) by striking ``; (3) households'' and all that follows 
        through ``title IV of the Social Security Act. No'' and 
        inserting a period and the following:
        ``(2) Denial and termination.--Other than in a case of 
    disqualification as a penalty for failure to comply with a public 
    assistance program rule or regulation, no''.

SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.

    Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(6)) is amended--
        (1) by striking ``that (A) the'' and inserting ``that--
            ``(A) the'';
        (2) by striking ``Act; (B) the'' and inserting ``Act; and
            ``(B) the'';
        (3) in subparagraph (B), by striking ``United States Civil 
    Service Commission'' and inserting ``Office of Personnel 
    Management''; and
        (4) by striking subparagraphs (C) through (E).

SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMATION.

    Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(8)) is amended--
        (1) by striking ``that (A) such'' and inserting the following: 
    ``that--
            ``(A) the'';
        (2) by striking ``law, (B) notwithstanding'' and inserting the 
    following: ``law;
            ``(B) notwithstanding'';
        (3) by striking ``Act, and (C) such'' and inserting the 
    following: ``Act;
            ``(C) the''; and
        (4) by adding at the end the following:
            ``(D) notwithstanding any other provision of law, the 
        address, social security number, and, if available, photograph 
        of any member of a household shall be made available, on 
        request, to any Federal, State, or local law enforcement 
        officer if the officer furnishes the State agency with the name 
        of the member and notifies the agency that--
                ``(i) the member--

                    ``(I) is fleeing to avoid prosecution, or custody 
                or confinement after conviction, for a crime (or 
                attempt to commit a crime) that, under the law of the 
                place the member is fleeing, is a felony (or, in the 
                case of New Jersey, a high misdemeanor), or is 
                violating a condition of probation or parole imposed 
                under Federal or State law; or
                    ``(II) has information that is necessary for the 
                officer to conduct an official duty related to 
                subclause (I);

                ``(ii) locating or apprehending the member is an 
            official duty; and
                ``(iii) the request is being made in the proper 
            exercise of an official duty; and
            ``(E) the safeguards shall not prevent compliance with 
        paragraph (16);''.

SEC. 1047. EXPEDITED COUPON SERVICE.

    Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(9)) is amended--
        (1) in subparagraph (A)--
            (A) by striking ``five days'' and inserting ``7 days''; and
            (B) by inserting ``and'' at the end;
        (2) by striking subparagraphs (B) and (C);
        (3) by redesignating subparagraph (D) as subparagraph (B); and
        (4) in subparagraph (B), as redesignated by paragraph (3), by 
    striking ``, (B), or (C)''.

SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.

    Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(10)) is amended by inserting before the semicolon at the end a 
period and the following: ``At the option of a State, at any time prior 
to a fair hearing determination under this paragraph, a household may 
withdraw, orally or in writing, a request by the household for the fair 
hearing. If the withdrawal request is an oral request, the State agency 
shall provide a written notice to the household confirming the 
withdrawal request and providing the household with an opportunity to 
request a hearing''.
SEC. 1049. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICATION 
SYSTEMS.
    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is 
amended--
        (1) in subsection (e)(18), as redesignated by section 
    1044(1)(D)--
            (A) by striking ``that information is'' and inserting ``at 
        the option of the State agency, that information may be''; and
            (B) by striking ``shall be requested'' and inserting ``may 
        be requested''; and
        (2) by adding at the end the following:
    ``(p) State Verification Option.--Notwithstanding any other 
provision of law, in carrying out the food stamp program, a State 
agency shall not be required to use an income and eligibility or an 
immigration status verification system established under section 1137 
of the Social Security Act (42 U.S.C. 1320b-7).''.
SEC. 1050. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY SUBMIT 
FALSIFIED APPLICATIONS.
    Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C. 2021(b)) is 
amended--
        (1) in paragraph (2), by striking ``and'' at the end;
        (2) in paragraph (3), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(4) for a reasonable period of time to be determined by the 
    Secretary, including permanent disqualification, on the knowing 
    submission of an application for the approval or reauthorization to 
    accept and redeem coupons that contains false information about a 
    substantive matter that was a part of the application.''.
SEC. 1051. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE 
WIC PROGRAM.
    Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is amended 
by adding at the end the following:
    ``(g) Disqualification of Retailers Who Are Disqualified Under the 
WIC Program.--
        ``(1) In general.--The Secretary shall issue regulations 
    providing criteria for the disqualification under this Act of an 
    approved retail food store and a wholesale food concern that is 
    disqualified from accepting benefits under the special supplemental 
    nutrition program for women, infants, and children established 
    under section 17 of the Child Nutrition Act of 1966 (7 U.S.C. 
    1786).
        ``(2) Terms.--A disqualification under paragraph (1)--
            ``(A) shall be for the same length of time as the 
        disqualification from the program referred to in paragraph (1);
            ``(B) may begin at a later date than the disqualification 
        from the program referred to in paragraph (1); and
            ``(C) notwithstanding section 14, shall not be subject to 
        judicial or administrative review.''.

SEC. 1052. COLLECTION OF OVERISSUANCES.

    (a) Collection of Overissuances.--Section 13 of the Food Stamp Act 
of 1977 (7 U.S.C. 2022) is amended--
        (1) by striking subsection (b) and inserting the following:
    ``(b) Collection of Overissuances.--
        ``(1) In general.--Except as otherwise provided in this 
    subsection, a State agency shall collect any overissuance of 
    coupons issued to a household by--
            ``(A) reducing the allotment of the household;
            ``(B) withholding amounts from unemployment compensation 
        from a member of the household under subsection (c);
            ``(C) recovering from Federal pay or a Federal income tax 
        refund under subsection (d); or
            ``(D) any other means.
        ``(2) Cost effectiveness.--Paragraph (1) shall not apply if the 
    State agency demonstrates to the satisfaction of the Secretary that 
    all of the means referred to in paragraph (1) are not cost 
    effective.
        ``(3) Maximum reduction absent fraud.--If a household received 
    an overissuance of coupons without any member of the household 
    being found ineligible to participate in the program under section 
    6(b)(1) and a State agency elects to reduce the allotment of the 
    household under paragraph (1)(A), the State agency shall not reduce 
    the monthly allotment of the household under paragraph (1)(A) by an 
    amount in excess of the greater of--
            ``(A) 10 percent of the monthly allotment of the household; 
        or
            ``(B) $10.
        ``(4) Procedures.--A State agency shall collect an overissuance 
    of coupons issued to a household under paragraph (1) in accordance 
    with the requirements established by the State agency for providing 
    notice, electing a means of payment, and establishing a time 
    schedule for payment.''; and
        (2) in subsection (d)--
            (A) by striking ``as determined under subsection (b) and 
        except for claims arising from an error of the State agency,'' 
        and inserting ``, as determined under subsection (b)(1),''; and
            (B) by inserting before the period at the end the 
        following: ``or a Federal income tax refund as authorized by 
        section 3720A of title 31, United States Code''.
    (b) Conforming Amendments.--Section 11(e)(8) of the Act (7 U.S.C. 
2020(e)(8)) is amended--
        (1) by striking ``and excluding claims'' and all that follows 
    through ``such section''; and
        (2) by inserting before the semicolon at the end the following: 
    ``or a Federal income tax refund as authorized by section 3720A of 
    title 31, United States Code''.
    (c) Retention Rate.--Section 16(a) of the Act (7 U.S.C. 2025(a)) is 
amended by striking ``25 percent during the period beginning October 1, 
1990'' and all that follows through ``error of a State agency'' and 
inserting the following: ``25 percent of the overissuances collected by 
the State agency under section 13, except those overissuances arising 
from an error of the State agency''.
SEC. 1053. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM REQUIREMENTS 
PENDING ADMINISTRATIVE AND JUDICIAL REVIEW.
    Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a)) is 
amended--
        (1) by redesignating the first through seventeenth sentences as 
    paragraphs (1) through (17), respectively; and
        (2) by adding at the end the following:
        ``(18) Suspension of stores pending review.--Notwithstanding 
    any other provision of this subsection, any permanent 
    disqualification of a retail food store or wholesale food concern 
    under paragraph (3) or (4) of section 12(b) shall be effective from 
    the date of receipt of the notice of disqualification. If the 
    disqualification is reversed through administrative or judicial 
    review, the Secretary shall not be liable for the value of any 
    sales lost during the disqualification period.''.

SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.

    (a) Forfeiture of Items Exchanged in Food Stamp Trafficking.--The 
first sentence of section 15(g) of the Food Stamp Act of 1977 (7 U.S.C. 
2024(g)) is amended by striking ``or intended to be furnished''.
    (b) Criminal Forfeiture.--Section 15 of the Act (7 U.S.C. 2024) is 
amended by adding at the end the following:
    ``(h) Criminal Forfeiture.--
        ``(1) In general.--In imposing a sentence on a person convicted 
    of an offense in violation of subsection (b) or (c), a court shall 
    order, in addition to any other sentence imposed under this 
    subsection, that the person forfeit to the United States all 
    property described in paragraph (2).
        ``(2) Property subject to forfeiture.--All property, real and 
    personal, used in a transaction or attempted transaction, to 
    commit, or to facilitate the commission of, a violation (other than 
    a misdemeanor) of subsection (b) or (c), or proceeds traceable to a 
    violation of subsection (b) or (c), shall be subject to forfeiture 
    to the United States under paragraph (1).
        ``(3) Interest of owner.--No interest in property shall be 
    forfeited under this subsection as the result of any act or 
    omission established by the owner of the interest to have been 
    committed or omitted without the knowledge or consent of the owner.
        ``(4) Proceeds.--The proceeds from any sale of forfeited 
    property and any monies forfeited under this subsection shall be 
    used--
            ``(A) first, to reimburse the Department of Justice for the 
        costs incurred by the Department to initiate and complete the 
        forfeiture proceeding;
            ``(B) second, to reimburse the Department of Agriculture 
        Office of Inspector General for any costs the Office incurred 
        in the law enforcement effort resulting in the forfeiture;
            ``(C) third, to reimburse any Federal or State law 
        enforcement agency for any costs incurred in the law 
        enforcement effort resulting in the forfeiture; and
            ``(D) fourth, by the Secretary to carry out the approval, 
        reauthorization, and compliance investigations of retail stores 
        and wholesale food concerns under section 9.''.

SEC. 1055. LIMITATION OF FEDERAL MATCH.

    Section 16(a)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
2025(a)(4)) is amended by inserting after the comma at the end the 
following: ``but not including recruitment activities,''.

SEC. 1056. STANDARDS FOR ADMINISTRATION.

    (a) In General.--Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 
2025) is amended by striking subsection (b).
    (b) Conforming Amendments.--
        (1) The first sentence of section 11(g) of the Act (7 U.S.C. 
    2020(g)) is amended by striking ``the Secretary's standards for the 
    efficient and effective administration of the program established 
    under section 16(b)(1) or''.
        (2) Section 16(c)(1)(B) of the Act (7 U.S.C. 2025(c)(1)(B)) is 
    amended by striking ``pursuant to subsection (b)''.

SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

    Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025), as 
amended by section 1056(a), is further amended by inserting after 
subsection (a) the following:
    ``(b) Work Supplementation or Support Program.--
        ``(1) Definition of work supplementation or support program.--
    In this subsection, the term `work supplementation or support 
    program' means a program under which, as determined by the 
    Secretary, public assistance (including any benefits provided under 
    a program established by the State and the food stamp program) is 
    provided to an employer to be used for hiring and employing a 
    public assistance recipient who was not employed by the employer at 
    the time the public assistance recipient entered the program.
        ``(2) Program.--A State agency may elect to use an amount equal 
    to the allotment that would otherwise be issued to a household 
    under the food stamp program, but for the operation of this 
    subsection, for the purpose of subsidizing or supporting a job 
    under a work supplementation or support program established by the 
    State.
        ``(3) Procedure.--If a State agency makes an election under 
    paragraph (2) and identifies each household that participates in 
    the food stamp program that contains an individual who is 
    participating in the work supplementation or support program--
            ``(A) the Secretary shall pay to the State agency an amount 
        equal to the value of the allotment that the household would be 
        eligible to receive but for the operation of this subsection;
            ``(B) the State agency shall expend the amount received 
        under subparagraph (A) in accordance with the work 
        supplementation or support program in lieu of providing the 
        allotment that the household would receive but for the 
        operation of this subsection;
            ``(C) for purposes of--
                ``(i) sections 5 and 8(a), the amount received under 
            this subsection shall be excluded from household income and 
            resources; and
                ``(ii) section 8(b), the amount received under this 
            subsection shall be considered to be the value of an 
            allotment provided to the household; and
            ``(D) the household shall not receive an allotment from the 
        State agency for the period during which the member continues 
        to participate in the work supplementation or support program.
        ``(4) Other work requirements.--No individual shall be excused, 
    by reason of the fact that a State has a work supplementation or 
    support program, from any work requirement under section 6(d), 
    except during the periods in which the individual is employed under 
    the work supplementation or support program.
        ``(5) Length of participation.--A State agency shall provide a 
    description of how the public assistance recipients in the program 
    shall, within a specific period of time, be moved from supplemented 
    or supported employment to employment that is not supplemented or 
    supported.
        ``(6) Displacement.--A work supplementation or support program 
    shall not displace the employment of individuals who are not 
    supplemented or supported.''.

SEC. 1058. WAIVER AUTHORITY.

    Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)) is amended--
        (1) by redesignating subparagraph (B) as subparagraph (C); and
        (2) in subparagraph (A)--
            (A) by striking the second sentence; and
            (B) by striking ``benefits to eligible households, 
        including'' and inserting the following: ``benefits to eligible 
        households, and may waive any requirement of this Act to the 
        extent necessary for the project to be conducted.
            ``(B) Project requirements.--
                ``(i) Program goal.--The Secretary may not conduct a 
            project under subparagraph (A) unless the project is 
            consistent with the goal of the food stamp program of 
            providing food assistance to raise levels of nutrition 
            among low-income individuals.
                ``(ii) Permissible projects.--The Secretary may conduct 
            a project under subparagraph (A) to--

                    ``(I) improve program administration;
                    ``(II) increase the self-sufficiency of food stamp 
                recipients;
                    ``(III) test innovative welfare reform strategies; 
                and
                    ``(IV) allow greater conformity with the rules of 
                other programs than would be allowed but for this 
                paragraph.

                ``(iii) Impermissible projects.--The Secretary may not 
            conduct a project under subparagraph (A) that--

                    ``(I) involves the payment of the value of an 
                allotment in the form of cash, unless the project was 
                approved prior to the date of enactment of this 
                subparagraph;
                    ``(II) substantially transfers funds made available 
                under this Act to services or benefits provided 
                primarily through another public assistance program; or

                    ``(III) is not limited to a specific time period.

                ``(iv) Additional included projects.--Pilot or 
            experimental projects may include''.

SEC. 1059. AUTHORIZATION OF PILOT PROJECTS.

    Section 17(b)(1)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)(B)), as amended by section 1058, is further amended--
        (1) in clause (iv), by striking ``coupons. Any pilot'' and 
    inserting the following: ``coupons.
                ``(v) Cash payment pilot projects.--Any pilot''; and
        (2) in clause (v), as so amended, by striking ``1995'' and 
    inserting ``2002''.

SEC. 1060. RESPONSE TO WAIVERS.

    Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)), as amended by section 1058, is further amended by adding 
at the end the following:
            ``(D) Response to waivers.--
                ``(i) Response.--Not later than 60 days after the date 
            of receiving a request for a waiver under subparagraph (A), 
            the Secretary shall provide a response that--

                    ``(I) approves the waiver request;
                    ``(II) denies the waiver request and explains any 
                modification needed for approval of the waiver request;
                    ``(III) denies the waiver request and explains the 
                grounds for the denial; or
                    ``(IV) requests clarification of the waiver 
                request.

                ``(ii) Failure to respond.--If the Secretary does not 
            provide a response in accordance with clause (i), the 
            waiver shall be considered approved, unless the approval is 
            specifically prohibited by this Act.
                ``(iii) Notice of denial.--On denial of a waiver 
            request under clause (i)(III), the Secretary shall provide 
            a copy of the waiver request and a description of the 
            reasons for the denial to the Committee on Agriculture of 
            the House of Representatives and the Committee on 
            Agriculture, Nutrition, and Forestry of the Senate.''.

SEC. 1061. EMPLOYMENT INITIATIVES PROGRAM.

    Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended 
by striking subsection (d) and inserting the following:
    ``(d) Employment Initiatives Program.--
        ``(1) Election to participate.--
            ``(A) In general.--Subject to the other provisions of this 
        subsection, a State may elect to carry out an employment 
        initiatives program under this subsection.
            ``(B) Requirement.--A State shall be eligible to carry out 
        an employment initiatives program under this subsection only if 
        not less than 50 percent of the households that received food 
        stamp benefits during the summer of 1993 also received benefits 
        under a State program funded under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.) during the summer 
        of 1993.